Hospit

ality Industry

OBJECTIES OF PROJECT:-

• To analyses the role and need of Hospitality & Catering as it is an

upcoming era of Hospitality.

• To know how Hospitality can be beneficial in growth of Indian

economy.

• To know about the emergence of Hospitality industry in International

market.

• To understand the nature of services rendered and various facilities

provided by Hospitality Industry.

• To know about the recent trends & services of main Hospitality

players in India.

• To understand the future prospects and challenges faced by

Hospitality Industry activity.

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History of hospitality industry

One of the fastest growing sectors of the economy of our time is the
hospitality industry. The hospitality industry alone is a multi-billion dollar
and growing enterprise. It is exciting, never boring and offers unlimited
opportunities. The hospitality industry is diverse enough for people to
work in different areas of interest and still be employed within the
hospitality industry. Think about this: It makes sense to prepare for a job
in which you have numerous opportunities for advancement, because it is
an economic advantage for you in the long run. The hospitality
industry pays those well who have prepared well.

“ Hospitality management involves the planning, organizing, directing and

controlling of human and material resources within the lodging,
restaurant, travel and tourism, institutional management, recreational
management and meeting and convention planning industries. All of these
separate yet related segments of the hospitality industry are interrelated
to deliver kind and generous services to guests. “

The hospitality industry is one of the oldest businesses in history. People

have always gone out to eat sometimes and traveled for work or leisure
purposes. However, the face of the hospitality industry has changed
drastically. Not only has the industry expanded to include areas such as
tourism and meeting and convention planning, but also the face of the
workforce in substantial positions has expanded to include all races and
colors. The explosion of growth in the hospitality industry demands highly
qualified people trained in hospitality management to fill rapidly opening
positions.

Although African Americans have had a wealth of experience in

hospitality, it has not always been positive. In the past African Americans
have usually performed in low-level managerial positions in hospitality

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operations holding positions from the lowest realm in service to now

having the realistic opportunity of becoming general managers.

The present hospitality industry is extraordinarily healthy and viable and

as a result offers excellent opportunities for African Americans in each of
the segments; restaurant management, lodging management,
recreational management, travel and tourism, meeting and convention
planning and institutional management. Scott announces good news: the
opportunities are there. The globalization of the hospitality industry
creates the availability of jobs in virtually every city in the world. Ed
Moore, Jr., regional recruiter for Applebee's International says the
restaurant industry is a wonderful field to be in, especially in the 90s. He
further states, oftentimes young adults think of flipping burgers when they
think of the business. That is not all there is to it. There are positions in
middle management as well as the corporate office. We are talking about
jobs that range from $26,000 to $100,000 plus.

This industry is very demanding but rewarding and appreciates those who
have paid their dues so to speak. Hospitality companies are looking for
confident, well-adjusted individuals with good communication and
interviewing skills. In his role as a regional recruiter, Ed Moore, Jr. states,
verbal skills are of concern and that students should learn how to
articulate well. However, he continues, one of the glaring areas of concern
that I have noticed is students are not ready for the interview. This is
something that you will need to practice with an experienced person or
professional.

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HOSPITALITY INDUSTRY – AN OVERVIEW

Hospitality is all about offering warmth to someone who looks for help at a
strange or unfriendly place. It refers to the process of receiving and
entertaining a guest with goodwill. Hospitality in the commercial context
refers to the activity of hotels, restaurants, catering, inn, resorts or clubs
who make a vocation of treating tourists.

Helped With unique efforts by government and all other stakeholders,

including hotel owners, resort managers, tour and travel operators and
employees who work in the sector, Indian hospitality industry has gained a
level of acceptance world over. It has yet to go miles for recognition as a
world leader of hospitality. Many take Indian hospitality service not for its
quality of service but India being a cheap destination for leisure tourism.

With unlimited tourism and untapped business prospects, in the coming

years Indian hospitality is seeing green pastures of growth. Availability of
qualified human resources and untapped geographical resources give
great prospects to the hospitality industry. The number of tourists coming
to India is growing year after year. Likewise, internal tourism is another
area with great potentials.

The hospitality industry is a 3.5 trillion dollar service sector within the
global economy. It is an umbrella term for a broad variety of service
industries including, but not limited to, hotels , food service, casinos, and
tourism. The hospitality industry is very diverse and global. The industry is
cyclical; dictated by the fluctuations that occur with an economy every
year.

