Beating the Competition and Sustaining in the Modern Hotel Industry

2220 Words9 Pages
“The capital of the world is in 23 different places”- this was the tagline used by the General Electric Company when it expanded its business in 1995. It is very valid for India as well. India is emerging as one of the leading economies of the world and the rate of growth in every sector of the economy is immense. The hotel industry is very sensitive to economic cycles and is therefore intrinsically linked to the state of the economy. At present, there are over 462 hotels in the country and the total number of rooms is around 58612. Hotel room supply has increased in 2010-11 by 15% while the nationwide occupancy has increased by 1.7%. Although the growth in supply is a double digit figure but the growth in occupancy signals the fact there…show more content…
Then it needs to highlight the services and brands that appeal to that segment, “first act, then talk” is the idea.
More and more companies are creating sub-brands under the primary corporate name to create new niche opportunities across pricing and level-of-service parameters. “The majority have loyalty programmes with a few making assertions to having the best based upon surveys done by various organisations or travel-related journals” (Olsen et all, 2004). While creating new brands and marketing them, companies must keep in mind the Critical Success Factors. Some of the main CSFs are listed below. Critical Success Factors | | Loyalty programmeLocation | | Reservation system | | Revenue management system | | Technology utilization | | In-room amenities | | Brand strength | | Market presence | | Brand portfolioOperating management system | |

“Hotel operators and OTAs (online travel agents) have often been in competition in recent years. Yet they often share common strategic aims and by 2015 we are going to see amore collaborative approach to achieving common benefits.” (Hospitality 2015: Game changers or spectators, Deloitte, 2010)
OTAs became powerful after the advent of Expedia. Hotel operators feel collaborating with OTAs makes them lose control over their inventory and the prices are often not very profitable. On the other hand, OTAs aim at providing the best deal available to their customers, who they believe trust them to
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