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Hotel Industry in India 2011

By Bharatbook Subscribe to RSS | June 11th 2012 | Views:

The hotel industry in India thrives largely due to the growth in tourism and travel. Due to the increase in tourism with rising foreign and domestic tourists, hotel sector is bound to grow as it will provide lodging and food to these tourists. Emergence of budget hotels in India to cater to the majority of the population who seek affordable stay has materialized into an effective driver for growth. This sector will benefit due to certain Government regulations that will steer this sector towards growth.

The report begins with an overview of the travel and tourism industry in India providing the market size and growth as well as an indication about the foreign exchange earnings by the sector. This is followed by an overview of hotel industry. This provides an introduction to the hotel industry and covers the market size and growth of luxury hotels as well as the market segmentation of the hotel rooms operational in India. The various types of hotels in India based on services provided are also highlighted. Furthermore, it covers the primary consumer base for this space. Additionally, it highlights the occupancy rates prevalent in the market.

An analysis of the drivers explains the factors for growth of the market and includes growth in tourism, opening of the aviation sector, emergence of budget hotels, shortage of hotel rooms and major events. India being a land of rich natural diversity has consistently been on the tourists’ radar and tourism has been on a growth trajectory. India is presently considered as a provider of low cost medical treatments which has led to the development of India as a destination for medical tourism. These factors have contributed to the growth of tourism which is a powerful driver for growth of the hotel sector. The opening up of the aviation sector has provided the needed thrust. Major players diversifying into the mid-market segment to develop budget hotels has also been an added driving force. Such hotels are constructed to tap prospective consumers who seek stay at affordable price. International companies are increasingly looking at setting up such hotels. Imbalance in increase in tourists both domestic and foreign not been supported with equal number of rooms is a latent source of opportunity for growth. Additionally, the rise in major events being organized in India has also posed as a chief driver for the sector. However, the sector is also facing certain challenges. Factors such as socio-political concerns, lack of infrastructure and increasing operating costs pose as barriers to the growth of this sector.Industry Analysis

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Hotel Industry in India 2011


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Bharat Book Bureau, the leading market research information aggregator provides market research reports, company profiles, country reports, newsletters, and online databases for the past twenty four years to corporate, consulting firms, academic institutions, government departments, agencies etc., globally, including India. Our market research reports help global companies to know different market before starting up business / expanding in different countries across the world.

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