1. HOSPITALITY INDUSTRY
Hospitality Sector
India
Ruchi Jain
Sonu Sharma
PGDM-II

2. Definition
• “The reception and entertainment of guests,
visitors, or strangers with liberality and good
will”.
• Oxford English Dictionary

3. Services

4. Past
• In1650 Mr. Pascal opened cafe in Paris and coffee
house in London.
• Termand house was 1st class hotel made in Boston
1829
• 1960 many individuals owners merge themselves
with large chain such as
Sheraton, Hilton, Hyatt, holiday inn for franchising
by paying a fee
• History of hotels established in india in 18.19 & 20
cemtury

5. Present Scenario
 'Hotel Industry in India' have supply of 110,000 rooms
 India ranks 18th in business travel
 Visiting foreigners has reached a record 3.92 million
 'Hotel Industry in India' is set to grow at 15% a year.

6. Hospitality Sector India – At a Glance
Growth Rate 8.8%
Annual Rise in Room Rates 25%
Industry Turn Over FY 2009-10: US$ 137.36 (INR
47,889.03 crore)
Expected Export earnings Till US$ 51.4 billion
2019
Direct & Indirect Employment Generated 218,200 jobs in 2011
GDP Contribution 6.23%
Employment opportunity 8.78%

7. Key Players
Company Type of properties Brands
Indian Hotels Luxury, mid-segment and Taj, Gateway, Vivanta and
budget Ginger
ITC Welcomgroup Luxury, budget and ITC Hotel—Luxury
heritage hotels Collection,
WelcomHotel—Sheraton,
Fortune and
WelcomHeritage
EIH Business hotels, leisure Oberoi and Trident
hotels and cruises
Carlson Luxury, business hotels, Radisson Hotels and
economy and cruises Resorts, Park Plaza,
Country Inns & Suites,
Park Inn
InterContinental Luxury, mid-segment and InterContinental, Crowne
business hotels Plaza, Holiday Inn,
Holiday Inn Express,
Hotel

8. Market Share captured by Indian
hospitality sector
Market Share • Taj hotels-25%
• Oberio hotels -17%
Taj Hotel
• Itc welcome group-
Oberoi Hotel 1.1%
ITC welcum • Hotel leela-0.6%
Group
• Others-0.5%
Hotel Leela
Others

9. Hotel industry in India
80000  Foreign arrivals into India: 5
million appx. Vs. 35 million in
70000
China
60000 • The two nations were on par 2
50000 decades ago at 750,000 arrivals
40000  Today, Beijing alone has as many
hotel rooms as the whole of India
30000
 India’s luxury rooms availability
20000
lower than even smaller East
10000 Asian countries
0
HongKong Bangkok Singapore Malaysia India

10. Future & Potential Growth
• Internationaltourist inflow in India by 2020 would be
10 m
• Tourist influx to grow at a CAGR of 6.5% for the
next14 yrs
• share of world tourism: 1.5% by 2010
• Untapped domestic tourist potential
• Medical Tourism
• Rural Tourism
• Wildlife Tourism

11. Facts and figures
Tourism is presently the most important civil industry in the
world. The hospitality industry is second only to the global oil
industry in terms of turnover, and is, by far, the largest employer
around the world.
Ten percent of the world's work force is in the tourism
industry, and 10 percent of the world's GNP comes from tourism.
In calendar ’05, the country received 3.9m foreign tourists, a
jump of 14% over ’04. In ’05, the country earned $6.9bn from
inbound foreign tourists, which is more than twice the $3.1bn
earned in ’02.
The World Tourism Organisation has predicted that India will
receive 25 million tourists by 2015.

12. SWOT ANALSYS
STRENGTHS WEAKNESS
 Faster GDP growth  lack of connectivity.
 Industrialization.  Lake of publicity.
 Natural heritage  Hectic rules
 India as a global player  Influence of politicians
 Marketing gap.

13. SWOT ANALYSIS
OPPORTUNITIES THREATS
 Health tourism.  Poor domestic tourism
infra structure
 Strong in cultural and
nature aspects.  Political conditions
 Commercialization of  Terrorism
sports and games.
 Increase in pollution
 FDI policy.
 Entry of new competitors
 Mismatch of supply and
demand.