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INDIA AS A HUB FOR EDUCATION AND CAREER DEVELOPMENT

IN THE HOTEL INDUSTRY

AARTI SHARMA1 Prof. K.SANTI SWARUP

2

1 Research Scholar, Department of Management, Dayalbagh Educational Institute, Agra- 282005

2 Professor, Department of Management, Dayalbagh Educational Institute, Agra- 282005

ABSTRACT

Indian Hotel Industry being one of the major service industries, has incredibly observed a major uplift

in recent years. The industry witnessed 6.88% GDP, around 1281.95 million domestic tourist and 7.7

% FTA‟s was estimated (2014) proving it to be a potential industry. In the field of education, it has 21

Central hotel management institutes for students who want to pursue their career in this field. To cater

to this need of skilled workforce, India should study the challenges faced by the Hotel Industry and

obtain the desired and appropriate talent. The paper highlights the challenges faced by the industry

due to were lack of technological up gradation, standardization and updated curriculum etc. Porter‟s

five Forces Model and SWOT analysis was used to study the competitiveness and opportunities for

education in this sector. Further the study highlights the innovative measures that can be adopted by

the institutes in this regard for attracting graduates abroad and retaining in-house graduates in serving

the nation.

Key Words: Hospitality Education, India, Competences, Hotel management institutions, Challenges.

1. INTRODUCTION

Hospitality is the term which is given great importance in the Indian culture and therefore that is one

big reason why Indian follow „Aitthi Devo bhava‟ philosophy. Therefore hospitality is regarded as a

relationship between the two where the host gives the guest a warm welcome, entertains them and

maintains a friendly attitude towards them. The guest is regarded equivalent to God following the

motto from ancient times. Regarding hospitality, Indian has always had an incredible past and

therefore continuing the tradition in the today‟s era hospitality and tourism education carries great

importance. Gradually as the country developed it realized the need of trained man power and human

resource to cater to the countries demand and serve the guests visiting India because of its huge

monument base, and that is how hotel management institutes came in existence. The Importance of

Hospitality education can therefore be well carved out from the fact that economies have identified

the industry as a medium of its growth and development. Even our country pushes upon its hospitality

as well as of that associated with this sector. Therefore for the present year after the launch of “Make

in India” scheme the government approvals and allocation are made for the upliftment of this sector.

Therefore in respect of this initiation the government as well as private educational institutions

offering programs related to hospitality and tourism are also taking initiative for its further

improvement.

As seen in the past many such institutes have failed to flourish in providing hospitality programs and

retaining the Indian talent within the country boundaries. Drawback of the system was increasing

number of dropouts, career switching, students joining courses abroad and serving outside the nation.

Therefore this has now posed a challenge in front of the institutes and the country to redesign courses,

curriculum and introduce new methodology of teaching with the help of highly qualified and

experienced staff. “Make in India” which is a recent step taken by the Modi government has greatly

INTERCONTINENTAL JOURNAL OF HUMAN RESOURCE RESEARCH REVIEWISSN: 2320-9704 - ONLINE ISSN:2347-1662 - PRINT IMPACT FACTOR:1.615VOLUME 4, ISSUE 10, OCTOBER 2016

www.icmrr.org 8 [email protected]

emphasized the importance of development and growth in the hospitality and tourism sector.

Therefore going parallel with the theme, the researcher has tried to highlight the innovations and

technological development which the hotel management institutes should inculcate for better output in

the industry. These changes are in respect of improvement in the curriculum design matching the need

of the industry, training techniques, faculty, infrastructure and use of latest and updated technology in

the field of delivering education. Make in India has emphasized in making the country a

manufacturing hub for various sectors. But shaping the career of the future generation giving them

right skills and knowledge so that they can contribute in the countries development will itself act as a

milestone in the development of the hospitality sector. Because the countries progress lies in the

hands of its citizens. The step will further determine whether hotel management institutes will act as

game changers or mute spectators.

2. REVIEW OF LITERATURE

Though much study has not been conducted in the area of education in hotel industry, but the fact

cannot be denied that education have always been the backbone the industry and its developments in

the past. Therefore for study of the background, the researcher has reviewed some existing literature

in this area.

