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Hospitality Services In India

Presented by
Dr. Sanjay Manocha

  wherein  the  host  receives  the  guest  with  goodwill.Hospitality Services The word hospitality comes from the French term hospice. In India hospitality is based on the principle Atithi Devo Bhava. either socially or commercially. visitors. . The  Hospitality  Industry  is  comprised  of  those  businesses  which  practice  the  act  of  being  hospitable.  Hospitality is the cordial and generous reception and entertainment of  guests or strangers.  From this stems the Indian practice of graciousness towards guests at  home and in all social situations. or strangers.  including  the  reception and entertainment of guests.  meaning "the guest is God".  those  businesses  which  are  characterized by generosity and friendliness to guests. meaning “to provide care/shelter for travelers.” Hospitality refers  to  the  relationship  between  a  guest  and  a  host.

the Future Hospitality Industry leaders Hospitality industry is an exciting place to be: • • • • It’s fascinating It’s fun It offers competitive pay It offers advancement opportunities  Works to create memories  Everyday guests rely on us for service  Passion is in the service element  People with a service spirit are happy to do something extra to  make the guest’s experience memorable .Welcome to You.

festivals. bars. etc. train. etc. Retail Stores -such as A gift shop or souvenir shops. resorts. etc. 2. 5. Lodging Operations -such as hotels. Transportation Services -such as taxi. Activities -such as recreations. Food and Beverage Operations -such as restaurants. 4.Components of Hospitality Industry 1. motels etc. . cruise ships. etc. 3.

 due to each guest’s unique demands  There is also the perishability of our product – For example.40 rooms in inventory.Characteristics of the Hospitality Industry Our services are mostly intangible—the guest cannot “test-drive”  a night’s stay or “taste the steak” before dining – The products are for use. but we sell  only 1.20 rooms. not possession There is inseparability of production and consumption of the  service product. . What do we do with the 20 unsold rooms?  Nothing—we lose 20 room nights and the revenue. we have 1.

Characteristics of the Hospitality Industry The hospitality industry is open 365 days 24 hours a day. The industry relies heavily on shift work and sometimes hours  extend beyond the normal work day There are four basic shifts: – 7:00AM to 3:00PM – 10:00AM to 6:00PM – 3:00PM to 11:00PM – 11:00PM to 7:00AM .

 The Ministry of Tourism’s vision is to achieve  3. the domestic travel visits increased by a CAGR (Compounded  Annual Growth rate) of 14. the number rose to 1. Increasing Domestic Travel Visits and Foreign Travel Arrivals (FTAs):  From 269.22 Bn travel visits by 2022 with a compounded annual growth rate of 12% . the hospitality sector contributed  ~3% of the inflow.Growth Drivers of Indian Hospitality Industry External Drivers 1.   The hospitality sector requires over US$ 10 Bn investment in the coming five years  for which the government is relying on FDI by making regulatory changes in-line  with the past investment trends  2. FDI Inflow:  Out of the total FDI inflow in the last decade.04 Bn in  2012.41%.   Over the last decade.60 Mn domestic travel visits in 2002.

285 crore (US$  1. . Online hotel bookings in India are expected to double by 2016 due  to the increasing penetration of the internet and smart phones.982 tourists registering a year-on-year growth  of 137.2 per cent year-on-year to Rs 10.7 per cent.52 billion).Growth Drivers of Indian Hospitality Industry The number of Foreign Tourist Arrivals (FTAs) has grown at a  CAGR of 3.7 per cent to 5. The number of tourists arriving on e-Tourist Visa during June 2016  reached a total of 36.29 lakh year-on-year in May 2016.  Foreign Exchange Earnings (FEEs) during the month of May 2016  grew at a rate of 8.

