GST in Hospitality: Complex Rates Spark Debate for Simplification

GST in Hospitality: Complex Rates Spark Debate for Simplification

By Nishang Narayan

Published on September 15, 2024

The Goods and Services Tax (GST) was introduced to unify India's tax system, but its complexity has posed significant challenges for the hospitality industry. Hoteliers across the country are grappling with a maze of multiple GST rates, leading to confusion for both businesses and customers.

Currently, hotels and restaurants face different GST rates: 5% for non-AC restaurants, 18% for those with air conditioning or liquor licenses, and up to 18% for hotels with room rates above ₹7,500. These disparities have created confusion, compliance burdens, and a negative impact on customer experiences.

Humor Highlights GST Confusion in Coimbatore

A recent discussion in Coimbatore brought these challenges to the forefront when Srinivasan, President of the Tamil Nadu Hotel Owners Association, humorously described the GST woes to Union Finance Minister Nirmala Sitharaman. He pointed out the absurdity of different GST rates: "There is no GST on a pan, but 18% on cream. Customers joke they’ll buy the ingredients separately and make dishes themselves!” He called for a uniform GST rate to simplify the process.

Srinivasan also shared an amusing anecdote about MLA Vanathi Srinivasan, a regular customer at his restaurant, highlighting the confusion caused by multiple GST rates on a single bill. “She eats jalebi with 5% GST, then orders spicy coffee with 12% GST. It’s a daily struggle for us,” he remarked, drawing laughter from the crowd.

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A Call for Simplification

The humorous tone underscored a serious plea for a simplified GST regime. Srinivasan urged the government to adopt a single GST rate across all services to reduce the administrative burden on businesses and enhance transparency for customers.

He also noted the complications created by platforms like MakeMyTrip, which dictate room rates and affect the GST charged year-round. “We charge 18% GST on a ₹7,500 room rate all year, even if it’s only applicable for special events once a year,” he added, calling for a reassessment of these policies.

Impact on Customers and the Industry

The complex GST structure impacts both customers and businesses. Customers face inconsistent pricing and unexpected costs, while businesses must manage increased administrative duties and compliance costs, diverting resources from their core mission of providing excellent hospitality.

The Need for GST Reform

The hospitality sector's demand is clear: a simplified GST rate across all services. This change could ease compliance burdens, reduce costs, and improve experiences for customers. As stakeholders continue to voice their concerns, the government’s response will be critical in shaping a fairer, more transparent GST system that benefits everyone.

Hotel owners and customers alike hope for swift reforms that will address these challenges and support the growth of the hospitality industry in India.


Redefining Hospitality in the Era of Short-Term Rentals

Redefining Hospitality in the Era of Short-Term Rentals

By Shreenidhi Jagannathan

Published on January 6, 2025

In the ever-evolving world of travel, the rise of short-term rental platforms like Airbnb has reshaped the hospitality landscape. These platforms have tapped into the aspirations of modern travelers seeking authentic, flexible, and often cost-effective accommodations. As they grow in popularity, traditional hotels face an imperative: adapt or risk irrelevance. The challenge is not merely about survival but about reimagining what hotels can offer in this competitive environment.

While the allure of short-term rentals lies in their promise of living like a local, traditional hotels possess inherent strengths that, when harnessed creatively, can redefine the guest experience. The key lies not in mimicking the short-term rental model but in amplifying what makes hotels unique and indispensable.

The Soul of Hospitality: Personalized Experiences

At the heart of the hospitality industry is the art of service—a human connection that no algorithm can replicate. Hotels have long been sanctuaries of comfort, offering guests not just a place to sleep but a curated experience designed to anticipate their needs. From a warm welcome at check-in to bespoke concierge services, the potential for personalization is boundless.

Imagine a hotel stay where technology works seamlessly to enhance—not replace—human interaction. Pre-arrival communication could gather insights about a guest’s preferences, enabling hoteliers to craft tailored experiences. A guest might arrive to find their favorite coffee blend waiting in the room or discover a list of local recommendations that align with their interests. These seemingly small touches can create an emotional resonance, transforming a stay into a cherished memory.

Community and Culture: The New Frontier

One of the primary reasons travelers gravitate toward short-term rentals is their connection to local culture. Hotels, too, can champion this cause by embedding themselves in the fabric of their communities. Collaborating with local artisans, hosting pop-up markets, or offering neighborhood tours led by in-house guides are just a few ways hotels can deliver an authentic slice of the locale.

The design of hotel spaces can also play a role. Moving away from cookie-cutter aesthetics to interiors that reflect local heritage and craftsmanship can make a hotel feel less like a global chain and more like an extension of the destination. By positioning themselves as gateways to cultural immersion, hotels can offer guests an experience that feels both personal and profound.

Flexibility in a Structured Framework

Short-term rentals thrive on flexibility, giving travelers the freedom to customize their stays. Hotels, traditionally bound by more rigid structures, must embrace this ethos without compromising their operational efficiency. Offering extended check-in and check-out hours, customizable room layouts, and even co-working spaces for the growing number of digital nomads can position hotels as adaptive and modern.

Moreover, loyalty programs can evolve to reward not just frequent stays but diverse interactions with the brand—whether it’s dining at the hotel restaurant, attending a wellness retreat, or engaging with the hotel’s social media community.

Hotels as Catalysts for Change

As a passionate observer of the hospitality industry, I believe this is not merely a challenge but a golden opportunity. Short-term rentals have disrupted the industry, yes, but they have also illuminated what travelers value most. Hotels, with their established infrastructure and wealth of expertise, are uniquely positioned to not just meet these expectations but exceed them.

