Jatashankar R. Tewari Oxford

Assistant ProfessorDepartment of Hotel Management

School of Tourism, Hospitality and Hotel ManagementUttarakhand Open University

Haldwani, Uttarakhand

Jatashankar R. Tewari

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Features of the Book

Learning Objectives

An outline of the main concepts and ideas is included to indicate what you can expect to learn from each chapter.

Illustrations

Concepts are illustrated by suitable fi gures, formats, examples, and tables, whereas pictures are interspersed in the text for better compre-hension of the reader.

LEARNING OBJECTIVES After studying this chapter, the reader will be able to understand the following: Front office department and its functional areas Sections and layout of the front office—reservation, reception,

information, cash and bills, communication, and uniformed services Organization of the front office staff—division of labour and span of

control Duties and responsibilities of some front office employees—front office

manager, reservation assistant, receptionist, information assistant, telephone operator, bellboy, and door attendant

Qualities of front office personnel

Front O� ce Organization 4

Front offi ce is the interface between a hotel and its guests. On their arrival at a hotel, guests fi rst meet the front offi ce staff and develop an impression about the level of services, standard, facilities, and hospitality of the hotel. They interact with the department throughout their stay for any kind of information and help. As they are responsible for services such as reservation, reception of guests, assignment of rooms, and settlement of bills, the front desk personnel have the ability to multitask and work in a fast-paced environment while maintaining a high level of guest service and professionalism.

This chapter is aimed at providing an understanding of the organization of the front offi ce department. Here, we will study the various sections of the front offi ce and their functions, the organization of the front offi ce staff, and the qualities, attributes, duties, and responsibilities of front offi ce personnel.

FUNCTIONAL AREAS The front offi ce personnel are mostly in direct contact with the guests throughout their stay. Guests contact the front desk to book a room; check-in; inquire about hotel services, facilities, and about the city or surrounding areas; and fi nally, to settle their bills and check out from the hotel. Apart from these services, the front desk also provides services such as handling guest mails and messages, maintaining guest accounts, paging guests (locating guests within the hotel), arranging travel services, and various other services as per the guest’s requirement.

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Front Offi ce Communication 101

and misunderstanding among employees. Employees feel demoralized, which leads to a reduction in the productivity of the organization. Effective listening is a very important component of the open-door policy adopted by many organizations. When employees are encouraged to freely walk into the FOM’s or General Manager’s room and speak up, they do not harbour negative feelings. Effective listening, where both the management and the employees listen to each other patiently, will improve working conditions and nurture harmony and cohesion in the organization. This will boost the morale of the employees, resulting in increased productivity. Table 5.1 gives tips on effective listening.

Some letters sound alike when spoken and also over a telephone line, especially when two people have different accents. In these cases, the message might not be clear and the people might have a hard time understanding each other. In case you are not sure of the spelling of the guest’s name as per the booking agent’s pronunciation, you can ask the booking agent to spell it phonetically. For example, the booking agent would like to make a reservation in the name of Suzanne Claude. You think it is spelt as ‘Susan’ and verify the exact spelling by repeating it phonetically, ‘May I spell the guest name—S for sierra; U for uniform; S for sierra, …,’ and the booking agent would correct you and say, ‘No, it’s Z for zulu; A for alpha, ….’ This eliminates the need for any clarifi cation, avoids confusion at the time of registration, and also prevents duplicate bookings for the same guest under different spellings. The use of phonetic alphabet makes sure that you are heard correctly the fi rst time. It is very useful in situations when the telephone lines have some disturbance or in the case of international calls where you cannot afford to go back and forth trying to fi gure out what the caller is saying, as the calls are expensive and the guest might get irritated at repeating the same information over and over again.

Written Communication This communication is by means of written symbols (either printed or handwritten). It may be in the form of letters, e-mails, reservation confi rmations, hotel circulars, memos,

Dos Don’ts

Be mentally prepared to listen. Pay undue emphasis to the vocabulary as you can use the context to understand the meaning.

Evaluate the speech, not the speaker. Pay too much attention to the accessories and clothing of the speaker.

Be unbiased to the speaker by depersonalizing your feelings.

Prepare your responses while the speaker is speaking.

Fight distractions by closing of sound sources. Form preconceptions and prejudices.

Be open-minded. Get distracted by outside infl uences.

Ask questions to clarify and corroborate thoughts. Concentrate too hard.

Paraphrase from time to time. Interrupt too often.

Send appropriate non-verbal signals from time to time. Show boredom even to an uninteresting speaker.

Table 5.1 Tips on effective listening

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Front Offi ce Accounting 251

•••••

The paid-outs are made from the cash bank that is maintained by the front offi ce cashier. A proper authorization should be taken from the lobby man-ager before making the VPO. To make a paid-out, one should adhere to the following:

•the guest.

•details of services paid for (as shown in Fig. 11.2 ).

•••

Miscellaneous Charge Voucher A miscellaneous charge voucher is prepared for the payment of miscellaneous services and facilities such as laundry, health club, fi tness centre, and beauty salon. The guest verifi es and signs the miscellaneous charge voucher, which is sent to the front desk cashier for posting the charges into the guest folio. The format of a miscellaneous charge voucher is shown in Fig. 11.3 .

Figure 11.1 Types of vouchers

Visitor’s paid-out

Types of vouchers

Cash receipt voucher

Travel agent voucher

Guest allowances

Miscellaneous chargevoucher

Telephone callvoucher

Commission voucher

Restaurant/Bar check

Figure 11.2 Visitors paid-out voucher

Hotel ABCVisitors paid-out voucher

Date: Room no. :

Name of the guest: Room account no.:

Explanation Charge

` Paisa

Rupees (in words) Total:

Signature of the Recipient Approved by Signature of the Cashier

Evaluate the speech, not the speaker.

Be unbiased to the speaker by depersonalizing your

Get distracted by outside infl uences.

Concentrate too hard.

Pay too much attention to the accessories and

Prepare your responses while the speaker is speaking.

Form preconceptions and prejudices.

Get distracted by outside infl uences.

Hotel ABC

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Classifi cation of Hotels 39

a break from their weekly routine. Taj Fort Aguada Beach Resort, Goa and Wildfl ower Hall, Shimla in the Himalayas are some of the resort hotels.

Airport hotel Airport hotels are situated in the vicinity of airports and other ports of entry. Offering all the services of a commercial hotel, these hotels are generally patron-ized by the passengers who need a stopover en route their journey. Hotel Centaur, Mumbai and Radisson, New Delhi are some of the airport hotels.

Motel The word ‘motel’ is formed by merging two words ‘motor’ and ‘hotel’. They are located primarily on highways and provide modest lodgings to highway travellers. The development of extensive road networks in the early 20th century led to the increase

in people travelling in their own vehicles. This phenomenon was quite common in the American and European continents. Travellers who were travelling in their own vehicles needed a neat and clean accom-modation for the night. They also required garages, along with refuelling facilities for their vehicles. In the year 1950, the concept of motels came into existence to meet the requirements of such highway travellers. A motel (see Fig. 2.5 ) offers facilities such as accommodation, food and drinks, garage facilities, a parking lot, and refuelling for vehicles. Figure 2.5 Motel

Figure 2.6 Floatel

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66 Hotel Front Offi ce

Food and Beverage Service The F&B service department is among the major revenue producing departments of a hotel. This department looks after the service of food and drinks to guests. The sections of the department are illustrated in Fig. 3.6 .

The restaurants, coffee shops, bars, and other outlets such as poolside barbeques and kiosks take care of the food and beverage requirements of the hotel’s resident and non-resident guests.

The room service section looks after the provision of food and drinks to guests in their rooms. Though restaurants and bars remain in operation during specifi c working hours, coffee shops and room service may be available round the clock.

Banquets and outdoor catering sections take care of functions and programmes both within the hotel premises and outside it.

The organization structure of the F&B service department is shown in Fig. 3.7 .

Kitchen The kitchen supplies cooked food to the F&B service department in hotels. The sections of the department are illustrated in Fig. 3.8 .

Figure. 3.5 Organization chart of the housekeeping department

ExecutiveHousekeeper

Floorsupervisor

Public areasupervisor

Linen roomsupervisor

Uniform roomsupervisor

Laundrymanager

Headgardener

Roomattendants

Attendants Assistants Assistants Washerman Gardeners

Figure 3.6 Sections of food and beverage service

Coffee shops

Food and beverage service

Room service

Poolsidebarbeques

Outdoorcatering

Restaurants

Bars

Banquets

Kiosks

Figure 3.7 Organization chart of the F&B service department

Food and beveragemanager

Restaurantmanager

Captains

Bus boys

Room servicemanager

Room serviceorder taker

Stewards

Banquetmanager

Banquetcaptains

Stewards

Organization chart of the F&B service

Banquetmanager

Banquetcaptains

Stewards

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Yield Management and Forecasting 321

Let us suppose the Cricket World Cup fi nal match is being organized at Mohali’s (town adjacent to Chandigarh) PCA stadium in the month of February. This is the peak season to visit north India. Moreover, during the month of February, Chandigarh celebrates ‘Festival of Gardens’—a three-day extravaganza that is fl ooded with various cultural programmes. During this period, hotels also sell packages for marriages.

From the aforementioned situation, we can expect large number of people to visit Chandigarh such as the following:

• People (Indians and foreigners) to watch the cricket match • Tourists, as it is the peak season for visiting the place • People to visit or participate in the Festival of Gardens • People to attend marriages

This will lead to a high demand for rooms in Chandigarh during the aforementioned period. In this situation, hotels may not offer any discount on room tariff and will prefer to charge the rack rate as they are confi dent that the demand for rooms would be more than the supply of available rooms.

During the lean time or off-peak season when the occupancy is low, the supply of rooms is more than its demand. In this situation, hotels offer discounted rates to attract more number of guests who otherwise might not have planned to stay at that hotel or visit that city. Hotels may offer off-season rates, package plans, special offers, etc. to attract more business.

A hotel normally offers discounts as follows:

• Rack rate (no discount): Offered to walk-ins during peak season • 10–20 per cent discount: Offered to travel agents, groups, regular guests • 30–40 per cent discount: Offered to large travel agents and major companies • 50–60 per cent discount: Offered to very large multinational companies, holiday

planners, and conference and convention planners

Duration Restriction or Duration Control Duration restriction is another tool of yield management. Duration control places time constraints on accepting reservations, to protect suffi cient space for multi-day

requests. For example, a hotel may refuse a reservation request for one-night stay, even though rooms are available for that night, as accepting such a reservation will block occupancy on adjacent days. Hotels located in a city generally witness lean occupancy during weekends and high occupancy during weekdays. Figure 16.2 shows the graphical representation of the occupancy trend in a downtown hotel during a week.

The situation is reverse for resort hotels at vacation destinations. Figure 16.3 shows the graphical representation of the occupancy Figure 16.2 Occupancy trend in a downtown hotel

Mon Tue Wed Thu Fri Sat Sun

20

40

60

80

100Occupancy


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Pay undue emphasis to the vocabulary as you can use

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Pay undue emphasis to the vocabulary as you can use the context to understand the meaning.

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the context to understand the meaning.

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manager, reservation assistant, receptionist, information assistant,

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manager, reservation assistant, receptionist, information assistant, telephone operator, bellboy, and door attendant

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telephone operator, bellboy, and door attendant

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Summary

Each chapter provides a recapit-ulation of key ideas and concepts that are discussed in each section for easy retention.

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Total Quality Management 397

Enhances guest satisfaction When the quality of products and services meets or exceeds guest expectations, it results in guest satisfaction. The purpose of TQM is to enhance the quality dimensions of products and services, thus increasing the guest satisfaction.

Improves employees’ satisfaction People who produce quality products or deliver quality services are recognized and awarded by organizations. The creation of quality products itself increases the morale and satisfaction level of the employees. Every creator feels a sense of satisfaction when the quality of their products or services is appreciated by others. Thus, TQM helps to improve the satisfaction levels of employees.

Increases productivity The productivity of organizations increases as the quality of the products produced is able to satisfy the needs and expectations of the customers. The demand for quality products is always high and this exerts pressure on the organizations to balance the supply by increasing production. Hence, the practice of TQM leads towards increased productivity.

Makes communication effective The practice of TQM makes communication clear and unambiguous. Thus, it maintains effective communication within as well as outside the organization.

Increases profi tability The improvement in quality, increased participation of employees, and effective communication result in meeting and exceeding consumer satisfaction. This leads to an increase in the demand for products, which increases productivity and profi tability of the venture.

Increases market share The rightful market share is the total market that is constituted by a particular organization in a competitive set. The actual market share is the total amount of business obtained by the hotel from the total pool of business. If a hotel is able to suppress the business of other hotels in the competitive set by virtue of its quality, its market share will increase. Thus, TQM practices lead to an increase in the market share of organizations.

Quality is the strict and consistent adherence to measurable and verifi able standards to achieve uni-formity of output that satisfi es specifi c customer or user requirements. It is an important aspect of the products and services off ered by a hotel. Total quali-ty management (TQM) is a management philosophy wherein every individual in an organization is moti-vated to work towards a common vision, in an ideal environment, continuously improving one’s perfor-

mance, resulting in better business opportunities. Product or service, process, organization, leader-

ship, and commitment form the fi ve pillars of TQM. The practices in TQM include Japanese 5-S practice, business process re-engineering, quality control cir-cles, kaizen, and benchmarking. There are several benefi ts of TQM, such as improving quality, enhanc-ing guest satisfaction, and increasing productivity and profi tability.

SUMMARY

KEY TERMS

Business process re-engineering (BPR) It is a thorough rethinking of all business processes, job defi nitions, management systems, organi-

zational structure, workfl ow, and underlying assumptions and beliefs.

Kaizen It is a Japanese term for a gradual

Key Terms

A list of all important terms has been provided at the end of every chapter for easy recapitulation.

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Yield Management and Forecasting 333

KEY TERMS

Differential pricing It is a pricing strategy wherein a hotel charges different rates for the same product from different people.

Forecasting It is the prediction of future happen-ings based on a precise analysis of data available.

Hurdle rate It is the lowest rate for a given day. Overbooking It is a situation wherein a hotel

books more rooms than the total inventory of rooms.

Potential revenue It is the maximum revenue that can be generated from the operation of any business.

Understay It is a situation wherein a guest departs from the hotel before his/her expected date of departure.

Upsell It is the act of trying to persuade a cus-tomer to buy a more expensive item (room cat-egory) or to buy a related additional product at a discount.

Wash-out factor It is the last-minute cancella-tion made by travel agents.

Yield It is the ratio of total output generated to actual potential.

Yield management It is a technique, based on the principle of demand and supply, used to maximize the revenue generation of any hotel—by lowering prices to increase sales during low-demand periods and raising prices during high-demand periods.

EXERCISES

Review Questions

Multiple-choice Questions 1. The actual revenue produced divided by poten-

tial revenue is called (a) yield (b) ADR (c) ARR (d) ARG

2. The lowest rate for a given date is known as (a) hurdle rate (b) rack rate (c) present rate (d) none of these

3. Which of the following is required for making an accurate forecast? (a) Percentage of no shows

(b) Overstay percentage (c) Understay percentage (d) All of these

4. Room rate achievement factor is (a) actual average rate/potential average rate (b) potential average double rate—single rate (c) double occupancy room revenue/number of

rooms (d) none of these

5. Closing or restricting discounts to generate more revenue is a tactic followed during (a) high-demand period (b) low-demand period (c) both (d) none

revenue. The airlines industry pioneered the concept of yield management. These techniques are applica-ble to all highly perishable products and services. Yield management is a pricing strategy based on the prin-ciple of demand and supply. When demand exceeds supply, the prices are raised and when supply exceeds demand, the prices are lowered to attract more busi-

ness. In hotel industry, the yield management tools are selective overbooking of rooms, diff erential pricing, and duration restriction. Forecasting provides infor-mation on projected revenue generation for a specif-ic duration. In the later part of this chapter, we have discussed how forecasting for room availability is done and the future of yield management.

Case Studies

Small case studies at the end of chapters are provided to enhance critical thinking and relate the concepts to real-life situations.

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Room Tariff 141

1. Differentiate between: (a) Rack rate and corporate rate (b) Tour group rate and group rate (c) Advance purchase rate and package rate

2. Why does a hotel have different types of rates? Explain the advantages and disadvantages of having different types of room rates and room categories.

Critical Thinking Questions

Visit three hotels in your town and compare the following: 1. Number of guest rooms 2. Facilities and services offered by the hotel

3. Rack rates 4. Volume guarantee rate 5. Weekday and weekend rates 6. Package rates

Project Work

CASE STUDIES

1. Hotel Plaza is located in the heart of the city. The fact sheet of the hotel is as follows:

•double, and 25 suites)

•banquet halls, and one convention centre with the capacity to accommodate 1500 persons in theatre style.

•of 15 luxury cars and 10 luxury couches.

•but it suffers a lean occupancy during weekends.

•

Room rent on EP

Tariff structure is as follows:

S. no. Room type Rate

1 Single `4500.00

2 Double `6000.00

3 Suite `14,500.00

Extra bed @ `1000.00

As a front offi ce manager, plan the following rates for your hotel and assign reason for the same.

(a) Corporate rate (b) Volume guarantee rate (c) Government rate (d) Weekday/Weekend rate (e) Group rate (f) Package rate

2. The following information is available from Hotel Aravali.

Hotel Aravali has 400 rooms with an average occupancy of 65%.

• `25,00,00,000 and the total loan raised is `10,00,00,000. Thus, the total investment is `35,00,00,000.

•

•

Operating expenses (in `)

Rooms division 85,00,000.00

Telephone expenses 75,000.00

Administrative expenses 35,00,000.00

Payroll and other expenses 55,00,000.00

Advertisement and promotion 25,00,000.00

Power and fuel 1,85,000.00

Repair and maintenance 70,000.00

Taxes and insurance (in `)

Real estate and property tax 75,000.00

Management fee 95,000.00

Corporate taxes 22,50,000.00

Insurance of building and other assets

18,00,000.00

Review Questions

Stimulating questions, such as multiple-choice questions, state true or false, match the following, discussion questions, and proj-ect work, which aim at testing readers on their understanding of the topics are provided at the end of chapters.

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Budget It is the money that is available to a per-son or an organization, and a plan of how it will be spent over a period of time.

Budgetary control It refers to the establish-ment of budgets relating to the responsibilities of the executives to the requirement of a pol-icy, and the continuous comparison of actual with budgeted results, either to secure objec-tive of that policy or to provide a basis for its revision by individual action.

Cross selling It is the practice of promoting related products or services to a guest who is considering buying something.

Demand It is a want which is backed by the ability and willingness to pay for the product.

Guest history card It is maintained by the hotel and includes information about the guest such as date of birth, marriage anniversary, previous visits, preferences regarding type of room, and food.

Marketing It is the management process for identifying, anticipating, and satisfying cus-tomers’ requirements profi tably.

Need It is a positive, motivational factor that compels action for its satisfaction.

Overbooking It is a situation when the hotel accepts more confi rmed reservation than the number of rooms available for sale on any par-ticular date.

Place or Distribution mix It is the location of the market and means of distribution used in reaching it. It refers to the accessibility of products to end users.

