Indian Hotel Industry Research Articles

Key issues in setting up a hotel in India: a practitioner perspective

PurposeThe Indian hotel industry is poised for growth but there are a number of issues that are impeding a much‐awaited boom in this sector. This paper seeks to provide a first‐hand perspective on the challenges faced in setting up a hotel in India. It aims to identify the issues that can be quite frustrating for a hotelier as well as for investors in India and to provide practical solutions that could lead to a higher growth rate for the industry.Design/methodology/approachThe authors have drawn together practitioner insights from open‐ended discussions with several senior managers in leadership positions representing national and international brands experts who are developing hotel properties in India.FindingsThe capital expenditure for building/acquiring a hotel in India is measurably higher when compared to those in most developed countries. The major factors driving this higher capital expenditure are the land costs, complexities relating to land acquisition and construction thereof, tax structure, the complex regulatory environment, and promoter preferences. If these could be eased through a visionary change by the policy‐making bodies, it would provide a boost not only to this sector but also an assured contribution to the economy.Originality/valueThe literature reveals that various issues and challenges relating to hotel development have been identified including some of the issues mentioned here. However, there is almost no literature that addresses the specific challenges of setting up a hotel in India.

Strategic growth challenges for the Indian hotel industry

Purpose – The purpose of the study is to explore the strategic growth challenges for the hospitality industry in the context of India. As the tourism industry is growing, Indian and global firms face new challenges which need to be addressed.Design/methodology/approach – The study involved obtaining practitioner insights by conducting an industry round table discussion with senior managers who are in leadership positions with international and national hotel brands. The data so collected were then corroborated by a literature review.Findings – The major challenges are in the domains of human resources (in terms of skill and knowledge base), land acquisitions, technology deployment as a strategic tool and understanding the dynamics of new generation consumers.Practical implications – The paper has policy implications for both industry practitioners and government bodies setting up governing mechanisms for this industry segment.Originality/value – There is very little formally documented research in the dom...

The impact of HRM practices on service quality, customer satisfaction and performance in the Indian hotel industry

The paper investigates the effects of HRM practices on service quality, customer satisfaction and performance in the hotel industry. A conceptual model is developed and four research hypotheses are empirically examined using structural equation modelling. The data were collected via a survey of Indian based hotels. 52 hotels in India responded to questionnaires pooling 52 HR managers 260 employees (5 from each hotel) and 260 customers (5 from each hotel). The results indicate that HRM practices have a positive influence on the improvement of service quality as well as on customer satisfaction and hotel performance. The study further testified the relationship among them, and provides useful information for future hotel management needs. The findings indicate that creation of customer satisfaction∖value in the hotel can be achieved via increasing responsiveness to customers' needs and that the creation of customer value which have a positive impact in the firm's profitability. The results suggest that HRM practices improve hotel service effectiveness and in consequence firm performance replicates and extends in a HRM context research. The study also suggests that management should emphasis on the development of intra-departmental learning and relational capabilities. The findings of this study are important for the hotel industry as the sector is faced with increasing competitive pressures in a highly fragmented, high growth market, and challenges that threaten its viability as evidenced by recent consolidations, merger & acquisition, franchising and foreign collaboration, etc. Further, in terms of theoretical contributions, this research suggests that HRM improvements are as much an outcome of technical and operational measures as they are of managerial, organizational and inter-organizational capabilities. Finally, the study paves the way for further research that would integrate HRM practices and operational factors in the context of analysing improvements in service quality, retaining customers and hotel performance.

The impact of HRM practices on organisational performance in the Indian hotel industry

PurposeThe study has a two‐fold purpose: to investigate whether some specific characteristics of hotels affect organisational performance in the hotel industry in India; and to investigate whether some HRM systems affect organisational performance in the hotel industry in India.Design/methodology/approachA total of 439 hotels, ranging from three‐star to five‐star deluxe, responded to a self‐administered questionnaire that measured 27 HRM practices, five organisational performance variables, and ten demographic variables. Factor analysis was performed to identify HRM systems, one‐way ANOVA was employed to test the association of the demographic variables with organisational performance, and correlation analysis was used to test the relation between HRM systems and organisational performance.FindingsThe results indicate that hotel performance is positively associated with hotel category and type of hotel (chain or individual). Furthermore, hotel performance is positively related to the HRM systems of recruitment and selection, manpower planning, job design, training and development, quality circle, and pay systems.Research limitations/implicationsSingle respondent bias may have occurred because a single respondent from each organisation provided information on HRM practices and perceived measures of organisational performance. The sample was drawn from the population of best performing hotels in India, so is not representative of the hotel industry in India.Practical implicationsIf hotels are to achieve higher performance levels, they should preferably belong to a chain and increase their category, and management should focus on “best” HRM practices indicated in the study.Originality/valueThe study makes a modest attempt to add information to the very little empirical knowledge available referring to the link between HRM and performance in the hotel industry.

Exploring consumer attitude and behaviour towards green practices in the lodging industry in India

PurposeThe study seeks to explore the factors which influence the consumer attitude and behaviour towards green practices in the lodging industry in India and also to explore the consumers' intentions to pay for these practices.Design/methodology/approachA quantitative and qualitative research methodology using a questionnaire along with secondary research has been proposed. A structured questionnaire has been used using convenience‐sampling techniques from National Capital Region in India. Correlation and factor analysis has been used to explore consumers' attitudes and behaviour towards green practices in the lodging industry.FindingsThe consumers using hotel services are conscious about environmentally friendly practices in India. They patronise the hotels that have adapted green practices though not compromising on service quality. The consumers would prefer to use lodging that follows these practices but are not willing to pay extra for these services. Indian hotels have the competitive advantage over similar products if they follow green practices.Practical implicationsThe hotels would have to invest in environmentally friendly practices and look at long‐term gains. The government needs to acknowledge and institutionalise the practice by instituting rewards and offering benefits in taxes.Originality/valueThe paper attempts to bring out facts regarding customer buying behaviour towards green practices in the Indian hotel industry. The resource scenario in India is grim with regard to the water and sanitation. The tourism industry has a big responsibility in ensuring that business models adopted are sustainable in the long run and hence the need to imbibe green practices as a preferred business model.

A Critical Review of the Environmental Forces Shaping and Transforming the Indian Lodging Industry

ABSTRACT The environment of the lodging industry in India is presently undergoing a transformation. The changes being witnessed are a combined result of the liberalization policies of the early 1990s in India and changes affecting travel and tourism globally. Some of the forces changing the industry include economic reform and open market policies, tourism policies, industry regulation, competition, evolution of the hotel industry structure (size, geographical dispersion, brand proliferation, ownership, quality, international chains), incidence of taxation, tariff structure, availability of qualified employees, customer demographics, ecological concerns, supply of capital, and technology to name a few. These changes have offered hotels that presently operate or are planning to operate in India with both challenges and opportunities. As a result, an understanding of the environmental forces affecting the industry is vital for strategy formulation and management of hotels in India. The objective of the study is to critically review the major forces in the general and task environment affecting and transforming Indian hotel industry. A better understanding of these forces will help companies to assess the strategy and structure of their organizations, and provide a framework to develop sound tourism policies.

Rai Bahadur Mohan Singh Oberoi: Father of the Indian Hotel Industry

As a leader and a visionary, and one who “Dared to Dream,” M. S. Oberoi is regarded as the father of the Indian Hotel Industry, who has left behind a legacy of service quality and perfection, which is reflected in his creation of the Oberoi Group of hotels. This article provides a narrative on his life and his achievements while elucidating his qualities as an entrepreneur, a leader, and a visionary.