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The Hotel Industry comprises a major part of the Tourism industry. Historically viewed as an
industry providing a luxury service valuable to the economy only as a foreign exchange earner,
the industry today contributes directly to employment (directly employing around 0.15 million
people), and indirectly facilitates tourism and commerce.

Prior to the 1980s, the Indian hotel industry was a slow-growing industry, consisting primarily
of relatively static, single-hotel companies. However, the Asiad, held in New Delhi in 1982, and
the subsequent partial liberalization of the Indian economy generated tourism interest in India,
with significant benefits accruing to the hotel and tourism sector, in terms of improved demand
patterns. Growth in demand for hotels was particularly high during the early 1990s following the
initiatives taken to liberalize the Indian economy in FY1991, as per the recommendations of the
International Monetary Fund (IMF). The euphoria of the early 1990s prompted major chains,
new entrants and international chains to chalk out ambitious capacity additions, especially in the
metropolitan cities. However, most of these efforts were directed towards the business travelers
and foreign clientele.

'

' have supply of 110,000 rooms. According to the tourism ministry, 4.4 million
tourists visited India last year and at current trend, demand will soar to 10 million in 2010 - to
accommodate 350 million domestic travelers. 'Hotels in India' has a shortage of 150,000 rooms
fueling hotel room rates across India. With tremendous pull of opportunity, India is a destination
for hotel chains looking for growth. The World Travel and Tourism Council, India, data says,
  in business travel and will be among the top 5 in this decade. 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 India'
room rates are most likely to rise 25% annually and occupancy to rise by 80%, over the next two
years. 'Hotel Industry in India' is eroding its competitiveness as a cost effective destination.

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c Annual Growth Rate A

c The Travel and Hospitality industries have largely profited from the fast growing
economy of India, mainly due to the @


   in FY05 (22 % growth)
over the previous period, thus posting a CAGR of around from FY00-FY05.

c The Average Room Revenues (ARRs) in some metro hotels in India has increased by 15
% from the last year

c According to the estimates of the World Tourism Organisation, international tourist

inflow in India would be 10 million by 2020, which means the tourist influx has to grow
at a CAGR of 6.5 % for the next 14 years.

c According to Government estimates, 


 










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c A major reason for the growing demand for hotel rooms is the underlying boom in the
economy, particularly the growth in the ''O#industries. The overall growth
outlook appears buoyant and much of this growth will be driven by the BPO explosion,
IT, Telecom and energy sectors.

c The average
(





 
 in hotels in India, across all the categories,
except in the three-star category, where the ratio drops to 1.5 per room.

c As new rooms are being added, the (



)

of the hotel industry is also
increasing.

c It is further reported that jobs in accommodation and food services as a whole are
expected to 

(

between 2004 and 2014.

c India s hotel industry is increasingly being viewed as investment-worthy, both within

the country and outside, and several international chains are keen to establish or enhance
their presence here. It is anticipated that, over the next three-five years, India will emerge
as




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c There will be a
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(
in the travel Industry in India.
The industry needs manpower, which is highly qualified, has leadership qualities and a
quest to lead the Indian Hotel industry.

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 c Over the last decade and half the   
for business opportunities has
intensified and elevated room rates and occupancy levels in India. Even budget hotels are
charging USD 250 per day. The successful growth story of 'Hotel Industry in India'




+ in Asia Pacific.

c 'Hotels in India' has a 




 

fueling hotel room rates across India.
With tremendous pull of opportunity, India is a destination for hotel chains looking for
growth.
c The World Travel and Tourism Council, India, data says,   

 
and will be among the top 5 in this decade.

c Sources estimate, 



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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.

c With demand-supply disparity, Hotel India room rates are most likely to rise 25%
annually and occupancy to rise by 80%, over the next two years.

c 'Hotel Industry in India' is eroding its competitiveness as a cost effective destination.

However, the rating on the 'Indian Hotels' is bullish.

c 'India Hotel Industry' is 
, )

, currently in different stages

of planning and development and should be ready by 2012.

c MNC Hotel Industry giants are flocking India and forging Joint Ventures to earn their
share of pie in the race. Government ((

@

(
-
, nearly half of
which are in the luxury range.

c The manpower requirements of the hotel industry will increase from 7 million in 2002 to


.

c With the USD 23 billion software services sector pushing the Indian economy skywards,
more and more IT professionals are flocking to Indian metro cities. 'Hotel Industry in
India' is set to grow at 24% a year. This figure will skyrocket in 2010, when Delhi hosts
the Commonwealth Games.

c Already, more than 50 international budget hotel chains are moving into India to stake
their turf.

