ETW Staff – New Delhi
The Federation of Hotel & Restaurant Associations of India (FHRAI) has released the latest edition of its annual publication, the FHRAI Indian Hotel Industry Survey, published in cooperation with HVS Hospitality Services. The survey encapsulates the performance of hotels in all major Indian cities and across star categories and market positioning. In addition to in-depth data on financial and operating metrics such as occupancy, average room rates and revenue per available room, the report also includes a comparative analysis based on parameters such as guest facilities, manpower, technology adoption, choice of marketing media, etc.
A presentation on the key highlights and trends emerging from this year’s survey was made by Manav Thadani, chairman-Asia Pacific, HVS, to a select audience at an event hosted by FHRAI in New Delhi. Parvez Dewan, secretary, ministry of tourism, Government of India was the chief guest at the event.
S M Shervani, president-FHRAI said, “As the leading national voice of the Indian hospitality industry, FHRAI accords high priority to producing credible research and contemporary thought leadership which can shape policy and guide business strategy. ”
Sharing his assessment on the hotel industry’s performance in the past year, Shervani said, “Despite sincere efforts, both by the government and the private sector, India’s global market share in tourism remains at a disappointing 0.68 per cent, with the country being ranked 41st in the world in international tourist arrivals. The World Economic Forum’s influential Travel & Tourism Competitiveness Index, placed India at the 65th position among 140 nations in 2013. It is pertinent to note that on their three pillars of competitiveness, India was well assessed in terms of its human, natural and cultural resource endowments with a rank of 21, but scored an abysmally low position of 110 globally in its regulatory framework for travel and tourism and 67 on business environment and infrastructure. It is thus evident that India has been unable to convert its inherent comparative advantages into a sustainable competitive advantage for our hospitality and tourism sector.”
The year 2013 was challenging for the industry on account of the global and domestic slowdown, which is also visible in the pressure witnessed on hotel occupancy and average room rates. “In a tough macroeconomic environment marked by high inflation, rising interest rates, currency volatility and a tepid demand scenario, hotel companies have prioritised realignment of their cost structures, optimising operational efficiencies and adopting flexible business models. At the same time, the industry is optimistic about the long-term potential of the Indian hospitality sector and we remain steadfastly focused on pursuing customer-centric innovation, delivering service excellence and tapping newer market segments,” mentioned Shervani.