Deepak Purohit, a business person, a restaurateur and a chef, is one of the individuals who surrendered the simple way of proceeding at the best lodging gatherings and sought after his fantasy about beginning his own eatery 36 Lebzelter. Not long after his graduation in Hospitality and Hotel Management, Deepak finished his mechanical preparing with the Taj Group of Hotels and worked persistently to accomplish every one of his objectives. With the ideal mix of centre, devotion and difficult work, the sky is the limit. In a range of 10 years, Deepak had worked with first-class marks in the business like ITC, The Oberoi, Accor, The Leela, Holiday Inn, Radisson, Le Meridien and then some. Working at these exceptional lodgings assisted him with acquiring a ton of involvement and a large number of life exercises which caused him to acknowledge he is more than one or the other was when 36 Lebzelter was begun in 2016.
The tourism and hospitality industry in India is naturally capital intensive and has been one the major factors of growth among the service sector in India. The Indian travel & tourism industry a subdivision of the hospitality industry has ranked to be the 10th among 185 countries in the world, as per the World Travel & Tourism Council (WTTC) and contributes to 6.8% of to the total economy. With the historical heritage, rich culture, natural beauty spread throughout the country, the ecology, terrains and so much more, the tourism industry has been generating employment in the country.
In 2019 the tourism sector accounted 8% of the total employment in the country which is 39 million jobs and it is also expected to account for 53 million jobs by 2029. But as the pandemic hit the hospitality industry it was severely affected and the debt level of the hospitality industry increased. As compared to the peak in 2019 the hospitality investment trading volume in India downtrodden to 84% in 2020. Though the hospitality industry in India was halted abruptly, reorganising the business to deal with the current market needs and desires will be fundamental for the industry so investors could bear in investments.
Market Size & Investments
With the adoption of digital technology and the use of digital tools for booking, planning, and a lot more, India is called to be one of the most digitally advanced traveller nations. The domestic travel has been on the rise as the disposable income has been increasing. In the year 2019, with a growth rate of 3.5% the foreign tourist arrivals (FTA’s) in India stood at 10.93 million. As international travel was banned the FTA’s decreased by 75.5% in 2020. The international tourist arrivals are expected to generate a revenue of $ 59 billion. But as India offers world heritage sites, geographical diversity, immense attractive beaches, national parks and sanctuaries the country would experience growth in domestic tourism post pandemic. And India’s tourism industry is expected to reach $488 billion by 2029 accounting to 9.2% of the total economy.
The international hotel chains are estimated to account 50% share in the tourism industry as the by 2022 as their presence in increasing in the country. According to the reports by Federation of Hotel & Restaurant Associations of India (FHRAI), in the Financial Year (FY) 21 due to the pandemic the hospitality industry was impacted and took a drastic hit of $17.81 billion. Though the hospitality industry witnessed a dip in FY21, it wasn’t all doom for the hotel industry a subdivision of the hospitality industry. With services such as food delivery through online platforms some hotel survived in the pandemic. At a compound annual growth rate (CAGR) of 13% the India hotel industry is expected to reach a value of INR 1,210.87 billion by 2023.
Accounting for a total 5.9% investment in the country India was the 3rd largest country in terms of investment in 2018. The Dream Hotel groups plan to invest around $300 million in the next few years for the development of the cruise sector. An emerge in cruise visitors is expected with a market size of 1.2 million by 2030-31 in India.
As the hospitality industry had allotted a total of 8.1% of jobs in this industry in 2018. the government takes required action to save and maintain the glory of the hospitality industry. The hospitality industry benefits greatly from the government since the government was drawn to recognition about the profits and potential the hospitality industry possesses; the government provide various packages to this industry to maintain its growth and stability. The government of India plans on looking in regional tourism post covid 19 and open its doors to the neighbouring South Asian countries tourists. Having a government support will help the hospitality industry to attract investors to develop strategies that can be beneficial in times of post covid.
During times like covid, travellers are worried about their safety and prefer to stay in hotels having high end hygiene level and having less contact as much as possible with the hotel staffs. The hospitality industry has already begun with digital check in and check out making it into a new normal. The implementation of future technologies like AI is already being implemented, the technologies like Blockchain and Cryptocurrency are also looked into as they offer immense benefits to the hospitality industry. Keeping the customer and employee safety into consideration the hospitality industry has offered contactless payment methods and dining with no contact system in their industry.
As vaccines have already begun all over the world, the number of international travellers will increase gradually, while domestic travel is getting its pace and maintaining the guest’s safety and hygiene in the industry is very important as one needs to gain the trust of the customer for the business to flourish. Being able to attain the trust of the guests will not only benefit the hospitality industry with few incomes but will also allow them to capture attention of the investors by showcasing their strategies by using modern technologies.
The hospitality is estimated to be back to its pre- covid levels by 2023-24 as the revenge travel to leisure destinations has become a trend, the industry moves towards contactless technology from its traditional high-touch experience, booming domestic travel and the use of emerging technologies is increasing. So, the strategic investors could benefit from its acquisitions which are low and could also gain higher returns in the future due to the future boom.