Shorter-term membership packages may be considered.
Despite the
downturn and the paralysis in the hospitality sector, Mahindra
Holidays & Resorts, the country’s only publicly-traded company that
sells time-shares for vacation packages will utilise Rs 1,000 crores in capex
for new assets and enhancing existing inventory over the next two years.
"The immediate challenges, however, do include reduced unit realisation as members go for three-year membership packages as opposed to the historical 25-year packages that the company has been selling to members", said Arun Nanda, Chairman of Club Mahindra. “The 3-year memberships will be the way forward”, he added
What about
reducing the term of membership to a more short-term duration like, say, one
year which would then give the company a wider net for revenue? Mahindra
Holidays & Resorts CEO and MD Kavinder Singh said that there is already a
senior citizen package that gives memberships for a year. That may be extended
to the general masses in due course.
Mahindra
Holidays & Resorts, the company that runs Club Mahindra counts its key
expansions to include a 30-acre parcel off land en route to Goa, where a
150-room resort will be built, a new 50-room resort near Simla, a 155-room Fort
resort in Goa which is expected to be ready by Diwali, and another 170-odd room
to be added across three other existing resorts across the country, in addition
to new land-banks near Pune, Nanda said.
Work in Goa,
where the company's biggest new location is, started on the 4th of May even as
design, planning approvals are in process for Theog and Kandaghat locations
(Himachal Pradesh), Nanda said. "We have also started planning and design
on land near Mahabalipuram and Mahabaleshwar. There will be no slowdown in our
expansion plans as we foresee demand for our properties to continue to
grow."
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