Baum, 1995stated that because the Indian students regarding the quality of work are not as good as

international students therefore the pass out graduates fails to match the employer‟s expectation and

get good placements.

Amoah and Baum, 1997 described that the absence of standardization and consistency have posed

threats in the minds of both the students and the employers acting as barrier in their growth in the

industry.

Bhardwaj, 2002 has stated in his study that Hospitality and tourism education has great significance

when it comes to the development of the right human resource and bringing professionalism in sector

and their attitude.

Bagri and Babu, 2009 explained that the factor of unpredictability in curriculum and subsequent

products hamper the employment prospects in the country.

Umbreit, 1992 argues that the curriculum needs some relevant modification to match the industry

demand and expectations. And therefore the faculty should redesign the curriculum to provide their

students with the best knowledge in the coming years.

Doswell, 1994 explained that role of education and training in the development of the human capital

in the respective industry and there interrelationship with each other.

1.1 LIST OF HOTEL MANAGEMENT INSTITUTES IN INDIA

India being a symbol of self dependence is now promoting Make in India and has sufficient resources

to cater to the needs and demand of education of Hotel Management to its generation of youngsters

through the list of institutions and colleges in has within the country borders. Following is the list of

Hotel Management Institutions and colleges in India :



Table 1.a List of Top 10 Management Institutes in India

Top 10 Hotel Management Institutes in India

Rank College City Website

1 Oberoi Centre of Learning

and Development

Delhi http://www.oberoigroup.com/careers/index.htm

2 Institute of Hotel

Management (IHM)

Mumbai http://www.ihmctan.edu/

3 Welcomgroup Graduate

School of Hotel

Administration (WGSHA)

Manipal http://manipal.edu/mu.html


Management (IHM)

Delhi http://www.ihmpusa.net/


Management (IHM)

Aurangabad http://www.ihmaurangabad.ac.in/


Management (IHM)

Bangalore http://www.ihmbangalore.kar.nic.in/


Management (IHM)

Chennai http://www.ihmchennai.org/ihmchennai/


Management (IHM)

Kolkata http://www.ihmkolkata.org/


Management (IHM)

Ahmedabad http://www.ihmahmedabad.com/

10 Christ College Bangalore http://www.christuniversity.in/

(Source:http://www.indiatvnews.com/news/india/top-10-hotel-management-colleges-in-india-

32543.html?page=11)

3. OBJECTIVES

1. To analyze the perspective of the final year students towards working in hotel industry.

2. To identify the percentage of students willing to opt for hotel management as their career

option.

3. To analyze the impact of hotel management education on students.

4. METHODOLOGY

The present study is descriptive and conceptual in nature based upon both primary and secondary

data. Like questionnaire as a tool used and review of literature, research journals, magazines, internet,

newspapers articles, hospitality industry reports and reports of Tourism guild and Federation of hotel

and Restaurants Association of India (FHRAI) etc. To measure the competitiveness of the industry the

researcher made use of the Porter‟s five force model – threat of new entrants, threat of substitutes,



rivalry among existing firms, bargaining power of buyers, and bargaining power of suppliers and

environmental tools like SWOT analysis for studying the factors affecting the industry. The data was

collected in the month of June-august and analyzed in the month of August to September 2016.

4.1 DATA COLLECTION

4.1.A. Primary data

The study was conducted using the questionnaire as the tool for collection of primary data. The

students of final year were targeted to provide their perception regarding career in hotel industry.

4.1.1. Questionnaire: A self structured questionnaire was drafted for the purpose of data collection

from the students of final year.

4.2 Sample technique

The sample size was kept as 95 using the following formula for finite population sample calculation.

These were the final year students of various hotel management colleges. The study was conducted on

the students those who had undergone the internship program offered by the colleges.

4.2.1 Calculation of sample size

The population from which sample was drawn is finite in nature. The number of total colleges

considered for the study is 10% of the total colleges conducting hotel management studies in Agra

District. For calculating the final sample size students from each of the three colleges was taken. The

sample population is confined to urban population only. Judgmental and convenience sampling

technique was used for sample size calculation. The formula for calculating sample size is given

below:

n0= σ2 * Z

2

D2

Table 4.1 : Comparative Analysis taking different values of σ and d

Σ Z D n0

Scenario 1 0.05 1.96 0.02 24.01

Scenario 2 0.4 1.96 0.05 245.8624

Scenario 3 0.5 1.96 0.25 15.3664

Total 285.23

Average 95.07



Taking an average of the all the three scenarios and taking different values of σ and D, sample size is

computed to be 95.07 So the final sample size for the study is taken to be 95.This sample size will be

distributed amongst all the 2 colleges of Agra District.

