The Impact Of Economic Recession On Delhi's Hotel And  Restaurant Industry: A Comprehensive Analysis

Namira Saleem; Arti Ghai

doi:10.48165/pjhas.2023.9.2.3

Authors

Namira Saleem Front Office Associate, Trident Bandra Kurla, Mumbai
Arti Ghai Senior Lecturer, Institute of Hotel Management, Catering and Nutrition, Pusa, New Delhi

DOI:

https://doi.org/10.48165/pjhas.2023.9.2.3

Keywords:

Delhi, Economic Impact, Global Recession, Hospitality Industry, Hotel, Restaurant

Abstract

Background: The hotel and restaurant industries wield a pivotal influence on the global economy, but they are exquisitely vulnerable to economic oscillations. Comprehending the economic reverberations on these sectors is paramount for formulating efficacious strategies to surmount obstacles and perpetuate growth. Objective: This paper scrutinizes the economic repercussions on the hotel and restaurant industries and probes the factors that sway their performance amidst economic recessions. It also investigates the organizational practices and stratagems implemented to grapple with recessions and ensure survival. Methodology: Cross sectional field survey was executed in Delhi, India, with data amassed from 10 five-star hotels and 30 quick-service restaurants employing a questionnaire. Respondents were in age bracket of 31-50 years in which 70% were male and 30% of the respondents were manager. Chi-square tests, mean calculations, standard deviation calculations, and t-tests were deployed for data analysis. Result: The results unveil momentous associations between factors such as recession causes, severity of impact, measures adopted to combat the recession, and strategies embraced subsequent to the recession. Additionally, the study examines expectations regarding recovery time and organizational practices for retaining employees during a recession. Conclusion: The findings yield invaluable insights into the industry's response to economic recessions and proffer guidance for hotel and restaurant proprietors, managers, and staff to augment their competitiveness and navigate arduous economic circumstances.

References

Altin, M., Schwartz, Z., & Uysal, M. (2017). “Where you do it” matters: The impact of hotels’ revenue-management implementation strategies on performance. International Journal of Hospitality Management, 67, 46-52.

Biju, S. (2014). The 2007–2009 economic recession: A study of impact of the economic crisis on independent owned hotels in Kansas (Doctoral dissertation, University of Phoenix).

Brien, A. (2011). Developing Organisational Social Capital in Hotels: A future Recession Proofing Approach. JOHAR, 6(1), 43.

Chen, M. H. (2010). The economy, tourism growth and corporate performance in the Taiwanese hotel industry. Tourism Management, 31(5), 665-675.

Hrubalová, L. (2015). Strategies Of Hotels To Overcome The Impacts Of Recession. In International Multidisciplinary Scientific Conference On Social Sciences And Arts SGEM 2015 (pp. 763-770).

Jung, S. S., & Jang, S. S. (2020). Have restaurant firms been using right recession turnaround strategies?: Evaluating with propensity score measure. International Journal of Hospitality Management, 91, 102651.

| 26 |

Koh, Y., Lee, S., & Choi, C. (2013). The income elasticity of demand and firm performance of US restaurant companies by restaurant type during recessions. Tourism Economics, 19(4), 855-881.

Lee, K., & Ha, I. S. (2012). Exploring the impacts of key economic indicators and economic recessions in the restaurant industry. Journal of Hospitality Marketing & Management, 21(3), 330-343.

Moussa, M., Essawy, M., & Elziny, M. (2017). The Effectiveness of Marketing Tactics during Economic Recession Periods: The Case of Egyptian Hotels.

Moussa, M., Essawy, M., & Elziny, M. (2017). The Negative Impacts of The Economic Recession on Tourism and Hospitality: Results from a study in Egypt.

Parsa, H. G., Kreeger, J. C., van der Rest, J. P., Xie, L. K., & Lamb, J. (2021). Why restaurants fail? Part V: Role of economic factors, risk, density, location, cuisine, health code violations and GIS factors. International Journal of Hospitality & Tourism Administration, 22(2), 142-167.

Prasad, A.K., Gure, S.S., & Biswas, P. (2021). Food commerce upshots with their former locus in the economy with respect to the pandemic 2020 - a drawback or an aid in south Kolkata, West Bengal. PUSA Journal of Hospitality and Applied Sciences, 8(1), 67-72.

Provance, W. (2009). Recession and its affect on the Las Vegas hospitality industry. UNLV Theses, Dissertations, Professional Papers, and Capstones. 564.

Spanaki, M. Z., Papatheodorou, A., & Pappas, N. (2021). Tourism in the post COVID-19 era: evidence from hotels in the North East of England. Worldwide Hospitality and Tourism Themes, 13(3), 357-368.

Sucheran, R. (2021). Preliminary economic impacts of the COVID-19 pandemic on the hotel sector in South Africa. African Journal of Hospitality, Tourism and Leisure; Vol. 10, Issue 1.

Youn, H., & Gu, Z. (2009). US restaurant firm performance check: An examination of the impact of the recent recession. The Journal of Hospitality Financial Management, 17(2), 35-53.