Minor Project Report

On
Hotel Industry Analysis

Submitted to Dr. Bhim Rao Ambedkar University, Agra

(In the partial fulfilment of the requirements of the BBA program 4 th Semester)

Supervisor: Submitted By:

Dr. Ishika Agarwal Tanishka Jain
2200035070070
BBA 4th semester

FACULTY OF MANAGEMENT
St. JOHN’S COLLEGE, AGRA

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 Acknowledgement

I would like to express my gratitude and appreciation to all those who

gave me the possibility to complete this project. I express my deep
sense of gratitude to Prof. S.P.Singh, Principal St. John's College Agra
for allowing me to make this project.

I am very much thankful to Dr. Vinny Jain, Coordinator, Department of

Management, for her supervision. Special thanks to my mentor Dr.
Ishika agarwal whose help, stimulating suggestions helped me in all
time of fabrication process. I also sincerely thank her for the time spent
on proofreading and correcting my mistakes.

I would also like to acknowledge with much appreciation the crucial

role of all other faculty members of the Management department for
their utmost support.

Sincerely,

Tanishka Jain

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 CERTIFICATE

This is to certify that the Project title Hotel Industry Analysis

submitted by Tanishka Jain for the partial fulfilment of the
requirement of Bachelors of Business Administration Degree
(Session 2022-2025) as per the requirements of BBA
curriculum from St. John’s College, Agra, embodies the
bonafide work done by her under my supervision.

Signature of Guide

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 TABLE OF CONTENT

Hotel Industry (Analysis)

About Hotel Industry __________________________________________05

Overview Of Hotel Industry In India ______________________________07

GDP Contribution _____________________________________________09

Market Size __________________________________________________13

Market Trend _________________________________________________15

Export / Import ________________________________________________17

Challenges And Opportunities ____________________________________19

5 Year Trend __________________________________________________20

General Contribution To Indian Economy ___________________________23

Major Players Of Hotel Industry __________________________________25

Lemon Tree Hotels (Company Analysis)

About Lemon Tree Hotels _______________________________________29

Environmental Analysis _________________________________________30

SWOT Analysis _______________________________________________32

Conclusion

Refrences

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 ABOUT HOTEL INDUSTRY

The hotel industry represents a dynamic and multifaceted sector within the global economy,
comprising a vast array of businesses dedicated to providing lodging, accommodation, and
associated services to travelers, tourists, and individuals seeking temporary residences. With
its roots dating back centuries, the modern hotel industry has evolved into a complex ecosystem
characterized by a diverse range of establishments, from small, family-run bed-and-breakfasts
to expansive luxury resorts and internationally renowned hotel chains. This industry plays a
pivotal role in facilitating travel and tourism, serving as vital infrastructure for both leisure and
business travelers worldwide.

At its core, the hotel industry revolves around the concept of hospitality, which encompasses
the provision of comfortable accommodations, personalized services, and memorable
experiences for guests. Hospitality establishments, including hotels, motels, inns, and resorts,
typically offer a variety of amenities and facilities to cater to the diverse needs and preferences
of travellers. These may include guest rooms and suites equipped with essential amenities such
as beds, bathrooms, and televisions, as well as additional services such as room service,
concierge assistance, and recreational facilities like pools, spas, and fitness centres.

In addition to lodging and accommodation services, the hotel industry encompasses a wide
range of ancillary services designed to enhance the guest experience. These may include dining
options such as restaurants, cafes, bars, and room service, as well as event and conference
facilities for business meetings, conventions, weddings, and other gatherings. Many hotels also
offer leisure and recreational activities, ranging from guided tours and excursions to cultural
events, entertainment, and wellness programs.

The hotel industry operates within a competitive and dynamic marketplace shaped by a variety
of factors, including economic conditions, consumer preferences, technological advancements,
and regulatory environments. In recent years, the advent of online booking platforms and the
proliferation of digital marketing channels have transformed the way hotels attract and engage
guests, driving increased competition and innovation within the industry. Moreover, the
emergence of trends such as sustainable tourism, experiential travel, and wellness-focused
accommodations has prompted hotels to adapt their offerings and business practices to meet
evolving guest demands.

Despite its resilience and adaptability, the hotel industry is not without its challenges and
vulnerabilities. Economic downturns, natural disasters, geopolitical instability, and public
health crises, such as the COVID-19 pandemic, can significantly impact travel patterns and
consumer behaviour, posing operational and financial challenges for hospitality businesses of
all sizes. Furthermore, the industry faces ongoing issues related to workforce management,
environmental sustainability, infrastructure development, and regulatory compliance, which
require proactive management and strategic planning to navigate effectively.

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In summary, the hotel industry represents a dynamic and diverse sector that plays a vital role
in facilitating travel and tourism while providing essential services and experiences for guests
worldwide. Through its focus on hospitality, innovation, and adaptability, the hotel industry
continues to evolve and thrive in an ever-changing global landscape, meeting the needs and
expectations of travellers while contributing to economic growth and cultural exchange on a
global scale.

