International Conference on Global Trends in Engineering, Technology and Management (ICGTETM-2016)
Recent Trends in Hotel Industry and Its Impact on Individual
Spending: A Study for Khandesh Region
P.A Anawade #1, Dr. Shilpa K. Bendale*2
# Research Scholar North Maharashtra University, Jalgaon, & Assistant Professor, Department of Business
Administration, College of Engineering & Technology, Bambhori, Jalgaon-425001, Maharashtra, India
*Professor & Head, Department of Management, KCE’s College of Engineering & Technology, Bambhori,
Jalgaon-425001, Maharashtra, India.
Abstract
This paper reviews the impact of the spending on
hoteling by the individuals. The rural area is being
considered for the review. The global hotel industry
comes in an rising growth trail since from 2000 just
because of the accelerated growth in the share market,
high performance in the supply chain and demand for
luxury facilities and other fundamentals available for
the hoteling. Investors have displayed great confidence
in the interest of the investments in hotel sector. Despite
the growing popularity, many investors and lenders
consider investments in hotel industry as an alternative
source of income and sustain into the market. Recent
trends in perception of hoteling and spending pattern of
individuals are changing constantly day by day. Many
changes are derived as per the financial condition of the
individuals. The recent economic turmoil in Asia will no
doubt produce new challenges, as well as opportunities.
Those who belong to the higher income family, the
spending on luster life gets change. So the hotel owners
and or hospitality industry has to keep their eyes open
and look outside the world for recent trends in the factor
of development and subject to the need of the individual
customer. This research paper tried to focus on the
changes in spending pattern due to the recent trends in
the hotel industry in rural area like Jalgaon region.
Keywords: Hoteling, spending perception, trends in
hotels, tourism.
I.
INTRODUCTION:
The Indian hotel industry is promising to rise as one of
the key sector driving growth in the services sector of
Indian industries. The future of the hotel industry has
always been linked to the future of the tourism industry
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in India. Hotel industry has recorded the highest growth
by the inflow of foreign tourists as well as increased
tourist movement within the country and it has become
one of the leading players in the global.
In India the prospects of the hotel industry drives with
the change in the spending pattern and perception of the
individual towards the hoteling. The foreign tourists as
well as the local visitors are now a days becomes more
demanding due to the increase in the income level and
status. Way back before 30 years there were no such
requirements about the hoteling. But as the time
changes, there are frequent changes in the perception of
the individual customers towards hoteling. Hence due to
the frequent changes in the demand of the customers, the
hotel industry also shown the progress in the
innovativeness in their area. As said earlier, in way
back, customers of hotels generally prefer for the
snacks, lunch dining or stay as tourist. But now days,
peoples are shown the interest in hotels as a span for
freshness, relaxation of the physic, official work etc.
Categorization of Hotel industry in India
According to the recent trends in the perception of the
individual customers, hotel industry has now
distinguished into various parameters. Hotels are
basically categorized as per the location. Hence it has
mainly the following categoriesHeritage
These types of hotels reflect the old glory and grandeur
of India, they are mostly the old havelis and mansions of
ancient times which have been turned into Heritage
Hotels, these provide tourists with an opportunity to
experience royal pleasure in traditional ambiance. They
mostly concentrate in the princely states of Rajasthan,
Delhi, and Madhya Pradesh
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Luxury
These Hotels are equipped with world class
infrastructural amenities, they offer the tourists with a
fine lodging and dining experience. They extend a warm
welcome to the customers catering primarily to the
upper class executives.
Budget
These kinds of Hotels are like home away from home,
they accommodate customers from upper middle and
middle class. Mostly named as Economy Class Hotel,
Business Hotels and Discount Hotels, the Budget Hotels
supports the modern infrastructural facilities for a
comfortable and pleasant stay.
Resorts
Resort hotels in India are mostly found in hill stations
and sea side tourist destinations. These are located
amidst natural scenic beauty, they are the ideal place to
enjoy some valuable time with family and friends or in
solitude.
the opulent luxury of royal palaces and five star deluxe
hotel suites.
In recent years the Indian government has taken several
steps to boost travel & tourism which have benefited the
hotel industry in the country. The initiatives by the
Government include the abolishment of the inland air
travel tax of 15% to 8%, reduction in excise duty on
aviation turbine fuel and removal of a number of
restrictions on outbound chartered flights, including
those relating to frequency and size of aircraft. Indian
Hotel Industry has been booming business and has also
given a boast to tourism business in the country.
Radisson Hotels India, Taj Group of Hotels, Park Group
of Hotels and ITC Hotels are some of the known hotels
in the hotel industry that are famous for unique
amenities and superb accommodation arrangements.
