The hotel industry in India plays a vital role in the revenue of a country and can boost its economy. For financial power and stability, it is important to contrive a way to stay ahead of the forthcoming competition.
SWOT analysis provides a proper structure to frame the outcomes which the business wants for better investment and booming results. The swot analysis of hotels helps to decide the pros and cons while doing changes in the field of architectural development, investment, etc. The crucial study will build opportunities for deep-rooted hotel business.
Related:– GST For the Hotels Industry & Its Impact
Elements of SWOT Analysis of the hotel industry in India
SWOT analysis is a methodology tool for strategic planning which can be described as Strengths, Weaknesses, Opportunities, and Threats facing by the organization. It is a key tool to conduct the complete evaluation of the internal and external factors which will help for decision making with the outputs.
STRENGTHS
This tool used to identify the competition in the market which can help to successfully run the business. It will support the hotel industrialist to stand out from the competitors. All the component which should be cover in this analysis are Hospitality services , Online booking facilities, Hotel location, Safe Environment etc.
India has 1000 plus internationally known 5 to 7 stars’ hotels which lend to the tourism sector to contribute 9.7% GDP in the countries economy.
In India, the local economy and tourism sector is dependent on hotel businesses which can be facilitated by building up the good infrastructure within the safe environment for the customers to stay. By interconnecting the diverse services for the tourist so that it will become easy to access the products like adventure, adventures, medical aids, rural area traverse, cultural tourism etc.
For revenue gain, a budget-friendly staff management during the capital investment can give a higher profits and cut the labour-cost.
The hotels located around UNESCO World Heritage sites gets 5-year tax holiday for hotels which has aided high growth for Indian hotel industry.
Travelling related facilities like domestic travel, business travel, corporate discounts and attractive offers have been acted as the primary driver of the sector’s growth.
WEAKNESSES
Assessment on your weaknesses is as prominent factor to study as your achievements. Review of the hotel functioning can be carryout by the customers’ feedback.
Underlines are the examples of weaknesses of a hotel business are high cost of products and services, infra-cost, digital inactivity like Low online reviews, lacking behind in essential facilities, untrained staff, Outdated technology, unjustified budget comparison by the provided amenities.
The unplanned cost management like price of land is higher than the infrastructure and location which is most important component to scrutinise before the business setup.
The hotel’s capital intensive plagued by high cost of borrowing, or by maze of licenses which should be monitored and managed accordingly.
In India, most of the states experience seasonal changes which affect the local business which also affects the tourism which is directly proportional with the hotel industries. The annual budget computation can solve the the revenue loss.
Incompatible services by the world standards should be fixed like infrastructure, facilities to ease the stay or fail to make the trip memorable.
OPPORTUNITIES
This tool can be use as a project fixer against your competitors. Selling or promotional strategies, statement or Uniqueness in the business, digital friendly, Improved service delivery, Flexible Pricing, wellness planning are the market trends which should be improved for the business profit.
Provide a technology support for hotel industry growth. It will ease the business during the Foreign Tourist Arrivals between the staff and the customers.
As the India is gearing up for world’s international tourist which will be 2 per cent share by 2025, the hotel industry should resolved the demand-supply gap.
To upgrade the business facilities, the gauging of freshly introduced policies by the government related to visa, medical tourism become crucial to follow.
Locality of hotels in India can also count as one of the prime factor for investment as high budget investments take place in the Tier I towns than Tier II towns as it attract more tourists.
THREATS
Treats scanning is essential as other three analysis tools which can rectify the existing issues in the Hotel business. The harm in service delivery, operations, revenue generation, infrastructure of your hotel should be sew up .
In India, seasonal tourism, like in Rajasthan, Kedarnath etc, can put down your business by holding profit so the raised demand of spending during this period should be iron out. Here’s a list of common threats that hotels face:
- High turnovers, Parking Area problems, theft, high taxation, labour grievance and untrained staff, terrorism etc are the elements which can impair the hotel industry.
- Threats like Cheaper hospitality services like motels become trendy which is now the primary threat to the hotel industry for which the international standard should be followed by the sectors.
- Untrained and lack of sufficiently skilled laborer’s jeopardizes the service.
- International brands are spreading there business in this sector which posing threat to Indian hotel industries.
- Turmoil in the country’s politics and civic issues also affects the tourist traffic in adequately which should be monitored.
- Old school mindset related to up to-date data on the sector and digitization is the major setup for the sector.
High quality research should be done and investment toward this component is the key to get a clearer and more precise idea of the trends in the hotel industries in India.
Conclusion, the SWOT analysis will help to sort out the present and future hurdles in the hotel business, open the pathway for successful business. To run the hotel business in India more effectively, a checklist should be made with this assessment tool for a clear evaluation of business outcomes.
