When the topic of the global economy arises, talking about the tourism and hospitality industry is a must. It’s literally one the biggest contributors to significant GDP percentages. In India, this tourism and hospitality industry was valued at over $234 billion in 2021 and is expected to reach $460 billion by 2028, growing at a CAGR of 8.5%. This is great, but it comes with challenges—especially in infrastructure.
As travelers from around the world swarm into India’s hotspots, the demand for suitable accommodations is surging. Modern travelers are seeking a balance between comfort and functionality, and are increasingly drawn to modular options. These spaces, known for their quick availability, adaptability, and contemporary design, are giving travelers the bang for their buck. Let’s know more.
What is Modular Construction?
Modular construction is the next best thing. In fact, it’s been a while since its arrived, although major corporations have not made the switch completely. It involves the on-site construction of prefabricated sections (or modules) of a building in a controlled environment. Modules are taken to the final location and assembled together like legos. This happens fast, with higher quality control and reduced environmental impact.
Speed: A Competitive Edge
‘Speed-to-Market’ is critical when in the tourism and hospitality sector. How fast can you reach your customer? The traditional construction process is NOT that fast. Bad weather, labor shortages, logistical problems and so on – small problems lead to big opportunities missed in traditional construction. Modular construction on the other hand, reduces construction time by 50% because it happens in a controlled environment. According to a report by Grand View Research, the global modular construction market is expected to grow at a CAGR of 6.5% from 2022 to 2030, driven largely by its efficiency benefits.
For instance, Marriott International has been a pioneer in adopting modular construction, with several of their hotels across the globe being built using this method. They recently built a 97-room AC Hotel in Oklahoma City in just four months—half the time it would have taken using traditional construction methods. This rapid deployment is crucial in tapping into the ever-evolving tourism market and can be particularly beneficial in seasonal destinations where the window for construction is limited.
MEETING THE DEMAND FOR GREEN TOURISM
“Eco-friendly” is a word that’s being used by all active travelers these days. This comprises multiple facets that we shall discuss below. Industries must adapt to meet these facets fast because time is money. Modular construction gives business owners that alternative. Be it waste management, energy efficiency and even sourcing sustainable materials for construction, modular construction does it better than traditional methods.
A report by the World Green Building Council states that modular construction can reduce waste by up to 90% compared to traditional construction. This is because materials are used more efficiently, and leftovers can be recycled more effectively in a factory setting.
High energy efficiency is achieved in modular construction with the incorporation of effective insulation and energy-efficient windows. Especially in hot countries like India, weather conditions demand higher energy consumption for hotels and restaurants. Modular construction is the way to go for this.
In India, construction waste accounts for 30% of the total solid waste generated in the country! That’s worrying enough to make the shift to modular construction.
Cost Efficiency
The initial investment one has to bear for a modular construction space can be high, but it’s worth it. In return for high upfront costs, you get a super specialized design and ridiculously fast project completion, which is enough to offset the initial investment. And let’s not forget the low labor costs due to the controlled factory environment. Given India’s current labor shortage in the construction industry—estimated at a deficit of 4 million workers by the National Real Estate Development Council—this efficiency is not just a cost-saving measure but a necessity.
Another advantage of modular construction is that scalability will never be a problem. Adding modules to your pre-existing space is easy and the flexibility is unparalleled.
Innovation and Design Flexibility
No – modular construction does not limit design flexibility. In fact, one could argue that it offers the HIGHEST degree of customization than other construction methods offer. In India, where the tourism sector is incredibly diverse—ranging from luxury resorts in the Himalayas to eco-friendly lodges in Kerala—modular construction provides the flexibility to cater to different market segments without compromising on design or quality.
Prefabricated modular construction is more than just a trend; it’s a paradigm shift. By offering speed, efficiency, and superb customization capacity, it’s transforming the way we build across a wide range of industries.
Found this blog informative? Whatever the size of space, MODULI can make it happen. Whether it’s modest and cozy, or large and lofty, MODULI’s volumetric units can be put together — one on top of the other, side-by-side, on their side, or even at an angle — to make your dream come true.