The data for the FHRAI Indian Hotel Survey 2012-13 was contributed by the member hotels of FHRAI. Out of the 2,505 member hotels, more than 1,450 hotels responded to the questionnaire sent out as part of data collection. HVS India presented the survey after culling the responses of the hotels.
Increasing F&B and Banquet Revenues
Hotels in India continue to receive a greater contribution from both F&B and the Banquets & Conference department, as per the survey. The Banquets & Conference segment also recorded a year-on-year increase of 17% in PAR revenue in 2012-13(Rs 2,26,793) over that in 2011-12, while F&B recorded an increase of 4.2% in the PAR revenue (Rs 5,41,494) for the same period. However, revenue contribution from Rooms has seen a steady decline over the last five years, recording a negative CAGR of 4% between 2008-09 and 2012-13.
Declining Net Income
The survey noted that in the last five years net income as a percentage of total revenue has consistently declined year-on-year, as witnessed by a CAGR of 5.7%. The year 2012-13 has seen a decline of 4.7% in Net Income as a percentage of revenue over the previous year. The reason is attributed to rising department costs, which are a result of rising inflation coupled with an increase in Energy costs.
The Indian hotel industry continues to cater to the Business Traveller, who contributes the largest share to the market mix at 39%. The survey also reveals an increase in the growth of Meeting Participants segment. Additionally, both the domestic Business and Domestic Leisure traveler have continued to show resilience. While the real growth in 2012-13 came from the Domestic travellers, it was noted that India also experienced an increase of 5.4% in foreign tourist arrivals.
Increasing Utility & Manpower costs
Energy cost continue to rise and pose a challenge to the hotel industry. The survey this year has revealed a rise of 13% in PAR energy cost (Rs 1,82,067) over the previous year (Rs 1,61,479). Similarly, employee to room ratios in India continue to be on the higher side when compared with global benchmarks, almost twice as much. The all India average of employee to room ratio stands at 1.6. Hotels in India, the survey notes, provide services and facilities beyond their positioning.
Changing Source Markets
Hospitality industry: India bags many travellers’ choice awards
Press Trust of India Jan 23, 2014 at 06:54pm IST
New Delhi: Indian hotels and boutique properties have finally made their presence felt in the global hospitality industry, winning several travellers’ choice awards.
In the 2014 Travellers Choice announced on Thursday by travel portal TripAdvisor, Indian properties ranging from major hotel chains to small boutiques, eight of the top 10 hotels in various categories were from India.
In the Top, Luxury and Family hotel segments too, India registered a strong presence with eight wins in Top and six each in Luxury and Family categories and swept the B&Bs (Bed and Breakfast) and Inns category with 12 wins.
Overall, India secured the second spot with 39 awards in Asia after Indonesia with 41 awards. Within the country, Rajasthan emerged as the leader in hospitality, with hotels from the state notching an impressive 50 awards across the World, Asia and India lists.
The other top performers included Kerala with 36 awards, Karnataka with 30 and Goa 17. Among the metros, Delhi led with seven awards followed closely by Bangalore with six. The Oberoi Group of Hotels led the show with two hotels each making to the Luxury and Top hotels list in the world.
The emergence of modest accommodation like Kaiya House and Jaipur Friendly Villas in the list of Bargain hotels and Inns and B&B categories respectively was the winning story.
TripAdvisor Country Manager Nikhil Ganju said this was “the first time in the history of the awards that India has registered such a strong presence on the World and Asia lists. This just goes to prove the world class standards that the Indian hospitality industries, right from big hotel chains to small boutique properties employ”.
The Economics Times – Varuni Khosla & Divya Sathyanarayanan, ET Bureau Feb 4, 2014, 04.00AM IST
Manjit Singh Gill, the hotel group’s corporate chef says this year alone they have added 55 young chefs to the roster, which is a 50 per cent increase over the 100 chefs they had last year, thanks to a growing number of interactive kitchens, live counters and buffets, where guests like the young and bubbly men and women more than the grand old celeb chef. This move is being necessitated by a drop in revenues coming in the rooms business.