Price mix It is the market value, or agreed exchange value, that will purchase a defi nite quantity, weight, or other measure of a good

or service. Hotels, especially large properties, often develop variable-rate policies to meet the needs of the different market segments.

Product It is a good or service that is the end- result of a process and serves as a need or want satisfi er. It is usually a bundle of tangible and intangible attributes that a seller offers to a buyer for purchase.

Promotion mix It is the advancement of a product, idea, or a point of view through publicity and/or advertising. Promotion mix includes all the means through which hotels communicate with their prospective guests.

Prospecting It refers to estimating and preparing a list of probable companies and individuals who might be contacted for getting business.

Quality It is the totality of the features and characteristics of a product or service that bear on its ability to meet customers’ needs.

Satisfaction It is an expression of a customers’ approval that a product’s performance meets his/her expectations.

Suggestive selling It is the practice of infl u-encing the purchase decision of the guest by suggesting the various facilities available at the hotel.

Upgrading It refers to convincing the prospec-tive hotel guest to book a room of higher rate at the time when they call for room reservation or at the time of registration

Value It is the extent to which a good or ser-vice is perceived by its customers to meet their needs or wants, measured by the customers’ willingness to pay for it.

Want It may be understood as the way how one expresses or communicates his/her need.

KEY TERMS

EXERCISES

Review Questions

Multiple-choice Questions

1. Which of these are the 4Ps of marketing? (a) Product, price, place, promotion (b) Print, price, place, promotion

(c) Product, people, print, promotion (d) Product, price, print, people

2. The summary of all the budget prepared in an organization is called


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Hotel Aravali has 400 rooms with an average

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It is the prediction of future happen-ings based on a precise analysis of data available.

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University It is the lowest rate for a given day.

It is a situation wherein a hotel

University It is a situation wherein a hotel

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Potential revenue

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Potential revenue It is the maximum revenue

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any business. Understay

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Understay It is a situation wherein a guest

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It is a situation wherein a guest departs from the hotel before his/her expected

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departs from the hotel before his/her expected date of departure.

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date of departure.

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It is a pricing strategy

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Upsell

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For Students

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Travel and tourism is one of the largest service industries in India. According to the United Nations World Tourism Organization, India witnessed huge international tourist arrivals in 2015 with increase of 4.4 per cent over the previous year to reach a total of 1184 million. Similarly, a 4.3 per cent growth was seen in 2014. This trend clearly indicates that the tourist arrivals are increasing since post-crisis year 2010, hence, the future seems to be optimistic for the travel, tourism, and hospitality industry.

The hospitality industry is the superstructure for tourism development. Accommodation units such as hotels, motels, and resorts along with food and beverage service units such as restaurants, bars, and dhabas are created to cater primarily to the needs of tourists. Rise in infl ow of international tourists as well as domestic tourist traffi c will defi nitely have a positive impact on the hospitality industry. The Ministry of Tourism, Government of India, has set the target to increase India’s share in international tourist arrivals from 0.6 per cent to 1 per cent by the year 2016. This may help create millions of jobs in tourism and hospitality sector along with the demand for huge numbers of rooms for tourists. This suggests that tourism and hospitality industry will emerge as one of the major sectors in the Indian economy, leading to gigantic requirement of trained professionals in this fi eld.

The front offi ce department of the hotel is where all the guest activities—from processing the reservation requests to handling room keys to settling their bills—takes place. Hence, it plays a pivotal role in the effi cient functioning of the hotel, and is among the major revenue-generating departments.

The revised edition of this book is tailored to enhance the skills and abilities required by budding professionals in the fi eld of hotel front offi ce. Apart from the mainstream hotel management courses, the book is equally suitable for tourism, skill training, and learners of Hunar s e Rozgar Tak programme launched by the Ministry of Tourism to bridge the gap between the industry demand and trained professional supply.

New to this Edition

• Includes new sections on cash and credit control, training and development of front office staff, and role of front office personnel in maximizing revenue

• Provides new multiple-choice questions at the end of each chapter to facilitate understanding of the readers

• Covers new multiple-choice questions for practice and flashcard glossary on the Students’ Resource website

Organization of ContentThe content of the book has been divided into three parts.

Part I Hospitality Industry

Chapter 1 introduces the hospitality industry, whereas Chapter 2 discusses the classifi cation of hotels, including the various hotel tariff plans. Chapter 3 covers the hotel organization.

Preface to the Second Edition


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The revised edition of this book is tailored to enhance the skills and abilities required by budding

Oxford

The revised edition of this book is tailored to enhance the skills and abilities required by budding professionals in the fi eld of hotel front offi ce. Apart from the mainstream hotel management

Oxford

professionals in the fi eld of hotel front offi ce. Apart from the mainstream hotel management courses, the book is equally suitable for tourism, skill training, and learners of

Oxfordcourses, the book is equally suitable for tourism, skill training, and learners of

programme launched by the Ministry of Tourism to bridge the gap between the industry demand

Oxfordprogramme launched by the Ministry of Tourism to bridge the gap between the industry demand

and trained professional supply.

Oxford

and trained professional supply.

New to this EditionOxford

New to this Edition

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arrivals from 0.6 per cent to 1 per cent by the year 2016. This may help create millions of jobs in tourism

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arrivals from 0.6 per cent to 1 per cent by the year 2016. This may help create millions of jobs in tourism and hospitality sector along with the demand for huge numbers of rooms for tourists. This suggests that

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and hospitality sector along with the demand for huge numbers of rooms for tourists. This suggests that tourism and hospitality industry will emerge as one of the major sectors in the Indian economy, leading

Universitytourism and hospitality industry will emerge as one of the major sectors in the Indian economy, leading

to gigantic requirement of trained professionals in this fi eld.

Universityto gigantic requirement of trained professionals in this fi eld.

The front offi ce department of the hotel is where all the guest activities—from processing the

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The front offi ce department of the hotel is where all the guest activities—from processing the reservation requests to handling room keys to settling their bills—takes place. Hence, it plays a

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reservation requests to handling room keys to settling their bills—takes place. Hence, it plays a pivotal role in the effi cient functioning of the hotel, and is among the major revenue-generating

University

pivotal role in the effi cient functioning of the hotel, and is among the major revenue-generating

The revised edition of this book is tailored to enhance the skills and abilities required by budding University

The revised edition of this book is tailored to enhance the skills and abilities required by budding professionals in the fi eld of hotel front offi ce. Apart from the mainstream hotel management Universi

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professionals in the fi eld of hotel front offi ce. Apart from the mainstream hotel management

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as hotels, motels, and resorts along with food and beverage service units such as restaurants, bars, and

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as hotels, motels, and resorts along with food and beverage service units such as restaurants, bars, and are created to cater primarily to the needs of tourists. Rise in infl ow of international tourists as well

Press are created to cater primarily to the needs of tourists. Rise in infl ow of international tourists as well

as domestic tourist traffi c will defi nitely have a positive impact on the hospitality industry. The Ministry

Pressas domestic tourist traffi c will defi nitely have a positive impact on the hospitality industry. The Ministry

of Tourism, Government of India, has set the target to increase India’s share in international tourist

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of Tourism, Government of India, has set the target to increase India’s share in international tourist arrivals from 0.6 per cent to 1 per cent by the year 2016. This may help create millions of jobs in tourism Pre

ssarrivals from 0.6 per cent to 1 per cent by the year 2016. This may help create millions of jobs in tourism and hospitality sector along with the demand for huge numbers of rooms for tourists. This suggests that Pre

ssand hospitality sector along with the demand for huge numbers of rooms for tourists. This suggests that

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viii Preface to the Second Edition

Part II Front Offi ce Operations

Chapter 4 enables the readers to understand the organization of the front offi ce department. The different aspects of communication and its importance in the front offi ce department is dealt in Chapter 5. Chapter 6 deals with room tariff in a hotel. Chapters 7 and 8 discuss guest cycle and room reservations, and registration, respectively. Chapter 9 focusses on various guest services such as message handling, safe deposit locker, and wake-up call, and managing guest complaints.

Chapters 10, 11, and 12 covers check-out and settlement, front offi ce accounting, and night auditing, respectively.

Chapter 13 includes the safety and security system in a hotel, and how the front offi ce staff can ensure the safety and security of guests.

Part III Front Offi ce Management

Chapter 14 discusses the application of computers in the front offi ce department of a hotel. Chapter 15explains the various methods of evaluating the performance of a hotel, such as occupancy ratios, revenue per available room, and market share index. Chapter 16 covers the application of yield management and forecasting in the hotel industry. Chapter 17 introduces the readers to the basic concept of marketing, and how the hotel staff can use marketing and sales techniques to boost business for the hotel.

Chapter 18 explains the human resource aspects such as recruitment, selection and training, and the HR challenges faced by the hospitality industry.

Chapters 19 and 20 discuss the environmental concerns of the hotel industry, and the benefi ts and use of the total Quality Management (TQM) concept.

Online ResourcesThe following resources are available to support the faculty and students using this text:

For Faculty

• PowerPoint Presentations • Instructor’s Manual• Multiple-choice Questions

For Students• Flashcard Glossary

AcknowledgementsNo endeavour achieves success without the advice and support from others. I am indebted to and would like to acknowledge the people and organizations who have either directly or indirectly contributed towards the conceptualization and preparation of this book. I am thankful to Mr Dheeraj Kukreja (General Manager & VP—Operations, Piccadily Holiday Resorts Limited, Hotel Piccadily, Lucknow) for providing free access to the hotel to understand the various procedures and practices used in the front offi ce operations and for providing photographs for the book.


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of the total Quality Management (TQM) concept.

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The following resources are available to support the faculty and students using this text:

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The following resources are available to support the faculty and students using this text:

PowerPoint Presentations Oxford

PowerPoint Presentations

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Chapter 16

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Chapter 16Chapter 17

UniversityChapter 17 introduces the readers to the basic

University introduces the readers to the basic Chapter 17 introduces the readers to the basic Chapter 17

UniversityChapter 17 introduces the readers to the basic Chapter 17

concept of marketing, and how the hotel staff can use marketing and sales techniques to boost

Universityconcept of marketing, and how the hotel staff can use marketing and sales techniques to boost

explains the human resource aspects such as recruitment, selection and training, and the

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explains the human resource aspects such as recruitment, selection and training, and the HR challenges faced by the hospitality industry.

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HR challenges faced by the hospitality industry.

discuss the environmental concerns of the hotel industry, and the benefi ts and use

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discuss the environmental concerns of the hotel industry, and the benefi ts and use

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of the total Quality Management (TQM) concept. University


Press discusses the application of computers in the front offi ce department of a hotel.

Press discusses the application of computers in the front offi ce department of a hotel.

explains the various methods of evaluating the performance of a hotel, such as occupancy ratios, Press

explains the various methods of evaluating the performance of a hotel, such as occupancy ratios, Chapter 16Pre

ssChapter 16 covers the application of yield Pre

ss covers the application of yield Chapter 16 covers the application of yield Chapter 16Pre

ssChapter 16 covers the application of yield Chapter 16

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Preface to the Second Edition ix

I also express my gratitude to the students and faculty members of the Babu Banarasi Das National Institute of Technology and Management, Lucknow for their valuable suggestions. In this regard, I would also like to acknowledge the assistance of Mr Ashish Srivastava who sometimes helped me in the typing of the manuscript.

I would like to acknowledge the patience and support of my father, mother, wife Suman, daughter Shambhavi, and son Shivansh. I would also like to thank all my well-wishers, friends, students, and academicians, for having in some way infl uenced the development of this book.

Finally, the entire editorial team from Oxford University Press India deserves my gratitude for their professionalism and for bearing with me when I overshot my deadlines. I would also like to thank all the people at Oxford University Press India who have contributed in some way or the other in the completion of this book. I also owe my gratitude to the anonymous peer reviewers whose valuable feedback enabled me to improve the text.

Every effort has been made to determine and contact the copyright holders. In case of any omissions, the publisher will be pleased to make suitable acknowledgment in future editions.

Suggestions for improving the presentation and contents can be sent to me at [email protected].



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Presscopyright holders. In case of any

Presscopyright holders. In case of any

omissions, the publisher will be pleased to make suitable acknowledgment in future editions.

Pressomissions, the publisher will be pleased to make suitable acknowledgment in future editions.

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Suggestions for improving the presentation and contents can be sent to me at jtewari@uou.

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Suggestions for improving the presentation and contents can be sent to me at jtewari@uou.

Preface to the First Edition Today tourism is one of the largest and most dynamic sectors of the economy. It is growing at a fast pace, leading to infrastructure development, considerable volume of foreign currency infl ows, and good job opportunities. So it affects various sectors of the economy, contributing to the social and economic development of the country as a whole. According to recent statistics, tourism provides about 10 per cent of the world’s income and employs almost one tenth of the world’s workforce. All considered, tourism’s actual and potential economic impact is astounding.

The hospitality industry came into existence in order to accommodate tourists. When guests stay in a hotel and use the various services and facilities provided by the hotel, they seldom think about the complexity of hotel operations. The smallest of their demands, like for a cup of tea, requires coordination among a series of people. The hotel industry is a people-oriented industry. It is the effectiveness, effi ciency, and courteous behaviour of the hotel employees that make a lasting impression on the guest’s total experience.

The front offi ce department of a hotel is the hub of guest activities. This department looks after the guests’ needs—right from the booking of rooms to receiving and registering guests, to assigning rooms, to handling guests’ mails and messages, to presenting bills and settling guests’ accounts at the time of check-out. It is important for the front offi ce staff to provide excellent and fl awless services to guests, as it goes a long way in creating an indelible image of the hotel.

In India, the subject of front offi ce operations is taught in degree and diploma courses in hotel management, postgraduate diploma in accommodation, and also in postgraduate degree programmes like MSc/MA/MBA with hotel management as a main subject. Apart from the regular course in hotel management, front offi ce management is also taught in courses in tourism management.

About the Book Hotel Front Offi ce: Operations and Management is a comprehensive, syllabi-oriented text book that has been developed especially for the students of hotel management and hospitality management courses. Students will fi nd this book useful for its coverage of the key concepts of front offi ce operations and management, explained through industry-related examples, fl owcharts, tables, formats, and photographs. With its practice-oriented approach, the book would also be useful to front offi ce professionals.

The book has been divided into three parts. The fi rst part— The Hospitality Industry— gives an introduction to the hospitality industry and acquaints the reader with the classifi cation and organization of hotels. The second part— Front Offi ce Operations— explains front offi ce organization, internal and external communication, and room tariff. The guest cycle, which includes the stages of pre-arrival (reservation), arrival (registration), stay (guest services), and departure (check-out and settlement of bills), is explained in detail. This section also includes chapters on front offi ce accounting, night auditing, safety and security of guests, and computer applications in front offi ce. The fi nal part— Front Offi ce Management —imparts an understanding of the key managerial concepts, such as revenue management, forecasting, budgeting, and human resource management.


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hotel management, postgraduate diploma in accommodation, and also in postgraduate degree

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hotel management, postgraduate diploma in accommodation, and also in postgraduate degree

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programmes like MSc/MA/MBA with hotel management as a main subject. Apart from the

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programmes like MSc/MA/MBA with hotel management as a main subject. Apart from the regular course in hotel management, front offi ce management is also taught in courses in tourism

Oxfordregular course in hotel management, front offi ce management is also taught in courses in tourism

Hotel Front Offi ce: Operations and ManagementOxford

Hotel Front Offi ce: Operations and Management

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is the effectiveness, effi ciency, and courteous behaviour of the hotel employees that make a lasting

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The front offi ce department of a hotel is the hub of guest activities. This department looks after

University The front offi ce department of a hotel is the hub of guest activities. This department looks after

the guests’ needs—right from the booking of rooms to receiving and registering guests, to assigning

Universitythe guests’ needs—right from the booking of rooms to receiving and registering guests, to assigning

rooms, to handling guests’ mails and messages, to presenting bills and settling guests’ accounts at the

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rooms, to handling guests’ mails and messages, to presenting bills and settling guests’ accounts at the

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time of check-out. It is important for the front offi ce staff to provide excellent and fl awless services

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time of check-out. It is important for the front offi ce staff to provide excellent and fl awless services to guests, as it goes a long way in creating an indelible image of the hotel.

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to guests, as it goes a long way in creating an indelible image of the hotel. In India, the subject of front offi ce operations is taught in degree and diploma courses in

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In India, the subject of front offi ce operations is taught in degree and diploma courses in hotel management, postgraduate diploma in accommodation, and also in postgraduate degree Universi

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hotel management, postgraduate diploma in accommodation, and also in postgraduate degree programmes like MSc/MA/MBA with hotel management as a main subject. Apart from the Universi

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programmes like MSc/MA/MBA with hotel management as a main subject. Apart from the

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The hospitality industry came into existence in order to accommodate tourists. When guests

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The hospitality industry came into existence in order to accommodate tourists. When guests stay in a hotel and use the various services and facilities provided by the hotel, they seldom think

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stay in a hotel and use the various services and facilities provided by the hotel, they seldom think about the complexity of hotel operations. The smallest of their demands, like for a cup of tea,

Pressabout the complexity of hotel operations. The smallest of their demands, like for a cup of tea,

requires coordination among a series of people. The hotel industry is a people-oriented industry. It

Pressrequires coordination among a series of people. The hotel industry is a people-oriented industry. It

is the effectiveness, effi ciency, and courteous behaviour of the hotel employees that make a lasting Press


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Preface to the First Edition xi

Contemporary issues like environmental management and total quality management are also explored in this section.

Pedagogical Features The various pedagogical features of the book are as under:

••

simple, easy-to-understand language. •

the better comprehension of the reader. ••

subject. •

chapter. ••

Structure The fi rst three chapters of the book constitute Part I — The Hospitality Industry . Chapter 1 introduces the hotel industry, Chapter 2 deals with the classifi cation of hotels, and Chapter 3 provides indepth knowledge about hotel organization.

Part II of the book comprises ten chapters, concerning various aspects of Front Offi ce Oper-ations . Chapter 4 discusses the organization of a front offi ce department, Chapter 5 discusses communication and its importance in the front offi ce department, and Chapter 6 deals with the room tariff. Chapters 7 , 8 , and 9 deal with various operational aspects of the front offi ce depart-ment, like making advance booking of rooms, receiving and registering guests, and extending various guest services, like handling of messages, keys, mails, and guest complaints; guest pag-ing; facilitating guest room change; providing safety deposit locker and left luggage facilities, etc. Chapters 10 , 11 , and 12 deal with check-out procedures, front offi ce accounting, and night auditing. Chapter 13 provides an overview of the safety and security procedures followed in the hotel industry.

Part III of the book comprises seven chapters about Front Offi ce Management . Chapter 14 deals with the use and applications of computers in the hotel industry. Chapters 15 , 16 , and 17 discuss the various methods of evaluating the performance of a hotel, the application of yield management techniques to increase revenue generation, budgeting, forecasting, and marketing of hospitality products. Chapter 18 elaborates on the human resource aspects like recruitment, selection, training, and evaluating performance of employees. Chapters 19 and 20 discuss the environmental concerns of the hotel industry and the application of total quality management concepts to attain perfection in carrying out hotel operations.



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knowledge about hotel organization.

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knowledge about hotel organization.

