Hospitality sector

Hospitality SectorIndia

Ruchi JainSonu SharmaPGDM-II

HOSPITALITY INDUSTRYHOSPITALITY INDUSTRY

Definition

• “The reception and entertainment of guests, visitors, or strangers with liberality and good will”.

• Oxford English Dictionary

Services

Past• In1650 Mr. Pascal opened cafe in Paris and coffee

house in London.

• Termand house was 1st class hotel made in Boston 1829

• 1960 many individuals owners merge themselves with large chain such as Sheraton, Hilton, Hyatt, holiday inn for franchising by paying a fee

• History of hotels established in india in 18.19 & 20 cemtury

Present Scenario

'Hotel Industry in India' have supply of 110,000 rooms

India ranks 18th in business travel

Visiting foreigners has reached a record 3.92 million

'Hotel Industry in India' is set to grow at 15% a year.

Hospitality Sector India – At a Glance

Growth Rate 8.8%

Annual Rise in Room Rates 25%

Industry Turn Over FY 2009-10: US$ 137.36 (INR 47,889.03 crore)

Expected Export earnings Till 2019

US$ 51.4 billion

Direct & Indirect Employment Generated 218,200 jobs in 2011

GDP Contribution 6.23%

Employment opportunity 8.78%

Key Players

 Company

 Type of properties

 Brands

 Indian Hotels Luxury, mid-segment

and budgetTaj, Gateway, Vivanta

and Ginger

 ITC Welcomgroup Luxury, budget and

heritage hotelsITC Hotel—Luxury

Collection, WelcomHotel—

Sheraton, Fortune and WelcomHeritage

 EIH Business hotels,

leisure hotels and cruises

Oberoi and Trident

 Carlson Luxury, business

hotels, economy and cruises

Radisson Hotels and Resorts, Park Plaza,

Country Inns & Suites, Park Inn

 InterContinental Luxury, mid-segment

and business hotelsInterContinental,

Crowne Plaza, Holiday Inn, Holiday Inn Express, Hotel

Market Share captured by Indian hospitality sector

Market Share

Taj HotelOberoi HotelITC welcum GroupHotel LeelaOthers

• Taj hotels-25%

• Oberio hotels -17%

• Itc welcome group-1.1%

• Hotel leela-0.6%

• Others-0.5%

Hotel industry in India

0

10000

20000

30000

40000

50000

60000

70000

80000

HongKong Bangkok Singapore Malaysia India

Foreign arrivals into India: 5

million appx. Vs. 35 million in

China

• The two nations were on par 2

decades ago at 750,000 arrivals

Today, Beijing alone has as many

hotel rooms as the whole of India

India’s luxury rooms availability

lower than even smaller East

Asian countries

Future & Potential Growth

• Internationaltourist inflow in India by 2020 would be 10 m

•  Tourist influx to grow at a CAGR of 6.5% for the next14 yrs

• share of world tourism: 1.5% by 2010

• Untapped domestic tourist potential

• Medical Tourism

• Rural Tourism

• Wildlife Tourism

Facts and figures Tourism is presently the most important civil industry in the

world. The hospitality industry is second only to the global oil industry in terms of turnover, and is, by far, the largest employer around the world.

Ten percent of the world's work force is in the tourism industry, and 10 percent of the world's GNP comes from tourism.

In calendar ’05, the country received 3.9m foreign tourists, a jump of 14% over ’04. In ’05, the country earned $6.9bn from inbound foreign tourists, which is more than twice the $3.1bn earned in ’02.

The World Tourism Organisation has predicted that India will receive 25 million tourists by 2015.

SWOT ANALSYS

STRENGTHS

Faster GDP growth

Industrialization.

Natural heritage

India as a global player

WEAKNESS

lack of connectivity.

Lake of publicity.

Hectic rules

Influence of politicians

Marketing gap.

SWOT ANALYSIS

OPPORTUNITIES

Health tourism.

Strong in cultural and nature aspects.

Commercialization of sports and games.

FDI policy.

Mismatch of supply and demand.

THREATS

Poor domestic tourism infra structure

Political conditions

Terrorism

Increase in pollution

Entry of new competitors

Tha

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