EXECUTIVE SUMMARY

Hotel operators and observers often employ industry-wide averages as key points of comparison and analysis for room rates, occupancy, and revenues. The use of simple averages, however, can be misleading if one does not take into account the possibility that a mean will be pulled in one direction or another by extreme values. This analysis of three industry averages shows that those averages are, indeed, subject to distortion, or skew. The analysis, which examines figures for virtually all brand-name hotels in the United States, determined that the means for average daily rate (ADR) and revenue per available room (RevPAR) are skewed in a positive direction by hotels with extremely high rates. On the other hand, occupancy is skewed in a negative direction by a group of hotels with inordinately low occupancy levels. Many of the extreme values are found in the top-25 markets, which have hotels with inordinately high ADRs. Analysis of those markets shows that, once again, the overall statistics are distorted by a relatively small set of hotels with exceptional ADRs and occupancies. However, each of the top markets shows a distinctive rate and occupancy pattern. The pattern of skewed operating statistics carries over into individual lodging segments. The greatest distortions arise in the luxury and upscale segments, while economy and budget hotels record more consistent (normally distributed) statistics. Finally, the analysis shows that although the events of created much turmoil for the industry, the hotel business had already cooled substantially from its record pace of a year earlier. In conclusion, managers must be careful in applying overall industry statistics to their own situation and should take into account the factors that distort operating statistics.

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Hospitality Industry:
The hospitality industry consists of broad category of fields within the service industry that includes lodging, restaurants, event planning, theme

parks, transportation, cruise line, and additional fields within the tourism industry. The hospitality industry is a several billion dollar industry that mostly depends on the availability of leisure time and disposable income. A hospitality unit such as a restaurant, hotel, or even an amusement park consists of multiple groups such as facility maintenance, direct operations (servers, housekeepers, porters, kitchen workers, bartenders, etc.), management, marketing, and human resources. The hospitality industry covers a wide range of organizations offering food service and accommodation. The industry is divided into sectors according to the skill-sets required for the work involved. Sectors include accommodation, food and beverage, meeting and events, gaming, entertainment and recreation, tourism services, and visitor information. Defining of Hospitality

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Introduction to Global Hospitality Industry:
Global Hospitality is a leading executive search firm serving the hotel, restaurant, and hospitality industries exclusively. With international offices and a professional staff having well over a century of accrued experience in the hospitality and recruiting industry, Global provides worldwide, industry-wide reach in finding and recruiting "star" candidates for all key positions. The company has earned an extraordinary reputation for successful recruitment and placement of talented hospitality executives in a broad range of senior-level and management roles in hotels, resorts, spas, clubs, casinos, restaurants, convention facilities, campus/university dining services, food service companies, and other areas of the hospitality industry. The global hospitality industry continues to recover and should grow in 2011, with specific hotspots leading the pack.

This year, the global hospitality industry should build on the gains made in 2010. Tourism growth is especially strong in the BRIC countries (Brazil, Russia, India and China). Still, the industry remains alert for new government regulations and consolidated accounting standards.

Rapid changes in the global economy are sweeping all sectors of business and the hotel industry cannot be immune to it. Demand for hotel rooms, which slumped during the recession period, is on a rebound in line with recovery in economic scenario. Luxury hotels in the US are exhibiting a more resilient recovery compared to other segments of the industry post recession. Though the recovery rate is fast, luxury hotels segment still lags in the revenue-per-room and occupancy percentage. A host of new constructions is expected to come up in near future as hoteliers lineup a pipeline of new hotel developments for addressing rising demand for hotel rooms and services. Healthy hotel services such as wellness & healing programs, as well as customized menus are an emerging trend in the current hospitality industry. The hotel industry in China is a global frontrunner as the country‘s economy is the fastest emerging market. In addition, India, a developing global business hub, offers attractive investment propositions for both upscale branded and moderate-tier hotels.

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With the industry focusing on making travelling a healthy experience, especially for regular travelers, new practices such as wellness and healing programs including hypno-therapy and acupuncture are being incorporated in the service menu. The global outlook series on the Hotel Industry provides a collection of statistical anecdotes, market briefs, and concise summaries of research findings. The report provides an aerial view of the Hotel Industry, and the dynamics underlying this aspirational needs driven market.

History of Global Hospitality Industry:
Evidence of hotels and the hospitality industry have been recorded as far back as biblical times when Mary and Joseph arrived in Bethlehem during the census. As the Bible depicts, Mary and Joseph were refused accommodations because there "was no room at the inn." Since the beginning of time, people have travelled for commerce, religion, family, health, immigration, education and recreation. As cited by Texas Tech University, the word "hospitality" comes from the Latin root meaning "host" or "hospice." The university further noted that the first hotels were nothing more than private homes opened to the public. Most, unfortunately, had poor reputations. Under the influence of the Roman Empire, inns and hotels began catering to the pleasure traveller in an effort to encourage visitors. The first inn located in America was recorded in the year 1607 and lead the way with many other firsts in the hospitality industry. The first publicly held hotel (the City Hotel) opened in New York in 1792. The first modern hotel (the Tremont) opened in Boston in 1809 and the first business hotel (the Buffalo Sattler) opened in 1908. From there a surge of hotels flooded American and the rest of the world with prominent names such as Radisson, Marriot and Hilton.

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Hotels took a distinct step up in style and class when the Tremont House opened in Boston in 1829. This hotel was considered by many to be the beginning of what was regarded as first class service. With 170 rooms, the Tremont House was a large facility. In addition, the hotel offered features which, for the time, were amazing. Private single and double rooms were available, which offered not only privacy, but also security. In addition to water pitchers and a washing bowl, free soap was provided in each room. The Tremont House offered French cuisine and, reportedly, was the first hotel to have a Bellboy. In 1908, the Buffalo Sattler opened, marking the beginning of the modern commercial hotel era. Many services now considered standard were introduced by the Sattler, including such amenities as a light switch next to the door, private bathe, ice water and a morning newspaper. The Statler set the standard of the day by being clean, comfortable and affordable. The Sattler served as the pattern for hotel design and operation for many years. In the 1920‘s, hotel building entered a boom phase and many famous hotels were opened, including the Waldorf Astoria, New York‘s Hotel Pennsylvania, and the Chicago Hilton and Towers, which was originally named the Stevens. Motels began to replace roadside cabins as use of the automobile spread throughout society. Offering clean rooms with adjacent parking, motels enjoyed great popularity with the traveling public. In the 1950‘s and 1960‘s, the practice of franchising appeared within the industry. Franchising enabled entrepreneurs to expand their operations without the use of substantial capital. For much of their history, hotels were owned and operated by individuals. However, as franchises and chains began to appear, individually owned hotels found themselves increasingly at a competitive disadvantage. By the 1960‘s, independent prospects began to improve as the result referral organizations such as Quality Courts, Best Western, Master Host and Best Eastern.

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GLOBAL HOSPITALITY SCENARIO: The hospitality industry being highly sensitive to economic and competitive market conditions will need to address six important issues in couple of years, cost controlling, branding, new expansion strategies, head count management, eco-friendly initiatives and technological innovations / adaptations. The important issues can be addressed by understanding and establishing strategy to address, consumer trends, economic conditions, technology, competition and concerns for public safety. Branding has become increasingly important in the hospitality segment. There are, of course, the large hotel brands, which seem to grow larger every day with strategic market segment tiers, and then the well-known, single – entity hotels, which will never be more than ―brands of one.‖ Yet branding must extend beyond sticking a logo on building signage and letterhead. Any brand must tap into the psyche of customers to stimulate the highest level of interactivity. Travel and tourism is one of the fastest-growing industries and a leader in many countries. It is expected to have generated around 9.4% of world GDP and 8.2% of total employment in 2009. The contribution of the industry to the global economy remains high despite a 4.38% decline in 2009. During the year, travel and tourism investment too declined by more than 12%. International tourist arrivals rose from 682 million in 2001 to 920 million in 2008. The global travel and tourism industry experienced a downturn in 2009 due to the global economic and financial meltdown. The industry was affected by low business volumes and consumer confidence, given the uncertainty about factors such as availability of credit, exchange rates, employment, and the H1N1 virus. Consequently, tourist arrivals fell 4% worldwide in 2009. Nevertheless, tourist arrivals increased 2% in the last quarter of 2009, led by recovery in the Asia Pacific and the Middle East.

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The industry is expected to improve in 2010, as most of the leading economies are exiting the recession since end-2009. However, it is expected to be gradual as corporations, households and governments slowly recover. Given the improvement in global economic conditions, the UNWTO forecasts a 3-4% increase in international tourist arrivals during 2010. Asia is expected to continue showing the strongest rebound, while Europe and Americas are likely to recover at a more moderate pace. The expected rebound in tourism materialised in the first four months of 2010. This is reflected in the 7% increase in international tourist arrivals during January-April 2010. Tourist arrivals grew at a faster pace of 8% in emerging markets, while advanced economies reported a 5% increase.

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GLOBAL HOSPITALITY TRENDS IN HOTELS & RESORTS: Less real Service:
There is less service provided by the staff and more service provided by the guest. This is evident in everything from making one's own reservation, checking in, unpacking, making a telephone call, help yourself breakfasts, wakeup calls, used room service trolleys, hanging wet towels, market research disguised as a registration card. The term userfriendly has been accepted as a replacement for service. This is not necessarily less of an experience, it is merely different.

Forever changing employees:
There are less applicants for jobs and they stay in the job less time either by their choice or ours. They are largely foreign workers in the urban developed world and untrained but willing workers in the developing world. The shortage of 10-15 million workers in this industry will result in hotels having insufficient workers to operate, exploding salaries, eroding profits and increased illegal immigration. Multi-tasking employees would allow more productivity but will be difficult to impossible in Union controlled situations.

Multiple brands from the same mould:
Chains are so hungry for expansion; they now lack consistency from one hotel to another or from one country to another. Rather than fix an old chain, it is easier to create a new one. There are more brands offering the same base product with virtually no differentiation.

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Management Companies:
The function of a third-party management company has been largely replaced by technology. Best Practices and performance measurements are easier to communicate and measure through technology and does not require a headquarters overhead to deliver or monitor personally.

Pricing by Greed:
While in days gone by, pricing was largely based on the cost of the product, today it is largely based on demand. In these circumstances, one can pay a fortune for a product that costs pennies but rarely benefit from the cost-based, cheaper product in slow periods.

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Top 20 global hotel brands:
Possessing some 307,155 rooms in its hotel portfolio it is significantly larger than the next biggest, the Holiday Inn which offers 230,117 rooms. The Marriott comes in third with 204,019 rooms. The fastest growing is French budget brand Ibis, which added, over the course of the previous 12 months, 5.1% more rooms, taking their current total to 107,735 in 900 hotels. 1. Best Western 2. Holiday Inn 3. Marriott Hotels & Resorts 4. Comfort Inns 5. Hilton 6. Holiday Inn Express 7. Hampton Inn 8. Days Inn of America 9. Sheraton Hotels and Resorts 10. Super 8 Motel 11. Courtyard 12. Quality Inns, Hotels and Suites 13. Ramada Worldwide 14. Ibis 15. Motel 6 16. Crowne Plaza

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17. Hyatt Hotels 18. Radisson Hotels 19. Home Inns 20. Mercure The largest hotel chain British company, InterContinental, owner of such major brands as the Holiday Inn, Crowne Plaza and InterContinental. In total they offer a massive 647,161 rooms around the world which is just under 35,000 more than Wyndham Hotels in second place and just over 40,000 more than the third placed Hilton.

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Strategies in the Global Hospitality Industry:
1) Emerging markets:
China and India will continue to be the key hospitality markets, and according to the report, by 2015 these countries will have absolute year-on-year tourism growth greater than the United Kingdom, France or Japan. In the emerging markets, the rise of the middle classes will drive significant new demand for both leisure and business hospitality. The greatest future potential in these markets will lie in developing mid-market and economy-branded products aimed at the domestic traveller.

2. Changing Demographics:
In 2015 and beyond there will be two key demographic drivers of change in the industry, which will create new patterns of travel and demand in the West, and important new source markets in the East: the ageing baby boomer population, and the emerging middle classes of China and India. By 2015, US boomers are forecasted to account for 60 percent of the nation‘s wealth and 40 percent of spending .The key to attracting boomers is appealing to their ‗forever young‘ attitude and desire for experiential travel.The middle classes of China and India will also create ripples of change far into the future as their travel patterns evolve from domestic to regional to international. India alone is forecasted to have 50 million outbound tourists by 2020.