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 OVERVIEW OF HOTEL INDUSTRY IN INDIA

India is considered one of the world’s most popular holiday destinations. It provides adequate
accommodation across different styles of hotels. Many hotels and resorts in India have arisen
to help serve the need for accommodation. You are littered with hotels that suit many people’s
budgets. In India, there are many hotels open, from all kinds of hotels Luxury Hotels to
Affordability Hotels in India, which serve as a guide to helping people find a suitable
accommodation.

India’s hotel industry is volatile and cyclical. Both are interlinked, and the environment and
locations rely on the market and amount of industry. To explain this, visitors visit beaches in
India mainly in summer owing to temperature and holiday conditions. The growth drivers of
the hotel industry are place, company, environment, leisure, leisure travellers and other
travellers.
India’s deeply fragmented hotel sector is dominated by small and medium-sized owner-owned
businesses.

With the UK and France, chain hotels will now be branded as national or multinational in
charge of several of the world’s best-known chain and designer hotels. An alternate approach
to classification in the form of loyalty programmes has started by examining the role of hotels
in terms of two major aspects of loyalties systems. Firstly, the quality of their knowledge and
the degree to which they may or choose to tailor their offerings to help suit the needs of
particular consumers.

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Travel and tourism demand in India is projected to rise by 8.2 percent in 2010 and 2019. It
predicts India to be the third largest employer in the world, and potentially the second largest
employer worldwide. Capital spending in the Indian tourism and travel industry is estimated to
rise by 8.8% between 2010 and 2019. The study predicts that India will receive further
expenditure in this field and is predicted to become the fifth fastest-growing destination for
business travel between 2010 and 2020.

In the long run, the results look very good for the hotel market. Demand trends are expected to
increase as economic activity increases and travel expenses begin to climb. People’s standards
of well-paid salaries are strong in the business sector, which has raised disposable income,
especially on leisure travel.

The number of international visitors reached 6.2 million in 2011 and is forecast to exceed 11.1
million by 2021. The demand gap in India was perceived as very significant, increasing the
need for more hotels in most cities.

It exposed the scarcity of budget hotels and medium-sized hotels as travellers search secure
and inexpensive accommodation in India. The Indian hotel industry is rising in large numbers,
backed by major investment plannings that amounted to Rs 1.2 trillion in 2011 and is forecast
to cross Rs 2.8 trillion by 2021 showing a CAGR of 8.7% (ibid.).

The hotel industry is multinational by design and function. It is multi-dimensional,

internationally scalable and flexible in its aims. His profits are limitless. It constitutes a
significant segment of the Indian economy’s tourism infrastructure. It will hire its owner’s
family members or build thousands of workers. It may be a tiny or multi-million business. It
can be “work-intensive” and “capital-intensive.” Although in smaller environments the hotel
can run as successfully and efficiently as in large-scale national and multi-national activities.
It also has the ability to respond to conditions of no other economic operation.

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 GDP CONTRIBUTION

Ltribute $1.5 trillion to the economy by 2047, up from $65 billion in 2022, on the back
of a compound annual growth rate of 15% in the overall hospitality and tourism
industry. The total contribution of the wider hospitality and tourism includes related
services like food, beverages, and accommodation, and could create 53 million jobs by
2029, according to the report.

Being such a huge and wildly diverse country, India’s tourism industry has a lot to offer.
The country attracts all types of visitors in different niches – from business and religious
visits to the up-and-coming luxury, adventure, and eco-tourism.

Source: Benori, Vision 2047 Indian Hotel

Of the more than 6 million tourists that visited India in 2022 (a dramatic drop from the
pre-pandemic 17.4 million in 2019), the majority were domestic tourists, who largely
drive the nation’s tourism industry.

To reach $1 trillion, the sector must be able to count on the government for support.
There must also be a plan to increase international visits and the sector

needs to make more accommodations in India’s smaller and less developed cities.

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According to the report, domestic tourist visits are projected to rise from 677 million in
2021 to 1.5 billion by 2030 and 15 billion by 2047 in the long term. International visitors
are expected to reach 15 million by 2024, 25 million by 2030, and 100 million by 2047.

“The tourism industry is going through a significant transformation and technology has
helped us enhance customer engagements. Convergence of efforts at different levels
and collaboration between the government and private stakeholders will be the key to
the successful realization of the vision of creating jobs and contributing to the national
growth story,” said Puneet Chhatwal, the president of the Hotel Association of India.

Source: Benori, tourism stats 2022

Above all, the Indian tourism sector should prioritize recovering from the dramatic drop
in foreign tourist visits. The top visited states for foreign visitors in India are Punjab
(29%), Maharashtra (17.6%), and Delhi (9.5%), with the majority of those tourists
coming from the United States and Europe.

Around 40% of the foreign tourists that visited India last year were from the Indian
diaspora and some 20% were medical tourists

India's GDP to grow by 6.1% in 2023: IMF new forecast The report acknowledged that
the overall contribution considers services from related business sectors like food and
beverage, salons, and spas. However, it does not factor in speculative estimations
regarding service market expansion. The report attributes the projected increase to
factors such as GDP growth, increasing income levels, and higher numbers of domestic
and international visitors.

