A PROJECT REPORT

ON
“SERVICE MANAGEMENT IN HOSPITALITY INDUSTRY
WITH
REFERENCE TO FORTUNE PARK LAKE CITY, THANE”

SUBMITTED TO
UNIVERSITY OF MUMBAI
IN PARTIAL FULFILMENT
OF THE
REQUIREMENT OF THE DEGREE OF
BACHELOR OF MANAGEMENT STUDIES

BY
MISS. ALINA DARUGAR
T.Y.B.M.S. [SEMESTER V]
ROLL NO: 55

UNDER GUIDANCE OF
(Prof. NEHA MALKHARE)

JOSHI BEDEKAR COLLEGE OF ARTS & COMMERCE

THANE (W)
MUMBAI-400601
ACADEMIC YEAR: 2014-15

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DECLARATION

I, Miss ALINA DARUGAR, of JOSHI BEDEKAR COLLEGE OF ARTS AND

COMMERCE of T.Y.BMS Semester V hereby declare that I have completed the
project on “SERVICE MANAGEMENT IN HOSPITALITY INDUSTRY WITH
REFERENCE TO FORTUNE PARK LAKE CITY, THANE” in the academic year
2014-2015. The information submitted herein is true and original to the best of my
Knowledge.

NAME: ALINA DARUGAR

ROLL NO: 55

SIGNATURE:

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ACKNOWLEDGEMENT

Living in a Competitive world for years I was always fascinated with the world of
Service and its management. I always wondered how only efficient service
management can influence and satisfy the consumers. I always wanted to get an
insight of service sector management. This project report has given wings to my
dreams and ideas. This is not a single handed effort but, a success story of
collective minds.

I would like to thank,

University of Mumbai for encouraging me to work on this project and give me an

opportunity to follow my dreams, My Principal Mrs. SHAKUNTALA SINGH as
well as my Coordinator, Mr. D M MURDESHWAR and my Project guide, Mrs.
NEHA MALKHARE, who was always there, ready and willing to help me with
my doubts and make things easier for me.

My colleagues and acquaintances – whose advice, tips, and comments have always
helped me to recuperate. They have been true friends in need and indeed.

Finally this report won’t have been possible without the support and care of my
Family. My family has always supported me in all my endeavors and dreams and
let me do what I desire to. They have been very supportive and inspiring, helping
me frequently with the report.

Thank you all.

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 INDEX
SR. NO TOPIC PAGE NO
Chapter 1 Executive summary 5-12
Chapter 2 Service Management 13-22
Chapter 3 Introduction to hotel 23-33
industry and hotel
marketing
Chapter 4 Performance and 34-39
prospects of hospitality
sector in India
Chapter 5 Company profile 40- 49
Chapter 6 Fortune Lake City, Thane 50-65
Chapter 7 Service Quality, failures 66 - 78
and recovery methods
Chapter 8 Departments in fortune 79- 86
park lake city
Chapter 9 Marketing Strategy 87- 99
Chapter 10 Customer Relationship 100-104
Management
Chapter 11 SWOT Analysis 105- 106
Annexure: Questionnaire 107
Observation and 108
Recommendation
Conclusion 109-110
Bibliography and 111
Webliography
CHAPTER 1
1.1 EXECUTIVE SUMMARY

Hotel Industry in India has witnessed tremendous boom in recent years. It is

inextricably linked to the tourism industry and the growth in the Indian tourism
industry has fuelled the growth of Indian hotel industry.

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The project highlights key information about the hospitality industry. It also
discusses the future prospects of the hotel industry. It covers information about the
classification of the hotels and its marketing. It also deals with information about
the political, economic, social and technological analysis of the environment
favorable for the hotel industry. It then talks about the internal and external
marketing of the hotels.

The project then heads towards a detailed study of all the important and relevant
aspects of the hotel industry with a complete first hand study of Fortune Park Lake
City, ITC’s brand – FORTUNE PARK. Hotel FORTUNE PARK LAKE CITY,
Mumbai is one of the leading 4 star hotels in Mumbai, the dream city of India. The
hotel offers a number of facilities and amenities to its customers like spa, lounge,
swimming pool, accommodation, restaurants, banquets etc.

The project covers the service quality, service failures and also the recovery
methods adopted by Fortune Park. There are examples of service encounters and
how the hotel tries to overcome them using the “LEARN” model. A detailed study
of the hotel’s marketing mix along with its different marketing strategies is done.
Lastly, it talks about customer relationship management in Fortune Park and in
which areas do they face competition.

1.2 OBJECTIVES

This project includes everything related to service and the project is made taking
the word ‘hospitality’ into consideration, concentrating more on managing service
quality.

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o To study the concepts of service and service management
o To study the aspects of service management, taking hospitality industry into
consideration.
o To study how service marketing takes place in hospitality industry.
o To determine the overall prospects, growth and future of hospitality
industry.
o To clarify the difference between service quality and service productivity.
o To study the service failures, service encounters and service recovery
methods of hospitality industry in depth.
o To study the customer relationship management at hospitality industry.

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1.3 SCOPE OF STUDY

This project involves the study about the hospitality industry. It also involves the
study of all the important and relevant aspects of the hotel industry with a complete
first hand study of Fortune Park Lake City, ITC’s brand – FORTUNE PARK.

This is done by interviewing the manager of the company. Therefore the scope of
study is limited to some extent.

The project covers the concept of hospitality, marketing mix, service quality,
service failures and also the recovery methods adopted by Fortune Park. The
scope of study is limited only to Mumbai city.

1.4 RESEARCH METHODOLOGY

In order to conduct the research a proper methodology is of utmost importance.

The information provided is collected from various sources. The data is collected
in accordance with the objectives of the project.

SOURCES OF DATA

The data is collected from two sources:

Primary data: The primary data has been collected by conducting an interview
with the HR Manager of Fortune Park Lake City, Thane.

Secondary data: The secondary data has been collected by referring various
websites, books, magazines and other sources related to the project and company.

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1.5 AN OVERVIEW OF HOTEL INDUSTRY IN INDIA

Hotel Industry in India has witnessed tremendous boom in recent years. Hotel
Industry is inextricably linked to the tourism industry and the growth in the Indian
tourism industry has fuelled the growth of Indian hotel industry. The thriving
economy and increased business opportunities in India have acted as a boon for
Indian hotel industry. The arrival of low cost airlines and the associated price wars
have given domestic tourists a host of options. The 'Incredible India' destination
campaign and the recently launched 'Atithi Devo Bhavah' campaign have also
helped in the growth of domestic and international tourism and consequently the
hotel industry. In recent years government has taken several steps to boost travel &
tourism which have benefited hotel industry in India. These include the
abolishment of the inland air travel tax of 15%; reduction in excise duty on
aviation turbine fuel to 8%; and removal of a number of restrictions on outbound
chartered flights, including those relating to frequency and size of aircraft. The
government's recent decision to treat convention centres as part of core
infrastructure, allowing the government to provide critical funding for the large
capital investment that may be required has also fuelled the demand for hotel
rooms.

The opening up of the aviation industry in India has exciting opportunities for hotel
industry as it relies on airlines to transport 80% of international arrivals. The
government's decision to substantially upgrade 28 regional airports in smaller
towns and privatization & expansion of Delhi and Mumbai airport will improve the
business prospects of hotel industry in India.

According to a report, Hotel Industry in India currently has a shortage of 100,000

rooms. Over the last decade and half the mad rush to India for business

8
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. 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 As per reports, the
hospitality sector has the potential to earn US $24 billion in foreign exchange by
2015.

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 the
occupancy ratio is around 80-85%, up nearly 10% from three years ago, the
average increase in room rates over the last one year has hovered around 22-25%.
According to recent estimates, there is almost a 2:1 demand-supply ratio for rooms
in India.

Number of hotels and restaurants in India:

HOTEL CATEGORY NO OF HOTELS NO OF ROOMS

5 STAR 165 43, 965
4 STAR 134 20, 770
3 STAR 505 30,100
2 STAR 495 22,950
1 STAR 260 10,900
HERITAGE 70 4,200
UNCATEGORISED 7078 -
TOTAL 8707 1,32,885
RESTAURANTS 12750
1.6 INTERVIEW WITH THE HR MANAGER OF FORTUNE
PARK LAKE CITY, THANE:
1. What is service according to you?

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 o Service means helping the customer intangibly in every possible way.
2. What does hospitality mean to you?
o Hospitality according to fortune is satisfying customers needs and
wants
3. What are the service quality methods that Fortune follows?
o FORTUNE follows a SERVQUAL method on a quarterly basis and
takes feedback from its employees and customer to ensure that quality
is achieved.
4. Have your company encountered with any service failure?
o By far Fortune have not encountered with any major service failures.
5. What are the service recovery methods?
o Our organization follows the LEARN policy, and the employees are
trained efficiently to immediately handle the worst situation.
6. How does Fortune handle customer complaints?
o Fortune makes sure if the customers complaints are genuine if so, it
tries to solve it by explaining the customers politely and genuinely,
they apologize by rectifying its mistake as soon as possible.
7. What effort does your firm takes to satisfy the customers?
o Fortune makes sure that they can offer the best of services to the
customer all the best facilities and amenities to comfort the customer.
8. What are the service marketing strategies that your firm follows?
o Fortune solely concentrates on the business class population as its
major income is from banquets and boardrooms.

9. How does the department co-ordinates with each other?

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 o The department is trained to coordinate with each other and
immediately they head of each department resolves any grievances
between the employees. They are motivated by rewards. Every month
birthdays are celebrated of employees.
10.What are the future prospects for Fortune Park?
o Fortune is trying to expand its prospects in future hospitality industry.
They are growing and making its place in a leading market and trying
to reach its benchmark.
11. Do you have employee appraisal system?
o Yes they have an employee appraisal system. Fortune offers various
rewards, promotions, incentives etc.
12. Do you provide rewards to the customer and employees?
o Both are offered variety of rewards.
13. How are your services different from your competitors?
o Fortune is trying to differentiate its services from its customer by
offering them very polite and empathic services. Their employees are
not robotic and always serve the customers with a smile.
14. Do you follow service guarantee process?
o Yes, fortune offers a 100% customer service guarantee.
15.How does your firm satisfy its customer and its employees as well?
o The firm tries to improve its services in terms of quality and
technology by introducing various new offers and services.
16.What are the major areas or departments where the firm needs to work or
improve?

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 o The firm needs to improve on its staying facilities as they offer only a
few rooms and they cannot meet the requirements of people during
peak times.
17. What is the overall growth plan of Fortune Park?
o Fortune is growing at a fast pace and its expanding in all areas
contributing to the GDP of service sector. The future of fortune park
hotel looks rosy.

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CHAPTER 2: SERVICE MANAGEMENT

The industrial revolution involved changes not only in the production but also in
the financial structure, transportation as well as communication network. The
economic benefits of large scale production could never had been realized without
the emergence of two biggest service sectors viz. Rail, Roads and Banks.

The days when the perception of services remained confined to work with only
service motto are gone. The services were done without charging any fees or
accepting any obligation. The mechanized system has paved a way for socio-
economic transformation which has made possible to increase the level of
disposable income. We spend more when we earn more. We take interest in
availing modern facilities and amenities. The manufacturing sector contributes a
lot to the process. Primary and secondary sector find it difficult to cope with the
increasing socio-economic requirements. This has drawn attention on the tertiary
sector.

2.1CONCEPT OF SERVICE

Definition: According to American Marketing Association, “services are the

activities, benefits or satisfactions which are offered for sale or are provided in
connection with the sale of goods.”

A service is an act or performance offered by one party to another. It is largely

intangible (i.e. not material). A service tends to be an experience that is consumed
at the point where it is purchased, and cannot be owned since is quickly perishes. A
person could go to a café one day and have excellent service, and then return the
next day and have a poor experience. Services include all economic activities

13
whose output is not a physical product or construction, is generally consumed at
the time it is produced and provides added value in forms such as convenience,
timeliness, comfort or health.

The service industry includes hospitals, banks, schools, police, fire department,
museums, mosques, foundations, NGO’s, internet service, consultancy firms etc.

2.2 CHARACTERISTICS OF SERVICES

Many organizations have service elements to the product they sell, for example
McDonald’s sell physical products i.e. burgers but consumers are also concerned
about the quality and speed of service are staff cheerful and welcoming and do
they serve with a smile on their face. The term services are defined in a number of
ways but not a single one is universally accepted. The distinct characteristics of
services are mentioned below.

Inseparability: Services are generally created or supplied simultaneously.

Services are inseparable from the point where it is consumed, and from the
provider of the service. For example, you cannot take a live theatre performance
home to consume it (a DVD of the same performance would be a product, not a
service).

Intangible: Services are intangible and cannot have a real, physical presence as
does a product. For example, motor insurance may have a certificate, but the
financial service itself cannot be touched i.e. it is intangible.

Perishable: Services are perishable in that, once it has occurred it cannot be

repeated in exactly the same way. For example, once a 100 meters Olympic final

14
has been run, there will be no other for 4 more years, and even then it will be
staged in a different place with many different finalists.

Variability: Since the human involvement of service provision means that no two
services will be completely identical. For example, returning to the same garage
time and time again for a service on your car might see different levels of customer
satisfaction, or speediness of work.

Right of ownership: Right of ownership is not taken to the service, since you
merely experience it. For example, an engineer may service your air-conditioning,
but you do not own the service, the engineer or his equipment. You cannot sell it
on once it has been consumed, and do not take ownership of it.

Simultaneity: Services cannot move through channels of distribution and cannot

be delivered to the potential customers and user. Thus, either users are brought to
the services or providers go to the user. It is right to say that services have limited
geographical area. For e.g. aero plane cannot be brought to customer, etc.

Quality Measurement: A service sector requires another tool for measurement.

We can measure it in terms of service level. It is very difficult to rate or quantify
total purchase. E.g. we can quantify the food served in a hotel but the way waiter
serves the customer or the behavior of the staff cannot be ignored while rating the
total process.

Nature of demand: Generally, the services are fluctuating in nature. During the
peak tourist seasons there is an abnormal increase in the demand of services. E.g.
tourists go to hill stations during summer season wherein public transport utilities
are used substantially. This indicates that flexibility is the important feature of
service.

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2.3 CONCEPT OF SERVICE MARKETING

The perception of service marketing focuses on selling the services in the best
interest of customers. The problems like market segmentation, marketing
information system, behavioral management are studied minutely which simplify
the task of formulating a sound mix for marketing, such as Product mix, Promotion
mix, Price mix and the Place mix. It is important to mention that “People” is an
important mix in marketing services. If services are marketed in a right direction,
the available opportunities can be capitalized on optimally and also it contributes
substantially to the process of development. It is a managerial process of managing
the services. It is an organized effort for providing a sound foundation for the
development of an organization. It is a social process helping an organization to
understand the emerging social problem and to take part in the social
transformation process to justify its existence in the society.

2.4 SERVICE MANAGEMENT

Service management is:

1. To understand the utility the customers receive by consuming or using the

service offering of the organization.
2. To understand how the organization (personnel, technology, physical
resources, systems and customers) will be able to produce and deliver this
utility.
3. To understand how the organization should be developed and managed so
that the intended quality can be achieved.
4. To make the organization function so that this quality can be delivered on a
continuous basis.

