Market Share Of The Major Hotels In India

food market consider Of The Major Hotels In IndiaThe cordial reception industriousness of india is expected to grow at a cast of 8.8% from 2007-16, placing India the second-fastest growing touristry securities perseverance in the world. pass around like massive investment in hotel infrastructure and open riff policies which atomic number 18 made by the g completely overnment ar all aimed at propelling result in the cordial reception welkin.Hotel and hospitality industries be the out surfacegest interlocking generators in the country. Towards helping its growth, the administration should confer infrastructure status to the hotel industries, intimately(prenominal)(prenominal) taxation issues besides need to be rationalised. Further permits and licenses which atomic number 18 involve for the hotel operations needs to be rationalised by reach outing a individual(a) window mechanism.The hotel industry is divided into 4 categoriesLarge hotelsMedium hotels remed iate hotelsSmall hotels commercialise SHARE OF THE MAJOR HOTELS IN INDIATIE -UPS OF Indian HOTELS WITH INTERNATIONAL HOTELSMost players, exempting of IHCL and EIH, pretend entered into grocery storeplaceing Tie-up with major globular hotel chains. Thus we drive home Hyatt Regency which ar tied up with AHL, Leela tied up with Kempinski and ITCH having a franchisee agreement with ITT Sheraton.For the Indian hotel owners and world(prenominal)istic hotel chains the profit is mutual, Tie-up with an world-wide hotel chain pass on put the hotel on the global map. Associations with international blemish play a major role in image building and attracting foreign holidaymakers. However value of the international brand will get diluted if a foreign entity enters an agreement with several(prenominal) Indian companies.MARKET SHARE OF TARIFF PLANS BY DIFFERENT HOTELS lavishness hotels operate under single tariff structure whereby the foreign tourists argon supercharged in dollar te rms whereas the domestic leaf node is charged the equivalent amount in rupees. The luxury hotels earn round two-thirds of their tax income from foreign tourists. Leisure give-up the ghostlers constitute approximately 76.5% of the total tourist str and so ons whereas teleph mavin circuit travellers constitute 21% of the total arrivals. The remainder is accounted by students.Hotels benefit from rupee depreciation as over 60% of revenues in the luxury hotel element is in foreign currencies. Thus any depreciation of the rupee goes promptly to the bottom line (FOREX income is as strong as fully tax exempt), as no(prenominal) of the costs argon directly linked to the exchange rate. The hotel debt environment is overly improving. While many countries atomic number 18 hampered by a still deadening preservation, those with a low interest rate environment with relatively stable-banking conditions will provide opportunities for hotel investors to raise capital. For hotel lend ers, from a risk/return basis, there has never been a better clipping to provide bargon-ass capital to this industry in India.CONTRIBUTION TOWARDS ECONOMYThe hotel and restaurant industry of India was Rs. 658.89 billion during 2007-08. s lay off Tourism Industry of India was valued at US$35.73 billion in 2007, contributing 3.56% to Indias GDP. The number of foreign tourists arriving to India reached 5.08 million comp bum with 4.45 million in the course 2006, showing growth of 14.16%. Indias sh ar in international tourist arrivals at global level gradually improved from 0.46% in 2004 to 0.49% in 2005 and elevate to 0.52% in 2006 and 0.56% in 2007.The number of domestic tourists in India was 526.57 million comp atomic number 18d with 461.76 jillion in 2006, showing growth of 14.03%. there be 1,437 hotels approved and catego arise by the Ministry of Tourism, Government of India, with a total capacity of 84,327 hotel way of lifes as on December 31, 2007. Indian hotel industr y is currently adding about 60,000 attribute rooms, which are expected to be ready by 2012.INTERNATIONAL touring car CONTRIBUTION IN INDIAThe foreign tourist arrivals in India change magnituded at CAGR of 5.5per cent from 2.29 Million in 1996 to 3.92 million in 2005. Signifi movetly, the bulk of international arrivals into India, both in 2004 and 2005, have been employment travellers. Main reason for this step-up has been following fundamental factorsIndias strong GDP growth.Opening of sectors of the economy to clandestine sector/ foreign investment.Strengthening of ties with the developed world.Reforms in aviation sector which led to better connectivity with many countries (such as ASEAN) and created extra capacity on existing routes (for e.g. USA, Middle East).Also, introduction of low cost airlines also contributed to the withdraw. The increase in International flights, seat capacity and frequency into the country and the finale to allow private airlines like Jet Airways and Air Sahara to fly oversea has had a positive impact on tourist and trading arrivals into India, by way of providing additional seats.3.1.2 NATURE OF COMPETITIONIt is the most combative foodstuff . railway line travelers drive over 70 per cent of the Indian hospitality employment and the race to accommodate them, and do it well, is hotting up. But with current study outstripping supply, hotels in the big cities have managed to up their judge to match those in genus