PEST Analysis for Indian Luxurious Hotel Market

In India's hotel market the luxury hotels are the fastest growing segment. In India Luxury hotels market grown at an accelerated pace in the past couple of years. Researches and studies have revealed that the luxury hotels market is growing at a steady speed of 15% per annum with more and more numbers of luxury hotels entering Indian hotels market. According to the Ministry of Tourism the Indian hotel industry is growing at a rate of 15 percent annually. A major trend that has been witnessed in recent times is the development of the hotel industry in cities other than the major metros. As real estate prices soared cost of setting up and maintaining businesses and hotels in the major metros become more expensive, this lead to the search for other cities, where costs were lesser.

The Indian economy has recorded healthy growth in the last few years. Despite the global economic slowdown the economy clocked growth of 6.7% and 7.4% in FY11 and FY12 respectively. Now a day in luxury hotels growth rate is booming because of Changing consumer dynamics and ease of finance, Economic growth, increased tourist movement, Growth Drivers, Development of other markets.