Today hospitality sector is one of the fastest growing sectors in India. It is

expected to grow at the rate of 8% between 2007 and 2016. Many

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international hotels including Sheraton, Hyatt, Radisson, Meridien, Four

Seasons Regent, and Marriott International are already established in the
Indian markets and are still expanding.

Nowadays the travel and tourism industry is also included in hospitality

sector. The boom in travel and tourism has led to the further development
of hospitality industry.

The hospitality industry consists of companies within the food services ,

accommodations , recreation and entertainment sectors.

The hospitality industry is a several billion dollar industry that mostly

depends on the availability of leisure time and disposable income. A
hospitality unit is such a restaurant, hotel or even an amusement park
consists of multiple groups such as facility maintainance, direct
operations(servers, housekeepers, porters,kitchen workers,
bartenders,etc.) management, marketing and human resources.

Usage rate is an important variable for the hospitality industry. Just as a

factory owner would wish to have his or her productive asset in use as
much as possible ( as opposed to having to pay fixed costs while the
factory isint producing), so do restaurants, hotels and theme aprks seek to
maximize the number of customers they “process”.

In viewing various industries, “barriers to entry” by new comers and

competitive advantages between current players are very important.
Among other things , hospitality industry players find advantage in old
classics(location), initial and ongoing investment support (reflected in the
material upkeep of facilities and the luxuries located there in) , and
particular themes adopted by the marketing arm of the organization in
question ( such as a restaurant called the 51st fighter group that has a
WW2 theme in music and other environmental aspects). Very important is
also the characterstics of the personnel workin in direct contact with the
customers. The authenticity, professionalism and actual concern for the

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happiness and wellbeing of the customers that is communicated by

successful organizations is a clear competitive advantage.

In 2003-04 the hospitality industry contributed only 2% of

the GDP.

However, it is projected to grow at a rate of 8.8% between 2007-16, which

would place India as the second-fastest growing tourism market in the
world. This year the number of tourists visiting India is estimated to have
touchedthe figure of 4.4 million. With this huge figure, India is becoming
the hottest tourist destination. The arrival of foreign tourists has shown a
compounded annual growth of 6 per cent over the past 10 years. Besides,
travel and tourism is the second highest foreign exchange earner for
India. Moreover, it is also estimated that the tourism sector will account
for nearly 5.3 per cent of GDP and 5.4 per cent of total employment.

GDP Employment Visitor Export Personal T&T Capital Investment Govt.

Expenditure

Outlook for 2006 :- 7.80% 1.40% 10.90% 6.90 % 8.30% 7.70%

Outlook for 2007-2016 :- 6.60% 1.00% 7.80% 6.70% 7.80% 6.60%

ATITHI DEVO BHAVO (guest is God)- we have all heard this phrase
many times during our childhood from our parents and grand-parents. We
can also find its presence in the earliest Vedas and religious epics.
Hospitality is deep-rooted in our traditions and comes as an integral part
of our heritage. In very simple terms, hospitality is the art of being
warm to strangers and has been derived from the Latin word
hospitalitem, which means "friendliness to guests". The hospitality
industry covers a diverse range of establishments in the form of
accommodation, food and drinks. It includes hotels, motels, restaurants,
bars, ships, airlines and railways. The concept of hospitality business
started when people started traveling away on business and they needed
a place away from home which could cater to all their needs. Today
hospitality has evolved from the basic food and accommodation industry

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and taken a very important position in almost all businesses. In fact, it has
become a huge industry and drives economies across the globe. The
scope of hospitality/ service industry today is far more than one could
have ever imagined a few years back. Earlier people who graduated from
a Hotel School could get employed either in Hotels, Cruises or Airlines.

But service is the BUZZ word for all businesses today. Be it the Retail
Sector, Banking Industry, BPO, Telecom world, Real Estate or any other
sector having direct customer contact, a person with hospitality
background has an edge above the rest, because of their sheer capability
of understanding the needs of a customer better and handling difficult
customers/ situations efficiently. Hotel industry depends largely upon the
foreign tourist arrivals further classified into business travellers (around
65% of the total foreign tourists) and leisure travellers. The following
figures show that business as well as the leisure travellers (both domestic
and international) formed major clientele for hotels in 2004.Over the last
two years, the hotel industry has seen higher growth rates due to greater
number of tourist arrivals, higher occupancy rate (being around 75% in
FY'06) and significant increase in average room rate (ARR). The major
factors contributing to this growth include stable economic and political
conditions, booming service industry, FDI inflow, infrastructure
development, emphasis on tourism by the central as well as state
governments and tax rationalization initiatives to bring down the tax rates
in line with the international levels.

