The hotel industry in India has been evolving since long, though the situation was very different in the earlier days when India had just a few five-star hotels and few budget hotels. The hotel industry is the service industry is intangible, for which the guest will have a great experience at the hotel. This industry is diverse in nature and global opportunities are growing due to accelerating growth of the service economy. The hotel industry Average Room Rate (ARR) and occupancy are the two most important factors that determine profitability. The hotel industry in India is growing at the fast pace which includes business hotels, resorts, apartments, etc. along with that the Food and Beverage outlet also growing in the faster rate.

Keywords: Attrition Rate, Budget Hotels, Service Industry, Average Room Rate (ARR), Profitability.