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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 midmarket hotel segment will witness huge growth and expansion while the luxury
segment will continue to perform extremely well over the next few years.
List of players in the industry
Taj Group
Inter Continental
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.
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 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 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.
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.
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
Complimentary Products
Superstar
Hot
Continental
Breakfast,
Complimentary
morning
newspaper
Wake Up Service
Fitness centre
Tenis court
Hairdresser
Travel agent
Guide facilities
Banquit halls
Meeting rooms
Swimming pools
Substitutes
Youth hostels,
Paying guests
Dormitories
Resorts
Motels
Indias 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.
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)
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 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.
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
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.
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
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 citys
performance. As regards Jaipur, the recent announcement by a major IT company to set
up a base outside Jaipur, as well as the state governments initiative to promote ITrelated 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.
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.
Demand-supply gap
Government support
WEAKNESSES
The cost of land in India is high at 50% of total project cost as against 15% abroad.
High tax structure in the industry makes the industry worse off than its international.
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.
Rising income.
THREATS
Political turbulence in the area reduces tourist traffic and thus the business of the hotels
The economic conditions of a country have a direct impact on the earnings in hotel industry.
Increasing competition
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.
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.
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.
The foreign hotel chains are tied up with Indian hotels to reduce the initial cost
and using the latters brand name.
Brand loyalty of customers like TAJ, ITC, and LEELA PALACE affects the
new entrants.
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 45%.
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.
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.
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.
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
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.
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 customers 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 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.
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.
OBJECTIVES
Understanding the concepts used in human resourcing.
To understand the fundamental management concepts, various aspects of
functioning and operational management of the various departments.
To understand the attitude towards the services provided by the Hotel Industry.
To have an overview of Management And Financial System practiced at the
Hotel Indian Avenue
To analyze and study the current positioning of The Hotel Indian Avenue in the
current market and its future aspects.
Secondary Data
When an investigator uses the data that has been already collected by others, is called
Secondary Data. The secondary data could be collected from Journals, Reports, and
various publications. The advantages of the secondary data can be It is economical,
both in terms of money and time spent. I took it from website of the hotel and few
websites mentioned in bibliography.
Primary Data
Primary data includes the first hand information from the outlets. It can view as a
survey. The questionnaire was especially designed to find out services provided by
HOTEL INDIAN AVENUE and their ratings. Through this information we can get the
strengths and weaknesses of services provided by a hotel. How does it differ from
resorts and travel agencies in some way . For Data Analysis and Interpretation I
collected the data from 100 respondents and the sample technique was questionnaire.
The time span of this was of 6 weeks.
Another problem was knowledge constraint and this report was an attempt to
gather as much of relevant data as possible.
However, every effort is made to ensure that these do not in any way adversely
affect the results of the study and inject an element of objecting in the report.
COMPANY PROFILE
VISION:
Embrace talent
VALUES:
Exceed expectations
Innovations
Social responsibility
PERFORMANCE MANAGEMENT
The role of HR in the present scenario has undergone a sea change and its focus is on
evolving such functional strategies which enable successful implementation of the
major corporate strategies. In a way, HR and corporate strategies function in alignment.
Today, HR works towards facilitating and improving the performance of the employees
by building a conducive work environment and providing maximum opportunities to
the employees for participating in organizational planning and decision making
process. Today, all the major activities of HR are driven towards development of high
performance leaders and fostering employee motivation. So, it can be interpreted that
the role of HR has evolved from merely an appraiser to a facilitator and an enabler.
Performance management is the current buzzword and is the need in the current times
of cut throat competition and the organizational battle for leadership. Performance
management is a much broader and a complicated function of HR, as it encompasses
activities such as joint goal setting, continuous progress review and frequent
communication, feedback and coaching for improved performance, implementation of
employee development programmes and rewarding achievements. The process of
performance management starts with the joining of a new incumbent in a system and
ends when an employee quits the organization. Performance management can be
regarded as a systematic process by which the overall performance of an organization
can be improved by improving the performance of individuals within a team
framework. It is a means for promoting superior performance by communicating
expectations, defining roles within a required competence framework and establishing
achievable benchmarks.
Front Office: It is the most important department of the hotel. The main function of
this department is to give warm welcome to the guest . It helps to create good image in
front of the guest. This is the first department where guest comes in contact with. It
generates the maximum revenue for the hotel as it sells room to the guests. This also
includes sub departments like reservation, Bell desk, and Information desk. It also
provides some facilities like concierge service to the guest.
Food and Beverage Service: It is a
department which serves food and
beverage to the guest in a very
attractive and pleasing manner, which
creates good impression on the guest.
there are several kind of food and
beverage outlet like restaurants, Bars,
Coffee shops, take away banquets
etc.
It
is second
most
revenue producing department of the
hotel by selling different types of
food and beverage to the guest.
Housekeeping: This department is
responsible for cleaning and maintaining
hotel premises which include public
area, guest rooms, lobby, swimming pool
area etc. generally this department is not
visible to the guest. It works for guest
satisfaction through keeping the
environment
clean and hygiene.
Horticulture is one of the most important
features of housekeeping department
which deals with different types of
flower arrangement and maintaining the
garden. This department works to give pleasant look of the hotel to the guest.
Food Production: It is a department with deals with the preparation of different types
of food items. It is not a visible department to the guest because it usually works in the
back area. It makes the food more delicious and attractive by different styles of cooking
method. Different cuisine has their own kitchen and specialized chef to work on it
according to their skills. Bakery departments comes under this which include
preparation of desserts, breads etc.
In order to have the requisite respondents for the data collection, we have taken into account
just the FRONT OFFICE DEPARTMENT.
The front office is divided into following section of Hotel INDIA AVENUE :
1) Preservation:This section is never center as the department where all request for reservation are
received and processed.