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2.5 SERVICE LEVELS

Service Level" refers to the level of explicit and implicit benefits provided to the
consumer from the substantive and peripheral services. The peripheral aspects - the
atmosphere, the attitude of the employees, their demeanor - are all a part of the
service level. Following is a formula that is very important in relation to satisfying
customer expectations.

Satisfaction = Perception – Expectation

This relates with what the consumer perceived about the service experience to
what their expectation of it had been. If a customer perceives that the service
received was better than what was expected, the customer will be highly satisfied.

2.6 SERVICE QUALITY

Service quality is a comparison of expectations with performance. A business with

high service quality will meet customer needs whilst remaining economically
competitive. Improved service quality may increase economic competitiveness.
This aim may be achieved by understanding and improving operational processes;
identifying problems quickly and systematically; establishing valid and reliable
service performance measures and measuring customer satisfaction and other
performance outcomes.

From the viewpoint of business administration, service quality is an achievement

in customer service. It reflects at each service encounter. Customers form service
expectations from past experiences, word of mouth and advertisement. In general,
Customers compare perceived service with expected service in which if the former
falls short of the latter the customers are disappointed.

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For example, in the case of TAJ Hotels, Resorts and Palaces, wherein TAJ
remaining the old world, luxury brand in the five-star category, the umbrella
branding was diluting the image of the TAJ brand because although the different
hotels such as Vivanta by Taj- the four star category, Gateway in the three star
category and Ginger the two star economy brand, were positioned and categorised
differently, customers still expected the high quality of Taj from all their
properties.

The measurement of subjective aspects of customer service depends on the

conformity of the expected benefit with the perceived result. This in turns depends
upon the customer's expectation in terms of service, they might receive and the
service provider's ability and talent to present this expected service. Successful
Companies add benefits to their offering that not only satisfy the customers but
also surprise and delight them. Delighting customers is a matter of exceeding their
expectations. Service quality can be related to service potential (for example,
worker's qualifications); service process (for example, the quickness of service)
and service result (customer satisfaction).

Dimensions of Service Quality

A customer's expectation of a particular service is determined by factors such as

recommendations, personal needs and past experiences. The expected service and
the perceived service sometimes may not be equal, thus leaving a gap. The service
quality model or the ‘GAP model’ developed by a group of authors- Kevin,
Kristine and Berry at Texas and North Carolina in 1985, highlights the main
requirements for delivering high service quality. It identifies five ‘gaps’ that cause
unsuccessful delivery. Customers generally have a tendency to compare the service
they 'experience' with the service they 'expect'. If the experience does not match

18
the expectation, there arises a gap. Ten determinants that may influence the
appearance of a gap were described by Parasuraman, Zeithaml and Berry.

SERVQUAL model includes: reliability, responsiveness, competence, access,

courtesy, communication, credibility, security, understanding the customer and
tangibles.

Later, the determinants were reduced to five: tangibles; reliability; responsiveness;

service assurance and empathy in the so-called RATER model.

Measuring subjective elements of Service Quality: Subjective processes can be

assessed in characteristics (assessed be the SERVQUAL method); in incidents and
in problems. The most important and most used method with which to measure
subjective elements of service quality is the Servqual method.

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Measuring objective elements of service quality: Objective processes may be
subdivided into primary processes and secondary processes. During primary
processes, silent customers create test episodes of service or the service episodes of
normal customers are observed. In secondary processes, quantifiable factors such
as numbers of customer complaints or numbers of returned goods are analysed in
order to make inferences about service quality.

Approaches to the improvement of service quality

In general, an improvement in service design and delivery helps achieve higher

levels of service quality. For example, in service design, changes can be brought
about in the design of service products and facilities. On the other hand, in service
delivery, changes can be brought about in the service delivery processes, the
environment in which the service delivery takes place and improvements in the
interaction processes between customers and service providers.

Approaches to improve the conformity of service quality

In order to ensure and increase the 'conformance quality' of services, that is,
service delivery happening as designed, various methods are available. Some of
these include Guaranteeing; Mystery shopping; recovering; Setting standards and
measuring; Statistical process control and Customer involvement.

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2.7 CONTRIBUTION OF SERVICE INDUSTRY TO INDIAN ECONOMY

Service Sector in India today accounts for more than half of India's GDP.
According to data for the financial year 2006-2007, the share of services, industry,
and agriculture in India's GDP is 55.1 per cent, 26.4 per cent, and 18.5 per cent
respectively. The fact that the service sector now accounts for more than half the
GDP marks a watershed in the evolution of the Indian economy and takes it closer
to the fundamentals of a developed economy. There was marked acceleration in
services sector especially in the nineties. While the share of services in India's
GDP increased by 21 per cent points in the 50 years between 1950 and 2000,
nearly 40 per cent of that increase was concentrated in the nineties.

India's services sector has the largest share in the GDP, accounting for 57% in
2012, up from 15% in 1950. It is the 12th largest in the world by nominal GDP,
and fourth largest when purchasing power is taken into account. The services
sector provides employment to 27% of the work force. Information technology and
business process outsourcing are among the fastest-growing sectors, having a

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cumulative growth rate of revenue 33.6% between 1997 and 1998 and 2002–03
and contributing to 25% of the country's total exports in 2007–08.The growth in
the IT sector is attributed to increased specialization, and an availability of a large
pool of low cost, highly skilled, educated and fluent English-speaking workers, on
the supply side, matched on the demand side by increased demand from foreign
consumers interested in India's service exports, or those looking to outsource their
operations. The share of the Indian IT industry in the country's GDP increased
from 4.8% in 2005–06 to 7% in 2008. In 2009, seven Indian firms were listed
among the top 15 technology outsourcing companies in the world.

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CHAPTER 3 INTRODUCTION TO HOTEL INDUSTRIES AND
HOTEL MARKETING

Hotels today are a “Home away from home”.

A hotel is an establishment that provides paid lodging 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, and Internet connectivity; snack foods and drinks may
be supplied in a mini-bar, and facilities for making hot drinks. Larger hotels may
provide a number of additional guest facilities such as a restaurant, a swimming
pool or childcare, and have conference and social function services. From the
ancient time the place providing both safe food and safe accommodation to the
customers is the meaning of Hotel or Hotel Industry. Hotel Industry directly or
indirectly provides Business to travel, tour and transportation industry.

Hospitality is about serving the guests to provide them with "feel-good-effect".

"Athithi devo bhavha" (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 the best services. Many international hotels including
Sheraton, Hyatt, Radisson, Meridien, Four Seasons Regent, and Marriott
International are already established in the Indian markets and are still expanding.

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3.1 CLASSIFICATION OF HOTELS

Classification is based on many criteria and classifying hotels into different types
is not an easy task. 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. Some of the international chains are
Hyatt; Marriott etc. These properties have also come up in India now.

1. CLASSIFICATION ON THE BASIS OF 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.

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

Suburban hotels: They are located in suburban areas, It is ideal for budget
travelers. In this type of hotel rates are moderately low.

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

Resort hotels: 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.

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Floating hotels: 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 hotels is referred as boatels. The shikaras of Kashmir and
kettuvallam of Kerala are houseboats in India which offers luxurious
accommodation to travelers.

Rotels: These novel variants are hotel on wheel. "Palace on wheels" and "Deccan
Odessey" are trains providing a luxurious hotel atmosphere. Their interior is done
like hotel room. They are normally used by small group of travelers.

2. CLASSIFICATION ON THE BASIS OF SIZE OF PROPERTY

Small hotel: Hotel with 100 rooms and less may be termed as small hotels.

Medium sized hotel: Hotel which has 100-300 rooms is known as medium sized
hotel.

Large hotels: Hotel which has more than 300 rooms is termed as large hotels.

Mega hotels: Mega hotels are those hotels with more than 1000 rooms.

25
Chain hotels: These are the groups that have hotels in many numbers of locations
in India and international venues.

3. CLASSIFICATION ON THE BASIS OF LENGTH OF SERVICES

World-class services: They target top business executives and provide services
that cater to needs of such people like lap tops in the rooms, business center,
sectarian services.

Mid range services: They appeal to the larger segment of traveling public
[tourist]. The services provided by the hotel are moderate and sufficient to
budgeted travelers.

Economy / Limited services hotels: These hotels may be large or small in size
depending on the kind of business they get. The key factor behind the survival of
these hotels is that they are priced very low and are in the budget of most of the
travelers.

4. CLASSIFICATION ON THE BASIS OF LENGTH OF STAY

Transient Hotel: These are the hotel where 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 hotel where guest can stay for a minimum period
of one month and up to a year. The rent can be paid on monthly or quarterly basis.
They provide sitting room, bed room and kitchenette.

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

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5. CLASSIFICATION ON THE BASIS OF TARGET MARKET

Commercial hotel: 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.

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.

Suite hotels: These hotel offer rooms that may include compact kitchenette. They
cater to people like lawyers, executives who are away from home for a long
business stay.

Casino hotels: Hotel with predominantly gambling facilities comes under this
category, they have guest room and food and operation too. These hotels tend to
cater leisure and vacation travelers. Gambling activities at some casino hotels
operate 24 hours a day and 365 days a year.

6. CLASSIFICATION ON THE BASIS OF NUMBER OF HOLDINGS

Chain of hotels: These are groups of hotel owning a chain of hotels throughout the
country. These hotels had an established presence in one or more metro cities prior
to the tourism boom in the eighties-The Taj group, The Oberoi group of hotels,
welcome group, and The Ashoka chain of hotels

Stand alone hotels: Stand-alone hotels have come up after the tourism boom of
the eighties and nineties. Due to the lack of prior experience in the hotel industry,
these players have preferred to opt for operating/ management arrangements with
international players. Some of the companies in this category are Hotel
Leelaventure (with Kempinski), Asian Hotels (Hyatt International Corporation)
27
Localized hotel companies: They comprise of mainly early entrants like the
Surya, Ritz who have not preferred to expand during the tourism boom and have
instead focused on building and catering to a loyal customer base. The private
players among the hotel chains are industry leaders.

3.2 STAR CATEGORY OF HOTELS IN INDIA

One-star hotels: Hotels in this classification are likely to be small and

independently owned, with a family atmosphere. Services may be provided by the
owner and family on an informal basis. There may be a limited range of facilities
and meals may be fairly simple.

Two-star hotels: In this classification hotels will typically be small to medium

sized and offer more extensive facilities than at the one-star level. Reception and
other staff will aim for a more professional presentation that at the one-star level,
and offer a wider range of straightforward services, including food and drink.

Three-star hotels: At this level, hotels are usually of a size to support higher
staffing levels, and a significantly greater quality and range of facilities than at the
lower star classifications. Reception and the other public rooms will be more
spacious and the restaurant will normally also cater to non-residents. All bedrooms
will have an en suite bath and shower rooms and offer a good standard of comfort
and equipment, such as a hair dryer, direct dial telephone and toiletries in the
bathroom.

Four star hotels: Expectations at this level include a degree of luxury as well as
quality in the furnishings, decor and equipment, in every area of the hotel.
Bedrooms will also usually offer more space than at the lower star levels, and well
designed, coordinated furnishings and decor. There will be a high enough ratio of

28
staff to guests to provide services like porter age, 24-hour room service, laundry
and dry-cleaning.

Five star hotels: The building of the property must be an attractive one. All the
rooms must be spacious. The property must have proper banqueting facility,
business center. Proper and well-maintained pool and health club a spa is optional.
The property must have 24 hour coffee shop, round the clock room service, a bar,
and a minimum of 1 gourmet restaurant. The staff must be highly trained and a
degree of specialization must be shown. State of art Equipments must be used and
the facility provided in the rooms must be sophisticated.

Five star deluxe categories: They are more or less like five star properties with
the only difference is that they are on a larger scale. Five star deluxe properties
maintain a very high staff to guest ratio and very high levels of service is
maintained. They in addition to five star properties have 5 to 7 dining rooms, a bar,
24-hour coffee shop, banqueting facility. Spas, fitness centers, business centers etc

29
3.3 MARKETING V/S SELLING THE HOTEL SERVICES:

Effective marketing and dynamic selling become significant in the context of hotel
marketing. A hotel bedroom or a restaurant seat has no shelf life; generally, the
hoteliers explain their marketing by showing their computer booking service or the
advertising campaigns for the coming season.

The concept of Hotel marketing can be summarized as "Ascertaining consumer

needs, tailoring the product as closely as possible to meet those needs, persuading
the customers to satisfy his needs and finally ensuring that the product is easily
accessible when the customer wishes to purchase it."

M ARKETING
SERVICES

SELLING
SERVICES

The definition of hotel marketing consists of almost all aspects, right from
ascertaining customer needs to getting the customers satisfaction. The ultimate in
marketing is to establish brand loyalty so that eventually the consumer does not
purchase the goods/services once, but continuously. This is achieved only by the
product following the complete process of marketing.

The marketing practices in the hotel or other organizations focus on transforming

the occasional customers into the habitual customers. This process is also known as
transforming the light customers into the heavy customers.

30
The major difference is marketing hotel services as against other consumer
products, is that after a customer has spent money in hotels; he has nothing
substantial to show except bills for his money as benefits as compared with buying
tangibles, such as television and refrigerator. But if the rooms of a hotel remain
vacant, it is unlikely that the same can be sold next day. While selling the hotel
services, we cover the limited areas but while marketing the hotel services, we find
unlimited areas. In marketing the hotel services, almost all the dimensions are
included directly or indirectly helping in promoting the business and this
necessitates formulation of a sound marketing mix, such as an aggregation of
different sub mixes like product, promotion, pricing, place and people.

External marketing: An external marketing function means anything that is

communicated to the customer before the service is delivered. In case of the
Hotels, external marketing means the promotional activities and advertisements
done by the hotel in newspapers, travel magazines, television etc. since there is
direct customer contact in a Hotel, and their advertisements are centered on their
employees whereby they try to reflect customer care, attitude and other aspects of
the employees and their hospitality.

Internal marketing: In the hotel industry, the employees, who are the internal
customers of the company, have different positions ranging from the doormen, the
bellboy and the receptionist to the chef, the waiter, etc. The basic principle of
internal marketing is ‘every individual in a service organization should recognize
that they have customers to serve’. In order to ensure that the final consumer
receives quality service, every individual employee and every department within
the organization must receive and provide a quality service. In fact each functional
department should be treated as the customer of another functional department.

31
Further, all employees must be convinced about the quality o the service being
provided.

Interactive Marketing: Interactive marketing takes place between the Customer

and the front line managers, receptionists, employees etc. all the individuals must
successfully complete all interactions that add value to the service encounter. The
employee- customer encounter plays a major role in the hotel industry, where
relationship management is a vital factor so that the customer loyalty is
maintained.

3.4 FOUR I’s OF HOTELS

INVENTORY INCONSISTENCY

INSEPARABILITY INTANGIBILITY

Inventory: In the hotel industry, if the rooms and restaurants are not utilized to the
greatest of its capacity, the service becomes perishable. If a hotel having an
accommodation facility of 100 rooms is able to lease out only 70 rooms on a
particular day, then the remaining 30 rooms or 30% capacity gets perished and can
never be reused.

