The Indian cordial reception sector is surely the most disposed reproduction of the belief Atithi devo bhava- touch of tenderness, a assisting manus and a welcoming countenance. Harmonizing to the Tourism Satellite Accounting ( TSA ) research, released by World Travel and Tourism Council ( WTTC ) and its strategic spouse Oxford Economics in March 2010.

Cordial reception is the universe ‘s largest service industry, using 1000000s of people working in hotels, eating houses, sail lines, resorts, private nines, casinos, and bed and breakfasts throughout the universe.

As per the Travel and Tourism Competitiveness Report 2009 by the World Economic Forum, India is ranked 11th in the Asia Pacific part and 62nd overall, traveling up three topographic points on the list of the universe ‘s attractive finishs. It is ranked the 14th best tourer finish for its natural resources and 24th for its cultural resources, with many World Heritage sites, both natural and cultural, rich zoology, and strong originative industries in the state.

India besides bagged 37th rank for its air conveyance web. The India travel and touristry industry ranked 5th in the long-run ( 10-year ) growing and is expected to be the 2nd largest employer in the universe by 2019.

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The cordial reception industry is a 3.5 trillion dollar service sector within the planetary economic system. It is an umbrella term for a wide assortment of service industries including, but non limited to, hotels, nutrient service, casinos, and touristry. The cordial reception industry is really diverse and planetary. The industry is cyclical ; dictated by the fluctuations that occur with an economic system every twelvemonth.

Tendencies in Hospitality Sectors

Tendencies that will determine the hereafter of cordial reception sector are:

2.1. Low cost bearers:

Travelers in general are more monetary value sensitive to airfare than they are to hotel room rates. Often a low airfare will excite demand for travel even if hotel monetary values are increasing. LCCs are a good option for concern travellers, as they have advantages like low costs, more options and connectivity.

2.2. Budget hotels:

More than 50 per cent of tenancy of a bulk of hotels comes from the concern travel section. The mean room rate ( ARR ) realized from concern travellers is usually higher than from leisure travellers. Heightened demand and the healthy tenancy rates have resulted in an addition in the figure of budget hotels. Some of the new participants come ining into this class of hotels include Hometel, Kamfotel, Courtyard by Marriott, Country Inns & A ; Suites, Ibis and Fairfield Inn.

2.3. Service flats:

The construct of service flats, though a recent phenomenon in India, is an established planetary construct. Villas in Spain, flats in the UK and flat composites in the US have all created a feasible market for those who want more than merely a room in a hotel. Service flats are the latest tendency in adjustment, offering the comfort and convenience of a place without the fusss of holding to keep or look after it. Ideally suited for medium-to-long staying invitees, service flats are a natural pick for corporate employees or expatriates relocating to a peculiar metropolis, non-resident Indians sing the state for long enchantments and aliens sing the metropolis for long continuances.

2.4. Technology:

Travel and engineering have become inseparable. Technology is doing its ain progresss with hi-tech picture conferencing installations, web cameras and practical world manner of conferencing. On-line engagements, e-ticketing, Wi-Fi Internet connectivity, easy entree to information, etc. are merely a few countries where engineering has wholly changed the the manner we travel.

2.5. Loyalty travel:

Today, airline-credit card company tie-ups have brought a whole scope of benefits to the travellers. These include insurance screen, ascents, free tickets, entree to executive sofas, and a host of other dainties.

Cordial reception Industry in India

Today cordial reception sector is one of the fastest turning sectors in India. It is expected to turn at the rate of 8 % between 2007 and 2016.

Contribution to the economic system

Uniting alone growing chances and limitless concern potency, the industry is surely on the anteroom towards being a key participant in the state ‘s altering face. Furthermore, banking on the authorities ‘s enterprise of upgrading and spread outing the state ‘s substructure like airdromes, national main roads etc, the touristry and cordial reception industry is bound to acquire a bounciness in its growing.

The hotel and touristry industry ‘s part to the Indian economic system by manner of foreign direct investings ( FDI ) influxs were pegged at US $ 2.17 billion from April 2000 to September 2010, harmonizing to the Department of Industrial Policy and Promotion ( DIPP ) .

India ‘s hotel grapevine is the 2nd largest in the Asia-Pacific part harmonizing to Jan Smits, Regional Managing Director, InterContinental Hotels Group ( IHG ) Asia Australasia. He added that the Indian cordial reception industry is projected to turn at a rate of 8.8 per cent during 2007-16, puting India as the second-fastest turning touristry market in the universe. Enterprises like monolithic investing in hotel substructure and open-sky policies made by the authorities are all aimed at impeling growing in the cordial reception sector.

Foreign Tourist Arrivals

Ministry of Tourism compiles monthly estimations of Foreign Tourist Arrivals ( FTAs ) in India and Foreign Exchange Earnings ( FEE ) from touristry on the footing of informations received from major airdromes. Following are the of import high spots, as respects these two of import indexs of touristry sector for October 2010.

FTAs in India during October 2010 were 487,000 as compared to FTAs of 446,000 during the month of October 2009 and 450,000 in October 2008.

