Final File Hotel Jarnail Inn

A
PROJECT REPORT
ON
“HOTEL JARNAIL INN”
PROJECT REPORT
SUBMITTED BY: PAWANDEEP KAUR
ROLL NO: 2019796
UNDER THE GUIDANCE OF: DR. KAWALJIT KAUR
FACULTY, DEPARTMENT OF THE AWARD OF THE
DEGREE OF
MASTER OF BUSINESS ADMINISTRATION
CKD INSTITUTE OF MANAGEMENT AND

TECHNOLOGY, AMRITSAR
PUNJAB TECHNICAL UNIVERSITY, JALAANDHAR
1 Project Report of Hotel Jarnail Inn Residency

DECLARATION
I hereby declare that the project entitled Marketing Strategies of Hotel Jarnail Inn is
my original research work conducted under the supervision of Dr. Kawaljit Kaur
marketing coordinator at of Hotel Jarnail Inn
Date:
Place Student signature

ACKNOWLEDGEMENT
This project has been an honest and dedicated attempt to make the analysis on
marketing material as authentic as it could. And I earnestly hope that it provides
useful and workable information and knowledge to any person reading it.
During this period, I had the pleasure of working closely with accomplished
organization people who shared with me their experience and helped me in
completion of my research.
I express my sincere thanks to my project guides and my institute faculty for guiding
me.
Lastly I am grateful to my parents who have been my mentors and motivators. I am
also thankful to all my batch mate who have been directly or indirectly involved in
successful completion of this project.

INDEX
Sr.No Contents Page No
1. Introduction 8-12
2. Service of Hotel 13-16
3. Layout Plans 17-18
4. Industrial Scenario 19-23
5. Employment Opportunities 24-25
6. Department of Hotel 26-29
7. Market Study 30-43
8. Swot Analysis 44-50
9. Conclusion 51
10. References 52

EXECUTIVE SUMMARY
I did my summer internship training at Hotel Jarnail Inn., Amritsar in marketing
research to know the marketing strategies of Hotel Jarnail Inn. Under the guidance of
Dr. Kawaljit Kaur (marketing coordinator at Hotel Jarnail Inn) my project guide
gave me a project that involves a survey of mobile market at the dealer of Amritsar
region.
The duration of my project was 60 days. During the 60 days I traveled extensively to
try & cover maximum dealers of market of Amritsar.
The main objective of the survey was to know the position of Hotel Jarnail Inn in
market and present scenario of mobile in the market. I have organized an event for
customer awareness and done the auditing in shops and helped dealer to open new
shop for increase in sales.

INTERNSHIP CERTIFICATED
Hotel Jarnail Inn Residency
Date: 01/01/2022
TO WHOMSOEVER IT MAY CONCERN
This is to certify that Ms. Pawandeep Kaur has undergone Industrial training in HR
Department in this organization with
Effect from 15 April, 2021 to 20 September, 2021.
During this period we found her hardworking, honest and a keen learner. We take the
Opportunity to wish her success in her future endeavours.
Raghav Bhola
General Manager

VISION:
 To be an organization which aims at leadership in the hospitality industry by

understanding its guests, and designing and delivering products and services which
enable it to exceed their expectations.
 To have a user-friendly technology enhancing value for our customers and helping our
personnel by making information more accessible.
 To an organization which is committed to the environment, using natural products and
recycling items, thus ensuring proper use of the diminishing natural resources.
MISSION:
 Our Guests
We are committed to meeting and exceeding the expectations of our guests through
our unremitting dedication to every aspect of service.
 Our People
To be committed to the growth, development and welfare of our people upon whom
we rely to make this happen.
 Our Society
To work with the communities within which we operate in areas of improving their
lives through leadership driven corporate social responsibility charter.
 Our Shareholder
To deliver consistent value addition to our stakeholder
7 Project Report of The Grand Five Star Deluxe Hotel

1.1 Hotel Jarnail Inn:
2 Featuring 2-star accommodation, Hotel Jarnail Inn Residency is situated in Amritsar, 700 m
from Partition Museum and 1.3 km from Amritsar Bus Stand. Boasting family rooms, this
property also provides guests with a terrace. The accommodation features a 24-hour front desk,
airport transfers, room service and free WiFi throughout the property.
3 At the hotel, rooms are fitted with a wardrobe. Complete with a private bathroom fitted with a
shower and slippers, the rooms at Hotel Jarnail Inn Residency have a flat-screen TV and air
conditioning, and certain rooms have a seating area. At the accommodation rooms include bed
linen and towels.
4 A continental breakfast is available each morning at Hotel Jarnail Inn Residency.
5 Popular points of interest near the hotel include Golden Temple, Jallianwala Bagh and Durgiana
Temple. The nearest airport is Sri Guru Ram Dass Jee International Airport, 12 km from Hotel
Jarnail Inn Residency.
6 This is our guests' favourite part of Amritsar, according to independent reviews.

6.1 BUSINESS ACTIVITIES:
With easy access to NH-3 Highway, the domestic & international airport and the metro line
that now links with various parts of Delhi. The hotel is equipped with 370 well-appointed
rooms comprising of one Bedroom, 2-bedroom and presidential suite.
In Room Facilities:
 24-hours Room Services.

 Tea/Coffee Maker.
 Satellite LCD TV.
 Electronic Safe.
 Hair Dryer.
 STD/ISD Direct Dial Facility.
 High Speed Wi-Fi & Broad band Connectivity Facility.
 Iron & Ironing Board.
 Daily Newspaper.
 Choice of Fruits.
 Mini Bar.
 Weighting measures.
 Fitness centre/Spa
 24x7 Business Centre
 Beauty Salon
 Airport Transfers
 Travel Assistance
 24-hours Currency Exchange
 Doctor on call
 In-house laundry
 Baby Sitting Facility
 Meeting & Conference Rooms
 Banquet Facilities
 Shopping Facility
 24-hrs Front desk facility
 Speaker phones
 Shoe Shine Stand
 Voice Mailing Facility
 Cordless Phone
 Cable television
 Wedding Services
 Express Check in/ Checkout Facility
 Flat Screen TV
 Connecting Rooms
 Gift/News Stand
 Executives Floor
 Bottled Water
 Wheel Chair Access
 Bathroom amenities
 Wake up Service
 Jogging Track
 Game Rooms
 Child Programs Facility
 Smoke Detectors
 24-hrs security facility
 Baggage hold Facility
 Coffee Shops
 Centralized Air-Conditioned
 Restaurants
 Multi line Telephones
 Complimentary Break Fast
 Package/Parcel Services
OVERVIEW OF HOTEL INDUSTRY:

Hospitality is all about offering warmth to someone at a strange or unfriendly place. It
refers to process of receiving and entertaining a guest with Goodwill. Indian Hospitality
has gained a level of acceptance world over. world leader of hospitality. Availability of
qualified human resources and untapped geographical resources gives great prospectus to
hotel Industry. The number of tourist coming in India is growing in last year‘s. Likewise,
internal tourism is another area with great potentials. Today Hotel Industry is one of the
fastest growing Industry in India. It is expected to grow to 10% between 2015 to 2020. The
thriving economy and increased business opportunities in India have acted as a boon for
Indian hotel industry. The 'Incredible India' destination campaign and the recently
launched 'Atithi Devo Bhavah' (ADB) campaign have also helped in the growth of
domestic and international tourism and consequently the hotel industry. According to a
report, Hotel Industry in India currently has supply of 110,000 rooms and there is a
shortage of 150,000 rooms fuelling hotel room rates across India. According to estimates
demand is going to exceed supply by at least 100% over the next 2 years. Five-star hotels
in metro cities allot same room, more than once a day to different guests, receiving almost
24-hour rates from both guests against 6-8 hours usage. With demand-supply disparity,
hotel rates in India are likely to rise by 25% annually 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. With such growth, sources estimate, demand is going to exceed supply by at
least 100 per cent in coming years.
Number of Hotels – 2010
Hotel categories No. of Hotels No. of Rooms
5 star deluxe/5 star 165 43,965
4 Star 770 134 20
3 Star 505 30,100
2 Star 495 22,950
1 Star 260 10,900

Heritage 70 4,200
Uncategorized 7,078 -
Total 8,707 1,32,885
Source- FHRA
LOCATION OF THE HOTEL
 Administrative Office:
CHAMRE WALA BAZAR,NEAR TELEPHONE EXCHANGE GOLDEN TEMPLE AREA,
143001 Amritsar,
LOCATIONAL ADVANTAGE
Amritsar is considered as one of the fastest growing cities in India. The fast growing
BPO, KPO, IT/ITES, Manufacturing and other industries in the city have made it mandatory
for the city to come up with some state of the art accommodations for overnight visitors.
Gurgaon‘s proximity to the national capital Delhi and its proximity to both international and
national airport have had a major impact on thegrowth of the city when it comes to acting
as a host to a number of foreign conglomerates as well as domestic dignitaries.
The Hotel stands just a few minutes from all the

major destinations:-
 Just 1.3 km from Amritsar Bus Stand.