3. Staff retention:
An average hotelier spends 33 percent of revenues on labour costs, but employee turnover in the industry is as high as 31 percent. High employee turnover continues to plague the industry and operators need robust strategic plans to retain their critical employees and manage turnover.

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4. Crisis Management:
According to the report, the key to the hospitality industry‘s survival of unpredictable shocks and minimizing their impact is to establish appropriate responses, protocols and risk management programs. Operators also need to capitalize on new opportunities that may present themselves in challenging times.

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Global travel and tourism Hospitality Industry:
Travel and tourism is one of the fastest-growing industries and a leader in many countries. It is expected to have generated around 9.4% of world GDP and 8.2% of total employment in 2009. The contribution of the industry to the global economy remains high despite a 4.38% decline in 2009. During the year, travel and tourism investment too declined by more than 12%. International tourist arrivals rose from 682 million in 2001 to 920 million in 2008. The global travel and tourism industry experienced a downturn in 2009 due to the global economic and financial meltdown. The industry was affected by low business volumes and consumer confidence, given the uncertainty about factors such as availability of credit, exchange rates, employment, and the H1N1 virus. Consequently, tourist arrivals fell 4% worldwide in 2009. Nevertheless, tourist arrivals increased 2% in the last quarter of 2009, led by recovery in the Asia Pacific and the Middle East. The industry is expected to improve in 2010, as most of the leading economies are exiting the recession since end-2009. However, it is expected to be gradual as corporations, households and governments slowly recover. Given the improvement in global economic conditions, the UNWTO forecasts a 3-4% increase in international tourist arrivals during 2010. Asia is expected to continue showing the strongest rebound, while Europe and Americas are likely to recover at a more moderate pace. The expected rebound in tourism materialised in the first four months of 2010. This is reflected in the 7% increase in international tourist arrivals during January-April 2010. Tourist arrivals grew at a faster pace of 8% in emerging markets, while advanced economies reported a 5% increase.

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International tourism made steady recovery in 2010 according to the Advance Release of the UNWTO World Tourism Barometer. Tourist arrivals were up by 6.7% (up 58 million) to 935 million, from 2009 and 22 million more than the pre-crisis peak level of 2008 (913 million)(see chart 4). All important destinations globally registered positive numbers, sufficient to offset recent losses. This recovery which was primarily because of emerging economies came at varying speeds. The rate was lower in advanced economies (+5%) and faster in the emerging ones (+8%) reflecting a global economic situation that is set to dominate in the near future. Although tourism and hospitality is one of the largest industries globally, spending on tourism and hotels is directly related to the economic cycle. Spending on leisure activities is amongst the first things that consumers cut back during times of economic hardship. The travel and hotel industry is thus affected by reduced demand when economy shows signs of slowdown. Since 2010 international tourism continued to recover from the decline it experienced for the past couple of years on account of economic crisis. The number of hotel rooms that came on stream from December 2009 till November 2010 was 217,000 with the majority of it coming from the Americas (see chart1). 2010 also witnessed important mega-events such as sport, culture and exhibitions. These events attracted visitors and positioned host countries as attractive tourism destinations. Few noteworthy events include the Shanghai Expo in China, Winter Olympics in Canada

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Benefits of working in Hospitality Industry:
Hospitality is a universal industry affecting vast number of hotels, bars, restaurants, resorts, cafes, pubs, fast food outlets and coffee shops making this industry one the largest job provider in the world. By having hospitality knowledge you may work anywhere in the world and help the industry with your skills and talent particularly with a hotel job. It has a standing for low paying jobs and long working hours however there is an increasing trend of corporations becoming more flexible and offering greater rewards to support people into the industry. Some of the benefits of doing job in the hospitality sector include learning precious skills which will help you in making money anywhere in the world, benefits of working in rapidly growing sector, more flexible working hours, you have fun while getting paid and excellent way to make some extra money. There are various trouble-free ways for making the most in the hotel industry towards a hotel management career. It is the right career choice for you if you have outstanding organizational skills, good communication and interpersonal skills, likes to work in team and are ready to work for long hours. Here is a brief outline of the advantages of working in this industry and why it is also a challenging place to work. Firstly, the large range of roles available in this industry is significant. The main roles that most people are aware of are things like Pub and Restaurant Managers, Receptionists, Chefs, Catering Managers, Restaurant staff and various assistant roles. You can specialise in the area that interests you most. For example anyone who becomes a chef is highly likely to be extremely passionate about food, baking and cooking. Therefore many Chefs truly love what they do and are grateful to be working in an industry they love. A Chef has the opportunity to bring their passion and innovative ideas to life and see the results.

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Another advantage of the hospitality sector is that there are a lot of entry level positions available. These junior roles can provide candidates with the relevant experience that is vital to career progression within the industry. Some of these roles include jobs like restaurant assistants, Junior Chefs, Receptionists, Bar Staff and Hotel catering staff. These roles offer the potential to progress into management if you work hard and show that you have the necessary skills and experience to take on more responsibility. Moreover, if you do decide to try a new role there is great deals of transferable skills that can be used across several different job roles in the hospitality industry. A slight disadvantage to working in the hospitality Industry is that there is high competition for the more senior roles. You will need to establish a positive reputation within the industry and put in lots of hard work to obtain the respect and experience needed to take on a senior role. Employees working in this industry will also have to be prepared to work fairly long hours in some roles in order to prove themselves. For example Chefs and restaurant managers have to work long and sometime unsociable hours.

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Global Hospitality industry stands at the growth:
Big hotel operators are increasingly expanding to exploit the existing gap in rooms and internationally branded hotels in Africa‘s major cities. A survey by Lagos-based hospitality industry consulting firm W Hospitality Group reveals 20 of Africa‘s most active operators plan to grow their portfolios by more than 30 000 hotel rooms across the continent over the coming years. International hotel owners and investors who attended the Hospitality Investment Conference Africa (HICA) in November were in consensus that there is a lot of money waiting to be invested in Africa‘s hospitality sector. However, the continent needs to improve the investment climate in order to attract big investors. ‗American and European investors are particularly geared for expansion into Africa. To capture these funds the continent has to resolve certain issues that restrain investment in the hotel industry. The tourism and hospitality industry is recognised as one of Africa‘s greatest but most under-invested assets. The Africa investor 2010 Wealth Cheque Report estimates that the tourism market today is worth $49.90-billion, but has $203.7-billion of untapped potential with an estimated total market size of $253.5-billion. This is more than four times its current level in terms of potential, presenting rich opportunities for potential investors. Opportunities for the global hospitality industry will be influenced by among other dynamics the more than 150 million Chinese people, who are likely to become international travellers in the near future, the world‘s ageing population, which will mean increased travel, double digit economic growth in Asia and technical advances in the airline industry that will make long-haul travel easier.

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Green Movement Grows in Global Hospitality Industry:
Eco-friendly efforts of hotels and resorts in eight regions of the world, finds progress in the greening of the hospitality industry and identifies 10 areas in which the business could do better. Governmental and nongovernmental organizations, corporations and consumers are increasingly focusing on the need to exist in harmony with their surroundings and reduce their environmental footprints. The hospitality industry is no exception, and finally, the concept of sustainability has begun to gain momentum in this sector." Over the last decade, the movement towards ecologically sound tourism has swept across the globe; and the practices being implemented are as diverse as the different geographies," the report said. "Hotel companies are being prompted by rising energy costs, government pressure, consumer expectations and the competitive landscape to increasingly make sustainability a top priority." Researchers saw growth in Earth-friendly attributes and amenities in luxury lodgings throughout the areas examined. The degree to which such practices were in place for other brackets of travel differed from region to region. Green Hospitality:

The hospitality industry has been going green for several years now--both in construction and in the conservation methods.

Hospitality industry is making great strides in encouraging their guests to become more energy efficient.

Eco-friendly promotional gifts for guests--from water bottles made from recycled plastic to recycled and biodegradable tote bags.

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Often these are given out to guests in return for helping to turn off the lights, reusing bedding and towels, and keeping their a/c or heating temperatures at a comfortable level.

As guests become more cognizant of the importance of small reductions, they will hopefully carry them out at home as well--creating a greener planet in small step

Trends Shaping the Future of the Hospitality Industry:
1. POPULATION TRENDS

THE WORLDS POPULATION WILL GROW TO 9 BILLION BY 2050.

Early versions of this report predicted that the world‘s population would double by 2050, and population growth has proceeded almost exactly on schedule. However, even this estimate may be too low. According to the Center for Strategic and International Studies, most official projections underestimate both fertility and future gains in longevity.

Population of the developed world is living longer:

Healthier aging in the developed world may offer new hope to the world‘s poorer, sicker lands. Faced with declining growth in their pharmaceutical industries, western nations— and particularly the United States—are likely to subsidize research and treatment for diseases that burden the poor countries of Africa and Asia. This will give those lands their first real prospects for economic growth and improved quality of life.

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2. SOCIETAL TRENDS:

Social values are changing rapidly:

Industrialization raises educational levels, changes attitudes toward authority, reduces fertility, alters gender roles, and encourages broader political participation. This process is just beginning throughout the developing world.

Implications for Hospitality and Travel:

Hospitality and travel operators are likely to find themselves facing more demands to watch for suspicious activities in travel destinations, or even to provide security agencies with information about their guests.3) Generation and family trends: Family Structure is becoming more diverse: In periods of economic difficulty, children and grandchildren move back in with parents and grandparents to save on living expenses. . The 2001 Census found that so-called ―multigenerational households‖ are the fastest growing group in the United States. Yet the nuclear family also is rebounding in the United States, as Baby-Boomer and Gen-X parents focus on their children and grandparents retain more independence and mobility

4)Technology trends:
New technologies are surpassing the previous state of the art in all fields. Laptop computers and Internet-equipped cell phones provide 24/7 access to e-mail and Web sites. Flexible, general-service personal robots will appear in the home by 2015, expanding on the capabilities robotic vacuum cleaners and lawn man powers. New materials are bringing stronger, lighter structures that can monitor their own wear.New technologies often require a higher level of education and

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training to use them effectively. They also provide many new opportunities to create businesses and jobs. Automation will continue to cut the cost of many services and products, making it possible to reduce prices while still improving profits. This will be critical to business survival as the Internet continues to push the price of many products to the commodity level. New technology also will make it easier for industry to minimize and capture its effluent. This will be a crucial ability in the environmentally conscious future.

Global Issues & Challenges in the Hospitality Industry:
Changing Labour Conditions:
The hospitality industry faces labour and human resource challenges including the compression or shrinking of the labour force, union issues and escalating health care and benefit costs among others. Compression of Labour force - the traditional labour force is shrinking as a result of changing demographics. Slowing population growth rates, an aging population, and fewer persons in the working-age group, have all contributed to the shrinking labour supply.

Energy Costs:
Global increases in demand and the natural disasters in the Gulf States have stretched energy supplies. Prices increased in 2005 and the forecast is for higher prices in 2006. Energy management/conservation programs and employee awareness are essential to mitigate exposure to dramatically escalating energy costs. Higher insurance costs are a concern, particularly due to escalating premium on account of natural disasters and terrorism.

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Labour Costs:
These are rising globally due to shortages of good skilled manpower and competitive forces in luring and retaining staff.

Impact of Rising Energy Costs on Consumer Travel & Hotel Demand:
A decline in all types of consumer travel may be possible as higher energy costs take a bigger bite out of personal and corporate budgets, with travel expenditures typically one of the first discretionary items to be reduced or eliminated. On a positive note, energy's continuing threat to the industry will undoubtedly force industry execs to be more creative, or at least more conservative, in its use and consumption. Participants at all industry levels will need to be more efficient with limited/dwindling supplies, and/or find alternative ways of delivering similar service to their guests without impacting their quality of stay. "Greening" of hotel operations may actually become the norm as opposed to a discretionary program as both consumers and hotels of necessity become more focused on energy conservation.

Natural Disasters:
Whether a long-term trend from global warming or part of a long-term cycle, natural disasters appear to have become more frequent in recent years. The implications are profound, especially since many affected areas are heavily reliant on tourism for economic vitality. New virus strains and other diseases resistant to antibiotics may be on the horizon. Travellers are increasingly choosing destinations in part on the perceived level of risk. Some locations will be winners, while others may need to diversify their economies to supplement tourism.

