Prepared By: Deepika Garg Anup Simplepreet Aishwarya

The Indian hotels industry is still in the nascent stages of recovery and is yet to make the transition from an occupancyled cycle to one supported by rising average room realizations (ARRs)

Visitors are sub-divided into two categories: tourists and same day visitors It is boom time for Indias tourism and hospitality sector. The focus of the industry is on the Atithi Devo Bhavah campaign, targeted at the inbound foreign tourists in countey. Translated literally it means Guest Is god. Tourism in India is the third largest foreign exchange earner, accounting for 2.5% of GDP.

The World travel and Tourism Council (WTTC) has named India along with China as one of the most fastest growing tourism industries for the next 10-15 years. Despite lagging in the basic infrastructure, Indian Tourism Industry has been showing an impressive double- digit growth. In order to sustain this growth, the Government should invest in infrastructure such as transport and accommodations. According to Global hotel and hospitality consulting firms, HVS International, the strong performance in the tourist arrivals can be attributed to a strong sense of business and investment confidence in India inspired by :

Indias strong GDP performance Strengthening of ties with the developed world, and Opening of sectors of the economy to private sector/ foreign investment. The efforts made by the Ministry of Tourism And Culture in the last few years have had a salutary effect on Indias tourism industry.

The Hotel Industry comprises a major part of the Tourism Industry Prior to 1980s, the Indian Hotel industry was a slow-growing industry, consisting primarily of relatively static, single-hotel companies. In 1982s, after partial liberalization of the Indian economy, it generated tourism interest in India, with significant benefits accruing to the Hotel And Tourism sector, in terms of improved demand patterns. Growth in the demand for hotels was particularly high during the early 1990s following the initiatives taken to liberalize the Indian Economy in FY1991.

The global hotels industry appears to be now on a path of slow recovery, having coming out of two exceptionally bad years (2009-10) In India, the demand - or occupancy led recovery that started with the return of domestic travellers late in calendar 2010, received a boost with foreign tourist arrivals (FTAs) picking up in the subsequent months. The latter half of 2010-11 saw the industry push for higher tariffs, although pricing recovery for the whole of 2010-11 stood at a tepid 5-8%.

The Indian hotels industry appears to have embarked on a recovery cycle, triggered largely by the revival in domestic travel (both leisure and business) since the second half (H2) of fiscal 2009-10; FTAs have also improved since December 2009, and were up 7.9% to 55.8 lakh travelers during CY2010. Although the October 2010 Commonwealth Games were expected to provide a strong demand push to the Indian hotels industry, weak planning and execution diluted the benefits to hotels in the NCR and the rest of the country. On the other hand, the Cricket World Cup in the fourth quarter (Q4) of 201011 provided a much stronger demand impetus, with hotels reporting high occupancies in Chandigarh, New Delhi and particularly Mumbai (during the Finals in early April 2011).

Despite the worrying signals from the global economy, ICRA expects demand in several Indian markets to report healthy growth during 2011-12, supported both by domestic and foreign travellers. The Formula 1 racing event scheduled to be staged in the NCR in October 2011 is an enabling factor in this regard.

Market

Demand Drivers

Prospects

Outlook

Mumbai

Gateway city and financial capital

Supply likely to be absorbed

Although there is supply lined up in North Mumbai and Navi Mumbai, being a gateway city and the countrys financial centre, demand is likely to be robust. Bangalore has seen significant room additions in 2009-11 and is likely to see more over the next few years, which

Bangalor Foreign e IT/ITES business travellers

Oversupply likely in the near term

Market

Demand Drivers
Gateway city

Prospects
Oversupply likely in the near term

Outlook
While supply is still spilling over from the Commonwealth Games period, the NCR is expecting to add around 5,000 rooms over the next three to four years. This is likely to suppress pricing power. However, over a longer period, growing demand should absorb the supply.

