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Unit:- 3. Introduction of hospitality management


- Meaning and nature of hospitality
- Features of hospitality services
- Growth and development of hospitality industry
- Concept of hospitality management
- Managers role in hospitality management
- Hotel organization structure
- Classification of accommodation

Meaning and nature of hospitality:-

- The hospitality industry is a broad category of fields within service industry that
includes lodging, event planning, theme parks, transportation services, cruise
lines and additional fields within the tourism industry.
- The hospitality industry is a multibillion-dollar industry that depends on the
availability of leisure time and disposable income.
- A hospitality unit such as a restaurant, hotel, or an amusement park consists of
multiple groups such as facility maintenance and direct operations
(servers, housekeepers, porters, kitchen workers, bartenders, management,
marketing, and human resources etc.).
- Hospitality sectors such as restaurants, hotels, and theme parks seek to maximize
the number of customers they "process" in all sectors. This led to formation of
services with the aim to increase usage rate by the guest.
- Information about required or offered products is brokered on business networks
used by vendors as well as purchasers.
- Hospitality industry players find advantage in old classics (location), initial and
ongoing investment support (reflected in the material upkeep of facilities and the

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luxuries located therein), and particular themes adopted by the marketing arm of
the organization in question).
- It is very important are the characteristics of the personnel working in direct
contact with the customers. The authenticity, professionalism, and actual concern
for the happiness and well-being of the customers that is communicated by
successful organizations are a clear competitive advantage.

- It is friendly reception and treatment of guests or strangers and the equality of


receiving and treating guests and strangers in a warm, friendly way. Hospitality
arises from French word “Hospice” which means take care of those traveling.
- Early hospitality was started from Greek/ Roman noted as early as 40Bc for social
and religious purposes when Roman businessmen traveled and they were consider as
the first pleasure travelers. After all of Roman Empire, public hospitality fell to
religious orders.
- In medieval period English travelers arises and Inns were actually private homes.
- The French revolution changed the course of culinary history and the revolution
caused some of the chefs to come to the new world.
- In 19th century Savoy Hotel opened in London and the general manager was Cesar
Ritz and the Chef was Auguste Escoffier.
- Accommodation industry is industry of services and hospitality with fooding and
lodging facilities. It involves a lot of areas where guest/ tourist spend their money
for different facilities in different areas. Tourism and hospitality industry is very
huge and a lot of service sectors are inter - related for providing facilities as per
the guest demands.
The term hospitality refers to the relationship between guest and a host and it also refers
to the practice of being hospitable. It includes cordial reception and entertainment of
guest’s visitors and strangers. Hospitality is also known as the act of generously providing
care and kindness to whoever is in need. According to the Oxford dictionary hospitality is
defined as the reception and entertainment of guest visitor of strangers with liberality
and goodwill.
The hospitality industry is one of the oldest commercial industries in the world. The
hospitality industry is a part of larger business enterprise known as travel and tourism

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which is responsible for providing wide range of travel related services like mode of travel
accommodation food and drinks recreational activities and other facilities required to
travelers. Hospitality industry really looks like a glamorous industry. It is an umbrella
which indicates including hotels, restaurants, casinos, catering, industry, resorts and clubs
etc. the industry is very diverse and global and is greatly affected by fluctuations within
the economy or various happening around the world. Some of the major characteristics of
hospitality industry includes:-
• Largest and fastest growing industry
Different data shows that the tourism and hospitality industry is growing rapidly
day by day and various sectors are eagerly included in these sectors. Huge number
of people spends money for the better facility in hospitality related sectors.
Presently around 9.6% of global sector is occupied by hospitality sector and
UNWTO is planning to increase the sector up to 10% economical portion from
tourism and hospitality sector.
• Product is intangible and perishable
Hospitality sector includes both selling of tangible and intangible products. Showing
respect, warmness, hospitality and satisfaction is part of intangible products which
is equally important for proper growth. In another hand, hospitality business is a
joint venture of different sectors which includes attraction, accessibility,
accommodation, amenities and activities.
• Characterized by shift work
Hospitality sectors runs as per the shift work with proper responsibility and care.
• 24 hrs service based industry
Hospitality sector is service oriented sector so it must be available as per the
interest and desire of the guest. Guest prefers responsive service as they pay
money for the services.
• Delivery of Product service mix
Hospitality industry provides services as a products and other tourism product is
combined as package tour. Both tourism products and hospitality services are
combined for formation of product mix.
• Two way communication
Providing services and getting such facilities needs the proper range of demand and
supply as per Consumer/ guest needs. Communication plays important role to
understand requirement and helps to fulfill the individual interest of guest. Every
terms and conditions must be clearly mentioned before selling and during
purchasing of the products.
• Relationship building
Hospitality and tourism industry is bonding of personnel relation and industry of
trust with both the parties between seller and buyer. If the relation between seller
and buyer is proper it helps for the continuity for running of the business in

