backseat and the focus is shifting to the management model. Factorsdriving this operating model are:Hotel operation is a critical area where efficiency has to be spot on andthis is where the management model stands out There are a number of properties developing with a fewer number of operators
ergence of Mixed Land Usage
Mixed-use developments incorporating residential, retail, entertainment,hospitality and corporate offices are fast emerging in metros tier-II andtier-III cities. Some examples are as below:Kshitij introducing µMarket Cities¶, retail-led mixed-use development projects in Mumbai, Chennai and BengaluruBrigade group is focusing on the µhotel-cum-mall¶ options with BrigadeMetropolis, a business hotel being developed at ChennaiThe Leela Kempinski, Gurgaon is located in a mixed-use complex of luxury residences, retail spaces, entertainment and wellness facilities
inishing Brand Loyalty
Guests today are becoming increasingly unpredictable and quickly switchtheir patronage for better deals across hotel segments, thereby reducingefficacy of many loyalty programs which hotels target towards their customers.
New Avenues of Growth
Service apartments, time sharing, fractional ownership, and companyhotels or guest houses, have immense potential to grow. Their growth islikely to be due to increased demand of the IT, ITES, BPO, KPO, biotechnology and medical tourism sectors.Heightened awareness of consumers towards their environment has brought into prominence the concept of µeco tourism¶ and µagri-tourism¶.There is an increased flow of people, especially those from the west, toIndia for medical services. This has also brought into limelight theconcept of µmedical tourism¶. The current market for µmedical tourism¶ inIndia is US$ 533 million, and is expected to grow to US$ 3.29 billion by2018.Diversification holds the key to survival in the long run. The hotelindustry isn¶t behind. Spas are appearing at hotel properties at aremarkable rate and are becoming independent profit centers. Cafes,lounges and bars which have high profit margins, are increasing their presence in several hotels.