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A secondary effect is the post-event consequences of natural disasters. Some destinations will not be able to accommodate travellers for years to come. Resources that go into rebuilding local infrastructure drain funds that might otherwise go toward economic growth.

Growing Global Uncertainly About Safety and Security:
There is broad concern among travellers about protecting their own safety. These concerns range from the healthfulness of airplane ventilation to vulnerability to terrorism. Governments are increasingly trying to manage risks, sometimes impacting a country's tourism infrastructure, such as when restrictive visitation policies are enacted. The ongoing turmoil in the Middle East, the coordinated bus bombings in London, and various other events around the world has caused travellers to rethink traditional assumptions regarding leisure travel. Some remote and non-traditional destinations may find tourism increasing as a result of those places having the right mix of attributes currently in demand by tourists. Global tourist places: International Hotels: International Resorts: International Bars:

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Largest hotels in the world:

Rank

Name

City

Rooms &Suits

Floors

1

The Venetian & The Palazzo

Paradise

8,108

52, 37, and 14 floors (3 towers)

2

Izmailovo Hotel

Moscow

7,500

4 towers, Alpha, Beta, Vega, Gamma-Delta, 30-stories each

includes MGM Grand (30 floors), 3 MGM Grand Las Vegas Paradise 6,582 Signature, Mansion Skylofts, and The

4

First World Hotel

Genting Highlans

24 floors (Tower 1), 28 floors 6,118 (Tower 2)

5

The Centaurus

Islamabad

6,430

41

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6

Disney's All-Star Resort Orlando, Florida

5,524

3Themes (Movies, Music, Sports), 30 Buildings - 3 floors each

7

WynnLas Vegas/EncoreLa Vegas

Paradise

4,734

48/50 Floors (2 towers)

8

Luxor Las Vegas

Paradise

4,408

22/22/36 floors (3 buildings)

9

Mandalay Bay/THEhotel/Four Seasons Las Vegas

Paradise

4,332

43 floors

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Hotel Star rating system:
Although we all may have heard some things or known at some point in time about hotels with more than five stars, we know that these are rare cases which tend to be exceptions and not very common. Generally, depending on the amount of stars a hotel accrues, you‘ll find that one hotel will be more economical than another, all based on the total amount of its stars. In the same manner, the more stars a hotel has, the better the quality of service you‘ll receive while staying there.

Star Classifications:
will mostly only have one private bedroom and may or may not include a bathroom. Aside from the bed, it‘ll have very little other accommodations and decor. Usually it is a family owned business, warm and home-like. will have private bathrooms, a cafeteria service or dining room/area. The accommodations are more or less the same as with one star hotels, but there are a few more services available. will have a spacious entry hall and reception area, in-house cleaning services, will offer breakfast and are usually located on or near to main avenues and streets of the cities, in order to be easily found.

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Along with five star hotels, these will be the most luxurious within the classifications. They‘ll have conference rooms for business meetings or private gatherings, and large areas for recreation Last but definitely not least, the five star hotel is the most luxurious and costly in the five star rating system. More often than not, they‘re an attraction in and of themselves, as they will offer everything and anything you might need, without having to step outside their doors. Some of its services would be: private jacuzzi in the bathrooms, full-service meals and drinks offered at any hour of the day or night, entertainments such as in-house casinos and pools, spas, gyms and much more.

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Introduction to Hotel Industry:
'Hotels in India' have supply of 110,000 rooms. According to the tourism ministry, 4.4 million tourists visited India last year and at current trend, demand will soar to 10 million in 2011 - to accommodate 350 million domestic travellers. With tremendous pull of opportunity, India is a destination for hotel chains looking for growth. The World Travel and Tourism Council, India, data says, India ranks 18th in business travel and will be among the top 5 in this decade. Five-star hotels in metro cities allot same room, more than once a day to different guests, receiving almost 24-hour rates from both guests against 6-8 hours usage. 'India Hotel Industry' is adding about 60,000 quality rooms, currently in different stages of planning and development and should be ready by 2012. Government has approved 300 hotel projects, nearly half of which are in the luxury range. Sources said, the manpower requirements of the hotel industry will increase from 7 million in 2002 to 15 million by 2011.Hospitality is the way of treating people in the way you want yourself to be treated. Hotels are called ―home away from home‖ because it‘s the only place where we get food & accommodation, provided all luxuries and comfort. These days we can easily get hospitality in retail outlets hotels hospitals and offices and competition is so high that everyone wants to attract customer by one mean or other. The hospitality also increases profit and reputation of the hotel.

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Origin of Hotel Industry:

In medieval Europe monasteries rationally offered hospitality to the travellers. The main aim in offering hospitality was for pilgrims as monasteries were found at the site of holy place in early stage. In early Europe inns, they were especially designed as profit making business it was the first commercial Venter in hotel keeping. Usually there were public rooms like restaurant where merchants could sit and discuss business. Hotel keeping has also influenced mode of transport, with advent of railways came station hotels, and with aircraft came airport hotels, with motorways and extensive road travel like motels, boatels and ship bought floating hotels into existence. Hotel industry has followed path of travellers from time they travel. Therefore came the rest house, inns and monasteries. Inn keeping is believed to be started in 1200 years age. in1650 Mr. Pascal opened cafe in Paris and coffee house in London. During industrial revolution 1750-1820 English inns were considered finest in the world. Hotel de Henry was one of the 1st European hotels built in 1788 with capacity of 60 rooms. Growth of hotel inns took place with concept of family hotels i.e. run by the families were called mom & pop in England. Termand house was 1st class hotel made in Boston 1829 it provided private guest room, door with lock, free soap bellboy service. It is called Adam and eve of modern hotel industry. Mr. Ellsworth M Statler started new chain and made his first hotel ―buffalo statler‖ on 18 Jan 1908. He gave a slogan" room and a bath for a dollar and a half".In 1950, new concept as motels, boatels, and floatels rotels were built.

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Background of Hotel Industry:

The Hotel industry comprises a major part of the tourism industry. Historically viewed as an industry providing a luxury service valuable to the economy only as a foreign exchange earner , the industry today contributes directly to employment and directly facilitates tourism and commerce. However, the Asiad, held in New Delhi in 1982, and the subsequent partial liberalization of the Indian economy generated in India, with significant benefits accruing to the hotel and tourism sector, in terms of improved demand patterns. Growth in the demand hotels was particularly high during early years 1990s following the initiatives taken to the liberalize the Indian economy in 1991, as per the recommendations of the International monetary fund. The euphoria of the early 1990s prompted major chains, new entrants and International chains to chalk out ambitious capacity additions, especially in the metropolitan cities. However, most of these efforts were directed towards the business travellers and foreign clientele. In recent years, the hotels support has grown at a faster rate then GDP. As a result, the share of hotels and restaurants in GDP at current prices has increased from 1.2% in 2000 to 1.5% in 2005. In constant (1999-2000) prices, the GDP from hotels and restaurants has increased from Rs 222.65 billion in 2000 to Rs 335.49 billion in 2005. As a result, the share of hotels and from 1.24% in 2000 to 1.40% in 2005.

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Structure of the Industry:
Hotels in India are broadly classified into 7 categories by the Ministry of Tourism, government of India, based on the general features and facilities offered. The ratings are reviewed every five years.As of December 2005 there are following number and category of hotels.

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Premium and Luxury Segment:
This segment comprises the high end five star deluxe and five stars hotels. Mainly cater to business and up market foreign leisure travellers and offer a high quality and range of services.

Mid-market segment:
This segment comprises 3 and 4 star hotels, which cater to the average foreign and domestic leisure travellers. This segment also caters to the middle level business travellers since it offers most of the essential services of luxury hotels without the high costs since the tax component of this segment is lower compared with the premium segment.

Budget segment:
These comprise 1 and 2 star hotels referred to as ‗Budget Hotels‘. These categories do not offer as many facilities as the other segments but provide inexpensive accommodation to the highly price- conscious segment of the domestic and foreign leisure travellers.

Heritage Hotels:
In past four decades, certain artechitecturally distinctive properties such as palaces and forts, built prior to 1950, have been converted into hotels. The Ministry of tourism has classified these hotels as heritage hotels.

Key Consumer Segments:
The market for the Hotel Industry can be divided into the following consumer segments based on purpose of visit:

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- The Business Travellers, - The Leisure Travellers

The Business Travellers:
The Business Traveller is a business man or corporate executive travelling for business purpose. This segment offers better realizations, as they demand relatively smaller discount on room rents and use more facilities such as PC‘s fax multimedia‘s conference halls. Also food and beverage revenues are better as they usually eat in hotel itself due to their busy schedules.

The Leisure Travellers:
The Leisure Traveller could either be a foreigner or a domestic traveller whose primary purpose of visit is holiday or site seeing. Usually, leisure travellers are a part of a package run by a tour operator. The margins offered by leisure travellers tend to be lower because of two reasons. Firstly they seek higher discount and provide less F&B revenues as they usually eat out. The business offered by this segment is highly seasonal and tends to peak in September and March period

Others:
At any point in time, applications for classifications are usually pending with the Ministry Tourism because of which such properties remain unclassified. The number of hotel rooms pending classifications has declined from historical 15-20% to 5% of the total rooms available in the recent past.

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Current Scenario of Hotel Industry:

Over the last decade and half the mad rush to India for business opportunities has intensified and elevated room rates and occupancy levels in India. Even budget hotels are charging USD 250 per day. The successful growth story of 'Hotel Industry in India' seconds only to China in Asia Pacific. 'Hotel Industry in India' have supply of 110,000 rooms. According to the tourism ministry, 4.4 million tourists visited India last year and at current trend, demand will soar to 10 million in 2010 - to accommodate 350 million domestic travelers. 'Hotels in India' has a shortage of 150,000 rooms fuelling hotel room rates across India. With tremendous pull of opportunity, India is a destination for hotel chains looking for growth. The World Travel and Tourism Council, India, data says, India ranks 18th in business travel and will be among the top 5 in this decade. Sources estimate, demand is going to exceed supply by at least 100% over the next 2 years. Five-star hotels in metro cities allot same room, more than once a day to different guests, receiving almost 24-hour rates from both guests against 6-8 hours usage. With demand-supply disparity, 'Hotel India' room rates are most likely to rise 25% annually and occupancy to rise by 80%, over the next two years. 'Hotel Industry in India' is eroding its competitiveness as a cost effective destination. However, the rating on the 'Indian Hotels' is bullish. 'India Hotel Industry' is adding about 60,000 quality rooms, currently in different stages of planning and development and should be ready by 2012.