NCR

Market Pune

Demand Drivers
Foreign IT/ITES business travellers

Prospects
Heavy oversupply likely

Outlook
With supply additions still on, the outlook for the next two years is subdued. Pune is one of the few markets that saw occupancies and ARRs decline in Q1, 2010-11 because of supply addition. With a strong supply pipeline for 2012 and 2013, the city is likely to experience significant pricing pressure over the next two years.

Chennai

Manufacturin g and services sectors

Oversupply likely in the near term

Market
Hyderab ad

Demand Drivers
Manufacturin g and services sectors

Prospects
Oversupply likely in the near term

Outlook
This market still has a large supply pipeline and hence recovery is likely to be slow till 2013. Incumbents and new developers with lower cost structures/breakeven are likely to benefit.

Goa

Domestic and foreign tourists

Supply limited and demand growing

Demand remained strong during the October-May 2011 peak season. Limited supply and foreign tourists are likely

(a) (b) (c) (d) (e)

The Hotels in India is broadly classified into 7 categories (five star deluxe, five star, four star, three star, two star, and heritage hotels) by the Ministry of Tourism, Government of India based on the general features and facilities offered. The ratings are reviewed every five years. Premium and Luxury segment mid-market segment Budget segment Heritage Hotels Others

Hotel Chains Small Chains Public Sector Chains International Hotel Chains Localized Hotel Chains

Tourism being a concurrent subject under the indian constitution, both the state and central governments regulates the hotel industry. (a)Tourism policy The national tourism policy was formulated in the year 2002, the policy attempts to: Position tourism as a major engine of economic growth. Harness the direct and multiplier effects of tourism for employment generation, economic development and providing impetus to rural tourism Focus on domestic tourism as a major driver of tourism growth Position India as a global brand to take advantage of the burgeoning global travel trade and the vast untapped potential of india as a destination.

Acknowledges the critical role of private sector with government working as a pro-active facilitator and catalyst. Create and develop integrated tourism circuits based on Indias unique civilization, heritage and culture in partnership with states, private sector and other agencies. Ensure that the tourist to India gets physically invigorated, mentally rejuvenated, culturally enriched, spirtually elevated and feel India from within

The governments major policy initiatives include: Liberalization in aviation sector Pricing policy for aviation turbine fuel which influences internal air fares. Rationalization in tax rates in the hospitality sector Tourism friendly visa regime Immigration services Procedural changes in making available land for construction of hotels Allowing setting up of Guest Houses.

Allows domestic airlines to commence international flights, start-up of various low- cost carriers and fleet expansion Booming aviation business is bringing an ever increasing number of passengers to India
(c) foreign trade policy

FTP policy announced in 2006 offered following incentives to the hospitality industry Hotels and restaurants are allowed to import duty free equipment and other items

100% FDI is permissible in the sector on the automatic route. Tourism related industries provide facilities for cultural adventure and wild life experience. (e) Other government initiatives Incredible India Atithie Devo Bhawa (guests are equal to God) Various infrastructure building initiatives. Encourage religious tourism Other projects are the rupees, 5400 million National Highway Development Project, the, 5846 Km Golden Quadrilateral and the, 7300 Km northsouth and east-west corridors.

There is vast room for growth in tourism industry The expected growth of the industry in future provides various opportunities to invest in new technologies. (a) Health Tourism A heart surgery in the US costs USD 30,000 as compared to USD 6,000 in India. A bone marrow transplant in the US costs USD 2,50,000 and USD 26,000 in India.

The key success factors for the hotel industry are mentioned as folllows: Site and location Positioning Financial flexibility Brand equity

Threat of losing foreign tourists to other competing countries. India is highly prone to prevailing socioeconomic and political conditions, which in the long run, is going to negatively impact the tourism industry in India. The biggest challenge in the Indian Tourism Sector is that of entry of new players like Aman Resorts, Shangri-La Hotels, Four Seasons Hotels and The Hilton Group. As the number of players increases, the competitive intensity in the sector is likely to increase.