Paris and London.The major competition comes from the other companies in the same sector .so the rivals are to be found and make their primary and secondary strategies which makes the alliance competitive in the merchandise. There are also pricing strategies which play few roles in competitive market and should think of the non pricing strategies which can be much competitive in the market.The pricing of a hotel like this virtuoso is do on system called rate of the day based on demand. As the rooms get take n the price goes up and on a busy day a room like this unrivalled in Mumbai or Delhi will cost as much as you would have to pay for one in Paris or London.Adding more facilities to the five star rated hotels like Wi-Fi, spas, gyms, online booking etc. to maintain their guest loyalties which grant competitive advan checke to its telephoner.To become competitive in the market the flexible pricing is the key. rough suggested steps to realign rank and segments to the changed market place gain control of business and increase profitability areCreate an online booking presence.Ensure that the hotels online booking engine is part of the hotels clear site, and controlled by the hotel, not by a third party or GDS-based system. Ensure that the online booking engine is the surmount and accomplishes the hotels goals.Ensure that the online booking engine is easy to use from a guests perspective.Expertly create and maintain an online scattering and maximization strategy to ensure the ho tels visibility.Promote and ensure that the lowest promulgated rates are on the hotels own web site, to promote customer loyalty, as done with the airlines. ensnare a new market sectionalization model, for greater control of the business. Eliminate RACK RATE and replace with al roofy RATE, defined as dash, Promotional, Consortia, and any other customer not interact with any discount.A simplified sample version isSell siteCorporate Rate gathering RateWeekend RateEstablish the Sell Rate based on anticipated demand patterns, subsequently the core business and group blocks are factored in. The rate oscillates on a daily basis.Set rates in all market segments inwardly the range of your competitive several(predicate)iate to establish positioning.TAJ GROUP OF HOTELSA Tata fraternity shall fully strive for the establishment and swear of a competitive, open market economy in India and abroad, and shall cooperate in efforts to promote the progressive and overbold liberalisation of trade and investment by a country. Specifically, a Tata guild shall not engage in activities that generate or support the organisation of monopolies, dominant market positions, cartels and similar unsportsmanlike trade practices.A Tata company shall market its products and service on its own merits and shall not make unfair and misleading statements about competitors products and services. Any collection of competitive information shall be made only in the normal course of business and shall be obtained only through legally permitted sources and performer.Direct CompetitorsOberoi HotelsOriental HotelsITC WelcomgroupHotel Leela etc. potency Target market The upper class of the society is targeted. i.e. the richer stack in the society. Their fares or tariffs are broad(prenominal) as the luxuries provided by them are also standard and 5-star. Thus, this is in context to the Indian branches of Taj Hotels.OBEROI GROUP OF HOTELS (EAST INDIA HOTELS LTD.)Team course is out with a n investment idea that could help the portfolio in the current market conditions. The recent correction in the market has been sharp as the bench mark index or the Sensex has given up more than 7 percent from a recent steep of 21,108.OBEROI PROPERTIES RECOGNITION INTERNATIONALLYThe Oberoi Vanyavilas, RanthamboreRated the 2nd outflank fix in AsiaRated the 2nd surmount hotel in the WorldThe Oberoi Udaivilas, UdaipurRated the outperform hotel in AsiaRated 4th high hat hotel in the WorldThe Oberoi Amarvilas. AgraRated the 2nd scoop out hotel in AsiaRated the 8th outflank hotel in the WorldThe Oberoi Rajvilas, JaipurRated the 5th best hotel in AsiaRated amongst the top 25 hotels in the WorldWildflower Hall, Shimla in the HimalayasRated the 5th best resort in AsiaThe Oberoi Rajvilas, JaipurRated No.1 hotel in AsiaRated 2nd best hotel in the WorldThe Oberoi Udaivilas, UdaipurRated No. 2 hotel in AsiaRated 4th best hotel in the WorldThe Oberoi Amarvilas. AgraRated No. 3 hotel in As iaRated 6th best hotel in the World3.1.3 SWOT compendiumSTRENGTHS1. Natural and cultural sort India has a rich cultural heritage. The unity in diversity tag attracts most tourists. The coastlines, sunny beaches, backwaters of Kerala, snow capped Himalayas and the quiescent lakes are incredible.2. Demand-supply opening night Indian hotel industry is facing a mismatch surrounded by the demand and supply of rooms leading to higher room rates and occupation levels. With the privilege of hosting Commonwealth Games 2010 there is more demand of rooms in five star hotels. This has led to the rapid expansion of the sector.3. Government support The government has realized the importance of touristry and has proposed a budget of Rs. 540 crore for the knowledge of the industry. The priority is organism given to the development of the infrastructure and of new tourist destinations and circuits. The Department of Tourism (DOT) has already started the Incredible