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Hotel Website

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100% found this document useful (1 vote)

461 views110 pages

Hotel Website

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NAVEEN ROY

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Download as DOC, PDF, TXT or read online on Scribd

You are on page 1/ 110

INDEX

CONTENTS:
 CHAPTER - 1
 INTRODUCTION
 OBJECTIVES

 CHAPTER - 2
 PROFILE OF THE ORANIZATION

 METHODOLOGY

 CHAPTER – 3
 DATA COLLECTION
 DATA RERESENTATION-TABULAR GRAPHS ETC
 MAJOR FINDINGS

 CHAPTER – 4
 SUGGESTIONS
 CONCLUSION
 BIBLIOGRAPHY
 ANNEXURE

110
CHAPTER 1

110
Chapter 1
INTRODUCTION
HTML

HTML or Hyper Text Markup Language is the standard markup language used to
create web pages.

HTML is written in the form of HTML elements consisting of tags enclosed in angle
brackets (like <html>). HTML tags most commonly come in pairs like <h1>and
</h1>, although some tags represent empty elements and so are unpaired, for example
<img>. The first tag in a pair is the start tag, and the second tag is the end tag (they
are also called opening tags and closing tags).

A web browser can read HTML files and compose them into visible or audible web
pages. The browser does not display the HTML tags, but uses them to interpret the
content of the page. HTML describes the structure of a website semantically along
with cues for presentation, making it a markup language rather than a programming
language.

HTML elements form the building blocks of all websites. HTML allows images and
objects to be embedded and can be used to create interactive forms. It provides a
means to create structured documents by denoting structural semantics for text such as
headings, paragraphs, lists, links, quotes and other items. It can embed scripts written
in languages such as JavaScript which affect the behavior of HTML web pages.

Web browsers can also refer to Cascading Style Sheets (CSS) to define the look and
layout of text and other material. The W3C, maintainer of both the HTML and the
CSS standards, encourages the use of CSS over explicit presentational HTML.

A handicraft, sometimes more precisely expressed as artisanal handicraft or

handmade, is any of a wide variety of types of work where useful and decorative
objects are made completely by hand or by using only simple tools. It is a traditional
main sector of craft, and applies to a wide range of creative and design activities that
are related to making things with one's hands and skill, including work with textiles,
moldable and rigid materials, paper, plant fibers, etc. Usually the term is applied to
traditional techniques of creating items (whether for personal use or as products) that
110
are both practical and aesthetic.
SYSTEM REQUIREMENT

To be used effectively, all computer software needs certain hardware componentsor

software resources to be present on computer the perquisites are known as system
requirements. The HTML project requires a certain minimum system requirement

HARDWARE

 Pc with 233 MHZ minimum requirement (single or dual processor system).

 128 MB of RAM or higher recommended (32 MB minimum supported).
 Super VGA (1024 X768) or higher resolution video adapter and monitor.
 Keyboard and Microsoft mouse or compatible pointing device.
 1.5 GB of available hard disk space.

SOFTWARE

 OS: Windows XP minimum

 Web Browsers ( Internet Explorer, Google Chrome, Opera)

LANGUAGE

 Hyper Text Markup Language(HTML)

110
CODING
<html >
<head>
<link href="templatemo_style.css" rel="stylesheet" type="text/css" />
<link rel="stylesheet" type="text/css" href="gallery_style.css" />
</head>
<body>
<div id="templatemo_container">
<div id="templatemo_top_panel">
<div id="templatemo_header_section">
<div id="templatemo_header">
Hotel
</div>
</div>

<div id="templatemo_menu_login_section">
<div id="templatemo_menu_section">
<div id="templatemo_menu_panel">
<ul>
<li><a href="index.html" class="current">Home</a></li>
<li><a href="subpage.html">Buy</a></li>
<li><a href="#">Room Rent</a></li>
<li><a href="#">Hall Rent</a></li>
<li><a href="#">About Hotel</a></li>
<li><a href="#">Contact Hotel</a></li>
</ul>
</div>
</div>
<div id="templatemo_login_section">
<form method="get" action="#">
<label>Email Address:</label><input type="text" name="email"
class="input_field" /><label>Password:</label><input type="password"
name="password" class="input_field" /><input type="submit" value=""
name="submit" class="submit_btn" />
</form>
</div>
</div> 
</div>

</div>

<div id="templatemo_news_section">
<h1>Site's News</h1>
<div class="templatemo_news_box">
<h3> Homes</h3>
<p>This <a href="#" target="_parent">Hotel</a> </p>
</div>
</div>

<div id="templatemo_section_1_1">
<h1>Find a Hotel</h1>
<form method="get" action="#">
<div class="left_column">
110
<div class="form_row"> <label>City: </label><input type="text"
name="country" value="" /> </div>
<div class="form_row"> <label>Sate / Province: </label>
<select name="state"><option>Select
one...</option><option>AL</option><option>AK</option><option>AR</option><opt
ion>AZ</option><option>CA</option><option>CO</option><option>CT</option><o
ption>DC</option><option>DE</option><option>FL</option><option>GA</option>
<option>HI</option><option>ID</option><option>IA</option><option>IL</option>
<option>IN</option><option>KS</option><option>KY</option><option>LA</option
><option>MA</option><option>MD</option><option>ME</option><option>MI</op
tion><option>MO</option><option>MN</option><option>MS</option><option>MT
</option><option>NC</option><option>ND</option><option>NE</option><option>
NH</option><option>NJ</option><option>NM</option><option>NY</option><optio
n>NV</option><option>OH</option><option>OK</option><option>OR</option><o
ption>PA</option><option>RI</option><option>SC</option><option>SD</option><
option>TN</option><option>TX</option><option>UT</option><option>VA</option
><option>VT</option><option>WA</option><option>WI</option><option>WV</opt
ion><option>WY</option></select>
</div>
<div class="form_row"> <label>Zip / Postal code </label><input type="text"
name="country" value="" /> </div>
</div>
<div class="right_column">
<div class="form_row">
<label>Price: </label>
<select name="min_price">
<option>minimum</option>
<option>Rs50,000</option>
<option>Rs100,000</option>
<option>Rs150,000</option>
<option>Rs200,000</option>
<option>Rs250,000</option>
</select>
<label>To: </label>
<select name="max-price">
<option>maximum</option>
<option>Rs100,000</option>
<option>Rs200,000</option>
<option>Rs400,000</option>
<option>Rs600,000</option>
<option>Rs800,000</option>
</select>
</div>
<div class="form_row"> <label>Bedroom: </label>
<select name="bedroom">
<option>minimum</option>
<option>1</option>
<option>2</option>
<option>3</option>
<option>4</option> 110
<option>5</option>
</select>
</div>
<div class="form_row"> <label>Bathroom: </label>
<select name="bathroom">
<option>minimum</option>
<option>1</option>
<option>2</option>
<option>3</option>
<option>4</option>
<option>5</option>
</select>
</div>
<div class="form_row">
<input type="submit" value="Submit" name="submit"
class="submit_btn_02" />
</div>
</div>

</form>
</div>
<div class="cleaner_with_height"> </div>
</div>

<img src="images/templatemo_image_01.jpg" alt="image" />

<h4>Mauris quis nulla</h4>
<p>Suspendisse potenti. Ut sed pede. Nullam vitae tellus. Sed ultrices. Lorem
ipsum dolor sit amet, consectetuer adipiscing elit. Curabitur velit tellus,</p>
<div class="price">PRICE:<span> Rs1,234,000</span></div>
<div class="readmore"><a href="subpage.html">Read more</a></div>
</div>
<div class="templatemo_section_2">
<img src="images/templatemo_image_02.jpg" alt="image" />
<h4>Mauris quis nulla</h4>
<p>Nulla enim nibh, consectetuer sed, vestibulum elementum, sagittis nec, diam.
Mauris blandit vehicula neque. Proin consectetuer.</p>
<div class="price">PRICE:<span> Rs876,000</span></div>
<div class="readmore"><a href="subpage.html">Read more</a></div>
</div>
<div class="templatemo_section_2">

<img src="images/templatemo_image_03.jpg" alt="image" />

<h4>Mauris quis nulla</h4>
<p>Donec venenatis. Cras urna metus, feugiat non, consectetuer quis, pretium
quis. Mauris blandit vehicula neque. </p>
<div class="price">PRICE:<span> Rs2,468,000</span></div> 110
<div class="readmore"><a href="subpage.html">Read more</a></div>
</div>

<div class="templatemo_section_3">
<h1>Helpful Links</h1>
<ul class="list_section">
<li><a href="#">Testimonials</a></li>
<li><a href="#">FAQs</a></li>
<li><a href="#">Terms of us</a></li>
<li><a href="#">About Us</a></li>
<li><a href="#">Contact Us</a></li>
</ul>
</div>

<div id="templatemo_footer_panel">
Copyright © 2048 <a href="index.html">ABC Co</a> | <a href="#"
target="_parent">Website </a> by <a href="#" target="_blank">a</a></div>
</div>
</body>
</html>

110
110
110
110
The mere mention of the word hotel conjures up exciting images: a busy lobby filled
with international dignitaries, celebrities, community leaders, attendees of
conventions and large receptions, businesspersons, and family vacationers. The
excitement that you feel in a hotel lobby is something you will have forever in your
career. Savor it and enjoy it. It is the beginning of understanding the concept of
providing hospitality to guests. As you begin to grasp the principles of a well-operated
hotel, you will discover the important role the front office plays in keeping this
excitement intact.
Information Technology emerged in the 90s.
IT covers a wide variety of areas. In short, anything that renders data, information or
perceived knowledge in any visual format whatsoever, via any multimedia
distribution mechanism, is considered part of the domain space known as Information
Technology.
IT is now performed in just about every work that requires the business to run
successfully and compete in the real world. Information technology is starting to
spread farther than the conventional personal computer and network technology, and
more into integrations of other technologies such as the use of cell phones,
televisions, automobiles, and more, which is increasing the demand for such jobs. IT
plays and important role in the field of health care to finance; from marketing to
society and even higher education.
It Provides
Competitive business strategies:
Cost leadership
• Differentiation
• Innovative
• Growth
• Alliance
This results in:
 Productivity
 Significance
 Monitoring
 Business Performance Management
 E-commerce

BUSINESS MODEL FOR IT IN HOSPITALITY MANAGEMENT

 E-commerce
 Lead-based Websites
 Affiliate Marketing
 Local Internet Marketing 110
What is Hospitality?

Kindness in welcoming strangers or guests is called hospitality.

It’s a massive industry encompassing all form of transport, tourism, accommodation,
eating, drinking, entertainment, recreation, and other activities.

So, Hospitality industry consists of a large number of different types of business and
each one giving its own means of income generation.

Types of Business:
Hotel
Self-eating accommodation
Guest homes
Restaurants
Bars
Tourist resort
Gyms.

Nature of Demand for Hospitality Services

Demand may be change with the change of tourist flow, tourist motivation, taste &
preference, govt. action, special events, festivals general economic condition & so on.
Economical, political and environmental changes including natural calamities,
terrorism & wars, world wide diseases in epidemic form SARS, madcow, cholera, etc
can also affect hospitality industry.

1986: 25% fall of tourist from North America to UK for fear of Arab reprisal
due to Libyan bombing.

1991: fall of 22% American visitor to UK for war &consequent recession.

1991: 21.5% dropped in Malaysia due to gulf war.

110
Nature of Income (UK experience)

Main Product
Room/accommodation hires constitution around: 45%

Subsequent earning Product

Food & Beverage sales (restaurants, coffee shop, room services, etc)
34%
Beverages (hard)
14%
Shop rentals
1%
Minor operating reports like telephone,
5%
Others laundry, leisure
1%

Hospitality Management System

Labour intensive industry

The management system is name as we find in other services organization. But

because of so many products are within management system is quite complicated.
(It’s a team work)
In Hospitality industry an effective management system, according to Blanchard
(author of the one mnt. Manager) comprises:

a. Acceptability: everyone has to be dear one.

b. Data system: Performance analysis
c. Feedback: From customer to employees so that they can improve
(monitoring system) 110
d. Recognition: Good performance must be awarded.
e. Training:
Supervisors are there to report on performances of employees graded are:
U (Unsatisfactory)
S (Satisfactory)
E (Exceptional)

For good performance, modification is need. Secondary motivation elements are

memories. Following are improved.

