Industry Analysis of Hotel Industry, India

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Business structure and processes

INDUSTRY ANALYSIS FOR HOTEL INDUSTRY, INDIA

Shruti Garg 2012H149223P Department of Management 16th November’ 2012 Submitted to Dr. Jyoti

TABLE OF CONTENTS
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

Shruti Garg

2012H149223P

2|Page

INTRODUCTION
BACKGROUND OF THE HOTEL INDUSTRY
The Hotel Industry comprises a major part of the Tourism industry. Historically viewed as an industry providing a luxury service valuable to the economy only as a foreign exchange earner, the industry today contributes directly to employment (directly employing around 0.15 million people), and indirectly facilitates tourism and commerce. Prior to the 1980s, the Indian hotel industry was a slow-growing industry, consisting primarily of relatively static, single-hotel companies. However, the Asiad, held in New Delhi in 1982, and the subsequent partial liberalization of the Indian economy generated tourism interest in India, with significant benefits accruing to the hotel and tourism sector, in terms of improved demand patterns. Growth in demand for hotels was particularly high during the early 1990s following the initiatives taken to liberalize the Indian economy in FY1991, as per the recommendations of the International Monetary Fund (IMF).The euphoria of the early 1990s prompted

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