PROJECT

ON
HOTEL INDUSTRY
IN THE COURSE
SERVICE MARKETING
SUBMITTED BY
HARSHIL BUTANI
T.Y.B.M.S
TDMS011
SEMESTER V
UNDER THE GUIDANCE OF
DR. SWETA MISHRA
ACADEMIC YEAR
2022 - 2023
 CERTIFICATE
 
This is to certify that Mr. HARSHIL BUTANI of Third Year B.M.S., Div.: C,
Roll No. TYBMSC011 of Semester V (2022 - 2023) has successfully completed
the Project for the course Service Marketing on the topic HOTEL INDUSTRY
as per the guidelines of KES’ Shroff College of Arts and Commerce,
Kandivali(W), Mumbai-400067.

 
 

Teacher In-charge Principal

Dr. Sweta Mishra Dr. L. Bhushan
Asst. Professor
SR.NO NAME SIGN MARKS
ROLL
NO

1 11 HARSHIL
BUTANI

2 12 AYUSH
CHANDURAKAR
3 13
KHUSHAL
DANGODRA
4 14 HARSH DANI

5 15 HARSH DESAI
Q1) WHAT IS THE HOTEL SECTOR?
The hotel industry is the section of the service industry that deals with guest
accommodation or lodgings. By most definitions, the hotel industry refers not
only to hotels, but also to many other forms of overnight accommodation,
including hostels, motels, inns and guest houses. However, it does not usually
include long-term or permanent forms of accommodation. Due to the nature of
hotel services, it is closely associated with the travel and tourism industry.
Q2) HOW IS THE SECTOR? HOW MUCH IS IT
CONTRIBUTING TO THE GDP?
With the increasing middle income class consumers and their disposable
income, the hotel industry is witnessing an healthy growth and accounts for 7.5
percent of the total country's GDP. It is one of the fastest growing sectors of
Indian economy as every person on holidays or for office related work does
visit the hotel.
Q3) WHAT ALL DOES IT COVER?
 The hospitality industry is vast and can be broken down into separate sectors.
The top four sectors consist of; ‘Food and Beverage’, ‘Accommodation’,
‘Travel and Tourism’ and ‘Entertainment and Recreation’. Although the
industry is segmented, there is significant overlap to improve customer
experience. Below, we’ll explore these sectors and how they interact with each
other.

*Food and Beverage*

Food and Beverage is the largest of the four hospitality sectors in the UK, and is
integrated through all segments of the industry. For example, when a restaurant
is part of a hotel, the service it provides can enhance the guest experience by
presenting excellent food and first-class customer service.

There are different levels of service within the sector. Quick-service

establishments, which offer snack food, have fewer employees in comparison to
larger full-service restaurants because they rely on self-service. Restaurants
themselves hire differently depending on their style – fast-food and takeaway
restaurants tend to hire cheaper, lower-skilled people, whereas fine-dining
establishments need to secure more experienced staff.

*Accommodation*
The accommodation sector is incredibly broad, ranging from caravan grounds
right up to luxurious resorts. Essentially, any business that provides a place for
people to sleep overnight are all players in this industry.

These businesses market to other market segments based largely on location.

Those in cities target business people, long-stay visitors, backpackers, and
special travellers (government, airlines, and military). Resorts in more scenic
areas are mostly popular among holiday makers where they provide a space for
the customer to have a break from their ‘everyday’.

*Entertainment and Recreation*

Recreation is any activity that people do for rest, relaxation, and enjoyment. The
goal of recreation is to refresh a person's body and mind. The entertainment
industry relies on its consumers having disposable income. Entertainment
businesses such as cinemas or theatres and attractions such as zoos and
museums, spectator sports and participatory sports are all parts of the recreation
business.

*Travel and Tourism*

Many people consider tourism synonymous to hospitality, but it is in fact a
different sector within the hospitality industry. The major function of tourism is
to encourage people to travel in order for people to spend money on hospitality.

All other parts of hospitality rely heavily the success of this all-encompassing
sector. Without travel and tourism, all other businesses in any given that
location would not be able to grow or even sustain themselves.