 20 minutes from Amritsar Railway Station.

Sitting atop 8 acres of lush, fragrant garden the hotel offers 370 rooms.
4.1 General Guest Services:

 24-hour Room Service.
 Signature gift and sundry shop.
 Guest-chosen daily newspaper delivery.
 Digital interactive television entertainment system.
 Business Phone services.
 Laundry and dry cleaning services.
 Complimentary shoeshine service.
 Limousine and rental car service.
 Car detailing.
 Secured & High speed elevators.
 Central satellite system and intercom system.
 Central Air conditioning.
 CCTV and 24 hrs security system.
 Gym, sauna, Jacuzzi, baby play area, party
and meeting hall.
 Sport and activity center.
 Internet & Media lounge. High-Speed Internet
access & Wi-Fi.
 Baggage Storage
 Concierge Desk
 Foreign Currency Exchange.
 Multi-lingual Staff.
 Express mail.
 Meeting Room
 Outdoor tented reception area.
 Wedding gazebo
 Terrace Steak House
 Pool bar & Grill.
 Ample car parking for residents and guests
 Large full building height central Atrium area.
 Shopping promenade.
 Sports and activity center.
 5 restaurants and bars & coffee shops.
 Large lobby and corridors to give feeling of
comfort and openness.
 Tennis Courts.
 Lounge with nightly live music

5.1 Three Swimming Pools:
Swimming pools will provide not only a cool
and relaxing swim after a busy working day,
but will also be place for an informal drink or
quick bite with friends or business partners or
the place for a book or a moment of
meditation.
5.2 Fitness Room:

The fitness room will meet the demands of the
most demanding athlete and is equipped with a
treadmill, bicycles and workout equipment. All
guests will have free access.
5.3 Business Centers:

The business centre will provide a full range of
office support services including fully wireless
Internet and E-mail access. The conference
facilities will be equipped with the latest
technical equipment to satisfy the most
demanding businessman.

5.4 Banquet Hall & convention Centre
Our team will guarantee that every venue is
organized in accordance with the most
professional standards. The client may choose
from a wide variety from cocktail, cold or
warm buffet to a full menu supported by an
international wine card.
5.5 Conference Hall

Conference Hall will be able to fit around 100
people and will be equipped with amenities
such as flip charts, wireless internet, LCD
projector, White Board, Basic Stationeries, etc
5.6 Rooms & Suites

The Hotel room will be of stylish,
comfortable. Well furnished and air-
conditioned rooms with contemporary luxury
and gracious services.

5.7 Restaurants & Bars
The hotel will be having restaurant, a lounge
and a coffee shop, which will be offering a
choice of continental, Chinese and variety of
food from Indian cuisine, with live piano,
music. The bar will be stocked with best of
spirit and wine where guests can spend their
time gossiping and watching television.
5.8 Lounge Bars

The hotel will be having a music lounge
equipped with the latest & a light system. The
zeal to dance and enjoy will be the welcome
thought.
5.9 Kids Arena

The Hotel will be having Kids arena for
children to have fun and play.

5.10 Layout Plans
5.10.1 Floor Plan Studio of 402 Sq. Ft
5.10.2 One Bedroom & One Bath Room of 558 Sq ft.

5.10.3 Two Bedrooms & 2 Baths
5.10.4 Presidential Suites 3 Bedrooms 1340 Sq. ft

6.1 NATIONAL SCENARIO
India is the country with only a limited number of international brands and had hotels that
were mainly concentrated in the major metros and predominantly in the luxury/first class
positioning. Over the years, the hotel industry has undergone significant changes and has
reinvented itself in a manner that we believe has benefited the industry as a whole,
including all its constituents – hotel guests, investors, employees and other stakeholders.
Current Occupancy Situation of Hotel in Gurgaon and Delhi
 Hotel Imperial In Delhi-99.57%

 Hotel Trident Hilton Gurgaon- 98.30%
 Indian Hotel- 97%
 Tourism is presently the most important civil industry in the world. The hospitality
industry is second only to the global oil industry in terms of turnover, and is, by far, the
largest employer around the world. Ten percent of the world's work force is in the
tourism industry, and 10 percent of the world's GNP comes from tourism.
 Foreign tourist arrivals to India increased from 5.13 million in FY09 to 5.5 million in
FY10, thereby resulting in a increase of 7% YoY. . Foreign Tourists Arrivals (FTAs)
during the period January-October 2010 were 4.32 million with a growth rate of 9.9 per
cent. The tourism ministry has set a target of 10 million tourists by 2010. The World
Tourism Organization has predicted that India will receive 25 million tourists by 2015.
 According to the latest Tourism Satellite Accounting (TSA) research, released by the
World Travel and Tourism Council (WTTC), the demand for hospitality in India is
expected to grow by 8.2 % between 2010 and 2019. This will place India at the third
position in the world. India's hospitality sector is expected to be the second largest
employer in the world. Capital investment in India's hospitality sector is expected to grow
at 8.8 % between 2010 and 2019. The report forecasts India to get more capital
investment in the hospitality sector and is projected to become the fifth fastest growing
business destination from 2010 through 2020.
 The World Hospitality Council, figures indicate that the Indian hospitality demand is
expected to grow at 8.8% from 2007-2016. According to the World Hospitality Council,
revenue from foreigners to India is expected to grow to US$424 billion by 2015. Indians
residing in India as well as abroad are expected to spend US$63 billion by 2015.
 As per the Hospitality Competitiveness Report 2009 by the World Economic Forum,
India is ranked 11th in the Asia Pacific region and 62nd overall, moving up three places
on the list of the world's attractive destinations. It is ranked the 14th best destination for
its natural resources and 24th for its cultural resources, with many World Heritage sites,
both natural and cultural, rich fauna, and strong creative industries in the country. India

also bagged 37th rank for its air transport network. The India hotel industry ranked 5th
in the long-term (10-year) growth and is expected to be the second largest employer in
the world by 2019.
 To encourage the hotel sector, the government in recent times, has taken some measures
which will benefit the sector. In FY09, Rs.5.2 bn for development of hotel infrastructure
was allocated. This figure is higher by Rs.970 m as compared what was allocated in the
previous year. However, it is only 1% of the total government spending. RBI has
allowed ECB upto US$ 100 m in January 2009, which would help in raising funds. The
Centre and States are also working out a PPP (Public-Private-Partnership) model to
increase hotel capacity.
 The hotel and tourism industry's contribution to the Indian economy by way of foreign
direct investments (FDI) inflows were pegged at US$ 2.17 billion from April 2000 to
September 2010, according to the Department of Industrial Policy and Promotion
(DIPP).
 The who's who of the world of international fund companies - Blackstone, Morgan
Stanley, Walton Street Capital, Starwood Capital, Merrill Lynch, West bridge Capital,
Lehman Brother are looking to invest in the hospitality sector.
 Around 500 million domestic tourists are projected to travel across India by 2010
compared to around 325 million in 2006 and growing at over 10% annually.
 India's hospitality sector is expected to see an estimated investment of US$11.41 billion
in the next two years, and around 40 international hotel brands making their presence in
the country by 2011, according to a report by Ma Foi Management Consultants.
Moreover, the sector is expected to provide over 400,000 jobs.
 In India, the industry supports 48 million jobs, directly or indirectly or 8.27 per cent of
total employment and accounts for 5.83 percent of the GDP, according to Department of
Tourism & Hospitality estimates.
 According to an HVS International report average employee to room ratio is 1:8 in
Indian hotels across all markets and drops to 1:5 for three star categories of hotels. The
report also states that the hotel sector would need a fresh workforce of atleast 94,000 by
2014-15.
 India currently has over 200,000 hotel rooms spread across hotel categories and guest-
houses and is still facing a shortfall of over 100,000 rooms (source: FHRAI).
The country is witnessing an unprecedented growth in hotel constructions and will be
adding almost 114,000 hotel guest rooms to its inventory over the next five years.
(source: HVS)
 In the FHRAI‘s memorandum presented to the government recently, it is said that atleast
1,50,000 additional rooms are required to meet the target of 5 million foreign tourist
arrivals. This entails an investment to the tune of over Rs.15,000 crore. Currently there
are 1,05,000 hotel rooms in the three to five-star category in India. The annual growth
rate of hotel rooms in India is 6%. Nearly 11 per cent of the hotel demand in the country
is from long stay guests.

