Chapter 1

History Of Hotel Industry 

The Hotel industry comprises a major part of the Tourism industry. 

Historically viewed as an industry providing a luxury service

valuable to the economy only as a foreign exchange earner, the

industry today contributes directly to employment (directly

employing around 0.15 million people), and indirectly facilitates

tourism and commerce. Prior to the 1980s, the hotel industry was a

slow-growing  industry, consisting primarily of relatively static,

single-hotel companies. However, the Asiad, held in New Delhi in

1982, and the subsequent partial liberalization of the Indian economy

generated tourism interest in India, with significant benefits accruing

to the hotel and tourism sector, in terms of improved demand

patterns. 

Before 1760 people used to go inns for having lunch, dinner etc.it

was the palace where families used to host their guest inns owner

used to provide lodging and boarding facility services too their

guest.

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To word hotel was used then it was called hoteliers which means

head of unit or the palace. Hotels are amongst the most visible and

important aspects of a country's infrastructure. Hotel industry is a

closely linked one to the tourism industry. A number of factors like

promotion of tourism and rapid industrial progress have given a

boost to hoteliering. The recent liberalizations of trade and opening

up of economy will further lead to revolutionary growth in this

sector. The hotel industry is a mature industry marked by intense

competition. Market share increases typically comes at a competitor’s

expense. Industry-wide, most growth occurs in the international, rather

than the domestic, arena.

Prior to the 1980‟s, the Indian  hotel industry was a nascent and slow

growing industry primarily consisting of relatively static, single hotel

companies. However, Asian games in 1982 and the subsequent partial

liberalization of the Indian economy generated tourism interest in India

with significant benefits accruing to the hotel and tourism sector in terms

of improved demand patterns. Fortunes of the  hotel industry are tied to

the fortunes of tourism and the general business climate in the country,

which is why the economic liberalization initiatives implemented since

1991, led to a soaring demand and supply gap in the hotel industry.

2
INTRODUCTION TO THE HOTEL INDUSTRY

Hotels today are a “Home away from home”.

One of the fastest growing sectors of the economy of our time is the hotel

industry. The hotel industry is a multi-billion dollar and growing enterprise. It is

exciting, never boring and offer unlimited opportunities. The hotel industry is

diverse enough for people to work in different areas of interested still be

employed within the hotel industry. This is not in India but also globally. Modern

hotels provide refined services to their guests. Hotel Industry is service Provider

Company. The scope of hotel industry is so wide. Hotel industry is fastest

growing and the second largest industry of the world and has tremendous

potentialities for earning foreign exchange yielding tax revenue, providing

employment, promoting the growth and development of the industry.

Hotels considered to be a place where tourist stops, cease to be

travelers and become customers. The first catered to travelers and

provided them with a mere roof to stay under. This condition of the inns

prevailed for a long time, until the industrial revolution in England, which

brought about new ideas and progress in the business at inn keeping. The

invention of the steam engine made traveling even more prominent.

Which had to more and more people traveling not only for business but

also for leisure reasons.

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This lead to the actual development of the hotel industry as we know it

today. Hotel today not only cater to the basic needs of the guest like food

and shelter provide much more than that, like personalized services etc.

The customers or guests are always right. This principle necessitated

application of management principles in the  hotel industry and the hotel

professionals realized the instrumentality of marketing principles in

managing the hotel industry. The concept of total quality management is

found getting an important place in the marketing management of hotels.

The emerging positive trend in the tourism industry indicates that hotel

industry is like a reservoir from where the foreign exchange flows. This

naturally draws our attention on hotel management. Like other industries,

the hotel industry also needs to explore avenues for innovation, so that a

fair blending of core and peripheral services is made possible. It is not to

be forgotten that the leading hotel companies of the world have been

intensifying research to enrich their peripheral services with the motto of

adding additional attractions to their service mix.

It is against this background that we find the service mix more flexible in

nature. The recruitment and training programmes are required to be

developed in the face of technological sophistication. The leading hotel

companies have been found promoting an ongoing training programme so

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that the personnel come to know about the use of sophisticated

communication technologies.

The hotel industry in India is a mature industry marked by intense competition,

where an increase in market share typically comes at a competitor’s price. The

Indian hotel industry is on a roll. At present this industry has a supply of 1,

25,000 rooms in India. The data available with the World Travel and Tourism

Council, India, indicates that India ranks 18 th in business travel, and should rank

among the top 5 within this decade. It is estimated that demand is going to

exceed supply by at least 100 per cent over the next two years. With such

demand-supply disparity, room rates in Indian hotels are likely to rise by 25 per

cent annually, with occupancy rates rising to 80 per cent, over the next two

years. With the commonwealth Games 2010 around the corner in the country,

there is a huge demand for rooms in the national capital. India ranks first with

regards to tourism fair attendance. Despite short and medium terms set backs,

tourism revenues are expected to rise by 42 per cent between 2007 and 2017.

The medical tourism in India also does not lag behind. The country today ranks

second in medical tourism because of its highly advanced treatment technologies

wooing a large number of patients from various countries.

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India’s share in international tourism and the hospitality market is expected to

increase over the long term.

New budget and star hotels are being set up in the country. Many foreign

hospitality players are heading towards Indian markets. The hotel industry in

India is going through an interesting phase.

One of the major reasons for the increase in demand for hotel rooms in the

country is the high growth in sectors like information technology, telecom, retail

and real estate. The growth of the tourism industry has also added fillip to the

hotel industry. In recent years the government has taken several steps to boost

travel and tourism, which have benefited the hotel industry the most.