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Part II of the book comprises ten chapters, concerning various aspects of

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room tariff. Chapters 7 , 8 , and 9 deal with various operational aspects of the front offi ce depart-

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ment, like making advance booking of rooms, receiving and registering guests, and extending Oxford

ment, like making advance booking of rooms, receiving and registering guests, and extending various guest services, like handling of messages, keys, mails, and guest complaints; guest pag-Oxfo

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The fi rst three chapters of the book constitute Part I —

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Brief ContentsFeatures of the Book ivCompanion Online Resources viPreface to the Second Edition viiPreface to the First Edition xDetailed Contents xiiiList of Exhibits xviii

PART I: HOSPITALITY INDUSTRY 1

1. Introduction to the Hospitality Industry 3 2. Classification of Hotels 29 3. Hotel Organization 58

PART II: FRONT OFFICE OPERATIONS 73

4. Front Office Organization 75 5. Front Office Communication 94 6. Room Tariff 122 7. Guest Cycle and Room Reservations 144 8. Registration 176 9. Guest Services 199 10. Check-out and Settlement 223 11. Front Office Accounting 248 12. Night Auditing 268 13. Safety and Security 279

PART III: FRONT OFFICE MANAGEMENT 293

14. Computer Applications in Front Office 29515. Evaluating Hotel Performance 30816. Yield Management and Forecasting 31617. Hospitality Marketing 33618. Human Resource Management 35419. Environmental Management 36920. Total Quality Management 386

Index 400About the Author 405


OxfordCheck-out and Settlement

OxfordCheck-out and Settlement

Front Office Accounting

OxfordFront Office Accounting

Safety and SecurityOxford

Safety and SecurityOxford

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Guest Cycle and Room Reservations

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Guest Cycle and Room Reservations

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Detailed ContentsFeatures of the Book ivCompanion Online Resources viPreface to the Second Edition viiPreface to the First Edition xBrief Contents xiiList of Exhibits xviii

1. Introduction to the Hospitality Industry 3Hospitality Industry 3

Origin and Growth 4Tourism Industry 5

Importance of Tourism 6Industries Related to Tourism 8

Evolution and Growth of the Hotel Industry in the World 13Ancient Era 13Grand Tour 14Modern Era 14

Evolution and Growth of the Hotel Industry in India 16Ancient and Medieval Era—From Indus

Valley Civilization to AD 1600 17Colonial Era—From 1601 to 1947 18Modern Era—1947 Onwards 19

Hotel—Definition and Core Areas 23Core Areas of a Hotel—An Overview 24

2. Classification of Hotels 29Need for Classification 29Classification of Hotels and Other

Types of Lodging 30Standard Classification 30Classification on the Basis of Size 37Classification on the Basis of Location 38Classification on the Basis of Clientele 40

Classification on the Basis of Duration of Guest Stay 42

Classification on the Basis of Level of Services 43

Classification on the Basis of Ownership 44Alternative Accommodation 47

Hotel Tariff Plans 49Types of Guest Rooms 50

3. Hotel Organization 58Need for Organization 58Vision 59Mission 60

Mission Statement 60Objective 61Goals and Strategy 61

Hotel Organization 62Organization Charts 63

Major Departments of a Hotel 64Front Office 64Housekeeping 65Food and Beverage Service 66Kitchen 66Engineering and Maintenance 67Accounts 68Human Resource 68Security 69Sales and Marketing 69Purchase 70

PART I: HOSPITALITY INDUSTRY 1


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Evolution and Growth of the Hotel

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Evolution and Growth of the Hotel Industry in IndiaOxfo

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Ancient and Medieval Era—From Indus

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Evolution and Growth of the Hotel

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Evolution and Growth of the Hotel 13Universi

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13

Guest Stay

UniversityGuest Stay

Classification on the Basis of Level of

UniversityClassification on the Basis of Level of Services

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Classification on the Basis of Ownership

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Classification on the Basis of OwnershipAlternative Accommodation

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Alternative Accommodation

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Classification on the Basis of Duration of Press

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xiv Detailed Contents

4. Front Offi ce Organization 75Functional Areas 75Sections and Layout of Front Offi ce 76

Reservation 78Reception 79Information Desk 79Cash and Bills 80Travel Desk 80Communication Section 81Uniformed Services 81

Organization of Front Offi ce Staff 82Duties and Responsibilities of Some

Front Offi ce Personnel 84Front Offi ce Manager 84Reservation Assistant 86Receptionist 86Information Assistant 87Cashier 87Telephone Operator 88Bellboy 88Door Attendant 89

Qualities of Front Offi ce Personnel 89

5. Front Offi ce Communication 94Communication 95Communication Process 95Seven Cs of Communication 97Importance of Communication 98Types of Communication 99

Oral Communication 99Written Communication 101Non-verbal Communication 102

Flow of Communication 110Downward Communication 111Upward Communication 111Lateral or Horizontal Communication 111Diagonal or Cross-wise Communication 112

Barriers of Communication 112Semantic Barriers 112Psychological Barriers 114

Personal Barriers 114Interdepartmental Communication 116

Housekeeping 116Food and Beverage Department 116Sales and Marketing Department 117Engineering and Maintenance 117Security 117Finance Controller 118Human Resource 118Banquets 118

6. Room Tariff 122Introduction 122Room Rate Designation 125Meal Plans 129Room Tariff Card 130Room Tariff Fixation 132

Cost-based Pricing 132Market-based Pricing 138

7. Guest Cycle and Room Reservations 144

Guest Cycle 144Pre-arrival 145Arrival 146Stay 146Departure and Post-departure 148

Reservations 149Types of Reservation 149

Tentative Reservation 150Wait-listed Reservation 150Confi rmed Reservation 150

Modes of Reservation Inquiry 154Sources of Reservation 156Systems of Reservation 161

Manual System of Reservation 161Automatic System 165

Processing Reservation Requests 167Reservation Reports 170Importance of Reservation 171

PART II: FRONT OFFICE OPERATIONS 73


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5. Front Offi ce Communication 94

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Communication 95

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Communication 95Communication Process

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Communication Process Seven Cs of Communication 97Oxfo

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Importance of Communication 98

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Qualities of Front Offi ce Personnel 89University


Room Rate Designation

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Room Rate Designation Meal Plans

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Meal Plans Room Tariff Card

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Room Tariff Fixation

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Room Tariff Fixation Cost-based Pricing 132

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Cost-based Pricing 132

7. Guest Cycle and Room

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7. Guest Cycle and Room

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Introduction 122

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Introduction 122Room Rate Designation Pre

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Detailed Contents xv

8. Registration 176Preregistration 176Registration 177

Form C 178Passport 179Visa 181Registration Records 182Registration Process 184

Check-in Procedures 185Check-in Procedures in Manual or Semi-

automated Hotels 186

9. Guest Services 199Various Guest Services 199

Handling Guest Mail 200Message Handling 204Custody and Control of Keys 207Guest Paging 210Safe Deposit Locker 210Guest Room Change 212Left Luggage Handling 214Wake-up Call 218

Guest Complaints 218Types of Guest Complaints 218Handling Guest Complaints 220

10. Check-out and Settlement 223Departure Procedure 223Mode of Settlement of Bills 231

Foreign Exchange 232Cash Settlement 233Credit Settlement 237

Potential Check-out Problems and Solutions 242Late Check-out 242Long Queues at the Cash Counter 243Improper Posting of Charges in the Guest

Folio 245

11. Front Offi ce Accounting 248Introduction 248

Types of Accounts 249

Vouchers 250Folios 254Ledger 257

Front Offi ce Accounting Cycle 258Creation of Accounts 259Maintenance of Accounts 260Settlement of Accounts 261Control of Cash and Credit 261

12. Night Auditing 268Night Audit 268Night Auditor 269

Duties and Responsibilities of a Night Auditor 269

Night Audit Process 270Establishing the End of the Day 270Completing Outstanding Postings and

Verifying Transactions 270Reconciling Transactions 272Verifying No-shows 273Preparing Reports 274Updating the System 276

13. Safety and Security 279Hotel Security Staff and System 279Role of Front Offi ce 280Security and Control of Room Keys 280Fire Safety 281

Classifi cation of Fire 282Procedure in the Event of Fire 282

Accidents 282Accidents in Hotels 283Accident Report 284

First Aid 285First-aid Box 285First Aid for Some Common Problems 285

Handling Unusual Events and Emergency Situations 286Terrorist Activities and Bomb Threat 286Robbery and Theft 288Guests in Drunken State 290


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Types of Guest Complaints 218

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Types of Guest Complaints 218Handling Guest Complaints 220

OxfordHandling Guest Complaints 220

10. Check-out and Settlement 223

Oxford10. Check-out and Settlement 223

Departure Procedure

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Departure Procedure Mode of Settlement of Bills 231Oxfo

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Foreign Exchange 232Oxford

Foreign Exchange 232

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218University

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Establishing the End of the Day 270

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Establishing the End of the Day 270Completing Outstanding Postings and

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Completing Outstanding Postings and Verifying Transactions 270

UniversityVerifying Transactions 270

Reconciling Transactions 272

UniversityReconciling Transactions 272

Verifying No-shows 273

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Verifying No-shows 273

PressDuties and Responsibilities of a Night

PressDuties and Responsibilities of a Night

PressAuditor 269

PressAuditor 269

Night Audit Process

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Night Audit Process Establishing the End of the Day 270Pre

ssEstablishing the End of the Day 270Completing Outstanding Postings and Pre

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xvi Detailed Contents

14. Computer Applications in Front Offi ce 295Property Management System 296Property Management System

Application for Front Offi ce 296Reservations Module 296Front Desk Module 298Rooms Module 298Cashier Module 299Night Audit Module 299Set-up Module 300Reporting Module 301Back Offi ce Module 301

Property Management Systems’ Interface with Stand-alone Systems 301

Different Property Management Systems 302Micros 302Amadeus PMS 304IDS Fortune 305ShawMan 305

15. Evaluating Hotel Performance 308Methods of Measuring Hotel

Performance 308Occupancy Ratio 309Average Daily Rate 309Average Room Rate Per Guest 309Revenue Per Available Room 310Market Share Index 311

Evaluation of Hotels by Guests 313

16. Yield Management and Forecasting 316Yield Management 316

Measuring Yield in the Hotel Industry 317Yield Management in the Hotel Industry 317Elements of Yield Management 322Benefi ts of Yield Management 323Yield Management Strategies 324

Challenges or Problems in Yield Management 325

Measuring Yield 325Forecasting 328

Benefi ts of Forecasting 328Data Required for Forecasting 329Records Required for Forecasting Room

Availability 329Yield Management Prospects 331

17. Hospitality Marketing 336Introduction to Marketing 336

Basic Concepts of Marketing 337Marketing Mix 339Market Segmentation 341

Sales and Marketing of Hospitality Products 344Sales and Marketing Team 344Sales Techniques 346Role of Front Offi ce Personnel in

Maximizing Revenue 347Budget 349

Types of Budget 349Budgetary Control 351

18. Human Resource Management 354Introduction 354

Human Resource Planning 355Human Resource Development 355Job Analysis 355Purpose of Job Analysis 357Recruitment 358Sources of Recruitment 358Selection 359Selection Process 359Orientation 360Training and Development 361

Human Resource Challenges in the Hospitality Industry 363Employee Retention 364Employee Motivation 365

PART III: FRONT OFFICE MANAGEMENT 293


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Methods of Measuring Hotel

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Performance 308

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Performance 308Occupancy Ratio 309

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Occupancy Ratio 309Average Daily Rate 309Oxfo

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Average Daily Rate 309Average Room Rate Per Guest 309Oxfo

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Average Room Rate Per Guest 309

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Marketing Mix 339

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Marketing Mix 339Market Segmentation 341

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Market Segmentation 341Sales and Marketing of Hospitality

UniversitySales and Marketing of Hospitality

Products 344

UniversityProducts 344

Sales and Marketing Team 344

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Sales and Marketing Team 344

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17. Hospitality Marketing

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17. Hospitality Marketing Introduction to Marketing 336

PressIntroduction to Marketing 336

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Basic Concepts of Marketing 337

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Basic Concepts of Marketing 337Marketing Mix 339Pre

ssMarketing Mix 339Market Segmentation 341Pre

ssMarket Segmentation 341

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Detailed Contents xvii

19. Environmental Management 369Environment and Ecology 369Environmental Pollution 371

Air Pollution 372Water Pollution 373

Environmental Education 374Objectives of Environmental Education 375

Environmental Legislations 375Environmental Impact Analysis 376Environmental Audit 376

Environmental Management 377Environmental Management in Hospitality

Industry 377Environmental Management Programmes 378

International EMS Standards 381

20. Total Quality Management 386Guests’ Perception of Quality 387Introduction to Total Quality

Management 389Practices in Total Quality Management 391Japanese 5S Practice 391Business Process Re-engineering 393Quality Control Circles 394Kaizen 394Benchmarking 395

Benefi ts of Total Quality Management 396

Index 400About the Author 405


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Benchmarking 395

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Benchmarking 395Benefi ts of Total Quality

PressBenefi ts of Total Quality

PressManagement 396

PressManagement 396

Chapter 2Exhibit 2.1 List of some leading hotel

chains of the world 45Exhibit 2.2 List of leading management

companies of the world 46

Chapter 3Exhibit 3.1 Sample Vision Statements 59Exhibit 3.2 Sample Mission Statement of

Hotel ABC 60Exhibit 3.3 Sample Mission Statement of

Hotel XYZ (Eco-friendly Hotel) 60

Exhibit 3.4 Few Measurable Objectives 61Exhibit 3.5 Sample Goal and Strategies 61Exhibit 3.6 Sample Goals of Hotel XYZ

(A Leading Hotel and Resort) 62Exhibit 3.7 Sample Goals of Hotel ABC 62

Chapter 5Exhibit 5.1 E-mail Etiquettes 103Exhibit 5.2 Conversation between a Guest

and a Reservation Assistant 113

Chapter 6Exhibit 6.1 Weekend Offer from Orchid,

Mumbai 129Exhibit 6.2 Room Tariff of Hotel Clarks

Shiraz, Agra 131Exhibit 6.3 Room Tariff of ITC Maurya,

New Delhi 131

Chapter 7Exhibit 7.1 Sample Confi rmation Letter 151Exhibit 7.2 Sample Guarantee Policy 152Exhibit 7.3 Sample Cancellation Policy 170

Chapter 8Exhibit 8.1 Self-service Terminals 186

Chapter 10Exhibit 10.1 Room Status Codes 230

Chapter 13Exhibit 13.1 Heightened Security Measures

Post Mumbai Terror Attacks 287

Chapter 13Exhibit 14.1 Opera Reservation system

(ORS)—Login/Searching Reservations 303

Chapter 15Exhibit 15.1 Travel Information Website—

TripAdvisor.com 313

Chapter 17Exhibit 17.1 Defi nitions of Marketing 337

Chapter 19Exhibit 19.1 Environment-friendly Staff 380

Chapter 20Exhibit 20.1 Various Meanings of Total

Quality Management 389

List of Exhibits


OxfordExhibit 5.2 Conversation between a Guest

OxfordExhibit 5.2 Conversation between a Guest

and a Reservation Assistant 113

Oxfordand a Reservation Assistant 113

Exhibit 6.1 Weekend Offer from Orchid, Oxford

Exhibit 6.1 Weekend Offer from Orchid, Mumbai 129Oxfo

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Mumbai 129

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Exhibit 13.1 Heightened Security Measures

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Exhibit 13.1 Heightened Security Measures Post Mumbai Terror Attacks 287

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Post Mumbai Terror Attacks 287

Chapter 13

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(A Leading Hotel and Resort) 62

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(A Leading Hotel and Resort) 62Exhibit 3.7 Sample Goals of Hotel ABC 62

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Exhibit 3.7 Sample Goals of Hotel ABC 62

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103

Exhibit 14.1 Opera Reservation system

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Exhibit 14.1 Opera Reservation system

PressExhibit 10.1 Room Status Codes 230

PressExhibit 10.1 Room Status Codes 230

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Exhibit 13.1 Heightened Security Measures Press

Exhibit 13.1 Heightened Security Measures Post Mumbai Terror Attacks 287Pre

ssPost Mumbai Terror Attacks 287

Introduction to the Hospitality Industry

1

LEARNING OBJECTIVES

After studying this chapter, the reader will be able to understand the following: Hospitality industry—its origin and growth Travel and tourism—their evolution, importance, and related industries Evolution and growth of the hotel industry in India and rest of the

world Hotel—definition and core areas

The hospitality industry is one of the oldest commercial activities in the world. It is, in fact, an integral part of the larger business enterprise known as travel and tourism, which provides a wide range of travel-related services, such as modes of travel, accommodation, food and drinks, recreational activities, and other facilities required by the modern-age traveller. Hospitality seems to be a glamorous industry, but many do not know that a tremendous amount of hard work goes behind the sheen and glitter that meets the eye.

This chapter is aimed at providing an insight into the evolution and growth of the hospitality industry in India and other parts of the world. Tourism is one of the most important commercial activities of the modern economy. The relationship between tourism and hotel industries is also explained with reference to the diverse profi le of the present-day client who could be travelling for business, vacation, pleasure, adventure, or even medical treatment. An overview of hotels and their core departments is also provided for an overall understanding of hotel operations.

HOSPITALITY INDUSTRY Catering to the entire needs of travel-related activities, the hospitality sector is estimated to be a US $3.5 trillion industry in the world economy today. Hospitality refers to the relationship between a guest and a host, and it also refers to the act or practice of being hospitable. It includes cordial reception and entertainment of guests, visitors, or strangers. Hospitality is also known as the act of generously providing care and kindness to someone in need.


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by the modern-age traveller. Hospitality seems to be a glamorous industry, but many

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by the modern-age traveller. Hospitality seems to be a glamorous industry, but many do not know that a tremendous amount of hard work goes behind the sheen and glitter

Oxforddo not know that a tremendous amount of hard work goes behind the sheen and glitter

that meets the eye.

Oxfordthat meets the eye.

This chapter is aimed at providing an insight into the evolution and growth of the

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This chapter is aimed at providing an insight into the evolution and growth of the hospitality industry in India and other parts of the world. Tourism is one of the most

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hospitality industry in India and other parts of the world. Tourism is one of the most important commercial activities of the modern economy. The relationship between Oxfo

rdimportant commercial activities of the modern economy. The relationship between tourism and hotel industries is also explained with reference to the diverse profi le of the Oxfo

rd

tourism and hotel industries is also explained with reference to the diverse profi le of the

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The hospitality industry is one of the oldest commercial activities in the world. It is,

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The hospitality industry is one of the oldest commercial activities in the world. It is, in fact, an integral part of the larger business enterprise known as travel and tourism,

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in fact, an integral part of the larger business enterprise known as travel and tourism, which provides a wide range of travel-related services, such as modes of travel,

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which provides a wide range of travel-related services, such as modes of travel, accommodation, food and drinks, recreational activities, and other facilities required Universi

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accommodation, food and drinks, recreational activities, and other facilities required by the modern-age traveller. Hospitality seems to be a glamorous industry, but many Universi

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by the modern-age traveller. Hospitality seems to be a glamorous industry, but many do not know that a tremendous amount of hard work goes behind the sheen and glitter

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do not know that a tremendous amount of hard work goes behind the sheen and glitter

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After studying this chapter, the reader will be able to understand the

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After studying this chapter, the reader will be able to understand the

Travel and tourism—their evolution, importance, and related industries

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Travel and tourism—their evolution, importance, and related industries Evolution and growth of the hotel industry in India and rest of the Pre

ssEvolution and growth of the hotel industry in India and rest of the

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The hospitality industry is an umbrella term that includes a broad variety of service industries and is not limited to hotels, restaurants, casinos, catering enterprises, resorts, and clubs. The industry is very diverse and global and is greatly impacted by fl uctuations within the economy and also by various happenings across the world.