 To set up a 5-star deluxe hotel with 250-300 rooms will cost approximately Rs.300
crore, excluding the land cost. As per estimates by hospitality consultancy HVS
International, around 150 hotel projects are in the works across the country, which are
likely to add around 53,000 rooms over the next five years.
 There are about 1,285 approved budget hotels across the country with about 51,000
rooms apart from guesthouses, dharamshalas and devasthans in the unapproved sector.
The footprints of the IT and ITES in Tier 2 cities like Indore, Jaipur, Agra, et al, have
played a role in driving the demand for budget hotels in these cities.
 The tourism ministry has proposed a cash subsidy of Rs.2 lakh per room for one-star
category and Rs.3 lakh per room for two and three star category hotels to facilitate their
growth. According to Federation of Hotel and Restaurant Association of India (FHRAI),
the country is short of 65,000 budget category rooms.
 Average Room Rate (ARR) of hotels in India is increasing at the rate of over 20%-
almost equal to that of hotels in developed countries such as Europe and the US. The
growth in ARRs is direct fallout of the shortage of five-star accommodation in India and
high demand generated by the booming economy. This shortage has stimulated
investments in the hotel industry.
 Most of the five-star hotels are witnessing an average room occupancy rate of over 80%.
 For every room constructed, 3-5 jobs are created. The World Travel and Tourism
Council have estimated that by 2010, tourism can support 25 million jobs (1 in every 15)
in India through 8% annual growth.
 For every rupee that goes into building a hotel, three more are spent on furnishing it.
More than 27000 items go into a hotel including building material, chandeliers,
glassware, furnishings, energy saving devices etc., and at present 90% of hotel
accessories are indigenously produced in India. So the domestic accessories sector
stands a good chance in the near future.
 The average duration of stay of a foreign tourist in India is one of the highest in the
world. On an average, it exceeds 27 days in the case of non-package tourist & is 14 days
in the case of package tourist.
 Wedding tourism is growing almost 100% on a year-on-year basis. Generally, the ratio
of foreigners to Indians in an NRI wedding is 7:3. On an average, an NRI wedding
organized in India costs Rs.50 lakh. On an average, 50-150 rooms are booked in a star
category hotel.
 Cruise shipping is growing globally at the rate of 12-15% annually. In India the cruise
market is in excess of 1,25,000 guests annually and will grow at over 10% annually.
 22 Institutes of Hotel Management being operated as Centres of Excellence for
providing hospitality manpower. The government plans to set up four Indian Institutes
of Hotel Management in Uttaranchal, Jharkhand, Chhattisgarh and Haryana. To provide
training in the area of tourism, the tourism ministry will also start 400 training
programmes. Estimates indicate a need for about 15,000 more trained persons in the star
category hotels, which includes about 2,700 managers, 2,500 supervisors and about
1,000 staff.
 Online travel industry is growing at a CAGR of 125%. Generating revenues of around
$300-500 million, the size of this industry is around 2% of the entire travel industry,
which is estimated to be $42 billion. Growing at the current rate the online travel
industry in India is expected to become a $2 billion industry by 2008.
 Table below presents the nationwide occupancy and average rate performance.
Year
Ending 31st % Average % %
March Occupancy Change Rate Change RevPAR Change
2005 57.20 3731 2134
2006 51.60 -9.80 3467 -7.10 1789 -16.20
2007 57.20 10.90 3269 -5.70 1870 4.50
2008 64.80 13.30 3569 9.20 2313 23.70
2009 69.00 6.50 4299 20.50 2966 28.30
2010 71.50 3.60 5444 26.60 3892 31.20
2011 71.40 -0.01 7071 29.90 5049 29.70
2012 68.80 -3.60 7989 13.00 5496 8.90
2013 60.30 -12.40 7837 -1.90 4726 -14.00
2014 65.00 7.80 6426 -18.00 4177 -11.60
2015 68.00 4.60 6800 5.80 4624 10.70
CAGR 0.10% 5.5% 5.70%
6.2 COMPARABLE COMPANY ANALYSIS

Premium
LTM Margin EBITDA P/E
Company Enterprise Revenue LTM NFY NFY+1 LTM NFY NFY+1 LTM NFY NFY+1
Value
Indian Hotels USD USD 552 16.2% 4.71x 3.72x 29.0x 16.5x 12.1x NM NM 23.3x
Co 2,599
EIH 1515 190 17.9% 7.98x 5.28x NM 19.4x 15.1x NM 38.3x 26.0x
Hotel 110 97 29.5% NM 8.17x 38.7x 21.8x 15.3x NM 31.6x 20.3x

Leelaventure
Taj Hotels & 253 51 38.3% 4.93x NA 12.9x NA NA 27.7x NA NA
Resorts
Oriental Hotels 196 50 26.4% 3.9x NA 14.9x NA NA 33.2x NA NA
Asian Hotels 102 115 44.7% 0.88x NA 2.0x NA NA 2.8x NA NA
Royal Orchid 95 27 24.2% 3.6x 2.95x 14.7x 10.2x 7.0x 32.5x 17.4x 10.6x
Advani Hotels 61 11 0.6% 5.40x NA NM NA NA NM NA NA
& Res (India)

6.3 GLOBAL SCENARIO
 Hospitality Industry being the largest service sector in the country, adds around 8.60
percent to the national GDP and 3.1 percent of total GDP.
 Foreign Tourist has increased by 7 percent as compared to previous years which will be
giving an advantage to the project.
 Foreign Exchange earnings have witnessed to US$ 1.25 billion providing an economic
benefit to the country
 Globally, hospitality industry is one of the largest service industries in terms of revenue
generation and foreign exchange earnings, contributing over 9% to global GDP. It is also
one of the largest employment generators in the world. An estimated 235 million people
work directly or in related sectors, accounting for more than 8% of global employment.
 International hotels are deriving a big chunk of revenues from casinos and betting arenas.
Margins in this segment are also higher. But for Indian hotel majors, setting up casinos
and betting arenas is not allowed according to Indian laws. However, when domestic
hotels are compared to international hotels then they are fairly competitive in terms of
average room revenues.
For arriving at a Net Asset Value

Setting up a 5 star hotel = Rs 30-35 m*
Add = Cash + investments
Deduct = Debt
Net Asset Value (NAV) Total
Divide No. of Shares
NAV per share = Rs x
Compare with current market price

Clocking revenues worth billions of dollars, hotel industry is dynamic and fast growing. The
opportunities for career advancement in this sector, post-recession, are immense. The global
demand for travel and tourism provides unprecedented opportunities going forward in this
industry. As India is one of the new markets in the hospitality demand for trained manager will
be on rise. An average staff turnover in a five star hotel is 24.14 percent. There is a requirement
of about 15000 additional trained persons in the star category hotels in India, which includes
about 2700 managers, about 2500 supervisors and about 1000 staff members. The requirement
given for manager and supervisor categories which totals to 5200 and will be filled by 3 or 4
years diploma and degree holders. A single five star hotel could employ more than 400
employees. A total of 57508 people are employed to service about 36000 rooms in this
category. On an average, there are approximately 176 employees per 100 rooms in these
hotels. The employment pattern is the across geographic regions.
The major employing functions are F&B Service, F&B Kitchen and Housekeeping. They,
together, account for 56% of the total employment in these hotels.

