Financial challenges in the Indian hospitality industry

Gunjan M. Sanjeev (Institute for International Management and Technology, Gurgaon, India)
Kanika Gupta (Institute for International Management and Technology, Gurgaon, India)
Rumki Bandyopadhyay (Institute for International Management and Technology, Gurgaon, India)

Worldwide Hospitality and Tourism Themes

ISSN: 1755-4217

Publication date: 6 April 2012



The purpose of this paper is to provide a practitioners' perspective on financial challenges prevalent in the Indian hospitality industry. The paper also makes an attempt to give useful insights into possible solutions to the issues raised.


The study assimilates data from senior finance professionals from a spectrum of hotels in India. The study involves the collection of primary data through structured interviews.


The study highlights that some of the financial challenges faced by the Indian hospitality industry include high financing costs, multiplicity of taxes charged, licensing and legal issues, working capital issues and eroding margins. The study also gives some useful insights to the possible solutions to the challenges identified.

Research limitations/implications

This paper provides some very useful qualitative analysis of the contemporary challenges and their possible solutions prevalent in the Indian hospitality sector. The findings will be useful for hoteliers, policy makers and researchers to deliberate on the issues raised. However, it does not involve any quantitative analysis.


This study makes a sincere attempt to bring forth some real life issues, challenges and solutions which would be a good value addition to the existing literature.



Sanjeev, G., Gupta, K. and Bandyopadhyay, R. (2012), "Financial challenges in the Indian hospitality industry", Worldwide Hospitality and Tourism Themes, Vol. 4 No. 2, pp. 163-173.

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Copyright © 2012, Emerald Group Publishing Limited

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