FHRAI Indian Hotel Industry Survey reveals new trends in Indian hospitality

The Federation of Hotel & Restaurant Associations of India (FHRAI), in conjunction with HVS India, has released the 16th edition of Indian Hotel Industry Survey 2012-13. The survey sheds light on key trends in terms of occupancy, demand and supply, performance and more. The survey was distributed to 2,505 member hotels, of which more than 1,450 responded.

"An interesting trend is the correlation between the supply and demand growth, with the supply growing at 17.8 percent CAGR and demand at 17.3 percent from 2008-09 to 2012-13," TravelBizmonitor.com reports. "The occupancy levels remained generally stable during this period despite strong increases in supply is indicative of the healthy growth in demand."

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In 2012-13, the country experienced a slowdown in growth across sectors, as reflected in GDP growth of 5 percent.  Despite this slowdown, the year saw hotels maintain occupancy levels at a steady 60.4 percent (60.9 percent in 2011-12). HVS estimated that major cities across the country witnessed a growth of 11 percent in hotel room supply in 2012-13, while demand exhibited a strong increase of 9.2 percent during the same period.

The survey also demonstrated that over the past five years, net income as a percentage of total revenue has declined YOY. The year 2012-13 saw a decline of 4.7 percent in Net Income. This can be attributed to rising department costs. 

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