HOSPITALITY INDUSTRY: HOSPITALITY INDUSTRY INDUSTRY PROFILE:
INDUSTRY PROFILE It is one of the largest industries in both the global and national contexts. It involves cooperative relationships with multiple organizations. INDIA being a cheap destination for leisure
,unlimited tourism and untapped business prospects, we can expect green pastures of growth in the year ahead
Current scenario : Current scenario The world travel and tourism council(WTTC) has predicted that India has potential to become the number one tourist destination in the world, with demand growing 10.1% per annum. The hospitality industry is poised to grow at a faster rate and reach Rs.1500 billion. The contribution of the entire travel and tourism sector including hospitality industry in India to Gross Domestic Product is estimated to rise from 8.6% (USD 117.9 billion) in 2010 to 9.0% (USD 330.1 billion) by 2020. Unique Sales Points: Unique Sales Points Many higher end hotels in India are realized that their key USP in international competition is not their high-tech facilities, but rather their outstanding staff-to-guest ratios and the longstanding tradition of Indian hospitality as immortalized by " Atithi Devo Bhava ". Hospitality is about serving the guests and to provide them with a "feel-good-effect". Personalized comprehensive service, such as suites having their own personal butler, gives guests that extra feel of being valued by their hosts. Hotel industry in india: 5 Hotel industry in 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 Source: Compendium of Tourism statistics, WTO STRUCTURE OF THE INDUSTRY: STRUCTURE OF THE INDUSTRY FIVESTAR DELUX Premium & luxury segment FIVE STAR Mid - Market Segment FOUR STAR Mid - Market Segment THREE STAR Budget Segment TWO STAR Budget Segment ONE STAR Palaces & Forts HERITAGE HOTELS Premium & luxury segment Consumer segments: Consumer segments The business traveler. International and national sports& game players The leisure traveler. Airline cabin crew. Users of Hotel Services: Users of Hotel Services Domestic Foreign Pilgrims Political Representatives Students Trade Representatives Officials Cultural Representatives Film Stars Educationists Intellects Sportsmen Business Executives Business Executives Tourists Tourists Market Segmentation in Indian Hotel Industry: Market Segmentation in Indian Hotel Industry DEMAND & SUPPLY SCENARIO:
DEMAND & SUPPLY SCENARIO The main reasons for the demand are: India's strong GDP growth. Opening of sectors of economy to private sector/foreign investment. Strengthening of ties with the developed world. Reforms in
sector. Development of sports and games scenario.
Indian demand scenario: 11 Indian demand scenario Current supply – appx . 1,20,000 rooms of which 5 Star category accounts for appx . 30% India needs an additional 80,000 rooms in the next 2/3 years to service projected tourist arrivals Need of Rs.32,000 crore in the next three to five years. Supply scenario : Supply scenario According to HVS International Around 10,856 hotel rooms – DELHI Around 9,318 rooms – MUMBAI Around 7,794 rooms - BANGALORE Around 7,408 rooms – HYDERABAD India has a supply and demand mismatch MAJOR PLAYERS IN INDIA: MAJOR PLAYERS IN INDIA HOTEL CHAINS INDIAN HOTELS COMPANY LTD EIH LIMITED ITC HOTELS LTD ITDC LTD SMALL CHAINS HOTEL LEELA VENTURE ASIAN HOTELS BHARAT HOTELS Slide 14: PUBLIC SECTOR CHAINS ITDC HAI INTERNATIONAL HOTEL CHAINS MARRIOTTE STARWOOD BERGGRUEN HOTELS EMAAR MGF LOCALIZED HOTEL COMPANIES PROFILE OF SOME OF THE MAJOR PLAYERS: PROFILE OF SOME OF THE MAJOR PLAYERS The Indian Hotels Company With its subsidiaries collectively known as TAJ HOTELS ,RESORTS &PALACE. Incorporated by the founder of TATA Group. First property TAJMAHAL PALACE HOTEL ,BOMBAY,1903. 83 proprties at 40 locations across INDIA with an addition 17 international hotels. INDIAN TOURISAM DEVELOPMENT CORPORATION(ITDC)/THE ASHOK GROUP: INDIAN TOURISAM DEVELOPMENT CORPORATION(ITDC)/THE ASHOK GROUP Established in 1966 as an autonomous public sector corporation. Entrusted with the task of helping, developing tourism infrastructure and promoting INDIA as a Tourist destination. It has Elite Hotels , Comfort Hotels ,Classic Hotels. 