Capacity Building of the Budget Hotels in Maharashtra: An Empirical Investigation into Operational Challenges and Sustainable Growth Pathways

Abstract

Budget hotels are essential in making tourism more accessible, boosting regional economies, and generating jobs throughout Maharashtra. Maharashtra, as the hub of India’s industry and commerce, attracts a wide range of travelers from corporate professionals to spiritual and eco-tourists exploring places like Shirdi, Nashik, Chhatrapati Sambhajinagar, Matheran, and Konkan across the Maharashtra province. However, because it is so unorganized, budget hospitality is fraught with challenges such as a shortage of skilled workers, poor infrastructure, low technology usage levels, and limited access to financial support. This paper explores the urgent need for capacity building in four components: human capital development, digitization, infrastructure modernization, and financial management. By analysing existing operational models, market aggregator initiatives, and policy initiatives undertaken by the Maharashtra Tourism Development Corporation (MTDC) and the Directorate of Tourism (DoT), this study brings forward the comprehensive framework of capacity-building specifically for mid-market and budget hospitality businesses․