Recent developments in Indian Hotel Industry:
Indian Hotel Industry holds a special place in the
international world of hospitality. India is culturally the
country which would be very well having the most
diverse places in the world.. In India Hospitality is a
long running tradition. Whether it might be the majestic
Himalayas and the stark deserts of Rajasthan, or the
beautiful beaches and lush tropical forests, to idyllic
villages and bustling cities, Indian land offers unique
opportunities for every individual preference. Indian
Hotel Industry has the best staff for hotels unlike
employees in East Asian hotels who are charming and
gracious, Indian staff is also grooming themselves to
take initiative and discretion of decisions on the spot.
Most are better educated and speak better English than
their East Asian counterparts.
Today the accommodation options throughout India
have become extremely diverse and unique from home
stays and tribal huts to stunning heritage mansions and
maharaja palaces. It could be From Kashmir to
Kanyakumari, from Gujarat to Assam; there are
different cultures, languages, life styles, and cuisines.
This variety has reflected and increased by the many
forms of accommodations, ranging from the simplicity
of local guest houses to the government bungalows to
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II.
LITERATURE REVIEW
Growth of Hotel Industry in India: The Indian tourism
and hospitality industry has emerged as one of the key
drivers of growth among the services sector in India.
The third-largest sub-segment of the services sector
comprising trade, repair services, hotels and restaurants
contributed nearly US$ 187.9 billion or 12.5 per cent to
the Gross Domestic Product (GDP) in 2014-15, while
growing the fastest at 11.7 per cent Compound Annual
Growth Rate (CAGR) over the period 2011-12 to 201415.
Increase in foreign arrivals: The Indian hotel industry is
highly fragmented with a large number of small and
unorganized players accounting for a lion's share. The
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International Conference on Global Trends in Engineering, Technology and Management (ICGTETM-2016)
major players in the organized segment include Indian
Hotels Company Ltd, Hotel Leela Venture Ltd, EIH Ltd,
ITC Hotels and ITDC.
The industry is likely to experience robust growth on the
back of rising disposable incomes and favorable
industry statistics. The market is estimated to reach US$
30 billion by 2015. The world travel & tourism council
reported the following figures regarding the tourism
sector.
•Over 7.757 million foreign tourist arrivals were
reported in 2015
•Foreign tourist arrivals increased at a CAGR of 7.1 per
cent during 2005-15
•By 2025, foreign tourist arrivals are expected to
increase to 15.3 million, according to the World
Tourism Organization
According to Ravi Raheja, MD, Raheja Group,
“Consumers don't want to experience shopping, they
want to shop for experience. Major factors influencing
the increase in spending categories include rise in
disposable incomes, increasing number of dual-income
nuclear families and changing attitudes toward
consumption.
III.
HISTORY OF KHANDESH REGION
History: Khandesh was ruled by the Faruqi dynasty from
1388 to 1601 with capital at Burhanpur, who maintained
their independence from the Bahmani Sultanate which
ruled much of the Deccan from the fourteenth to the
sixteenth centuries. Asir and Burhanpur were conquered
by the Mughal emperor Akbar in 1601, and Khandesh
became a province of the Mughal empire. It was
conquered by the Marathas in the early eighteenth
century, and ruled by the Maratha Peshwas until their
defeat in the Third Anglo-Maratha War in 1818. After
1818 Burhanpur became the part Central province and
Khandesh (Jalgaon, Dhulia).
Geography
Jalgaon is located at 21.01°N 75.56°E It has an average
elevation of 209 metres ( feet). The city is served by
several
major
rail
lines
with
routes
to Mumbai, Nagpur, Delhi and Surat. It lies on AH 46
Asian highway 46 connecting it to, Dhule
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Surat and Dhaka,
Bangladesh via Kolkata.The Ajanta
Caves are located about 55 km to the south of Jalgaon,
and the Yaval Wildlife Sanctuary is about 32 km to the
north.
Demography
As per provisional reports of Census India, population
of Jalgaon in 2011 is 4,60,228; of which male and
female are 2,40,590 and 2,19,638 respectively. Jalgaon
has an average literacy rate of 76%, higher than the
national average of 59.5%: male literacy is Last but not
the least, jalgaon is famous for the Gold quality and
designs. Jalgaon is often known as the "Banana Capital"
of India. Jalgaon district produces more than 16% of
India's bananas and thus 3% of world banana production
happens in Jalgaon.