Origin and Growth The origin and development of the hospitality industry is a direct outcome of travel and tourism. There are many reasons for which a person may travel: business, pleasure, further studies, medical treatment, pilgrimage, or any other reason. When a person travels for a few or more days, he/she may carry his/her clothes, but it is not possible for him/her to carry food and home. Thus, two of a person’s three basic needs—food and shelter—are not taken care of when he/she is travelling. This is where the hospitality industry steps in.

Before the wheel was invented, people undertook journeys on animals such as horses, camels, and elephants. In those days, they used to travel in groups called caravans ( see Fig. 1.1 ) for safety. However, there was a limit to the distance they could cover in a day. At nightfall, they avoided travel due to the fear of wild animals and bandits and also because of animal fatigue.

Thus, for the night halt, they looked for a place that could provide them with water, fuel to cook food, and, above all, security from wild animals and bandits.

The primitive lodging houses or inns orig-inated essentially to cater to these needs of the travellers. All over the world, they were known by different names, such as dharmashala and sarai in India, ryokans in Japan, paradors in Spain, pousadas in Portugal, coffee houses in America, taverns ( see Fig. 1.2 ) and inns in Europe, cabarets and hostelries in France, mansionis and hospitia in Switzerland, phatnal in Greece, and relay houses in China.

The earliest inns were generally run by families or husband–wife teams who provided large halls to travellers to make their own beds and sleep on the fl oor. They also provided modest wholesome food and drinks such as wine, port, and ale and sta-ble facilities for the animals. Entertainment and recreation were also provided on a

Figure 1.1 Caravan of camels

Source : IndiaPicture/Mahatta Multimedia Pvt Ltd

Figure 1.2 Tavern


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Caravan of camels

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Caravan of camels

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: IndiaPicture/Mahatta Multimedia Pvt Ltd

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: IndiaPicture/Mahatta Multimedia Pvt Ltd

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to travel in groups called caravans ( see Fig. 1.1 )

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to travel in groups called caravans ( see Fig. 1.1 ) for safety. However, there was a limit to the

Universityfor safety. However, there was a limit to the

distance they could cover in a day. At nightfall,

Universitydistance they could cover in a day. At nightfall,

they avoided travel due to the fear of wild

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they avoided travel due to the fear of wild animals and bandits and also because of animal

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animals and bandits and also because of animal fatigue.

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fatigue.

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carry food and home. Thus, two of a person’s three basic needs—food and shelter—are

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carry food and home. Thus, two of a person’s three basic needs—food and shelter—are not taken care of when he/she is travelling. This is where the hospitality industry steps in.

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not taken care of when he/she is travelling. This is where the hospitality industry steps in. Before the wheel was invented, people

Press Before the wheel was invented, people

undertook journeys on animals such as horses,

Pressundertook journeys on animals such as horses,

camels, and elephants. In those days, they used Press

camels, and elephants. In those days, they used to travel in groups called caravans ( see Fig. 1.1 ) Pre

ssto travel in groups called caravans ( see Fig. 1.1 )

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Introduction to the Hospitality Industry 5

modest scale. All this, of course, came for a price. These inns or lodging properties were housed in the private homes of the local people who made a living by providing accommodation to travellers. These inns were not as clean and tidy as we see them today. They were also devoid of the frills and facilities as seen in the modern-day hospitality establishments. The travellers had to make their own beds and cook for themselves. Gradually, the inns started providing beds to travellers—typical-ly, an inn would have a large hall with many beds ( see Fig. 1.3 ).

TOURISM INDUSTRY Tourism is one of the world’s fastest growing industries and a major source of foreign exchange and employment generation for many countries. It is regarded as one of the most remarkable economic and social phenomena of the past century. According to the data available with the United Nations World Tourism Organization (UNWTO), a global forum for promoting tourism, the number of international arrivals in the world reached 1138 million in 2014, a 4.7 per cent increase over the previous year. For 2015, UNWTO forecasts international tourism to grow by 3 to 4 per cent, further contributing to the global economic recovery.

The word ‘tour’ is derived from the Latin word tornus , meaning ‘a tool for making a circle’. Tourism may be defi ned as the movement of people from their normal place of residence to another place (with the intention to return) for a minimum period of 24 hours to a maximum of six months for the sole purpose of leisure and pleasure.

The Rome Conference on tourism in 1963 defi ned tourism as ‘a visit to a country other than one’s own or where one usually resides and works’. This defi nition, however, did not take into account domestic tourism, which has become an important money-spinner and job generator for the hospitality industry.

The UNWTO defi ned tourists as ‘people who travel to and stay in places outside their usual environment for not more than one consecutive year for leisure, business, and other purposes not related to the exercise of an activity remunerated from within the place visited’.

Tourism can be categorized as international and domestic tourism ( see Fig. 1.4 ):

International tourism When people visit a foreign country, it is referred to as international tourism. In order to travel to a foreign country, one needs a valid passport, visa, health documents, foreign exchange, etc. International tourists may be inbound or outbound ( see Fig. 1.4 ):

Inbound This refers to tourists of outside origin entering a particular country.

Outbound This refers to tourists travelling from the country of their origin to another country.

Figure 1.3 Early inn


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a circle’. Tourism may be defi ned as the movement of people from their normal place

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a circle’. Tourism may be defi ned as the movement of people from their normal place of residence to another place (with the intention to return) for a minimum period of

Oxfordof residence to another place (with the intention to return) for a minimum period of

24 hours to a maximum of six months for the sole purpose of leisure and pleasure.

Oxford24 hours to a maximum of six months for the sole purpose of leisure and pleasure.

The Rome Conference on tourism in 1963 defi ned tourism as ‘a visit to a country

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The Rome Conference on tourism in 1963 defi ned tourism as ‘a visit to a country other than one’s own or where one usually resides and works’. This defi nition,

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other than one’s own or where one usually resides and works’. This defi nition, however, did not take into account domestic tourism, which has become an important Oxfo

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however, did not take into account domestic tourism, which has become an important money-spinner and job generator for the hospitality industry. Oxfo

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money-spinner and job generator for the hospitality industry.

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exchange and employment generation for many countries. It is regarded as one of the

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exchange and employment generation for many countries. It is regarded as one of the most remarkable economic and social phenomena of the past century. According to

Universitymost remarkable economic and social phenomena of the past century. According to

the data available with the United Nations World Tourism Organization (UNWTO), a

Universitythe data available with the United Nations World Tourism Organization (UNWTO), a

global forum for promoting tourism, the number of international arrivals in the world

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global forum for promoting tourism, the number of international arrivals in the world reached 1138 million in 2014, a 4.7 per cent increase over the previous year. For 2015,

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reached 1138 million in 2014, a 4.7 per cent increase over the previous year. For 2015, UNWTO forecasts international tourism to grow by 3 to 4 per cent, further contributing

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UNWTO forecasts international tourism to grow by 3 to 4 per cent, further contributing to the global economic recovery.

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to the global economic recovery. The word ‘tour’ is derived from the Latin word Universi

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The word ‘tour’ is derived from the Latin word a circle’. Tourism may be defi ned as the movement of people from their normal place Universi

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a circle’. Tourism may be defi ned as the movement of people from their normal place

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Tourism is one of the world’s fastest growing industries and a major source of foreign Press

Tourism is one of the world’s fastest growing industries and a major source of foreign exchange and employment generation for many countries. It is regarded as one of the Pre

ssexchange and employment generation for many countries. It is regarded as one of the

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Domestic tourism The tourism activity of people within their own country is known as domestic tourism. Travelling within the same country is easier because it does not require formal travel documents and tedious formalities such as compulsory health checks and foreign exchange. In domestic tourism, a traveller generally does not face much language problem or currency exchange issues.

Importance of Tourism Tourism and hospitality, which are inextricably linked to each other, are among the major revenue earning enterprises in the world. They happen to be among the top employers too. There has been an upmarket trend in tourism over the last few decades, as travel has become quite common. People travel for business, vacation, pleasure, adventure, or even medical treatment. The present-day tourist, who has higher levels of disposable income, international exposure, and refi ned tastes, wants specialized versions of products and services, such as quieter resorts, family-oriented holidays, or commercial hotels. This has led to a demand for better quality products and services, mainly regarding accommodation and travelling, thus feeding the growth of the hospitality industry as a whole.

The developments in technology and transport infrastructure, such as jumbo jets, low-cost airlines, and more accessible airports, have made tourism affordable and convenient. There have also been changes in lifestyle—for example, now retiree’s sustain tourism round the year. The sale of tourism products on the Internet, besides the aggressive marketing of tour operators and travel agencies, has also contributed to the growth of tourism.

With several business-related activities associated with tourism, the industry has a tremendous potential of generating employment as well as earning foreign exchange. There are many countries in the world, such as Mauritius, Malaysia, Singapore, Fiji, and Caribbean, whose economies are primarily driven by tourism. Tourism can contribute to the economic growth of a country in the following ways:

Employment generation It creates a large number of jobs among direct service providers (such as hotels, restaurants, travel agencies, tour operators, guide, and tour

Figure 1.4 International and domestic tourism

India(Origin)

Japan(Destination)

Returning home

Outbound Inbound

Returning home

International tourism

Domestic tourism

Tourist

Mumbai(Origin)

India New Delhi(Destination)


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as travel has become quite common. People travel for business, vacation, pleasure,

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as travel has become quite common. People travel for business, vacation, pleasure, adventure, or even medical treatment. The present-day tourist, who has higher levels

Oxfordadventure, or even medical treatment. The present-day tourist, who has higher levels

of disposable income, international exposure, and refi ned tastes, wants specialized

Oxfordof disposable income, international exposure, and refi ned tastes, wants specialized

versions of products and services, such as quieter resorts, family-oriented holidays, or

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versions of products and services, such as quieter resorts, family-oriented holidays, or

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commercial hotels. This has led to a demand for better quality products and services,

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commercial hotels. This has led to a demand for better quality products and services, mainly regarding accommodation and travelling, thus feeding the growth of the Oxfo

rdmainly regarding accommodation and travelling, thus feeding the growth of the hospitality industry as a whole. Oxfo

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hospitality industry as a whole.

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require formal travel documents and tedious formalities such as compulsory health

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require formal travel documents and tedious formalities such as compulsory health checks and foreign exchange. In domestic tourism, a traveller generally does not face

Universitychecks and foreign exchange. In domestic tourism, a traveller generally does not face

much language problem or currency exchange issues.

Universitymuch language problem or currency exchange issues.

Tourism and hospitality, which are inextricably linked to each other, are among the

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Tourism and hospitality, which are inextricably linked to each other, are among the major revenue earning enterprises in the world. They happen to be among the top

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major revenue earning enterprises in the world. They happen to be among the top employers too. There has been an upmarket trend in tourism over the last few decades, Universi

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employers too. There has been an upmarket trend in tourism over the last few decades, University

as travel has become quite common. People travel for business, vacation, pleasure, University

as travel has become quite common. People travel for business, vacation, pleasure, adventure, or even medical treatment. The present-day tourist, who has higher levels

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adventure, or even medical treatment. The present-day tourist, who has higher levels

Press The tourism activity of people within their own country is known

Press The tourism activity of people within their own country is known

as domestic tourism. Travelling within the same country is easier because it does not

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as domestic tourism. Travelling within the same country is easier because it does not require formal travel documents and tedious formalities such as compulsory health Pre

ssrequire formal travel documents and tedious formalities such as compulsory health

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escorts) and among indirect service providers (such as suppliers to hotels and restaurants, and supplementary accommodation).

Infrastructure development Tourism spurs infrastructure development. In order to become an important commercial or pleasure destination, any location would require all the necessary infrastructure, such as good connectivity via rail, road, and air transport, adequate accommodation, restaurants, a well-developed telecommunication network, and medical facilities, among others.

Foreign exchange The people who travel to other countries spend a large amount of money on accommodation, transportation, sightseeing, shopping, etc. Thus, an inbound tourist is an important source of foreign exchange for any country.

Figure 1.5 provides an insight into the economic activities that are spurred by tourism. In 1997, the World Travel and Tourism Council (WTTC) predicted that the 21st century economy would be dominated by three industries: telecommunications, information technology, and tourism. The travel and tourism industry has grown by 500 per cent in the last 25 years. In India, it is expected that the tourism sector’s contribution to the gross domestic product (GDP) will grow at a rate of 7.8 per cent per annum from 2013 to 2023. Tourism generates more than 230 million jobs (directly and indirectly) and contributes to more than 10 per cent of the world GDP. International tourist arrivals in 2013 were 248.1 million, and the UNWTO forecasts 1.6 billion international tourist arrivals worldwide by 2020.

Despite these bright outlook and prospects, the tourism and hospitality industry is very vulnerable to the fl uctuations of national economies and happenings in the world, especially terrorist attacks that have at times dealt severe blows to the business. In the recent years, there have been a few setbacks in tourism, such as the terrorist siege of the Taj and Oberoi hotels in Mumbai, India (26 November 2008); the attack on the World Trade Centre in the United States of America (11 September 2001); bombings in

Figure 1.5 Tourism-related economic growth

Tourism

Empolyment generation Infrastructure development

•

• S

• • A• Restaurants• T• Railways• Roads• Public utilities

Foreign exchange earning

Direct

Indirect

Transportation

Telecom

Accommodation

Suppliers, retail stores, etc.

agencies, etc. Hotel, resort, travel


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very vulnerable to the fl uctuations of national economies and happenings in the world,

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very vulnerable to the fl uctuations of national economies and happenings in the world, especially terrorist attacks that have at times dealt severe blows to the business. In the

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especially terrorist attacks that have at times dealt severe blows to the business. In the

Oxfordrecent years, there have been a few setbacks in tourism, such as the terrorist siege of the

Oxfordrecent years, there have been a few setbacks in tourism, such as the terrorist siege of the

Taj and Oberoi hotels in Mumbai, India (26 November 2008); the attack on the World

OxfordTaj and Oberoi hotels in Mumbai, India (26 November 2008); the attack on the World

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Trade Centre in the United States of America (11 September 2001); bombings in

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Trade Centre in the United States of America (11 September 2001); bombings in

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information technology, and tourism. The travel and tourism industry has grown by 500

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information technology, and tourism. The travel and tourism industry has grown by 500 per cent in the last 25 years. In India, it is expected that the tourism sector’s contribution

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per cent in the last 25 years. In India, it is expected that the tourism sector’s contribution to the gross domestic product (GDP) will grow at a rate of 7.8 per cent per annum from

Universityto the gross domestic product (GDP) will grow at a rate of 7.8 per cent per annum from

2013 to 2023. Tourism generates more than 230 million jobs (directly and indirectly) and

University2013 to 2023. Tourism generates more than 230 million jobs (directly and indirectly) and

contributes to more than 10 per cent of the world GDP. International tourist arrivals

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contributes to more than 10 per cent of the world GDP. International tourist arrivals

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in 2013 were 248.1 million, and the UNWTO forecasts 1.6 billion international tourist

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in 2013 were 248.1 million, and the UNWTO forecasts 1.6 billion international tourist

Despite these bright outlook and prospects, the tourism and hospitality industry is

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Despite these bright outlook and prospects, the tourism and hospitality industry is very vulnerable to the fl uctuations of national economies and happenings in the world, Universi

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very vulnerable to the fl uctuations of national economies and happenings in the world, especially terrorist attacks that have at times dealt severe blows to the business. In the Universi

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especially terrorist attacks that have at times dealt severe blows to the business. In the

Press Figure 1.5 provides an insight into the economic activities that are spurred by

Press Figure 1.5 provides an insight into the economic activities that are spurred by

tourism. In 1997, the World Travel and Tourism Council (WTTC) predicted that the

Presstourism. In 1997, the World Travel and Tourism Council (WTTC) predicted that the

21st century economy would be dominated by three industries: telecommunications,

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21st century economy would be dominated by three industries: telecommunications, information technology, and tourism. The travel and tourism industry has grown by 500 Pre

ssinformation technology, and tourism. The travel and tourism industry has grown by 500 per cent in the last 25 years. In India, it is expected that the tourism sector’s contribution Pre

ssper cent in the last 25 years. In India, it is expected that the tourism sector’s contribution

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a hotel on the Indonesian island of Bali (12 October 2002); tsunami in Southeast Asia and South Asia (26 December 2004), in which thousands of lives were lost and consequently tourism was hit. However, the sector is now getting back to business.

Industries Related to Tourism Over the years, tourism has become a popular global activity. Depending upon the nature and purpose of their travel, tourists need and demand certain facilities and services. This has given rise to a wide range of commercial activities that have acquired industry proportions. Thus, travel and tourism nowadays represent a broad range of related industries. Figure 1.6 presents an overview of the tourism industry and other sectors related to it.

Hotels Hotels are commercial establishments that provide accommodation, meals, and other guest services. In general, a hotel is an establishment that must have a minimum of six guest rooms, at least three of which must have attached private bathroom facilities.

Although hotels are classifi ed into ‘star’ categories, there is no standard method of assigning these ratings, and compliance with customary requirements is voluntary. An American hotel with a certain rating, for example, may look very different from a European or Asian hotel with the same rating and would provide a different level of amenities, range of facilities, and quality of service. Although hotel chains assure uniform standards throughout, non-chain hotels (even within the same country) may not agree on the same standards.

Within the travel and tourism industry, the hotel industry plays a very signifi cant role, as all tourists need a place to stay at their destinations and require many more services and facilities to suit their specifi c needs and tastes.

Figure 1.6 Overview of the tourism industry

Tourism industry

HotelMotelTime-shareResortHoliday villageDak bungalowSaraiCasino hotelB & B hotelCondominiumCircuit housesCapsule hotel

Accommodation

TrainsPassenger shipsAirlinesBusesCarsBikesLimousinesFerriesSteamersCruise liners

Transportation

RestaurantsBarsPubsDhabasVendorsTake awaySnacks barRetail shopsKiosks

Shopping mallsGift shopsArt and craft shopsHandicraftHandloom EmporiumAntique shops

Seasonal festivalsTrade fairsRoadshowsExhibitionsSports eventsStudy tripsExcursionsCultural eventsLight shows

Food and Beverage Retail stores Activities


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not agree on the same standards.

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not agree on the same standards. Within the travel and tourism industry, the hotel industry plays a very signifi cant

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Within the travel and tourism industry, the hotel industry plays a very signifi cant role, as all tourists need a place to stay at their destinations and require many more

Oxfordrole, as all tourists need a place to stay at their destinations and require many more

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services and facilities to suit their specifi c needs and tastes.

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services and facilities to suit their specifi c needs and tastes.

