• Tourism and Hospitality
  • Contribution to the Economy
  • Food Service/Resturant/Franchising
Tourism and hospitality

Report 2009 by the World Economic Forum, India is ranked 11th in the Asia Pacific region and 62nd overall, moving up three places on the list of the world’s attractive destinations. It is ranked the 14th best tourist destination for its natural resources and 24th for its cultural resources, with many World Heritage sites, both natural and cultural, rich fauna, and strong creative industries in the country. The India travel and tourism industry ranked 5th in the long-term (10-year) growth and is expected to be the second largest employer in the world by 2019.

Contribution to the economy

Combining unparalleled growth prospects and unlimited business potential, the industry is certainly on the foyer towards being a key player in the nation’s changing face. Furthermore, banking on the government’s initiative of upgrading and expanding the country’s infrastructure like airports, national highways etc, the tourism and hospitality industry is bound to get a bounce in its growth.
The hotel and tourism industry’s contribution to the Indian economy by way of foreign direct investments (FDI) inflows were pegged at US$ 2.24 billion from April 2000 to November 2010, according to the Department of Industrial Policy and Promotion (DIPP).
India’s hotel pipeline is the second largest in the Asia-Pacific region according to Jan Smits, Regional Managing Director, InterContinental Hotels Group (IHG) Asia Australasia.
He added that the Indian hospitality industry is projected to grow at a rate of 8.8 per cent during 2007-16, placing India as the second-fastest growing tourism market in the world. Initiatives like massive investment in hotel infrastructure and open-sky policies made by the government are all aimed at propelling growth in the hospitality sector.

Food Service/Restaurants/Franchising

Increased competition, rising costs, economic concerns and changes in consumer taste all characterize the evolving nature of the food service, restaurants and franchising industry. Companies within this sector must maintain a firm grasp on changing consumer needs and taste trends to continually develop food items that meet consumer demand. Today, operational challenges include labor recruitment and retention, food safety, consolidation, expansion and customer loyalty. Brand awareness is a major focus as food businesses look for new opportunities to build market share.
Our practitioners and services are mobilized around providing solutions to the challenges facing the food service, restaurants and franchising industry. Our 6,000 consumer products, retail and services professionals work with clients to develop appropriate strategies and apply new perspectives that maximize profitability and operations for greater efficiency.

The air transport industry has undergone significant changes within recent years, including but not limited to deregulation, drops in price asymmetries (due to internet booking), increased mobility, an increase in the number of destinations and customers. The advent of online booking and ‘no-frills’ airlines have dramatically altered the needs and desires of a large part of the air transport market. The airline industry is one of the few industries to not benefit from significant economies of scale, thus firms in this sector have to be especially careful about expansion, making sure to control their costs, as well as maintain their quality of service. By developing and enforcing efficient management techniques in maintenance, ground operations and other aspects of flight control will likely lead to substantial productivity increases. One possibility is a significant reduction in the time needed to prepare an airline for takeoff. Airlines that utilize a ‘hub-and-spoke’ system are able to coordinate and alter flight plans quickly, thus increasing the number of flights that an airline can make, as well as making the airline more reliable.
As the number of international airline ventures and partnerships grow, so does the need to update ICT networks and adapt the mix of aircraft to modern consumer tastes and desires. Cambridge Consulting is able to analyze and solve any problems that arise, whether in passenger airlines or in air freight. Cambridge Consulting utilizes best practices for airline and air freight customer segmentation, as well as for price analysis

While the advent of the internet and email have decreased the number of letters passed through post, the postal system is still an integral part of communicating, in the modern world. Along with new technology, the postal system has become more globalized, deregulated, and many postal systems and components of the postal system, in various nations have been privatized.The challenges postal services face in this new day and age are formidable, but not insurmountable. By developing and implementing a solid strategy, in conjunction with consistent and reliable management, long-term planning and open/accountable processes, the firm will be able to prosper and expand.
Cambridge Consulting is able to assist clients in ascertaining and implementing development opportunities, for every significant market segment, in both Jordan and foreign markets. The firm offers assistance, as Postal companies adjust to meet new regulations, as well as assistance in re-organization, re-structuring and privatization. The firm also offers assistance in formulating strategies for maximizing value added processes, as well as developing systems for maximizing performance.

