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Avi Batra : BBA/4501
Saloni Nanda : BBA/4519
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The basic function of hospitality is toestablish a relationship or to promote
exchange of goods and services, bothmaterial and symbolic, between thosewho give hospitality (hosts) and thosewho receive it (guests) (Lashley and
Morrison)
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Hospitality Management refers todifferent areas of Tourism
Reflects aspects of
Hotel Management
Restaurants Holiday Destinations
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Prosper in certain destinations andattractions
The mostfamous ones
being
Paris
Hollywood
CancunNew Zealand
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Estimated at US$17 billion
Contributes 5.9% of Indias GDP
Expected to reach US$35 billion by 2017
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Growth of over 5% in hotel rooms in thepast 3-4 years
A total investment of US$12.7 billion and20 international hotel brands are soon toarrive in India
Some existing ones are - Ginger Hotels,Lemon Tree, Sarovar Hotels, FortuneHotels, etc.
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US-based casual dining chain CaliforniaPizza Kitchen(CPK) planning to launch
new outlets in India
Its bullish as existing outlets have proved
successful
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Whitbread, UK based hospitalitycompany, has announced to invest
US$53.3 million by 2020
With the investment, over80 properties
shall be developed over the new 10years
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Provides employment to over42 millionpeople
Also on the verge of becoming a majorhub for medical tourism, as US$333
million in 2007 is predicted to rise toUS$2.2 billion by end of 2012
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Available rooms are approx. 110,000 asagainst the demand of 250,000
100% FDI for construction of infrastructureand airport development projects has
been permitted
Estimated to receive investments ofUS$11.41 billion from 2011-2014
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Conrad Lashley and Alison Morrisonformulated 3 domains, i.e., interactions
of people and service provided
First domain is about interaction andrelationships between them and theirconsumers
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Second domain or Private domain
Standalone food outlets that establish
relationships with consumers on foodbased elements
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Commercial Domain, i.e., business sideof hospitality industry
Refers to service or business promoted to
consumers
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Tourism industry attracts consumers todifferent destinations
Generally through promotion &marketing
Hospitality provides comfort and leisureto those consumers
Role of Tourism with Hospitality
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Have global connections with Hospitalityservices
To provide the best deals and top-notchservice to consumers
Helps in relationship building with clients
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5000 year history, culture, religion andalternative medicine fascinate both
budget & luxury travelers
The focus is on Atithi Devo Bhavah
campaign, which translated literallymeans, Guest is God
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Tourism is 3rd largest foreign exchangeearner
Accounting for 5.9% of GDP
Direct contribution to economy withhandicrafts, horticulture, etc.
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WTTC named India & China fastestgrowing Tourism industries for the next 10
to 15 years
Despite poor infrastructure, tourism
industry has shown an impressive double-digit growth
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According to HVS International, strongperformance in 2005 can be attributedto Strong GDP performance
Strengthening of ties with developed world
Opening sectors of economy toprivate/foreign investment
o Efforts made by Ministry of Tourism & Culturehave had a salutary effect on the industry
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Directly employs 150,000 people as ofdate
Prior to 1980s, very-slow growth andstatic single-hotel companies existed
ASIAD meet in 1982 and partialliberalization boosted demand
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As per IMF, Indias economy liberalized inFY 1991
Euphoria prompted major chains, newentrants and international chains
Target consumers were business travelersand foreign clientele
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Classified into 7categories
Five stardeluxe
Five-star
Four star
Threestar
Two star
One-star
Heritage
Ratings arereviewed every
5 years
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Business Traveler
Corporate, both domestic & foreign Extended stays and use PCs, fax,
conference halls, etc
Demand lesser discounts and give betterF&B revenues
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Leisure Traveler
Domestic or foreign traveler Main purpose is sight-seeing
India has wild life, hill resorts, beaches,
etc. Seek higher discounts and provide lesser
F&B revenue
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Airline Cabin Crew
Provide repetitive and guaranteedbusiness
Part of annual contract and, for a fixed
rate, demand fixed number of rooms Ask for highest discounts and provide
low-yield to hotels
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Delhi11,000 Mumbai9,000
Bangalore8,000
Hyderabad7,500
According to HVS International
rooms are expected to be added in the next 5 years
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Indian Hotels Company(Taj Group)
EIH Limited (Oberoi Group)
ITC Hotels Limited ITDC (Ashok Group)
Aggressively expanded after economicboom and are well established entitiesnow
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Hotel Leela Venture(with Kempinski)
Asian Hotels(Hyatt Corp.)
Bharat Hotels(formerly with Hilton)
Late entrants and lack of experience
Plans to initiate expansion before 2020
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Marriott
Starwood
Berggruen Hotels
Joining with Indian players to raise
awareness Ambitious expansion plans
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Mainly comprise of early entrants whosesole focus is localized presence and loyal
customer base
No immediate expansion plans
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Incredible India
Atithie devo bhava
Promotion of Buddhist abodes Other projects such as
Rs. 5,400 million National Highway Dev.
Project 6000km Golden Quadrilateral
7,300km north-south and east-westSagarmala
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Opportunities :
Need to exploit cost advantage for ahealth tourist
Unique basket of services such as yoga,
meditation, ayurveda, allopathy, etc Provided by internationally qualified and
experienced specialists
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Site & Location
Convenient access and connectivity
Positioning
Approaching target segment by providingservices to both leisure as well as business
travelers
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Financial Flexibility
Development of hotels is capital intensive.Proper funding is essential during early yearsof operations
Brand Equity
When classified, chain and independenthotels gain association with the brand, thisreducing advertising and promotion cost
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Poor domestic infrastructure
India being highly prone to prevailingsocio-economic and political conditions
Growth in tourism sector is followed byimminent destruction of local ecology,which in the long run, will negativelyimpact us
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Entry of new players only in mid-marketsegment
Aman Resorts, Shangri-la Hotels, FourSeasons Hotels and The Hilton Groupprovide fierce competition to newentrants
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9th largest aviation market in the world
Approx. 30million passengers traveled
to/fro India in 2008, increased by 30%w.r.t 2007
Predicted to touch 50million passengersby 2015
69 foreign airlines from 47 countries arelikely to enter
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2416
14
12 3
2 1
Sales
Kingfisher Airlines andKingfisher Red
Jet Airways & Jet Lite
Air India and Indian
IndiGo
Spicejet
GoAir
Paramount Airways
MDLR Airlines 40
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Name of the players Market ShareKingfisher Airlines and Kingfisher
Red (previously Air Deccan)
28%
Jet Airways and Jet Lite
(previously Air Sahara)
25%
Air India and Indian (previously
Indian Airlines)
16%
IndiGo 14%SpiceJet 12%
GoAir 3%
Paramount Airways 2%
MDLR Airlines 0.004% 41
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Civil Aviation market grew at a CAGR of18% (round value US$5.6 billion in 08)
Domestic Airlines flew 3.67 million as ofAugust 2009 as against 2.92 million inAugust 2007
Estimated to handle 100million+passengers yearly
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Growth provided by Aviation industryincreased GDP above 8%. Rate will be
sustained for a good number of years
Air traffic has grown enormously andexpected to have growth above 25% intravel segment
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Februrary 18th, 1911, first commercial
flight from Allahabad to Naini by aFrench pilot named Monseigneur Piguet
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Initializing privatization of airport activities
Modernization of airlines fleet to handlepressure of competition
Rapid expansion plans for major airports
Immense development of regionalairports
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