ABSTRACT

This project is all about the hospitality industry and its existence in india.The project will through a light on how the hospitality industry has grown from past and how tourisim has been flourished with the support of this industry. The project will cover different segments, players and structure of the hospitality industry .It will also make us understand the contribution of hospitality industry towards the economy of the country. The main of the study will be to find the different trends in hospitality industry and what opportunity is seen for it in the future.

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Contents
Contents..................................................................................................................... 2 HOSPITALITY INDUSTRY – AN OVERVIEW....................................................................3 Accommodation.......................................................................................................5 Bars & Clubs............................................................................................................5 Travel and Tourism..................................................................................................5 Service and Support................................................................................................5 CONTRIBUTION TO INDIAN ECONOMY.........................................................................6 Future-wise.............................................................................................................. 6 The driving force......................................................................................................7 SWOT ANALYSIS........................................................................................................11 TRENDS IN HOSPITALITY SECTOR.............................................................................12 CHALLENGES FOR HOSPITALITY INDUSTRY...............................................................14 RECOMMENDATIONS ................................................................................................15 Recommendations to the government..................................................................15 Recommendations to the hospitality industry:......................................................15 FUTURE OF HOSPITALITY SECTOR.............................................................................16 HOTEL INDUSTRY OVERVIEW....................................................................................17 LEADING COMPANIES IN HOTELS..............................................................................20 CONCLUSION............................................................................................................25

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resorts or clubs who make a vocation of treating tourists. and tourism. inn. Likewise. in the coming year’s Indian hospitality is seeing green pastures of growth. catering.4 million. It is expected to grow at the rate of 8% between 2007 and 2016. This year the number of tourists visiting India is estimated to have touched the figure of 4. Radisson.5 trillion dollar service sector within the global economy. Availability of qualified human resources and untapped geographical resources give great prospects to the hospitality industry. internal tourism is another area with great potentials. Helped With unique efforts by government and all other stakeholders. The arrival of foreign tourists has shown a compounded annual growth of 6 per cent over the past 10 years. It is an umbrella term for a broad variety of service industries including. Many take Indian hospitality service not for its quality of service but India being a cheap destination for leisure tourism with unlimited tourism and untapped business prospects. Indian hospitality industry has gained a level of acceptance world over. 3 . casinos. However. restaurants. The hospitality industry is very diverse and global. The hospitality industry is a 3. hotels.HOSPITALITY INDUSTRY – AN OVERVIEW Hospitality is all about offering warmth to someone who looks for help at a strange or unfriendly the commercial context refers to the activity of hotels. but not limited to. food service. Meridian. India is becoming the hottest tourist destination. Hyatt. resort managers. The boom in travel and tourism has led to the further development of hospitality industry.8% between 2007-16. which would place India as the second-fastest growing tourism market in the world. dictated by the fluctuations that occur with an economy every year. With this huge figure. Today hospitality sector is one of the fastest growing sectors in India. it is projected to grow at a rate of 8. The number of tourists coming to India is growing year after year. The industry is cyclical. Many international hotels including Sheraton. Four Seasons Regent. In 2003-04 the hospitality industry contributed only 2% of the GDP. It has yet to go miles for recognition as a world leader of hospitality. and Marriott International are already established in the Indian markets and are still expanding. including hotel owners. Nowadays the travel and tourism industry is also included in hospitality sector. tour and travel operators and employees who work in the sector.

We can also find its presence in the earliest Vedas and religious epics. In very simple terms. Earlier people who graduated from a Hotel School could get 4 . this means “friendliness to guests”. it has become a huge industry and drives economies across the globe. food and drinks. Today hospitality has evolved from the basic food and accommodation industry and taken a very important position in almost all businesses.Atithi Devo Bhavo (guest is God) We have all heard this phrase many times during our childhood from our parents and grandparents. Hospitality is deep-rooted in our traditions and comes as an integral part of our heritage. It includes:- The concept of hospitality business started when people started traveling away on business and they needed a place away from home which could cater to all their needs. hospitality is the art of being warm to strangers and has been Derived from the Latin word hospitalitem. The scope of hospitality/ service industry today is far more than one could have ever imagined a few years back. In fact. The hospitality industry covers a diverse range of establishments in the form of accommodation.

