Presentation Hotel Industry Finish

7/30/2019 Presentation Hotel Industry Finish

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Introduction to hotel industry


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Structure of the industry.


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Hotels in India are broadly classified into segmentsby the ministry of tourism, government of India. Therating are given based on general features andfacilities offered. These ratings are reviewed every 5

years.


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STAR RATED

HOTELS

5 DELUXE & 5: LUXURY AT HIGH

PRICE , 27 % GOVT.APPROVED ROOMS

FORMS 30% OFINDUSTRY

BUILT OVER

18000 sq.m AREA

2 & 1 :AROUND TOURIST

SPOT, PREFERRED

BY DOMESTIC

TOURIST

4 & 3 :FOR MIDDLE LEVEL

BUSINESS

EXECUTIVES/LEISURE

TRAVELLERS

Eg : ITC,TAJ GROUP,

OBEROI GROUP,

ITDC


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HOTELS

STAR

RATED

HOTELS

HERITAGE

HOTELS

BUDGET

HOTELS

FACILITY

HOTELS

RESORTS

UNCLASSI-

FIED

5 DELUXE

5

4

3

2

1

HERITAGE CLASSIC

HERITAGE GRAND

HERITAGE

BUSINESS HOTELS

AIRPORT HOTELS

HONEYMOON

HOTELS

MOTELS

GUEST HOUSES

LODGE

LUXURY

BUSINESS

LEISURE


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HERITAGE

CLASSIC:

HOTELS

CONSTRUCTEDBETWEEN

1920 - 1935

HERITAGE

GRAND:

HOTELS

CONSTRUCTEDPRIOR TO

1920

HERITAGE:

HOTELS

CONSTRUCTEDAROUND

19351950

HERITAGE

HOTELS

CHARACTERISED BYLESSER CAPITAL EXPENDITURE AND

AFFORDABILITY.

OPERATE FROM FORTS, PALACES, CASTLES, RIVER

LODGES, HERITAGE BUILDINGS ETC.


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SPECIALLY EQUIPED WITH CONFERENCE

ROOMS, SEMINAR HALLS, INTERNET

FACILITIES ETC. TO SUIT THE CORPORATE

GUESTS.

Eg: INTER-CONTINENTAL, CROWNE PLAZA

BUSINESS

HOTELS

AIRPORT

HOTELS

LOCATED NEAR AIRPORTS AND SUITABLE

FOR SHORT STAY TRAVELLERS.

ARE FOUND NEAR ALL MAJOR CITY

AIRPORTS.

HONEYMOON

HOTELS

MOSTLY LOCATED AT HILL STATIONS AND

SPECIALLY FASCILITATED TO SUIT THE

COMFORTS OF HONEYMOON COUPLES.

Eg. HOTEL WOODVILLE PALACE, CARLTON

HOTEL, HOTEL HONEYMOON INN ETC.

FACILITY HOTELS


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Key consumer segments.


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The business traveler: the business traveler is abusiness man or corporate executive traveling forbusiness proposes. This segment includes

corporates, both foreign and domestic, who openoffices in hotels for start-ups ,corporates who make aextended stay either for a long duration project orwaiting for permanent accommodation.


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The leisure traveler: the leisure traveler is a indian orforeign traveler whose primary purpose of visit is

holiday and sight-seeing.

Airline cabin crew: airline cabin crew forms another

important segment because of the repetitive andguranteed nature of the business they provide.


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SWOT Analysis.


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India's rich cultural heritage: with a historical backdropof 5,500 years, India is one big package of culture and

legend which never fails to captivate the imaginationof the visitor. Along with natural splendors like theHimalayas, the indo-gangetic plains, topical forestsand long coastline. A visit to the country is a changing

spectacle of religions ,customs, festivals , sights andsounds.


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Demand-supply gap: Indian hotel industry is currentlyfacing a mismatch between the demand and supply ofrooms leading to higher room rates and occupancylevels. With 95,000 odd rooms in the country, the size

of the hotel industry represents an abysmal figure forIndia's size and growth prospects. Though newcapacity are expected to come in the next 5 years,demand will outpace sully in the short to medium term.


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Government support: Till a few years ago, the Indiangovernment had a total apathy towards promotion oftourism. In fact, the industry did not find a place in the

governments fund allocation. Things have, however,witnessed a change. The government seems to haverealized the importance of tourism and is willing tospend towards the development of the industry. The

Incredible India campaign is a product of thisrealization. The focus on infrastructure, modernisationof airports, open sky policy, development of newtourist destinations and circuits, more fund allocation

towards tourism are some of the initiatives taken bythe government to promote tourism. The Indian hotelindustry stands to gain from this proactiveness shownby the government.