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healthy condition. Satisfied guest is always the main agent for promotion of
business in long-term and sustainable business practices.

• Involvement with different people and culture


People travel from different countries from ethnic groups and having cultural
background. After the interaction with different people and groups people learn a
different thing which helps for international understanding. It increases the better
relationship and increase respect for others culture, religion and keeps self respect
for them.
• Seasonal based sector having uneven demand
Tourism totally depends upon seasonal factor which creates uneven demand in
hospitality sectors. Business increasement and fluctuation in demand and supply is
special features of hospitality sector. Demand for hospitality services is uneven
which may creates high profit and loss at a same time.

Growth and development of hospitality industry:-


Hospitality and tourism sector is rapidly growing industry in a global market. Evolution and
growth of tourism and hospitality industry does not contain a long history but it is rapidly
growing. This refers to the gradual development of the hotel industry from the past to
present and perhaps, it will continue in the future too. Since the existence of human kind
in this world, they felt a shelter; food and fiber were the basic needs for them to survive.
In fact, first endeavor of human was investing and obtaining these things. With the
fulfillment of these needs, the evolution of the hotel industry was influenced by the
concept of small lodge-house, and they were gradually emerged and developed with the
activities of animal and sea transport in the Middle Ages. However, accommodation
facilities were offered to those people whose purpose of travelling was mostly for war,
pilgrimage, and royal or trade affairs. In the context of south Asia, and especially in Nepal
are India, such travelers used affairs. In global perspective, the evolution of hotel
industries can be divided into three periods of human generation. They are:-
• Period of evolution before aristocrats and bourgeoisie society of the primitive age.
• Period after the advent of industrial revolution (Development of railways and
stream engine-1820,s)
• Period after the development of road and air transport (development of automobile
and jet plane-1950's).

Evolution before aristocrats and bourgeoisie society of the primitive age:-


It is believed that inns were originated in 6th century B.C. but the real beginning of inn in
the history goes back to 12th century, though existence of the oldest sheltering system
was seen in Pompeii, south Italy. Rome was considered holy/pious and epicenter of loyalty
to all religious people in Europe. For such pilgrimage, the destination to Rome had gradually
been increased, and there was a dire need of shelter for such religious. This was the first

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feeling and impression in northern Italy, where the original innkeeper guild was formed in
Florence in 1282 A.D. The history of partially improved lodging goes back to the middle
Ages. German and English Literature in the 13th and 14th century make frequent
reference to the inn. The end of middle ages was an era that gave rise to the middle ages
was an era that gave rise to the middle class. The rising bourgeoisie could afford
accommodation while travelling away from home. Inn keeping was changed into commercial
enterprise providing room, food and entertainment for travellers. Inn keepers earned
profit from lodging and catering to needs of growing number of different travellers. And
by the 16th century, the concept of hospitality was developed.
The real beginning of the semi-modern lodging industry may be traced back to 1640 A.D.
when the first passenger carrying state coach began to operate in England and similarly in
other areas in Europe. In early England, Inns and Taverns were normally considered finer
establishment and were reserved for the nobility and clergy. Similarly, in Switzerland the
chalets, which were patronized by the aristocrats, took the shape of hotel. Seaport inns
were the first hotels in America. The oldest inn still standing in the USA, is a stone house
in Guilford, which was built in 1640 A.D. In 1641 Dutch built a four-storied stone tavern at
the southern tip of Manhattan to accommodate the English who sailed daily across New
England and Virginia.