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of six guest rooms, at least three of which must have attached private bathroom

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of six guest rooms, at least three of which must have attached private bathroom

Although hotels are classifi ed into ‘star’ categories, there is no standard method

University Although hotels are classifi ed into ‘star’ categories, there is no standard method

of assigning these ratings, and compliance with customary requirements is voluntary.

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of assigning these ratings, and compliance with customary requirements is voluntary. An American hotel with a certain rating, for example, may look very different from

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An American hotel with a certain rating, for example, may look very different from a European or Asian hotel with the same rating and would provide a different level

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a European or Asian hotel with the same rating and would provide a different level of amenities, range of facilities, and quality of service. Although hotel chains assure

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of amenities, range of facilities, and quality of service. Although hotel chains assure

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uniform standards throughout, non-chain hotels (even within the same country) may

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uniform standards throughout, non-chain hotels (even within the same country) may not agree on the same standards. Universi

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not agree on the same standards. Within the travel and tourism industry, the hotel industry plays a very signifi cant Universi

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Within the travel and tourism industry, the hotel industry plays a very signifi cant

Press Hotels are commercial establishments that provide accommodation, meals, and other

Press Hotels are commercial establishments that provide accommodation, meals, and other

guest services. In general, a hotel is an establishment that must have a minimum

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guest services. In general, a hotel is an establishment that must have a minimum of six guest rooms, at least three of which must have attached private bathroom Pre

ssof six guest rooms, at least three of which must have attached private bathroom

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Restaurants Restaurants are retail establishments that serve prepared food and beverages to customers. Though the term is generally applicable for eating on premises, it has also been used to include take-away establishments and food delivery services. Restaurants range from unpretentious dining places with simple food served in a simple setting at low prices to expensive establishments serving refi ned food and wines in a formal setting. Typically, customers are seated at tables, their orders are taken by a waiter who serves food when it is ready, and the customers pay the bill before leaving. In fi ner restaurants, there is generally a host or hostess to welcome customers and to seat them. Other staffs waiting on customers include busboys and sommeliers. Restaurants often specialize in certain types of food or present a certain unifying, and often entertaining, theme. For example, there are seafood restaurants, vegetarian restaurants, or ethnic restaurants.

In the travel and tourism industry, restaurants and other food and beverage outlets are very important as tourists like to experiment with local cuisines of the places they are visiting.

Retail and Shopping The retail industry is very important as tourists shop for their day-to-day necessities as well as look for mementos and souvenirs. In the recent years, several cities in the world have been promoted as shopping destinations to attract people with a penchant for shopping by offering various products, such as garments, electronic goods, jewellery,

and antiques, among others, at very low prices. Cities such as Singapore, Dubai, and Bangkok attract shoppers with their state-of-the-art malls and plush shopping plazas, whereas cities such as New York, Paris, London, and Milan in Italy are well known as fashion havens of the world. The recent years have seen the organization of events like shopping festivals to attract tourists with deep pockets.

Transportation It is the movement of people and goods from one place to another. The term is derived from the Latin words trans meaning ‘across’ and portare meaning ‘to carry’. Industries that are in the business of providing transport equipment and services are important in most national economies and are referred to as transport industries.

A well-developed transport industry, as well as infrastructure, is integral to the success of any travel and tourism enterprise. Good transport facilities and connectivity are basic for putting any place on a tourist map, whether domestic or international. At times, poor connectivity and transport have kept places, such as the northeastern states of India ( see Fig. 1.7 ), Figure 1.7 Waterfall in Arunachal Pradesh


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University The retail industry is very important as tourists shop for their day-to-day necessities as

University The retail industry is very important as tourists shop for their day-to-day necessities as

well as look for mementos and souvenirs. In the recent years, several cities in the world

Universitywell as look for mementos and souvenirs. In the recent years, several cities in the world

have been promoted as shopping destinations to attract people with a penchant for

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have been promoted as shopping destinations to attract people with a penchant for shopping by offering various products, such as garments, electronic goods, jewellery,

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shopping by offering various products, such as garments, electronic goods, jewellery, and antiques, among others, at very low prices. Cities

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and antiques, among others, at very low prices. Cities such as Singapore, Dubai, and Bangkok attract

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such as Singapore, Dubai, and Bangkok attract shoppers with their state-of-the-art malls and plush Universi

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shoppers with their state-of-the-art malls and plush University

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example, there are seafood restaurants, vegetarian restaurants, or ethnic restaurants.

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example, there are seafood restaurants, vegetarian restaurants, or ethnic restaurants. In the travel and tourism industry, restaurants and other food and beverage outlets

Press In the travel and tourism industry, restaurants and other food and beverage outlets

are very important as tourists like to experiment with local cuisines of the places they

Pressare very important as tourists like to experiment with local cuisines of the places they

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from exploiting their full tourism potential. In a bid to encourage travel to the northeast, several travel concessions are announced by the states as well as the Union government from time to time.

Travel Agencies A travel agency is a retailing business that sells travel-related products and services, particularly package tours, to customers on behalf of suppliers such as airlines, car rentals, cruise liners, hotels, railways, and sightseeing and tour operators. In addition to dealing with ordinary tourists, most travel agencies have a separate department devoted to making travel arrangements for business travellers. However, some travel agencies specialize in commercial and business travel only. There are also travel agencies that serve as general sales agents for foreign travel companies, allowing them to have offi ces in countries other than their countries of origin.

A travel agency’s main function is to act as an agent selling travel products and services on behalf of a supplier. However, unlike other retail businesses, they do not keep a stock in hand. They do not buy a package holiday or a ticket from a supplier unless a customer requests it. Most travel agencies operate on a commission basis, implying that the supplier—airlines, car rentals, cruise liners, hotels, railways, or sightseeing and tour operators—offer a fi xed percentage of the sale to the agencies as commission for booking clients. The agencies may offer a discount on a holiday package or ticket to the customers by reducing their commission. Some travel agencies, especially large chains, undertake other commercial operations, such as the sale of in-house insurance, travel guidebooks, timetables, car rentals, and the services of an on-site bureau de change , dealing in the most popular currencies.

Travel agencies play a very important role as they plan out the itinerary of their clients and make the necessary arrangements for their travel, stay, and sightseeing, besides facilitating their passport, visa, etc.

Tour Operators A tour operator assembles the various elements of a tour. It typically combines tour and travel components to create a holiday. The most common example of a tour operator’s product would be a seat on a charter airline plus a transfer from the airport to a hotel, and the services of a local representative, all for one price. Niche tour operators may specialize in destinations and activities, or a combination thereof.

The original raison d’être (reason for existence) of tour operators was the diffi culty of making arrangements in far-fl ung places, with problems of language, currency, and communication. In spite of the Internet making self-packaging of holidays easier now-adays, tour operators still have their competence in arranging tours for those who do not have the time to do so. They specialize in large group events and meetings, such as conferences and seminars. Further, tour operators still exercise contracting power with suppliers (airlines, hotels, other land arrangements, cruises, etc.) and infl uence over other entities (tourism boards and other government authorities) to create packages and special departures for destinations that are otherwise diffi cult and expensive to visit.


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in the most popular currencies.

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in the most popular currencies. Travel agencies play a very important role as they plan out the itinerary of their

Oxford Travel agencies play a very important role as they plan out the itinerary of their

clients and make the necessary arrangements for their travel, stay, and sightseeing,

Oxfordclients and make the necessary arrangements for their travel, stay, and sightseeing,

besides facilitating their passport, visa, etc.

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besides facilitating their passport, visa, etc.

Tour Operators Oxford

Tour Operators A tour operator assembles the various elements of a tour. It typically combines tour and Oxfo

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A tour operator assembles the various elements of a tour. It typically combines tour and

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a stock in hand. They do not buy a package holiday or a ticket from a supplier unless

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a stock in hand. They do not buy a package holiday or a ticket from a supplier unless a customer requests it. Most travel agencies operate on a commission basis, implying

Universitya customer requests it. Most travel agencies operate on a commission basis, implying

that the supplier—airlines, car rentals, cruise liners, hotels, railways, or sightseeing and

Universitythat the supplier—airlines, car rentals, cruise liners, hotels, railways, or sightseeing and

tour operators—offer a fi xed percentage of the sale to the agencies as commission for

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tour operators—offer a fi xed percentage of the sale to the agencies as commission for booking clients. The agencies may offer a discount on a holiday package or ticket to the

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booking clients. The agencies may offer a discount on a holiday package or ticket to the customers by reducing their commission. Some travel agencies, especially large chains,

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customers by reducing their commission. Some travel agencies, especially large chains, undertake other commercial operations, such as the sale of in-house insurance, travel

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undertake other commercial operations, such as the sale of in-house insurance, travel guidebooks, timetables, car rentals, and the services of an on-site Universi

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guidebooks, timetables, car rentals, and the services of an on-site in the most popular currencies. Universi

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in the most popular currencies. Travel agencies play a very important role as they plan out the itinerary of their

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Travel agencies play a very important role as they plan out the itinerary of their

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serve as general sales agents for foreign travel companies, allowing them to have offi ces

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serve as general sales agents for foreign travel companies, allowing them to have offi ces

A travel agency’s main function is to act as an agent selling travel products and

Press A travel agency’s main function is to act as an agent selling travel products and

services on behalf of a supplier. However, unlike other retail businesses, they do not keep Press

services on behalf of a supplier. However, unlike other retail businesses, they do not keep a stock in hand. They do not buy a package holiday or a ticket from a supplier unless Pre

ssa stock in hand. They do not buy a package holiday or a ticket from a supplier unless

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Tourist Destinations A tourist attraction is a place of interest for tourists, typically for its inherent or exhibited cultural value, historical signifi cance, natural or built beauty, or amusement opportunities. Some examples include historical places ( see Fig. 1.8 ), monuments, zoos, aquaria, muse-ums, art galleries, botanical gardens, build-ings and structures, which include castles, libraries, former prisons, skyscrapers, bridg-es, landmarks, national parks and forests, theme parks and carnivals, ethnic enclave communities, historical trains, and cultural events. Tourist attractions are also created by capitalizing on unexplained phenomena such as a supposed UFO crash site near Ros-well, New Mexico and the alleged Loch Ness monster sightings in Scotland. Ghost sight-

ings also make popular tourist attractions. Ethnic communities, such as Chinatowns or the Jew community in Kochi (Kerala), are also popular among tourists.

Free promotional brochures and fl yers of popular destinations are handed out in information centres, fast food restaurants, hotel and motel rooms or lobbies, and rest are as frequented by travellers. While some tourist attractions provide visitors a memorable experience for a reasonable admission charge or even free, others can be of low quality and may overprice their goods and services (such as admission, food, and souvenirs) to profi t from tourists excessively. Such places are commonly referred to as tourist traps.

Cultural Industries Cultural or creative industries are responsible for the creation, production, and distribution of goods and services that are cultural in nature and usually protected by intellectual property rights. These include literary works, visual and performing arts, crafts, and other creative fi elds. Cultural industries are knowledge-based and labour-intensive, creating employment and wealth. By nurturing creativity and fostering innovation, societies develop a cultural heritage and enhance economic performance. Since tourists like to visit places of cultural signifi cance and soak in the culture of that area, the cultural industry is very important to travel and tourism ( see Fig. 1.9 ).

Leisure, Recreation, and Sport Leisure or free time is a period of time spent out of work and essential domestic activity. Recreation or fun is spending time in a manner designed for therapeutic refreshment of one’s body or mind. While leisure is more like a form of entertainment or rest, recreation requires active participation in a refreshing and diverting manner. Since people in the world’s wealthier regions lead increasingly sedentary lifestyles, the need for recreation has increased. The rise of so-called active vacations exemplifi es this.

Figure 1.8 Red Fort in New Delhi, one of the most famous historical places

Source : Ibudgetphoto/Mahatta Multimedia Pvt Ltd


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experience for a reasonable admission charge or even free, others can be of low quality and

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experience for a reasonable admission charge or even free, others can be of low quality and may overprice their goods and services (such as admission, food, and souvenirs) to profi t

Oxfordmay overprice their goods and services (such as admission, food, and souvenirs) to profi t

from tourists excessively. Such places are commonly referred to as tourist traps.

Oxfordfrom tourists excessively. Such places are commonly referred to as tourist traps.

Cultural Industries

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Cultural Industries

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Cultural or creative industries are responsible for the creation, production, and Oxford

Cultural or creative industries are responsible for the creation, production, and distribution of goods and services that are cultural in nature and usually protected by Oxfo

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distribution of goods and services that are cultural in nature and usually protected by

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such as a supposed UFO crash site near Ros-

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such as a supposed UFO crash site near Ros-well, New Mexico and the alleged Loch Ness

Universitywell, New Mexico and the alleged Loch Ness

monster sightings in Scotland. Ghost sight-

Universitymonster sightings in Scotland. Ghost sight-

ings also make popular tourist attractions. Ethnic communities, such as Chinatowns or the

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ings also make popular tourist attractions. Ethnic communities, such as Chinatowns or the Jew community in Kochi (Kerala), are also popular among tourists.

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Jew community in Kochi (Kerala), are also popular among tourists. Free promotional brochures and fl yers of popular destinations are handed out in

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Free promotional brochures and fl yers of popular destinations are handed out in information centres, fast food restaurants, hotel and motel rooms or lobbies, and rest are

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information centres, fast food restaurants, hotel and motel rooms or lobbies, and rest are as frequented by travellers. While some tourist attractions provide visitors a memorable Universi

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as frequented by travellers. While some tourist attractions provide visitors a memorable experience for a reasonable admission charge or even free, others can be of low quality and Universi

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experience for a reasonable admission charge or even free, others can be of low quality and may overprice their goods and services (such as admission, food, and souvenirs) to profi t

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may overprice their goods and services (such as admission, food, and souvenirs) to profi t

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theme parks and carnivals, ethnic enclave

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theme parks and carnivals, ethnic enclave communities, historical trains, and cultural

Presscommunities, historical trains, and cultural

events. Tourist attractions are also created

Pressevents. Tourist attractions are also created

by capitalizing on unexplained phenomena Press

by capitalizing on unexplained phenomena such as a supposed UFO crash site near Ros-Pre

sssuch as a supposed UFO crash site near Ros-

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The spread of mass media has led to a growing public interest in sports. This has turned popular sports into good business opportunities, where rules of the game are sometimes bent to make them more profi table and popular. The emergence of Twenty20 format in cricket is a case in point. Good marketing strategies and the promise of wholesome entertainment are attracting larger audiences, making sporting events popular among fans who are willing to travel to the games’ venues to get a fi rst-hand experience of their favourite game. Thus, it is a little wonder that cities and countries across the world bid years in advance for hosting international sports events like Olympics.

Figure 1.9 Indian festivals (a) Diwali (b) Durga Puja (c) Bihu, Assam (d) Monastic Festival, Ladakh (e) Boat Race, Kerala

Source : (a), (b), (c), and (d) IndiaPicture/Mahatta Multimedia Pvt Ltd


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Hence, we have seen that tourism today encompasses a wide range of products and services—travel, accommodation, catering, and recreation, among others—for its clients. We have briefl y read about how the hospitality industry emerged from the man’s need to travel and has evolved into its present state today. The hotel industry is arguably the most signifi cant part of the hospitality industry. In the succeeding sections, we will trace the origin and growth of this industry in the world, and also in India.

EVOLUTION AND GROWTH OF THE HOTEL INDUSTRY IN THE WORLD The invention of currency and the wheel sometime in the fi fth century BC are regarded as the two main factors that led to the emergence of inn-keeping and hospitality as a commercial activity. While Europe can safely be regarded as the cradle of organized hotel business, it is in the American continent that one sees the evolution of the modern hotel industry over the past century. From the rudimentary ancient inns to the present- day state-of-the-art establishments that provide everything under the sun to the modern traveller, the hotel industry has come a long way. The origin and growth of the hotel industry in the world can be broadly studied under the following periods:

• Ancient Era • Grand Tour • Modern Era

Ancient Era The earliest recorded evidence of the hospitality facilities in Europe dates back to 500 BC. Ancient cities, like Corinth in Greece, had a substantial number of establishments that offered food and drink as well as beds to travellers. The inns of the biblical era were of primitive type, offering a cot or bench in the corner of a room and, at times, even a stable. Travellers used to stay in a large hall. Privacy and personal sanitation were non-existent. In the third century AD, numerous lodging premises mushroomed along the extensive network of brick-paved roads throughout Europe and minor Asia (part of Asia adjoining Europe). The lodging houses were known as mansionis during that time.

These conditions prevailed for several hundred years, till the Industrial Revolution in England led to the development of railways and steamships, making travelling more effi cient, comfortable, and faster. The Industrial Revolution also brought about a shift in

the focus of travel that became more business oriented than educational or social.

The lead in organized hotel keeping, as we see today, was taken by the emerging countries of Europe, especially Switzerland. The early estab-lishments were mainly patronized by the aristoc-racy and took shape in chalets (small cottages) ( see Fig. 1.10 ) and small hotels that provided a variety of services. Between 1750 and 1825, inns in Britain gained their reputation of being the fi nest hospitality establishments. Figure 1.10 Swiss chalet


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offered food and drink as well as beds to travellers. The inns of the biblical era were of

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offered food and drink as well as beds to travellers. The inns of the biblical era were of primitive type, offering a cot or bench in the corner of a room and, at times, even a stable.

Oxfordprimitive type, offering a cot or bench in the corner of a room and, at times, even a stable.

Travellers used to stay in a large hall. Privacy and personal sanitation were non-existent.

OxfordTravellers used to stay in a large hall. Privacy and personal sanitation were non-existent.

In the third century AD, numerous lodging premises mushroomed along the extensive

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In the third century AD, numerous lodging premises mushroomed along the extensive

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network of brick-paved roads throughout Europe and minor Asia (part of Asia adjoining

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network of brick-paved roads throughout Europe and minor Asia (part of Asia adjoining Europe). The lodging houses were known as Oxfo

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Europe). The lodging houses were known as These conditions prevailed for several hundred years, till the Industrial Revolution Oxfo

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These conditions prevailed for several hundred years, till the Industrial Revolution

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industry in the world can be broadly studied under the following periods:

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industry in the world can be broadly studied under the following periods:

The earliest recorded evidence of the hospitality facilities in Europe dates back to 500 BC.

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The earliest recorded evidence of the hospitality facilities in Europe dates back to 500 BC. Ancient cities, like Corinth in Greece, had a substantial number of establishments that Universi

ty

Ancient cities, like Corinth in Greece, had a substantial number of establishments that University

offered food and drink as well as beds to travellers. The inns of the biblical era were of University

offered food and drink as well as beds to travellers. The inns of the biblical era were of

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commercial activity. While Europe can safely be regarded as the cradle of organized

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commercial activity. While Europe can safely be regarded as the cradle of organized hotel business, it is in the American continent that one sees the evolution of the modern

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hotel business, it is in the American continent that one sees the evolution of the modern hotel industry over the past century. From the rudimentary ancient inns to the present-

Presshotel industry over the past century. From the rudimentary ancient inns to the present-

day state-of-the-art establishments that provide everything under the sun to the modern

Pressday state-of-the-art establishments that provide everything under the sun to the modern

traveller, the hotel industry has come a long way. The origin and growth of the hotel Press

traveller, the hotel industry has come a long way. The origin and growth of the hotel industry in the world can be broadly studied under the following periods: Pre

ssindustry in the world can be broadly studied under the following periods:

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Grand Tour The second half of the 18th century, prior to the French Revolution (1789–99), is referred as the ‘golden era of travel’ as the popularity of the ‘Grand Tour’ gave a big push to the hotel industry. In those days, a Grand Tour of the European continent constituted an indispensable element of the education of scions of wealthy families in Britain. As this tour often lasted several years, it was a good business opportunity for people

in the prominent cities of France, Italy, Germany, Austria, Switzerland, and Ireland to establish lodging, transportation, and recreation facilities. Far-sighted entrepreneurs, who smelt money in the exercise, developed the skills of hospitality and pioneered the modern hotel industry.