1. Need to approval
2. Need to belong
3. Need for achievement purpose
4. Interest in the task
5. Pride (feel proud what he is doing)

For ensuring this Management needs to:

1. Developed staff oriented policies & incentives

2. Appropriate salaries & incentives.
3. Helpful & friendly supervision
4. Congenial & friendly working environment
5. Understanding of individual personal life
6. Proper recognition of status.
7. Job security

According to Mckinsey & co, 7 elements are required for successful performance
strategy

1. Objectives : What org. wants to achieve

110
2. Structure : Human & physical resources needed to achieve
objectives
3. Systems : Methods to use to achieve objective compatible to
human &
physical resources
4. Skill :knowledge & info- required for human recourses &
training
to fill any gap
5. Staff : Employee number along with experience & skill
6. Style :Type of operation & how it wants to be perceived by
customers.
7. Values : Overall image by enhancing customer satisfaction,
staff
loyalty & satisfaction

Organization Structure:
The organization is mainly marketing oriented Organization. Organization structure
on the basis of marketing fundamentals:

Functional departments

Marketing
Executives

Departmental Departmental Departmental

Executives Executives Executives

Regional Management
For world chain Hotels
Each region is self sufficient marketing structure

Product line Management

Food & Beverage
Conference & Banqueting managers
110
Restaurant Manager
Rooms Manager

Marketing Management
For the customer groups example Holiday package marketing, Meeting,
Seminar etc

Different Position to Manage the Integrated Operation:

1. Marketing Director (Sometimes manager)

2. Sales Director: In big organization apart from marketing director, there is
sales director, All activities relatives to sales & developing & contacting
corporate customer groups including travel agents, tower operators
3. Operations Manager: Looking after customer from moment he/she makes a
booking Operations Manager is often know as accommodation manager too.
4. Sales promotion Manager
5. Direct Mail manager: Maintain a database customer and keep contact .
relationship network manager
6. Telemarketing Manager: In support to direct main manager.
7. Product ling manager: According different products of the Hotel : Food &
Beverage, conference & Banqueting restaurant entertainment, leisure etc.

PLANNING

Planning is an integrated approach. The first thing that we have to know is “what
we are offering --- what our customers want”.
Planning must be need based. The need may vary from customer to customer. It is
not possible to cater the needs of all customers in a “property”. Therefore, the first
job in marketing plan is to target the specific segment of the market. The core
service remaining same, the extent of hospitality services may vary as per the real
need and psychological needs of the customers :

110
Core services

Core services
turned into Hospi-
tality concept
Auxiliary services
added to Hospitality
services

Marketing strategies relating to hospitality products :

The followings are the key issues that should be addressed to develop marketing
strategies :

1. Consider company’s goal and mission

2. recognize financial, physical and human resources available
3. analyzing SWOT
4. develop and target most appropriate customer-mix
5. set marketing budget
6. develop strategies for each element of marketing mix
7. out line detailed operational tactics
8. change as necessary

From a micro viewpoint marketing plan for a large ‘property’ with a complexity of
product lines requires separate sets of strategies for :

- the property as a complete entity

- each product line and item
- each target market
110
However, apart from the strategies in relation to marketing mix elements,
‘Positioning’ strategy is very crucial for the hospitality business.
Position is creation of ‘DAB’, meaning, difference, advantage, and benefit.
Positioning is what people think, know, feel, or believe about a place or product or
establishment.

Hence a difference between a Four-star and Five star hotel can often be
no more than a public perception, usually a strategic position created by
the management.

Therefore, positioning is the imagery that has been created in the minds of the
customer.

The major forms of positioning :

- the physical presence of the place : where it is and how it looks from
outside. Design. paint, sign, decoration, street, surroundings etc are
the components of physical presence. These are known as Exterior
Physical Evidences.
- First impression is said to be lasting. So attractive and tasteful
exterior evidence is very important.
- Interior design layout, fittings, decor etc
- Recommendations – the pass-on value of word-of- mouth promotion
probably the strongest means of gaining customer heart. It has been
seen that about 85% of customers come from pass-on
recommendations.
- Publicity is another strong tool for positioning. Media reporting of
any events, visiting celebrities stay etc are also important and
effective tool.
110
- Advertising, brochures, other publications may create positive
impression in the minds of the customers.
- The Attitude and appearance of the staffs are long lasting tools for
positioning.
- Prices and value offerings sometimes may also create an image.
- The ambience - music, noise, smell etc also can create a positive
and negative image.
- Name, slogan, symbol or logo may also contribute to increase the
desired position of the property.

The Steps in Strategic Positioning :

- Target the customer mix you want.

- Find out what they expect
- Develop the services and products or facilities to meet the need and
want of the target customers
- Develop a staff commitment
- Build a sustainable positioning strategy.

Pricing Strategy :

In a hotel, it is the room rate which sets the pricing levels for the rest of hotel’s
products. Presently hospitality industry is a fiercely competitive and sensitive to
economic conditions. Consequently, the relationship between rates and occupancy
has to be finely tuned.
Price fixation in perfect market entails the following equation :

Price = Operating cost + Capital recovery cost + Profit + Forecasted number of

customers.

But hardly we get a situation which may be termed as a perfect market.

110
The Hospitality Industry normally follows the following Pricing methods :

- Target profit pricing : fixation of price based on average occupancy

which is expected to provide adequate return.
- Perceive-value pricing : based on value or benefits offered.
- Going-rate pricing :
- Price ranging : separate prices for different types, sizes and decor.
- Value-added pricing : discounting the existing services and facilities
coupled with going rate.
- Price Skimming : high profile positioning. Skimming is taking cream
of the market before the competitor comes.

PRICING OBJECTIVE :

The objectives are usually :

- survival
- profit maximization
- increasing market share
- quality leadership
- capital recovery.
PRACTICES WITH PRICING STRATEGIES :
(1) offer prices differently on different days and at different times of
the year. Rates may vary to attract different customer segments,
such as, tour wholesalers, large companies, conference
organizers, and frequent travelers.
(2) Developing Holiday packages such as, a three day stay at the
property combined with sight seeing tours or a special interest
package.
(3) Special discounted rooms negotiated with tour wholesalers, travel
agents, tour operators, and sometime even with the transport
companies, for example, the airlines.
(4) Business travelers are the most frequent visitors and users of
110
hospitality services. Special incentive rates are generally
negotiated. Additional attractions such as secretarial assistance,
computers, fax photocopying meeting rooms, video conferencing
and language translator facilities are offered to the business
travelers.
(5) Another variant strategy is to enroll in a special club which
provides not only discounted prices to the members, but also
discounts with participating stores, airlines, car hires etc.

Hospitality Services Strategies

According to Philip Kotler : “A service is any act or performance that one

party can offer to another that is essentially intangible and does not result in the
ownership of anything. Its production may or may not be tied to a physical product.”

If we analyze the definition of services we can get some specific characteristics

of service. These are :
 intangibility
 inseparability
 heterogeneity
 perishability
 ownership

Hospitality business provides a guest with a place where he feels welcome,

appreciation, relaxed, and have an enjoyable experiences. The product mix consists
of accommodation, restaurant, bars and a range of ancillary products which vary
with the establishments.

Hospitality business is a team work, employees work together jointly to achieve the
objectives of ‘excellent guest experiences’. It has a ‘flat’ management structure. So
110
importance of a dishwasher is no less than the managing director.
In hospitality industry, quality of services is now a top management issue. How can
we do that? There is no shortcut to it. A ‘total quality management’ concept has to
be applied and practiced in a hospitality industry. In order to do so the following
steps are necessary :

(a). Establish customer needs and wants : It involves segment identification and
market analysis.

(b) Asking the customer : Very informal type of research technique of asking the
customers about their feelings, opinions, suggestions etc.

(c) Set objectives for improvement or changes : Why this change? The outcome of
the improvement or change should be assessed.

(d) Allocate tasks and responsibilities :

(e) Train staff :

(f) Remove demotivating systems and staff :

(g) Gain commitment to the objectives and strategies :

(h) Make physical changes where necessary :

(i) Experiment with the changes :

(j) Measure and manage :

(k) Modify where necessary, measure regain :

110
Strategies with Catering Services :
Key concerns of restaurants will centre around menu development, analysis of
current offerings, packaging or presentation, brand decision, design and décor,
music, and the layout.
Probably the most important decision a restaurant operator can make concerns the
type of food and beverages that will be offered. The following decisions are
important :

(a) Concept compatibility : Italian restaurant should focus o0n dishes

that target customers associated with Italian food.
(b) Quality : Quality concept is vague. But that must or exceed the
consumer’s expectation.
(c) Selection : The number of items on a menu is generally
unimportant. There is a tendency for many restaurant operators
to have an extensive menu so that there is something on the menu
for each one. When it occurs, order preparation time and
equipment costs increase, food cost escalates, spoilage increases,
quality suffers, labor cost goes up, morale of kitchen personnel
goes down.
(d) Hire expert and experienced cooks and chefs.
(e) Analyze competitor’s menu or offerings.
(f) Cross utilization : this is use of limited number of ingredients to
prepare several different menu items.
(g) Put importance to nutritional value :
(h) Menu design and layout : most menu starts with appetizers , and
end with deserts or possibly with some specialty drinks.

110
GLOBAL HOSPITALITY MANAGEMENT : EVOLUTION & TREND

General definition of Hotels : The WTO defines :

Hotels and similar establishments . . . are typified as being arranged in rooms, in

number exceeding a specific minimum; as coming under a common management; as
providing certain services, including room services, daily bed making, and cleaning
of sanitary facilities; as grouped in classes and categories according to the services
and facilities provided.

Interpretations may include : hotels, private hotels, residential hotels, guest houses,
boarding houses, lodging houses, bed and breakfasts, inns, pensions, motels, youth
hostels, auberges, posuadas, and so on.

Slattery et al. (1966) categorized a hotel through one of the following definitions :

● Owned
● Leased which includes properties which are rented as well as sale and leaseback
hotels.

● Management contracts with equity – which may be seen to be a growing trend in

face of increasing competition.

● Management contracts (equity free) – the most common form of contracts

particularly amongst major hotel brands

● Franchised hotels owned and operated by independent hoteliers and chains who
pay a franchise fee to operate their hotel under a major brand, thereby giving access
to reservation system, corporate marketing, training and purchasing etc. Major
brands that are franchise dare Holiday Inn World wide, Accor, Marriott
International, Hilton Hotels, ITT Corporation. 110
There are some invisible hotel companies operating with little outward presence to
public. They manage hotels under different brand names. There is another pattern
where the major activities are managed by different companies. For example, in a
brand ‘A’ hotel that is owned by company ‘X’, marketed by company ‘Y’, and
managed by company ‘Z’.

The International Hotel Industry :

● WTO reports that in terms of revenue, Europe accounted for the largest share
with 39.5 percent (around 100 billion US$), followed by the Americans with 32
percent (81 billion US$).
●Europe and the Americas again hold first and second position in terms of hotel
establishments (with 55 and 28 percent respectively).
●In terms of rooms the two areas hold 45 percent and 37 percent respectively.

●In terms of percent of bed capacity, Europe is having 44 percent and the Americas
are 37 percent.
●Although Asia-Pacific commands only 12 percent of total hotels but due to higher
average size of the properties, their share of rooms and bed capacity is
comparatively higher at 14 percent.

● Staff to room ratio demonstrates interesting intra-regional variances, with the

highest in Africa at 3.5 employees per room, the Middle East (2.5 : 1) and then Asia-
Pacific (1.7 :1), and Europe (0.5 : 1).

THE SIZE AND SCALE OF THE HOTEL INDUSTRY

Regions Revenue Hotels Rooms Tourism Employees

(US$ m) (Regd) (000) Receipts (000)
(US$m)
Africa 6,300 10,769 384 7,165 1,259
Americas 81,095 87,969 4,494 100,138 4,062
Asia- 46,259 37,148 1,701 77,242 2,862
Pacific
Europe 100,012 171,123 5,492 207,653 2,679
Total 252,904 311,744 12,249 399,448 11,317 110
Source : World Tourism Organization 1997.
Industry Development :

The year 1946 saw the birth of the First international hotel chain with the founding
of Inter-Continental by Pan American Airways. Thereafter followed Hilton and
Sheraton, whose strategy was to create small pieces of American ‘terra firma’ in
distant lands for the American businessmen. Dunning and McQueen reported that
eight of the top ten hotel companies were American owned.

Diversification : Hotel corporations are increasingly diversifying into related service

industries, including health care, cruise liners, gaming and time share. Marriott,
Accor, Hyatt Hotels corp and Holiday Inns have expressed interest in different
health-related projects. Marriott has built certain life-care retirement communities,
Accor has created subsidiary ‘Hotelia’ and Hyatt has two ‘Classic Residence’
projects, which are assisted-living retirement communities, giving residents access
to nursing and other support services as they grow old. Hilton, Promus, and the Club
Mediterranean are investing heavily in gambling facilities and casinos.

Time shares, although a bit shaky phenomenon, is gradually becoming popular in

many of the countries. There are three types of timeshare – fixed week, floating
weak within season, and points, which can be used anywhere at any time subject to
restrictions. There are 4500 timeshare resorts worldwide in 81 different countries.
UK has the majority of European timeshare owners (some 700,000) and most of
these consist of beach properties in Spain or Portugal.

Branding : Choice hotels was one of the first companies to develop a multi-
branding approach, with a range of different offerings to appeal to each price
segment. The Economist conducted a survey on brand awareness and found that
three-quarters of business travelers and two-thirds of leisure travelers are brand
conscious when choosing their hotels. Although hotel branding seems to have some
limitations, but gradually it is becoming a practice worldwide with the regional
chains, and also with chain affiliations to practice ‘Think global, Act global’.