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MNC Hotel Industry giants are flocking India and forging Joint Ventures to earn their share of pie in the race. Government has approved 300 hotel projects, nearly half of which are in the luxury range. Sources said, the manpower requirements of the hotel industry will increase from 7 million in 2002 to 15 million by 2010. With the USD 23 billion software services sector pushing the Indian economy skywards, more and more IT professionals are flocking to Indian metro cities. 'Hotel Industry in India' is set to grow at 15% a year. This figure will skyrocket in 2010, when Delhi hosts the Commonwealth Games. Already, more than 50 international budget hotel chains are moving into India to stake their turf. Therefore, with opportunities galore the future 'Scenario of Indian Hotel Industry' looks rosy. Indian tourism and hospitality sector has reached new heights today. Travellers are taking new interests in the country which leads to the upgrading of the hospitality sector. Even an increase in business travel has driven the hospitality sector to serve their guests better. Visiting foreigners has reached a record 3.92 million and consequently International tourism receipts have also reached a height of US$ 5.7 billion. Hospitality Industry is closely linked with travel and tourism industries. India is experiencing huge footfalls as a favourite vacation destination of foreigners and natives and the hospitality industry is going into a tizzy working towards improving itself. Fierce competition and fight to rank on the number one position is leading the leaders of this industry to contemplate on ideas and innovate successful hospitality products and services every day. Luxury hotels operates under single tariff structure were by the foreign tourist are changed in dollar terms where as the domestic guests is charged the equivalent amount in rupees. The luxury hotels earn about two- third of their revenue foreign tourist. Leisure travellers constitute approximately 76.5% of the total tourist arrivals wherever business travellers constitute 21% of the total arrivals. The remainder is accounted by the students. The hotel industry is the second largest foreign exchange earner and between 1991 and 1998 there has been a 100% growth in foreign tourists. 36 KLE SOCIETY’S COLLEGE OF BUSINESS ADMINISTRATION

Features of Hotel Industry:
The hospitality industry consists of companies within the food services, accommodations, recreation, and entertainment sectors The hospitality industry is a several billion dollar industry that mostly depends on the availability of leisure time and disposable income. A hospitality unit such as a restaurant, hotel, or even an amusement park consists of multiple groups such as facility maintenance, direct operations (servers, housekeepers, porters, kitchen workers, bartenders, etc.), management, marketing, and human resources. Usage rate is an important variable for the hospitality industry. Just as a factory owner would wish to have his or her productive asset in use as much as possible (as opposed to having to pay fixed costs while the factory isn't producing), so do restaurants, hotels, and theme parks seek to maximize the number of customers they "process". In viewing various industries, ―barriers to entry" by newcomers and competitive advantages between current players are very important. Among other things, hospitality industry players find advantage in old classics (location), initial and ongoing investment support (reflected in the material upkeep of facilities and the luxuries located therein), and particular themes adopted by the marketing arm of the organization in question (such as a restaurant called the 51st fighter group that has a WW2 theme in music and other environmental aspects). Very important is also the characteristics of the personnel working in direct contact with the customers. The authenticity, professionalism, and actual concern for the happiness and well-being of the customers that is communicated by successful organizations are a clear competitive advantage

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Classifications of hotels:
Classification is based on many criteria and classifying hotels into different types is not an easy task. The hotel industry is so vast that many hotels do not fit into single well defined category. Industry can be classified in various ways, based on location, size of property etc. The main hotel chains of India are: The Taj Group of Hotels, the Oberoi Group and ITC Welcome group

Based on location:

City center

Generally located in the heart of city within a short distance from business center, shopping arcade. Rates are normally high due to their location advantages. They have high traffic on weekdays and the occupancy is generally high Example: Taj Mahal Mumbai

Motels:

They are located primarily on highways, they provide lodging to highway travellers and also provide ample parking space. The length of stay is usually overnight.

Suburban hotels

They are located in suburban areas, it generally have high traffic on weekend. It is ideal for budget travellers. In this type of hotel rates is moderately low.

Airport hotels: These hotels are set up near by the airport. They have transit guest who stay over between flights.

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Resort hotels : They are also termed as health resort or beach hill resort and so depending on their position and location. They cater a person who wants to relax, enjoy themselves at hill station. Most resort work to full capacity during peak season. Sales and revenue fluctuate from season to season

Floating hotels: As name implies these hotels are established on luxury liners or ship. It is located on river, sea or big lakes. In cruise ships, rooms are generally small and all furniture is fixed down. It has long stay guest

Boatels: A house boat hotel is referred as boatels. The shikaras of Kashmir and kettuvallam of Kerala are houseboats in India which offers luxurious accommodation to travellers.

Rotels: These novel variants are hotel on wheel. Our very own "palace on wheels ―and "Deccan Odyssey" are trains providing a luxurious hotel atmosphere.

Based on Size of Property:
The main categorization of hotel is by size the number of rooms available in the hotel.
 

Small hotel: Hotel with 100 rooms and less may be termed as small hotels. Medium sized hotels: Hotels which gas 100-300 rooms is known as medium sized hotels.

  

Large hotels: Hotels which have more than 300 rooms are termed as large hotels. Mega hotels: Are those hotels with more than 1000 rooms. Chain Hotels: These are the group of hotels that have hotels in which number of locations in India and international venues.

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Based on level of service:
Hotels may be classified into economy, and luxury hotels on the basis of the level of service they offer. Budget hotels: These hotels meet the basis need of the guest by proving comfortable and clean rooms for a comfortable stay. Mid market hotels: It is suite hotels that offer small living rooms with appropriate furniture and small bed room with king bed. Luxury hotels: These offer world‘s class service providing restaurant and lounges, concierge services, meeting rooms, dining facilities. Bath linen is provided to the guest and is replaced accordingly. These guest rooms contain furnishing, artwork etc. Prime market for these hotels are celebrities, business executives and high ranking political futures. Example: Hyatt Regency, New Delhi.

Based on length of stay:
Hotels can be classified into transient, residential and residential hotels depending on the stay of a guest. Transient hotels: These are the hotels were guest stays for a day or even less, they are usually five star hotels. The occupancy rate is usually very high. These hotels are situated near airport. Residential hotels: These are the hotels were guest‘s stays for a minimum period of one month and up to a year. The rent can be paid on monthly basis. They provide sitting rooms, bed rooms and kitchenette.

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Semi residential hotels: These hotels incorporate features of both transient and residential hotels.

Based on Theme:
Depending on theme hotel may be classified into Heritage hotels, Ecotels, Boutiques hotels and spas. Heritage hotels: In this hotel a guest is graciously welcomed, offered room that have their own history, serve traditional cuisine and are entertained by folk artist. These hotels put their best efforts to give the glimpse of their region. Example: Taj mahal palace. Ecotels: these environment friendly items in the rooms. Example: Orchid Mumbai is Asia first and most popular five star Ecotels. Boutique hotels: This hotel provides exceptional accommodation, furniture in a themed and stylish manner and casters to corporate travellers. Example: In India the park Bangalore is a boutique hotel. Spas: Is a report which provide therapeutic bath and massage along with other features of luxury hotels in India Ananda spa in Himalaya are the most popular spa.

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Based on target market:
Commercial hotels: They are situated in the heart of the city in busy commercial areas so as to get good and high business. They cater mostly businessmen. Convention hotels: These hotels have large convention complex and cater to people attending a convention, conference. Example: Le meridian, Cochin, is a hotel with largest conventional center in south India. Resort hotels: These leisure hotels are mainly for vacationers who want to relax and enjoy with their family. The occupancy varies as per season. The atmosphere is more relaxed. These are spread out in vast areas so many resorts have solar powered carts for the transport of guests. Suite hotels: These hotels offer rooms that may include compact kitchenette. They cater to people who are relocating act as like lawyers, executives who are away from home for a long business stay. Casino hotels: with predominantly gambling comes under this category, they have guest room and food and operation too. These hotels tend to cater tend to leisure and vacation travellers. Gambling activities at a some casino hotels operate 24 hours a day and 365 days.

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Career Opportunities in the Hotel Industry:
The industry offers more career options than most: No matter what kind of work we enjoy and wherever our aptitudes lie, there is a segment of the industry that can use ours talents.

The work is varied: Because hotels and restaurants are complete production, distribution and service units, and managers are involved in a broad array of activities.

There are many opportunities to be creative: Hotels and restaurants managers might design new products to meet their needs of their guests; produce training programs for employees; or implement challenging advertising, sales promotions and marketing plans.

Hospitality jobs are not nine-to-five jobs: Hours are highly flexible in many positions.

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Key success factors of hotel industry:
Despite its cutthroat aspects, the hotel industry is filled with success stories. A small niche boutique hotel may gain recognition from a prominent travel guide and be booked for months. Or, a large hotel could gain recognition by partnering with a neighboring attraction. In today's Internet environment, when consumers can be their own booking agent by evaluating reviews and prices online, the success of a hotel often depends on how it utilizes key factors like customer service, advertising, cost control and product differentiation.

Customer Service:
Customer service is an integral part of the hotel experience. Clayton Barrows, author of "Introduction to Management in the Hospitality Industry," explains how the front-desk worker serves as the gatekeeper of the hotel. This employee provides the customer's first and last impression. Thus, hotels achieve a critical success factor by ensuring the staff is knowledgeable, courteous and capable of resolving any conflicts that arise. Providing quality service also entails remembering the names and preferences of repeat visitors and giving advice about attractions and surroundings.

Advertising:
Successful hotels target specific consumers and will cater their prices, amenities and advertising strategies to this group. For example, some hotels advertise as an ideal location for business travelers by giving corporate discounts. This type of hotel also promotes itself as a venue for business meetings, displaying its on-site conference rooms in magazines aimed at executives. Robert D. Reid, author of "Hospitality and Marketing Management," advises hotels to veer away from generic descriptions such as "luxurious rooms" and "bargain price." Instead, Reid recommends commenting on the specifics of the décor or customer service. For example, an ad for a hotel in Hawaii may show an image of its bestselling tropical drink.

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Cost Control:
Managing costs is a critical factor in a hotel's success. Most hotels vary their rates according to high and low seasons. Additionally, the establishment of a loyalty program enables hotels to lower rates for repeat guests while charging different rates for others. One of the ways hotels plan is through reservations programs that forecast demand beyond 90 days. Michael J. O'Fallon, author of "Hotel Management and Operations," explains how computer programs also enable managers to identify the customers most willing to spend money and on which items. From this knowledge, the manager can advertise directly to the person before arrival by offering packages, upgrades and other incentives. Successful hotels also balance the cost of workers' wages, food and beverages, and electricity and maintenance with profits deriving from booked rooms, amenities, gift shops and food and beverages.

Product Differentiation:
Hotels thrive by offering guests a unique experience. This uniqueness may stem from the location: A rural hotel in the heart of the Tuscan countryside may offer Italian cooking classes, whereas a boutique hotel in Morocco might offer a hookah lounge. Other times, the differentiation is within the hotel itself. Hotels in Las Vegas, for instance, thrive by providing specific services that cater to the theme of the hotel, such as a Camelot theme or a Grecian décor

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Environmental Issues:
International society of Hospitality consultant represents a significant part of the lodging industry brain power, it was disheartening that rising energy costs and other environment related issues. Is it any wonder that the lodging industry has such a long way to go to become sustainable keeping in mind that there are lot of positive things happening in the industry, and that are a lot of industry leaders who do recognize the importance of environmental protection, here is my own list for the new year. The environmental issues facing the Hospitality industry in 2009.

Staying ahead of rising energy costs. Industry didn‘t get a breather from skyrocketing energy costs in he second half of 2008, but prices were still higher than the previous years for the fifth straight year.

Climate change as evidence continues to mount regarding the reality of global warming, how will the lodging industry reacts. What companies will demonstrates the greatest leadership.

Indoor air quality last year saw Marriott, Westin and other transition to 100 percent non-smoking environment.

At the association level, the lodging industry is hungry for leadership. Individual to take the lead in pushing the industry towards sustainability. Meeting planner‘s increasingly will require green practices as they select their meeting destinations. What hotel companies and cities will be best poisoned to take advantages of this trend.

There is a needed for a greater environmental presence at the lodging industry largest trade shows. Will that happen in 2009, The national restaurant Assn show in Mumbai will feature a Green Restaurant products pavilion for the second year.

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These are just some of the environmental related issues the lodging industry will face in new year. As you meet with your management teams this month, be sure to set measurable, green goals and make the environment a priority.

Indian Hotel Industry: Hospitality is about serving the Guests to provide them with, “FEEL-GOOD-EFFECT”. ATITHI DEVO BHAVA, [GUEST is GOD]. Has been one of Central tenets of Indian culture since times Immemorial.In India, the Guest is treated with Utmost warmth and respect and is provided with Best Services. Today, Hospitality sector is one of the Fastest Growing sector in India. It is expected to grow at the higher rate in the upcoming years. Now a day, almost the Travel and Tourism industry is also included in Hospitality sector. The boom in Travel and Tourism industry has led to the further development of Hospitality Industry. Even, the Tourism department in India has come up with a new Brand. The ―INCREDIBLE INDIA‖ and has a Slogan ―ATITHI DEVO BHAVA‖. A campaign to boost Tourism and Hotel Industry The Indian Hotel Industry has witnessed tremendous boom in recent years. It is inextricably linked with Tourism Industry and the Growth in Indian Tourism Industry has fuelled the Growth of Hotel Industry. Indian Hotel Industry Continues to Grow Robustly in the upcoming years. The highest Growth can be attributed to the Increase in Foreign Tourist arrivals, the popularity of Heritage sites and International events such as the Common wealth Games being held in the Country.