But service is the BUZZ word for all businesses today. Telecom world. Over the last two years. Be it the Retail Sector. BPO. The following figures show that business as well as the leisure travelers (both domestic and international) formed major clientele for hotels in 2004. because of their sheer capability of understanding the needs of a customer better and handling difficult customers/ situations efficiently. a person with hospitality background has an edge above the rest. Banking Industry. Hotel industry depends largely upon the foreign tourist arrivals further classified into business travelers (around 65% of the total foreign tourists) and leisure travelers. higher occupancy rate (being around 75% in FY'06) and significant increase in average room rate (ARR). the hotel industry has seen higher growth rates due to greater number of tourist arrivals.  Residential  Public houses  Motels  Resorts  Sanatorium Bars & Clubs  Nightclubs  Public houses  Restaurants Travel and Tourism  Travel Agents  Airline Cabin Staff  Travel technology Service and Support  Accountancy 5 . Real Estate or any other sector having direct customer contact.employed either in Hotels. Cruises or Airlines. Accommodation  Hotels.

Thus. etc. with high operating margins and \ increase in the number of travelers visiting India . Various brands and operators will play a larger role in driving design standards. Accordingly. the only direction left for the sector points upwards. which will warrant greater training requirements for hotel staff.4 per cent.000 rooms only in totality. In comparison to nations like China. Within the nation. getting involved at early project planning stages. major contribution as destinations will be from the growing tier I and II cities with a special emphasis on business hotels across categories as well as the prime leisure destinations like Goa. the needs of the traveler will be nothing less than perfection. which is lesser than that in Las Vegas. besides contributing to an insignificant portion of the GDP . 6 . what needs to be focused on is the fact that opportunities are not missed. However. Rajasthan. they will be less forgiving of service deficiencies. Guests will require higher levels of service in the fullservice segments. creating the aura for India as a leisure destination.both inbound and outbound. With an increase in choices available. The limited service hotels will require a complete shift in the perception of customer service. India has approximately 100. Differentiations in product type will evolve more at the higher end of the market with: boutique hotels  resorts  convention centers The need to differentiate design will play an important role. Occupational Health and Spa CONTRIBUTION TO INDIAN ECONOMY The Indian hospitality industry is going great guns presently. Thailand and Malaysia where the hospitality share ranges between 12 and 15 per cent. which will remain on the growth path. which presently includes the large gaps in rooms supply as compared to demand. Future-wise The driving force behind these will be global brand standards and therefore they will have standard specifications creating a degree of uniformity and standardization in certain limited and mid-market hotel segments.just 5.

'green-conscious' business and corporate groups will patronize hotels and brands that support green concepts. However when discussing service.. it would prove very fruitful for the industry POLICIES & INITIATIVES Tourism being a concurrent subject under the Indian constitution. the reliance on technology will move beyond Wi-Fi and internet requirements to tools to support sales and marketing as well as yield management. customizing sales and marketing efforts for each targeted traveler. not just in the hotels but the economy as a whole. the process of getting approvals and licenses to build and operate hotels are streamlined. This will also revamp sales and marketing as international brands will leverage their central reservation systems and will initiate networks with third party reservation agencies. For instance if land prices became more realistic. it will have a direct influence on the hotel industry. together with strong infrastructure development and investment and more tax/levy incentives being provided to build hotels. an area of immense importance within a hotel will also evolve. Even basic interiors will be upgraded with the use of technology like self check-in and information kiosks. both the central and state 7 . design typologies will be more customized to suit traveler’s lifestyle. Asian Games and the recent Indian Premiere League that builds interest about the nation. The driving force If the country is able to sustain its economic growth especially in the service sector. This is directly related to the incoming foreign investments. which is the main play of this industry. which will go beyond cost-saving. Apart from these external factors there are other factors where the industry can be given a great boost. systems will become more sophisticated and targeted. Equal importance will also be given to green-building concepts in terms of development and operations. especially for the select-service hotel categories. In addition.As hotel segments cater to specific demand segments. Besides all this. placating the demands from both investors and customers... Also equally important is the fact that India has now discovered the power of marketing and with campaigns like Incredible India.. In addition. it has to be understood that the growth phase is still on and the market is currently undersupplied in terms of trained hotel staff to cater to the large supply pipeline. F&B. there are also the various large scales regional and global events like the upcoming Commonwealth Games.