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cc c c
The hospitality industry is increasingly confronted with the intensification of competitiveness at
a global level, the rapid advance of technology and higher expectations form clients. Among the
most important factors of influence highlighted by research are the ones described in the
following.

c 

 
.% These are understood as superior abilities to manage resources
shared by several companies. Methodologies of developing the capacity to interact have
already been outlined, consisting of a 4 stage process. The first targets the internal
analysis of the resources and capacities of the organization. The second stage is
represented by the analysis of relations between activities. Stage three is represented by
the integration process. Stage four consists in actually developing the ability to interact
that targets the degree of cooperation and the integration process attained.

c lj
 

*ù- Transforming the hotel in a learning organization represents a
new globalizing strategy .
c 

 
ù- People represent the central point in all aspects of activity in the
hospitality industry, from creation and design to the development and delivery of
services.
c '
 




 

.ù- Technology represents an important
strategic asset in obtaining competitiveness.
c -

.% India s hotel industry is increasingly being viewed as investment-
worthy, both within the country and outside, and several international chains are keen to
establish or enhance their presence here. It is anticipated that, over the next three-five
years, India will emerge as




*


  


c Change in 



 of the people which leads to change in their behavior is also
leading to growth in hotel industry.
c Inflow of [









 has also
lead to growth in hotel industry as more investments are there in hotel sector compared to
previous era.

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+/0

 .%
CRM is a business strategy to select and manage the most valuable customer relationships. CRM
requires a customer ± centric business philosophy and culture to support effective marketing,
sales and service process. CRM applications can enable effective customer relationship
management that an enterprise has the right leadership, strategy and culture.
In hospitality, each customer relationship has value and should be managed effectively. There is
opportunity fir repurchase and recommendation from each past customer. The administration og
the information about this past guest and the effective integration of the information into
frontline guest services programs is the challenge crm implementation.

Integration of customer informationù-

The process of extracting the customer data from leagacy system and integrating the entire
database in the property that contain guest information is complex and time- consuming. Tha
data sources may include guest history, external guest profiling system, restaurant club
programs, sales and catering system information and other data.
1.c Customer profilingù- Demographic and physhographic information can be appended to a
large percentage of the customer database. This is followed by the implementation of
effective marketing programs to attract similar customers to build revenue.
2.c Direct marketingù- the utilization of customer information for direct marketing offers is
the goldmine of any CRM effort. Highly profitable offers can provide business during
slow periods. These offers can be communicated via mail or e- mail.
3.c Best customer/ extraordinary servicesù- this involved vast satisfaction analysis of the
most profitable customer combined with valid financial data about each customer- all
appended to customer database.
4.c It helps in personally recognizing the customers.
5.c Offering appropriate value and great service to encourage repeat business.
6.c Insuring that employee and guest satisfaction continues to improve.

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 7.c Beating the competition by offering a better product, competing on the service experience
rather that price alone.

8.c With the help of CRM hotel industry now able to do cross sell/ up sell products more
effectively.
9.c With the help of CRM communication between the staff members of the hotel improved.
10.cThis will help sales staff to close their deal faster.
11.cCRM will make call centres of the hotel industry more efficient.
12.cWith the help of CRM hotel industry is able to increase the customer loyalty.

+/0





 .%
1  -
 
is a unique customer relationship management system designed specifically for
the lodging industry to provide personalized guest recognition and exceptional service quality.
This is basically used to improve guest satisfaction, lower operating costs, build guest loyalty
and increase revenues.
2. 0 


.%'
+/0((

It is critical for hospitality sales and marketing professionals to maximize their returns on
investments in marketing. Experts agree targeted marketing to existing customers is the best way
to increase marketing ROI.
3. (


%(

(

(



Guest ware improvement analysis tools provides with the information to eliminate recurring
problems and keep guests comong back, so to lower operating cost and increase guest
satisfaction at the same time.
4 +

  %


 


Customer survey on restaurant or an extensive questionnaire of guests, te guest ware comment
card tracking system assists to manage customer feedback. It will improve productivity in the
follow up process and provide valuable management reports to maximize the benefits of your
surveys.

5. +

.
c This tool of hotel industry helped them in meeting customer complaints.
c This way they able to resolve their customer problems in a better way and able to create
good repo with the customers.
c With the help of call centres hotel industry directly connected to their customers to meet
their complaints.

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