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The report forecasts an increase in domestic tourist visits from 677 million in 2021 to
1.5 billion by 2030, and an even greater surge to 15 billion by 2047 in the long term
(2037-2047). In terms of international visitors, the survey predicted 1.5 million arrivals
in 2021, followed by 15 million by 2024 and 25 million by 2030. The projection further
indicates a significant growth, attracting 100 million tourists by 2047.

"Our vision is that the accommodation growth will have to go to two-tier, three-tier

Source (basic data): OECD, IMF, RBI and EY preliminary estimates Note: MX Indicates
market exchange rates.
cities and also to the rural areas because real tourism is going to be one major plank of
the future tourism because tourists are looking for new experiences," he asserted.
Bezbaruah also reiterated the need for giving industry and infrastructure status to the
sector, saying it would help in the development of more rooms in order to bridge the
demand and supply gap. The hotel industry in India has been a significant contributor
to the country's GDP. particularly in the tourism sector. While specific figures may vary
depending on the source and the year, the hotel industry's contribution to India's GDP
can be substantial. Here are some key points:
Direct Contribution: The hotel industry directly contributes to India's GDP through
various means, including revenue generated from room bookings, food and beverage
sales, and other hotel services. This direct contribution encompasses the revenue
generated by hotels, resorts, and other accommodation establishments.
Indirect Contribution: In addition to its direct impact, the hotel industry also makes
an indirect contribution to India's GDP through its supply chain activities. This includes
purchases of goods and services from local suppliers, such as food and beverage
suppliers, maintenance contractors, and transportation providers. The ripple effect of
hotel spending throughout the economy further bolster overall contribution to GDP.

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Employment Generation: The hotel industry is a significant employer in India,
providing jobs to a diverse workforce ranging from front-line staff to management
professionals. The employment generated by the hotel industry not only contributes to
individual livelihoods but also supports economic growth and consumption, thereby
indirectly contributing to GDP.
Tourism Sector Growth: India’s hotel industry is closely linked to the growth of the
tourism sector, as hotels and accommodation establishments cater to both domestic and
international travelers. The promotion of tourism through government initiatives,
marketing campaigns, and infrastructure development can further boost the hotel
industry’s contribution to GDP.

Investment and Infrastructure Development: Continued investment in the hotel

industry, including the development of new hotels, resorts, and hospitality
infrastructure, can drive economic growth and contribute to GDP expansion. Foreign
direct investment (FDI) in the hotel sector also plays a role in enhancing the industry’s
contribution to GDP.
While specific figures for the hotel industry’s GDP contribution in India may vary
over time and depending on the source, its overall significance in supporting economic
growth,
Employment generation, and tourism development is widely recognized. Efforts to
promote tourism, improve infrastructure, and enhance the competitiveness of the hotel
industry can further amplify its contribution to India’s GDP in the years to come.

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 MARKET SIZE

The Hospitality Industry In India Market size is estimated at USD 247.31 billion in 2024, and
is expected to reach USD 475.37 billion by 2029, growing at a CAGR of 13.96% during the
forecast period (2024-2029).

India has been successful as a leading global destination for leisure and business travelers,
which has undoubtedly positively impacted the country’s hospitality sector.

Source: Mordor Intelligence

Study Period 2020 – 2029

Base Year For Estimation 2023

Market Size (2024) USD 247.31 Billion

Market Size (2029) USD 475.37 Billion

CAGR (2024 – 2029) 13.96 %

Market Concentration Medium

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India’s attractiveness as a global travel destination has been further enhanced by its geopolitical
stability, world-class infrastructure, and commitment to hosting international events. Therefore,
these factors contribute to the growth of the tourism industry and, as a result, keep the
hospitality industry firm.

India’s domestic tourism has shown remarkable resilience and strength, and an increasing
preference for staycations among Indian residents has been noticed. This preference for
staycation is driven by several factors, including convenience, safety, and the opportunity to
discover hidden gems within India.

The growth rate of the hospitality and tourism sector has seen a notable increase. India is
included in the list of the top 100 countries with favorable conditions for conducting business
(EoDB) and holds the first globally regarding greenfield FDI ranking. To enhance the cruise
tourism industry, the Government of India (GoI) has chosen to develop the Chennai, Goa,
Kochi, Mangalore, and Mumbai ports as cruise tourism hubs. These ports will have various
amenities such as hospitality services, retail outlets, shopping centers, and restaurants.

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 MARKET TREND

Increase in the Number of Hotel Projects is Driving the Market

India's hospitality sector has experienced a notable boost due to the surge in hotel projects. The
industry saw an increase in occupancy rates ranging from 60-67% compared to the previous
year. Despite this, average rates (ARR) have fully recovered, showing a significant rise of 37-
39 % from the prior year. Consequently, Revenue per Available Room (RevPAR) has seen a
remarkable growth of 89-91% in the current year compared to the previous year.

