HOTEL & HOSPITALITY SERVICES

1
Christ University, Bangalore
Flow of Presentation

• Introduction
• Evolution of Hotel
Industry
• Development of Hotel
Facilities
• The Guest Cycle
• Meaning of
Hospitality
• Marketing Mix of
Hospitality Industry

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Evolution of Hotels

• From time immemorial, we observe that many types of

facilities were provided to the pilgrims to stay in
pilgrim places

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Evolution of Hotels

• Dharmashalas were the main

places to stay in pilgrim
centers
• The facilities in these
dharmashalas were provided
by local philanthropists or by
temple authorities free of
cost or on a minimum charge
to pilgrims
• These facilities were
provided by all religions of
the world

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Evolution of Hotels

• Churches, cathedrals and

Buddhist monasteries were
providing facilities to the
pilgrims

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Evolution of Hotels

• Inns and taverns

emerged on the
scene and were
doing well up to the
downfall of Roman
empire
• Inns could not do
well as travel of
traders were
infrequent

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Evolution of Hotels

• The crusades in Europe in 1095

AD laid the foundation for social
revolution
• This provided a firm base for
the development of trade and
business
• The renaissance (revival of art
and letters under influence of
classical models in 14th and 16th
century) which first started in
Italy, gradually spread to Europe
• In this period, inn- keeping
became a prosperous activity
and was quite remunerative for
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Evolution of Hotels

• The first tavern came into being

in 1634 in the USA
• The “Hotel” emerged from these
taverns
• In the beginning of 19th century,
the term “Hotel” was accepted to
describe “a place where people
stayed for the night and took
their meals on a payment basis”
• Then onwards, hotel assumed
different dimensions of service
and emerged as an industry

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Evolution of Hotels

• Factors contributing for the

growth of hotel industry are:
1. Development of transport
2. Adoption of information
technology in the business world
3. Strong industrialization and
urbanization
4. Emerging corporate culture and
domination of corporate sector
in national and international
economies

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Evolution of Hotels

• All these factors contributed for

the increased activities in:
• The travel of officials on
government and private business
• The visits of business magnets
on trade promotion mission
• Visits of foreign peace missions
to different countries
• Visits of domestic and foreign
tourists for pleasure and other
research activities
• Visiting international events

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Evolution of Hotels

• A tendency has developed amongst

the people to stay and eat outside
• Hotels encourage such “eat out and
stay” habit of the people
• The hotels of current day provide
refined services to their guests
(consumers are called “Guests”)
• As guests demand quality service
without caring for payment, the
hoteliers have to apply management
principles to operate on professional
lines and have to adopt sound
marketing principles

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Evolution of Hotels

• The innovations in hotel marketing have taken place due to growing

significance of managerial proficiency in the hotel industry
• Every hotel service activity, today, is planned organized on
mechanical lines, controlled and automated

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Evolution of Hotels

• Modern hotels, besides providing basic facilities like boarding and

lodging, are engaging themselves on innovative activities like playing
the role of event managers of social functions and other government
and non- government business activities
• They provide venue and other facilities for conducting national and
international events of any size and magnitude
• Therefore, they have to manage their business with world class
professional excellence

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Hotel- The Concept

• “Primarily and
fundamentally, a hotel is an
establishment which
supplies boarding and
lodging not engaged in
inter- state commerce or in
any intra- state commerce,
competitive with or
affective inter- state
commerce- Stuart
McNamara for hotel
operators in the USA
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Hotel- The Concept

• “ It is a place for business to

gather. It is also considered
to be a place where tourists
stop, cease to be travelers
and become customers”-
Charles K. Jr. and others-
Tourism Planning and
Development (1979)

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Hotel- The Concept

• Thus, a hotel is “a public

place, governed by statutes
of the State, which provides
all possible facilities such as
food, living
accommodation,
entertainment, travel
facilities, sports and various
comfort services on paid
basis”

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Motel- The Concept

• Motel is a roadside hotel,

having rooms arranged
around a parking area,
serving especially motorists
• The term “Motel” is coined
by taking “MOTOR” and
“HOTEL”
• “MOT” of motor and “EL”
of hotel has become
“MOTEL”

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Motel- The Concept

• Thus Motel is a term used to

explain the hotel services
provided to motor travelers
who would like to have
short stay during travel, to
ease out monotony of travel
and make fresh journey
• Motels are located in road
side preferably by the side
of highways or road
junctions

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Hotel Facilities

• Hotels provide many

facilities to its users
• The facilities may be of two
types:
i. Core Facilities, and,
ii. Peripheral Services

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Core Facilities

 The core facilities are the

ones which are very
necessary for a
comfortable stay of the
guests (users)
 This includes
accommodation, food,
room, entertainment (TV,
Radio etc.) and other basic
amenities like parking of
vehicles, lounge for
relaxation, first aid
services, health care
services etc.
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Peripheral Services