110
Key International Players : Top 20 companies in the world remained fairly
consistent. However, some regional Brands are coming up. The top Brands are :

● US ownership
Starwood Lodging Trust (owns ITT Sheraton and Westin brands)
Cendant ( owns Hospitality Franchise Systems)
Patriot American
Choice Hotels International
Marriott International (owns Ritz Carlton)
Hyatt International & Hyatt Hotels Corporation
Radisson Hotels International
Promus Corporation (owns Doubletree brand)
Hilton Hotel Corporation
Delta Hotels
● UK ownership
Holiday Inn Worldwide (owned by Bass)
Inter-Continental (owned by Bass)
Forte
Hilton International (owned by Ladbroke).
● French ownership
Accor
Club Mediterranee
Societe du Louvre
● Thai ownership
Dusit Thani
● Japanese ownership
Nikko hotels
Tokyu/Pan hotels
● Chinese ownership
Shangri-La
● Spanish ownership
Grupo Sol Melia
● Scandinavian ownership 110
Scandic hotels
●German ownership
Dorint hotels
Kempinski hotels
Steigenberger hotels
● Indian ownership
Omni hotels
The Taj group
● Others
Southern Pacific (Australasia)
Four Seasons/Regent (Canadian)

During the last quarter (1970-90), there was a tremendous growth in the industry,
and there was an increase of more than 300 percent in room growth; from almost
half a million to more than 2 million.
After 90’s this industry grew at a tremendously unbelievable rate. According to the
American Hotel & Lodging Association, AH&LA is having 47,584 properties, 4.4
million rooms, $105.3 billion in sales, $12.8 billion in pretax profit61.1 percent
average occupancy rate and $50.42 revenue per available room (RevPAR) in 2003.

Hotel accommodations are heavily concentrated in Europe and North America, with
Europe accounting for 48 percent of the world’s room supply and the US
accounting for 27 percent, Asia-Pacific 14 percent, and the African region 3 percent
while Middle-East 1.5 percent.

Who are the customers? According to the AH&LA, 24 percent are on vacation, 29
percent are transient business travelers, 25 percent are attending conferences and
meetings, 22 percent are visiting for other reasons.
The typical business room night is generated by a male (71 percent), age 35
– 54 (53 percent), employed with a professional or managerial position (50 percent),
and earning an average yearly household income of $83 thousand. Typically these
guests travel alone (76 percent).

110
The typical leisure room night is generated by two adults (52 percent), ages
35 -54 (45 percent), and travel by autos (73 percent).

Average stay : Business travelers : 40 percent spend one night, 24 percent spend
two nights, 36 percent spend three or more nights.
Leisure traveler : 47 percent spend one night, 26 percent spend two nights, 27
percent spend three or more nights.

110
TYPES OF

ACCOMMODATION

Non Commercial Commercial

Private Non-profit Institution Hotels Motels Bed&

Time-
breakfast
share

-Private -Hostels -College/ -Upscale - Resort -Upscale -Fixed

week
homes -Universities hotels
- Deluxe -
Floating week
-Midrange
-Home -Shelters -Spa & - Spa - Points
Exchange health care

-YM/YWCA - Luxury -Casino -Budget

-Midrange

-Suite

-Meetings &
Convention hotels

Source : Tourism Principles, Practices Philosophies. Goeldner & Ritchie. P-155.

110
HOSPITALITY INDUSTRY IN INDIA

Hotels in India are categorized into two types : approved and unapproved hotels.
The Ministry of Tourism grants approval to hotels at the project stage and classify
them into one of the star categories. This approval status is voluntary; but only the
approved hotels can avail of various incentives, import license, and other benefits
from the govt. Majority of the hotels are of unapproved type.

The emerging tourism and hospitality industry in India mainly could be attributed to
:

- Strong domestic travel trend

- Positive economic growth
- Good investment opportunity.

The following sections will try to analyze the growth and development of Indian
hospitality industry.

India periodically conducts an All Indian hotel Industry survey. The analysis is done
mainly on the results of such a survey. The survey presents a study of 1065 hotels
having 74,112 rooms across various cities of India. In the survey it was found that
the average number of rooms per hotel is 62 percent(2004-2005).

Occupancy : As of occupancy rate, Visakhapatnam was the market leader

registering 81 percent. Bangalore achieved the second- highest occupancy at 80 per
cent. All India average occupancy rate was 64 percent. In one year (over 2003)
occupancy rate increased by 6.5 percent, but at the same time average room rate
increased by 27 percent. Occu8pancy rate ranged between 46 percent to 72 percent.
Average range of rates (for five-star and one-star hotels) had a greater spread from
Rs 5,500 to Rs 643.

Revenue : All India average revenue per available room (RevPAR) was Rs 2170 in
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2004-05. Rooms revenue is the most important source of hotels’ overall
profitability. Average profitability for the five-star hotels was 58 percent; and for
four-star, it was 60 percent. All India hotels of all categories represent 57 percent
profitability on total revenue. House profit (gross operating profit after deducting
franchise and management fees) as a percentage of revenue, increased 41 percent in
2004-05 from 35 percent in 2003-04. Rise in revenue collection was mainly due to
two reasons : (i) increase in occupancy, and (ii) increased average rate. Revenue Per
Available Room (RevPAR) growth was higher in case of four-star hotels (42%), and
an All Indian RevPAR growth was at 35 percent in 2004-05.
All India average revenue per hotel has grown significantly from Rs 9.15 crore in
2003-04 to Rs 11.49 crore in 2004-05. (?). All India average Net Income (income
before depreciation, interest payments and taxes) per hotel increased from Rs 2.8
crore in 2003-04 to Rs 4 crore in 2004-05.

Expenditures : Departmental expenditure consists of direct cost (raw materials for

running the hotel services); operating expenses are differently maintained.
Operating expenses include energy, administrative and general expenses. Total
Departmental expenses as a percentage of total revenue was 31 percent in 2004-05.
Departmental expenses showed a declining trend over previous years; and so as the
food and beverage expenses. In 2004-05, total departmental expenses as a
percentage of total departmental revenue declined over the previous years. It may
be because of the reasons of increased room rates, and use of technology in hotels.

Maximum utilization of energy management systems continues to be in the five-star

deluxe categories. The average energy cost POR was Rs 762 in 2004-05 ( in 2003-
04 it was Rs 758). The heritage hotels gained the maximum benefit of energy
management system. Decrease in energy cost of heritage hotels was Rs 499 in 2004-
05 over Rs 637 in 2003-04.

Foreign occupants : Percentage of foreign visitors increased over the last year. Of
foreign visitors, 16 percent was from UK, 13 percent was from USA, and France
provided 7 percent.

110
However, the most important segment for the Indian hotel industry is the domestic
travelers who had a share of 78 percent in 2004-05 but the domestic segment
showed a marginal decline over recent past years.

Average Stay : All India average stay of a business traveler has increased from 2.0
days to 2.4 days. There is also marginal increase in average stay by the foreign
visitors in Indian hotels.
Average monthly occupancy was highest in the months of :

December : 72%
November : 68%
January &
February : 66%

The month of July is seen to be most dull month in terms of tourist arrival.

Mode of payment : Use of Credit cards is gradually increasing as a method of

payment for the services in Indian hotel industry. Almost 47 percent of the payments
are done by Credit cards at five-star hotels. Visa was the most widely used credit
card by the hotel guests (42%), followed by Mastercard (37%).

Promotion : Print advertising was the most popular media used by the Indian hotel
Industry with 92 percent using print media for promotion. However, 83 percent of
the hotels also used direct mail. Radio advertising featured as the least utilized
media at 8.4 percent. All five-star hotels are using there own websites.

110
The front office is the nerve center of a hotel property. Communication and
accounting are two of the most important functions of a front desk operation.
Effective communications— with guests, employees, and other departments of the
hotel—are paramount in projecting a hospitable image. Answering guest inquiries
about hotel services and other guests, marketing and sales department requests for
information on guest room availability, and housekeeping department inquiries
concerning guest reservations are but a few of the routine tasks performed almost
constantly by a hotel front desk in its role as communications hub. Accounting
procedures, involving charges to registered and non- registered hotel guest accounts,
are also very important in the hospitality field. Itemized charges are necessary to show
a breakdown of charges if a guest questions a bill.
Services for which fees are charged are available 24 hours a day in a hotel property.
Moreover, because guests may want to settle their accounts at any time of the day,
accounts must be current and accurate at all times. Keeping this data organized is a
top
priority of good front office management.
Overview of the Hotel Industry
A working knowledge of the classifications used in the hotel industry is important to
understanding its organization. The various types of properties, their market
orientation
and location, sales indicators, occupancy and revenues as they relate to levels of
service,
and various types of business affiliations are all means of classifying hotel properties.
Figure 1-2 will serve as a reference point throughout this discussion.
Types of Lodging Facilities
Classification of hotel facilities is not based on rigid criteria. The definitions can
change,
depending on market forces, legal criteria, location, function, and, in some cases,
personal
preference, but the definitions that follow are generally accepted and are the ones
intended
for these classifications throughout this text.

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Hotels
A hotel usually offers guests a full range of accommodations and services, which may
include reservations, suites, public dining and banquet facilities, lounge and
entertainment
areas, room service, cable television, personal computers, meeting rooms, specialty
shops,
personal services valet, laundry, hair care, swimming pool and other recreational
activities,
gaming/casino operations, ground transportation to and from an airport, and concierge
services. The size of the property can range from 20 to more than 2,000 rooms.
Figure 1-2. Hotel industry overview.
I. Types of hotel properties
a. Hotels
b. Motels
c. All-suites
d. Limited-service hotels
e. Extended-stay hotels
II. Market orientation/location
a. Residential
i. Center-city
1. Hotels
2. All-suites
3. Limited-service
4. Extended-stay
ii. Suburban
1. All-suites
2. Limited-service
3. Extended-stay
b. Commercial
i. Center-city
1. Hotels
2. All-suites
3. Limited-service 110
4. Extended-stay
ii. Suburban
1. Hotels
2. Motels
3. All-suites
4. Limited-service
5. Extended-stay
iii. Airport
1. Hotels
2. Motels
3. All-suites
4. Limited-service
iv. Highway
1. Motels
2. All-suites
3. Limited-service
4. Extended-stay
III. Sales indicators
a. Occupancy
b. Average daily rate (ADR)
c. Yield percentage
d. Revenue per available room (RevPAR)
IV. Levels of service
a. Full-service
b. All-suites
c. Limited-service
d. Extended-stay
V. Affiliation
a. Chain
i. Franchise
ii. Company-owned
iii. Referral
iv. Management contract
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b. Independent
Hotels are found in center-city, suburban, and airport locations. Guest stays can be
overnight or long-term, as much as several weeks in length. These properties
sometimes specialize in catering to particular interests, such as conventions or
gambling. Casino hotels usually take a secondary role to the casino operation, where
the emphasis is on profitable gaming operations.
Motels
Motels offer guests a limited range of services, which may include reservations,
vending
machines, swimming pools, and cable television. The size of these properties averages
from 10 to 50 units. Motels are usually in suburban highway and airport locations.

Figure 2-2. Notice that several of the positions listed in the full-service hotel
organization
chart have been eliminated from this one for a medium-size lodging property.

110
The department heads required include:
• General manager
• Maintenance/groundskeeper
• Front office manager
• Controller
Role of the Front Office in Interdepartmental
Communications
The front office plays a pivotal role in delivering hospitality to guests. It sets the stage
for a pleasant or an unpleasant visit. Guests, often in an unfamiliar setting and anxious
to proceed with their business or vacation plans, are eager to learn the who, what,
when, where, and how of their new environment. Requests for information often
begin with the doorman, bellhop, switchboard operator, front desk clerk, cashier, or
concierge, because these employees are the most visible to the guest and are perceived
to be the most knowledgeable.
These employees are believed to have their finger on the pulse of the organization and
the community. Their responses to the guests’ requests for information on public
transportation, location of hotel facilities, special events in the community, and the
like indicate how well the hotel has prepared the front office staff for this important
role. Front office managers must take an active role in gathering information that will
be of interest to guests. They must also be active in developing procedures for the
front office to disburse this information. The relationships the front office manager
develops with the other department directors and their employees are vital to
gathering information for guests. Developing positive personal relationships is part of
the communication process, but it cannot be relied on to ensure that accurate and
current information has been relayed. How does the front office manager encourage
effective interdepartmental communication (communication between
departments)? This chapter provides some background for you as you begin your
professional
career. It is also important to note that intradepartmental communication
(communication
inside a department) is applicable to this discussion.
Figure 3-1 shows the various departments in a hotel that interact with the front office.
The front office is at the center of this diagram to illustrate the many 110
interdepartmental lines of communication that exist. These lines are based on the
direction each department has been given to provide hospitality in the form of clean
rooms, properly operating equipment, safe environment, well-prepared food and
beverages, efficient table service, professional organization and delivery of service for
a scheduled function as well as accurate accounting of guest charges, and the like.
These general objectives help department

Figure 3-1. The front office serves as a clearinghouse for communication activities
directors organize their operations and meet the overall goal of delivering professional
hospitality. However, in reality, it requires constant effort to manage the details of
employees, materials, procedures, and communication skills to produce acceptable
products
and services. Front Office Interaction with Other Departments in the Hotel The front
office staff interacts with all departments of the hotel, including marketing and sales,
housekeeping, food and beverage, banquet, controller, maintenance, security, and
human resources. These departments view the front office as a communication liaison
in providing guest services. Each of the departments has a unique communication link
with the front office staff.

110
Analyzing the Lines of Communication
This section is devoted to reviewing some situations in which communications
between the front office and other departments play a role. Each situation will
describe some communication problems between departments, trace the source of
miscommunication, analyze the communication system, and present methods that will
help improve communications.
The purpose of this method of presentation is to help future professionals to develop a
systematic way of continually improving communications.