Driven by a robust rebound in demand, hotel companies have expedited their expansion
strategies this year, leading to a more than 35% increase in brand signings by keys compared
to the previous year. According to the TopHotelProjects construction database, India is set to
welcome 481 projects with 57,879 rooms. For example, IHCL aims to incorporate 8,700 rooms,
while LTH plans to add 2,600 rooms by FY26. Additionally, Marriott International anticipates
opening 12 hotels in India this year, contributing around 1,200 rooms to the hotel chain's
current portfolio in the country. Radisson Hotel Group has also extended its footprint in India
by signing 21 hotels across nine brand portfolios last year. Hoteliers have been expanding their
presence in leisure destinations and Tier-3 and -4 cities, acknowledging the vast untapped
potential in these regions.

Moreover, during India's G20 presidency until November 2023, over 200 G20 meetings were
held in 55 different locations nationwide. This significantly benefited the Indian hotel sector,
as there was a notable increase in demand for hotels in the cities hosting these meetings.

Source: Ministry of Tourism: Government of India

Government Initiatives to Attract More Tourism and Rise in Tourism is Driving the
MarketThe Indian hospitality industry is primarily fueled by strong domestic demand
and the Indian government’s renewed focus on expanding the tourism sector.
Recognizing the sector’s potential as a major employment generator, the government
actively promotes it through public-private partnerships and a mission-oriented
approach involving all stakeholders. The government plans to revive 50 additional
airports, heliports, and water aerodromes to enhance regional air connectivity. It also
aims to develop fifty tourism destinations as comprehensive packages for domestic and

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international tourists. The government’s continued emphasis on infrastructure
development, including significant railways and last-mile connectivity investments, is
expected to benefit the sector.
Moreover, the recent reduction in personal income tax will boost disposable income,
thereby driving demand in the tourism and hospitality sectors. The Ministry of Tourism
has undertaken a revitalization of its Swadesh Darshan Scheme as Swadesh Darshan
2.0 (SD2.0) and introduced the National Integrated Database of Hospitality Industry
(NIDHI) to facilitate digitalization and ease of doing business in the hospitality and
tourism sector. This initiative, now upgraded as NIDHI+, aims to include not only
Accommodation Units but also Travel Agents, Tour Operators, Tourist Transport
Operators, Food & Beverage Units, Online Travel Aggregators, Convention Centres,
and Tourist Facilitators.
The top states In terms of domestic visits in India are Uttar Pradesh, Tamil Nadu, Andhra
Pradesh, Karnataka, and Gujarat. India witnessed a promising recovery in the tourism
sector, with a notable rise in Foreign Tourist Arrivals (FTAs) from various countries.

Source: Ministry of Tourism: Government of India

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 EXPORT / IMPORT

❖ Export Scenario:

Hospitality services: india has seen a rise in the export of hospitality services in recent years.
This includes hotel management services, consultancy, and training programs provided by
Indian hospitality companies to international hotel chains and independent hoteliers.

Cultural Tourism: India’s rich cultural heritage and diverse tourism offerings have led to an
increase in foreign tourist arrivals, resulting in revenue generation for the hospitality sector.
Export of cultural experiences such as heritage hotel stays, culinary tours, and traditional
wellness therapies contribute significantly to the export revenue.

Medical Tourism: India is a popular destination for medical tourism, with state-of-the-art
hospitals and wellness centers attracting patients from around the world. Many of these
facilities are integrated with hotels or have tie-ups with nearby accommodation providers,
contributing indirectly to the export revenue of the hotel industry.

Event Management: India hosts numerous international events, conferences, and exhibitions
throughout the year. The hospitality industry benefits from providing accommodation, catering,
and event management services, thus contributing to export earnings.

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 ❖ Import Scenario:

Technology and Equipment: The hotel industry in India imports a range of technological
equipment and amenities to enhance guest experience and operational efficiency. This includes
high-tech kitchen appliances, room automation systems, energy-efficient HVAC (Heating,
Ventilation, and Air Conditioning) systems, and furniture and furnishings from international
suppliers.
Food and Beverage: Despite the rich culinary heritage of India, many hotels import specialty
food items, alcoholic beverages, and high-quality ingredients to cater to the diverse preferences
of their guests. Imported wines, spirits, cheeses, and exotic fruits are often featured on hotel
menus.

Luxury Brands: To cater to the growing demand for luxury accommodation, many hotels in
India import high-end furnishings, linens, toiletries, and amenities from international luxury
brands. This includes designer furniture, premium bedding, banded toiletries, and spa
products.Training and Consultancy: Some hotel chains in India seek expertise from
international hospitality consultants and trainers to upgrade their service stfandards,
management practices, and culinary offerings. This involves importing consultancy services
and training programs from renowned international firms.

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 CHALLENGES AND OPPORTUNITIES

Currency Fluctuations: The hotel industry in India is susceptible to fluctuations in the

exchange rate, which can impact the cost of imports and affect profit margins.

Customs and Tariffs: Importing goods and services into India involves navigating customs
regulations and tariffs, which can add to the cost and complexity of international transactions.

Opportunities for Growth: With the government’s focus on promoting tourism and
hospitality infrastructure through initiatives such as ‘Make in India’ and ‘Atithi Devo Bhava’
(Guest is God), there are ample opportunities for the hotel industry to expand its export
potential and reduce dependency on imports.

Strategic Partnerships: Collaborations with international hotel chains, tourism boards, and
hospitality associations can help Indian hotels access global markets and promote inbound
tourism, thus balancing the trade deficit in the hospitality sector.

