hotel industry.pptx

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HOSPITALITY INDUSTRY


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INDUSTRY PROFILE

It is one of the largest industries inboth the global and national contexts.

It involves cooperative relationshipswith multiple organizations.

INDIA being a cheap destination for

leisure tourism ,unlimited tourism anduntapped business prospects, we canexpect green pastures of growth in theyear ahead


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Unique Sales Points

Many higher end hotels in India arerealized that their key USP in internationalcompetition is not their high-techfacilities, but rather their outstandingstaff-to-guest ratios and the longstandingtradition of Indian hospitality asimmortalized by "Atithi Devo Bhava".

Hospitality is about serving the guestsand to provide them with a "feel-good-effect". Personalized comprehensive

service, such as suites having their own


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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

0

10000

20000

30000

40000

50000

60000

70000

80000

HongKong Bangkok Singapore M alaysia India

Source: Compendium of Tourism statistics, WTO


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STRUCTURE OF THEINDUSTRY

FIVESTARDELUX

Premium &luxury

segmentFIVE STAR

Mid -MarketSegmen

tFOUR STAR

Mid -MarketSegmen

tTHREE STAR

Budget

Segment

TWO STAR

Budget

Segment

ONE STAR

Palaces

& Forts

HERITAGEHOTELS

Premium& luxurysegment


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Consumer segments

The business traveler.

International and national sports&

game playersThe leisure traveler.

Airline cabin crew.


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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


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Market Segmentation inIndian Hotel Industry


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DEMAND & SUPPLYSCENARIO

The main reasons for the demandare:

India's strong GDP growth.

Opening of sectors of economy toprivate sector/foreign investment.

Strengthening of ties with thedeveloped 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

HOTEL CHAINS

INDIAN HOTELS COMPANY LTD

EIH LIMITED

ITC HOTELS LTD

ITDC LTD

SMALL CHAINS

HOTEL LEELA VENTURE

ASIAN HOTELS

BHARAT HOTELS


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PUBLIC SECTOR CHAINS

ITDC

HAI

INTERNATIONAL HOTEL CHAINS

MARRIOTTE

STARWOOD

BERGGRUEN HOTELS

EMAAR MGF

LOCALIZED HOTEL COMPANIES


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PROFILE OF SOME OF THEMAJOR PLAYERS

The Indian Hotels Company

With its subsidiaries collectively known as

TAJ HOTELS ,RESORTS &PALACE.

Incorporated by the founder of TATAGroup.

First property TAJMAHAL PALACE HOTEL,BOMBAY,1903.

83 proprties at 40 locations across INDIA

with an addition 17 international hotels.


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DEVELOPMENTCORPORATION(ITDC)/THE

ASHOK GROUP Established in 1966 as an autonomous

public sector corporation.

Entrusted with the task of helping,developing tourism infrastructure andpromoting INDIA as a Tourist destination.

It has Elite Hotels , Comfort Hotels

,Classic Hotels.

33 Hotels in 22 Tourist destinations allover INDIA .


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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

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

Category Brand Positioning

Luxury ITC Hotel: Luxury Collection "Mansions of Luxury"

Upper upscale WelcomHotel: Sheraton "Passion for Quality"

Upscale - mid-scale Fortune Hotels "Promise of True Value"Heritage WelcomHeritage "Unique Experiences"


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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 withMarudhar 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 targetedcustomers through national and


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7ps of ITC

PLACE:

located in all metros and follows its own

regional tradition and treats their guestsaccordingly

PROCESS:

Regular maintenance of the room,keeping the surroundings clean andhygienic


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7ps of ITC

PHYSICAL EVIDENCE:

Deep sleep is more than just the right

bed. It is about an environment thatsoothes all the five senses. Experienceour rooms and know how it feels to sleeplike a baby again.

PEOPLE:

Highly professional workers,internationally qualified chefs.


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POLICIES & INITIATIVES

HOSPITALITY & TOURISM INDUSTRYdevelopment goes hand by hand.

Tourism policy.Governments open skies policy.

Foreign Trade policy.

FDI in HOTEL & TOURISM INDUSTRY.

Other government initiatives.


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Govt major policy initiativesinclude(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.


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Govt open skies policy

Permission for domestic airlines tocommence international flights.

Star-up of various low cost carriers.

FDI

100% FDI is permissible in this sector


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Other governmentinitiatives

Incredible India

Atithie devo bhava (guests are equal to

god) Various Infrastructure building

initiatives.

Rs.5400 million National HighwayProject.

5856km Golden Quadrilateral.

7300km North-South and East-West


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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.


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SWOT ANALYSIS

OPPORTUNITIES

Health tourism.

Strong in cultural and nature aspects.

Commercialization of sports andgames.

FDI policy.

Mismatch of supply and demand.

THREATS

Poor domestic tourism infra structure

Political conditions

Terrorism

Increase in pollution

Entry of new competitors


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CRITICAL SUCCESSFACTORS

Site and location

Positioning

Financial flexibility

Brand equity


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Inverted.

luxury

luxur

economical


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Dependability &interdependence

Hospitality

Tourism

Infrastructure

Industrialization

Education


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Tha

nk

You.

. AVINASH

PALATHINEHAGHILDYAL

NEHA GUPTA

PRIYANK JAIN

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