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Industry Analysis: Report On Hospitality Industry
Industry Analysis: Report On Hospitality Industry
Industry Analysis: Report On Hospitality Industry
Analysis
REPORT ON HOSPITALITY INDUSTRY
Hospitality Page 1
INDUSTRY ANALYSIS
US it is around $120.01. One tenth of the world’s GDP is accounted for by the
travel industry which is worth $1.6 trillion globally. Over $194 billion a year is
generated by 91000 hotels and motels that are there in the US. and from these
52000 are hotels and rest are motels. Motel industry has also seen a sharp growth
of 4.4% over the past five years in the US. the industry is increasingly creating
employment opportunities, over 173 million get their employment from these
hotels and motels.
Hospitality Industry Statistics in India
The moderate growth is seen in India from the past few years, and the potential of
high growth is there in future. India’s rich culture and diversity attracts a large
number of tourists from all over the globe. In the World Economic Forum’s travel
and tourism competitive index, India sees a continuous growth from 65th in 2013
to 34th position in 2019. Besides increasing domestic income, consistent growth in
the middle class and rising interest in millennia’s to explore and travel to their
home country is among the reasons which are contributing to the growth of the
travel industry and making it profitable. Around 7.5% of Indian GDP is accounted
for by the hospitality and tourism industry. In India, in 2020 less than three million
foreign tourists had visited, which resulted in a dip of around 75 per cent as
compared to 2019. Foreign Tourist Arrival stood at 10.89 million in 2019 with
30.20% growth rate year on year. Around 39 million jobs are generated by the
tourism industry in India in the financial year 2020, which is expected to grow by
53 million jobs by 2028.
Hospitality Page 3
INDUSTRY ANALYSIS
PESTEL ANALYSIS
POLITICAL FACTORS:
The hotel industry in any country is largely dependent on tourism and thereby on
the government regulations of the country. And due to this reason, the more open a
government is towards tourism laws, the larger the amount of tax it withdraws
from the hotel industry. Frequent change of governments at state or central level
affect policies and regulations. In areas that are under political strife likewise in
Jammu and Kashmir and in the North Eastern States, the hotel industry performs
poorly. However, most of the world is now free for travellers and thus the hotel
industry is facing a massive boom. Many governments are still carrying out
policies that benefit their hotel industry. Some factor that has posed as a threat to
this industry like terrorist attacks in high profile hotels, take an example of TAJ
and Oberoi terror attack. This is something that world governments must pay
immediate attention to because it has substantially dropped the tourism rate.
Otherwise, open borders and a welcoming political nature helps the growth of the
hotel industry.
ECONOMIC FACTORS:
The Indian hospitality industry has emerged as one of the critical drivers of growth
among the services sector in India. Hospitality in India has significant potential
considering the rich cultural and historical heritage, variety in ecology, terrains,
and places of natural beauty spread across the country. Hospitality and Tourism are
also a potentially large employment generator besides being a significant source of
foreign exchange for the country. Any major economic change massively affects
the hotel industry. Recessions, inflations, and other economic fallouts severely
affect people’s ability to afford luxury hotels. But at the same time, they also lead
to a higher demand for budget hotels thereby increasing certain verticals of this
industry. Foreign exchange rates are another economic factor that affects the
ability of foreign travellers to employ hotel services. But since the general global
expenditure scale is on a rise more people are being able to travel and make use of
Hospitality Page 4
INDUSTRY ANALYSIS
the hotel industry as there is a rise in Disposable Income due to rise in per capita
income of the country. Developing countries must concentrate on growing their
budget hotel industry to welcome more foreign guests and expand their economy.
SOCIOCULTURAL FACTOR:
The current generation has shown a strong trend towards traveling. Festivals &
other cultural celebrations generate huge revenues for this industry e.g., Holi,
Kumbh mela etc. This is further fuelled by social media platforms where people
are able to exchange their experiences and thereby create peer pressure to travel.
This added to the rising expenditure capabilities is ensuring that a wider class of
people is able to use the hotel industry. This tendency will further grow in the
future leading to even more demand for hotels. Language is one crucial factor and
with huge English-speaking population, Indian hospitality industry has an
edge. Hotels are also becoming more accepting of different classes of people and
are ensuring they are better equipped to serve the necessities. Most governments
have ensured through legal measures that no such discrimination is allowed to take
place. Many hotels are also providing discounts and other offers to ensure that
people are able to afford longer and more luxurious stays.
