TOPIC

BUDGET HOTELS – INCREASE IN GROWTH AND

IMPORTANCE IN DELHI-NCR IN THE LAST DECADE

ACKNOWLEDGEMENT

My immense gratitude and sincere thanks to my

guide Mr. Ashish Sharma Lecturer,IHM Pusa,New
Delhi for providing an opportunity to work on this
project and for indispensable and value guidance
and assistance throughout the compilation of his
project.

I would also sincerely thank Mr. Alok Shivapuri,

Principal, IHM PUSA, New Delhi for providing us
with a platform to exhibit our talents and for his
motivating words and encouragement throughout.

My Heartfelt thanks to Mrs. Anshu Singh, Lecturer,

IHM PUSA, New Delhi and to all my teachers who
have been paramount in guiding me with material
and opinion and for their valuable time in making
this research work worthwhile.
PRASHANT SHARMA

AUTHENTICATION CERTIFICATE

STUDENT CERTIFICATE

The work embodied in this project entitled

“BUDGET HOTELS – INCREASE IN GROWTH AND
IMPORTANCE IN DELHI-NCR IN THE LAST
DECADE.

” has been carried out under the supervision of Mr.

Ashish Sharma, Lecturer Institute of Hotel
Management Catering and Nutrition,Pusa New
Delhi. The Work Is original and has been submitted
by me for the award of any other degree to this or
any other university.

Date:
Signature:

Place:
Name:
 CERTIFICATE BY PROJECT GUIDE

I hereby certify that the candidate Prashant

sharma has planned and conducted the research
entitled “Financial Management As a Core Subject
In Hotel Management Institutes” , under my
supervision and that the report submitted here
with a bona fide work done by the candidate in
New Delhi From December 2013 to April 2014.

Date:
Signature:

Place:
Name:
 INDEX

S.NO. TOPIC

1. INTRODUCTION & OBJECTIVES

2. REVIEW OF LITERATURE
3. RESEARCH METHODOLOGY
4. RESULTS & DISCUSSION
5. SUMMARY & CONCLUSION
6. RECOMMENDATION &
LIMITATIONS
7. BIBLIOGRAPHY
6. ANNEXURE
FIGURES
 Chapter 1- Introduction

The mid segment or the budget hotels have

become a major player in the hospitality industry
where until now a handful of luxury brands were
commanding monopoly. The global slowdown a few
years back has resulted in the average traveller to
shift from luxury/leisure brands and have provided
the budget hotels an opportunity to expand and
gain business. New Delhi as a city has already
seen a wide variety of budget hotels that have
existed for decades, due to this change in
consumer preferences to budget hotels now the
major brands have started introducing their brands
of budget hotels like the Ginger brand by Taj, Aloft
by Starwood and Fortune Select by ITC. To
compete with these we have a wide range of mid
segment brands like Carlson Rezidor, Country Inn
Suites, Lemon Tree and Accor.With the high influx
of these major brands into the mid segment market
traditional or the conventional 1/2/3 star hotel has
been caught off guard and finds it tough to
compete with these major players.

The objectives of my research are as follows :-

 To check the rise in number of budget hotels

over the last 10 years in Delhi-NCR.
  To understand segments and market for
budget hotels.
 To compare budget hotels on the basis of
customer satisfaction.
 To assess services and facilities offered at
budget hotels.
 To make observations and provide suggestions
and conclusions about research work done

CHAPTER 2 – REVIEW OF LITERATURE

(ADD 4 PAGES MORE)

1. Various studies have been done on the topic of

budget segment hotels in India, recently a study
done by HVS Global hospitality services, a
consultancy firm based in Mineola, New York’s
regional office based in New Delhi in collaboration
with the Ministry of Tourism, Government of India
has shown that due to the global economic
slowdown and an increasing inflation rate in India
has caused the average traveller and the business
traveller are now looking at upscale and midscale
hotels to stay in for shorter durations than stay in
a luxury city hotel.

2. The research has concluded that there will be a

requirement of 150,000 rooms in the budget hotel
segment while the particular segment is short by
70,000 to 100,000 rooms due to the lack of proper
construction or the ability to re rotate their rooms
between guests.

3. Another research on this topic was done by Mr

Solomon James, an executive columnist with the
4Hoteliers.com had very similar results as that of
the research done by HVS Global concluding that
with the emergence of Ginger and Accor in the
budget segment market they have started earning
high profits due to the unconventional outlook and
approach to this particular target market while the
traditional 1,2,3 star budget hotel will struggle if
they operate traditionally.

4. A recent article by Ms Michlelle Grant on the

website hotelnewsnow.com said that even though
India has been experiencing an economic
slowdown, the country’s hospitality industry is
facing a 9% growth in demand for its rooms. She
went on to say in the article that even though the
country has 9% demand increase from the
consumer’s side, there is no increase is supply
from the industry’s side and says that until the
year 2015 will the turnaround in the country’s
hospitality sector as that will be the time when
supply could equal the demand.