Inconsistency: The services performed in the hotel industry are largely dominated
by relationship management- that is performed by individuals. Since no human is

32
perfect, it is difficult to standardize the quality of the human effort in this industry.
Services are performances, often involving the cooperation and skill of several
individuals, and are therefore unlikely to be same every time. The only solution to
this problem is to design services to be as uniform as possible. The appeal of some
service personnel particularly, the hotel industry- lies in their spontaneity and
flexibility to address individual customer needs.

Inseparability: In the manufacturing department, the production of goods takes

place at a separate location and the final consumer buys the product at another
location. The presence of the customer is not required during the manufacture of
the product. But in the case of the hotel industry, which is a service, customer
plays an important role in the production process as his presence and active
participation is vital to the service encounter.

Intangibility: Intangible services are difficult to sell, as their benefits are harder to
communicate to prospective customers. Marketers of services can reduce these
risks by stressing tangible cues that will convey reassurance and quality to the
prospective customers. In case of hotel industry, the ambience, the moods created
through various factors like lighting, music, aroma, etc create the intangible
factors. But, by and large, the hotel industry is tangible.

33
CHAPTER 4 PERFORMANCE AND PROSPECTS OF
HOSPITALITY SECTOR IN INDIA

4.1 FINANCIAL YEAR 2013

Hospitality industry has suffered a major downfall during the period from FY
2008-10. Due to the economic crisis, terror attacks and many other financial
reasons, during that period the major objectives were to mend the loss and increase
the output. FY’13 proved to be very positive for the industry. Despite the global
recession, inflation, terrorism and other factors, the overall outlook for the Indian
hospitality market is optimistic and will remain so says HVS. India remains the
second fastest growing economy in the world and the economic growth of the
country is at 7.1% of the GDP as declared by Mr. Arun Jaitley, Finance
Minister,India.

India's rapid economic growth has already set the stage for fundamental changes
in the country's population.

The major drawbacks for growth in hospitality industry are:

 Barriers to entry: High capital costs, poor infrastructure facilities and

scarcity of land especially in the metros.
 Bargaining power of suppliers: Limited due to higher competition,
especially in the metros.
 Bargaining power of customers: Higher in metro cities due to increasing
room supply.
 Competition: Intense in metro cities, slowly picking up in secondary cities.
Competition has picked up due to the entry of foreign hotel chains

34
In the long term, the demand-supply gap in India is very real and that there is need
for more hotels in most cities. The shortage is especially true within the budget and
the mid-market segment. There is an urgent need for budget and mid-market hotels
in the country as travelers look for safe and affordable accommodation. Various
domestic and international brands have made significant inroads into this space and
more are expected to follow as the potential for this segment of hotels becomes
more obvious.

The depreciation of the Indian rupee against the dollar is of great concern to almost
every industrial and service sector in the Indian economy. However, India's current
economic woes are good news for tourists. The rising value of the dollar against
the rupee has made quite an impact on the foreign travel plans of many Indian
holidaymakers, prompting them to switch to cheaper destinations to make their
depreciated currency go further. As a result, domestic destinations like Goa and
Agra have witnessed a sudden surge of interest.

In India, the sector's direct contribution to gross domestic product (GDP) is

expected to grow at 7.8 per cent per annum during the period 2013-2023.The
Indian hospitality sector has been growing at a cumulative annual growth rate of 14
per cent every year, adding significant amount of foreign exchange to the
economy. The role of the Indian government, which has provided policy and
infrastructural support, has been instrumental in the growth and development of the
industry.

35
4.2 FUTURE PROSPECTS

Market size: The total market size of the hospitality industry in India stood at US$
117.7 billion in 2011 and is anticipated to touch US$ 418.9 billion by 2022.

Foreign Tourist Arrivals (FTAs) during the period January-June 2014 stood at 3.54
million as compared to FTAs of 3.36 million during the corresponding period of
2013, registering a growth of 4.5 per cent. FTAs during June 2014 were 492,000 as
compared to 451,000 during June 2013, a growth of 11.5 per cent.

Investments: The foreign direct investment (FDI) inflows in hotel sector during
the period April 2000–March 2014 stood at US$ 7,348.09 million, as per the data
released by Department of Industrial Policy and Promotion (DIPP).

The following are some of the major investments and developments in the Indian
hospitality sector:

 Hyatt has announced the opening of Hyatt Raipur, its sixth Hyatt-branded
property in India. Lemon Tree Hotels plans to invest Rs 1,000 crore (US$
166.35 million) to ramp up room capacity from 2,800 to 8,000 across the
country by the end of 2017.
 Oberoi Realty plans to bring iconic luxury brand Ritz-Carlton to Mumbai.
The American brand hotel is being planned in Worli and is expected to come
up by 2016 at a cost of Rs 750 crore (US$ 124.75million).
 Movenpick Hotels and Resorts has signed a management agreement to
operate a new hotel in Kochi, its third property in India. The hotel will be
owned by ITMA Hotels India Pvt. Ltd, an associate company of Jomer
Properties and Investments.

The hospitality sector in India expects 52,000 new hotel rooms to be added in five
years (2013-17), according to a survey by Cushman & Wakefield. This will lead to
36
a rise of over 65 per cent in total hotel inventory in India. The National Capital
Region (NCR) is expected to contribute around one-third to the total expected
hotel rooms supply during the period.

Although prospects are promising, any change in the global geo-political situations
can and have adversely affected the performance of this sector. Also, the
heightened demand for land, especially from real estate players has led to a steep
escalation in the prices. Also, shortage of manpower is going to be a huge
challenge going forward. Hotel players with a diversified portfolio across different
segments are likely to be the key beneficiaries. This should be one of the
determining factors while investing in this sector.

The number of tourists visiting India is estimated to touch the figure of 4.4 million.
With this huge figure, India is fast becoming the hottest tourist destination in the
region. The visitors include business travelers, leisure travelers and persons of
Indian origin with foreign passports. Growth is expected to continue over the next
few years. It is being predicted that India may achieve an average growth of 12%
per annum in tourism for many years to come. Apart from international tourists,
the domestic tourist market, including business and leisure travelers, is also
flourishing. This market is estimated at around 300 million tourists per year. The
industry also expects a boom in spiritual and medical tourism in the domestic
sector at a growth rate of 10% to 15% over the next few years. Growth in tourism
will definitely lead to a boom in hotels and restaurants. Though there is a shortage
of rooms at present, it is going to be over soon enough, as top international players
are heading towards India to establish themselves here. A steady growth of about
10% in new hotel projects is expected for the next few years.

37
4.3 PEST ANALYSIS OF HOTEL INDUSTRY

Political Analysis: An unstable political situation in India has made the foreign
investor cautious leading to both a slowdown in foreign investment and business
travel. However, government is trying its best to boost tourism in India which will
further boost hotel industry. Tourist arrivals have also seen a major decline
following 9/11 and because of increasing terrorism. The US government’s appeal
to its citizens not to travel to Asian & African countries affected the tourism &
hotel industry as the occupancy crisis hit the industry. Crumbing to WTO pressure
Government of India has reduced the tariffs & duties on various items which
proved attractive for foreign traders to invest & perform business in India. With
improved relations and trade affairs with other countries encouraged trade and
travel proved to be a boon for the Indian Hotel industry. With the limitations on
granting of visas by the External Affairs Ministries and policies of the embassies in
granting visas and maintaining relations has affected the growth of hospitality
industry over the years

Economic Analysis: The economic liberalization of the early 90s led to a boom in
the hotel industry, especially in 1994. When the economic conditions are
favorable, hotels enjoy high occupancy rates. This gives them the flexibility of
increasing their room rates. During the boom phase most hotel companies operated
at very high occupancy rates, which gave them the leeway of increasing their room
rates. Foreign Direct Investment is entering Indian shores and foreign institutional
investors are increasing their exposure to India. All these positive signals spell
more business travelers and better times for the hotel industry. The hotel industry
is heavily taxed. Expenditure tax, luxury tax and sales tax inflate the hotel bill by
over 30%. As these taxes are the domain of the state government, the rates vary
accordingly. The infrastructure facilities like the Airports, Communication
38
facilities & commuting facilities not being at par with oriental countries affects the
attractions of the tourists. Generally 50% of the hotel’s revenue is dependent on the
tourism industry.

Social Environment Analysis: The hotel markets its business with the help of the
local festivals and long trusted & cherished Indian culture like Ayurveda in Kerala,
Beaches in Goa and traditional melas. Consuming beef is considered as a taboo for
Hindus. Similarly, India being the place of domicile for 24 crore Muslims is highly
influenced by the ‘Islamic’ culture and Poke is considered as a taboo for Muslims.
But, Beef is a part of the daily food for the foreign tourists. Hence, the hotelier has
to cater the needs of various people from both Occidental and Oriental culture.
Indian customers are highly price sensitive. Many of them compare service offered
with price. There is always a limitation on the part of the hotelier to design the
service within the price constraints.

Technological Environment Analysis: Technology has influenced not only the

basic product in the hotel industry, but also the supplementary services to a great
extent. Right from order taking to billing to payment has been computerized
nowadays. Technology has revolutionalised the booking system in hotels. One of
the major source of booking is Global Distribution System where the travel
operator can book for various hotels though it. Also, hotels provide online booking
systems where the hotelier tries to personalize the booking and minimize the
customer interaction.

The hotel is now equipped with all the modern facilities which adds to the service
offering. System allocation is the key to any hotels success. The frontline service
provider should be able to satisfy customer’s demands. Hotels provide LCD,
Laptop & conference facilities.

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CHAPTER 5: COMPANY PROFILE

INDIAN TOBACCO COMPANY LIMITED

5.1 INTRODUCTION

ITC Limited or ITC is an Indian conglomerate headquartered in Kolkata, West

Bengal. Its diversified business includes five segments: Fast Moving Consumer
Goods (FMCG), Hotels, Paperboards & Packaging, and Agri Business &
Information Technology.

Established in 1910 as the Imperial Tobacco Company of India Limited, the

company was renamed as the Indian Tobacco Company Limited in 1970 and
further to I.T.C. Limited in 1974. The periods in the name were removed in
September 2001 for the company to be renamed as ITC Ltd. The company
completed 100 years in 2010 and as of 2012-13, had an annual turnover of US$
8.31 billion and a market capitalization of US$ 45 billion. It employs over 25,000
people at more than 60 locations across India and is part of Forbes 2000 list.

40
5.2 HISTORY

ITC was formed on 24 August 1910 under the name of Imperial Tobacco Company
of India Limited, and the company went public on 27 October 1954.The earlier
decades of the company's activities centered mainly on tobacco products. In the
1970s, it diversified into non-tobacco businesses.

In 1975, the company acquired a hotel in Chennai, which was renamed the 'ITC-
Welcomgroup Hotel Chola' (now renamed to My Fortune, Chennai).

In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepali and British
joint venture, with the shares divided between ITC, British American Tobacco and
various independent domestic shareholders in Nepal. In 2002, Surya Tobacco
became a subsidiary of ITC and its name was changed to Surya Nepal Private
Limited.

In 2000, ITC launched the Expressions range of greeting cards, the Wills Sport
range of casual wear, and a wholly owned information technology subsidiary, ITC
InfoTech India Limited.

In 2001, ITC introduced the Kitchens of India brand of ready-to-eat gourmet

Indian recipes.

In 2002, ITC entered the confectionery and staples segments and acquired the
Bhadrachalam Paperboards Division and the safety matches company WIMCO
Limited.

ITC entered the Agarbattis (incense sticks) business in 2003, selling its products
under the Mangaldeep brand.

ITC diversified into body care products in 2005.

41
In 2010, ITC launched its handrolled cigar - Armenteros - in the Indian market.
The company began online sales in 2014.

5.3 PRODUCTS AND BRANDS

ITC Ltd sells 80 percent of the cigarettes in the India, where 275 million people
use tobacco products and the total cigarette market is worth close to $6 billion
(around Rs.35,000 crore)

ITC's major cigarette brands include W.D. & H.O. Wills, Gold Flake Kings, Gold
Flake Premium, Gold Flake Super Star, Navy Cut, Insignia, India Kings, Classic
(Verve, Menthol, Menthol Rush, Regular, Citric Twist, Mild & Ultra Mild), 555,
Silk Cut, Scissors, Capstan, Berkeley, Bristol, Lucky Strike, Players, Flake and
Duke & Royal.

5.4 OTHER BUSINESSES

Foods: ITC's major food brands include Kitchens of India; Aashirvaad, Mint-o,
Sunfeast, Candyman, Bingo! and Yippee!. ITC is India's largest seller of branded
foods with sales of over Rs. 4,600 crore in 2012-13.[33] It is present across 4
categories in the Foods business namely Staples, Snack Foods, Ready-To-Eat
Foods and Confectionery.

42
Lifestyle apparel: ITC sells its products under the Wills Lifestyle and John Players
brands. Wills Lifestyle was accorded the ‘Superbrand’ status and John Players was
included in the top 10 ‘Most Trusted Apparel Brands 2012’ by The Economic
Times.

Personal care products include perfumes, haircare and skincare categories. Major
brands are Fiama Di Wills, Vivel, Essenza Di Wills, Superia and Engage.

Stationery: Brands include Classmate, PaperKraft and Colour Crew. Launched in

2003, Classmate went on to become India's largest notebook brand in 2007.

Safety Matches and Agarbattis: Ship, i Kno and Aim brands of safety matches and
the Mangaldeep brand of agarbattis (Incense Sticks).

Hotels: ITC's Hotels division (under brands including WelcomHotel) is India's

second largest hotel chain with over 90 hotels throughout India. ITC is also the
exclusive franchise in India of two brands owned by Sheraton International Inc.
Brands in the hospitality sector owned and operated by its subsidiaries include
Fortune Park Hotels and WelcomHeritage Hotels.

Paperboard: Products such as specialty paper, graphic and other paper are sold
under the ITC brand by the ITC Paperboards and Specialty Papers Division.

Packaging and Printing: ITC's Packaging and Printing division operates

manufacturing facilities at Haridwar and Chennai and services domestic and export
markets.

Information Technology: ITC operates through its fully owned subsidiary ITC
Infotech India Limited, which is a SEI CMM Level 5 company.

43
5.5 EMPLOYEES

As per the Annual report of the company, it had 25,960 employees as on 31 March
2013, out of which 3,043 were women. It spent Rs. 2,145 crores on Employee
benefits during the FY 2012-13. During the same year, its attrition rate was 12%.

Its Chairman Y C Deveshwar has won renowned awards and recognitions

including Padma Bhushan from Govt. of India and 7th best performing CEO in the
world by Harvard Business Review.

Meera Shankar, Indian ambassador to USA between 2009 and 2011, joined the
board of ITC Limited as the first woman director in its history. She is an additional
non-executive director of the company.

5.6 E-CHOUPAL

ITC's e-Choupal initiative is designed to make the power of the Internet available
to Indian farmers.[54] The company places computers with Internet access in rural
farming villages, serving both as a social gathering place for exchange of
information (choupal means gathering place in Hindi) and an e-commerce hub. As
of July 2010, services through 6,500 e-Choupal across 10 states reach more than 4
million farmers in about 40,000 villages. The potential of e-Choupal is also being
tested through pilot projects in healthcare, educational services, water management
and cattle health management. In 2008, this initiative was recognized in the list of
"Innovations to make markets more inclusive for the poor" in World Development
Report Sep-2008 by the World Bank.