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Top players of the industry

The top players in hospitality sector include the following:

 ITC Hotels
 Indian Hotels Company Ltd. (The Taj Hotels Resorts & Palaces)
 Oberoi Hotels (East India Hotels)
 Hotel Leela Venture
 Asian Hotels Ltd.
 Hotel corporation of India
 ITDC hotels

Some of the main features of the Indian hotel industry include the
following:

 The industry is more dependent on metropolitan cities as they

account for 75% to 80% of the revenues, with Delhi and Mumbai
being on top.

 The average room rate (ARR) and occupancy rate (OC) are the two
most critical factors that determine profitability. ARR depends on
location, brand image, star rating, quality of facilities and services
offered. The occupancy rate depends on other seasonal factors.

 India is an ideal destination for tourists. Approximately 4.4 million

tourists visit India every year. Thus the growth prospects are very
high.

 In the hotel sector, a number of multinationals have strengthened

their presence. Players like Four Seasons are also likely to enter the
Indian market in the near future. Moreover, Indian hotel chains are
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also expanding internationally. A combination of all these factors

could result in a strong emergence of budget hotels, which could
potentially lower the cost of travel and related costs.

Classification of Hospitality industry

• 5 Star and 5 Star Deluxe. These are mainly situated in the

business districts of metro cities and cater to business travelers and
foreign tourists. These are considered to be very expensive. These
account for about 30% of the industry.

• Heritage Hotels. These are characterized by less capital

expenditure and greater affordability and include running hotels in
palaces, castles, forts, hunting lodges, etc.

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• Budget Hotels: Budget hotels cater mainly to domestic travelers

who favor reasonably priced accommodations with limited luxury.
These are characterized by special seasonal offers and good
services.

• Unclassified: These are low-priced motels spread throughout the

country. A low-pricing policy is their only selling point. This segment
accounts for about 19 % of the industry.

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CONTRIBUTION TO INDIAN ECONOMY

The Indian hospitality industry is going great guns presently, with high
operating margins and increase in the number of travellers visiting India -
both inbound and outbound. Thus, the only direction left for the sector
points upwards. However, what needs to be focussed on is the fact that
opportunities are not missed, which presently include the large gaps in
rooms supply as compared to demand.

 India has approximately 100,000 rooms only in totality, which is

lesser than that in Las Vegas, besides contributing to an insignificant
portion of the GDP - just 5.4 per cent says Sudeep Jain, executive
director of JLLM.

 In comparison to nations like China, Thailand and Malaysia where

the hospitality share ranges between 12 and 15 per cent, India's
growth potential is boundless.

 "By 2020, the hospitality and tourism sector would be a major

contributor to the Indian economy," says Jain. South Asia is and will
remain a must-visit destination and India is looking more and more
lucrative.

Within the nation, major contribution as destinations will be from the

growing tier I and II cities with a special emphasis on business hotels
across categories as well as the prime leisure destinations like Goa,
Rajasthan, etc, which will remain on the growth path, creating the aura for
India as a leisure destination. Accordingly, the needs of the traveller, will
be nothing less than perfection. Jain says, "They will be more discerning
and more value conscious." With an increase in choices available, they will
be less forgiving of service deficiencies. Guests will require higher levels
of service in the full-service segments, which will warrant greater training
requirements for hotel staff. The limited service hotels will require a
complete shift in the perception of customer service. Nevertheless, this is
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directly related to the travellers' travel persona. "The same person will
have different standards when he/she is on a business trip, versus an
escape with his partner versus a leisure trip with the family," he explains.

The driving force

Being part of a real estate money management and services company,

there are various driving factors for growth opportunities. It is believed
that if the country is able to sustain its economic growth specially in the
service sector, it will have a direct influence on the hotel industry. This is
directly related to the incoming foreign investments, not just in the
hotels but the economy as a whole. Also equally important is the fact that
India has now discovered the power of marketing and with
campaigns like Incredible India, there are also the various large scale
regional and global events like the upcoming Commonwealth Games,
Asian Games and the recent Indian Premiere League that builds interest
about the nation. "These are just external factors. The policies and
incentives that will be provided over the next decade could further act as
a catalyst to this industry," . Apart from these external factors there are
other factors where the industry can be given a great boost.