The Concept At the outset, we go through the concept of hotel. The common law

says that hotel is a place where all who conduct, themselves properly and who

being able and ready to pay for their entertainment, accommodation and other

services including the boarding like a temporary home. It is home away from

home where all the modern amenities and facilities are available on a payment

basis

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Scope of the report

At the backdrop of such a conducive business atmosphere 'Pre-feasibility Report

on Five-star Hotel Industry' attempts to examine such critical factors which will

provide vital inputs in general to the potential investors and estimation of

commercial viability of such an investment.

- It presents the market analysis of Indian hotel industry in terms of structure&

segmentation ,market size, major hotels etc.

- It analyses the steps involved in setting up a hotel describing the technical

aspects in terms of location details and land requirement.

- It assess the manpower planning and financial estimate involved in setting up a

hotel.

- Brings an insight into the procedure for setting up a hotel, type of machinery

& floors space required, requirement of regulatory permissions & clearances.

-Analysis of porter’s five forces and SWOT of the industry.

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FEATURES OF HOTEL INDUSTRY:-

The hotel 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 such as a restaurant,  hotel,

or even an amusement park consists of multiple groups such as facility

maintenance, 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 isn't producing), so do restaurants,

hotels, and theme parks seek to maximize the number of customers they

"process". In viewing various industries, "barriers to entry" by newcomers and

competitive advantages between current players are very important.

The question Very important is also the characteristics of the personnel working

in direct contact with the customers. The authenticity, professionalism, and actual

concern for the happiness and well-being of the customers that is communicated

by successful organizations is a clear competitive advantage This significant

growth of the tourism  industry is the direct result of changes in international

consumer behaviors as well as economic prosperity and political stability within

the region.

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Historically, the supply of lodging facilities within the region has proved to be both

inadequate in terms of product quality as well as insufficient in quantity for

meeting the increasing levels of demand. These elements of supply and demand

have created a favorable investment climate for development within the region,

resulting in a real estate boom in both tourism and residential development. The

growth in residential real estate development has been primarily driven by

foreign demand for vacation and retirement homes in both urban and resort

destinations within the region. Investment and development has been further

supported by the variety of financial incentives for investment in tourism projects

offered by national governments as well as the availability of local capital for the

financing of large projects. The first goal is to find ways to operate the hotel

according to the idea of a “triple bottom line,” which embodies profitable

operation combined with attention to the people who use and work in the hotel

and a focus on careful stewardship of resources.

While that goal is important, even more vital is to use the hotel’s position as

an industry leader in the nation’s capital to demonstrate to the hotel industry ,

customers, and vendors that sustainable operation is the best strategy to ensure

successful hotel operation. The sustainability initiative goes beyond such well-

known ideas as reusing guest linens, recycling waste materials, and changing to

compact fluorescent lamps.

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 Hotel– The Concept At the outset, we go through the concept of hotel.

The common law says that hotel is a place where all who conduct,

themselves properly and who being able and ready to pay for their

entertainment, accommodation and other services including the boarding

like a temporary home. It is home away from home where all the modern

amenities and facilities are available on a payment basis. It is also

considered to be a place where tourist stops, cease to be travelers and

become customers.

The hotel may furnish quarters and facilities for assemblage of people for

social business or entertainment purposes and may engage in retaining

portion of its premises for shops and businesses whose continuity (i.e.,

proximity) is deemed appropriate to a hotel  . The assemblage of people

for social business and entertainment purposes makes it essential that

hotels are also furnished with a big conference hall where the maximum

possible accommodation is available. We also call it the function room.

Motel – The Concept Initially the term motel was meant for local motorists

and foreign tourists traveling by road. They serve the needs and

requirements of these travelers and meeting their demand for transit and

accommodation. Some of the important services offered by the motels are

parking, garage facilities, accommodation, and restaurant facilities. Motels

are found located outside the city, preferably by the side of high ways and

important road junctions.

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Estimates abound as to the importance and size of house keeping.

Certainly, its economic contribution is critical to the global economy

whether as a service to the business community. Background of  hotel

Industry Prior to the 1980‟s, the Indian  hotel industry was a nascent and

slow growing industry primarily consisting of relatively static, single

hotel  companies. However, Asian games in 1982 and the subsequent

partial liberalization of the Indian economy generated tourism interest in

India with significant benefits accruing to the hotel and tourism sector in

terms of improved demand patterns

which is why the economic liberalization initiatives implemented since

1991, led to a soaring demand and supply gap in the hotel industry.

11
GROWTH OF HOTEL INDUSTRIES

The hotel industry in India is going through an interesting phase. One of the

major reasons for the increase in demand for hotel rooms in the country is the

boom in the overall economy and high growth in sectors like information

technology, telecom, retail and real estate. Rising stock market and new

business opportunities are also attracting hordes of foreign investors and

international corporate travelers to look for business opportunities in the country.

Hotel industry is also inextricably linked to the tourism industry and its growth has

added fillip to the hotel industry. And with Conde Nast Traveler ranking India as

the fourth most preferred travel destination and Lonely Planet selecting the

country among the top five destinations from 167 countries, India has finally

made its mark on the world travel map.

The arrival of low cost airlines and the associated price wars have given

domestic tourists a host of options. The opening up of the aviation industry in

India has led the way for exciting opportunities for the hotel industry as it relies

on airlines to transport 80% of international arrivals.

Moreover, the government’s decision to substantially upgrade 28 regional

airports in smaller towns and privatization and expansion of Delhi and Mumbai

airport will improve the business prospects of hotel industry in India. Substantial

investment in tourism infrastructure is essential for Indian hotel industry to

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achieve its potential.

The upgrading of national highway connecting various parts of India has opened

new avenues for the development of budget hotels here.

