INTRODUCTION OF HOTEL

INDUSTRY
HISTORY OF HOTEL INDUSTRY
Hotels in early republic

Nineteenth century hotels

Hotels in the age of auto & air

travel
CLASSIFICATION OF HOTELS
MARKET SEGMENT PROPERTY TYPE
 Economy hotels  Motels

 Mid market hotels  Resorts

 All suit hotels  Boutique hotels

 Deluxe hotels  Chain hotels

OTHER CLASSIFICATION
LEVEL OF SERVICES

 World class services

 Mid range services

AWARDING OF CLASSES
IMPORTANCE OF HOTEL
INDUSTRY TO INDIAN
ECONOMY
 Largest foreign exchange earnings

 Level of growth in GDP(GROSS DOMASTIC

PRODUCT)

 Competitiveness as a cost effective destination

 Set to grow 15% a year

CASE STUDY
-ITC
 ITC -HOTEL

 India's second largest hotel chain

 Best-in-class in terms of:

(a) Internal Vitality
(b) Market Standing
(c) Profitability

 Pursue World class competitiveness in all

businesses and across the entire value chain
ITC-MARATHA

 redefines the concept of space for the corporate

leaders.

 ITC's Core Values are aimed at developing a

customer-focused, high-performance organization.

 Customized its hotels and has categorized them to

fulfill the service and budgetary needs of travelers.
 Hotel Facilities
oBroadband internet (Wi-Fi & Tele-adapt
enabled)
otelephone exchange with electronic
voice-mail and ISD
oShops and boutiques
oPersonalized vaults and mini-bars
oIn-room safes
o24 hour currency exchange
oDoctor on call
oTravel / Tour desk
The average allocation of budgeted costs for all
type of hotels is:

13% for land

11% for development and soft costs

 61% for site improvement and building construction

 12% for FF&E

3% for pre-opening and working capital

100% for total project costs

 ITC Pricing strategy

The Going rate pricing

caters to the need of all income groups of people

Focus on customer demand schedule

Fixed Assets

Freehold Land 9,33,38,120

Leasehold Land 22,50,462
Buildings 47,52,62,986
Licenced Properties 17,44,27,058
Plant and Machinery 79,80,31,963
Computers etc. 13,09,99,385
Furniture & Fixtures 35,16,58,658
Motor Vehicles etc. 3,80,70,502
2,06,40,39,134

Capital Work-in-Progress 4,13,65,196

Total 2,10,54,04,330
 Fixed Cost
Fixed Asset Depreciation 71,17,41,343

Salaries, Wages and Bonus 59,80,34,465

Training 98,12,764

Contribution to Provident and Other Funds 8,42,59,658

 
Workmen and Staff Welfare Expenses 10,19,78,394
 
Power and Fuel 16,44,62,799
Repairs
– Building 1,95,81,272
– Machinery 3,26,64,094
– Others 2,16,73,943
 
Advertising/Sales Promotion 5,14,49,278
 
Technical and Consultancy Fees 4,51,72,169
 
Legal Expenses 12,85,687
Total 1,84,21,15,866
Variable Cost

Consumption of Stores and Supplies 8,35,96,886

Commission paid to Travel Agents 34,95,784
Guest Supplies 4,15,78,210
Food, Beverage, Etc. Consumed 2,24,26,812
 
Postage, Telephone, Fax etc. 2,43,80,498
 
Electronic Data Processing 98,08,734
 
Miscellaneous Expenses 7,25,66,343
Total 25,78,53,267
 DELUXE
ROOMS

EXECUTIVE
ROOMS

PRESIDENTIAL
SUITE

MARATHA
SUITE
20% discount on Food
& Beverages, Spa &
Salon services (where
available)

20% discount on Food &

Beverage , Spa & Beauty
Parlour services(where
available) and one buffet lunch
for 2ADULTS & CHILD

Room & Breakfast for 2 adults,

20% discount on Food &
Beverages, Spa & Salon services
along with special spa
treatments