Are you considering owning a hotel franchise but are unsure whether it is a sensible investment?

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August 25, 2021

Purchasing a franchise allows you to own a business without having to create one from the ground up. Of course, it’s no secret that buying a hotel is costly, let alone the ongoing operating costs. A travel franchise or hotel business, on the other hand, can generate substantial earnings and potentially make you a millionaire if correctly managed.

The critical question is whether or not a hotel franchise is a good long-term investment?

To understand that, here are some of the benefits of having a franchise:

Not Taking The Road Less Traveled

The biggest mistake a potential franchisee can make is to invest in a franchise without first researching its track record. The hotel franchise industry, thankfully, has a long history. In fact, for the past four decades or so, franchising has been the most common route for investors to acquire hotel ownership.

Purchasing a hotel franchise will not be too foreign. Many mentors will be available for guidance, and one will follow in the footsteps of successful franchisees. One can improve their chances of success as a business owner by learning from their strengths, shortcomings, and failures.

Get Instant Identification

When a person purchases a hotel franchise, they are given an immediate identity. The location quickly becomes known, and they begin to receive customers on the first day of operation. In a world where consumers seek unique experiences and brands, consider that brand identity is crucial.

Profitability is ensured with year-round support.

In most hotel franchises, the franchisor or head office provides training, technical support, and customer service to franchisees. Even before that, the franchisor plays an essential role in determining a strategic location based on an extensive study. Being a franchisee allows one to study the franchise’s previous financials to estimate expenses and revenue.

Excellent Option

When it comes to profitability and brand awareness, not all hotel chains are made equal. However, with so many hotel franchises to pick from, one may easily select the one that would provide the best return on investment in the target area. It all comes down to picking the correct franchise to make money as a franchisee.

Comparable Low-Starting-Costs

While buying a hotel franchise isn’t inexpensive, the launch expenditures are much lower than starting from the ground up. There are no costs associated with hiring, outfitting, or even remodelling.

Financial Aid for Purchasing a Hotel Franchise

Obtaining business financing to construct or operate a hotel can be a complex undertaking. As a franchisee, you must shoulder the responsibilities of the franchisor. Lenders are often more than eager to issue a line of credit as a result of this. Creditors, suppliers, and other business partners will be happy to extend the necessary financial credit.

Revenue Management System (RMS), the backbone of the Hospitality Industry

By

Himanwita Mazumdar

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August 25, 2021

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Every profit-oriented company’s primary goal is to generate an acceptable profit. As a result, “profits” has become a vital indicator of a company’s efficiency. Businesses can manage their profitability in a variety of ways in practice. For instance, an industry can manage its turnover by charging customers in a different method. It implies that a wide range of clients is willing to pay.

The technique of using data to construct intelligent, profit-boosting pricing models is known as revenue management.

It’s used in various kinds of enterprises. Revenue management is used more explicitly in the hospitality industry, and it is handled through a Revenue Management System (RMS).

Now, What exactly does the RMS do?

A Revenue Management System (or RMS) is an intelligent software system that automates crucial revenue management processes to save time and improve efficacy. Based on the data they collect and analyse, these systems let hospitality organisations determine and recommend appropriate prices for a specific time of year, customer type, or channel.

It is the nature of the tourism sector. No matter how big or small, all hospitality operators must compete with a plethora of factors that eventually affect their reservations, such as supply and demand. Revenue Management Software (RMS) assists with this, which is why it is such a significant resource for hospitality industry owners and operators.

It first and foremost aids firms in increasing their bottom line by optimising rate tactics, but it is far from the only advantage.
RMS software can significantly improve operational efficiency. These systems put in the effort to do time-consuming calculations and labour-intensive jobs, reducing human error and wage costs.
It’s also critical for providing organisations with revenue estimates in the future, allowing them to make better-informed strategic decisions and boosting overall business stability.

There is no such thing as a “one size fits all” solution to Revenue Management Systems (RMS). RMS software is frequently available as a standalone system, but other software packages, such as Property Management Systems (PMS), typically include revenue management functions that might be just as useful.

Revenue Management Systems are, for the most part, complete software programmes with a wide range of features and functions. With that in mind, below are the key features:

1. Rate Recommendations

The capacity to swiftly and accurately calculate appropriate room rates utilising advanced algorithms, prior performance data, current market data, and other information is perhaps an essential aspect of most Revenue Management Systems. Room pricing can thus be modified across all distribution channels from the main dashboard.

2. Competitor Information

Most RMS software offers an integrated competitor rates capability that quickly compares room prices for nearby hotels or comparable-sized hotels. This feature is helpful since it takes a more strategic approach to your pricing once you better understand your competitors’ rates.

