Dupe Olusola : Rising Energy Costs Still a Big Deal in Hospitality Business
HOSPITALITY
Managing Director, Transcorp Hotels Plc, Dupe Olusola, in this interview with Festus Akanbi speaks on sundry issues including the rising energy costs in the hospitality business; how the changing needs of guests are putting hotel managements on their toes, and the urgent need for the in-coming administration to improve the ease of doing business in Nigeria
For the hospitality industry to grow, what specific measures will you suggest for the incoming administration?
Generally, our country needs an enabling environment to ensure economic growth. Security, the right policies that improve the ease of doing business, infrastructural development, and encouraging private sector investment, among others, are critical factors for growth. I expect the incoming administration to focus on these things, as they will help our economy blossom and all industries, including hospitality, thrive.
Can you speak to any recent changes or developments within the industry that may have impacted your company’s performance?
Today’s guests know what they want and they expect brands to satisfy their expectations. Yet, these expectations change from time to time and brands need to keep up. Changing customer preferences ensures that we continue to innovate. Constantly understanding the varying needs of our guests keep us on our toes to always deliver exceptional services, and exploits every tool that allows us to satisfy our guests, including the adoption of new technologies. Thus, we are always innovating and adapting to satisfy and surpass the expectations of our guests. This has ensured we remain competitive, achieving great results and breaking records.
What do you think contributed to the successful results Transcorp Hotels Plc achieved in 2022?
A combination of different strategies contributed to our successful results in 2022, including diversifying our segments and offerings, and focusing on exploiting maximum value from our international business travel and leisure businesses. Also, our commitment to innovation and exceptional guest experience has been instrumental to our growth. Guided by our core values of excellence, execution, and enterprise, we strive to always satisfy the dynamic preferences of our guests and expand our offerings strategically to cater to their needs. Our excellent financial performance in 2022, despite adverse economic conditions, is due to the effective execution of our strategy, our nimbleness, and our unswerving commitment to delivering value to our stakeholders, especially our guests.
What were the specific strategies or initiatives that Transcorp Hotels implemented to drive growth and success?
Leading on from the pandemic, we introduced some initiatives to improve our attraction to guests, at a time people were avoiding public spaces like hotels. We introduced our drive-through cinema, as well as leisure activities at the hotel, opening up to a new category of guests, especially with our predominant International Business Travel business dwindling, as people favoured virtual meetings to curtail the spread of the virus. Our CleanStay programme was the assurance our guests needed to come to our property; the program ensured that the highest level of cleanliness and safety is maintained across our property.
In addition, our staff deliver the exceptional service we constantly promise and deliver to our guests. To ensure they are always at their best to fulfill our promise, we invest in employee training and development, while also leveraging technology to enhance customer experience, and optimising operational efficiency to reduce costs. We make good use of data to understand our guests better and introduce new offerings that they desire; new menus, room variants, wellness services, etc. Today, we have a spa at Transcorp Hilton Abuja in response to the growing demand for wellness offerings by our guests.
We are developing a 5,000-capacity conference centre at Transcorp Hilton Abuja to cater to big events that we have previously missed due to the size of our current main event venue. Guests prefer to stay at Transcorp Hilton, but they even like it better when their events also hold here. This will be the case starting from Q1 2024.
How does your company plan to continue this growth trajectory in the coming years and what do you think sets your brand apart from other hospitality brands in the market?
To continue our growth trajectory, we are focusing on expanding our footprint. Since launching Aura by Transcorp Hotels, our online platform for booking homes, hotels, and experiences, we have been able to extend our services to about 30 states in Nigeria, holding over 5,000 rooms in ownership and management, across hotels and homes listed on Aura by Transcorp Hotels. We are also working on a five-star hotel in the heart of Lagos. When completed, Transcorp Hilton, Ikoyi Lagos will compete favourably with some of the best hotels in the world. Our commitment to exceptional customer service and focus on sustainability and social responsibility sets us apart from other hospitality brands. Moreover, our evolution over the years, finding the sweet spot between business and leisure to become a top destination for leisure travellers, while still maintaining our position as Africa’s best luxury business hotel, is a feat most hospitality brands will find very difficult to achieve.
