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Done By:

Group 2

Aditi Vidyarthi(2009004)

Pooja Sihag(2009029)Purnima K. Tarkar(2009032)

Sangram Dhumal(2009042)

Nitin C. (2009096)

Rohit Nadgiri(2009105)

Sanketa Pawar(2009109)

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Hotel Industry in India

Annual travelling population of 563 million, bigger than

the entire population of the US.

Less than 1% of the world tourism market.

Supply of rooms increased by 109% in a period of 11

years

5.37 million international travellers & 562.9 million

domestic travellers in 2008, 4.2 million international

tourists in 2009

Contribution to GDP 6.1% in FY09 vs 6.8% in FY08

80262 registered roomsSource:

https://www.crisilresearch.com/ResearchProWeb/control/popup?id=62758&indPrint

=20

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Tourist Inflow

0

100000

200000

300000

400000

500000

600000

700000

FY06

FY07

FY08

FY09

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12.4% drop in overall occupancy across hotels inIndia

Average Room Rate (ARR) declined by 1.9% onlyfor

2008-09. (Mumbai -42% Delhi -31%).

Foreign tourist arrival has decreased by 2.5% to

5.1 mn during 2008-09 After a terpid growth of 1.8% in October it fell

in every single month from November. DuringMarch 2009 it decreased by 12.8%.

Tourist Inflow

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High Capital Requirements

(Rs. 0.115 crore per year per room)

Long Gestation Period(4-5 years)

Poor infrastructure facilities

Scarcity of land especially in the metros

Creating a new Brand identity is difficult.

High Threat of Entry.

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The buyers exhibit high power

Existence of approximately 4-5 luxury

hotels in a metro or a tourist

destination.

Similar services provided by every

hotel.

Many organizations go for contracted

deals with hotels.

Switching cost is almost negligible.

Power of Buyers

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Power of Suppliers

The power of suppliers is low

The raw material suppliers do not

have the bargaining power.

Switching cost for the hotel industry is

low

Similar products supplied.

The suppliers not capable of forward

integration.

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Types of Substitutes:

Service Apartments Resorts

Boutique Hotel

The threat is moderate.

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Competitive Rivalry is high

The extent to which

competitors are in balance

Growing market -tourism industry to grow at rate of

12%

No service differentiation

Exit barriers

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INDIAN HOTEL

HOTEL LEELA

ASIAN HOTELJAPYEE HOTELS

ORENTIAL HOTELS

TAJ GVK HOTELS

ROYAL ORCHIDADVANI HOTELS

EIH ASSOCIATE HOTEL

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PEST ANALYSIS

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Removal of Expenditure Tax from 2007-08

Exemption of Service Tax proposed in Budget

2008-09

Incredible India campaign by DOT(dept ofTourism industry)

WTTC-promoted Global Travel & Tourism

Summit held in

Doha, Qatar in May 2004.

Convention centres getting government funding.

Upgradation of 28 regional airports in smaller

towns.

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Society orientated to individual oriented.

Rise in per capita income

Rise in working population.

Special needs of younger travellers (Gen-Xand Gen-Y), who have high expectations inregard to design and technology.

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Availability of online booking facility

Internet and Wi-Fi facility all over

Availability of booking through PDAs, Mobilephones, etc.

CCTVs and metal detectors for security.

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TERROR ATTACKS

Improved security & safety features for hotel guests.

TECHNOLOGY:

Installation of PNG (Piped Natural Gas) fuelledgenerator sets and PNG fired calendar and tumblerdrier machines in hotel laundries.

Improvements to reduce heat gain/cooling lossesfrom building envelops in hotels.

Measures for reduction of energy consumption andconsequent impact on the cost of production ofgoods.

Floor access control in hotels through key cardsystem.

Recommendation

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Medical, pilgrimage, adventure, heritage , Ecotourism etc.

Cater to the needs of baby boomers and gen X &gen Y.

Hotels near proposed convention centres.

Recommendation

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online. om/News/PR2006_4th/Nov06_ISH .html htt ://www.it ort l.in Company Sour e Prowess atabase CMI atabase http://wtt .or CRISI atabase Industry nalysis Servi es atabase I Cannual report 2008-09.

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Thank You!!!