HOTEL INDUSTRY

Guided by:
Prof. (Dr.) P.K.Priyan

Prepared by:
Abhishek Shah
(14F02)
Nishith Shah
(14M22)
Pratik Sonaiya

Outline

Introduction
Classification
Growth & Evolution
Demand Analysis
Marketing Strategy Analysis
Financial Analysis
Industry Analysis
Conclusion
Bibliography

INTRODUCTION OF HOTEL INDUSTRY

One of the fastest growing sectors of the economy is the
hotel industry. The hotel industry alone is a multi-billion
dollar and growing enterprise. It is exciting, never boring
and offer unlimited opportunities. The hotel industry is
diverse enough for people to work in different areas of
interest and still be employed within the hotel industry.
Hotels in India have supply of 200,000 rooms. According to
the tourism ministry, 4.4 million tourists visited India last
year and at current trend, demand will soar to 10 million in
2015 to accommodate 350 million domestic travelers
whereas there is shortage of 100,000 rooms in India.
The hotel industry has contributed between 1.2% and
1.5% of GDP over the last seven to eight years.

CLASSIFICATION OF HOTELS
Based on Operational Criteria

Market
Segmen
t

Owners
hip

Propert
y type

Classifica
tion of
Hotels

Level of
Service
s

Size

Classified by Ministry of tourism

Star
Catego
ry
Hotel

Classifica
tion of
Hotel
License
d units

Heritag
e Hotel

GROWTH & EVOLUTION

The tourism and hospitality sector is among the
top 15 sectors in India to attract the highest
foreign direct investment (FDI). During the period
April 2000-May 2015, this sector attracted around
US$ 8.1 billion of FDI, according to the data
released by Department of Industrial Policy and
Promotion (DIPP).
As per some published reports, hospitality sector
of India is expecting to witness better
infrastructure growth.

INNOVATION POTENTIAL
Flotel
Ecotel
Service apartment

DEMAND ANALYSIS

Indias hotel industry is experiencing an

unprecedented boom, driven by increasing no. of
businesses & tourist arrivals.
"The outlook for the Indian Hotel Industry over the
next 12-18 months is expected to remain subdued
given the gap between supply and demand.
However, measures by the government to drive
tourism through several strong policy initiatives
could bring in stronger demand, supporting the
industry over the next 12-18 months," ICRA said in
a report.
Domestic demand has showcased a growth of over
10%, driven by both business and leisure
travellers during 2014-15. However, falling global
economic sentiments have affected inbound travel

MARKET PENETRATION
For e.g, Research of our competitive
Market Set of 1,000 rooms revealed an
average aggregate Market Occupancy of
70%.
Total Market Set of rooms = 1,000
Market Occupancy = 70%
For 365 days
Total Rooms Occupied of the Market Set =
255,500 (1000*70%*365)
A particular hotels Market Share = 20%
Hotels goal of Rooms Occupied = 51,100

CURRENT TRENDS IN HOTEL INDUSTRY

The Indian hotel industry has seen a significant growth
in room inventory across categories from upscale luxury
to limited services and, boutique and budget hotels.
With the continued growth in India's GDP, improvement
in the per capita income, and increased aspirational
spending, the Indian hotel sector is expected to grow
faster than most countries around the world.
The Indian hotel industry is seeing huge spurt of foreign
investment and international brands entering the foray.
Most major international hotel brands such as
Starwood, Hilton, Marriott, Hyatt and Accor already
have a growing presence in India.
ITC Hotels also have projected its plan to open 25 new
hotels under the Fortune brand over the course of next
12-18 months.

MARKETING MIX
Produ
ct

Promoti
on

Marketi
ng Mix

Plac
e

Physic
al
Eviden
ce

Price

4 Is

Inventory

Inconsiste
ncy

Inseparab
ility

Intangibili
ty

Continue..
CRM used in hotel industry
Social media marketing

MAJOR PLAYERS IN HOTEL

INDUSTRY

Indian
Tourism
Developm
ent
Corporati
on (ITDC)

The
Indian
Hotels
Compan
y
Limited
(IHCL)

The
Asian
Hotels
Limited

Mahindr
a
Holidays
&
Resorts

Hotel
Leela
Venture

Oberoi
Group

ITC
Hotels

FINANCIAL ANALYSIS

Debt - equity Ratio

Net Profit Margin

2

20

1.8
15

1.6

10

1.4

1.2
Net Profit Margin

0.8

-5

0.6

-10
-15
-20

0.4
0.2
0

Debt - equity Ratio

Continue..

ROE

ROI

15

25

10

20

5
ROE

15

ROI

0
10
-5
5
-10
0
-15

2015 2014 2013 2012 2011 2010 2009 2008 2007 2006

INDUSTRY ANALYSIS
It consists of three major analysis.
1) PESTEL analysis
2) SWOT analysis
3) Porters Five-Force Analysis

CONCLUSION
It can be concluded that Indian hotel industry was
going through bad period due to global and
domestic factors. But it is expected that it will
grow by 10-12% in next few years. There is lot of
scope for the hotels to innovate in their services
and facilities to be provided for high customer
satisfaction.
The government policies and schemes will be
driver for changes in the hotel industry in India.
The hotel industry contributing to the national
income is in such a manner where economic
implication of hotel industry and hospitality sector
can be seen very clearly from each angle and

Continue..
Marketing and management control of a particular service
provider in a particular field is a too difficult when it comes
in to practice but Indian hotel industry has proved that they
have been using all tools of marketing to promote for the
sake of progress of hospitality sector. Use of social media
and internet are key factors for hotels in their marketing
activities.
There is a wide scope for the development and expansion of
the Hotel Industry in the country like India where there is
interdependent industry like hospitality and tourism industry
are supporting in so many ways and thereby we hope for
the bright future of the Hotel Industry in India.

THANK YOU