In an interaction with Prahlad S. Advani – CEO of Advani Hotels and Resorts (India) Ltd

For the first time in our history, our honourable Prime Minister has taken it upon his broad shoulders to be the brand ambassador for tourism within our country, states Prahlad S. Advani – Chief Executive Officer at Advani Hotels & Resorts (India) Ltd.

The company has announced notable performance in Q3FY24, with a year-on-year revenue growth of 11 per cent. What factors have played a role in this growth?

The company’s sales and marketing strategy has worked well in achieving a growth of 11 per cent in Q3FY24. In fact, the demand for Goa had decreased during Q3FY24, due to us Indians travelling overseas for holidays (especially to Thailand) and due to a significant reduction in the number of Charter tourists flying into Goa.

Our sales and marketing strategy is to be nimble and empower our employees to make quick decisions as per the ever-changing market dynamics. Our decision to pivot away from the Charter market segment and to focus on the Free-Independent-Traveller (FIT) segment and the wedding segment, (which yields the highest revenue per occupied room) was the first driver of our growth. In addition, in January 2023, we made a conscious choice to increase the geographic presence and the number of employees in our sales team. This was the second driver of our growth. 

Furthermore, instead of having multiple Online Travel Agents (OTA’s) distribute our inventory, we have selected only two OTA’s, with whom we have a very close working relationship and frequent revenue management meetings. This has been the third engine of our growth. Lastly, our brand website has been performing well, as a potential customer cannot obtain a lower rate than our brand website through an off-line travel agent.

What services does the Caravela Beach Resort Goa provide and what strategies is it employing to attract travellers? 

The Caravela Beach Resort Goa is an independent, ‘5-Star Deluxe’ resort, designed by the world-famous architects WATG, (who also designed the Atlantis Resorts, Sun City, the Bellagio and the Wynn in Las Vegas).

The Caravela is located on the powdery white sands of Varca Beach, South Goa. The resort is a 45-minute car ride from Goa’s Dabolim Airport and is built on a 23-acre estate, with a golf course and a 275-meter-long beach-front. The resort has large free-form swimming pools and is surrounded by immaculately landscaped gardens; all designed by the renowned international landscape architect - Belt Collins Singapore.

It comprises 201 keys, several of which have direct sea views and each guest room has an attached outdoor balcony. The resort has an 83-foot high Atrium lobby, making it Goa’s tallest and largest lobby. For entertainment, the resort has four restaurants and multiple bars. The ‘Swim-Up Pool Bar’, the ‘Beach Hut’ (seasonal) and the Caravela’s authentic Goan cuisine are especially popular with guests. 

The resort has a myriad of experiential family-friendly activities for both children and adults such as archery, cricket, yoga, a beautiful horticultural tour, a class in cocktail-making and a class in Goan-cooking.

A key differentiating factor is the customer-centric culture of the hotel. Our employees serve our guests from the heart. We do offer an engaging loyalty and amenity program for our repeat guests - comprising of priority early check-ins, late check-outs, a single point of contact throughout their stay, a complimentary foot massage, a luxury bath set-up and evening cocktails.

We actively engage with our guests before they arrive, during their stay and after they depart to obtain feedback at every stage. This helps us gain valuable insights to tailor our services and meet the dynamic needs of our guests. 

The Caravela continues to impress discerning travellers who are looking for a personalised experience. One would define this as a piece of paradise, where dreams turn into reality and moments turn into lifetime memories!

What is your perspective on the outlook for the hotel and restaurant industry in India? Will the change in India-Maldives relations be advantageous for the beach resort business?  

With our country positioned to be the engine of growth for the world economy, the enormous amount of foreign direct investment (FDI) inflows into India, the political stability in India, the pivot of the West away from China and most importantly, under the visionary leadership of our Honourable Prime Minister, Shri Narendra Modi; our country is on an upward trajectory. 

As a natural correlation, there will be an increase in the disposable income available across our population. Historical patterns indicate that the hospitality industry benefits significantly in such situations. Lastly, our favourable demographics and their spending patterns will continue to drive the demand for hotel rooms across India.

For the first time in our history, the hospitality industry has a significant advantage, wherein our Prime Minister has taken it upon his broad shoulders to be the brand ambassador for tourism within our country. For example, his appeal to ‘Wed in India’ rather than having destination weddings in Thailand will lead to further growth in the wedding segment. His vision to promote our country through events such as the prestigious G20, the ICC Cricket World Cup and the Olympics in the future, all have a ripple effect on the whole economy and especially for our industry. 

Lastly, with just a few photos of our own pristine Lakshadweep islands, our Honourable Prime Minister has lit a patriotic flame for us to explore the exquisite beauty of our beaches, from the Andaman and Nicobar Islands to Goa and beyond.  

For the benefit of our readers,  would you elaborate as to how your company has performed over the long term from an investor's point of view?

In terms of long-term value creation for shareholders, from a historical perspective, Advani Hotels & Resorts (India) Limited has been listed on the BSE for more than 34 years. In the year 1990, the price was approximately Rs 1.80 per share (on an apple-to-apple basis) and as of Wednesday, February 21, 2024, the price stands at Rs 163.15 per share. This represents a CAGR of 14.2 per cent. Which means that over 34 years, your investment of Rs 10,000 would have grown in value to Rs 9,06,389.