position it as a major engine of economic growth and to harness its direct and multiplier effects for employment and poverty eradication in an environmentally sustainable manner. culturally enriched. Broadly. mentally rejuvenated. a hotel license (issued by municipal authorities). private sector and other agencies • Ensure that the tourist to India gets physically invigorated. The Government’s 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 • Tourist friendly visa regime • Immigration services • Procedural changes in making available land for construction of hotels • Allowing setting up of Guest Houses The Indian Ministry of Tourism has identified 31 villages across the country to be developed 8 . spiritually elevated and “feel India from within”. This includes license to operate a restaurant. the “Policy” attempts to: • Position tourism as a major engine of economic growth • Harness the direct and multiplier effects of tourism for employment generation. license from police (issued by local police) and a bar license (issued by excise department). heritage. and culture in partnership with States. Tourism Policy In order to develop tourism in India in a systematic manner. The regulations include statutory and regulatory sanctions (or approvals and licenses) from the Central and State departments or agencies. the National Tourism Policy was formulated in the year 2002.governments regulates the hotel industry. 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 India’s unique civilization.

against their foreign exchange earnings under the Served from India Scheme. Maharashtra. which are otherwise considered as having been paid for in free foreign exchange by RBI. offered following incentives to the hospitality industry: Hotels and Restaurants are allowed to import duty free equipment and other items including liquor. Rajasthan and West Bengal. The numbers. Also. Karnataka. Gujarat. Tamil Nadu.0 per cent of the total domestic traffic. Madhya Pradesh. The states in which these villages have been identified include Himachal Pradesh. Service exports in Indian Rupees. and fleet expansion by domestic players has created a huge incentive for domestic travelers to explore far-off destinations within and outside India. Kerala. start-up of various low-cost carriers. speak for themselves: • The number of domestic and international passengers has increased fifteen-fold to 73. • International passenger traffic observed a growth of 16. this entitlement is 5per cent of previous year’s foreign exchange earnings for hotels of one-star and above (including managed hotels and heritage hotels) approved by the Department of Tourism and other service providers in the tourism sector registered with it. • Domestic air passenger traffic grew by 16. foreign exchange earned through International Credit Cards and other 9 . according to the Ministry of Tourism.as tourism hubs. will now qualify for benefits under the Served from India Scheme. Bihar. Orissa. • Private airlines accounted for 77. Andhra Pradesh. permission for domestic airlines to commence international flights.34 million in 2005/06 since 1970. Sikkim.8 per cent in 2005/06 compared to 2004/05. Foreign Trade Policy The Foreign Trade Policy announced in April. Government’s Open Skies Policy The Government’s Open Skies policy. 2006. The stand-alone restaurants will be entitled to duty credit equivalent to 10per cent of the foreign exchange earned by them in the preceding financial year (instead of the earlier 20per cent). and pulling Indians out of their homes and into hotels. Assam. As in previous years. The booming aviation business is bringing an ever-increasing number of passengers to India.9 per cent in the same period.

The earlier provision allowed transfer of imported material only.Under this program the Government 10 . beach resorts. units providing facilities for cultural. tour operating agencies and tourist transport operating agencies. air and water transport facilities to tourists. design. amusement. Other Government Initiatives Government has undertaken following initiatives to attract both inbound and outbound tourists: • Incredible India . • up to 3 per cent of net turnover is payable for franchising and marketing/publicity support fee. Tourism related industry include travel agencies. and health units for tourists and Convention/Seminar units and organizations. surface.instruments as permitted by RBI for rendering of service by the service providers shall be considered for the purposes of computation of entitlement under the Scheme. entertainment. FDI in Hotel and Tourism Sector 100 per cent FDI is permissible in the sector on the automatic route. The measure aims at supporting the Group service companies not earning foreign exchange in getting access to the international quality products at competitive price and providing services of international standards. etc. and other tourist complexes providing accommodation and/or catering and food facilities to tourists. sports. supervision.Under this program the Government promotes India through various integrated marketing programs. and up to 10 per cent of gross operating profit is payable for management fee. including incentive fee. This new initiative allows transfer of both the script and the imported input to the Group Service Company. automatic approval is granted if: • up to 3 per cent of the capital cost of the project is proposed to be paid for technical and consultancy services including fees for architects. • Atethie devo bhava (guests are equal to god) . leisure. adventure and wild life experience to tourists. Benefits of the Scheme earned by one service provider of a Group company can now be utilised by other service providers of the same Group Company including managed hotels. The term hotels include restaurants. For foreign technology agreements.