Period after the advent of industrial revolution (Development of railways and stream
Engine-1820,s):-
This is the second phase of advancement of hotel establishment. There were new lodges
and catering and their development continued in France, Germany, Russia, Spain, Turkey,
Portugal, Scotland, Canada, China, and South Asia as well. These conditions prevailed for a
few decades. After the Advent of industrial revolution in Europe after 17th century, it
took a quantum jump and brought new ideas and progress in the business of hospitality
industries.
The business of hotel was closely influenced by the development of railways and steam
ships in between 1820's to 1830's, which made travelling more prominent. This also
drastically changed the mode of travelling from social or government travel to business
travel. It brought more awareness among hoteliers to provide clean, quick and secure
service to travellers/visitors. Due to this many hotels went out if business and the
roadside hotel did not flourish. In Europe, large hotels were built next to or across the
new downtown railway station. Around 1760 A.D. a type of lodging establishment known as
'Hotel Grain' came into existence in Paris. It was a large house with rooms only available
for rent for a day, week or month. In USA, hotel and Catering Industries flourished in
communities along the westward route. The First modern city hotel inspired the
construction of other pioneering hotels. Gradually, the concept of Resort hotel originated
in the mind of hoteliers. Consequently, numerous resorts were built in New York Catskill
Mountains and Jersey's Atlantic coastal by 1842 A.D.

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Period after the development of road and air transport (development of automobile
and jet plane-1950's):-
The introduction and further development of the automobile industry eventually led the
roadside hotel. The nature of tourism and travel also changed dramatically between fine
road and air transport, as fewer people travelled by rail choosing the private automobile
instead. With the construction of highway, thruway and beltways, the lodging industry
respond to the specific needs of the motorist, and the motor hotel, i.e., 'Motel' was born.
In 1950 s, a roadside motel business was begun in California, which was the site of the site
of the first motel revolution. With this, the trend of motel spread throughout the western
USA, especially in Florida and Texas. For these efforts, Kimmons Wilson and Howard
Johnson were the primary innovators in the rise of motor hotels.

After World War 2, the expansion of cities all over the world led further development in
travel and hotel industries, which are best characterized by the word "growth:. The
increased numbers of travelers were spurred by the 1970,s. It created a need for more
and more number of large and luxurious hotels occupying large space providing food,
beverage, entertainment and recreational facilities. The business travellers demanded
specialized accommodation including meeting and conventional facilities. The concept of
chain group came into existence in the early 20th century. In this period, the beginning of
chain hotel operation was seen and Ellsworth M. Statler Ploneeres it. This was a new era of
extravaganza hotels and catering establishment for which they felt a need of large
investment and skilled manpower. During this time, many hotels and restaurant and
characteristics dramatically increased and improved, which was spurred by advance
technology, people's life style and pace of working style. There are some renowned
international chain hotels such as, Hilton, Sheraton, Hyatt, Holiday-Inn, Ramada-inn, and
Mandarin. Radisson, Meridian, etc. also came into existence. Individual owners also merged
themselves with these international chain operations as they could provide the expertise,
technology and marketing thrust which the individual entrepreneur were greatly lacking.
Evolution and growth of hotel in Nepal:-
It was only the five decades back that the hotel building concept has been started. The
"Himalayan inn" and "The Paras Inn" was considered as the first hotel establish in Nepal in
1950 and 1951. The credit full goes to Mr. Nara Samsher Rana, for the first time invited
foreign hotel expert Mr. Mandis for managing and training his staffs as well as hotel at his
own palace, where staff college in currently operating. Despite the certain factors, the
hotel remained closed after one year and Mr. Mandis joined to hotel show views, which was
located at Lazimpat.
It was in 1954 A.D., Mr. Boritch Lissanevitch the Russian master chef was invited to
organize a banquet party for the 160 royal invitees during the coronation of late King
Mahendra Shah. Mr. Boritch was requested to stay in Nepal and help to promote and