Major tourist spots & Cultural heritage of Khandesh
region
Jalgaon is near the world famous Ajanta Caves and is
one of the key attraction places for tourists all around
the World. It is a major business centre for tea, gold,
pulses, cotton and bananas.
Tourism in Jalgaon district offers a number of beautiful
sights to the tourist. There are many places for the
visitors to choose from, ranging from forts, places of
natural beauty and even a number of temples for the
pilgrims. These include the Sri Padmalaya temple, Saint
Muktabai temple and the Changdeo Temple among
others.
Hotel Industry around Khandesh Region
There are several hotels available in this region as far as
the travel & tourism is concern.
Following are the major hotels tha are listed for the
various purpose
Hotels in
Jagaon:
Hotel Maitreyas
Hotel
Silver
Palace
Hotel
Royal
Palace
Hotel Heaven
President
Cottage
Kewal Inn Hotel
Hotel Plaza
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Hotels in Dhule
Hotel Krishnai
Hotel Jhankar
Palace
Residency Park
Hotel
Hotel Rasraj
Hotel Residency
Park
Hotel
Dreamland
Hotel
Amit
Plaza
Hotels in
Nandurbar
Heera Executive
DSK Residency
Hotel
Gopi
kamal
Karan Hotel
Hotal
Nisarga
Park
Kanyadan Hotel
Kaushambi
Hotels
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International Conference on Global Trends in Engineering, Technology and Management (ICGTETM-2016)
Hotel Padmapani
Park
Hotel
Dev
Heights
Hotel Manas
Hotel Minerva
IV.
Hotel Ashish
Hotel Gaurav
Hotel
Lodge
Hotel
Palace
Swagat
Pritam
RECENT
TREND
INDUSTRY:
Tehri-garwal
Hotel
Bageshwar
Hotel
Champawat
Hotel
Goperswor
Hotel
IN
Transport
Travelers an often select from a diverse range of modes
of transport. Depending on where they are traveling to
they can walk, cycle, or use a car, coach, ship, train or
aircraft. The various forms of transport have different
impacts on the environment. Obviously walking and
cycling have the
least negative impacts on the
environment because no fossil fuels (oil, coal, gas) are
burned and hence no green house gas emissions occur.
HOTEL
Freshness of food served
Many diners are now said to be more health conscious
Modern-day travelers see luxury more and more in the
storytelling of having an experience rather than in
luxury items. So in order to provide aal these facilities to
the visitors, the hotel industry has to follow the recent
trends. These are as follows;
Concept hotels (Special Purpose Hotels)
Concept hotels are usually the small hotels which have
typically between 10 and 100 rooms in unique settings
with upscale accommodations. Featuring eye-catching,
colourful interior design, each hotel typically has a bar,
buffet restaurant and swimming pool. Free Wi-Fi is also
available in the lobby.
Changing Demand:
Travellers today don’t want to feel like they are in a
corporate setting, but thrive in environments where they
can interact with people, be it face-to- face or virtual.
They want everyone to participate.
Globalization:
There are more like-minded people who think in similar
ways;
Brands are everywhere and you don’t have to go far to
find them;
Cultural variety is diminishing;
Solutions are becoming more universal.
Technology:
Technology makes things easier and has led to an
explosion of information, Social media is used daily.
User-recommended feedback is becoming increasingly
important and Internet forums are providing increased
transparency.
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and they are interested in meals that are made from fresh
ingredients and that are prepared under hygienic
conditions. Hygiene in food storage and preparation is
very important. Most tourists would be reluctant to order
a meat dish in a restaurant after seeing meat stored on an
open cart. How food is displayed will also impact on the
enjoyment diners get out of food consumption.
Whether Hotels Adapting?
Now a day’s hotels are adapting these trends. it seems
that many hotels have changed over the last decades still
consisting of the same in-room amenities, the same
heavy curtains & furniture’s, the same check-in process,
the same small desk, and so forth. This is no longer a
place where the modern-day traveler feels at home.
Customers Spending pattern
Consumer spending is nothing but the purchasing of the
product or services by the individual or a family.
Growth in the demand for goods and services is the key
factor of the growth of Indian economy over the past 20
to 30 years. Consumer spending is measured in terms of
the National Income. As per the salary or the total
monthly income is considered, the individual is bound to
spend their income on the priority basis. The individual
has to keep in mind the inflow and outflow of the
money. Inflow and outflow of the money is variable as
per the type of income. Every individual is categorized
in a special group of income level. He/she has to look
after the expenditure and income balance throughout
his/her life. Hence in order to maintain the balance, the
researcher has made a distinguished category by five
levels of income as mentioned below.
a) Rs. 5,000 to 20,000
b) Rs. 20,000 to 40,000 c)
Rs. 40,000 to 60,000 d) Rs. 60,000 and Above
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International Conference on Global Trends in Engineering, Technology and Management (ICGTETM-2016)
Consumer spending can be categorized into regular
spends and lifestyle spends. Regular spending includes
the basic necessities of life, while lifestyle spending
includes spending on a computer, internet, car, cell
phone, etc. Analysis of consumer spending in the past
10 years reveals that the average consumer has been
spending on an increasing number of different goods.