The Role of Total Quality Management in Effective

Communication
Total quality management (TQM) is a management technique that encourages
managers to look with a critical eye at processes used to deliver products and services.
Managers must ask frontline employees and supervisors to question each step in the
methods they use in providing hospitality for guests. Some examples would be “Why
do guests complain about waiting in line to check out?” “Why do guests say our table
service is rushed?” “Why do guests get upset when their rooms aren’t ready on check-
in?” Managers and their employees must then look for answers to these questions.
Total quality management was developed by W. Edwards Deming, a management
theorist, in the early 1950s. His intent was to offer a new way for American
manufacturers to improve the quality of their products by reducing defects through
worker participation in the planning process. American manufacturers were reluctant
at first to embrace total quality management, but Japanese manufacturers were quick
to adopt his principles of streamlining methods to manufacture products such as
automobiles. He gave managers tools such as flowcharts to analyze production by
dividing the manufacturing process into specific components and then focusing on the
segments of processes that produce the end product.

110
Figure 3-4. Group analysis of jobs is an essential element in total quality
management.
“how can we achieve the end result” thrusts employees into an atmosphere of
cooperation that may not have previously existed. First-shift and second-shift
employees, who usually do not understand each other’s activities, find they do have
common concerns about serving the guest. In the situation presented earlier,
housekeeping and front desk employees would realize that a guest’s request for a late
checkout plays havoc with delivery of hospitality. Total quality management practices
would ensure that the front office would check with housekeeping to determine room
availability in such a situation. The bottom line is that interdepartmental
communication is enhanced each time a team composed of members of various
departments meets to analyze a challenge to the delivery of hospitality. Figure 3-4
provides a view of the interaction that is necessary to make total quality management
a success.

110
Property Management Systems
The first three chapters of this text provided an overview of the hotel industry,
organization of the hotel, organization and management of the front office, and
interdepartmental communication, which laid the groundwork for understanding how
the front office fits into a network for providing service to the guest. In this chapter,
we focus on the operational aspects of the front desk department, which include
considering the physical structure and positioning of the front desk, selecting a
property management system (PMS), and using PMS applications.
Computer applications are central to front office operations in today’s modern hotels.
For new properties, computers are standard pieces of equipment; for existing hotels,
computers are being integrated into everyday operations to assist in providing
hospitality to guests. Computer applications include routinely processing reservations
as well as handling registrations, guest charges, guest checkout, and the night audit.
Interfacing, electronic sharing of data, of hotel departments such as food and
beverage and the gift shop through point-of-sale, an outlet in the hotel that generates
income (restaurant, gift shop, spa, garage); maintenance through monitoring of energy
and heating and cooling systems; and security through control of guest keys are just a
few of the applications.
As you begin your career in the lodging industry, you will want to develop a thorough
understanding of front office computer applications. This text does not refer to one
particular
computer hardware or software system; your training at any lodging property will
include specific operating procedures to produce various reports or review
information from the database. Instead, this chapter provides general information on
which you can base your understanding of computer applications at the front desk.
These applications are encompassed by the term property management system
(PMS), a generic term used to describe applications of computer hardware and
software used to manage a hotel.
You will notice that PMS is not confined to the front office; it interfaces with
housekeeping, food and beverage, marketing and sales, gift shop, controller,
engineering, safety and security, and other departments, all of which are service
departments of a hotel. Each department plays a role, along with the front office, in
serving the needs of the guest— before, during, and after the guest’s stay. It is the 110
front office staff which coordinates the communications, accounting, security, and
safety requirements of the guest. As the nerve center of the hotel, the front office
handles most of the recordkeeping and so benefits most from a computerized system.
This revision of Hotel Front Office Management includes references to a student
manual
for a hotel front office software simulation prepared by Dr. Sheryl Fried Kline and
William Sullivan. This tutorial will allow students to process reservations and
registrations, post guest charges, handle customer service issues, and perform the
night audit procedure. It is a great opportunity for students to practice capturing and
maintaining the many details of managing the guest experience in a hotel front office
and then understand how those details support the administrative function of the hotel.

Physical Structure and Positioning of the Front Desk

Figure 4-1 shows the layout of a computerized front office. While manual equipment
is
still being used in some independent properties, the computerized system has become
the
system of choice, primarily because of the needs of guests, management, and owners.

Guest First Impression

The front desk has always held a pivotal position of importance in the lodging
operation.
It is one of the first points of contact with the guest, and, as such, its ambience sets

110
Figure 4-1. The layout of computerized equipment centers on guest service and
employee
efficiency.
the tone for the hotel. Neatness, orderliness, attractiveness, quality, and
professionalism
are just a few of the impressions that the front desk should convey to a guest. The
guest
wants to feel important, safe, and in the hands of professionals. The impression the
physical
layout of the desk creates will assist the front office in creating a positive image for
the operation. Providing hospitality to the guest and promoting in-house sales are of
great importance to the continued financial success of the operation. To provide an
environment for these objectives to be met, a well-planned physical arrangement of
the front desk is important. Creating a Balance between Guest Flow and Employee
Work

EQUIPMENT
The front desk should be positioned so that it accommodates the guest while enabling
employees to work efficiently. Guests who wait in line for ten minutes only to be told
they are in the wrong line will have a negative first impression. Likewise, a desk clerk
who has to wait to use a printer or share a computer terminal will not be as efficient as
possible. As you become familiar with the practice of processing guests at the front
desk, you will see how easy it is to plan a layout of the physical equipment needed.

GUEST SAFETY
The position of the front desk is usually determined by the main entrance of the
building and the location of the elevator. The front desk clerk and the night auditor
must be able to see anyone who enters the hotel, to ensure a safe environment for the
guest. Positioning the front desk on the same side as the main entrance and the
elevator is not recommended. Figure 4-2 shows a few arrangements that allow
entrances to be monitored. In all three settings, the front desk clerk has a view of who
is coming into the hotel

110
Figure 4-2. Front office staff have a clear view of persons entering the lobby from the
street
entrance or elevator.
Selecting a Property Management System
This section focuses on the components that should be included when deciding to
adopt
a PMS. The decision-making process begins with understanding the importance of a
needs analysis performed by a team of frontline staff members. The needs analysis
should focus on the flow of the guests through the hotel and interdepartmental
communication needs. A review of administrative paperwork produced by
management in all areas of the hotel is also a consideration. After management has
gathered relevant data concerning the operational needs, it must objectively determine
whether a computer will help to improve guest service. Other important concepts
covered here include software selection considerations and computer hardware
terminology. A review of how people interact with computers and how a hotel must
make provisions while hardware is being installed is also offered. The importance of
computer training and planning a backup power source for continued computer
operation is reviewed. The often overlooked maintenance agreement and the very
important financial payback complete the discussion of selecting a PMS.
Choosing Software 110
Selecting software, computer-designed applications that process data such as guest
information and aid in financial transactions and report generation, is more important
than selecting hardware, computer equipment such as central processing units,
keyboards, monitors, and printers. The effectiveness of a PMS depends on selecting
software that allows management to increase guest satisfaction and to access financial
and informational data for control purposes. The information obtained from the needs
analysis will provide a framework for evaluating the numerous software packages on
the market today.
Each software package offers numerous features; it is important to choose one
package that is most appropriate for your needs. Software on the market today
includes those guest service, accounting, and information options that are standard in
the hotel industry. Investigate the guest service features, accounting options, and
information applications to determine which PMS is best for your property. If you feel
that the applications of a particular software package will not help you manage your
property, that adding a particular guest service will not increase guest satisfaction, that
no significant savings will result from producing more sophisticated accounting
reports, or that the arrangement of historical information about guests will not be
beneficial, then you should not adopt that particular PMS. You control the software
selection; its function is to assist you in doing a better job. Only you can decide which
applications are most useful in your facility. Some of the more common options for
various departments are listed in Figure 4-3.

Choosing Hardware
Choosing hardware for a PMS is not as difficult as choosing software.Today most
available hardware is compatible with standard computer operating systems (such as
Microsoft Windows). This consideration is essential because most software programs
are written to run on these standard operating systems. In short, you must choose your
hardware based on its ability to handle the software; check on this with your hardware
vendor.
Other technology factors to consider include the following working concepts:
Processor speed: how fast a central processing unit (CPU) makes calculations per
second;
expressed in MHz (the abbreviation for “megahertz”)
110
Disk drive: a place in the computer where data is stored or read; hard or floppy—
31⁄2-
inch versus Zip drive
Megabyte: 1,024 kilobytes of formatted capacity
Gigabyte: 1,024 megabytes of formatted capacity
Access time: the amount of time required for a processor to retrieve information from
the hard drive; recorded in milliseconds
Internet: a network of computer systems that share information over high-speed
electronic
connections
I/O ports (input/output devices): keyboards, monitors, modems, mouse, joystick,
light
pen, printers, and track balls
Monitor: a television screen with color or monochrome capacity to view input and
output
data, control column width and line length of display, adjust height of character
display,
and allow visual control
Figure 4-3. Common software options in a PMS.
MARKETING AND SALES
• Client file • Travel agent
• Direct mail • Meeting room information
• Guest history
NIGHT AUDIT
• Room and tax posting • Various operational reports
ACCOUNTING
• Accounts payable • Payroll
• Accounts receivable • Profit-and-loss statement
• General ledger • Balance sheet
HUMAN RESOURCES MANAGEMENT
• Personnel files • Time and attendance
ELECTRONIC MAIL
SECURITY
110
RESERVATIONS
• Room availability • Yield management
FRONT DESK
• Check-in • Guest credit audit
• Room status • Advance deposits
• Postings to guest accounts
• Cashier
CALL ACCOUNTING
• Guest information • Phone call posting
HOUSEKEEPING
• Room status
MAINTENANCE
• Work orders
FOOD AND BEVERAGE
• Point-of-sale • Inventory
• Menu profitability • Recipes

Figure 4-4. Computer hardware includes a keyboard, monitor, central processing

unit, and printer.
PMS Applications
The property management system is organized around the functions needed to assist
in delivering service to the guest. The software options listed earlier in this chapter are
only a few of the many that are available to hoteliers. For purposes of this review,
assume that the lodging property has been equipped with a state-of-the art PMS and
110
the system is up and running. The software program main menu lists on the screen all
the available individual
programs (modules) that are included in the system. Refer to Figure 4-6. The options
shown in Figure 4-6 are similar to those previously listed in this chapter.
The front desk clerk can access any of these individual programs by typing the
designated
keystrokes or following directions on a touch screen, a type of computer monitor
screen that allows the operator to input data by the touch of a finger. The
documentation, which consist of either printed or on-screen (monitor) instructions,
explains how to operate the hardware or software that accompanies a specific PMS.
This documentation will consist of written step-by-step instructions as well as a
flowchart of individual programs and subprograms, all of which is very valuable in
training staff. The flowcharts are comparable to the blueprints of a building. The
following discussion of individual modules and subprograms will highlight the
applications of these software options in a property managementsystem.
Figure 4-6. Main menu of a property management system.
1. Reservations
2. Yield Management
3. Registration
4. Room Status
5. Posting
6. Call Accounting
7. Checkout
8. Night Audit
9. Inquiries/Reports
10. Back Office
11. Housekeeping
12. Food and Beverage
13. Maintenance
14. Security
15. Marketing and Sales
16. Personnel
17. Electronic Mail
110
18. Time Clock
Reservations
The reservations module (refer to Figure 4-7) consists of subsystems that can receive
individual guest or group data, check a guest’s request against a data bank of available
rooms, and store this information. The guest data are received through a personal
phone call or through another computer in the referral system. All of the possibilities
or room types and locations, room rates, and special requests can be matched with the
existing room inventories. This information can be stored for up to 52 weeks (or
more) in most systems.
Information concerning guarantees with credit cards or confirmed reservations is
captured at this time. Details on deposits, blocking, times of arrival and departure,
VIP guest lists, projected occupancies and reports on these reservation functions assist
the front office manager. The guest who is checking out of the Limited-Service Inn in
Dallas, Texas, and
wants to make a reservation at the Limited-Service Inn in Chicago for that evening
can have the reservation confirmed within seconds. The guest information is already
available in the data bank, and through electronic transmissions, the request is verified
by a central computer. Similar procedures are followed by
other referral agencies.
Figure 4-7. Reservations module.
1. Guest Data
2. Room Inventory
3. Deposits
4. Special Requests
5. Blocking
6. Arrivals
7. Departures
8. VIP
9. Projected Occupancy
10. Travel Agents
11. Guest Messages
12. Reports
Figure 4-8. Yield management module.
1. Master Rate Table
2. Per-Person Increments
3. Guest Type Increments
4. Yield Management

110
OBJECTIVE OF THE
STUDY

110
Objective of the study
 To identify the impact of IT service in hotel management system.
 To study usage of automated system in Hotel advantage and disadvantage at
Palash Residency.
 To know the customer view about the Palash Residency.
 To revise usage of automated system in Hotel advantage and disadvantage at
Palash Residency.

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CHAPTER 2

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Chapter 2
PROFILE OF THE ORANIZATION

MPTDC Palash Resiency is located at Bhopal (Madhya Pradesh, India) having AC

Accommodation, Restaurant and a Bar.

