What’s next in the lead for next generation Indian hotel Franchises
In 2019, the hotel industry was at a different level. The closure of Jet Airways along with the impact of general elections together led to downfall in demand growth. With other airlines filling up the gap as soon as the new government came to power, the ongoing economic struggles have continued to impact the sector adversely.
Despite all the odds, the hotel industry continued to grow. According to the CARE report launched in December 2019, India would see over 50,000 branded hotel rooms being added between 2018/19 and 2023/24, and out of which, about 34,000 would be mid-market and budget categories. With mid-markets hotels coming up in India the franchise industry are also flourishing as there has been a rise in domestic tourism and the demand for pocket-friendly rooms is on top. The hotel industry is expected to see a boost in the hotel industry and all this is not possible without a franchise model.
While the franchise model is bringing a huge change, the insiders believe that the model itself has gone through a change and the integration of new plans has made it an effective means of development. In this shift, the role of social media in generating business in today’s landscape has been the most effective one. If we look at different franchise groups, the subtle focus on social media to create brand awareness, drive business, foster loyalty and manage customer relationships has helped them grow immensely. For instance, the deployment of platforms like Revinate and Engagor to track customer complaints has helped hotels grow. The industry experts have found that technological advancement has evolved the mindset of guests and have become a necessity in the hotels.
Today, the idea of hospitality has changed and brands are bringing in new trends. They are more than just a place for a temporary stay. In fact, it has become a place like home for many. With bigger hospitality chains opting for management and franchise routes and accepting newer trends, the industry is bound to bloom this year. If statistics are to be believed, 2020 has much more in store for investors and hotel owners too.
Also, collaboration is the key trend of the present and future. From cross-brand collaborations to individual-specific, the future will see a shift in a lot of creative content for the end-users, which will make the hotel, stays more worthy, engaging and entertaining. Nothing can replace the value of human warmth and courtesy which lies at the core of the business of hospitality. But, partnership with reputed brands for a variety of exclusive services and merchandise will also find its place in the coming years. For hotels, it’s going beyond the stay of guests and they are ready to offer the best products available in the market to their patrons. What was earlier restricted as a part of luxury hospitality, is not coming down to mid-range hotels too as a part of the franchise business model!
About the Author
Mr. Pankaj Kumar Singh
Director Franchise Bouquet (A division of Jalsa Ventures Pvt Ltd).
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