For instance if land prices became more realistic, the process of getting
approvals and licences to build and operate hotels are streamlined,
together with strong infrastructure development and investment and more
tax/levy incentives being provided to build hotels, it would prove very
fruitful for the industry. It is believed that there would be no stopping the
growth in the industry if these measures were undertaken. But the fact
remains that half of these changes will only occur if the government

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begins to take some proactive measures and provide the much needed
stimuli to further accelerate development.

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 STRENGTHS

1. Natural and cultural diversity :

India has a rich cultural heritage. The "unity in diversity" tag attracts
most tourists. The coastlines, sunny beaches, backwaters of Kerala, snow
capped Himalayas and the quiescent lakes are incredible.

2. Demand-supply gap :

Indian hotel industry is facing a mismatch between the demand and

supply of rooms leading to higher room rates and occupancy levels. With
the privilege of hosting Commonwealth Games 2010 there is more
demand of rooms in five star hotels. This has led to the rapid expansion of
the sector

3. Government support:

The government has realized the importance of tourism and has

proposed a budget of Rs. 540 crore for the development of the industry.
The priority is being given to the development of the infrastructure and of
new tourist destinations and circuits. The Department of Tourism (DOT)
has already started the "Incredible India" campaign for the promotion of
tourism in India.

4. Increase in the market share:

India's share in international tourism and hospitality market is expected

to increase over the long-term. New budget and star hotels are being

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established. Moreover, foreign hospitality players are heading towards

Indian markets.

 WEAKNESS

1. Poor support infrastructure:

Though the government is taking necessary steps, many more things

need to be done to improve the infrastructure. In 2003, the total
expenditure made in this regard was US $150 billion in China compared to
US$ 21 billion in India.

2. Slow implementation:

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.

3. Susceptible to political events:

The internal security scenario and social unrest also hamper the foreign
tourist arrival rates.

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 OPPORTUNITIES

1. Rising income:

Owing to the rise in income levels, Indians have more spare money to
spend, which is expected to enhance leisure tourism.

2. Open sky benefits:

With the open sky policy, the travel and tourism industry has seen an
increase in business. Increased airline activity has stimulated demand and
has helped improve the infrastructure. It has benefited both international
and domestic travels.

 THREATS

1. Fluctuations in international tourist arrivals:

The total dependency on foreign tourists can be risky, as there are wide
fluctuations in international tourism. Domestic tourism needs to be given
equal importance and measures should be taken to promote it.

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2 Increasing competition:

Several international majors like the Four Seasons, Shangri-La and Aman
Resorts are entering the Indian markets. Two other groups - the Carlson
Group and the Marriott chain - are also lookingforward to join this race.
This will increase the competition for the existing Indian hotel majors.

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TRENDS IN HOSPITALITY SECTOR

Trends that will shape the future of hospitality sector are:

1. Low Cost Carriers

2. Budget Hotels
3. Technology
4. Service apartments
5. Loyalty Travel

1. Low cost carriers:

Travelers in general are more price sensitive to airfare than they are to
hotel room rates. Often a low airfare will stimulate demand for travel
even if hotel prices are increasing. LCCs are a good option for business
travelers, as they have advantages like low costs, more options and
connectivity.

2. Budget hotels:

More than 50 per cent of occupancy of a majority of hotels comes from

the business travel segment. The average room rate (ARR) realized
from business travelers is normally higher than from leisure travelers.
Heightened demand and the healthy occupancy rates have resulted in
an increase in the number of budget hotels. Some of the new players
entering into this category of hotels include Hometel, Kamfotel,
Courtyard by Marriott, Country Inns & Suites, Ibis and Fairfield Inn.

3. Technology:

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Travel and technology have become inseparable. Technology is

making its own advances with high-tech video conferencing facilities,
web cameras and virtual reality mode of conferencing. On-line
bookings, e-ticketing, Wi-Fi Internet connectivity, easy access to
information, etc. are just a few areas where technology has completely
changed the the way we travel.