 Cox & Kings and SOTC have tie-ups  with ICICI Bank.   The outstanding plastic cards in 2007 were ~130 Mn and in 2012.   35% of those who use plastic cards use it for travel and dining New Schemes for easy Finance  Players such as Thomas Cook. Changing Consumer Dynamics and New Schemes for easy Finance: Changing Consumer Dynamics  India has the second largest plastic cards base in the Asia – Pacific  region.   These banks also offer a basket of products such as personal loans for  the purposes of business. CitiBank and Kotak Mahindra to offer “holiday  now…pay later” schemes. the  number rose to more than double at ~296 Mn cards. wellness or sports travel  .Growth Drivers of Indian Hospitality Industry 3.

 the room rents have simply sky rocketed.000 rooms. whereas the requirement of rooms in India is estimated  at more than 2.28. Demand-Supply Gap:  Statistics on the demand and supply for hotel rooms indicate that India  currently has around 1.Growth Drivers of Indian Hospitality Industry Internal Drivers 1.000 hotel rooms spread across the various  hotel categories.   This is especially the case with mid segment and budget hotel  categories where a large gap in supply exists at the moment . In metro cities.   The impact of this demand and supply gap is felt by way of increased  room tariff.00.

 there are other internal factors that  drive growth for the industry.   Healthy performance of the services sector (specially IT and ITes) has led to  increased number of business travelers (both domestic and international) in the  country which makes it imperative for such companies to either build their own  hospitality infrastructure or use hotels etc.Growth Drivers of Indian Hospitality Industry 2.000 and Wipro has 500 rooms Low Cost Carriers  Cheap Air fares boost tourism and encourage people to travel . other such examples are as under: Internal Diversification  Emaar Group of Dubai and Armani Brand have launched boutique luxury  hotels in India IT Companies  Infosys has a room inventory of 13. New Entrants in the Sector:  Apart from the demand and supply gap.

 India is the ninth largest civil aviation market in the world in 2014.The Future of Hospitality Services The Indian economy continues to integrate with the world economy.  Over the next decade the market could reach 338 million domestic and  85 million international passengers. business meets and holiday  seekers. bringing in its  wake transit travelers.  The sector is forecasted to be the third largest aviation market globally  by 2020. the advantages of conducting business with and in India are  enormous.  This has resulted in creation of variety of jobs in India. . business travelers.  India’s  aviation market caters to 118 million domestic and 44 million  international passengers in 2014.  Therefore.

 and three more luxury hotels in  Hyderabad. Ahmedabad and Kolkata which will be completed in the next  four years. thus increasing the total number of hotels to 15 .Government Initiatives The Indian government has realised the country’s potential in the tourism  industry and has taken several steps to make India a global tourism hub. The Union Cabinet has approved the signing of Memorandum of  Understanding between the Ministry of Tourism of India and the Ministry of  Trade Industry and Tourism of Colombia in order to boost cooperation in  the field of tourism between the two countries.  Some of the major initiatives taken by the Government of India to give a boost  to the tourism and hospitality sector of India are as follows: ITC Ltd has renewed its 40-year partnership with Starwood Hotels &  Resorts to operate 11 luxury hotels in India. . The e-Tourist Visa (e-TV) scheme has been extended to 37 more countries  thereby taking the total count of countries under the scheme to 150  countries.

 Fairs and Festivals & Rural  Tourism. . Under ‘Project Mausam’ the Government of India has proposed to establish cross cultural  linkages and to revive historic maritime cultural and economic ties  with 39 Indian Ocean  countries. The 12 number of cities in the first phase are  Varanasi. Kanchipuram. Amritsar. which  includes projects relating to Product/Infrastructure Development for Destinations and  Circuits (PIDDC). Warangal. Badami. Amaravati.Government Initiatives The Central Government has given its approval for signing of a  Memorandum of  Understanding (MoU) between India and Cambodia for cooperation in the field of tourism  with a view to promote bilateral tourism  between the two countries. Human Resource Development (HRD). Ajmer.. US$ 79. Ministry of Tourism has sanctioned Rs 844. Gaya.e. The Government of India has made a provision of Rs 500 crore i. Vellankani.26 million)  to States and  Union Territories for developing tourism destinations and circuits during FY 2014-15.17 million  for  the first phase of the National Heritage City Development and Augmentation Yojana  (HRIDAY).  Mathura. Puri and Dwarka  Government of India plans to cover 150 countries under e-visa scheme by the end of the year  besides opening an airport in the NCR region in order to ease the pressure on Delhi airport.96 crore (US$ 125.

