START BUSINESS IN HOTEL INDUSTRY IN INDIA AFTER LOCKDOWN
India, over the years, has become one of the most digitally advanced nations in terms of traveling when it comes to being equipped with the digital tools for planning, booking, and experiencing a journey, India’s rising middle class and increasing disposable incomes has continued to support the growth of domestic and outbound tourism. This indeed is a market that the Indian tourism and hospitality industry has been focused on along with the foreign tourist arrival.
However, all the numbers that used to earlier indicate the future ahead for the hospitality industry in 2020 and upcoming years are now useless with credit to COVID-19 as it has left no one enterprise immune to bleeding. With the start of reality, it is also true that eventually we as humanity will overcome this pandemic and its effects and will overcome the slowdown as well.
As the hotel industry is majorly dependent on traveling, which has been restricted across the nation hotel business has been facing various challenges but it will eventually reboot in upcoming months and eventually, the business will get its position of being one of the profitable businesses to start.
HOW TO START BUSINESS IN THE HOTEL INDUSTRY IN INDIA
TYPE AND LOCATION: The starting point in such a diverse industry is but of course deciding the type of hotel that you are going to establish. The hospitality industry offers you options, while it can be a catering business or a hotel with lodging facilities etc or a small restaurant, your business’s location also matters which would be ideal to start in a tourist hub or a commercial location like Mumbai, Delhi, Kerala, Bangalore or any hill stations, etc.
HOTEL LOGISTICS: What is any business without logistics? So, after making your mind about the type and location of your business, you can start the process of making your business a successful one with logistics like proper infrastructural and transport facilities to the hotel. The location also comes in the role here as it should be easily accessible with the transport like being near to a railway station, a bus stand, shopping malls, airports, etc to attract more people and revenue.
HOTEL AREA PLAN: The size of your hotel will impact determining hotel area. For a midsized hotel, the rooms planned of 80-100, the approximate area required would be 10000-50000 square feet and for a Five-star hotel with more than 100 rooms, you can go ahead with around 100,000 square feet, so, now it depends on you what are going to choose the location effectively.
HOTEL LAYOUT PLAN: For planning the layout of your hotel, you can seek professional help from interior designers who can provide you with a good attractive plan within your budget. They can even help you with beautiful layouts that will attract more tourists. For getting in touch with professional interior designers, you can look on the internet and through advertisements.
FINANCING YOUR HOTEL: Finance is the backbone of every business, and in case one seeks financial assistance, they can avail of business loans from many private and nationalized banks. The amount will be divided into parts which include 30% of the loan amount will have to be arranged by you and the remaining 70% will be provided to you by banks, so one needs to decide on the hotel budget well in advance before approaching the bank. Also, your credit score matters as the banks will check your credibility and liabilities before granting the loan.
MARKET SURVEYS FOR FEASIBILITY STUDY: Research and studies aid the process of starting any business by offering information like the scope of your hotel business in the particular area where you are planning to start the hotel. Get started with a market survey within the 10kms of the hotel location, know about the competition from similar hotels, and create a business plan with unique facilities and features that are new and unique.
HOTEL LICENSE: In India, one cannot ignore the licensing part before starting any business and the same goes with the hotels, so here comes the next step i.e. to go ahead with the hotel license. If your choice type of business is a bar/liquor facility within the hotel, then you need to get a license for the same. Followed by a Pollution Control Board license, a license for conducting events within the hotel premises, and also a proper verification is mandatory from concerned officials regarding fire safety, elevator functions, etc. Below is the list of required licenses for running a hotel in India:
- Food Safety License by FSSAI (Food Safety And Standard Authority Of India)
- Health/Trade License by Local Civil Authority in your area.
- Eating House License by Licensing Police Commissioner of your city.
- Liquor License for a bar/liquor facility within the hotel from local Excise Commissioner in your city.
- Fire Department License by the fire department in your area.
STAAF RECRUITMENT: Now, this depends on the size and need of the hotel, the staffs are to be recruited including front office staff, housekeeping, line managers, supervisors, waiters, etc. You can recruit people through placement agencies or direct advertisements in the media.
HOTEL PROMOTION: Before starting promotion activities, one can start with getting ratings for your hotel from the Indian Tourism Board which can range between 1 to 5. The promotion impacts the business as it will increase the revenue. Hence its relevance cannot be ignored and one should see every possibility to promote the hotel both within India and abroad.
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