The future of hospitality will be defined by those who embrace innovation while staying true to the essence of their craft. A world-class hotel is more than just a room; it is a stage for unforgettable moments, a haven of trust and safety, and a beacon of excellence in service. By doubling down on these qualities, hotels can carve out a distinct space that no algorithm-driven platform can replicate.

The race is not to the swift but to the creative, the adaptable, and the visionary. The question is not whether hotels can compete with short-term rentals but how they will evolve to lead the industry once again. It is a challenge worth embracing—for the sake of the industry, its professionals, and, most importantly, its guests.


Embracing Wellness: How Hospitality is Transforming to Rejuvenate Mind, Body, and Soul

Embracing Wellness: How Hospitality is Transforming to Rejuvenate Mind, Body, and Soul

By Shreenidhi Jagannathan

Published on January 6, 2025

In an era where personal well-being has taken center stage, the hospitality industry is witnessing a profound transformation. Travelers today are no longer content with mere comfort and convenience; they are seeking holistic experiences that nurture the mind, body, and soul. This paradigm shift has ushered in the era of wellness-centric travel, compelling hotels and resorts worldwide to rethink their offerings and cater to this growing demand.

The Rising Demand for Wellness-Oriented Stays

The pandemic acted as a catalyst, heightening awareness around physical and mental health. Travelers now view their vacations as opportunities to rejuvenate, rather than just escape. According to a recent study by the Global Wellness Institute, the wellness tourism market is projected to grow at a rate of 7.5% annually, reaching a valuation of $1.2 trillion by 2027. This growth underscores the critical need for the hospitality sector to integrate wellness into its core services.

What Defines a Wellness-Centric Experience?

Wellness-centric offerings extend far beyond a gym and a spa. Modern travelers expect:

  • Personalized Fitness Programs: From sunrise yoga sessions on the beach to guided hiking trails, fitness experiences tailored to individual preferences are becoming a hallmark of wellness retreats.

  • Mindfulness and Mental Well-being: Meditation classes, digital detox zones, and even dedicated mental health counselors are being incorporated into hospitality services.

  • Nutritional Excellence: Healthy dining options with organic, locally sourced ingredients are now a prerequisite. Culinary innovations such as plant-based menus and diet-specific offerings (e.g., keto, gluten-free) have become essential.

  • Integrated Wellness Packages: Multi-day retreats offering a blend of activities like hydrotherapy, aromatherapy, and sound healing are attracting a niche yet growing segment of wellness travelers.

Innovation at the Forefront

Leading brands are redefining wellness travel through innovation. For instance:

  • Six Senses Hotels Resorts Spas have embraced sustainability and wellness at their core. Their "Integrated Wellness" programs use data-driven approaches, including biometric testing, to curate personalized health plans for guests.

  • Westin Hotels & Resorts leverage their “Sleep Well” programs to ensure a restful stay, with features like lavender sleep balms and plush bedding designed for optimal recovery.

  • Anantara Resorts combine cultural immersion with wellness, offering guests activities like Thai boxing for fitness, coupled with traditional spa treatments.

Opinion: Wellness as a Strategic Pillar

The move towards wellness-centric offerings is not just a passing trend; it’s a strategic imperative. In a hyper-competitive industry, wellness services provide differentiation, fostering guest loyalty and repeat business. Moreover, these offerings align with broader sustainability goals, as many wellness practices advocate for eco-friendly and socially responsible initiatives.

However, to truly excel, the hospitality industry must go beyond superficial add-ons. Authenticity is key. Wellness programs should reflect a genuine commitment to guest well-being, integrating seamlessly with the hotel’s brand ethos. Hotels must also invest in staff training to deliver these experiences effectively, as knowledgeable and empathetic service is integral to a successful wellness journey.

Future Trends in Wellness Hospitality

The wellness travel boom is here to stay, with emerging trends pointing towards even more specialized offerings:

  • Tech-Integrated Wellness: Virtual reality meditation rooms and AI-driven fitness trainers are on the horizon.

  • Cultural Fusion: Combining wellness practices with local traditions, such as Ayurvedic treatments in India or Onsen baths in Japan, will gain traction.

  • Family Wellness: Resorts are creating programs that cater to multi-generational wellness, ensuring every family member benefits.

The evolution towards wellness-centric hospitality represents a seismic shift in how the industry engages with its clientele. By prioritizing holistic well-being, hotels and resorts are not just enhancing guest experiences; they are redefining their role in the lives of their patrons. As the lines between travel, lifestyle, and health continue to blur, the hospitality sector has a unique opportunity to lead this wellness revolution—one mindful step at a time.


Welcoming 2025: New Year’s Greetings from the Hospitalitynews Family

By Author

Published on January 1, 2025

As the calendar turns a new leaf and the promise of a fresh year shines brightly, the Hospitalitynews team extends its warmest wishes to all our readers, partners, and the incredible hospitality community!

2024 has been a remarkable year for Hospitalitynews as we continued to connect, inspire, and collaborate with industry leaders, visionaries, and enthusiasts. Together, we’ve celebrated the achievements of the hospitality world, explored new trends, and shared stories that have defined our shared journey.

Now, as we step into 2025, we look forward to embracing new opportunities, fostering innovation, and growing stronger together. Our mission remains unwavering—to be the voice and advocate for the hospitality industry, connecting you with the latest news, insights, and trends that shape our vibrant community.

To all the hoteliers, restaurateurs, chefs, and countless professionals who make hospitality a cornerstone of joy and comfort worldwide, we say thank you. Your dedication and passion inspire us every day.

Let’s make 2025 a year of success, growth, and unity. May it be filled with health, happiness, and unforgettable moments for everyone.

Cheers to a brighter tomorrow!

With love and gratitude,
The Hospitalitynews Team

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