While the hotel industry in India faces challenges in importing certain goods and services, there
are also significant opportunities for export growth through leveraging the country’s cultural,
medical, and event tourism offerings, as well as forging strategic partnerships with international
stakeholders.

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 5 YEAR TREND

Over the past five years, the hotel industry in India has experienced steady growth, fueled by
several factors. Domestic tourism has been on the rise due to increasing disposable incomes
and a growing middle class, leading to higher occupancy rates for hotels across the country.
Additionally, India has become an increasingly popular destination for international tourists,
driving demand for accommodations.

The emergence of online travel platforms has revolutionized the way hotels operate, providing
them with greater visibility and access to a broader customer base. This has led to increased
competition but also provided opportunities for hotels to differentiate themselves through
innovative services and offerings.

Source: Industry Sources and Hotelivate Research

The government’s focus on tourism infrastructure development, including initiatives such as

the Swadesh Darshan and PRASAD schemes, has further boosted the industry. These efforts
aim to improve connectivity, promote heritage tourism, and develop tourist circuits, thereby
attracting more visitors to different regions of the country. Despite the overall positive trend,
the industry has faced challenges such as fluctuating demand, regulatory issues, and
competition from alternative accommodation options like vacation rentals and homestays.
Hoteliers have had to adapt to changing consumer preferences by offering unique experiences
and leveraging technology to enhance guest satisfaction and operational efficiency.

Overall, while the hotel industry in India has seen growth over the past five years, it has also
undergone significant transformation driven by evolving consumer demands, technological
advancements, and government initiatives.

Over the past five years, the hotel industry in India has experienced both highs and lows. Here’s
a breakdown:

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• 2019-2020 Pre-pandemic Growth: Before the COVID-19 pandemic hit, the Indian
hotel industry was on an upward trajectory. Rising domestic and international travel,
fueled by a growing economy and increased disposable income among Indians, led to
a surge in hotel bookings and occupancy rates. Many international hotel chains were
expanding their presence in India, and domestic hotel brands were also flourishing.

• 2020 Pandemic Impact: The year 2020 brought unprecedented challenges to the hotel
industry worldwide, and India was no exception. The COVID-19 pandemic forced the
government to impose strict lockdowns and travel restrictions, resulting in a sharp
decline in hotel occupancy rates, cancellations of bookings, and a significant drop in
revenue. Many hotels were temporarily shut down, and the industry faced a severe
downturn.

• 2020-2021 Recovery Efforts: As the situation gradually improved and lockdown

restrictions were lifted, the hotel industry in India began its recovery journey. Hotels
adapted to the new normal by implementing enhanced safety and hygiene protocols,
offering flexible booking options, and catering to the needs of essential travelers, such
as healthcare workers and stranded tourists. Domestic leisure travel started to rebound,
albeit slowly, providing some relief to the industry.

• 2021-2022 Partial Recovery and Adaptation: Despite ongoing challenges posed by

sporadic waves of the pandemic and evolving travel regulations, the hotel industry
made further strides towards recovery in 2021 and 2022. With the rollout of vaccines
and increased consumer confidence, domestic travel picked up momentum, especially
during festive seasons and long weekends. Hotels also embraced technology-driven
solutions, such as contactless check-ins and digital amenities, to enhance guest
experience and safety.

• 2022-2023 Stabilization and Growth: By 2022 and beyond, the Indian hotel industry
aimed for stabilization and gradual growth. Continued vaccination drives, relaxed travel
restrictions, and pent-up demand for leisure and business travel contributed to the
industry’s recovery. Hotels focused on diversifying their revenue streams, exploring
new markets, and optimizing operational efficiency to withstand future uncertainties
and emerge stronger from the pandemic.

Overall, while the hotel industry in India faced unprecedented challenges over the past
five years due to the COVID-19 pandemic, it also demonstrated resilience, adaptability,
and a determination to bounce back.

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Source: Hospitality Market Size, Growth, global trend, Forecast to 2028

By 2028, international tourist arrivals are expected to reach 30.5 billion and generate revenue
of over US$ 59 billion. However, domestic tourists are expected to drive the growth, post-
pandemic. International hotel chains are increasing their presence in the country, and they will
account for around 47% share of the tourism and hospitality sector of India by 2020 and 50%
by 2022.

As per the Ministry of Tourism, Foreign Tourist Arrivals (FTAs) in October 2023 were
8,11,411. FTAs during the period January-October 2023 were 72,43,680 as compared to
46,55,160 in January-October 2022.

The percentage share of Foreign Tourist Arrivals in India during October 2023 among the top
5 ports was highest at Delhi Airport (34.74%) followed by Mumbai Airport (14.75%),
Haridaspur Land Check Post (9.03%), Chennai Airport (7.05%), Bengaluru Airport (5.71%).
FTAs during the period January-September 2023 were 6.43 million.

The percentage share of Foreign Tourist Arrivals in India during October 2023 among the top
5 source countries was highest from Bangladesh (21.41%), followed by USA (15.65%), UK
(11.27%), Australia (4.38%) and Canada (3.81%).

