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ORGANISATION STUDY AT
THE BEACH ORCHID HOTEL
In partial fulfillment for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
Submitted by
KIRAN.N
Under the guidance of
MRS.ELIZABETH
(Faculty TIM)
T.K.M.INSTITUTE OF MANAGEMENT, KOLLAM
2008-2010
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DECLARATION
I, KIRAN.N hereby declare that the project report titled as “ORGANISATION STUDY
OF THE BEACH ORCHID HOTEL , KOLLAM , KERALA is an original work done by me in partial fulfillment for the degree of Master of Business Administrationunder the University of Kerala. I further declare that this work is not partially or whollysubmitted for any other purpose and the data included in the report, collected fromvarious sources, are true to the best of my knowledge.
KIRAN.N
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ACKNOWLEDGEMENT
The success of a project depends up on frame work and co operation of the various people involved either directly or indirectly. I take this opportunity to expressgratitude to all those who helped in this project
First and fore most I thank GOD the almighty for his blessing for the successfulcompletion of this work I take the opportunity to acknowledge my indebtedness toall the persons who have helped me in successful completion of my work.
I would like to convey my sincere gratitude, and thank Mr. Rahul Bhattacharya, General
Manager of “The Beach Orchid Hotel “for allowing me to undertake this studysuccessfully in his organization. I extend my sincere thanks to Mr. Francis (PersonnelManager) and Mr. Alwyn.S (HR executive) for their support throughout my study.
I thank Dr. Jacob Thomas, Director TKM Institute of Management for his supportthrough out my endeavor.
It is my privilege to express my sincere thanks to Mrs. Elizabeth, faculty for thenecessary guidance at all levels.
I thank all the professors and teaching staff of TKM institute of management for their guidin conducting this study.
Finally I wish to thank my family and friends and express my sincere gratitude to themfor their support the eternal love, guidance, protection and blessings those haveshowered upon me throughout this Endeavour.
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CHAPTER -1
CHAPTER-1
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INTRODUCTION
1.1 Purpose of the Study
The purpose of the study is to familiarize with the industry and attain a first hand
experience of the functioning of the organization. It provides a chance to interact with the
different department and authorities in the organization, and also enable to know how the
theory learned are practically applied in an organization.
1.2 Objectives of the Study
The objectives of this organizational study are:
• To know how the theory learned are practically applied in an organization.
• To fulfill the requirement of the curriculum
• To study about the organization policies and procedures, its vision and mission
• To understand the organization hierarchy
• To study the functions of various departments
•
To study about the products and production process
• To understand the day to day activities of the departments and how they are
interrelated
• To analyze financial performance
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• To know how the theory learned are practically applied in an organization
• To evaluate the strength, weakness, opportunity and threats of the organization.
• To study the overall performance of the organization.
1.3 Period of the Study
The organization study was conducted at The Beach Orchid Hotel, Kollam for
a period of 14 days from April 13 to April 26, 2009.
1.4 Methodology of the Study
This report was prepared based on both primary and secondary data collected
from The Beach Orchid Hotel. Primary data includes data collected by means of face to
face interviews with officials in various departments and by observation. Secondary data
includes data collected from internet, company annual reports and manuals of various
departments. The data collected was analyzed and organized into details relating to each
of the department.
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CHAPTER-2
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CHAPTER 2
EXTERNAL ENVIRONMENT ANALYSIS
The external environment analysis gives the business opportunities and threats of
an organization. External factors include the socio-cultural factors, government and legal
factors, demographic factors and economic factors etc.
INTRODUCTION
Significant developments in the field of transportation, sophistication in
communications, growing importance of sophisticated information technologies in the
business world, engineering of a strong foundation for industrialization and urbanization,
increasing domination of corporate sector on the national and international economies,
emerging corporate culture and changing lifestyles paved copious avenues for the
development of hotel industry the world over. The officials on deputation, the business
magnets on trade promotion mission, the foreign representative on peace mission, the
domestic or foreign tourists interested in visiting a place for pleasure or for enriching the
knowledge bank, the international events etc. are some of the important reasons for the
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development of hotel industry. Restaurants, cafeterias and hotels offer food and lodging
services to him/her, person/persons who develop the habit of eating and staying out of
home. This principle necessitated application of management principles in the hotel
industry and the hotel professionals realised the instrumentality of marketing principles in
managing the hotel industry.
The growing significance of managerial proficiency in the hotel industry made
possible innovation in the marketing decisions . Today, the services are planned,
controlled, automated, audited for maintaining and controlling the quality. The concept of total quality management is found getting an important place in the marketing
management of hotels. The inclusion of modem amenities and facilities in the hotel
services is made possible by the leading hotel chains which has been opening new doors
for innovation and competition. It is against this background that the hotel companies, of
late, need world class professional excellence.
The emerging positive trends in the tourism industry indicate that hotel industry is
like a reservoir from where the foreign exchange flows. This naturally draws our
attention on hotel management. In addition, the domestic tourism also indicates a positive
sign of development. Thus the emerging new developments in the socio-economic-
environment open new vistas for the development of hotel industry. Of late, the
organizations engaged in the hotel business are
required to conceptualize modern marketing principles. This makes it essential that they
formulate a sound marketing mix that makes possible an optimal development of the
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marketing resources and makes the process of development cost effective. Like other
industries, the hotel industry also needs to explore avenues for innovation, so that a fair
blending of core and peripheral services is
made possible. It is not to be forgotten that the leading hotel companies of the world have
been intensifying research to enrich their peripheral services with the motto of adding
additional attractions to their service mix. It is against this background that we find the
service mix more flexible in nature- The latest developments in the field of promotion
have paved avenues for the introduction of innovative and aggressive promotional
measures: The advertising, publicity, sales promotion, word-of-mouth promotion, personal selling and even telemarketing have been
found used in the process of promoting the hotel business. The hotel tariff is found
drawing due attention of the policy makers. All of them have been found attempting for
making the pricing decisions motivational. The front- line-staff, receptionists, waiters,
housekeepers, sales executives are found responsible for offering the promised services to
the guests... The gap between the service-promised and services-offered is required to be
bridged over that draws our attention on the management of hotel personnel.
HOTEL — THE CONCEPT
At the outset, we go through the concept of hotel. The common law says that,
Hotel is a place where all who conduct, themselves properly and who being able and
ready to pay for their entertainment, accommodation and other services including the
boarding like a temporary home. It is home away from home where all the modern
amenities and facilities are available on a payment basis. The aforesaid viewpoints
regarding the hotel clarify that hotel is a public place where all possible facilities are
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made available to a person or persons who stay. The facilities like entertainment, food,
accommodation etc- thus become the core services of a hotel.
The definition presented by Stuart Mc Namara says, “Primarily and
fundamentally, a hotel is an establishment which supplies boarding and lodging not
engaged in inter-state commerces or in any intra-state commerce, competitive with or
affecting inter-state commerce for so related that the regulation of one involves the
control of other. It is a quasi-domestic institution retaining from its ancient and origin
certain traditions and acquiring in its modern development, certain statutory rights and
obligations to the public where all persons not qualified by conditions or conduct are prepared to pay for their accommodation are to be received and furnished with a room or
place to sleep or occupy if such accommodations are available with such services and
attention as are incident to their use with or without contract as to duration of visit and
which conducts within the confines of its physical locations the business of supplying
personal services of individuals for profit- Incidental to such fundamental and principal
business. The hotel may furnish quarters and facilities for assemblage of people for social
business or entertainment purposes and may engage in retaining portion of its premises
for shops and businesses whose continuity (i.e., proximity) is deemed appropriate to a
hotel.”
MOTEL — THE CONCEPT
Initially the term motel was meant for local motorists and foreign tourists
travelling by road- Basically motels serve the needs and requirements of these travellers
and meeting the demand for transit accommodation. We cant also call motel a transit
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overnight stay. Some of the important services offered by motels are parking, garage
facilities, accommodation, restaurant facilities- Motels are found equipped with filling
stations, accessories, service of elevator to the automobile entrance restaurants etc.
