Indian Hotel Industry

By Author: Bharat Book Bureau
Total Articles: 1486
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Revenues of Hotel and Restaurant (H&R) industry in India during the financial year 2006-07 was INR604.32 billion , a growth of 21.27% over the previous year, primarily driven by foreign tourist arrivals ,which increased by 14.17%. Currently there are some 1,980 hotels approved and classified by the Ministry of Tourism, Government of India, with a total capacity of about 110,000 hotel rooms.

The hospitality industry, is poised to grow at a faster rate and reach INR826.76 billion by
2010. It is estimated that over the next two years 70,000-80,000 rooms will be added across different categories throughout the country.

In the Indian scenario, the report covers the current trends in the Hotel industry (increase in foreign tourist arrivals, MNC's foraying into India, demand supply mismatch getting closer, rise in Occupancy rates and RevPAR and strong recovery of the Indian economy),its structure (composition of hotels), key consumer segments (business traveller, leisure traveller, & airline cabin crew) and value chain. As a part of the derisking model the companies in the Indian hotel industry are also ...
... moving up the value chain to management contracts and co-branding.

The report on Indian Hotel Industry provides an in-depth view of the sector in general and important aspects of the sector. The report starts with the global hotel industry to give a perspective of the Indian hotel industry in the global context. The report covers the hotels industry structure, major players, regulations, growth drivers, issues and challenges, critical success factors and foreign direct investment trends. An analysis of the industry performance was made on critical business parameters like Occupancy rates, Revenue Per Available Room (RevPAR) and Average Room Rates (ARR) and compared with global trends.. The report also analyses the performance of the industry across major markets, and profiles the major players in the industry.

Table of Contents : -

Executive Summary Highlights.

1. Global Hotel Industry 1.1 Classification of Hotels 1.2 Global Hotel Industry Landscape 1.3 Hotel Industry Performance - 2001 through 2006 1.4 T&T's (Travel & Tourism) contribution to Global GDP 1.5 Regional performance of Global Hotel Industry - 2006 over 2005 1.6 Conclusion.

2. An Overview of Indian Hotel Industry 2.1 Introduction 2.2 Industry structure & segments 2.3 Industry Turnover - growth trend 2.4 Major Players 2.5 Competition 2.6 Demand - Supply scenario 2.7 FDI flow 2.7.1 Hotel Industry - FDI 2.7 Conclusion

3 Emerging Trends 3.1 Introduction 3.2 Value Chain 3.3 Filling gaps in Price & Service value chain 3.3.1 Service Apartments - A Home Away From Home 3.3.2 Spas 3.3.3 Budget Hotels

4. Nature of Hotel Industry Business 4.1 Hotel Industry - Key Characteristics 4.2 Key consumer segments 4.3 Seasonality 4.4 Operating Risks 4.5 Regulations/Standards 4.6 Government Policy

5. Performance of Indian Hotel Industry 5.1 Major Cities and Towns 5.2 Industry Aggregate Financials

6. Growth Drivers 6.1 Introduction 6.2 General economic and business conditions in India and other countries 6.3 Geo-political stability within India and in other countries 6.4 Changes in laws and regulations that apply to hotel, tourism and hospitality Industry 6.5 Discovering/Expanding new/niche markets 6.6 Effectiveness of distribution channels

7 Issues and Challenges 7.1 Introduction 7.2 Changing labour conditions 7.3 Increase in operating cost 7.4 Natural disasters 7.5 Lack of infra-structure 7.6 Growing customer expectations 7.7 Managing change

8. Critical Success Factors 8.1 Site and Location: 8.2 Positioning and Guest Profile 8.3 Financial Strength: 8.4 Brand Recognition 8.5 Yield Management 8.6 Differential pricing: 8.7 Others

9. Company Profiles 9.1 Asian Hotels Limited 9.2 Indian Hotels Company Limited 9.3 EIH Limited 9.4 India Tourism Development Corporation 9.5 Hotel Leela Venture 9.6 Royal Orchid Hotels Ltd 9.7 Taj GVK Hotels and Resorts Limited 9.8 Jaypee Hotels Ltd 9.9 ITC Hotels Limited

10. Future Outlook Annexure 1: Bibliography Annexure 2: List of Abbreviations

LIST OF FIGURES

Figure 2.1: Indian Hotel industry: 2005-2006(e)

Figure 3.1: Industry Value Chain

Figure 6.1: Cost Comparison Index

LIST OF TABLES

Table 1.1: World Travel & Tourism spending (USD bn):2001-06

Table 1.2: World Travel & Tourism spending (USD bn) VS Global GDP: 2001-06

Table 1.3: Performance of global hotel markets - 2006 versus 2005

Table 1.4: Hotel performance in the Middle East 2006

Table 1.5: Performance of European Hotels - 2006 over 2005

Table 1.6: Top Ten Hotels -Sales (USD m) 2005 - 2006

Table 1.7: Top Ten Hotels - inventory: 2005 - 2006

Table 1.8: Global T&T Future Outlook - 2007-2010

Table 2.1: Indian T&T Industry Turnover 2002-2007 (INR bn)

Table 2.2: Indian Hotels & Restaurant Industry Turnover 2002-2007 (INR bn)

Table 2.3 Top Five Hotels

Table 2.4: Foreign Tourist Arrivals: FY2003-FY2007

Table 2.5: Number of Hotels

Table 2.6: Number of Rooms

Table 2.7: FDI flows (USDm) - India 2002-05

Table 3.1: Classification of Hotels

Table 4.1: The Key Characteristics of each category of hotels and typical locations

Table 5.1: Indian Hotel Industry Performance (Average Occupancy):FY2003-2007

Table 5.2: Indian Hotel Industry Performance (Average Room Rate):FY2003-2007

Table 5.3: Key Operating Characteristics 2005-06

Table 5.4: Indian Hotel & Restaurant Industry performance: FY2003-2007

Table 6.1: Cost Comparison with neighbouring countries (USD)

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