FTAs during the period January-October 2010 were 4.32 million with a growing rate of 9.9 per cent.

Fee from touristry during the month of October 2010 were US $ 1.18 billion as compared to US $ 1.09 billion in October 2009.

Changes in Demographics

Population is altering and people are populating longer

The demand to supply family-oriented services will shortly top out

Number of older nine members will increase

Number of younger workers will worsen

A deficit of 10 Million workers is expected.

Government Initiatives/policy

Harmonizing to the Consolidated FDI Policy, released by DIPP, Ministry of Commerce and Industry, Government of India, the authorities has allowed 100 per cent foreign investing under the automatic path in the hotel and touristry related industry. The footings hotel includes eating houses, beach resorts and other touristry composites supplying adjustment and /or catering and nutrient installations to tourers. The term touristry related industry includes:

Travel bureaus, circuit operating bureaus and tourer conveyance operating bureaus

Unit of measurements supplying installations for cultural, escapade and wildlife experience to tourers

Surface, air and H2O conveyance installations for tourers

Convention/seminar units and administrations

The Government of India has announced a strategy of allowing Tourist Visa on Arrival ( T-VoA ) for the citizens of Finland, Japan, Luxembourg, New Zealand and Singapore. The strategy is valid for citizens of the above mentioned states be aftering to see India on individual entry purely for the intent of touristry and for a short period of upto a upper limit of 30 yearss. During the period January – October 2010, a entire figure of 5016 VoAs were issued under this Scheme.

The touristry maestro program, the first for Karnataka, envisages enterprises to pull private investing runing from US $ 2.2 billion to US $ 4.4 billion in the following three to five old ages. The program is prepared based on the Vision 2020 papers prepared and adopted by the Karnataka State Planning Board. The province authorities purposes to bring forth 200,000 occupations in the touristry sector in the following five old ages. The maestro program is aimed at doing Karnataka the figure one finish for touristry in the state by 2020, harmonizing to Mr G Janardhan Reddy, Minister for Tourism and Infrastructure Development


Natural and cultural diverseness: India has a rich cultural heritage. The “ integrity in diverseness ” ticket attracts most tourers. The coastlines, cheery beaches, backwaters of Kerala, snow capped Himalayas and the quiescent lakes are incredibl

Demand-supply spread: Indian hotel industry is confronting a mismatch between the demand and supply of suites taking to higher room rates and tenancy degrees. With the privilege of hosting Commonwealth Games 2010 there is more demand of suites in five star hotels. This has led to the rapid enlargement of the sector

Government support: The authorities has realized the importance of touristry and has proposed a budget of Rs. 540 crore for the development of the industry. The precedence is being given to the development of the substructure and of new tourer finishs and circuits. The Department of Tourism ( DOT ) has already started the “ Incredible India ” run for the publicity of touristry in India.

Addition in the market portion: India ‘s portion in international touristry and cordial reception market is expected to increase over the long-run. New budget and star hotels are being established. Furthermore, foreign cordial reception participants are heading towards Indian markets.


1. Poor support substructure: Though the authorities is taking necessary stairss, many more things need to be done to better the substructure. In 2003, the entire outgo made in this respect was US $ 150 billion in China compared to US $ 21 billion in India.

2. Slow execution: The deficiency of equal acknowledgment for the touristry industry has been haltering its growing chances. Whatever stairss are being taken by the authorities are implemented at a slower gait.

3. Susceptible to political events: The internal security scenario and societal agitation besides hamper the foreign tourer reaching rates.


Rising income: Owing to the rise in income degrees, Indians have more trim money to pass, which is expected to heighten leisure touristry.

Open sky benefits: With the unfastened sky policy, the travel and touristry industry has seen an addition in concern. Increased air hose activity has stimulated demand and has helped better the substructure. It has benefited both international and domestic travels.


Fluctuations in international tourer reachings: The entire dependence on foreign tourers can be hazardous, as there are broad fluctuations in international touristry. Domestic touristry demands to be given equal importance and steps should be taken to advance it.

Increasing competition: Several international big leagues like the Four Seasons, Shangri-La and Aman Resorts are come ining the Indian markets. Two other groups – the Carlson Group and the Marriott concatenation – are besides looking frontward to fall in this race. This will increase the competition for the bing Indian hotel big leagues

3.9. Major participants in Hospitality Industry in India.

1. The Indian Hotels Company

2. ITC/ Sheraton Corporation

3. The Leela Group

4. The Bharat Hotels Group

5. The EIH Ltd ( The Oberoi Group )

6. India Tourism Development Corporation ( ITDC ) / The Ashok Group

7. The Hotel Corporation of India ( HCI )

8. Jaypee Hotels Ltd.

India ‘s Role in Hospitality

The current count of hotel suites is 130,000, and the state is expected to necessitate an extra 50,000 suites over the following two to three old ages, harmonizing to World Travel and Tourism Committee ( WTCC ) estimations

US-based hotel concatenation, Marriott International, plans to spread out its web in India to 100 hotels over the following five-years, stated Arnie Sorenson, Chief Operating Officer, Marriott International. At present, the group operates 11 belongingss across the state.

