The Hospitality Industry is one of the largest and fastest-growing industries in the world. Being a part of service industry, it is heavily dependent on skilled people. Employing over 10% of the workforce, it makes a significant contribution to the economies of the different nations of the world in varied ways.
The major segments in the industry are Food and Beverage, Accommodation, Travel and Tourism and Entertainment and Recreation.
Globally, accommodation is expected to be the fastest growing sector of the hospitality industry. In travel and tourism Asia- Pacific happens to be the largest region followed by North America. Fine dining is the most profitable sub segment of the Food & Beverage industry.
The global industry stood at 4.3 trillion USD in 2022 and is expected to grow at a CAGR of 7% for the next 5 to 7 years. (source: statista.com)
The HoReCa (Hotel, Restaurant, Cafes –whole food service) Industry in India stood at 78 billion USD in 2022. Food and Beverage sector in India stood at 54 billion USD expecting a growth rate of over 11% annually. The F&B is highly unorganized in India with only about 30% organized market.
Accommodation market is projected at 9.02 billion USD and is expected to grow at a CAGR of 17% for the coming 10 years.
Travel and Tourism category contributed 190 billion USD in revenues in 2022. In this, domestic tourism accounts to around 80% of the total revenues. Domestic travel in India is growing at a CAGR of 13%. The online travel category is growing at a CAGR of 13.5%.
Entertainment and Recreation is also expanding at a speed of 17.5% annually standing at 200 million USD as of 2022.
(Data sources: abplive.com, globalnewswire.com and economictimes.com)
Global trends and outlook
The customer’s capacity and desire to spend on leisure and entertainment is rising constantly. The customer of today wants instagrammable food and decor, simple yet distinguished ambience, sustainability, curated content, well being and many more things to be taken care of. The customer is thereby only expecting elevated experiences in hospitality. Technology is helping build seamless and remarkable customer experiences. AI, AR and VR are being considered for uniqueness.
Working from home is not a passing trend but here to stay for long. A study suggests that about 22% of workforce in US will be remote by 2025. 18% of total travelers in India, travel for work.
Given this scenario, hotels are stepping up to provide for local and travelers with facilities that fulfill their work as well leisure needs. Facilities like 24×7 check-in check-outs, 24×7 cafes, high speed internet, meeting rooms etc. which cater to needs of this segment are being adopted by Hospitality venues.
Catering to trends
Mental and Emotional well-being is taking a center stage in the spa industry. The focus is on holistic approach including themes like coaching, mindfulness, stress management, better sleep over common spa treatments.
Hyper –personalization wherein with the help of technology, businesses can create personal user interactions on a larger scale with the use of data and software. More and more number of people expect more realism while interacting with businesses and to be treated as individuals and not customers. Hyper- personalization helps fulfill that need.
Sustainability on the forefront
Technology is helping hospitality stakeholders understand their energy and water usage with a purpose of reducing wastages. Elimination of plastics, reducing paper usage, making use of renewable energy sources are other measures helpful to make operations more sustainable.
The food and beverage industry has the most opportunity due to India having the largest millennial population. Cafes, bars, clubs are increasing rapidly and there is a constant growing demand towards it. Even unorganized segment in areas around offices and universities offer huge opportunities for growth.
Infrastructure wise, India has the second largest rail network in Asia and second largest road network in the World. With increase in quality of services and options like car rentals, tourism in India is likely to expand and generate more traffic as well as repeat customers owing to better customer experiences.
Service quality is prime value addition to Hospitality business. We have helped align a large number of multi-level teams towards business goals and interpersonal skills through the use of custom training programs. Our team has the experience delivering trainings to people from India’s favourite ice cream brand spread over 72000 outlets around the nation. Our efforts resulted in skillful and motivated workforce able to deliver exceptional value to the business and its customers.
Our experience also covers operations design and implementation for Hotels, Clubs, Event Management Companies, Venue Management Companies, Banquets, Independent and Franchise Restaurants- fine dining, cafes and QSRs.
We have helped execute strategic projects for Restaurants and Venue Management Business including an array of services like strategizing location, themes, products, services, operations, marketing, financial planning. We helped our Restaurant client expand their franchise business and event management client successfully expand into a new stream of business of venue management services.