4. Service apartments:

The concept of service apartments, though a recent phenomenon in

India, is an established global concept. Villas in Spain, flats in the UK
and apartment complexes in the US have all created a viable market
for those who want more than just a room in a hotel. Service
apartments are the latest trend in accommodation, offering the comfort
and convenience of a home without the hassles of having to maintain
or look after it. Ideally suited for medium-to-long staying guests,
service apartments are a natural choice for corporate employees or
expatriates relocating to a particular city, non-resident Indians visiting
the country for long spells and foreigners visiting the city for long
durations.

5. Loyalty travel:

Today, airline-credit card company tie-ups have brought a whole range

of benefits to the travelers. These include insurance cover, upgrades,
free tickets, access to executive lounges, and a host of other goodies.

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USE OF INFORMATION TECHNOLOGY IN HOSPITALITY SECTOR

The Internet is changing the way that resorts are marketing their
properties. With a lean towards Internet vacation directories, the
hospitality industry is making the search for consumers easier than ever.

The popularity and growth of the Internet has changed the way many
businesses and services are marketed. With the potentially unrestricted
access to millions of people, hotel, resorts, and lodges have capitalized on
Internet advertising and promotion as a means of adding value to the
services they are able to offer; thus, enabling them to cater to a niche
market.

Those businesses in the travel and tourism sector have benefited

tremendously from online advertising, as the Internet allows them to
economically market in a highly efficient manner. As this market has
stepped away from printed pamphlets and brochures as a primary means
of promoting tourist areas and hospitality properties, and focused more on
online hospitality and vacation internet directories, they have recognized
tremendous financial savings due to the market reach being much larger
and offering unlimited advertising possibilities as compared to traditional
print promotions.

As the hospitality industry trend gears towards on online advertising, they

have become aware of valuable services, such as vacation directories,
that promote a particular resort region or destination. Unlike other

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marketing mediums, online directories not only allow hospitality

businesses to showcase their property to potential customers, they also
provide valuable information about the region, information that is not
often provided with traditional marketing. Additionally, this industry has
recognized the value that vacation directories are able to offer to lesser-
known vacation destinations. By utilizing directory hubs, the playing field
is levelled; thus, allowing much smaller resorts to compete more readily
with larger, well known destinations.

Having a solid understanding of the value that online directories offer to

both visitors and business owners alike, the directory was created to
provide a wealth of area information that is complied into assorted
categories for easy access. Featured on the directory are a wide range of
area vacation and resort properties, as well as area attractions and
activities; thus, making it easy for visitors to find what they are looking for
in a vacation, while providing the business owners with an affordable way
to market their business. This service has shaped the way that the
Almaguin Highlands tourist industry functions and will continue to offer
many benefits to this region.

Vacation directories encourage resort bookings by assisting both resort

businesses and vacation seekers alike. Additionally, this service provides
hospitality owners with a cost effective venue to effectively promote their
property to its best advantage, as well as offering vacationers a source of
information on a specific area and allowing for comparative shopping
when researching a vacation resort. With the start up the new Almaguin
Directory, it is expected that the tourism industry will benefit dramatically,
not only through providing affordable advertising, but also through the
increased number of tourists that will now be able to experience an area
that they may not have otherwise known about.

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IMPORTANCE OF HUMAN RESOURSE IN HOSPITALITY SECTOR

The national council for hotel management and catering technology

(NCHMCT) is also registered under the societies registration act,1960, and
is managed by a board of governors which includes representatives from
the central government and the private sector.

The NCHMCT regulates all academic activities of the institutes of hotel

management. It also oversees all admission, course deign, examinations
and certificates. The faculty development programme, research,
cooperation and coordination and affiliation with professional
organizations at the national and international level also come under
NCHMCT. In addition to the central governments support for training
tourism industry personnel; there are other training courses and
programmes carried out by various agencies, including universities, state
government and private organizations.

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The department of labor has set up a central apprenticeship council

(under the central apprentice act) to conduct training courses and short
courses lasting three months to one year in cooking, bakery,
confectionery, housekeeping and other services. The Central
Apprenticeship Council trained about 1,600 people every year at Delhi,
Fairabad and Meerut centres ever in 1998. state governments trained
about 250 people at craft institutes. The major hotel chains trained about
250 people, universities trained about 500 people and private institutes
trained 750 people. The total number of trained personnel from theses
agencies was 3,350 people.

