Indian Hospitality Sector

By Anant Johri 34231 Prateek - 34232 Mahender kumar- 34233 Amogh 34234

Introducation
 Derived from Latin word hospes, host.  ATITHI DEVO BHAVA.  Growth story started in the 1980s, Asiad Games in New
Delhi.

 Diversity in India.  Dichotomy.  Contributes by 2.6% to GDP.  Along with tourism accounts to 48million jobs in 2010.

Interdependence

Classification
 Lodgings  Restaurants  Event planning  Theme parks  Cruise line  transportation

Growth Drivers
 Regulatory : exemption of customs duty , Luxury and
sales tax for 5-6 years.

 External :Rising FDI ,Globalization, liberalization.  Internal :Imbalance in demand and supply, GDP,
changing customer dynamics and ease of finance, growth of IT sector.

HOTEL INDUSTRY

Major Market Players

Types of the Hotels

Five Star Deluxe and Five Star Four star and Three Star Two Star and One Star Heritage

Emerging Hotel Concepts

Ecotels

Resorts

Motels

Floatels

Service Apartments

Recent Trends
             
Low cost carriers Growth of budget hotels Service apartments Technology Loyalty travel Rising Disposable income levels Rapidly changing operating models Emergence of mixed land usage Diminishing brand loyalty New avenues of growth Leisure and entertainment with eating out Rise in multi specialty cuisine Changing business model Front end and back end integration

y y y y y y y y y y y y y

Overseas opportunities Looking for New Niche Health Tourism Agricultural tourism Religious Cruise Casinos Spa MICE Mall-Hotel

New Avenues in Hospitality Industry

Group purchase organizations Home meal replacement market Unconventional accommodation

Challenges
Regulatory Challenges

y No uniformity in Taxes and High Tax Structure

External Challenges

y Economic Slowdown y Impact of Terrorism y Cost of Land y Cost of Debt

Internal Manpower Challenges

y Skilled Manpower Shortage

Challenges
 Managing Demand  Optimizing Customer Mix  Optimizing Challenge Mix

Recommendations
y Awarding Infrastructure Status y Restore Depreciation Rate y Rationalization of Floor Space Index y Uniform Tax structure y Pan India Extension of Tax Holidays y Infrastructure Development y Increase in Hotel Management Institutes y Price Uniformity in South East Asia

Incredible INDIA
y
Campaign by Ministry of Tourism

Thank You