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Thus, The Future Scenario of Indian Hotel Industry looks BRIGHT. [TAJ HOTEL: Jamshetji Nusserwanji Tata Opened Taj‘s First Hotel on December 16, 1903, The Taj Mahal Palace and Tower in Mumbai. This Grand Hotel Epitomized a Philosophy that still holds True Today, Provide Impeccable Service and Unparallel Facilities so Every Stay is MEMORABLE one]. This significant growth of the tourism industry is the direct result of changes in international consumer behaviours as well as economic prosperity and political stability within the region. Historically, the supply of lodging facilities within the region has proved to be both inadequate in terms of product quality as well as insufficient in quantity for meeting the increasing levels of demand These elements of supply and demand have created a favourable investment climate for development within the region, resulting in a real estate boom in both tourism and residential development. The growth in residential real estate development has been primarily driven by foreign demand for vacation and retirement homes in both urban and resort destinations within the region. Investment and development has been further supported by the variety of financial incentives for investment in tourism projects offered by national governments as well as the availability of local capital for the financing of large projects. The first goal is to find ways to operate the hotel according to the idea of a ―triple bottom line,‖ which embodies profitable operation combined with attention to the people who use and work in the hotel and a focus on careful stewardship of resources. While that goal is important, even more vital is to use the hotel‘s position as an industry leader in the nation‘s capital to demonstrate to the hotel industry, customers, and vendors that sustainable operation is the best strategy to ensure successful hotel operation. The sustainability initiative goes beyond such well-known ideas as reusing guest linens, recycling waste materials, and changing to compact fluorescent lamps.

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Major Players in Indian Hotel Industry:
The Major Players in Indian Hotel Industry can be broadly classified into Private Players and Public Sector. The Major Players include Indian Hotels Company limited, East India Hotels limited [ The Oberoi Group ], Asian Hotels and ITC Hotels Corporation of India are the Major Public Sector Players.

The Top Players in Hospitality Sector are:

 

ITDC Hotels. Hotel Corporation of India.

The Private Sector Players:
 

ITC Hotels. Indian Hotels Company limited.

[The Taj Hotels, Resorts and Palaces].
   

Oberoi Hotels. [East India Hotels]. Hotel Leela Venture. Asian Hotels limited. Radission Hotels and Resort.

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Major players in the Indian Hotel Industry:
Taj Group: The Indian Hotels Company and its subsidiaries are collectively known as Taj Hotels Resorts and Palaces. It is recognised as one of the Asia‘s largest and finest hotel company. The company opened its first property, The Taj Mahal Palace Hotel Bombay in 1903 and has a completed a century in 2003. Taj Hotels Resorts and palaces comprises 59 Hotels at 40 locations across India and 17 international hotels. From the 1970‘s through the 1990‘s the Taj played an important role in launching several of India‘s key tourist destination working with Government. The Taj developed resorts and retreats while the Government developed roads and railways to India‘s hidden treasure. Taj Hotels Resorts and Palaces is a global chain of hotels and resorts. A part of the Tata Group, one of India's largest business conglomerates, Taj Hotels Resort and Palaces own and operate 76 hotels, 7 palaces, serviced apartments,6 private islands and 12 resorts and spas, spanning 52 destinations in 12 countries across 5 continents and employ over 13000 people.]Besides India, Taj Hotels Resort and Palaces are located in the United States of America, England, Africa, Lanka and Australia. Starting in the late-2000s, the Taj group has been organizing its hotels into different brands, in a market segmentation strategy. As of December 2011, not all hotels have been rebranded - some properties still retain the generic "Taj" brand and are awaiting classification. List of some Taj hotels in India are: the UAE, Maldives, Malaysia, Bhutan, Sri

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Taj Hotels in India:

Location

Brand

Hotels

Hyderabad Jaipur Jodhpur Kolkata Mumbai Mumbai Mumbai New Delhi New Delhi Udaipur

Taj Luxury Taj Luxury Taj Luxury Taj Luxury Taj Luxury Taj Luxury Taj Luxury Taj Luxury Taj Luxury Taj Luxury

Taj Banjara Ragbags Palace Umaid Bhawan Palace Taj Bengal Taj Lands End Taj Wellington Mews The Taj Mahal Palace Taj Palace Hotel The Taj Mahal Hotel Taj Lake Palace

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Taj Hotels outside India

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Taj Hotels in India:

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ITC\Sheraton Corporation:
ITC‘s Hotel division was launched on October 18, 1975, with opening its first hotel-Chola Sheraton in Chennai. The group has joined hands with Sheraton Corporation to strengthen its international marketing base. There are currently 10 ITC-Welcomgroup Sheraton hotels. ITC Hotels is India's second largest hotel chain[citation needed] with over 100 hotels.[1] Based out of Hotels Division Headquarters at the ITC Green Centre in Gurgaon, off New Delhi, ITC Hotels is also the exclusive franchisee of The Luxury Collection brand of Starwood Hotels and Resorts in India. ITC Hotels is regularly voted amongst the best employers in Asia in the hospitality sector

ITC brands:
• ITC - Luxury Collection Hotels • WelcomHotel Sheraton Hotels • Fortune Hotels, which has 54 hotels with 4446 rooms in 41 cities across India • WelcomHeritage Hotels

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ITC Hotels:

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The Bharat Hotels Group:
The Bharat Hotels group is a major player in a India‘s tourism and hotel sector. It operates its hotels under the name of ‗THE GRAND‘ It has total 14 luxury hotels in the five-star deluxe segment. Some of hotels are ‗The Grand‘ hotels in New Delhi, Goa, Mumbai etc The Grand Ashok Bangalore and The Grand Laxmi Vilas Palace Udaipur.

The EIH Ltd (Oberoi Group):
The company owns and operates about 20 luxury hotels, 10 mid-range hotels and two inland cruises. The Oberoi Group mainly operates in India and Australia, Egypt, Indonesia and Saudi Arabia.

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Different departments in Hotels:
Core Functioning Department: Food and Beverage (F&D) Department:F & B deals mainly with food and beverage service allied activities. Different divisions are there in F & B like Restaurants, Speciality Restaurants, Coffee Shop (24 hrs.), Bar, Banquets, Room service etc. Apart from that they have Utility services (Cleaning). Front Office Department:The front office is the command post for processing reservations, registering guests, settling guest accounts (cashiering), and checking out guests. Front desk agents also handle the distribution of guestroom keys and mail, messages or other information for guests. The most visible part of the front office area is of course the front desk. The front desk can be a counter or, in some luxury hotels, an actual desk where a guest can sit down and register. Housekeeping Department:The housekeeping department is another important department in hospitality world. Housekeeping is responsible for cleaning the hotel‘s guestrooms and public areas. This department has the largest staff, consisting of an assistant housekeeper, room inspectors, room attendants, a house person crew, linen room attendants and personnel in charge of employee uniforms. They mayalso have their own laundry and valet service. Hotels with laundry and valet equipment may use it only for hotel linens and uniforms and send guest.

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Food Production Department:Food production deals with the preparations of food items. It basically engaged in preparing those dish, which are ordered by the guest and afterwards is catered by the F&B department. Cuisine like Indian, Continental, Thai, Italian, Konkani (Coastal Sea Food), South Indian, Chinese, Mexican, etc. Different Chefs are appointed for the specialty cuisine.

Support Department:
Marketing and Selling: Sales and marketing has become one of the most vital functions of the hotel business and an integral part of modern hotel management. It includes packaging for selling, sales promotion, advertising and public relations. The marketing division is charged with the responsibility of keeping the rooms in the hotel occupied at the right price and with the right mix of guests. Engineering and Maintenance Department:The energy crisis throughout the world has given a great importance to the engineering department of a hotel. This department provides on the day-to-day basis the utility services, electricity, hot water, steams, air-conditioning and other services and is responsible for repair and maintenance of the equipment, furniture and fixtures in the hotel. The engineering department has an important role in satisfying the guest- demand and helping to maintain the profit level of the hotel. The cleaning, up-keep, repair, replacement, installation and maintenance of property and its furnishing, machinery and equipment are the joint responsibilities of Engineering/Maintenance and the Housekeeping Department.

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Finance, Accounting and Control Department:A hotel‘s accounting department is responsible for keeping track of the many business transactions that occur in the hotel. The accounting department does more than simply keep the books-financial management is perhaps a more appropriate description of what the accounting department does. Whereas the control department is concern with cost control guidelines by way of reducing in investment, reduction in operating cost, control of food service costs, control of beverage costs, labour cost control, etc Safety and Security Department:The security of guests, employees, personal property and the hotel itself is an overriding concern for today‘s hoteliers. In the past, most security precautions concentrated on the prevention of theft from guests and the hotel. However, today such violent crimes as murder and rape have become a problem for some hotels. Unfortunately, crime rates in most major‘s cities are rising. Hence today security department also concentrate on these additional criminal activities too. Administration Department:Top organizational members usually supervise the Administration Department in a hotel. This department is responsible for all the work connected with administration, personnel, manpower, employee‘s welfare, medical, health and security. Human Resource department: This department has newly taken step in hotel industry and within a short span of time it has become a very important part of the organization. It plays the role of facilitator between the bargain able cadre and non-bargainablecadre.This department is the topic of our discussion. The practice, which this department and their staff perform, is going to be learned in the light of following project.

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Facts and Figures of Indian Hospitality industry:

Tourism is presently the most important civil industry in the world. The hospitality industry is second only to the global oil industry in terms of turnover, and is, by far, the largest employer around the world. Ten percent of the world's work force is in the tourism industry, and 10 percent of the world's GNP comes from tourism. Tourism in India is the largest service industry, with a contribution of 6.23% to the national GDP and 8.78% of the total employment in India. Foreign Tourist Arrivals (FTAs) to India increased from 5.17 million in FY09 to 5.78 million in FY10, thereby resulting in a increase of 11.8% YoY. It was better than UNWTO‘s projected growth rate of 5% to 6% for the world in 2010.

The share of India in international tourist arrivals in 2010 was 0.61%, which is 0.02% improvement over 2009. India‘s rank improved to 40th in 2010, from 41st in 2009.

FTAs during the period January-June 2011 were 29.19 lakh with a growth of 10.9 per cent, as compared to the FTAs of 26.32 lakh with a growth of 8.9 per cent during January-June 2010 over the corresponding period of 2009.

FEE from Tourism in INR terms during January-June 2011 were INR 351.6 billion with a growth of 12.1 per cent, as compared to the FEE of INR 313.7 billion with a growth of 27.1 per cent during January-June 2010 over the corresponding period of 2009. 60

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FEE from Tourism in terms of US$ during January-June 2011 were US$ 7.8 billion with a growth of 14.2 per cent, as compared to US$ 6.8 billion with a growth of 36.6 per cent during January-June 2010 over the corresponding period of 2009.

Tourism continues to play an important role as a foreign exchange earner for the country. In 2010, foreign exchange earnings (FEE) from tourism were US$ 14.19 billion as compared to US$ 11.39 billion in 2009, registering a growth of 24.6%.

FEE from Tourism in INR terms during 2010 were INR 648.8 billion as compared to INR 549.6 billion during 2009 and INR 507.3 billion during 2008. FEE from tourism in US$ terms during 2010 were US$ 14.2 billion as compared to US$ 11.4 billion during 2009 and US$ 11.7 billion during 2008.

Number of domestic tourist visits in India during 2010 was 740.21 million as compared to 668.80 million in 2009, with a growth rate of 18.8 %.

Number of Indian national departures from India during 2010 was 12.99 million as compared to 11.07 million in 2009, registering a growth rate of 17.4%.

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According to the latest Tourism Satellite Accounting (TSA) research, released by the World Travel and Tourism Council (WTTC), the demand for travel and tourism in India is expected to grow by 8.2 % between 2010 and 2019. This will place India at the third position in the world. India's travel and tourism sector is expected to be the second largest employer in the world. Capital investment in India's travel and tourism sector is expected to grow at 8.8 % between 2010 and 2019. The report forecasts India to get more capital investment in the travel and tourism sector and is projected to become the fifth fastest growing business travel destination from 2010 through 2020. According to World Travel and Tourism Council, India will be a tourism hot-spot from 2009–2018, having the highest 10-year growth potential. The Tourism sector is expected to contribute around INR 3,414.8 billion (US$ 77.0 billion*) by 2021, according to a report by the World Travel and Tourism Council (WTTC). India has been ranked the "best country brand for value-for-money" in the Country Brand Index (CBI) survey conducted by Future Brand, a leading global brand consultancy. India also claimed the second place in CBI's "best country brand for history", as well as appears among the top 5 in the best country brand for authenticity and art & culture, and the fourth best new country for business. India made it to the list of "rising stars" or the countries that are likely to become major tourist destinations in the next five years, led by the United Arab Emirates, China, and Vietnam.