TECHNOLOGICAL FACTORS:
Hotels have become more and more technology-friendly in recent times. Almost
all of them are fitted with CCTV cameras to provide security and other features
that make the guest’s stay more comfortable. WIFI services, lifts, intercoms, etc.
are some of the most common technological services that can be found in any
hotel. IT has enabled people to book their hotels without travel agents, they can
even have a virtual tour. Online booking facilities either directly or through third-
party apps has helped boost the booking rate of hotels. Guests from other countries
are now able to book a hotel with the touch of a button. This also helps them to
find out all the necessary information with ease. Reviews on blogs can make or
break a hotel’s reputation. The ability of guests to write reviews has also ensured
that hotels provide better services and no act of discrimination takes place.
Hospitality Page 5
INDUSTRY ANALYSIS
ECONOMICAL FACTORS:
Countries that have severe weather conditions have a difficult time flourishing
their hotel industry. Not only do these hotels need to have the technology that can
counter such environmental effects, but they also face a lack of demand due to the
inability of travellers to withstand such conditions. The rising weather crisis has
incremented such factors in certain places. Government initiatives like ‘Project
tiger’, ‘Go Green’ creates a positive image of the country and promotes wildlife
tourism and hotels industry. Various international hotel chains are shifting towards
more biodegradable items to counter the climate crisis like ITC Grand Chola.
Hotels are now being put under a lot of pressure by both governments and
environmental activists to ensure a minimal carbon footprint. Since this industry
uses a massive number of disposable items it can be the cause of serious
environmental concerns. Hotels that are still continuing to use environmentally
harmful materials are facing a downfall in demand.
LEGAL FACTORS:
Legal clearances required are a barrier for new entrants. Tax benefits: Sometimes
government gives tax exemptions at a certain location to develop the tourism in
that area/state which helps in the development of the industry. Lawsuits and
negative press are detrimental to any business, but particularly for companies that
rely on their reputations, such as in the hospitality industry. Common labour and
legal issues can include discrimination, unfair pay practices, workplace safety, and
retaliation.
Hospitality Page 6
INDUSTRY ANALYSIS
Marriott is the largest hotel chain in the world by the number of available rooms It
has 30 brands with 7642 properties where 2149 are operated by Marriott and 5493
are operated by others pursuant to franchise agreements containing 14,23,044
rooms in 131 countries and territories. The total number of employees in 2020 was
121000.
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INDUSTRY ANALYSIS
favorite travel company”. The goal of the company is very simple and it aims to
be the favorite travel company for the masses throughout the world.
The mission statement for the Marriott International is “To enhance the lives of
our customers by creating and enabling unsurpassed vacation and leisure
experience.” Marriott international believes that by enhancing the lives of their
customers and by providing them with premium services, they can establish
themselves as a profitable company in the long term.
Marriott International takes great pride in its employees and their behavior which
is the reflection of the core values and the culture of the company. The core values
of the company are
MARKET SHARE
Marriott have 29% of the market share, 20% Hilton, 15% Hyatt, 14% Holiday Inn
and remaining 22% share is owned by Sheraton which is now a part of Marriott
itself.
Hospitality Page 8
INDUSTRY ANALYSIS
MARRIOTT BRANDS:
The Ritz Carlton, St. Regis, Bulgari Hotels and Resorts, JW Marriott, the luxury
collection, design hotels, W hotels and edition are the luxury hotels.
Element, TownePlace suites, residence inn and homes and villas are the longer
stays.
Now, this is the graph which shows us the number of hotel rooms in 2009-2020
which are increasing continuously and in 2020, Marriot is having a good portfolio
of 142 million.
Hospitality Page 9
INDUSTRY ANALYSIS
Lemon Tree Hotels went public in early 2018, and on April 9, 2018, it was
listed on the National Stock Exchange of India.
According to the Horwath Report, Lemon Tree Hotels Limited is India's largest
hotel chain in the mid-priced hotel sector, and the third largest overall, based on
controlling stake in owned and leased rooms, as of June 30, 2017. We serve the
upper-midscale, midscale, and economy sectors in the upmarket and mid-market
categories, respectively. We provide distinct yet better service options that are also
cost-effective.
