THE CHALLENGES

THE SHIFT IN CONSUMER BEHAVIOUR

Many consumers at present are interested in more than just their own health. They also think about the well-being of the planet. They now seek out establishments that not only offer them healthy food and beverage options but are also sensitive to their environmental concerns.

THE SHIFT IN REGULATORY LANDSCAPE

In India, the government has recently mandated that hotels provide in-house bottled water to guests instead of commercial PET water bottles. This regulation is aimed at reducing plastic waste, ensuring water quality, and promoting sustainability.

These regulations reflect a broader global trend towards environmental responsibility and consumer health, requiring businesses to adapt quickly.

Governments around the world are¬ enforcing rigorous health safety and eco-friendly rules particularly on businesses such as packaged drinking water and hotels.

HEALTH

If you would have asked us couple of years ago what packaged water companies produce? Our answer would have been plastic bottles. To make the water safe for human consumption, companies are now prohibited from selling packaged water that lacks permissible limits of minerals like calcium and magnesium. Taking into account that minerals are considered vital for health and that essential minerals are removed in the process of water filtration new guidelines were pushed in India effective from year 2021 onwards.

ENVIRONMENT

To mitigate the worst effects of pollution caused by plastic, government of India has banned single use plastic in phases. These me¬asures are driving hotels to reaffirm¬ their commitment towards guest health and¬ environmental conservation. Because of the nature of the business which is high energy, high water consumption and waste generations hotels leave a major carbon footprint. Hotels in India and world over¬ are gradually embracing sustainable¬ practices and gree¬n initiatives. The motivation for such transformation is not only because of a sense of corporate responsibility. It is also underpinned by sound business strategie¬s such as evolving guest preferences, being regulatory compliant and long-term cost savings.

IMPACT ON HOTELS

Large hotel chains with global operations have quickly responded by eliminating their reliance on single-use plastic amenities and opting for in-house bottled water. Independently owned and managed hotels are slow yet catching up in the pursuit of adapting to these regulations. As a result of our yearlong research and interactions with some prominent hoteliers we have recognized the following factors for a slow adoption (Since our journey began with water based solutions, our research was inclined more towards such challenges):

• The transition requires installing new infrastructure like bottling plants, which is an upfront investment.
• Hotels are like big engines and any small changes in operations requires a lot of resources and effort due to the scale involved.
• Finding suitable and readily available alternative solutions.
• Traditionally, hotels profited from selling branded bottled water to guests, a significant revenue stream that has now been disrupted.
• To sell water packaged in bottles there are mandatory guidelines for physical and chemical parameters like TDS and PH value on top of adding essential minerals. That puts an extra burden of cost for separate machines, not to mention the recurring maintenance cost.
• Most of the bottling stations rely on adding commercial mineral compounds. These synthetic mineral additives lack the complexity and balance found in naturally occurring minerals. It is essential to recognize that synthetic minerals do not possess the same bioavailability or nutritional profile and the body may struggle to absorb these synthetic compounds effectively. Moreover being opaque about the source of minerals can be a big red flag in the eyes of a consumer.

The key challenge therefore is finding a way to turn this regulatory requirement into a competitive advantage and new revenue opportunity without compromising on health.

THE SOLUTION

INTRODUCING OUR ‘Source to Glass’ CONCEPT – enabling hotels and restaurants to produce mineralized water on-site.

One solution that will help hotels achieve the sustainability goals, with no impact on day-to-day operations, significantly reduce the transitional cost and carbon footprint.

EASY INTEGRATION & SINGLE SOLUTION

• You can incorporate the mineral complex into the water bottling process manually or integrate it with the existing bottling plant. No additional machinery required.
• We provide consultative service and can help setup your in-house bottling plant with comprehensive support and on-site training to ensure seamless implementation.
• Our mineral solution can address all regulatory obligations of selling packaged water. It not only mineralizes the water but also achieves the prescribed parameters of TDS and PH values.

HEALTHIER OPTION

• Our solution is not only a better alternative to synthetic minerals, its unique composition of full spectrum minerals makes it superior to any other product available.
• These minerals exist in a balanced ratio, mirroring the mineral profile found in our bodies and in nature. This balance and bioavailability enables our body to instantly absorb them and having it with water makes it a palatable and a refreshing experience.

THE OPPORTUNITIES

REVENUE POTENTIAL

Hotels have a lot of functional areas that include guest rooms, multiple dining areas, recreational areas, business centres, conferencing facilities and banquet halls among other spaces. One thing that ties them together is that water is served in all these areas. . It is also important to note that a substantial percentage of hotel revenue comes from perishable items like food and beverage. Selling a perishable, high quality, in-house packaged water can create a new revenue stream, offsetting the loss from discontinued sales of branded PET bottled water and recovering the cost of in-house bottling infrastructure.

OWN PREMIUM PRODUCT

The packaged water industry has now evolved to a point that it has gone far beyond the “spring water” category. Packaged water now comes with flavours, positively charged ions, vitamins, minerals, carbon and there is a rising demand for such diverse products. There could be lots of reasons for that but the key driver is that consumers are looking for water that more than quenching their thirst, offers targeted nutritional benefits whether it is energy, immunity or gut health.

You can create a fine, health-focused product by enriching your in-house bottled water with our mineral solution. If your bottled water covers the overall spectrum of health benefits, you have the foundations to charge a price on it. It is your call whether you wish to stay in a reasonable price window or charge a premium for such a quality product.

BRAND IMAGE

Sustainable practices make hotels stand out these days. Today’s guest are mindful about companies they give their business to, promote health and follow environmentally sound practices.

A lot of hotels are agile in recognizing this consumer behaviour and have developed strategies to squeeze the most value out of each guest that enters their door. By reducing single use plastic in toiletries, food packaging and offering nutritional dining menu options they have demonstrated their commitment towards changing guest preferences. Due to lack of a viable option and monetary incentive only a few have given importance to healthy water alternatives.

Coremin can deliver on both the fronts. It can deliver both health and a compelling story that your guests will respond to. A story that moves your product from being a mere commodity to something with an emotional appeal, whether it is health or environmental care.

Hotels that have applied such tactics have enhanced their brand loyalty and have positioned themselves as responsible and innovative establishments.

MARKETING

In this age of internet, social-media exerts influence over our decision-making. This holds true even for potential travellers who are looking for places to stay. Whether it is a Google review, a friend's Facebook post, an Influencer’s Instagram story or a Youtube video by a travel Vlogger, what we view online can have an impact on our choices.

Every guest these days can possibly be a free digital hoarding for a hotel simply because they like to share their experiences. Majority of user-generated content which is created and posted by ordinary travellers revolves around buzzwords, hashtags and whatever is trending like sustainable tourism, health and environment. Their content serves as social proof and can significantly swing decisions more than any expensive and fancy advertising by a hotel.

When given a choice guests are now leaning towards healthier options. This reflects in the rise in the se¬arch for terms such as e¬co-friendly hotels on travel booking platforms. According to a recent Trip Advisor survey 62% of travellers actively seek out environmentally friendly hotels, food and transportation.

Travellers vote with their feet and a hotel with environment friendly credentials attracts more guests and draws in more revenue.

Exceptional service and good food are no doubt major factors that bring the best reviews out of hotel patrons. However subtle actions can also leave a profound positive impact like complimentary water bottles at check-in and turn downs service. In this way thanking a guest for accepting requests such as reusing linen and towels or toiletries on demand.