HOSPITALITY INDUSTRY

OVERVIEW
The hospitality industry is a large umbrella industry under which there are several divisions:

 Air and land travel

 Hotel

 Food and beverage

 Entertainment such as movie/ theatre/sports

 Travel and tourism

The hospitality industry in India is one of the largest revenue producers. The hospitality
industry is mostly influenced by the type of visitors and also be influenced by domestic and
international travelers. In India as the economy started to grow well as the personal wealth of
its people. This success created a need for more and more restaurants, hotels and various
entertainment venues for travel. India has a very long history and is rich in many heritage
sites which make need for more and more hotels. The hospitality sectors can main driving
force for the Indian economy. The various major features hospitality industry include the
following

 A majorly large part of revenue comes from metropolitan cities as they account 75%
to 80% of the revenues with Delhi and Mumbai being on the top of the list

 Profitability in the hotels' industry can be determined on the two most critical factors:
“ARR” (average room rate) and “OC” (occupancy rate). Brand image, star rating,
quality of the facilities provided and service offered influence the ARR, whereas
seasonal factors influence the occupancy rate.

 A major contributor to the hospitality sector is tourism business because India is an

According to the report of The World Travel Organisation, the hospitality industry will
assume huge growth in the year 2020 and will likely to be triple in the size. The predicted
growth rate in the hospitality sector is 8.8%. The various areas which will go to prove more
profitable for the hospitality industry are:

 Budget hotels

 Spas

 Wildlife resorts

 Service apartments
SWOT ANALYSIS OF HOSPITALITY INDUSTRY

STRENGTHS WEAKNESSES
 NATURAL AND CULTURAL  POOR SUPPORT
DIVERSITY INFRASTRUCTURE
 DEMAND AND SUPPLY GAP  SLOW IMPLEMENTATION
 GOVERNMENT SUPPORT  SUSCEPTIBLE TO POLITICAL
EVENTS.

SWOT
ANALYSIS

OPPORTUNITIES THREATS
 RISING INCOME  FLUCTUATION IN
 OPEN SKY BENEFITS INTERNATIONAL TOURIST
ARRIVALS
 INCREASING COMPETITION
 CURRENT TRENDS
For hospitality brand to attract the customer is the major responsibilities and sometimes a
very big challenge, because every customer has its own needs and expectations which is the
primary important key for successful growth in the hospitality industry and with this
changing environment, innovation is the key to success. With the rise of travel and tourism,
the shift to experience has given rise to disruptive business model where now traveler seek
more from the basic accommodation service. Putting high value on social experiences and
design. Connectivity, both social and technological for catering young travelers, for whom
online sharing is often a natural extension of offline sharing. With the rise of awareness
regarding food wastage, plastic pollution, and other environmental issues, young consumers
are becoming more critical of wasteful and irresponsible practices opening opportunities for
business that can provide sustainable alternatives.
The technological trends adopted by the hospitality industry are:
 Chatbots and artificial intelligence
 Data-driven customer centricity
 Strong focus on digital transformation
 Smart rooms
 Guest data
 Recognition technology

Other trends that have been adopted by the Indian hospitality industry are:
 Attracting customer to book from the online websites, and to compare the best prices
for their preferred hotels.
 Using mobile check-in
 Promoting self-service
 Concentrating more on add-ons facilities

