Competitive Rivalry within Hotel Industry in India

Industry Resources for Hotel Industry List of Resources to understand the Industry in detail. These reports together give a great start to understand the industry…
To operate in Hotel Industry, each player needs a variety of approvals and licenses. Companies end up spending between 2-3% of their revenues to obtain and maintain such licenses.
Major Risks faced by the Industry includes –
1. Disruptive Business models gaining market share – Oyo, AirBnb, Hostels, Co-living.
2. Cyclical movements within the Industry.
3. Increased Competition within the Industry.
4. COVID related factors that may put many hotel companies out of business.
5. Risk of excessive debt on books.
Major Trends that exist in QSR Industry-
1. Increase in the share of Organized Players post COVID19.
2. Increasing Participation from Online Travel Agents and Increase in Commissions charged by them.
3. Asset Light model gaining market share with Management and Franchised Contracts
4. Disruptive Models – Oyo, AirBnB, Hostels, Coliving gaining market share.
Moderate to High Threat of Competitive Rivalry impacting industry’s profitability
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