Hospitality Service IndustryKey focus on Hotel sector

Hospitality Service Industry

i. Hospitality is derived from a Latin word hospitalitem, which means "friendliness to guests”

ii. An industry sensitive to the needs and desires of people

iii. Tourism industry the foremost demand driver of the industry

iv. Largest industries in terms of revenue generation & foreign exchange earnings

v. Contributing over 9% to global GDP

vi. Accounting for more than 8% of global employment

*Source- www.IBEF.org, www.hvs .com

Market Dynamics

i. Hospitality Industry is a 3.5 trillion dollar service sector within the global economy

ii. Growth rate at 8% (2007 – 2016) CAGR

iii. Market size to expand from US$ 117.7 billion to US$ 418.9 billion by 2022

iv. Capital Investment to grow at 6.5 % during 2013 – 2023

v. GDP estimated to rise from 8.6% to 8.8% by 2016

vi. Hotel Industry holds 75% share

vii. The Indian hospitality industry, is valued at $23 billion (Rs 113,976 crore)

*Source- www.IBEF.org

SWOT Analysis

S O

W T

i. Natural and cultural diversityii. Demand-supply gapiii. Government supportiv. India as a global player

i. Prevent gaps in the existing Marketing Mix

ii. Slow implementation iii. Poor support infrastructure

i. Booming Health tourismii. Commercialization of sportsiii. Increase in deposable incomeiv. Open sky benefits

i. Increasing competitionii. Political conditionsiii. Terrorismiv. Increase in pollution

Key Industry Features

High seasonality

Labour intensive

Fragmented

Facets of Hospitality Industry

Hospitality Industry

Tourism Industry Hotels & ResortsMICE

(Meetings, Incentives, Conferences, Exhibitions)

Major companies in Hotel IndustryNational Players Inter-National Players

The Indian Hotels Company Ltd

ITC Welcome Group

East India Hotel Group

The Leela Group

The Bharat Group

Asian Group

The InterContinental

Carlson

Marriot Group

Starwood

Accor

Emerging Trends

i. Budget Hotels as the next trigger(Ginger Hotels, Ramada Hotel)

ii. Medical Tourism

iii. Shifting focus to Tier II and Tier III cities

iv. Change in Marketing Strategies(Deals & Packages)

v. Emergence of Mixed Land Usage

vi. Entrance of international brands

vii. Innovative operating models

viii. The MICE Business Opportunity

Personality traits of the people working in the industry

i. Strong Interpersonal skills

ii. Leadership Quality

iii. Cognitive skills presence of mind

iv. Good Administrative skills

v. Technically sound

vi. Cultural awareness

vii. Communication skills

Challenges in this Sector

i. Shortage of skilled employees

ii. High rate of attrition

iii. Intense competition and image of India

iv. Customer expectations

v. Human resource development

vi. Taxation policies and Government duties

vii. Cost of land

viii. Inbound tourism

ix. Low customer satisfaction

Conference / Summit

As Hotel & Resort Sector being the major contributor in the Hospitality Industry:

i. Valued at $23 billion (Rs 113,976 crore)

ii. The hotel market is expected to double in size by 2018

iii. About $12 billion (Rs 59,442 crore) is likely to be invested in the next two years

iv. Approx. 40 new international hotel brands will be operating in India

*Source- www.IBEF.org, www.hvs .com

Event

2 day conference focusing on the:

“CHANGING DEMOGRAPHICS & THE IMPACT ON TRAVEL TRENDS”

Conference to be held at the Taj Hotel, MumbaiOn 13th-14th January 2013

Chief Guest: Dr. K Chiranjeevi ( Tourism Minister)

Schedule Day 1TIME

Guests Registration 8:30 – 9:15 am

9:30 amGuests to be seated

9:45 – 10:30 am Welcome NoteMr. K ChiranjeeviTourism Minister

10:30 – 11:15 amKey Note SpeakerMs. Jyoti Narang Chief Operating Officer – Luxury Division, Taj Hotels, Palaces & Resorts

ScheduleTIME

Mr. Nakul Anand President of the Hotel Association of India and Executive Director of ITC Ltd.

11:30 – 12:00 am

Mr. Vithal Kamat Executive Chairman & Managing Director of Kamat Hotels (India) Ltd

12:15- 1:10 am

1:10 – 1:50am Mr. Sudeep Jain Executive Vice President of Jones Lang LaSalle Hotels

ScheduleTIME

Lunch 2:00 – 3:00 am

Panel Discussion 3:15 – 4:00 am

4:10 – 4:55 amQuestion & Answer Session

4:10 – 4:55 amDay 1 ends Thanks Giving

Schedule Day 2TIME

Guests Registration 8:30 – 9:15 am

9:30 amGuests to be seated

9:45 – 10:30 am Welcome NoteThe magazineEditor in Chief

10:30 – 11:15 amMr. Sandeep LadaExecutive DirectorHospitality & leisurePWC India

ScheduleTIME

Mr. Ravi RamuManaging Partner Crim Rose HotelsLLP from bangaluru

11:30 – 12:00 am

Mr. Kaushik vardhrajanManaging DirectorHPS Hoispitality Services South Asia

12:15- 1:10 am

1:10 – 1:50am Mr. Rummy AnandCarlson Rezidor Hotel Group Senior Director Development, Carlson Hotels South Asia

ScheduleTIME

Lunch 2:00 – 3:00 am

Panel Discussion 3:15 – 4:00 am

4:10 – 4:55 amQuestion & Answer Session

4:10 – 4:55 amDay 2 ends Thanks Giving byMr. Raymond N. BicksonThe Indian Hotels Co Ltd Managing Director and Chief Executive Office

Topics to be discussed

i. Emergence of secondary and tertiary citiesii. Emergence of micro-marketsiii. Continued marketing of Brand Indiaiv. Development and marketing of niche tourism like medical tourism, religious circuits,

adventure tourism v. Entry of most major international brandsvi. Changing perception of Indian markets as a lucrative opportunity among international

brandsvii. Growth of the Indian middle class offering a large consumer base of more than 1 billion

peopleviii. Educated and well exposed Indian audiences, likely to accept global brands

wholeheartedlyix. Expected emergence of branded budget and economy hotelsx. Increased interest in India as a travel-worthy destination

Key focus oni. Adopt a universal design which are easier to use and high-tech so that younger consumers

are drawn to their design

ii. Offer choices that give customer options rather than pre-determined packages. Create experiences versus tours

iii. High-tech guestrooms must become the norm rather than the exception. Relevant technology to be used that is not only expected from the business traveler, but also the leisure and younger sets

iv. An increase in health travel offerings targeting the aging population such as medical spas, the offerings should also include elements of adventure, spirituality, or stress management that will appeal to younger markets

v. Creating a panel of half a dozen or more people from different age and cultural groups who are willing to talk with you on a regular basis about their concerns and experiences, while giving you honest feedback on your products and service

Potential companies for sponsorship

Benefits of giving Sponsorship

i. Brand visibility

ii. Media coverage

iii. Logo partner to the event

iv. Experience & opportunities

v. Recognition in the industry

vi. Networking with the key people of the industry

Strategic Tie-ups

Segmentation of Target Market

i. Hoteliers

ii. Midlevel and senior level managers

iii. Eminent professors of Hotel Management Institutes(IHM, MERIT)

iv. Journalist(Veer Sangwi, Vinod Dua)

v. Young Entrepreneurs