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TRANSCRIPT
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Chapter I
Introduction
The first chapter deals with a brief introduction, background of the
study, research methodology and its limitation. It also gives the
sources of data objectives of the study hypothesis tested the methods
used for primary survey, the tools and techniques and different
questionnaire have been clearly mentioned. This chapter also gives
the overall presentation of the study.
The Prologue
India draws more than 2.5 million foreign and domestic tourists
annually. The primary factor that motivates majority of the foreign
tourist to visit India is country of bountiful nature, snow covered
mountains in the Himalayas, colorful deserts in Rajasthan, beautiful
beaches in Goa, Kerala and Orissa and tropical lush green forests
spread far and wide in most part of the country. Besides the nature,
the country rich cultural heritage in Maharashtra has been a
tremendous attraction to a large numbers of foreign as well as the
domestic tourists.
Success in the hotel industry increasingly demands an
understanding of many other aspects of popular culture and trends.
The term life style hotel that has now been adopted by brand name
says it all. The boutique hotels it carries even further the Idea that
hotel is about how people live, and what they want beyond life. The
personal touches of the lifestyle and boutique hotels, lodges, resorts
and other accommodations speak to the almost hyper-individuality
of today’s travelers- whether business person or tourist.
This hyper individuality is as feature of much of fashionable culture.
The hotel industry must permit itself to be directed by the same
powerful forces that have shaped and dramatically transformed
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modern society. The diversity in climate, religions, languages and
traditions has always been a matter of curiosity for the people of
other countries and other nations.
Maharashtra being one of the most glamorous states of India attracts
thousands of tourists round the year, people from all over the world
get attracted to the multi faced, and multicolored state of hilly land,
fresh greens, and the golden beaches and especially in Marathwada,
historical places like Ajanta & Ellora caves, Daulatabad fort etc. and
holy palaces too.
With strong deep history and with versatile cultural depth to
mesmerize one and all, the state of Maharashtra is favorite among
the tourists irrespective of the geographical and religious barriers. In
early days people were visiting different places, only for reasons, like
visiting to the holy places rarely in the year, foreigners they were
coming to visit & see the historical places like Ajanta and Ellora.
But now days due to effect of the globalization and establishment of
so many multinational companies in the Maharashtra state,
foreigners as well domestic tourists are frequently coming for the
business purpose and along with that they are visiting to historical
places for the enjoyment.
If we can see the scenario of 2 decade back, those were the days
when tourism industry was not in boom or we can say people were
not aware about the tourism sector at all, but now there are
tremendous changes happening in the tourism industries, and
providing luxurious services to the tourists. Travels like Mahindra
travels, Yatra travels, Raj travel, Prasanna travels, City link travels,
Kingfisher travels, Keshari Travels are the famous travels in India.
Indus travels, Skyway International are the international travels.
These travels are having string tie-ups with hotel industries, and
impact of that increases hotel tariffs.
There are several reasons for not attracting & not providing desired
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satisfaction to the tourists Vis, Downtown location, hotels operating
strategies, amenities of the hotels, shortage of skilled employees,
shortage of rooms, increasing customer’s expectations.
And some of the factors which are affecting on the service area like
maintain the quality workforce , intense competitions and image of
India, manual back-end and human resource developments and
some other problems are also, which can not seen, affecting on the
hotel business.
HISTORICAL BACKGROUND OF HOSPITALITY
Hospitality refers to the relationship process between a guest and a
host, and it also refers to the act or practice of being hospitable, that
is, the reception and entertainment of guests, visitors, or strangers,
with liberality and goodwill.
Hospitality frequently refers to the hospitality industry in which jobs
in the hotels, restaurants, casinos, catering, resorts, clubs and any
other service position that deals with tourists. Hospitality is also
known as the act of generously providing care and kindness to
whosoever’s need.
Hospitality has been formally defined as a “Pleasant reception:
kindness in welcoming guests or strangers” the dictionary’s
definition of hospitality only begins to touch upon the world’s
importance as it utilized in action to serve patrons.
The hospitality constitute creating a scenario in which customer /
guest needs are placed first and, so achieving, it is integral to achieve
an atmosphere that will serve to allow guests from a variety of
background to feel equally at relive.
Moreover, hospitality cannot be completely achieved unless each
worker is committed to the mission, which requires leadership from
the top down exhibiting commitment to the quality service;
maintenance of a good attitude and good personal appearance.
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The hospitality hub will focus primarily on facilities that provide
lodging or short term accommodation and meals, snacks and
beverages for travelers, vacationers and others.
The hospitality industry includes a wide range of establishment.
Some provide lodging only, while others offer food, beverage, laundry
services and recreational opportunities.
The History of Hotels
Evidence of hotels and the hospitality industry have been recorded
as far back as biblical times when Mary and Joseph arrived in
Bethlehem during the census.
As the Bible depicts, Mary and Joseph were refused accommodations
because there "was no room at the inn." Since the beginning of time,
people have been traveled for commerce, religion, family, health,
immigration, education and recreation. As cited by Texas Tech
University, the word "hospitality" comes from the Latin root meaning
"host" or "hospice."
The university further noted that the first hotels were nothing more
than private homes opened to the public. Most, unfortunately, had
poor reputations. Under the influence of the Roman Empire, inns
and hotels began catering to the pleasure traveler in an effort to
encourage visitors.
The first inn located in America was recorded in the year 1607 and
lead the way with many other firsts in the hospitality industry. The
first publicly held hotel (the City Hotel) opened in New York in 1792.
The first modern hotel (the Tremont) opened in Boston in 1809 and
the first business hotel (the Buffalo Statler) opened in 1908.
From there a surge of hotels flooded American and the rest of the
world with prominent names such as Radisson, Marriot and Hilton.
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Background and Overview of Hotels in India
A Building, that provides lodging, meals and other services to the
traveling public on a commercial basis. Inn have existed since
ancient times (e.g. along the Roman road system during the Roman
Empire) to serve merchants and other travelers. Medieval European
monasteries operated inns to guarantee haven for travelers in
dangerous region. The spread of travel by stagecoach in the 18th
century stimulated the development of inns, as did the industrial
revolution. The modern hotel was largely the result of railroads;
when traveling for pleasure become widely popular, large hotels were
often built near railroad station.
In 1889 the Savoy Hotel in London set a new standard, with its own
electricity and host of special services; Hotel chains became common,
making purchasing, sales, and reservation more efficient.
Categories of the Hotel’s
Hotels (as well as other forms of accommodations) are generally
segmented by the services and amenities offered. These two factors,
along with location, also have a bearing on the price range.
BUDGET HOTELS
Offer clean even if simple rooms that provides the basics of places to
sleep and shower. Usually budget hotels are designed for travelers
looking to maximize their funds and minimize expenses.
BUSINESS HOTELS
Offer a high standard by providing rooms equipped with what
business travelers would consider necessities. Usually found in
business-class hotel rooms are high speed Internet connections,
alarm clocks, comfortable beds, irons and ironing boards, coffee
makers, complimentary newspaper delivery and hairdryers.
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The facility of a business hotel would also offer an in-house
restaurant, bar, exercise room and shuttle service to nearby airports.
Limited caretaker assistance is often included as well as room
service, laundry and dry cleaning and wake-up calls.
LUXURY HOTELS
Are known for its lavish decor and extraordinary services. With
superior amenities, accommodations at luxury hotels are designed to
thoroughly pamper and impress guests. According to a Business
Week Online article, those in the luxury market are getting harder to
please stating that luxury goods and service providers can't afford to
blunder with the level of service and customer experience they
provide.
For this reason, many luxury hotels go far beyond the norm by
providing a lifestyle experience equal to or better than what guests
have become accustomed to at home.
Luxury hotels frequently offer full-service day spas, five-star
restaurants staffed by world-class chefs, ballrooms, lavish pools, golf
packages and guest services that are unsurpassed by any other class
of hotel. In addition, luxury rooms generally include those amenities
found in business class hotels plus in-room safes, goose down
comforters and pillows, marble showers and tubs, larger rooms,
separate sitting or living area and fog-free bathroom mirrors.
Rates can range from $129US (Rs.6063/-) per night to $2,000US
(Rs. 94000/-) per night. Rates vary greatly depending on location and
proximity to popular events and attractions. There are other
classifications of hotels; however, most will fall into one of these
three or a combination of these three.
With the lines between business and personal becoming more
blurred, many entrepreneurs and business executives will attend
conferences or embark on business trips with family in tow. Hotels
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are aware of this common occurrence and have become adept at
providing facilities and service both business and recreational
travelers enjoy.
CLASSIFICATION OF HOTELS
One Star Hotels
Hotels in this classification are likely to be small and independently
owned, with a family atmosphere. Services may be provided by the
owner and family on an informal basis. There may be a limited range
of facilities and meals may be fairly simple. Lunch, for example, may
not be served.
Some bedrooms may not have en suite bath/shower rooms.
Maintenance, cleanliness and comfort should, however, always be of
an acceptable standard.
Two Star Hotels
In this classification hotels will typically be small to medium sized
and offer more extensive facilities than at the one star level. Some
business hotels come into the two star classification and guests can
expect comfortable, well equipped, overnight accommodation, usually
with an en-suite bath/shower room. Reception and other staff will
aim for a more professional presentation than at the one star level,
and offer a wider range of straightforward services, including food
and drink.