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According to the Tourism Satellite Accounting (TSA) research, released by World Travel and Tourism Council (WTTC) and its strategic partner Oxford Economics in 2011:

India is expected to attract 6,179,000 international tourist (overnight visitor) arrivals in 2011, generating INR 678.6 billion (US$ 15.3 billion) in visitor exports (foreign visitor spending, including spending on transportation). By 2021, international tourist arrivals are forecast to total 11,149,000, an increase of 6.1 per cent pa generating expenditure of INR 1,344.7 billion (US$ 30.3 billion*).

The direct contribution of Travel & Tourism to GDP is expected to be INR 1,570.5 billion (US$ 35.4 billion) (1.9 per cent of total GDP) in 2011, rising by 8.1 per cent per annum (pa) to INR 3,414.8 billion (US$ 77.0 billion*) (2.0 per cent) in 2021.

The total contribution of Travel & Tourism to GDP, including its wider economic impacts, is forecast to rise by 8.8 per cent pa from INR 3,680.4 billion (US$ 83.0 billion) (4.5 per cent of GDP) in 2011 to INR 8,523.1 billion (US$ 191.2 billion*) (4.9 per cent) by 2021.

The Travel & Tourism sector is expected to attract capital investment of INR 1,233.0 billion (US$ 27.8 billion), rising by 8.7 per cent pa to INR 2,827.5 billion (US$ 63.7 billion). This means that the sector‘s share of total national investment will increase from 4.7 per cent in 2011 to 4.8 per cent in 2021.

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The TSA research also states that the Travel & Tourism sector is expected to support directly 24,931,000 jobs (5.0 per cent of total employment) in 2011, rising by 2.0 per cent pa to 30,439,000 jobs (5.2 per cent) by 2021.

The World Travel and Trade Council, figures indicate that the Indian tourism demand is expected to grow at 8.8% from 2007-2016. According to the World Travel and Tourism Council, revenue from foreigners travelling to India is expected to grow to US424 billion by 2015. Indians travelling in India as well as abroad are expected to spend US$63 billion by 2015.

The country has the potential to become a major global tourist destination, with the Tourism sector expected to contribute around INR 3,414.8 billion (US$ 77.0 billion*) by 2021, according to a report by the World Travel and Tourism Council (WTTC).

As per the Travel and Tourism Competitiveness Report 2011 by the World Economic Forum, India is ranked 12th in the Asia Pacific region and 68th overall, on the list of the world's attractive destinations. It is ranked the 14th best tourist destination for its natural resources and 24th for its cultural resources, with many World Heritage sites, both natural and cultural, rich fauna, and strong creative industries in the country. India also bagged 37th rank for its air transport network. The India travel and tourism industry ranked 5th in the long-term (10-year) growth and is expected to be the second largest employer in the world by 2019.

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To encourage the tourism sector, the government in recent times, has taken some measures which will benefit the sector. In FY09, Rs.5.2 bn for development of tourism infrastructure was allocated. This figure is higher by Rs.970 m as compared what was allocated in the previous year. However, it is only 1% of the total government spending. RBI has allowed ECB upto US$ 100 m in January 2009, which would help in raising funds. The Centre and States are also working out a PPP (Public-PrivatePartnership) model to increase hotel capacity.

The tourism sector is expected to generate around US$42.8 billion (INR 1,897.7 billion) by 2017, according to an industry research note by auditing and consulting firm Deloitte Touche.

The Tourism and the Hospitality sector generated a total of US$ 2,468.39 billion (INR 1,094,48.4 billion) in Foreign Direct Investment (FDI) during April 2000April 2011, according to the Department of Industrial Policy and Promotion (DIPP).

The Indian Hospitality industry contributes around 2.2 per cent of India‘s GDP. The industry is expected to reach INR 230 billion (US$ 5.2 billion*) by 2015, growing at a robust CAGR of 12.2 per cent. India will be investing around INR 448 billion (US$ 10.1 billion*) in the hospitality industry in the next five years, according to a report ‗The Indian Hotel Industry Report 2011 Edition‘ by CYGNUS Business Consulting & Research Firm. In the next two years, a total investment of US$ 12.2 billion (INR 545.2 billion*) is expected that will add over 20 new international brands in the hospitality sector.

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The who's who of the world of international fund companies -

Blackstone, Morgan Stanley, Walton Street Capital, Starwood Capital, Merrill Lynch, Westbridge Capital, Lehman Brother are looking to invest in the hospitality sector.

Around 500 million domestic tourists are projected to travel across India by 2010 compared to around 325 million in 2006 and growing at over 10% annually.

India's hospitality sector is expected to see an estimated investment of US$11.41 billion in the next two years, and around 40 international hotel brands making their presence in the country by 2011, according to a report by Ma Foi Management Consultants. Moreover, the sector is expected to provide over 400,000 jobs.

In India, the industry supports 48 million jobs, directly or indirectly or 8.27 per cent of total employment and accounts for 5.83 percent of the GDP, according to Department of Tourism estimates.

According to an HVS International report average employee to room ratio is 1:8 in Indian hotels across all markets and drops to 1:5 for three star category of hotels. The report also states that the hotel sector would need a fresh workforce of atleast 94,000 by 2010-11.

India currently has over 200,000 hotel rooms spread across hotel categories and guest-houses and is still facing a shortfall of over 100,000 rooms (source: FHRAI).

The country is witnessing an unprecedented growth in hotel constructions and will be adding almost 114,000 hotel guest rooms to its inventory over the next five years. (source: HVS)

In the FHRAI‘s memorandum presented to the government recently, it is said that atleast 1,50,000 additional rooms are required to meet the target of 5 million foreign tourist arrivals. This entails an investment to the tune of over Rs.15,000 crore. Currently there are 1,05,000 hotel rooms in the three to five-star 66

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category in India. The annual growth rate of hotel rooms in India is 6%. Nearly 11 per cent of the hotel demand in the country is from long stay guests.

To set up a 5-star deluxe hotel with 250-300 rooms will cost approximately Rs.300 crore, excluding the land cost. As per estimates by hospitality consultancy HVS International, around 150 hotel projects are in the works across the country, which are likely to add around 53,000 rooms over the next five years.

There are about 1,285 approved budget hotels across the country with about 51,000 rooms apart from guesthouses, dharamshalas and devasthans in the unapproved sector. The footprints of the IT and ITES in Tier 2 cities like Indore, Jaipur, Agra, et al, have played a role in driving the demand for budget hotels in these cities.

The tourism ministry has proposed a cash subsidy of Rs.2 lakh per room for onestar category and Rs.3 lakh per room for two and three star category hotels to facilitate their growth. According to Federation of Hotel and Restaurant Association of India (FHRAI), the country is short of 65,000 budget category rooms.

Average Room Rate (ARR) of hotels in India is increasing at the rate of over 20%almost equal to that of hotels in developed countries such as Europe and the US. The growth in ARRs is a direct fallout of the shortage of five-

star accommodation in India and high demand generated by the booming economy. This shortage has stimulated investments in the hotel industry.

Most of the five-sar hotels are witnessing an average room occupancy rate of over 80%.

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For every room constructed, 3-5 jobs are created. The World Travel

and Tourism Council has estimated that by 2010, tourism can support 25 million jobs ( 1 in every 15 ) in India through 8% annual growth.

For every rupee that goes into building a hotel, three more are spent on furnishing it. More than 27000 items go into a hotel including building material, chandeliers, glassware, furnishings, energy saving devices etc., and at present 90% of hotel accessories are indigenously produced in India. So the domestic accessories sector stands a good chance in the near future.

The average duration of stay of a foreign tourist in India is one of the highest in the world. On an average, it exceeds 27 days in the case of non-package tourist & is 14 days in the case of package tourist.

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Government Initiatives:
Launch of Incredible India campaign to promote tourism both in domestic and international markets.

Guidelines issued for classification of Apartment Hotels / Timeshare Resorts / Guest Houses and Bed & Breakfast establishments. Railways have planned to set up 100 budget hotels at various stations along with private hospitality players. Recognition of spare rooms available with various house owners by classifying these facilities as "Incredible India Bed and Breakfast Establishments"', under 'Gold' or 'Silver' category.

Other Initiatives by the Ministry of Tourism:- Paradigm shift towards Rural Tourism / Agri Tourism, Eco-Tourism; Medical Tourism launched as a new product.

The Government has launched a Scheme of ‗Visa on Arrival‘ (VoA) from January 2010 for citizens of five countries, viz. Finland, Japan, Luxembourg, New Zealand and Singapore, visiting India for tourism purposes. The Government has now extended this Scheme for the citizens of six more countries, namely Cambodia, Indonesia, Vietnam, Philippines, Laos and Myanmar from January 2011. During the period January-June 2011, a cumulative figure of 5774 VoAs were issued, with a total of 865 & 770 VoAs issued in the months of May & June respectively.

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As per the press release by Press Information Bureau (PIB) dated November 15, 2010, the Union Ministry of Tourism has included Medical Tourism under the Marketing Development Assistance (MDA) Scheme. The Ministry of Tourism has sanctioned US$ 27,742 as MDA to 10 Medical Tourism Service Providers during current year.

As per a market research report 'Booming Medical Tourism in India' by RNCOS, India's share in the global medical tourism industry will reach around 3 per cent by the end of 2013. Moreover, medical tourism is expected to generate revenue worth US$ 3 billion by 2013, growing at a CAGR of around 26 per cent during 20112013. The number of medical tourists is anticipated to grow at a CAGR of over 19 per cent during the forecast period to reach 1.3 million by 2013

Domestic medical tourism in the country has also seen growth in the recent years. As per the report 'Domestic Tourism in India, 2008-09' released by the National Sample Survey Office (NSSO), trips for 'health and medical' purposes formed 7 per cent of overnight trips in the rural population and about 3.5 per cent in the urban population. 'Health and medical' purposes accounted for 17 per cent of same-day trips in rural India and 8 per cent in urban India. Expenditure on medical trips accounted for 30 per cent of all overnight trip expenditure for rural India and 15 per cent for urban

According to a report by FICCI and Ernst & Young, medical tourism industry, currently pegged at $450m, has the potential to grow into a $2.2bn (Rs.10,000 crore) industry by 2012. According to a study by McKinsey and the Confederation of Indian Industry (CII), medical tourism in India could become a US$ 2 billion industry by 2012 (from US$ 350 million in 2006). An estimated 1.75 lakh medical tourists visited India in 2005 for cardiac care, cosmetic surgery,

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joint replacements and dentistry, about 30% more than 2004. Inbound medical tourism is expected to contribute about 15% of corporate hospitals total earnings by 2009.

Another initiative in the pipeline is industry body CII‘s partnership with 29 hospitals across 16 states to work out a price band for speciality services in cardiology, orthopaedics, oncology and minimally invasive surgery. The healthcare industry is working closely with the tourism ministry, which will incorporate these packages under its ‗Incredible India‘ campaign tp promote medical tourism in overseas markets.

Currently 5 hospitals in the country have got National Accreditation Board for Hospitals and Healthcare Providers (NABH) accreditation. 15 more hospitals are expected to be accredited in one year. 32 hospitals have applied for the accreditation with the NABH and many are expected to follow. International Society for Quality in Healthcare (ISQua) - an international body that certifies quality of healthcare delivery, recognises the NABH accreditation is of the highest global standards.

A new category of visa, "Medical Visa" ('M'-Visa), has been introduced which can be given to foreign tourists coming into India for medical tourism.

Eco-tourism - The government is considering various fiscal and policy measures to promote ecological and adventure tourism in the country including formulating uniform ecological guidelines to conserve nature and waiver of service tax charged on adventure tours.

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Ministry of Tourism has tied up with United Nations Development

Programme (UNDP) to promote rural tourism. 15 key tourist destinations/circuits being developed to world class standards and identified 50 villages for exposition of handicrafts and handloom.

A maximum amount of Rs.50 lakh is sanctioned for each rural tourism project under the Rural Tourism Infrastructure Development scheme for development of tourism related infrastructure.