The Road Ahead

The part of travel and touristry to Gross Domestic Product ( GDP ) is expected to increase from 8.6 per cent ( US $ 117.9 billion ) in 2010 to 9.0 per cent ( US $ 330.1 billion ) by 2020.

Export net incomes from international visitants and touristry goods are expected to increase from US $ 11.1 billion in 2010 to US $ 33.6 billion in 2020.

Travel and touristry investing is estimated at US $ 34.7 billion or 7.2 per cent of entire investing in 2010. By 2020, this should make US $ 109.3 billion or 7.7 per cent of entire investing.

Roots Corporation, a subordinate of Indian Hotels Company ( IHC ) , plans to open 60 to 70 budget hotels, known as Ginger Hotel, in 23 locations across the state.

ITC, the Kolkata-based coffin nail major, besides projected its program to open 25 new hotels under the Fortune trade name over the class of following 12-18 months ( or by 2011 ) .

International Hospitality Business

Hospitality is really of import constituent of Service industry in any state ‘s national economic system. When a domestic cordial reception company decides to spread out its operation into a foreign state, its abroad development recognizes as international concern and its concern gross generated from abroad operations are described as service export.

Advantages of International cordial reception services:

Management Companies

Investing Companies

Fast Chaining: Hotel direction companies can develop much faster utilizing this method with really limited hazard.

Reduced hazard in running hotel concern

Financing the belongings: direction companies need a small or no initial investing

By and large minimal net income is guaranteed and the capital investing will be paid back

The reduced hazard: the hazard for direction companies running the derivation from extra edifice cost, market recessions or altering markets are all significantly reduced.

With the acknowledgment of the esteemed hotel trade name name the value of the belongings may increase

High return on investing ( ROI ) : due to the low sum of investing required from hotel direction companies, really high fiscal and economic net incomes can be achieved

Disadvantages of International cordial reception services:

Management Companies

Investing Companies

Obtain lone portion of the net income

Last control of day-to-day operations of belongings

Loss of belongingss possible grasp in the past 5 old ages, in many parts of America and Britain, belongings monetary values are more than doubled.

The direction company may non hold necessary twelvemonth of experience, cognition or resources in pull offing abroad concern

The proprietors may interfere despite the contract in some of the direction issues restricting the direction companies ‘ operational potencies

Management companies may lose the contract in certain phase

Case Study – TAJ HOTEL

The Indian Hotels Company ( IHC ) is the parent company of Taj Hotels Resorts and Palaces. It was founded by Jamsetji N. Tata on December16, 1903. Currently the Taj Hotels Resorts and Palaces comprises 57 hotels at 40 locations across India.

Physical Evidence

Lobby- It being the first & A ; the last portion of the hotel that the guestsees, therefore it should be good designed, besides to guarantee that the client returns once more the room should be comfy and should hold made his stay hassle free procedure

Major service brush that highly delighted or disappointed are:

1. Check – in.

2. Bell individual transporting baggage to the room.

3. Food.

4. Wake up call

5. Check out.


Promotional strategies are carried on on a regular basis the hotel has many trueness programe, clubes, rank, previlage etc some of them are

The Taj Inner Circle.

The Taj Junior League.

The Taj Club.

Taj besides offer Taj surprises including weekend rescuers, value verifiers, book early get more.


Business intelligence paper ( E.T, Financial Express, Bombay Times )

T.V channels like STAR NEWS, CNN and CNBC.


Global Awards:


Dun & A ; Bradstreet – American Express Corporate Awards 2007 -India ‘s Top 500 Companies 2007 – in the “ Hotels ” class – The Indian Hotels Company Ltd.


Taj Hotels Resorts and Palaces is proud to have the award for

‘The Best Business Hotel Chain in India ‘ by the readers in UK at

the 2008 Business Traveller Awards.

Some Mile rock of Taj GROUP

1903 – The Company opens its first hotel, the “ Taj Mahal Palace ” in Mumbai, India. The Company opens its first five star deluxe beach resort, the “ Fort Aguada Beach Resort ” in Goa.A

1974 – The Company begins concern in metropolitan hotels by opening the five star deluxe hotel, the “ Taj Coramandel ” in Chennai

1980 – The Company opens its first hotel outside India, the “ Taj Sheba Hotel ” in Sana’a, Yemen.

2006- The Company acquires the “ W ” hotel in Sydney, Australia which is subsequently renamed as the “ Blue Sydney ” .A

The Company commences operation of its first wildlife Lodge atA Mahua Kothi, Bandhavgarh.

2007 – The Company acquires the “ Ritz-Carlton ” in Boston, USA which is subsequently renamed as the “ Taj Boston. “ A The Company commences operation of its 2nd wildlife Lodge atA Baghvan, Pench.


The hotel has many rivals like

The Oberai towers

The Marine Plaza

The Orchid.

Le Meridian

Amalgamations and acquisitions

Starwood Group ( W Hotel )



The Pierre US


July 2005

Regent Hotel ( renamed Taj Lands End )




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