The Government of India’s Incredible India destination campaign and the Atithi

Devo Bhavah campaign have also helped the growth of domestic and

international tourism and consequently the hotel industry.

In recent years the government has taken several steps to boost travel and

tourism, which have benefited the hotel industry in the country. These include the

abolishment of the inland air travel tax by 15%, reduction in excise duty on

aviation turbine fuel to 8% and removal of a number of restrictions in excise on

outbound chartered flights including those relating to frequency and size of

aircraft. The government’s decision to treat convention centers as part of core

infrastructure has also fuelled the demand for hotel rooms.

There are some 1,980 hotels approved and classified by the Ministry of Tourism,

Government of India, with a total capacity of about 110,000 hotel rooms.

Revenues of the hotel and restaurant industry in India during the financial.

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DIFFERENT DEPARTMENTS IN HOTELS

The departments are classified on accounts of it function. They are as

follows:-  There are many opportunities to be creative: - Hotels and

restaurants managers might design new products to meet their needs of their

guests; produce training programs for employees; or implement challenging

advertising, sales promotions and marketing plans.  The work is varied: -

Because hotels and restaurants are complete production, distribution and

service units, and managers are involved in a broad array of activities.  The

industry offers more career options than most: - No matter what kind of work

we enjoy and wherever our aptitudes lie, there is a segment of the industry

that can use ours talents. industry are as follows. &D) Department:- F & B

deals mainly with food and beverage service allied activities. Different

divisions are there in F & Housekeeping Department:-

The housekeeping department is another important department in hospitality

world. Housekeeping is responsible for cleaning the hotels.

Front Office Department:- The front office is the command post for

processing reservations, registering guests, settling guest accounts

(cashiering), and checking out guests. Front desk agents also handle the

distribution of guestroom keys and mail, messages or other information for

guests.

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The most visible part of the front office area is of course the front desk.

The front desk can be a counter or, in some luxury hotels, an actual desk

where a guest can sit down and register like Restaurants, Speciality

Restaurants, Coffee Shop (24 hrs.), Bar, Banquets, Room service etc.

Apart from that they have Utility services (Cleaning). Hotels guestrooms

and public areas. This department has the largest staff, consisting of an

assistant housekeeper, room inspectors, room attendants, a horseperson

crew, linen room attendants and personnel in charge of employee

uniforms. They may also have their own laundry and valet service. Hotels

with laundry and valet equipment may use it only for hotel.

Food Production Department:- Food production deals with the

preparations of food items. It basically engaged in preparing those dish,

which are ordered by the guest and afterwards is catered by the uniforms

and send guest clothing to an outside service where it can be handled

with specialized equipment & Marketing.

Support Department (Cost Centers) department. Cuisine like

Indian, Continental, Thai, Italian, Konkani (Coastal Sea Food), South

Indian, Chinese, Mexican, etc. Different Chefs are appointed for the

specialty cuisine.

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Selling Department:- Sales and marketing has become one of the

most vital functions of the  hotel business and an integral part of

modern hotel management. It includes packaging for selling, sales

promotion, advertising and public relations. The marketing division is

charged with the responsibility of keeping the rooms in the hotel.   

Engineering and Maintenance Department:- The energy crisis

throughout the world has given a great importance to the engineering

department of occupied at the right price and with the right mix of guests

hotel. This department provides on the day-to- day basis the utility

services, electricity, hot water, steams, air-conditioning and other services

and is responsible for repair and maintenance of the equipment, furniture

and fixtures in the hotel. The engineering department has an important

role in satisfying the guest- demand and helping to maintain the profit level

of the hotel . The cleaning, up-keep, repair, replacement, installation and

maintenance Finance, Accounting and Control Department of property

and its furnishing, machinery and equipment are the joint responsibilities

of Engineering/Maintenance and the Housekeeping Department. Hotel’s 

accounting department is responsible for keeping track of the many

business transactions that occur in the hotel Safety and Security

Department.

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The accounting department does more than simply keep the books-

financial management is perhaps a more appropriate description of what

the accounting department does.

Whereas the control department is concern with cost control guidelines

by way of reducing in investment, reduction in operating cost, control of

food service costs, control of beverage costs, labour cost control, etc.

hotel itself is an overriding concern for today‟s hoteliers. In the past, most

security precautions concentrated on the prevention of theft from guests

and the hotel Administration Department:- Top organizational members

usually supervise the Administration Department in a. However, today

such violent crimes as murder and rape have become a problem for some

hotels. Unfortunately, crime rates in most major’s cities are rising. Hence

today security department also concentrate on these additional criminal

activities too hotel .This department is responsible for all the work

connected with administration, personnel, manpower, employee’s welfare,

medical, health as follows

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Classification of hotels

Hotels can be classified into different categories or classes, based on their

operational criteria. For example the type of accommodation they provide,

location of the property, type of services provided, facilities given and the

clientele they cater to can help categories hotels today. Hotels today are

basically classified into the following categories: 1 Market segment :

(1) Based on Star category of hotels [India]

One Star Hotels:-

The hotels with most basic facilities, small number of room ’s locations in the far-

flung areas are grouped under One Star concept of HR is absent. hotel category.

These hotels are best when customer is looking for cheapest available

accommodation option. In this type of  hotel Floating Hotels The floating hotels

are located on the water surface. The places are sea, river, and lake. These

hotels provide with all the facilities and services made available in a good

manner.

Two Star Hotels: -

These hotels are most available in the small cities and in particular areas of

larger cities. Catering to the backpacker tourist traffic, these hotels provide all the

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basic facilities needed for general accommodation and offers lowest prices. In

this type of concept of HR may or may not be present. If present all functions of

HRD is curtailed.