Today there is a significant change in the definition of hospitality. So every hotel tries its
level best to delight their customers and to retain them. Nowadays hotels more than just an
accommodation. And with the coming years there will be rise in tourism sector which will
give more and more opportunities to do better in this sector.
 COMPETITION IN HOSPITALITY INDUSTRY
The competition in the hospitality industry is a result of two aspects:
 Technological adoption
 Changing customer profile
Technological adoption: technology plays a major role in the rise of the hospitality industry,
technology helped in improving three major factors of the hospitality industry: branding,
communication, and outreach. Various ongoing adoption of technology done by the
hospitality industry is:
 A mobile-first approach
 Connectivity
 Machine learning, big data and data analytics
Changing customer profile: the major influence of changing customer profile is on the
tourism business, tourism business witness the change in psychographic and demographic
profiles of customers. Here in hospitality industry the customer experience is currently the
most dominant brand differentiator. The personalization and differentiation also extend to the
kinds of experiences that it creates.
Marketing for hospitality services is different from other consumer goods. This is because of
the intangibility in the services. A consistent brand identity has become more important as
customers have several fronts on which they can engage the brand. Social media presence
and continues customer engagement also become more important now. By leveraging all the
technological tools still not been sufficient in the present scenario, the service must cheaper
and fine-tuned to customer preferences. This sector is most profitable in the coming years
where large investments are done in hospitality industry and which is threat for new entrants
in this sector which will increase the competition where brand has to follow various measures
in order to retain their customers and successfully maintain its brand image.
 CHALLENGES IN HOSPITALITY INDUSTRY
The hospitality industry is growing but the research shows that there are a lot of challenges
limiting the success of the businesses.
Cleanliness
First impressions count for an excellent deal and lots of guests get a sense for the standards of
the hotel from their 1st visit to the hotel washroom. The demand for cleanliness mustn't be a
surprise, particularly at the industry. In fact, hygiene and cleanliness are hierarchal as no.
1 priority for selecting and recommending hotels post keep. A lot of guests
would surrender on luxuries and even technology, like local area network access, then they
stay in a very dirty hotel.
Growth in the Sector = More Competition
One of the key insights the survey found was the speed of growth within the cordial
reception sector. This, of course, means competition has grown. In fact, 73% of cordial
reception businesses surveyed said that the competition has exaggerated within the last year.
Of the respondents, many believed that the rise in competition has led to a revenue loss for
his or her hospitality business. There are several reasons for exaggerated competition during
this business. A majority of cordial reception businesses attribute business growth to the
growing foodie culture fascinating Indians. Food culture has such a good impact on
the business. The effective way to get recognized is social media.
Finding & Keeping Valued Customers
The growth within the business and increased competition may be a conducive issue to the
hospitality businesses ability to draw in and retain customers. Nearly half of owners,
managers, and workers surveyed said they know this challenge. This
common grievance is remedied during a range of the way. Further for this you can introduce
promotions, register to on-line food delivery services, or pivot in some other way.
Hiring the Best Staff
Finding the most effective workers could be a problem for all employers, however, it will
be significantly difficult for welcome businesses. The challenge of hiring
and holding workers could be a challenge skilled by 54 %of all
hospitality business owners and managers. It's significantly vital to search
out sensible workers because it was found that slow or bad service will attribute to revenue
loss.
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 ITC HOTELS
In 1975 the ITC enters into the hotel business with the acquisition of a hotel in Chennai
which is named Hotel Cola. Now it has more than 100 hotels at 70+ destination.ITC
headquarter is at ITC green center Gurugram.
ITC hotels are classified under four brands these are:
1. ITC Hotels - Luxury Collection
2. Welcome Hotels
3. Fortune Hotels
4. Welcome Heritage.
The ITC hotels- the luxury collection is super deluxe and premium hotels, there are 12 hotels
under this category with more than 3000 rooms at 9 destinations.
Welcome Hotels offers 5-star hospitality for the discerning business and leisure travelers,
currently, there are 14 hotels under this brand at 13 destinations. It also tried up with Sheraton
international chain hotels.
Fortune hotels operate mid-market to upscale properties in first-class full-service business
hotels segment all over India promising wide choices of destination and accommodation.
Welcome heritage brings together a chain of palaces, forts, and resorts that offering unique
experience.ITC hotels also offer some of the unique accommodation facilities like suite
rooms with luxury, comfort, and style.ITC rooms are more spacious and offering services that
are tailored to satisfy every need of the discerning guests.
ITC also introduce executive club which is an accommodation concept geared to meet the
need of the discerning business traveler keeping in mind the valuable time of the guests.
ITC hotels are one of the first luxury hotels chains in India to introduce luxury dining cuisine
through its iconic brands.
For example, The Bukhara and Peshawari are specialized in the outdoor cuisine of northwest
frontier province. Dechen, on the contrary, brings together the highly evolved cuisine of four
states of India Andra Pradesh, Karnataka, TamilNadu, and Kerala.K&K unique restaurant is
dedicated to mouth-watering arrays of Kebabs and wide range of dishes from all over India.
Royal Vega displays a delightful offering of delectable vegetarian food from magnificent
Royal kitchen of India.
Apart from this ITC hotels are the world's first luxury brand to have entire portfolio LEED
Platinum certified.ITC fully laid to rest the misconception that green building and luxury
accommodation can never coexist. ITC hotel cola also addressed with the system of world
largest solar thermal concentrators an added boost in heating and cooling efficiency was
achieved using waste heat recovery units, LED lighting and on-site wind farms.55% of ITC’s
total energy demand is being met by renewable resources by instilling efficient rainwater
harvesting.
 MARKETING MIX