5.7 AWARDS AND RECOGNITION

In 1994 and 1995, the ILTD Division in Chirala and Anaparti won the "Best of all"
Rajiv Gandhi National Quality Award

44
ITC features on the Forbes Global 2000 rankings for 2012 at position 841. In the
same rankings, the company's market value placed it as the 184th largest company
in the world. Forbes has also included the company in Asia's Fab 50 Companies
list.

In 2013, ITC was ranked the third most admired company in India by Fortune.

In 2011, all of ITC’s super premium luxury hotels were accorded LEED Platinum
certification, making ITC Hotels the ‘Greenest Luxury Hotel Chain in the World’.

In 2010, ITC was ranked 6th amongst global consumer goods companies in
sustainable value creation during 2005-09, by Boston Consulting Group.

It received the National Award for Excellence in Corporate Governance from the
Institute of Company Secretaries of India in 2007.

In 2006, ITC's e-Choupal program won the Stockholm Challenge Award 2006 in
the Economic Development category. This program enables over 3.5 million
farmers to access crop-specific and customised information in their native village
habitat and language.

5.8 ITC HOTELS

ITC Hotels is India's second largest hotel chain with over 100 hotels. Based in the
Hotels Division Headquarters at the ITC Green Centre in Gurgaon, New Delhi,
ITC Hotels is also the exclusive franchisee of The Luxury Collection brand of
Starwood Hotels and Resorts in India. It is part of the ITC Limited (formerly India
Tobacco Company) group of companies. ITC Hotels is regularly voted amongst
the best employers in Asia in the hospitality sector.

ITC Forayed into the Hotels business to support the national priority of developing
new avenues of foreign exchange earnings and boosting tourism. Beginning with

45
the Sheraton Chola, Chennai in 1975, ITC’s journey in this business has redefined
the face of Indian hospitality.

Today, ITC Hotels is one of largest hotel chains in the Country with over 90 hotels
in more than 70 destinations. Symbolized by its distinctive ‘Namaste’ logo, ITC
Hotels integrated India’s fine tradition of hospitality with globally benchmarked
services.

With a string of firsts to its credit, ITC Hotels pioneered the concepts of branded
accommodation, branded cuisine, environment and guest safety. ITC Hotels is an
exemplar in sustainable hospitality with all its premium hotels being LEED
Platinum certified.

As one of India’s premier corporations, ITC Hotels’ seeks to fulfill a larger role by
enlarging its contribution to the society of which it is a part. The trusteeship role
related to social and environmental resources, aligned to the pursuit of economic
objectives, is the cornerstone of its Environment, Health & Safety philosophy for
which it has won many awards and accolades.

At any ITC Hotel you will find a true reflection of culture and ethos of each
destination and One Common Legacy – Warmth.

HISTORY

46
ITC Limited entered the hotel business on 18 October 1975 with the opening of a
hotel in Chennai, which was renamed Hotel Chola. In 2006, ITC hotels owned and
operated 100 hotels in 75 locations. ITC Hotels have a reputation of playing host to
visiting royalty and world leaders time and again.

ITC Restaurants Bukhara, Peshawari, Dakshin, DumPukht and Kebabs & Kurries
are well known cuisine brands today. They market a line of food products,
Kitchens of India. ITC Hotels has one of the most extensive art collections in
India. A museum of their collection is being planned in Kolkata.

ITC Hotels has strategically customized its hotels and appropriately categorized
them to fulfill the service and budgetary needs of travelers. ITC Hotels has a long
standing tie-up with Starwood Hotels for its top of the line premium brand, the
'Luxury Collection' for ten of its hotels as also with the “Sheraton” brand for 2 of
its hotels. ITC Hotels has an exclusive tie-up with Starwood Hotels & Resorts in
bringing its premium brand, the 'Luxury Collection', to India.

ITC HOTELS- THE LUXURY COLLECTION

ITC Hotels - The Luxury Collection are super deluxe and premium hotels located
at strategic business and leisure locations.

Ten exceptional hotels bring you the architectural grandeur of ancient dynasties
and the cultural ethos of different regions of the Indian peninsula. The ten hotels
which are part of this collection are:

 ITC Grand Chola in Chennai

 ITC Maurya in Delhi
 ITC Maratha in Mumbai

47
  ITC Sonar in Kolkata
 ITC Grand Central in Mumbai
 ITC Windsor & ITC Gardenia in Bengaluru
 ITC Kakatiya in Hyderabad
 ITC Mughal in Agra
 ITC Rajputana in Jaipur.

WELCOMHOTEL SHERATHON

Synonymous with customer centricity and efficiency, 2 exquisite ITC Hotels have
been aligned under the renowned Sheraton brand, offering warm, comforting
services to the global traveler. WelcomHotels offer five-star hospitality for the
discerning business and leisure traveler. Currently there are three hotels under this
brand namely,

 WelcomHotel Rama International Aurangabad

 WelcomHotel Vadodara
 WelcomHotel Grand Bay Vishakhapatnam.

Two other WelcomHotel Sheratons - Sheraton Park Hotel and Towers, Chennai
and Sheraton New Delhi offer warm, comforting services to the global traveler and
a chance to connect.

FORTUNE HOTELS

Located across India including smaller towns and cities, Fortune Hotels is one of
the leading first-class, full service business hotel chains in India catering to the
mid-market to upscale segment in business and leisure destinations. In keeping

48
with the demand for hotels providing quality at affordable rates, these hotels offer
multiple brand extensions to cater to various segments.

Fortune Hotels operates mid-market to upscale properties in the first-class, full-

service business hotel segment all over India, in major metros, mini metros, state
capitals and business towns, promising business and leisure travelers a wide choice
of destinations and accommodation. Fortune hotels include:

 My fortune: It offers stylish lifestyle hotels, where the 'comfort of home'

and 'efficient service' come seamlessly together, thereby creating a 'sense of
belongingness'. These hotels offer a perfect blend of traditional Indian
hospitality with new age technology, while catering to the upscale business
traveler.
 Fortune select: It includes upscale hotels offering contemporary product
and services, located at business locations in metros, mini metros and key
leisure locations. These hotels offer best in class services in 4+ to 5star
category
 Fortune Park: This includes business hotels located in metro/non F metro
cities. These are mid-scale hotels between 3 to 4 star categories.

WELCOMHERITAGE HOTELS

WelcomHeritage brings together a chain of palaces, forts, havelis and resorts that
offer a unique experience. WelcomHeritage, a joint venture between ITC Ltd. and
Jodhana Heritage, represents some of the best traditions of heritage hospitality and
tourism in India. It offers over 40 exclusive heritage destinations, ranging from
grand palaces to traditional havelis and magnificent forts; quiet nature resorts in

49
Rajasthan, Madhya Pradesh, Uttarakhand, Himachal Pradesh Jammu & Kashmir,
West Bengal, Karnataka, Tamil Nadu, Punjab, Sikkim, Uttar Pradesh and Goa.

CHAPTER 6 FORTUNE LAKE CITY, THANE

Fortune lake city is one of the best hotels in thane city. Thane is situated on the
western banks of Thane creek that drains into Arabian Sea. It has been a hub of
economic activity since medieval times due to its location. Thane (or Thana)
literally means "station" in Marathi, the local language. It was the terminus of the
first railway in India built from Mumbai in 1853. The town experienced industrial
growth in 60's and 70's and witnessed corresponding growth in trade, transport and
construction.

It is also popularly known as "city of lakes" as it is surrounded by 30 lakes and

along with has been recognized for the best town planning and beautification.
Thane, City of Lakes, bustling and self-sufficient, now houses Fortune Park
LakeCity and hence the name. Strategically located on the Eastern Express
Highway, it is well connected to business and industrial nerve centres like
Waghle/Kolshet, Bhiwandi, Airoli, Kalwa, Vikhroli, MIDC & SEEPZ, Navi
Mumbai and Mumbai itself. Tastefully and thoughtfully appointed, Fortune Park
LakeCity is the perfect amalgam of comfort, convenience and great value. Thane

50
inhabits more than 1.2 million people hence it is an opportunity for ITC group to
place its market in this city.

As we know, Fortune Park Hotels Ltd. is a subsidiary of ITC Ltd. Set up in 1995 to
cater to the mid-priced market segment in business and leisure destinations; it is
today a professional Hotel Management company, with forty operating hotels and
many more in various stages of completion.

Fortune Hotels operate across a wide spectrum and offer various categories such as
My Fortune, Select, Park, Inns, Resorts across the length and breadth of the
country. The Select, Park and Inn categories are business hotels in metros and non-
metros. The 'My Fortune' brand, representing a 'stylish lifestyle with efficient
personalised service', is the latest addition to the bouquet of brands.

The Fortune chain has won a number of a awards which include - The Galileo
Express Travel and Tourism Award for the "Best First Class Hotel Chain in 2004",
the Hospitality India Award for the "Best Mid Market Hotel Chain of the year
2005" and the "Best First Class Hotel Chain 2011 and also in 2006, and Satte
Award for 'Leading Mid-Market chain' 2012.

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It is mainly built within the busy roads of thane making it look a live business hub.
Its next to Jupiter hospital, Eastern express highway When it comes to business
and leisure hotels fortune is one of the best options that come into the mind of
consumers. The nearest airport is Chattrapati Shivaji International Airport
Mumbai. One can take a taxi or hire a car to get there at the hotel. Also one of the
simplest and economical way is to go by train.

6.1 ACCOMODATION

The architecture renders each room naturally bright and airy. It offers a choice of
46 well-appointed rooms which include Standard Rooms, Fortune Club Rooms and
Suites. The rooms are well defined and equipped with all modern amenities. Their
main aim is to take care of all the needs of the customer while offering them their
much needed privacy. There are Club Floors dedicated to help the customers
unwind or stimulate the mind with a mini library, chess table, refreshing tea
lounge, and even a card table! There are special rooms for differently-abled
persons as well. It provides a combination of superior and deluxe rooms. Each
room at the hotel has been designed to provide its guests with the pleasure of a
wonderful stay at the Fortune. Each room and suite in the hotel has been loaded
with amenities to provide guests with luxurious stay. Some of the guest facilities at
the Fortune hotel Mumbai include express check in and express check out,
complimentary parking, and the pet policy i.e. service animals for the people with
disabilities only are allowed in the hotel. An informal atmosphere, good food and
service and a great location attract guests to this hotel. The exquisite furnishings of
the bedrooms and suites, the stunning views from the balconies and terraces, the
wonderful sensory experiences to be enjoyed in the spa, the impeccable service are
guaranteed to satisfy even the most demanding of guests.

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A series of guest room amenities are offered by the Hotel including work desk with
lamp, 2-line phone, Speaker phone, Voice mail, Data ports on phone, TV with
remote control, Cable/ satellite TV, All-news channels, Newspaper delivery on
weekdays (Mon-Fri), Mini bar, Complimentary in-room coffee, Air conditioned
guest rooms, Iron and ironing board, Hairdryer, Bathrobe, In-room safe and Cribs.
Each room offers hairdryer, bathrobe and slippers, key card access and 24-hour
room service and individually controllable central air conditioning/heating.

6.2 CUISINES AND RESTAURANTS

Rainbow - It's exclusively vegetarian restaurant that offers a memorable

indulgence of delectable vegetarian cuisine from around the world.

Fortune Deli – It is a perfect place to relax and unwind. Amidst some great coffee
and scrumptious snacks & delicacies. Customers can stay connected with work in
this 24hrs Wi-FI Hot Spot or simply indulge in gourmet delights. Certainly, an
ideal venue to work, dine & play.

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6.3 SERVICES AND FACILITIES

Fortune hotel offers world-class facilities for luxury and comfort for the modern
traveller. With more than 40 rooms the hotels offers wide options to pick and
choose from. All the rooms are air-conditioned and well appointed. The Room
Facilities at fortune Hotel in Mumbai are of exceptional standards. The hotel has
luxuriously appointed rooms with amenities that ensure a comfortable and
pleasurable stay. The bedding packages include custom duvets and cotton rich
lines for luxurious comfort. All the spacious rooms are carpeted. The large
windows allow breath-taking view from the comfort of one’s rooms. The rooms
provide high speed internet, 2-line phone and data ports. Fresh fruits with
complimentary coffee and tea are offered daily to guests. Some other facilities
include remote controlled air conditioning, television with cable connection, and
channel music in every room, free newspapers, and laundry services In room
facilities include In-room dining 24X7, Tea/Coffee maker, Mini bar, Electronic
safe, Hair dryer, Satellite LCD TV, Complimentary Wi-Fi, Daily newspaper and a
choice of fruits and Direct dial STD/ISD

6.4 FEATURES

Other features are, Airport Transfers, Travel desk, Wi-Fi in the hotel, 24-hrs
currency exchange, and In-house laundry, Doctor on Call, No Smoking and
Alcohol in hotel premises. The services offered by Fortune hotel are consumer
friendly, just a dial away.

6.5 MEETINGS AND CONFERENCES

Fortune Park Lake City is just the place to talk business in style. It offers a range of
state-of-the-art Banquet and Conference Halls to accommodate up to 300 guests.

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The latest technology ensures that each facility is connected 24x7 with the outside
world to ensure a truly global conferencing experience. It is ideal for seminars,
conferences as well as social gatherings. Fortune hotel accurately caters the needs
of business consumers by offering them a proper conference hall and function
rooms. It tends to have larger business facilities.

There are six types of conference hall.

1. Gyan: Gyan is just like a normal conference hall fully furnished with the
basic necessities. It is approximately 30 sq. m in area and has a U-shaped
seating style. It is meant for limited number of people not more than 10 at a
time.

2. Ujas: Ujas is another conference hall approximately of 60 sq. m in area. It

can accommodate 84 people in theatre style seating arrangement, 30 in U-
shaped, 40 in classroom, 70 for dinner type and 36 in round table
arrangement. It is comparatively bigger than Gyan.

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 3. Agrata: Agrata is approximately 88 sq. m in area. It can accommodate 100
people in theatre style seating arrangement, 40 in U-shaped, 60 in classroom,
120 for dinner type and 48 in round table arrangement. It is comparatively
bigger than ujas
4. Daksh: It is approximately 148 sq. m in area. It can accommodate 160
people in theatre style seating arrangement, 70 in U-shaped, 90 in classroom,
150 for dinner type and 90 in round table arrangement. It is comparatively
bigger than agrata. Agrata & Daksha have collapsible sound proof partition.
5. Board room: It is approximately 19 sq. m in area. It can accommodate 8
people in U-shaped. It is suitable for short meetings and less people.

6.6 ART AND CULTURE

In the process of developing Thane, there have been honest attempts at saving the
art and culture, for which this ancient city has always been known. A melting pot
of literature, art, culture and sports, it has been the proud producer of many a
renowned personalities in these respective fields.

Predominantly consisting of Maharashtrian culture, being a suburb of 'the city of

dreams'-Mumbai, Thane boasts of cosmopolitan culture without failing to carry
forward the cultural heritage it has been blessed with. Due to the upsurge in the
residential sector of Thane, one will find a number of immigrants from Mumbai as
well as other nearby areas. This results in the diversity of its residents- from North
Indians to South Indians, from Sindhis to Gujaratis and Marwaris. The city
celebrates festivals like Ganesh Chaturthi, Gudhi Padwa, Durga Puja, Holi, Shivaji
Jayanti and Mahashivratri.