The coastlines. sunny beaches. • Various Infrastructure building initiatives • Encourage religious tourism for instance promote various places in India as Buddhist abodes. Natural and cultural diversity: India has a rich cultural heritage.846 km Golden Quadrilateral and the 7. 540 crore for the development of the industry. 11 . snow capped Himalayas and the quiescent lakes are incredible. New budget and star hotels are being established. 4.400 million National Highways Development Project. which will change the way people discover and experience real India. SWOT ANALYSIS STRENGTHS 1. The priority is being given to the development of the infrastructure and of new tourist destinations and circuits. The "unity in diversity" tag attracts most tourists. Demand-supply gap: Indian hotel industry is facing a mismatch between the demand and supply of rooms leading to higher room rates and occupancy levels. Moreover.300 km north-south and east-west corridors.create awareness among Indian people who come in contact with the tourist. 5. This has led to the rapid expansion of the sector 3. foreign hospitality players are heading towards Indian markets. 2. Government support: The government has realized the importance of tourism and has proposed a budget of Rs. The Department of Tourism (DOT) has already started the "Incredible India" campaign for the promotion of tourism in India. With the privilege of hosting Commonwealth Games 2010 there is more demand of rooms in five star hotels. Sagarmala project which intends to create a network of seaports. backwaters of Kerala. Increase in the market share: India's share in international tourism and hospitality market is expected to increase over the long-term. • Other projects are the Rs. the 5.

the travel and tourism industry has seen an increase in business. Slow implementation: The lack of adequate recognition for the tourism industry has been hampering its growth prospects. Susceptible to political events: The internal security scenario and social unrest also hamper the foreign tourist arrival rates. the total expenditure made in this regard was US $150 billion in China compared to US$ 21 billion in India. Open sky benefits: With the open sky policy. Low Cost Carriers 12 . OPPORTUNITIES 1. Fluctuations in international tourist arrivals: The total dependency on foreign tourists can be risky. Two other groups . Rising income: Owing to the rise in income levels. THREATS 1. It has benefited both international and domestic travels. many more things need to be done to improve the infrastructure. This will increase the competition for the existing Indian hotel majors TRENDS IN HOSPITALITY SECTOR Trends that will shape the future of hospitality sector are: 1. Domestic tourism needs to be given equal importance and measures should be taken to promote it.the Carlson Group and the Marriott chain . Indians have more spare money to spend. In 2003. Poor support infrastructure: Though the government is taking necessary steps. Whatever steps are being taken by the government are implemented at a slower pace. 2.are also looking forward to join this race. as there are wide fluctuations in international tourism. 2. Shangri-La and Amman Resorts are entering the Indian markets. Increasing competition: Several international majors like the Four Seasons. which is expected to enhance leisure tourism. 2. 3. Increased airline activity has stimulated demand and has helped improve the infrastructure.WEAKNESSES 1.

