Gifts, Dinner Vouchers, Pre-Diwali Bashes By Corporates Light Up Hotel Biz

The hospitality sector is rolling out the red carpet for corporates this Diwali after nearly a three-year break. From curated gift hampers, sweet boxes, and fine dining vouchers to hosting big-ticket pre-Diwali bashes, hotels are presenting a smörgåsbord of offerings.

This comes at a time when companies across sectors are seeking to get employees back to office after a gap of almost three years, say hotel executives.

“This year, we are seeing a lot of corporates hosting Diwali bashes for their employees and stakeholders. While these still may not be as big as 2019, that they are making a comeback after two years is encouraging,” says Sachin Mylavarapu, area director of operations-South and East Asia, Bangladesh, and Sri Lanka at Marriott International.

Nandivardhan Jain, founder and chief executive officer at Noesis Capital Advisors, says the razzmatazz at banquets was conspicuous by its absence. “But it is back, with demand picking up across locations and segments.”

“In Bengaluru, we see at least 80-90 per cent of the workforce back in office. Conferences, events, meetings, celebrations, and conventions are in full force,” says Ajay Sampige, assistant vice-president, Royal Orchid and Regenta Hotels.

The hospitality industry is witnessing an increase in the bookings for MICE (meetings, incentives, conferences, and exhibitions) events and corporate travel.

Companies across sectors, particularly multinationals, want to do more for employees to get them to return to work.

The pan-Indian average occupancy at hotels for the first half of 2022-23 is expected to be in the 63-65 per cent band — 22-25 percentage points higher than the first half of 2021-22, and almost clawing back to pre-pandemic levels, says a CareEdge report on Wednesday.

Strong recovery in demand is driving a steady increase in the average room rate (ARR), with hotels, particularly in the leisure segment, surpassing pre-pandemic ARR, along with corporate travel and MICE gaining momentum, it observes.

“We are now doing office catering much more, keeping in mind employee well-being. Healthy meals, especially vegan, are the preferred choices,” says Sampige.

Also, most large companies, small and medium-sized enterprises, and start-ups are leveraging the festival season and offering breaks to employees by booking them staycations or organising mega events with their families serving as an ice-breaker after two years of working remotely, he says.

“In addition to events, corporate gifting has emerged as a mega trend this year. People are out there celebrating,” says Shibil Malik, general manager, Sheraton Grand Bangalore Hotel at Brigade Gateway.

Hotels have sharpened their focus and corporate gifting has now emerged an important segment, he adds.

Corporate gifting accounts for only 1 per cent of a hotel’s total revenue. But it’s a good branding exercise, says Jain.

Sheraton Grand Bangalore clocked a revenue of Rs 50 lakh just from corporate gifting in 2019 and has almost touched that mark this year. The demand is not only from the information technology sector, but also from manufacturing and health care sectors.

Marriott, too, is making the most of it with its ‘Diwali with Marriott’. Ahead of the festival season, it tied up with fashion designer Manish Malhotra to design sweet boxes. The association, says Mylavarapu, has added more bling to the otherwise cookie-cutter corporate gift hampers.

“It’s not just a box but a collectible,” he says.

So far, the hotel chain has seen an increase of 20 per cent in the Bonvoy offerings and expects it to increase further as the week-long festivities kick in with Dhanteras.