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Poor support infrastructure: India is currentlyspending a miniscule amount compared with itsneeds, on infrastructure. China is spending seventimes as much as India on infrastructure (excluding

real estate) in absolute terms. In 2003, total capitalspending on electricity, roads, airports, seaports andtelecom was US$150 bn in China (10.6% of GDP)compared with US$21 bn in India (3.5% of GDP).

However, over the past 2-3 years, the government hasrealized the importance of infrastructure and hasfocused on improving it.


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Opportunities. Rising Income: While there has been much talk about

record number of foreign tourist arrivals, very little hasactually been said or done about domestic tourism, which,according to our estimates, has registered a 40% annualgrowth in the last three years and is currently estimated at

300 m travelers. Per capita income grew by an impressive7.1% in 2005, while Gross Domestic Savings touched anall time high of 28%. Significantly, the present-dayconsumption boom in India has been influenced more byhigher disposable income rather than lower savings. Thisis good news, as income induced spending is likely tosustain itself for a longer period. Higher disposableincomes are also expected to enhance the concept oftraveling for leisure.


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Open sky benefits: The opening up of the aviation industry in Indiabrings exciting opportunities for the hotel industry (airlines transportaround 80% of international tourists). Increased airline activity has

stimulated demand and has helped to improve India's troubledinfrastructure. Increased competition among airline companies willfurther lead to the development of new and improved services. Alsothe open skies policy has benefited both international and domestictravel.

New business opportunities: We believe that, over the next threeto five years, the biggest surge in accommodation demand isexpected to come from commercial zones that are being developedin metro suburbs and secondary markets. Mixed-use developmentprojects that include retail and commercial space have also gainedmomentum in the last 24 months and will continue to be an attractiveoption. This provides a unique opportunity for hospitality projects.Also the new concept, which is going to gain importance is that ofbudget hotels (started by Indian Hotels Ginger, the erstwhileIndione). Due to their inherent nature of operation, associated costsand flexibility, budget hotels will be better suited to withstand the nexteconomic downturn as and when it takes place


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Threats. Event risk: Dependency on foreign tourism can be a

double-edged sword as travel decisions are based on

global patterns and events that happen elsewhere canhave serious impact the performance. Events like 9/11,SARS outbreak and Afghanistan and Iraq wars haveseverely impacted the tourism industry in the past and thethreat remains.

Increasing competition: Global hospitality majors like theFour Seasons, Shangri-La and Aman Resorts are allmaking their entry into the Indian market. They are not theonly ones who are turning their attention to India. TheHilton Group is deciding on a comeback and has tied upwith the Oberoi Group. Two other groups - the CarlsonGroup and the Marriott chain are furiously hunting for newhotels in India's top cities. This will increase thecompetition for the existing Indian hotel majors.


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The outlook for the hospitality market in India is optimisticand will continue to remain so, in our opinion. Theeconomys buoyancy, initiatives to improve infrastructure,

growth in the aviation and real estate sectors and easing

of restrictions on foreign investment will fuel demand forhotels across star categories in the majority of markets.Indias hotel industry is increasingly being viewed as

investment-worthy, both within the country and outside,and several international chains are keen to establish orenhance their presence here. We anticipate that, over thenext three to five years, India will emerge as one of theworlds fastest growing tourism markets and will be hard to

ignore.


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Major market players.


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THE MAJOR PLAYERS IN THE HOTEL INDUSTRY CAN

BE BROADLY CLASSIFIED INTO Public Players AND

Private Players.

PUBLIC SECTOR PLAYERS:

ITDC HOTELS

Hotel Corporation Of India

PRIVATE SECTOR PLAYERS:

ITC HOTELS

INDIAN HOTELS COMPANY LTD.(THE TAJ HOTELS

RESORTS & PALACES)

OBEROI HOTELS (EAST INDIA HOTELS)

Hotel Leela Venture

Asian Hotels Ltd.