Three Star Hotels
At this level, hotels are usually of a size to support higher staffing
levels, and a significantly greater quality and range of facilities than
at the lower star classifications. Reception and the other public
rooms will be more spacious and the restaurant will normally also
cater for non-residents.
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All bedrooms will have fully en suite bath and shower rooms and
offer a good standard of comfort and equipment, such as a hair
dryer, direct dial telephone, toiletries in the bathroom. Some room
service can be expected, and some provision for business travelers.
Four Star Hotels
Expectations at this level include a degree of luxury as well as
quality in the furnishings, decor and equipment, in every area of the
hotel. Bedrooms will also usually offer more space than at the lower
star levels, and well designed, coordinated furnishings and decor.
The en-suite bathrooms will have both bath and fixed shower.
There will be a high enough ratio of staff to guests to provide services
like porterage, 24-hour room service, laundry and dry-cleaning. The
restaurant will demonstrate a serious approach to its cuisine.
Five Star Hotels
Here you should find spacious and luxurious accommodation
throughout the hotel, matching the best international standards.
Interior design should impress with its quality and attention to
detail, comfort and elegance.
Furnishings should be immaculate. Services should be formal, well
supervised and flawless in attention to guests' needs, without being
intrusive.
The restaurant will demonstrate a high level of technical skill,
producing dishes to the highest international standards. Staff will be
knowledgeable, helpful, well versed in all aspects of customer care,
combining efficiency with courtesy.
PROCEDURE GRANTING THE STAR STATUS
The Hotel and Restaurant Approval and Classification Committee
(HRACC) inspect and assess establishments based on the facilities
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and services they offer. The Department of Tourism then grants star
status based on how well the establishment scores in the HRACC
report.
The General Structure of the five star hotels:
Chart No:-1.1
Department Structure in the Hotel Industry
Departments of a Full-Service Hotel (under 500 rooms) In the five
star hotel industry
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Chart No:-1.2
Hierarchy of Room Department
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Front office
Front office is the department which is noticed by the guest
whenever they enter the hotel. It is the first department guest come
into contact in the hotel; therefore it is also called the 'nerve center'
of the hotel.
Housekeeping department
House Keeping Department is responsible for the cleanliness and
upkeep of the entire hotel and public areas.
Security department:
This department works for maintaining the safety and security of the
guests, staffs and the entire hotel properties. Security department
comes into action when there is theft, fire, and any emergency cases.
The very department is also responsible for the lost and found
procedures also.
Engineering and maintenance department:
This department is responsible for the maintenance and repair of the
damaged items, for example, plumbing, repair or the a/c, furniture’s,
fixtures etc. all are maintained by maintenance department.
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Chart No 1.3:
Hierarchy of Food & Beverage Department
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Food and beverage production :
This department is responsible for the production of food and
beverage items as per the guest’s order. A kitchen are fully equipped
with skillful chefs who can prepare the recipes according the demand
of the guests. There are various ranges in the job as per the skills,
experience and knowledge.
Chart No:-1.4
Hierarchy of Human Resource Department
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Human resource department:
This department is responsible for the Hiring and firing of the Staff,
maintaining rules and regulations of the hotel, providing uniform
to the staff, providing extra hands when required, Identity cards for
the staff, Training programmes etc
Chart No:-1.5
Hierarchy of Account Department
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Account:
This department is responsible for maintaining the financial
Statements and reports of the entire hotel. It is responsible for the
calculations of the total profit or loss of the hotel.
Chart No:-1.6
Hierarchy of Marketing & Sales Department
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Significance of Tourism Industry:
♠ Tourism is one of the world's fastest growing industries at present
and holds the status of the world's no. 1 industry.
♠ The tourism industry as a whole is presently estimated to earn
over US$ 3.5 trillion worldwide.
♠ The industry creates a job every 2.4 seconds with every one of
those direct jobs creating another 11 indirect ones.
♠ Spending on tourism amounts to 5%-10% of total consumer,
spending in a year worldwide.
♠ India's share of the total market is a pittance at 0.51%. The non-
tourist countries like Malaysia and Indonesia get much more tourists
than India.
♠ However, the average duration of stay of foreign tourist in India is
one of the highest in the world. On an average, it exceeds 27 days in
the case of non-package tourists and is 14 days in the case of
package tourists.
♠ Tourism has the distinction of being the third largest export
industry after gems and jewellery and readymade garments in India.
♠ The Tourism industry's foreign exchange earnings in India are
around $3.2 billion. Tourism is the highest foreign exchange earner if
we consider the fact that net value addition in Gems and jewellery is
less than 30 % whereas, in tourism it is more than 90 %.
♠ It also has one of the best employment multipliers when compared
with any other industry in India. It generates maximum job
opportunities, as it provides direct employment to 9.1 million people
and indirect employment to another 12.4 million. But these statistics
do not appear so impressive when viewed in the global perspective
and compared with that of other countries shown in the graph below.
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♠ Tourism has been a neglected sector in India. Though it was
recognized as a priority sector in the Seventh Five Year Plan, hardly
anything was done to promote this industry.
♠ Though the government has promised to give industry status to
tourism, still, budgetary support for this department is a mere Rs.
379 crore. This is despite a total tax collection of about Rs. 2000
crore in 1996 from this sector.
♠ The tourism industry currently stands 127th on the list of
priorities of the Indian government. It is true that India has yet to
reach the prosperity level where leisure activity can be included in
the priority sector but, if solving the country's unemployment and
foreign exchange problems are on the top of the national agenda, the
potential of this industry cannot be neglected.
Tourism at a glance in India
Table No:-1.1
Foreign Tourists in India (Number) from 2001 to 2011
Year 2001 2002 2003 2004 2005 2006 2009 2011
Jan 283750 228150 274215 337345 385977 459489 532088 584765
Feb 262306 227529 262692 331697 369844 439090 498806 560658
Mar 248965 225558 218473 293185 352094 391009 444186 509926
April 185338 155378 160941 223884 248416 309208 333945 369677
May 151098 132998 141508 185502 225394 255008 267758 -
June 176716 143100 176324 223122 246970 278370 310104 -
July 224432 186432 225359 272456 307870 337332 377474 -
Aug 196517 161477 204940 253301 273856 304387 360089 -
Sept 162326 151721 191339 226773 257184 297891 325893 -
Oct 181605 212191 260569 307447 347757 391399 440715 -
Nov 209685 243566 290583 385238 423837 442413 510987 -
Dec - - 319271 417527 479411 541571 575148 -
Total 2282738 2073025 2726214 3457477 3918610 4447167 4977193 2660337
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Source: - Ministry of tourism Govt of India (2010-11)
The above table depicts the foreign tourists’ arrival in India from 2001
to 2011; it can be seen from the table that the inflow of the foreign
tourist has increased from 2001 to 2011.
The maximum numbers of tourists have arrived in the year 2009 i.e
4977193, followed by 4447167 in the year 2006.
The number of tourist in the year 2002 was low by 2073025 number of
foreign has arrived in India in this year; the reason would be the post
9/11 attack on US.
Table No:-1.2
Percentage Changes in Foreign tourists’ arrival
Month 2002/01 2003/02 2004/03 2005/04 2006/05 2007/06 2008/07
January 19.6 22 23 14.5 19 15.8 9.9
February 13.3 13.1 26.3 17.3 18.7 13.6 12.4
March 9.4 1.6 34.2 25.2 11.1 13.6 14.8
April 16.2 5 39.1 16.5 24.5 8 10.7
May 12 0.2 31.1 23.8 13.1 5 8.6
June 19 27.5 26.5 16 12.7 11.4 11.1
July 16.9 22.5 20.9 7.3 9.6 11.9 -
August 17.8 26.91 23.6 6.9 11.1 18.3 -
September 6.5 26.11 18.5 11.4 15.8 9.4 -
October 16.8 22.11 18 7 12.5 12.6 -
November 16.2 19.4 32.6 7.8 4.4 15.5 -
December - - 30.8 11 13 6.2 -
Total 9.2 13.1 26.8 13.2 13.5 11.9 11.5
Source: - Ministry of tourism Govt of India (2007-08)
The table no 1.2 shows the change in percentage in foreign tourist
arrival in India, it can be seen that in the year 2004-03 the
percentage was very high i.e 26.8 followed by 13.5 in the year 2006-
05, 13.2 and 13.1 in the year 2005-04 and 2003-02, the lowest
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percentage of change in foreign tourist arrival was 11.5 % in the year
2008-07 i.e only 11.5.
Table No:-1.3
Foreign tourists’ arrival according to country from 2005 to 2010
Arrivals from
Region/ Country2005 2006 2007 2008 2009 2010
USA 329147 348182 410803 526120 611165 696739
UK 405472 387846 430917 555907 651803 734240
Canada 88600 93598 107671 135884 157643 176567
Germany 80011 64891 76868 116679 120243 156808
France 102434 78194 97654 131824 152258 175345
Australia 52691 50743 58730 81608 96258 109867
Italy 41351 37136 46908 65561 67642 79978
Japan 80634 59709 77996 96851 103082 119292
Malaysia 57869 63748 70750 84390 96276 107286
Singapore 42824 44306 48368 60710 68666 82574
Nepal 41135 37136 42771 51534 77024 91552
Sri Lanka 112813 108008 109098 128711 136400 154813
Netherlans 42368 31669 40565 51211 52755 58611
China 13901 15422 21152 34100 44897 62330
South Korea 27150 29374 35584 47835 49895 705407
Source: - Ministry of tourism Govt of India (2005-10)
The above table shows the foreign tourist arrival according to
country in India for the period of 5 years i.e from 2005 to 2010, it
can be seen that the number of tourist arrival from all countries have
increased by the end of year 2005 to 2010.