25
7.1 Employment in Different Department in industry

Management Front F&B F&B House Accounts Total
team office service kitchen keeping
Five/Four Star 50 45 128 105 82 40 450
Hotel
One/Two & 33 30 85 70 55 27 300
Three Star
Other Hotels 16 15 41 34 26 13 145
7.2 Increasing Employment Opportunities in Industry

Employment Pattern and Forecast:-
Employees Employment Employment Employment 2016
Intensity 2002 2011
(Employees per
100 rooms)
5/4 Star Hotels 174 57000 83000 110400
1-3 Star Hotels 122 52500 63000 83000
Smaller Hotels 58 638000 1405000 3261500
Total NA 747500 1551000 3454900
7.3 Projected Human Resource requirement in Hotels:- ( fig in ‗000)

Particulars 2010 2012 2018 2022
Five Star Hotels 76 91 104 117
7.4 Some of the career opportunities in hotel industry are as follows.

 The industry offers more career options than most: - No matter what kind of work and
wherever aptitude lies there is a segment of the industry that can use talents.
 The work is varied: - Because hotels and restaurants are complete production,
distribution and service units, and managers are involved in a broad array of activities.
 There are many opportunities to be creative:- Hotels and restaurants managers might
design new products to meet there needs of their guests, produce training programme for
employees, or implementing challenging advertising, sales promotion and marketing
plans.
 Hospitality jobs are not nine- five jobs: - Hours are highly flexible in many positions.

26
The departments are classified on account of its function. They are as follows:-
8.1 Core Functioning Department
 Food & beverage (F&D) Department:-

F & B deals mainly with food and beverages service allied activities. Different
divisions are there in F & B like Restaurants, Specialty Restaurants, Coffee Shop (24
Hrs), Bar, Banquet, Room Services etc. Apart from that they have Utility services
(Cleaning).
 Front Office Department:-

The front office is the command post for processing reservation, registering guests,
settling guest account (cashiering), and checking out guests. Front desk agents also
handle the distribution of guestroom keys and mail, messages or other information for
guests. The most visible part of the front office area is of course the front desk. The
front desk can be a counter or, in some luxury hotels, an actual desk where a guest can
sit down and register.
 Housekeeping Department:-
The housekeeping department is another department in hospitality world.
Housekeeping is responsible for cleaning the hotel‘s guestrooms and public areas. This
department has the largest staff, consisting of an assistant housekeeper, room
inspectors, room attendants, a house person crew, linen room attendants and personnel
in charge of employee uniforms. They may also have there laundry and valet services.
Hotels with laundry and valet equipments may use it only for hotel linen and uniform
and send guest clothing to an outside service where it can be handled with specialized
equipments.
 Food Production Department:-

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

27
 Marketing & Selling Department:-

Sales and marketing has become one of the most vital functions of the hotel business
and an integral part of modern hotel management. It includes packaging for selling,
sales promotion, advertising and public relations. The marketing division is charged
with the responsibility of keeping the rooms in the hotel occupied at the right price
and with the right mix of guests.
 Engineering & Maintenance Department:-

The energy crisis throughout the world has given a great importance to the
engineering department of a hotel. This department provides on the day-to-day basis
the utility services, electricity, hot water, steams, air-conditioning and other services
and is responsible for repairs and maintenance of the equipment, furniture and fixture
in the hotel. The engineering department has an important role in satisfying the guest-
demand and helping to maintain the profit level of hotel. The cleaning, up-keep,
repair, replacement, installation and maintenance of property and its furnishing,
machinery and equipment are the joint responsibilities of Engineering/ Maintenance
and the Housekeeping Department.
 Finance, Accounting & Control Department:-

A hotel‘s accounting department is responsible for keeping track of the many
business transaction that occur in hotel. The accounting department does more than
simply keep the books-financial management is perhaps a more appropriate
description of what the accounting department does. Whereas the control department
is concern with the cost control guidelines by way of reducing in investment,
reduction in operating cost, control of food service costs, control of beverage cost,
labour cost control etc.
 Safety & Security Department:-

The security guest, employees, personal property and the hotel itself is an overriding
concern for today‘s hoteliers. In the past, most security precaution concentrated on
the prevention of the theft from guests and the hotel. However, today such violent
crimes as murder and rape have become a problem for some hotels. Unfortunately,
crime rates in most major‘s cities are rising. Hence today security department also
concentrate on these additional criminal activities too.
 Administrative Department:-
Top organizational members usually supervise the Administration Department in a
hotel. This department is responsible for all the work connected with administration,
personnel, manpower, employees‘ welfare, medical health and security.
 Human Resource Department:-

28
This department has newly taken step in hotel industry and within a short span of
time it has become very important part of the organizations. It plays the role of
facilitator between the bargain able cadre and non-bargain able cadre.
8.3 Key Control Department
 Types Of Keys:-
 Room Keys: Different keys are issued to guest for their rooms.
 Have a heavy key (key tab) discussion guest taking it away.
 Bells bay will take the key from the guest at the time of check out.
 Section Keys
 These keys will be issued to room alter dents.
 Will open doors of one section /floor.
 The will not open the double lock rooms.
 Room attendants will carry their key bundles, tied around so that they don‘t loose.
 Floor Master Key:-

 Will open all rooms on the floor.
 Will not open double locked room.
 General Master Key:-
 Will be used by Deputy House Keeper.
 Issued to night duty housekeepers also.
 Will be enabling to open only floor as the hotel expect the double locked room.
 Grand master key:-
 Will open rooms of all room, even the double locked rooms.
 Will be issued to Executive General Manager and Duty Manager (extreme case
must be taken in opening a double locked room i.e. only in case of emergency)

29

30
9.1 Past Supply and Present Demand

A comparison between increase in supply and demand in 2010-11 as compared to 2009-
10 for the major markets in India and two levels of positioning namely mid-market and
luxury/first class. Figures has been calculated by using performance of each hotel in these
market for 2009-10 & 2010-11 and then comparing the total of accommodated rooms for
all hotels to the increase in supply in the market during the same period.
Demand Supply Comparison (2009/10 – 2010/11)

Mid-Market Luxury/ First class
2010-11 2009-10 2010-11 2009-10
Supply Demand Supply Demand Supply Demand Supply Demand
Bengaluru 6.1% 16.5% 21.3% 26.8% 16.5% 33.9% 42.5% 29.9%
Chennai 9.9% 14.4% 3.6% 4.1% 2.0% 15.0% 13.8% 1.5%
Delhi NCR 20.7% 30.3% 34.0% 23.4% 7.1% 8.8% 15.0% 16.4%
Goa 4.3% 7.6% 0.0% 5.2% 11.9% 14.3% 1.2% 6.7%
Hyderabad 16.6% 30.1% 9.0% 4.0% 27.6% 29.0% 10.5% 0.7%
Jaipur 14.6% 11.8% 14.0% 33.1% 1.2% 6.0% 0.0% 2.0%
Mumbai 18.3% 16.7% 25.4% 22.1% 16.1% 14.8% 4.2% 2.9
Ahmedaba 23.7% 18.0% 30.6% 16.0% 23.7% 18.0% 30.6% 16.0%
Kolkata* 10.5% 14.5% 3.7% 2.0% 10.5% 14.5% 3.7% 2.0%
Pune* 30.8% 23.3% 39.2% 31.0% 30.8% 23.3% 39.2% 31.0%
The study also forecast the estimated demand for hotel rooms per annum assuming that past
track in tourist traffic continues in future.
All India Estimated Demand for Hotel Rooms – 2011 & 2016
Category 2011 2016
Classified 342,053 868,913
Others 240,680 515,095
Total 582,733 1,384,008

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9.2 Occupancy Rates

The hotel sector benefits from both holiday and business travel. Holiday travel in India is
generally seasonal in nature. Historically, over 60% of total tourist arrivals into the
country is during the period between September-May. On the other hand, business travel
is a factor of various factors.