The marketing mix is very simple and we need to place right product or the combination
along with place at right time at right price. It is very difficult to assign all these things once it
is done you have met all the aspects of business plan.
If we see we have to aspects 4 P’s are used for product and where as 7 P’s are used for
service.
Marketing mix is very important
All the elements of the marketing mix are interlinked with each other’s means are influenced
with each other. If all this marketing mix are used properly it can give huge success. If it is
handled wrong it can make the business worse and it will take years to recover. The
marketing mix needs lot of understanding of market research and opinions from the customer
from users to trade to manufacturing and several others.
Marketing mix of ITC Hotels
Product
 Service offered
 Room bookings- Eva, Business class, executives, and many more. It can be
done online and offline.
 Butler service
 Wi-Fi internet
 SPA & swimming
  Meeting room / conference rooms / Board rooms
 Restaurant/ Bars
 Meetings and events/Luxury Rooms

 Service offered (Special service)

Price
 Pricing is done based on the facilities is availed.
 Starting from Rs 6000 to Rs 3,00,000, charges are varied from hotel to hotel and their
respective location.
Promotion
 They do promotion of their hotels with the help of fmcg products.
 Internet and social media platform
 Print and digital media
 Media mix
 Travel assistances
 Hotel directories
Place
 We have total 100 ITC hotels in 75 cities
 We also have hotel in strategic location
 Many metropolitan cities
 Business hubs like Bangalore etc.
 Tourist and heritage places of India
People
 In people we have all the employee a 5-star hotel should have.
 Waiter, receptionist etc
 Room service, laundry
 Manager
 Assistant for guest
  Chefs
Physical Evidence
 We have many physical evidences in hotel we will mention important one.
 Hotel lobby, Phone facilities
 Car parking and luggage rooms
 Nice music or your ambience etc.
 Conference room/ event hall etc.
 Before and After sales service
Process
 We have many processes involved entering of the guest and backed process etc. and
till the customer leaves.
 Room booking online or offline
 Check in and check out
 Duration of staying in hotel
 Consumer services and assistant
 Payment mode online/ card/ cash
 FLOWER OF SERVICE

Core product: Accommodation

Order taking
 booking through internet
 reservations
 by mail and telephone

Billing:
 Website
 Flyer
 Counter
 Customer’s service center and hotline.

Payment
 Credit card
 E banking
 At the counter
 Tokens or world card into machines.

Consultation
 Medical consultation
 Gym consultation

Hospitality
 Staff service
 Quality meals
 Room services
 Dining
 Modem amenities

Safekeeping
 Caring for possessions
 Child care
 Security personnel
 Caring for good purchased and others.

Exception
 Special request in advance of service delivery
 Handling special communications
 Problem solving
 Refunds and compensation.
 Moments of truth

In the Hospitality industry, there are quite a few moments of truth in its provision of service.
A moment of truth is that point where the customer interacts with the service provider.

What impacts the moments of truth- The personal factors that impacts the moments of truth
are:

 The level of concern shown towards the customer.