Bhopal, capital of Madhya Pradesh combines scenic beauty, historicity and modern
urban planning. It is situated on the site of an 11th century city, Bhojapal, founded by
Raja Bhoja.

Sightseeing options

 Jama Masjid (Mosque) / Moti Masjid (Mosque)

 Shaukat Mahal and Sadar Manzil

 Taj-ul-Masjid (Mosque)

 Gohar Mahal
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 Bharat Bhawan

 Indira Gandhi Rashtriya Manav Sangrahalaya (A Post Colonial Museum)

 Government Archaeological Museum

 Laxmi Narayan Temple and Museum

 Regional Science Centre

 Upper and Lower Lakes

Some important distances from Bhopal are:

Indore 188 km Panchmarhi197 km
Mandu 285 km Gwalior 443 km
Ujjain 186 km Sanchi 46 km
Khajurao 387 km Jabalpur 310 km
Delhi 696 km

Train: The Shatabdi Express and the Bhopal Express are excellent direct train
connection between New Delhi and Bhopal.

Distance : Indore : 180 kms, Pachmarhi - 200 kms

Bhopal is visited as a part of Central India Itinerary.

110
110
MP Tourism - Madhya Pradesh Tourism
Development Corporation

Madhya Pradesh Tourism Development Corporate has renovated all the hotels (all work completed in
2005/2006) and now provide an excellent value option for all travellers to Madhya Pradesh and has
some of very well located options.

Hill Stations Heritage Circuit

 Rock End Manor, Pachmarhi  Hotel Kalchuri Residency, Jabalpur

 Satpura Retreat, Pachmarhi  Motel Marble Rocks, Marble Rocks

 Glen View Resort, Pachmarhi  Tansen Residency, Gwalior

 Hilltop Bungalow, Pachmarhi  Betwa Retreat, Orchha

 Panchavati, Pachmarhi  Hotel Sheesh Mahal, Orchha

 Amaltas, Pachmarhi  Gateway Retreat, Sanchi

 Malwa Resort, Mandu  Palash Residency, Bhopal

 Malwa Retreat, Mandu

Religious Circuit

Wildlife Circuit
 Shipra Residency, Ujjain  Kiplings Court, Pench

 Narmada Resort, Omkareshwar  Tourist Motel, Mandla (65 kms from

Kanha)
 Narmada Retreat, Maheshwar
 Baghira Loghuts, Kisli (Kanha)
 Holiday Homes, Amarkantak
 Kanha Safari Lodge, Mukki (Kanha)

 White Tiger Forest Lodge,

Bandhavgarh

 Tourist Village, Shivpuri

Valid from 1st April 2007

- Single Double Extra Bed

AC Suite 4690 4990 500 110
AC Deluxe 2690 2990 400
AC 1790 2090 300
 Tax : 10%

Peak Season Supplements - 20%

Peak Season - 13th October to 22nd October , 4th November to 18th November 22nd December
2007 to January 2008

METHODOLOGY

Sampling Issues

“Sampling may be defined as the selection of some part of an aggregate or totality on

the basis of which a judgment or inference about the aggregate or totality is made”
(C.R. Kothari, 2005, p-152

Determining the Target Population

Sampling is intended to gain information about a population. In this study the
population is clearly defined as 30 samples from Bhopal.

Types of Data collected for the Study

This research combines both secondary and primary data to achieve research
objectives.
Collection of Primary Data
In descriptive type of research the data is collected through surveys, whether sample
surveys or census surveys. In this research the researcher has resorted to sample
survey. Then the researcher can obtain primary data either through observation or
through direct communication with respondents in one form or another or through
personal interviews.

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Literature Review
1.1 History & Evolution
The hotel industry that exists today can be traced back to 3000 B.C. where the
earliest inns were homes with rooms provided for travelers. Conditions improved in
1700s England when the renaissance sparked the desire to travel. The United States
saw its hotel industry created a century later. By this time they had revolutionized
many firsts in the industry including private rooms with locks and doors, free soap, a
trained staff, and a pitcher of water in each room. Indoor plumbing and the creation of
the lobby followed shortly thereafter. The business of providing strangers with
hospitable means has come along way. What once was a service to fellow man is now
the foundation numerous economies throughout the world.
The modern era of the hotel industry saw its beginnings in 1794 New York
where the first ever hotel was built. Profit potential was recognized with the inception
of the industrial revolution. Stock companies invested in hotels seeking profit from
property value appreciation and room occupancy revenue. Surrounding communities
were promised increase in sales by means of higher volume of people passing
through., the industry creates a multitude of opportunities that now saturate the
industry in the form of spin-offs of these top four hotel companies creating the most
common chains we know of today. History has proven that the success of this industry
has largely to do with two factors, location and innovative integration, the
combination of these two has created a margin between the larger chains and those
who operate on a smaller scale. Soap and locks on doors were the innovation for their
day. Strategic placement and product differentiation once again guide the success of
this industry.

The word hotel is derived from the French hôtel (coming from hôte
meaning host), which referred to a French version of a townhouse or any other
building seeing frequent visitors, rather than a place offering accommodation. A hotel
is an establishment that provides paid lodging on a short-term basis.

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The provision of basic accommodation, in times past, consisting only of a
room with a bed, a cupboard, a small table and a washstand has largely been replaced
by rooms with modern facilities, including en-suite bathrooms and air conditioning or
climate control. Additional common features found in hotel rooms are a telephone, an
alarm clock, a television, and Internet connectivity; snack foods and drinks may be
supplied in a mini-bar, and facilities for making hot drinks. Larger hotels may provide
a number of additional guest facilities such as a restaurant, a swimming pool or
childcare, and have conference and social function services. Some hotels offer meals
as part of a room and board arrangement.

Hotel Industry in India has witnessed tremendous boom in recent years.

Hotel Industry is inextricably linked to the tourism industry and the Growth in the
Indian tourism industry has fuelled the growth of Indian Hotel industry. The thriving
economy and increased business Opportunities in India have acted as a boon for
Indian hotel industry. The Arrival of low cost airlines and the associated price wars
have given domestic tourists a host of options.

The 'Incredible India' destination campaign and the recently launched

'Atithi Devo Bhavah' (ADB) campaign have also helped in the growth of domestic
and international tourism and consequently the hotel industry. According to a report,
Hotel Industry in India currently has supply of 110,000 rooms and there is a shortage
of 150,000 rooms fuelling hotel room rates across India. According to estimates
demand is going to exceed supply by at least 100% over the next 2 years. The future
scenario of Indian hotel industry looks extremely rosy. It is expected that the budget
and mid-market hotel segment will witness huge growth and expansion while the
luxury segment will continue to perform extremely well over the next few years.

1.2 List of players in the industry

 Taj Group
 Inter Continental
 Le Meridien Group of Hotels
 Oberoi Group of Hotels
 The Park Group of Hotels 110
 Welcome Heritage Group of Hotels
 ITC Welcome group of Hotels

1.3 Categorization of players in the industry

Based on location
City center: Generally located in the heart of city within a short distance from
business center, shopping arcade. Rates are normally high due to their location
advantages. They have high traffic on weekdays and the occupancy is generally
high.

Motels: They are located primarily on highways, they provide lodging to highway
travelers and also provide ample parking space. The length of stay is usually
overnight.

Suburban hotels: They are located in suburban areas, it generally have high traffic
on weekend. It is ideal for budget travelers. In this type of hotel rates are
moderately low.

Airport hotels: These hotels are set up near by the airport. They have transit guest
who stay over between flights.

Resort hotels: They are also termed as health resort or beach hill resort and so
depending on their position and location. They cater a person who wants to relax,
enjoy themselves at hill station. Most resort work to full capacity during peak
season. Sales and revenue fluctuate from season to season.

Floating hotels: As name implies these hotels are established on luxury liners or
ship. It is located on river, sea or big lakes. In cruise ships, rooms are generally
small and all furniture is fixed down. It has long stay guest. 110
Boatels: A house boat hotels is referred as boatels. The shikaras of Kashmir and
kettuvallam of kerala are houseboats in India which offers luxurious
accommodation to travelers.

Rotels : These novel variants are hotel on wheel. Our very own "palace on wheels"
and "Deccan Odessey" are trains providing a luxurious hotel atmosphere. Their
interior is done like hotel room. They are normally used by small group of
travelers.

Based on Size of Property

The main yardstick for the categorization of hotel is by size the number of rooms
available in the hotel.

Small hotel: hotel with 100 rooms and less may be termed as small hotels.

Medium sized hotel: hotel which has 100-300 rooms is known as medium sized
hotel.

Large hotels: hotel which have more than 300 rooms are termed as large hotels.

Mega hotels: are those hotels with more than 1000 rooms.

Chain hotels: these are the groups that have hotels in much number of locations in
India and international venues.

Based on the Level of Service

Hotels may be classified into economy, and luxury hotels on the basis of the level of
service they offer.

Economy/ Budget hotels: These hotels meet the basic need of the guest by 110
providing comfortable and clean room for a comfortable stay.

Mid market hotels: It is suite hotel that offers small living room with appropriate
furniture and small bed room with king sized bed.

Luxury hotels: These offer world class service providing restaurant and lounges,
concierge service, meeting rooms, dinning facilities. Bath linen is provided to the
guest and is replaced accordingly. These guest rooms contains furnishing, artwork
etc. prime market for these hotels are celebrities, business executives and high ranking
political figures. Example: Hyatt Regency, New Delhi

Based on the Length of Stay

Hotel can be classified into transient, residential and semi residential hotels depending
on the stay of a guest.

Transient Hotel: These are the hotel where guest stays for a day or even less, they
are usually five star hotels. The occupancy rate is usually very high. These hotels
are situated near airport.

Residential hotels: These are the hotel where guest can stay for a minimum period
of one month and up to a year. The rent can be paid on monthly or quarterly basis.
They provide sitting room, bed room and kitchenette.

Semi residential hotels: These hotels incorporate features of both transient and
residential hotel.

Based on Theme
Depending on theme hotel may be classified into Heritage hotels, Ecotels, Boutique
hotels and Spas.

Heritage hotel: In this hotel a guest is graciously welcomed, offered room that 110
have their own history, serve traditional cuisine and are entertained by folk artist.
These hotels put their best efforts to give the glimpse of their region. Example: Jai
Mahal palace in Jaipur.

Ecotels: these are environment friendly hotels these hotel use eco friendly items in
the room. Example: Orchid Mumbai is Asia first and most popular five star Ecotels.

Boutique hotels: This hotel provides exceptional accommodation, furniture in a

themed and stylish manner and caters to corporate travelers. Example: In India the
park Bangalore is a boutique hotel.

Spas: is a resort which provide therapeutic bath and massage along with other
features of luxury hotels in India Ananda spa in Himalaya are the most popular
Spa.

Based on Target Market

Commercial hotel: They are situated in the heart of the city in busy commercial
areas so as to get good and high business. They cater mostly businessmen.

Convention hotels: These hotels have large convention complex and cater to
people attending a convention, conference

Resort hotels: These leisure hotels are mainly for vacationers who want to relax
and enjoy with their family. The occupancy varies as per season. The atmosphere is
more relaxed. These are spread out in vast areas so many resorts have solar
powered carts for the transport of guest.
Suite hotels: These hotel offer rooms that may include compact kitchenette. They
cater to people who are relocating act as like lawyers, executives who are away
from home for a long business stay.

Casino hotels: Hotel with predominantly gambling facilities comes under this
category, they have guest room and food and operation too. These hotels tend to 110
cater leisure and vacation travelers. Gambling activities at some casino hotels
operate 24 hours a day and 365 days.

1.4 Brief profile of players in the Industry

Best Hotel Chains Of India
Mentioned below are the significant hotel chains of India,

Taj Group of hotels in India: The most popular name that is almost synonymous to
hospitality in India is that of the Taj Group. Offering the best hotels across various
genres like business hotels, heritage resorts, luxury hotels and even sea resorts, the Taj
Group is definitely the best in the field.

The Oberoi Group of Hotels in India: One of the most prominent names among the
hotel chains of India is the Oberoi Group. It also owns several properties in exotic
places like Australia and Mauritius. With its world class facilities and efficient staff to
manage and play the perfect Indian hosts, the Oberoi hotels is no doubt a great feather
on the grand cap of tourism in India.

Le Meridien Group of Hotels: The Le Meridien Group of Hotels has played

an instrumental role in playing the perfect host to the millions of tourists and guests
coming here. It is a luxury brand of great fame and reflects the inherent Le Meridien
touch of elegance and class through all its properties in India. It is no wonder one of
the exclusive hotel chains of India.

Best Western Group: A world famous name when it comes to hospitality and service,
the Best Western Group owns several properties across India. Each of the hotels has
been equipped with numerous features to enable a cozy comfortable stay to the guest.
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PRODUCT LINES AND CONSUMER

BEHAVIOUR

2.1 Products

Rooms : The rooms in hotels are based on the Category of the hotel. The facilities in
the rooms are based on the type of hotel and price of the rooms are based on the type
and facilities provided in the room.

Conference Rooms: The conference rooms are provided by hotels for the meetings
and other requirements as per the request by the customers. The price depends on the
facilities, space and time utilized.

