The Hospitality Industry growth and your career opportunities
After the liberalization of its economy, India witnessed significant growth in its middle class and disposable economy. This had a direct impact on the country’s hospitality industry which contributes over 7 per cent to the GDP of India. Considered to be a sunrise industry, the hospitality sector is expected to touch $460 billion by 2028. Moreover, India has witnessed considerable growth in foreign visitors since the 2000s. All these reasons have enabled the country to become the seventh-largest tourism economy in the world.
It is considered as one of the most profitable industries which also accounts for over 8.78 per cent of the total workforce, creating almost 15 million jobs in the past five years. The sector attracts a major chunk of foreign direct investment inflow along with the most important means of foreign exchange for the country.
Hospitality industry can be sub-categorized. One such example would be the lodging industry that can be further classified based on location, level of service and themes. Moreover, several organizations within the hospitality industry offer services such as food along with accommodation and transportation.
Lodging in India includes the hotel category along with motels and resorts as well.
Hotels in India are categorized into two categories —the star category hotels and heritage category hotels. The star category hotel is further divided into 5 Star Deluxe, 5 Star with Alcohol Service, 5 Star without Alcohol Service, 4 Star with Alcohol Service, 4 Star without Alcohol Service, 3 Star, 2 Star, and 1 Star. The Heritage category hotels are divided into —the Heritage Grand, Heritage Classic with Alcohol Service, Heritage Classic without Alcohol Service and Heritage Basic.
By 2023, the overall hotel industry in India is expected to reach over Rs 1,200 billion. In the past few years, the occupancy rate of the major hotels has increased at least two folds. The hotel industry is growing at about 7 per cent per annum and many experts believe that it may fall short of meeting the long term demands of the thriving market.
In recent years, another category emerged within the hospitality industry in India – the serviced apartment sector. These apartments usually include two to three fully-furnished bedrooms with all the modern equipment such as washing machines, refrigerators, microwave oven, housekeeping, etc. Even after providing several services, these serviced apartments offer 30-35 per cent tariffs to the business class than the 5-star hotels for longer stays.
Top players in the hotel industry 2019
- Hyatt Hotels Corporation
- Marriot International India Pvt Ltd
- Radisson Blu Hotels
- Taj Hotels, Resorts & Palaces
- The Oberoi Group
- The Park Hotels
- ITC Group
- Lalit Hotels
- The Leela Palace
- Shangri-La Hotels & Resorts
The food and beverage category is further divided into two sub-categories —organized and unorganized. It is difficult to track unorganized food and beverages category which forms about 65-70 per cent of the total market and the organized one comprises of the rest of the 30-35 per cent market.
The organized sector is regulated by the state authorities on quality control and they are known for their standardized. An unorganized sector, on the other hand, lacks a structured supply chain, business plans, and quality control.
Within the organized category – casual and fine dining and quick services restaurants (QSRs) form over 80 per cent followed by pubs, bars, clubs, lounge (PBCL) and cafes & bakery occupying the rest of the market. Moreover, the food and beverage sector is expected to grow at 10.4 per cent annually and is likely to reach Rs 5.5 trillion by 2022.
India is home to one of the largest millennial population in the world. Consequently, it has resulted in the opening up of a number of bars and cafes, nightclubs and tea and coffee shops. Apart from the tourist destinations and markets, areas around corporate hubs, universities, colleges, and institutions offer immense opportunities for the food and drinks sector.
Therefore, graduating in hospitality program from Top Hotel Management colleges in Hyderabad and India will help you in professional growth as well as in personal development. Pursuing your course specially in Regency College of Hotel Management & Catering Technology will give an advantage. By working under industry expert, you get the experience to plan, manage, organize and execute projects and business with a customer base, assisting you to learn, understand and deal with customers from different ethnicity.
One may choose to go work in the field of hospitality both globally or in India.