Indian hospitality sector: From the Indian CEO’s eyes

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The cross section of CEOs surveyed by PWC exuded optimism for the hospitality sector and gave a big thumbs up for 2012 – irrespective of what the budget holds for this evergreen sector. The survey painted a remarkably confident picture of the Indian hospitality segment…

With 82% of the CEOs answering YES to the question: ” Do you think that the Indian hospitality sector will perform better than its global counterparts?”

 

Market & Consumer segments

The CEO respondents were almost unanimous in their perception about the growth segments in the Indian hospitality sector.

  • 88% CEOs voted for the ‘Budget & Mid-Market’  AND  ‘ 12% went with the ‘Premium & Luxury’ segment in response to the  question: ” Which segments will attract maximum investments?”
  • In terms of customer segments, majority of the CEOs opined that the Business travelers held the maximum value prospect (83%); with MICE travelers having a growing influence on the hospitality segment (56%); Leisure travelers, unlike the earlier years seem to have lagged behind (39%).

 

Cost Management Approach: Indian hospitality sector

Energy conservation and technological automation dominated the though process of the Indian CEOs on the topic of:                              “What are your initiatives to manage costs?”

  • 29%: Energy Conservation Strategy
  • 24%: Investing in right technology
  • 24%: Training & Human resource improvement
  • 23%: Smart procurement & custom best practices

 

In terms of growth strategy, 88% of the CEOs emphasized on entering a new geography while 75% had a strong conviction about entering a new market segment.

 

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