...INDIAN HOTELS INDUSTRY Consumer confidence low; revival contingent on global environment QUARTERLY REVIEW March 2012 ICRA expects the Indian Hotels industry to finish 2011-12 on a weaker note with subdued pricing power eroding margins. Although some revival in operational metrics was witnessed during late 2010-11, the industry continued to lack the pricing power to drive out of its current stagnancy. Globally weak macroeconomic scenario, the European sovereign debt crisis, geo-political turmoil in the Arab countries, high interest rates, inflation and a muted domestic corporate performance during the current fiscal (year to March 31, 2012) have sapped the industry’s ability to sustain inflation adjusted Average Room Realizations (ARRs). Muted ARRs and high costs have led to one of the weakest nine month (9M) periods (April-December-11) in over five years. With uncertainty continuing to cloud the near term, wavering business/consumer confidence and a sluggish economy, there is no significant trigger for the industry during the next two-three quarters. While the start of the next season (in Q3, 2012-13) may bring some relief to the industry in some specific markets, we expect real traction to return to the industry only by 2013-14; overall, we expect this to be a slow and long slog to recovery. We expect ARR growth during the current fiscal to be limited to around 5%, followed by around 5-8% during 2012-13. In the current inflationary environment, RevPAR growth of around 6-7%...
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...Indian Hotel Industry Survey 2011-2012 For more information, or additional copies of this document, please contact: Secretary General Federation of Hotel & Restaurant Associations of India (FHRAI) B-82, 8th Floor, Himalaya House, 23 Kasturba Gandhi Marg New Delhi - 110 001 India Tel: Fax: Email: Website: +91 (11) 4078 0780 +91 (11) 4078 0777 fhrai@vsnl.com www.fhrai.com Price: FHRAI Members: FHRAI Non-Members: International: `500 (per additional copy) `700 US$50 © Federation of Hotel & Restaurant Associations of India, 2012 Reproduction of data from within this publication is permitted provided that acknowledgement is accredited to the FHRAI and HVS Hospitality Services. Table of Contents Foreword from the President, FHRAI............................................................................................................. 1 HVS Hospitality Services................................................................................................................................. 2 Synopsis and Key Highlights of the Survey................................................................................................... 4 Country Trends................................................................................................................................... 6 Key Highlights..................................................................................................................................... 8 City Trends....
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...INDIAN HOTEL INDUSTRY RESEARCH REPORT 2013 Submitted by: 1) Arindam Bagh 2) Arindam Das 3) Pavan Kumar Submitted by: 4) Arindam Bagh 5) Arindam Das 6) Pavan Kumar Table of Contents 1. Executive Summary 5 2. Industry Overview 6 2.1. Key Components of Hospitality Industry 6 2.2. Global overview 6 2.3. Indian overview 7 2.4. Market Structure 10 2.5. Industry metrics 12 3. Challenges faced in the Sector 14 3.1. Global economic uncertainty 14 3.2. Seasonality of demand 14 3.3. Oversupply 15 3.4. High Employee turnover 15 3.5. Lack of MICE related Infrastructure 16 3.6. Inadequate supply of quality talent 16 3.7. Low security 17 3.8. High cost of developing property 17 3.9. Poor Infrastructure 18 3.10. Difficult project financing 18 4. Growth Drivers 18 4.1. International tourist arrivals 18 4.2. MICE Destination (Meetings, Incentives, Conferencing, Exhibitions) 19 4.3. Government spending to boost growth 19 4.4. Improving economic environment 20 4.5. Increasing spending power 21 4.6. Government Support (Non-Monetory) 21 4.7. Offers from Airline Industry 24 5. Emerging Trends in the sector 25 5.1. Premium Hotel’s profitability to hit lows 25 5.2. Increasing revenues from F&B Segment 26 5.3. Development of niche tourism offerings 26 5.4. Growing trend towards service apartments 27 5.5. Growing demand for budget segment 27 5.6. Increasing interest of international operators 28 5...
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...in a society gets reflected in the roles played by them in its institutions such as family, political or other social groups. Corporate also echo the same. In Indian industry woman hold more positions of power now than in the past. Indian hospitality industry also shows the same pattern. But compared to their share in population women hold few positions compared to males. This is in spite of a number of measures taken by the government through legislation and policy measures. The vertically typical “Gender Pyramid “is prevalent in this too- lower level occupation with few career development opportunities dominated by women and key managerial positions dominated by men. Earlier studies found the deeply entrenched beliefs and stereotyped attitudes towards women in the workplace to be the main barrier in gender equality. Though India seems poised for superpower status because of its booming economy. However, beneath the spectacular “India Shining” story lurks an area of darkness – the unequal status of its women, who constitute more than half its demographic. This study on Gender Equality in Indian Hotel Industry- A study of Perception of male and female employees aims to examine whether female employees of hotel industry perceive gender equality issues differently than male employees. It collects information from 13 hotels and 110 respondents in NCR on 5-point likert scale on 27 items. For analysis Independent samples T test is used, and results of study demonstrate that there is...