Motels are found located outside the city, preferably by the side of high ways and
important road junctions. The accommodation available in a motel is more in the
category of a 'chalet facility'- Which has a dining hall with fixed menu.
HOTEL AND ITS TYPOLOGY
Since time irremovable, there have been frequent changes in the concept and perception of hotel. There are a number of hotels offering different types of services. The
variation in architectural facilities, the size, the facade, the facilities and amenities can't
be overlooked. This necessitates a study of its typology.
Residential Hotel
Commercial Hotel
Resort Hotel
International Hotel
Floating Hotel
Types of Hotels:
Residential Hotel:
The residential hotels work as apartment house, often we call them apartment
hotels. The hotels charge rent on monthly, half yearly, or yearly basis. The hotels are
generally found located in big cities and towns where no meals are served to the
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customers L Initially, the residential hotels were developed in the LISA. The services
offered in the residential hotels are comparable to an average well managed home.
Commercial Hotel:
The commercial hotels are meant for the people who visit a place of trade and
commerce or business purposes and therefore these hotels are found located at the
commercial or industrial centres. These hotels focus their attention on individual
travellers and are generally run by the owners.
Resort Hotel:The resort hotel's are meant for the holiday makers, tourists and for those who
need a change in the atmosphere mainly on health ground. These hotels are found located
near the sea, mountain and other areas having an attractive landscape and healthy climatic
condition . The tourists visit hotels mainly to relax. The entertainment and recreation
facilities like swimming pool, tennis courts, boating, golf course, self-riding and other
indoor sports in addition to restaurant and cafeteria, conference room, lounge, shopping
arcade, entertainment etc., become significant in the resort hotels.
International Hotel:
The international hotels are modern luxurious hotels, classified on the basis of
international guidelines. These hotels are placed in various star categories e.g., Five-star-
deluxe, five-star, four-star, three-star, two-star, one-star. The international hotels are
mostly owned by the public companies where a board of directors is constituted for its
control. The overall management is found in the hands of senior executives.
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Floating Hotel:
The floating hotels are located on the water surface. The place are sea, river, lake.
These hotels provide all the facilities and services made available in a good hotel. In the
leading tourist generating countries of the world we find the practice of using old luxury
ships as floating hotels.
Classification on the Basis of Standard and Control
On the basis of standard and control, we classify hotels into two parts, such as
Approved and Unapproved. The approved hotels are found of international standards
where the accommodations are made available as per the criteria laid down by the
Ministry of Tourism and Civil Aviation- Since they have the stamp of official
recognition, the customers trust on them. The unapproved hotels may also offer quality
services but they lack official recognition and therefore, the customers or prospects don't
believe offering of service-promised without making any distortion.
Classification on the Basis of Official Stamp
We find a number of unapproved hotels where world class services are made
available to the tourists and even the foreign tourists prefer to stay in these hotels. Hence
the point of difference between the classified and unclassified hotels or approved or
unapproved hotels is the official stamp and recognition. We find realities in the comment,
'the unapproved hotels are clean and those who spend money from their own pockets
prefer to stay in the unapproved hotels because economy in operation is given due
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weightage. It is against this background that in the unapproved hotels the customers get
inexpensive accommodation, 4 Thus it is not right to say that the unapproved hotels don't
offer quality services. The differences are in the group of users or guests attending the
hotels. The foreign tourists in a majority of the cases prefer to stay in the approved hotels
whereas the domestic tourists in a majority of the cases prefer to stay in the unapproved
hotels.
Classification on the Basis of Star
One more basis for making a classification is the availability of star. The
Department of Tourism is found responsible for fixing the criteria for everything from the
size of the room to the qualifications of staff. On this basis, there are two important
types-classified and unclassified." The star group of hotels are included in the classified
group. Hotels having no star are deemed unclassified. The aforesaid classification makes
it clear that different types of hotels are used by the different categories of users who
make decisions on the basis of tariffs charged and services offered by the hotels.
Facilities Provided by the Hotel Industry
Accommodations:
Hospitality Industry provides accommodation to guests and visitors in the
different classifications based on the requirement and purpose of the guests stay. The
different types of accommodation facilities provided by hospitality sector in India are as
follows:
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Hotels .
A Hotel is an establishment that provides paid lodging on a short-term basis
Resorts.
A Resort is a place used for relaxation or recreation, attracting visitors for holidays or vacations.
Inns.
Inns are generally establishments or buildings where travelers can seek lodging and, usually, food and drink. They are typically located in thecountry or along a highway.
Motels.
A type of hotel consisting of a single building of connected rooms whosedoors face a parking lot and, in some circumstances a common area or aseries of small cabins with common parking.
Hostels.
Hostels provide budget-oriented, sociable accommodation where guestscan rent a bed, sometimes a bunk be, in a dormitory and share a bathroom,lounge and sometimes a kitchen.
Floatels.
Floatels are establishments that are set up on water bodies either on top of huge buoys or pillared deep into the water which provides food andaccommodation facilities to guests.
Destination Spas.
A destination spa is a short term residential/lodging facility with the primary purpose of providing individual services for spa-goers to develophealthy habits.
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Food & Beverages
Restaurants.
A restaurant prepares and serves food and drink to customers.
Café pubs.
A café or coffee shop is an informal restaurant offering a range of hot meals andmade-to-order sandwiches.
Night Clubs.
A nightclub is a drinking, dancing and entertainment venue which does its primary business after dark.
BAR.
A public house is a drinking establishment licensed to serve alcoholic drinks for consumption on or off the premises.
Travel & Tourism
Travel Agency.
A travel agency is a retail business, that sells travel related products and services tocustomers, on behalf of suppliers, such as airlines, car rentals, cruise lines, hotels,railways, sightseeing tours and package holidays that combine several products.
Tourist Packages.
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A Tourist package consists of transport and accommodation advertised and sold together by a vendor known as a tour operator.
CHAPTER 3
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CHAPTER 3
INTERNAL ENVIRONMENT ANALYSIS
ABOUT BEACH ORCHID
The Beach Orchid Hotel is the only five hotel in Kollam. It started its operations
from 1st September 2008. Beach Orchid is a luxury hotel with 95 rooms, located near the
beach offering panoramic view of the Arabian Sea from every room till its horizon. The
hotel is an ideal host to a holiday maker as well as corporates for their meetings,
conventions at a destination which is untouched by many natural resources providing
seven wonder views of the sea, beach, park, city, greenery scenary, harbour and
backwaters.
The main advantage of Beach Orchid Hotel is the facilities that they provide.it hasa 24 hour runnin restaurant “BLACK GOLD CAFÉ” which serves delicious foods and beverages to their customers at any time. Be it a marriage, holidaying family, businesstraveling, honeymoon whatever the situation is, Beach Orchid provides the maximumluxury everyone can just dream about. The facilities offered by The Beach Orchid Hotelare as follows.
Satellite TV Doctor on Call Money Exchange
Mini Bar Two Swimming Pools 24 hour in room diningElectronic Key Cards Credit Card Acceptance Concierge Service
Tea/Coffee Maker Laundry & Dry Cleaning Spa & Wellness Club
In room electronic Safe Gymnasium 24 hours on site security
Energy Saving Systems Curio Shop Wifi Connectivity
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Grooming Kits Free Breakfast for Guests Travel Desk
THE ECOTEL CONCEPT
The Beach Orchid Hotel is the first ever ECOTEL Hotel in South India. In Fact ,
there are only 34 ECOTEL Hotels in the world out of which only 3 including The Beach
Orchid Hotel are 5 star hotels with the prestigious 5 globe certification. The ECOTEL
Collection is an exclusive group of international inns, hotels and resorts that define the
concept of environmental responsibility in the hospitality industry.
