Booming Indian Hospitality Sector


The Indian hospitality industry is growing exponentially and has shown double digit growth of 10-15% despite a slump in the world economy. This makes India one of the attractive destinations for Holidaying revelers.

According to a research by World Travel and Tourism Council, India, ranks 18th in business travel, and experts forecast it will be among the top 5 in the next few years. In 2011, the Indian tourism industry has seen 8.9 % growth in Foreign Tourist Arrival and this number is expected to grow at a much faster pace in coming years.

Small cities and towns are metamorphosing into mini metropolis and growth opportunities coupled with increasing domestic travel are bolstering the hospitality industry, finds a survey conducted jointly by industry body CII and consultancy firm PwC.

What’s spurring growth in the hospitality sector?

Industry experts attribute this high growth in the hospitality industry to factors such as emerging high disposable income groups. The only point of concern for the hospitality sector however is high cost of developing properties, talent management and licensing polices which requires hotel to procure 80-100 licenses before starting operations. However, things seem to be changing fast as India offers lucrative investment opportunities.

Robust growth in the hospitality sector is also facilitated by technology solution providers like IDS NEXT. With 25 years of experience, the company offers a diverse set of hardware, software and manpower solutions. With solutions implemented across 3000 properties in 40 countries, the software solution offered by IDS NEXT enables hotels to optimize use of manpower and hotel operations, access business intelligence for better business decisions and increase overall profit margins.

Some of the big investments in the hospitality sector in India:

  • Swiss International Hotels & resorts plan to launch hotels in India

  • Pride Group of Hotels is set to launch its first property of 153 rooms in Eastern India. The company has invested Rs100 Cr.

  • There is growing investment in Spa services across hospitality industry as demand for these services are growing

  • Small towns like Visakapatnam are attracting attention of investors. Hotels like Taj, ITC, The Park, Marriott and Hyatt are developing properties there already.

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About hospitalitytechnology

Technology is making greater and greater inroads into our lives. Right from when we wake up in the morning to when we head to sleep – we cannot imagine a life without the gadgets and gizmos that make life easy and interesting. When we travel and stay in hotels, our expectations are no different. We expect all the technological amenities we easily access at home if not more. The hospitality industry in increasingly accessing technology to wow guests, optimize their use of manpower, control hotel functions in an integrated manner and on the whole reduce costs while increasing efficiency. This blog is meant to track these technological changes happening in the hospitality sector. The growing move towards sophisticated hotel ERP, the growing use of cloud computing, the rapidly changing customer facing devices – smart phones and iPads, the increasing security concerns and more. Expect to find interesting articles, whitepapers, thoughts, and observations. Feel free to comment and even mail us content that you don’t mind posted here. Happy reading!
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6 Responses to Booming Indian Hospitality Sector

  1. Nico says:

    Great article. I have been interested in the emerging markets for quite some time.
    I have started a blog as well and looking for great content like yours where I can forward my users to,
    We provide hospitality consulting http://www.floridabarcontrols.com

  2. Vruci says:

    Very rapidly this web page will be famous
    amid all blogging viewers, due to it’s nice articles or reviews

  3. Nice post. After reading this article, i do agree with you that hotel industry in India is booming so fast. Specially demands of luxurious hotels are increasing day by day. One more important reason is now India is become the important center of international business.

    • I am absolutely with Lavasa Hotels. According to FHRAI, India has over 200,000 hotel rooms spread across hotel categories and guest-houses and is still facing a shortfall of over 100,000 rooms. Thus the hospitality industry is slated to grow by double digit figures

      • Thank you, Lavasa Hotels & Lilian for your comments. There is so much buzz and excitement about hospitality in India, as tier two cities are emerging as business hub but there is a downside to this too, starting hotel operation requires procurement of multiple licenses from multiple agencies.

  4. Chough says:

    I am really impressed with your writing skills as smartly as with the structure in your blog. Is that this a paid subject matter or did you modify it your self? Either way keep up the nice high quality writing, it is rare to peer a nice blog like this one nowadays..

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