33 Hotels in 22 Tourist destinations all over INDIA . ITC/SHERATON CORPORATION: ITC/SHERATON CORPORATION It was lunched on October 18 th ,1975. First Hotel –CHOLA SHERATON IN CHENNAI. Currently there are 10 ITC-WELCOME GROUP SHERATON HOTELS and more in pipe line. ITC’s Hotel Business: 18 ITC’s Hotel Business ITC- Welcomgroup : a leading hotel chain in India Established presence in key business locations Over 6000 rooms under 4 distinct brands Bangalore 292 room luxury hotel launched in October ‘09 Capacity expansion underway at Chennai & Kolkata; plans for other locations also being progressed. Fastest growing hotel chain with highest operating efficiency (PBDIT/Net Income @ 40%) amongst the 3 leading chains Leverages unique service proposition and international alliance with Starwood Hotels & Resorts - ‘Luxury Collection’ / ‘Sheraton’ ITC’s Hotel Business: 19 ITC’s Hotel Business Manages 34 full service mid-market properties (2000 + rooms ) under the Fortune Hotels brand 21 more hotels in pipeline; room inventory- 4800 appx . 100% subsidiary company : Fortune Park Hotels Ltd. Also operates 60 properties under the ‘ WelcomHeritage ’ brand in 19 states - Maharaja Heritage Resorts Ltd. 50% JV with Marudhar Hotels (P) Ltd. 7p’s of ITC: 7p’s of ITC PRODUCT: High class accommodation, food and beverage and it is a luxury product PRICES: Prices are very high and varies as per the season PROMOTION: Very effective promotion to the targeted customers through national and international magazines. 7p’s of ITC: 7p’s of ITC PLACE: located in all metros and follows its own regional tradition and treats their guests accordingly PROCESS : Regular maintenance of the room, keeping the surroundings clean and hygienic 7p’s of ITC: 7p’s of ITC PHYSICAL EVIDENCE: Deep sleep is more than just the right bed. It is about an environment that soothes all the five senses. Experience our rooms and know how it feels to sleep like a baby again. PEOPLE: Highly professional workers ,internationally qualified chefs. POLICIES & INITIATIVES: POLICIES & INITIATIVES HOSPITALITY & TOURISM INDUSTRY development goes hand by hand. Tourism policy. Governments open skies policy. Foreign Trade policy. FDI in HOTEL & TOURISM INDUSTRY. Other government initiatives. Govt major policy initiatives include(TOURISM POLICY): Govt major policy initiatives include(TOURISM POLICY) Liberalization in aviation sector. Pricing policy for aviation fuel which influences international air fare. Rationalization in tax rates in the hospitality sector. Tourist friendly visa regime. Immigration services. Procedural charges in making available land for construction of hotels. Allowing setting up a guest house. Govt open skies policy: Govt open skies policy Permission for domestic airlines to commence international flights. Star-up of various low cost carriers. FDI 100% FDI is permissible in this sector Other government initiatives : Other government initiatives Incredible India Atithie devo bhava (guests are equal to god) Various Infrastructure building initiatives. Rs.5400 million National Highway Project. 5856km Golden Quadrilateral. 7300km North-South and East-West corriders . Sagarmala project. ITDC SWOT ANALSYS: SWOT ANALSYS STRENGTHS Faster GDP growth Industrialization. Natural heritage India as a global player WEAKNESS lake of connectivity. Lake of publicity. Hectic rules Influence of politicians Marketing gap. SWOT ANALYSIS: 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 CRITICAL SUCCESS FACTORS : CRITICAL SUCCESS FACTORS Site and location Positioning Financial flexibility Brand equity Hospitality Pyramid is Inverted. : Hospitality Pyramid is Inverted. luxury luxury economical Dependability & interdependence: Dependability & interdependence Hospitality Tourism Infrastructure Industrialization Education : Thank You.. AVINASH PALATHI NEHA GHILDYAL NEHA GUPTA PRIYANK JAIN RAGHUNANDAN