India campaign for the promo tion of touristry in India.4. Increase in the market share Indias share in international tourism and hospitality market is expected to increase over the long-term. New budget and star hotels are being established. Moreover, foreign hospitality players are heading towards Indian markets.WEAKNESSES1.Poor support infrastructure though the government is taking necessary steps, many more things need to be done to improve the infrastructure. In 2003, the total expenditure made in this learn was US $150 billion in China compared to US$ 21 billion in India.2. Slow implementation The lack of adequate actualisation for the tourism industry has been hampering its growth prospects. Whatever steps are being taken by the government are implemented at a slower pace.3. Susceptible to political events The internal security scenario and social ferment also hamper the foreign tourist arrival rates.OPPORTUNITIES1.Rising income Owing to the rise in income levels, Indians have more spare notes to sp end, which is expected to put forrard void tourism.2. Open sky benefits With the open sky policy, the travel and tourism industry has seen an increase in business. Increased airline activity has affected demand and has helped improve the infrastructure. It has benefited both international and domestic travels.THREATS1. Fluctuations in international tourist arrivals The total dependency on foreign tourists can be risky, as there are wide fluctuations in international tourism. domestic tourism needs to be given equal importance and measures should be taken to promote it.2. Increasing competition Several international big league like the Four Seasons, Shangri-La and Aman Resorts are entering the Indian markets. devil other groups the Carlson Group and the Marriott chain are also looking forward to join this race. This will increase the competition for the existing Indian hotel majors.CHALLENGES FOR cordial reception INDUSTRY1. Shortage of skilled employees One of the greatest challenges plaguing the hospitality industry is the unavailability of quality work force in different skill levels. The hospitality industry has failed to retain good professionals.2. Retaining quality workforce Retention of the workforce through training and development in the hotel industry is a enigma and attrition levels are too high. One of the reasons for this is unattractive wage packages. Though there is boom in the service sector, most of the hotel management graduates are joining other sectors like retail and aviation.3. Shortage of rooms The hotel industry is facing heavy famine of rooms. It is estimated that the current requirement is of 1,50,000 rooms. Though the new investment plan would add 53,000 rooms by 2011, the shortage will still persist.4. Intense competition and image of India The industry is witnessing heightened competition with the arrival of new players, new products and new systems. The competition from neighboring countries and negative perceptions abo ut Indian tourism product constrains the growth of tourism. The image of India as a country overrun by poverty, political instability, safety concerns and diseases also harms the tourism industry.5. Customer expectations As India is emerging as a destination on the global travel map, expectations of customers are rising. The companies have to focus on customer loyalty and repeat purchases.6. Manual back-end Though most reputed chains have IT enabled systems for property management, reservations, etc., almost all the data which actually make the company work are filled in manual log books or are simply not tracked.7. Human resource development Some of the services required in the tourism and hotel industries are highly personalized, and no amount of automation can substitute for personal service providers. India is center more on white collar jobs than blue collar jobs. The shortage of blue collar employees will pose several(a) threats to the industry.SWOT ANALYSIS OF MAJOR HOTELST AJ GROUP OF HOTELSStrengthsThe group has enormous power and strengths, which makes it the best and competitive, some of them areIt consists of 75 properties in 40 postures across India and 18 international hotels.Its stylish variety of hotels like Taj exotica, Taj safari, The gateway hotels, peppiness hotels, Jivas spa etc.Its effective and efficient management techniques and staff.Its brand name.The presence of Taj Hotels, Resorts and Palaces in various countries like United Kingdom, France, Germany, Italy, Dubai, Singapore, Australia, Japan, Russia and the United States of America.Securing management contracts at Palm Island, Jumeirah in Dubai, Saraya Islands in Ras Al Khaimah, Aldar Group in Abu Dhabi, UAE Langkawi in Malaysia and Thimpu in Bhutan.The various initiatives taken like rollout of Customer Feedback System, Tata Business Excellence Model, IT initiatives, Ginger hotels etc.WeaknessTaj hotels being such a big brand, has a lot of reinforcements but every big company fa ces some odds and so does Taj. Some of its weaknessIts hard to maintain such a considerable chain of subsidiaries and there are more chances of mishaps in management.Its huge competitors like Oberoi, Leela, Oriental, ITC etc are also providing same facilities and thus it becomes a weakness for Taj hotels.Its very costly for the Indians to afford the tariffs and service charges set by Taj hotels. Thus, they innocent a major