Average Room Rates
There are three classes of rooms in a hotel i.e. business, leisure and luxury. It is important
to understand that room rates are less elastic to a fall in price at the higher end of the
segment (luxury) than at the lower end of the spectrum (business/leisure).Currently, the
big hotels have average occupancies of 60%.
Nationwide performance
Year Occupancy % Average Room % Revenue Per %

Rate change Rate change Room
change
2005-06 71.5 3.6 Rs 5,444 26.6 Rs 3,892 31.2
2006-07 71.4 -0.1 Rs 7,071 29.9 Rs 5,049 29.7
2007-08 68.8 -3.6 Rs 7,989 13.0 Rs 5,496 8.9
2008-09 60.3 -12.4 Rs 7,837 -1.9 Rs 4,726 -14.0
2009-10 65.0 7.8 Rs 6,426 -18.0 Rs 4,177 -11.6
2010-11 68.0 4.6 Rs 6,800 5.8 Rs 4,624 10.7
Source: HVS
Government Measures Benefiting the Project
Various policy measures undertaken by the Ministry of Tourism and tax incentives have
also aided growth of the hospitality industry; some of them include:
 Allowance of 100% FDI in the hotel industry (including construction of hotels, resorts,
and recreational facilities) through the automatic route
 Introduction of ‗Medical Visa‘ for tourists coming into the country for medical
treatment
 Issuance of visa-on-arrival for tourists from select countries, which include Japan,
New Zealand, and Finland
 Promotion of rural tourism by the Ministry of Tourism in collaboration with the
United Nations Development Programme
 Elimination of customs duty for import of raw materials, equipment, liquor etc
 Capital subsidy programme for budget hotels
 Exemption of Fringe Benefit Tax on crèches, employee sports, and guest house
facilities
 Five-year income tax holidays for 2-4 star hotels established in specified districts
having UNESCO-declared 'World Heritage Site

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FOREIGN DIRECT INVESTMENT IN HOTEL INDUSTRY

100 per cent FDI is permissible in the sector on the automatic route. The term hotels
include restaurants, beach resorts, and other tourist complexes providing
accommodation and/or catering and food facilities to tourists. Tourism related industry
include travel agencies, tour operating agencies and tourist transport operating agencies,
units providing facilities for cultural, adventure and wild life experience to tourists,
surface, air and water transport facilities to tourists, leisure, entertainment, amusement,
sports, and health units for tourists and Convention/Seminar units and organizations.
10.1 REASONS FOR LOW FDI IN FHOTEL INDUSTRY

The following are the some of the reasons for low foreign direct investment in this
sector. They are: Multitude of taxes Ours is the highest tax structure on tourism
projects in the Asia Pacific region. Multitude of central and state taxes is the
fundamental problem plaguing the tourism sector. Expenditure Tax of 10% is
charged in hotels ‗wherein room charges for any unit of residential
accommodation are Rs.3000 or more per day‘while, simultaneously, States levy
Luxury Tax ranging from 5% to 25% on the hotel tariff. Taking into account
heavy administrative costs of collection of HET by Central Govt. and Luxury Tax
by State Govt.s, the net benefit to the economy is considerably smaller and is not
compatible with the loss in revenue accruing due to diversion of tourists to lesser-
taxed estinations. The problem has got magnified due to increase in the threshold
limit, which used to be Rs.2000 per day per individual to Rs.3000 per day during
Union Budget 2002-03. With the removal of the words ―per individual‖, the
benefits of raising the threshold limit were nullified and therefore benefits could
not be passed on to tourists. The revenue stream that the Union Government shall
have to forego on abolishing Expenditure Tax would not be substantial, and
would be more than matched by the benefits that could accrue from the increased
flow of tourists who are currently diverted to other less taxed destinations. There
is no national wide tax policy there by some international hotel chains are
hesitating to establish their subsidiaries in the India. High Taxes One of the
fundamental problems plaguing the Indian tourism sector is a multitude of
Central and State level taxes, which lead to an increased cost to the tourist

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Airport Accomadation Food & Car Rentals Total

Related Related Beverages Related Taxes Rank
Cities/Taxes Related
Kuala Lumpur 1.70% 4.76% 4.76% 4.76% 6.46% 7
Bangkok 1.26% 6.54% 6.54% 6.54% 7.86% 8
Hong Kong 0.72% 2.91% 0.00% 0.00% 2.18% 2
Singapore 0.94% 3.85% 3.85% 4.38% 4.98% 3
New Delhi 0.94% 16.67% 6.54% 4.76% 13.18% 19
Mumbai 0.90% 13.79% 19.03% 4.76% 13.90% 21
Lowest rates 0.53% 0.25% 0.00% 0.00% 0.97% 1
Highest rates 7.66% 20.00% 20.00% 33.22% 24.25% 52
10.1.1 Delay in FDI Approvals & Govt. Policies

Huge delay in Foreign Direct Investment approvals in Hotel & Tourism sector. Due to
delay in approvals and lack of guidelines in the tourism policy, the Alfred Ford‘s
proposed Himalayan Sky Village is pending since last three years. If it is approved it
is one of the highest FDI in the country in tourism sector with US$ 300 million which
also provides employment to around 3000 people.
10.1.2 Highest import duty on imported liquor used in hotels:
Under the WTO Negotiations for Market Access under the Agreement of Agriculture
(AOA), India had bound its tariffs at 100% for primary products, 150% for processed
products (this is the relevant category for liquor) and 300% for edible oils, except for
certain items (comprising about 119 tariff lines), which were historically bound at a
lower level in the earlier negotiations. With the additional duties and sales tax levied by
the State Governments the cost of alcoholic spirits sold in hotels to bonafide guests is
exorbitant. The international precedence for liquor related levies also do not substantiate
the current level of taxes. Rationalization of the tax on liquor is therefore important to
make Indian hotels competitive internationally and enable them to extend facilities,
considered important by tourists, on par with the hotels in competing destinations.
Economic liberalization has given a new impetus to the hospitality industry.
 The Indian hospitality industry is growing at a rate of 15 percent annually. The current
gap between supply and demand expected to widen further as the economy opens and
grows.
 The government forecasts an additional requirement of 200,000 rooms by the turn of
the century.
 The travel and hospitality industry continues to be the sector, which has largely
profited from the fast growing economy of India. This has largely been due to the 3.9
m tourist arrivals in FY06 (15% growth) over the previous period. The compounded
growth in tourist inflow over the last ten years (FY00-FY10) has been 8.2%, while in
the last five years, growth stands at 9.1% per annum.
 This increase in the number of tourist arrivals in the country lifted the country‘s
standing in the world of tourist destinations. The country is ranked fourth among the
world‘s must see countries. The sector continues to face certain problems.
 The country continues to be marred by poor infrastructure facilities like poor road
management, rail, air and sea connectivity. However, the present government in its
36
endeavor has taken a few initiatives like opening of the partial sky policy. This allows
private domestic airline operators to fly on the Indian skies. Some states continue to be
in political uncertainties.
 As per the 2009 findings, the total number of approved rooms by the Government of
India stands at around 99,000 (estimated). These rooms are further classified into
various segments out of which, Five star and Five star deluxe hotels account for
around 27% of the total capacity, three star hotels (22%), four star (8%), two star
(9%), one star and Heritage hotels (2% each) and the rest is divided between
unclassified and unapproved hotels.
 A rapidly growing middle class, the advent of corporate incentive travel and the
multinational companies into India has boosted prospects for tourism. India's easy visa
rules, public freedoms and its many attractions as an ancient civilization makes
tourism development easier than in many other countries.
 The five star hotel segments have grown the fastest during the last five years at a
CAGR of 12%. Further, this segment can be divided into 3 sub-segments Luxury,
Business and Leisure. The growth in this segment indicates the genre of travelers
coming into the country. Over the last few years the country has witnessed a large
influx of business travelers in the country owing to relaxation of the government‘s
stand on Foreign Direct Investments (FDI) for most of the sectors in the country.
 Many foreign companies have already tied up with prominent Indian companies for
setting up new hotels, motels and holiday resorts. The entry of McDonald‘s, Pepsico‘s
Kentucky Fried Chicken, Domino‘s and Pizza Hut has given an international glitz to
the hospitality sector.
 It costs an average of US$50-80 million to set up five-star hotels with 300 rentable
rooms in India. The gestation period is usually between three and four years.
Government has undertaken following initiatives to attract both inbound and outbound
tourists:
• Incredible India -Under this program the Government promotes India through
various integrated marketing programs.
• Atithie devo bhava (guests are equal to god) -Under this program the Government
create awareness among Indian people who come in contact with the tourist.
• Various Infrastructure building initiatives
• Encourage religious tourism for instances promote various places in India as Buddhist
abodes. Other projects are the Rs. 5,400 million National Highways Development
Project, the 5,846 km Golden Quadrilateral and the 7,300 km north-south and east-
west corridors. Sagarmala project which intends to create a network of seaports, which
will change the way people discover and experience real India.
 Eco-tourism - The government is considering various fiscal and policy measures to
promote ecological and adventure tourism in the country including formulating
uniform ecological guidelines to conserve nature and waiver of service tax charged on
adventure tours. 924 Infrastructure projects worth Rs.1440.86 crore sanctioned
during the 10th Plan. The government has already okayed plans to substantially
upgrade 28 regional airports in smaller towns. The upgradation of national highways
connecting various parts of India has opened up the way for the development of
budget hotels in India.

