Hospitality industry

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Hospitality industry

  1. 1. HOSPITALITY INDUSTRY<br />Roll no. : 101-107<br />
  2. 2. Agenda<br /><ul><li>Introduction.
  3. 3. Advantage India
  4. 4. Market overview
  5. 5. Industry Infrastructure
  6. 6. Investments
  7. 7. Policy and regulatory framework
  8. 8. SWOT Analysis
  9. 9. Future outlook</li></li></ul><li>Introduction<br /><ul><li>US$ 3.5 trillion service sector within the global economy.
  10. 10. double-digit growth in foreign tourist arrivals.
  11. 11. 5.9 per cent of the GDP and providing employment to about 41.8 million people.
  12. 12. occupancy ratios and average room rates.</li></ul>Introduction<br />SWOT<br />Govt. policies<br />Mkt overview<br />Investment<br />
  13. 13. Market Overview<br /><ul><li>The demand for travel and tourism in India is expected to increase at a compound annual growth rate (CAGR) of 11.8 per cent between 2005 and 2010, to reach US$ 144.4 billion
  14. 14. expected to reach US$ 431.7 billion (INR 24,252.4 billion) by 2020.
  15. 15. Market Segments
  16. 16. Key Consumer Segments</li></ul>The Business Traveler<br />The Leisure Traveler<br />Airline Cabin Crew<br />Mkt overview<br />Introduction<br />SWOT<br />Govt. policies<br />Investment<br />
  17. 17. Market Overview<br /><ul><li>Revenue sources
  18. 18. Hotel occupancy and average rates
  19. 19. Monthly seasonality</li></ul>Mkt overview<br />Introduction<br />SWOT<br />Govt. policies<br />Investment<br />
  20. 20. Advantage India<br />Introduction<br />SWOT<br />Govt. policies<br />Mkt overview<br />Investment<br />
  21. 21. Growth drivers<br /><ul><li>Rising affordability and affinity for leisure travel.
  22. 22. Domestic tourist visits 650 million in 2010, a growth of 15.5 per cent over the previous year.</li></ul>Domestic tourism <br /><ul><li>Easy availability of attractive tour .
  23. 23. Globalization .
  24. 24. Indian outbound travelers 11 million in 2010</li></ul>Popular destination for foreign tourists<br /><ul><li>International tourist arrivals have increased by 8.1%CAGR(5.1 m)
  25. 25. foreign exchange earnings increased by 13%($ 11.4 b). </li></ul>Increasingly affordable Outbound travel <br /><ul><li>increase in business travel to smaller cities with IT/ITeS companies expanding operations .
  26. 26. a greater influx of foreign tourists to small cities.</li></ul>Increasing demand in smaller cities <br />Mkt overview<br />Introduction<br />SWOT<br />Govt. policies<br />Investment<br />
  27. 27. Growth drivers<br /><ul><li>Upgradation infrastructure facilities The Ministry of Tourism at important tourist destinations.
  28. 28. Reduced airfares and better infrastructure at airports.</li></ul>Augmented Infrastructure<br /><ul><li>Increasing inflow of expatriates and travelers staying for long durations.
  29. 29. Taj Wellington Mews, Homestead , Marriott Executive, Star City, Grand Hyatt Residences and Seasons.</li></ul>Serviced apartments <br /><ul><li> Medical tourism grow at 29 per cent to reach US$ 2.4 billion by 2012.
  30. 30. Several hotel-cum-hospitals and medi-cities.
  31. 31. Eco-tourism, wildlife tourism and adventure tourism.</li></ul>Growing demand in Niche segments<br />International players <br /><ul><li>India’s fast-growing hospitality industry.
  32. 32. inorganic route to strengthen the presence.
  33. 33. Carlson Hotels (Radisson); Choice Hotels .</li></ul>Mkt overview<br />Introduction<br />SWOT<br />Govt. policies<br />Investment<br />
  34. 34. Key players<br />Hotel chains<br /><ul><li> Indian Hotels Company (the Taj Group).
  35. 35. EIH Limited (the Oberoi Group),
  36. 36. ITC Hotels Limited </li></ul>Small chains<br /><ul><li> Hotel Leela Venture (Kempinski)
  37. 37. Asian Hotels (Hyatt Int. Corporation)
  38. 38. Bharat Hotels (Intercontinental)</li></ul>Public sector chains<br /><ul><li>Indian Tourism Development </li></ul> Corporation (ITDC) <br /><ul><li> Hotel Corporation of India (HCI)</li></ul>International hotel chains<br /><ul><li> Marriott
  39. 39. Starwood,
  40. 40. Berggruen Hotels
  41. 41. Emaar MGF</li></ul>Localized hotel companies<br /><ul><li>building and catering to a</li></ul> loyal customer base.<br />Mkt overview<br />Introduction<br />SWOT<br />Govt. policies<br />Investment<br />