The average room rate (ARR) realized from business travelers is normally higher than from leisure travelers. etc. Wi-Fi Internet connectivity. Technology is making its own advances with high-tech video conferencing facilities. is an established global concept. 5. 13 . Often a low airfare will stimulate demand for travel even if hotel prices are increasing.2. upgrades. Service Apartments 4. Kamfotel. e-ticketing. Country Inns & Suites. though a recent phenomenon in India. Budget Hotels 3. airline-credit card company tie-ups have brought a whole range of benefits to the travelers. Ideally suited for medium-tolong staying guests. more options and connectivity. Loyalty Travel 1. as they have advantages like low costs. flats in the UK and apartment complexes in the US have all created a viable market for those who want more than just a room in a hotel. 4. On-line bookings. web cameras and virtual reality mode of conferencing. Service apartments: The concept of service apartments. Loyalty travel: Today. 3. These include insurance cover. easy access to information. Some of the new players entering into this category of hotels include Hometel. Service apartments are the latest trend in accommodation. non-resident Indians visiting the country for long spells and foreigners visiting the city for long durations. service apartments are a natural choice for corporate employees or expatriates relocating to a particular city. are just a few areas where technology has completely changed the way we travel. Heightened demand and the healthy occupancy rates have resulted in an increase in the number of budget hotels. Technology: Travel and technology have become inseparable. Villas in Spain. free tickets. 2. LCCs are a good option for business travelers. and a host of other Goodies. Technology 5. Low cost carriers: Travelers in general are more price sensitive to airfare than they are to hotel room rates. offering the comfort and convenience of a home without the hassles of having to maintain or look after it. Ibis and Fairfield Inn. access to executive lounges. Budget hotels: More than 50 per cent of occupancy of a majority of hotels comes from the business travel segment. Courtyard by Marriott.

The competition from neighboring countries and negative perceptions about Indian tourism product constrains the growth of tourism..000 rooms. almost all the data which actually make the company work are filled in manual log books or are simply not tracked. 14 . most of the hotel management graduates are joining other sectors like retail and aviation. Manual back-end: Though most reputed chains have IT enabled systems for property management. and no amount of automation can substitute for personal service providers. new products and new systems. India is focusing more on white collar jobs than blue collar jobs. 50. 5. reservations. political instability.CHALLENGES FOR HOSPITALITY INDUSTRY 1. The hospitality industry has failed to retain good professionals. 3. 6. It is estimated that the current requirement is of 1.000 rooms by 2011. the shortage will still persist. Though the new investment plan would add 53. The shortage of blue collar employees will pose various threats to the industry. 4. etc. Intense competition and image of India: The industry is witnessing heightened competition with the arrival of new players. Shortage of rooms: The hotel industry is facing heavy shortage of rooms. The companies have to focus on customer loyalty and repeat purchases. Human resource development: Some of the services required in the tourism and hotel industries are highly personalized. Though there is boom in the service sector. Customer expectations: As India is emerging as a destination on the global travel map. 7. One of the reasons for this is unattractive wage packages. Retaining quality workforce: Retention of the workforce through training and development in the hotel industry is a problem and attrition levels are too high. expectations of customers are rising. Shortage of skilled employees: One of the greatest challenges plaguing the hospitality industry is the unavailability of quality workforce in different skill levels. The image of India as a country overrun by poverty. 2. safety concerns and diseases also harms the tourism industry.

 Continuous training: There is a need of continuous training to all categories of employees in the organization. university / AICTE / private institutes in the country  Curriculum development from time to time as industry requirement  Fees structure for different courses in different institutes  Appoint a committee to identify the requirements of qualified manpower for International Hotels and also identify the ways to develop. The committee should concentrate on the following issues mainly:  Create a policy on industry institute interaction  Establish an apex body t coordinate all the management institutes in the country  For conducting common entrance test for all Govt.RECOMMENDATIONS Recommendations to the government The government could constitute a steering committee to review the demand and supply of the human resources in the hospitality industry and prepare plans for developing qualitative human resources which are required for the present day global industry. when they have a tie – up with the institutes . Recommendations to the hospitality industry:  Tie – ups with institutes: It is the duty of the Industry t makes necessary tie-up / arrangement for their required human resources with one or two hospitality institutes in the country. The committee should constitute with the members from all concerned areas like:  State and central tourism development commissioners  Representatives from all areas of hospitality industry   Member’s / president / secretary of the hotel management associations Member’s / president / secretary of the travel and tourism associations  Representative from hotel employees associations  One member representative from international hotel chain The committee should review the present situation and suggest the steps to be taken to reduce the gap between the demand and supply of human resources in the industry. the institutes 15 .