Three star hotels:-

For a hotel to be recognized as a three star property the architectural

features and general features of the building should be very good there

should be adequate parking facilities. At least 50% of the rooms must

be air-conditioned. Also the ambience and decor of the place must be

ecstatic. They should provide reservation and information facility apart

from reception, information, bell service at least two gourmet dining

facility should be available. The establishment may or may not have

banqueting facility. They should provide high levels of personalized

services. The staff must be well trained and proper standards for

hygiene and sanitation must be followed. Also all properties have to

keep in mind that proper waste management is done.

Four Star Hotels: -

A rung below five star hotels are Four Star Hotels, these hotels provide all the

modern amenities to the travelers with a limited budget. Quality of services is

almost as high as the five stars and above categories . These kinds of hotels are

there for the travelers with limited budget or for the places which might not get

the tourist traffic associated with larger cities. In such type of HR department are

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established separately and to execute and to follow the concept of HR strictly,

HR professional are hired hotels.

Five star hotels: -

Five star category is only allotted to properties, which have all the qualities of a

three star property and a few additional. Like the entire property must be

centrally air-conditioned. The building of the property must be an attractive one.

All the rooms must be spacious. The property must have proper banqueting

facility, business center. Proper and well-maintained pool and health club a spa

is optional. The property must have 24 hour coffee shop, round the clock room

service, a bar, and a minimum of 1 gourmet restaurant. The staff must be highly

trained and a degree of specialization must be shown. State of art Equipments

must be used and the facility provided in the rooms must be sophisticated.

Five star deluxe : They are more or less like five star properties with the only

difference is that they are on a larger scale. Five star deluxe properties maintain

a very high staff to guest ratio and very high levels of service is maintained. They

in addition to five star properties have 5 to 7 dining rooms, a bar, 24-hour coffee

shop, banqueting facility. Spas, fitness centers, business centers.

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 (2) Based on location:-

City center:
Generally located in the heart of city within a short distance from business
center, shopping arcade. Rates are normally high due to their location
advantages. They have high traffic on weekdays and the occupancy is generally
high. Example: Taj Hari at jodhpur.

Motels:

They are located primarily on highways, they provide lodging to highway

travelers and also provide ample parking space. The length of stay is usually
overnight.

Suburban hotels:

They are located in suburban areas, it generally have high traffic on

weekend. It is ideal for budget travelers. In this type of hotel  rates are
moderately low.

Airport Hotels:- 

These are located near airports and are a conveniently located to provide
any level of service from just a clean room to room service and they may
21
provide bus or limousine service to the air lines. They have transit guest
who stay over between flights.

Resort Hotels:-

They are also termed as health resort or beach hill resort and so depending on

their position and location. They cater a person who wants to relax, enjoy

themselves at hill station. Most resort work to full capacity during peak season.

Sales and revenue fluctuate from season to season. These are the planned

destination of guests, usually vacationers.  This is because resorts are located at

the ocean or in the mountains away from inner cities.  Resort hotels may offer

any form of entertainment to keep their guests happy and busy

Floating hotels:-

As name implies these hotels are established on luxury liners or ship. It is

located on river, sea or big lakes. In cruise ships, rooms are generally small and
all furniture is fixed down. It has long stay guest.

Boatels: -

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A house boat hotels is referred as boatels. The shikaras of Kashmir and
kettuvallam of kerala are houseboats in India which offers luxurious
accommodation to travelers.

Rotels: -

These novel variants are   hotel on wheel. Our very own "palace on wheels" and
"Deccan Odessey" are trains providing a luxurious  hotel  atmosphere.

(3) Based on Size of Property

The main yardstick for the categorization of  hotel  is by size the number of
rooms available in the hotel.

Small Hotel :-

   Hotel with 100 rooms and less may be termed as small hotels. Medium sized

hotel:  hotel which has 100-300 rooms is known as medium sized  hotel .

Large hotels:-

Hotel   which have more than 300 rooms are termed as large hotels. Mega
hotels: are those hotels with more than 1000 rooms. Chain hotels: these are the
groups that have hotels in much number of locations in India and international
venues.

(4) Based on the Level of Service

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 Hotels may be classified into economy, and luxury hotels on the basis of the
level of service they offer.
Budget Hotels 

They provide a limited service and are known for clean rooms at low
prices meeting just the basic needs of travelers. These hotels meet the
basic need of the guest by providing comfortable and clean room for a
comfortable stay

Mid market hotels: -

It is suite  hotel  that offers small living room with appropriate furniture and small
bed room with king sized bed. They offer comfortable accommodation with
private on premises bath.

Food and beverage services and uniformed bell staff. They offer above average
luxury. All Suite hotels: It offers separate sleeping and living areas along with a
kitchenette and a stocked bar, and offer class service.

First class hotels: They are luxury hotels with exceptional decor better than
average food and beverage service, uniformed bell services. They often have 2
or 3 dining rooms, swimming pool, spas etc

Luxury hotels:-

These offer world class service providing restaurant and lounges, concierge

service, meeting rooms, dinning facilities. Bath linen is provided to the guest and

is replaced accordingly. These guest rooms contains furnishing, artwork etc.

prime market for these hotels are celebrities, business executives and high

ranking political figures. Example: Hotel umaid bhawan palace jodhpur.

(5) Based on the Length of Stay

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 Hotel can be classified into transient, residential and semi residential hotels
depending on the stay of a guest.

Transient Hotel: -

These are the Hotel where guest stays for a day or even less, they are usually
five star hotels. The occupancy rate is usually very high. These hotels are
situated near airport.

Residential Hotels :- It used to be very popular. The typical residential

hotel offers long term accommodations. These are the Hotel  where guest
can stay for a minimum period of one month and up to a year. The rent
can be paid on monthly or quarterly basis. They provide sitting room, bed
room and kitchenette.