How has Transcorp Hotels adapted to the changing landscape of the hospitality industry?
Our investment in technology, commitment to innovation, enhancement of our service offerings, and improvement of our operational efficiency, have helped us adapt well to the changing landscape of the industry.
What are your thoughts on the current state of the hospitality industry, and where do you see it heading in the next few years?
The current state of the hospitality industry is characterised by changing customer preferences, and the impact of technology on the sector. The COVID-19 pandemic has also had a significant impact on the industry, with many businesses struggling to remain afloat. However, there are opportunities for growth in areas such as sustainability, personalised customer experiences, and technology adoption. In the next few years, I expect the industry to continue to evolve and adapt to meet changing customer needs and preferences. Only brands that do this very well will remain relevant.
Can you speak to any challenges Transcorp Hotels faced over the past year and how you overcame them?
Rising costs, especially energy costs have been a very big challenge for our business, in addition to the supply chain, which continues to be a challenge. I must stress that these challenges are not peculiar to our business, Nigeria as a whole needs to address rising energy costs. Therefore, we prioritised cost management strategies. We are also constantly looking inwards to see how we can address most of our supply needs locally without comprising our standards. Now, more than ever, we are enhancing our marketing strategy, and focusing on optimising operational efficiency.
What steps has Transcorp Hotels taken to ensure a positive impact on the environment and local communities?
You would recall my stance on delivering value to our stakeholders. Our communities are very important stakeholders that we do not take for granted. Hence, as part of our ESG program, we take great care of our environment and communities. By implementing environmentally-friendly practices such as energy-efficient lighting and water conservation measures, supporting local suppliers and vendors, and investing in community development initiatives such as education and healthcare, we have made a lot of positive impacts. However, it is good to mention a few of the activities we are engaged in. Every year, we join the rest of the world to celebrate Earth Hour, the biggest hour for the earth when non-essential lights are turned off for one hour to show our collective commitment to energy conservation. We train women in the fashion business as part of our Business Empowerment Programme for Women, every year. Our Soap for Hope project also sees us donate soap to communities as we promote personal hygiene, prevent avoidable diseases, and create awareness for recycling and repurposing soap waste. Used soaps are collected from the hotel, scraped, sanitised, flavoured, coloured, and moulded into new exotic soap bars which are wrapped and distributed to pupils and students of primary/secondary schools and to indigenes of rural communities where soap is a luxury. Since its inception, the Soap for Hope project has distributed over 3,200 soaps to the beneficiaries of the programme.
In 2022, Transcorp Hotels recycled 15,271kg of recyclable waste from the landfill into productive uses, and also donated a portion of waste collected at its property towards Chanja Datti’s Bottles for Books Initiative, helping the NGO to support two full-time waste collectors and two out-of-school children.
These are some of the ways we are making a positive impact on our environment and communities.
How do you ensure that you are constantly learning and growing in your profession, and what steps do you take to stay ahead of industry trends?
As a leader, I believe it is crucial to always exploit opportunities to learn and grow and cultivate a learning culture. I expose myself to learning, beyond my day-to-day activities, taking learning points from every experience and absorbing myself in reading.
What has your journey been like rising to the top of your career?
Overall, my journey has been really exciting, with lots of learning and growth along the way. Each experience has stretched me to achieve things I never thought I could achieve and beyond targets anyone has set for me, helping me to deliver great results.
Delivering optimum results and adding value has always been my priority, so I always look forward to challenges and tasks that will help me grow.
What do you enjoy most about what you do?
Overall, life must be enjoyed! I embrace life and all that it offers. I love my team and the work that we do, the value we create, and the impact that we bring. I take pride in creating a culture of excellence and empowering my team to achieve their full potential. Seeing my team succeed and grow is incredibly rewarding and motivating.
