Hospitality industry refers to the process of receiving and entertaining a guest with goodwill. The industry offers comfort to visitors who are in a strange place or unfriendly place and are looking for help. If said in business context it is referred to as the activity of hotels, restaurants, catering, inn, resorts or clubs who make a vocation of treating tourists.
Hospitality Industry in India
With unique and great efforts of the Indian Government and all other stakeholders including hotel owners, tour and travel operators, resort managers, employees and staff members who work in this sector, Indian hospitality has gained a level of acceptance all over the world.
Services provided by a hospitality industry in India is not limited to only hotels, providing food service, casinos, and tourism but they also offer services like providing Service apartments in Delhi and various other places, offering various vacation packages depending on the customers affordability, providing airfares along with accommodation for few nights, offering villas that compromises of one, two or three large bedrooms etc.
The other most important reason for the popularity of hospitality industry in India is, the country being a cheap destination for leisure tourism. With limitless tourism opportunity and untapped business prospects Indian tourism is seeing a good growth in near future. The presence of great number of qualified human resources and geographical resources give great prospects to the hospitality industry. The number of tourists coming to India is growing year after year.
Trends that will Shape the Future of Hospitality Sector
Low Cost Carriers: Travelers who mostly travel from one place to other are more price sensitive to airfares. Often a low airfare can attract travelers even if hotel prices are increasing. Low cost carriers are a good option for business travelers, as they get the benefits like low costs, more options and connectivity.
Budget hotels: More than 50 percent of the occupancy in majority of the hotels comes from business travelers. The average room rate realized from business travelers is normally higher than from leisure travelers.
Service Apartments: The concept of service apartments, through a recent phenomenon in India, is an established global concept. Service apartments are a latest trend in accommodation, which offer the comfort and convenience of a home without hassles of having to maintain and look after it. Service apartments are ideally suited for medium and long staying guests. They are a natural choice for corporate employees, non resident Indians visiting the country for long spells and foreigners visiting the city to stay for a long time.
Technology: Travel and Technology have become inseparable. Innovation is making its own advances with howdy tech video conferencing facilities, web cameras and virtual reality method of conferencing.
With advent of facilities like online ticket booking, Wi-Fi internet connectivity are technology has completely changed.
Loyalty travel: Today, airline-credit card company tie-ups have purchased an entire scope of advantages to travelers. These incorporate insurance cover, overhauls, free tickets, access to official lounges, and host of different treats.
Challenges Faced by Hospitality Industry
Human resources and labor are the biggest challenge faced by hospitality industry. It also includes decrease of the labor force union issues and increasing health care and benefit costs among other.
Labor issues: The traditional Labor force is decreasing as a result of change in demographics. The decrease in population growth rate, aging population and remaining of very few people in working age group, have all contributed to the decrease in labor supply.
Increase in operating costs: There is a fear that operating expenses will shoot up at a greater rate than income, potentially grinding down the bottom line. Operators need to monitor the energy costs, insurance costs, labor costs, and brand standards.
Meeting customer needs: Whether providing customers, top class hotels, service apartments, lodges, farmhouse resort near Delhi, or at various other places, meeting customer expectations continues to be a important precedence. In particular, clients are progressively sophisticated in their utilization of technology to research, select and purchase such accommodations.
Increasing construction costs: A high increase in construction and renovation costs has been resulting in heightening capital reinvestment exposure for some current lodgings and expanded capital prerequisites for new construction.
Numerous branded organizations are progressively requesting improvements and overhauls in the physical state of lodgings and more stringent adherence to brand measures to stay focused, bringing about raising capital reinvestment exposure for their hotels.
With enhanced market situations, engineers keep on looking for extra chances to construct hotels. However higher expenses for development will be one alleviating factor to new development. Few factors that will affect the money related practicality of new construction including continues increase in the price of building materials, high energy costs and increasing interest costs.
Most significant hotel brands are taking a hard line on enhancing brand guidelines and are requiring all the more expensive hotel furniture and materials. Therefore, the cost to construct hotels is expected to increase.