There are a number of factors affecting the consumer
spending pattern in India; these include growing income
levels resulting in more disposable income with
individuals, changing attitudes towards consumption,
changes in prices, introduction of new products,
availability of credit such as loans, mortgages and credit
cards, rising aspiration levels, increased literacy,
growing brand consciousness and rapid urbanization.
VI.
i.
DATA
ANALYSIS
INTERPRETATION:
Income Level of Respondents:
AND
Fig. 1. Income Level of
Respondents
18
25
5000-20000
20000-40000
40000-60000
25
32
60000 & Above
Interpretation:
V.
RESEARCH METHODOLOGY
Type of Research:
It is a survey research method collecting actual facts and
figures. It is descriptive in nature using both primary and
secondary data. Secondary data is used to conceptualize
the type of individual and its spending patter and the
recent trends in the hotel industry. Primary data is used
to collect actual scenario regarding the future prospects
of the hotel industry in the field of travel & Tourism
sector.
In above chart, the income level of the respondents is
shown. The respondents from the level Rs. 20,00040000 is maximum ie. 32.
ii. Preference for Spending
Fig. 2. Preference for Spending (%)
Health
15%
saving
36%
Types of Data:
Primary data: the researcher had collected the
primary data through structured questionnaire
methods. Primary data includes the type of
customer (Individual) and its income level,
type of spending, no of times opt for hoteling,
and some other facts about spending on
hoteling and other needs.
Secondary data: Secondary data were
collected through various sources such as
Website reports, hotels broachers etc.
Sample Size: the researcher has used Random
sampling method for individual customers from
all across the Khandesh region. Researcher had
taken 100 customers from each district and
from various fields for the survey.
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Entertain
ment
13%
Apparel
13%
Food
23%
Interpretation:
From the above fig. No. 2. It’s very clear that customers
are very keen in managing the spending from the
income. Customers have very wisely used the
techniques of spending in the four heads.
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iii. Average Spending on Hotel per month:
Fig. 3. Avg Spending on Hotel
Upto Rs. 2000
Rs. 2000-4000
Rs. 4000-6000
Above Rs. 6000
3% 3%
26%
68%
Interpretation:
From the fig. no. 3. The maximum customers spend
around Rs. 2000/- from their income.
iv. Avg. visit for Hoteling.
Avg. No. 4. of Visits for Hoteling
1
2
3
more than 3
v.
As we know that the cities like Pune and Nasik
has developed a lot as compared to the Jalgaon
city. Hence in order to catch the market of
tourism, there should be more focus to catch
the tourist to turn towards Jalgaon
vi.
Digital Hospitality- Today’s guests tend to be
“multi-connected,” with online access at home,
at work and on the road. They are equipped
with latest-generation smartphones and tablets,
whose popularity is rapidly and steadily
growing. To respond to this revolutionary
change in behavior, Accor has deployed
innovative solutions at every stage of the guest
experience.
VIII. CONCLUSION:
Trends in perception of hoteling and spending pattern of
individuals are changing constantly day by day. Many
changes are derived as per the financial condition of the
individuals. Those who belong to the higher income
family, the spending on luster life gets change. So the
hotel owners and or hospitality industry has to keep their
eyes open and look outside the world for recent trends in
the factor of development and subject to the need of the
individual customer.
12%
37%
15%
IX.
1.
36%
2.
3.
4.
5.
REFERENCE:
Trends in Consumer Spending, 1959–2000 By Larry R.
Moran and Clinton P. McCully March 2001
(Indian Mirror, 2014)
(tourism hospitality, 2015)
(Hospitality, 2013)
(McGuire)
Interpretation:
From the above fig. no. 4., majority of respondents are
visiting the hotels are once and twice in a month.
VII.
FINDINGS:
As far as the future development of hotels in jalgaon is
concern, the policy of tourism must concentrate on
i.
ii.
iii.
iv.
Concept of garden hotels & restaurants for
family and other occasional functions.
Scope of hotels in improving the no of Beds.
Focus on 4 lane.
Use and focus on Airport facility.
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