2019 India Hotel Manpower Study© – Synopsis
The Indian hospitality sector has been witnessing a steady growth in rooms supply, with 1,28,163 rooms operational in the branded segment in 2017/18 – this represents a 7.5% increase over the previous year and a CAGR of 11.4% since 2008/09. In the next five years, Hotelivate anticipates a little over 35,000 rooms to be developed, growing the existing base by 28% and taking the total rooms supply to 1,63,733. In an industry where each hotel company is looking for opportunities to outperform the other, the rise in
According to a study conducted by WorldatWork in 2018, India maintains the largest salary increase budget of all countries surveyed, with an average historical budget increase of 10% and the projections for 2019 remain steady at that level. It is also prudent to mention that various market reports are suggesting a global economic slowdown, and India is likely to see the glimpse of its shadow. Thus, in order to support a positive and robust year for the hotel industry, we would like to share a note of caution that requires further deliberation by industry stakeholders and leaders:
- “Uberisation of services”, or in simple terms, outsourcing, is worthy of contemplation across hotel departments (front and back of the house).
- Budgeting a conservative Payroll cost and implementing stronger cost control measures will be helpful to the business.
- Performance measurement tools and long-term incentive plans will require greater enhancement and consideration.
- Leaders and key stakeholders of hotel companies should lay greater emphasis on cost of attrition and the impact of cost of re-training of skilled resources on the annual budget.
The 2019 India Hotel Manpower Study© surveys 204 hotels across 68 cities and several domestic and international hotel chains, providing a detailed analysis of payroll cost, employee productivity, room to manpower ratio and annual attrition percentages across key parameters. The study endeavours to serve as a one-stop credible guide for hotel investors, owners, developers, operators and professional advisors, seeking an in-depth insight into payroll cost structure and related statistics. This pioneering research will assist upcoming hotels to plan their manning and payroll budgets, while enabling existing hotels to review theirs; thus, supporting you to manage your businesses better.
The specific objectives of the study include:
1. Understanding the structure/definition of payroll cost as interpreted by various participating domestic and international hotel companies.
2. Analysing Annual Revenue and Annual Payroll Cost
– Annual Payroll Cost as % of Total Annual Revenue
– Annual Revenue per Employee
– Annual Payroll Cost per Employee
– Annual Payroll Cost per Occupied Room
– Annual Payroll Cost per Available Room
Figure 1: Excerpt from 2019 India Hotel Manpower Study© – Payroll Cost and Revenue Analysis (Jan-Dec 2018): All-India Average and Hotel Market Positioning
3. Analysing Productivity Statistics for Rooms and Food & Beverage (F&B) Departments
Rooms Division
– Rooms’ Revenue as a % of Annual Revenue
– Rooms’ Payroll Cost as a % of Annual Rooms’ Revenue
– Annual Rooms’ Revenue per Hotel Employee
F&B Division
– F&B Revenue as a % of Annual Revenue
– F&B Payroll Cost as a % of Annual F&B Revenue
– Annual F&B Revenue per Hotel Employee
4. Analysing Room to Manpower Ratio
– Average Manpower Levels that Indian Hotels Currently Operate At
– Average Manpower Levels Across Hotel Market Positioning in India
– Average Manpower Levels by City Classification
– Average Manpower Levels by Number of Rooms
Figure 2: Excerpt from 2019 India Hotel Manpower Study© – Comparison of Manpower Ratios Across Rooms and F&B Divisions (2011/12 and 2017/18): All-India Average
5. Analysing Annual Employee Attrition
– Attrition Percentage at an All-India Level
– Attrition Percentage Across Hotel Market Positioning in India
– Attrition Percentage Across Seven Major Hotel Markets
To serve specific requirements, Hotelivate Executive Search can also prepare paid research reports[1] such as:
– 2019 India Hotel Manpower Study© by Hotel Market Positioning
– 2019 India Hotel Manpower Study© by Nine Major Indian Cities which include Bengaluru, Chennai, Goa, Hyderabad, Jaipur, Kolkata, Mumbai, New Delhi-NCR, Pune
– 2019 India Hotel Manpower Study© focussing on Payroll Cost and Revenue Analysis
– 2019 India Hotel Manpower Study© focussing on Employee Productivity Statistics
– 2019 India Hotel Manpower Study© focussing on Manpower Ratios & Employee Attrition%
– Customised reports comparing an Individual Hotel/Chain’s payroll cost and revenue data to that of a Defined Competitive Set’s aggregate
*With critical analysis and editorial contributions from Juie Mobar, Director – Special Projects, Hotelivate
**For more information and/or pricing, please contact [email protected]
[1] Please note that Hotelivate reserves the right to withdraw a publication at any given point in time without prior intimation if it finds the data inadequate for a meaningful representation.