With government's full support in developing infrastructure. Many international players like Le Meridian and Accor are heading towards Indian markets to expand their business. the hotel industry is also booming.  Sponsoring: It is the duty of the industry to sponsor some amount / equipment to the institute for their betterment. The industry should involve in the researchers by providing timely information and data which is ultimately useful for them only. increase in demand. new products will come into markets and better services will be provided.  Research: Every institute must spend some amount for the research which is essential for further development and understand the present situation. the hospitality industry is getting consolidated and has many more opportunities to grow further. open sky policies and increased competition. FUTURE OF HOSPITALITY SECTOR To boost up the growth of tourism in India. 520 crore in 2007-2008.will offer in – house training to different category of employees from time to time to update their skills . the government has proposed to invest Rs. Tourism in expected to grow further over the next few years due to the changes taking place on the demand and supply sides. infrastructure will improve. 16 . Due to the rapid growth in tourism. competition will increase. The factors that will account for the further growth of tourism will include the following:  Change in standards of living  More disposable income  Better education  Long leisure time  Aging population Owing to growth of tourism sector. If possible the sponsor a chair for continuous funding and research for that institute.

brand image.  The average room rate (ARR) and occupancy rate (OC) are the two most critical factors that determine profitability. with Delhi and Mumbai being on top.HOTEL INDUSTRY OVERVIEW A hotel is an establishment that provides paid lodging. a swimming pool or childcare. quality of facilities and services offered. The hotel industry can be further categorized into three segments:  Hotels  restaurants  Contract caterers. a number of multinationals have strengthened their presence.4 million tourists visit India every year. Players like Four Seasons are also likely to enter the Indian marketing the near future.  Approximately 4. Thus the growth prospects are very high.  ARR depends on location. A combination of all these factors could result in a strong emergence of budget hotels. In the hotel sector.  The occupancy rate depends on other seasonal factors. Some hotels have conference services and meeting rooms and encourage groups to hold conventions and meetings at their location. usually on a short term basis. Indian hotel chains are also expanding internationally. which could potentially lower the cost of travel and related costs. star rating.  HOTELS 17 . Hotels often provide a number of additional guest services such as a restaurant. Some of the main features of the Indian hotel industry include the following:  The industry is more dependent on metropolitan cities as they account for 75% to 80% of the revenues. Moreover.  India is an ideal destination for tourists.

top government officials and political brass. meters The first 2 types are usually located in business areas of metro cities and cater to foreign tourists. business travelers. They are built over an area of up to 18000 sq. You’ll find the next 2 types in tier II cities and tourist destinations. offering luxury at a high price.The hotels in India can be broadly classified into the following segments: Star rated hotels: They form 30% of the industry size. preferred by mid-level 18 . These are considered to be very expensive. These are mainly situated in the business districts of metro cities and cater to business travelers and foreign tourists.

Golden Tulip budget hotels. Some new global entrants include UK’s Dawnay Day and Whitbread Premier Travel Inn. hunting lodges etc. Shangri-la. Hometel. These are characterized by lesser capital expenditure and affordability and include hotels running in palaces. Increased demand and healthy occupancy has fueled the growth of budget hotels in a short time. castles. Ibis and Kamfotel among others. Amman resorts. Courtyard by Marriott. Country inns and suites. offer limited luxury. Fairfield inn. Budget hotels are preferred by business travelers contributing to greater ARR (average room rate) than leisure travelers. preferred by domestic tourists. seasonal discounts and decent services.The last 2 types are found in smaller cities and around tourist spots. forts. The heritage hotels are further classified as: Budget hotels: They’re usually preferred by domestic travelers seeking economical accommodation. Facility hotels:- 19 .executives and leisure tourists. These are reasonably priced.

They form 19% of the industry size. Ruby Tuesday. Bercos.Unclassified hotels: They’re motels spread across the country. Low price is their only USP. Compass Group. RESTAURANTS These typically include fast food chains. etc. B. The major players include Barista. etc. CONTRACT CATERING This includes any catering business unit that is formally not a part of the hotel industry but is closely allied to it. ethnic restaurants. Some of the major players in this category include Sodexho. fine dining and coffee bars. LEADING COMPANIES IN HOTELS 20 . Mc Donald’s.

