HOSPITALITY INDUSTRY
TRAVEL & TOURISM INDUSTRY
HOTEL INDUSTRY
HOTELS
RESTAURANTS
CONTRACT CATERERS
TOURISM
TRAVEL
• STAR RATED HOTELS• HERITAGE HOTELS• BUDGET HOTELS• FASCILITY HOTELS• RESORTS• UNCLASSIFIED
• FAST FOOD CHAINS• CASUAL DINING• FINE DINING• COFFEE BARS
HOSPITALITY
INDUSTRY
CURRENT MARKET SITUATION
• INDIAN HOSPITALITY INDUSTRY IS FACING A MISMATCH BETWEEN THE DEMAND AND SUPPLY OF ROOMS.
• THE DEMAND IS HIGH AND IS ONLY EXPECTED TO RISE IN FUTURE
• INDIAN HOTEL BRANDS ARE MAKING THEIR PRESENCE FELT GLOBALLY. THE TAJ HOTELS, RESORTS & PALACES AND OBEROI HOTELS & RESORTS ARE LEADING EXAMPLES.
• IN INDIA, PEOPLE ARE BREAKING AWAY FROM TRADITIONAL METHODS AND LIFESTYLES. (THANKS TO HIGH INCOME). THIS CHANGED MINDSET IS CREATING A HUGE DEMAND FOR HOTELS THAT PROVIDE QUALITY AT AFFORDABLE RATES.
EXAMPLE:
FORTUNE PARK HOTELS LTD, A SUBSIDIARY OF ITC LTD AT 46 PROPERTIES (OUT OF WHICH 25 ARE UP AND RUNNING) ACROSS 38 CITIES.
• THE CONCEPT OF HOTELS IN MALLS IS ALSO FLOURISHING. BUDGET HOTELS IN MALLS WHICH OFFER SHOPPING EXPERIENCE WITH ENTERTAINMENT FACILITIES UNDER ONE ROOF ARE ELICITING ATTENTION FROM VARIOUS HOSPITALITY PLAYERS. AN UPCOMING FIVE-STAR HOTEL IN EAST END MALL IN GHAZIABAD IS ONE SUCH EXAMPLE.
REASONS FOR MORE DEMAND
REASONS FOR MORE DEMAND
• HOTEL INDUSTRY DEPENDS LARGELY UPON THE FOREIGN TOURISTS ARRIVALS FURTHER CLASSIFIED INTO BUSINESS TRAVELERS AND LEISURE TRAVELERS (BOTH DOMESTIC AND INTERNATIONAL)
• THE BUOYANT DOMESTIC GROWTH HAS RESULTED IN THE GROWTH OF BUSINESS TRAVEL TO INDIA. (HIGH INCOME CHANGED MINDSETS)
• INDIA HAS NOW DISCOVERED THE POWER OF MARKETING AND WITH CAMPAIGNS LIKE ‘INCREDIBLE INDIA’ AND VARIOUS LARGE SCALE REGIONAL AND GLOBAL EVENTS LIKE THE UPCOMING COMMONWEALTH GAMES, ASIAN GAMES AND THE RECENT INDIAN PREMIERE LEAGUE BUILDS INTEREST ABOUT THE NATION AND IS ATTRACTING MORE DOMESTIC AS WELL AS INTERNATIONAL LEISURE TRAVELERS.
• THE POLICIES AND INCENTIVES PROVIDED TO THE HOTEL INDUSTRY IS ACTING AS A CATALYST FOR ITS GROWTH.
• AN AMOUNT OF RS 624 CRORE TO BE ALLOCATED FOR THE COMMONWEALTH GAMES!
• FIVE YEAR HOLIDAY FROM INCOME TAX IS GRANTED TO TWO, THREE OR FOUR STAR HOTELS ESTABLISHED IN SPECIFIED DISTRICTS HAVING UNESCO-DECLARED 'WORLD HERITAGE.
• THE CENTRE AND STATES ARE ALSO WORKING OUT A MODEL TO INCREASE HOTEL CAPACITY.