The ECOTEL inspection is based on five separate inspections each with a three-
tiered Numerical Scoring System. The five inspections correspond with the five globe
awards:
• Environmental Commitment
• Solid Waste Management
• Energy Efficiency
• Water Conservation
•
Employee Education & Community Involvement
Within each globe inspection there are three levels of criteria and scoring: Primary,
Secondary and Tertiary scores. All hotels applying for certification must satisfy all of the
primary criteria before an inspection will be scheduled. The hotel must prepare an
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application including descriptions of how the primary criteria are achieved, and include
descriptions of other environmental efforts and programs that are at the hotel.
Once it is evident that all of the primary criteria have been satisfied, inspectionsare scheduled to ascertain the lodging facility's score according to the secondary criteria.
Inspections both guided by hotel staff and unguided are completed throughout the
lodging facility to determine if the environmental programs that the hotel reports are
actually part of the day-to-day operations. Each department or function area of the hotel
(i.e., main restaurant kitchen, banquet kitchen, room service kitchen, front desk and office
area, executive office areas, etc.) is inspected and scored individually. A percentage score
is calculated for each department inspection, and each department must score above a set
level to be awarded the certification. If any department scores below that level, but above
a minimum threshold, the tertiary criteria (described herein) can boost that department's
score in order that the hotel may achieve the award.
The tertiary criteria are most easily described as a bonus system. The hotel receives
bonus points for environmental programs discovered in operation that are not part of the
primary criteria, and are considered to be above ordinary levels of environmental
responsibility.
Based on the hotel's numerical scoring rate in each category, the lodging facility will
receive from zero to five ECOTEL Globes, corresponding to each of the five
cornerstones. Hotels that achieve the globes qualify as ECOTEL certified hotels for a
period of two years, but must agree to re-inspections (announced or unguided) at any
time during that period. If the hotel falls short of achieving certified status, the HVS
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International inspection team will prepare an action plan to help management make the
changes necessary and prepare for re-inspection.
Members of the ECOTEL Collection realize a number of benefits. Primarily thevalue of the business will improve due to increased exposure in the marketplace, higher
staff morale, and better control of operating expenses. The ECOTEL Collection of hotels
caters to a variety of groups, including not only traditional ecotourists, but also discerning
business travelers with interest in the environment, companies with advanced
environmental programs as part of their own corporate cultures, corporate meeting
planners, travel agents, eco-friendly vacationers, and of course business, travel, and
environmental media.
Because of the integrity of the ECOTEL certification and inspection system, travelers and
the media rely on this endorsement of a hotel's environmental performance. When
presented properly, the certification can be a powerful marketing advantage and
motivator of sales.
ECOTEL hotels should follow a 4 bin waste management system wherein wastes should
be disposed off separately according to their nature. The four bin systems followed are:
Black Bin - Food & Wet garbage,
White - Plastics, bottles, tins, cans,
Red - Cigarette buds, oil paper, grease, broken glass (Non Recyclable)
Green - Paper, Cardboard (Recyclable)
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OWNERSHIP & MANAGEMENT
The ownership and management of The Beach Orchid Hotel is different. The
Hotel is owned and invested by Mr Sreekumar who is the managing director of “Quilon
Hotels and Resorts’ . The hotel is managed by a group calledCONCEPT
HOSPITALITY LTD. is a conception of a team of hotel consultants and experts
formulated in July 1996 in Mumbai. CHL sets up and operates Restaurants, Hotels, Clubs
and Resorts for different owners. This submission outlines the strength of CHL's
Management System, incorporating the decentralized profit orientated management
philosophy which has consistently produced the best possible returns to hotel owners and
the highest levels of guest satisfaction. It details CHL's sales and marketing network, and
the "state of the art" teamwork - which is the ability to work together towards a common
vision. It illustrates how CHL has earned a reputation as an industry leader in setting upand helping to certifying environmentally friendly hotels, with a full range of training
programs, each of which has been adapted for the various cultures and environment,
within which it operates the hotels.
CHL has had a presence in India for over 10 years and so understands and has adapted its
systems and management to the values and culture of India. CHL does not believe in the
total imposition of western systems and management concepts, but an integration of these
with the prevailing culture to maximize both employee productivity and guest satisfaction
to achieve the highest possible returns for the property owner.
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Mission Statement of Concept Hospitality Ltd.
To create a group of Corporate Hotels, Service Apartments and Resorts, which are
efficient and friendly and also environmentally sensitive.
Strategies of Concept Hospitality Ltd.
CHL have developed strategies to help hoteliers/entrepreneurs increase the value of their
investments and this has paid rich dividends as more and more travellers are becoming
conscious and choose to patronize CHL group of hotels, which are environmentallyfriendly and most of them certified as Ecotel Hotels. Environmentally sensitive travellers
are the fastest growing segment in the Travel Industry.
Management of Concept Hospitality Ltd.
Operational Structure :
The Chairman - Mr. Param Kannampilly, who is an experienced Hotelier, a Fellow of the
Institute of Hospitality, London and also a Fellow of the World Academy of Productivity
Sciences, heads the Company.
The organizational philosophy of CHL is based on a ‘hands-on’ corporate office
providing support services in the field of Operations, finance and administration,
technical services, human resource development, sales, marketing, product development,
MIS and reservations. Specialist consultants are added where necessary.
Managed by CHL Executive Chairman – Mr. Param Kannampilly, Managing Director -
Mr. Manoj Bhatia, and it’s CEO - Mr. Pushpinder Kumar, properties under CHL’s
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management are broken down into strategic areas, managed by Vice Presidents, who are
responsible for generating profit with defined guidelines. The VP’s are in turn supported
by area specialists in financial control, human resources development, sales and
marketing.
Divisions of Concept Hospitality Ltd.
Hotel Consultancy
Providing consultancy in hospitality industry including preparation of
feasibility studies, conceptualisation of hotel projects and implementation of
same, preparation and implementation of marketing program, recruitment of staff
etc.
Hotel Management
Concept Hospitality Ltd. is staffed by hotel professionals skilled at
identifying profit potential and extracting it for the benefit of the owner. Concept
Hospitality Ltd. will not manage the day-to-day operations of the hotel; it will
supervise the management company, provide the highest quality pooled
professional resource which is capable of discovering new profit opportunities,
cost savings and operational advantages. Concept Hospitality Ltd. will achieve theowner's aims and at the same time maintain a harmonious and professional
relationship with the operator.
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Marketing
Positioning a new hotel in the market place is a very important aspect of
marketing. With spiraling prices and huge costs of development, it has become
mandatory to implement innovative ideas for marketing a hotel. It is equally
important to understand that the development itself is a long process and as such
the hotel industry has a long gestation period. To partly fund the project cost,
some of the projects are designed as multi use projects in which a certain percentage of the hotel rooms are pre sold, so that the owners have some capital.
The marketing division has devised a unique strategy to market the rooms in
advance and thereby raise funds required for implementation of project and also
underwriting occupancy. Concept Hospitality Limited is aware of the fact that
hotels generally work at 70%-75% occupancy. It is thus imperative to
presell/underwrite 25-30% of the room inventory to ensure 100% occupancy. The
marketing plan has received approval from all professional quarters. The
company has entered into an understanding with Himco (India) Limited for
marketing its hotel project.
Tie up with HVS eco service
Concept Hospitality Ltd. has entered into a MOU with HVS Eco
Services (the certifying agency for environmentally sensitive hotels) to facilitate
growth of Ecotels in Asia and particularly India over the next few years. Ecotel is
the `Hallmark of Environmentally Sensitive Hotels'. Concept Hospitality Ltd. will
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operationalise the certification and market the brand. In this process, four
properties (Hotel Rodas, Mumbai; Lotus Suites, Mumbai; Uppal's Orchid, New
Delhi and Jungle Lodges Resorts, Bangalore - A Govt. of Karnataka undertaking)
have already gone in for the Ecotel certification.