Cambridge Consulting offers a wide variety of services, in analyzing and understanding the rail and public transport sectors, in Jordan and in a wide variety of MENA nations. Cambridge Consulting analyzes such critical issues as the necessary steps towards optimal performance, enhancing employee motivation, enhanced growth, sustainable growth and improving value added service.

The logistics provision sector is facing new challenges on a regular basis; challenges which cannot be met by employing traditional and outdated methods, for example, the skills and organizational structuring needed to maximize the output of global supply chains.
Cambridge Consulting has extensive experience with logistics firms around the world, obtaining experience in the fields of development strategies, expanding into foreign markets and expanding the level and quality of services offered, as well as re-structuring and re-organizing in order to improve efficiency and productivity in processes.

Container shipments are one of the main components of global trade, transporting large goods in a manner that would otherwise be infeasible, increasing trade remarkably, between nations. It is ocean freight that determines the functioning of the global economy, hence its growth is far more significant than growth in any other sector of transportation.Freight shipping is a cyclical sector, to a significant degree, along with being a sector with severe competition levels. It is of note that many firms in this sector are able to cover their costs, while recording minimal profits (over the long term). The sector is also quite fragmented, even with the recent acquisitions and mergers on the part of certain large firms. Container shipping, however, is more concentrated, along with container terminal services. There have been recent moves to expand port capabilities and the volume of loads they can handle, along with developing the necessary connections between land ports.
Cambridge Consulting has offered services to firms at each stage of the production chain, on a wide variety of issues, including but not limited to, formulating corporate strategies, logistical analyses, network planning and design, customer research, analyses and segmentation, minimizing and organizing risk, as well as operational plans and efficiency strategies.

The current count of hotel rooms in India is 130,000, and the country is expected to require an additional 50,000 rooms over the next two to three years, according to World Travel and Tourism Committee (WTCC) estimates.
US-based hotel chain, Marriott International, plans to expand its network in India to 100 hotels over the next five-years, stated Arnie Sorenson, Chief Operating Officer, Marriott International. At present, the group operates 11 properties across the country. Roots Corporation, a subsidiary of Indian Hotels Company (IHC), plans to open 60 to 70 budget hotels, known as Ginger Hotel, in 23 locations across the country. ITC, the Kolkata-based cigarette major, also projected its plan to open 25 new hotels under the Fortune brand over the course of next 12-18 months (or by 2011).

The Indian hospitality sector is certainly the most apt replication of the belief ‘Atithi devo bhava’- touch of tenderness, a helping hand and a welcoming visage. According to the Tourism Satellite Accounting (TSA) research, released by World Travel and Tourism Council (WTTC) and its strategic partner Oxford Economics in March 2010:
The contribution of travel and tourism to Gross Domestic Product (GDP) is expected to increase from 8.6 per cent (US$ 117.9 billion) in 2010 to 9.0 per cent (US$ 330.1 billion) by 2020. Export earnings from international visitors and tourism goods are expected to increase from US$ 11.1 billion in 2010 to US$ 33.6 billion in 2020. Travel and tourism investment is estimated at US$ 34.7 billion or 7.2 per cent of total investment in 2010. By 2020, this should reach US$ 109.3 billion or 7.7 per cent of total investment. Ministry of Tourism aims to create a comprehensive and coordinated framework for promoting golf tourism in India, capitalizing on the existing work that is being carried out, and building upon the strength of India’s position as the fastest growing free market economy.

New Delhi: As more Indians with higher disposable income take to dining out, the hitherto-fragmented restaurant market, estimated at over Rs 1 lakh crore, is emerging as a hot investment target. Moods Hospitality-owned Chinese fast food chain Yo! China plans to raise around Rs 50 crore over the next few months.

Also, New York-based India Equity Partners is in talks to buy out the food services company, Sagar Ratna , an ethnic food retailer which runs a chain of outlets specialising in south Indian cuisine. The food company has been on the block for over a year now. “With growing middle-class incomes and urbanization, we see increasing trend of people dining out. This is why mass market food chains and restaurants are seeking to expand,” said Gaurav Mathur, MD at Indian Equity Partners.

The private equity firm has earmarked funds up to $100 million for acquisitions in the in the fast growing food sector. As per the Food Franchising Report, 2009, prepared jointly by Ficci-CIFTI and Franchise India Holdings, almost one-third of the working class eat out at least once a month and a majority of them spend Rs 101-150 per meal.