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organize hotel and tourism industry by the king in the same year, first tourist standard
hotel named "Hotel Royal" located at the Bahadur Bhawan, Kantipath, was introduced with
the assistance of Mr. Boritch. By the year 1958, hotels like:- Coronation, Hotel Green
View, Hotel Emporer, Hotel Panarama etc were established. The Hotel Royal got closed at
1960, and Mr. Boritch started a restaurant called "Yak & Yeti" at Lal Durbar, which later
converted into "Hotel Yak & Yeti". In the year 1964, the first four star hotel of Nepal
named "Hotel Shankar" , located at Lazimpat was established. In the same year after 9
months, "Hotel Del' Annapurna", located at the Durbar Marg has been established, which
was the first five star hotel in Nepal where as "Hotel Soaltee" was the second hotel was
the second five star hotel in Nepal, located at Tahachal, was introduced in the year 1966.

Realizing the organizational needs and the promotion of hotel, Hotel Association of Nepal
(HAN) has been established in 1967. In the year 1972, "Hotel Blue Star" has been
established, located at Thapathali, Kathmandu. Slowly and gradually, with the increase in
the number of tourists visiting Nepal has created a new dimension in the field of hotel
industry. By the end of 2008, there were almost 9 five star hotels, more than 20 four star
and three star hotels and more than 100s of tourist standard hotels, located inside and
outside the valley.

Concept of hospitality management:-


Managers plan, organize, make decisions, communicate, motivate and control the efforts of
a group to accomplish predetermined goals. Management also establishes the direction the
organization will take. The hospitality field, by definition is a service industry. It’s task is
to create shareholders wealth by servicing and satisfying guests. Industry segments
include, among others hotels, restaurants, private clubs, managed food service, event
planning, tourism related business and travel providers.

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Management is simply what managers do plan organize; make decisions, control and many
more. Management is defined as process of working with and through others to accomplish
organizational goals in an efficient and effective way. Hospitality management
encompasses the operation of hotels, campgrounds, restaurants, convention centers and
travel agencies. Workers in this industry are typically employed in administrative or
management or management positions in a service based environment. The overall goal of
any hospitality manager is to make sure guests have a pleasant experience. It includes:-
• Lodging management:-
Lodging management involves the supervision of lodging operations at hotel, motel,
resort, campground, hostel or any other type of facility with overnight
accommodations. Lodging managers greet guests, set room rates and budgets,
inspect rooms, supervise other members of the staff and monitor the facility's
performance. They can work as general managers, overseeing all operations, or
department managers, overseeing specific departments, such as housekeeping
or the front desk staff.
• Food Service Management:-
Food service managers oversee restaurant and food service operations. They work
in fine-dining establishments, fast-food chains, hotels, catering operations and
cafeterias. Typical responsibilities include overseeing and coordinating kitchen
staff and dining staff, managing inventory, maintaining budgets and performing
administrative tasks. A degree is not necessarily required to work in food service
management. Most food service managers are promoted from cook, waiter or
waitress, host or counter attendant positions. However, a bachelor’s degree in
restaurant management, hospitality management or institutional food service
management can be advantageous for individuals who want to work for upscale
restaurants and hotels.
• Event planning:-
Event planning is a big part of hospitality management. Weddings, conferences,
business conventions and meetings are just a few of the events that involve event
planning. Meeting, convention, and event planners coordinate each aspect of these
events, from location and transportation to food service and entertainment.
• Travel and tourism management:-
The hospitality industry relies on travel and tourism. Although an individual can find
many ways to work, either directly or indirectly in the travel and tourism industry,
one important way to contribute is though work as travel agent. Travel agents
research travel destinations and plan trip itineraries for individual and groups.
• Human resource management:-
Human resource management is another important task of hospitality management
in recent days. Proper planning, analyzing, staffing are major management related
things in hospitality areas.

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• Property management:-
Property management of hospitality sectors is essential and effective task of
hospitality management. Hotel assets, in house property, resource management
includes the management task in hospitality property.