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For the glorification of the art and culture of the city, there is a festival known as
the 'Thane Festival' that denotes the peak of the cultural tradition and aims to
spread the talent of Thane to every part of Maharashtra.

With the enthusiastic organisation of competitions that specially focusses on

promoting the young talent, Thane holds extreme value of the budding talent in the
remote corners of Thane. Competitions such as Janakavi P Savlaram Memorial
Festival, drawing competitions and one act play competitions are organised time
and again to develop and value the talent of Thane.

Festivals such as the 'Folk Art Festival' are organised to conserve and promote the
indigenous folk art of Maharashtra so that it develops its roots deep and strong for
the generations to come. The festival Narli Pournima is celebrated to acknowledge
the importance of their culture and the science behind them. Events such as Pandit
Ram Marathe Memorial Festival and Thane Festival are clearly the pride of Thane
and its residents. All these festivals and cultures are taken into consideration by the
hotel and services are offered accordingly with proper sale and discount offers.

6.7 ENTERTAINMENT

When it comes to entertainment, one can enjoy thoroughly even if the consumer
goes outside the hotel. Thane is a beautiful blend of rusticity and cosmopolitan
culture. This shows clear evidence in the entertainment scene of the place. With a
number of old screen theatres and multiplexes, the place offers a lively and vibrant
environment.

To showcase the budding talents as well as the veteran artists in the various fields
of arts, Thane boasts of two auditoriums-The Gadkari Rangayatan at Talao Pali
and the recently constructed Dr. Kashinath Ghanekar Auditorium next to

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Hiranandani Meadows, which also has a mini auditorium, both of which are owned
and managed by Thane Municipal Corporation.

For the leisurely shoppers, Thane also offers a number of malls. They are:

 Big Mall.
 Eternity Mall.
 Hypercity Mall.
 Korum Mall.
 Lake City Mall.
 R Mall.
 Viviana Mall.

The Botanical Garden of Thane that is located at Kopri, near Bara Bunglow, was
inaugurated in 2011, is a joint initiative of TMC and Forest Department. The place
is green and colorful, like a perfect countryside setting with gardens and open
spaces for recreational purposes.

The Blue Roof Club at Ovala, The Golden Swan Club at Yeoor and United 21 are
the clubs that offer a recreational hub to the elite. Providing amenities such as
gymnasium, swimming, sports and restaurant facilities, they reflect the
cosmopolitan culture of the place.

6.8 SHOPPING IN AND AROUND

31 KM from Thane, there are 16 shopping attractions in Karjat where you would
find a number of street shops selling handmade chappals in various fashions. There
are about 5 shopping attractions 35 KM away in Palghar.

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Another famous shopping attraction is the Breach Candy and Kemps Corner that
are located near the Hanging Gardens. Here you would find trendy clothes in
cotton, sequence and even silk apart from the traditional blouses and skirts.

Colaba and the Flora Fountain Areas are situated at the lively southern end of
Mumbai. This is also known as Hutatama Chowk. Here, you can find cotton
clothes, kaftans, shoes, books and almost anything else that you can possibly think
of. Other places that offer a unique shopping experience are Dadar and Bandra
where you'd find cotton saris, ethnic artefacts apart from high end international
stores and the works.

Mulund, situated about 10 KM from Thane is home to the biggest and the most
extravagant shopping malls in the country. These are home to shops that sell
everything from cars to door mats to lamps. Three major shopping malls in
Mulund are Nirmal Lifestyles located near Bhandup is a huge space filled with
brands such as Fab India, Shopper's Stop, McDonalds, Baskin Robbins, Pizza Hut
etc.

Another mall known as the 'R-Mall' is located near the Check Naka is a hot spot
for families who are enticed by the brands such as Big Bazaar-with sections
ranging from electronics to food items. Shopping in Thane is a great idea and
offers a number of options and bargains to the avid shopper.

6.9 SPECIAL OFFERS

Fortune park lake city offers a variety of schemes and discounts according to the
occasion. It has a number of special offers for its loyal customers and those
experiencing the service for the first time. The latest offers are:

The business deal 2 nights which includes 1 way airport transfer and unlimited
complimentary Wi-Fi usage.
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Weekend exclusive: this offers 15 % discount for those customers that check in on
Thursdays/ Fridays.

Unforgettable summer escape: this package involves an enjoyable surprise to 31

destinations during summer time.

Best fortune rate: this provides the best rate of the hotel with daily buffet
breakfast for the customers the offer is valid up to 2015.

Extended stay 2 nights: when a customer extends hi/ her stay for more 2 days an
additional offer of 10 % discount is given to them on best rates of fortune.

7 days’ advance purchase: additional discount up to 10% is offered when

customers do an advance booking of at least 7 days.

14 days’ advance purchase: additional discount up to 15-20% is offered when

customers do an advance booking of 14 or more days.

All these offers are currently active and have validity up to the end of 2014 and a
few up to 2015. Many branches of fortune offer the same types of discount and
schemes. It is their utmost priority to satisfy the customer and surprise them by
introducing various offers.

6.10 CLUB FORTUNE

Fortune hotel offers its guests an Aerobics studio, Card & board games, snooker
tables, Techno Gym fitness center, Massage & spa treatments, outdoor pools &
whirlpool. Fax, Laundry, Doctor on call, Money changer, Valet and travel
assistance are amongst the array of services offered by the Fortune hotels.

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6.11 TARGET GUEST

In a multi-tasking, speed-obsessed, clutter-filled world, Fortune Lake City is the

only hotel brand that silences distractions and indulges in performance, so
accomplished achievers can see and think clearly about what matters most that is,
the harmony of a client relationship, or the true pleasures of a place and advance to
new heights.

A refined positioning — Inspiring Performance — appeals to the target guest, the

"24/7 Achiever".

These guests are:

 Purposeful: they are laser-focused on accomplishing their business objectives

 Straightforward: because business travel is so hassle-filled
 Efficient: in order to offset business travel's inefficiency
 Seeking human touches: the hotel's humanity can relieve stress and loneliness
on the road
 Optimistic: about frequent travel because their success depends on it

The Fortune hotel brand reflects and supports these values in every touch point
with guests. At Fortune Lake City, these guests enjoy proactive and energetic
service designed to boost their productivity and efficiency. Fortune is the only
upscale hotel brand designed to help them perform at the top of their game while
on the road. Fortune is catered to accomplished travelers who value a distinctive,
luxurious environment, authenticity, and a higher level of personal service that
anticipates requests and exceeds expectations. Fortune Lake City provides
accomplished achievers with health-conscious menus, upscale fitness facilities, and
exceptional service with uncompromising quality.
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 6.12 SPIRIT TO SERVE

ITC, Fortune hotels is serving our communities through these signature issues:

S-SHELTER & FOOD: Addressing housing and hunger needs, including in times
of disaster

E-ENVIRONMENT: Working toward a greener, healthier planet

R-READINESS FOR HOTEL CAREERS: Educating and training the next

generation

V-VITALITY OF CHILDREN: Aiding sick and impoverished children

E-EMBRACING DIVERSITY AND PEOPLE WITH DISABILITIES:

Providing opportunities, especially through the workplace

Business cannot succeed in societies that fail. Businesses must play a more
meaningful, involved and active role in the creation of a more sustainable and
inclusive future. ITC is pursuing innovative business strategies that synergise the
creation of sustainable livelihoods and the preservation of natural capital with the
building of shareholder value.

This Triple Bottom Line strategy of building economic, social and environmental
capital involves:

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  Embedding Sustainability in Business
 Investing in Social Development
 Adopting a Low Carbon Growth Path and a Cleaner Environment Approach

It is the only company that is carbon positive seven years in a row, storing twice
the amount of CO2 then the company emits. It is also water positive and solid
waste recycling positive. It is ranked number 1 in second years in the category for
“the most active in CSR” by Neilson corporate image monitor 2012-13. ITC and
value chains have created sustainable livelihood for more than 5 million people
many of whom belong to the poorest section of the society.

ITC also has a watershed development programme which provides water to the
remote places having scarcity of water. ITC has recently planned to cover 100000
hectares of water stressed land.

ITC has started e- choupal, rural digital physical infrastructure. This empowers
even the smallest of farmers by giving them relevant information about the fair
prices in the market of their produce, weather information, techniques to improve
farm production, information on seed quality and what they should buy types of
fertilizers or manure to be used and better accessibility to the market. By far 6500
e-choupal centres have been installed.

Investments are made on wind energy facilities to provide supplementary power to

ITC’s hotels in Chennai and Mumbai. It has a 14 MW wind energy plant set up in
Chennai, 21 MW facilities in Karnataka and 2.5 MW in Rajasthan. The renewable
energy plants provide almost 40 % of all the energy needs of ITC.

ITC gives a fair chance to the differently-abled persons to earn a livelihood. It has
employed over 100 differently abled persons to jobs like housekeeping, tele-
working, bakeries and also as musicians. The company provides them with proper

63
training and equipments to deal with their day to day work. ITC have been
awarded for the NCPEDP Shell Helen Keller award to their hotels for their
outstanding work.

ITC’s overarching aspiration to create large scale societal value while

simultaneously delivering shareholder value is manifested in the Company’s
strategy to enhance the competitiveness of its value chains which encompass the
disadvantaged sections of society.

In pursuance of the Company’s policy on Corporate Social Responsibility (ITC’s

CSR Policy detailed in the Policies & Guidelines section of this Report), ITC has
crafted innovative business models that create larger and enduring value by not
only generating new sources of competitive advantage for its businesses, but also
in the process augmenting natural capital and sustainable livelihoods for the nation.
In FY 2012-13, Average Profit after Tax was Rs. 5,070 crores. Out of which 82
crore was spent on CSR activities. CSR spends as a % of Average Profit After tax
was 1.62%

ITC’s recent investment is in the project known as “Sunehra Kal”, which is for the
empowerment of women and children. It provides proper education to the children
from poor sections of the society. ITC also has a social and farm forestry
programme which addresses the livelihood problems of marginal farmers and
ecological imperative of regenerating biomass and nurturing depleted soils. It has
almost greened 95,961 hectares and generated 43 million person of employment.

Implementation

To implement the Company's CSR Programmes through Company personnel or

through external implementing agencies or through ITC Education Trust, ITC
Rural Development Trust, ITC Sangeet Research Academy, ITC Bhadrachalam

64
Education Trust, Tribeni Tissues Education Society. In such cases, the Company
will specify the CSR Programmes which may be undertaken by those Trusts in
accordance with their Objects and administrative and accounting processes laid
down in the respective Trust Deeds/ Memoranda and Articles of Association.

6.13 BUSINESS ETHICS AND HUMAN RIGHTS

Fortune adheres to high ethical and uncompromising legal standards. Fortune’s

Code of Business Ethics provides managers and employees with detailed guidance
on the right way to conduct business. This includes advising them of the laws
relating to antitrust, unfair competition, political contributions, abuse of purchasing
power, commercial and political bribery and more. Fortune lake city’s business
ethics training program, “How they do Business is as important as the Business
they do,” is a required part of orientation for employees, and includes Fortune’s
commitment to human rights. Fortune’s Internal Audit Department conducts an
annual Legal and Ethical Conduct survey of a broad cross section of employees,
including all officers and senior managers, to determine compliance with the
company’s Ethical Conduct policy.

6.14 COMMITMENT TO HUMAN RIGHTS

Fortune supports and respects the protection of human rights within the company’s
sphere of influence. This includes standing against such tragedies as human
trafficking and the exploitation of children. In 2006, the company published a
Human Rights Policy Statement and communicated it to employees. The policy
aligns with government, business and public concern about tackling these issues.
Fortune actively engages with industry and non-profit groups to encourage
dialogue and share best practices.

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CHAPTER 7: SERVICE QUALITY, FAILURES AND
RECOVERY METHODS AT FORTUNE LAKE CITY

7.1 SERVICE QUALITY

Fortune lake city delivers "the art of high performance" in a style that is restrained
and tasteful, absent of formality or ceremony, and an authentic reflection of the
locale. Fortune Lake City brings Fortune's industry-leading distribution network,
technology capabilities and reputation to the luxury tier. It is one of the world’s
premier hotel brands. Its success is built on years of dedication to innovation, a
relentless focus on service, and a strong history of performance and satisfaction
among both guests and owners. The brand has evolved its classic contemporary
design and fresh approaches to guest service while maintaining its tradition of
hospitality for both business and leisure travellers.

Fortune Lake City has a simple philosophy about the treatment of employees. ”take
care of your employees and they will take care of your customers”. Setting
standards and communicating them to service employees is not enough to
guarantee quality service in an environment devoid of other positive motivators
and stimuli. The service encounter and the customer’s evaluation of the quality of

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service encounter are critical for a service business success. However, people are
not the only component of a quality service experience. The processes that have
been developed in delivering a quality service experience are critical. Fortune Lake
City, Mumbai conducts the IAQ i.e. indoor air quality process once a year. It takes
around 15-20 days for cleaning all the ducts and is usually done at night. Once it is
done, it ensures the maintenance of IAQ for one year, which can be prolonged to
two years depending upon the location.

Differentiation, today, has become a key for success in any business. One such
differentiating feature that hotel Fortune Lake City has adopted is the 'one touch'
service that enables them to serve guests at the speed of light. Various techniques
are being employed at Fortune Lake City that is instrumental in keeping track and
monitoring the services rendered in a more objective manner.

'At Your Service'(AYS) - This particular system was introduced so as to facilitate

the guests in having a one-point contact for all services required by them instead of
the guests calling up different numbers for different services. This system reduces
the pressure on the different departments like front office, housekeeping,
engineering, and F&B service. Unlike traditional operators in a hotel who took
calls and forwarded them to the concerned department to handle, AYS is a one
button operation wherein all guests' needs are addressed without forwarding calls
to any other area of the hotel. When guests call for room service, the AYS team
immediately organizes the same without the call being transferred to room service
or housekeeping as is traditionally done in hotels. The system was implemented
with the help of specialized personnel within Fortune who were responsible for the
'roll out' of the AYS programme throughout the chain. This 'task force' not only
trained the team for required operations but also set up standard operating

67
procedures, training manuals and audit processes. AYS can handle all the needs of
the customers and saves their time and energy.

There are more or less gaps of service quality expectations because the
management, the front-staff and guests perform different roles respectively and
each possesses unequal message. To effectively meet guests' needs and
expectations, promises for guests should be made felicitously and guests'
expectations of service quality should be kept at a rational level on the basis of
comprehending guests' needs and expectations of service quality via market
research. Meanwhile, to reduce or even eliminate the gaps of service quality
expectations, the message about their mutual expectations of service quality should
be punctually and precisely passed to the other party by the communication system
inside and outside the hotel.

Quality improvement is an essential and continuous management responsibility.

Although it is not possible to measure every aspect of the service encounter, most
steps can be quantified and measured. Using a service-quality audit, managers and
quality-improvement teams at Fortune Lake City identify the errors and determine
their frequency, assign costs of fixing the errors and identify the steps to prevent
them.

