ISSN No - RBS

The hotel industryof India is one ofthe lаrgеѕt foreignexchange earner forIndian economy. Ithas been sub-dividedinto eight segmentsby the ministry oftourism as viz., 5-star deluxe; 5-star;4-star; 3-star; 2-star, and 1-starrespectively, heritageand unclassified.Table 1 “Comparative Growth of India’s Tourism”Criteria Year India South Asia World1.4: Some Manifestations onHotel Industry of India:The hotel industry of India is one ofthe lаrgеѕt foreign exchange earnerfor Indian economy. It has been subdividedinto eight segments by theministry of tourism as viz., 5-stardeluxe; 5-star; 4-star; 3-star; 2-star,and 1-star respectively, heritage andunclassified. But, the 3-star, 2-star,1star and unclassified hotels in Indiaare extended асrοѕѕ India in a highlyfragmented way whereas, theupscale, mid-market and heritagecategories are highly organized thatare primarily present in the metrosand the tier 1,m and now tier 2 citiesfor expansion. It іѕ characterizedsignificantly by small unorganizedplayers, labor-intensive operations,seasonality, cyclicality, highly capitalintensive nature and highly sensitiveto the external factors like economy,terrorism and political status. One ofthe key reasons for rising demand forhotel rooms in India is positive growthof number of sectors such asinformation technology, telecom,retail and real estate(www.financialexpress.com). Therewas a decline in income in top line andbottom line, the cost of hotel industrywent up by 20 per cent during quarter[In Percentages]Growth In Personal Travel & Tourism 2009 6.0 5.1 -2.92019 7.6 7.3 3.8Growth In Business Travel 2009 -4.2 -3.6 -7.22019 7.6 6.8 3.6four, financial year 2009 as comparedto the quarter three, financial year2009. The hotel companies such astajgvk hotels & resorts limited haveregistered decline in net profit by41.49 per cent in quarter fourfinancial year 2009 as compared to thequarter three financial year 2009followed the jaypee hotels limitedwhich registered decline in net profitby 44.86 per cent during the sameperiod. The other hotels which haveregistered sizable decline in net profitwere oriental hotels limited (28.34 percent), jindal hotel limited (58.12 percent) and Howard hotels limited(57.28 per cent) respectively. Themaximum rise was incurred by Asianhotels limited (11.57 per cent)followed by jay pee hotels limited(10.85 per cent) and tajgvk hotels &resorts limited (8.30 per cent). Theemployee cost of hotels also registereda rise in the total expenditure duringthe period. The employee cost of hotelsrose by average 7.47 per cent inquarter four, financial year 2009 ascompared to the quarter three,financial year 2009. The hotels thatwitness maximum rise in employeecost include Asian hotels limited(24.91 per cent), tajgvk hotels &resorts limited (24 per cent), Howardhotels limited (21.65 per cent), ishwar[ 178 ] Rai Management Journal