Banquets & Halls: Banquet halls are provided by hotels for parties and functions.
These halls provide extra revenue for the hotels.

Restaurants & Bar : Along with the rooms hotels provide restaurants and bars which
are charged separately. This adds revenue as well as a facility for the customers who
are staying in hotels.

Recreation facility

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2.2 Product Description

There are several types of rooms provided by the hotels based on their category. Few
types of rooms are explained below

STANDARD: This category usually means the most basic room type offered by the
hotel. It has basic, standard amenities and furnishings. Standard rooms in hotels with
higher categories often have no view or have a poor view over the dumpster or
parking lot.

MODERATE: Usually a slight bit better than standard, but still not deluxe. It may
refer to the room view as well as the size and type of furnishings offered.

SUPERIOR: This category is always subject to interpretation. It's supposed to mean

superior to a standard room in both size and furnishings, but it often refers to just the
view. Some hotels have only Superior rooms; the categories then are defined by the
view and location of the room.

DELUXE: These rooms are supposed to be Deluxe in every way: View, location,
furnishings and size.

JUNIOR SUITE: A "junior" suite is typically a larger room with a separate seating
area. Sometimes it's got a small divider between the part of the room that the bed is in
and the seating area, but it is not two separate rooms.

SUITE: A Suite is usually two or more rooms clearly defined; a bedroom and a living
or sitting room, with a door that closes between them. Many hotels use the word
"suite" to define any room with a sofa in it so be sure to check thoroughly if what you
really want are the two or more separate rooms.

STUDIO : This is usually configured like a Junior Suite, but has the added advantage
of a "kitchenette," or cooking facilities
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2.3 Complimentary Products
 Swimming pool, , Fitness Centre
 Meeting Rooms, Business Centre
 Complimentary High Speed Internet, Free Local Calls
 Superstar Hot Continental Breakfast, Complimentary morning
newspaper
 Guest Laundry, Dry Cleaning
 Coffee/tea Maker, Mini fridge, Microwave
 Complimentary Valet Parking
 Wake Up Service
 Bike rental at the reception desk
 Fitness centre
 Tenis court
 Beauty parlour Lucie: lifting cure, regeneration cure, manicure,
pedicure
 Hairdresser
 Private car park on the hotel premises
 Travel agent
 Air port pick up and drop
 Guide facilities
 Banquit halls
 Meeting rooms
 Swimming pools

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2.4 Substitutes

 Friends or relative houses,

 Youth hostels,
 Paying guests
 Dormitories
 Resorts
 Motels
 Lounges in airports, railway stations, bus shelters.
 Private guest houses and R&B guest houses

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GROWTH OF THE INDUSTRY

3.1 Rate of Growth

According to a report, Hotel Industry in India currently has supply of

10,000 rooms and there is a shortage of 150,000 rooms fuelling hotel room rates
across India. According to estimates demand is going to exceed supply by at least
100% over the next 2 years. Five-star hotels in metro cities allot same room, more
than once a day to different guests, receiving almost 24-hour rates from both guests
against 6-8 hours usage. With demand-supply disparity, hotel rates in India are likely
to rise by 25% annually and occupancy by 80%, over the next two years. This will
affect the competitiveness of India as a cost-effective tourist destination. To
overcome, this shortage Indian hotel industry is adding about 60,000 quality rooms,
currently in different stages of planning and development, which should be ready by
2012. Hotel Industry in India is also set to get a fillip with Delhi hosting 2010
Commonwealth Games. The future scenario of Indian hotel industry looks extremely
rosy. It is expected that the budget and mid-market hotel segment will witness huge
growth and expansion while the luxury segment will continue to perform extremely
well over the next few years.
The hotel industry in India is going through an interesting phase. One of the
major reasons for the increase in demand for hotel rooms in the country is the boom in
the overall economy and high growth in sectors like information technology, telecom,
retail and real estate.
Rising stock market and new business opportunities are also attracting
hordes of foreign investors and international corporate travelers to look for business
opportunities in the country. The arrival of low cost airlines and the associated price
wars have given domestic tourists a host of options. The opening up of the aviation
industry in India has led the way for exciting opportunities for the hotel industry as it
relies on airlines to transport 80% of international arrivals.
Moreover, the government’s decision to substantially upgrade 28 regional
airports in smaller towns and privatization and expansion of Delhi and Mumbai
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airport will improve the business prospects of hotel industry in India. Substantial
investment in tourism infrastructure is essential for Indian hotel industry to achieve its
potential.
The upgrading of national highway connecting various parts of India has
opened new avenues for the development of budget hotels here. The Government of
India’s Incredible India destination campaign and the Atithi Devo Bhavah campaign
have also helped the growth of domestic and international tourism and consequently
the hotel industry.
In order to increase the stock of hotel rooms, the Federation of Hotel and
Restaurant Associations of India suggested to the government that the floor area ration
of the existing hotels should be increased. This was a couple of years before and will
help create additional rooms in the existing properties and ease the burden of shortage
of hotel rooms in the country. The proposal is yet to be implemented.

3.2 Pattern of Growth (Seasonal & cyclic)

Pattern of growth in hotel industry is both seasonal and cyclical as

hotel industry is inter related and based on the tourism industry. As the industry is
related and run on the demand based on the location in some regions like historical
places and business centers (ex: Delhi, Hyderabad, Tirupathi, etc) the demand for the
hotels are cyclical and for few places the demand is seasonal. Seasonal demand is
depend on the climate and location (ex: beaches in India are mostly visited in summer
because of climate and vacations)

3.3 Growth Determinants

Location
Location is a critical consideration because if affects hotels ability to draw
customers. It is important that hotel location be visible, accessible, convenient and
attractive to market. Surrounding land uses are important for all types of lodging
operations. Aesthetics of the area, noise, safety and other factors should be
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considered.
Commercial Locations
By location along major highways or in business or industrial districts,
hotels and motels benefit from high visibility and proximity to generators of room
night demand. Local colleges, hospitals, attractions, services and entertainment are
examples of “room night” demand generators.

Resort Locations
Hotels and motels in resort areas generate most of their business form
leisure travelers who see the lodging facility and surrounds area as their “destination.”
Access and visibility, while important, are secondary to the quality of the facility,
services, amenities, and nearby attractions.

Local Market Area

A lodging facility must be located in a market area that attracts
overnight visitors.

Business Climate
Hotels and motels that primarily serve business travelers usually rely
on the strength of the local business community.

Tourism Activity
Hotels and motels in resort areas typically rely on local attractions to
bring in customers. Attractions can include both natural and man-made places of
interest.

Business Travelers:
Business travelers represent a large portion of lodging demand in many
market areas. They include people traveling on business representing commercial,
industrial and governmental organizations. Peak business demand is usually
experienced Monday through Thursday nights.
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Leisure Travelers:
Leisure travelers may visit an area for a vacation, to attend sporting or
social events, to shop, or to visit friends and relatives. They might be staying over
simply because they are traveling to other destinations. Leisure travelers may be
individuals, couples, families, or small groups. Travelers visiting hospitals and
universities are typically included in this market segment. Leisure room demand is
often seasonal. In larger, more urban market areas, leisure room demand may be
limited to weekends, summer months and holiday periods.

Other Travelers:
Various lodging customers cannot be classified under the categories of
business, leisure, or group. These travelers may include construction workers,
truckers, utility crews and others.

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TECHNOLOGY OF PRODUCTION AND

DISTRIBUTION

4.1 Cost structure

SOURCE OF FINANCE
The source of finance available to a hotel development is similar to
those available to real estate developers of others kind of project. The following are
usual method of rising finance for the hotel Industries:-
1. Share capital
2. Preference share capital
3. Equity share capital
4. Borrowed capital
5. Debenture
6. Mortgage
7. Loan from commercial bank
8. Loan from financial institution
9. Trade debt- credit guaranteed by supplier
10. Inter company loans
11. Provision for taxation
12. Public fixed deposit
13. IPO

FUND ALLOCATION FOR THE PROJECT

Hotel industries displays an investment characteristic with
Distinguishes it for other industries. The industry can be classified as one among
those which are highly capital intensive. Most of the Hotel represented by land,
building, furniture furnishing and Equipment. A study of the balance sheet of the
leading hotel companies shows that bulk capital is 90%.

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A hotel project requires money under the following heads:
1. Cost of land and building
2. Cost of civil works
3. Cost of electrics installation and fixtures
4. Cost of sanitary work and fixtures
5. Cost of furniture fixture and fitting
6. Cost of carpet
7. Cost of providing facilities like air-conditioning, boilers, water treatment
plant, filtration plant, water pump, drainage system.
8. Cost of providing swimming pool, land scaping, land development,
9. Shopping arcade.
10. Cost of kitchen ware.
11. Cost of manpower
12. Misllinious cost

4.2 Economies of Scale

The hotel industry enjoys the economies of scale based on the
occupancy rate. When the occupancy rate is high the hotels enjoy the economies of
labor and fixed cost is distributed over large number of rooms effecting in the increase
of the revenue and the various other costs like maintenance will remain same what
ever the occupancy, if the occupancy is high the expenses are distributed occupied
rooms resulting in the increase of revenue. Other than the savings in cost many hotels
charge 24hours rent on rooms used for night halts (i.e. is for 8 to 10 hours) thus
enjoying the chance to rent same room to other customers for 24 hours.

4.3 Economies of Scope

Opportunities for the Indian hotel sector continue to be in the budget and
mid-market segment. Anticipation for huge growth and expansion, in the next year or

110
two. The luxury segment is set to perform extremely well over the next few years
until the supply- demand gap is bridged.

New opportunities lie in the extended stay segment, which many potential
developers are currently shying away from. . Agra, while having seen highest
improvement, has still a long way to go (citywide occupancy 47%). There also some
unfinished hotel projects in Agra, which will continue to put pressure on the city’s
performance. As regards Jaipur, the recent announcement by a major IT company to
set up a base outside Jaipur, as well as the state government’s initiative to promote IT-
related activity in the city, means that Jaipur can look forward to some additional
room night demand from the business segment. These developments in the leisure
segment including the strong performance in Goa leads to believe that the leisure
segment is clearly benefiting from the increase in foreign tourist arrivals and growth
in domestic travel.

Hotels in metro cities, with an average rate of Rs 2,600-3,000, and hotels

in non-metro cities, with an average rate of Rs 1,800-2,400, are likely to experience
rapid growth in demand in the next year or two. Cities to watch out for, in terms of
development opportunity, are Pune, Goa, and certain pockets in major cities like Delhi
(west) and Mumbai (mill lands).

4.4 Labour
Department of Hotels that are available for guest 24 X 7:-

Hotel Industry Kitchen/ Food Production: Kitchen & food production is a department
of hotel that responsible for food . Even hotels having Coffee Shop provides 24 hour
services to the guest.

Hotel Industry Engineering:- If any problems come in room, bulb fuse, A/C not
working , then need to contact Hotel Engineers, they are also available 24 hours.

Hotel Industry Front desk:- Front desk is 1st impression on guest, if guest like this
110
section then only he will go for other option like restaurant, laundry, etc. Front desk
consists of young and energetic staff who is always (24 x 7) be there to help guest,
they are also responsible for Business Centre, Internet Access. Front office desk
responsible for making C-Form for Foreigner Clients, providing safety lockers to the
guest. Taking Reservation by Telephone, E-Mails, and Fax from the guest. Also
providing guest Money Exchange Services.

Hotel Industry Housekeeping:- Housekeeping are available 24 X 7 for guest, making

their bedroom, bathroom, etc. Providing guest Laundry services also do day to day
room cleaning for guests.

Hotel Industry Food & Beverage Service:- They include providing guest the services
whether in rooms, Restaurants or Banquets, or in Conference rooms.

Hotel Industry Travel Desk:- They are responsible for arranging day to day travels for
the guest. They also do the ticket confirmation work, and also provides the
information for sightseeing to the guests.

Gym/ Health Club/ Sports:- Medium and large hotels are providing Gyms, Swimming
Pool, Health Club, Beauty Parlor, Saloon, games like Billiards, Pool, etc facilities to
their guests. Most of the Hotels are providing these facilities complimentary with the
rooms.

Parking/ Shops:- Few Star hotels providing big parking space, shops in the restaurant
itself for the guest conveyance, so that they can get the things in hotel itself.

MARKETING

5.1 Market Sgmentation

Hotels in India are broadly classified into 7 categories (five star
deluxe, five-star, four star, three star, two star, and one-star and heritage hotels) by the
Ministry of Tourism, Government of India, based on the general features and facilities
offered. The ratings are reviewed every five years. As of December 2005 (latest
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available figure) there are following number and category of hotels.
Star Category No. of Hotels No. of
Rooms
5-star Deluxe 82 18764
5-star 92 11332
4-star 132 9401
3-star 704 31039
2-star 587 19031
1-star 212 695
Heritage 83 2216
To be 50 5127
Total 1934 103973
Source: Ministry of Tourism, Government of India

The table excludes hotels in the unorganized sector that have a significant
presence across the country and cater primarily to economy tourists. Premium and
Luxury Segment this segment comprises the high-end 5-star deluxe and 5-star hotels,
which mainly cater to the business and up market foreign leisure travelers and offer a
high quality and range of services. The segment accounted for 29per cent of the total
hotel rooms in the country in December 2005.

