With economic slowdown, which has convinced travellers travelling when it requires, a large number of hotels companies in the last three years has been refraining from increasing their employee expenditure and continue to maintain employee costs well within a certain limit.
In the last three years, hotels companies such as Oriental Hotels, Kamat Hotels,
Royal Orchid Hotels, Taj GVK Hotels & Resorts and also Indian Hotels, have been maintaining their employee costs as a percentage of net sales in a particular limit.
One of the largest hotels in the country Indian Hotels in the last three years have maintained employee expenses as a percentage of net sales in the range of 33-34%.
On the other hand, mid-size hotels companies such as Oriental Hotels and Royal Orchid Hotels, have been maintaining employee expenses as a percentage of net sales in the range of 19-20%.