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...INTERNATIONAL STRATEGIC MANAGEMENT: Strategic management for hotel industry CANDY 10182133m Lecturer: Paula Tomsett I-Shou University Contents ABSTRACT 3 INTRODUCTION 4 RELEVANT THEORY 4 Strategic management 4 Globalization 5 IMPLICATIONS FOR INTERNATIONAL STRATEGIC MANAGEMENT 5 The cost of land ownership 6 Costs of funding the projects 6 Official procedure approval 6 Human resource matter 6 The speed of technology development 7 Infrustructure and security matters 7 Strong competitors 7 CONCLUSION 8 REFERENCES 9 ABSTRACT Hotel industry has been chaos period in recent years. What makes a firm differing from the others are well known brand, high standard products and services, as well as an unique strategic management to build short term and long term plans and strategies. In the process of strategic management, firms encounter a number of challenges. In order to compete rivals and get an competitive advantage, it is essential to issue the problems and find out possible and relevent solutions. Key words: hotel industry, strategic management, hospitality INTRODUCTION In recent years, global economy is facing a severe recession that affects almost aspects of business life. Hotel industry is also not an exception, typically Indian hotel industry. In order to grow and expand, hotel industry has to combat a number of challenges in human resources, land acquisition, technology deployment as a strategic tool and understanding the dynamics...
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...Challenges and Strategies – Enhancing Competitiveness of Indian Tourism Industry Anurag Dugar* Competitiveness is a comparative concept, primarily applicable at the company or firm level (McFetridge, 1995) and indicates towards its willingness and ability to compete in a given market, but the contemporary usage of this term has extended its traditional meaning to new dimensions. However, for one school of thought, competitiveness is equally applicable to all business enterprises, levels of government and nonprofit agencies and workers of the postmodern nation state. (Hillman C. H. 1992), but for another the underlying premise for competitiveness is - ‘firms compete, and not nations’, for example, according to Krugman - "The world's leading nations are not, to any important degree, in economic competition with each other" (Wikipedia). Similarly, Porter holds that - diversified corporate do not compete; only their business units do. Thus, according to the second school of thought competition occurs at the business unit level and hence the ‘corporate strategy’ must reinforce and focus on nurturing the competitiveness of each (business) unit. From this perspective, Nations can be visualized as diversified conglomerates and its sectors, industries and firms as its diverse business units, and then the role, relevance, importance and impact of “Government Policies” (Corporate Strategy), on the competitiveness of its sectors, industries and firms (business units) is clearly elaborated and...
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...Environmental Factors……………………………………………………………………………………...4 Industry Players and Competitive Scenario………………………………………………………………..5 Marketing implications for existing players and new entrants…………………………………………….7 Size of the market, growth pattern and evolution of the service The Demand for Indian Tourism is increasing at 10.1% per annum. India will attract 25 million tourists by the year 2015. India currently has 2,00,000 hotel rooms spread across various hotel categories yet has a shortage of 1,00,00 rooms. |Hotel Category |No. of hotels |No. of rooms | |5 star /deluxe |165 |43965 | |4 star |134 |20770 | |3 star |505 |30100 | |2 star |495 |22950 | |1 star |260 |10900 | |Heritage |70 |4200 | |Uncategorized |7078 | | |Total |8707 |132885 | |Restaurants |12750 | | Current Scenario: • Existing Hotel Rooms: 202963 • Revenue of the hotel industry FY 2009-10: INR 47,889.03 crore • 30 % of this...
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...Marketing Management Assignment Gap Model of Service Quality: The Taj Hotels Submitted by: Syndicate 6 Sneha Oswal (11020541127) Sunil Kumar(11020541131) Sudhir Bairwa (11020541128) Swapnil Gupta (11020541132) Supratim Sinha (11020541129) Swati Thakur (11020541133) Sumit Bhattacharya(11020541130) INTRODUCTION The Gap model provides an integrated framework for managing service quality and customer driven innovation. The hallmark of this model is its anchoring on the customer and integration of the customer throughout all gaps within the model. Every gap and every strategy is used to close the gaps in the model and meet or exceed the customer expectations. SERVAQUAL is the service quality framework. It has 5 dimensions: reliability, responsiveness, assurance, empathy and tangibles. SERVQUAL measures have been applied in and adapted to many industry settings. The 5 gaps are: •Gap 1 is the distance between what customers expect and what managers think they expect - Clearly survey research is a key way to narrow this gap. •Gap 2 is between management perception and the actual specification of the customer experience - Managers need to make sure the organization is defining the level of service they believe is needed. •Gap 3 is from the experience specification to the delivery of the experience - Managers need to audit the customer experience that their organization currently...