The Ministry of Tourism has launched a scheme for development of nationally and internationally important destinations and circuits through Mega Projects. As on 4.2.2011, 38 mega projects have been identified, out of which 26 projects have already been sanctioned.

The United Nations Educational Social and Cultural Organization have declared 16 centrally protected monuments: Ajanta, Ellora, Elephanta Caves, Agra Fort, Taj Mahal, Fatehpur Sikri, the Sun Temple at Konark, the Churches and Convents of Goa, Khajuraho, the Buddhist monuments of Sanchi, Humayun's Tomb, Qutab Minar, Hampi monuments, Pattadakal monuments, Brihadisvara temple and the Mahabalipuram monuments as world heritage sites.

The Ministry of Tourism has sanctioned 781 projects in 34 States / Union Territories (UTs) in the country amounting to US$ 511.82 million during the last three years up to June 2010, as per a press release dated October 18, 2010

During the 11th Five Year Plan, (as on 31.12.2010) Ministry of Tourism has sanctioned, an amount of Rs.3112.71 crore for 991 tourism infrastructure projects, including Rural Tourism and Human Resource Development projects.

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924 Infrastructure projects worth Rs.1440.86 crore sanctioned during

the 10th Plan. The government has already okayed plans to substantially upgrade 28 regional airports in smaller towns. The up gradation of national highways connecting various parts of India has opened up the way for the development of budget hotels in India.

Focus on Buddist Circuit through infrastructure upgradtion of Buddhist Circuits and "Walk with the Buddha" Campaign. The Tourism Ministry has identified 62 centres of Buddhist interest for development.

Tourism revival in J&K through a special tourism package. Focus on North East as India's tourism gateway to the East.

Tourism ministry has proposed to declare a conditional 10-year tax holiday for all tourism projects in the country. Companies would enjoy full tax exemption up to 50% of the profits, but to enjoy tax benefits for balance amount they would be required to re-invest that part of the profits in tourism projects.

According to the Consolidated FDI Policy, released by DIPP, Ministry of Commerce and Industry, Government of India, the government has allowed 100 per cent foreign investment under the automatic route in the hotel and tourism related industry. And with the relaxation of FDI restrictions on the real estate sector the hospitality industry has registered an increase in investments.

Social awareness among Service Providers and capacity building of Taxi Drivers and Guides through "Atithi Devo Bhavah" Campaign.

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Indian Hotels:

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Growth of Indian Hotel Industry:
Hotel industry expects 15-20% growth in coming yrs The mood is upbeat in the travel and tourism industry especially in the hotel business. At the Hotel Investment Forum India, Indian and international hotel chains expressed optimism at the growth potential of the Indian market and outlined big investment plans for the coming year. The Indian hotel industry is looking very good because the kind of growth expected over the next couple of years or more is to the tune of 15-20% -something of that we have already seen in the last year. Importantly, the hotel industry and the hotel chain groups are very bullish and optimistic about their investments and commitment as far as the growth is concerned. Indian Hotel shave committed about Rs 150 crores for this year in upgrading their properties. They may be also looking at a new brand, which could be a three or four star hotel. They have also talked about margins, which are looking very good. In fact, they expect them to improve going forward. They are currently in the process of setting up 43 properties over the next 18 to 36 months. They will be looking at adding one hotel or one property every month starting this year. So they will be looking at adding about 1,200 to 2,000 rooms over the next one year across India and international. India has the potential to become the number one tourist destination in the world with the demand growing at 10.1 per cent per annum, the World Travel and Tourism Council (WTTC) has predicted. The WTO (World Travel Organisation) predicts that India will receive 25 million tourists by year 2015.

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Major attractions in India are the world's highest mountains, miles of coastline with excellent beaches, tropical forests and wildlife, desert safari, lagoon backwaters, ancient monuments, forts and palaces, adventure tourism and, of course, the Taj Mahal. India currently has over 200,000 hotel rooms spread across hotel categories and guesthouses and is still facing a shortfall of over 100,000 rooms (source: FHRAI).

The country is witnessing an unprecedented growth in hotel constructions and will be adding almost 114,000 hotel guest rooms to its inventory over the next five years. (source: HVS) The earlier setbacks in global tourism have strengthened the Department of Tourism's resolve to promote India's tourism through aggressive marketing strategies through its campaign 'Incredible India'. The 'marketing mantra' for the Department of Tourism is to position India as a global brand to take advantage of the burgeoning global travel and trade and the vast untapped potential of India as a destination.

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Evolution till now:
The Indian hospitality industry may have gone through a period of slow growth in recent it is now boom time, especially in the last couple of years when the industry has shown a double digit growth. There are many factors that contribute to the success that the industry is enjoying now, but mainly I think it is India's strong GDP performance, the government's support for the private sector and foreign investment in the industry, and an improvement in the aviation sector. The market has definitely opened up for international hospitality brands now and going forward, I'm certain that more and more hotels will come up, both from domestic players and newly born brands, and from established international players taking their place in the Indian hospitality landscape.

Gauging 2012: he rapid growth in India‘s hospitality industry presents hoteliers like us a lot of opportunity. The speed of growth at present at a domestic and international level means the country has a shortfall of available hotel beds. ONYX Hospitality looks at India from two strategic points of view, as a source market as well as a market for potential development. India is a key source market for ONYX‘s cornerstone Amari brand which has a network of hotels and resorts in Thailand and abroad, and strong brand recognition. Considering the business buoyancy and burgeoning hospitality industry scenario in India, we anticipate opportunities for growth from both ends of the market. We are already well on our way to establishing our presence in India with Amari Ludhiana.

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Maintaining the growth trajectory:
In a rapidly growing market place, hospitality providers need to differentiate themselves from the competitors. There is visibly a need for smaller, professional and somewhat more flexible hotel operators. ONYX fits this bill well. Its Asian roots and Thai lineage makes it that much more attractive. ONYX brings over four decades of hospitality knowledge in developing, owning and operating business and leisure hotels in the four-star and five-star category with a range varying from a 57- room luxury resort in exotic Krabi to a 570-room business hotel in the heart of Bangkok. The fact that ONYX owns close to half the number of hotels currently in the portfolio, we have the inherent advantage of thinking more like an owner and less as an operator. And finally, the success of our hotels in competitive markets where numerous international brands have a presence must speak for our ability as able hotel managers.

Number of hotels and restaurants in India: Hhoteotel category 5 star deluxe/5 star 4 Star 3 Star 2 Star 1 Star Heritage Uncategorised Total Restaurants No. of Hotels 165 134 505 495 260 70 7,078 8,707 12,750 No. of Rooms 43, 965 20, 770 30,100 22,950 10,900 4,200 1,32,885

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News about Growth of Hotel Industry in India:
Hotel industry cuts sales & marketing costs:

For the hotel industry, the past few weeks have rekindled memories of the hard times during the economic downturn of 2008, when the sector had seen a slump. However, the crisis that had affected the hospitality industry for almost two years, offered various lessons the industry is now finding handy. ―The times are not as bad, but we are much better prepared to handle the situation. Unlike in 2008-09, this time, we are aware of what is happening,‖ said Dilip Puri, managing director (India) and regional vice-president (South Asia), Starwood Hotels and Resorts.

Hotels are trying to reinvent processes and rationalise costs to tide over the current crisis. Many hotels have cut sales and marketing expenditure on mainstream advertising. Sanjoy Pasricha, vice-president (sales and marketing), Leela Hotels, said, ―We are pulling back about 10-15 per cent of the sales and marketing expenditure. We are turning more aggressive on public relations and other below-the-line activities to achieve a balance.‖ Companies are also cutting staff-to-room ratios. ―We determined we could drop the ratio from 1.8 to 1.6, and still maintain efficiency,‖ Puri said. Most hospitality chains plan to reduce energy consumption by targeted amounts in the coming years. While the Starwood group has set a target of reducing energy consumption by 30 per cent by 2020, Marriott Hotels is trying to reduce energy consumption on room base by five to 10 per cent annually.

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This year, foreign tourist arrivals have seen a drop, and this has led to lower occupancies in hotels. Rising airfares have only added to the tourism industry‘s gloom. Austerity drives have also ensured business hotels, especially five-star ones, do not benefit from conferences and meetings. ―It is not just the government, even the corporate sector has started taking austerity measures,‖ Pasricha said. P R S Oberoi, chairman Oberoi Hotels and Resorts, had recently stated he expected slow growth in the short to medium term. ―After two exceptionally bad years, the global hospitality industry was expected to recover in 2011. Despite encouraging signs in the first half of 2011, there was growing uncertainty during the latter part of the year,‖ he stated. The hotel sector recorded a 20 per cent loss in May, as occupancies remained low and average room rates subdued. For the coming year, the hospitality industry expects flat growth in occupancies and only a marginal rise in average room rates. Industry experts say even as additional inventory has arrived, demand is yet to balance supply. ―What is more disturbing is the occupancy and average room rates so far this year have been the lowest for these months since 2006, barring 2009, which was an unusual situation...One must address the softening of the market, as the new hotel inventory has also come on board,‖ said Jean-Michel Casse, senior vice-president (operations), Accor Hotels. Most hotel companies saw declines in profits for the fourth quarter of 2011-12. Rising costs led to a fall of 31 per cent in the net profit of Indian Hotels., while at Rs 45.13 crore, EIH recorded a 32.7 per cent drop in net profit. Hotel Leelaventures, however, recorded a 20 per cent rise in profit.

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Challenging times for hospitality sector:
As the hospitality industry readies for unprecedented growth in the city, people from varied cultures and different communities are gradually making Chennai their home. With youngsters from the North East looking towards South India for greener pastures, and executives from the West being roped in to bring in an international perspective, recruitment patterns are facilitating a rare cultural exchange. For Roger Brantsma from Netherland, it's his first stint here. Although he was cautioned about the humid weather, the general manager of The Hilton has little qualms settling down with his family. ―The dinner invitations extended by Indian families and getting invited for festivals such as Diwali is only adding to my international experience,‖ says Mr. Brantsma, who came to the city 10 months ago. With inventory going up, the number of people required by the industry is also on the rise. But challenges such as poor remuneration, long working hours and limited career prospects, are not attracting the kind of talent the industry needs. According to I. Raj Galli, Director (HR), The Park, to meet the challenges, the hotel industry is increasingly ―dropping its threshold salary‖ and taking in a good number of candidates from the north-eastern states. ―Ten years ago it was difficult. Probably only 10 per cent of staff comprised those recruited from outside the state. Today in some hotels it is a 50:50 ratio,‖ says Mr. Galli. Hotels too are going all out to bring in manpower. As an executive says, previously only luxury hotels provided accommodation to their staff. Today, it has become more or less a standard. More international chefs are also being flown in to add to the culinary experience in the kitchen.

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Hotels also put in a lot of time training the staff. For instance, one hotel has a cross cultural training in place. It invites industry experts hailing from different nationalities to address its employees and educate them about the nuances of their respective culture. Another hotel had a sensitisation programme about the differently abled and their needs and how they must be treated. When a hotel is set up, many groups seem to welcome executives from the West as they would set standards for the different processes that come together to make the hotel — its just not about the building. ―It is hard work to get a hotel going. A lot of things have to be pieced together, systems have to put in place and work timings should not matter to staff at that point of time. But many youngsters don't understand that it is a learning experience and not always will one get an opportunity to work in a hotel that is being built from scratch. Which is why there is a high turn over rate in such projects,‖ said a person, who has been in the industry for over 20 years.

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Tourism and Hospitality Industry:

In India, the tourism and hospitality industries are witnessing a period of exponential growth; the world's leading travel and tourism journal, "Conde Nast Traveller", ranked India as the numbers of travel destination inthe world for 2007, as against fourth position in 2006.

The year 2007 also marked the fifth consecutive year during which India has witnessed double-digit growth in foreign tourist arrivals.

Along with the rise in foreign tourist arrivals, foreign exchange earnings have shown a robust growth of 25.6% during January-October 2007 to touch US$ 6.32 billion as against US$ 5.03 billion during January-October 2006.

Tourism has now become a significant industry in India, contributing around 5.9 per cent of the Gross Domestic Product (GDP) and providing employment to about 41.8 million people.

As per the World Travel & Tourism Council, the tourism industry in India is likely to generate US$ 121.4 billion of economic activity by 2015 and Hospitality sector has the potential to earn US$ 24 billion in foreignexchange by 2015.

