The last decade has witnessed a high growth in Indian Hospitality Industry on account of growth in Indian economy, improvement in per capita income, increased propensity to consume/spend, expanding business opportunities, popularizing weekend culture, easy access to travel related information and competitive airline prices. However, since past couple of years, Indian Hotel Industry is witnessing a challenging phase due to global economic slowdown and huge inventory addition throughout the country. Continuing the trend, FY13 turned out to be a challenging year for hotel industry with most of the cities witnessing lower RevPAR on account of diminishing occupancy and average rate. With a positive long term outlook on global economy, increasing tourist growth and stabilization of supply in the long run, CARE Research expects Indian Hotel Industry to perform better, though the growth of the past decade may take a little longer time to be achieved.
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