• EFFORTS TO DIVERSIFY TOURIST ATTRACTIONS BY OFFERING NEW PRODUCTS SUCH AS ADVENTURE TOURISM, WELLNESS TOURISM, MEDICAL TOURISM AND GOLF TOURISM ARE EXPECTED TO HAVE A POSITIVE EFFECT ON BOTH FOREIGN TOURIST ARRIVALS AND DOMESTIC TOURISM.
INVESTMENTS
NEED FOR INVESTMENT
• DUE TO THE STRONG GROWTH IN INFORMATION TECHNOLOGY AND BPO SEGMENT.
• INCREASE IN NO. OF FOREIGN TRAVELLERS.
• EMPHASISED FOCUS ON TOURISM BY GOVERNMENT.
• COMMONWEALTH GAMES IN DELHI.
TO OVERCOME THE SHORTAGE INDIAN HOTEL INDUSTRY IS ADDING ABOUT 60,000 QUALITY ROOMS, CURRENTLY IN DIFFERENT STAGES OF PLANNING AND DEVELOPMENT, WHICH SHOULD BE READY BY 2012.
GOVERNMENT HAS APPROVED 300 HOTEL PROJECTS WHICH INDEED SHOWS WHAT THE INDUSTRY IS UP TO.
A LOT OF REAL ESTATE DEVELOPERS ARE ALSO INVESTING INTO THE BUSINESS TO BRIDGE THE DEMAND-SUPPLY GAP.
INTERNAL INVESTMENTS
EXTERNAL INVESTMENTS• BERGGRUEN HOLDINGS INDIA, A SUBSIDIARY OF
NEW YORK-BASED INVESTMENT COMPANY BERGGRUEN HOLDINGS, HAS ANNOUNCED THAT IT IS SEED-FUNDING A NON-LUXURY HOTEL CHAIN IN INDIA.
• PRIVATE EQUITY FIRM WARBURG PINCUS HAS PICKED UP AROUND 27 % STAKE IN DELHI-BASED MID-PRICE HOTEL CHAIN,LEMON TREE, FOR $ 60.2 MILLION
• STARWOODS, HILTON, INTERCONTINENTAL HAVE SIGNIFICANT GROWTH PLANS FOR INDIA.
PROJECTS IN INDIA’S PIPELINE • THERE ARE 161 PROJECTS IN PROGRESS OUT OF WHICH,
100 WILL HAVE FOUR AND FIVE STAR DESIGNATIONS.
• THE OTHER 61 ARE ONE, TWO AND THREE STAR DEVELOPMENTS. A NUMBER OF THEM ARE NEW ECONOMY BRANDS RECENTLY DESIGNED FOR THE INDIAN MARKET PLACE.
• TAJ’S IS ONE SUCH BRAND, LEMON TREE AND RED FOX ARE OTHERS IN THIS CATEGORY.
• THE CENTRE AND STATES ARE ALSO WORKING OUT A PPP (PUBLIC-PRIVATE PARTNERSHIP) TO INCREASE HOTEL CAPACITY.
THE ENGINE OF GROWTH:TOURISM
TOURIST INFLOW HOTEL DEMAND ACCORDING TO U.N. WORLD TOURISM ORGANISATION ( UNWTO)• Foreign Tourist Inflow INCREASED FROM :
3.9 MILLION (2005) 4.4 MILLION (2006) 4.95 MIILION (2007)
• Domestic Tourist Inflow INCREASED FROM:
366.23 MILLION (2004) 462 MILLION ( 2006)
• BOOM IN TOURISM TOURIST INFLOW INCREASED HOTEL OCCUPANCY RATIO ( CURRENTLY 75 – 80%) AVERAGE INCREASE IN ROOM RATE ( CURRENTLY 22 – 25% )
EXPECTED GROWTH• ACCORDING TO TOURISM MINISTRY, TOURIST INFLOW WILL SOAR TO 10 MILLION BY 2010, THUS LEADING TO A DEMAND FOR 100,000 MORE ROOMS.
• ACCORDING TO A RESEARCH RELEASED BY WORLD TRAVEL & TOURISM
COUNCIL, INDIA’S TRAVEL & TOURISM IS EXPECTED TO GENERATE
US$ 100 BILLION IN 2008 US$ 275.5 BILLION BY 2018.• AS REPORTED BY MA FOI MANAGEMENT CONSULTANTS AROUND 40 INTERNATIONAL HOTEL CHAINS ARE EXPECTED TO INVEST IN THE INDIAN HOTEL MARKET BY 2011. THIS INCLUDES HILTON, ACCOR, MARIOTT INTERNATIONAL.
