Hospitality, Hotels, Service Apartments in Bangalore face slowdown.
Jobs in Bangalore Hospitality, Travel industry may come down.
(Write up first Published in Oct 2008)
As suggested by Countryboat.com earlier, Bangalore Service Apartments business is heading for tough times.
Many indicators suggest that Hospitality business in Bangalore, including Service Apartments and
Hotels are facing slowdown. For example, a recent survey points out the possibility of drop in
job recruitment in Hospitality industry in Bangalore. This means Hospitality Industry- which
includes Hotels, Service Apartments, Travel and Tourism industry in Bangalore -- faces slowdown.
Indian Hotels, Hospitality industry, Tourism Industry are likely to recruit less employees in the
aftermath of Global recession, says Manpower Employment Outlook Survey (MEOS) . This is
happening in the context of global travel business slow down. The industry insiders predict
that there will be 5 per cent fewer holidays traveling. Travel companies say that they
expect the number and length of holidays will come down as a result of global recession.
Many travel companies will go under.
According to MEOS survey, in the coming months,
employers in both the Services sector and Finance, Insurance & Real Estate sector are less optimistic than
they were in Quarter 3. Many employers of Indian Travel and Hospitality companies are likely to cut down
costs. Even if they want to recruit new employees, temporary recruitment may overtake permanent in the
short-term, so that the managements will have the flexibility to hire and fire.Compared to Hotels, Bangalore
Service Apartments do not employ large number of employees. But the overall crisis in the hospitality
industry may cause many Service Apartments closing down and as a result of that large number of Service
Apartments Employees losing their jobs.
Airline industry is facing crisis world over. Willie Walsh, the British Airways chief executive, is
predicting that up to 30 airlines worldwide will go bust. 
Encouraged by the support given by India Aviation minister Praful Patel, who publicly said that
there would be no intervention from his ministry in case of sackings by airlines, more Airlines
in India would sack employees in the coming days. Leading private carrier Jet Airways has
already sacked 1900 employees.[*] Kingfisher Airlines has laid-off nearly 300 jobs and may
announce more cuts across the board in the coming days.. Due to good equations and business
partnership between key players in Government and Indian Private Airline Industry, many believe
private Airline Companies may succeed in getting Govt help. However this bail out package may
not be able to reverse drop in premium air traveler numbers in India or troubles of Indian
Airlines companies. This is another major concern for Hospitality, Hotel and Service Apartments
Though MEOS survey suggests that IT sector may not witness much reduction in recruitment, media
reports indicate this is only in anticipation of recruitments to Special Economic Zones. Though
Bangalore has its own IT SEZs, in the wake of global melt down, it is to be seen how positive
will be the response of global investors in the near future. Media had earlier reported that
prominent colleges in Bangalore admitted to a marked drop in recruitment numbers. According
to these reports, there is a 25 % drop in recruitments in almost all top companies.
These are all indications that it is going to be tough time for the Hospitality industry in
Bangalore including Hotels, Serviced Apartments and Travel and Tourism companies.
* It is to be Noted here that late on 16th Oct. Thursday night, in a dramatic U-turn, Jet Airways
reinstated all sacked employees and India Aviation minister was quick to claim the credit of it.
Thus at least till the Elections are over, there may not be large scale sacking of employees, but
the Airline managements may try alternative remedies like slashing the salary.
(Note added on 19th Oct. 2008)