In 2023-24* (January-October), 24.97% of foreign tourists visited for Indian Diaspora which
marks 72,43,680 foreigners.

FEE during the period January-October 2023 were US$ 22.32 billion.
Domestic visitor spending increased by 20.4% in 2022, only 14.1% below 2019. International
visitor spending rose by 81.9% in 2022, but still 40.4% behind 2019 numbers.

Cumulative FDI equity inflow in the Hotel and Tourism industry is US$ 17.29 billion during
the period April 2000-September 2023. This constitutes 2.60% of the total FDI inflow received
across sectors.

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 GENERAL CONTRIBUTION TO INDIAN ECONOMY

Economic Factors Driving the Growth of Tourism and Hospitality Sector in India Tourism in
many places of India has increased in recent yeurs. Furthermore, foreign tourists from nations
with no direct border with India, such as the United States, the United Kingdom, and France,
have increased. A number of political upheavals in Europe have also resulted in an increase in
tourism in India. The hospitality business has seen remarkable expansion as a result of these
advances

Many factors are propelling the Tourism and Hospitality Sector in India forward. High
domestic income levels, a huge population base, a developing middle class population, and
rising urbanisation rates all contribute to higher disposable incomes. Furthermore, favourable
government policies supporting domestic and international travel, as well as low-cost airfares,
have aided the rapid growth of the Indian hotel business in recent years.

By 2028, India will have contributed $512 billion to its GDP and created 53 million
employment.

The travel and tourism industry contributed USS 121.9 billion to GDP in 2020, and it is
predicted to grow to USS 512 billion by 2028 Between 2019 and 2028, the industry’s direct
contribution to GDP in India is predicted to expand at a pace of 10.35 percent per year. The
Tourism and Hospitality Sector in India is predicted to earn $50.9 billion in tourist exports by
2028, up from $28.9 billion in 2018, By 2028, international visitor arrivals are predicted to
exceed 30.5 million. From an estimated USS 75 billion in FY20, India’s travel market is
expected to grow to USS 125 billion by FY27. In FY20, India’s tourism sector employed 39
million people, accounting for 8.0 percent of the country’s overall workforce. It is estimated to
employ almost 53 million people by 2029 Between April 2000 and June 2021, the hotel and
tourism sector received a total of USS 15.89 billion in FDI.

Growth Prospects for This Industry:

In today’s India, tourism is one of the most developed businesses. It employs over ten million
people, many of whom work in resorts, hotels, restaurants, transportation, and travel agencies
International interest has increased as a result of improved security in tourist locations such as
Goa, Rajasthan, and Kerala, as well as continuous economic growth, which has boosted
domestic tourism. The expanding middle class in India, along with increased demand from
foreign tourists, implies that the Indian hospitality business has lots of room for expansion.

Furthermore, rather than using traditional brick-and-mortar travel agents, contemporary own
rooms online. Self-booking Technology has made it easier for passengers to book their Gives
an opportunity for hospitality entrepreneurs wishing to create new businesses or grow Existing
ones by making them available online.

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Market Outlook for the Tourism and Hospitality Sector in India:

Many hotels have sprung up around the country in recent years, with hoteliers taking advantage
of the large number of domestic tourists travelling to picturesque regions like Kerala and Goa.
International travellers are also interested in visiting cities like Mumbai and Delhi, as well as
domestic tourism destinations since 2012, the number of international visitors has climbed by
10%, with tourism contributing for roughly 9% of India's GDP. Given that only 4% of Indians
travel overseas each year, the sector is anticipated to continue rising quickly.

Furthermore, nearly 1 billion people live within 3 hours of India's coastline, making it
extremely accessible for locals looking for quick weekend getaways. Furthermore, there are
numerous chances within India, domestic travel is significantly less expensive than foreign
travel Low-cost airlines such as Indigo, for example, offer tickets starting at Rs 1000 ($16),
with even cheaper pricing available on state-rum trains and buses.

Growth Drivers:

Incredible India Campaign: Expanding India's worldwide tourism business.

E-Tourist VISA4: E-visas are now available in 171 countries and are divided into five
categories: 'e-Tourist visa,' 'eBusiness visa,' 'e-medical visa, 'e-Medical Attendant Visa,' and e-
Conference Visa.' Infrastructure Development: The Ministry of Tourism spends more than half
of its budget on developing destinations, circuits, megaprojects, and rural tourism infrastructure
projects. Medical Tourism offers cost-effective therapy, high-quality healthcare infrastructure,
and highly qualified doctors. Coastal Tourism: Promote intra-regional trade among Indian
Ocean Rim (IOR) countries through coastal tourism.

Industry Developments: Infrastructure Development: Circuits, resorts, and hotels, among

other things Rural, adventure, medical, pilgrimage, film, and sustainable tourism are emerging
segments Meeting Incentives Conferences & Exhibitions is a business segment (MICE).
Packaged tour operators, transportation services, and recreational facilities are examples of
support functions.

