H O S P I T A L I T Y I N D U S T R Y

HOTELS HOTEL INDUSTRY RESTAURANTS

STAR RATED HOTELS HERITAGE HOTELS BUDGET HOTELS FASCILITY HOTELS RESORTS UNCLASSIFIED

TRAVEL & TOURISM INDUSTRY

CONTRACT CATERERS TOURISM FAST FOOD CHAINS CASUAL DINING FINE DINING COFFEE BARS

TRAVEL

INTRODUCTION
LINKED TO THE TOURISM INDUSTRY HELPS TO BOOST TRAVEL & TOURISM BUSINESS TRAVEL IS INCLUDED DEMAND SUPPLY GAP IN STAR CATEGORY HOTELS OPPORTUNITY FOR INVESTMENT FOR INDIAN AND OVERSEAS PLAYERS

CURRENT MARKET SITUATION

INDIAN HOSPITALITY INDUSTRY IS FACING A MISMATCH BETWEEN THE DEMAND AND SUPPLY OF ROOMS. GLOBAL PRESENCE CHANGE IN THE LIFESTYLE OF PEOPLE NEW CONCEPT OF BUDGET HOTELS IN MALLS EXAMPLE: FORTUNE PARK HOTELS LTD, A SUBSIDIARY OF ITC LTD AT 46 PROPERTIES (OUT OF WHICH 25 ARE UP AND RUNNING) ACROSS 38 CITIES.

 DEPENDENCE ON TOURISM BUOYANT DOMESTIC GROWTH DEVELOPMENT OF NEW MARKETING PROJECTS & EVENTS GROWTH IN ECONOMY NEW TOURISTS GETTING ATTRACTED EXAMPLE:1. INCREDIBLE INDIA 2. INDIAN PREMIER LEAGUE 3. COMMONWEALTH GAMES

NEED FOR INVESTMENT

DUE TO THE STRONG GROWTH IN INFORMATION TECHNOLOGYAND BPO SEGMENT. INCREASE IN NO. OF FOREIGN TRAVELLERS. ON TOURISM BY

EMPHASISED FOCUS GOVERNMENT.

DEVELOPMENT OF INFRATRUCTURE

INVESTMENTS
DEVELOPMENT OF INFRASTRUCTURE FACILITIES

GROWTH OF NEW HOTELS INVESTMENT FROM VARIOUS SOURCES EXAMPLES:PRIVATE EQUITY FIRM WARBURG PINCUS HAS PICKED UP AROUND 27 % STAKE IN DELHI-BASED MID-PRICE HOTEL CHAIN,LEMON TREE, FOR $ 60.2 MILLION STARWOODS, HILTON, INTERCONTINENTAL SIGNIFICANT GROWTH PLANS FOR INDIA. HAVE

EXPECTED GROW TH
ACCORDING TO TOURISM MINISTRY, TOURIST INFLOW WILL SOAR TO
10 MILLION BY 2010, THUS LEADING TO A DEMAND FOR 100,000 MORE ROOMS.

ACCORDING TO A RESEARCH RELEASED BY WORLD TRAVEL & TOURISM

COUNCIL, INDIAS TRAVEL & TOURISM IS EXPECTED TO GENERATE

US$ 275.5 BILLION BY 2018. AS REPORTED BY MA FOI MANAGEMENT CONSULTANTS AROUND 40

INTERNATIONAL HOTEL CHAINS ARE EXPECTED TO INVEST IN THE INDIAN HOTEL MARKET BY 2011. THIS INCLUDES HILTON, ACCOR, MARIOTT INTERNATIONAL.

US$ 100 BILLION IN 2008

TOURIST INFLOW

HOTEL DEMAND

ACCORDING TO U.N. WORLD TOURISM ORGANISATION ( UNWTO) Foreign Tourist Inflow INCREASED FROM : 4.4 MILLION (2006) 4.95 MIILION (2007) 3.9 MILLION (2005) Domestic Tourist Inflow INCREASED FROM: 366.23 MILLION (2004) 462 MILLION ( 2006) BOOM IN TOURISM TOURIST INFLOW INCREASED HOTEL OCCUPANCY RATIO ( CURRENTLY 75 80%) AVERAGE INCREASE IN ROOM RATE ( CURRENTLY 22 25% )

STRENTHGS: DIVERSITY GOVERNMENT SUPPORT MARKET SHARE

WEAKNESS: POOR INFRASTUCTURE SLOW IMPLEMENTATION

SWOT ANALYSIS
OPPORTUNITY: OPEN SKY RISING INCOME THREATS:
FLUCTUATION COMPETITION

HOTEL SEGMENTATION
STAR RATED HOTELS HERITAGE HOTELS HERITAGE CLASSIC

5 5 4 3
HERITAGE GRAND

DELUXE

2 1

BUDGET HOTELS

HERITAGE

HOTELS
FACILITY HOTELS

BUSINESS HOTELS AIRPORT HOTELS HONEYMOON HOTELS RESORTS MOTELS UNCLASSIFIED GUEST HOUSES LODGE LUXURY BUSINESS LEISURE

FORMS 30% OF INDUSTRY ITC, TAJ GROUP, OBEROI GROUP, ITDC

Eg :

BUILT OVER 18000 sq.m AREA

STAR RATED HOTELS

DELUXE: LUXURY AT HIGH PRICE , 27 % GOVT. APPROVED ROOMS

5-STAR

4-STAR & 3-STAR:

FOR MIDDLE LEVEL BUSINESS EXECUTIVES/LEISURE TRAVELLERS

2-STAR & 1-STAR:

AROUND TOURIST SPOT, PREFERRED BY DOMESTIC TOURIST

HERITAGE HOTELS

HERITAGE CLASSIC: HOTELS CONSTRUCTED BETWEEN 1920 - 1935

HERITAGE GRAND: HOTELS CONSTRUCTED PRIOR TO 1920

HERITAGE:

HOTELS CONSTRUCTED AROUND 1935 1950

CHARACTERISED BY LESSER CAPITAL EXPENDITURE AND AFFORDABILITY . OPERATE FROM FORTS, PALACES, CASTLES, RIVER LODGES, HERITAGE BUILDINGS ETC.