Private equity firms are increasingly queuing up to invest in restaurant chains as they seek capital to meet growing demand. “The level of penetration of food services and restaurants category in India when compared to some of the more developed markets is much lower and is bound to go up,” said Mayank Rastogi, partner (private equity) at Ernst & Young.

“The financial backing helped us develop our back-end operations and build our supply chain,” said Ashish Kapur, co-founder and MD at Yo! China. He, however, declined to comment on his plans to raise additional money for the company. Moods Hospitality received its first round of funding of Rs 25 crore from private equity investor Matrix Partners India in 2006. Chennai-headquartered TVS Capital recently invested $11 million in Om Pizzas & Eats. Other prominent investments in the sector include Darby Overseas Investments’ funding of $25 million in Cafe Coffee Day, Chess Capital’s $38 million in US Pizza and SAIF Partners’ Rs 90-crore investment in Speciality Restaurants.

Air Transportation and Travel

Deregulation, greater mobility, increased price consciousness, and new IT developments are just some of the challenges confronting the air and travel industry. In recent years our experts have supported clients (including several of the largest airlines worldwide) in meeting these challenges and resolving their most urgent issues.

Air transportation. With the advance of low-cost carriers and online ticketing, the price and service expectations of air travelers have changed drastically. While the major airlines can expand their global networks, they must control their costs, make their pricing more transparent, and improve their service. The opportunity to capture additional value in operations remains substantial. The successful implementation of lean management principles in maintenance, ground, and other service areas can result in sustainable productivity gains for many airlines. For example, turnaround times can be shortened by up to 25 percent. Airlines that opt for a hub-and-spoke system can adjust flight plans and thereby improve flight capacity utilization and reliability. With more international alliances and partnerships comes the need to reconfigure networks and adjust the fleet mix. Our practice has extensive expertise and experience in addressing these topics in both the air passenger and air freight industries. We have developed innovative approaches to customer segmentation as well as pricing. We leverage sophisticated tools for network modeling. We have detailed knowledge of lean process improvement and business strategy alignment.

Postal, Express, and Parcel Services

In addition to new technologies and systems, globalization, deregulation, and privatization have been the key drivers of change in the post and express world over the past two decades.

Numerous postal companies have successfully navigated the path of privatization from state monopolies to become listed companies. Others are poised to begin this journey. The challenges are huge.

A clear strategy, supported by strong management, detailed planning, and transparent processes, is vital to a corporate transformation.

We Cambridge Consulting Company at this point help our clients identify and pursue growth opportunities in all relevant market segments, both domestically and abroad. We support them as they position themselves to meet regulatory requirements and accompany them on the road to successful privatization. We support them in developing strategies to optimize value-add operations and processes and in implementing performance-management and staff-development systems.

Rail and Public Transport

The key drivers of change globalization, deregulation, and privatization in the post and express world over the past two decades. Postal companies under many different names have navigated the path of privatization from state monopolies to become listed companies effectively. Others are hovering to begin with this stream, as there are huge challenges.

Our team are detailed orientated as in planning, and transparent. Cambridge Consulting helps their clients to recognize and follow growth opportunities in all relevant market segments, both domestically and abroad. We support them as they position themselves to meet regulatory requirements and accompany them on the road to successful privatization. We support them in developing strategies to optimize value-add operations and processes and in implementing performance-management and staff-development systems.

Logistics

Increasingly, logistics service providers face challenges that cannot be overcome by traditional approaches. For example, the competencies and organization required to optimize global supply chains are completely different from those needed to provide traditional transport services while minimizing direct costs.

Our work with leading logistics companies spans a range of topics, including developing growth strategies, addressing the industry’s growing internationalization and demand for more comprehensive services, and supporting lean transformation and operational improvement initiatives on the shop floor.

Our practice supports clients in adapting to the ever-changing market context and in capturing new opportunities. We leverage more than 40 years of industry experience combined with outstanding functional expertise in areas such as operations, corporate finance, organization, and sales and marketing.

Shipping and Ports

Ships are vital to worldwide trade. Container ships are among the largest oceangoing vessels and considered the pack mules of the global economy. The growth of ocean freight is far stronger than the growth of any other shipping or transportation sector.