The highest number of tourist arrival in India are from UK i.e 405472
in the year 2005 and 734240 in the year 2010 followed by USA i.e
329147 number of tourist have arrived in the year 2005 and 696739
have been arrived in the year 2010 there are very few number of
tourist arrived from the countries like Italy and Netherlands,
government of India should concentrate on more marketing of tourist
place in these countries.
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HOTEL INDUSTRY IN INDIA
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 Indian hotel industry.
In recent years government has taken several steps to boost travel &
tourism which have benefited hotel industry in India.
These include the abolishment of the inland air travel tax of 15%;
reduction in excise duty on aviation turbine fuel to 8%; and removal
of a number of restrictions on outbound chartered flights, including
those relating to frequency and size of aircraft.
The government's recent decision to treat convention centers as part
of core infrastructure, allowing the government to provide critical
funding for the large capital investment that may be required has
also fuelled the demand for hotel rooms.
The opening up of the aviation industry in India has exciting
opportunities for hotel industry as it relies on airlines to transport
80% of international arrivals. The government's decision to
substantially upgrade 28 regional airports in smaller towns and
privatization & expansion of Delhi and Mumbai airport w
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ill improve the business prospects of hotel industry in India.
Substantial investments in tourism infrastructure are essential for
Indian hotel industry to achieve its potential.
The upgrading of national highways connecting various parts of India
has opened new avenues for the development of budget hotels in
India. Taking advantage of this opportunity Tata group and another
hotel chain called 'Homotel' have entered this business segment.
Over the last decade and half the mad rush to India 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' seconds only
to China in Asia Pacific.
‘Hotels in India' has 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, India ranks
18th in business travel and will be among the top 5 in this decade.
Sources estimate, 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 India' room rates are most likely to rise 25% annually and
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occupancy to rise by 80%, over the next two years. 'Hotel Industry in
India' is eroding its competitiveness as a cost effective destination.
However, the rating on the 'Indian Hotels' is bullish. 'India Hotel
Industry' is adding about 60,000 quality rooms, currently in different
stages of planning and development and should be ready by 2012.
MNC Hotel Industry giants are flocking India and forging Joint
Ventures to earn their share of pie in the race.
Government has approved 300 hotel projects, nearly half of which
are in the luxury range. Sources said, the manpower requirements of
the hotel industry will increase from 7 million in 2002 to 15 million
by 2010.
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 15% a
year.
This figure will skyrocket in 2010, when Delhi hosts the
Commonwealth Games. Already, more than 50 international budget
hotel chains are moving into India to stake their turf. Therefore, with
opportunities galore the future 'Scenario of Indian Hotel Industry'
looks rosy.
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Table No. 1.4
Hotel and restaurant approval and classification committee:
quality assessment
CriteriaMax
MarksArea
Marks
Granted
Exterior &
Ground8
Approach 2
Landscaping 2
Exterior Lighting 2
Parking 2
Guest Room 10
Furniture 2
Furnishing 2
Decor 2
Room Facilities and
amenities2
Linen 2
Bathroom 8
Facilities 2
Fittings 2
Linen 2
Toiletries 2
Public areas 8
Furniture 2
Furnishing 2
Decor 2
Restrooms 2
Food & Beverage 8
Choice of the cousin &
Manu 3
Decor 2
Food Quality 3
Kitchen 8
Equipments 3
State of repair 2
Food Storage 3
Cleanliness 8 Overall Impression 8
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Hygiene 8
Pot & dish washing 2
Drinking water 2
Staff facilities 1
Pest control 2
Garbage disposal 1
Safety &
Security8
Fire fighting equipments 2
Signage 2
Awareness of procedure 2
Public area & room Security 2
Communication 6
Phone service 2
E-mail access 2
Internet access 1
PC & other Equipments 1
Guest Services 5 Overall Impression 5
Eco-friendly
practices5
Waste management,
recycling, no plastic 1
Water conservation and
harvesting 1
Pollution control, air, water,
sound, light 2
Alternative energy usage 1
Facilities for the
disabled5
At least one room for
disabled person 1
Public toilet in lobby 1
Telephone in public place 1
Ramp 1
Facilities for visually
handicapped 1
Staff Quality 5 Overall Impression 5
Total 100
Source: Indian Hospitality: the industry, regulation & Incentives
– Vijay Goel and Himanshu Pimplekhute.
90% = five-star deluxe;
80% = five star;
75% = four star;
65% = three star;
55% = two star; and
50% = 0ne star.
Classification is valid for five years from the date of issue or, in the
case of reclassification, from the date of expiry of the last
classification. The hotel is expected to maintain the required
standards at all times.
The HRACC may inspect a hotel at any time without prior notice, and
may request that its members be accommodated overnight to inspect
the level of services. Based on an inspection report, the
establishment may be downgraded instantly. Upgrades are allowed
on a fresh application for a stated category.
REGULATIONS FOR FIVE STAR HOTELS
The raft of legislation governing the hospitality industry can be
divided into three sectors.
The first governs the construction and commissioning of hotels,
restaurants, guest houses and other establishments, and includes
the Foreign Exchange Management Act, the industrial licensing
policy, the Transfer of Property Act, and various development control
orders issued by central and state governments and local municipal
councils.
The second governs the operation, maintenance and management of
establishments, and the health and safety of occupants.
This legislation includes the Indian Contract Act, health and safety
laws, insurance laws (notably public liability insurance), and fire
safety and hygiene regulations. Establishments must obtain various
licenses, such as a liquor license, dance license, lodging house
license, eating house license, police permissions, a license under the
Shop and Establishment Act, or a license under the Food and Drug
Administration Act, all of which are granted on an annual basis.
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If an establishment fails to meet the requisite criteria the license is
not renewed, effectively closing down the business.
The third set of rules governs taxation, employment and other
contractual relationships. This includes laws on income tax, service
tax, expenditure tax, excise duty, luxury tax, entertainment/
amusement tax, as well as laws on pension, gratuity and provident
funds, and other employment laws.
Chart No: - 1.7
Source of Revenue from 2006-07 to 2010/11
Source: - Indian Hotel Industry Survey 2010-2011 (FH & RA
India)
Chart No:-1.7 Highlights the trends for sources of revenue for hotels
over the last five years. As evident from the above chart that F&B has
been fairly steady with respect to its overall contribution to hotel
revenues. F&B revenues (including banquets) in India continue to
support top lines since they are largely independent of factors that
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affect room demand and more driven by the local market. However,
going forward we expect F&B revenue contributions to the overall
revenue pie of a hotel to come under pressure in the medium to long
term. Several branded budget hotels that are estimated to enter the
market over the next few years, are expected to include minimal F&B
facilities and in some cases lease out the F&B outlet of the hotel to a
third-party vendor. Additionally, the increasing number of stand-
alone dining options across several cities, which include both fine-
dining and casual-dining options, is also expected to affect the
number of locals visiting hotel restaurants.
Chart No:- 1.8
Revenue and Net Income 2006-07 to 2010-11
Source: - Indian Hotel Industry Survey 2010-2011 (FH & RA India)
Chart No:- 1.8 Illustrates the PAR trends in revenue and net income
over the past five years. While revenue increased by approximately
13.0%, net income showed a decline of 4.0% as a percentage of
revenue over the previous year. This could be attributed to a POR
increase in departmental and operating expenses over last year; both
42
of which grew by 2.8% and 10.5% respectively. The growing inflation
in 2010/11 resulted in POR expenses for the rooms division and
F&B to grow by 4.0% and 1.0% respectively. Additionally, POR
expenses pertaining to administrative and general (A&G) and
property operations and maintenance also saw a 16.0% and 15.0%
rise respectively over last year.
Chart No:- 1.9
Occupancy and Average Rate 2006/07 to 2010/11
Source: - Indian Hotel Industry Survey 2010-2011 (FH & RA India)
Chart No:- 1.3 Illustrates the earlier mentioned trend of the year
2010/11 being one of consolidation wherein all- India occupancies
grew by approximately 4% over the previous year and average rates
grew by approximately 10%.
The current scenario:
• Existing hotel rooms in India: 202,963, source FHRAI
43
• Revenue of the Indian hotel industry FY 2007-08: INR 38,558
crore
• 30% of this revenue i.e. INR 11,567.4 crore went back into the
market in FY 2008-09 as operating expenses
Table: 1.5
Number of hotels and restaurants in India
Sr. No Hotel category No. of
Hotels
No. of
employees
No. of
Rooms
1 5 star deluxe/5 star 297 17820 43, 965
2 4 Star 134 11550 20, 770
3 3 Star 505 6930 30,100
4 2 Star 495 5280 22,950
5 1 Star 260 4125 10,900
6 Heritage 70 6600 4,200
7 Uncategorized 7,078 3135 -
Total 8,839 55440 1,32,885
Restaurants 12,750 7590
Source: Global hospitality Services. (2011)
It is seen from the table no 1.5 that there are 297 5 stars hotels with
17820 employees and 43,965 rooms, the number of 3 stars hotels
are 505 with 6930 number of employees and 30,100 numbers of
rooms in these hotels.
Overall it can be seen from the above table that there are 8,707
number of hotels and 55440 number of employees with over
1,32,885 number of rooms in India at the end of the year 2011.