3. Key Performance Data

A Revenue Management System stores and provides essential performance data, such as occupancy rates, revenue per available room (RevPAR), and average daily rates (ADR), among other things. Users can see performance data from the previous month, the same time last year, and a range of different alternatives in most circumstances.

4. Revenue Estimations

Finally, in addition to displaying historical data and setting room rates, a Revenue Management System provides estimates for both the revenue and profit that is likely to be generated through the current pricing strategy. And also the revenue and profit potential that can develop through alternative pricing strategies.

A Revenue Management System can help with each of these factors. Revenue management is the practice of selling the appropriate room, to the right client, at the right time, for the right price, via the right distribution channel.

The government intends to give over Air India by December

By

BRL Editor

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August 24, 2021

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The Department of Investment and Public Asset Management (DIPAM) has voiced high hopes that the financial bidding process for Air India’s strategic disinvestment will take place next month, while also stating that the government intends to give over the airline by December.

According to a source in the department, the Bharat Petroleum Corporation (BPCL) transaction will be concluded only by the end of the current fiscal year, with financial bidding expected to be done by December.

The second wave of the COVID-19 epidemic has hampered BPCL’s strategic sale, but it will be completed before the end of the current fiscal year. In the meantime, due diligence is being conducted in the instance of the Shipping Corporation of India.

The Cabinet Committee on Economic Affairs authorised the strategic sale of Air India in February 2019, while the strategic sales of BPCL, SCI, and Container Corporation of India were approved in November 2019. The government intends to raise Rs 1.75 lakh crore in the current fiscal year through disinvestment and strategic sales.

India must pick between a $35 trillion loss and an $11 trillion gain in terms of climate action impact

By

BRL Editor

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August 23, 2021

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Depending on its path now, India could lose as much as $35 trillion in economic potential or gain as much as $11 trillion in economic worth. According to a research by the Deloitte Economics Institute titled “India’s Turning Point: How Climate Action Can Drive Our Economic Future,” India must act now to avoid losing $35 trillion in economic potential. However, if India can keep global temperatures from rising too high and realize its potential to ‘export decarbonisation’ to the rest of the globe, its fortunes could turn around and the country could earn as much as $11 trillion in economic value.

By the end of the century, average global temperatures could have risen by 3 degrees Celsius or more if no action is taken. As a result, people will find it more difficult to live and work as sea levels rise, crop harvests plummet, and infrastructure is damaged, among other things.

In terms of economic activity, services (both public and private), manufacturing, retail and tourism, construction, and transportation are predicted to be the most impacted industries in the next 50 years. Currently, they account for more than 80% of India’s GDP. According to the analysis, these five industries alone would lose more than $1.5 trillion in yearly value added to GDP.

Not all has been lost. According to the report, if governments, corporations, and communities act quickly and forcefully to address climate change, global warming might be restricted to roughly 1.5 degrees Celsius by 2050. Not only for India but also for the rest of the world, this would reduce the impact of climate change. India could provide the products, services, and financing that the world would require to keep global warming to a minimum and achieve major economic growth.

According to the paper, accelerated decarbonisation might benefit both India and the rest of the world. It might help India migrate to a low-emissions economy, restructure its economy, and take advantage of lower-cost clean energy export markets.

Because India is a developing country, the transition to a low-emissions economy would be difficult. It will have to strike a balance between the requirement for economic growth and the rise in energy demand that follows and investing in and transitioning to developing low-emission technologies. According to the analysis, the economic benefits of ambitious climate policy implementation would be obvious as early as the first year. This might result in an 8.5 per cent increase in GDP in 2070 alone.

India’s ReNew Power will go public on Nasdaq, to raise $1 billion

By

BRL Editor

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August 23, 2021

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Tomorrow, ReNew Power, India’s largest renewable energy independent power producer (IPP), will go public on the Nasdaq, raising around $1 billion. It will be the first major renewable energy company in India to go global and list on the New York Stock Exchange.

ReNew Power is now backed by Goldman Sachs, CPP Investments, Abu Dhabi Investment Authority, GEF SACEF, and JERA. Goldman Sachs’ ownership will drop from 49 percent to around 33 percent after the IPO. CPP Investments and Abu Dhabi Investment Authority’s shareholdings, which were each over 17 percent, will be reduced to around 13 percent. The new institutional investors will own roughly 20% of the company.

The proceeds from the IPO will be used to fund the company’s expansion goals, which include a goal of 18.5 GW of operational wind and solar power by 2025. ReNew now has roughly 6 GW of operating capacity and another 4.5 GW in the works. On the back of around 7 GW of commissioned capacity, the company is expected to generate an EBITDA (earnings before interest, taxes, depreciation, and amortization) of $800 million in the current financial year. ReNew is looking at the potential in battery storage, grid management systems, solar panels, and module manufacturing as India’s power sector opens up.