Investments The tourism and hospitality sector is among the top 10 sectors in India to attract the highest Foreign Direct Investment (FDI). . With the rise in the number of global tourists and realising India’s potential. Some of the recent investments in this sector are as follows: Marriott International Inc. Calicut and Jaipur. Keys Hotels. During the period April 2000March 2016. have formed a joint venture to build five luxury hotels and manage another 15 luxury hotels in India by 2030. Japanese conglomerate SoftBank will lead the Rs 630 crore (US$ 93. according to the data released by Department of Industrial Policy and Promotion (DIPP). Steigenberger Hotels. and further add up to 10 Keys Hotels in the country by the end of FY 2017. a premium brand of Berggruen Hotels . the US-based hotel chain. including prominent cities in Uttar Pradesh like Kanpur. a German luxury hotel company. Varanasi and Agra. many companies have invested in the tourism and hospitality sector. is now looking for expanding its operations in North India.4 million) funding round in Gurgaon based OYO Rooms. plans to launch three new hotels in India at Vishakhapatnam. and MBD Group . the hotel and tourism sector attracted around US$ 9.23 billion of FDI. a Delhi-based firm which runs 5-star Radisson Hotels in Noida and Ludhiana.

Travel Tripper.Investments Stayzilla. a US-based hotel technology firm. which will serve as a development and client service centre for the company's worldwide operations.6 per cent. which allows Ctrip to increase its share in MakeMyTrip up to 26. India's largest branded network of hotels. and will together look to focus on innovating the online travel segment. has entered the Indian market by setting up its second global delivery centre outside the US in Ctrip. China's largest travel portal. .37 million) to acquire an equity stake in Gurgaon-based hotel development and investment start-up SAMHI Hotels which will help fund SAMHI's expansion plans. Global investment banking major Goldman Sachs has invested Rs 441 crore (US$ 65. has bought a stake in India's largest travel portal MakeMyTrip for US$ 180 million via convertible bonds. MakeMyTrip will acquire the travel planning website Mygola and its assets for an undisclosed sum. which will be used to improve product. technology and marketing initiatives for its alternate stay business. to provide standardised accommodation options to train travellers through its convenient booking platform. a budget hotels. has raised over US$ 13 million from Matrix Partners and Nexus Ventures. Indian Railway Catering and Tourism Corporation (IRCTC) has partnered with OYO Rooms.

By capturing. provide personalized services to customer based on their behavior and responses.CUSTOMER RELATIONSHIP MANAGEMENT IN HOSPITALITY SECTOR “Customer relationship management (CRM) is a business strategy to select and manage the most valuable customer relationships. tracking and analyzing customer service data. . CRM is a powerful management tool that can be used to exploit sales potential and maximize the value of the customer to the hospitality industry. CRM enables a firm to identify new performance issues. Customer data will help a firm in identifying new product development opportunities. Customers are the backbone of any kind of business activities. maintaining relationship with them yields better result.

CUSTOMER RELATIONSHIP MANAGEMENT IN HOSPITALITY SECTOR Benefits of using CRM in Hospitality Industry CRM has some obvious benefits for the hotel industry.  . The principal benefits that come to mind are fairly obvious –  Increased customer satisfaction and retention. but these are not especially different than they are for any other industry.   Increased likelihood of referral business.   increased repeat business.    Increased share of category spend.  These results come from a strategy of strengthening customer relationships by  constantly providing customer value leading to satisfaction.

CUSTOMER RELATIONSHIP MANAGEMENT IN HOSPITALITY SECTOR A major benefit can be the development of better relations with your existing customers.  which can lead to:  • increased sales through better timing by anticipating needs based on historic trends  • identifying needs more effectively by understanding specific customer requirements  • cross-selling of other products by highlighting and suggesting alternatives or  enhancements  • identifying which of your customers are profitable and which are not  This can lead to better marketing of your products or services by focusing on:  • effective targeted marketing communications aimed specifically at customer needs  • a more personal approach and the development of new or improved products and  services in order to win more business in the future  Ultimately this could lead to:  • enhanced customer satisfaction and retention. ensuring that your good reputation in the  marketplace continues to grow  .