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...Emerging Indian Hospitality Sector: A study of NCR hotels Shiv Mohan Verma, Asst. Professor. HRCTGI Ravi Kumar Singh, Asst. Professor. HRCTGI Abstract Today, big name brands are embracing new technologies and adjusting their budgets in some surprising ways. Using mass production, network broadcasting, nationwide transport and chain retailing, marketers are driving consumption among the rapidly increasing population. The emerging trends in marketing have been caused by multiple factors like advent of MNC’s in India, changing industry structure or increasing media penetration to Indian homes. Marketers today acknowledge the value of knowing the customer and retaining customer relationship. This paper explores the changing dynamics of the Hospitality Sector, its ever-increasing focus on innovation along with the reasons causing the changes. The paper will address everyday questions faced by marketers in the rapidly evolving marketplace. Introduction The economy has moved decisive to a higher growth phase. Till a few years ago, there was still a debate among informed observers about whether the economy had moved above the 5 to 6 per cent average growth seen since the 1980s. There is now no doubt that the economy has moved to a higher growth plane, with growth in GDP at market prices exceeding 8 per cent in every year since 2003-04. Over the last five years there has been a sharp acceleration in the growth of per capita income, almost doubling to an average...
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...Are High Hotel Tariffs Damaging India’s Tourism Potential? Industry analysts fear that the current boom which the Indian hospitality industry is witnessing will not last. The prime reasons cited are steep hotel rates and shortage of rooms. Leading tour operators, in conversation with Bhisham Mansukhani and Charmaine Fernz share their opinion on this current scenario... The Indian hospitality’s current occupancy boom, which revived the industry from its days in shambles, is now posing a serious threat to the supposedly resurgent inbound tourism sector. Inbound tour operators have unanimously cited both the steep Average Room Rates (ARRs) and shortfall in inventory as key deterrents that keep tourists from visiting India. Ashwini Kakkar Neeraj Ghei Himmat Anand Tour operators state that the problem is twofold, while the consequence is simply a low number of inbound tourists. Ashwini Kakkar, CEO and MD, Thomas Cook India Ltd “The problem is particularly serious in the metros. We are not just talking about incredibly high room rates which are disproportionate to the regional benchmark but the absolute non-availability of rooms at any cost. The implications of this in terms of the country’s economy, and Foreign Institutional Investment(FII) approach is far reaching and mostly detrimental. Our nearest and most formidable competitor, China has more than 100,000 rooms in its key industrial hub Shanghai. However India, which claims to draw parallels with it, has a paltry...
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...Activities of Indian Tourism v/s Other Countries Course: International Marketing Management Indian Institute of Foreign Trade, New Delhi Executive Post Graduate Diploma in International Business (EPGDIB 2012-14) Topic: Promotional Activities of Indian Tourism v/s Other Countries Faculty: Prof. Rakesh Mohan Joshi Submitted By: Soniya Agnihotri Roll No 72 EPGDIB 2012-14 1 Promotional Activities of Indian Tourism v/s Other Countries www.incredibleindia.org 2 Promotional Activities of Indian Tourism v/s Other Countries Table of Contents 1. Executive Summary Objective Pedagogy 2. Indian Tourism Promotional Activities in the International Arena Vision Statement Major Issues: Is India really ‘Incredible’? 3. Why nation branding is important for tourism? 4. Comparison of tourism promotion activities of India v/s other Countries Travel and tourism Competiveness Index Comparison of India with top five tourist destination in the world Comparison of India with top five tourist destination in the Asia-Pacific region Conclusion based on the comparison 5. Major Challenges for Indian Tourism Industry 6. Critical Evaluation Brand Planning & Strategy Comes First Successful Advertising Does not equal Brand Strategy 7. Tourism promotion and success strategy 8. References 3 Promotional Activities of Indian Tourism v/s Other Countries Executive Summary Objective: This study has been undertaken to put light on the various nuances of the Indian tourism Industry, India’s...