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CHAPTER 4
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Sales &Marketing Department
Sales and marketing is in charge of sale of the hotel services like rooms and
banquet halls. This department tries to find out the customer need and tries its level best
to satisfy the guests, so that they have a good service and would like to repeat it whenever
needed.
HIERARCHY
Sales Manager (Mr. Sreejith)
Sales Executive (Mr. Denver)
Sales & Marketing Executive (Miss Doni)
Functions of Sales & Marketing Department
Market Research
Product Development
Promotion
Selling
Monitoring & Reviewing
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The main objective of people in the marketing and selling department is to inform
maximum number of people about the hotel. Being a new Hotel in town , it will take its
own time to gain recognition of the people. The marketing department is striving hard to
inform people about the hotel and also to bring people to the hotel. They are sure that if a
customer comes to The Beach Orchid Hotel once, then the hotel’s service and facilities
will surely make them come again.
MARKETING VS SELLING THE HOTEL SERVICES
According to the concept and perception of hotel marketing, it is right to mention
that marketing and selling of hotel services can't be tantamount. In selling, the key areas
are advertising including other aspects of marketing communication like telephones,
letters, and face to face communication. Often, the hoteliers explain their marketing
strategies by showing computer booking services and the advertising campaigns planned
for the coming tourists. As per the continuous circle, it is essential to keep intoconsideration the research required for data collection and on the basis of a sound
marketing information system transforming the data into information for making right
marketing decisions. In addition, it is also essential that the strategies adopted by the
competitors are given due weightage, specially while making and practising the strategic
decisions, The threats and weaknesses in the markets are identified, if we have an indepth
information regarding the competitors. The pricing decisions are also significant keeping
in view the seasonal fluctuations which play a significant role in the hotel industry.
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MARKETING POLICY
The major difference in marketing hotel services as against other consumer
products, is that after a customer has spent money in hotels, he/ she has nothing
substantial to show except bills for his/ her money as benefits as compared with buying
tangibles, such as television and refrigerator. But if the rooms of a hotel remain vacant, it
is unlikely that the same can be sold next day. While selling the hotel services, we cover
the limited areas but while marketing the hotel services, we find unlimited areas. If we
talk about marketing the hotel services, we include in its purview everything and almostall the dimensions directly or indirectly helping in promoting the business and this
necessitates formulation of a sound marketing mix, such as an aggregation of different
submixes like product, promotion, pricing, place and people. We manage services, we
manage promotional activities, we manage pricing, we manage distribution process and
we manage people serving as hotel personnel.
USERS OF HOTEL INDUSTRY
In marketing hotel services, it is important to know about the different types of
users availing the services with diverse aims and objectives. This would ease 'the task of
marketers specially while studying the behavioural profile. Below given is the
classification of different categories of domestic and foreign users.
Domestic – Pilgrims, Students, Officials, Film stars, Intellects, Sportsmen, Business
Executives, Tourists.
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Foreign - Political Representatives, Trade Representative, Educationists, Tourists,
Sportsmen, Cultural Representatives, Pilgrims, Business Executives.
It is natural that we fined a difference in the intensity of both the categories of uses.
Domestic Users : In the group of domestic users, the different categories are pilgrims
visiting the sacred places, students on educational tours, officials on deputation, political
representatives, film stars on location shooting. Knowledge seekers on developing their
credentials, sportsmen playing national games. The domestic users stay in hotels with adifferent motive. We find a change in the level of domestic users. Generally the domestic
customers pay less attention on value and more on price, A majority of the domestic users
are found price-sensitive and therefore the hoteliers are supposed to make pricing
decisions motivational. Kollam being known as the land of cashews and a place which
has a lot of cashew factories and tradings, The Beach Orchid Hotel tries to capture the
attention of the cashew devolepers and cashew factories owners to have an association
with the hotel. But there are two other luxury hotels in kollam namely Hotel Nani and
Hotel Nila Palace which are owned by cashew owners. So most of the functions and
meetings of cashew owners go the competitiors way.
Foreign Users : In the group of foreign users, we find political representatives on peace
mission, trade representatives on business promotion, educationists, sportsmen, cultural
representatives, film stars, pilgrims etc. These categories of foreign tourists visit-hotels
with diverse aims and objectives. They normally prefer to stay in the classified hotels
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where the services are found standardized. We also find cases where foreigners stay even
in the unclassified hotels- To be more specific the existing world wide economic
depression has made even the foreign users sensitive to price and this makes it significant
that policy makers and the senior executives assign due weightage to this new
development.
MARKET SEGMENTATION FOR THE HOTEL
To make the marketing decisions effective, it is essential that the hotel
professionals segment the market in such a way that the task of identifying the changing
needs and requirements of different segments is made easier.The Beach Orchid Hotel
segments their customers on the basis of their earnings and status. Segmentation proves
to be an important commandment of marketing since this helps in making and innovating
the marketing decisions. All the users, of course have their own likes and dislikes because
the food habits are different the drinking habits are different; the expectations are
different- The kids, teens, youths, men, women, married and unmarried, youth and grey,
technocrats and bureaucrats, business executives and political representatives stay in
hotels with diverse motives. Segmentation makes the ways for knowing their uniqueness
and formulating the sub mixes in such a way that an optimal development of marketing
resources is made possible. It is against this background that segmentation is done for the
hotel organizations.
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MARKET TARGETING OF THE HOTEL
The Beach Orchid Hotel, being a five star hotel is obviously expensive
than other range of hotels. So, this hotel cannot target the lower strata of the society as
they will not able to afford it. The main target customers are above middle class strata of
the society. But the main marketing strategy of The Beach Orchid Hotel is to attract
corporates. Financial Companies are institutions where atleast one meeting will be held
every month. So the marketing team of The Beach Orchid Hotel is trying their maximum
to have an association with the financial companies in and around the city and providefacilities and services to them at a reasonable price. They also target the cashew industry
because there are many cashew facories and cashew tradings being going on in kollam
and if beach orchid succeeds in having an association with the cashew devolepment
authorities, they will surely get a lot of customers.
MARKET POSITIONING OF THE HOTEL
The Beach Orchid Hotel is positioned in the minds of the customers as a luxury
hotel with excellent service and luxury which is very expensive, not affordable for the
lower strata of the society and as a status symbol also. i.e. functions and banquets in TheBeach Orchid Hotel will be conducted only by upper class people and is not for the
middle class and below middle class people.
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THE PRODUCT MIX
Levels of Service:
Level 1: Core/Generic Product
This is the basic service product. In a hotel , the food and accommodation services
offered to the guests by way of the hospitality and behaviour of the employees of the
hotel is the core product or service.
Level 2: Expected Product
This is the basic product and minimum purchase conditions that must be met. In
Beach Orchid, in addition to the core product some other supplementary services like
complementary buffet breakfast, free pick up and drop at railway stations and airports
etc.
Level 3: Augmented product
In this, along with the basic and minimum offering, there is something differentwhich enables the product or service to be differentiated from that of the competitors. InBeach orchid Hotel, the hotels rooms are designed in such a way that all rooms are seaview rooms. This factor distinguishes Beach Orchid from other their competitors.
Level 4. Potential product:
The potential product contains potentially feasible features and benefits that play asignificant role in holding and attracting the customer. These features and benefits areuseful or likely to be useful to the customers. Fro example, in Beach Orchid Hotelfacilities like spa, ayurvedic massage, electronic locker in every rooms are potential products of the hotel.
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PROMOTION MIX
For successful marketing, it is only not sufficient that the hotels concentrate on
the quality of services but it is also impact generating that they promote their business in
such a way that their prospects come to know about the quality to be offered to them as
hotel customers. This focuses the beach orchid’s attention on innovative promotional
measures. It is against this background that the hotel talks about the promotional
measures. There are a number of components for promoting the business and it is hoped
that a professionally sound employee would blend the different constituents in such a
way that effects are proactive but the process of persuasion is cost-effective. Thecomponents like advertisement, publicity, sales promotion, personal selling, word-of-
mouth promotion and telemarketing need due attention of hotel professionals.