Radisson Hotels & Resorts


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ITC HOTEL GROUP SEGMENTATION

ITC

HOTELS -

LUXURY

COLLECTI-ON:

SUPER

DELUXE

LOCATEDAT

STRATEGIC

BUSINESS &

LEISURE

LOCATIONS

ITC -

SHERATON

HOTELS:

OFFER

COMFORT

SERVICE TO

GLOBAL

TRAVELLER

AND A

CHANCE TO

CONNECT

5 STAR

SPECIALLY

FOR THE

BUSINESS &

LEISURE

TRAVELLER

FULL

SERVICE

PROPERTIE

S ALL OVER

INDIA

IDEAL

FOR

BUDGET

TRAVELLER

CHAIN OF

PALACES,

FORTS,

HAVELIS &

RESORTS

WELCOM

HOTELS:

WELCOM

HERITAGE:

FORTUNE

HOTELS:


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ITC: DEVELOPMENTS

ITC-WELCOMGROUP HAS PIONEERED THE CONCEPT OF

"BRANDED ACCOMMODATION" IN THE HOSPITALITY

INDUSTRY. BRANDING LED TO THE SEGMENTATION OF

ROOMS WHICH WERE TERMED AS BRANDED EXECUTIVE

CLUB, THE TOWERS AND ITC ONE.

IN 2007, ITC-WELCOMGROUP TIED UP WITH STARWOOD TO

LAUNCH ITS PREMIUM BRAND, THE LUXURY COLLECTION

THE COMPANY HAS MORE THAN 75 HOTELS IN INDIA WITH

ABOUT 5,500 ROOMS AND IS DEVELOPING 27 MORE

PROPERTIES THAT WILL ADD ABOUT 3,000 ROOMS.


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THE TAJ GROUP OF HOTELS

SEGMENTATION

TAJ LUXURY

HOTELS

TAJ PALACE,

TAJ MAHAL,

TAJ BENGAL,

TAJ WEST END

OFFER FINEST

STANDARD OF

HOSPITALITY &

SERVICE

TAJ BUSINESS

HOTELS:TAJ PRESIDENT,

TAJ RESIDENCY,

TAJ CONNEMARA,

TAJ BLUE

DIAMOND

OFFER

MULTICUISINE

RESTAURANTS &

BEST BUSINESS

FASCILITIES

TAJ LEISURE

HOTELS:

TAJ BEACH

RESORT,

TAJ CULTURAL

CENTRE,

TAJ GARDEN

RETREATS

LOCATED AT

BEACH RESORTS,

PALACES, PILGRIM

CENTRES ETC.


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TAJ HOTELS, RESORTS AND PALACES COMPRISES57 HOTELS IN 40 LOCATIONS ACROSS INDIA WITH

AN ADDITIONAL 18 INTERNATIONAL HOTELS.

TAJ WAS THE FIRST TO INTRODUCE SICHUAN,

THAI, ITALIAN, MEXICAN, AND CALIFORNIAN

CUISINE INTO THE COUNTRY.

THE TRAVEL DAILY NEWS REPORTED THAT THE

TAJ GROUP OF HOTELS HAD A TURN OVER OFRS. 1823.18 CRORES WITH THE YEAR ENDING ON

MARCH 31, 2008.

TAJ : DEVELOPMENTS


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THE OBEROI GROUP

OF HOTELS

THE OBEROI GRAND

HOTEL

THE TRIDENT HOTEL

THE OBEROI HILTON

THE WILDFLOWERHALL

THE HOTEL AMARVILAS


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CHALLENGES

FOR HOTEL

INDUSTRY

Shortageof skilledemployeesIntense

competitionand image of

India

Manualback-end

Humanresourcedevelopment

Lack ofadequateinfrastructuredevelopment

Shortage of

rooms

Retaining

qualityworkforce


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CASE STUDY

Abstract

Indian Hotel Company Limited (IHCL), the leading Indian

hospitality concern, has joined hands with C.K.Prahalad tolaunch indiOne, a new concept that will redefine the hotelindustry and provide the company with a new growthopportunity. The caselet outlines the reasons for IHCL's entryinto the budget hotels segment and provides details on the

indiOne concept. Further, the caselet explains the design andimplementation of the concept. It discusses the implementationchallenges and the future plans of IHCL for this venture.Issues:

Budget hotels and its viability in Indian hospitality market. New product development in hospitality industry. Importance of segmentation and targeting in hospitality

services.


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In a absolute competitive market theprofitability of almost all theorganization is under pressure largelydue to recession in US and UK market

also .All organization therefore aretrying to control the operatingexpenses and expenses in hospitality

area are major concern and thereforemost of the organization are interestedin going budget hotels to control theirexpenses.


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Presentation Hotel Industry Finish