You’ll find it hard to locate a business within hospitality that doesn’t combine
sectors together. Whether you spend a night away or take a trip to the cinema,
you will find that the segments work together to create a greater customer
experience. This is why studying a hospitality degree, which covers all four
sectors, is imperative for your ascension into the hospitality industry.
Q4) CURRENT STATE OF THE SECTOR:
The current state of hotel industry are, they are dealing with is huge impact, and
not yet predictable, on both revenue and supply chains. Decisions being taken to
shut down hotels, restaurants, theme parks, cinemas, not to mention the entire
disruptive effect of the travel ecosystem, all have a significant impact on
worldwide tourism. As the effects of COVID-19 spread across the entire world,
the primary focus for governments and businesses is the safety of their people.
Whilst this focus will continue, the implications for economic growth and
corporate profits have to lead to a sharp sell-off in equity markets across the
globe. We are proud to see that our hospitality and leisure clients, being the first
ones that experienced the extreme bad weather conditions, are moving quickly
and remain focussed to understand and quantify the operational and financial
impact for their business. The impact is huge, and not yet predictable, on both
revenue and supply chains. Decisions being taken to shut down hotels,
restaurants, theme parks, cinemas, not to mention the entire disruptive effect of
the travel ecosystem, all have a significant impact on worldwide tourism. As a
team, Operators and Investors are trying to mitigate the cash and working
capital issues, and stay in close contact with their stakeholders.

We are proud to see that this sector shows its maturity level: in working
together, showing their true hospitality commitments in helping out our society
where they can. For example by making their venue available for hospital beds
and hospital employees. The situation we are in also brings new business
models and opportunities, in defining for instance new delivery concepts,
human capital sharing platforms, initiatives in promoting the “staycation or
holistay concept” and the use of the less productive time to work on activities
that were normally pushed forward like asset counts, security plans, defining
standard operating procedures, social media plans etc. The good news is that our
colleagues in Asia already see a pick up in this sector, although only at the
starting point. This gives hope for the sector at this stage in time. Stay positive,
stay focused and stay alert on your financial situation.
Q5) FUTURE TRENDS:
Here’s a list of some commonly heard initiatives that are increasing in their
application around the world.

Smart hotels
Incorporating the Internet of Things (IoT) into a property is something that
excites guests. It offers them a high level of convenience and efficiency, and
also a sense of luxury. People are starting to incorporate tech like this in their
own homes so the demand for it in hotels is sure to increase.

Sustainable hotels
Generally, society is becoming more environmentally conscious as it becomes
clear sustainability is an important issue. These changing attitudes are filtering
into the way travellers choose their hotel. Sustainable hotels look at eco-friendly
construction, energy saving, waste management as priorities.

Robot staff
Some travellers may find it confronting to be served by a robot, others may
welcome the chance not to have to interact with humans when staying at their
hotel. More and more hotels are using robots in some capacity, to help automate
check-in and check-out, carry luggage and acts as concierges, or for room
service

Virtual Reality and Augmented Reality

These technologies are no longer the niche segments they once were. Extremely
popular already in gaming and entertainment as well as attractions, they can
also be quite useful to hotel customers. Virtual reality replaces the real world
with visual and audio input while augmented reality layers virtual elements onto
the real world. Customers who want to try before they buy can take virtual tours
of your property and even parts of the destination. With AR, a hotel might use
something like an interactive map to provide information to guests.

Unique brand experiences

Many hotels are now starting to differentiate their brand by doing something
unique with the way they design, layout, or outfit their property. Travellers are
looking more and more for cool, experiential hotel stays so anything a hotel can
do to provide a novelty factor is going to be at an advantage.

All of these trends are influenced and informed by greater societal trends. This
is why it’s so important for hoteliers to look at shifting away from the
traditional and embrace the radical if they want to maintain a healthy business.
There’ll always be a place for good old fashioned hospitality but they way it’s
delivered probably will need to alter.
Q6) NEW INNOVATIONS IN SECTOR
Next generation hospitality technology is already changing the way we feed
guests, market properties, and even enter rooms. Here are some ways to use
hospitality technology innovations and stay on the cutting edge of the latest
trends. 

