The Tourism and Hospitality Industry primarily drives growth in the services sector of our country. Tourism is the 3rd largest source of foreign exchange earnings in India and accounts for 6.8% of our GDP. Our forex coffers are expanding at a rapid pace. According to a report published in The Hindu, foreign exchange earnings from the tourism industry have grown by an astonishing 891 % from $1,861 million in 1991 to $18,445 million in 2013. Tourism clearly has become a game changer for the economy and the revenues earned are huge. To add to this, necessary boost has been provided by the Government, which has readily implemented policies in this sector. Visa norms have been eased. Incredible India campaign which projected India as a global tourism hub has gained widespread recognition. Visa on Arrival Facility has been made available to 43 countries and the number is set to expand to 150 in stages. The Medical Tourism market is also booming and has clocked a CAGR of 27% over the last 3 years. With the presence of several world class hospitals, India has become a preferred destination for medical tourism around the globe.
The hospitality industry is a key segment of the tourism industry and has recorded healthy growth in recent years. With 100% FDI permissible, it is among the top 10 sectors in India to attract the highest Foreign Direct Investment. The occupancy ratios have witnessed an increase. Both domestic and global hotel chains are investing big in the huge-potential hotel industry and are set to expand their properties. The list includes some big names such as Bharat Hotels, Kempinski, InterGlobe, Carlson Rezidor, Hilton, Starwood.
With the expansion of the hospitality sector in India, the industry has become vulnerable to increasing challenges especially in the infrastructure domain. These include –
- Efficient acquisition of resources
- Regulatory issues and Policy Bottlenecks (red tapism)
- Lack of integrated and focused marketing
- Increasing Utility Cost
- Lack of skilled labor and Capacity Building
- Non-standardized service levels
How C1 India Adds Value?
It is a known reality across the world that India is a rather price sensitive market. The future of the Hospitality Industry lies in offering great services at attractive prices for a price sensitive audience. Top Hotels such as The Claridges, Taj Hotels, ITC Hotels, Oberoi Hotels are innovating to keep the average room rates under control and occupancy rates as high as possible. The cost of managing infrastructure is increasing
and is adding pressure to the bottom line of these big hospitality players.
Since procurement costs form a core part of profitability and performance of a hotel’s business, our centralized e-Procurement suite, which facilitates e-Auctions and e-tenders to purchase material at competitive price, can add immense value. This reduces the procurement cycle time significantly. Having executed more than 250,000 e-tenders for Indian and international businesses, we bring the best practices and leadership experience in e-Procurement and e-Auctions.
We have worked with Trident Group and The Claridges Hotels & Resorts. Trident Group, a USD 1 billion Indian business conglomerate and a global player, continues to be one of C1 India’s esteemed and highly valued customers. Team C1 India worked closely with Trident Group to help them get transportation services at attractive rates. Savings to the tune of 5% on the opening price were eventually registered.
We look forward to providing e-procurement solutions to other big hotels in the business. Reach us today to find out how our solutions & services can add value to your business.