Hotels & Resorts


The Hotel Industry is a major part of tourism services that revolves around providing accommodations for travelers. Success in this industry relies on catering to the needs of the targeted clientele, creating a desirable atmosphere, and providing a wide variety of services and amenities. Managing hotels has grown from its modest roots in providing the bare essentials of lodging into a large, multi-faceted, and diverse industry.The foundation of the hotel industry is, of course, the business of providing lodging.


Hotels is an establishment that provides paid lodging as well as boarding if desired on short term basis. Travelers depend on hotels to supply a secure, pleasant place for a temporary stay. Whether the guests are business people on the road for work, families on vacation, or groups of tourists, they all need comfortable accommodations, and they hotel industry is where they turn to find them. Most hotel rooms are designed for a short stay, and come equipped with a bed, bathroom, linens, and basic features such as a phone and television.

Structure of Hotel Industry

Trends in the Industry

  • Budget Hotels as the next trigger
  • Medical Tourism
  • New Avenues of Growth
  • Shifting focus to Tier II and Tier III cities
  • Marketing Strategies
  • Emergence of Mixed Land Usage
  • Huge spurt of international brands
  • Innovative Operating Models

The Indian hotel industry is highly fragmented with a large number of small and unorganized players accounting for a lion's share. The major players in the organized segment include Indian Hotels Company Ltd, Hotel Leela Venture Ltd, EIH Ltd, ITC Hotels and ITDC.


This type of hotel is located in the hills or at beaches mainly away from city centre. It is mainly patronized by vacationers. Basic facilities are provided and the rates offered are often on American plan i.e. room plus all meals included. A resort is considered as a final destination for vacation travelers Resorts cater to the needs of the long holiday-maker, the tourist and those who by reasons of health desire a change of atmosphere. A resort is a place for holidaying or vacationing.

At a minimum, most inclusive resorts include lodging and scenic views; many also include unlimited food, drink and entertainment as well.

  • It can be called as a place frequented by people for relaxation or recreation
  • Resort Hotels are located near the sea, mountain and other areas abounding in natural beauty
  • Rest, relaxation and entertainment are the key factors around which resorts are built

They also provide sporting facilities such as Golf, Boating, Sailing, Fishing or other adventure sports such as Ballooning, Para-sailing, Wind-surfing, Safari Excursions, Trekking etc. and indoor games. Resorts can be of various types and can be classified on the basis of climate and also topography such as:

  • Summer Resorts
  • Winter Resorts
  • Hill Resorts
  • All-season Resorts
  • Health Resorts
  • Year-round Resorts
  • Urban Resorts
  • Timeshare Resorts
  • Fishing/Ski Resorts
  • Mega-Resorts
  • Casino Resorts

In India, the industry is still in a growth phase, with 4,640 timeshare units and 1, 46,450 members accounting for 2, 41,330 timeshare weeks. The growth in 2013 was 25%, against the last five-year average of 18%, according to Group Resort Condominiums International (RCI).

An RCI estimate on demand for timeshare products highlights an approximate growth of 16% per annum from 2006 to 2015 - facilitated by access to 12% holiday units per annum.

Key Trends

Growth in Demand and Supply: In 2012-13, GDP growth of 5%. Despite this slowdown, the year saw hotels maintain occupancy levels at a steady 60.4% (60.9% in 2011-12).major cities across the country witnessed a growth of 11% in hotel room supply in 2012-13, while demand exhibited a strong increase of 9.2% during the same period. The nationwide results of this year's Survey, however, reveal that the average rates declined by 3.6% when compared to those in 2011-12. The Banquets & Conferences segment also recorded a year-on-year increase of 17.4% in PAR revenue in 2012-13 (₨2,26,793) over that in 2011-12, while Food & Beverage recorded an increase of 4.2% in the PAR revenue (₨5,41,494) for the same period.

Sources of Revenue — 2008-09 to 2012-13

The Indian hotel industry continues to cater to the Business traveler, who contributes the largest share to the market mix at 39%. Hotels are targeting Banquets & Conferences in off-season months with attractive packages and rates in order to off-set the low occupancies experienced during the traditionally slow season.

Additionally, both the Domestic Business and the Domestic Leisure traveler have continued to show resilience and maintain their share of the pie and overall length of stay, when compared to the nationwide average.

Market Mix 2012-13