HOSPITALITY INDUSTRY

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INDUSTRY PROFILE
It It

is one of the largest industries in both the global and national contexts. involves cooperative relationships with multiple organizations. being a cheap destination for leisure tourism ,unlimited tourism and untapped business prospects, we can expect green pastures of growth in the year ahead
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INDIA

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 2020.1/9/13

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-goodeffect". Personalized comprehensive service, such as suites1/9/13 having their own

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 Indias luxury rooms availability lower than even smaller East Asian countries
80000 70000 60000 50000 40000 30000 20000 10000 0
HongKong Bangkok Singapore Malaysia India

Source: Compendium of Tourism statistics, WTO 1/9/13

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STRUCTURE OF THE INDUSTRY

Premium & luxury segment

FIVESTAR DELUX

Premiu m& luxury segmen FIVE STAR t

FOUR STAR

Mid Market Segmen t

THREE STAR

Mid Market Segmen t

Budget Segmen t

Budget Segmen t

Palaces & Forts

TWO STAR

ONE STAR
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HERITAGE HOTELS

Consumer segments
The

business traveler.

International The

and national sports& game players leisure traveler. cabin crew.

Airline

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Users of Hotel Services

Domestic
Pilgrims Students Officials Film Stars Intellects Business Executives Tourists

Foreign
Political Representatives Trade Representatives Cultural Representatives Educationists Sportsmen Business Executives Tourists
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Market Segmentation in Indian Hotel Industry

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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 aviation sector.
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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.

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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

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MAJOR PLAYERS IN INDIA

SMALL HOTEL CHAINS
INDIAN HOTELS COMPANY LTD HOTEL LEELA VENTURE EIH HOTELS ASIAN LIMITED ITC HOTELS LTD BHARAT HOTELS

ITDC LTD

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PUBLIC SECTOR CHAINS LOCALIZED HOTEL COMPANIES

ITDC HAI

INTERNATIONAL HOTEL CHAINS MARRIOTTE STARWOOD BERGGRUEN HOTELS EMAAR MGF

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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.
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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 .
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ITC/SHERATON CORPORATION

It was lunched on October 18th,1975. First Hotel CHOLA SHERATON IN CHENNAI. Currently there are 10 ITC-WELCOME GROUP SHERATON HOTELS and more in pipe line.

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ITCs Hotel Business

ITC-Welcomgroup : a leading hotel chain in India

Established presence in key business locations

Over 6000 rooms under 4 distinct brands Category Brand

Luxury Upper upscale Upscale - mid-scale Heritage ITC Hotel: Luxury Collection WelcomHotel: Sheraton Fortune Hotels WelcomHeritage

Positioning
"Mansions of Luxury" "Passion for Quality" "Promise of True Value" "Unique Experiences"

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 1/9/13 18

ITCs 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.

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7ps 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 1/9/13

7ps 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
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7ps 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.

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POLICIES & INITIATIVES

HOSPITALITY & TOURISM INDUSTRY development goes hand by hand. policy. open skies policy. Trade policy.

Tourism

Governments Foreign FDI

in HOTEL & TOURISM INDUSTRY . government initiatives.

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Other

Govt major policy initiatives include(TOURISM POLICY)

Liberalization Pricing

in aviation sector.

policy for aviation fuel which influences international air fare. in tax rates in the hospitality sector. friendly visa regime. services.

Rationalization Tourist

Immigration Procedural

charges in making available land for construction1/9/13 of hotels.

Govt open skies policy

Permission Star-up

for domestic airlines to commence international flights. of various low cost carriers.

FDI
100%

FDI is permissible in this sector

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Other government initiatives

Incredible Atithie

India

devo bhava (guests are equal to

god)
Various

Infrastructure building initiatives. million National Highway Golden Quadrilateral. North-South1/9/13 East-West and Project.

Rs.5400 5856km 7300km

SWOT ANALSYS
STRENGTHS WEAKNESS

Faster GDP growth lake of connectivity. Lake of publicity. Industrialization. Hectic rules Natural heritage Influence global player India as a of politicians Marketing gap.

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SWOT ANALYSIS
OPPORTUNITIES THREATS

Poor domestic tourism infra structure Health tourism. Political conditions Strong in cultural and nature aspects. Terrorism Commercialization of sports and games. in pollution Increase FDI policy. Entry of new competitors Mismatch of supply and demand.
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CRITICAL SUCCESS FACTORS

Site

and location flexibility

Positioning Financial Brand

equity

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Hospitality Pyramid is Inverted.

economical

luxur

luxury

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Dependability & interdependence

Hospitality
Tourism Infrastructure Industrializatio n Education

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ha T nk . ou Y .

AVINASH PALATHI NEHA GHILDYAL NEHA GUPTA 1/9/13 PRIYANK JAIN