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    HOSPITALITY INDUSTRY

    PRESENTED TO: PROF. SUPRIYA BHUTANI

    PRESENTED BY:

    ANUJ GOSAI (2)

    JIGNESH HIRANI (13)

    RITU MALIK (19)

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    WHAT IS HOSPITALITY MANAGEMEN? Hospitality management is the sum total

    organization involved in planning, controlling,supervising and co-ordinating all the humanand other material resources which meant toprovide comfort, conveniences, satisfaction andacceptable services to guests or any persons ina friendly and hospitable atmosphere in orderto minimize complaints, uncomplimentarystatements and to reduce waste of theseresources.

    INTRODUCTION

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    Hospitality management industry has beenclassified into three major parts,

    Different types of hospitality industry such as

    HotelMotel

    Guest Houses

    TYPES OF HOSPITALITY MANAGEMENT

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    India has the potential to become the number onetourist destination in the world with the demand growingat 10.1 per cent per annum, the World Travel andTourism Council (WTTC) has predicted.

    The WTO (World Travel Organisation) predicts that Indiawill receive 25 million tourists by year 2015.

    Major attractions in India are the world's highestmountains, miles of coastline with excellent beaches,tropical forests and wildlife, desert safari, lagoonbackwaters, ancient monuments, forts and palaces,adventure tourism and, of course, the Taj Mahal.

    THE GROWING HOSPITALITY INDUSTRY IN INDIA

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    Existing hotel rooms in India: 202,963, source

    FHRAI

    Revenue of the Indian hotel industry FY 2009-

    10: US$ 137.36 (INR 47,889.03 crore)

    30% of this revenue i.e. US$ 41.2 million (INR

    14,366.7 crore) went back into the market in FY

    2008-09 as operating expenses

    CURRENT SCENARIO

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    NUMBER OF HOTELS IN INDIA

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    Strengths A very wide variety of hotels is present in the country

    that can fulfill the demand of the tourists.

    There are international players in the market such as Taj

    and Oberoi & International Chains.

    Thus, the needs of the international tourists travellers

    are met while they are on a visit to India.

    Manpower costs in the Indian hotel industry is one ofthe lowest in the world.

    This provides better margins for Indian hotel industry.

    SWOT ANALYSIS

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    The cost of land in India is high at 50% of total project cost asagainst 15% abroad

    This acts as a major deterrent to the Indian hotel industry

    The hotel industry in India is heavily staffed. This can be gauged

    from the facts that while

    Indian hotel companies have a staff to room ratio of 3:1, this ratio

    is 1:1 for international hotel companies

    High tax structure in the industry makes the industry worse off

    than its international equivalent

    In India the expenditure tax, luxury tax and sales tax inflate the

    hotel bill by over 30%. Effective tax in the South East Asian

    countries works out to only 4-5%

    WEAKNESS

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    In the long-term the hotel industry in India haslatent potential for growth.

    This is because India is an ideal destination for

    tourists as it is the only country with the mostdiverse topography.

    For India, the inbound tourists are a mere 0.49%

    of the global figures.

    This number is expected to increase at a

    phenomenal rate thus pushing up the demand

    for the hotel industry.

    OPPORTUNITY

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    Guest houses replace the hotels This is a growing trend in the west and is now

    catching up in India also, thus diverting the hotel

    traffic

    Political turbulence in the area reduces tourist

    traffic and thus the business of the hotels

    Changing trends in the west demand similar

    changes in India, which here are difficult

    to implement due to high project costs.

    THREATS

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    THE THREE-STAGE MODEL OF SERVICE CONSUMPTION

    PRE-PURCHASE STAGE: Awareness Need: Vacation, Tours, A place to relax enjoy and

    have

    Information Search: Internet, Journals, Word of Mouth,

    Evaluation of Alternatives: Comparison of the rates, selecting thebest package,

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    Service Encounter Stage:

    THE THREE-STAGE MODEL OF SERVICE CONSUMPTION

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    Post- Encounter Stage: Evaluation through feedbackforms, satisfaction of consumers, spreading positive

    word of mouth

    THE THREE-STAGE MODEL OF SERVICE CONSUMPTION

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    Functional Risk: Will I be able to experience good room service?

    Will I be able to enjoy and relax in the hotel?

    Financial Risk:

    Will the charges will be high? Will I incur lot of other costs inspite of paying the regular

    charges?

    Temporal Risk:

    Will the have availability of room? Will the service be slow and unmanageable?

    PERCEIVED RISK

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    Physical Risk: Will the food served will harm my health?

    Will I get sick while travelling long distance?

    Psychological Risk:

    Will my things/luggage will be safe here? Is the security level high here?

    Social Risk:

    Will my family like this place?

    Is this place suitable for family/friends meeting? Sensory Risk:

    Will I get a comfortable room for my family/friends?

    Will the view from my room be good?