2) Reception:This section as responsible for receiving the guest. It is also responsible for the
registration as guest at the time as this arrival. Mostly status insist that guest
should registered hosiery. This is the rule to protest both the hotel and the guest.
3 )
C a b b y : This section is located immediately upon the entry into the hotel and it is the important
because it is the first and the last essence contact of a guest with the hotel. It is here that
the guest is received and tubes to the reception to be registered. Handling as guest
language and the guest problems along in the section.
4) Information:a) Maintain guest alphabetical index book
b) Receive message for the guest
c) Handle guest packages and encasements
d) Handle parity
e) Provide information to the guest.
5)Front Office Cashier:This section is responsible for posting as guest charges and guest folio (Bills)
accurately and time so as the properly settle guest A/C and received payments before
departure Expresses should include room food and beverage and other sources. These
charges and recorded up to the last time as the cashier desk. This section is responsible
for exchanging foreign currency.
6)Night Auditor:The responsible as this section is to complete and order swell revenue transaction and
reconcile the revenue statement of all outlets with the F.O accounting machine with a
view to prepare a duty reporting the duty business.
7)Bell Desk:It is responsible for baggage handle t the time of guest departure or arrived or during to
stay. They are also responsible for handling guest mail message newspaper etc. They
also do miscellaneous job like recounting getting medicines or theater tickets for guest
etc.
8 ) Tel e p h o n e s : This section handles all is country and put going local calls, trunk call for both guest
and hotel management.
9 ) Tra v e l D e s k : This section arranges for a airport transport as the guest. The hires cars, coaches
organize towards precede air or rail tickets, confirm tickets etc.
2)Personal Hygiene:
This is important to F.O Personal as there are constantly expose to the hotel guest clean
appearance help to object guest image not only for themselves but as the establishment
as well.
3)Self Considerence:
- This is necessary to F.O person meet guest as different countries, status and culture.
They should be comfortable and feel at least in dealing with their people.
4)Communication Shell:
- It must be correct and clear. It is perforate that F.o no more than one language it helps
is communication with guest who do not understand or cannot speak English or local
language.
5)Quick Decision maintains ability:
- Guest after approach the F.O with problems and request. F.O staff must be able to
decide quickly a course as action that satisfactory the guest and at the same time
keeping the interest as the organization online.
T r a y
c a r d
form
USD(SGL/DBL)
$185/ $210
EXECUTIVE
BUSINESS SUITE
$250/$280
$300
GROUP Tariff
On application
May To September
30 TO 40 %
BANQUET FACILITIES
halls 2
BAR- 1
CUISINE- MULTIPLE -
As we can clearly see from the pie-chart that the Welfare Facilities availed by the
majority of the respondents was between 5 To 10. Some of the major welfare facilities
availed was Nutritious food, safe drinking water etc.
In this depiction as well it is clearly visible that respondents are sure-shot availing of
special welfare facilities as well comprising maternity leave for female employees,
employer paid uniforms and laundering etc.
On an average if we see, the time taken for sanctioning the routine welfare
facility is between 1 to 2 weeks as per the majority of respondents.
The Satisfaction level regarding the procedure for availing routine welfare
facilities is majorly satisfied when compared with the highly and partly satisfied
respondents.
In this depiction there has been a major turnaround in the satisfaction levels in
availing the SPECIAL welfare facilities because the rate of non-satisfaction
level has increased quite an extent.
The education allowance provided by the hotel has fetched 56% satisfaction
among respondents and that is in itself a commendable stuff.
Majority of the employees are highly satisfied with the medical assistance
provided by hotel India AVENUE to their employees.
It is very much evident from the diagram that welfare facility plays a major role
in motivating the employees. It accounts for 80% respondents in favor of this
argument
12. Is there any importance of UNION for the safeguard of employees interests?
As expected, the need for unions is a big YES to safeguard their interests and
there is nothing wrong with it.
CONCLUSION
As the study of the need and concern model and its further analysis
indicate the model and its further analysis indicate the concern which
was dominating in all the needs was the increase in wages so the
management should think to increase wages prior to the increase in
inflation.
All the employees are satisfied with the welfare facilities provided in
the hotel.
The hotel is quickly catching up with same star hotels with its efficient
working.
The hotel has shown its mettle over the past 1 year because of clear
customer as well as employees cognizance perspective.
RECOMMENDATON
BIBLIOGRAPHY
www.hotelindiaavenue.in
www.hrmguide.net
www.managmentscience.org
www.hr.com
ANNEXURE
1. Service on arrival and Check-in. Was it prompt and
courteous ?
a) Excellent
b) Good
c) Satisfactory
d) Below Standard
2. Your Room. Was it clean, comfortable and properly
supplied?
a) Excellent
b) Good
c) Satisfactory
d) Below Standard
3. Telephone Services. Were your messages handled efficiently?
a) Excellent
b) Good
c) Satisfactory
d) Below Standard
4. In-house services, laundry etc. Were your personal
possessions well looked after?
a) Excellent
b) Good
c) Satisfactory
d) Below Standard
5. Individual employees. How well did we respond to your
needs?
a) Excellent
b) Good
c) Satisfactory
d) Below Standard
6. Temperature, lightning, plumbing. Were you comfortable?
a) Excellent
b) Good
c) Satisfactory
d) Below Standard
7. Service at Check-out. Did it go smoothly?
a) Excellent
b) Good
c) Satisfactory
d) Below Standard
8. Hotel shuttlecabs.Was it on time? Did it run frequently
enough?
a) Excellent
b) Good
c) Satisfactory
d) Below Standard
a) Yes
b) No
If No, then please comment.
10. How did you make your reservations request?
a) Direct to hotel
b) Through a travel agent
c) Through an airline
d) Through your company
e) Through internet