HospitalityIndustry

• Ibef.org (Indian Brand Equity Foundation)

• Wikipedia.org

• WTTc.org

• Oifc.in/hospitality

• India-briefing.com

• Ibef.org

• InvestIndia.gov.in

References

• The hospitality industry is a broad category of fields within the serviceindustry that includes lodging, event planning, theme parks, transportation,cruise line, and additional fields within the tourism industry.

• The hospitality industry is a multi-billion dollar industry that depends on the availability of leisure time.

• A hospitality unit such as a restaurant, hotel, or an amusement park consists of multiple groups such as facility maintenance, direct operations (servers, housekeepers, kitchen workers, bartenders, management, marketing, and human resources etc.).

Emerging Tourism and Hospitality Segments

RuralTourism

Medical Tourism

Heritage Tourism

Luxury Tourism

Eco-Tourism

India ranked 12th among 184 countries in terms of travel & tourism‘s total contribution to GDP in

2012

In India, the sector’s direct contribution to GDP is

expected to grow at 7.8 per cent per annum during

2013–2023 vis-à-vis the world average of 4.2 per

cent

The travel & tourism sector in India is estimated

to create 78 jobs per USD18,366 of investment

compared to 45 in the manufacturing sector

Tourism & Hospitality Industry in India

Tourism & Hospitality Industry in India

FDI in Hospitality sector

Hotel & Tourism100% FDI is permissible in the sector on the automatic route.

For foreign technology agreements, automatic approval is granted if

• Up to 3% of the capital cost of the project is proposed to be paid fortechnical and consultancy services including fees for architects,design, supervision, etc.

• Up to 3% of net turnover is payable for franchising andmarketing/publicity support fee, and up to 10% of gross operatingprofit is payable for management fee, including incentive fee.

The size of the hospitality sector of India is considered as a sum of market share of two segments.

revenue obtained from travel businesses

revenues acquired from

hotel businesses

Companies

Several foreign players have established their strong presence in the country’s hospitality spaces

• Accor

• Starwood

• Marriott

• Cabana Hotels

• Mandarin Oriental

• Hampton Inns

• Banana Tree

• Satinwoods

• Amanda and many more

Some reputed Indian companies leadingin the hospitality sector include• Asia Hotels• ITC• East India Hotels (EIH)• Bharat Hotels• Hotel Leela venture• Indian Hotels Company (IHCL).

Growth Prospect of Tourism Industry

• As international tourism is growing every year, the Indian hospitalityindustry will offer tremendous opportunities for investors to grow. In thenear future, the Government of India will try to explore new touristdestinations in order to serve the rising demand for tourism and hospitalityin India.

• In spite of the downgrading given by credit rating agencies to Indianmarket; foreign players stand firm with their investment plans in thehospitality industry of India. Citing strong growth prospect, foreigninvestors are nicely poised to continue with their investments in Indiawithout any hassles.

• The Indian Hospitality industry has been also receiving significant interest inthe form of Private Equity investments. It is expected that the hospitalityindustry of India is likely to attract more than US$ 12 billion of inboundinvestment in next couple of years.

Major Players

• The Lalit• The Part• Courtyard• Four Seasons• The Oberoi• Watson’s• Radisson• Le Meridien• The Hyatt• The Fortune• Starwoods

• Ramada • Westin • The Zuri• JW Marriott• Trident• ITC• Taj hotels• The Leela Kempinski• Crown Plaza• Sheraton• Hilton

Two Players

The Lalit ITC Hotels

• Product- Hotels and resorts

• Place- Business Hubs,touristdestinations and strategic locations

• Price- Tariff rates

• Promotion-through FMCG goods,Travel assistants

• People-Employees and customers

• Process-Guest booking,Check in etC

• Physical evidence- Hotel lobby,Phone and Nice music

• Products- Hotels and resorts

• Place- Business hubs, tourist destinations and heritage areas

• Price- Tariff rates

• Promotion-Concept promotion,Hotel directories

• People-Employees and customers

• Process-Stay in hotel, Consuming services, Payment and Check out

• Physical evidence- Restaurant, Before &after sale service

7 P’s

Segmentation

• Business hotel

• Palace hotels

• Resorts

• Mid-segment hotels

Targeting

• Corporate firms

• Tourists

Positioning

• Best Price hotels for Luxury experience

Segmentation

• Business hotel

• Palace hotels

• Resorts

• Mid-segment hotels

Targeting

• Corporate firms

• Tourists

• High income families

• Couples

Positioning

• World class services

• Greenest luxury hotel chain