part of their market share.They need a lot of investment.As Taj hotels is a popular group, it is always in the eyes of the terrorists, as taj has already faced such an incident. Therefore, it proves to be a weakness some times, to be so popular.OpportunitiesThe Group is poised strategically to take advantage of the following situationIn the backdrop of a healthy economy having its positive fallouts on the Tourism Sector leading to rapid growth in markets in India, South Asia and key gateway cities in source-market destinations.speedy expansion in both Internat ional and house servant destinations, with top-of-the-line Luxury, Leisure and Business properties.Meeting growing demand in the budget and mid-market segments.Extending the product portfolio into connect offerings viz. luxury residences, wildlife lodges and health spas.ThreatsThe threats identified by the Group are related mainly to the markets in which the Group operates and general factors related to the tourism industry. Significant among these areCheaper international airfares, increasing affordability of travel to International destinations, oddly South East Asia, Europe and Australia.Growing presence of international hospitality chains competing in the Luxury and Business segments, to meet excess demand situation.Appreciating Indian Rupee vis--vis the US Dollar, resulting in lower realisation on foreign exchange earnings.Slowdown of international demand resulting in drop-off of revenues.OBEROI GROUP OF HOTELSStrengthsCost advantageAsset leverageEffective confabulationHigh RDInnovationOnline growthLoyal customersMarket share leadersStrong management team upStrong brand equityWeaknesses tough communicationDiseconomies to scaleOver leveraged financial position low gear RDLow market shareNo online presencenot innovativeNot diversifiedPoor supply chainWeak management teamWeak real estateOpportunitiesAcquisitionsAsset leverageFinancial markets (raise money through debt, etc)Emerging markets and expansion abroadInnovationOnlineProduct and services expansionTakeoversThreatsCompetitionCheaper technologyEconomic slowdownExternal changes (government, politics, taxes, etc) turn rate fluctuationsLower cost competitors or importsMaturing categories, products, or services harm warsITDCSTRENGTHSOne of the oldest five star hotels in India preferred by a vast number of tourists as well as localites.Amenities provided are state of the art and of very high quality.Staff is known to be very hospitable and supportive of their guests.Has the largest conference hall in In dia and hence its the most preferred conference hall for most of the important conferences held in India.Provides Privilege Card for their frequent guests which lure more number of people to become their regular customers.It has New Delhis most magnificent Banquet venue.The architecture is still considered as a benchmark to most of the buildings that are created today.WEAKNESSESPrices are higher than other five star hotels in New Delhi.There have not been many changes in the building since the time that it has been set up.According to the guests the walls are dirty and the hallways are not maintained well which makes many of them think twice about coming back there.It is sooner far away (15kms) from the international airport because of which many guest select for hotels closer for their own convenience.They seem to rely on their past honour and are not taking any new initiatives to satisfy their customers.3.2 DEMOGRAPHICS OF BUYERS- MARKET SEGMENTATIONCLASSIFICATION OF HOTELSCla ssification is based on many criteria and classifying hotels into different types is not an easy task. The hotel industry is so vast that many hotels do not fit into single well defined category. Industry can be classified in various ways, based on location, surface of property etc. The main hotel chains of India are The Taj Group of Hotels, the Oberoi Group and ITC Welcome group.Some of the international chains are Hyatt, Marriott, and Le raising etc. these properties have also come up in India now.1. found on LocationCity center Generally located in the heart of city within a short distance from business centre, shopping arcade. pass judgment are normally high due to their location advantages. They have high traffic on weekdays and the occupancy is generally high.Motels They are located primarily on highways, they provide lodging to highway travellers and also provide ample parking space. The length of stay is commonly overnight.suburban hotels They are located in suburban ar eas, it generally have high traffic on weekend. It is ideal for budget travellers. In this type of hotel rates are moderately low.Airport hotels These hotels are set up progress by the airport. They have transit guest who stay over between flights.Resort hotels They are also termed as health resort or beach hill resort and so depending on their position and location. They leave a person who wants to relax, enjoy themselves at hill station. Most resort work to full capacity during peak season. Sales and revenue fluctuate from season to season.Floating hotels As name implies these hotels are established on luxury liners or ship. It is located on river, sea or big lakes. In cruise ships, rooms are generally small and all furniture is fixed down. It has long stay guest.Boatels A house gravy holder hotels is referred as boatels. The SHIKARAS of Kashmir and KETTUVALLAM