Middle And Up

Alan D’Mello

As incredible as it may seem, greater opportunity exists in the mid-market segment than the five-star category. For generations, as far as even the oldest can remember, working in the five-stars was the only respectable hospitality career to have. That was then, this is now. The focus among hotel owners, developers, managers and brands is squarely on India’s mid-market segment. So popular is the move to the ‘budget’ segment that at a recent investment conference, for the first time, discussions on three-stars outweighed the five-stars.

Do not feel dejected if you have a sound career charted in the rarefied atmosphere of five-stars. Even with the segment arguably nearing saturation, considerable opportunities do exist both in the existing and new properties being built. The question then arises, why move to lower grade hotels where the pay is not attractive? My reply; longevity, first-mover advantage and the opportunity to be part of one of the greatest changes in Indian hospitality. If I did not believe this, this article would not have been written.

Longevity

Take note; you will be gainfully employed for your entire career and beyond. Mid-market hotels are the back bone of the hospitality industry the world over. Most of the big international names in India today such as Marriott, Holiday Inn, Carlson, Hilton, Hyatt, etc made their fortunes in mid-market hotels before moving to the high visibility glamour of the five-stars. Mid-market hotels continue to be their main business. In fact, two of the world’s largest hotel groups, Best Western and Choice Hotels are solely mid-market brands. And yes, they are multi-billion dollar companies whose managers earn seven digit salaries.

Being more economical and thus more popular, budget hotels by far have the greatest appeal in India. Because of this, the ratio of mid-market hotels presently outnumbered the five-stars 50:1 and will grow to roughly 75 times the latter’s number in the coming decade. Translated, you will have a market 50 times larger in which to find gainful employment. As you can imagine, with well trained managers until now preferring five-stars, there is a serious shortage of quality manpower. Thus, the demand and supply ratio is stacked in your favour and will grow for a long time to come. Rather than hunt for jobs, you will be in the envious position of having offers coming your way right through his career.

First-Mover Advantage

There is no better way to say it, dear student, you will be a pioneer. Being first may appeal to just a few, but remember Murthy (Infosys), Oberoi (Oberoi Hotels), Gates (Microsoft) and Kapoor (Balaji Films) are the biggest and richest because they are better than the others at what they do, but importantly, they did it first. In any business, including hotels, being first is an enormous advantage.

The same principle applies to your career. Those graduating in the coming two years will have the unique privilege of saying they were amongst the first of their generation to back the biggest thing to happen to their profession. As a professional, your skills as a trained manager makes you rare and thus will put you in demand across all brands, management companies and property owners eager for quality manpower to ensure their investments turn profitable. The biggest recruiters today are the international brands for whom college training is mandatory. Being amongst the first will almost certainly guarantee employment, decent remuneration and a structured environment in which to develop. It will be this ‘international’ knowledge which will ensure you a long, long career.

Part Of Progress

Yet more than privilege, being amongst the first means being followed and looked up to since you did it first. Everyone else simply follows. In business circles, a saying goes as follows: ‘Nine times on 10, what you though as new has been done before’. The mid-market segment on the verge of launch in India offers the unique opportunity of a virgin market on which to stamp your mark. It is an opportunity very few receive. Nearly everything you do will be exciting as it is being done for the first time in India.

Ashish Jakhanwala’s career is a good example to state here. Barely a decade after graduating from hotel management, he has risen to become associate vice-president (AVP) at InterGlobe Hotels, a joint venture of one of India’s largest travel houses and Accor, a pioneer and among the world’s top three mid-market conglomerates. His way to AVP included four years with an interior and facilities design consultant, giving him the rare combination of general management and design skill, for which Accor sought him out. Even though his career began in a five-star hotel, Ashish’s unconventional career moves have him in a position of influence far faster and greater than his peers, many of whom are still in middle management. As AVP, he is a key member of the team fine-tuning Accor’s already well honed systems for India, an act which will define the international company’s success on the subcontinent. It is a sure bet, when you work for Accor’s mid-market brands in India, you will experience his policies up close.

I have to be honest with you, there is much more to understand in the rapidly developing world of mid-market hotels than which is presently visible in the industry or stated in this article. Once the excitement of your first job passes and the years pass by, your long-term commitment to your career and those dependent on you, will undoubtedly take priority.

Yes, with all things pioneering, there are inevitable ironies. Unless you are with the best companies, starting salaries are lower than the five-stars, though the climb higher is faster. Work conditions may be truly tough, yet the move to the top position easier. And initially, your classmates in the limited five-star segment will look down upon you, only to later envy the seemingly limitless job options and career possibilities available to you. The advantage is with you.

(The author has been associated with the hospitality industry for 12 years and owns Hotel Fortunes, a business development firm for the mid-market segment whose services include career counselling and management. He can be contacted at (022) 5585 2882 and alan@hotelfortunes.com)