The success rate of a hotel is virtually coiled in the essence of transforming the
occasional visitors into the habitual visitors because this helps substantially the process of
increasing the occupancy ratio. The sensitivity is vigorously influenced by creativity.
This makes it essential that the decision makers in the hotel industry make sincere efforts
to formulate sound promotional strategy. No one can't deny the fact that creation of
awareness has a far reaching effect on the formulation of promotional strategy. If
scientifically formulated, optimally blended promotional measures are used by the
professionally-sound and personally-committed hotel personnel, the rate of successwould be found satisfactory. The marketing team of beach orchid hotel finds a number of
instances to quote that even quality services failed in creating and expanding market
because the promotional measures failed in sensitizing the prospects. This draws the
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The broadcast media can also be used for advertising the hotel services but if we
make a comparative analysis of this media with others, the effects are found of low
intensity. The hotel professionals are supposed to select a suitable time for transmission
when a majority of the target audience are supposed to be close to the radio set. We find a
particular season during which the pilgrims prefer to visit the sacred places and the hotels
located in that catchment area need to advertise on sensitive hours. The messages, themes
need rural orientation in the very context. It is essential that the advertising professionals
are well aware of the nature and requirements of target audience.
Publicity :
Another dimension of promotion known as an unpaid form of persuasive
communication also plays an incremental role in promoting the hotel business. While
publicizing, thy hotel professionals play a significant role by managing the media
personnel or publishing news items related to the hotel. Public relations activities thus
become instrumental in the process of publicising.
In the hotel industry, public relations activities are more instrumental in informing
the clients about the outstanding merits of different services offered. The specialties of
hotel are presented in such a way that the prospects are motivated to avail of the facilities
offered by a particular hotel- It also helps in creating an atmosphere where the users at
large are convinced. Besides, it also helps in collecting the information on the preferences
of the prospects. It is right to mention that we find a few or even a very few consumer
industries to be benefited substantially by public relations as the hotel industry. The vast
majority of hoteliers welcome publicity not only because it is free but because they know
that most people buy a magazine or a newspaper to read the articles, news and editorials,
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rather than the advertisements unless they are looking for a product or are interested in
booking a holiday or a restaurant or a convention hall or a wedding hall.
In The Beach Orchid Hotel, there are a number of events which are transmitted to
the local press, such as the appointment of a new chef, list of cocktails, menus for certain
functions held at hotel, particulars of certain important conferences or exhibitions to be
held, menus for special days of the year, photographs of staff dressed up for special days
and well-known people staying in the hotel. Journalists always prefer to visit a hotel as
they get their full enjoyment free of cost. Beach Orchid gives journalists a write-up of
their story and preferably a story with a photograph. For this, the marketing people of The Beach Orchid Hotel are eyeing on journalist and offering them good services from
the hotel so as to have a good relationship between the hotel and the journalist. Even
though this may seem unethical, but this is one of the finest eye-catching free publicity.
In the public relations, the activities range from a press release to newspapers and
magazines, especially to create the interest of prospects in a holiday package in a good
resort of a country. The holiday package tours and trips on familiarity with a tour spot,
organised by tour operators for the travel agents help them in enriching their knowledge
and making the travelling decisions. The Beach Orchid Hotel has recently launched the
monsoon package where a couple can stay for 2 nights and 3 days at the hotel and can
avail all the facilities of the hotel including the buffet lunch and dinner. They also get an
ayurvedic massage for 3o minutes every day plus a boat trip in the beautiful backwaters
of ashtamudi.
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There are a number of media sources available for publicity. Illustration, copy and
the spoken word are the primary publicity to media which are grouped into the following
heads:
• Printed Publicity
• Advertising Publicity
• Projected Publicity
• Structural Publicity .
• Personal Publicity
Thus it is right to say that public relations activities occupy a significant place inthe promotion mix of The Beach Orchid Hotel.
Sales Promotion :
In Beach Orchid, the marketing people feels the need of offering incentives for
promoting the business. Like other organisations, the hotels and hotel companies also
offer incentives to the users vis-a-vis to the personnel and organizations evincing interest
in promoting the business. The Beach Orchid Hotel considers sales promotion a
temporary device to increase their business with certain objectives. It is a short term
activity seeking to boost sales during peak demand periods to make it sure that the firm
obtains its market share and helps launch a new product or support an ailing or modified
services. These facts make it clear that sales promotion is complementary to advertising.
Sales promotion and advertising objectives do not conflict but reinforce one another.
This tool of promotion is designed to appeal particularly to those customers who
are found sensitive to price. It is quite natural that the tools of sales promotion attract
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buyers even having little brand loyalty. In the hotel business, we find perishability a risk
and this factor is also given due weightage while offering off-season accommodation at
low price tags.
The Marketing People in The Beach Orchid Hotel feels that repeated advertising
and competitive market conditions two important reasons for the growing significance of
sales promotion in the hotel industry. The techniques may be directed by the hotel staff,
tour operator and the travel agents including the users of the services. They find tools of
sales promotion directed at the hotel staff, tour operator and travel agents and guests or clients.
Tools of Sales Promotion
The following tools of sales promotion are some of the sales promotion
techniques followed in The Beach Orchid Hotel
Brochure :
It is a device to stimulate customers and motivate them to visit a hotel and
avail of the benefits offered by the management of the hotel It is a detailed
publication helping hotel companies in promoting their business. The guests,
clients get detailed information from the brochure.
Folder :
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We find folder the most commonly used sales promotion tool. In this
respect, it is essential that folders have an impressive appearance in totality.
The particulars are required to be in brief but clear. The hotels can use folders
for promoting the business.
Packaging :
We call packaging an attractive wrapper of product. When we talk about
packaging in the hotel industry, our emphasis is on the outer cover and
internal layout of brochures and leaflets.
Attraction leaflets :
This is exclusively meant for presenting a view of the different theme parks,
museums, amusement parks, outstanding points of attraction in the hotels or so.
Merchandising :
It is found helpful in promoting mass-market- This tool is found significant
to restaurants and bars. The merchandising involves displaying of food stuffs and
drinks in the right location.
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Direct Mail Materials :
The sales letters are found to be a direct mail material which can either be
used alone or in combination with brochures and folders.
Display Materials :
In the materials to be displayed at sensitive points are posters, dispensers,
exhibits etc. Beach Orchid uses these materials in the offices of the travel agents,
tour operators or at the places where tourists come, such as tourists spots, resorts,
airports, railway and bus stations.
Word-of-mouth Promotion :
The Beach Orchid Hotel considers word-of-mouth promotion very much
instrumental in sensitizing the prospects. In the hotel industry, it is much more significant
that the satisfaction of users is give top priority- Of course, there are a number of
components to promote sale but it is right to mention that other constituents may be
ineffective but the word-of-mouth can't. The word-of-mouth promoters are those who are
satisfied with the services of hotels or are motivated to motivate the prospects. No one
can't deny the fact that one bad meal would often do more damage by word of mouth than
fifty good meals. The Hotel’s guests take a good meal for granted but don't forget to
narrate to their friends and relatives about a bad meal or the bitter experiences of menu-fatigue. This speaks of the fact that word-of-mouth promotion can show more negative
effects and therefore the hotels and hotel companies need to assign due weightage to this
component of the promotion mix. Of course, the dissatisfied group of users are free to
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complain to the hotel management but often they don't act. We find them close-mouthed
and stiff-lipped till they make a good-bye and after going back they try their best to think
twice before coming to that hotel again. Moreover they start narrating to their friends and
relatives their bitter experiences of menu fatigue even without taking a rest. It is against
this background that high-level functions, refined behaviour and world class services by
the hotel personnel carry some meaning. These services pave the ways for oral
communication and recommendation. In the Beach Orchid Hotel if the guests has some
serious complaints, the general manager personally meets him and apologizes for the
inconvenience caused and also provides the guests a half kg cream cake as an item of apology free of costs.
