Business Analysis: Case Study Of OYO Rooms

Hospitality industry is a broad industry which contains many services. Hotel management, hotel administration, hotel and tourism management are the branches of this industry. Hospitality management includes hotels, restaurants and cruises. This is a service sector and this kind of work is not for everyone. This sector needs so much employee and it creates great employement chance. Hospitality sector as a whole currently employs almost 2 million people. However, its not that easy to get in as a employee. People who work in hospitality management needs to be good at communication and also they need to be superb at customer service skills. It is also important to be able

The hospitality industry in the United States is one of the fastest growing branches of the market economy. The high growth rates of the hotel industry are caused not only by the growth of internal and external economic ties between countries, but also by the growth of foreign tourism. The modern hotel business in the US is a powerful industry, in the full sense of the word. The entire American hotel industry, in the first place, is designed for the domestic tourism market. For example, in Chicago for a year there are 33 million tourists, and only 2 million of them are foreigners.

The hospitality and leisure industry hug a variety of sectors and businesses across hotels, restaurants and restaurants, travel and tourism, gaming, sport and leisure. The sector is reliant on the consumer confidence and business sentiment and is facing rising pressure to deliver innovation, value and quality. Hospitality is that business that helps people to feel welcome, relaxed and to enjoy themselves. It is all about customer service and providing the best quality and experience possible for the customers. (Discover Hospitality, 2012)

Though there has been growth in the luxury market, customers are increasingly identifying with other strong hotel brands. In addition, the market is getting more crowded. In 1996 Rosewood and its key competitors had 165 properties combined. Today that number has almost doubled to 310, with 120% growth specifically

J.W. Marriott Jr., the company's chairman and chief executive added," occupancy and room rates improved due to accelerating corporate demand, growing group meeting attendance and increasing global travel." (Washington Post)

Report projects population growth as well as retail sales growth, along with a demand for additional hotels. Such growth will increase demand for other services and products. Also, with emphasis on room types, outdoor or indoor rooms, overlooking the beach.

The hotel industry is a very hard industry to enter into, due to one of the biggest obstacles, which is brand recognition. Right now there are a few large hotel chains that make a large footprint in the market. It is hard for a new entrant to come into the industry and compete with these large hotel chains without bringing something new to the table. Many large chains in the industry dominate the industry due to economies of scale due to franchising.

Hilton Hotels is one of the biggest players in the US lodging industry. It contributes to about 9% of the total rooms in US lodging market. It has presence in over 78 countries with more than 2500 hotels. Lodging industry is highly capital intensive industry, so to reduce capital expenditure Hilton Hotels opted for self-owned Hotels as well as franchising model with the real estate owners. One of the key features of lodging industry is low switching costs for customers. There is very little margin to differentiate from the major competitors in the industry which include Marriott international, IHG, Accor etc.

Radisson Blu hotels have made a name for themselves in the hospitality industry as well as the market by globalizing their business in several continents such as Europe and Asia, having 380 hotels over the world and having plans of several other hotel locations to be opened as mentioned on their official web page (https://www.radissonblu.com/en/about-blu). Radisson Blu offers it 's customers luxury and high end services giving it a competitive advantage against it 's competitors, which often attracts customers that are in the top tier of the income chart such as business officials and

While growth is expected in the upscale hotels, the growth in the economy segment is still minimal. While several chains, both domestic and international, have announced plans for development of hotels in this segment, visible action on the ground is limited. Economy hotel chains in India mainly target value-conscious domestic business and leisure travelers who demand convenient lodging, a consistent product and high-quality services. According to a study conducted by Ginger, currently, 37 percent of economy hotel guests are individual business travelers, 23 percent are contract corporate customers and 20 percent are individual leisure travelers. Economy hotel chains aim to satisfy customers’ basic accommodation needs with affordable pricing, a comfortable lodging experience and a standardized service-product. Lack of

The hotel industry in India has been evolving and developing itself every year according to the need of the hour. The concept of boutique hotel has also shown its effect on the Indian soil leading to its growth and development over the decade and will continue forward. There are more than 15 boutique hotels in India mostly located in the urban areas having a healthy tourist visits. Some of the boutique hotels are:

1).The relationship between Hospitality and Tourism: Tourism and hospitality go hand in hand, the hospitality industry offer services like accommodation, transportation, food and beverage, recreation and leisure. Tourism is the activity by the tourists where they engage in travelling to destinations where they want to experience recreational and leisure activities and most of the time avails of accommodation, food and beverage. The hospitality industry is the supplier of the services for tourism. The meaning of hospitality is providing a safe and enjoyable environment for patrons. It also means responsibly serving liquor, to ensure that patrons do not become unduly intoxicated and subsequently a problem for management, staff and the

Tourism is often synonymous to traveling for pleasure and education. It is also a business of attracting tourists and providing for their accommodation and entertainment. In many countries, tourism is an industry for earning Inland Revenue and foreign exchange. The many businesses that grow concomitantly with development of tourism include airlines, shipping, hotels and restaurants, finance companies, tour operators, travel agents, car rental firms, caterers and retail establishments and together,

The majority of the five-star hotels are controlled by foreign hotel management group while the one, two, three, and four-star hotels are mostly controlled domestically without any strong chain brand. By August 2017, the profit of five-star hotels stands at 64.83 billion yuan, four-star hotels at 2.09 billion yuan, three-star hotels at 6.13 billion yuan, two-star hotels at 0.54 billion yuan, and one-star hotels are at 0.11 billion yuan. This shows that the majority of the profit share is earned by five-star hotels. Besides the starred hotel, there are 95000 individual hotels in China market, which occupies 27% of the market share; and economy hotel for around 7000, occupies 1.9% of the market share; social inn, hostel for about 234,000, which occupies 67% of the market share. In China, the main body market is filled with non-brand individual hotels, social inn, and hostels, but their competitive power and profitability indexes are relatively weak. Economy hotels, on the other hand, in terms of economic perspective, are lying in the ascendant mode with lots of domestic brands appearing having strong competitive power and profitability indexes.

Environmental – With regards to the environmental factors such as the air, noise, and water, inspections are implemented to ensure the company provides corrective actions within the stipulated time. The environmental inspection is part of the legal documentation and environmental authorities as the business operations are on-goings and maintains the competence. Room & Board own most of its locations and searched out freestanding sites with ample parking and easy access for customers. It renovates its store with a particular environment.