Table 4.2 : Composition of the sample size

S.no Hotel management collegs Category Sample size

A.

B.

Heritage institute of hotel & tourism

Aihm

College

College

Total

48

47

95

4.1.B. Secondary Data

The secondary data was collected from various websites of educational institutes and hotels were

explored and studied. The study was aimed at getting proper understanding of the recent changes in

the hotel industry, the present scenario of the industry, and the status of hospitality education and

educational institutes in the country.

Figure 4. 1: Porter’s Five Force Model

The hospitality industry was further studied on the bases of competitive advantage and analyzed using

the Porter‟s Five Forces Model to its position in this competitive era.

The current position, challenges, prospects of India were considered in analyzing the competitiveness

of the hospitality industry and putting in under various parts of the model.

5. ANALYSIS AND RESULTS

5.1 Qualitative data of the student’s responses

The qualitative responses were gathered in terms of the close-ended questions which were used to

administer the efforts that the institutions put in for the student‟s academic success and performance

and better future.

The above figure shows that 51% of the total respondents were Males and the rest 49% were

Females. The majority of population of the respondents were males.

Industry Rivalry

Threat of

entrants

Bargaining

power of buyers

Threat of

subsitutes

Bargaining

power of supplier

s



32% of the total respondents were below 20 years of age and the rest 67% were above 20 years of age.

The majority of population of the respondents were above the age of 20 years.

74% of the total respondents were pursuing Under Graduate courses and the rest 26% were pursuing

Post Graduate courses. The majority of population of the respondents were under graduates.

32% of the total respondents were Hostellers and the rest 67% were Residents of Agra.The majority

of population of the respondents were residents of Agra.

B. Participant b, AIHM:

41% of the total respondents of St‟John‟s College were Males and the rest 59% were Females. The

majority of population of the respondents were females.

33% of the total respondents were below 20 years of age and the rest 67% were above 20 years of age.

The majority of population of the respondents were above the age of 20 years.

71% of the total respondents of St‟John‟s College were pursuing Under Graduate courses and the rest

29% were pursuing Post Graduate courses.The majority of population of the respondents were of

under graduates.

24% of the total respondents were Hostellers and the rest 76% were Residents of Agra. The majority

of population of the respondents were residents of Agra.

5. Change in the attitude after internships:

The training programs aim to provide the taste of real world outside the college campus to the

students.

Also it helps them get good idea of the real scenario and help them doing well during their

placements. Students are taught professionalism through these kinds of interventions as the part of the

hotel management courses by the colleges. After going for education related to hotel management the

students tend to develop more interest and practice of how to serve their future customers and gain

heights in their upcoming future.

6. FINDINGS

All the questions listed were asked to the students of the hotel management institutes to find the

percentage of students interested in pursuing career in hotel management institutes.

It was found that there is a mixed opinion of students. Few are in favor and others are not as compared

to few colleges and less awareness about the advantages of such professional courses in country like

India and state like Agra.

Following are the results of the data collected through secondary sources from review of literature:

6.1 RESULTS OF PORTE’S FIVE FORCES MODEL

Competitive position of the hospitality industry (with reference to Hotels and Hotel

Management Institutes) in India

Threats of Substitutes (High)

Increasing number of tourist arrival



Large number of alternatives available of hotels and hotel management institutes.

Price and promotion effectiveness of each hotel Threats of New Entrants (High)

Domination of standardized and economical hotels in the country

Strategic location of the hotel institutes and hotels in the country

Angeles City as highly-urbanized area

Existence of Airport, bus stations and railway stations Rivalry among Existing Hotels (High)

Large number of Star category Hotels and government and private institutions

Lower switching cost

Industry growth

Lower level of products and services variation Bargaining Power of Buyers (High)

Increasing number of competitors

Strategic location of the towns

Demand elasticity of clients and students

Competitive union

Increasing use of technology Bargaining Power of Suppliers (Low)

Availability of human resource

Existence of more than 45 colleges & universities

Existence of universities approved by UGC, AICTE etc.

