Hotels today are much more than just a place to sleep and rest. Many travellers view them as an   integral part of a gateway experience. With the recent boom in boutique hotels, spiffed-up budget properties, and novelty accommodations, travellers can choose a hotel that is as much a selling point as the destination itself.

The hotel industry in India is a mature industry marked by intense competition, where an increase in market share typically comes at a competitor’s price. The Indian hotel industry is on a roll. At present this industry has a supply of 1, 25,000 rooms in India. The data available with the World Travel and Tourism Council, India, indicates that India ranks 18^th in business travel, and should rank among the top 5 within this decade. It is estimated that demand is going to exceed supply by at least 100 per cent over the next two years.  With such demand-supply disparity, room rates in Indian hotels are likely to rise by 25 per cent annually, with occupancy rates rising to 80 per cent, over the next two years. With the commonwealth Games 2010 around the corner in the country, there is a huge demand for rooms in the national capital. India ranks first with regards to tourism fair attendance. Despite short and medium terms set backs, tourism revenues are expected to rise by 42 per cent between 2007 and 2017. The medical tourism in India also does not lag behind. The country today ranks second in medical tourism because of   its highly advanced treatment technologies wooing a large number of patients from various countries.

India’s share in international tourism and the hospitality market is expected to increase over the long term. New budget and star hotels are being set up in the country. Many foreign hospitality players are heading towards Indian markets. The Indian hospitality sector is expected to touch a gross business of US$275 billion in the next 10 years. The domestic hospitality sector is expected to see investments of US$11 billion in the next 2 years, with 40 international hotel brands establishing their presence in the country in the next few years.

The hotel industry in India is going through an interesting phase. One of the major reasons for the increase in demand for hotel rooms in the country is the high growth in sectors like information technology, telecom, retail and real estate. The growth of the tourism industry has also added fillip to the hotel industry. In recent years the government has taken several steps to boost travel and tourism, which have benefitted the hotel industry the most.

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