TOPIC

BUDGET HOTELS – INCREASE IN GROWTH AND

IMPORTANCE IN DELHI-NCR IN THE LAST DECADE

ACKNOWLEDGEMENT

My immense gratitude and sincere thanks to my guide Mr.

Ashish Sharma Lecturer,IHM Pusa,New Delhi for providing an
opportunity to work on this project and for indispensable and
value guidance and assistance throughout the compilation of
his project.

I would also sincerely thank Mr. Alok Shivapuri, Principal, IHM

PUSA, New Delhi for providing us with a platform to exhibit our
talents and for his motivating words and encouragement
throughout.

My Heartfelt thanks to Mrs. Anshu Singh, Lecturer, IHM PUSA,

New Delhi and to all my teachers who have been paramount in
guiding me with material and opinion and for their valuable time
in making this research work worthwhile.

PRASHANT SHARMA
 AUTHENTICATION CERTIFICATE

STUDENT CERTIFICATE

The work embodied in this project entitled “BUDGET HOTELS

– INCREASE IN GROWTH AND IMPORTANCE IN DELHI-

NCR IN THE LAST DECADE.

” has been carried out under the supervision of Mr. Ashish

Sharma, Lecturer Institute of Hotel Management Catering and
Nutrition,Pusa New Delhi. The Work Is original and has been
submitted by me for the award of any other degree to this or
any other university.
Date:
Signature:
Place: Name:
 CERTIFICATE BY PROJECT GUIDE

I hereby certify that the candidate Prashant sharma has

planned and conducted the research entitled “Financial
Management As a Core Subject In Hotel Management
Institutes” , under my supervision and that the report submitted
here with a bona fide work done by the candidate in New Delhi
From December 2013 to April 2014.
Date:
Signature:
Place: Name:
 INDEX

S.NO. TOPIC

1. INTRODUCTION & OBJECTIVES

2. REVIEW OF LITERATURE
3. RESEARCH METHODOLOGY
4. RESULTS & DISCUSSION
5. SUMMARY & CONCLUSION
6. RECOMMENDATION & LIMITATIONS
7. BIBLIOGRAPHY
6. ANNEXURE
FIGURES
 Chapter 1- Introduction

The mid segment or the budget hotels have become a major

player in the hospitality industry where until now a handful of
luxury brands were commanding monopoly. The global
slowdown a few years back has resulted in the average
traveller to shift from luxury/leisure brands and have provided
the budget hotels an opportunity to expand and gain business.
New Delhi as a city has already seen a wide variety of budget
hotels that have existed for decades, due to this change in
consumer preferences to budget hotels now the major brands
have started introducing their brands of budget hotels like the
Ginger brand by Taj, Aloft by Starwood and Fortune Select by
ITC. To compete with these we have a wide range of mid
segment brands like Carlson Rezidor, Country Inn Suites,
Lemon Tree and Accor.With the high influx of these major
brands into the mid segment market traditional or the
conventional 1/2/3 star hotel has been caught off guard and
finds it tough to compete with these major players.
The objectives of my research are as follows :-
 To check the rise in number of budget hotels over the last
10 years in Delhi-NCR.
 To understand segments and market for budget hotels.
 To compare budget hotels on the basis of customer
satisfaction.
 To assess services and facilities offered at budget hotels.
 To make observations and provide suggestions and
conclusions about research work done
 CHAPTER 2 – REVIEW OF LITERATURE
(ADD 4 PAGES MORE)
1. Various studies have been done on the topic of budget
segment hotels in India, recently a study done by HVS Global
hospitality services, a consultancy firm based in Mineola, New
York’s regional office based in New Delhi in collaboration with
the Ministry of Tourism, Government of India has shown that
due to the global economic slowdown and an increasing
inflation rate in India has caused the average traveller and the
business traveller are now looking at upscale and midscale
hotels to stay in for shorter durations than stay in a luxury city
hotel.

2. The research has concluded that there will be a requirement

of 150,000 rooms in the budget hotel segment while the
particular segment is short by 70,000 to 100,000 rooms due to
the lack of proper construction or the ability to re rotate their
rooms between guests.

3. Another research on this topic was done by Mr Solomon

James, an executive columnist with the 4Hoteliers.com had
very similar results as that of the research done by HVS Global
concluding that with the emergence of Ginger and Accor in the
budget segment market they have started earning high profits
due to the unconventional outlook and approach to this
particular target market while the traditional 1,2,3 star budget
hotel will struggle if they operate traditionally.
4. A recent article by Ms Michlelle Grant on the website
hotelnewsnow.com said that even though India has been
experiencing an economic slowdown, the country’s hospitality
industry is facing a 9% growth in demand for its rooms. She
went on to say in the article that even though the country has
9% demand increase from the consumer’s side, there is no
increase is supply from the industry’s side and says that until
the year 2015 will the turnaround in the country’s hospitality
sector as that will be the time when supply could equal the
demand.
5. A different article on etn Global travel news industry said that
India’s demand for budget hotels was outpacing the demand for
high-end lodging. It said that the country has an additional
requirement of 150,000 budget hotel rooms and a total
infrastructure investment of 600 billion rupees according to the
Federation of Indian Chambers of Commerce.