Manager’s role in hospitality management:-


The changing of nature of organizations and work has in many hospitality organization,
blurred the lines of distinction between managers and non managerial employees. Many
traditional jobs now include managerial activities, especially when teams are used. A
manager is someone who works with and manages others activities to accomplish
organizational goals in an efficient and effective way. Managers are often classified in
three levels:
• Front line managers; are the lowest level managers, they mange the works of line
employees and they are also called supervisor.
• Middle managers; are known a department heads they fall between the front line
managers and top management. They are responsible for short to medium range
plans and they establish goals and objectives to meet the goals.
• Top managers; are responsible for making medium to long range plans and for
establishing goals and strategies to meet those goals.

The key management functions are planning organizing, decision making, communicating,
human resources, motivating and controlling. These management functions are not
conducted in isolation, rather they are interdependent and frequently happen
simultaneously or at least overlap. The key management function includes planning,
controlling, motivating, organizing, communicating for goal achievement. In addition to the

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management functions of forecasting, planning, organizing, communicating, motivating and


controlling are includes. Conceptual skills, interpersonal and technical skills are also
necessary for the good manager.
Manager must have following qualities:-
• Know yourself, your own core competencies and your values.
• Hire a seasoned management team.
• Build barriers of entry, make yourself indispensable.
• Be very flexible.
• Get close to your guests and owners to define reality versus perception.
• Show leadership from both top and the bottom.
• Appeal to trends
• Trust yourself and your work.
• Don’t become over confident.
• Look successful or people will think you are.
• Manage the future.

Manager’s role:-
• Every manager spends some time performing ceremonial duties.
• Manager should be a leader, coaching, motivating and encouraging employee.
• Managers spend a lot of time in contact with people in other departments both
within the organization and externally.
• The manager is often the spokesperson for the organization.
• Manager plays important role during the negotiation for purchasing, staffing and
during recruitment of new ones.

Hotel organization structure:-


Hotels vary in size and type, hotel organizational structure depends on the range of
services and amenities offered to visiting guests. Some organizational structures include
multiple departments, managers and branches to extend full-service luxury
accommodations and amenities. However, small, low-budget, family run hotels may have
only one manager and a few employees to handle all guest needs and services. All hotels
divide their operations into two basic categories: administrative and guest operations.
Administrative personnel handle the hotel's paperwork, accounting, human resources and
office work responsibilities. Operations employees handle the general functions of the
hotel. This includes checking in guests, coordinating events, cleaning rooms and
maintenance duties.
Both administrative and operations employees generally report to the hotel manager
(general manager) and other managerial staff employees. The general manager oversees,
and sometimes coordinates all hotel major functions and makes sure the organization
runs smoothly at all times.

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A hotel organizational structure is a comprehensive plan by a hotel owner to define


departmental activities and responsibilities. This structure brings order to every aspect
of hotel operation from the front desk and room service to the human resources
department. Hotel organizational structures are necessary to ensure maximum
profitability from each room, restaurant and bar on a daily basis. Your hotel can run
efficiently if it creates an organizational structure that is easy to understand.
A hotel's organizational structure is useless without an initial listing of organizational
objectives. These objectives address internal and external affairs for the h otel so that
the goals it sets forth can be achieved by appropriate personnel. An internal objective
for a hotel may be weekly meetings between department heads to communicate
operational problems. External objectives within a hotel organizational structur e may
include recruitment goals for seasonal staff and variable pricing for weekdays and
weekends.

Hotel organizational chart depends and varies as per the structure of the hotel and its
market demand. It means the structure of the hotel organization gives idea about the
need of the hotel chart and allocation of the human resource. Huge the property then
there is a lot of chances for the involvement of the human resource and the structure is
complicated and less the size of property the involvement is also low.

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Generally large hotels contains a huge organizational structure of a organization which is


shown below:-

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Classification of accommodation:-
Types of Hotels or classification of hotel by type:-
Hotels are classified according to the hotel size, location, target markets, levels of
service, facilities provided, number of rooms, ownership and affiliation etc.

1. Size - Or number of rooms


Under 200 rooms
200 to 399 rooms
400 to 700 rooms
More than 700 rooms
The above categories enable hotels of similar size to compare operating procedures and
statistical results.

