By Neha Mehrotra
05-Aug-2024
India stands as one of ONYX's top five markets globally and currently holds the position of the fourth largest market year-to-date. Indian travellers are increasingly flocking to ONYX properties for both business and leisure, with Amari hotels leading the preference, followed by OZO, Oriental Residence, and Shama. With destinations like Bangkok, Pattaya, and Phuket being particularly favoured, ONYX seeks to deepen its connection with Indian travellers.
To delve deeper into this strategic move and explore the group’s future plans, we get into a conversation with Bharath Satyavolu, Vice President, Revenue Management, ONYX Hospitality Group.
1. How important is India and where does India stand as a market for you?
If I may start by sharing some numbers, in 2023, we experienced a full recovery, surpassing our 2019 figures. Our revenues from the Indian market in 2023 were 90% higher than pre-COVID levels in 2019. The growth has continued into 2024, with our Indian market revenues increasing by 70% in the first half of this year compared to the same period last year. Looking ahead, we anticipate double-digit growth from next year onward, with projections of 10 to 12% year-over-year growth. Before COVID, India was among our top five source markets. In 2023, it climbed to the top four, and in the first half of this year, it has become our third largest market. India is undoubtedly a key market for us, showing remarkable and consistent growth.
2. What trends have you seen when it comes to modern travellers? What do the guests demand now?
Over the past few years, there's been a noticeable shift in the demographics of Indian travellers. They are now much more tech-savvy and their online interactions with us have increased significantly, with online bookings rising from 20% pre-COVID to 40% now. Additionally, their expectations have evolved; they’re seeking more experiential travel rather than just the best deals or discounted rates. They want to immerse themselves in local culture and experiences.
3. What are some of the steps that the hospitality group has taken to cope with the trends and meet the demands of the travellers?
Firstly, we’ve introduced a range of tailored packages that focus on local tours and cultural immersion. Secondly, our commitment to excellence is a cornerstone of our approach. We have a clear mission to provide a personalised, high-quality hospitality experience, and we are dedicated to achieving our vision of being the leading medium-sized hospitality chain in Southeast Asia. The third one is our commitment to sustainability. We have implemented several sustainability initiatives that not only reduce our environmental impact but are resonating well with the Indian travellers.
4. Talking about sustainability, can you highlight the key initiatives by ONYX that have majorly helped the environment?
Our sustainability efforts are organised into three key areas: environmental responsibility, social responsibility, and community engagement. Environmentally, we focus on responsible waste management, energy conservation, and reducing carbon emissions. Additionally, many of our hotels implement farm-to-kitchen programmes, growing their own herbs and greens to ensure fresh and local ingredients while minimising environmental impact.
The second one is social responsibility. Here, we prioritise responsible procurement by sourcing products from local farmers and small businesses. This approach supports local economies and strengthens our ties with the communities we operate in, ensuring that our products are both ethically sourced and of high quality. In terms of community engagement, we are the first hospitality group in Asia to partner with UNESCO on cultural sustainability. This partnership involves working with local communities to preserve and promote their cultural heritage. Moreover, our guests can also participate in our sustainable initiatives.
For example, at Amari Bangkok, we organised a food donation initiative where leftover food from a large event was collected by local community groups, and guests were involved in packing and distributing it.
5. What are the key initiatives by ONYX Group when it comes to wellness?
Wellness is a huge segment for us. We recently launched our high-end spa brand, Maai Spa, which stands out with its innovative holistic mood therapy treatments. Additionally, we also offer wellness programmes at our properties, including sessions led by experts in yoga, meditation, Pilates, and Zumba. Guests at Amari properties receive a weekly schedule of these classes upon check-in, allowing them to participate at their convenience. We also host expert talks and workshops on stress management and meditation. Furthermore, recognising the growing demand for healthy dining, our menus now feature a variety of options, including keto, low-carb, and high-protein meals to cater to health-conscious guests.
Additionally, our Shama service residences feature the Shama Social Club, a concept designed to foster community among residents and connect them with the local neighbourhood. The Shama Social Hub provides communal spaces where residents can work from home or remotely, making it an ideal choice for those working from Thailand. For Indian travellers seeking experiential stays, the Shama Social Hub also offers a unique opportunity to immerse themselves in the local culture and dining scene. This approach has proven popular, aligning with the growing demand for hybrid hospitality that blends comfortable living with local experiences.
6. What's next for ONYX?
Looking ahead, ONYX aims to be the premier medium-sized hospitality management company in Southeast Asia. Our vision centres on two key elements: "medium-sized" and "Southeast Asia." We want to prioritise quality over quantity, focusing on steady and sustainable growth. Secondly, Southeast Asia is our core strength and home ground; with 11 of our 40 properties in the region, including owned land and assets, and strong relationships with local owners and developers, it remains our primary focus.
Our growth plans include seven new hotels in the pipeline—two in Thailand, two in Malaysia, and one each in Laos, Colombo, and Japan. We currently operate 40 hotels and aim to reach 50 by the end of next year, with a target of 70 by 2028. While our current focus is Southeast Asia, we remain open to opportunities in India that align with our brand values and strategic goals. If a suitable opportunity arises to introduce our contemporary Thai hospitality to India, we will certainly consider it.