  42. 42. Key players<br />Mkt overview<br />Introduction<br />SWOT<br />Govt. policies<br />Investment<br />
  43. 43. Industry infrastructure<br /><ul><li>Over the years, demand-supply gap in the Indian hospitality industry has widened.
  44. 44. For instance, the demand for hotel rooms is about 240,000 rooms, while the current supply of hotel rooms is around 100,000.
  45. 45. This gap is expected to reduce in the future as several hotel projects are in the pipeline.
  46. 46. Over 15,600 rooms are expected to be added in 2010 alone.</li></ul>1,03,973<br />Mkt overview<br />Introduction<br />SWOT<br />Govt. policies<br />Investment<br />
  47. 47. Investments<br /><ul><li>Both domestic and international players have planned large-scale investments in the hospitality industry.
  48. 48. Investment in travel and tourism in India is expected to reach US$ 34.7 billion in 2010 and US$ 109.3 billion by 2020.
  49. 49. Cumulative FDI inflows US$ 2,178.9 m
  50. 50. The largest deal , the divestiture of EIH Ltd’s stake in EIH Holdings Ltd British Virgin Islands.
  51. 51. Reliance Industries Investment and Holding PvtLtd has acquired a 14.1 per cent stake in EIH Ltd.
  52. 52. Carlson, majority stake in RHW . </li></ul>Introduction<br />SWOT<br />Govt. policies<br />Mkt overview<br />Investment<br />
  53. 53. Policy and regulatory framework<br />n<br />n<br />National tourism policy 2002<br /><ul><li>Liberalization in aviation sector
  54. 54. Pricing policy for aviation turbine fuel which influences internal air fares
  55. 55. Rationalization in tax rates in the hospitality sector
  56. 56. Tourist friendly visa regime
  57. 57. Immigration services
  58. 58. Procedural changes in making available land for construction of hotels
  59. 59. Allowing setting up of Guest Houses</li></ul>Government’s Open Skies Policy<br /><ul><li>permission for domestic airlines to commence Int. flights.
  60. 60. start-up of various low-cost carriers.
  61. 61. fleet expansion by domestic players .</li></ul>Government initiatives<br /><ul><li>Incredible India
  62. 62. Atethiedevobhava</li></ul>Foreign Trade Policy 2006<br /><ul><li>import duty free equipment and other items including liquor
  63. 63. Service exports in Indian Rupees
  64. 64. supporting the Group service companies</li></ul>Introduction<br />SWOT<br />Govt. policies<br />Mkt overview<br />Investment<br />
  65. 65. Policy and regulatory framework<br />Corporate Taxes in comparison with other tourist destinations in Asia<br />Introduction<br />SWOT<br />Govt. policies<br />Mkt overview<br />Investment<br />
  66. 66. SWOT Analysis<br />Strengths<br /><ul><li>Natural and cultural diversity
  67. 67. Government support
  68. 68. Increase in market share</li></ul>Weaknesses<br /><ul><li>Poor support infrastructure
  69. 69. Slow implementation
  70. 70. Susceptible to political events</li></ul>Threats<br /><ul><li>Fluctuation in foreign tourist arrival.
  71. 71. Increasing competition
  72. 72. Unstable economy
  73. 73. Terrorist activities</li></ul>opportunities<br /><ul><li>Rising incomes
  74. 74. Open sky policy
  75. 75. Demand supply gap</li></ul>Introduction<br />SWOT<br />Govt. policies<br />Mkt overview<br />Investment<br />
  76. 76. Future outlook<br />n<br /><ul><li>By 2020, the Government of India expects travel and tourism to contribute Rs 8,500 billion
  77. 77. A strong manufacturing sector and a private sector.
  78. 78. The rising middle class is also becoming increasingly affluent, mobile, Internet
  79. 79. savvy and more sophisticated in terms of what is demanded in terms of tourism products and services.
  80. 80. Entry of international brands through joint ventures and tie-ups.
  81. 81. higher occupancy levels and increase in average Room Rates.
  82. 82. Economic growth in tier II and tier III cities
  83. 83. sensitivity to business cycles and adverse political and social events (including terrorist attacks), high rate of tax, high land price, bureaucracy, and poor infrastructure.</li></li></ul><li>Thank you<br />

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