Personal Selling:
Nothing happens unless anyone sells something and nothing is sold unless the
buyers are motivated to purchase things of their choice. The oral representation in
conversation bears the efficacy of transforming the motivation into persuasion. Thus
persuasion is one of the main thing in energising the process of marketing. Personal
selling has proved to be an important constituent of promotion. There is no doubt in it
that the goods or services are found half-sold when their properties are well told. The art
of telling -and - selling is personal promotion which depends upon the personal
excellence.
The hotel business is substantially influenced by personal selling- The personal
selling brings considerable momentum to the process of boosting the hotel business. The
feedback received from the sales force engaged in the process helps marketers in
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designing the development plans. Besides, the transmission of first hand information is
also an outstanding contribution of this tool of promotion. Service does not mean
servility- The Phrase 'the customer is always right', applies specifically to the hotel
industry. The sales personnel are required to be friendly in dealings and cheerful in
expression. They are required to be helpful and patient and above all, they should appear
satisfied and work towards generating more -satisfaction to customers.
Telemarketing :
The Marketing people in the hotel cant negate the fact that even in the hotel
industry, the telemarketing can play an incremental role. It is against this background that
the instrumentality of telemarketing in promoting the hotel business. The fact that the
instrumentality of telemarketing is substantially influenced by the skill of telemarketers
vis-a-vis the instruments used in the process. A person with high communicative ability is
to perform as a telemarketer who bears the responsibility of answering to the questions
and queries of customers, prospects regarding the business transactions. In the hotel
industry, the telemarketing can be helpful in promoting the business since the tour
operators, transport operators, travel agents and the users develop a number of confusions
and misunderstanding about booking, confirmation, cancellation, availability of package
tour, a change in the hotel tariff or so. If they have misunderstanding or they are
confused, it is pertinent that the telemarketers remove their misunderstanding by
answering to their questions suitably. It is in this context that the beach orchid hotel
marketing experts find telemarketers very much instrumental in activating the business
transactions and that’s why they select their telemarketers very carefully.
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PRICE MIX
Like other organisations, the hotels also need to make pricing decisions. The
existence and prosperity of hotels and hotel companies are substantially influenced by the
quality of pricing decisions. Of late, there is world-wide economic depression and the
trend is not likely to be reversed in the near future.
The pricing decisions are beset with many problems. No doubt in it that fixing
the hotel tariffs is just like pricing other goods and services. At the same time, it is also
right to mention that the hotel professionals need more excellence while fixing the hoteltariffs since the services are found of perishable nature. In addition, the seasonal
fluctuation in demand and increasing intensity of competition also complicate the task of
professionals. The Beach Orchid Hotel needs world class excellence while making
strategical and tactical pricing decisions- It is in this context that they go through the
problem of price mix. Managing relatively volatile demand around a relatively fixed
capacity of highly perishable product supply is identified as one of the principal
characteristics of the hotel business.
Pricing menus and drinks in hotel food and beverage areas to obtain maximum
sales and profits is a very complex subject. While formulating the pricing strategy, the
beach orchid hotel professionals takes into account a number of factors, specially the
diverse nature and character of dishes, involvement of costs and spending power of the
customers. They also considers the economic criteria, target average spends, target
covers per meal period, current menu and drink prices.
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Tariff of rooms in The Beach Orchid Hotel
ROOM TYPE Rooms Single Bed Double Bed
Available
Deluxe Room 56 5950 * 6450*
Premium Rooms 30 6950 * 7450*
Executive Suite 7 8950 * 9450*
Royal Suite 1 15950* 15950*
Honeymoon Suite 1 18950* 18950*
* plus taxes.
PLACE MIX
The choice of location is, of course, the most important business decision. This is
due to the fact that a well located business can often be sure of an adequate now of
customers to its catchment area. In the case of The Beach Orchid Hotel, which is situated
near the kollam beach has a great advantage of being located near the beach. Kollam
Beach is one of the most favourite hangout place for majority of the people in kollam.
This helps the beach orchid hotel to get more beach going customers. Apart from it , all
the rooms in The Beach Orchid Hotel are sea facing rooms which is the Unique Selling
Point of the Hotel.
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PEOPLE MIX
In an age of sophisticated information technologies when we have been making
superhighway for communications, there is a basic change in the expectations of users.
The personnel serving the hotel companies no doubt depend substantially on the
instrumentality of information technologies but here it is , also important that hotels and
hotel companies assign due weightage to the development of personnel. This phrase is
meaningful not only for the technologies but even for the people who manage them. It is
against this background that the marketing experts the world over have been found
making a strong advocacy in favour of an ongoing training programme for the personnelservicing the hotel companies.
In this context, the prime focus of The Beach Orchid Hotel is on the front-line-
personnel working in hotels in different capacities. The receptionists, the porters, the
house-keepers, the waiters and waiteresses and even the doormen play an incremental
role in promoting the business. The sales executives, the marketing managers, the senior
executives bear the responsibility of managing the front-line-personnel in such a way that
the promised services reach to the ultimate users without making any distortion. Even
though they are having proper education and knowledge regarding the services they need
to offer but still The Beach Orchid Hotel organize for them an ongoing training
programme, refresher courses, capsule courses, lecture programmes, specially related to
the behavioural profile. They find several cases to quote that even the five star hotels
where the users stay with high expectations and a minor mistake committed by the
receptionists or the housekeepers has resulted in a bigloss. The front- line-staffing
particular need to identify the changing levels of expectations of users and in a majority
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of the cases they virtually fail in doing such. A gap is generated between the quality-
promised and the quality-offered. If the hotel personnel prove to be high-performers,
personally-committed, professionally-sound, value-oriented, aware of the behavioural
management familiar with the aesthetic management they can satisfy the users even if the
sophisticated technologies develop a fault. This makes it essential that the hotel personnel
are made available an ongoing training facility efficacious in enriching their professional
excellence. The cases of menu fatigue, power interruption, mismanaged bedrooms,
function rooms and restaurants, indecent behaviour of doormen, poor information by the
receptionists and enquiries are minimised considerably by assigning due weightage to performance-orientation.The Beach Orchid Hotel Team believes that technologies in no
case can replace the high-performers.
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HUMAN RESOURCES MANAGEMENT
In hotel industry the job of a HR manager can be compared with the job of
a music conductor, whose job is to instruct and direct all of the various musicians so that
they can perform well together. But before a conductor can direct a beautiful
performance, all of the individual musicians must be able to play their instruments well.
What kind of performance could one can expect if the violinists did not know how to play
their instruments or the flutists could not read music?
So it is in the hospitality industry, before a manager can direct and shapeemployee’s individual contributions into an efficient whole, he or she must first turn
employees into competent workers who know how to do their jobs. Employees are the
musicians of the orchestra that the members of the audience-the-guests-have come to
watch performance. If employees are not skilled at their jobs, then the performance they
give will get bad reviews. Just as an orchestra can have a fine musical score from a great
composer and still perform poorly because of incompetent musicians, so a hotel can have
a finest standard recipes, service procedures and quality standards and still have
dissatisfied guests because of poor employee performance.
That is why properly managing human resources is so important. No other
industry provides so much contact between employees and customers and so many
opportunities to either reinforce a positive experience or create a negative one.
As in the five-star hotel and five-star deluxe hotel there are around lots of
employee are involved in different jobs in different fields there is dire need to look and
control on them. No doubt different department’s heads are present to look their
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department employee, but HRD is a place, which supervise and effectively communicate
with these departments head and communicate with the top management. Thus their
function is very large and diverse as compared with respect to different department’s
heads.