7.2 SERVQUAL:

Fortune hotels empirical service department makes use of the SERVQUAL model
to provide the customers with the best of service. This helps them to fill the gap
between the customer expectations and customer experience. According to the staff
information, the model shows an optimistic response from the customers. This
helps them to prioritize and to use its resources to improve the most critical service
attributes.

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Steps in SERVQUAL process:

Customers/guests are asked to answer numerous questions within each dimension

that determine:

 The relative importance of each attribute.

 A measurement of performance expectations that would relate to an
excellent company
 A measurement of performance for the company in question

Even after the positive response of the SERVQUAL model Fortune hotels keeps
on developing its service quality in all terms. It takes customer perception of
services as a benchmark for its hotels.

Dimensions Expectations Perception SERVQUAL

Tangibles 6.36 6.11 -0.25
Reliability 6.44 6.50 0.06
Responsiveness 6.38 6.45 0.07
Assurance 6.38 6.41 0.03
Empathy 6.30 6.42 0.12
Total 6.32 6.40 0.07
SERVQUAL gap

From the available information we can interpret that the SERVQUAL model
shows a positive feedback. The customers experience more than what they expect.
But there is a negative figure in the tangibles. Here the average rating for
expectations is higher than the experience. This results in a negative SERVQUAL
gap. The major reasons for these gaps are lack of modern facilities, visually
appealing physical facilities, neat and well-dressed employees, etc.

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Fortune Park City is a 3 star business hotel in a developing district. Hence the
customers might be expecting the tangibles of a luxurious 5 star hotel because the
customer often expects for the best of things.

7.3 SERVICE PRODUCTIVITY

Service
Quality Service
Productivity

According to Peter Drucker, “Productivity means the balance between all the
factors of production that will give the greatest output for the smallest efforts.”

Service quality and service productivity are connected, although there is a thin line
between both. Fortune hotels make the optimum use of its resources in order to
provide the best services. Due to the highly labour intensive nature of service
business, the ultimate parameter of productivity improvement in fortune is the
performance of the employees. Fortune hotels follow a particular strategy to
improve their productivity.

Fortune Hotels to increase the service productivity concentrate on Improving staff

performance through training, introducing systems and technology, reducing
service level, substituting or adding new services, reduce mismatch between
supply and demand, managing supply and controlling supply and look to
customers to increase productivity.

ITC has its own hospitality management training institute which offers the best
training. Fortune hotels have trained employees who are more enthusiastic, more
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committed and potentially more productive than their competitors’ employees.
Clear and ongoing communication between hotel managers and their employees is
a part of their training which helps to maintain a smooth function.

The time spent on training has an immediate negative effect on productivity; its
long-term benefits are undeniable. Training time could be deducted in productivity
calculations, however this practice would complicate the concept and new
questions would arise. Hence Fortune keeps it simple and fast.

Fortune’s new and trainee employees are given short practical training sessions
before a shift. They often have the monthly departmental meetings. The employees
in ITC hotels are well coordinate. Sometimes, front office staff assists out in the
banquet department during peak coffee break hours. In theory, the time spent
helping another department is deducted from the originating area and charged to
the receiving department. This increases their productivity.

Although Fortune needs to work on the Front Office department, it should follow a
meaningful measure known as movements per worked hour (a movement being
defined as a check-in or a check-out). Movements should be used as output figure
instead of the rooms’ department revenues, since ADR fluctuations will have an
overwhelming impact on the scores; therefore in this case it is sensible to factor
them out. The check-in of a leisure guest on a Saturday will use approximately as
much time as the check-in of a corporate guest on a Wednesday, who may pay a
three times higher room rate. However when reviewing the results, it should be
remembered that a 20 person group check-in takes much less time than 20
individual check-ins and will thus have a positive effect on productivity measured
as movements per worked hour.

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ITC hotels use strategies like developing off peak pricing schemes, non peak
promotion and demand creation, developing complementary services and creation
of reservation system e.g. table or room reservation facilities, these strategies helps
the hotel to balance the demand and supply. Fortune Hotels often uses part time
employees this helps them to meet their demands for the current period within a
less wage rate.

Fortune hotels have the best system and equipments to offer this reduces the labour
work and makes the service efficient. It also helps the hotel to attain greater order
with more speed and accuracy. As we all know Fortune Hotels are business hotels,
but recently they have added parties and marriages to their banquet services. This
is a strategy used to add a new service within the old service.

7.4 SERVICE ENCOUNTERS

For Fortune hotels, it is the early encounters that are important. Among the service
encounters a hotel customer experiences are checking in, being taken to the room
by a bell person, eating a restaurant meal, checking out etc. It is in these encounters
that the customer receives an overall view of the organizations service quality and
encounter contributes to customer satisfaction and willingness to do business with
the organization again. Fortune Lake City keeps regular customers updated. There
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is a business card drop box where regular customers drop their business cards.
There are no phone encounters. Email is the main source of communication for
guests from morning to evening. It is also for repeat customers. The target is all the
business customers and corporate houses from BKC. At Fortune Lake City face-to-
face encounters occurs between customers and maintenance personnel,
receptionist, bellboy, food and beverage servers and others. Determining and
understanding service equality issues in face-to-face context is the most complex
of all. Both verbal and non-verbal behaviours are important determinants of
quality, as are tangible cues such as employee dress and other symbols of service
like equipment, informational brochures, and physical settings. In face – to – face
encounters the customer also play an important role in creating quality service for
himself through his own behaviour during the interaction.

7.5 SERVICE FAILURES AND RECOVERY METHODS

Basically there are miniscule service failures because of the service standards and
inspections they have. Fortune Lake City promises that an order reaches the table
in 10 minutes. There are times when an order gets delayed. Rainbow is always
crowded and sometimes it happens that the order reaches the wrong table. As
mentioned before, the complaints are miniscule because they beware, as any guest
can be a Brand Standard Auditor. It is a surprise inspection carried out by ITC

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International team to evaluate the performance of any Fortune Hotel around the
world. This is a three day process in which the inspector (shopper) stays incognito
for the first two days, making an audit of the front of the house areas and on the
last day introduces himself/herself to the management and makes a thorough
inspection of the F&B. Common Complaints like wrong or delayed orders are
handled in a very nice manner.

Fortune Lake City follows one most important rule i.e. the guests are always right.
They listen to the customers carefully. They apologize to the customers for the
delay. For failure recovery they provide gift vouchers, a complimentary stay or
dinner for two is provided to make the customers feel important and happy. There
are certain precautionary measures to avoid failures, which are as follows:
employee asks the guest how is the food. They enquire that does the customer need
anything in order to get the updates on the customers’ needs. There is also the
feedback form enclosed along with the bill.

ITC also has its training institute known as ITC hospitality management institute
(ITC-HMI). It offers the best Hospitality Management Training in the country. The
Learning Institute of ITC Ltd. - Hotels Division, ITC HMI plays a significant role
in supporting the growth processes of the Organization.

74
The Institute has been the proud recipient of The Golden Peacock National
Training Award for outstanding commitment in training and development of
Human Resource for five consecutive years. It has its own management training
programme since decades with a mission to develop young, motivated leaders with
Hoteliering qualities and Hospitality skills, rooted in ITC Hotels' ethos and values,
so that they become professionally competent World class hoteliers.

Here is a “LEARN” model that the Fortune Lake City employees follow to deal
with their customers and ensure that they are happy with the service quality.

RECTIFY
RECTIFY

Listen: Understanding situations through the customer eyes is the only way to
understand what they think has gone wrong and thus good listening skills are very
important to understand the customer’s point of view. The ability to listen carefully
allows the employees at Fortune Lake City to better understand what is expected of
them, build rapport with the customers, resolve problems with customers and
answer questions.

Empathize: All customer complaints many not be justified but it is very important
to acknowledge the feelings of the customers and empathize with them.
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Understanding, associating and being sensitive to the customer’s feelings or ideas
is of utmost importance.

Apologize: A simple apology works wonders for the customers and it really does
according to Fortune’s records. Fortune believes that by admitting their mistakes
they don’t hide their weaknesses. By apologizing they begin to fix the problem
which has been created and the healing process begins.

Rectify: Corrective action needs to be taken in order o solve the problem. The
customer may be compensated or refunded depending on the situation.

Notify: They make a note of all the service failures and notify it to the staff so that
such incidents don’t recur and customers remain satisfied.

Once, pork was served to a Muslim customer by mistake. In this case, the
employee apologized to the customer. Immediately the order was replaced and the
customer was waived off from the bill to maintain the goodwill.

6.6 SERVICE GUARANTEE

A service guarantee is a marketing tool that is strictly used by Fortune Park Hotel
have to reduce consumer risk perceptions, signal quality, differentiate a service
offering, and to institutionalize and professionalize their internal management of
customer complaint and service recovery. By delivering service guarantees,
companies entitle customers with one or more forms of compensation, namely
easy-to-claim replacement, refund or credit, under the circumstances of service
delivery failure. Conditions are often put on these compensations; however, some
companies provide them unconditionally.

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Fortune hotels strictly consider service guarantee process. They are well versed
with companies’ policies and accordingly try to fulfil customers’ needs. Fortune
hotels take their weaknesses and threats into consideration and then work on those
aspects and dedicatedly fulfil customers’ needs. They follow the WOW strategy.
This means the customer should be so appreciated with the service offered that
he/she should just say one word, WOW. The services offered must be the best any
customer has experienced ever.

Guarantees establish clear standards which create a common image of what the
company stands for in both customers and employees’ mind. Managers are
motivated to seriously concern service guarantees, because they emphasize the
financial expenditure of quality failures.

With service guarantees, Fortune Hotel is trying to build effective systems to

generate meaningful customer feedback and develop corresponding courses of
action.

Guarantees require Fortune to understand the reasons of failure and motivate them
to identify and manage potential fail points

Guarantees help customers to reduce risk in making purchase decisions and to

reinforce their long-term loyalty.

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For customers, service guarantees play an important role in alleviating perceived
risks of the purchase. The guarantees also facilitate more ease and more likelihood
for customers to complain, since they expect the front-line staff to be ready with
resolutions and appropriate compensations. From companies’ perspectives,
according to the vice President of Hampton Inn, “Designing the guarantee made us
understand what made guests satisfied, rather than what we thought made them
satisfied.”

Fortune Hotels have a target for service guarantee and are following the same:

Unconditional: Fortune Hotels promises of the guarantees and it is unconditional

and no elements of surprise are made to customers

Comprehensible: The guarantees are easy to understand and communicate so that

customers can have clear awareness of the benefits of the guarantees.

Meaningful: Firms makes the guarantee important to the customers and provide
adequate values to offset service failure.

Easy to invoke: The guarantee is less dependent on the customer and more on
service provider.

Easy to collect: Service providers design an easy and problem-free guarantees

collection process for customers.

Credible: Guarantees are offered in a believable manner.

Fortune focuses primarily on causes of existing quality gaps, whereas when it

comes to high quality standards that are already present but it has limited market
presence and quality reputation it then focuses mainly on transforming potential
customers into loyal ones.

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CHAPTER 8: DEPARTMENTS IN FORTUNE PARK LAKE
CITY

8.1 Front Office department:

It is the most important department of the hotel. The main function of this
department is to give warm welcome to the guest. It helps to create good image in
front of the guest. It generates the maximum revenue for the hotel as it sells room
to the guests. Important functions of receiving the guests, making room
reservations, handling correspondence and preparing bills and keeping accounts of
the guest services are handled at the front office. The department is headed by
Front office manager or Executive House-keeper who supervises and co-ordinates
the work. Then there are Assistant Manager, Lobby executive, front office
supervisor, information assistant, receptionist, bell captain, bell boy, and doorman
etc. to perform their assigned roles. Front desk consists of young and energetic
staffs that are always there to help guest, they are also responsible for Business
Centre, Internet Access. Basically, Front office is connected with all other
departments such as Housekeeping, Food and beverages, maintenance, accounts
and HR. The Front office department creates the first impression in the minds of
the guest which if is positive or appealing creates a repetitive guest and if it
negative impression the whole stay of guest is then distracted as a result the
reputation of the hotel is hindered.

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 Organization chart of Front Office Department:

FRONT OFFICE
MANAGER

SENIOR HEAD TELEPHONE UNIFORM LOBBY

RECEPTIONIST CASHIER OPERATOR STAFF EXECUTIVE

ASSISTANT
RECEPTIONIST
DOORMAN BELLBOY

8.2 FOOD AND BEVERAGE DEPARTMENT

Food and Beverages Department takes care of food. One of the competitive
strategies that keep Fortune Lake City ahead of competition is that they regularly
bombard their guests with different kinds of food festivals and food tasting
services.

This department is responsible for all the food that is prepared and served in the
hotel. The main functions performed by the department are: presentation,
preparation and service of food and beverages involving kitchen, bar and baker.
The person in charge of the food preparation is known as the cook. Then there is
the restaurant hostess who makes the guests comfortable and deal with any
complaints by the guests. Those serving drinks are bartenders. 

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Food and beverages division

Rainbow:

It’s a pure vegetarian restaurant that offers a delicious variety of food. Rainbow
offers the best food of North Indian, Continental and Chinese cuisines. It does not
have a bar. Rainbow is a pocket friendly restaurant and is open throughout the day
offering services from 7-11 PM.

Fortune deli:

Fortune Deli offers the best variety of vegetarian cuisines. It is well air-conditioned
with beautiful ambience. Fortune Deli offers cuisines like north Indian, American,
café and Continental.

Preferred Card:

The Fortune Preferred card is a programme that offers dining privileges at the
restaurant of Fortune Lake City Mumbai. The member is entitled to discount on
food and beverages in the outlets. Additionally the programme also offers a one off
50% discount voucher on the best available rate for any room category except
presidential and vice presidential suite, and one complimentary massage voucher
for a Swedish massage at the Club Fortune. FORTUNE Preferred membership fee
is Rs 8500/- inclusive of tax per annum and validity of one year from issue.
Members can avail of the following discounts on total food ordered at the
restaurant of FORTUNE Hotel Mumbai.

Club Fortune Card: Club members get a flat discount of 20% on food and
beverage flat. There is no discount on tobacco. It’s a yearly membership of 2lakhs.

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20 FOOD SERVICE BASICS

1. Acknowledge every guest when they enter the restaurant.

2. Greet the guest warmly with a smile and use their name if you know it.
3. Present menus promptly.
4. All menus presented are clean without any marks.
5. Make sure they know the basic ingredients and cooking methods for all
items on the menu.
6. All plates are free of watermarks.
7. Take beverage order immediately if there is a chance.
8. When they make recommendations they never recommend the most
expensive items.
9. All silver plated items including the tips of forks shine always.
10.All napkins fold are simple and the napkins are clean and crisply starched.
11.Make eye contact.
12.Please don’t point in the restaurant.
13.Don’t be too formal and don’t be over familiar.
14.Use proper body language.
15.Listen attentively and never interrupt the guest.
16.Use only Fortune Lake City matches, lighters and pens.
17.Always carry a captain order pad.
18.Cutlery is adjusted as soon as the order is taken.
19.Use the guest name at least once after they have written their name on the
bill or when you return the credit card.
20.Bid an attentive farewell and thank the guest.

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Kitchen department:

Kitchen & food production is a department of hotel that is responsible for food.
The kitchen department includes preparations of food and utility. The food to the
restaurants is sent from the kitchen department.

