Well, we have made a lot of efforts to reach where we are today and I am quite happy with

that. I believe in due time we would do great business. Take for example, the information
systems ability of the hotel. Its computers had been installed in 2018. The Opera, Prolific and
Micros software programs are used for front-office, back- office and point-of-sale functions,
respectively. There is an electronic key system installed in each room and the whole hotel is
Wi-Fi-enabled. By the middle of the second year, the hotel had gone online. “Whenever a
guest is in our network, he is given a login page and a customer service number; if he is facing
any difficulty he can contact the operator, and the issue is resolved or he is guided over the
phone.”
There are three levels of employees. Each of the six department heads (Finance, Marketing,
HR, IT, Operations, and Purchase) and the general manager of the hotel are the first-level
employees. On the next level are the chief engineers, assistants to managers and head chefs.
Next are the front-desk staff, waiters and other cooks. The attrition rate at the hotel, is high in
the first quarter 2018. The city doesn’t have a skilled workforce. “We have interviewed people
from the hotel management school on the outskirts of the city, but they are not competent
enough for level 2. So, we recruit people mainly from metro cities, who find it difficult to adjust
in a tier-two city. To resolve the attrition issue, we have increased incentives and started
providing accommodation to them.” Room occupancy in a five-star hotel mainly came from
domestic and international tourists, non-resident Indians (NRIs), industrialists and airline
crews. In Amritsar, there are various three- and four-star hotels; however, there are only two
other five-star hotels, which had emerged since 2015. Most costs associated with rooms are
fixed costs. The variable costs came from toiletries, linen, etc. The variable costs are around
INR700 per occupied room. We use all kinds of media for marketing – direct mail, a loyalty
card program, print advertising, television advertising and promotions, etc. However, in
Amritsar, the only major attraction for tourists is Golden Temple. Most people like to stay at
economical places that are near the temple.. even if we target a few high net worth individuals,
their travel pattern is such that they would not stay overnight.. they land and visit and leave..
the restaurants you see serve Italian food and exotic dishes.. when people are in Amritsar,
they wish to have local food. the small restaurants near the hotel have much more business
that we do..