 Businesses need to be aware that it’s becoming ever more  popular for guests to leave a review of their experience on a number of feedback sites. Be realistic Remember to be realistic. Hospitality outlets need to me mindful of  this as bad feedback can be extremely damaging.  whether their experience was a good or bad one. if  you can exceed expectation where possible this is always a good tool to help gain  referrals.  where it matters the most. . For the customer to return all you need to do is deliver what was promised. don’t say that it is. and excites them only to disappointed  when they find out it’s more of a three star standard. don’t big your business up if it’s not 5 star. Deliver on your promise Any business needs to keep customers and clients happy. Customer expectations Satisfied customers are looking for a memorable experience and an energetic service.  as this only sets expectations for the customer. but in the hospitality industry  it’s so important to keep guests engaged in order for repeat business and for referral  purposes.CUSTOMER RELATIONSHIP MANAGEMENT IN HOSPITALITY SECTOR Here are five top tips from industry experts to help ensure business in the hospitality industry provide their customers with a positive and memorable service.

 customers  are the most important part of the business without them what would you have – focus on  them at all times – and they will be happy. this always tends to impress. Feedback is important If a customer is unfortunate enough to have a bad experience. provide  additional items where possible. go the extra mile if needs be. you need to  make sure it’s made easy and clear for them to tell you about it. Just remember. Try hard to fix the problem – communication is key – and remember keep  calm and try to resolve the situation so the customer ultimately goes away happy. At the same time be  understanding and allow them to get it off their chest to you. for any reason. .CUSTOMER RELATIONSHIP MANAGEMENT IN HOSPITALITY SECTOR Customer loyalty Remember happy customers are loyal customers. so they’re not inclined to tell  someone else.

Classification of Hotels 1. Medium Scale (150 to 299 rooms) c. According to Size: a. Large Scale (300 and above) . Small Scale (under 150 rooms) b.

k. h. j. According to Target Market: a. d.2. Commercial Hotels Airport Hotels Suite Hotels Residential Hotels Resort Hotels Bed and Breakfast Hotels Time-Share and Condominium Casino Hotels Conference Centers Convention Hotels Alternative Lodging Properties . i. e. c. g. b. f.

World-Class Service b. Medium-Range Service c.3. Economy / Limited Service . According to Levels of Service a.

Independent b. Chain Hotels .Management Contract .Franchise . According to Type of Ownership and Affiliation a.4.

5. Group Travel d. Buying Influences . Business Travel b. Reasons for Traveling a. Pleasure Travel c.

Standard d. According to Quality Ranking a.6. First Class c. Deluxe b. Economy .

Center City b. Resort d. Highway . Airport e.7. Suburban c. According to Location a.

A hotel’s mission statement should address the interests of three diverse groups: guests. . Objectives Are those ends an organization must achieve to effectively carry out its mission. It expresses the underlying philosophy that gives meaning and direction to hotel policies. it calls for levels of achievement which can be observed and measured. An objective is more specific than a mission. and employees. Hotel Organization Mission Statement Defines the unique purpose that sets one hotel or hotel company apart from others.D. management.

they direct the actions of managers and employees and the functions of the department or division towards fulfilling the hotel’s mission. It shows where each position fits in the overall organization as well as where divisions of responsibility and lines of authority lie. Solid lines on the chart indicate directline accountability. Organizational Chart A schematic representation of the relationships between positions within the organization. . but not direct reporting relationship.Goals Define the purpose of a department or division. Dotted lines indicate relationships that involve a high degree of cooperation and communication. Strategies Are the methods a department or division plans to use to achieve its goals.

these do not generate direct revenue. room service and retail stores). but provide important backing for the hotel’s revenue centers (housekeeping. . and human resources division). Support Centers Revenue Centers . accounting. thereby generating revenue for the hotel (front office. Support Centers . food and beverage outlets. Classification of Functional Areas: Revenue vs.those that sells goods or services to guests.E. engineering and maintenance.

and human resources).areas that involves guest and employee interaction (front office. and lounges). . Back-of-the-house . engineering and maintenance.areas where interaction between guests and employees is less common (housekeeping. Back-of-the-house Front-of-the-house . restaurants. accounting.Front-of-the-house vs.

5. 3. Hotel Divisions: 1.Casino . Food and Beverage Division Sales and Marketing Division Accounting Division Engineering and Maintenance Security Division Human Resource Division Rooms Division -Housekeeping -Front Office Other Divisions: -Retail Outlets . 2.Recreation .F. 4. 7. 6. 8.