5. A different article on etn Global travel news

industry said that India’s demand for budget hotels
was outpacing the demand for high-end lodging. It
said that the country has an additional requirement
of 150,000 budget hotel rooms and a total
infrastructure investment of 600 billion rupees
according to the Federation of Indian Chambers of
Commerce.

 Perrow, Charles. (1967). A framework for the

comparative analysis of organizations.
 Schiesel, Seth. (1997, January 2). Payoff still
elusive in Internet gold rush.
 Van Maanen, John, Dabbs, James M., Jr., and
Faulkner, Robert R. (1982).

CHAPTER 3 – METHODOLOGY
3.1 Research Design – The present design is a
questionnaire based survey with budget hotels of various
localities of Delhi including Patel Nagar, Dwarka,
Paharganj and Mahipalpur.

3.2 Research Locale – The research locale was based in

New Delhi, India covering various areas like the following
–

 Patel Nagar and New Rajendra Nagar – This area was

chosen because of the amount of new Budget hotels
which have opened up recently, these new hotels
have averagely good infrastructures

 Mahipalpur – The area is in close proximity to the

International (T3) and Domestic (T1) terminals of the
Indira Gandhi International Airport which serves the
entire airline needs of the city. Due to its close
proximity to the airport there is a large infestation of
hotels of all ranges in the area.

 Paharganj – The area has always been famous for its

not so expensive hotels, the hotels still are run on
traditional mind sets and are run on traditional
techniques. This area was chosen as a part of the
research locale because of the difference in results it
provided as compared to the areas mentioned above.

 Dwarka – As in the case of Mahipalpur, Dwarka is also

in close proximity to the IGI Airport. The area has
seen the development of 4star/5star hotels with the
inauguration of the Radisson Blu, Dwarka and the ITC
Welcomtel.

1.3 Tools and Techniques – The prime tool of the

entire research was the questionnaire which was
filled up by the hotel guests.

1.4 Administration of tools :-

1.4.1 Questionnaire – The Questionnaire was filled

up with the inputs from the guests in a one on
one session. Various insights were provided by
the guests and data was easily collected with
the cooperation of the staff.

1.4.2 Report Development – A report on MS-Excel

was developed according to the data that was
collected using the questionnaire. This report
was further used in developing various statistical
tools like pie charts and bar graphs.

1.5 Data Analysis – The data from the tools used to

gain data were analysed and a report was formed
all data and statistical analysis was done on the
basis of this report.
 CHAPTER 4 – RESULTS AND DISCUSSION
(Write Interpretation and questionnaire no. 6)

Q1) Which was the last budget hotel you stayed in?

 Ginger (Taj)
 Fortune (ITC)
 Lemon Tree
 Four Points by Sheraton

Any other (Please Mention)

8

5
4
8 8
4

3 5
2 3
1

0
1 2 3 4 5

Figure 1
Q2) What compelled you to stay in a budget hotel?

 Budget Constraints
 Short stay
 Word of Mouth
 Any other (Please Mention)

12

10

8
12
6

4 7
5 5
2

0
1 2 3 4

Figure 2
Q3) What is the biggest advantage of staying in a
budget hotel?

 Value for money

 Convenient for shorter stays
 Availability of options
 Any other (Please Mention)

25

20

15
22
10

5 3 3
1

0
1 2 3 4
Q4) What is the biggest disadvantage of staying in
a budget hotel?

 Lack of quality service

 Limited facilities
 Lack of F&B options
 Any other (Please Mention)

15
16

14

12

10

8
5
6

4 6
4
2

0
1 2 3 4
Q5) Do you think the standards of budget hotels
has risen in the past decade?

 Yes
 No
 Can’t Say

25 22

20

15

10
6

5
0
0
1 2 3
Q6) Any region in Delhi-NCR which has scope for a
new budget hotel?
CHAPTER 5 – SUMMARY AND CONCLUSION
(Write 2/3 Pages)
 ANNEXURES
Sample Questionnaire – 1

NAME OF ORGANIZATION –

DATE –

FILLER’S NAME –

E mail ID –

Q1) Which was the last budget hotel you stayed in?

 Ginger (Taj)
 Fortune (ITC)
 Lemon Tree
 Four Points by Sheraton
 Any other (Please Mention)

Q2) What compelled you to stay in a budget hotel?

  Budget Constraints
 Short stay
 Word of Mouth
 Any other (Please Mention)

Q3) What is the biggest advantage of staying in a

budget hotel?

 Value for money

 Convenient for shorter stays
 Availability of options
 Any other (Please Mention)

Q4) What is the biggest disadvantage of staying in

a budget hotel?

 Lack of quality service

 Limited facilities
 Lack of F&B options
 Any other (Please Mention)

Q5) Do you think the standards of budget hotels

has risen in the past decade?

 Yes
 No
 Can’t Say
Q6) Any region in Delhi-NCR which has scope for a
new budget hotel?

BIBLIOGRAPHY

First and foremost I would like to thank all the various

establishments whom I visited for showing such
enthusiasm in contributing data for my research, and the
staff for their cooperation in answering my questions.

The data in the review of literature column has been

collected from the following links, the link correspond the
numbers in the review of literature column.