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Hospitality Industry

Presentation
By Team No. 6
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 HOSPITALITY

• In loose sense hospitality industry referred

to only hotels and restaurants.

• In true sense, it is “reception and

entertainment of guests, visitors or
strangers with liberality and goodwill”

• Derived from “HOSPICE” – the term for a

medieval house of rest for travelers and
pilgrims.
 HOSPITALITY

• Hospitality industry also includes

institutions that offer food, shelter or both
when people are away from their home.

• It is one of the oldest profession practiced

by the humans and they involve making a
guest, client, member and resident.
 HOSPITALITY
• Today, the hospitality industry is the
world’s fastest-growing, job-creating
profession, employing one in ten people
worldwide.

• It is estimated that the industry will require

30,000-35,000 trained people at
management and supervisory level year
on year until 2010.
 STRUCTURE
• Hotels - range from small, independent
country hotels to luxury five-star hotels.

• Restaurants - this sub sector includes

take-away food outlets, fine dining, ethnic
restaurants and coffee bars.

• Pubs, club and bars - the licensed retail

sector is worth £20 billion and it currently
employs over 900,000 people in total.
 STRUCTURE
• Contract catering - any catering
business unit that is separately
operated and managed.

• Hospitality services - incorporates

all those working in establishments
where hospitality is not the main
function and is not contracted out.
 CULTURE
• The hospitality sector is not for those
seeking a nine to five, Monday to Friday
work pattern.

• It may be appropriate for those who want

to work in a customer-focused business
environment where there are a wide range
of specialist opportunities and, for those
who are flexible, there is the opportunity
for rapid career progression.
 MAJOR PLAYERS

• Ashok Group
• ITC Welcome Group
• Elite Hotels
• Oberoi Group of Hotels
• The Taj Group
SWOT ANALYSIS
 STRENGHTS
• India’s Rich Culture Heritage:

With a historical backdrop of

5,000 years, India is one big package of
culture and legend that never fails to
captivate the imagination of the visitor.
 STRENGHTS
• Demand–supply gap:

Indian hotel industry is currently

facing a mismatch between the
demand and supply of rooms and
occupancy levels. Though new
capacities are expected to come in
the next five years demand will
outpace supply in the short to medium
term.
 STRENGHTS
• Government support:

Till a few years ago, the Indian

government had a total negligence
towards promotion of tourism. Now the
government seems to have realized the
importance of tourism and is willing to
spend towards the development of the
industry.
The ‘Incredible India’ campaign is
a product of this realization.
 WEAKNESSES
• Poor support infrastructure:

India is currently spending a

little amount compared with its needs,
on infrastructure. China is spending
seven times as much as India.
However, over the past 2-3 years, the
government has realized the
importance of infrastructure and has
focused on improving it.
 OPPORTUNITIES
• Open sky benefits:

The opening up of the aviation

industry in India brings exciting
opportunities for the hotel industry.
Increased competition among airline
companies will further lead to the
development of new and improved
services. Also the open skies policy has
benefited both international and domestic
travel.
 OPPORTUNITIES
• Rising Income:

While there has been much talk

about record number of foreign tourist
arrivals, very little has actually been said
or done about domestic tourism. Per
capita income grew by an impressive
7.1%, while Gross Domestic Savings
touched an all time high of 28%. The
present-day consumption boom in India
has been influenced by higher disposable
income rather than lower savings.
 THREATS
• Event risk:

Dependency on foreign tourism can be a

double-edged sword as travel decisions
are based on global patterns and events
that happen elsewhere can have serious
impact the performance. Events like 9/11,
SARS outbreak and Afghanistan and Iraq
wars have severely impacted the tourism
industry in the past and the threat remains.
 THREATS
• Increasing competition:

Global hospitality majors like the

Four Seasons, Shangri-La and Aman
Resorts are all making their entry into the
Indian market. The Hilton Group is
deciding on a comeback and has tied up
with the Oberoi Group. Two other groups -
the Carlson Group and the Marriott chain
are furiously hunting for new hotels in
India's top cities.
 REGULATIONS
• The projects have to be approved by
Department of Tourism, New Delhi.

• They have to fulfill the required conditions

prescribed by Tourism ministry.
 GLOBAL OUTLOOK
Since safe shelter is a basic need of
the individual, which in civilized terms
known as accommodation and in the
concept of the tourism and travel as
hospitality. In modern way of life hotels are
the major source of accommodation, so it
has become modern concept of mass
tourism and major players have influence
of western world.