During the recruitment in the kitchen department the main emphasis is on practical
knowledge. The first preference is given to the experienced cooks. The entire
department works as a team for better performance and to deliver superior quality.
During employment the medical check-up is necessary in order to ensure that the
candidate is mentally and physically fit for the job. If he fails to pass the medical
test irrespective of superior qualification the candidate is deprived of the job. The
Executive Chef looks after the recruitment in the kitchen department.

Maintaining the staff is the main function of Fortune. The entire department
maintains proper sanitation and hygiene measures. Compulsorily they have to wear
disposable glows, tongs or other dispensing devices to handle the food. The main
chef teaches the cooks the standard recipes, which are present in the menu card.
The emphasis is on good presentation and good preparation provided by proper
garnishing. The food prepared by the cooks is checked by the executive chef and
only after getting the approval from him it is sent to the restaurants. The water,
which is used in preparation of the food, is purified water in order to maintain the
quality and hygiene standards.

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8.3 EVENTS DEPARTMENT

Hotel Fortune Lake City in Mumbai is renowned for its top rate conference and
banquet facilities. The hotel has meeting/banquet facilities, which is spacious by
any standard and is backed up by a dedicated team of Event Managers. The Hotel
has invested heavily on modern acoustic systems and state-of-the-art audio-visual
equipments, which are so vital for success of any event. Additionally, the hotel has
a well equipped Business Center and provides professional secretarial and
translation services.

1. Business & Meetings: The Fortune Lake City Hotel in Mumbai has 24 Hour
Business Centre with state of the art conference facilities including high speed
internet access. The main boardroom at the Business Center of the Fortune Lake
City Mumbai has a seating capacity of 12 people and offers state-of-the-art
technology. Meeting facilities include 5 meeting rooms with a seating capacity
varying from 4 to 26 people and 2 private offices.

Equipment & Services:

 Business Equipment includes Computers and Printers

 Business Services includes Copy service, Fax service, Full-service
business center, Messenger service, Network/Internet printing,
Post/parcel, Secretarial service, Translator
 Meeting Equipments include 35 mm projector, AV equipment, CD
player, Film projector, LCD Panel, LCD projector, Microphone,
Overhead projector, Stage: portable, TV, TV production service provider,
Video camera, Walkie talkie radios

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  Meeting Services include AV technician, Carpenter, Copy service,
Decorator, Electrician, Labourer, Locksmith, Photographer, Security
guard and Specialty lighting

2. Social Events & Weddings:

Whether you are planning a corporate meeting, incentive trip, fashion show or
lavish celebration, Fortune Park City is the ideal destination to host your event.
Specializing in small groups from 30 -300 guests, each event is planned with the
utmost attention to detail and personalized service. Flexible venues include
fashionably appointed banquet halls, board room to engage in strategic business
sessions or social events. The hotel can host social events of up to 500 guests

Fortune Lake City Mumbai offers the perfect locations and a selection of
traditional wedding ceremonies. They have done weddings across the various
communities that make up the social fabric of India. Be it Hindu, Christian,
Muslim, Parsi or Gujrati, they have the expertise and the resources to ensure that
every single wedding is treated with a personalized touch. The hotel location
provides easy access to the most up market design studios, hi-end brands and
wedding related accessories. They cater to different communities with specific
requirements and food specialties. From pre-wedding ceremonies to gala wedding
parties, they take care of everything to create an inspired wedding. Wedding
Catering at the Fortune Lake City Mumbai is an art form. They ensure professional
catering services along with an extensive buffet. Fortune Lake City’s experienced
Sales and Event Management teams are happy to offer their expertise in producing
Indian and other ethnically diverse events. Fortune offers private menu tasting with
Fortune’s Executive Chef who ensures that imagination gets tailored to suit the
individual tastes. Fortune Lake City’s Pastry Chef creates a stunning wedding cake

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on-site. All desserts are meticulously prepared at the hotel, using only the freshest
ingredients.

Events in Fortune Lake City:

Mostly in Fortune Lake City events related to media, business meetings, product
launch parties, conferences, parties and many such events related to business
activities take place. But Fortune hotels are more into providing the business
facilities, hence corporate and business events occur on a large scale. For example,
auctions, meeting, conferences, etc.

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CHAPTER 9: MARKETING STRATEGY

The marketing strategy implemented by Fortune Lake City hotel:

PRODUCT
PRODUCT

PHYSICAL
PHYSICAL PRICE
PRICE
EVIDENCE
EVIDENCE

MARKETING
STRATEGY
PROMOTIO
PROMOTIO
PROCESS
PROCESS N
N

PEOPLE
PEOPLE PLACE
PLACE

9.1 PRODUCT:

The core product of the Fortune Lake City is their rooms. Beyond this, there are
endless ways to differentiate their service. Below mentioned diagram will help
gain insight into the hotel’s major product mix.

Product mix Core and peripheral services

Reception Exterior, entrance, lobby
Boarding Rainbow, Café, Fortune Deli and 24
hour service.
Lodging Beds, rooms, bathroom, bathtub, hair
dryer, robe, slippers, Windows,
soundproof, Windows, floor to
ceiling, Sofa, Chair, Clock Radio,
Safe, in room, Desk, writing / work,
with electrical outlet.
Entertainment T.V, Music, Cultural shows, Club
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 Fortune, Club Lounge.
Personal care Gym, Barber/Beauty shop, Spa,
Babysitting, Laundry on-site, 24
hour Room service
Shopping Bookstore, Florist and
Gift/newsstand
Transport and Communication Car Rental onsite: 24-Hour Hotel
Service, Newspaper delivered to
room, on request, Newspaper in
lobby
Medical First aid and ambulance

9.2 PRICE:

As it is a 4-5 star hotel, Fortune Lake City realizes that their prices are high and not
affordable by all, but this is due to various overheads that it incurs and the superior
quality that it offers. Also the target audiences that the Fortune Lake City caters to
are the ones who come to the Fortune Lake City for its ambience and world class
standards. Most domestic big business executives and foreign tourists consider the
tariff structure as a status symbol and prefer to stay in costly hotel, and then the
tariff structure is followed carefully, therefore their prices are justified.

The Choice of price ties directly to the hotel’s profitability, and also to the brand
they are trying to build in the minds of customers. The price varies in peak season,
promotion period and advance booking period. There are a number of factors that
influence Fortune Lake City’s pricing decisions:

 How much business is out there?

 How much money is the customer willing to pay?

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 COST

PRICE

DEMAND COMPETITION

Their goal is to make smart pricing decisions based on gathered intelligence

impacting the market, the product, the competition and their customers. The
Magnitude of competition is the most important element in governing their pricing
decision. Their pricing may be termed differential based. That's because with
different services they want to attract different people. They may ask a high price
from business people because their rooms are mostly paid by the company they
work for. So business people don't really care about the price. Other important
factors that affect the prices for accommodation are listed as follows: Room space,
Furnishing, Bath, toilet, shower, Fridge, tea and coffee making equipments,
Personal computer, office facilities and others, ample parking facilities, lounge,
bar, restaurants, shopping arcade, Swimming pool and health club.

The price/quality ratio of the hotel is very satisfying. They organize Health and
Beauty Weekends for which different packages are available. They also have
Special promotional prices generally termed 'value added' to include pampering,
free third nights, etc. Fortune Lake City maintains long term relationships with
customers who have the ability to move market share and offers Special Corporate
Rate to those who have day of week patterns that build shoulder night occupancy
and provide volume during periods of low demand.

Pricing for rooms and rates:

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  Deluxe, Guest room, 1 King or 2 Twin/Single: 8000.00 (INR) per
night(including VAT and Service Tax)
 Executive lounge access, Guest room, 1 King or 2 Twin/Single: 9,000.00
(INR) per night
 Exec Premier, Executive lounge access, Larger Guest room, Pool access:
9,500.00 (INR) per night
 1 Bedroom Junior Suite, 1 King: 10,000.00 (INR) per night
The price structure is affordable for the business class. VAT, service tax and
luxury tax is also added. Though the price range is high, it offers a variety of
luxurious services within the price.

Pricing structure is decided with reference to the following points:

Customers Quality State of the economy

 What are they  What is the quality of  What is the state of
buying? the product? the economy and
 What are they  What are the past market outlook?
willing to pay pricing actions and  What is the
for the results of those demand?
quality actions?  What are the
offered?  What are the room competitors pricing
rates, by segment? strategy?
9.3 PROMOTION:

Fortune Lake City Hotel runs the promotion through the advertisement in the
newspapers and in the official website of Fortune Lake City Hotel. They also carry
out their promotions by the means of calendars, monthly letter to their ‘Inner
Circle Customers’, informing them about their upcoming events and offers.

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Fortune Lake City takes part in exhibitions wherein they promote their holiday
packages. They also have special offers during the “off-season” etc.

Fortune Lake City uses a wide range of innovative and creative ways to promote
its services. They have an extensive and clarifying internet site. It has a lot of
information for the customers and also for online booking. The website provides
all the relevant information required by its customers. It includes details about the
location, the guest rooms, the deals and packages at the hotel and so on. For
different packages there are different promotional codes, which appear in the
Corporate/ Promotional code box when making the online reservation.

There are lots of other ways to promote the hotel. First of all the main focus is to
re-attract the customers they already ''have''. Of course they also want to attract
new customers, but Fortune Lake City in their promotion campaigns most of all
want to attract the customers they already have. The hotel has a customer database
which takes care of informing all the customers about new promotion offers via
phone calls, emails, brochures etc.

They also send regular customers letters with special offers. Press releases are sent
out regularly, giving news of hotel events and stories. Promotional strategies, apart
from the regular ads are used for ensuring the best Customer Relation and
Retention for the enhanced revenue targets. Promotional measures include the
loyalty program, Fortune Lake City Preferred card which offers its customers with
varying discounts. Fortune Lake City also offers Fortune Lake City Rewards, a
loyalty “rewards” program that allows members to earn points or airline miles for
their stays at participating Fortune Lake City brand hotels, in addition to other
membership benefits.

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Furthermore, the other promotional initiatives include offering new and attractive
deals and packages for the rooms.

1. Sales promotion: These are paid form of marketing communication activity to

stimulate the customer to come to the hotel. Some of the Sales Promotion
initiatives are listed below:

 Fortune Lake City India's Anniversary Package : This offer provides the
customers a stay at the Fortune Lake City Hotel at the Fortune Lake City's
Best Available Rate for two nights and they also give INR 3,000 to celebrate
in ten different ways: Room service, High-speed internet, Phone calls, Mini-
bar Transfers, Hotel bar, Suite upgrade, Breakfast, lunch or dinner, Laundry
and Spa.

 Spa Package at the Fortune Lake City Mumbai: This offer includes
deluxe room along with Breakfast for two and spa massage of guest's choice
per guest per stay. Guest can treat them to a relaxing day at the Spa Mumbai,
and let Fortune Lake City’s professional massage therapists revitalize their
senses. 

 Escape Romance Package at the Fortune Lake City Mumbai: Guests can
enjoy a romantic getaway at the Fortune Lake City Mumbai. Their special
package includes a delicious breakfast and a bottle of wine.

There are many other packages which they offer to their customers also depending
on the seasons and occasions. Internal selling plays an important role. Fortune
Lake City has an efficient sales force. They have frequent training programs for

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their employees to enhance their skills and become more presentable. They try to
attract new customers with banners on internet sites and folders at Tourist
Information Offices.

2. Advertising: Fortune Lake City comes up with creative advertisements for

different festivals like holi, baisakhi etc. It has Special offers on special occasions
like Valentines, Christmas / New Year, Mothers Day, summer musical nights,
Easter, etc. They are also keen on promoting various food festivals like the glass
noodle festival, the Hyderabadi tadka etc. The media used by medium is: Business
Publications to attract business class people and Tourist Publications to attract tour
travelers.

This advertisement was created to promote Fortune Lake City Mumbai as an ideal
wedding destination.

Valentine’s Day Celebrations: Valentine’s Day is an important day in the

business calendar of Fortune Lake City Mumbai.

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3. Personal Selling: While the advertisement helps in creating the knowledge of
the hotel, Personal selling brings in revenue. It is rightly said that ‘Receptionist is
the nerve of the hotel’. The receptionist possesses an impressive personality, and
has a high degree of knowledge about Fortune Lake City and various services
provided. Receptionist is also provided with facility like computer containing up to
date information about room availability and other information about Fortune Lake
City so that they can answer any unique query of the customer.

4. Publicity: Another dimension of promotion known as an unpaid form of

persuasive communication also plays an incremental role in promoting the hotel
business. While publicizing, the Fortune Lake City professionals play a significant
role by managing the media personnel or publishing news items related to the
hotel. Public relations activities thus become instrumental in the process of
publicizing. Fortune Lake City keeps the data base of their regular customer and
sends them ‘good wishes’ card on their birthdays and Anniversaries. This creates
good image of hotel in the mind of old customers. Fortune Lake City also
maintains good relation with travel agents & tour operators as they form a link
between customer & the hotel. In order to keep them happy and satisfied Fortune
Lake City offers these tour operator and agent – high commission, Gifts etc.

A number of events in Fortune Lake City are transmitted to the local press, such as
the appointment of a new chef, list of cocktails, menus for certain functions held at

94
hotel, particulars of certain important conferences or exhibitions to be held, menus
for special days of the year, photographs of staff dressed up for special days and
well-known people staying in the hotel. In the public relations, the activities range
from a press release to' newspapers and magazines.

9.4 PLACE:
Fortune Lake City wants to attract all kind of people. Fortune Lake City in
Mumbai is located 22 kms from International / Domestic Airport, 6-7 kms. from
thane Railway Station, and 5-6 kms. from thane Bus Stand. The idyllic setting of
the Fortune Lake City hotel Mumbai gives easy access to the business area of
Mumbai city. Business people prefer staying in this hotel since it is close to the
busiest areas of thane city.

Other branch of Fortune Lake City near the airport also attracts travelers who have
to wait a long time before there next flight is leaving. This advantage is because of
the ideal location which has close proximity to the airport. There are many
attractions nearby the hotel like viviana mall, korum mall. Thane is a growing city
and hence fortune hotel has a great scope here. This hotel attracts a lot of tourists
because many tourist attractions are located around this hotel. Since the hotel is in
the Centrum of the city it is mostly filled by tourists who are on a city trip. Place is
more than the choice of location of the Fortune Lake City hotel. It means

95
distribution, and this is the choice of how customers will book hotel rooms and
receive other services that the hotel provides. Fortune Lake City handles the
distribution excellently well through various distribution channels that are listed as:

Fortune Lake City web site, Travel agents, Conference agents, Internet sites,
Recommendation etc.

Distribution of services continues inside the hotel as well which involves both the
staff and the means to communicate with their guests i.e., phone systems, TV
ordering, even doorknob signs.

9.5 PEOPLE:

People here mean the customers, employees, management and the society. It is the
final customer who is to be satisfied and this can be done only with the help of the
employees, who are directed and guided by the management. Fortune Lake City
goes to great lengths to ensure they offer a work environment that encourages
personal and professional growth, where associates are rewarded for a job well-
done and have access to services that support their physical and emotional well-
being throughout their careers.