LTHL started its first hotel in May 2004 with 49 rooms and now has 8,500 rooms
in 87 hotels in 54 places in India and internationally under its numerous brands,
which include Aurika Hotels & Resorts, Lemon Tree Premier, Lemon Tree Hotels,
Red Fox Hotels, Keys Prima, Keys Select, and Keys Lite. LTHL will operate
Hospitality Page 10
INDUSTRY ANALYSIS
10,450 rooms in 106 hotels across 64 destinations in India and overseas once the
present pipeline is online.
Brands
The group offers seven brands to meet hotel needs across all levels:
1. Aurika Hotels and Resorts Upscale segment
2. Lemon Tree Premier Upper Midscale segment
3. Lemon Tree Hotels Midscale segment
4. Red Fox Hotels Economy segment
5. Keys Prima Upper Midscale segment
6. Keys Select Midscale segment
7. Keys Lite Economy segment
Hospitality Page 11
INDUSTRY ANALYSIS
• Citrus Café (all hotels) is a bright and pleasant 24 hour (most hotels) coffee shop
that serves an eclectic Indian and foreign cuisine.
• The recreation bar, Slounge (certain hotels), provides a fun and unforgettable
opportunity to relax and enjoy a lively night out.
5. Keys Prima
This premium brand, offers stylish features and excellent service. These hotels
feature a spa, salon, swimming pool and an array of cuisines.
Hospitality Page 12
INDUSTRY ANALYSIS
6. Keys Select
This popular brand offers comfort and convenience, for both business and leisure
travelers. The promise includes a warm welcome, efficient service, impeccable
hygiene, delectable food and a good night’s sleep.
7. Keys Lite
This budget brand is targeted at smart consumers who look for affordable and
stress free accommodation when they travel. These hotels offer hygienic rooms,
multiple amenities, a selection of delicious food, safety and security for the price
conscious traveler.
Management Team
LTH is run by a group of experienced hotel professionals who have worked with
leading luxury hotel brands and across industries including Consulting, FMCG,
Banking and Insurance, Telecom, Automobiles and offshore business processing.
Sustainability
Lemon Tree focuses on delivering a healthy ‘triple bottom line’ i.e. Planet, People
and Profit through its sustainability initiatives. In the near term, it plans to
concentrate on wind power, agro power (burning agricultural waste and using
recycled water for AC cooling towers), heat pumps for energy conservation, solar
photovoltaic (PV) lighting, and significant use of LED light fittings (after cost
reduction). Its medium- to long-term goals are to construct hotels that adhere to
Universal Design principles, allowing for improved accessibility for individuals
with disabilities, and to construct hotels that meet LEED Gold standards.
Lemon Tree Hotels has been ranked among the "Best Companies to Work for" in
India for seven consecutive years. The company ethos is that persons with
disabilities must be provided the same opportunities as others to realize their full
Hospitality Page 13
INDUSTRY ANALYSIS
Physical Disability
• Speech and Hearing Impaired (SHI)
• Orthopedically Handicapped (OH)
• Acid Survivors (AS)
•Going forward, also Visually Impaired (VI), Low Vision (LV)
Intellectual Disability
• Down Syndrome
• Autism
In March 2020, over 16% of our employees are Indians who are opportunity
deprived in some way. For any of the above segments , we consider those who
have studied upto Class 9 and not beyond that. Communities who do not get
education and employment opportunities easily i.e. North Eastern States, Bihar,
Jharkand, Chhattisgarh, Orissa, tribal/interior areas of any state, etc.
Lemon Tree, India's largest hotel chain, has been aiming to boost the number of
persons with disabilities and those who are economically or socially disadvantaged
in its hotels across the country. The objective is to increase this ratio significantly
over time and make ODIs a core element of our business.
Hospitality Page 14
INDUSTRY ANALYSIS
IHCL is reinventing itself by exploiting its strong brand equity to expand its
portfolio and align itself with high-growth markets. This entails re-energizing the
portfolio and promoting excellence across all brands.