Shipping can be very profitable. However, the business is cyclical, with periodic overcapacity. Price competition is steep. Over the long term, many companies cover their cost of capital but do not earn a profit. The industry is also very fragmented, although recent signs indicate a move toward consolidation. Container shipping, on the other hand, is somewhat concentrated. Container terminals are also dominated by global players. Industry leaders are making substantial investments to expand port capacity and build the necessary connections inland.

Our practice has served companies along the entire value chain, on topics ranging from corporate strategy redesign to logistics network planning, demand-based customer segmentation, risk management, and operational-improvement programs using lean principles.

Hospitality

The current count of hotel rooms in India is 130,000, and the country is expected to require an additional 50,000 rooms over the next two to three years, according to World Travel and Tourism Committee (WTCC) estimates

US-based hotel chain, Marriott International, plans to expand its network in India to 100 hotels over the next five-years, stated Arnie Sorenson, Chief Operating Officer, Marriott International. At present, the group operates 11 properties across the country. Roots Corporation, a subsidiary of Indian Hotels Company (IHC), plans to open 60 to 70 budget hotels, known as Ginger Hotel, in 23 locations across the country. ITC, the Kolkata-based cigarette major, also projected its plan to open 25 new hotels under the Fortune brand over the course of next 12-18 months (or by 2011).

The Road Ahead

The Indian hospitality sector is certainly the most apt replication of the belief ‘Atithi devo bhava’- touch of tenderness, a helping hand and a welcoming visage. According to the Tourism Satellite Accounting (TSA) research, released by World Travel and Tourism Council (WTTC) and its strategic partner Oxford Economics in March 2010:

The contribution of travel and tourism to Gross Domestic Product (GDP) is expected to increase from 8.6 per cent (US$ 117.9 billion) in 2010 to 9.0 per cent (US$ 330.1 billion) by 2020. Export earnings from international visitors and tourism goods are expected to increase from US$ 11.1 billion in 2010 to US$ 33.6 billion in 2020. Travel and tourism investment is estimated at US$ 34.7 billion or 7.2 per cent of total investment in 2010. By 2020, this should reach US$ 109.3 billion or 7.7 per cent of total investment. Ministry of Tourism aims to create a comprehensive and coordinated framework for promoting golf tourism in India, capitalizing on the existing work that is being carried out, and building upon the strength of India’s position as the fastest growing free market economy.

Resturant Market Emerges as Hot Investment Target (Article)

New Delhi: As more Indians with higher disposable income take to dining out, the hitherto-fragmented restaurant market, estimated at over Rs 1 lakh crore, is emerging as a hot investment target. Moods Hospitality-owned Chinese fast food chain Yo! China plans to raise around Rs 50 crore over the next few months.

Also, New York-based India Equity Partners is in talks to buy out the food services company, Sagar Ratna , an ethnic food retailer which runs a chain of outlets specialising in south Indian cuisine. The food company has been on the block for over a year now. “With growing middle-class incomes and urbanization, we see increasing trend of people dining out. This is why mass market food chains and restaurants are seeking to expand,” said Gaurav Mathur, MD at Indian Equity Partners .

The private equity firm has earmarked funds up to $100 million for acquisitions in the in the fast growing food sector. As per the Food Franchising Report, 2009, prepared jointly by Ficci-CIFTI and Franchise India Holdings, almost one-third of the working class eat out at least once a month and a majority of them spend Rs 101-150 per meal.

Private equity firms are increasingly queuing up to invest in restaurant chains as they seek capital to meet growing demand. “The level of penetration of food services and restaurants category in India when compared to some of the more developed markets is much lower and is bound to go up,” said Mayank Rastogi, partner (private equity) at Ernst & Young.

“The financial backing helped us develop our back-end operations and build our supply chain,” said Ashish Kapur, co-founder and MD at Yo! China. He, however, declined to comment on his plans to raise additional money for the company. Moods Hospitality received its first round of funding of Rs 25 crore from private equity investor Matrix Partners India in 2006. Chennai-headquartered TVS Capital recently invested $11 million in Om Pizzas & Eats. Other prominent investments in the sector include Darby Overseas Investments’ funding of $25 million in Cafe Coffee Day, Chess Capital’s $38 million in US Pizza and SAIF Partners’ Rs 90-crore investment in Speciality Restaurants.