Hotel Industry Analysis

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MEASURING PERFORMANCE AND PRODUCTIVITY IN HOSPITALITY SECTOR

Introduction
In every economy, there exists different sectors which offer different types of goods and services to the customers. Of them, Service sector is unique as it offers services to the customers instead of tangible products. It is often called as the tertiary sector of the economy. Today, there is a reasonably high degree of probability that a given product, in the market, will become obsolete in near future. However, this is not the case for services as they have gradually turned into necessities and cannot be usually replaced. Service industry is the backbone of social and economic development of a country. It has the capacity to generate employment opportunities in the
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Each has its own advantages and disadvantages. Certain factors employed for this purpose may not be accurate enough to predict actual productivity. However, one should select factors that are relatively more simple, accurate and meaningful than the others. Highly accurate yet complex methods need not be considered.
Comparison of these measures between any two companies is difficult as there are several other factors which influence them.

Analysing the key performance and productivity indicators
For Jan – Dec 2013, key hotel industry performance indicate growth in US and Europe markets keeping in line with trends from the previous quarter. In Indian Subcontinent , rates(-7.8%) are lagging whereas occupancies (0.6%) are flat compared to the previous year, leading to overall RevPAR decline of 7.3% as compared to previous year.

As compared to last year, there has been an overall increase in supply by 4.5% and 5.6% increase in demand during the period April – December 2013.

Indian Hotel Company LTD:
The Indian Hotel Company Ltd and its subsidiaries are collectively known as TAJ Hotels and Palaces. It is recognized as one of Asia’s largest and finest hotel companies. The following figure gives an idea of detailed shareholding
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This is because there are various specificities that influence productivity levels, like the average rate of a hotel (revenue per worked hour) and its business mix (individual check-ins versus group/airline crew check-ins). When it comes to Food and Beverages sector productivity, the concept of the restaurant, the structure of the restaurant, etc., have a heavy influence on the productivity. But, we will try and analyse the efficiency of Taj Group of Hotels and Hotel Leela Venture by studying their operating revenue and

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