44
Table NO:-1.6
City wise classification of five star Hotels in India (2011).
Sr. No City Total No. of
Hotels
States
1 Bengaluru 10
Karnataka
15
2 Mysoor 1
3 Kabini 1
4 Manglour 1
5 Coorg 2
6 Goa 23 Goa 23
7 Jaipur 02
Rajasthan
21
8 Udaypur 06
9 Jodhpur 05
10 Jaisalmer 01
11 MauntAbu 01
12 Mysore 4
13 Pali 2
14 Mumbai 29
Maharashtra
56
15 Shirdi 02
16 Lonavala 03
17 Pune 12
18 Aurangabad 03
19 Nagpur 02
20 Nasik 04 Maharashtra
0321 Khandala 01
22 Mahabaleshwar 02
23 Ratnagiri 01
24 Manali 03 Himachal
Pradesh
9
25 Chail 01
26 Simala 01
27 Chamba 01
28 Darjiling 01
45
29 Parwanoo 02
30 Khajurao 04Madhya
Pradesh
9
31 Bhandhavgarh 01
32 Gwalier 02
33 Kanha 01
34 Pench tiger 01
35 Kolkatta 09 West Bengal
1036 Raichak 01
37 Alibagh 01 Konkan
238 Ratnagiri 01
39 Ludhiyana 02Panjab
7
40 Amritsar 01
41 Chandigarh 02
42 Dalhouzi 01
43 Phagwara 01
44 Nainital 01 Uttarakhand
245 Almora 01
46 Auli 01
Uttarakhand
10
47 Haridwar 01
48 Khimsar 01
49 Nanital 02
50 Rishikesh 01
51 Simla 04
52 Guhahati 01 Assam
253 Guwahati 01
54 Ooty 02
Tamilnadu
28
55 Kodaikanal 01
56 Madurai 05
57 Coimbatore 02
58 Chennai 13
59 Coonoor 01
60 Mahabalipuram 01
46
61 Mamallapuram 01
62 Pondicherry 02
63 Bhuveneshwar 05 Orissa
10
64 Puri 01
65 Bhuvaneshwar 04
66 Cochi 09 Madras
1367 Corbet 04
68 Faridabad 01 Hariyana 1
69 Gangatok 01 Sikkim 1
70 Jamshedpur 01 Jharkand 1
71 Patna 01Bihar 2
72 Solon 01
73 Srinagar 01 Jammu 1
74 Surat 01Gujrat
8
75 Vadodhara 01
76 Baroda 01
77 Surat 01
78 Ahmedabad 04
79 Thekkasdy 03 Kerala
16
80 Varkala 01
81 Munar 01
82 Kovalam 02
83 Kumarakom 04
Uttar Pradesh
43
84 Munar 01
85 Trivanthpuram 03
86 Kumarkom 01
87 Varanashi 06
88 Noida 02Uttar Pradesh
1489 Mussoorie 01
100 Gudgaon 11
101 Allahabad 01 Uttar Pradesh
3102 Luknow 03
47
103 Agra 0524
104 New Delhi 31
105 Vishakhapattanam 01Andhra
Pradesh
10
106 Vijaywada 01
107 Hyderabad 06
108 Vishakhapattanam 02
Total 297
Source: - Indian Hotel Industry Survey 2010-2011 (FH & RA
India)
It is evident from the table no 1.6 that Uttar paradesh has the
maxium number of five stars hotels i.e 60, followed by maharashtra
state 59, Rajasthan 21, Goa 23, Andhra paradesh 10 and Karnataka
15.
The state like goa and rajasthan which attract number of foreign
and domestic tourist should increase the number of five star hotels
in there state as compared to other state in India, in maharashtra
there are few cities like Mumbai and pune which have maxium
number of five star hotels.
What the future holds:
• Despite the global recession, inflation, terrorism and other
factors, the overall outlook for the Indian hospitality market is
optimistic and will remain so says HVS
• India remains the second fastest growing economy in the world
and the economic growth of the country is at 7.1% of the GDP
as declared by Mr. Pranab Mukherjee, Finance Minister, India.
• The Tourism Ministry, Government of India, has set a target of
10 million tourists to India by 2010
• The WTO (World Travel Organization) predicts that India will
receive 25 million tourists by year 2015
48
Facts and Figures of Indian Hospitality industry:
Foreign Tourist Arrivals (FTAs) to India increased from 5.17 million
in FY09 to 5.78 million in FY10, thereby resulting in a increase of
11.8% YoY. It was better than UNWTO’s projected growth rate of 5%
to 6% for the world in 2010. The share of India in international
tourist arrivals in 2010 was 0.61%, which is 0.02% improvement
over 2009. India’s rank improved to 40th in 2010, from 41st in 2009.
The Tourism and the Hospitality sector generated a total of US$
2,468.39 billion (INR 1,094,48.4 billion) in Foreign Direct Investment
(FDI) during April 2000-April 2011, according to the Department of
Industrial Policy and Promotion (DIPP).
The Indian Hospitality industry contributes around 2.2 per cent of
India’s GDP. The industry is expected to reach INR 230 billion (US$
5.2 billion*) by 2015, growing at a robust CAGR of 12.2 per cent.
India will be investing around INR 448 billion (US$ 10.1 billion*) in
the hospitality industry in the next five years, according to a report
‘The Indian Hotel Industry Report - 2011 Edition’ by CYGNUS
Business Consulting & Research Firm.
In the next two years, a total investment of US$ 12.2 billion (INR
545.2 billion*) is expected that will add over 20 new international
brands in the hospitality sector. India's hospitality sector is expected
to see an estimated investment of US$11.41 billion in the next two
years, and around 40 international hotel brands making their
presence in the country by 2011, according to a report by Ma Foi
Management Consultants.
Moreover, the sector is expected to provide over 400,000 jobs.
In India, the industry supports 48 million jobs, directly or indirectly
or 8.27 per cent of total employment and accounts for 5.83 percent
of the GDP, according to Department of Tourism estimates.
49
According to an HVS International report average employee to room
ratio is 1:8 in Indian hotels across all markets and drops to 1:5 for
three star category of hotels. The report also states that the hotel
sector would need a fresh workforce of atleast 94,000 by 2010-11.
India currently has over 200,000 hotel rooms spread across hotel
categories and guest-houses and is still facing a shortfall of over
100,000 rooms (source: FHRAI) The country is witnessing an
unprecedented growth in hotel constructions and will be adding
almost 114,000 hotel guest rooms to its inventory over the next five
years.
In the FHRAI’s memorandum presented to the government recently,
it is said that atleast 1,50,000 additional rooms are required to meet
the target of 5 million foreign tourist arrivals. This entails an
investment to the tune of over Rs.15,000 crore. Currently there are
1,05,000 hotel rooms in the three to five-star category in India. The
annual growth rate of hotel rooms in India is 6%. Nearly 11 per cent
of the hotel demand in the country is from long stay guests.
To set up a 5-star deluxe hotel with 250-300 rooms will cost
approximately Rs.300 crore, excluding the land cost. As per
estimates by hospitality consultancy HVS International, around 150
hotel projects are in the works across the country, which are likely to
add around 53,000 rooms over the next five years.
There are about 1,285 approved budget hotels across the country
with about 51,000 rooms apart from guesthouses, dharamshalas
and devasthans in the unapproved sector. The footprints of the IT
and ITES in Tier 2 cities like Indore, Jaipur, Agra, et al, have played
a role in driving the demand for budget hotels in these cities.
Average Room Rate (ARR) of hotels in India is increasing at the rate
of over 20%- almost equal to that of hotels in developed countries
such as Europe and the US. The growth in ARRs is a direct fallout of
50
the shortage of five-star accomodation in India and high demand
generated by the booming economy. This shortage has stimulated
investments in the hotel industry. Most of the five-sar hotels are
witnessing an average room occupancy rate of over 80%.
For every room constructed, 3-5 jobs are created. The World Travel
and Tourism Council has estimated that by 2010, tourism can
support 25 million jobs ( 1 in every 15 ) in India through 8% annual
growth.
For every rupee that goes into building a hotel, three more are spent
on furnishing it. More than 27000 items go into a hotel including
building material, chandeliers, glassware, furnishings, energy saving
devices etc., and at present 90% of hotel accessories are indigenously
produced in India. So the domestic accessories sector stands a good
chance in the near future. The average duration of stay of a foreign
tourist in India is one of the highest in the world. On an average, it
exceeds 27 days in the case of non-package tourist & is 14 days in
the case of package tourist.
Wedding tourism is growing almost 100% on a year-on-year basis.
Generally, the ratio of foreigners to Indians in an NRI wedding is 7:3.
On an average, an NRI wedding organised in India costs Rs.50 lakh.
On an average, 50-150 rooms are booked in a star category hotel.
Cruise shipping is growing globally at the rate of 12-15% annually.
In India the cruise market is in excess of 1,25,000 guests annually
and will grow at over 10% annually.
22 Institutes of Hotel Management being operated as Centres of
Excellence for providing hospitality manpower. The government
plans to set up four Indian Institutes of Hotel Management in
Uttaranchal, Jharkhand, Chattisgarh and Haryana. To provide
training in the area of tourism, the tourism ministry will also start
400 training programmes. Estimates indicate a need for about
51
15,000 more trained persons in the star category hotels, which
includes about 2,700 managers, 2,500 supervisors and about 1,000
staff.