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10.2 GOVERNMENT OPEN SKY POLICIES

The Government‘s Open Skies policy, permission for domestic airlines to commence
international flights, start-up of various low-cost carriers, and fleet expansion by
domestic players has created a huge incentive for domestic travelers to explore far-off
destinations within and outside India. The booming aviation business is bringing an
ever increasing number of passengers to India, and pulling Indians out of their homes
and into hotels.
Moreover, the government‘s decision to substantially upgrade 28 regional airports in
smaller towns and privatisation and expansion of Delhi and Mumbai airport will
improve the business prospects of hotel industry in India. Government has taken
several steps to boost travel and tourism which have benfited to hospitality industry in
the country. These includes the abolishment of inland air travel tax by 15%.
Hotel Industry- Worlds Largest Industry
Share of world: % of Total(2010)
GDP 11.0
Employment 8.0
Exports 7.9
Capital Investment 9.4
What is the strategy and the capex plans of the company over the next 5-10 years?
As mentioned earlier, hotels are capital intensive in nature having long gestation
periods, which not only has a bearing on the free cash flows of hotels but also affects
the return on capital employed (ROCE) for a period of time. So the bigger the capex
plan, the more caution one should exercise. This criteria is favorable for established
hotel chains.
1. Economic cycles also determine earnings prospects (during a downturn, properties
are cheaper and hotel chain generally tend to increase capacity). Moreover, in
tough times like September 11, hotel stocks take a beating. It is at this time that the
established players should be looked at, for when the concerns fade away; these
will be the first ones to benefit from an economic upturn.
2. A hotel chain should not be leveraged on any specific segment i.e. luxury or
leisure. Though elasticity is lower at the premium end, when tourist flow is
affected, this player could be the worst hit. Diversification reduces volatility in
earnings, to an extent.
10.3 TAX BENEFITS TO HOTEL INDUSTRY

10.3.1 Direct Taxes
 Section 80IA: Infrastructure status for the hotel industry
All new hotel projects will be able to avail the benefit of deductions of 100 per
cent with respect to profits and gains for a period of 10 years. This will lead to
many new hotel projects being set up, with companies re-investing their profits in
the hotel sector. Further, it will help in channelling huge investment about Rs
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50,000 crore (Rs 500 billion) in the tourism sector in next 3-4 years and quickly
bridge the shortfall of hotel accommodation.
 Section 80HHD: Deduction in respect of earnings in convertible foreign exchange

Section 80 HHD gives tax exemption from the export profits to exporters. If this
is granted to the hotel industry, it would help companies to reinvest profits for
building additional capacity.
 Section 32
Hotel buildings are considered as plants for the hotel industry as they are utilised
for 24 hours. The industry is required to make heavy investments in renovation,
upgradation and upkeep of the hotel buildings at all times to keep it in pristine
condition. Section 32 of the IT Act should be amended to restore the depreciation
rate to 20 per cent.Hotels and other tourism related service providers who earn
foreign exchange have been included as the 13th sector in the Service Export
Promotion Council set up by the ministry of commerce, government of India.
As such, they may be granted exemption to the extent of foreign exchange earned
for the following services provided by the hotels, ie banquet rentals, rent-a-cab, dry
cleaning services, health club or fitness centre services, beauty parlour services,
internet cafe services, club/association service, business support services, business
auxiliary services, management consultant services, renting of immovable
property, etc.
10.3.2 Custom Duty
The customs duty structure should be rationalised for hotels and restaurants in tune
with the international practices, to enable the Indian service sector to compete with
their international counterparts.
This is specially so for import duty payable by small sized hotels and restaurants
who do not earn substantial foreign exchange and therefore, are not eligible for any
of the Export Promotion Capital Goods schemes.
10.3.3 Exise Duty
Seeks excise duty exemption on supply of food preparations (as part of their food
and beverage services) by hotels or restaurants to their by guest (staying in the
relevant hotel).
Also, hotels and restaurants with turnover less than Rs 1.50 crore (Rs 15 million)
should be exemption from paying central excise duty on the products produced
and consumed within the premises.
10.3.4 Interest subvention to employment intensive sectors
The 2 per cent interest subvention extended to employment-intensive sectors like
textiles, leather, marine and handicrafts as announced in the relief package
announced by the government of India on December 8, 2008, should be definitely
extended to the hotel sector as their employment generation capacity is much
more than these sectors.
10.3.5 Luxury Tax
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Luxury tax varies widely across services and states. Also, in the most of sales it is
charged on the published tariff by not considering the commissions paid to agents
and discount offered to walk-in clients. So the industry seeks exemption of luxury
tax on the room tariff less than Rs 2,500 and to charge a uniform rate of 4 per cent
on the actual tariff where room rent is Rs 2,500 or more per day.
10.3.6 VAT/ Sales Tax & Other Taxes

Vat/Sales tax on food & beverage are different for each state and it should be
uniform over the country. It will help in many hotel projects coming up all over
the country which leads to lowering hotel tariffs and generating employment.

40
In the past ten years most commodity prices have gone up. Development costs have always
been a challenge for anyone looking to build a hotel in India. The land cost has increasingly
become a significant portion of the development cost for any project, accounting for 30-50%
of the total development cost, while the same equates to about 15-20% internationally. The
high density of development within Indian cities and the shortage of vacant land parcels
suitable for hotels had led to aggressive bidding wars among prospective buyers and forced
prices upwards. With the increased pace of construction activity around the world, especially
in the Middle East and China, the price of construction material such as steel and concrete
increased steeply in recent years. While this was offset by sourcing furniture and fixtures from
China by several recent hotel projects, the additional concern regarding the quality of Chinese
goods is one that now needs to be addressed.
HVS observes that hotels built in India very often exceed the brand specifications that might
exist for these brands internationally and that developers often tend to spend more money on
their hotels than required. A typical mid-market business hotel in the US or Europe, thus, does
not cost nearly as much to construct as it does in India.
The lengthy cumbersome process of obtaining licenses and permits and construction delays
serves to increase costs even more. Given the time and expense involved in working through
all these issues and finally opening a hotel, developers who managed to do so were not
interested in selling their hotels or asked for prices that were far in excess of replacement cost.
As we look into the next ten years, we believe that as long as asking prices remain
significantly higher than the replacement cost for the product, developers and investors will
choose to build rather than buy.
Positioning Typical Development Cost per Key (INR)
Luxury 12,500,000 and above
Upper Upscale 8,500,000 to 12,500,000
Upscale 6,000,000 to 8,500,000
Mid Market 3,500,000 to 5,500,000
Budget 2,500,000 to 3,500,000
Economy 2,500,000 and below
Key Game Changers:

 Likely rationalization of land costs, due to the recent economic conditions

41
 Increased import of material from global sources, as long as quality goods are
available
 Expected rationalization of costs, with government intervention in relaxing the license
process
 Expected rationalization of per key development costs, with entry of brands across all
positioning

