Prob-Sol of Hospitality Industry

The Indian hospitality industry have emerged as one of the key drivers of
economic growth of India. The most important part of Hospitality is ‘Tourism’
due to which hospitality industry is running on a high potential.

The hospitality industry has been undergoing tremendous changes and

disruptions over the last two decades. The most common obstacle is oversupply.
Including oversupply there are some another problems are also raised due to lack
of knowledge of hospitality.

1. Lack of skilled labour:

Human resource is critical part of this industry and the question is are we
training people adequately? The most common answer will be ‘No’. The branded
Hotel supply has tripled during last two decades but quality workforce is missing
in our hospitality industry.

2. Utility cost:

Now days most of hotels are facing the problem of energy issue. Energy
cost is hurting every hotel in India. In Maharashtra energy cost has been increased
as government promised to give uninterrupted power 24*7.

3. Capacity building:

Hospitality industry mainly runs through the tourism. India lacks the well
trained taxi drivers, tour guides, travel managers and other key positions
necessary to facilitate tourism and its effects on hospitality industry.

4. Cost of land:

The rapid rise in development during past decades leads to the sky touching
land prices. The outrageous prices can now account for upwards 45% of
expenditure for hotel construction. Bidding of land in urban cities for hotel
purpose is not affordable for new hoteliers.

These are some key problems which can easily observed in hospitality
industry but along with these problems there are lot of new problems has raised
during past decades like taxation, airlift, government red tape, vying of visas etc.

Now onwards standardization can no longer be the norm. It is being critical

to personalize and tailor the services to the needs and preferences of traveler. To
create value and establish in competitive market we have to focus on niche
markets.

Major technology firms will replace most hotels, brands because they can
offer technology solutions and create markets to attract customers. The traditional
hospitality industry will evolve into niche markets or extremely luxury sector (so
they can offer to pay their staff reasonable salary). Those who cannot identify
their niche will become the money machines for technology companies, some
brands big enough survive but their business will get tougher.

Technology will be at the core of the hotel experience. This will lead to the
development of new concepts and more innovations in the industry. While
developing the technology we have also take care environment impact. Global
Warming can be consider a major risk for hospitality industry. We should not
only just go green but also we have to develop real sustainable business model.
The most underrated part of this is long lasting employee retention. Attracting
and developing and keeping the right employees into and within the hospitality
industry continues to remain a core challenge.

Mr. Awadhut Harish Mali

MBA (OSCM), B.Tech (Food Tech.)
Contact- 8600507725
E-mail id- awadhutmalidot@gmail.com