16 Creative Ways Hoteliers Can Incorporate the Latest Hospitality Technology

Innovations.1. Mobile Door Keys
What It Is: Phones are replacing plastic cards as a way to access hotel rooms.
All guests have to do is download a mobile app and keep their phones or
devices handy. Because key cards have a history of being hit or miss
(demagnetization, getting misplaced, etc.), this hospitality technology
innovation elevates the guest experience with a more convenient tool they are
already accustomed to using. 2. Online Review Monitoring
What It Is: Most customers will interact with your brand in some way online
before they contact your hotel directly. That includes seeing your social media,
finding your hotel in search engine results, and, yes, reading review sites. The
best way to handle reviews (both positive and negative) is to respond to them
quickly and correct any pending issues as soon as possible while customers still
care enough to possibly update their comment. Tools like online review
monitoring give real time updates across all possible platforms so you can
provide better service faster than ever before. 3. Custom Travel Itinerary Apps 
What It Is: Big hotel chains are getting into personalized tech, which includes
tools that help customers make more informed choices during their stay. These
apps can list things to do both on and offsite, create a nice visual of the
itinerary, provide concierge-worthy recommendations, and even serve as a
direct booking platform for guest self-service. 4. Tech-Led Vegan and
Vegetarian Dining 
What It Is: Go beyond dietary preference and restriction notes to bring millions
of U.S. citizens dining solutions they crave. Plant-based food science has come
a long way, and enterprising hotels now offer guests vegan or vegetarian menus.
Some brands have even gone as far as creating vegan suites and vegan spa
packages. 5. Customer Service Texting 
What It Is: Most guests (about 67% of them) would rather text strangers than
call them. Which is why customer  service messaging programs are trending in
hospitality tech right now. Brands like the Shangri-LA are already finding
success with customer based texting since its addition to their services only a
few months ago. 6. AI Virtual Agents 
What It Is: Robots will not be replacing your front desk agents any time soon
but they can offer assistance for central reservations. The programs on the
market today can autonomously answer customer questions (with a high level of
user satisfaction), reduce labor associated with low ROI interactions, and help
your team focus on revenue related tasks. 7. Personal Voice Assistant Usage 
What It Is: If your rooms come with a voice assistant, you should consider
allowing your guests to use them in a new way – by connecting them to their
own personal accounts. It’s a move that has called data security into question in
the past, but brands like Westin say the change has been a hit.8. RFID Bracelets
for Self Service 
What It Is: These technology enhanced wristbands are already being used by
many resorts and attractions but smaller, independent hotel brands are also
making the switch. They assist guests with check-in services, securely store
payment information for cardless transactions, and help valet attendants provide
better service too.
Q7) GOVT SCHEMES REGARDING THIS SECTOR:
100% Foreign Direct Investment (FDI) in Hotels through Automatic Route
It permits 100% FDI to the hotel industry through the automatic route. The
automatic route connotes no requirement of any prior regulatory approval but
only post facto filing/intimation with the RBI. The term hotels also include
restaurants, beach resorts, and other tourist complexes providing
accommodation and/or catering and food facilities to tourists. Tourism-related
industry includes travel agencies, tour operating agencies and tourist transport
operating agencies, units providing facilities for cultural, adventure and wildlife
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 organisations.  
Served from India Scheme
Government of India has introduced “Served from India Scheme” to facilitate
exporter of various type of services. The objective of this scheme is to
accelerate growth in export of services so as to create a powerful and unique
‘Served From India’ brand, instantly recognised and respected the world over.
Under this scheme, it entitles the Hotels, Restaurants, Tourism and Transport
related Services with Duty Credit Scrip. The usage of “Duty Credit Scrip” is
mainly for import of any capital goods including spares, office equipment and
professional equipment, office furniture and consumables, it is part of their
main line of business. In the case of hotels and stand-alone restaurants, the
usage of duty credit entitlement is mainly for the import of food items and
alcoholic beverages.
Hotels of one-star and above (including managed hotels) and heritage hotels
approved by Department of Tourism and other Service providers in tourism
sector registered with Department of Tourism shall be entitled to 5% while
Stand-alone restaurants are entitled to 10% of foreign exchange earned by them
in preceding financial year.
Q8) CASE STUDY REGARDING THE HOTEL SECTOR:

Hospitality industry in India

With this piece, we take a look at the Hospitality industry in India. Unlike all
other pieces, today, we’ll start with the epitome of Indian Hospitality (that
became a Harvard case study), then move on to look at industry overview, the
scope of the industry, startups and trends, challenges faced during COVID and
then head on to look at a few examples of Indian hospitality in Marketing and
finally the future.

Let’s jump right into the piece.

India is possibly one of the most diverse and culturally vibrant countries in the
World. The traditions and the language change every 100 km, but the fact that
stays constant in every corner of this country, is that people give highest regards
to their guests (goes by the saying अतिथिदे वो भव) and believe in building
lasting relationships. This line is the driving force of the Hospitality Industry.
Why? Let’s start by taking an example – which is a Harvard case study. The Taj
Hotel.

Epitome of Indian Hospitality:

With the Financial crisis of 2008, there another event in 2008 that shook the
entire nation. Do you recall what brought Mumbai to its knees? It was the 26/11
terror attacks. The terrorists attacked Hotel Taj while it was brimming with
guests (both national and international). While the staff of the hotel could have
left to save their own lives, they stood inside the hotel. They took care of all the
guests and stayed there until all the guests were evacuated safely. As many as
11 employees of Taj Mumbai, a third of the hotel’s casualties—gave up their
lives while rescuing 1,200 to 1,500 guests.
This event became a case study at Harvard that aimed to analyze what created
this extreme level of hospitality and customer-centric culture of employees.

CONCLUSION
Globally, leisure and entertainment are seen to be growing industries. Stable
socio-political and economic conditions, coupled with an improvement in
infrastructure facilities (like roads and airports), will improve the sentiments of
the tourists towards India. If the above conditions are met, tourist arrivals can
increase substantially from the present levels. In such a situation, there will be a
surge in demand for rooms in tourist destinations