On-the-job training and opportunities for personal growth and development

continue throughout their associates’ careers. From investing in associates’ health
and well-being, to contributing to their retirement savings and recognizing length
of service milestones, Fortune Lake City is proud to reward and recognize their
associates for the work they do every day to help make every guests’ experience an
exceptional one. Helping their associates grow, rewarding them for all they do, and
providing the tools and resources to help them live successfully at home and work
is the foundation of the Fortune Lake City culture-a culture that helps keep their
associates engaged and excited, and delivering the exceptional guest experience for

96
which Fortune Lake City is known. They have special training programs for their
employees in which they are taught about the history, culture etc. of the hotel so
that the employees are well equipped with answers and are always answerable to
their guests. Both the front desk and the back office team at all times maintain a
positive attitude in order to create an impression in the minds of the customers.

9.6 PROCESS:

Creating and delivering product element require designation and implementation of

effective processes. Customers are often actively involved in these processes.
Badly designed processes will lead to slow, bureaucratic, and ineffective service
delivery, wasted time and a disappointing experience. The process in Fortune Lake
City from the booking process to the moment customers left the hotel can be
shown in blueprint diagram.

97
 Search information 2. Make reservation
3. Confirmed rese
Hotel official website (Online advance booking)
Make payment throug
(www.fortunelake Accept reservation Get the reservation con
city.com) Confirm date, time and party
Quality Check availability
Price
Facilities
Make booking

5.amenities
6. Customers check the facilities and Add on services 4. Che
Make sure everything in good condition Make available what is needed by customersCheck re
Update a
Get the s

7. Extra service
8. Check
If customers request any extra service or make any complaints, staff is ready to attend and solve it. out
Return the card
Full payment made
Customer feedback form
Bid farewell.

The total experience of a customer in Fortune Lake City Hotel

9.7 PHYSICAL EVIDENCE:

The Fortune Lake City, Thane was built in year 2007. Just a twenty minute drive
by car from the thane station, this deluxe hotel is strategically located in Thane’s
new business district. Thane, City of Lakes, bustling and self-sufficient, now
houses Fortune Park Lake City. Strategically located on the Eastern Express
Highway, it is well connected to business and industrial nerve centres like

98
Waghle/Kolshet, Bhiwandi, Airoli, Kalwa, Vikhroli, MIDC & SEEPZ, Navi
Mumbai and Mumbai itself. Tastefully and thoughtfully appointed, Fortune Park
Lake City is the perfect amalgam of comfort, convenience and great value.

Renowned designers have created a lush ambience featuring tropical seaside

gardens accented by naturalistic waterfalls, torch-lit pathways, lotus pond and
Indian sandstone sculptures meticulously crafted onsite by artisans from Rajasthan.
The Fortune Lake City Hotel Mumbai combines deluxe accommodations with
superior facilities including executive level rooms, business center, complimentary
valet parking, fitness center and spa, swimming pools and a variety of food and
beverage outlets. All guest rooms feature wired high speed Internet access and
Fortune Lake City's luxurious new bedding package.

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CHAPTER 10: CUSTOMER RELATIONSHIP MANAGEMENT
AT FORTUNE LAKE CITY

Fortune Lake City defines customer relationship management as: “Customer

Relationship Management is a process of managing customer relations in an
organized way”. They aim at managing each “Moment Of Truth” that is
experienced by the customer. There are various contact points where the hotel
comes in direct contact with the customer which are known as ‘Touch points’ in
the CRM language. These touch points are considered important as there is direct
interaction with the customer and they provide valuable input to the hotel.
According to the Fortune Lake City the terms-Customer Relationship Management
and Relationship Marketing are used interchangeably therefore they do not have a
separate CRM department as the outlining functions of the CRM process are
integrated in the Sales and Marketing operation. They use a variety of after sales
tactics for customer bonding and loyalty.

Customer Service is now more fashionably called Customer Relationship

Management. Fortune Lake City has been following an unstructured form of CRM
with a narrow focus of serving the customer well and in a most efficient manner.
The concept of Customer Relationship Management has a broader focus of not
only serving the customer but also creating the customer and retaining them for
measurable and substantial returns.

Fortune Lake City gives high priority to guest satisfaction. The management has
therefore identified ‘data capture vehicles’ or ‘touch points’ like loyalty programs
to maintain a data bank of their customers and to access the information as and
when needed. This helps in providing quicker and more customized solution to

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queries and complaints, if any and also helps in building a rapport between the
hotel executives and the customer which goes a long way in satisfying and
retaining the customers, building a superior brand image and turning them into
loyal patrons. Ultimately, this leads to measurable and substantial returns to the
hotel. The customers are also given a feedback form this helps them to know about
the customer satisfaction. The feedback form is based on the dimensions of the
hospitality industry. This helps the management to understand the customer better
and enhance the relationship between customers and management.

10.1 ITC HOTEL REWARDS

The industry’s most preferred loyalty program.

The award-winning Fortune Rewards hotel loyalty program provides the

foundation for Fortune’s customer relationship strategy. With over 30 million
members, ITC Rewards enables the company to determine customer value,
precisely target marketing efforts and messages, and capture and use customer
information to predict future travel behavior and business potential.

ITC Rewards offer exclusive privileges to its participants. As a Member of the

Fortune Rewards program, one can earn points toward free hotel stays, airline
miles and much more every time they stay at any one of Fortune's hotels
worldwide. With the Fortune Rewards program, members get to choose, Earn
"points" toward free stays, merchandise and services, or earn frequent flyer miles
on favorite airline. Frequent travelers also enjoy "elite level" benefits - upgrades,
special bonuses, gifts and other exclusive privileges. So many rewards, so little
time! With Fortune Rewards and Fortune Rewards points, customers always have
something new to discover, from exploring an exotic corner of the globe to
indulging in a spa or playing a legendary golf course. Fortune Rewards is not just

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better, but the best of all hotel loyalty programs because of a number of reasons.
First, it allows earning and redeeming points at nearly 3,000 hotels worldwide.
Second, it delivers a more memorable and personal experience. Saved member
preferences ensure that every detail is just as they want every time they check in.

10.2 WAYS TO EARN REWARDS:

 Earn at 12 distinctive and trusted brands.

 Earn points with every Fortune Rewards Visa credit card purchase.
 Earn points every time you shop at more than 250 online retail stores.
 Earn guaranteed Elite-member benefits like exclusive lounge access.

10.3 WAYS TO BURN REWARDS:

 Redeem points for once-in-a-lifetime travel such as cruises

 Redeem points at more upscale spa, golf and resort locations than you can
with any other loyalty program linked with other branches.
 Redeem points for travel packages, including Air + Car + Hotel packages

10.4 MEMBERSHIP BENEFITS:

Members receive hotel membership benefits from Fortune Rewards membership,

including the recognition they deserve at over 3,000 hotels worldwide, plus free
nights, free flights and many other benefits, including:

 Priority check-in
 A newsletter, including member-only specials
 Bonuses and base points earned at all Fortune hotel brands

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Three levels of Elite Membership: Platinum, Gold and Silver elite nights each
offering a variety of benefits based on the level.

What are 'Eligible Spends'?

At Participating ITC Hotels: ‘Eligible Spends' at ITC Hotels comprise of the

following expenses billed to the customers’ room

o Room
o Food and Beverages
o Laundry
o Telecommunications
o Business Centre usage
o Spa and beauty Salon
o Miscellaneous (e.g. Horticulture, rides, animation charges etc.)
o In room internet usage
o Purchase of ITC Hotels memorabilia at select ITC Hotels
o Purchase of ITC personal care products at select ITC Hotels

Club ITC Gold & Platinum Members can also earn Green Points for non-
residential food and beverage usage at restaurants at participating hotels for a
minimum spend of Rs.2000 and above, under one bill after all applicable
discounts. Food & Beverage spends of less than Rs.2000 incurred during Non-
residential usage will not earn Green points.

Ineligible Charges include

o Banquets
o Tobacco Products

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 o Travel House usage charges
o Tips and Paid outs
o All Taxes
o Service Charge
o Settlement of bills via Gift Vouchers and Club ITC Loyalty point
redemptions
o Any other non-residential expenditure by the member

At Wills Lifestyle Stores:

All products purchased from Wills Lifestyle Stores are eligible to earn Green
Points. The Green Points earned can be redeemed for a choice of exciting rewards,
which include:

o ITC Hotels Gift Certificates

o Wills Lifestyle Gift Certificates
o John Players Gift Certificates
o Kitchens of India Gift Certificates
o Travel House Gift Certificates
o Conversion of Green Points into Air Miles
o Bose and Tag Heuer Merchandise

Members can also donate their Green Points towards ITC’s Mission Sunehra Kal
initiative and Club ITC will contribute an equal amount of Green Points towards
Mission Sunehra Kal as well.

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CHAPTER 11: SWOT ANALYSIS

11.1 STRENGTH

1. 40 hotels, 66 operational alliances in over 50 cities

2. India’s fastest growing hotel chain on the first class business segment.
3. Inherits goodwill and reputation from its parent company
4. The brand is growing rapidly in its attempt to fulfil its promise “let fortune
take you places”
5. Won the PATWA award for “Best First Class Hotel Chain”
6. Fortune Park Hotel provides the services of advance and online booking via
the website of Fortune Park Hotel (www.fortunepark.com).

7. Special training programs for their employees in ITC Institute where they
are taught about the history, culture etc. of the hotel so that the employees
are well equipped with answers and are always answerable to their guests.
8. Overall features and facilities are satisfy the needs of the customer.

11.2 WEAKNESS

1. Low brand recall compared to leading hotel chains

2. Market share growth is restricted as highly competitive segment.

3. The hotel is more concerned with only business and corporate customers.

4. Fortune is next to Jupiter Hospital which creates a variety of barriers while

offering fully fledged services, for e.g. they cannot serve liquor.

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11.3 OPPORTUNITY

1. Opening up to the global market

2. ITC is a big name globally

3. Everyone is looking for good service at affordable rates in the current economic
statuses

4. Growing concept of Corporate Wellness in India

5. Medical Tourism is a great scope.

6. Increasing Tourism will definitely lead to a boom in hotels

7. New developments in metro, rails and roads are expected to enhance

connectivity thereby supplementing hospitality growth.

11.4 THREATS

1. Increasing competition. Rampant increase in International entrants

2. There is a new trend of people preferring well-furnished guest houses over

hotels.

3. Events like the terrorist attacks in Mumbai city coupled with the ripple effects of
the slowdown in the global economy have severely impacted the hotel industry and
the threat remains.

4. Competitors include Hotel Leela Kempinski, Westin, Vivanta, Ista and all other
business hotels

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ANNEXURE

QUESTIONNAIRE

18.What is service according to you?

19.What does hospitality mean to you?
20.What are the service quality methods that Fortune follows?
21.Have your company encountered with any service failure?
22.If any, specify in detail.
23.What are the service recovery methods?
24.How does Fortune handle customer complaints?
25.What effort does your firm takes to satisfy the customers?
26.What are the service marketing strategies that your firm follows?
27.How does the department co-ordinates with each other?
28.What are the future prospects for Fortune Park?
29. Do you have employee appraisal system?
30. Do you provide rewards to the customer and employees?
31. How are your services different from your competitors?
32. Do you follow service guarantee process?
33.How does your firm satisfy its customer and its employees as well?
34.What are the major areas or departments where the firm needs to work or
improve?
35. What is the overall growth plan of Fortune Park?

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OBSERVATION AND RECOMMENDATION

1. Fortune Park is a magnificent hotel right in the heart of the Thane district-
Built in a very ostentatious manner and well maintained.
2. The staffs are extremely polite and helpful.
3. The lounge/reception area is very large and very comfortable with a
wonderful cafe for snacks and coffee.
4. The hotel has excellent facilities.
5. The rooms are fantastic, with all possible things that one may require.
6. The swimming pool is lovely.
7. Their major specialized services are in banquets, which contributes to more
than 50% of their profits.
8. The quality of the service is excellent. The rooms are very nice and the Beds
are amazingly comfy.
9. In an executive room - there is a lounge on the fourth floor.
10.Indian gracefulness and service is well-known to anyone who has traveled in
this country and at Fortune Park it is outstanding.
11.The opulence of the entrance hall and garden really clash against tiny rooms,
Rooms are cramped in the living area but oddly have plenty of space in the
foyer/bathroom area.

12.The hotel is more interested in servicing only the business and corporate
customers.

13.It has a very less amount of rooms which makes it difficult for them during
the seasonal period i.e. of vacation time and during festivals.

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 14.Due to Jupiter hospital being next to the hotel it puts a few restrictions, like
serving of Liquor is prohibited.

CONCLUSION

The service sector now accounts for more than half of India's GDP. The share of
services in India’s GDP is 55.1 percent. The fact that service sector now accounts
for more than half the GDP marks a watershed in the evolution of the Indian
economy and takes it closer to the fundamentals of a developed economy.

In recent years government has taken several steps to boost travel & tourism which
have benefited hotel industry in India. These include the abolishment of the inland
air travel tax of 15%; reduction in excise duty on aviation turbine fuel to 8%; and
removal of a number of restrictions on outbound chartered flights, including those
relating to frequency and size of aircraft. The government's decision to
substantially upgrade 28 regional airports in smaller towns and privatization &
expansion of Delhi and Mumbai airport will improve the business prospects of
hotel industry in India. Substantial investments in tourism infrastructure are
essential for Indian hotel industry to achieve its potential. Today hospitality sector
is one of the fastest growing sectors in India. It is expected to grow at the rate of
8% between 2007 and 2016. Many international hotels including Sheraton, Hyatt ,
Marriott International and ITC Hotel’s are already established in the Indian
markets and are still expanding.

In this project, I studied about the concept of hotel industry, its service quality,
failures and recovery methods, managing the services, etc with reference to hotel
Fortune Park Lake City a brand of ITC. Fortune Park Hotel is on track to open

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seven hotels, adding 1,561 new rooms in India this year. These new openings will
offer employment opportunities in the hospitality sector across the country. In the
hotel sector, a number of multinationals have strengthened their presence. Players
like Four Seasons are also likely to enter the Indian market in the near future.
Moreover, Indian hotel chains are also expanding internationally.

After visiting the hotel and meeting the HR manager MR. BHUSHAN SAMIT of
the Fortune Park, I realized that in this competitive business world FORTUNE
HOTELS have a great scope to expand. In spite of a few weaknesses fortune hotels
can establish their market very easily in a developing district like Thane. The
organization follows a great service recovery method. The services offered might
not be different from other hotel industries but it has a sense of love and affection
to the customers which is very essential. Their major income is from banquets. The
employees, trainees and the whole staff are well equipped with best facilities and
this makes them efficient. By far now, there are very few and minor service
failures in Fortune Park this shows that the hotel can positively achieve great
heights and fulfil its objectives of satisfying the customers.

'Hotel Industry in India' is set to grow at 15% a year. 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.

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 BIBLIOGRAPHY

The following are the sources of information, which has helped, considerably in
the successful completion of the project.

1. Service marketing: S.M.Jha

2. Service sector management: Vipul prakashan

WEBLIOGRAPHY

business.mapsofindia.com

www.naukrihub.com

www.equitymaster.com

hotelindustry.learnhub.com

www.itchotels.com

www.fortunepark hotels.com

www.ncpedp.org

http://www.hotel-online.com/Trends/Andersen/1999_FraudRisk.html

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