Hospitality and Leisure

Redefining the concept of ‘hospitality’ the last decade witnessed a new definition and outlook towards the industry of hospitality, where consumers of this segment no longer meant just leisure travellers but more importantly business travellers, where hotels no longer meant just a place to stay but rather the height of luxury an individual can experience.

This is the era where of work combined with pleasure, and with more disposable income both tourists are no longer going about just seeing places, but they are also willing to indulge themselves in the finest hotels, experiencing the most refined hospitality. Surprisingly, more than leisure travellers, it is the business travellers and MICE which account for the maximum crowd in these ultra-modern and super-luxurious hotels.

India is currently witnessing a boom in this industry. The acceleration in the growth is supposed to take place from 2014 onwards, making this the right time to invest in this industry. As the tier II and tier III cities develop with noticeable growth rate every year, these cities are increasingly becoming the hotspots for new hotels, with a rise in both business travellers as well as MICE.

Expansion is evident in the entire country and it is forecasted that India will require an additional capacity of 60,000 hotel rooms by the end of this decade which is already leading to the building of around 300 hotels in the next few years. Although Mumbai and Delhi were earlier the central attraction spots for hotels (and even now continue to enjoy the maximum revenue per room with maximum rooms being occupied at any point of time), but now cities like Kolkata are witnessing market entry of global players with giants like Marriott, Novotel etc.

USA, UK and Europe contribute to almost 60% travellers filling these hotels but there is a rise in domestic travellers as well, keeping in mind that the disposable income of the Indian middle class is on the rise and a lot of companies are opting for the finest hotels while arranging MICE.

Lucrative, no doubt, but at the same time too many players account for steep competition in the sector. Numerous hotels have adopted specific strategies to help them survive and grow. Building a brand name is important which requires corporate PR and careful planning. Member cards and loyalty programs are especially used to retain customers.

It is also important to select and train the right talent in order to provide the best service. Also imparting expert training in multiple categories to a lesser number of smart employees, helps in decreasing manpower cost. Hotels are also going green, using renewable energy and recycling waste, in order to cut down on power cost.

These factors, combined with several key concerns addressed in the right manner and proper marketing and guidance about corporate PR can undoubtedly help in achieving a sustainable growth whose ascending graph can only match that of the industry’s itself.

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