    PERCEIVED RISK

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    Reservation

    Valet

    Parking

    Reception

    Baggage

    Service

    CocktailBar

    RestaurantEntertainment/

    Sports / Exercise

    Telephone

    Wake-upCall

    Room

    Service

    Business

    Center

    Cashier

    A Bed for the

    Night in an

    Elegant Private

    Room with a

    Bathroom

    CORE AND SUPPLEMENTARY SERVICE IN A LUXURY HOTEL

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    FLOWER OF SERVICE

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    Information - Reg. the org.,, promotion schemes etc.Through website, call

    service, sms, employees etc.

    Consultation - Reg. the choices of class, routes to a destination & special

    menus for frequent visitors

    Order taking - Booking - through phones, fax and internet Call Centres, Company

    Website & Agents

    Hospitality - Most important differentiating factor

    Safe keeping - Luggage & Children

    Exceptions - Special requests reg. meal preferences, special amenities

    for elderly people or children, medical needs etc.

    Billing - Charges split, E-mail bills etc.

    Payment - Credit card, Travellers cheque, Special payment privileges

    for frequent visitors

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    SUPPORTPROCESS

    CON

    TACTPERSON

    (BackStage)

    (On

    Stage)

    CUST

    OMER

    Hotel ExteriorParking

    Cart forBags

    DeskRegistration

    PapersLobby

    Key

    ElevatorsHallways

    Room

    Cart forBags

    RoomAmenities

    Bath

    Menu DeliveryTray

    FoodAppearance

    Food BillDesk

    LobbyHotel Exterior

    Parking

    Arriveat

    Hotel

    Give Bagsto

    BellpersonCheck in

    Go to

    Room

    Receive

    Bags

    Sleep

    Shower

    CallRoom

    Service

    Receive

    FoodEat

    Check outand

    Leave

    Greet andTake

    Bags

    ProcessRegistration

    Deliver

    Bags

    Deliver

    FoodProcess

    CheckOut

    Take Bagsto Room

    TakeFood

    Order

    RegistrationSystem

    PrepareFood

    PHYSICAL

    EVIDENCE

    Line of Interaction

    Line of Visibility

    Line of Internal Interaction

    RegistrationSystem

    BLUE PRINT FOR OVERNIGHT HOTEL STAY

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    Environmental

    Dimensions

    Perceived

    ServiceScape

    Ambient

    Conditions

    Temp, air

    qu,noise,mu

    sic,scent

    Space/

    Function

    Layout,equip,furnishing

    Signs,

    Symbols &

    Artefacts

    Cognitive

    Emotional

    Psychological

    Customer

    Response

    Moderator

    Employee

    Responses

    Approach

    or

    Avoid

    Approach

    or

    Avoid

    Social Interaction

    Between

    Customers &

    Employees

    Holistic

    Environ-

    ment

    Moderators Internal Responses

    Customer

    Responses

    Employee

    ResponseModerator

    Cognitive

    Emotional

    Psychological

    An Integrated Framework Bitners Service Scape Model

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    THE GAPS MODEL

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    The knowledge gap:

    Hotel managers must know and understand what their guests expect from

    their stay, including all tangibles and intangible components

    The size of the gap is dependent on the extent of upward communication ,

    the number of layers of management, the size of the organization

    The extent of marketing research to identify customer expectations

    The policy gap:

    It is measured by how well the service design specifications match up to

    managements perception of customer expectations

    The extent of this gap is dependent on managements belief that service

    quality is important and that it is possible, as well as the resources that are

    available for the provision of the service.

    THE GAPS MODEL

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    Delivery Gap: Since individuals perform the service, the quality may be affected by such

    factors as skill level, type of training received, degree of role congruity

    or conflict, and job fit

    The process is further complicated by the customers participation in the

    service encounter

    Communication Gap:

    Hospitality companies use advertising, personal selling, and

    sales promotion to inform, persuade, and remind guests about its products

    and services

    Showing beautifully appointed hotel rooms, refreshing swimming pools, andluxurious lobby areas in an advertisement communicates to the target

    customers.

    The extent of communications between the company and the advertising

    agencies will affect the size of the gap.

    Over-promising is commonly responsible for the communication gap.

    THE GAPS MODEL

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    RUSSELLSMODEL

    AROUSING

    EXCITING

    PLEASANT

    RELAXINGSLEEPY

    BORING

    UNPLEASANT

    DISTRESSING

    RUSSELLS MODEL OF AFFECT

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    Problem: Non- Availability of rooms (during vacation)

    Information:

    Lack of research, planning

    Over doing promotions, unable to manage the rush

    Procedures: Confused/ delayed room selections

    More and more cancelations

    Over reservations

    Desire to earn more income Front-Stage personnel:

    Few Employees

    Untrained/undermotivated employees

    ROOT CAUSE ANALYSIS

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    Inability to handle such situations

    Late/delayed/slow response to customers

    Backstage Personnel:

    Late cleaners

    Unavailability of the required staff

    Facilities Equipment

    Cleaning and maintaining tools

    Materials used and required by customers

    Failures in services Material Supplies:

    Late food service/room service

    Lack of things required by customers

    ROOT CAUSE ANALYSIS

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    Customers:

    Being rude and making unnecessary demands

    Arriving late

    Over booking of rooms/ cancellations

    Other causes: Peak period

    Less rooms

    Unnecessary Promotions

    ROOT CAUSE ANALYSIS

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    THANK YOU