Semi residential hotels: These hotels incorporate features of both transient and
residential Hotel.

(6) Based on Theme

Depending on theme hotel  may be classified into Heritage hotels,

Ecotels, Boutique hotels and Spas.

Heritage Hotels :

Heritage hotels in India are best if one is looking for sheer elegance, luxury and

loyal treatment. They are not just another accommodation options but tourist

attractions in themselves. Exquisitely designed and decorated, meticulously

preserved, high standards of service and ethnic cultural motifs helps the tourists

get the complete experience of enjoying pleaser. In this Hotel  a guest is

25
graciously welcomed, offered room that have their own history, serve traditional

cuisine and are entertained by folk artist. These hotels put their best efforts to

give the glimpse of their region. Example: Jai Mahal palace in Jaipur.

Boutique hotels:-

This hotel provides exceptional accommodation, furniture in a themed and

stylish manner and caters to corporate travelers. Example: In India the park

Bangalore is a boutique hotel.

Spas: -is a resort which provide therapeutic bath and massage along with other

features of luxury hotels in India Ananda spa in Himalaya are the most popular

Spa.

(7) Based on Target Market

Commercial Hotels:- 

They are situated in the heart of the city in busy commercial areas so as
to get good and high business. They cater mostly businessmen. cater
mainly to business clients and usually offer room service, coffee-shop,
dining room, cocktail lounge, laundry and valet service as well as access
to computers and fax services.

Convention hotels:-

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 These hotels have large convention complex and cater to people attending a

convention, conference Example: Le meridien, Cochin, is a  hotel with largest

convention center in south India.

Resort hotels:-

These leisure hotels are mainly for vacationers who want to relax and enjoy with

their family. The occupancy varies as per season. The atmosphere is more

relaxed. These are spread out in vast areas so many resorts have solar powered

carts for the transport of guest.

Suite hotels:-

These  hotel offer rooms that may include compact kitchenette. They cater to

people who are relocating act as like lawyers, executives who are away from

home for a long business stay.  

These are hotels, which offer spacious layout and design.  Business people like

the setting which provides space to work and entertain separate from the

bedroom.

Casino hotels:- Hotel  with predominantly gambling facilities comes under this

category, they have guest room and food and operation too. These hotels tend to

cater leisure and vacation travelers. Gambling activities at some casino hotels

operate 24 hours a day and 365 days

Government Approved Hotels :-

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These are the hotels, which might not have applied for star categorization or

small enough to find them in the list. Many of the wildlife resorts, lodges and

hostels are government approved providing a minimum level of accommodation

facilities at far off places.

Independent hotels:

They have no application with other properties. They have their own

management and are single properties with one owner. Chain hotels: They

impose certain minimum standards, levels of service, policies and procedures to

be followed by their entire establishment.

Chain hotels usually have corporate offices that monitor all their properties and

one management runs these properties. That is all the hotels under the chain are

completely owned and run by the chain itself.

MARKETING MIX:-

Services and product offered by hotels

Room bookings – Eva, business, executives, disabled • Butler service • Wi-Fi

internet • SPA & Swimming pool • Meeting rooms/ Conference rooms/ Board
rooms • Restaurants & Bars • Meetings and Events/ Luxury events

The restaurants are also divided into such categories

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Marketing mix Promotion

Promotion through FMCG goods Internet Media reports and media releases
Concept promotion Customers Social service projects Travel assistants hotels
directories.

Marketing mix – People

 Receptionists.

 Bell boys.

 Laundry .

 Servicemen.

 Butlers Room service.

 Chauffeurs

 Managers

 Cleaners

 Assistants for guests

 Chefs Waiters etc.

Marketing mix – Place

Strategic Locations Metropolitan cities Business hubs Tourist places Heritage

areas Upcoming areas.

Service quality:-
29
  Hospitality – treatment of guests .

 Material attributes – food, toiletries, complimentary goods etc.

 Time management – efficiency in service .

 Communication.

 Presentation.

Consumer behavior and perception:-

 Behavior(Why customers go?)

 Disposable money

 Class/ Status

 Luxury expectations

 References received

30
 Personal liking

 Feel good factor.

 Rise in social status.

 Hygiene.

Chapter -2

Introduction to the Organization

1 HOTEL THE UMMED BHAWAN PALACE

31
Hotel Chain : Taj Hotels

Five Star
DeluxeHeritageHotel
BhawanPalace Jodhpur

Rooms : 64

Introduction:-

Umaid Bhawan Palace, an impressive and magnificent golden-yellow sandstone

edifice in the heart of Jodhpur, stamps a commanding presence. Set amidst 26

acres of lush gardens, the Art Deco style palace was the last of India's great

palaces and was one of the largest private residences in the world.

A part of the palace is still the residence of the royal family and another section

houses a museum displaying a range of antiques from Jodhpur's royal past.

Designed by the renowned Edwardian architect Henry Lanchester and

embellished with exotic murals of the self-exiled Polish artist Stefan Norblin, the

palace is a blend of Eastern and Western architectural influences. The luxurious

32
bathtubs, swimming pool, murals and gardens add to its beauty to its majestic

architecture. Among the finest palace hotels in the world, Umaid Bhawan Palace.

Restaurant & Bar

The Trophy Bar:  Embellished with hunting trophies and memorabilia, recalls a

royal lifestyle of times past. The bar serves finger food, snacks, cocktails, spirits,

wines, beers and other beverages. Open from 11:00 am - 3:00 pm; 6:00 pm -

11:00pm.

