Friday, October 20, 2000
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Indian Hotels plans Rs 138 cr investments 

Our Corporate Bureau  
Mumbai, Oct 19: Indian Hotels is implementing a three-pronged strategy to enhance revenues from investments. The company is implementing a Rs 50-crore employee rationalisation drive (VRS) that will trim down 1,100 employees which include 200 senior managers, a Rs 50-crore IT initiative to put in place an integrated customer information, central reservation and front-office system, and a Rs 38-crore refurbishment plan which will upgrade certain key properties of the group.

The proposed IT connectivity implementation is expected to bring in revenues to the tune of US $15,000 to $20,000 annually to the hotel chain.

Announcing the initiatives at the Indian Hotel Analysts' meet on Thursday here, Indian Hotels executive director Zubin Dubash said: ``Rationlisation of employee strength and the IT initiative Wide Area Network (WAN) will give the group a cutting edge in the wake of rising competition.'' WAN will have 16 nodes connected by V-Sat and lease-lines and virtual private network points.

``The software for the IT initiative is being provided by Fidelio Micos, a US-based software applications provider,'' said Mr Sudir Nagpal, director, Piem Hotels Ltd.

A special IT team at Indian Hotels are implementing the IT initiative at various locations of the group. The entire process, which is expected to provide connectivity between hotels, customers and various other supply chains, will be in place by March 2001.

The IT roll-out plan is being implemented in three phases. First is the front-of-the-office, which will integrate the property management systems, point sale systems, customer sales, customer loyalty and data warehousing. The second part will focus on the `Heart of the House,' enhancing connectivity for the customers, installation of Internet access, advanced communications systems and interactive televsions. And the third part will involve the integrations of the back-office operations.

Indian Hotels is in the process of integrating its back-office operations to a single location.

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