A. RESULT OF THE SWOT ANALYSIS

To measure the weaknesses, strengths and opportunities in the hotel industry and hotel management

institutes SWOT analysis was conducted. The results of this strategic analysis were:

INTERNAL ENVIRONMENT

Strengths

High number of FTA‟s and festival celebrated in the country

Presence of Airports (both National and International) ,Bus stands and Railways

stations

Large number of Hotel Players

Government support

Education campaigns in the country

Improved infrastructure of institutes

Weaknesses

The launch of E-reservation systems ( Internet )

Concentration of hotels in particular parts of the city

Less number of Star category hotels



EXTERNAL ENVIRONMENT

Opportunities

Performance of the Hospitality Sector

Increasing number of Tourist arrivals every year

Increasing number of Airports, bus stands and Railway stations facility

Existence of online sites for hotel reservations.

Large number of private and government colleges and hotel management institutes in

the country along with human resource.

Increasing number of travel agents (Intermediary) Threats

Ever increasing competitors

Increasing Hotel substitutes

Security of Foreign tourists

Behavior of the citizens towards its guest in the country

Less governmental support to institutions

Traditional system of education in the country

Poor supportive infrastructure

Lack of Expert and specialized faculty

From the combined results of the Porter‟s Five Force Model and SWOT analysis, a common

inferences can be drawn in the form of the following figure which will give the complete idea of hotel

industry based on researcher‟s observation and perception. This analysis can further help to take

immediate steps in overcoming the threats and utilizing the opportunities in the sector of development

of the industry and hotel management institutes in India. The following figure can help in better

understanding of the industry and situations at hand.

MAJOR PLAYERSINTERMEDIARY

Figure 2: Competitiveness of the Hotel Industry in India

EFFECT

The figure 2 above shows that there are some major players in the India like Jaypee Palace, Mughal

Sheraton and international upcoming ones like Accor, Jumeirah etc. those who have invested or are

GOVERNEMENT BODIES IN

EDUCATION

AICTE CHMCT

UGC

PROMOTION AND

ADVERSTISING IN HOTEL

INDUSTRY

HOSPITALITY SECTOR IN

INDIA

GOVERNEMENT SUPPORT

COMPETITIVENESS

OF THE HOTEL

INDUSTRY

HOTEL ESTABLISHMENTS

GOVERNMENT BODIES IN

HOTEL INDUSTRY

TOURISM LOCAL OFFICES

TOURISM GUILD

FHRAI



interested to invest in the country and established hotels to serve the local as well as foreign tourists.

They hire hotel management students as man power to work in the hotels so that they serve the

tourists and try to match with their expectations of the visitors. The FTA‟s is growing in India and

therefore there is a scope for these hotels and their chains to flourish in the country. Subsequently, the

establishments of the hotel management institutes should be increased and the existing ones should

improve of various parameters as mentioned below to utilize its potential to the fullest.

These hotels then by their good quality services and products attract and delight the customer trying to

maintain a health long lasting relationship and hoping to see them again in their hotels. For that

promotion and advertising plays another important role.

On the other hand, the government local tourism offices, tourism guild, FHRAI etc. support the hotel

industry and track the progress and current status of the sector in the country. Whereas other central

bodies like UGC, AICTE etc. help in curriculum designing structuring providing a strong framework

to the hotel management education which is a professional course.

Prospects and Challenges

Now when India is striving to become a world‟s largest economy, the low standard of education is

acting as a barrier in its path of prosperity and development. Where in the country the percentage of

literates are less than that of illiterate population can the country attain success in its goals. With its

massive population of illiterates. Therefore the need of the hour is to develop the standard of

education in the country and providing quality education in place of educational steps taken just for

the sake of it. The human resource should be properly trained to match the level of services required

to make India, world‟s powerful economy. The government should formulate strategies and policies

keeping in mind the same aim goal to be attained.