42
The 4 Ps of marketing are Product, Price, Place, and Promotion. Think of each of these as a
variable which you control. The idea is to set these variables in such a way so that sales will
take place. You cannot "make" a customer pull out her credit card, but you can certainly help
her in coming to a decision by setting the "right" price, the retail location, the level of
advertising and even product attributes such as color or perceived quality. You control
everything but the customer herself. These variables are all interdependent. Taken together,
they constitute a certain mix.
PRODUCT:
In the hospitality industry the service that the hotel provides and the other products that the
hotel provides are the facilities the rooms the restaurants the hotel has It's fully refurbished
guest rooms and highly personalized services, make you feel comfortable and cared for,
miles away from home the product that the armadas is into is always to keep the guests happy
who enter and leave their premises
PRICE
Price is not just the sticker price or the price invoiced. It goes deeper. the Ramada is one of the
only 5 star hotels in Goa that has prices that even a common man can avail of on grand
occasions they have a price tag which varies for different persons requirements may from any
walk of life Ramada is a good price package that fits every ones budget due to which they do
not face competition from other hotels
PLACE:
Exclusive international 5 star deluxe hotel located in Gurgaon with 370rooms
PROMOTION:
The year 2010 is a different story as the consumer is well educated, travelled, experienced and
looks beyond the gloss of the brand to the value proposition and the actual delivery of brand
promises. Thus, in the Year 2010, the marketing mantras are differentiation, consistency,
customer satisfaction, delivery of brand promises and customer retention. Today, Brand 2010
has evolved from a one-way communication stream to a two-way one that is more flexible and
accommodates the customer's needs and wants. Hence, Brand 2010 is a product of the
External Stakeholder – the needs and wants of the Customers – accented by experience led,
sustainable Brand Promises which now translates into the Purchase Decision of 2010. The
state of economic flux wherein each dollar spent is being analyzed, renegotiated and then
minimized, the marketing dilemma of marketing spend vs. incremental revenue assumes more
importance. How do marketing resources of the Indian Hospitality sector continue to build
their brand and market their product successfully? Consistent delivery of a superior and
differentiated product experience that offers a greater perceived value will result in the
acquisition and retention of customers. The pressure on consistent delivery of brand promises
is further maintained by online customer feedback which impacts the attraction quotient of the
product for other prospective customers. Customers in the coming decade will want to 'Find

43
Even Before they seek' and the advent of social networking has given a new power to
customers like none other before.
Key Game Changers:
 Broadening of the playing field with entry of many domestic and international hotel
chains
 Well educated, travelled and experienced customer base
 Evolution of the brand from a one-way communication stream to a two-way one that
accommodates customer needs and experiences
 Consistent delivery of brand promises and customer experiences
 Marketing equations changing in favour of the customer with online channels like
Web 2.0 and social networking

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STRENGHT

India has a rich cultural heritage. The "unity in diversity" tag attracts most tourists.
 Indian hotel industry is facing a mismatch between the demand and supply of rooms
leading to higher room rates and occupancy levels.
 India's share in international tourism and hospitality market is expected to increase over
the long-term.
 Manpower costs in the Indian hotel industry are one of the lowest in the world. This
provides better margins for Indian hotel industry.
 India offers a readymade tourist destination with the resources it has. Thus the magnet
to pull customers already exists and has potential grow.
WEAKNESSES

The lack of adequate recognition for the tourism industry has been hampering its
growth prospects. Whatever steps are being taken by the government are implemented
at a slower pace.
 High tax structure in the industry makes the industry worse off than its international
equivalent. In India the expenditure tax, luxury tax and sales tax inflate the hotel bill by
over 30%.
 The cost of land in India is high at 50% of total project cost as against 15% abroad.
This acts as a major deterrent to the Indian hotel industry.
 The hotel industry in India is heavily staffed. This can be gauged from the facts that
while Indian hotel companies have a staff to room ratio of 3:1, this ratio is 1:1 for
international hotel companies.
OPPURTUNITIES
 Rising Income: While there has been much talk about record number of foreign
tourist arrivals, very little has actually been said or done about domestic tourism,
which, according to our estimates, has registered a 40% annual growth in the last three
years.
 Per capita income grew by an impressive 8.9% in 2009, while Gross Domestic Savings
touched an all time high of 33%.
 Open sky benefits: The opening up of the aviation industry in India brings exciting
opportunities for the hotel industry (airlines transport around 80% of international
tourists).
 Forign Trade Policy: Hotels and Restaurants are allowed to import duty free
equipments and other items including liquor, against their foreign exchange earnings
under the Served from India Scheme.
 New business opportunities: We believe that, over the next three to five years, the
biggest surge in accommodation demand is expected to come from commercial zones

45
that are being developed in metro suburbs and secondary markets. Mixed-use
development projects that include retail and commercial space have also gained
momentum in the last 24 months and will continue to be an attractive option. This
provides a unique opportunity for hospitality projects. Also the new concept, which is
going to gain importance, is that of budget hotels.
 Hotel Industry in India currently has supply of 110,000 rooms and there is a shortage
of 150,000 rooms fueling hotel room rates across India. According to estimates
demand is going to exceed supply by at least 100% over the next 2 years.
 It is forecasted to be the number 3 market in the world by 2015 for hospitality and
tourism.
 Demand between the national and the inbound tourists can be easily managed due to
difference in the period of holidays. For international tourists the peak season for
arrival is between September to March when the climatic conditions are suitable
where as the national tourist waits for school holidays, generally the summer months.
 In the long-term the hotel industry in India has latent potential for growth. This is
because India is an ideal destination for tourists as it is the only country with the most
diverse topography. For India, the inbound tourists are a mere 0.49% of the global
figures. This number is expected to increase at a phenomenal rate thus pushing up the
demand for the hotel industry.
 The share of convention or meetings tourism is miniscule in India in comparison to
international standards, which accounts for over 20.0% of all international arrivals.
 International hospitality chains are expected to acquire local players to increase their
presence in the country.
 Domestic and international players are expected to form strategic alliances and
partnerships with regional players to expand in the country, reduce risk and optimize
resources.
 Below is the table representing new hotel opportunities across the country in next five
years.

46
Mid-Market
Inc in Develop First Budget
Cities Existing Supply Proposed Five yrs ment Luxury Class Extended Stay
Agra 1,439 510 35% 41% 11.8% 22.0% 52.5% 13.7%
Pune 2,672 5,196 194% 67% 14.5% 31.7% 34.1% 19.7%
Bengaluru 5,597 9,819 175% 65% 16.9% 37.7% 22.7% 15.5%
Chandigarh 653 1,482 227% 76% 11.1% 22.1% 54.7% 12.1%
Chennai 3,806 5,995 158% 72% 24.1% 28.0% 22.3% 13.7%
Delhi NCR 11,018 20,021 182% 75% 26.7% 31.4% 25.4% 13.9%
Goa 3,288 1,736 53% 41% 18.2% 49.1% 24.8% 7.9%
Hyderabad 3,782 5,302 140% 63% 29.4% 28.3% 18.2% 20.0%
Jaipur 2,472 2,664 108% 77% 8.2% 61.3% 22.5% 8.0%
Kolkata 1,520 3,481 229% 51% 28.0% 37.2% 34.9% 0.0%
Mumbai 9,877 7,477 76% 60% 42.5% 22.6% 20.6% 14.4%
Other Cities 14,759 23,427 159% 65% 2.3% 28.7% 47.5% 20.5%
Total 62,404 89,449 143% 67% 18.0% 32.0% 31.0% 16.0%
THREATS
 Event risk: Dependency on foreign tourism can be a double-edged sword as travel
decisions are based on global patterns and events that happen elsewhere can have
serious impact the performance.
 Increasing competition: Global hospitality majors like the Four Seasons, Shangri-La
and Aman Resorts are all making their entry into the Indian market. They are not the
only ones who are turning their attention to India. The Hilton Group is deciding on a
comeback and has tied up with the Oberoi Group. Two other groups - the Carlson
Group and the Marriott chain are furiously hunting for new hotels in India's top cities.
This will increase the competition for the existing Indian hotel majors.
 Lack Of Infrastructure: India‘s poor domestic hospitality structure is leading to
threat a losing foreign tourist to other competing countries. Like terrorist strike, riots,
epidemics, political uncertainity, slowdown in reforms etc.
 Growing Land Cost: Land costs have become increasingly important for any project,
accounting for around 30.0-50.0% of the total development cost, as opposed to to
about 15.0-20.0% internationally.
 Regulatory Hurdles: Compliance with a number of regulations related to the
preparation and sale of food and beverages, and various laws and regulations
governing employee relationships. Hotel owners and operators need to obtain multiple
licenses, permits and authorizations, including local land-use permits, building and
zoning permits, environmental, and safety permits and liquor licenses.
 Customer expectation: With the emergence of India on global travel map, expectation
of customer are arising, making companies focus on customer loyalty and repeat
purchase.
 Image of the country: The competition from neighboring countries and negative
perceptions about the Indian tourism product constrains the growth of tourism. The
47
image of India as a country overrun by poverty, political instability, safety concerns

and diseases also harms the tourism industry.
 Manual Bach End: The majority of the operations data in a hotel is filed in manual
log books or is not tracked. Although most reputed chains have implemented IT
systems for property management and reservations.
 Human Resource Development: The sector has been focusing on the development of
white collar jobs as opposed to blue collar jobs, leading to a shortage of blue collar
employees, which might pose various threats to the industry.
 Shortage of Skilled Labours: The lack of a quality workforce and low retention
levels of good professionals at different skill levels is hampering the growth of the
hospitality industry.

