There are 12 leading hotel chains which have various branches within those chains. Each accommodate different numbers of guests and different types of guests. Before 2008 there had been massive expansion in preparation for a large upturn in the industry however when the expansions were finished the market was in withdrawal leading to the largest downturn in the lodging industry. The major economic characteristics influencing the lodging industry have to do with business meetings and conference related travel taking 40% of the business in the whole industry of 2010. The hotel industry is dominated by large branded hotel chains that react to industry factors similarly, this is one of the reasons there was a large downturn. It can be argued the industry predicts its growth in correlation with real GDP.…
Market structure within the hotel industry has a few unique characteristics. All firms in the hotel industry operate with the same parameters and restrictions such that they operate within a fixed capacity, services are perishable and non-recoverable once the opportunity has passed, and an extremely labor intensive structure. Unlike manufacturing or production industries, hotels operate a fixed number of rooms, and without new construction or expansion of an existing hotel, they cannot increase capacity to capture a fluctuating…
The UK hotel industry for the purpose of this paper will follow the most commonly set boundaries which refer to the industry being inclusive of all hotels, motels and inns with or without restaurants, conference centres and other hospitality related facilities with operations in the UK. The structure of the hotel industry can be divided into two major groups: the hotel chains and the independent small hotels (Brooks and Weatherston, 2000; and Medlik and Ingram, 2003). Hotel establishments may also be categorized into:…
Bollman Hotels has net revenue of $100,000,000 with a 15% growth expected within the first year. A workforce of 25,000 employees with plans to increase by 20% with the expansion to India and the current employee turnover is 5%. Based on this information and the stage of their business development, they will need to enter the Indian market fiercely, but with as little interruption to the tourism industry as possible. Therefore, Bollman will have to be competitive and establish a premier hotel chain that will lure international travelers seeking the exotic, heterogeneous, and lavish experience by offering elitism while on business or pleasure (Incredible India, n.d.).…
challenges and threats to Club Med, for example, as a result of airline deregulation, more and…
Our team chose the hotel industry in the United States for our economic analysis. The hotel business has existed since the earliest times, and has influenced the development of the economy since the founding of this country.…
India offers huge demand for any hotel company looking to build rooms. The domestic market is growing exponentially and the government is replying by fixing roads to make travel easier (Simona Terron).…
* Manpower Issues: The Indian hospitality industry is labour-intensive, but the availability of trained chefs, managerial staff and other support staff is low. According to a study done by Ministry of tourism the current supply of skilled trained manpower is estimared to 9% of total manpower requirement. Given this shortfall of quality manpower requirements and the industry’s high attrition rate the cost of labour is high.…
The years 2007-08 and 2008-09 were boom for the hotel industry in national capital region of Delhi. The sector began the year 2008 on a strong note. Rising tourist inflow, higher occupancy and room rates continued to benefit the hotel players. In the first four months of the year, the tourist arrivals were higher by 11.7% YoY. Existing hotel companies, new foreign players and real estate players continued with their expansion plans. Prospects were looking good, until the sector faced terror attack in Mumbai and recession hit.…
According to Intercontinental Hotel Group Website (2009), “the global hotel market has an estimated room capacity of 18 million rooms.” On this global hotel market, brand hotel has 45% of the total market. Indeed, the six major international hotel groups are estimated to 41% of the branded rooms and 18% of the total market. Promotional strategies and plans are critical successful factors for International hotel groups in this market share.…
According to the Business Expectancy Survey, 39% of hoteliers expect growth in business by end March 2011. In fact, the employment rate for the industry is expected to increase by 19% (Sing Stats, 2010). With such evident growth in the tourism industry, the hotel industry will inevitably experience progressive growth in years to come. Furthermore, The Business Times (2010) stated that “Singapore’s hotel industry is among the two best performers in…
Both the domestic and foreign arrivals have shown a rapid increase with India emerging as a vibrant and varied tourist destinations. The domestic tourism industry grew at a rate of 10.7 % in whereas foreign arrivals at 8.1% in 2010 (Indian Tourism Statistics,2010). To feed this splurge in arrivals hotels are booming across India and this most importantly has not been restricted to just metros. Even second tier cities like Bhopal, Amritsar, Surat, Ranchi etc are being looked upon as potential feasible destinations of upscale star brands. The hotel industry in India can be divided into eight segments based on the norms set by the Ministry of Tourism. They are 5-Star Deluxe, 5-Star, 4-Star, 3-Star, 2-Star, 1-Star, Heritage and Unclassified. However, the 3-star, 2-star, 1star and unclassified hotels in India are spread across the length and breadth of the country and are highly fragmented in nature, whereas, the upscale, mid market and heritage categories are highly organized. Domestic tourist arrivals are the backbone of Indian Hotel Industry as the number of Domestic Tourists is more than 100 times (Indian Tourism Statistics, 2010) as compared to Foreign Tourists. Domestic tourists are of 2 types, Leisure travelers and Business travelers. Growth in leisure travelers is driven by rising personal discretionary income, evolving lifestyle, growing number of multi earner families, weekend vacation culture, improvement in rail, air as well as road connectivity, diverse topography and rich cultural heritage. Drivers of domestic business traveling are rise in trade and commerce, increasing geographical spread of companies, growing MICE culture. Players like Lemon Tree, Ginger have identified that there is dearth of quality rooms in the mid market segment. Entry of organized players is expected to improve the quality of offerings and bridge the wide gap between midmarket and upscale category. The competition in hotels has undergone…
reader. We then look into India’s hospitality Industry and how it is growing as compared ot the…
1. Introduction 1.1 Background of Hotel Industry 1.2 Structure of Hotel Industry 1.3 Mid Market Segment 1.4 Budget Segment 1.5 Heritage Hotels 1.6 Others 2. 5 Major Players in Market 3. Profiles of some Major Players 3.1. Indian Hotels Company 3.2.ITC/Sheraton Group 3.3 The Leela Group 3.4 The EIH Ltd. (The Oberoi Group) 3.5 The Ashok Group 4. Porter’s Five Forces Model 4.1 Introduction 4.2 Bargaining power of Suppliers 4.3 Bargaining power of Customers 4.4 Threats of New Entrants 4.5 Threats of Substitutes 4.6 Competition Rivalry between Existing Players 5. SWOT Analysis 5.1 Strengths 5.2 Weaknesses 5.3 Opportunities 5.4 Threats 6. References 3 3 3 4 5 5 5 5 6 6 6 6 7 7 8 8 9 9 9 10 10 11 11 11 11 12 12…
Jefferies D.: Defining the Tourism Product and its significance in Tourism Marketing __ The Tourist Review, Vol. XVII…