 The peripheral services

include cultural shows,
shopping facilities,
personal care services such
as beauty parlors, hair
cutting salon, gymnasium,
jogging facility,
communication and
transport services such as
telephone, newspapers,
magazines, air, train and
bus reservation facilities,
car rentals etc.
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Guest Cycle (GC)

 This is a sequence of phases that

begins with pre- sale events,
continues through point- of- sale
activities and concludes with post-
sale
 This is a monitoring system of
guests of the hotel, through an
operation flow- chart to control the
guest transactions with the hotel

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Phases of Guest Cycle

 In each phase of GC,

activities have around
two main issues:
i. Guest Services, and,
ii. Guest Accounting

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Guest Services
 Guest Services
includes:
a) Reservation
b) Registration
c) Occupancy Services
d) Check- out and history

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Guest Accounting

 Guest Accounting
involves:
1. Establishment of
credits
2. Posting charges
3. Night auditing, and,
4. Settlement of accounts

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Phases of Guest Cycle

 The three phases of

Guest Cycle are:
1. Pre- sale (Pre- arrival)
2. Point of sale(Arrival
and Occupancy)
3. Post sale
(Departure/Check-out)

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Pre- arrival (Pre- sale)
• At the pre- arrival stage, the hotel must
create a Reservation Record for every
potential guest. Doing this initiates the hotel
guest cycle. Moreover, reservation records
help personalize guest services and
appropriately schedule needed staff and
facilities
• The reservation department should, then,
complete all the pre- registration activities
and prepare guest folios (applicable only for
automated systems). Doing so will
eventually maximize room sales by
accurately monitoring room availability and
forecasting room revenues
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Arrival
• At the arrival stage,
registration and rooming
functions takes place and
the hotel establishes a
business relationship
with the guest

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Occupancy
• At the occupancy stage, the front office
department shall co- ordinate guest services
in a timely and accurate manner

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Post sale (Departure)
• At the departure stage,
the guest shall be
walked out of the hotel
• Moreover, front office
clerks shall create guest
history record
• Finally, cashiers shall
settle guest account
outstanding balances

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Classification/ Grades of Hotels
• Hotel classification is very subjective
and standards can vary greatly from
country to country
• Some of the classifications done in
different countries are as follows:
 Europe Classification: In all the
countries of Europe, except in UK,
hotels are classified from one to five
star by a government agency or the
local tourist authority
 This ensures a uniform standard for
each star classification and prices
charged reflect the number of stars
awarded to each hotel
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Classification/ Grades of Hotels
• Australian Classification: Hotels and motels are graded in a star
rating system by the Australian Automobile Clubs
• They follow their own norms
• The star classification is similar to that of the UK

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Classification/ Grades of Hotels

• German Classification: In
Germany, the following categories
are made to exhibit the standards
offered in hotels:
 Tourist Hotels (Accommodation for
simple needs)
 Standard Hotels (Accommodation
for moderate needs)
 Comfort Hotels(Accommodation
for greater needs)
 First Class Hotels (Accommodation
for high needs)
 Luxury Hotels (Accommodation for
highest needs)
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Classification/ Grades of Hotels

• USA Classification:
 Superior Deluxe Hotels
 Deluxe Hotels
 Moderate Deluxe Hotels
 Superior First Class Hotels
 First Class Hotels
 Limited Service First Class Hotels
 Moderate First Class Hotels
 Superior Tourist Class Hotels
 Tourist Class
 Moderate Tourist Class

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Classification/ Grades of Hotels
• Indian Classification:
 The Hotel and Restaurant
Approval and Classification
Committee (HRACC) set up
by the Department of
Tourism classify the
functioning hotels under the
star system into six
categories from 1 to 5 Star
Deluxe
 A new category of Heritage
Hotels has also been
introduced since 1994

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Classification/ Grades of Hotels

• Heritage Hotels:
 The concept of Heritage Hotels
was introduced with a view to
converting the old palaces,
havelies, castles, forts and
residences built prior to 1950 into
accommodation units as these
traditional structures reflect the
ambience and lifestyle of the
bygone era and are immensely
popular with the tourists

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Classification/ Grades of Hotels

• Heritage Hotels are sub- classified

into the following categories:
 Heritage: This category covers
hotels in residences/ havelies/ hunting
lodges/ castles/ forts/ palaces built
prior to 1950 but after 1935
 Heritage Classic: This category
covers hotels in residences/ havelies/
hunting lodges/ castles/ forts/ palaces
built prior to 1935 but after 1920
 Heritage Grand: This category
covers hotels in residences/ havelies/
hunting lodges/ castles/ forts/ palaces
built prior to 1920
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