48
The hotel industry in India is going through an interesting phase. One of the major reasons for
the increase in demand for hotel rooms in the country is the boom in the overall economy and
high growth in sectors like information technology, telecom, retail and real estate. Rising
stock market and new business opportunities are also attracting hordes of foreign investors
and international corporate travellers to look for business opportunities in the country.
Development of new products

Emergence of newer concepts and forms is also aiding growth in the industry. ―Bed and
Breakfast‖ is one such recent concept in the Indian market. To tap this potential, GoI is
recognising spare rooms available with various home owners by classifying these facilities as
the ―Incredible India Bed and Breakfast Establishments‖.These newer forms of tourism —
ecotourism, agritourism, cruise tourism — are still at a nascent stage and they hold immense
potential. Once adequate measures are taken, these forms of hospitality can drive strong
growth in the industry. In line with these new concepts and taking into account the
requirements of different types of travelers, hotel companies are offering customised and
attractive accomdation packages.The popularity of India as a major medical destination has
also aided growth in the hotel industry in cities such as Delhi and Gurgaon. Many people
from the developed countries come to India for the rejuvenation promised by yoga and
49
Ayurvedic treatments. Furthermore, a nice blend of top-class medical expertise at attractive

prices is enabling more Indian corporate hospitals to get patients from the developed nations.
Most common treatments for which foreigners come to India are heart surgery, knee
transplant, cosmetic surgery and dental care.
Hosting of international events
Events such as trade fairs, exhibitions, and sports events tend to bring about higher tourist
movement mutuating growth in Hotel Industry. International events held in the country lead
to higher inbound hospitality

Guest Feedback Program
The best way to know how well the hotel is doing is to ask guests. The Grand Five Star
Hotel will provide evaluation tool that our properties can easily administer to our guests, in
order to have most effectively measure performance and engage in continuous quality
improvement. Our guest feedback program will provide immediate results, so that hotel can
take swift corrective action.
Quality Control Services
The Grand Five star Hotel will looks at operation of hotel from the guest perspective. It will
follow the path of the guest from the first encounter via phone or website through the entire
experience of their stay. The approach includes meaningful customer service decisions.
Safety Audit
The loss prevention specialists will be trained to evaluate a property for total loss prevention
and assisting in the identification of ―hot spots‖ on safety. We will provide our portfolio of
hotels with complete training programs for hotel managers and line employees. In addition, we
wil provide manuals and programs for the ongoing maintenance of the property safety
program.
Manager on Duty Program
We will provide comprehensive, individualized "manager on duty programs," including policy

manuals, procedures and reports.
Employee Survey Program
Positive employee morale translates into positive customer experiences. The Grand five star
Deluxe Hotel survey tool will enable our hotels to gauge employee morale. This objective
survey determines areas of opportunity, weakness and strength among the property-level
workforce. It enables hotel general managers and executive staff to take constructive steps to
ensure maximum productivity and customer service.

CONCLUSION
Excellent product quality: This refers to the product ability to satisfy consumers or
customers need, both functionally and emotionally. This is the most important factor
if a brand is to be a winning brand. Users are getting smarter in their choice and will
not make purchase decision if they don’t trust in the quality of the product presented
to them.
Comprehensive and thorough communication: Hitting the right communication
channel and effectively delivering the message to potential buyers contributes to the
success of a brand. Even for a good product, if no one knows about it, talks about it or
discuss about it, then the chance of failure for that product is really high. Considering
the case of iPhone for example although there has been a lot of negative feedback
about the product recently, however, every time a new version of iPhone is launched,
the world holds it breath and eagerly waits to see the great invention of Apple. This is
achieving through mastery in communication. Despite that, the product must be
strong, reliable and good all by itself in order for consumers to test out and trust what
being said in the communication channel.

REFERENCES
 1. 18/06/2012 The Peoples Government of Chang’an Town , [online]

Available at: https://www.booking.com/hotel/in/jarnail-inn-
residency.en-gb.html?aid=356980;label=gog235jc-
1DCAsobEIVamFybmFpbC1pbm4tcmVzaWRlbmN5SDNYA2hsiAE
BmAEJuAEGyAEM2AED6AEBiAIBqAIDuALwt8aOBsACAdICJD
NkY2JiYjg4LWRkY2QtNGEyMC04MWI1LWE1MjNkNWE4NGVj
NNgCBOACAQ;sid=229924ba78d8affe94d3d43c80c43711;dist=0&k
eep_landing=1&sb_price_type=total&type=total& 2. Apr 4, 2013,
[online] Available at:
 http://www.assignmentpoint.com/business/internship-report-on-
marketing-strategies-of-berger-paints-bangladesh-limited.html
 3. Dec 25, 2012, [online] Available at:

 http://global.oppo.com/about/
 4. Keller, D. P., 2008. Pearson education, Inc and Dorling Kindersley
publishing, Inc.
 5. 15/12/2003, [online] Available at:

 http://csc.hcmiu.edu.vn:8080/dspace/bitstream/handle/123456789/101
5/022001074%20-%20Phuc,%20Tran%20Nguyen.pdf?sequence=1

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CKD INSTITUTE OF MANAGEMENT AND

1 Project Report of Hotel Jarnail Inn Residency

marketing coordinator at of Hotel Jarnail Inn

2 Project Report of Hotel Jarnail Inn Residency

3 Project Report of Hotel Jarnail Inn Residency

2. Service of Hotel 13-16

3. Layout Plans 17-18

4. Industrial Scenario 19-23

5. Employment Opportunities 24-25

6. Department of Hotel 26-29

7. Market Study 30-43

8. Swot Analysis 44-50

4 Project Report of Hotel Jarnail Inn Residency

5 Project Report of Hotel Jarnail Inn Residency

Hotel Jarnail Inn Residency

TO WHOMSOEVER IT MAY CONCERN

6 Project Report of Hotel Jarnail Inn Residency

 To be an organization which aims at leadership in the hospitality industry by

7 Project Report of The Grand Five Star Deluxe Hotel

8 Project Report of The Grand Five Star Deluxe Hotel

 24-hours Room Services.

OVERVIEW OF HOTEL INDUSTRY:

Number of Hotels – 2010

Hotel categories No. of Hotels No. of Rooms

5 star deluxe/5 star 165 43,965

4 Star 770 134 20

3 Star 505 30,100

2 Star 495 22,950

1 Star 260 10,900

10 Project Report of The Grand Five Star Deluxe Hotel

Total 8,707 1,32,885

LOCATION OF THE HOTEL

The Hotel stands just a few minutes from all the

 Just 1.3 km from Amritsar Bus Stand.

11 Project Report of The Grand Five Star Deluxe Hotel

4.1 General Guest Services:

13 Project Report of The Grand Five Star Deluxe Hotel

5.2 Fitness Room:

5.3 Business Centers:

14 Project Report of The Grand Five Star Deluxe Hotel

5.5 Conference Hall

5.6 Rooms & Suites

15 Project Report of The Grand Five Star Deluxe Hotel

5.8 Lounge Bars

5.9 Kids Arena

16 Project Report of The Grand Five Star Deluxe Hotel

5.10.1 Floor Plan Studio of 402 Sq. Ft

5.10.2 One Bedroom & One Bath Room of 558 Sq ft.

17 Project Report of The Grand Five Star Deluxe Hotel

5.10.4 Presidential Suites 3 Bedrooms 1340 Sq. ft

18 Project Report of The Grand Five Star Deluxe Hotel

Current Occupancy Situation of Hotel in Gurgaon and Delhi

 Hotel Imperial In Delhi-99.57%

19 Project Report of The Grand Five Star Deluxe Hotel

20 Project Report of The Grand Five Star Deluxe Hotel

6.2 COMPARABLE COMPANY ANALYSIS

Hotel 110 97 29.5% NM 8.17x 38.7x 21.8x 15.3x NM 31.6x 20.3x

22 Project Report of The Grand Five Star Deluxe Hotel

For arriving at a Net Asset Value

23 Project Report of The Grand Five Star Deluxe Hotel

24 Project Report of The Grand Five Star Deluxe Hotel

7.1 Employment in Different Department in industry

7.2 Increasing Employment Opportunities in Industry