Prominent among the hotels that emerged during this period were Dolder Grand in Zurich ( see Fig. 1.11 ), the Imperial in Vien-na, the Vier Jahreszeiten in Hamburg, and Des Bergues in Gene-va. In 1841, a simple cabinet maker, Thomas Cook ( see Fig. 1.12 ), organized a rail tour from Leicester to Loughborough and immor-talized himself as the world’s fi rst tour operator.

Modern Era The improvisation in modes of transport made journeys safer, easier, and faster, enabling economical as well as frequent mass movement. The introduction of Funiculars (the ropeway) made high-altitude mountains accessible, leading to the growth of many hotels in the Alpine ranges. Bürgenstock and Giessbach are among the hotels in Switzerland that owe their existence to the development of the ropeways.

Figure 1.11 Dolder Grand, Zurich

Source : The Dolder Grand/Photo by Stefan Schmidlin. Used with permission.

Figure 1.12 World’s first tour operator—Thomas Cook


Oxfordin the prominent cities of France, Italy, Germany, Austria,

Oxfordin the prominent cities of France, Italy, Germany, Austria, Switzerland, and Ireland to establish lodging, transportation,

OxfordSwitzerland, and Ireland to establish lodging, transportation, and recreation facilities. Far-sighted entrepreneurs, who smelt

Oxfordand recreation facilities. Far-sighted entrepreneurs, who smelt

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The second half of the 18th century, prior to the French Revolution (1789–99), is referred

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The second half of the 18th century, prior to the French Revolution (1789–99), is referred as the ‘golden era of travel’ as the popularity of the ‘Grand Tour’ gave a big push to

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as the ‘golden era of travel’ as the popularity of the ‘Grand Tour’ gave a big push to the hotel industry. In those days, a Grand Tour of the European continent constituted

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the hotel industry. In those days, a Grand Tour of the European continent constituted an indispensable element of the education of scions of wealthy families in Britain.

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an indispensable element of the education of scions of wealthy families in Britain. As this tour often lasted several years, it was a good business opportunity for people

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As this tour often lasted several years, it was a good business opportunity for people in the prominent cities of France, Italy, Germany, Austria, Universi

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in the prominent cities of France, Italy, Germany, Austria, Switzerland, and Ireland to establish lodging, transportation,

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Switzerland, and Ireland to establish lodging, transportation,

The Dolder Grand/Photo by Stefan Schmidlin. Used with permission.

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The Dolder Grand/Photo by Stefan Schmidlin. Used with permission.Press

Dolder Grand, Zurich

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Dolder Grand, Zurich

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The two world wars, especially the second (1939–45), took their toll on the hospitality industry. The massive destruction caused by the war and the resulting economic depression proved to be a major setback for the travel business. The 1950s witnessed slow and steady growth of travel in the European continent. The development of aircraft and commercial passenger fl ights across the Atlantic stimulated travel across the globe and in the process accelerated the growth of the hotel industry.

However, it is the American entrepreneurs who are credited for literally changing the face of the hospitality industry with their innovations and aggressive marketing. The inauguration of the City Hotel in New York in 1794 marked the beginning of the present-day hotel industry. It was a ‘giant’ building at that time, with 73 rooms, and it went on to become a favourite meeting ground for socialites.

Prior to the establishment of the City Hotel, lodging facilities in the American continent were patterned on European style taverns or inns. The City Hotel, however, triggered a race of sorts among American hoteliers, resulting in the construction of large hotels such as the Exchange Coffee House in Boston, the Second City Hotel in Baltimore, and the Mansion House in Philadelphia. The opening of the Tremont House ( see Fig. 1.13 ) in Boston is another landmark in the evolution of the hotel industry. Regarded as a forerunner of luxury hotels, the 170-room hotel had many fi rsts to its credit. For example, it was the fi rst to provide locks, indoor plumbing,

running water, and bathing facilities, besides providing a bowl, pitcher, and free soaps in its rooms. It was also the fi rst to provide front offi ce services such as bellboys and a reception, as well as to serve French cuisine in the US.

Throughout the 19th century, the contest among hoteliers to build better, larger, and most luxurious hotels contin-ued. Several luxury hotels, such as the Grand Pacifi c, The Palmer House ( see Fig. 1.14 ), and The Sherman House in Chicago, as well as The Palace (with 800 rooms) in San Francisco were built. The year 1908 saw the emergence of the fi rst business hotel, the Statler Hotel in Buffalo, New York ( see Fig. 1.15 ). This magnifi cent 450-room multi-storey build-ing was a pioneer in many ways. Some of the innovations included an attached bathroom with hot and cold water in each room, an electric lamp on the desk, and a radio in each room. Figure 1.13 Tremont House, Boston


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large hotels such as the Exchange Coffee House in Boston, the Second City Hotel

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large hotels such as the Exchange Coffee House in Boston, the Second City Hotel in Baltimore, and the Mansion House in Philadelphia. The opening of the Tremont

Universityin Baltimore, and the Mansion House in Philadelphia. The opening of the Tremont

House ( see Fig. 1.13 ) in Boston is another landmark in the evolution of the hotel

UniversityHouse ( see Fig. 1.13 ) in Boston is another landmark in the evolution of the hotel

industry. Regarded as a forerunner of luxury hotels, the 170-room hotel had many

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industry. Regarded as a forerunner of luxury hotels, the 170-room hotel had many

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fi rsts to its credit. For example, it was the fi rst to provide locks, indoor plumbing,

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fi rsts to its credit. For example, it was the fi rst to provide locks, indoor plumbing,

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went on to become a favourite meeting ground for socialites.

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went on to become a favourite meeting ground for socialites. Prior to the establishment of the City Hotel, lodging facilities in the American

Press Prior to the establishment of the City Hotel, lodging facilities in the American

continent were patterned on European style taverns or inns. The City Hotel, however,

Presscontinent were patterned on European style taverns or inns. The City Hotel, however,

triggered a race of sorts among American hoteliers, resulting in the construction of

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triggered a race of sorts among American hoteliers, resulting in the construction of large hotels such as the Exchange Coffee House in Boston, the Second City Hotel Pre

sslarge hotels such as the Exchange Coffee House in Boston, the Second City Hotel in Baltimore, and the Mansion House in Philadelphia. The opening of the Tremont Pre

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in Baltimore, and the Mansion House in Philadelphia. The opening of the Tremont

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The decade of the great depression in the 1930s witnessed the liquidity of most of the hotels in America. The hotel industry streamlined with slow and steady growth during the 1940s. The increase in automobile travel in the 1950s led to the rise of ‘motor hotels’ or motels , a new category in the hotel industry. The motels, which offered free parking facilities, served as rest houses for people travelling between two cities or tourist destinations. The following decades saw the growth of motels on a large scale and also the introduction of budget hotels that offered basic facilities at half the rates. Gradually, with the passage of time, these evolved into countrywide and international chains. We shall learn about them in detail in the next chapter.

EVOLUTION AND GROWTH OF THE HOTEL INDUSTRY IN INDIA Although the origin of the hotel industry in India cannot be traced to a defi nite point of

time, there is evidence of its presence even during the Indus Valley Civilization and Vedic era. In olden days, travel was predominantly undertaken for pilgrimage and trade. The concept of char dham (i.e., visiting religious places located in the four corners of India) among the Hindu community is an important indicator of the signifi cance accorded to pilgrimage by our ancestors. The country stands dotted with many such shrines, some of which are frequented by people of all faiths. Some such popular destinations are Vaishno Devi shrine, Amarnath cave shrine in Kashmir, Tirupati Balaji temple in Andhra Pradesh, Shirdi Sai temple in Shirdi, Sikh Golden Temple in Amritsar ( see Fig. 1.16 ), Dilwara Jain temples in Mount Abu, Bodh Gaya for Buddhists in Bihar, Ajmer Sharif shrine in Rajasthan, Haji Ali Tomb in Mumbai, St Francis Church in Goa, etc. Ancient texts and literature, and also Hindu mythology, have many references

Figure 1.16 Golden Temple, Amritsar

Source : IndiaPicture/Mahatta Multimedia Pvt Ltd

Figure 1.14 The Palmer House, Chicago Figure 1.15 Statler Hotel, Buffalo


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shall learn about them in detail in the next chapter.

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EVOLUTION AND GROWTH OF THE

OxfordEVOLUTION AND GROWTH OF THE

Although the origin of the hotel industry in India cannot be traced to a defi nite point of

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Although the origin of the hotel industry in India cannot be traced to a defi nite point of

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The decade of the great depression in the 1930s witnessed the liquidity of most of

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The decade of the great depression in the 1930s witnessed the liquidity of most of the hotels in America. The hotel industry streamlined with slow and steady growth

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the hotels in America. The hotel industry streamlined with slow and steady growth during the 1940s. The increase in automobile travel in the 1950s led to the rise of ‘motor

Universityduring the 1940s. The increase in automobile travel in the 1950s led to the rise of ‘motor

, a new category in the hotel industry. The motels, which offered free

University , a new category in the hotel industry. The motels, which offered free

parking facilities, served as rest houses for people travelling between two cities or tourist

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parking facilities, served as rest houses for people travelling between two cities or tourist destinations. The following decades saw the growth of motels on a large scale and also

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destinations. The following decades saw the growth of motels on a large scale and also the introduction of budget hotels that offered basic facilities at half the rates. Gradually,

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the introduction of budget hotels that offered basic facilities at half the rates. Gradually, with the passage of time, these evolved into countrywide and international chains. We

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with the passage of time, these evolved into countrywide and international chains. We shall learn about them in detail in the next chapter. Universi

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The decade of the great depression in the 1930s witnessed the liquidity of most of Press

The decade of the great depression in the 1930s witnessed the liquidity of most of the hotels in America. The hotel industry streamlined with slow and steady growth Pre

ssthe hotels in America. The hotel industry streamlined with slow and steady growth

Figure 1.15

PressFigure 1.15 Statler Hotel, Buffalo

Press Statler Hotel, Buffalo

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to travel and the provision of accommodation facilities for travelling pilgrims and traders by the authorities of those days.

Ancient India was well known for its silk, spices, gold, and gemstones. Records of famous travellers of the yore, speak of Indians trading with countries such as Greece, Italy, Indonesia, Malaysia, China, and Japan, among others. The main modes of transport were animals on land and boats and ships that criss-crossed rivers and seas for connectivity with distant lands. That is why we fi nd major trading cities in the world situated along the banks of rivers or on seaports.

The origin and evolution of the hotel industry in the country can be broadly categorized in the following three periods:

•••

Ancient and Medieval Era—From Indus Valley Civilization to AD 1600 The beginnings of the hospitality sector in India stand rooted in the Hindu philosophy of atithi devo bhava , which imply that an unannounced guest is to be accorded the status of God. While it is not clear when hospitality emerged as a commercial activity in ancient India, there is evidence of accommodation facilities for travellers and guests, though not as organized as we see them today. The lodging houses during those times were known as dharmashalas (dharma in Sanskrit means religion and shala school).

Dharmashalas, the resting places for pilgrims, are believed to have their origins in village chaupals ( see Fig. 1.17 ), which served as a meeting ground for villagers to plan and discuss various social welfare and development measures. These became the places of

Figure 1.17 Chaupals


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Dharmashalas, the resting places for pilgrims, are believed to have their origins in

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Dharmashalas, the resting places for pilgrims, are believed to have their origins in ( see Fig. 1.17 ), which served as a meeting ground for villagers to plan and

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( see Fig. 1.17 ), which served as a meeting ground for villagers to plan and discuss various social welfare and development measures. These became the places of

Oxforddiscuss various social welfare and development measures. These became the places of

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University The beginnings of the hospitality sector in India stand rooted in the Hindu philosophy of

University The beginnings of the hospitality sector in India stand rooted in the Hindu philosophy of

, which imply that an unannounced guest is to be accorded the status of

University , which imply that an unannounced guest is to be accorded the status of

God. While it is not clear when hospitality emerged as a commercial activity in ancient

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God. While it is not clear when hospitality emerged as a commercial activity in ancient India, there is evidence of accommodation facilities for travellers and guests, though not

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India, there is evidence of accommodation facilities for travellers and guests, though not as organized as we see them today. The lodging houses during those times were known

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as organized as we see them today. The lodging houses during those times were known as dharmashalas (dharma in Sanskrit means religion and

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as dharmashalas (dharma in Sanskrit means religion and Dharmashalas, the resting places for pilgrims, are believed to have their origins in Universi

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Dharmashalas, the resting places for pilgrims, are believed to have their origins in ( see Fig. 1.17 ), which served as a meeting ground for villagers to plan and Universi

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( see Fig. 1.17 ), which served as a meeting ground for villagers to plan and

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•

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Ancient and Medieval Era—From Indus Valley Civilization to AD Press

Ancient and Medieval Era—From Indus Valley Civilization to AD

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lodging, as travellers started putting up camps there due to safety reasons. Gradually, with the help of local residents and fi nancial assistance from the rulers, zamindars or other infl uential people, permanent structures (or dharmashalas) were built for travellers. Here they were provided with a safe place to relax and spend the night. Other words in literature that are indicative of offering facilities to travellers are anna-kshetras ( anna means food grains and kshetra means area), bhojanalaya ( bhojana means meal and alaya means house), paakshala ( paak means cooking and shala means school), panthagar ( panth means way or road and agar means house), etc. Similarly, in the Ramayana and Mahabharata, there is a mention of the existence of avasathagar (the outer portion of the house) to accommodate people who were invited during festivals, yagnas , or other celebrations organized by kings.

Records of many foreign visitors and philosophers who came to India speak highly of the hospitality facilities. Famous Chinese scholars Fa Hien (AD 399–414) and Huein Tsang (AD 629–643), who came during the reigns of Chandragupta Vikramiditya and Harshvardhana respectively, have mentioned the existence of shelters for travellers. Huein Tsang has, in fact, referred to the wonderful arrangement of food for 10,000 students in Nalanda University, a famous seat of learning.

In the medieval era, between the 11th and the 13th centuries, many sarais and musafi rkhanas were built, primarily as resting places for messengers of the postal system established by the Sultans of the Slave or Mamluk dynasty. The system was refi ned by Allauddin Khiljee, who established dak chowkis with horse runners and messengers to deliver post. According to the Tarikh-i-Sher-Shahi by Abbas Khan Sherwani, the postal service Diwan-i-Insa employed nearly 3400 people to man 1700 horse-relay stations at sarais , which also served as post offi ces. The Mughals continued the practice and built many such sarais to accommodate travellers. The sarais during those times fulfi lled the basic necessities of a traveller—they provided water, a room, a stable for the livestock (such as horse, elephant, or camel) along with fodder, and sometimes also a place for worship. There are several localities in Delhi, such as Katwaria Sarai, Lado Sarai, and Sarai Kale Khan, which have retained their names till date, although the medieval constructions are hard to fi nd.

Colonial Era—From 1601 to 1947 The organized existence of the hotel industry in India started taking shape during the colonial period, with the arrival of Europeans in the 17th century. The early hotels were mostly operated by people of foreign origin to cater to the needs of the European colonizers and later offi cials of the Raj. Among the fi rst such properties were taverns such as Portuguese Georges, Paddy Goose, and Racquent Court, which opened in Bombay (now Mumbai) between 1837 and 1840. However, within a period of about 10 years, most of the taverns disappeared and more respectable hotels like Hope Hall Family Hotel began to make an appearance. Other famous properties included the Victoria Hotel, more famous as British Hotel, by Pallanjee Pestonjee in 1840; Esplanade Hotel in 1871; Watson’s, which was exclusively for Europeans; Auckland Hotel (1841) in Kolkata, which went on to become the Great Eastern Hotel in post-independent India, and so on.


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, which also served as post offi ces. The Mughals continued the practice and built

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, which also served as post offi ces. The Mughals continued the practice and built to accommodate travellers. The

Oxford to accommodate travellers. The

Oxfordbasic necessities of a traveller—they provided water, a room, a stable for the livestock

Oxfordbasic necessities of a traveller—they provided water, a room, a stable for the livestock

(such as horse, elephant, or camel) along with fodder, and sometimes also a place for

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(such as horse, elephant, or camel) along with fodder, and sometimes also a place for worship. There are several localities in Delhi, such as Katwaria Sarai, Lado Sarai, and

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worship. There are several localities in Delhi, such as Katwaria Sarai, Lado Sarai, and Sarai Kale Khan, which have retained their names till date, although the medieval Oxfo

rdSarai Kale Khan, which have retained their names till date, although the medieval constructions are hard to fi nd. Oxfo

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constructions are hard to fi nd.

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Huein Tsang has, in fact, referred to the wonderful arrangement of food for 10,000

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Huein Tsang has, in fact, referred to the wonderful arrangement of food for 10,000 students in Nalanda University, a famous seat of learning.

Universitystudents in Nalanda University, a famous seat of learning.

In the medieval era, between the 11th and the 13th centuries, many

University In the medieval era, between the 11th and the 13th centuries, many

were built, primarily as resting places for messengers of the postal system

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were built, primarily as resting places for messengers of the postal system established by the Sultans of the Slave or Mamluk dynasty. The system was refi ned by

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established by the Sultans of the Slave or Mamluk dynasty. The system was refi ned by Allauddin Khiljee, who established

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Allauddin Khiljee, who established dak chowkis

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dak chowkisdeliver post. According to the

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deliver post. According to the Tarikh-i-Sher-Shahi

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Tarikh-i-Sher-Shahi employed nearly 3400 people to man 1700 horse-relay stations at

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employed nearly 3400 people to man 1700 horse-relay stations at , which also served as post offi ces. The Mughals continued the practice and built Universi

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, which also served as post offi ces. The Mughals continued the practice and built to accommodate travellers. The

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to accommodate travellers. The

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Records of many foreign visitors and philosophers who came to India speak highly

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Records of many foreign visitors and philosophers who came to India speak highly of the hospitality facilities. Famous Chinese scholars Fa Hien (AD 399–414) and Huein

Pressof the hospitality facilities. Famous Chinese scholars Fa Hien (AD 399–414) and Huein

Tsang (AD 629–643), who came during the reigns of Chandragupta Vikramiditya and

PressTsang (AD 629–643), who came during the reigns of Chandragupta Vikramiditya and

Harshvardhana respectively, have mentioned the existence of shelters for travellers.

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Harshvardhana respectively, have mentioned the existence of shelters for travellers. Huein Tsang has, in fact, referred to the wonderful arrangement of food for 10,000 Pre

ssHuein Tsang has, in fact, referred to the wonderful arrangement of food for 10,000 students in Nalanda University, a famous seat of learning. Pre

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students in Nalanda University, a famous seat of learning.