Mid-Market Segment
This segment comprises 3 and 4 star hotels, which cater to the average
foreign and domestic leisure travelers. This segment also caters to the middle level
business travelers since it offers most of the essential services of luxury hotels without
the high costs since the tax component of this segment is lower compared with the
premium segment.

Budget Segment
These comprise 1 and 2 star hotels referred to as ‘Budget Hotels’. These
categories do not offer as many facilities as the other segments but provide
inexpensive accommodation to the highly price-conscious segment of the domestic
and foreign leisure travelers.

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Heritage Hotels
In the past four decades, certain architecturally distinctive properties such
as palaces and Forts, built prior to 1950, have been converted into hotels. The
Ministry of Tourism has classified these hotels as heritage hotels.

Others
At any point in time, applications for classification are usually pending
with the Ministry of Tourism because of which such properties remain unclassified.
The number of hotel rooms pending classification has declined from historical 15-
20per cent to 5per cent of the total rooms available in the recent past.

5.2 Market Strategies

Branding

During the 1980s, the hotel industry saw an explosion of new brands, ,
Market segmentation has served as one of the most powerful drivers in the creation of
more and more branded products a trend that became a popular marketing concept in
the 198Os and remains so today. Seen as a vehicle for growth by a number of hotel
companies that tapped a virtually limitless supply of capital in those years. Large
hotel chains assumed that they could create new markets by establishing niche
products in a variety of segments. With the benefit of hindsight, however, some hotel
chains that started out in a mid-market segment have tried to move up-market by
creating new brand concepts to do so. As hotel companies fine-tune their identities,
reposition their products and promote growth through aggressive franchising
programs.

Technology

In the hospitality industry, as in all arenas of commerce, technology

represents one of the strongest forces for change, while having had a significant
impact on brand marketing. Hotel reservation systems have been shifting from voice
to electronic Global Distribution Systems and are now on the verge of consumer
access via the Internet. The increasing role played by the Internet should slowly affect
booking patterns in the future as inexpensive consumer access to hotel product 110
becomes available. This, of course, has potential implications for the benefits
associated with the branding of hospitality products..

5.3 Market practices

PRICING STRATEGIES

One of the single greatest challenges facing independent hotels today is

pricing. Pricing the inventory effectively can lead to profitability and helps lay the
foundation for long term success. But, pricing the inventory ineffectively can lead to
disaster. During the last decade; two simultaneous factors impacted the market place
and customer buying practices: (1) the dramatic drop in demand (2) and the
widespread use of the Internet for booking rooms. Capitalizing on this situation, third
party Internet companies seized the opportunity to grow their businesses. Hotels were
eager to work with them, and customers were eager to use them as confidence and
security in buying goods and services on-line increased.

 Rack Rates: Without any affiliations to warrant discounts, the Rack Rated
customer paid the published rate, which was the highest rate.
 Consortia Rates: This was the same customer who booked through a travel
agent using the GDS and received a 5%-10% discount off Rack Rates.
 Corporate Rates: Having met the hotel’s qualifying criteria, such as volume,
businesses were guaranteed discounted rates.
 Group Rates: With a block of rooms, rates varied based on time of year and
the nature of the group.
 Weekend Rates: Individual leisure travelers, usually within a drive distance to
the hotel.
 Promotional rates: These rates were originally used sparingly and used as a
means to stimulate business by using discounted rates to anyone, regardless of
affiliation.

110
INNOVATION

Service Innovation
Hotel industry is continuously using the concept of technology to develop
its image and occupancy ratio. Though the hotel industry is a service industry it is
continuously innovating the way the services are provided. Many hotels have a
category of rooms which are different in the space and facilities each one having their
own specialties and range of price. Hoteliers are now running their business according
to the taste and preferences of the customers continuous feed back from the customers
are helping the management to innovate in the services provided by the. Few hotels
are providing an services in their unique way to get into moonlight. Offering special
services respecting the customer’s traditions and customs and providing the service in
their way is new innovation to attract the customers.

Technological Innovation
The advent of the Internet has opened up many avenues for the hotel
industry, most importantly the ability to book clients. Most if not all of the hotel
chains offer some sort of online reservation enabling the hotel management and staff
to focus their efforts in a variety of different places. It is reported that 25 percent of all
reservations are made online making it a key tool in room occupancy fulfillment. In
addition to room booking, most hotel chains today utilize the Internet by offering
online deals and major advertising campaigns. Electronic advertisement accompanied
with the ability to make reservations online has made the Internet tremendously
valuable. Adapting to e-commerce transitions such as the implementation multi-
purpose computer software are necessary to cater to the clientele of the next
generation. A higher understanding of market needs will ensure a larger portion of it.
Information processing management is another key element that has
contributed to hotel industry success. Understanding and acting on the needs of
clientele will lure travelers away from competitors. Again, most if not all hotel chains
today are utilizing some sort of customer pattern tracking. Complete client pleasure is
dependent upon what you can offer differently from the other guy. The color of the
sheets, the position of an ice machine, the softness of toilet paper; targeting the very
core needs of clientele means they will return to what they are comfortable with. 110
STRATEGIES AND COMPETITION IN THE

INDUSTRY

7.1 Internal Rivalry

The degrees of internal rivalry consist of competitors in the hotel industry that
differentiates their strengths, cost, product offering, and positioning within the
industry. In the hotel industry there is a lot of competition that takes place between
different providers. Each company finds their strengths and does everything in their
power to be acknowledged by the customer. Once they uncover how they can serve
their consumers better than leading competitors they position themselves in the
industry that better serves the consumers.

7.2 SWOT Analysis

STRENGTHS
 A very wide variety of hotels is present in the country.
 There are international players in the market such as Taj and Oberoi &
International Chains

 A manpower cost in the Indian hotel industry is one of the lowest in the
world.

 India offers a readymade tourist destination with the resources

 Natural and cultural diversity
 Demand-supply gap
 Government support

WEAKNESSES

 The cost of land in India is high at 50% of total project cost as against 15% abroad.

 The hotel industry in India is heavily staffed.

 High tax structure in the industry makes the industry worse off than it’s international.
 Only 97,000 hotel rooms are available in India today.
 Only limited value added services
110
 Slow implementation

OPPORTUNITIES
 Demand between the national and the inbound tourists can be easily managed
due to difference in the period of holidays.

 In the long-term the hotel industry in India has latent potential for growth.
 Unique experience in heritage hotels.

 Rising income.

THREATS
 Guest houses replace the hotels.
 Political turbulence in the area reduces tourist traffic and thus the business of the
hotels

 Changing trends in the west demand similar changes in India

 The economic conditions of a country have a direct impact on the earnings in hotel
industry.

 Lack of training man power in the hotel industry.

 Fluctuations in international tourist arrivals.

 Increasing competition

7.3 Porters Five Forces Model

BARGAINING POWER Of SUPPLIERS

The term 'suppliers' comprises all sources for inputs that are needed in order to
provide goods or services.

 The high class hotels are operating by few hotel chains like-
TAJ,EIH,ITC&THE LEELA PALACE so they have a control over the
industry.
 There are no substitutes for spas and five star hotels.

110
 The hotels customers are fragmented, so they have to reduce their bargaining
power to attract the customers.

 The Taj, ITC& Oberoi are having various rates and tariffs. Because they are
having their own brand image.

 The hotel chains are operating different services like Spas, Boatels, Resorts,
City Centers, Heritage HOTELS, etc.

BARGAINING POWER OF CUSTOMERS

Similarly, the bargaining power of customers determines how much customers

can impose pressure on margins and volumes.

 The hotel industry is one of the most invested in its fixed assets. So they are
trying to recover their amount quickly.
 The suppliers are providing better information about them to attract the
customers’ .Here the buyers are highly informed.

 If the hotel price changes are moderate, the Customers have low margins and
are price-sensitive.

 Some unseasoned timings the hotels are offering discounts and incentives to
reduce the bargaining power of buyers.

THREAT OF NEW ENTRANTS

The competition in an industry will be the higher; the easier it is for other
companies to enter this industry. In such a situation, new entrants could change major
determinants of the market environment (e.g. market shares, prices, customer loyalty)
at any time. There is always a latent pressure for reaction and adjustment for existing
110
players in this industry.
 The foreign hotel chains are tied up with Indian hotels to reduce the initial cost
and using the latter’s brand name.
 Brand loyalty of customers like TAJ, ITC, and LEELA PALACE affects the
new entrants.

 Access to raw materials and Distribution channels are controlled by Existing

players like TAJ, ITC, and LEELA PALACE.

 The cost of land in India is high at 50% of total project cost as against 15% abroad.
This acts as a major deterrent to the Indian hotel industry.

 In India the expenditure tax, luxury tax and sales tax inflate the hotel bill by over 30%.
Effective tax in the South East Asian countries works out to only 4-5%.

THREAT OF SUBSTITUTES

A threat from substitutes exists if there are alternative products with lower
prices of better performance parameters for the same purpose. They could potentially
attract a significant proportion of market volume and hence reduce the potential sales
volume for existing players. This category also relates to complementary products.

 Brand loyalty of customers (TAJ, ITC, LEELA PALACE, etc,) is dominating

the substitutes.
 The hotel relationship with customer and costs also the reasons to switching to
substitutes.

 The price variation of same class hotel services from various brands is one of
the reasons to choose a substitute.

 The present demand and supply of hotel rooms is one of the reasons to choose
a substitute.

 More fixed cost and switching costs affects the business.

110
COMPETATIVE POWER OF RIVALRY PLAYERS

This force describes the intensity of competition between existing players

(companies) in an industry. High competitive pressure results in pressure on prices,
margins, and hence, on profitability for every single company in the industry.

 The top competitors in hotel industry are having the same services like five
star, spas, boatels and motels, heritage hotels and palaces.
 The healthy competition among the all players is helping to increase the
industry growth.

 Intense in metro cities, slowly picking up in secondary cities

BUSINESS ENVIRONMENT

PESTAL Model
Political factors
Rules and laws are apart of citizens everyday life. We have to abide by certain
rules and regulations in order to remain in society. This goes for corporations as well.
All corporations have to face some sort of rules and regulations. Although each
corporation has to face rules and regulations, each industry faces different rules and
regulations. Of course, it would only make sense to believe that all regulations are
negative for corporations because it takes away from the bottom line.

However, there can be positive affects of the regulations. For example, a ruling in
favor of anti-trust laws will take away from the monopolistic company, but at the
same time, the barriers of entry will become easy leaving opportunity for other
companies to increase their bottom line. An analysis of the hotel industry has revealed
that there are environmental, labor, and food & safety regulations as well as
regulations for merging, which must be looked at before entering into the industry.
Environment is one aspect the government will always have their eye on, and
they will introduce laws that will protect the environment. Such laws will need to be
looked at as a player in the hotel industry. Hotels are could be liable for clean up of
contamination and other corrective action under various laws, ordinances and 110
regulations relating to environmental matters. Such laws referring to keeping the
environment in good shape can be quite costly to hotels in the industry. In Europe,
North America, Australia and New Zealand, such prosecutions can now result in
heavy financial penalties, considerable clean-up costs or in worst instances, jail
sentences
Another political factor that can impose a concern for a member in the hotel
industry is the laws regarding labor. For instance, there are laws that govern minimum
wage. Although this might not seem to be a concern, but anytime you are forced to
pay a wage not in plans, which are taking away bottom line. Another law that can be
quite costly is treatment of employees. For example, there are laws that prevent
discrimination, and sexual harassment. If a hotel company violates these laws, it can
lead to severe lawsuits, and at the same time the hotel will be slicing their revenues.
The labor laws are pretty strait forward, but must be obeyed in order to keep on going
profits.

Social Cultural Factors

Social cultural factors are a big issue to look into for hotel industry because it
deals with a lot of consumers who have different demographic, ethnic, cultural
backgrounds. By satisfying each consumers or generalizing the way to hospitalize,
hotel industry can have chance to expand more.

Technological factors
In order for a hotel to prevent obsolescence and remain technologically
advanced, the hotel must be up to date with all the latest technological changes that
are taking place that might have an impact on the industry. As it moves through the
twenty-first century, it is evident, that there is a strong focus on technology.
Today, the Internet is increasingly being used. Consumers are shopping on the
Internet, from music to travel and anything one can think of. For the hotel industry,
they need to take this into consideration. The reason is that if hotels don’t have a well
developed website, they will possibly loose potential consumers. Not only do they
need to alternate their distribution channels of information, they also need to advertise
aggressively on the Internet. Discussing in further detail of what the computer has
brought is using it for organizing the hotel operation. The day of having everything on
110
paper is obsolete. So, in order for a hotel to have a competitive advantage, they need
to have a very high tech information system.
While the computer is changing the way hotels in the industry can offer
information to their potential consumers and the way a hotel organizes their
operations, materials supplied to the hotel are starting to become obsolete. For
example, in most hotels, you will still find stereos, VCRs, and regular televisions.
However, things have changed in the way people access music, movies, and of course
T.V. Today’s society, individuals have moved away from those big boxes and adopted
the use of digital technology. So, for a hotel to prevent obsolescence the must change
from the suppliers that are supplying them with stereos, VCRs, and regular TVs and
look for suppliers that will offer them ipods, DVDs, and digital HDTV for room use.
Moving in this direction will make the hotel much more attractive, thus the revenues
will increase.