Whats new ???? Infrastructure Airports Fast trains Hotels and resorts Recreation facilities Eg: golf

5th largest Economy (PPP)

High Growth -250 Middle Class

huge Outbound Market -Growth huge Infrastructure Investment OpportunitiesTax Incentives Available

Reduction in entry fee and passenger tax for monuments Over 17,000 additional international air seat capacity Touch screen information kiosks Maximizing the use of information technology for promotion

The 4 Ps of marketing are Product ,Price, Place, and Promotion. Think of each of these as a variable which you control. The idea is to set these variables in such a way so that sales will take place. You cannot "make" a customer pull out her credit card, but you can certainly help her in coming to a decision by setting the "right price, the retail location, the level of advertising and even product attributes such as color or perceived quality. You control everything but the customer itself. These variables are all interdependent. Taken together , they constitute a certain mix.

PRODUCT In the hospitality industry the service that the hotel provides and the other products that the hotel provides are the facilities the rooms the restaurants the hotel has It's fully refurbished guest rooms and highly personalized service, make you feel comfortable and cared for, miles away from home the product that the rarmadas is into is always to keep the guests happy who enter and leave their premises PRICE What is Price? The answer may not be as obvious as one may think. Price is not just the sticker price or the price invoiced. It goes deeper. the Ramada is one of the only 5 star hotels in Goa that has prices that even a common man can avail of on grand occasions they have a price tag which varies for different persons requirements may from any walk of life Ramada is a good price package that fits every ones budget due to which they do not face competition from other hotels

PLACE Exclusive international 5 star deluxe resort located on colva beach . 186 rooms, 10suites, 6 villas with private balconies overlooking landscaped garden & the ocean And only 3 km from the airport so why wont anyone opt for a better place than this PROMOTION The Ramada have their advertising on local radios during great events like valentines day , and the occasions in Goa which is very important . they have shows and discothques in which they have freebies like couple entry on 50%discount and etc their promotion is also done thru Indian airlines which offers tickets and staying packages for Ramada and the rates are so nominal that people cannot resist

Is essentially the identification of subsets of buyers within a market who share similar needs and who demonstrate similar buyer behavior There are many ways that a segment can be considered. For example, the auto market could be segmented by: engine size, model type, cost, and soon. Hence we see customers are targetted by psychographics and also by sociocultural factors to a certain extent

Targeting is the second stage of the process. After the market has been separated into its segments, the marketer will select a segment or series of segments and 'target' it/them . It's like looking at a dart board or a shooting target. You see that it has areas with different scores -these are your segments. Aiming the dart or the bullet at a specific scoring area is 'targeting' Considering Goa being the hottest tourist location in India, foreigners are the major source of income . hence their major target market would the foreigners who come to India on a vacation

POSITIONING IS NOT WHAT YOU DO TO A PRODUCT

ITS IS WHAT YOU DO TO A MIND OF THE PROSPECT

VARIABLES: Factors that cause something to change and vary INTANGIBILITY: A state of being abstract, as things cannot be touched CHANGEABILITY: A condition of being subject to change or alteration PERISHABILITY: The probability of the product ceasing to exist or becoming unusable within a limited amount of time !!!!

Product mix: hotels stay innovative in the peripheral services Price mix: the diverse nature and the character of dishes , involvement of cost and the spending power of the customers Place mix: location of the hotel is the most important decision for the hotel Promotion mix: advertisement, publicity, sales promotion, personal selling, word of mouth promotion and telemarketing are the components of the hotel strategy

People: the hotel management should train its people regularly Physical evidence

The best picture of the exotic travel destinations used to be found on the cardboard- cutout displays in the travel agency windows. But these days you and see and find out the destinations about the exciting travel locations online Most cities, states and countries have official travel and the tourism sections on their websites.!!!! WWW.NAMEOF THEPLACE.COM

