Conduct a Swot Analysis

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  • Topic: Tourism, Hotel, Destination hotel
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  • Published : May 30, 2013
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Assessment Task 2: Conduct a SWOT Analysis

Hotels form one of the most important support service that affect the arrival of tourist to a country. The major players in the industry are Indian Hotels Company Ltd (IHCL) operating under the Taj brand, the Oberoi, Welcome Group of Hotels, Hotel Leela Venture and the Ashoka chain of hotels, owned and operated by the Indian Tourism Development Corporation (ITDC). There are around 1000 classified hotels and the total room availability is pegged at 97,000 rooms. Hotels are classified into six categories according to the star rating assigned by the Department of Tourism. These range from one star to Five star deluxe depending upon size and amenities. About 30% of the rooms fall under the 5-star deluxe categories.

To find out the present status of this industry a strength, weakness opportunity and threat (SWOT) analysis is mental. This will help us in understanding this industry and also identify the weak spots. S.W.O.T ANALYSIS OF HOTEL INDUSTRY

Strengths
▪ A very wide variety of hotels is present in the country that can fulfill the demand of the tourists. ▪ There are international players in the market such as Taj and Oberoi & International Chains. Thus, the needs of the international tourists travellers are met while they are on a visit to India. ▪ Manpower costs in the Indian hotel industry is one of the lowest in the world. This provides better margins for Indian hotel industry.

▪ India offers a readymade tourist destination with the resources it has. Thus the magnet to pull customers already exists and has potential grow.

Weaknesses
▪ The cost of land in India is high at 50% of total project cost as against 15% abroad. This acts as a major deterrent to the Indian hotel industry.
▪ The hotel industry in India is heavily staffed. This can be gauged from the facts that while Indian hotel companies have a staff to room ratio of 3:1, this ratio is 1:1 for...
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