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In December 1903, Jamshetji Nusser-wanji Tata, inaugurated the Taj Mahal Palace and Tower hotel ( see Fig. 1.18 ), overlooking the Gateway of India in Mumbai, following a racial discrimination incident wherein he was refused entry into the Watson’s Hotel for being an Indian. The hotel, which is an architectural mar-vel, is credited with being the fi rst luxury hotel for Indians by an Indian. In 1923, Shapurji Sorabji built the Grand Hotel in Mumbai. A few years later, the Majestic Hotel was opened.

Until 1900, almost all hotels were constructed and run as per Western traditions. The fi rst Indian style hotels were Sardar Griha, which opened in 1900, and Madhavashram in 1908. The two world wars brought a fresh lot of hotels to Mumbai, an important port city of the times. The Ritz, The Ambassador, West End, and Airlines, which opened during these years, are fondly referred to as ‘war babies’ by industry historians.

Modern Era—1947 Onwards After independence, there were big leaps in the hotel trade in the country. The Oberoi Group of Hotels (founded by Rai Bahadur Mohan Singh Oberoi) and the Taj Group took over several British properties, maintained high standards of service and quality, and expanded their business overseas. The later decades saw corporates like the ITC (Indian Tobacco Company) also join the hotel industry with properties under ITC Welcome Group. The year 1949 saw the organization of four regional hotels and restaurants associations with head offi ces in Delhi, Mumbai, Calcutta (now Kolkata), and Madras (now Chennai). These four associations were linked in a federation, the Federation of Hotels and Restaurants in India (FHRAI), in 1955. The federation serves as an interface between the hospitality industry, political leadership, government, international associations, and other stakeholders in the trade.

The Ashok Hotel in Delhi’s diplomatic enclave has the distinction of being the fi rst luxury hotel built by the government. It was founded in 1956 to host independent India’s fi rst ever international event, a United Nations Industrial Development Organization (UNIDO) conference. Realizing the importance and potential of the tourism and hospitality industry, the government constituted India Tourism Development Corporation (ITDC) in 1966, which opened many large and small hotels across the country. The most popular face of ITDC is the Ashok Group of Hotels that provides a wide range of hospitality-related services.

Over the last few decades, various well-known international hotel chains have come to India. These include Hyatt Hotels and Resorts, InterContinental Hotels and Resorts, Marriott International, Hilton Hotels, Best Western International, Shangri-La Hotels and Resorts, Four Seasons Hotels and Resorts, Carlson Hotels Worldwide, and Aman Resorts.

Figure 1.18 Taj Mahal Palace and Tower in Mumbai


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took over several British properties, maintained high standards of service and quality,

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took over several British properties, maintained high standards of service and quality, and expanded their business overseas. The later decades saw corporates like the ITC

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and expanded their business overseas. The later decades saw corporates like the ITC (Indian Tobacco Company) also join the hotel industry with properties under ITC

Oxford(Indian Tobacco Company) also join the hotel industry with properties under ITC

Welcome Group. The year 1949 saw the organization of four regional hotels and

OxfordWelcome Group. The year 1949 saw the organization of four regional hotels and

restaurants associations with head offi ces in Delhi, Mumbai, Calcutta (now Kolkata),

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restaurants associations with head offi ces in Delhi, Mumbai, Calcutta (now Kolkata), and Madras (now Chennai). These four associations were linked in a federation, the

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and Madras (now Chennai). These four associations were linked in a federation, the

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Federation of Hotels and Restaurants in India (FHRAI), in 1955. The federation serves Oxford

Federation of Hotels and Restaurants in India (FHRAI), in 1955. The federation serves as an interface between the hospitality industry, political leadership, government, Oxfo

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as an interface between the hospitality industry, political leadership, government,

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in 1908. The two world wars brought a fresh lot of hotels to Mumbai, an important port

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in 1908. The two world wars brought a fresh lot of hotels to Mumbai, an important port city of the times. The Ritz, The Ambassador, West End, and Airlines, which opened

Universitycity of the times. The Ritz, The Ambassador, West End, and Airlines, which opened

during these years, are fondly referred to as ‘war babies’ by industry historians.

Universityduring these years, are fondly referred to as ‘war babies’ by industry historians.

Modern Era—1947 Onwards

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Modern Era—1947 Onwards After independence, there were big leaps in the hotel trade in the country. The Oberoi

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After independence, there were big leaps in the hotel trade in the country. The Oberoi Group of Hotels (founded by Rai Bahadur Mohan Singh Oberoi) and the Taj Group

University

Group of Hotels (founded by Rai Bahadur Mohan Singh Oberoi) and the Taj Group took over several British properties, maintained high standards of service and quality, Universi

ty

took over several British properties, maintained high standards of service and quality, and expanded their business overseas. The later decades saw corporates like the ITC Universi

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and expanded their business overseas. The later decades saw corporates like the ITC

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Mumbai. A few years later, the Majestic

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Mumbai. A few years later, the Majestic Hotel was opened.

PressHotel was opened.

Until 1900, almost all hotels were constructed and run as per Western traditions. The

Press Until 1900, almost all hotels were constructed and run as per Western traditions. The

fi rst Indian style hotels were Sardar Griha, which opened in 1900, and Madhavashram

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fi rst Indian style hotels were Sardar Griha, which opened in 1900, and Madhavashram in 1908. The two world wars brought a fresh lot of hotels to Mumbai, an important port Pre

ssin 1908. The two world wars brought a fresh lot of hotels to Mumbai, an important port city of the times. The Ritz, The Ambassador, West End, and Airlines, which opened Pre

ss

city of the times. The Ritz, The Ambassador, West End, and Airlines, which opened

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Current Scenario The liberalization of the Indian economy has provided a boost to the hotel industry in a big way, leading to a sharp rise in the number of the inbound and domestic tourists in the last two decades. While the main focus of the international traveller has shifted from seeing the Taj Mahal in Agra and sunbathing on Goan beaches for doing business with one of the world’s fastest growing economies, the boom in the information technology and other service sectors has placed substantial disposable incomes in the hands of Indian people, spurring the travel urge in them.

According to the Union Ministry of Tourism, 6.97 million tourists visited India in 2013 ( see Table 1.1 ). Almost one third of the international arrivals were from the United States and the United Kingdom ( see Table 1.5 ). The foreign exchange earnings from them were US $18.4 million, which was 4 per cent more than the previous year ( see Table 1.2 ). As many as 1145.28 million Indians travelled within the country ( see Table 1.3 ) to register an annual increase of about 9.6 per cent in the domestic as well as inbound tourism categories. Even in the outbound sector, 16.63 million Indians travelled abroad in 2013 ( see Table 1.4 ). However, India’s share in the global tourism business is only 1.59 per cent. It is projected that in 2014, earnings from tourism would make up 7.3 per cent of the national GDP and 11 per cent of the employed Indians would be working in this industry directly.

Table 1.1 Foreign tourist arrivals (FTA) in India during 2000–2014

Year FTA (in million) Percentage change over the previous year (%)

2000 2.65 6.7

2001 2.54 − 4.2

2002 2.38 − 6.0

2003 2.73 14.3

2004 3.46 26.8

2005 3.92 13.3

2006 4.45 13.5

2007 5.08 14.3

2008 5.28 4.0

2009 5.17 − 2.2

2010 5.78 11.8

2011 6.31 9.2

2012 6.58 4.3

2013 6.97 5.9

Jan–June, 2014 3.54 (P) 5.2@

(P): Provisional, @ Growth rate over Jan–June, 2013 Sources : (i) Bureau of Immigration, Government of India, for 1997–2013

(ii) Ministry of Tourism, Government of India, for Jan–June, 2014


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2003

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2003

2004Oxford

2004

2005Oxford

2005

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travelled abroad in 2013 ( see Table 1.4 ). However, India’s share in the global tourism

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travelled abroad in 2013 ( see Table 1.4 ). However, India’s share in the global tourism business is only 1.59 per cent. It is projected that in 2014, earnings from tourism would

Universitybusiness is only 1.59 per cent. It is projected that in 2014, earnings from tourism would

make up 7.3 per cent of the national GDP and 11 per cent of the employed Indians

Universitymake up 7.3 per cent of the national GDP and 11 per cent of the employed Indians

would be working in this industry directly.

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would be working in this industry directly.

Foreign tourist arrivals (FTA) in India during 2000–2014

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Foreign tourist arrivals (FTA) in India during 2000–2014

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Year FTA (in million) Percentage change over

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Year FTA (in million) Percentage change over

2.65University

2.65University

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from them were US $18.4 million, which was 4 per cent more than the previous

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from them were US $18.4 million, which was 4 per cent more than the previous year ( see Table 1.2 ). As many as 1145.28 million Indians travelled within the country

Pressyear ( see Table 1.2 ). As many as 1145.28 million Indians travelled within the country

( see Table 1.3 ) to register an annual increase of about 9.6 per cent in the domestic as

Press( see Table 1.3 ) to register an annual increase of about 9.6 per cent in the domestic as

well as inbound tourism categories. Even in the outbound sector, 16.63 million Indians Press

well as inbound tourism categories. Even in the outbound sector, 16.63 million Indians travelled abroad in 2013 ( see Table 1.4 ). However, India’s share in the global tourism Pre

sstravelled abroad in 2013 ( see Table 1.4 ). However, India’s share in the global tourism

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Table 1.2 Foreign Exchange Earnings (FEE) from FTA during 2000–2014

Year FEE from tourism in India (in US $ million)

Percentage change over the previous year (%)

2000 3460 15.0

2001 3198 − 7.6

2002 3103 − 3.0

2003 4463 43.8

2004 6170 38.2

2005 7493 21.4

2006 8634 15.2

2007 10,729 24.3

2008 11,832 10.3

2009 11,136 − 5.9

2010 14,193 27.5

2011 16,564 16.7

2012 17,737 7.1

2013 # 2 18,445 4.0

Jan–Jun, 2014 # 1 9334 − 0.8@

(Contd)

# 2 Advance estimates, @ Growth rate over Jan–Jun, 2013 # 1 Revised estimates Sources : (i) Reserve Bank of India, for 1997 to 2010

(ii) Ministry of Tourism, Government of India, for 2011, 2012, 2013, and 2014

Table 1.3 Domestic tourism during 2000–2013

Year No. of domestic tourist visits (in million)


2000 220.11 15.4

2001 236.47 7.4

2002 269.60 14.0

2003 309.04 14.6

2004 366.27 18.5

2005 392.01 7.0

2006 462.32 17.9

2007 526.56 13.9

2008 563.03 6.9

2009 668.80 18.8


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: (i) Reserve Bank of India, for 1997 to 2010

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: (i) Reserve Bank of India, for 1997 to 2010 (ii) Ministry of Tourism, Government of India, for 2011, 2012, 2013, and 2014

Oxford (ii) Ministry of Tourism, Government of India, for 2011, 2012, 2013, and 2014

Table 1.3

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Table 1.3

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Year No. of domestic tourist Oxford

Year No. of domestic tourist Oxford

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18,445

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18,445

9334

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9334

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Advance estimates, @ Growth rate over Jan–Jun, 2013 University

Advance estimates, @ Growth rate over Jan–Jun, 2013

: (i) Reserve Bank of India, for 1997 to 2010 Universi

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: (i) Reserve Bank of India, for 1997 to 2010

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Press24.3

Press24.3

10.3

Press10.3

− 5.9Press

− 5.9

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Table 1.3 (Contd)

Year No. of domestic tourist visits (in million)


2010 747.70 11.8

2011 864.53 15.6

2012 1045.05 20.9

2013(P) 1145.28 9.6

Table 1.4 Number of outbound visits of Indian nationals, 2000–2013

Year No. of outbound visits (in million)


2000 4.42 7.3

2001 4.56 3.4

2002 4.94 8.2

2003 5.35 8.3

2004 6.21 16.1

2005 7.18 15.6

2006 8.34 16.1

2007 9.78 17.3

2008 10.87 11.1

2009 11.07 1.8

2010 12.99 17.4

2011 13.99 7.7

2012 14.92 6.7

2013 16.63 11.4

(P): Provisional, S-DTV fi gure of 2012 has been revised Source : State/Union Territory Tourism Departments

Source : Bureau of Immigration, Government of India

Table 1.5 Top ten source countries for FTA in 2013

S. no. Source country FTAs (in million) Percentage share (%)

1 USA 10,85,309 15.58

2 United Kingdom 809,444 11.62

3 Bangladesh 524,923 7.53

4 Sri Lanka 262,345 3.77

5 Russian Fed. 259,120 3.72

6 Canada 255,222 3.66

7 Germany 252,003 3.62

8 France 248,379 3.56

( Contd)


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Oxford

Oxford

Oxford

Oxford

Oxford

Oxford

Oxford

Oxford

11.07

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11.07

12.99

Oxford12.99

2012

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2012

2013Oxford

2013Oxford

: Bureau of Immigration, Government of India Oxford

: Bureau of Immigration, Government of India

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8.2

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8.3

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16.1

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16.1

9.78

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previous year (%)

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Table 1.5 (Contd)

S. no. Source country FTAs (in million) Percentage share (%)

9 Malaysia 242,649 3.48

10 Japan 220,283 3.16

Total of top 10 countries 41,59,677 59.70

Others 28,07,924 40.30

G. total 69,67,601 100.0

Source : Bureau of Immigration, Government of India

As per the rating agency ICRA, the Indian hospitality industry is expected to grow by 9–11 per cent in 2015–16, mainly due to a modest increase in occupancy and small traction rates. There are about 1242 hotels approved and classifi ed by the Ministry of Tourism, Government of India, with a total capacity of about 76,858 hotel rooms. Unless demand keeps pace, the widening supply–demand gap will impact rate integrity over the next two years.

This growth is attributed to the country’s ‘Incredible India!’ international marketing campaign, which mounted a concerted effort in international print and electronic media, besides the Internet, outdoor advertising, and roadshows, to showcase the country’s tourism-friendly aspects. India’s open skies policy has also led to a massive growth in travel for business and pleasure. The upgradation of national highways connecting various parts of India has opened new avenues for the development of budget hotels here. All this has resulted in exciting opportunities for the hotel industry.

While the potential of the hotel business is great, there are several constraints for the industry to grow. The high cost of land in the country often discourages an investor to put money in the construction of new hotels, which is highly capital intensive—it is estimated that constructing a single fi ve-star room costs around ̀ 12.5 million (`1.25 crore). This, according to hoteliers, is hardly an incentive to construct new hotel properties. Hence, there is a mismatch between demand and supply, leading to higher occupancy rates and increasing prices. In fact, the average price of a hotel room worldwide increased by three per cent during 2013. Global travellers on an average paid two per cent more on hotels in India during 2013 when compared to 2012 to a national rate of `6278. Though this rate is affordable for business travellers, it is very diffi cult for leisure travellers to shell out so much money.

Let us now get an overall insight into hotel operations by understanding the defi nition and the core departments of a hotel.

HOTEL DEFINITION AND CORE AREAS The term hotel was used for the fi rst time by the fi fth Duke of Devonshire to name a lodging property in London sometime in AD 1760. The word hotel is derived from the French word hôtel , which refers to a French version of townhouse. Historically, in the United Kingdom, Ireland, and several other countries, a townhouse was the residence of a peer or an aristocrat in the capital or major cities. The word ‘hotel’ could have also been derived from hostel , which means ‘a place to stay for travellers’.


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While the potential of the hotel business is great, there are several constraints for the

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While the potential of the hotel business is great, there are several constraints for the industry to grow. The high cost of land in the country often discourages an investor to put

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industry to grow. The high cost of land in the country often discourages an investor to put money in the construction of new hotels, which is highly capital intensive—it is estimated that

Oxfordmoney in the construction of new hotels, which is highly capital intensive—it is estimated that

constructing a single fi ve-star room costs around

Oxfordconstructing a single fi ve-star room costs around

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hoteliers, is hardly an incentive to construct new hotel properties. Hence, there is a mismatch

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hoteliers, is hardly an incentive to construct new hotel properties. Hence, there is a mismatch between demand and supply, leading to higher occupancy rates and increasing prices. In Oxfo

rdbetween demand and supply, leading to higher occupancy rates and increasing prices. In Oxfo

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fact, the average price of a hotel room worldwide increased by three per cent during 2013. Oxford

fact, the average price of a hotel room worldwide increased by three per cent during 2013.

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widening supply–demand gap will impact rate integrity over the next two years.

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widening supply–demand gap will impact rate integrity over the next two years. This growth is attributed to the country’s ‘Incredible India!’ international marketing

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This growth is attributed to the country’s ‘Incredible India!’ international marketing campaign, which mounted a concerted effort in international print and electronic media,

Universitycampaign, which mounted a concerted effort in international print and electronic media,

besides the Internet, outdoor advertising, and roadshows, to showcase the country’s

Universitybesides the Internet, outdoor advertising, and roadshows, to showcase the country’s

tourism-friendly aspects. India’s open skies policy has also led to a massive growth in

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tourism-friendly aspects. India’s open skies policy has also led to a massive growth in travel for business and pleasure. The upgradation of national highways connecting

University

travel for business and pleasure. The upgradation of national highways connecting various parts of India has opened new avenues for the development of budget hotels

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various parts of India has opened new avenues for the development of budget hotels here. All this has resulted in exciting opportunities for the hotel industry.

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here. All this has resulted in exciting opportunities for the hotel industry. While the potential of the hotel business is great, there are several constraints for the Universi

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While the potential of the hotel business is great, there are several constraints for the industry to grow. The high cost of land in the country often discourages an investor to put Universi

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industry to grow. The high cost of land in the country often discourages an investor to put

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As per the rating agency ICRA, the Indian hospitality industry is expected to grow by

Press

As per the rating agency ICRA, the Indian hospitality industry is expected to grow by 9–11 per cent in 2015–16, mainly due to a modest increase in occupancy and small traction rates.

Press9–11 per cent in 2015–16, mainly due to a modest increase in occupancy and small traction rates.

There are about 1242 hotels approved and classifi ed by the Ministry of Tourism, Government

PressThere are about 1242 hotels approved and classifi ed by the Ministry of Tourism, Government

of India, with a total capacity of about 76,858 hotel rooms. Unless demand keeps pace, the

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of India, with a total capacity of about 76,858 hotel rooms. Unless demand keeps pace, the widening supply–demand gap will impact rate integrity over the next two years. Pre

sswidening supply–demand gap will impact rate integrity over the next two years.

This growth is attributed to the country’s ‘Incredible India!’ international marketing Press

This growth is attributed to the country’s ‘Incredible India!’ international marketing

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A hotel or an inn is defi ned by the British Law as ‘a place where a bonafi de traveller can receive food and shelter, provided he is in a position to pay for it and is in a fi t condition to be received’. Hence, a hotel must provide food (and beverage) and lodging to a traveller on payment, but the hotel has the right to refuse if the traveller is not presentable (either drunk, or disorderly, or unkempt) or is not in a position to pay for the services. Alternatively, a hotel may be defi ned as ‘an establishment whose primary business is to provide lodging facilities to a genuine traveller along with food, beverage, and sometimes recreational facilities too on chargeable basis’. Though there are other establishments such as hospitals, college hostels, prisons, and sanatoriums, which offer accommodation, they do not qualify as hotels since they do not cater to the specifi c needs of a traveller.

