The 2012 India Hotel Payroll Cost Study recently presented critical data related to payroll cost, with special emphasis on key revenue generating divisions, including rooms and food and beverage departments. The survey received a response from 228 hotels across 66 cities throughout the country, thus reinforcing the industry’s interest and need to focus on critical parameters,
which will assist in managing their business effectively. All data was self-reported by participating hotels and thereafter analysed using models and analytical tools developed in-house by the HVS Executive Search team.
Co-authored by Natwar Nagar, Managing Director, HVS Executive Search and Anupama Jaiswal, Senior Associate, HVS Executive Search this report establishes benchmarks for hotel owners and operators, to create a better understanding of payroll cost and productivity ratios across market positioning and major Indian cities. This survey will assist upcoming hotels to plan their payroll budgets and aid existing hotels to review theirs, resulting in a more effective forecast of the bottom lines.
According to the report, findings indicate that at an all-India level, rooms revenue contributes 55 per cent of the total annual revenue generated by hotels as compared to F&B, which contributes around 38 per cent.
As per the survey findings, rooms' revenue as a percentage of total revenue is found to be the highest in budget hotels followed by midmarket, upscale and luxury. On the other hand, F&B as a percentage of total annual revenue is found to be the highest in upscale hotels, followed by luxury hotels, midmarket hotels and budget.
The report also stated that Bengaluru has reported the highest rooms’ revenue as a percentage of total revenue, while Kolkata has reported the least. On the other side, F&B Revenue as a percentage of total annual revenue is found to be the highest in Kolkata and lowest in Bengaluru.