Risala: The elegant a la carte restaurant evokes the gallantry of the Jodhpur

Lancers with its beautiful royal and martial portraits. It serves a delectable fusion

menu of Continental and Indian specialties complemented by a wide selection of

fine wines. Lunch 1:00 - 3:00pm, Dinner 7:30 -11:00 pm

The Pillars: The inviting all day dining restaurant with a spectacular view of the

gardens, the city and the magnificent Mehrangarh Fort, offers a wide selection of

pre-plated meals, snacks, Rajasthani delicacies, major meals and tea time

delicacies. The palace-hotel has several excellent venues for private dining,

romantic evenings as well as theme dinners.

Room Facilities

The Deluxe Rooms, embellished with Art Deco interiors and equipped with

modern conveniences, are a blend of princely charm and contemporary

comforts.
33
The Regal Suites, tastefully appointed and lavishly spread, are the erstwhile

residences of visiting royalty. Each suite has its own unique theme and all have a

different colour scheme from pastels to rich, deep tones.

The Royal Suites, two elegant and luxurious erstwhile royal residences of

Maharaja Umaid Singh and his queen, are distinct in their style, décor and layout

Whether we are on our business tour or holiday, the Ummed Hotel Jodhpur is an

idyllic place to explore the Blue City. Ummed hotel is an 80-roomed hotel. All

rooms and suites are fitted with contemporary facilities to make you feel like at

home. Every room has centralized air-conditioning, safe deposit, tea / coffee

maker and direct dialing facility. If you desire to stay amidst the ultimate luxury,

you may choose to stay in the lavishly furnished hotel suite.

Other Facilities & Services:-

Business Centre, Business Facilities, Car Rentals, Currency Exchange, Driver

Dormitory, Express Check in Check out, Facilities For the Physically Challenged,

Health Club - Taj Spa, Sauna, Hotel Safe, Internet/E-mail/Fax

Facilities, Interpreter Services - on request, Laundry & Dry Cleaning Services,

Palace Museum, Luggage Storage-upon space availability, Medical Services -
Doctor on Call, common medicines available, Parking, Sim card on hire,

34
Postal/Parcel Services, Room Service - 24 Hrs, Security Escorts - available on
request, Shops, Travel Desk -Ticketing, Tours

Recreation: Billiards, Croquet, Golf on request, Horse Riding on request, Polo

on request, Squash, Swimming - Indoor Pool, Swimming -Kiddies Pool - in the
shallow end of main pool, Tennis.

Room Type
Plan Double Occupancy

Palace Room
EP 40000

Historical Suite
EP 83000

Royal Suite
EP 140000
Check out time 12 Noon
 Rates are inclusive of applicable taxes.

 Rates may change during the fairs & festivals time.

 Rates are in Indian Rupees.

2 HOTELTAJ HARI MAHAL  

35
Hotel Chain: IHCl

Five star hotel

Introduction:-

The Indian Hotels Company Limited (IHCL) and its subsidiaries are collectively
known as Taj Hotels.

Taj Values

PEOPLE DIVERSITY, INTEGRITY & RESPECT PASSION FOR EXCELLENCE

EXCEED EXPECTATIONS INNOVATION SENSE OF URGENCY &

ACCOUNTABILITY SOCIAL RESPONSIBILITY

 JOY AT WORK

 People are our greatest asset and the key to our success.

 We respect diversity of people, ideas, cultures and honor the value of

individuals in a team. We believe in perfection to achieve excellence.

 We continuously improve processes to surpass global benchmarks.

 We succeed by exceeding expectations of all stakeholders and protecting

the interest of our shareholders and playing by the rules.

36
  We encourage innovation, embrace change and support growth through

knowledge and learning.

 We accept responsibility and deliver on promises with a sense of urgency

and agility.

 We commit to improve the quality of life of the communities we serve and

our concern for the environment by returning to society what we earn.

 We recognize and respect each other in all interactions and set the

example for our guests, business associates and colleagues.

 We encourage a fair environment that supports equal opportunity to

attract, develop and retain the best talent and endeavor to have fun too.

Good Earth - It is a perfect place to relish authentic Chinese food. Taj hari

Hotels Resorts and Palaces presents EARTH (Environment Awareness &

Renewal at Taj Hotels), a project which reiterates the conscious effort of one of

Asia’s largest and finest group of hotels to commit to energy conservation and

environmental management. TAJ focuses on class leadership rather than on cost

leadership. They believe in giving value to the customers.

Even the customers are not bothered about the price because they receive

desired value and services. They provide unique features to the customers both-

tangible and intangible

37
The Courtyard - Along with a European charm, the Courtyard in this 5 star

deluxe Jodhpur hotel offers delicious Mediterranean food.

Barbeque - This specialty restaurant is a seasonal restaurant that serves finger

licking grills and kebabs (October to March).

Verandah Café - This café serves a wide variety of world flavors and is an

extension of Marwar Restaurant.

The Bar - It is an ideal place where you can pep up your spirits.

Conference and Banquet facilities

This 5 star deluxe Jodhpur hotel comes with 5 spacious meeting rooms.

Business guests can avail innovative business services to make their trips

lucrative. Beside meeting venues, the hotel has a well-equipped business center

where you can get connected with your business and clients.

Recreation :

A spectacular array of recreational facilities at Taj Hari Hotel Jodhpur will

instantly kick your blues away. The hotel has a swimming pool, health club and

Jacuzzi. Enjoy playing cricket, croquet, dart, table tennis and pool polo while

staying here. Besides, guests can also enjoy cultural performances and

sightseeing tour of the city.

Special services/Facilities:-

38
  Currency Exchange

 Fax

 Pool

 Parking

 Wake up Service

On-Site Services

Laundry/ Valet * 24 hr room service * Safe Deposit Box * telephone -STD/ISD *

Parking * Wake Up Calls * Postal Service * Luggage Storage.