938 million (approximately $260. EIH is engaged in the ownership and operation of hotels and other related services.EIH. 21 . Its net profit was INR1. the flagship company of The Oberoi Group.5 million (approximately $37. provides hospitality and related services.1 million) in fiscal 2009.1) EIH: . The company recorded revenues of INR11.5 million) in the fiscal year ended March 2009. The company primarily operates in India. where it is headquartered in Kolkata. 699.

22 . Sri Lanka. Mauritius. Taj Hotels Resorts and Palaces comprises of 59 hotels at 40 locations across India with an additional 17 international hotels in the Maldives. IHCL and its subsidiaries are collectively known as Taj Hotels Resorts and Palaces. Malaysia. a subsidiary of Tata Group. India.ITC-WELCOM GROUP has pioneered the concept of "BRANDED ACCOMMODATION" in the hospitality industry. Bhutan. The company primarily operates in India. Branding led to the segmentation of room which was termed as branded Executive club.2) ITC limited: . ITC WELCOMGROUP tied up with STARWOOD with STARWOOD to launch its premium brand. The company has more than 75 hotels in India with about 5500 rooms and is developing 27 more properties that will add about 3000 rooms. US. the Middle East and Australia.The Indian Hotels Company (IHCL). UK. Indian Hotel Company limited: . The ‘LUXURY COLLECTION’. The Towers and ITC One. is engaged in hoteliering and air catering business. It is headquartered in Mumbai. Africa. In 2007.

specialty restaurants and bars. tennis courts. fitness centers. an airline catering service in South Asia. which is a complex of 80 luxurious serviced apartments in South Mumbai. restaurants. the company also operates the Institute of Hotel Management. as a joint venture with \ Singapore Airport Terminal Services. gourmet specialty restaurants and bars. a subsidiary of Singapore Airlines. water sports facilities. a luxury private jet operation with Falcon 2000 aircrafts designed by Dassault Aviation. It offers rooms. France. and the Middle East. Sri Lanka. Additionally. palaces. It also offers swimming pools. leisure and business categories. The Taj business hotels are spread across India. IHCL also operates Taj Air. The Taj luxury hotels offer suites and rooms. It offers rooms by the sea. and historic and pilgrim centers. It has restaurants and bars that serve a range of cuisines from across the globe. and Taj Yachts. The Taj leisure hotels include beach resorts. and conference facilities and banquet areas. and travel assistance. The company also operates Taj Sats Air Catering. designed with the help of international faculty and has affiliations with several American and European programmers. telecommunication facilities such as wireless internet connectivity. IHCL also operates Taj Wellington Mews Luxury Residences. business centers. fitness centers. Aurangabad. Africa. spas. and travel assistance. which offers a three year diploma. two 3-bedroom luxury yachts. 23 . freshwater swimming pools. and banquet and meeting facilities. business facilities. spas. garden retreats. coffee shops.Taj Hotels Resorts and Palaces is grouped into luxury.

the Indian hotels and motels industry is forecast to have a value of $11.2billion.Market Value Forecast In 2013.5% since 2008. an increase of 96. 24 .5%. The compound annual growth rate of the industry in the period 2008-2013 is predicted to be 14.

also prompted them to generate new lines of revenue with creative approaches. behavior-based evaluation. whilst opening up a plethora of opportunities. Increased competition and increase in demand has consolidated the hospitality segment. This has. Combining unparalleled growth prospects and unlimited business potential. market choice and market response has predominantly shaped the country's hotel & hospitality industry. Fierce competition has led to innovative ideas by hotel majors. in turn. be it by reducing transaction costs. BIBLIOGRAPHY 25 . thereby delivering impressive hospitality products and services.CONCLUSION A focus on quality. increasing productivity or promoting traditional Indian values. this industry is certainly on the foyer towards being a key player in the nation's changing face.

in www.com www.com www.com Indian Hospitality Industry : Emerging Issues.itcwelcomgroup.oberoihotels.tajhotels.• • • • • www. Opportunities &ChallengesGowri Shankar K 26 .fhrai.

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