In 2012-13, room revenues plunged to the lowest in a decade, according to a report by the Federation of Hotel and Restaurant Associations of India (FHRAI), while the food and beverages segment is seeing healthy numbers, coming at an opportune time for the industry. In the last fiscal year, average room rates fell to Rs 6,214 during the financial year while occupancy dropped to 58.3 per cent.
“Since F&B revenues have been clocking 10 per cent growth while room revenues have been stagnant, we are hiring more chefs, especially young, to give F&B a push,” says Andrew W Harrison, general manager of Four Seasons Hotel Mumbai.
Big hospitality firms say that the demand for young chefs in their hotels has shot up over 20 per cent. Hotel majors such The Leela, The Taj, ITC, The Park and Marriott are catching them young. Typically five-star hotels have anywhere between 12-16 chefs in each restaurant and on an average, have close to 200 kitchen executives in each property.
The Leela’s executive vice-president — operations, Rajesh Jhingon agrees. “There is an increased number of chefs in our properties and that percentage is close to 15-20 per cent. This increase attributes to the fact that there are lot more show kitchens and live counter cooking styles that are coming into play,” explains Jhingon.
Employment of young chefs is on a steady rise in the transient food and beverage industry, partly because concept cooking is making a strong hold and partly because a lot more hands on deck are required now. In addition to that, there are also close to 200 new hotels that have been built in the country since 2011. Call it the MasterChef effect.
Chains are recruiting students by the hundreds since there is a growing appetite for specialised food in the industry. Close to 40 per cent of a hotel’s income consists of revenue from food and beverage sales alone and hotels are happy to recruit young staff because of the increasing sales. Concepts like molecular gastronomy, pretty plating, fusion cooking and more are making up the corporate cooking dossier as well.
ITC’s Gill adds, “There was a time when chefs were a handful and servers were abundant in the food and beverage side. But now, chefs and servers at our hotels have a 1:1 ratio since so many young chefs are required on the job,” he explains.
ITC absorbed close to a hundred new skilled recruits last year into their system. Hotel management institutes concur. S Kacker, head of department, F&B service and placement coordinator at the Institute of Hotel Management, Catering Technology and Applied Nutrition in Mumbai (IHM) says the institute has seen over 10 per cent growth in the recruitment of talent in kitchens.
An average spend of anywhere aboveRs 2,000 at restaurants helps recover costs of staff easily. Leevin Johnson of Ecole Hoteliere Lavasa (a private institute for hotel and hospitality management in India) said “base salaries have close to doubled for permanent employees. In five-star hotels, salary for young chefs now begins at around Rs 40,000 per month (once they are done with their trainee-ship period of a year).
This is a big draw for students to become chefs. ” Taj Vivanta’s executive chef Ananda Solomon says the hotel brand is steadily recruiting 20 per cent more chefs from schools such as IHM and ITI since most of these institutes are now in-sync with the industry and are producing students that are able to handle the new formats in kitchens.
The growth the profession offers is plenty too and promising young chefs try to get a foot in the door. Vijay Wanchoo, senior vice-president and general manager at The Imperial, New Delhi, says, “Chefs are growing at a pace faster than ever before. Today, one can be an executive chef at as young as 35 and the average age in our kitchen is between 30-35.”
At The Imperial, where there are close to 80 chefs, aside from a couple of key chefs, the entire team is made up of chefs under 35. While there is no dearth of jobs in existing hotels, an addition of over 200 hotels in India in the last two years has also pumped several hundred more chef’s jobs into the system. However, poaching is an imminent problem to many.
Suveer Sodhi, food and beverage director at The Lodhi, says, “We have to revise the team’s salary structure generously year-on-year because attrition rates are high and we cannot afford to lose our talent to newer hotels.”
Reference link: http://articles.economictimes.indiatimes.com/2014-02-04/news/47005079_1_chefs-room-revenues-rajesh-jhingon