Online travel industry is growing at a CAGR of 125%. Generating
revenues of around $300-500 million, the size of this industry is
around 2% of the entire travel industry, which is estimated to be $42
billion. Growing at the current rate the online travel industry in India
is expected to become a $2 billion industry by 2008.
International Recognition: India's booming tourism sector has not
only witnessed international investments but also achieved
international accolades with its increasing appeal as the leading
global tourist destination. The government has been instrumental in
making tourism a priority sector. Its efforts have borne fruits with a
series of international recognition and awards.
India has been elected to head the UN World Tourism Organisation
(UNWTO), the highest policy making world tourism body represented
by 150 countries. The world's leading travel and tourism journal,
Conde Nast Traveller, has ranked India as the 'numero uno' travel
destination in the world.
India was adjudged Asia's leading destination at the regional World
Travel Awards (WTA). India's Taj Mahal continues to figure in the
Seven Wonders of the World. Bangalore-based Leela Palace
Kempinski was voted the favourite business hotel in the world in a
Readers' Choice Awards by Conde Nast Traveller in 2007.
India bagged the World's leading Destination Marketing Award for
the Incredible India campaign.
Government Initiatives: To unlock the huge potential in this sector,
the government has taken various initiatives for the development of
this sector. Launch of Incredible India campaign to promote tourism
52
both in domestic and international markets. Guidelines issued for
classification of Apartment Hotels / Timeshare Resorts / Guest
Houses and Bed & Breakfast establishments. Railways have planned
to set up 100 budget hotels at various stations along with private
hospitality players.
Recognition of spare rooms available with various house owners by
classifying these facilities as "Incredible India Bed and Breakfast
Establishments"', under 'Gold' or 'Silver' category.
Other Initiatives by the Ministry of Tourism:- Paradigm shift towards
Rural Tourism / Agri Tourism, Eco-Tourism; Medical Tourism
launched as a new product. The Government has launched a
Scheme of ‘Visa on Arrival’ (VoA) from January 2010 for citizens of
five countries, viz. Finland, Japan, Luxembourg, New Zealand and
Singapore, visiting India for tourism purposes.
The Government has now extended this Scheme for the citizens of six
more countries, namely Cambodia, Indonesia, Vietnam, Philippines,
Laos and Myanmar from January 2011. During the period January-
June 2011, a cumulative figure of 5774 VoAs were issued, with a
total of 865 & 770 VoAs issued in the months of May & June
respectively.
As per the press release by Press Information Bureau (PIB) dated
November 15, 2010, the Union Ministry of Tourism has included
Medical Tourism under the Marketing Development Assistance
(MDA) Scheme. The Ministry of Tourism has sanctioned US$ 27,742
as MDA to 10 Medical Tourism Service Providers during current year.
As per a market research report 'Booming Medical Tourism in India'
by RNCOS, India's share in the global medical tourism industry will
reach around 3 per cent by the end of 2013. Moreover, medical
tourism is expected to generate revenue worth US$ 3 billion by 2013,
growing at a CAGR of around 26 per cent during 2011-2013. The
53
number of medical tourists is anticipated to grow at a CAGR of over
19 per cent during the forecast period to reach 1.3 million by 2013.
Domestic medical tourism in the country has also seen growth in the
recent years. As per the report 'Domestic Tourism in India, 2008-09'
released by the National Sample Survey Office (NSSO), trips for
'health and medical' purposes formed 7 per cent of overnight trips in
the rural population and about 3.5 per cent in the urban population.
'Health and medical' purposes accounted for 17 per cent of same-day
trips in rural India and 8 per cent in urban India. Expenditure on
medical trips accounted for 30 per cent of all overnight trip
expenditure for rural India and 15 per cent for urban According to a
report by FICCI and Ernst & Young, medical tourism industry,
currently pegged at $450m, has the potential to grow into a $2.2bn
(Rs.10,000 crore) industry by 2012.
According to a study by McKinsey and the Confederation of Indian
Industry (CII), medical tourism in India could become a US$ 2 billion
industry by 2012 (from US$ 350 million in 2006). An estimated 1.75
lakh medical tourists visited India in 2005 for cardiac care, cosmetic
surgery, joint replacements and dentistry, about 30% more than
2004. Inbound medical tourism is expected to contribute about 15%
of corporate hospitals total earnings by 2009.
Another initiative in the pipeline is industry body CII’s partnership
with 29 hospitals across 16 states to work out a price band for
speciality services in cardiology, orthopaedics, oncology and
minimally invasive surgery. The healthcare industry is working
closely with the tourism ministry, which will incorporate these
packages under its ‘Incredible India’ campaign tp promote medical
tourism in overseas markets. Currently 5 hospitals in the country
have got National Accreditation Board for Hospitals and Healthcare
Providers (NABH) accreditation. 15 more hospitals are expected to be
accredited in one year. 32 hospitals have applied for the
54
accreditation with the NABH and many are expected to follow.
International Society for Quality in Healthcare (ISQua) - an
international body that certifies quality of healthcare delivery,
recognises the NABH accreditation is of the highest global standards.
A new category of visa, "Medical Visa" ('M'-Visa), has been introduced
which can be given to foreign tourists coming into India for medical
tourism.
Eco-tourism - The government is considering various fiscal and
policy measures to promote ecological and adventure tourism in the
country including formulating uniform ecological guidelines to
conserve nature and waiver of service tax charged on adventure
tours. Ministry of Tourism has tied up with United Nations
Development Programme (UNDP) to promote rural tourism. 15 key
tourist destinations/circuits being developed to world class
standards and identified 50 villages for exposition of handicrafts and
handloom.
A maximum amount of Rs.50 lakh is sanctioned for each rural
tourism project under the Rural Tourism Infrastructure Development
scheme for development of tourism related infrastructure. The
Ministry of Tourism has launched a scheme for development of
nationally and internationally important destinations and circuits
through Mega Projects. As on 4.2.2011, 38 mega projects have been
identified, out of which 26 projects have already been sanctioned.
The United Nations Educational Social and Cultural Organization
have declared 16 centrally protected monuments : Ajanta, Ellora,
Elephanta Caves, Agra Fort, Taj Mahal, Fatehpur Sikri, the Sun
Temple at Konark, the Churches and Convents of Goa, Khajuraho,
the Buddhist monuments of Sanchi, Humayun's Tomb, Qutab
Minar, Hampi monuments, Pattadakal monuments, Brihadisvara
temple and the Mahabalipuram monuments as world heritage sites.
The Ministry of Tourism has sanctioned 781 projects in 34 States /
55
Union Territories (UTs) in the country amounting to US$ 511.82
million during the last three years up to June 2010, as per a press
release dated October 18, 2010.
During the 11th Five Year Plan, (as on 31.12.2010) Ministry of
Tourism has sanctioned, an amount of Rs.3112.71 crore for 991
tourism infrastructure projects, including Rural Tourism and Human
Resource Development projects. 924 Infrastructure projects worth
Rs.1440.86 crore sanctioned during the 10th Plan. The government
has already okayed plans to substantially upgrade 28 regional
airports in smaller towns.
The upgradation of national highways connecting various parts of
India has opened up the way for the development of budget hotels in
India. Focus on Buddist Circuit through infrastructure upgradtion of
Buddist Circuits and "Walk with the Buddha" Campaign.
The Tourism Ministry has identified 62 centres of Buddhist interest
for development. Tourism revival in J&K through a special tourism
package. Focus on North East as India's tourism gateway to the
East.
Tourism ministry has proposed to declare a conditional 10-year tax
holiday for all tourism projects in the country. Companies would
enjoy full tax exemption up to 50% of the profits, but to enjoy tax
benefits for balance amount they would be required to re-invest that
part of the profits in tourism projects. According to the Consolidated
FDI Policy, released by DIPP, Ministry of Commerce and Industry,
Government of India, the government has allowed 100 per cent
foreign investment under the automatic route in the hotel and
tourism related industry. And with the relaxation of FDI restrictions
on the real estate sector the hospitality industry has registered an
increase in investments.
56
Projected investments years 2009-015
• Rooms being built across hotel categories: 114,000., source
HVS
• Investment in rupees: INR 40,463.10 crores.
The growth story of India predict well for the Indian hospitality
sector. The sector is witnessing an all time high tourist arrival from
across the world. What is more encouraging for the industry is spurt
in foreign visitors who have been frequently coming to India for
business and leisure travel. In 2006, as many as 4.5 million tourists
gather Indian hotels from abroad. It’s a historic high. In 2003-04,
this number was around 2.93 million.
That means a growth of more than 53 per cent in three years. The
occupancy rates in Indian hotels fly between 70-80 per cent. Major
cities of the country have been posting record growth in the past
three years. On an average, the occupancy rate on all India basis
increase from 54.8 to 63.6 per cent.
The occupancy rates in Mumbai and Delhi hotels went up from 62.6
and 58.3 per cent of 2002-03 to 74.9 and 76.6 per cent, respectively.
Thus, there exists a considerable room for growth in the industry
while the sector goes organized.
Meanwhile, the industry is undergoing phases of consolidation as it
continues growing at a considerable pace. Established players are
strengthening their roots while foreign majors are also foraying
aggressively into the sector.