HUMAN RESOURCE PLANNING IN THE BEACH ORCHID HOTEL:
The total strength of the organization is 250. They have 12 departments in the
hotel with only 5 people in the HR department catering to the manpower needs of the rest
11 departments. They have 70-75% employees in the operations department including
services and housekeeping.
They prepare a budget at the beginning of the year. Taking into consideration many
factors such as high attrition rate of 50%, competition from other high paying hotels,
Manpower planning is done in such a way that there is maximum recruitment in the
months of May, June, July as they can hire freshers from hotel management institutes and
also by considering the fact that there is maximum attrition in the month of August,
September and October.
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For people who work in contact with the customer the recruitment process begins
with a telephonic interview by the HR manager. If the prospective candidate is found to
be eligible to the particular post, then he will be called for a direct interview where he
will have be interviewed by the interview panel of the general manager, personnel
manager and the head of the respective department where his service is needed. He will
also be asked to do his work practically by offering service to the customers which will
be supervised and evaluated by the interview panel.
Beach Orchid recruits people mainly freshers from hotel management institutesThey prefer taking in-house people for senior position. The criteria for recruiting are 1st
and foremost attitude and then they look for personality.
TRAINING & DEVELOPMENT
They conduct training and development as and when required when there is a need. The
Training & Environment Manager Mr. Kapilan S is responsible for the training and
devolepment activities inside the hotel .They senior level management has a training and
development session whereby they go on a 3 day training session where they have ice-
breakers and team development sessions so that there is no inter-department rivalry.Every
month a training calendar is prepared wherein the whole schedule of the month is made
including what all things are to be done, how & where the training is to be given and such
other things. Fire drills, evacuation, bomb threat, first aid, various leadership games,
environment training etc forms part of the training process.
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I NDUCTION & O RIENTATION
After selection there is an induction. Beach Orchid conducts an induction program
once every month, usually in the beginning of the month. Generally the inductions are
done during this time only for all new employees. This is a common induction which is
done for every new employee whether a chef or a manager.
This induction gives a basic introduction to the company and the job. It gives
basic details on the company and it is followed by a games session which is an ice
breaker between the new employees. This is done as a team building operation.
P ERFORMANCE APPRAISAL
Promotion and performance appraisal takes place every 3 months where by the
head of the department and the immediate higher-ups evaluate the performance of the
employee by filling in a form which is then evaluated by the HR department. This form
has various factors which are as basic as how many times in the quarter the employee has
been late to issues like whether an employee has be involved in any conflict with a
customer or fellow employee. Since there are various departments like housekeeping,
back office, front desk, sales and marketing, kitchens, etc. the performance appraisal
changes depending on the department.
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The performance appraisal form in Beach Orchid has 4 parameters. They are as follows:
Peers Stroke:
This section consists of the positive strokes given by the peers/colleagues for a
particular employee.
Green Stroke:
Since Beach Orchid is a ECOTEL (environment friendly hotel), it has certain
responsibilities to the environment. Green Stokes are given to those persons who
are environment conscious and if he does some act voluntarily for the sake of th
environment , he will be given a green stroke.Customer Stroke:
This is considered as the most valuable stroke. If a customer says something good
about a particular employee, then he gets a green stroke.
Negative Strokes:
Negative Strokes represents the bad marks of an employee. If he enters into a
conflict with another employee, comes late or leaves early to/from the
organization, gets a complaint from a customer etc. he will get a negative stroke.
At the end of every month , the person who is having the most number of
positive strokes and the least number of negative strokes will be selected as the employee
of the month. The person who comes next to the employee of the month in stroke points
will be the runner up employee of the month. This will make him work harder in order to
achieve the employee of the month next time.
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EXIT INTERVIEW
It is conducted by the HR department as they feel that their employees are their
biggest assets and they would do their best to retain them. It is a formal process and isdocumented for records.
TIMINGS: 9:00 AM to 6:00 PM
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FINANCE & ACCOUNTS DEPARTMENT
The Accounts and Finance Department of the hotel deals with mainly the hotel
revenue expenditure profits. This department deals with the work of correcting and
checking all the accounts from th various departments of the hotel. The total number of
staffs in the accounts department is 5.
HIERARCHY
Chief Accountant (Mr. Sasidharan S)
Finance Manager (Mr. Sajin P K)
Food & Beverage Controller ( Mr. Ani S)
Accounts and Finance Assistants (Miss. Sumi & Mr Manuel)
The activities of the accounts section of the Beach Orchid Hotel starts with
the morning meeting every day with all department heads and the general
manager. There are 2 accounts maintained by the hotel with the Union bank of
India. They are:
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Receipts a/c
Payment a/c
The accounts section updated the old Tally 7 accounting software with Tally 9.2
now. All the accounting transactions are done through this software. The accounts section
also uses the centralized software program “HOTSOFT” which is commonly used in the
hotel industry. The accounts departments gets a copy of the bill when a transaction in the
hotel occurs.
Shares & Debentures
.The Beach Orchid is a priate limited company registered under the
companies act of 1956. The hotel has only issued a small part of its equity shares to
outsiders. Majority of the shares (more than 90 %) are held by mr. Sreekumar and his
family. No debentures are yet issued . The Beach Orchid Hotel uses most of its Managing
Director’s (Mr. Sreekumar) funds. Other sources of funds are a small portion from bank
borrowings and issue of a small portion of the equity shares to 4 outsiders but they are
not in the director board. The company has not yet distributed any dividends to its
shareholders.
Balance Sheet
A Balance Sheet is a document prepared to know the financial position of an
organization for a particular period of time. Due to the organization policies and for other
security reasons , the accounts department of the beach orchid hotel was not willing to
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share their balance sheet, trial balance and other financial statements for my organization
study. Henceforth no data about the liquidity position and other accounting ratios could
not been found out due to the lack of data.
Files Maintained in the Accounts Department
Debtors Correspondence
Purchase Order
Daily Receiving report
Management Information Systems
Budget File
Company File.
TIMINGS: 9:00 AM to 6:00 PM
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PURCHASE & STORES DEPARTMENT
The purchase and stores department at th hotel doeas all the purchase for the
kitchen department and also all the other departments and stores them at the purchase
department and stores department. When any of the departments of the hotel requires
things like stationary, vegetables, fruits, meat, spices, ice – creams, soft drinks etc they
would contact the purchase and stores department in order to acquire them. It is o be
noted that all the purchases of the department will be done only through the purchase and
stores department. Even for buying things like computer, television, furniture and other
items in the hotel room , the purchase is done through the purchase department.
HIERARCHY
Purchase & Stores Manager (Mr. Sasidharan Pillai)
Purchase & Stores Assisstant (Mr. Nithin Babu)
Purchase & Stores Supervisor (Mr. Anand.S)
Utility Boy
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SECURITY DEPARTMENT
After the terror attacks on the TAJ PALACE HOTEL , Mumbai on 26-11-
08 , the customers had shown great concern in security of the hotel. The beach Orchid is
guarded by not less than 20 securities at any time. The chief security offices is Mr.
Surendhran who had served the kerala police for more than 3 decades the crime branch
cell.
HIERARCHY
Chief Security Officer
Assistant Security Officer
Guards Watchmen
SHIFTS
1st Shift: 6:00 AM to 3:00 PM
7:00 AM to 4:00 PM
Breakshift i.e. 7:00 AM to 11:30 AM and 7:00 PM to 11:30 PM
2nd Shift: 3:00 PM to 12:00 PM
Night Shift: 10:00 PM to 7:00 AM
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OPERATIONS
Some of the modes of operations in the The Beach Orchid Hotel are as follows:
Reservation
This is the important section in the front office department. the reservation
assistant handles the reservation. They have a major role to play in achieving the
maximum sale of rooms. It works on a general shift from 9:00 AM to 6:00 PM
The faxes and telexes first comes to the business centre and then forwarded to the
reservations, then the reservations assistant goes through it and does the process
accordingly. If those dates are all sold out for the day then the reservationists sends a
reply saying that she is unable to confirm the booking and takes it on wait listed. If
somebody calls up for a booking, the reservationists there looks at the room availability
chart and then into the computer for booking details and tells the person about the status
of his/her room. Then the reservationists takes details such as name, company, type of
room, number of people, date of arrival and departure, bill paying procedure, contact
number, name of the person calling and the special instructions if any. After this the
reservationists enters all these details in the computer. The computer is linked to the main
computer in credits department and reception. Later the reservationists categorizes
whether the guest is a v.i.p, v.v.i.p. etc.