Strengths: Very good and peaceful location . They have their own beach COLVA which is major tourist attraction. Good services toward customer Rates are much low as compared to their customer Weakness: Very far from airport, railway station and from the main city .No major tourist spot nearby except colva beach

Opportunity: As there is boom. in tourisms so opportunity of capturing the market . Major brand Ramada all over the world Support from Kokan government tourisms department If they do more advertisement and promotion then chances of capturing more market shares. Threats Major competition from hotels like Leela, Taj, and holiday inn and Majorda beach resorts

As India is rich with culture and heritage, but India is facing not so good important place in the tourism industry. which can provide 30% to 50% of the G.D.P of the country. But the government is not taking it very seriously to improve our condition so that the tourism industry in the country can grow. Today man had money and wanted to see what he had learned and listened from the people. They are ready to pay for entertainment but they should feel that they had enjoyed. Foreign countries are taking the advantage by providing with the attractive offers and simplicity in obtaining tourist visa . They advertise themselves they had formed separate ministry to see that they are advertised and there is increase in the tourist.

1. The Indian Economy India's exponential FDI growth likely to continue Indian demographics, the right fit for global business audiences Continued growth of projected GDP, at more than 7% in the years ahead Resilient economy, only marginally affected by the global financial crisis Exponential service sector growth, with emergence of BPO, Telecom and other sectors

2. The Maturing of Indian Hotel Markets

Emergence of secondary and tertiary cities Emergence of micro-markets Continued marketing of Brand India Continued improvement of infrastructure in Indian cities and towns Ease of attaining Indian visas Development of India's image as a safe, secure and friendly destination Development and marketing of niche tourism like medical tourism, religious circuits, adventure tourism etc.

3. Hotel Brand Explosions in India Entry of most major international brands Changing perception of Indian markets as a lucrative opportunity among international brands Growth of the Indian middle class offering a large consumer base of more than 1 billion people Educated and well exposed Indian audiences, likely to accept global brands wholeheartedly Expected emergence of branded budget and economy hotels

4. India The MICE Business Opportunity

Growth of science and technology related industries like biotechnology and pharmaceuticals that then host large conferences Growth of the manufacturing sector Increased interest in India as a travel-worthy destination Expected emergence of dedicated convention centres in more cities

5. Hospitality Marketing Trends Broadening of the playing field with entry of many domestic and international hotel chains Well educated, travelled and experienced customer base Evolution of the brand from a one-way communication stream to a two-way one that accommodates customer needs and experiences Consistent delivery of brand promises and customer experiences Marketing equations changing in favour of the customer with online channels like Web 2.0 and social networking

6. Hotel Development Costs

Likely rationalization of land costs, due to the recent economic conditions Increased import of material from global sources, as long as quality goods are available Expected rationalization of costs, with government intervention in relaxing the license process Expected rationalization of per key development costs, with entry of brands across all positionings

8. Food & Beverage (F&B) Concepts Rapid growth of standalone restaurants Well-travelled customer open to fine dining experiences Entry of restaurant-focused funds Focus on Interior design, a priority for restaurants

9. Manpower - The Human Element Continued good-quality talent crunch Increasing growth opportunities for the global Indian to relocate to India Continued hiring from and attrition to related service sectors Expected offerings of Employee Stock Options and Competitive Healthcare plans by more hotel chains Innovative solutions to the continued challenge of attracting and retaining trained employees

10. Technology & Hospitality

Continued significant contribution of third party travel websites to hotel reservations Increasing role of Brand.com sites in the overall sales and marketing strategy of all hotel brands Increasing reliance on search engine optimization, web advertising and emarketing

Conclusion India known the world over as the land of hospitality is today in the defining stages of the business of hospitality. While the possibilities for growth are immense, it will take an earnest effort, both from the industry's key stakeholders in the private sector and the relevant government bodies to truly change the Indian hospitality's landscape in the years ahead. Hospitality India has come a long way since 2000; however, it has a steep climb ahead

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