Business ServicesAudio-Visual Equipment * Catering * Computer Modem

Hookups * Copy Center * Copy Service * Fax Machine * Fax Service

General Information:-Hotel Location: Taj Hari Mahal is strategically located

close to the city center.

Nearby Attractions: Referred as the 'Blue City', Jodhpur is a fabulous tourist

destination of Rajasthan. Founded in 1459 A.D., Jodhpur is located on the

outskirts of Thar Desert. Jodhpur is dotted with numerous palaces, forts and

temples. Tourist attractions in Jodhpur are delight to all eyes. Besides temples,

palaces and forts, tourists can also go for excursions from Jodhpur such as

tourist places.

3 HOTEL PARK PLAZA

39
Hotel Chain : Sarovar Hotels

Five star Hotel

Jhalamand Road

Rooms : 45

Introduction:-

Park Plaza Jodhpur is a state-of-the-art business boutique hotel, ideally located

in the heart of the city, in close proximity to the market. This luxurious 5 Star

hotel is five minutes from the Airport and fifteen minutes from the Railway

Station.

The Hotel Park Plaza is vibrant and contemporarily designed, and the interiors

include a collection of thoughtfully sourced art pieces and artefacts.

Park Plaza has 45 guest rooms and suites, all elegantly designed and offering

the latest amenities and facilities.

Restaurant & Bar:-

40
Oasis: The Coffee Shop.Gardenia: The poolside restaurant provides a choice of

cuisines on a-la-carte basis..Geoffrey’s: Offers the connoisseurs a choice of

exotic cocktails drinks and coolers.

Room Facilities:-

24-hour Room & Valet service, Wi-Fi, Hair dryer, Mini bar, In room Safe Deposit

Vault, Satellite Cable TV, Tea / Coffee maker, Bathroom with telephones.

Other Facilities & Services:-

Banquet & Conference Facilities, Swimming Pool, Health Club, Concierge,

Currency Exchange, Travel Desk, 24-hours Fax / E-mail, Doctor on Call, Wi–Fi

Connectivity.

HOTEL MAPPLE ABHAY

41
 Hotel Chain : None

Four Star Hotel

Hotel Mapple Abhay

Paota Circle, Paota,

Jodhpur –
Rooms : 72

Introduction:-

Mapple Abhay, Jodhpur offers a perfect setting to experience the rich culture and

traditions of Rajasthan. You will cherish the royal warmth, hospitality and service

for a long time.

Mapple Abhay, Jodhpur is a 72 room friendly, relaxed and charming hotel in the

heart of the Sun City Jodhpur. Minutes away from the Umaid Bhavan Palace and

Mehrangarh Fort the guests are a handshake away from the magical past.

The Rajput chivalry and valour and the vibrant hues of history come alive in the

red sandstone city.we take home more than pictures as the Jodhpur experience

42
is offered on a platter. As our eyes soak in the grandeur you can almost hear the

victory bugle and Mapple Abhay lets you 'just be yourself' at the centre stage.

Restaurant & Bar :-

Elements: Elements, the unique multicuisine restaurant also offers special

Rajasthani creations like the spicy Lal Maas, delectable Gatte Ki Sabji and Dal

Bati that tantalize the taste buds of the most discerning gastronomes.

The Royal Peg: It offers the widest range of exotic Cocktails. The resident

mycologist serves them with panache and you can sip them in style.

Room Facilities:-

Elegantly appointed centrally air conditioned rooms, Tea coffee maker in all

rooms, An Electronic Safe, Well stocked Mini bar, Executive worktable, Point to

point lighting in the rooms, 24 hours hot & cold water supply, Direct dial

telephones, 24 hours Satellite TV.

Other Facilities & Services:-

Doctor on call, Conference Halls, Laundry service, Shopping arcade,

Swimming Pool, Travel desk, Foreign currency exchange.

5 HOTEL SHRI RAM EXCELLENCY

43
Hotel Chain : None

Economy Hotel

Residency Road Opp.Medical College jodhpur

Rooms : 24

Introduction:-

Hotel shri Ram Excellency is one of the most popular hotel at jodhpur. one of the
dream destinations in the world, which fascinates the tourists from across the
globe. The Suncity and the cozy accommodation, a place away from home, is
Hotel Shri Ram Excellency.

Hotel Shri Ram Excellency is a state of art business boutique, ideally located in
the heart of the city, close to all major offices, banks and markets. hotel is 3 Km.
from the airport and 2 Km. from the railway station and 10 minutes from the bus
stand.

With a firm belief in the age-old adage of "Atithi Devo Bhava" (Guest is God),

Hotel Shri Ram Excellency has succeeded in creating a benchmark in the

hospitality industry in a short period of time.

44
Restaurant and Bar:- Restaurant: Hotel Shri Ram Excellency's showcases

delicacy with myriad different flavor, awakening your taste buds to gourmet

cuisine of the orient serving food presented with aromatic spices that's cooked

with perfection.

Bar: Not available.

Room Facilities

Hotel Shri Ram Excellency provides 24 spacious & well lit rooms including

Executive, Super Deluxe and Presidential Suites full of coziness and comfort.

Attached Toilet fitted with exclusive range of sanitary-wares, neat and tidy

provides an atmosphere of freshness and warmth with the bath tub.

Other Facilities & Services:-

Safe deposit vault. Car Hire. Doctor on call. Courtesy airport pickup & drop.

Money changing. Major credit cards excepted. Direct dialing. Mini bar. Individual

temperature control. Different color theme. 24 hour hot and cold water. Dental,

shaving and medical kit and other important amenities.