Having somebody hold up in line at registration can cause a negative impression. However, if
shown concern towards the customer helping him ensuring that the next interaction after
check-in easy in a friendly and helpful manner can reduce that negative impact to zero. By
understanding what is required by each target segment at the moments of truth enables the
organisation to make better plans and execute them accordingly to improve the perception of
the customer of the interactions.

Moments of truth in a hotel, will include booking, check-in, check-out, dinner reservations,
order placing, dinner presentation, eating (quality and quantity of food) and laundry receipt.
Understanding the moments of truth that are important to an organisation’s customers by
segment is the key to understanding what is good customer service.

SERVICE ENCOUNTERS

Check-in

The check-in stage is where the actual interaction begins. It is the stage where the physical presence
of the guest is made. This establishes the type of the service the customer requires. At this stage, it is
important for the hotel staff to make prompt personal contact with the guests to let them feel welcome
and to advise them of any action that will be initiated to meet their requirements. Staff at this point
must be skilled at forming good interpersonal relations. They must also be able to establish the
purpose of the encounter and be knowledgeable as to how services should be rendered. Enquiries
should be treated with prompt attention.

The Diagnosis Stage

During this diagnosis stage, the front-line staff engages the guests to establish their actual
requirements. At this stage, it is pertinent that a guest, who is assessed to be fearful of heights, for
instance, can be given a place where he or she might be more comfortable. A special adaptation could
be made for a guest who might not want a particular room. Good communication skills are needed at
this stage. Staff must be good listeners in order to fully appreciate the concerns of guests. Once the
customer’s requirements have been identified, the process of service delivery can commence with the
hotel staff providing the customer with the package he or she needs.

Service Delivery

Service delivery could be completed during the meeting with the guest. It could also be spread over a
series of encounters especially if the guest wants to eat at the hotel’s restaurant, join in at the drinking
bar or request for room service. Generally, if staff’s interpersonal skills or service attitude cause
difficulties with the guests, then the service delivered would generally be considered less than
satisfactory.

Disengagement
The check-out or disengagement stage closes the service encounter. Previous misunderstandings can
be identified and corrected particularly through the information provided by the customer. Whilst first
impressions are important, so too are last impressions since they can help in improving the customers
experience and close ties with departing guests.

Follow-up

The follow-up stage is initiated by the hotel after some period of time. It can be done by a follow-up
questionnaire seeking some feedback on the services provided. This stage should identify dissatisfied
guests and their reasons for that and much should be done about the causes of the dissatisfaction

SERVQUAL MODEL
This model name denotes the meaning of it, i.e. Service Quality. This model is generally
used to know the service quality of a company. In general, unlike manufacturing, services are
intangible and heterogeneous in nature, which makes hard to assess the service quality of a
firm/company.
SERQUAL model is also known as the RATER model. This model divides quality
components into 5 areas for better understanding. They are

 Reliability
 Assurance
 Tangibility
 Empathy
 Responsiveness.
Various factors affecting customer experience in hotel service of ITC based on SERVQUAL
model were mentioned below.
1. Reliability: Are they accurately performing the promised service
 The Hotel should follow all the promises they make to the customers on time.
 The Hotel should make sincere effort in solving problems if any to the customers.
 The hotel insists on error free service.
2. Assurance: creating trust in customers, to ensure that customers are confident about
service
 Behaviour of employee should boost confidence and trust in customers.
 Customer should feel safe in making transactions with the hotel.
 Employee should have knowledge to answer customers quarry.
3. Tangibility: the appearance of physical facilities
 The hotel must have modern-looking equipment to reflect its image in customer.
 The Hotels Physical facilities should be visually appealing about its quality.
 The Hotels employee should be neat appealing professionalism towards service the
offer.
4. Empathy: Showing Individual care, Honesty, attention, trustworthiness towards the
customers
 The hotel should provide individual attention to make customer feel as important
guest.
 The hotel should provide customised service as per their requirement.
5. Responsiveness
 The employee of the hotel tells customer exactly about the service they perform.
 The employee of the hotel should always be willing to help the customer.