Additionally, India is also likely to become a major hub for medical tourism, with revenues from the industry estimated to grow from US$ 333 million in 2007 to US$ 2.2 billion by 2012, says a study by theConfederation of Indian Industry (CII) and McKinsey.

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The booming tourism industry has had a cascading effect on the hospitality sector with an increase in the occupancy ratios and average room rates. While occupancy ratio is around 80-85 per cent – up nearly 10 percent from three years back, the average increase in room rates over the last one year has hovered around 22-25%.

It is pertinent to mention in this context, that according to recent estimates, there are a total of 110,000 rooms in India, as against a total requirement of approximately 250,000 – demonstrating the untapped potential that continues to exist in this industry.

With a view to stimulating domestic and international investments in this sector, the government has implemented the following initiatives:

i. 100% FDI under the automatic route is now permitted in all construction development projects including construction of hotels and resorts, recreational facilities and city and regional level infrastructure. ii. 100% FDI is now permitted in all airport development projects subject to the condition that FDI for up gradation of existing airports requires FIPB approval beyond 74%. iii. A five year tax holiday has been extended to Companies that set up hotels, resorts and convention centers at specified destinations, subject to compliance with the prescribed conditions. iv. Plans for substantial up gradation of 28 regional airports in smaller towns and the privatization and expansion of Delhi and Mumbai airports

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The aforementioned initiatives have resulted in increasing FDI inflows being witnessed by this industry. For the period April 2000 to November 2007, a total of US$ 636 million in foreign direct investments was

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channelized towards development of hotels and tourism. The hospitality industry has also been receiving increasing interest from the Private Equity Sector – investments have tripled from US$ 60 million in 2004-05 to over US$ 180 million in 2006-07.

It is estimated that the hospitality sector is likely to see a further US$ 11.41 billion in inbound investments over the next two years.

Several global hospitality majors such as Hilton, Accor, Marriott International, Berggruen Hotels, Cabana Hotels, Premier Travel Inn (PTI) and InterContinental Hotels group have already announced major investment plans in India in recent years.

India is a fascinating country that enchants travellers with slogans like ―Atithi Devo Bhava‖! It means that in India every guest is considered equal to god and is respected and treated with the same enthusiasm. The Ministry of Tourism, India, has made significant efforts in expanding the tourism industry by maintaining the overall infrastructure of the country. This is the reason why India stays on the top of the travel itineraries of many vacationers seeking a wonderful destination to spend their holidays.

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Every year millions of travellers book flights to India and get floored by the image of incredible India and warm-welcome by the locals. The great historical monuments, aweinspiring temples, charming landscapes, flourishing valleys and vibrant culture of India are worth exploring and touch the soul of every culture enthusiast. The beauty of this remarkable country never fades and thus cheap flights to India stay in demand all year long among the travellers. The country features boundless hotels ranging from five stars to small budget hotels and guesthouses. The travellers booking flights to India can plan their stay in any hotel depending upon their needs and depth of their pocket. All the hotels in India are renowned for their excellent services and warm-welcome. During the peak seasons, these hotels get jam-packed with travellers so it is advised to plan early and make advance booking of hotels and flight tickets to grab cheap flights to India. The infrastructure at most tourist destinations in India (airports, railway system and hotels) is excellent and plays a great role in enriching the holiday experience of the travellers. The most popular airlines operating in and out of India are Jet Airways, Kingfisher Airline, Emirates, and Qatar Airways that connect the country with rest of the world. Today the tourism and hospitality industry in India contributes around 6.23 per cent to the national GDP and 8.78 per cent of the total employment in the country. According to the Eleventh Five Year Plan, the Indian government is going to spend an amount of US$472 billion in elevating and developing civil amenities such as bridges, roads, ropeways, telecom services, ports, and other forms of transport

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World ranking of the Indian Travel and Tourism Industry

Parameter Absolute size Relative contribution to national economy Growth forecast

Ranking 12 90

04

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Indian Tourist places:

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Classification of Hotels:

The cost and quality of hotels are usually indicative of the range and type of services available. Due to the enormous increase in tourism worldwide during the last decades of the 20th century, standards, especially those of smaller establishments, have improved considerably. For the sake of greater comparability, rating systems have been introduced, with the one to five stars classification being most common.

1. Boutique hotels:
Boutique Hotel" is a term originating in North America to describe intimate, usually luxurious or quirky hotel environments. Boutique hotels differentiate themselves from larger chain or branded hotels by providing an exceptional and personalized level of accommodation, services and facilities. Boutique hotels are furnished in a theme, stylish and/or aspirational manner. Although usually considerably smaller than a mainstream hotel (ranging from 3 to 100 guest rooms) boutique hotels are generally fitted with telephone and Wi-Fi Internet connections, honesty bars and often cable/pay TV. Guest services are attended to by 24 hour hotel staff. Many boutique hotels have on site dining facilities, and the majority offer bars and lounges which may also be open to the general public of the total travel market a small percentage are discerning travellers, who place a high importance on privacy, luxury and service delivery. As this market is typically corporate travellers, the market segment is non-seasonal, high-yielding and repeat, and therefore one which boutique hotel operators target as their primary source of income.

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Unusual hotels:
Unusual hotels are those some of them might not offer 5-star comfort but they truly are the world‘s most amazing and most unusual hotels. These are some unusual Hotels:

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Tree house hotels:
India tree house hotels, apart from being unique places to stay, are an absolute delight if you're a nature lover. You'll find these tree houses dotted all over the country. They range from luxurious to rustic, and are perfect for a romantic getaway or just relaxing in peaceful surroundings.

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Cave Hotels:

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Capsule hotels:
A capsule hotel is a type of hotel, developed in Japan that features a large number of extremely small "rooms" (capsules) intended to provide cheap and basic overnight accommodation for guests not requiring the services offered by more conventional hotels. This style of hotel accommodation was developed in Japan and has not gained popularity outside of the country, although Western variants known as "pod hotels" with larger accommodations and often private baths are being developed. Guests are asked not to smoke or eat in the capsules.

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Ice hotels:
An ice hotel is a temporary hotel made up of snow, sculpted blocks of ice, and, in some cases, some steel framing. They are promoted by their sponsors and have special features for travellers who are interested in novelties and unusual environments, and thus are in the class of destination hotels. Their lobbies are often filled with ice sculptures, and food and beverages are specially chosen for the circumstances. All of the ice hotels are reconstructed every year, and are dependent upon constant sub-freezing temperatures during construction and operation. The walls, fixtures, and fittings are made entirely of ice or compacted snow, and are held together using a substance known as snice, which takes the place of mortar in a traditional brick-built hotel.

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Snow hotels:
A hotel is an establishment that provides lodging paid on a short-term basis. The provision of basic accommodation, in times past, consisting only of a room with a bed, a cupboard, a small table and a washstand has largely been replaced by rooms with modern facilities, including en-suite bathrooms and air conditioning or climate control. Additional common features found in hotel rooms are a telephone, an alarm clock, a television, a safe, aminibar with snack foods and drinks, and facilities for making tea and coffee. Luxury features include bathrobes and slippers, a pillow menu, , and bathtubs. Larger hotels may provide additional guest facilities such as a swimming pool, fitness center, business center, childcare, conference facilities and social function services.

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Garden hotels:
Many hotels converted from large private residences have gardens designed by famous garden designers or are particularly notable for their gardens. Alternative uses have had to be found for castles, palaces, monasteries, mansions and country seats which have become financially unviable as homes, and their conversion into hotels has often been successful. This has led to the creation of 'garden hotels', many of which are better known for their gardens than for their modern use as hotels.

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Underwater hotels:
The underwater hotel would have been one of the most expensive hotels on the earth. The hotel was conceived in 2006, was delayed in 2008, and as of June 2010 no construction or planned construction has occurred.

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Star classifications:

The Superior flag is provided when the additional service and accommodation provisions are not sufficient for the next Hotel star. The bathroom facilities are usually at the same level as for two stars hotels but built from cheaper materials. The cost for regular inspection by independent associations is waived as well.
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100% of the rooms with shower/WC or bath tub/WC Daily room cleaning 100% of the rooms with colour-TV together with remote control Table and chair Soap or body wash Reception service Facsimile at the reception Publicly available telephone for guests Extended breakfast Beverage offer in the hotel Deposit possibility

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The Superior flag is provided when the additional service and accommodation provisions are not sufficient for the next Hotel star. The Standard-Superior does usually offer the same service level as three-star hotels but the interiors of the hotel are smaller and cheaper so that the three stars were not to be awarded by the inspection body. A two-star superior does not require mystery guesting.
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Breakfast buffer Reading light next to the bed Bath essence or shower gel Bath towels Linen shelves Offer of sanitary products (e.g. toothbrush, toothpaste, shaving kit) Credit Cards

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The Superior flag is provided when the additional service and accommodation provisions are not sufficient for the next Hotel star. The accommodation facilities for a superior hotel need to be on a modern level and fully renovated which is checked regularly.

Reception opened 14 hours, accessible by phone 24 hours from inside and outside, bilingual staff (e.g. German/English)

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Three piece suite at the reception, luggage service Beverage offer in the room Telephone in the room Internet access in the room or in the public area Heating facility in the bathroom, hair-dryer, cleansing tissue Dressing mirror, place to put the luggage/suitcase Sewing kit, shoe polish utensils, laundry and ironing service Additional pillow and additional blanket on demand Systematic complaint management system

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The Superior flag is provided when the first class hotel has a proven high quality not only in the rooms. The superior hotels provide for additional facilities in the hotel like a workout room. The quality is checked regularly by mystery guesting of an external inspection service.

Reception opened 18 hours, accessible by phone 24 hours from inside and outside

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Lobby with seats and beverage service Breakfast buffet or breakfast menu card via room service Minibar or 24 hours beverages via room service Upholstered chair/couch with side table Bath robe and slippers on demand Cosmetic products (e.g. shower cap, nail file, cotton swabs), vanity mirror, tray of a large scale in the bathroom)

Internet access and internet terminal

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The Luxury star hotels need to attain high expectations of an international guest service. The Superior Luxury star is only awarded with a system of intensive.
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Reception opened 24 hours, multilingual staff Doorman-service or valet parking Concierge, page boy Spacious reception hall with several seats and beverage service Personalized greeting for each guest with fresh flowers or a present in the room

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Minibar and food and beverage offer via room service during 24 hours Personal care products Internet-PC in the room Safe in the room Ironing service (return within 1 hour), shoe polish service Turndown service in the evening

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SWOT ANALYSIS
STRENGTHS
 A very wide variety of hotels is present in the country.  There are international players in the market such as Taj and Oberoi & International Chains  A manpower cost in the Indian hotel industry is one of the lowest in the world.  India offers a readymade tourist destination with the resources  Natural and cultural diversity  Demand-supply gap  Government support  Increase in the market share

WEAKNESSES
 The cost of land in India is high at 50% of total project cost as against 15% abroad.  The hotel industry in India is heavily staffed.  High tax structure in the industry makes the industry worse off than its international.  Only 97,000 hotel rooms are available in India today.  Only limited value added services  Poor support infrastructure  Slow implementation  Susceptible to political events.

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OPPORTUNITIES

 Demand between the national and the inbound tourists can be easily managed due to difference in the period of holidays.  In the long-term the hotel industry in India has latent potential for growth.  Unique experience in heritage hotels.  Rising income.  Open sky benefits.

THREATS
 Guest houses replace the hotels.  Political turbulence in the area reduces tourist traffic and thus the business of the hotels  Changing trends in the west demand similar changes in India  The economic conditions of a country have a direct impact on the earnings in hotel industry.  Lack of training man power in the hotel industry.  Fluctuations in international tourist arrivals.  Increasing competition

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CONCLUSION
This hotel industry analysis report helps to know the full information of Indian hotel industry. The government support towards the hotel industry and its development is appreciable. It creates interest of the competitors to grow drastically. The hotel industry comprises a major part of the tourism industry. The hotel industry contributes employment and economical growth of the country.

The report shows that the present and future skyrocket scenario of the industry. Various classes and categories of hotels and their services of the industry are very effective. The market share and expansion of industry in Indian economy is rosy day by day. At present the government is very liberal in regulating and licensing to the hotels because to increase foreign tourist average daily rate.

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Bibliography
 www.google.com  www.scribid.com  www.yahoo.com

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