Paytm and HDFC Bank have partnered to launch co-branded products for digital payments

By

BRL Editor

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August 23, 2021

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Paytm and HDFC Bank has launched a strategic alliance to provide financial services throughout India. The IT behemoths will roll out products in the areas of digital payments, lending, and point-of-sale systems. Both organizations’ combined network is projected to have a large reach.

Paytm and HDFC Bank will work together to develop complete solutions that include payment gateways, POS machines, and credit products such as Paytm Postpaid, Eazy EMI, Flexi Pay, and more.

The companies will roll out a payment gateway and POS systems for Indian merchant partners in the first phase.

Paytm will offer its existing line of Android POS systems to merchants who collaborate with the lender, according to the firms. Salespeople from HDFC Bank will begin marketing Paytm’s payment options in the market.

Paytm and HDFC Bank will also collaborate on a co-branded POS device for the retail sector, which Paytm will be able to sell to its customers.

With 333 million customers and 21 million merchants on board, Paytm is one of the country’s leading payment networks. One of the largest private lenders is HDFC Bank. It has a total of 50 million cardholders, both credit, and debit.

Coffee Day’s 3.04 percent ownership is sold by KKR Mauritius

By

BRL Editor

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August 23, 2021

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KKR Mauritius, a private equity firm, has sold 3.04 percent of its Coffee Day stock. It has kept 3.3 percent of its holdings. KKR owned 6.07 percent of Coffee Day Enterprises before the sale.

KKR Mauritius disclosed to the Securities and Exchange Board of India (SEBI) that it sold half of its 1,28,26,912 shares on the stock exchange through open market sales.

The private equity firm said it sold 64,29,086 shares with voting rights and maintained 63,97,826 shares with voting rights, representing 3.04 percent and 3.03 percent, respectively.

In July and August, the open market sale was completed in eight tranches. The investor sold 10, 00,000 shares on the 30th of July, 5, 00,000 shares on the 2nd of August, 21, 00,000 shares on the 3^rd of August, 4, 57,066 shares on the 4^th of August.

In 2010, KKR Mauritius invested Rs 360 crore in Coffee Day to buy a fourth of the company. It sold a 5.9% stake for Rs 405 crore in 2018. VK Siddhartha, the instigator of the coffee chain, died in 2019. Lenders, tax officials, and investors all put pressure on him. Coffee Day Enterprises’ stock price plummeted from above Rs 360 to less than Rs 30 per share.

On Monday, shares of Coffee Day Enterprises Ltd were trapped in a 5% downward circuit on the BSE. The stock began at Rs 26.30, down 5% from its previous closing of Rs 27.65. On the BSE, the company’s market capitalization plummeted to Rs 555.59 crore.

Business Review Live

By

BRL Editor

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August 17, 2021

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The CEO of HCL Technologies Ltd. might become the highest-paid manager among his peers

By

BRL Editor

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August 9, 2021

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President and CEO C. Vijayakumar of IT services business HCL Technologies Ltd. is expected to earn roughly $10.8 million per year over the next five years, making him the highest-paid IT executive among peers in the Indian software services industry.

The salary increase also indicates that the country’s third-largest software exporter has abandoned its decades-long practice of being a cautious paymaster.

Vijayakumar, the company’s CEO since October 2016, was not on the board of directors. Last month, founder Shiv Nadar stepped down from the board of directors, allowing Vijayakumar to be named Managing Director, along with the titles of CEO and MD, for a five-year term beginning July 20.

The Noida-based company revealed its CEO’s remuneration in its annual report for the primary time, adding that Vijayakumar will bring home an annual base salary of $2 million for the year ending March 31, up to $2 million in variable pay, as well as $384,000 in perquisites and other benefits, taking his total compensation to $4.38 million.

In addition, he will receive $31.5 million available options and restricted stock units over the subsequent five years, from March 31, 2026, to March 31, 2026. HCL, on the other hand, did not provide the breakdown of stock options and restricted stock units (RSUs) Vijayakumar will receive each year.

Google is planning to release its own processor for future Pixel phones

By

BRL Editor

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August 3, 2021

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Google, owned by Alphabet Inc., will utilize in-house processors for its Pixel phones, which will be released later this fall, marking a departure from Qualcomm Inc.’s technology, which has powered the search giant’s Android smartphones for more than 15 years.

Google announced in a blog post that the Tensor processor would power the Pixel 6 and Pixel 6 Pro phones, with further specifics to be revealed closer to the launch.

Qualcomm, the world’s largest producer of wireless processors for cell phones, was down slightly in afternoon trade.

The next Pixel phone, the 5a, will still use a Qualcomm CPU, according to Google.

“We will continue to work closely with Google on existing and future products based on Snapdragon platforms,” – a Qualcomm spokesperson said in a statement.

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