Orchid Ecotel: Leveraging Green Hoteling as Core Competency
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Publication Date:
October 26, 2011
Industry:
Arts & Culture
Industry:
Hospitality
Source:
Ivey Publishing
Vithal Kamat (CMD, Kamat Hotels India Ltd.) is a second generation entrepreneur who has taken the Kamat Hotels brand to new heights. A small restaurant chain was transformed into a full-fledged hospitality services group under his leadership. Kamat Hotels (India) Ltd. included five major verticals from five-star luxury hotels (The Orchid Ecotel) to economy restaurants (namely Kamat Restaurants) that catered to the different customer segments. Kamat had ambitious plans for the expansion of every vertical using alternative growth strategies. However, the recent economic slump had caused a sudden setback due to the fall in average room occupancy and competing room-tariff rates offered by other hotels. In such a tumultuous situation, Kamat planned to use the core competency of the hotel as an ‘ecotel,’ that is, an environment friendly hotel, to go in for corporate branding and lever its position in the market. The case illustrates the challenges faced by Kamat in extending the core competency of ‘The Orchid’ to its other verticals. The Orchid had performed better than the industry average until 2008. However, in 2009, the performance dipped, partly because of the economic recession. This prompted the board members of the company to decide on extending the core competency of the ecologically sustainable hotel into other verticals. However, this decision had to be considered carefully in the light of its impact on ‘The Orchid’ as well as on the other verticals. What are the challenges that will be faced while extending the core competency of ‘ecoteling’ to the other verticals? There were numerous related issues that needed to be addressed strategically as well as tactically, in order to maintain a balance between extending the core competencies across the verticals while extending the brand per se.
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Orchid Ecotel: Leveraging Green Hoteling as Core Competency
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