Threats to the industry

Hospitality education was started to provide students with the art of serving the guest that arrive and

stay in the country and help country reach great heights by flourishing in this sector but unfortunately

the practices conducted in this sector have posed severe threats for the existence of these institutes

because students are leaving the country and joining hotels abroad to serve the other nations. The

entry of foreign investors in the country these universities in the name of internship collaborate with

universities abroad. The Indian talent which should serve the mother country now caters the people of

other nations. Why the skills of the youth not utilized within the country? Where is the system lacking

in retaining and training the talent? It‟s time to think over such issues which can in coming future

hinder the countries progress because the prosperity of any nation is in the hands of its youth. And not

by supplying students as cheap labors to foreign countries who have targeted Indian for the same

recognizing their skills and intelligence or even to seek education in those countries.

Challenges faced by education in hospitality industry based upon various parameters

The education system in the hospitality industry have always paid prior attention towards the supply

of workforce so that the demand of the industry could be met, but in this process they have missed out

to emphasis of the quality of the human resource. Now the need of the industry has inclined more

towards introducing innovations in the educational programmes within the country as well as

abroad.Issues that still exist in the sector are as follows:



Differences in Faculty Structures: Astonishingly, howeverfascinatinglythe pay scales, Faculty

structures and staff positions in all the Colleges, Universities and Hotel management institutes

differ within the country.

Domination of Non –Hospitality Discipline and Staff: Most of the Universities and Colleges

offering tourism and hospitality programmes do not offer only subjects related to hotel

management but other disciplines like History, Hindi, Home science, Geography etc. Also

lacking a full time faculty mainly teaching Hospitality and Tourism courses only belonging to

Assistant professor and Professor Cadre.

Dependency on International Links for curriculum and internships:TheIndian system of

hospitality education is so vast and depth that it can independently offer courses and proper

learning within its country, but its dependency on western links is difficult to overrode, which in

turn makes the students quit the institutes. Also lacking standardized curriculum except few

government bodies e.g. AICTE,IITTM and NCHMCT.

7. SUGGESTIONS

To go hand in hand with globalization and technology savvy generation the hospitality institutes

should take some steps and make corrective actions for further improvement in the way education and

skills are delivered in hospitality and tourism industry. Therefore the institutes should so design the

curriculum, provide facilities and delivery the content more as per the industry requirement allowing

the growth of professional learning. Theteaching community should engage itself more in research

and provide fruitful outputs and knowledge to the education world.Also other than monotonous and

similar daily routine methods like lecture, they should use more technological upgraded methods alike

case study method, live projects, out bound learning, simulations etc. for holistic development of

students. Accordingly, some issues on which emphasis should be laid by these institutes are as under:

Use of interactive boards in institutes than the traditional black boards to make it more

interactive and matching with the ways industry works. Now when the country has switched

from brick and mortar companies to click and click even this upgradation is necessary.

Model labs should be developed to give students real life learning experience and promote

convenient operational skills using (Personal Digital Assistant) PDA‟s, used in Restaurants

these days for data entering.

The trend and need of live learning is important therefore the concept of live kitchens and

restaurants should be introduced to acquaint the students with experience based learning.

Some changes should be made foe faculty as well to boost up their morale and for that

exchange programs should be started so that they get exposure to industry and latest trends.

Theoretical education system should be substituted with practical and experiential learning to

meet the industry requirement.

Interaction with the industry experts should be provided so to give detail knowledge of how

things work should be taught to students

Better resources, infrastructure and financial support should be provided by government to

uplift the standard of these institutions.

8. CONCLUSIONS

The hotel management institutes which are the basis of hospitality education should be supported

both professional and financially by the governmental bodies. A quality enhancement and assurance



mechanism should be developed allowing up gradation of the education system and its various

approaches and methods adopted by the institutes for rendering education to students. The need of the

hour is reinforcement of the use of technology in the teaching methods and curriculum. Research

studies should also be promoted to give better learning to students at all the levels.

The motive of this paper is not to criticize the efforts made various government bodies and private

agencies but to highlight those issues which may not appear as important as they are but should be

considered in time. Because only survival is not the aim of the industry but emerge as a leader and

bring in more employment, investment, development, recognition and economic welfare as well as

educational uplift and retention of talent in the country. Aim is to make these institutes the institutes

of next generation providing career oriented education in the dynamic environment. Therefore as

hospitality aims to make the „Stay safe‟ of people who visit the country, similarly, hospitality

education should make the stay of the students at the institutes comfortable and useful for their future.

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