FACILITY HOTELS
BUSINESS HOTELS
CORPORATE MEETINGS CONFERENCE Eg: INTER-CONTINENTAL, CROWNE PLAZA

AIRPORT HOTELS

LOCATED NEAR AIRPORTS SUITABLE FOR SHORT STAY TRAVELLERS. ARE FOUND NEAR ALL MAJOR CITY AIRPORTS. LOCATED AT HILL STATIONS SPECIALLY FASCILITATED TO SUIT THE COMFORTS OF HONEYMOON COUPLES. Eg. CARLTON HOTEL, HOTEL HONEYMOON INN ETC.

HONEYMOON HOTELS

MAJOR MARKET PLAYERS

PUBLIC SECTOR PLAYERS: PLAYERS:
 ITDC HOTELS  Hotel Corporation Of India

PRIVATE SECTOR PLAYERS: PLAYERS:

 ITC HOTELS  INDIAN HOTELS COMPANY LTD.(THE TAJ HOTELS RESORTS & PALACES)  OBEROI HOTELS (EAST INDIA HOTELS)  Hotel Leela Venture  Radisson Hotels & Resorts

COMPARITIVE STUDY OF ITC HOTELS & TAJ GROUP THE TAJ GROUP OF HOTELS SEGMENTATION

TAJ LUXURY HOTELS

TAJ PALACE, TAJ MAHAL, TAJ BENGAL, TAJ WEST END  OFFER FINEST STANDARD OF HOSPITALITY & SERVICE

TAJ BUSINESS HOTELS:

TAJ PRESIDENT, TAJ RESIDENCY, TAJ BLUE DIAMOND  OFFER MULTI CUISINE RESTAURANTS & BEST BUSINESS FASCILITIES

TAJ LEISURE HOTELS:

TAJ BEACH RESORT, TAJ GARDEN RETREATS  LOCATED AT BEACH RESORTS, PALACES, PILGRIM CENTRES ETC.

ITC HOTEL GROUP SEGMENTATION

SUPER DELUXE LUXURY HOTEL 5 STAR HOTEL BUDGET HOTEL HERITAGE HOTEL

ITC HOTELS LUXURY COLLECTI -ON:

 SUPER DELUXE  LOCATED AT STRATEGIC BUSINESS & LEISURE LOCATIONS

ITC SHERATON HOTELS:

WELCOM HOTELS:

FORTUNE HOTELS:

WELCOM HERITAGE:

 OFFER COMFORT SERVICE TO GLOBAL TRAVELLER AND A CHANCE TO CONNECT

 5 STAR  SPECIALLY FOR THE BUSINESS & LEISURE TRAVELLER

 FULL SERVICE PROPERTIE S ALL OVER INDIA  IDEAL FOR BUDGET TRAVELLER

 CHAIN OF PALACES, FORTS, HAVELIS & RESORTS

ITCITC-DEVELOPMENTS
 BRANDED ACCOMODATION  LUXURY COLLECTION  75 HOTELS5,500 ROOMS  27 HOTELS BEING CONSTRUCTED3,000 ROOMS  CAR & LIMOUZINE HIRE SERVICE

TAJTAJ-DEVELOPMENTS
 57 HOTELS IN 40 LOCATIONS ACROSS INDIA  ADDITIONAL 18 INTERNATIONAL HOTELS.  FIRST TO INTRODUCE SICHUAN, THAI, ITALIAN, MEXICAN, AND CALIFORNIAN CUISINE IN INDIA  TURN OVER OF RS. 1823.18 CRORES WITH THE YEAR ENDING ON MARCH 31, 2008.

PUBLIC SECTOR PLAYER

ITDC ASHOK GROUP OF HOTELS

ELITE HOTELS COMFORT HOTELS CLASSIC HOTELS
Hotel Ashok, New Delhi, Kovalam Ashok Beach Resort, Kovalam, Lalitha Mahal Palace Hotel Aurangabad Ashok, Aurangabad, Lake View Ashok, Bhopal, Brahmaputra Ashok, Guahati Agra Ashok, Bharatpur Forest Lodge, Kalinga Ashok Bhubaneswar, Jaipur Ashok

ITDC : PORTFOLIO
NETWORK OF 8 ASHOK GROUP OF HOTELS 6 JOINT VENTURE HOTELS 2 RESTAURANTS TARGETS TOPLINE OF RS.900 CRORE BY 2010 HOTEL LAKE VIEW ASHOK HAS EARNED A PROFIT OF RS. 23.87 LAKH IN 2006-2007 HOTEL RANCHI ASHOKS PROFIT INCREASED BY 1472 PER CENT

CHALLENGES TO FACE
Shortage of skilled employees

Intense competition and image of India

Retaining quality workforce

Manual back-end

CHALLENGES FOR HOTEL INDUSTRY

Shortage of rooms

Human resource development

Lack of adequate infrastructure development