2. Target markets:-
Hotel targets many markets and can be classified according to the markets they attempt
to attract their guests. Common type of markets includes business, airports, suites,
residential, resort, timeshare, casino, and convention and conference hotels.
Business Hotels: - These hotels are the largest group of hotel types and they primarily
cater to business travellers and usually located in downtown or business districts. Although

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Business hotels primarily serve business, travellers, many tour groups, individual tourists
and small conference groups find these hotels attractive. Guest amenities at business
hotels may include complimentary newspapers, morning coffee; free local telephone calls,
Breakfast etc.
Airport Hotels: - These types of hotels typically target business clientele, airline
passengers with overnight travel layovers or cancelled flights and airline crews or staff.
Some hotels might give free transport between hotel and airport. Some Airport hotels
also charge the guest by hour instead of normal daily night charges.

Suite Hotels: - These kinds of hotels are the latest trend and the fastest growing
segments in the hotel industry. Such hotels have a living room and a separate bedroom.
Professionals such as accountants, lawyers, business men and executives find suite hotels
particularly attractive as they can work and also entertain in an area besides the bedroom.

Extended Stay Hotels: - Extended stay hotels is somewhat similar to the suite hotels,
but usually offers kitchen amenities in the room. These kinds of hotels are for long
stayers who want to stay more than a week and do not want to spend on hotel facilities.

Serviced Apartments: - Serviced Apartment / Residential hotels provide long-term or


permanent accommodation for Guest. Usually guest makes a lease agreement with the
hotel for minimum of one month up to a year. Rooms generally include living room, bedroom,
kitchen, private balcony, washing machines, kitchen utensils etc. Unlike normal hotels
Serviced apartment only provides weekly one housekeeping service.

Resort Hotels: - Resort hotels are usually located in the mountains, on an island, or in
some other exotic locations away from cities. These hotels have recreational facilities,
scenery, and golf, tennis, and sailing, skiing and swimming. Resort hotels provide enjoyable
and memorable guest experiences that encourage guest to repeat to the resort.

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Bed and Breakfast / Home stays: - These are houses with rooms converted into
overnight facilities, this can size up to 1 to 10 guest rooms. They are also known as 'Home
Stay's'. The owners of the B&B usually stay on the premises and are responsible for
serving breakfast to guest.

Timeshare / Vacation Rentals: - Another new type or segment of the hospitality industry
is the timeshare hotels. These are sometimes referred to as “Vacation-interval" hotels.
Timeshare hotels are where the guests who purchase the ownership of accommodations
for specific period. These owners may also have the unit rented out by the management
company that operates the hotel.

Casino Hotels: - Hotels with gambling facilities are called Casino Hotels .Although the
food and beverage operations in casino is luxurious their functions is secondary to and
supportive of casino operations.

Conference and Convention Centers: - These type of hotels focus on meeting and
conferences and overnight accommodation for meeting attendees. They also provide video
conferencing facility, audiovisual equipment, business services, flexible seating
arrangements, flipchart etc. These hotels mostly located outside the metropolitan areas
and have facilities like golf, swimming pools, tennis courts, fitness centers, spas etc.

3. Levels Of service
World class service: - These are also called luxury / Five Start hotels; they target top
business executives, entertainment celebrities, high- ranking political figures, and wealthy
clientele as their primary markets. They provide upscale restaurants and lounges, Valet,
concierge services and also private dining facilities.

Mid-Range Service: - Hotels offering mid-range or otherwise 3 to 4 star hotels service


appeal the largest segment of the travelling public. This kind of hotels does not provide

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elaborate service and have a adequate staffing. They also provide uniformed service, food
and beverage room service, in room entertainment's and also Wi-Fi etc.
Budget / Limited Service: These hotels provide clean, comfortable, safe, inexpensive
rooms and meet the basic need of guests. Budget hotels appeal primarily to budget minded
travellers who wants a room with minimum services and amenities required for comfortable
stay, without unnecessary paying additional cost for costly services.

4. Ownership and Affiliations


Independent / Single Owner Hotels: - They do not have identifiable ownership or
management affiliation with other properties. Example for the same would be family owned
and operated hotel that is not following any corporate policies or procedures.

Chain hotels: - Hotels which are part of a hotel chain and this kind of ownership usually
imposes certain minimum standards, rules, policies and procedures to restrict affiliate
activities. In general the more centralized the organisation the stronger the control over
the individual property.

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