HOTEL SEGMENTATION
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
STAR RATED HOTELS
5 DELUXE & 5 : LUXURY AT HIGH
PRICE , 27 % GOVT. APPROVED ROOMS
FORMS 30% OF INDUSTRY
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
HERITAGE CLASSIC:
HOTELS
CONSTRUCTED BETWEEN 1920 - 1935
HERITAGE GRAND:
HOTELS CONSTRUCTED
PRIOR TO 1920
HERITAGE:
HOTELS CONSTRUCTED
AROUND 1935 – 1950
HERITAGE HOTELS
CHARACTERISED BY LESSER CAPITAL EXPENDITURE AND AFFORDABILITY .
OPERATE FROM FORTS, PALACES, CASTLES, RIVER LODGES, HERITAGE BUILDINGS ETC.
• 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
MAJOR MARKET PLAYERS
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
PRIVATE SECTOR PLAYERS
ITC HOTEL GROUP SEGMENTATION
ITC HOTELS -LUXURY
COLLECTI-ON:
SUPERDELUXE
LOCATED AT 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 PROPERTIES ALL OVER INDIA
IDEAL FOR BUDGET TRAVELLER
CHAIN OF PALACES, FORTS, HAVELIS & RESORTS
WELCOM HOTELS:
WELCOM HERITAGE:
FORTUNE HOTELS:
SUPER DELUXE
LUXURY HOTEL
5 STAR HOTEL
BUDGET HOTEL
HERITAGE HOTEL
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.
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 MULTI – CUISINE RESTAURANTS &
BEST BUSINESS FASCILITIES
TAJ LEISURE HOTELS:
TAJ BEACH RESORT, TAJ CULTURAL
CENTRE, TAJ GARDEN RETREATS
LOCATED AT BEACH RESORTS,
PALACES, PILGRIM CENTRES ETC.
TAJ HOTELS, RESORTS AND PALACES COMPRISES 57 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 OF RS. 1823.18 CRORES WITH THE YEAR ENDING ON MARCH 31, 2008.
TAJ : DEVELOPMENTS
THE OBEROI GROUP OF HOTELS
THE OBEROI GRAND HOTEL
THE TRIDENT HOTEL
THE OBEROI HILTON
THE WILDFLOWER HALL
THE HOTEL AMAR VILAS
OBEROI SHAREHOLDING PATTERNParticulars Mar – 08• Indian promoters 46.34• Foreign promoters -• Acting persons -• Other promoters -• MFs/UTI 2.10• Banks/FIs 13.29• FIIs 3.54• Public corporate bodies 20.35• Indian public 14.02• Others 0.23• No. of shares 392953972
PUBLIC SECTOR PLAYER
ITDC ASHOK GROUP OF HOTELS
COMFORT HOTELS
CLASSIC HOTELS
Hotel Ashok, New Delhi, Kovalam Ashok Beach
Resort, Kovalam, Lalitha Mahal Palace Hotel
Aurangabad Ashok, Aurangabad, Lake View
Ashok, Bhopal, Brahmaputra Ashok,
Guahati
Agra Ashok, Bharatpur Forest Lodge, Kalinga Ashok Bhubaneswar,
Jaipur Ashok
ELITE HOTELS
ITDC : PORTFOLIO
• NETWORK OF 8 ASHOK GROUP OF HOTELS
• 6 JOINT VENTURE HOTELS
• 2 RESTAURANTS
• TARGETS TOPLINE OF RS.900 CRORE BY 2010
• HOTEL LAKE VIEW ASHOK HAS EARNED A PROFIT OF RS. 23.87 LAKH IN 2006-2007
• HOTEL RANCHI ASHOK’S PROFIT INCREASED BY 1472 PER CENT
CHALLENGES TO FACE
CHALLENGES FOR HOTEL INDUSTRY
Shortage of skilled employeesIntense
competition and image of
India
Manual back-end
Human resource development
Lack of adequate infrastructure development
Shortage of rooms
Retaining quality workforce
THE END
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