The reservation forms are arranged date wise for the particular month and month
wise for the future months of the year. Everyday in the evening, the reservation assistant
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does follow ups for the next day. This involves calling up the booker and reconfirming
the booking. After this he takes a point out of the next days arrival list and sends it to the
general manager, food and beverage manager and to room service. In this , arrivals of
v.i.p’s and v.v.i.p’s and special instructions are highlighted. This contains the details such
a type of room, departure date, name of the person making the booking and contact
number.
Guest Arrival
When a guests arrives The Beach Orchid Hotel, the bell boy goea to the porch, picks up the guest’s luggage, brings it to the bell desk, puts a hotel tag and waits for the
guests to finish the registration process. The guests takes the key from the reception and
gives it to the bellboy to carry the luggage. The bellboy acts as a lift attendant and escorts
the guests to its room. He opens it and explains the guests about the facilities and the
operation of switches in the room. He also gives necessary information about the hotel to
the guest.
Guest Departure
At the time of checkout, the guest gives a call to the bell desk and a bellboy is
send to the room to bring the luggage down. The boy checks for any loss of the guests
property in the room and in case any damage of property in the room. After all these the
bellboy locks the room and gets the luggage down to the belldesk and puts the hotel tag.
He makes a departure errand card and takes it to the reception along with the key. The
reception signs for the key when the guest clears their bills, the cashier signs the
departure errand card. Then the boy loads the luggages on the guest transportation if any.
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Process of how food order is carried out.
Guests call the room service.
The order taker greets the guest and the guest places order and if possible the order taker does suggestive selling.
The order taker waits for the guest to put the phone receiver first and then the order taker puts the receiver down himself.
The order taker simultaneously feeds the guest order into the computer and a 4 copies print out is taken.
The Order taker gives one copy of kitchen out ticket (KOT) to the kitchen and rings tothe room service attendant.
He hands over the other 3 copies of the KOT to the room service attendant and explains
the order with the room number.
The Room service attendant goes through the order thoroughly and moves towards thekitchen for the food pick up.
The room service room attendant picks up the food, shows to the captain for approval andtakes the food to the guest’s room and serves it.
The order will be served to the guests within 45 minutes from the time of order.
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House keeping Pantry
This is the store room for the house keeping department. here they keep the guests
staionaries, flower vases, guest toilet supplies, new pillows, mattress etc. the house
keeper goes to all the floors to take floor counts and qrites it on the store requisition slip
of the floors and brings it to the desk control and makes a consolidated stores requisition
and submit it to the executive house keeper for approval. Next day with the floor house
keepers the room boys take the stores to all the floors.Every month the store requisition is
made for the stores and after the executive housekeepers approval, it is send to different
companies for the items. The hotel has contract with different companies for different
items. For example, soaps are bought from lux, paste from close up and so on
Lost & Found Procedure
This procedure is only for guest’s possessions which are left in the room or any
other premises of the hotel. When such items are found by the staff of the housekeeping
department or any of the hotel staff, the finder brings the possession to the housekeeping
department for entry in the register. The register contains details such as name of the
finder, date, room number and the finder’s signature. All these details are written on a
slip and attached with the possession before keeping it in the lost and found cupboard. In
the end of every month, the security officer comes and checks how many possessions of
guests are left in the lost and found cupboard.
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Engineering and Maintenance Department
The engineering and maintainence department is the department responsible for
maintainence and upkeep of all the furniture, fixtures, electrical equipments and other
electronic installations with in the hotel.
HIERARCHY
Chief Engineer
Supervisor
Engineering Assistance/Maintenance Personnel.
Engineering assistance and maintenance personnel consists of the following
personnel:
Air Conditioning Technician
Plumber
Electrician
TV operator
Carpenters
Masons
Painter
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The engineering and maintenance department is also responsible for the supply of
hot and cold water to rooms, provide adequate lighting, fan and electricity round the
clock and also does the control of video and other various channels.
The engineering and maintenance department has also the equipment with
the departments itself:
1. Central Air Conditioning Plant
2. Hot water systems 24 hours, a day running in diesel.
3. Generators for a continuous current supply.
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CHAPTER 6
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CHAPTER 6
CONCLUSIONS
SWOT ANALYSIS
A SWOT analysis is a close look at a company’s strengths, weakness,
opportunities and threats in terms of important factors such as the economy, the product,
staff resources, competition, technology, legislation, consumer trends, environment, and
etc. It is a common tool used in organizational planning and strategy development. The
basic assumption of a SWOT Analysis is that organizations must align internal activities
with external realities to be successful.
Strengths and weakness are essentially internal to the organization and relate to
matters concerning resources and programs within the company whereas opportunities
and threats are external factors confronting a company such as new technologies,
competition etc. he four factors can be described as follows:
Strength: What an organization can do
Weakness: What an organization cannot do
Opportunities: Potential favorable conditions for an organization
Threats: Potential unfavorable conditions for an organization.
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STRENGHTS WEAKNESSES
> Prime Location of the Hotel. >Intense competition from nearby hotels.
> Only Five Star Hotel in Kollam. > Domination of Cashew Industry
Owners.
> All Sea Facing Rooms. > Beach available near is dangerous
for swimming.
> Ownership and management is different. > Since ownership and management is
So there is less chance of beuracratism. Different, there are differences in
Opinion.
> Tie ups with corporates. > The Current Recession is having a
negative impact.
> Availability of Employees cheaply. > Attrition rate is very high.
OPPORTUNITIES THREATS
> Rising Income of the people. > Event Risk due to terror attacks.
>New Business Opportunities. > Increasing Competition
> Open Sky Benefits >Tsunami and other Natural calamities.
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SUGGESTIONS & RECOMMENDATIONS
• The Hotel faces severe competition in the city hence it should develop a new
strategy not only to increase its customers but also to provide good services at
cheaper costs compared to its competitors.
• Try to inform more people about the hotel irrespective of income group.
• Should try to maintain more contacts with the corporates.
• The hotel should conduct events like DJ Party, food festival etc in order to attract
more customers.
• While recruiting hotel management students for training, it should be noted that
they should not come to direct contact with the customers.
• There should be a stipulated time shift for the staffs. The current scenario is that
employees are working fore more than 15 hours a day. This practice should be
changed.
• There should be some committee to protect the rights and duties of the employees
in the hotel.
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CONCLUSION
The organization study conducted at “The Beach Orchid Hotel” enabled me to
get hands on experience of the overall functioning of an organization and to translate
academic knowledge into practical experience. The visits to various departments were
very informative and added to my awareness about the organizational atmosphere. Face
to face interviews with the hotel’s officials helped to understand the vital role played by
each department and their functioning. The Hospitality industries are very important in
providing needed employment and necessary treatment in many areas. With its rich
reserves, hi-technology, vast experience of its motivated employees and deep
commitment to quality, The Beach Orchid Hotel is all set to take a place of pride in the
twenty first century as the preferred source for the best hotels in the country.
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BIBLIOGRAPHY
www.wikipedia.com
www.managementparadise.com
www.a2zmba.com
Hospitality and Travel Marketing- Alaistair M Morrison
Hotel Marketing- S.M. Jha
Marketing for Hospitality and Tourism- Philip Kotler, John Bowen & James
Makens.
Hotel & Food Service Marketing- Francis Buttle
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