Mid-market hotels pose a serious business opportunity for IFM companies. It's something which they should not ignore.

How mid market hotels can be a big business opportunity for Housekeeping Agencies

Housekeeping in India has commercial penetration, unlike the west where housekeeping services have already penetrated the domestic markets and have reached the homes of people India is yet to see such a phenomenon.

IFM and housekeeping both require a regular flow of work in order to be profitable. The market in India is highly disorganized as far as IFM services are concerned and this makes competing even more difficult. A professionally run IFM has to compete with its industry peers and then the local players. Hence in this world of business chaos, the mid-market hotels of India can be a lucrative business proposition.

India’s tourism sector is no doubt growing at a very aggressive pace. India now has both domestic and international clientele as far as tourism is concerned. This obviously has led to huge growth in services which surround the Industry Segment. Hotels are the prime supportive pillar of the tourism industry. Now everyone cannot afford luxury star rated properties, hence the mid-market hotels came into existence. In the country’s biggest 10 cities, the number of rooms reached over 28,800 in 2017, up from around 22,000 in 2013. Now, this creates a huge volume based opportunity for IFM and housekeeping companies alike.  

By 2020 the number of foreign tourists planning to visit India would have surpassed 20 million. With that huge number of guests coming in for a stay the hotel industry will surely boom. This boom in business can only be sustained if they have professional IFM companies handling their properties. We all know that class guests demand class services. This cannot be provided by a local player. Hence this becomes the window of opportunity that the IFM companies must grab.

This strong influx of tourists and their movement will obviously create a huge demand for superior quality service and manageable price point. IFM companies have to take care that they package their services properly in order to grab and make most of this opportunity. It is not that this opportunity would not come without problems. The hotel industry is growing, no doubts about it but the issue of low room occupancy is killing the mood. As of now, the average national room occupancy is about 69% which is an indicator of a slow rate of growth. However, this is going to change as the average revenue earned per room for India has been quite stable.

Nevertheless, the prospects of business growth that the mid-market hotel industry brings to the platter of the housekeeping companies is something which cannot be ignored. Its all about being flexible with the service offerings.

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