|
Raymond Bickson is
a hotelier of the globalised universe. The 48-year-old
American, who recently succeeded R. K. Krishna Kumar as
the managing director of Indian Hotels, has travelled
the world during an outstanding 30-year professional career
in the hospitality business.
Mr Bickson, a native of Hawaii,
joined Indian Hotels, the owners of the renowned Taj
Group, in January 2003 as chief operating officer of
its luxury hotels division. Prior to that he was the
general manager of The Mark, New York, now owned by
the Mandarin Oriental Hotel Group.
Mr Bickson honed his skills in
luxury hotels across Europe, North America, Australia
and Asia. He started with the Berlin Hilton in 1973
and has worked in a variety of exotic locations in,
among many countries, France, Switzerland, the United
States, Australia and China.
Mr Bickson’s academic credentials
are just as impressive. He has studied at the Goethe
Institute in Berlin, the Universite’ de Sorbonne in
Paris, L'École Hôtelière in Lausanne, and Cornell University
in New York, taking in languages, culture, hotel services,
cooking, and financial management. He is also a graduate
of the Harvard Business School.
Voted a top-10 hotel manager
by Leaders magazine in 1997 and 2000 and best
hotel general manager by Gallivanter’s Guide
in 2000, Mr Bickson was nominated for the 2002 ‘independent
hotelier of the world’ award by Hotels magazine.
"The Taj is at an inflection
point … and Bickson is the right person to be at the
helm," said Krishna Kumar while handing over the
baton. In this interview with Christabelle Noronha,
Mr Bickson talks about the company’s multiple plans
for the future.
You have taken over
the mantle of managing director just as the Taj has
completed 100 years. What are your short-term plans?
Where do you see growth coming from?
There are a number of targets that have been set and,
following what Mr Krishna Kumar and the Taj Group team
have done, I think a lot of that has started and is
in play. We have a number of areas that we would like
to focus on.
Our commitment is to make the
Taj a byword for luxury and the Taj Mahal a synonym
for splendour. We understand the priorities of premium
marketing and we intend to serve them in India and abroad.
As part of the strategy set during the last three years,
we will be looking at the Taj’s brand architecture.
We need to take advantage of the significant value of
the Taj brand.
While we have a diverse portfolio,
which includes many types of products, the Taj name
represents the high end of our products. We will have
the Taj brand and, then, segments of various types within
this brand. It may be, for instance, Gateway by Taj
or Residency by Taj. We won’t necessarily carry the
Taj name up front.
We would like to have an international
outlook. Beyond the brand architecture, our strategy
includes re-launching our luxury properties to project
the international image of what the Taj is. Basically,
there are two ways we want to look at growth.
Locally, our expansion for growth
will be through our extension of the brand. We have
the Taj Wellington Mews as our first foray into luxury
residences. That’s being opened here in Mumbai in March
2004. This is a completely new brand extension that
we are undertaking.
Another area we are planning
to get into in a major way is spas, which is a $14-billion
global industry today. We want to take advantage of
this market. We will be adding 16 spas to our stable
over the next three years (currently we have six). Spas
can contribute up to 15 per cent to the total revenue
of the hotel; it’s a big business. People always talk
about spas in Thailand, Indonesia, Malaysia, etc. But
the best luxury spas today are in India; we offer meditation,
yoga, aromatherapy …
Will these spas have
a separate Taj branding?
We will have two spa companies developing our own Taj
brand. For instance, we have a 17,000-square foot spa
at the Taj Wellington Mews. Our Rambaug property has
a 20,000-square foot spa, and Taj Land’s End has 22,000
square feet. There are others, too, at Udaipur, Hyderabad
and elsewhere.
We want to create a destination
spa for Taj under a Taj brand. Then we may be able to
take our special Taj spa menu and incorporate it into
all our different spas. We will be taking advantage
of being in India, the ayurveda aspect and all that.
We will be weaving a whole package into our spa services.
Another component of our strategy
involves value-driven hotels (we call this ‘Project
Wildfire’). It’s a new concept where we operate value
products in specific locations: religious sites, next
to railway stations, next to technology parks. We have
the technology to offer a room at under Rs 1,000 a day
in what would essentially be no-frills hotels.
These hotels, modular in design,
can be built quickly. They can have up to 100 rooms
in a detailed and planned structure, with IT infrastructure
that other hotel companies don’t have. Our first Wildfire
project should be coming up in Bangalore within the
next six months.
Yet another of our expansion
initiatives is with regard to India’s wildlife parks.
For this we have signed an agreement with the Conservation
Corporation of Africa, one of the world’s most successful
conservation companies. We are going to undertake our
first project in this sphere in Ranthambore. We’ll have
luxury tents and such; it affords us a unique opportunity
to offer a specialised wildlife experience. The first
of these will be up and running next year.
What about global expansion?