A hotel is thus an establishment that provides paid accommodation, generally for a short duration of stay. Hotels often provide a number of additional guest services, such as restaurants, bar, swimming pool, health care, retail shops; business facilities such as conference halls, banquet halls, boardrooms; and space for private parties such as birthdays, marriages, and kitty parties. Most of the modern hotels nowadays provide the basic facilities in a room—a bed, a cupboard, a small table, weather control (air conditioner or heater), and bathroom—along with other features such as a telephone with STD/ISD facility, a television set with cable channel, and broadband Internet connectivity. There might also be a mini-bar containing snacks and drinks (the consumption of the same is added to the guest’s bill), and tea and coffee making unit having an electric kettle, cups, spoons, and sachets containing instant coffee, tea bags, sugar, and creamer.

Core Areas of a Hotel—An Overview The organization of a hotel today is very complex and comprises various departments. The number of departments varies from one establishment to another. All departments may have their own managers, reporting to the general manager and the assistant general manager. Figure 1.19 shows the various departments typically present in a large hotel. Hotel departments fall under the category of either revenue-earning departments or support departments.

Revenue-earning departments These are operational departments that sell services or products to guests, thus, directly generating revenue for the hotel. The departments include front offi ce, food and beverage, and hotel-operated shops.

Support departments These are the ones which help to generate revenue indirectly by playing a supporting role to the hotel’s revenue-earning departments. The departments include human resource, maintenance, purchase, housekeeping, and so on.

Figure 1.19 Departments of a large hotel

Large hotel

Roomsdivision

Food andbeverage

Human resourceand training

PurchaseSales and marketing

Financialcontrol

Security


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The organization of a hotel today is very complex and comprises various departments.

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The organization of a hotel today is very complex and comprises various departments. The number of departments varies from one establishment to another. All departments

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The number of departments varies from one establishment to another. All departments may have their own managers, reporting to the general manager and the assistant

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general manager. Figure 1.19 shows the various departments typically present in a large

Oxfordgeneral manager. Figure 1.19 shows the various departments typically present in a large

hotel. Hotel departments fall under the category of either revenue-earning departments

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hotel. Hotel departments fall under the category of either revenue-earning departments

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or support departments. Oxford

or support departments.

Revenue-earning departments Oxford

Revenue-earning departments

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basic facilities in a room—a bed, a cupboard, a small table, weather control (air conditioner

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basic facilities in a room—a bed, a cupboard, a small table, weather control (air conditioner or heater), and bathroom—along with other features such as a telephone with STD/ISD

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facility, a television set with cable channel, and broadband Internet connectivity. There

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might also be a mini-bar containing snacks and drinks (the consumption of the same is

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might also be a mini-bar containing snacks and drinks (the consumption of the same is added to the guest’s bill), and tea and coffee making unit having an electric kettle, cups,

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added to the guest’s bill), and tea and coffee making unit having an electric kettle, cups, spoons, and sachets containing instant coffee, tea bags, sugar, and creamer.

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spoons, and sachets containing instant coffee, tea bags, sugar, and creamer.

Core Areas of a Hotel—An Overview

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Core Areas of a Hotel—An Overview The organization of a hotel today is very complex and comprises various departments. Universi

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The organization of a hotel today is very complex and comprises various departments. The number of departments varies from one establishment to another. All departments Universi

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The number of departments varies from one establishment to another. All departments

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a short duration of stay. Hotels often provide a number of additional guest services,

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a short duration of stay. Hotels often provide a number of additional guest services, such as restaurants, bar, swimming pool, health care, retail shops; business facilities such

Presssuch as restaurants, bar, swimming pool, health care, retail shops; business facilities such

as conference halls, banquet halls, boardrooms; and space for private parties such as

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birthdays, marriages, and kitty parties. Most of the modern hotels nowadays provide the

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birthdays, marriages, and kitty parties. Most of the modern hotels nowadays provide the basic facilities in a room—a bed, a cupboard, a small table, weather control (air conditioner Pre

ssbasic facilities in a room—a bed, a cupboard, a small table, weather control (air conditioner or heater), and bathroom—along with other features such as a telephone with STD/ISD Pre

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or heater), and bathroom—along with other features such as a telephone with STD/ISD

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The various departments in a hotel are discussed briefl y as follows (for details, refer Chapter 3 ):

Rooms Division Department In a large hotel, the housekeeping, front offi ce, and maintenance departments come under rooms division. These departments together are responsible for maintaining and selling the rooms in a hotel. In most hotels, these are the departments that directly or indirectly generate more revenue than any other department. This is because the sale of rooms constitutes a minimum of 50 per cent of the total revenue of a hotel. A hotel’s largest margin of profi t comes from room sales because a room, once made, can be sold over and over again. The rooms division is headed by the rooms division manager to whom the front offi ce manager, executive housekeeper, and very often, the chief engineer report.

Housekeeping department The housekeeping department is responsible for the cleanliness and upkeep of the front of the house areas as well as back of the house areas, so that they appear as fresh and aesthetically appealing as on the fi rst day when the hotel opened for business. This department is headed by the executive housekeeper or, in chain hotels, the director of housekeeping.

Front offi ce department Headed by the front offi ce manager, this department is the operational department responsible for welcoming and registering guests, allotting rooms, and helping guests check out. Uniformed services such as concierge, bell desk, and EPBAX operators are part of the front offi ce department.

Maintenance department The maintenance department, also called the engineering and maintenance department, is headed by the chief engineer or the chief maintenance offi cer. The department is responsible for all kinds of maintenance, repair, and engineering work on equipment, machines, fi xtures, and fi ttings.

Food and Beverage Department The food and beverage (F&B) department includes restaurants, bars, coffee shops, banquets, room service, kitchen, and bakery. This department is headed by the F&B director. While the restaurants, bars, coffee shops, banquets, and room service may be grouped specifi cally under the F&B service department, headed by the F&B manager, the kitchen and bakery fall under the F&B production department, headed by the executive chef.

Human Resource Department The human resource (HR) department—or the personnel department, as it used to be called earlier—is headed by the human resource manager. Recruitments, orientation, training, employee welfare and compensation, labour laws, and safety norms for the hotel come under the purview of the HR department. The training department is an ancillary department of the HR department. This is headed by the training manager, who takes on the specifi c task of orientation and training of new as well as existing employees.

Sales and Marketing Department The sales and marketing department is headed by the sales and marketing manager. A large hotel may have three or more employees in this department, whereas a small hotel


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and maintenance department, is headed by the chief engineer or the chief maintenance

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and maintenance department, is headed by the chief engineer or the chief maintenance offi cer. The department is responsible for all kinds of maintenance, repair, and

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offi cer. The department is responsible for all kinds of maintenance, repair, and engineering work on equipment, machines, fi xtures, and fi ttings.

Oxfordengineering work on equipment, machines, fi xtures, and fi ttings.

Food and Beverage Department

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Food and Beverage Department The food and beverage (F&B) department includes restaurants, bars, coffee shops, banquets,

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The food and beverage (F&B) department includes restaurants, bars, coffee shops, banquets,

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room service, kitchen, and bakery. This department is headed by the F&B director. While Oxford

room service, kitchen, and bakery. This department is headed by the F&B director. While the restaurants, bars, coffee shops, banquets, and room service may be grouped specifi cally Oxfo

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the restaurants, bars, coffee shops, banquets, and room service may be grouped specifi cally

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opened for business. This department is headed by the executive housekeeper or, in

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opened for business. This department is headed by the executive housekeeper or, in

Headed by the front offi ce manager, this department is

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the operational department responsible for welcoming and registering guests, allotting

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the operational department responsible for welcoming and registering guests, allotting rooms, and helping guests check out. Uniformed services such as concierge, bell desk,

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rooms, and helping guests check out. Uniformed services such as concierge, bell desk, and EPBAX operators are part of the front offi ce department.

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and EPBAX operators are part of the front offi ce department.

The maintenance department, also called the engineering

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The maintenance department, also called the engineering and maintenance department, is headed by the chief engineer or the chief maintenance Universi

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and maintenance department, is headed by the chief engineer or the chief maintenance offi cer. The department is responsible for all kinds of maintenance, repair, and Universi

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offi cer. The department is responsible for all kinds of maintenance, repair, and

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the front offi ce manager, executive housekeeper, and very often, the chief engineer report.

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the front offi ce manager, executive housekeeper, and very often, the chief engineer report.

The housekeeping department is responsible for the

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cleanliness and upkeep of the front of the house areas as well as back of the house areas,

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so that they appear as fresh and aesthetically appealing as on the fi rst day when the hotel opened for business. This department is headed by the executive housekeeper or, in Pre

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can do with just one employee. The function of this department is fi ve-fold—sales, personal relations, advertising, getting MICE (meeting, incentive, conference, and exhibition) business, and market research. All these functions lead to the common goal of selling the product of the hotel—that is, rooms—and the services of the hotel by ‘creating’ customers.

Purchase Department The purchase department is led by the purchase manager, who, in some properties, may report to the fi nancial controller. The procurement of all departmental inventories is the responsibility of the purchase department. In most hotels, the central stores are part of the purchase department.

Financial Control Department The fi nancial control department, also called the control department, is headed by the fi nancial controller, who is responsible for ratifying all the inventory items of the operational departments. Inventory control procedures are the responsibility of this department. The fi nancial controller, along with the general manager, is responsible for fi nalizing the budgets prepared by the heads of other departments. The hotel’s accounts are also maintained by the controls department. Accounting activities include making payments against invoices, billing, collecting payments, generating statements, handling bank transactions, processing employee payroll data, and preparing the hotel’s fi nancial statements.

Security Department Headed by the chief security offi cer, the security department is responsible for safe-guarding the assets, guests, and employees of the hotel. Their functions include conduct-ing fi re drills, monitoring surveillance equipment, and patrolling the property.

SUMMARY

Hospitality industry is an umbrella term, which includes a broad variety of service industries, and is not limited to, hotels, food service, casinos, and tourism. The industry is very diverse and global and is greatly impacted by fl uctuations within the economy and by various happenings across the world.

Tourism and hospitality are among the major revenue-earning enterprises in the world and also happen to be among the highest priority industries and employers. There has been an upmarket trend in tourism over the last few decades due to develop-ments in technology and transport infrastructure as well as aggressive marketing by tour operators and travel agencies. Tourism contributes to the economic growth of a country by causing employment gener-ation, foreign exchange earning, and infrastructure development. It also promotes a wide range of related

industries, such as restaurants, retail and shopping, transportation, and cultural industries.

The origin of the global tourism industry can be traced to the early lodging facilities in Europe. How-ever, the modern hotel industry took shape in the American continent; some of the landmarks are the City Hotel in New York, the Tremont House in Boston, and the Statler Hotel in Buff alo. Indian hotel industry has also risen by leaps and bounds from ancient times to modern era. Today, India is an important interna-tional tourist destination with 1.59 per cent share in the global business. In absolute terms, 6.97 million international tourists arrived in India during 2013 and spent US $18.4 million. This growth is attributed to the country’s ‘Incredible India!’ international mar-keting campaign and its open skies policy, which have led to a massive growth in travel for business


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ing fi re drills, monitoring surveillance equipment, and patrolling the property.

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Hospitality industry is an umbrella term, which Oxford

Hospitality industry is an umbrella term, which

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fi nancial controller, along with the general manager, is responsible for fi nalizing the budgets

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fi nancial controller, along with the general manager, is responsible for fi nalizing the budgets prepared by the heads of other departments. The hotel’s accounts are also maintained by

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prepared by the heads of other departments. The hotel’s accounts are also maintained by the controls department. Accounting activities include making payments against invoices,

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billing, collecting payments, generating statements, handling bank transactions, processing

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employee payroll data, and preparing the hotel’s fi nancial statements.

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employee payroll data, and preparing the hotel’s fi nancial statements.

Headed by the chief security offi cer, the security department is responsible for safe-

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Headed by the chief security offi cer, the security department is responsible for safe-guarding the assets, guests, and employees of the hotel. Their functions include conduct-Universi

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guarding the assets, guests, and employees of the hotel. Their functions include conduct-ing fi re drills, monitoring surveillance equipment, and patrolling the property. Universi

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The fi nancial control department, also called the control department, is headed by the

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KEY TERMS

Bureau de change fr . An offi ce or part of a bank where foreign currency is exchanged

Busboy An employee in a restaurant or café who clears away dishes, sets tables, and assists the servers

Caravan A group of people, vehicles, or super-vised animals that are travelling together for security

Domestic tourism The tourism activity of people within their own country

Hotel A place where a bonafi de traveller can receive food and shelter, provided he/she is in a position to pay for it and is in a fi t condition to be received

Inbound tourist This refers to tourists enter-ing a particular country

Itinerary A plan for a journey, listing different places in the order in which they are to be visited

Memento An object given or kept as a remind-er or in memory of somebody or something

Motel A hotel for people who are travelling by car, with space for parking cars near the rooms

Outbound tourist This refers to tourists trav-elling abroad for business or leisure

Sommelier A wine steward in a restaurant, hotel, or other establishment, who supervises the ordering, storing, and serving of wine

Souvenir Something bought or kept as a reminder of a place or occasion

Tourism Movement of people from their nor-mal place of residence to another place (with the intention to return) for a minimum period of 24 hours to a maximum of six months for the sole purpose of leisure and pleasure

EXERCISES

Review Questions

Multiple-choice Questions 1. Concierge, bell desk, and EPABX operators are

part of (a) rooms division department (b) housekeeping department (c) front offi ce department (d) maintenance department

2. During which year did the organized existence of the Indian hotel industry start to take shape? (a) Colonial period (b) Modern era (c) Ancient era (d) Medieval era

3. The primitive lodging houses in Switzerland were known as (a) mansionis (b) hospitia (c) phatnal (d) Both (a) and (b)

4. Which of the following is required by a person to travel to a foreign country? (a) Passport (b) Visa (c) Foreign exchange (d) All of these

and pleasure. All this has opened exciting opportuni-ties for the hotel industry. The hospitality industry is expected to grow by 9–11 per cent in 2015–16, main-ly due to a modest increase in occupancy and small traction rates.

A hotel may be defi ned as an establishment whose primary business is to provide lodging

facilities to a genuine traveller along with food, beverage, and sometimes recreational facilities too on chargeable basis. The organization of a hotel is complex and comprises various revenue-earning and support departments—rooms division, food and beverage, human resource, sales and marketing, purchase, fi nancial control, and security.


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Oxford A plan for a journey, listing different

Oxford A plan for a journey, listing different

places in the order in which they are to be visited

Oxfordplaces in the order in which they are to be visited

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Oxford

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receive food and shelter, provided he/she is in

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receive food and shelter, provided he/she is in a position to pay for it and is in a fi t condition

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a position to pay for it and is in a fi t condition

This refers to tourists enter-University

This refers to tourists enter-

A plan for a journey, listing different Universi

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A plan for a journey, listing different

elling abroad for business or leisure

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elling abroad for business or leisure Sommelier

University Sommelier A wine steward in a restaurant,

University A wine steward in a restaurant,

hotel, or other establishment, who supervises

Universityhotel, or other establishment, who supervises

the ordering, storing, and serving of wine

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the ordering, storing, and serving of wine Souvenir

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Souvenir reminder of a place or occasion

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reminder of a place or occasion Tourism

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Tourism

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er or in memory of somebody or something

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er or in memory of somebody or something A hotel for people who are travelling

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A hotel for people who are travelling by car, with space for parking cars near the

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Outbound tourist Press

Outbound tourist elling abroad for business or leisure Pre

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5. In which year did the Indian government consti-tute the India Tourism Development Corporation (ITDC)? (a) 1966 (b) 1968 (c) 1950 (d) 1976

Match the Following

Dharmashala JapanRyokans IndiaRelay houses AmericaTaverns ChinaHospitia EuropeCoffee houses Switzerland

Discussion Questions

1. Defi ne the term hotel. 2. Defi ne tourism and enumerate the importance

of tourism with respect to the hotel industry. 3. List the different types of lodging houses that

existed in ancient Europe. 4. What facilities does a hotel provide to its guests? 5. Trace the origin and growth of the hotel industry

in India. 6. What was the impact of the Grand Tour on the

development of the hotel industry in Europe? 7. How does tourism affect the hotel industry? 8. Discuss the contribution of American hoteliers to

the development of the hotel industry.

Article Thakaral, Tarun (2008), ‘Hotel Industry Poised for a

New Growth Phase’, Financial Express , 20 March, http://www.financialexpress.com /news/ hotel-industry-is-poised-for-a-new-growth-phase/286542/, last accessed on 15 July 2015.

Book Raghubalan, G. and Smritee Raghubalan (2007), Hotel

Housekeeping , Oxford University Press, New Delhi.

Websites http://tourism.gov.in : Website of the Ministry

of Tourism, Government of India, for India-specifi c information and tourism statistics 2013-14, last accessed on 30 March 2015.

www.buffaloah.com /h/statler/hotel/index.html: Website of the Statler Hotel, last accessed on 25 January 2015.

www.fhrai.com : Website of the Federation of Hotels and Restaurants Association of India, last accessed on 25 March 2015.

www.maharashtra.gov.in /english/gazetteer/great-er_bombay/miscellanoues.html: For history of hotels during the colonial period, last accessed on 25 January 2015.

www.nationmaster.com /encyclopedia/Indian-Postal-Service: For history of sarais in medieval India, last accessed on 21 January 2015.

www.theashokgroup.com /itdc.html: Website of India Tourist Development Corporation, last accessed on 30 March 2015.

www.unwto.org : Website of the United Nations World Travel Organization for current trends on tourism, last accessed on 31 March 2015.

www.wttc.org : Offi cial website of World Travel and Tourism Council, last accessed between 24 February and 6 March 2015.

REFERENCES

Project Work Identify a leading hotel chain and ascertain the following: 1. When did the company start its operations? 2. Who is the owner of the chain? 3. Which is the chain’s fi rst property? 4. What are the innovations and contributions of

the hotel chain? 5. Find the different brands operated by the chain. 6. Carry out a comparative analysis of the facilities

and services with other hotel chains. You may take help from the Internet for your

assignment.


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Thakaral, Tarun (2008), ‘Hotel Industry Poised for a

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Thakaral, Tarun (2008), ‘Hotel Industry Poised for a New Growth Phase’, Oxfo

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New Growth Phase’, Financial ExpressOxford

Financial Express http://www.financialexpress.com /news/ Oxfo

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http://www.financialexpress.com /news/ Oxford

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University Project Work

4. What are the innovations and contributions of

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4. What are the innovations and contributions of

the hotel chain?

Universitythe hotel chain?

5. Find the different brands operated by the chain.

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5. Find the different brands operated by the chain. 6. Carry out a comparative analysis of the facilities

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6. Carry out a comparative analysis of the facilities and services with other hotel chains.

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and services with other hotel chains. You may take help from the Internet for your

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You may take help from the Internet for your

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7. How does tourism affect the hotel industry?

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7. How does tourism affect the hotel industry? 8. Discuss the contribution of American hoteliers to

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8. Discuss the contribution of American hoteliers to the development of the hotel industry.

Pressthe development of the hotel industry.

Documents

Jatashankar R. Tewari Oxford