Over the course of 115 years, IHCL has effectively established an unrivalled
reputation and unquestionable leadership. The sensation of service with a touch of
warmth is at the heart of it. IHCL's solid foundation, anchored in Indian hospitality
and communicated through authentic experiences, has made us the largest
hospitality-focused firm in South Asia.
Hospitality Page 15
INDUSTRY ANALYSIS
HOTELS
Taj hotels is a chain of luxury hotels and a subsidiary of Indian Hotels Company
Limited, IHCL headquartered in Nariman Point in Mumbai established by the
founder of the TATA group Jamsetji Nusserwanji Tata in 1903. It is a part of
TATA group, one of the India’s largest multinational conglomerates. Currently
more than 100 hotels and resorts is been operated by the company, out of which 93
hotels and resorts are situated in India across 55 locations and 16 in other countries
including UAE, UK, USA, South Africa, Nepal, Bhutan, Sri lanka, Maldives,
Malaysia and Zambia.
Mission- “To improve the quality of life of the communities we serve globally
through long term stakeholder value creation based on Leadership with Trust”
Vision- “25% of the world’s population will experience the Tata commitment to
improving the quality of life of customers and communities. As a result, Tata will
be amongst the 25 most admired corporate and employer brands globally, with a
market capitalization comparable to the 25 most valuable companies in the world.”
Hospitality Page 16
INDUSTRY ANALYSIS
Taj has completed 117 years of hospitality this year. During this journey they have
been honored numerous awards, few major awards areNATIONAL CSR
LEADERSHIP CONGRESS AND AWARDS {IHCL won the National Award for
Best Environment Sustainability 2018.} GALLUP GREAT WORKPLACE
AWARD {An eighth-time winner, IHCL is the only Indian hospitality company on
the list.} TELEGRAPH UK TRAVEL AWARD {Taj ranked #2 in the list of the
‘World’s Best Hotel Groups’.} MICHELIN GUIDE {Quilon, Taj’s award-winning
coastal Indian cuisine restaurant in London, retained its Michelin Star for the 12th
successive year.} CFI.co CORPORATE GOVERNANCE AWARDS {IHCL’s
iconic brand Taj was awarded the Best Hospitality Corporate Governance Award
in India} FREDDIE AWARDS {Taj InnerCircle was bestowed with the special
210 Award in the hotel category for the Middle East/Asia/Oceania region for
Strongest Performing Program off the Radar of Voters.} #2in the list of the
‘World’s Best Hotel Groups’ #1Ranking accorded to The Taj Mahal Palace,
Mumbai for guest satisfaction among global peers by TrustYou Eighth time
Winner of prestigious GALLUP Great Workplace Award 2019. ‘World’s Best
Hotel Groups’ Taj group of hotels is known as the symbol of warmth hospitality
and has built its image in such a way that it’s ruling over the minds and the hearts
of the people. With the changing time they have also launched upgradation
programs several times in various properties both in India and overseas, and
successfully completed it. From introducing banquets or restaurants to an existing
property, renovation of guest’s rooms and restaurants (introducing facilities to de-
stress and entertainment) to introducing new properties to various cities, Taj never
let people down to provide the best of luxury, richness and tradition. The
reputation created by the company among its customers and the standards of
service established has made it the biggest hotel chain in the country with the most
competitive quality of service and worth delivery into the corporate world for high
quality customers. This is what strengthens the brand. In majority of the places it is
present; it governs a supreme position. It has become a symbol of luxury and world
class service because of its personalized service to the guest’s while authentically
inheriting the heritage and traditions of our country, India.
Hospitality Page 17
INDUSTRY ANALYSIS
• Deliberately managed and limit the use of the name “TAJ” in naming new
properties and other services. Taj brand is reserved for the luxury segment only
which made it easy for the customers to distinguish.
Taj group of hotels standardize the brands to make them easy to identify. They are
been classified as following-
Hospitality Page 18
INDUSTRY ANALYSIS
They maintain the fine quality of service, high level of standards, culture and
glamour, located in the major cities of India (Mumbai, Delhi, Bangalore, and
Chennai) with exquisitely appointed guest rooms and modern facilities. These
hotels provide world class sophisticated and impeccable service and hospitality.