Comparing this total with the need for 20,000 additional personnel each
year, it is clear that further analysis is required. A survey being conducted
to identify the requirements for trained manpower at each level of
employment would focus on general management trainees, trainees in
kitchen management, housekeeping management, operational trainees,
front office and accounting management, chefs, butlers, captains, bakery,
confectionery and other specialized cooking.

Middle management positions would be filled by people holding three year

diplomas, while other jobs could be filled by craft trainees. Craft institutes
could be targeted for expansion in order to meet the needs for lower level
skills areas.

HUMAN RESOURCES IN HOSPITALITY INDUSTRY – DEMAND

SIDE

In India there is a tremendous shortage of trained manpower in the

hospitality sector. Tourism sector on an average requires manpower about
20,000 per year. Against such a requirement the actual trained output
from government institution is only 5000 per year. When we consider all
other private institutions, the total available trained manpower does not
exceed 10,000 in a year. Thus there need to develop required human

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resource in various segment of the tourism industry, as a consequence of

the rapid growth in tourism, changing technology and markets both
national and international level.

By the very nature of tourism as a service industry, its efficient

administration and successful operation depend largely on the quality of
manpower. In the Asian and pacific region, the shortage of skilled
manpower poses a major threat to the overall development of tourism.
International tourism is a relatively new phenomenon and therefore the
lack of managerial capability exits at all levels of the industry.

In particular, the rapid expansion of hotels of an international standard in

the region is creating a high level of demand for skilled and experienced
staff. The nature of the decisions facing hotel management is continually
expanding. For their business to remain competitive, managers must be
skillful in may diverse areas. For instance, they must a good
understanding of how current events and the economy affect the market
and develop skill in marketing their products. They must also strive to
keep up with the technological innovations in the operational side of the
industry. As part of the service industry, tourism is a labor intensive and
generally requires well developed social and language skills in a cross
cultural working environment. Theses demands have placed considerable
strain on small, independent operators, who cannot rely on the broad
management expertise available to their multinational hotel chain
competitors.

The availability of skilled and trained manpower is a crucial element in the

successful long term development and sustainability of a tourist
destination. In the ultimate analysis, skilled and trained human resources
will ensure the range of attractions available, but also by the quality of the
services provided. Repeat visit a vital factor in maintaining growth, will be
deterred if standard of service do not meet expectations.

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1. Shortage of skilled employees: One of the greatest challenges

plaguing the hospitality industry is the unavailability of quality
workforce in different skill levels. The hospitality industry has failed
to retain good professionals.

2. Retaining quality workforce: Retention of the workforce through

training and development in the hotel industry is a problem and
attrition levels are too high. One of the reasons for this is
unattractive wage packages. Though there is boom in the service
sector, most of the hotel management graduates are joining other
sectors like retail and aviation.

3. Shortage of rooms: The hotel industry is facing heavy shortage of

rooms. It is estimated that the current requirement is of 1,50,000
rooms. Though the new investment plan would add 53,000 rooms
by 2011, the shortage will still persist.

4. Intense competition and image of India: The industry is

witnessing heightened competition with the arrival of new players,
new products and new systems. The competition from neighboring
countries and negative perceptions about Indian tourism product
constrains the growth of tourism. The image of India as a country
overrun by poverty, political instability, safety concerns and
diseases also harms the tourism industry.

5. Customer expectations: As India is emerging as a destination on

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the global travel map, expectations of customers are rising. The
companies have to focus on customer loyalty and repeat purchases.
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Recommendations to the government

The government could constitute a steering committee to review the

demand and supply of the human resources in the hospitality industry and
prepare plans for developing qualitative human resources which are
required for the present day global industry . The committee should
constitute with the members from all concerned areas like :

 State and central tourism development commissioners

 Representatives from all areas of hospitality industry

 Member’s / president / secretary of the hotel management

associations

 Member’s / president / secretary of the travel and tourism

association

 Representative from hotel employees associations

 One member representative from international hotel chain

The committee should review the present situation and suggest the steps
to be taken to reduce the gap between the demand and supply of human
resources in the industry. The committee should concentrate on the
following issues mainly :

 Create a policy on industry institute interaction

 Establish an apex body t coordinate all the management institutes

in the country.