Major International Tie-Ups
Most big players in the country, with the exception of IHCL and EIH,
have entered into marketing collaborations with major international
hotel chains. For example, ITC has a tie-up with Sheraton. Leela-
Kempinski and AHL-Hyatt Regency are the other well-established
57
collaborations, in the Indian hotel landscape. BHL, also, has a tie-up
with the Inter-Continental Hotels Corporation
Foreign Players in the sector
The Indian government has already allowed 100 per cent Foreign
Direct Investment (FDI) in the hotel sector. With a view to cash in the
opportunities in the segment of luxury hotels in India, a number of
foreign hotel majors have set themselves up. Besides, Marriott
International, international hotel groups like Golden Tulip, Dawney
Day, Mandarin Oriental, Whitbread, Jumeirah and Istithmar have
plans to launch hotels in India.
US-based Best Western International has plans to establish 100
hotels across India through a master license agreement with Cabana
Hotel Management of India. The company will inject USD 1.2 billion
in various phases.Warburg Pincus recently picked up 27 per cent
stake in Delhi-based Lemon Tree Hotels, at a staggering cost of Rs
280 crore.
Le Meridien group that runs three five-star hotels at Delhi, Bangalore
and Pune has also laid ambitious plans to set up 17 hotels in the
country. The InterContinental Hotel Group has plans for 20
properties under its brands-InterContinental, Holiday Inn and
Crowne Plaza. The company also set up its USD 1-million corporate
offices at Gurgaon to speed up its hotel projects in India.
Indian Hotel Industry - A Sneak Peak
The Tata owned Indian Hotels Company Limited (IHCL), which
operates under the brand name of Taj, is the largest chain of hotels
in the country. The group runs 48 hotels at 34 different locations of
South Asia. The second largest hotel chain of India is the East India
Hotels (EIH), promoted by prestigious Oberoi Group. Other top notch
hotels include the ITC Hotels (ITCH) of the ITC Group, the Asian
58
Hotels Limited (AHL), Bharat Hotels Limited (BHL), Oriental Hotels
and Hotel Leela Venture (HLV). The AHL owns the Hyatt Regency
Hotel in New Delhi. Bharat Hotels Limited (BHL) has a hotel in New
Delhi and another in Srinagar.
Revenues of Hotel and Restaurant:
• (H&R) industry in India during the financial year 2006-07 was
INR604.32 billion , a growth of 21.27% over the year 2005-
2006, primarily driven by foreign tourist arrivals ,which
increased by 14.17%. Currently there are some 1,980 hotels
approved and classified by the Ministry of Tourism,
Government of India, with a total capacity of about 110,000
hotel rooms.
• The hospitality industry is poised to grow at a faster rate and
reach INR826.76 billion by 2010. It is estimated that over the
next two years 70,000-80,000 rooms will be added across
different categories throughout the country.
• In the Indian scenario, the current trends in the Hotel industry
(increase in foreign tourist arrivals, MNC's foraying into India,
demand supply mismatch getting closer, rise in Occupancy
rates and RevPAR and strong recovery of the Indian
economy),its structure (composition of hotels), key consumer
segments (business traveler, leisure traveler, & airline cabin
crew) and value chain.
• As a part of the derisking model the companies in the Indian
hotel industry are also moving up the value chain to
management contracts and co-branding.
Innovations in the Indian Hospitality Industry
Innovations in the Indian hospitality sector can be analysed on many
different levels. This analysis makes the attempt to give a broad
overview on innovations taking place in the industry according to
various categories of hotels as well as relevant functions, concluding
59
with a brief outlook on future directions these innovations might
take. India holds a special place in the international world of
hospitality. Culturally the country might very well be the most
diverse place in the world. It is a vivid kaleidoscope of landscapes,
magnificent historical sites and royal cities, misty mountain retreats,
colourful people, rich cultures, and festivities. Luxurious and
destitute, hot and cold, chaotic and tranquil, ancient and modern -
India's extremes rarely fail to leave a lasting impression.
Hospitality is a long running tradition in India. From the majestic
Himalayas and the stark deserts of Rajasthan, over beautiful
beaches and lush tropical forests, to idyllic villages and bustling
cities, India offers unique opportunities for every individual
preference. However, until fairly recently this was hardly evident
when looking at India's hospitality industry.
By now, accommodation options throughout India have become
extremely diverse, from cosy homestays and tribal huts to stunning
heritage mansions and maharaja palaces. From Kashmir to
Kanyakumari, from Gujarat to Assam, there are different cultures,
languages, life styles, and cuisines. This variety is increasingly
reflected by the many forms of accommodation available in India,
ranging from the simplicity of local guest houses and government
bungalows to the opulent luxury of royal palaces and five star deluxe
hotel suites.
From beach shags along Goa's soothing beaches to British colonial
mansions in the many scenic hill stations, the hospitality industry in
India sells "great experiences". As the experiences sought by
travellers around the world diversify, the global hospitality industry
is adjusting accordingly in order to satisfy these complex demands.
India is no exception here - quite the contrary. Coming from a rather
old-fashioned understanding of hospitality services, India is rapidly
60
catching up and turning into an innovation leader on several key
fronts.
Hospitality and Indian Economy
The contribution of the entire travel and tourism sector in India to
Gross Domestic Product is estimated to rise from 8.6% (USD 117.9
billion) in 2010 to 9.0% (USD 330.1 billion) by 2020. Between 2010
and 2019 the demand for travel and tourism in India is expected to
grow annually by 8.2%, which will place India at the third position in
the world. Travel and tourism in India also accounts for 49,086,000
jobs in 2010 (about 10% of total employment) and is expected to rise
to 58,141,000 jobs (10.4% of total employment) by 2020.
Within the travel and tourism sector, the Indian hospitality industry
is one of the fastest growing and most important segments, revenue-
wise as well as employment-wise. According to an estimate of the
Economic Survey of India and Technopak, the Indian hotel industry
accounts for USD 17 billion, 70% (USD 11.85 billion) of which take
their origin from the unorganised sector and the remaining 30%
(USD 5.08 billion) from the organised sector.
In 2000, India hosted only 2.6 million international visitors. By 2009,
the figure had already increased to 5.13 million arrivals. Compared
to other tourism markets in nearby Asian countries, this is still a
limited success, but one with the potential to develop into a
tremendous success story.
Innovation
Much hope for the Indian economy lies in harnessing innovations in
the hospitality industry. Not only has the Indian hospitality industry
an enormous growth potential, the industry itself reinforces the
diffusion of innovations by attracting foreigners, facilitating the
movement of people, and so on. The hospitality business requires
entrepreneurs to continuously come up with new services, new ways
61
to present existing services, new ways of enhancing the experiences
of their increasingly demanding clientele, and new processes to
economise operations. Without innovation, hospitality service
providers face the threat of becoming ‘obsolete’- ultimately driving
them out of business or forcing them to hand the business over to
more efficient and innovative entrepreneurs.
Innovations According to Particular Hospitality Categories
Major players in the hospitality industry can be categorised into
leading domestic hotel chains, international brands, emerging Indian
brands, market entrants from outside of the industry, and the
remainder of nondescript, largely standalone properties. The leading
Indian hotel chains, such as The Taj Group of Hotels, Oberoi Hotels
& Resorts, and ITC Welcomgroup, and the government-run ITDC
dominated the Indian hotel market for decades, when only a handful
of international brands had a token presence in India.
Of the major international hotel chains Sheraton, Hilton, Hyatt,
Radisson, Marriott, and Le Meridien are already firmly established in
the Indian markets and steadily expanding. With China and India as
leading engines of growth in the global hospitality industry, few of
the globally operating companies want to be left out. Considering the
immense scope of opportunity in India, more and more international
brands follow their footsteps.
By now, about 50 international hotel chains have entered the Indian
marketplace. Rotels, such as the famous Indian luxury trains "Palace
on Wheels" and "Deccan Odyssey", are continuously expanding the
hotels on wheels concept. A growing number of other trains in India
provide a luxurious hotel atmosphere to discerning tourists.
Budget Hotels
The Bed and Breakfast concept has arrived in India. The government
is now classifying home owners providing hospitality facilities as
62
"Incredible India Bed and Breakfast Establishments". Remarkably,
also big hospitality service providers are attracted to this nascent
market. Mahindra Group's Mahindra Homestays already have
hundreds of rooms on a Bed and Breakfast basis in Indian homes
countrywide that can be booked online.
Average room rates hover around INR 2,500 for facilities at par with
three star category hotels. Most bookings are made online and the
brand spreads mostly through media reports and word of mouth due
to the very reasonable rates, which allows the Taj Group to save on
advertising expenses as well.
The concept proves so successful that the company is planning to
open hundreds of Ginger Hotels in India and around the world. Taj's
brand sharpening exercise is bearing fruits. Credit Suisse recognised
IHCL as one of the 27 ‘Great Brands of Tomorrow'.
Luxury Hotels
India also has entered the field of Super Luxury Hotels; some are
located in the big cities, while others are located close to nature.
Mumbai's Sahara Star hotel, for instance, is one of famous the Super
Luxury city hotels in India. It features the 3-floor Sahara Suite,
which might well be India's most expensive suite at INR 400,000 per
night (about USD 8,600).
The price is justified by a private elevator, a personalised spa station
with floatation tank, a glass-roofed lounged with artificial rainfall,
etc. In the same line, Super Luxury resorts such as the Aman Bagh
in Alwar have entered they fray, where the cheapest rooms are priced
at about USD 600 per night.
Authenticity:
Based on the believe that it depends heavily on the type of
accommodation how guests will experience local culture, a rising
amount of hospitality service providers focus on cultural content, for
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example, accommodations that mirror the authentic architecture,
flair, and lifestyle of the respective destinations.
