Growth of Hospitality Services in India | Top Ten MBA Colleges in Bangalore

Posted by Prof. K. Saketh Reddy On 09/02/2023 18:05:35

The Indian hospitality industry, spearheaded by the hotel market, has emerged as one of the primary sectors which are driving the economic growth of the country. In India, hotels are classified based on location (city hotels, airport motels, resorts, etc.), level of service (upscale, mid-market, and economy), and themes (boutique hotels, heritage hotels, etc.). The growth of this sector was driven by various factors like growing economy, international tourism, changing life style etc., People are increasingly going on staycations, long weekend getaways, and also social gatherings such as weddings. This has resulted in business growth for the hospitality sector. Additionally, better infrastructure across the country, especially holiday destinations like hill regions, has provided a much-needed boost to road travel. mba colleges in bangalore

India’s rich cultural heritage and diverse geography have long made it a popular destination for tourists, and this trend has only continued to grow in recent years. The Indian government has also been actively promoting tourism, with initiatives such as “Incredible India” campaign, which aims to increase awareness of India’s many attractions and boost tourism.

The 100% FDI in the hotel and tourism sector is paving its way to more investments in the country through the automatic route. A 5-year tax holiday has also been offered for 2-4-star category hotels which will be located around UNESCO World Heritage sites (except for locations like Delhi and Mumbai). Special Tourism Zones (STZ) which is targeting to promote tourism and investments in the sector is at the negotiation stage, which if get passed government will provide single window clearance for setting up the zones. An STZ is to be located in tourist cities, destinations, along the coastline. The hospitality industry in India was seeing tremendous growth in the last few years, which was slightly marred by the Covid-19 impact in 2020.

People are increasingly going on staycations, long weekend getaways, and also social gatherings such as weddings. This has resulted in business growth for the hospitality sector. Additionally, better road infrastructure across the country, especially holiday destinations like hill regions, has provided a much-needed boost to road travel. 

International hotel companies currently dominate the luxury space but have yet to achieve the same level of success in the mid – market / economy space. As the working class grows, disposable income raises, and aspirations change, future growth will come from mid-market / economy segments for those brands that can aggregate or scale up capacity with the right economics as the next million rooms are built. Non-metros are the next battle grounds for domestic hospitality players vs international chains. While there are numerous hotel development opportunities in India’s key cities and micro-market, hoteliers are focusing on tier II and tier III cities to meet raising demand, particularly with an increase in domestic travel. There is a wide scope for growth in this sector with the growing Indian economy. mba in operations management in bangalore

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