 Perrow, Charles. (1967). A framework for the comparative

analysis of organizations.
 Schiesel, Seth. (1997, January 2). Payoff still elusive in
Internet gold rush.
 Van Maanen, John, Dabbs, James M., Jr., and Faulkner,
Robert R. (1982).
 CHAPTER 3 – METHODOLOGY

3.1 Research Design – The present design is a questionnaire based

survey with budget hotels of various localities of Delhi including Patel
Nagar, Dwarka, Paharganj and Mahipalpur.

3.2 Research Locale – The research locale was based in New Delhi,
India covering various areas like the following –

 Patel Nagar and New Rajendra Nagar – This area was chosen
because of the amount of new Budget hotels which have opened
up recently, these new hotels have averagely good infrastructures

 Mahipalpur – The area is in close proximity to the International

(T3) and Domestic (T1) terminals of the Indira Gandhi International
Airport which serves the entire airline needs of the city. Due to its
close proximity to the airport there is a large infestation of hotels of
all ranges in the area.

 Paharganj – The area has always been famous for its not so
expensive hotels, the hotels still are run on traditional mind sets
and are run on traditional techniques. This area was chosen as a
part of the research locale because of the difference in results it
provided as compared to the areas mentioned above.

 Dwarka – As in the case of Mahipalpur, Dwarka is also in close

proximity to the IGI Airport. The area has seen the development of
4star/5star hotels with the inauguration of the Radisson Blu,
Dwarka and the ITC Welcomtel.

1.3 Tools and Techniques – The prime tool of the entire research
was the questionnaire which was filled up by the hotel guests.
1.4 Administration of tools :-

1.4.1 Questionnaire – The Questionnaire was filled up with the

inputs from the guests in a one on one session. Various
insights were provided by the guests and data was easily
collected with the cooperation of the staff.

1.4.2 Report Development – A report on MS-Excel was developed

according to the data that was collected using the
questionnaire. This report was further used in developing
various statistical tools like pie charts and bar graphs.

1.5 Data Analysis – The data from the tools used to gain data
were analysed and a report was formed all data and statistical
analysis was done on the basis of this report.
 CHAPTER 4 – RESULTS AND DISCUSSION
(Write Interpretation and questionnaire no. 6)

Q1) Which was the last budget hotel you stayed in?

 Ginger (Taj)
 Fortune (ITC)
 Lemon Tree
 Four Points by Sheraton
Any other (Please Mention)

8
8 8
7

5
5
4 Series1
4
3
3
2

0
1 2 3 4 5

Figure 1
Q2) What compelled you to stay in a budget hotel?

 Budget Constraints
 Short stay
 Word of Mouth
 Any other (Please Mention)

12
12
10

6 7 Series1

5 5
4

0
1 2 3 4

Figure 2
Q3) What is the biggest advantage of staying in a budget
hotel?

 Value for money

 Convenient for shorter stays
 Availability of options
 Any other (Please Mention)

25

20 22

15
Series1
10

5
3 3 1
0
1 2 3 4
Q4) What is the biggest disadvantage of staying in a
budget hotel?

 Lack of quality service

 Limited facilities
 Lack of F&B options
 Any other (Please Mention)

16
15
14

12

10

8 Series1

6
6
5
4
4
2

0
1 2 3 4
Q5) Do you think the standards of budget hotels has risen
in the past decade?

 Yes
 No
 Can’t Say

25

22
20

15
Series1
10

5 6

0
0
1 2 3
Q6) Any region in Delhi-NCR which has scope for a new
budget hotel?
CHAPTER 5 – SUMMARY AND CONCLUSION
(Write 2/3 Pages)
 ANNEXURES
Sample Questionnaire – 1

NAME OF ORGANIZATION –
DATE –
FILLER’S NAME –
E mail ID –

Q1) Which was the last budget hotel you stayed in?

 Ginger (Taj)
 Fortune (ITC)
 Lemon Tree
 Four Points by Sheraton
 Any other (Please Mention)

Q2) What compelled you to stay in a budget hotel?

 Budget Constraints
 Short stay
 Word of Mouth
 Any other (Please Mention)
Q3) What is the biggest advantage of staying in a budget
hotel?

 Value for money

 Convenient for shorter stays
 Availability of options
 Any other (Please Mention)

Q4) What is the biggest disadvantage of staying in a

budget hotel?

 Lack of quality service

 Limited facilities
 Lack of F&B options
 Any other (Please Mention)

Q5) Do you think the standards of budget hotels has risen

in the past decade?

 Yes
 No
 Can’t Say

Q6) Any region in Delhi-NCR which has scope for a new

budget hotel?
 BIBLIOGRAPHY

First and foremost I would like to thank all the various establishments
whom I visited for showing such enthusiasm in contributing data for my
research, and the staff for their cooperation in answering my questions.

The data in the review of literature column has been collected from the
following links, the link correspond the numbers in the review of literature
column.