SUPPLY AND DEMAND ANALYSIS

DEMAND : Using ACNielsen ORG-MARG Pvt. Ltd Demand predictor Model, Demand was estimated for the year 2014. After much discussions some practical assumptions were made to predict the rooms demand category wise.

Based on AC Neilson Hotel Accommodation report 2008, we made a reliable estimate for the following parameters:

a) Proportion of visitors during the year requiring accommodation

b) Average bed nights per visitor during the year

c) Average no. of persons per room

d) Proportion of preferences for Luxury, budget or others

The following definitions have been followed in the report :

a) Luxury : All Heritage, 5 Star, 5 Star Deluxe, 4 Star are classified as luxury accommodations.

b) Budget : All 2 and 3 star Hotels are classified as budget accommodations.

c) Others : All Non starred and other types of facilities are classified as Other accommodations.

SUPPLY :

Making effective use of the web and using the available resources at the Holiday IQ database, we have estimated category wise the number of hotels and rooms in Trichy market. Comparing the supply and demand analysis , we can infer an un accommodated demand exists.

There are many number of non starred hotels is huge and most of the them are located in proximity to the subject property because of the presence of the Central Bus Stand. Based on our research, we have decided to that our target markets are the un accommodated and future induced demand for comfort rooms in two and three star segments.

COMPETITOR MAP 1

COMPETITOR MAP 2

The following table lists the key physical characteristics of the Primary and Secondary competitors :

PROPOSED NEW HOTELS

The below map identifies the proposed new hotels that are in the proposal or under construction stage. Incuding our subject propoperty, we have identified a total of nine hotels that will become operational in the forth coming years. Out of the nine hotels , one belong a branded chain , Taj Gateway, that will come close by our subject property.

We have analyzed our competitor hotels and proposed new hotels based on positioning and targeted market segments and determined the competitive level factor for each property. This enabled us to determine the existing total competitive room nights and the proposed hotels competitive room nights . For proposed hotels, based on expected date of operation the room nights will be added to the existing supply.

The below chart details the total existing competitive supply and how the supply will change over next phase of ten years. As new rooms are added to the supply, the occupancy rate of the hotels in the same segment will reduce.

CONCLUSION

The tourism market for trichy is still not saturated. The market is in an emerging stage. We do believe there is a un accommodated demand for good quality rooms . The Infra developments by the Government and private in transportation, education, industries and IT development has created an induced demand. Over all, we do believe there is a demand to fill the future supply.