Hotel Industry Classification
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Resources – Hotel Industry
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…
Food Services Sector Sub-segmentation
The Different Food Segments for FSI space includes-
1. Fine Dining Restaurants (FDR)
2. Casual Dining Restaurants (CDR)
3. Pubs, Bars and Lounges (PB&L)
4. Quick Service Restaurants (QSR)
5. Food Courts
6. Ice Creams and Frozen Desserts (ICFD)
7.Kiosks
Regulations to operate in 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.
Trends in Hotel Industry in India
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.
Major Trends in AMC Industry in India
Major Trends in AMC industry in India are-
1. Impact of Demonetization – Catalyst for Financial Assets.
2. Continuous Rise in Participation through SIPs
3. Rise in Share of Financial Assets against physical assets.
4. Shift from Distributor to Direct Channel
5. ESG Funds starting to enter market.
6. Passive Funds and ETFs gaining market share
7. Rise of Individual Investors in AUM.
8. Bank backed AMCs gaining AUM.
Major Risks faced by Companies in Hotel Industry in India
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.
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