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 MAJOR PLAYERS OF HOTEL INDUSTRY

The report on the Indian hospitality industry covers major international players and the leading
domestic players in the hotel and hospitality industry. The Indian hospitality sector is dynamic
and emerging. It holds greater potential to grow for national and international players interested
in entering the nation's hospitality industry. Some of the major players in the market include
Oberoi Hotels & Resorts, the Park Hotel, ITC Hotels, Lemon Tree Hotels, and Taj Hotels.

• Taj hotel: Taj Hotels is a chain of luxury hotels and a subsidiary of the Indian Hotels
Company Limited, headquartered in Mumbai, India. Incorporated by Jamsetji Tata in
1902, the company is a part of the Tata Group. The company employed over 20,000
people in the year 2010. The company has been ranked as the World's Strongest Hotel
Brand in 2022, and India's Strongest Brand as per Brand Finance Hotels 50 Report
2022 and India 100 Report 2020, 2022 and 2023.

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• Oberoi hotels & resort: The Oberoi Group is a luxury hotel group with its head
office in New Delhi, India. Founded in 1934, the company owns and operates
32 luxury hotels and two river cruise ships in 7 countries, primarily under its Oberoi
Hotels & Resorts and Trident brands. The group also operates The Oberoi Centre for
Learning and Development, which is regarded as one of Asia's top institutions for
hospitality education.

• The park hotel: The Park Hotels is a chain of contemporary luxury five-star
boutique hotels in India belonging to the Apeejay Surrendra Group, headquartered in
Kolkata. It comprises 30 hotels, including owned and leased, in 20 cities across four
brands—The Park, The Park Collection, Zone by the Park and Zone Connect by the
Park.

• ITC limited: ITC Hotels is an Indian hotel chain, which is a part of the ITC Limited.
With over 100 hotels, it is India’s fifth largest hotel chain. It has a franchise agreement
to operate most of its hotels as part of The Luxury Collection of Marriott International.

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• Lemon tree hotels: Lemon Tree Hotels is an Indian hotel chain. It owns and operates
100 hotels with a total of 9700 rooms in 64 cities across India. According to the
Howarth Report, Lemon Tree Hotels is India’s largest hotel chain in the mid-priced
hotel sector as of 30 June 2017.

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LEMON TREE HOTEL
(COMPANY ANALYSIS)

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 ABOUT LEMON TREE HOTELS

In the early 2000s, 80% of the branded hotel supply in India was in the upscale/luxury segment.
There was clearly enormous latent demand in the midscale and economy segments, which were
then unmet needs. Lemon Tree Hotels was founded as the category creator for the branded
mid- market hotel India.

Today, Lemon Tree Hotels Limited (LTHL) is one of the largest hotel chains in India, and
owns/leases/operates/franchises hotels across the upscale, upper-midscale, midscale and
economy segments. LTHL delivers differentiated yet superior service offerings, with a
compelling value proposition. The group offers seven brands to meet guests’ needs across all
levels, viz. Aurika Hotels & Resorts, Lemon Tree Premier, Lemon Tree Hotels, Red Fox Hotels
by Lemon Tree Hotels, Keys Prima by Lemon Tree Hotels, Keys Select by Lemon Tree Hotels
and Keys Lite by Lemon tree hotels.

LTHL opened its first hotel with 49 rooms in May 2004. Today, the company has a portfolio
of 160+ hotels, which includes over 100+ operational hotels and more than 60 hotels set to
open in India and internationally. Lemon Tree Hotels are located across metro regions,
including the NCR, Mumbai, Kolkata, Bengaluru, Hyderabad and Chennai, as well as
numerous tier I, II and III cities such as Pune, Ahmedabad, Chandigarh, Jaipur, Indore,
Aurangabad, Udaipur, Vishakhapatnam, Kochi, Ludhiana, Thiruvananthapuram, Vijayawada
etc. The company expanded internationally with hotels opening in Dubai in December 2019
and in Bhutan in February 2020. New hotels are also set to open internationally in Bhutan and
Nepal.

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 ENVIRONMENTAL ANALYSIS

An environmental analysis of Lemon Tree Hotels would typically assess factors like their
energy usage, waste management practices, water consumption, and any sustainability
initiatives they have in place. It would also consider the environmental impact of their
supply chain and transportation logistics. This analysis helps understand their eco-
footprint and identifies areas for improvement or commendation in their environmental
stewardship.

• Energy Usage: Assessing the hotel’s energy consumption involves examining their
use of electricity, heating, ventilation, and air conditioning (HVAC) systems. This
includes looking at their energy-efficient practices such as LED lighting, occupancy
sensors, and energy management systems to reduce electricity usage. Additionally,
evaluating the use of renewable energy sources like solar panels or wind turbines can
be part of this analysis.

• Water Management: This entails evaluating the hotel’s water conservation efforts,
including low-flow fixtures, water-efficient landscaping, and wastewater treatment
systems. Assessing their water consumption per guest night and comparing it to
industry benchmarks can provide insights into their water management performance.

• Waste Management: Analyzing how Lemon Tree Hotels manage their waste,
including recycling, composting, and waste reduction strategies, is crucial. Assessing
their waste diversion rate and efforts to minimize single-use plastics and other non-
recyclable materials is essential for a comprehensive environmental analysis.

