In recent years, India's hospitality sector has faced a myriad of challenges that have profound implications for both educational institutions and industry stakeholders.
The declining admission rates to hospitality education institutes across the country stand as a stark indicator of underlying issues that demand urgent attention and innovative solutions.
Educational Institute Woes
The root of the problem lies partly in the perceptions and realities surrounding hospitality education. Despite efforts to update and upgrade curricula, there remains a significant gap between what is taught in institutes and the practical skills demanded by the industry. Industry stakeholders frequently lament that graduates are not adequately prepared for the rigors of hotel management and guest services, labelling them as "not industry-ready." This sentiment contrasts sharply with other professional fields like medicine, where graduates undergo rigorous practical training before assuming professional roles. It is said a MBBS-Graduate is provided the basic education in the college while the same MBBS graduate is made a Doctor in the Hospital. Similar phenomenon applies to many professional course and industrial practices. But the hospitality industry expects industry ready professionals. Does it sound justified?
Central and private hospitality institutes alike are feeling the pinch, with declining enrolment leading to financial strain with depleting revenue. The repercussions are profound, affecting the institutes' ability to deliver quality education and adapt to evolving industry standards. The recent trends in admissions, especially evident in the NTA-conducted JEE for Hotel Management, reflect a worrying decline since 2016, exacerbating concerns among educational leaders and policymakers.
Industry Realities and Workforce Challenges
On the flip side, India's burgeoning hospitality industry, characterized by thriving business metrics such as high Average Room Rates (ARR) and occupancy rates, presents a contrasting picture. However, this success story is marred by a concerning reduction in manpower within hotels. The shift from a ratio of 1:1.75 (rooms to manpower) to an approximate 1:0.75 signifies a deliberate effort by hotel owners to streamline costs, albeit at the expense of service quality. Majority of the hotels would agree to this ratio of room to manpower indicated above.
Brand managers, caught between profitability targets set by owners and the imperative to maintain service excellence, face a daunting task, finally inclining towards the hotels’ profitability The resultant high attrition rates—currently hovering around 55%—underscore the human resource challenges faced by the industry. Entry-level employees endure gruelling hours and low wages, often leading to disillusionment and a high turnover rate.
The Way Forward: Collaboration and Innovation
Addressing these multifaceted challenges requires a concerted effort from all stakeholders—educational institutions, industry leaders, and policymakers. Firstly, bridging the gap between academic learning and industry demands through comprehensive curriculum reforms is crucial. Practical, hands-on training must be emphasized to ensure graduates are truly prepared for the dynamic hospitality environment.
Secondly, there is a pressing need for industry-wide initiatives to enhance working conditions and career progression opportunities. Hotels must strike a balance between cost-cutting measures and investing in skilled manpower to uphold service standards. This recalibration is essential not only for employee retention but also for sustaining customer satisfaction and loyalty.
Thirdly, collaborative efforts between educational institutes and industry players can foster innovation in hospitality education. Internship programs, mentorship initiatives, and continuous professional development are avenues that can enrich the learning experience and groom future hospitality leaders.
Lastly, policymakers play a pivotal role in incentivizing investments in hospitality education and promoting the sector's growth. The Policy makers must mandatorily include the clause for the hotels ‘to have at least 50%of the manpower from hospitality schools for the star rating, irrespective of any star category. Financial support, regulatory reforms, and industry-academia partnerships can create an enabling environment for sustainable development for the hospitality schools.
Conclusion
As India's hospitality industry navigates these turbulent waters, the path forward hinges on proactive measures and collective commitment. By addressing systemic challenges, nurturing talent, and embracing innovation, stakeholders can unlock the vast potential of India's hospitality sector. The journey towards excellence in hospitality education and service delivery promises to be arduous yet rewarding—a testament to the resilience and adaptability of an industry poised for transformation. The hospitality schools are one of the oldest professional organisations need strong support from the government for its sustainability. The Government must ensure the actual implementation of the minimum wages act, the payment of wages act and the employee’s provident fund for the hotel employees on ground. Considering the high attrition rate of the hotel employees all over India, the Government must ensure proper monitoring and disbursement of the deducted EPF to the employees.
Dr Jagat Mangaraj
Jagatmangaraj.in