We are actively looking at global expansion, which is
why it’s important for us to have a global architecture
in place. We need to have a broader reach, a more global
distribution network, and a more balanced portfolio.
We cannot have all our eggs in one basket, or we’ll
remain beholden to events which affect us regionally,
which affect our entire business.
If you look at the events of
last year, it was a very difficult period. We had the
travel advisories, then the impact of 9/11. Global expansion
will allow us access to a larger distribution of clientele;
it will also give us a more synchronous kind of portfolio.
If, for example, the Asian market is down, the European
market will be up.
We cannot remain a big regional
player if we want to survive in the next century. We
have to go beyond Indian shores, we have to take our
hospitality expertise to the global marketplace. We
are interested in the Asean countries, and we are hugely
interested in having closer relations with China.
We believe there’s a huge amount
to be learned from China. It’s a country we believe
we have to be in, especially so given the proximity
of the place. It’s a calling card for Tata companies
in general, and the Taj will be an image for Tata, making
us a globally known player. We are looking at acquisitions
there of clusters of small hotels. There are other opportunities,
too, in North America, Asia, Europe, South America and
Africa.
In which segment would
these hotels be?
These would mainly be in the luxury segment, which is
why the brand architecture is so important. It is our
biggest priority right now.
What about the financial
restructuring of the company?
We will continue with our balance sheet restructuring
to try to consolidate and condense our existing portfolio,
get it more in line with the 'asset-light' and 'management
contract strategy' we want to put in place. We want
to be more nimble, take on more management contracts,
expand our reach.
We are in practically every corner
of India right now. We need to strengthen our balance
sheet by taking idle assets that are unproductive and
re-deploy them to make the company more manageable.
Our goal is to reduce our number of companies — a process
that has already started — from 60 to 30 in the next
year.
How much of a role
does technology play in the hospitality business?
The world looks to India as an IT leader. We would like
to position the Taj as the foremost hospitality company
as far as IT is concerned. We have the possibility of
working with
Tata Consultancy Services, which is one of the largest
IT and software development companies in the world.
We will continue working towards
being EVA (economic value added) positive; we hope to
get there in the next three years. One of the other
things we will be pursuing is the quest for quality
through the
Tata Business Excellency Model (TBEM), not just
pushing this through the luxury hotels but across the
entire organisation.
The goal is to drive TBEM through
the entire organisation within the next year. We are
working with McKinsey to see how we can become more
efficient, by looking at the way we do business and
finding where we can have economies of scale in the
current setup.
Most companies recognise
the need to be customer-centric. How does Indian Hotels
plan to make this part of its business and its mission?
In order to make the Taj
a product and a service that customers aspire to, we
need to make it a byword for luxury. The Taj brand will
strive to deliver to its guests a sense of discovery.
We recognise the importance of the human spirit and
the human soul in caring for others. This is what has
sustained us and made us successful in the first 100
years of our existence.
What we want to give our guests
is luxury, not just comfort. Luxury is an unanticipated
pleasure, luxury is embedded in a world of uniqueness,
it is dreading the idea that you have to leave. Luxury
is a dream and a memory. If you look at the hospitality
business around the world, it’s the luxury and budget
hotels that are doing well. We are at the top end of
the marketplace, which is the luxury hotels, and that’s
where we need to position ourselves.
We will have to keep ourselves
informed on global issues. The company has to be market
driven, it has to be responsive to the financials, to
its shareholders. We have to be firm on staying competitive
and always make sure we are one step ahead of our competitors.
We need to understand the importance of third-party
endorsements and we need to focus on branding to establish
values and experiences.
One of the areas where the Taj
has started taking a leadership role is in promoting
India as a destination; we have to work with other Indian
hotel companies on this front. India gets 2.4 million
visitors a year, whereas Hawaii attracts 7 million and
New York City 38-40 million. India has a wealth of travel
experiences to offer. We have to work together, all
of us along with the government, to improve our tourism
industry. We need to make India a global tourist destination.
Has the Taj taken any
initiatives in this direction?
We have been involved with the World Tourism and Travel
Council. We also have our own tourism and travel council
here. We have links with the Federation of Indian Chambers
of Commerce and Industry and the Indian Hotels Association.
There’s a lot of work being done.
What’s your definition
of success?
It is to be happy every day with my family.
And in business?
To be creative, to surpass the expectations of all your
constituencies — which would be your guests and shareholders,
in a way — and craft a business that has a lasting effect.
You always seem to
be smiling. Is there anything that annoys you?
Apathy, where someone doesn’t care or doesn’t try. There’s
no room in the world for people who are pessimistic.
You must enjoy what you do; if you don’t then do something
else. Also, there’s no room for arrogance. We’re all
here together and we need to make the most of it. One
has to be open and receptive to the staff that makes
the experience happen. The Taj team can say how wonderful
the Taj is, what great things we do, but it’s really
the staff that we have that makes our hotel and our
company.
Uploaded on June 26, 2003

|