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Major Risks faced by Companies in Hotel Industry in India

Source – ZebraResearch

Source – ZebraResearch

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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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.

Trends in the Industry

1. Rise of Domestic QSR Food Chains
2. Rise in Off-premises consumption
3. Increase in Health Awareness amongst customers
4. Environmentally Aware consumption
5. Increased Focus on Hygiene and Safety
6. Ghost Kitchens on the rise
7. Rise in Fusion Food
8. Consolidation and Shutdowns in the Industry forced due to COVID19 impact

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