The final technological factor that needs to be looked at is the rising costs of
energy. These are uncontrollable costs, thus the only thing that can be done to limit
the impact of these increasing costs is for hotels to manage the use of energy
efficiently. A strategy of how to manage it would be one thing; however, a hotel must
also look at the alternatives of energy that are coming into the world. For example,
with high-energy costs some businesses are thinking innovation. Solar Cities will be
the successes of the 21st century.

Ecological factors
Environment is something we as human beings come in contact with everyday.
The condition of the environment will often guide decisions. For instance, if it is
really smoggy outside, the chances of going for a hike or to an amusement park are
very small. So, it would only make sense as a member of an industry that is looking to
increase the demand of consumers to fully understand what environmental factors for
their industry might impose an impact on the customer’s decision.
For example, during hurricane season, the customer decision to stay in a hotel on
the east coast is not as likely as it was before these natural disasters. Global warming
is another ecological factor calls for concern. The ozone is slowly being exhausted by
human actions while leaving the earth degrees warmer. The uncertain climate can
110
have a direct impact on hotels that are in areas of ski resorts. However, even though
this is a definite concern, it should be a concern for long term planning the time frame
for such effects is more likely to happen in the future. A way that could allow this not
to be an impact for other hotels is to build a strong image in the consumers mind.
Such image would come from being eco-efficient by improving resources to prevent
pollution.

CRITICAL SUCCESS FACTORS

9.1 Factors influencing Success in the Industry

Demand Drivers.
The hotel and restaurant industry of India was Rs. 658.89 billion during
2007-08.
Travel & Tourism Industry of India was valued at US$35.73 billion in 2007,
contributing 3.56% to India’s GDP. The number of foreign tourists arriving to India
reached 5.08 million compared with 4.45 million in the year 2006, showing growth of
14.16%. India’s share in international tourist arrivals at global level gradually
improved from 0.46% in 2004 to 0.49% in 2005 and further to 0.52% in 2006 and
0.56% in 2007.
The number of domestic tourists in India was 526.57 million compared
with 461.76 million in 2006, showing growth of 14.03%. There are 1,437 hotels
approved and classified by the Ministry of Tourism, Government of India, with a total
capacity of 84,327 hotel rooms as on December 31, 2007. Indian hotel industry is
currently adding about 60,000 quality rooms, which are expected to be ready by 2012.

International Tourist Traffic

110
The foreign tourist arrivals in India increased at CAGR of 5.5per cent from
2.29
Million in 1996 to 3.92 million in 2005. Significantly, the bulk of international
arrivals into India, both in 2004 and 2005, have been business travelers. Main reason
for this increase has been following fundamental factors:
•India’s strong GDP growth.
•Opening of sectors of the economy to private sector/ foreign investment.
•Strengthening of ties with the developed world.

Also, introduction of low cost airlines also contributed to the

demand. The increase in international flights, seat capacity and frequency into the
country and the decision to allow private airlines like Jet Airways and Air Sahara to
fly overseas has had a positive impact on tourist and business arrivals into India, by
way of providing additional seats to:
Key destinations.
•Development of infrastructure by the Government
•India’s emergence as an outsourcing hub.
•Success of “Incredible India” campaign and other tourism promotion measures.
•India’s growing recognition as an exciting place to visit (‘The Readers Travel Awards
2006’, conducted by Condé Nast Travelers has recently placed India at number four
among the world’s must-see countries, up from number nine in 2003) has helped
boost its image as a leisure destination.

9.2 Identifying Critical Success Factors (CSF) For the Industry

The market for the hotel industry can be divided into the following key
consumer segments based on purpose of visit:

The Business Traveler

The Business Traveler is a businessman or a corporate executive traveling
for
business purposes. This segment includes corporate, both domestic and foreign, who
110
open offices in the hotel premises during start-ups, corporate executives who make
extended stay either for long duration projects or while waiting for permanent
accommodation (primarily expatriates) and convention arrivals. While the senior
executives usually stay in 5 star hotels, the middle level executives, who are much
larger in number, stay in the budget hotels. This segment offers better realizations, as
they demand relatively smaller discounts on room rents (about 10per cent-15per cent),
use more of facilities such as PCs, fax multi-media, conference halls. Also, the Food
& Beverage (F&B) revenues are better as they usually eat in the hotel itself due to
their busy schedules.

The Leisure Traveler

The Leisure Traveler could either be a foreigner or a domestic traveler
whose Primary purpose of visit is holiday or site seeing. Among non-business foreign
tourists the primary motivation for visiting India is largely cultural attraction followed
by conferences and conventions, tourist attractions like beaches, wild life, hill resorts
etc. Usually, leisure travelers are part of a package run by a tour operator. The margins
offered by leisure travelers tend to be lower because of two reasons. Firstly, they seek
higher discounts and also provide less F&B revenues as they usually eat out. The
business offered by this segment is highly seasonal and tends to peak in the
September to March period.

Airline Cabin Crew

Airline Cabin Crew forms another important segment because of the
repetitive and guaranteed nature of the business that they provide. Usually, these are a
part of an annual contract whereby, in return for a fixed rate, a certain number of
rooms are provided on demand for cabin crews. With discount rates in the range of
40per cent and 50per cent, this represents a low-yield segment for hotels in general.

Premium and Luxury Segment

This segment comprises the high-end 5-star deluxe and 5-star hotels,
which mainly cater to the business and up market foreign leisure travelers and offer a
high quality and range of services. The segment accounted for 29per cent of the total
hotel rooms in the country in December 2005.

110
CHAPTER – 3
110
DATA ANALYSIS

Data analysis and interpretation is a very important aspect in a project report. Analysis
of data is the process of orderly research objectives. The primary data collection is in
accurate form that is not ready for analysis. The analysis is carried using statistical
tools like percentages. Percentage is a special kind of ratio. Percentage is used in
making comparison between two or more series of data. Thus the analysis is totally
based on frequency and percentage calculation. Finally meaningful information is
extracted from the analysis. The collected data is illustrated using pie

110
1. There is lot of Wastage of time in Palash Residency

Option No. of Respondents Percentage

a) Extremely Disagree 1 3
b) Agree 10 33
c) Disagree 13 39
d) Neutral 3 1
e) Extremely agree 3 1
Total 30 100

Interpretation :- 39% respondents are disagree with that there is lot of Wastage
of time in Palash Residency

110
2. Efforts

Option No. of Respondents Percentage

a) Extremely Disagree 1 3%

b) Agree 11 37%

c) Disagree 12 40%

d) Neutral 3 10%

e) Extremely agree 3 10%

Total 30 100

Interpretation :- 40% respondents are disagree with that there is no effort by

employee in Palash Residency.

110
Satisfaction
Option No. of Respondents Percentage

a) Extremely Disagree 0 0%
c) Disagree 2 7%
d) Neutral 0 0%
b) Agree 12 40%
e) Extremely agree 16 53%
Total 30 100

Interpretation :- 53% of respondents are extremely agree with that there is

satisfaction by employee services in Palash Residency.

110
Grievances Handling
Option No. of Respondents Percentage

a) Extremely Disagree 1 3%
c) Disagree 3 10%
d) Neutral 5 17%
b) Agree 7 23%
e) Extremely agree 14 47%
Total 30 100

Interpretation :- 47% of respondents are extremely agree with that there is

Grievances Handling by employee are good in Palash Residency.

110
Comfortable

Option No. of Respondents Percentage

a) Extremely Disagree 0 0%
c) Disagree 2 7%
d) Neutral 5 17%
b) Agree 6 20%
e) Extremely agree 15 50%
Total 28 100

Interpretation :- 50% of respondents are extremely agree with that there is

comfortable in Palash Residency.

110
Efficient
Option No. ofPercentage
Respondents
a) Extremely Disagree 0 0%
c) Disagree 1 3%
d) Neutral 6 20%
b) Agree 7 23%
e) Extremely agree 16 53%
Total 30 100

Interpretation :- 50% of respondents are extremely agree with that there is

Efficient in services in Palash Residency.

110
Fast payment
Option No. of Percentage
Respondents
a) Extremely Disagree 1 3%
c) Disagree 1 3%
d) Neutral 1 3%
b) Agree 9 30%
e) Extremely agree 18 60%
Total 30 100

Interpretation :- 60% of respondents are extremely agree with that there is Fast
payment services in Palash Residency.

110
Easy availability

Option No. of Percentage

Respondents
a) Extremely Disagree 1 3%
c) Disagree 2 7%
d) Neutral 0 0%
b) Agree 10 33%
e) Extremely agree 17 57%
Total 30 100

Interpretation :- 57% of respondents are extremely agree with that there is Easy
availability of services in Palash Residency.

110
Booking

Option No. of Percentage

Respondents
a) Extremely Disagree 0 0%
c) Disagree 1 3%
d) Neutral 1 3%
b) Agree 14 47%
e) Extremely agree 14 47%
Total 30 100

Interpretation :- 47% of respondents are extremely agree with that there is

booking services in Palash Residency.

110
Which types of modes of payment would you like.

Option No. of Percentage

Respondents
a) cash 19 63%
c) Cheque 2 7%
d) Credit card 6 20%
b) Debit card 3 10%
Total 30 100

Interpretation :- 63% respondents are using modes of payment cash, 7%

respondents are using modes of payment cheque, 20% respondents are using
modes of payment credit card and 10% respondents are using modes of payment
debit card.

110
Major findings

 It has been found that majority of respondent have service of dinner and
stay in hotel
 39% respondents are disagree with that there is lot of Wastage of time in
Palash Residency.
 40% respondents are disagree with that there is no effort by employee in
Palash Residency.
 53% of respondents are extremely agree with that there is satisfaction by
employee services in Palash Residency.
 47% of respondents are extremely agree with that there is Grievances
Handling by employee are good in Palash Residency.
 50% of respondents are extremely agree with that there is comfortable in
Palash Residency.
 50% of respondents are extremely agree with that there is Efficient in
services in Palash Residency.
 60% of respondents are extremely agree with that there is Fast payment
services in Palash Residency.
 57% of respondents are extremely agree with that there is Easy
availability of services in Palash Residency.
 47% of respondents are extremely agree with that there is booking
services in Palash Residency.
 63% respondents are using modes of payment cash, 7% respondents are
using modes of payment cheque, 20% respondents are using modes of
payment credit card and 10% respondents are using modes of payment
debit card.

110
CHAPTER – 4

110
SUGGESTION

 It is suggests looking into the “emic-etic dilemma”. An “Emic” approach is

based on recognition of the differences between cultures and acknowledging
the importance of each culture’s idiosyncrasies. This would constitute creating
a different survey, with different questions, a different method of measurement
and administration for each different culture.
 It is suggest that the hotel must be good since an “expert” regularly frequents
it.

 Changes in satisfaction with the meal experience may result from changes in
the perception of the actual quality of outcomes received, or from changes in
the expectations against which these outcomes are compared

110
CONCLUSION
The hotel industry in India having a tremendous opportunity in the
future because of increasing trends in the tourism industry and government promoting
the “Incredible India” campaign and other tourism promotion measures. The hotel
industry in India is mix of many brand internationally established hotels having the
scope to attract shares in the brand hotels which will help to expand the industry and
the innovations in the industry is helping the hotels to retain the customers with them.
Though the industry is having opportunities in future it is suffering with the cost of
land which is costing 50% of the total cost and the taxes are main drawbacks for the
industry. Industry is opening gates for the foreign investment which is a good sign for
the industry and industry is working toward the fulfillment of the demand and supply
gap.
The 'Customer is the king!'. And, if we believe this time tested and accepted
philosophy, then we also know as to how difficult it is to make the 'King' happy. The
newage
customer is highly demanding as far as expectations of hospitality services from
hotels. Human interaction is an important part of managing all facets hotel operations.
Each interaction between the customer and the hotel staff plays an important role in
customer’s unique experience at the hotel.
Therefore, human interaction is the key to making a customer feel like a king.
Following are the typical characteristics of a modern hotel customer:
 Young, highly qualified and globally exposed
 General knowledge and social consciousness is high
 Expectations of quality of automated service and hygiene are very high
 More and more women are also the potential customers
 Work life involves long working hours
 Customer come from diversified national and cultural backgrounds
 Modes of interaction have dramatically increased

 Voice response applications are replacing human responders

110
BIBLIOGRAPHY

 Aaker (1991) Building Strong Brands; New York: Free Press

 C.R. Kothari (1985) Methods of Data Collection: Research Methodology –

Methods & Techniques, pp 95-96.

 Chatterjee, Jauchius, Kaas and Satpathy no. 1, (2002): 'Revving up auto

branding', McKinsey Quarterly.

 David. A. Aaker, V.Kumar & George S. Day, (2001) Descriptive Research:

Marketing Research, Seventh Edition, pp 17

 Donald S. Tull & Del I. Hawkins, (2004) Sampling & Data analysis :
Marketing Research – Measurement & Method, pp 537

 Fink, Arlene (2002). How to sample in surveys, Vol. 7. Thousand Oaks, CA:
Sage Publications.

 Satish Ailawadi and Pritee Saxena, Vol.III, No.2, (2003), Branding Issues,
Building Strong Brands, The ICFAI Journal, pp 25-26

110

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