Agricultural Tourism
Agricultural tourism is widely acknowledged as an instrument for
economic development and employment generation particularly in
the remote and backward areas. It creates opportunities to generate
additional revenue, makes for economic diversity, and improves the
understanding of farmers in society.
The Indian government collaborates with the United Nations
Development Program (UNDP) to promote rural tourism and also
sanctioned more than 100 rural tourism infrastructure projects to
spread tourism and socio economic benefits to identified rural sites.
Guests in India can stay on farms ranging from stud farms over
dairy farms up to full-fledged agricultural farms.
They are perfect for urbanites looking to unwind and get back to
nature, but with a bit of comfort and the chance to freely choose the
activities in what the guests want to engage in, whether they want to
milk the cows, wash the buffalos, learn to grind wheat, pick
vegetables, or go fishing. Besides, guests experience the natural,
cultural, and heritage aspects of the region, such as the local
geography, cuisine, and handicrafts.
Unconventional Accommodations
Today's travellers are enthusiastic about travelling in different ways
to widen their experiences. This is also reflected in their choice of
unconventional accommodation options. In India religious centres,
ashrams, and monasteries are among the popular alternatives to
classic choices of accommodation. Given the cleanliness and hygiene
of these accommodations, besides their unique cultural content, this
segment offers huge potential. Organisations such as the
Krishnamurti Foundation, Bharat Sevashram Sangha, Ramakrishna
64
Mission, ISKCON, and Aurobindo Ashram are among the religious
institutions that offer accommodation options across India.
Unique Sales Points
Many higher end hotels in India are realising that their key USP in
international competition is not their high-tech facilities, but rather
their outstanding staff-to-guest ratios and the longstanding tradition
of Indian hospitality as immortalised by "Atithi Devo Bhava".
Hospitality is about serving the guests and to provide them with a
"feel-good-effect". Personalised comprehensive service, such as suites
having their own personal butler, gives guests that extra feel of being
valued by their hosts.
Diversification
Innovative concepts of diversification hold the key to survival in the
hospitality industry in the long run. Fierce competition has led to
innovative ideas by hotel majors, thereby delivering impressive
hospitality products and services. Exotic spas, gorgeous golf courses,
multi-cuisine fine dining, spacious conference and convention
facilities are all among the growing list of facilities found in leading
hotels.
Food and Beverages
With the deeper integration of India in global economic exchange and
the freer flow of goods across borders, the Indian hospitality industry
now has access to better products, such as imported foods and
beverages. Until recently, five star hotel restaurants were considered
the epitome of fine dining experiences in India and even now many of
the best restaurants and bars are still located in India's five star
hotels.
The concept of high-end standalone restaurants remained a rare
exception.
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Foreign versus Domestic Tourists
Earlier foreign tourist arrivals to India were highly lopsided, with a
few countries such as the US and the UK accounting for the bulk of
arrivals in India. In recent years, foreign tourist arrival figures have
been diversifying. More and more people from Afghanistan,
Bangladesh, Sri Lanka, and Nepal visit India now, as are people from
Southeast Asian countries, South America, and Africa.
Reading the Tea Leaves
India is today in the defining stages of the business of hospitality.
Decisions taken today will massively impact the growth trajectory the
industry will take. Reckoning the future of the Indian hospitality
industry is a very difficult task, especially so due to the ever more
rapidly changing market environment. According to World Travel and
Tourism Council, India will be a tourism hotspot from 2009 to 2018,
having the highest 10-year growth potential.
Hotel industries in Maharashtra at a glance
Located on the western coast, Maharashtra is the third largest state
of India.It is bordered by the states of Madhya Pradesh, Gujarat,
Chattisgarh, Andhra Pradesh, Karnataka, Goa and the union
territory of Dadra and Nagar Haveli.
Mumbai, the capital city of Maharashtra is one of the most populous
cities in the world. Dotted with places such as Lonavala, Matheran,
Khandala, Panchgani and UNESCO world heritage sites of Ajanta
and Ellora, Elephanta Caves and Victoria Terminus, Maharashtra
rests as the most sought after tourist destination in India.
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Maharashtra.
Maharashtra, the 3rd largest state in India is speckled with many
places of interest. The state is an assortment of a number of popular
cities like Mumbai, Pune and Aurangabad etc which attracts a large
number of tourists from all over the globe, throughout the year. The
magical city of Mumbai which is the financial and also the film
capital of Maharashtra is always full of life and excitement.
The must visits of this place consists of the Gateway of India, Prince
of Wales Museum, Elephanta Island, Haji Ali's Tomb, Flora Fountain,
Kamla Nehru Park, Kalbadevi Temple, Jama Masjid, Bhuleshwar
Temple, Mumbadevi Temple, Nehru Planetarium, Hanging Gardens,
Marine Drive, Nehru Science Center, ISKCON temple. For
recreational activities you may check out the beaches like Manori,
Madh Island, Versova, Marue, Goral, and Juhu or fun places like
Essel World and Fantasy Land.
The vibrating city of Pune also adds charm to Maharashtra tourism.
The Shanwarawada Palace, Gandhi National Memorial, Raja Kelkar
Museum, Pataleshwar Temple and Samadhi are some of the tourist
destinations that are often visited by tourists from different regions
of India and outside. Yet another wonderful city in Maharashtra is
Aurangabad.
While in the city, as you visit the tomb of Bibi-ka-Makbara on one
hand you can also plan a trip down to Ellora and Ajanta, on the
other. Aurangabad also comes with many shopping options. A chill
out place at Maharashtra is Mahabaleshwar which is a hot favorite
among everyone from nature explorers to peace lovers and also
filmmakers. Lonavala is another beautiful holiday spot and a perfect
stress buster from the daily hassles of life.
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The state of Maharashtra is very well connected by air rail and road,
which makes it easily accessible from all the major parts of the
world. With so many places of tourist interest, it is obvious that a
large number of hotels in Maharashtra have emerged to cater to
Maharashtra tourism and its tourists.
Be it a business trip or a leisure trip, one would find an array of
hotels to suit all pockets and taste. Be it a five star hotel in
Maharastra or budget hotels, the Maharashtra hotels gives you the
opportunity to drape yourself in this glamorous state of India that
magnetize and mesmerize thousands of visitors with its refreshing
greens, hilly terrains, golden beaches and rich cultural heritage.
Five star hotels in Maharashtra
Some of the five star hotels in Maharashtra are The Oberoi and The
Taj President Hotel.
The Oberoi Hotel
Run by "Oberoi Group", this Maharashtra hotel is conveniently
located in the heart of Mumbai being at a distance of 35kms from the
airport. This dazzling luxury hotel in Maharashtra which stands tall
at Nariman Point with an overview of the Arabian Sea comes with
luxurious stay at the 337 rooms of the hotel.
The hotel caters to the dining needs of its guest through 'Brasserie',
which serves informal dining, "Kandahar", known for Indian
cuisines, 'Rotisserie' & 'Sea Grill' offering Mediterranean food while
the well stocked bar, 'Bayview Bar' serving all kind of drinks. Some of
the other facilities in this Maharashtra hotel are spa, swimming pool,
fitness and recreation centre, business facilities etc.
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The Taj President in Mumbai
Another 5 star Maharashtra hotel is the Taj President situated in
Mumbai which is also a popular business hotel. It is at a distance of
3kms and 35kms from the railway station and the airport
respectively. This star hotel in Mumbai is replete with 300 exclusive
rooms and suites. This Mumbai hotel also comes with an Italian
eatery, Trattoria, Thai pavilion, Konkan Café, poolside Barbeque and
a bar. Other amenities at the Taj President, Mumbai, includes
Banquet rooms, Business Centre, Shopping arcade, Bookshop,
Souvenir shop, Fitness Centre, Swimming pool, Spa etc.
Budget hotels in Maharashtra
The budget hotels in Maharashtra include Hotel Suba Palace,
Gordon House Hotel etc.
Hotel Suba Palace
Ideally in closeness to the Arabian Sea and also the famous Gateway
of India, Hotel Suba Palace is one of the sought after Maharshtra
hotels situated near Nariman Point. It has 50 AC rooms equipped
with modern amenities. The hotel also comes with dining facilities at
its restaurants, coffee shops and the lounge. Conference room,
Laundry, Doctor on call, terrace for programmes are also available at
the hotel.
Gordon House Hotel
Gordon House Hotel located in Mumbai is made in a contemporary,
swish style, which makes it stand apart. There are ample
accommodation options in the form of luxurious rooms. "Tides" and
"All Stir Fry" are the restaurants of the hotel while "Three Flights
Up"" is a bar and a club at the hotel. This Maharashtra hotel also
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comes with facilities like Conference, Banquet, and terrace for social
gatherings etc.
Table No. 1.7
Detail of the Managerial and Executive level Staff working in the
different Hotels in Maharashtra.
Sr.