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...Executive Summary (word count: 104) Ginger Hotels is an Indian hotel chain, established by Roots Corporation Ltd and part of “The Indian Hotels Company Ltd” which is a part of Tata Group. It comes under the brand of “Smart Basics Hotels” having almost 30 hotels in different parts of India. Ginger Hotel looks very similar to the other hotels of the same class with all the facilities that a normal hotel would offer but the difference comes when the services are offered. The Tagline which says “Please help yourselves“ aptly reflects its most distinguishing features like Self-Service Check-in, Give n Take, Smart Get Set, Smart Knick Knacks, Smart Mart. Detailed Case Analysis (word count: 980) Ginger hotels are built around a unique concept that provides facilities to Business traveler, middle class family, tourists and a small portion for student section also at surprisingly affordable rates. The primary objective behind the launch of these hotels is to provide a high class service offering and consistent experience which is entirely different from other hotels. Ginger hotels try to maximize the value, which customers get in return. The main driving principle is Value= Utility divided by cost. As the utility increases value increases and as cost decreases value again increases. So the management tries to increase the utility (different special services) at an optimum price (lesser compared to competitors.) The entire design was led by developing a clear understanding of the...
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...Hyderabad 501 504, Andhra Pradesh, India or email: info@icmrindia.org www.icmrindia.org LDEN/063 MS Oberoi and His Legacy “My life has been achievement-oriented. I started off as a coal clerk at the Cecil Hotel in Simla. But I always had dreams and I worked my way at fulfilling those dreams.”1 MS Oberoi, the Founder of the Oberoi Group. “His [MS Oberoi’s]legacy isn’t just the hotels. His life has been a living example that nothing is impossible. Persistence brings success. His legacy is for the world to see and learn.”2 -Sanjiv Malhotra, Vice-president, Oberoi Towers, Mumbai, September 2001. “I have great respect for the professionalism of Oberoi Hotels. To me, both the hardware and software components are equally important in a complete hotel product and the Oberoi brand excels in both. P R S Oberoi stands for uncompromising quality like his late father and in this country at least, there isn’t anyone who is equal to them on that strength.”3 -Sunil Mathur, Director, International Development, Wyndham Hotel Group4, October 2007. THE FATHER OF INDIAN HOTEL INDUSTRY On Friday, May 3, 20025, Rai Bahadur Mohan Singh Oberoi (Oberoi), the founder of the Oberoi group of Hotels, passed away at the ripe age of 103. According to Ashok Soota, president, Confederation of Indian...
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...INSTITUTE OF HOTEL MANAGEMENT, AURANGABAD Innovation and Change “Innovation, Change and B.A honours student” Raghav Pandya (H-18087) UNIVERSITY OF HUDDERSFIELD, UNITED KINGDOM December 2012 Declaration I declare that this essay is the result of my own hard work and I confirm this to the university, regarding cheating and plagiarism. No material contained within this project has been used in any other submission or by the authors, for an academic award. 11th December, 2012 Raghav Pandya (H-18087) List of Contents Part 1: INTRODUCTION….…...………………………………………………………... [3] 1.1Examples of ongoing innovations in hotels.……………………………….,………… [4] Part2: THEORY………………………………………………………………………… [5-6] Part 3: CRITIQUE AND ANALYSIS……………...……………………………………. [7] 3.1 Indian Context………….……………………………………………………………... [8] CONCLUSION…………………………………………………………………………... [10] BIBLIOGRAPHY………………………………………………………………………... [11] Part 1: Introduction Change is inevitable in the life of an organisation. In today’s business scenario, hospitality organisations exist in dynamic and changing business environments and they have to cope up with the changes for survival and growth as there lies no second alternative, a supportive example in the Indian context to this is Wall mart entering Indian market is expected to change the retail industry from head to toe, competing with established Indian medium-large scale retail companies, and eating away many smaller fishes...
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...Ginger Hotels Name Grade Course Tutor’s Name 25-3-2013 Outline i. Introduction ii. The generic strategy iii. Strengths iv. Weaknesses v. Human resource and Marketing policies vi. Recommendations Introduction Ginger hotels are subsidiaries of the Indian Hotels Company Limited (IHCL). These hotels are based in India and have been in operation for more than six years. These hotels were established by Roots Corporation Limited. This paper will explore the generic strategies, identify the sources of competitiveness of Ginger as well as its strengths and weaknesses as a business entity. Recommendations and the future prospects will also be discussed. The generic strategy Ginger hotel came into existence as one of the greatest innovative concepts of IHCL group. This hotel is signified by well budgeted hospitality that targeted the middle-class in the Indian market. The hotel was designed to ensure a larger percentage of the Indian population could afford luxurious hospitality. However, the hotel has not been as successful as it was deemed to be even after operating in the Indian market for over six years. It is experiencing slow growth rate with several of its subsidiaries still adjusting to the market environment (Odoom 4). Ginger hotel is designed to target customers who are conscious of their expenses. These are consumers who prefer value over luxury (Odoom 12). Therefore, the prices offered by these hotels are lower. The current...
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