of Kerala are houseboats in India which offers luxurious accommodation to travelers.Rotels These novel variants are ho tel on wheel. Our very own palace on wheels and Deccan Odessey are trains providing a luxurious hotel melodic phrase. Their interior is done like hotel room. They are normally utilize by small group of travelers.2. found on Size of berthSmall hotel hotel with 100 rooms and less may be termed as small hotels.Medium sized hotel hotel which has 100-300 rooms is known as strong point sized hotel.Large hotels hotel which have more than 300 rooms are termed as large hotels.Mega hotels are those hotels with more than 1000 rooms.Chain hotels these are the groups that have hotels in much number of locations in India and international venues.3. Based on the Level of ServiceEconomy/ Budget hotels These hotels meet the staple fiber need of the guest by providing comfortable and clean room for a comfortable stay.Mid market hotels It is suite hotel that offers small living room with appropriate furniture and small bed room with king sized bed.Luxury hotels These offer world class service pr oviding restaurant and lounges, concierge service, opposition rooms, dining facilities. Bath linen is provided to the guest and is replaced accordingly. These guest rooms contains furnishing, artwork etc. prime market for these hotels are celebrities, business executives and high rank political figures. Example Hyatt Regency, New Delhi.4. Based on the Length of bridleTransient Hotel These are the hotel where guest stays for a day or even less, they are usually five star hotels. The occupancy rate is usually very high. These hotels are situated near airport.Residential hotels These are the hotel where guest can stay for a minimum period of one month and up to a year. The rent can be paid on monthly or quarterly basis. They provide sitting room, bed room and kitchenette.Semi residential hotels These hotels in incorporated features of both transient and residential hotel.5. Based on ThemeHeritage hotel In this hotel a guest is graciously welcomed, offered room that have their own h istory, serve traditional cuisine and are entertained by folk artist. These hotels put their best efforts to give the glimpse of their region.Example Jai Mahal palace in Jaipur.Ecotels these are environment prosperous hotels these hotel use eco friendly items in the room. Example Orchid Mumbai is Asia first and most popular five star Ecotels.Boutique hotels This hotel provides exceptional accommodation, furniture in a themed and stylish manner and caters to corporate travelers. Example In India the park Bangalore is a boutique hotel.Spas is a resort which provide therapeutic lavatory and massage along with other features of luxury hotels in India Ananda spa in Himalaya are the most popular Spa.6. Based on Target MarketCommercial hotel They are situated in the heart of the city in busy commercial areas so as to get good and high business. They cater mostly businessmen.Convention hotels These hotels have large convention complicated and cater to people attending a convention, confe rence.Example Le meridien, Cochin, is a hotel with largest convention center in south India.Resort hotels These leisure hotels are mainly for vacationers who want to relax and enjoy with their family. The occupancy varies as per season. The atmosphere is more relaxed. These are spread out in vast areas so many resorts have solar powered carts for the transport of guest.Suite hotels These hotel offer rooms that may include compact kitchenette. They cater to people who are relocating act as like lawyers, executives who are away from home for a long business stay.Casino hotels Hotel with predominantly gambling facilities comes under this category, they have guest room and food and operation too. These hotels tend to cater leisure and vacation travelers. Gambling activities at some casino hotels operate 24 hours a day and 365 days.Todays ways of booking make it difficult to identify the purpose of the trip. Segment by default the individual bookings for short midweek stays as business. Identify as leisure the booking of a double room over the week-end.As the new technology was developing, corporate travel departments, as well as the independent consumer, turned to travel agents to get the best discounts. As the GDS technology influenced booking and buying practices, additional segments were created, resulting in the following market segment modelRack judge Without any affiliations to warrant discounts, the Rack Rated customer paid the published rate, which was the highest rate.Consortia pass judgment This was the same customer who booked through a travel agent using the GDS and received a 5%-10% discount off Rack Rates.Corporate Rates Having met the hotels qualifying criteria, such as volume, businesses were guaranteed discounted rates.Group Rates With a block of rooms, rates varied based on time of year and the nature of the group.Weekend Rates Individual leisure travelers, usually within a drive distance to the hotel. Promotional rates These rates were origin ally used sparingly and used as a means to stimulate business by using discounted rates to anyone, regardless of affiliation. Domestic Consumer is the largest segment of the hotels motels industry in India accounting for 52.9% of the industrys total value. The domestic business segment accounts for a further 24.4% of the industry.