No.City Name of the Hotel
Hotel StaffTotal
Managers
Executives
1Aurangaba
d
Hotel Ambassador
Ajanta8 5 13
Hotel Rama
International7 6 13
Hotel Taj Residency 9 8 17
2 Nasik
Jupiter Business &
luxury Hotel4 3 7
Hotel Ginger 5 3 8
Quality Inn Regency 3 3 6
The Gateway Hotel
Ambad2 4 6
3 Nagpur
Hotel Pride 2 4 6
Hotel Vits 2 2 4
4 Pune
The Westin Koregaon
Park6 7 13
Courtyard Pune 7 5 12
The Central Park 5 4 9
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4 Pune
Vivanta by Taj – Blue
Diamond5 3 8
Le Meridien 11 6 17
The Pride Hotel 9 6 15
The Golden Emerald 7 3 10
Hotel Ibis 4 33 7
The Corinthians
Boutique Hotel5 3 8
The Sagar Plaza, 4 2 6
Hotel Parc Estique, 3 3 6
Hotel Sun - N - Sand 9 6 15
5 Mumbai
Sahara Star Mumbai 13 10 23
Grand Sarovar Premier 15 17 32
Le Royal Meridean 14 12 26
The Oberoi Mumbai 12 20 32
Park Plaza Royal Parm 10 13 23
Vivanta by Taj-
President7 3 10
Marriot Lakeside Chalet 9 12 21
Renaissance Mumbai
Hotel & Convention
Centre
8 13 21
Grand Hyatt, Mumbai 12 8 20
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5 Mumbai
Holiday Inn Mumbai 15 13 28
Hotel Four Seasons, 9 15 24
Leela Kempinski Hotel 13 15 28
ITC Hotel Grand
Maratha Sheraton &
Towers ,
15 15 30
JW Marriott Hotel,
Mumbai12 6 18
Ramda Plaza Palm
Grove7 9 16
Sun n Sand, Mumbai 9 12 21
Taj Lands End, Mumbai 8 7 15
Taj Mahal Palace &
Tower,7 5 12
Taj Wellington Mews, 9 6 15
The Emerald, Mumbai 7 12 19
The International by
Tunga,6 6 12
The Lalit Mumbai 11 7 18
The Orchid Hotel,
Mumbai13 9 22
The Paradise Tunga, 10 8 18
The Retreat, Mumbai 7 5 13
Trident Nariman Point, 6 4 10
5 Mumbai
Trident, Bandra Kurla, 11 5 16
Four Seasons Hotel 7 9 16
The Westin Mumbai
Garden City Hotel8 12 20
St.Laurn Meditation
Spa7 12 19
Sun N Sand 9 13 22
6 RatnagiriKohinoor Samudra
Beach Resort12 14 26
7 Khandala Hotel La Revival 8 16 24
8 Lonavala
The Upper Deck Resort
& Country Club12 9 21
Fariyas Holiday Resort 9 8 17
Aamby Valley City 7 11 18
9
Maha-
Baleshwar
Hotel Bright land 11 16 27
The Pride Sherwood 9 13 22
Total 491 489 981
Source: Field Survey (2011)
Significance of the Study:
This study particularly deals with “A Study of Problems & Prospectus
of five Star hotels in Maharashtra State” hotel industry playing very
vital role in tourist activities and economic development of the
country. Hotel industry is having very vast area and it is diverse in
73
nature. Therefore, the area of study on this topic has to be decided to
get a valid conclusion.
In order to exploit the full potential of the customer base, every five
star hotel should adopt good policy in services development, which
can help to strengthen the service excellence in Maharashtra
state.The analysis and interpretation of different five star hotels with
regard to service growth from the view of customers and employees
will help in decision making for policy implementations, customers
and related other areas, & in better understanding, the importance
of services and customers desires. The study would help hoteliers to
understand the hotel sectors contribution to the society.
The general tendency of the five star hotels is to earn feedback that is
more satisfactory from the tourists rather than money. The
information will be collected from different sources, the rise and fall
in the position of the sample of five star hotel industries & to
understand the actual position. The present study is designed to find
out differences in hotels. Efforts will be made to understand the
strengths and weaknesses of the five star hotel industries.
OBJECTIVES OF THE STUDY:
Following are the broad objectives of the present study:
• To understand the problems, progress and the present
scenario of the five star hotels in Maharashtra state.
• To appraise the prospectus of the five star hotel industry.
• To explore the potentiality for development of five star hotel
industry.
74
• To assess the consumer satisfaction against services available
in the five star hotels in the state of Maharashtra.
• To ascertain the government policies regarding the five star
hotel industry and forecast the prospectus of five star hotels
development in new millennium.
• To study the collaboration of travel agencies and its impact on
tariff.
• To identify and synchronize the problems of the five star hotel
industry and to suggest the remedies to overcome them.
SCOPE OF THE STUDY:
The geographical area of the study covers star hotels from the
Maharashtra; however the efforts are made to relate the study by
covering whole India.
RESEARCH METHODOLOGY
This descriptive study is purely related to the Problems and
prospectus of five star Hotels in the major cities of Maharashtra
State. The study is the combination of historical and present
scenario of Hotel Industry for the period under study. The study
covers all the aspects i.e. problems, future growth, trends, working
position and satisfaction level of society of the five star hotels
situated in Maharashtra state.
To complete this study following research methodology is adopted
a. Primary Data:
Primary data is collected through personal interviews and the
observations of hotel staffs. The questionnaire was prepared to
75
collect the detail information for the research work. The primary data
is collected from the different respondents i.e. managers and hotel
executives.
The data is collected from the different respondent, from the different
departments of the hotels; hence it is very much needed to study the
various departments’ structure and their operating in the five star
hotels:
b. Secondary Data:
For getting the exact status of the present situation it needs to collect
the secondary data, hence the secondary data is collected through
various sources i. e., Journals, Periodicals, hotel brochures, news
papers, Magazines and Hotel Websites provided by certain hoteliers.
c. Selection of Samples:
Maharashtra falls into six administrative divisions: i.e. Amravati
Division, Aurangabad Division, Konkan Division, Nagpur Division,
Nashik Division and Pune Division, the researcher has selected the
entire administrative divisions for collecting the data.
Though not a single five star hotel situated in Amravati division,
hence that area is not covered by researcher. And there are only 59
five star hotels are situated in whole Maharashtra including all major
cities.
From all these 59 five star hotels and 981 Managers and executives,
10 % (98 Managers and Executive) of the samples have selected by
the help of convenience sampling method for the study purpose.
d. Statistical Tools & Techniques used:
While analyzing the data researcher has used various statistical
tools, techniques and methods, such as classification, tabulation,
graphical presentation and percentage.
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LIMITATION OF STUDY:
Ø Important aspects of the five star hotels are studied in depth;
however, the study is geographically limited to Maharashtra
State only.
Ø The study is limited span of 10 years i.e. 2001 to 2011 only.
Ø There are only 59 five star hotels situated in Maharashtra
state, for the study purpose only, 10% of the sample
representation of five major cities of Maharashtra.
PRESENTATION OF THE STUDY:-
The study runs into seven chapters. The following are the particulars
of the chapter plan.
1) Introduction
The first chapter deals with a brief introduction, background of the
study, research methodology and its limitation. The sources of data
and objectives of the research have been discussed and on the basis
of hypothesis the method used for primary survey, the objectives of
statistical test and different questionnaire have been clearly
mentioned. This chapter also gives the chapter scheme of the study.
2) Review of Literature
The second chapter deals with the overall review of the literature
available on the particular topic. Literature is the most important
part of any research. In this topic, the review is taken near about 49
books and 14 articles regarding the research topic.
This chapter is divided into two parts i.e. Review of Research Articles,
Review of Books, thesis and other related published or unpublished
literature on this particular topic.
77
3) Profile of tourist places in Maharashtra
The third chapter devoted to the presentation of general profile of the
area under study. In this chapter the researcher has covered
geographical, historical, demographical and socio-economical aspects
of the Maharashtra State.
Third chapter linked to the information of all tourist places situated
in Maharashtra state which are the major attraction of tourist.
Maharashtra is one of the most sought after tourist destinations in
India. The chapter included the entire destination where Tourists are
visiting.
4) Performance of five stars hotels in Maharashtra
The fourth chapter deals with the five stars hotels in Maharashtra,
As the main subject theme is related to the problems and prospects
of five star hotels it is needed to explain the detail profile of Five Star
Hotels as there are 59, Five Star hotel are situated in Maharashtra.
Hence brief information related to speciality, services, facilities and
rooms details and different departments have been collected about
hotel and presented in this chapter.
5) Human resource Management in Five star hotels
The fifth chapter deals with Human resource management in five
star hotels the chapter focus on current status of the hotel industry.
The chapter also highlights on the requirement of human resource
management in hospitality sector in Maharashtra state, the purpose
of Human Resource Development is to improve the capacity of the
human resource through learning and performance at the individual,
process and organizational levels.
78
6) Data collection & Analysis
The sixth chapter dedicated to the data collection and analysis,
which is the most important study area of the project. Analyzing
survey data is an important and exciting step in the survey process.
7) Summary, Conclusions and Suggestion’s
This Chapter highlights on the overall summary of the present study,
important conclusions drawn by the researchers and important
suggestions made by the researchers to overcome the problems
which found in this study.
Concluding Remark:-
Hospitality Industry is booming like never before. This thesis shall
discuss the expansion of Industry and need of the strategic
management principles after second world and the developments
that have taken place since then.
The aim of this thesis is to study the extent to which the remedies
are used by Hospitality Industry and to discuss the structure of this
industry. This thesis presents findings of issues, challenges and
trends that hospitality industry might fact in the year ahead
respectively.
Top issues that will influence the global hospitality industry in the
year ahead include sustainable development calls for green
hospitality, labor cost, multicultural issues and higher education.
Challenges that facing hospitality include will include operating
issues, marketing issues, technological issues and economic issues.
Identified key trends that, taken together, we believe will shape the
hospitality sector this year and for years to come include rapid
growth in vacation ownership, integration & globalization, new
management.
79
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