Growth Trajectory Of Midscale Hotels

THE TOURISM and hospitality industry is one of the largest service industries in India. The Indian travel industry has changed drastically with the increased use of technologies by well-informed consumers. Thus, advancing the hospitality sector unpredictably.

A new generation of potential travellers has emerged, like the solo lady travellers, couples, young consumers with the YOLO mantra who want to experience everything, internet savvy, money-rich and time-poor individuals.

Samir MC, Managing Director of Fortune Park Hotels addressed the audience at 4th BW Hotelier Indian Hospitality Summit and Awards 2019 and talked about the growth trajectory of midscale hotels, the new markets and challenges of the hospitality industry.

“The landscape of Indian hospitality sector has changed, with oversupply and less demand. The big foreign companies are coming to India and adapting to the requirements of the astute Indian markets”, he said.

He further talked about the mid-market traveller and how mid-scale hotels are catering to these consumers. “The Indian consumer is very aspirational and value-driven and, hence, bringing in big volume growth in multiple markets”, he said.

“Such consumers are shaping various business, the starting point is the change in purchasing patterns mainly through online mediums and the evolving desire for service”, he added.

Furthermore, he expressed that the mid-scale hotels are driven by the rising power of the middle class, growing weekend culture, the change in attitude from saving for the future to spending it on experiences.

He said, “Consumers are aspiring to move from the branded and unbranded economy and budget segment. Mid-scale hotels will be trailblazers in the markets beyond the tier 1 cities as well. The DNA of mid-scale hotels is the value-driven consistency of full-service experience and they are continuing to drive the growth”.

He further pointed out that last year, over, 40 per cent of branded hotel signings were in tier 3 and 4 markets which is happening because a lot of small towns are developing as business generators and growing middle class wants new experiences.

Atithi Devo Bhava is a concept that is embedded into our core minds and triggers the desire of ‘being looked after round the clock’. This 360-degree hospitality is something that the domestic traveller wants to be fulfilled.

“All these factors are causing a shift in mid-market paradigm and mid-market hotels are moving from economy select service to full service”, Samir MC said.