Industry Analysis Case Study

Case Title:

Indian Hotel Industry (A): The Competitive Dynamics

Abstract:
Fuelled by the country’s booming economy, low-cost air carrier introduction and liberalisation of FDI norms that allow 100% foreign investment in real estate, the Indian hotel industry is currently seeing a boom. Demand for hotel accommodation has increased tremendously across India but the rooms’ supply has seen an insignificant growth, causing staggering room rates and insufficient room availability. Inbound tour operators blame these as key deterrents that keep tourists from visiting the country. Moreover, with poorly facilitated airports, inadequate road infrastructure, high taxation levels and a bureaucratic visa processing system, India’s hotel industry has serious challenges ahead. Significant investments in tourism infrastructure are essential for this industry to progress and ultimately achieve its potential.

Pedagogical Objectives:
Case (A) helps

• To understand Indian hotel industry dynamics before and after the country’s economic liberalisation and analyse the key success factors of the industry
• To examine the Indian hotel industry segmentation and contrast it with the country’s economic development and room prices
• To highlight global hotel chain’s growing presence in India and the various market entry strategies available for them to establish their presence in India
• To analyse Indian hotel industry’s demand-supply mismatch, the reasons for it and the necessary steps to fill the gap.

Keywords : Indian Hotel Industry; Industry Segmentation; India’s Economic Liberalisation; Industry Classification; SWOT Analysis of Indian Hotel Industry; Critical Success Factors; Challenges in the Indian Hotel Industry; Role of Government in Industry’s Development; Industry Analysis Case Study; Taj and Oberoi Group of Hotels; Market Entry Strategies; Global Hotel Chains in India; Incredible India Campaign; Demand Supply Disparity