 For conducting common entrance test for all Govt. university / AICTE
/ private institutes in the country

 Curriculum development from time to time as industry requirement

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 Fees structure for different courses in different institutes

 Appoint a committee to identify the requirements of qualified

manpower for International Hotels and also identify the ways to
develop .

Recommendations to the hospitality industry :

 Tie – ups with institutes :

It is the duty of the Industry t make necessary tie-up / arrangement for

their required human resources with one or two hospitality institutes in
the country .

 Continuous training :

There is a need of continuous training to all categories of employees in

the organization . when they have a tie – up with the institutes , the
institutes will offer in – house training to different category of
employees from time to time to update their skills .

 Sponsoring:

It is the duty of the industry to sponsor some amount / equipment to

the institute for their betterment . if possible the sponsor a chair for
continuous funding and research for that institute .

 Research :

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Every institute must spend some amount for the research which is
essential for further development and understand the present situation
. the industry should involve in the researchers by providing timely
information and data which is ultimately useful for them only .

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FUTURE OF HOSPITALITY SECTOR

The hospitality industry is probably the world’s fastest-growing, job-

creating profession, employing one in ten people worldwide. In the UK
alone, the industry employs over 1.8 million people. It is estimated that
the industry will require 30,000-35,000 trained people at management
and supervisory level year on year until 2010, if it is to fulfil its potential.
There is enormous scope for those who want to pursue a career in the
industry, plus a huge range of employment opportunities across the varied
subsectors. You might want to manage a hotel, run a restaurant or
become the next Jamie Oliver, or maybe your interests lie in accountancy
or information technology. You may want to start your own business or be
part of an international one. Whatever your talents, the hospitality
industry offers variety and opportunity.

Hotels as a product will witness evolution. "As the market becomes more
segmented, especially in the mid-market and select service categories,
more product types will appear." The driving force behind these will be
global brand standards and therefore they will have standard
specifications creating a degree of uniformity and standardisation in
certain limited and mid-market hotel segments. Differentiations in product
type will evolve more at the higher end of the market with boutique
hotels, resorts, convention centres, etc. The need to differentiate design
will play an important role. Various brands and operators will play a larger
role in driving design standards, getting involved at early project planning
stages. "As hotel segments cater to specific demand segments, design
typologies will be more customised to suit traveller's lifestyle,".

Equal importance should also be given to green-building concepts in terms

of development and operations, which will go beyond cost-saving,

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placating the demands from both investors and customers. "From the
investment side, there will be enough environmentally-conscious
investors, who will only invest in green buildings and will also pay a
premium for such properties relative to other properties,". In addition,
'green-conscious' business and corporate groups will patronise hotels and
brands that support green concepts," he further adds. Besides all this, the
reliance on technology will move beyond Wi-Fi and internet requirements
to tools to support sales and marketing as well as yield management.
Even basic interiors will be upgraded with the use of technology like self
check-in and information kiosks. This will also revamp sales and marketing
as international brands will leverage their central reservation systems and
will initiate networks with third party reservation agencies. In addition,
systems will become more sophisticated and targeted, customising sales
and marketing efforts for each targeted traveller.

However when discussing service, which is the main play of this industry,
it has to be understood that the growth phase is still on and the market is
currently undersupplied in terms of trained hotel staff to cater to the large
supply pipe-line. "A larger number of globally recognised training
institutes are required in the country and this is a great opportunity for
educational institutions,".

To boost up the growth of tourism in India, the government has proposed

to invest Rs. 520 crore in 2007-2008. Tourism in expected to grow further
over the next few years due to the changes taking place on the demand
and supply sides. The factors that will account for the further growth of
tourism will include the following:

 Change in standards of living

 More disposable income

 Better education

 Long leisure time

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 Aging population

Owing to growth of tourism sector, infrastructure will improve, competition

will increase, new products will come into markets and better services will
be provided. Due to the rapid growth in tourism, the hotel industry is also
booming. Many international players like Le Meridien and Accor are
heading towards Indian markets to expand their business. With
government's full support in developing infrastructure, increase in
demand, open sky policies and increased competition, the hospitality
industry is getting consolidated and has many more opportunities to grow
further.

In 2003-04 the hospitality industry contributed only 2% of the GDP.

