When it comes to Hotel Business In India there are a few guidelines you might want to consider. The hotel industry in India has grown phenomenally in the recent time, more so because of the burgeoning economy that has been experienced for quite some time. This growth has been evident in both the star category hotels as well as the budget hotels. The settling in of low budget airlines have also been a major contributor to the tremendous boom of this business sector because both local and international tourists are in a position to visit the country more than ever before.
The government of India is very aware of this critical economic sector and has therefore stepped-up tourism promotion. The major boost to the hotel industry is the obliteration of inland air travel as well as reducing prices of aviation turbine fuel. The government has also increased the number of regional airports in Indian towns. The privatization and expansion of both Mumbai and Delhi airports is also seen as seen as a major step forward for boosting the hotel industry.
To add into the bag of government efforts to ensure India is becomes a one-stop destination for conferences and conventions are its decision to include convention centers as part of its core infrastructure. This has seen massive funding coming from the government that has encouraged capital investment that has catalyzed demand for more hotel rooms.
There has also been a massive expansion of expressways connecting various Indian cities, which has opened an opportunity for the opening of many budget hotels in India. The Tata Group is one company that has taken advantage of this, with Homotel following suit as well as many other luxury and middle-tier hotels that are run by both local and international competitors who are trying to create niche identity across India.
There are currently more than 100000 hotel rooms in India and this has been considered as shortage of the equal figure (and totally uncomparable to the Las Vegas Strip Hotel Resorts. The demand is expected to outstrip supply quite significantly in years to come, thus creating brighter prospects of hotel business in India.
Reports show that there are five star hotels in the country that book in two guests in the same room more than twice on any given day. The occupancy of Indian hotels is expected to reach an all time high of 80% in the next two years, something that will be quite detrimental to the competitiveness of Indian hotel industry on the global frontier.
There are measures that are been put into place to curb this situation, one of them being the setting up of additional 60000 rooms and this is expected to be complete by 2012. The 2010 Commonwealth Games that will be held in Delhi are expected to benefit hotel business on a large scale due to the large number of local and international visitors that are expected.
The Indian government has already approved 300 hotel projects, with a huge percentage of this being luxurious. In a nutshell, the hotel business in India looks quite rosy and there are so many opportunities that are yet to be exploited. The mid-market segment particularly has a bright future, with the luxury hotel segment showing encouraging progress.