• Sustainability Initiatives: Examining the hotel’s sustainability initiatives such as eco-

friendly amenities, green certifications (like LEED or Green Key), and community
engagement programs related to environmental conservation can provide a holistic
view of their commitment to sustainability.

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• Supply Chain Impact: Investigating the environmental impact of Lemon Tree Hotels’
supply chain involves evaluating their procurement practices, supplier sustainability
criteria, and efforts to source locally produced goods to reduce transportation
emissions.

• Transportation and Mobility: Assessing the hotel’s transportation-related emissions,

including guest and staff travel, shuttle services, and delivery logistics, is essential.
Examining their efforts to promote alternative transportation options like public transit,
cycling, or electric vehicle charging stations can also be part of this analysis.

• Carbon Footprint: Calculating the hotel’s carbon footprint by quantifying their

greenhouse gas emissions from operational activities and assessing their efforts to
mitigate or offset these emissions through carbon reduction strategies or carbon offset
programs.

By conducting a detailed environmental analysis across these dimensions, stakeholders

can gain insights into Lemon Tree Hotels’ environmental performance and identify
opportunities for improvement to enhance their sustainability efforts.

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 SWOT ANALYSIS

Lemon Tree Hotels is one of the leading brands in the tourism and hospitality sector. Lemon
Tree Hotels SWOT analysis evaluates the brand by its strengths & weaknesses which are the
internal factors along with opportunities & threats which are the external factors. Let us start
the SWOT Analysis of Lemon Tree Hotels:

STRENGTH

• The Lemon Tree Group of hotels provides a Variety of 20+ Hotels starting of from Mid
Market to Upscale Hotels
• The Hotel has a cozy and homely felling about it which is something customer’s like
• Indian cultural and geographical diversity pulls tourism
• The Hotel has extremely friendly staff (They have particular staff in yellow ribbons).
This staff is especially present to solve grievances of people
• The Lemon tree group believes in providing the ultimate refreshing experience. They
produce their own soaps and shampoos

Above are the strengths in the SWOT Analysis of Lemon Tree Hotels. The strengths of Lemon
Tree Hotels looks at the key internal factors of its business which gives it competitive advantage
in the market and strengthens its position.

WEAKNESS

• No presence in 2 of the Largest Metros i.e. Mumbai & Kolkata

• Newer in the industry hence less market share
• Lesser in terms of hospitality experience compared to market leaders

These were the weaknesses in the Lemon Tree Hotels SWOT Analysis. The weaknesses of a
brand are certain aspects of its business which it can improve.

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OPPORTUNITIES

• MICE (Meetings, Incentives, Conferences & Exhibitions )– Lemon tree has its its
presence in important cities like Bangalore where Meeting and conferences can be held
• Mid Market Hotels are receiving Increasing Government support
• The Lemon Tree group are small affordable hotels hence providing the ideal option of
a weekend get away

Above we covered the opportunities in Lemon Tree Hotels SWOT Analysis. The
opportunities for any brand can include prospects of future growth.

THREATS

• Terrorist threats, economic downturn, political turbulence

• There is a new trend of people preferring Well furnished guest houses over hotels
• Changing trends from the west may be an issue to implement by already existing
players due to the high initial investment

The threats in the SWOT Analysis of Lemon Tree Hotels are as mentioned above. The threats
for any business can be external factors which can negatively impact its business.

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 CONCLUSION

The hotel industry in India is a vital component of the country’s hospitality sector, offering a
diverse range of accommodations to cater to the needs of travellers. Over the past five years,
the industry has experienced significant growth and transformation, marked by trends such as
digitalization, sustainability initiatives, and a focus on enhancing guest experiences. This
growth has led to an expansion in the market size, with hotels catering to various segments of
travellers. Additionally, the hotel industry makes a substantial contribution to India’s GDP,
driving economic growth and employment opportunities. In summary, the hotel industry in
India plays a crucial role in the country’s tourism landscape and economic development.

In conclusion, Lemon Tree Hotels demonstrates strengths in its vibrant branding, strategic
locations, and commitment to sustainability. Its weaknesses include susceptibility to economic
fluctuations and dependence on the Indian market. However, opportunities abound in
expanding to new markets and diversifying services. Threats such as intense competition
Ooand regulatory challenges exist but can be mitigated through innovation and strategic
partnerships. Environmentally, Lemon Tree Hotels has implemented eco-friendly practices,
including energy efficiency and waste reduction, positioning itself as a leader in sustainable
hospitality. This aligns with growing consumer demand for environmentally conscious choices,
enhancing the brand’s appeal and long-term viability.

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 REFERENCES

• https://www.revfine.com/hotel-industry/

• https://www.mordorintelligence.com/industry-reports/hospitality-

industry-in-india

• https://www.easyleadz.com/lists/List-of-Hospitality-Companies-in-

India

• https://hotelivate.com/travel-tourism/2023tando/

• https://www.mbaskool.com/brandguide/tourism-and-

hospitality/4282-lemon-tree-hotels.html

• https://www.statista.com/outlook/mmo/travel-tourism/hotels/india

• https://www.business-standard.com/

• https://hospitality.economictimes.indiatimes.com/

• https://www.livemint.com/

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