However, it is projected to grow at a rate of 8.8% between 2007-16, which
would place India as the second-fastest growing tourism market in the
world. This year the number of tourists visiting India is estimated to have
touched the figure of 4.4 million. With this huge figure, India is becoming
the hottest tourist destination. The arrival of foreign tourists has shown a
compounded annual growth of 6 per cent over the past 10 years. Besides,
travel and tourism is the second highest foreign exchange earner for
India. Moreover, it is also estimated that the tourism sector will account
for nearly 5.3 per cent of GDP and 5.4 per cent of total employment.

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Case study

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(1) Hidesign and Khoday check in hospitality sector

BANGALORE:

International hospitality firms and domestic hotel operators are not the
only ones tapping into India’s growing hospitality industry. The sector is
attracting players from different backgrounds. In many cases, these
players have no prior hospitality experience. Among the list of firms that
have ventured into this segment are Puducherry-based leather
accessories maker Hidesign and Bangalore-headquartered liquor firms
Khoday Group of Industries and John Distilleries. According to experts,
many people who own land are cashing in on the demand for hotel rooms.

In India, a hotel and resorts construction boom is underway across metros

and secondary cities. According to consulting major Deloitte, international
tourism expenditure in India in 2006 was about $8.7 billion and is
expected to rise to over $10 billion in 2008 with the lion’s share of this
being generated from the hotel sector.

There were an estimated 105,000 hotel rooms in India as of July, 2007, a

number comparable to that of Manhattan, according to the Deloitte
survey. This number falls short of the demand and is, therefore, luring
entrepreneurs to invest in this sector. “The number of five-star rooms in
the country is less than what is available in Manhattan. Most people are
aware of the need for quality rooms. Therefore, anybody with access to a
piece of land is venturing to develop hotels,” said, Rajeev Menon, area
vice-president, MIPM, Marriott. The Khoday Group, for instance, is
investing in a 250-room hotel in Bangalore and is also scouting for land to
set up resorts.

The spirits major may tie up with a foreign player for its resorts foray.
Meanwhile, Hidesign, which already has two boutique hotels in

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Puducherry, is now looking at building beach villas and resorts. The

company is planning a third boutique hotel in South India. “We decided to
get into the hospitality business because we believe we could offer
something different to the customer, a combination of fashion and design.

We are also getting international recognition for our niche offering,” says
Dilip Kapur, president, Hidesign. Their third property, located between
Chennai and Puducherry, is expected to open by mid-2009. The 70-room
hotel will see an investment of Rs 40 crore.

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(2) Wynn Resorts Provides Superior Guest Services

Using Intelligent Communications

Pain areas

• Set new standards by creating the ultimate guest experience

• Provide guests with advanced communications services that
deliver extraordinary convenience and improved customer service
• Make hotel staff available at all times and deliver accelerated
guest service

Customer results

• A fully integrated voice and data network enables a host of

new communications capabilities throughout the property
• The new IP phones are rich with information about the hotel’s
services and enable guests to access hotel staff members easily
• The system supports wake-up call administration, voice
messaging and other guest services, and it stores vital contact
information for the resort’s 9,000 employees
• Regardless of their location, employees can use any phone to
manage messages and perform communication functions, such as
conferencing, directory access and calendar management
• Employees can set their cellular phones to ring simultaneously
when their office extensions are dialed, resulting in fewer missed
calls and accelerated guest service

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Final outcome of the improvement:

• As a hospitality executive, can you afford to ignore the

strategic possibilities of Intelligent Communications for your
business? As we have shown, Intelligent Communications
enables a myriad of competitive advantages that span revenue
growth, cost efficiencies and brand differentiation.
• Though one may be tempted to think Intelligent
Communications capabilities have existed for years through
technologies such as computer-telephony integration (CTI), the
reality is that recent technology developments such as IP
Telephony, web services and service-oriented architectures
bring Intelligent Communications to a higher and more practical
level. Now, not only are truly innovative communications
solutions affordable and repeatable, but they can be more
effectively integrated directly into critical processes, giving your
firm a true competitive advantage.
• Who will be the leaders in the hospitality industry that
capitalize fully on the revolutionary capabilities of Intelligent
Communications? Many hospitality companies are doing the
groundwork through adoption of IP Telephony on cost-
improvement grounds, but the possibilities from there for real,
differentiating improvements - such as guest service, staff
responsiveness and operational efficiency - are nearly endless.
• Can you afford to fall behind?

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Bibilography:

• www.google.com
• www.hotel.com
• www.scribd.com
• www.elsevier.com

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