The clientele focused here are business voyages, celebrities, Politicians, Home to
the Royalty, heads of states, tycoons, captains of industry, corporate nomads, star
celebrities, kings & queens and Hollywood royalty, Maharajahs and rockstars etc.
Warmth and spirit of India is been retained by the Taj luxury hotels.
Taj President, Taj Residency, Taj Connemara, Taj Blue Diamond Vivanta Taj
Gateway THE BUSINESS HOTELS They are mainly situated in India’s
commercial zoned cities and towns suitable for business travellers. These
international style hotels provide modern facilities with attractive room rates. Their
main purpose is to meet the growing needs of the business travellers which are
speedily expanding and industrializing. Here guest stays generally for shorter
duration and their basic requirements are like ample power outlets, easy check-in,
reliable internet, business center, transportation information, bar, nutritious meal,
peace and quiet, comfortable bed etc. Taj is still working on its new projects on
expanding business hotels in India.
Taj leisure hotels consists of beach resorts, garden retreats, genuine places, hotel
located near historical monument, pilgrim centre and wildlife sanctuaries like
jungle safari etc where people come for seeking pleasure, to take a break or to find
some peace. Even Taj hotels itself are superlative 18th century monuments consist
of domes, carved walls and pillars, terrace and royal rajput style built archways.
These hotels and resorts focuses on lavish, uniquely designed, spacious guest
rooms with exquisite decor and all the modern facilities and luxury. Plenty of sun,
surfs and sand attracts the leisure travellers to the Taj r beaches resorts.
GINGER HOTELS
Hospitality Page 19
INDUSTRY ANALYSIS
Ginger hotels by Taj is being designed majorly for the people of economic income
group. In total there are 42 Ginger hotels in India. The average roomrate here is
approximately Rs. 4000 per night.
B2B
It is a joint venture between SATS Ltd. And IHCL from past 42 years and
India’s number one airline catering company. In total they have 6 units which
include airline and non-airline services like In-flight catering, airline lounge
management, laundry, airline bonds, Institutional catering, outdoor catering and
corporate gifting etc.
JIVA
Taj has spa service also available in 43 hotels. The name of the spa is “JIVA”
which means living being imbued with a life force which is essential for
vitality, strength and happiness. The staff welcomes the guest in the place of
luxury and relaxation with bowed head and their hands fold and says
“Namaste” and provides variety of therapies according to the guest’s need.
Some of the therapies are ajinv, soma, soundarya.
Taj InnerCircle is an award-winning signature program that ensures the little time
guests have for themselves is spent in utmost serenity and great care. It has 4
membership tiers-
Hospitality Page 20
INDUSTRY ANALYSIS
Corporate Products
E-Gift Card
Hospitality Page 21
INDUSTRY ANALYSIS
Taj has introduced E-gift cards which is a perfect gift for birthday, engagement,
wedding or festive celebration. Nothing speaks like a thoughtful gift for such
special occasions like thanking someone and telling them how much important
they are. This E-gift card can bring precious memories and experience to whom it
is gifted to. Delivered immediately and redeemable instantly across Taj,Vivanta
and Seleqtions hotels in India. EID E-GIFT CARD, ENGAGEMENT E-GIFT
CARD, WEDDING E-GIFT CARD, DIWALI, EASTER, MOTHER”S DAY,
CHRISTMAS ETC.
Introduction to TAJNESS
An experience seeking inspiration from Indain heritage, Taj hotels and palaces
unveiled Tajness, a living concept aiming to provide a memorable experience of
India's traditions, combined with influences from local cultures.Tajness have this
impact on multiple touch points and the first hotel where they implement it was Taj
Mahal Palace, Mumbai. According to Chinmai Sharma, the chief revenue officer
of Taj hotels – “Tajness help the hotel to redefine the brand standards and also
impact anything that a guest can see, smell, feel, taste and touch at Taj hotels. It
include, simplifying the check-in check-out experience, converting lobbies from
impersonal space to more person space – akin to cozy living rooms. A typical guest
experience also include a set of rituals as well as a new attire for the associates,
fragrance and music in public spaces etc. "
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INDUSTRY ANALYSIS
Hospitality Page 23
INDUSTRY ANALYSIS
COMPETITORS OF IHCL
Hospitality Page 24