6 HOTEL RATAN VILAS

45
Introduction:-

Built in 1920, by Maharaj Ratan Singhji of Raoti, a royal from Jodhpur and one of

the finest horsemen and polo players of his time, Ratan Vilas with its imposing

yet delicately carved exterior and elegant interiors is a genuine heritage edifice in

a sylvan setting.

The mansion, reminiscent of the romance of the bygone era, has been converted

into a hotel by Maharaj Bharat Singh, the grandson and R.K. Brijraj Singh, the

great grand son of Maharaj Ratan Singhji, with the exception that it still continues

to be their residence as well.

So, whether you are in the drawing room amongst fascinating old photographs

and family portraits or unwinding in the casual surroundings of the courtyard;

Whether you are savoring the traditional delicacies in the dining room or relaxing

46
in the garden under the soothing shade of a seasoned Neem tree; At Ratan Vilas

you will soon find yourself getting accustomed to a lively atmosphere and the

legendary Rajput hospitality.

In a nutshell, “Ratan Vilas as a place to stay will impress you as being cared for

Heritage Hotel Ratan Vilas Jodhpur - Hotel Overview

Stay at the heritage hotel Ratan Vilas in Jodhpur and experience regal pleasures

in perfect style. Situated at a distance of 2 kilometers from the Jodhpur railway

junction, heritage hotel Ratan Vilas is a tranquil holiday retreat replete with

typical Jodhpur regal paraphernalia.

Ratan Vilas was constructed in the year 1929 by Maharaja Ratan Singhji and is a

treasure hoard of royal portraits, hunting trophies and other royal treasures.

Rooms Furnished with Persian rugs, wooden furniture and artifacts, the rooms at

heritage hotel Ratan Vilas offer warm plush holiday sanctuaries. Every room is

equipped with telephones, televisions and safety lockers among other things.

Cuisine The multi-cuisine restaurant at heritage hotel Ratan Vilas offers a wide

menu of Indian, Continental and regional delicacies that are prepared from fresh

vegetables grown in the hotel's massive kitchen garden. Health Recreation

Health and recreational facilities extended at the heritage hotel Ratan Vilas

include a swimming pool, travel assistance, car rental, sightseeing tours, indoor

games, jeep safaris, health spa, beautician on call etc.

47
 7 HOTEL RAJPUTANA PALACE

Hotel Chain: None

(Deluxe Hotel)

Rajputana Palace,

Panchbati,Circle,AirportRoad,
Jodhpur

Rooms : 48 Introduction

Hotel Rajputana Palace, welcoming the guest in a spacious double height

marble lobby in bright and cheerful colours. Away from the hustle and

bustle of the city this unique place is geared for the idyllic pursuit of

happiness and is known for its traditional hospitality.

All rooms are luxuriously appointed with all modern amenities and a

breath taking view of Mehrangarh Fort and Maharaja's Palace. Our hotel

48
promises the tourist & business traveller alike a highly satisfying enjoyable

and memorable stay.

TARIFF

Single Double
Plan
Occupancy Occupancy
Room Type

Deluxe Room
EP 1050 1700

Super Deluxe Room

EP 1700 2550

Suite
EP 5100 5100

Extra Bed  
EP 400
Check out time 12 Noon

 Rates are inclusive of applicable taxes.

 Tariff may change during the fairs & festivals time.

Restaurant & Bar

Toran: The in house "Toran Restaurant

49
and open air garden restaurant provides you Indian, Continental, Chinese &

Rajasthani Dishes prepared by highly skilled chefs.

Somras Bar: Somras serves the best of Indian liquor of different taste and variety

with all major types of beer with traditional hospitality and personalized service.

Room Facilities :-

Hotel Rajputana Palace offers you 24 super deluxe & 24 deluxe elegant &

spacious rooms including 2 suites with wall to wall carpets and granite floor,

attached bath and dressing with running hot & cold water, round the clock room

service, television and direct dial telephone.

50
 8 HOTEL BALSAMAND LAKE PALACE

BasicFacts
City,Jodhpur
State,Rajasthan
Location:-Mandore Road,

Introduction
Rooms 9 Palace suites and 26 rooms in the Balsamand Garden Retreat on the
same property.

History:
Balsamand Lake Palace heritage hotel in Jodhpur is a very famous heritage
mansion in North India. Balsamand Lake Palace exemplifies perfect traditional
Rajputana architecture. The Balsamand Lake Palace heritage hotel, built out of
special Jodhpur red sandstone, was originally conceived as the summer resort of
the Jodhpur royalty. The Balsamand Lake is an artificial reservoir, built in the
13th century, which provided drinking water to the city.

51
Accommodation:

Balsamand Lake Palace is surrounded by lush green and manicured gardens

that add to the hotel's aesthetic attractiveness. The Balsamand Lake Palace

heritage hotel offers 10 plush suites and 26 other rooms in the Balsamand

Garden Retreat. The Balsamand Lake Palace is decorated in a royal fashion that

pampers your imagination and concept of a royal home.

Dining:

The well laid open air mutlicuisine restaurant at Balsamand Lake Palace offers

delectable dishes from Indian, Continental and Chinese cuisines.

The palace hotel also has a coffee shop, lounge and bar.

Busines and Banquets:

You will get excellent Conference and banquet facilities at hotel Balsamand

Lake Palace. The meeting rooms and boardrooms at Ajit Bhawan Palace are

set with all necessary equipments.

 Recreation and Other Facilities:

 Swimming pool

 24 hr room service

52
  Horse carriage buggy ride

 Cycling/ jogging track

 Croquet .

 Obstacle golf

 Aroma and Ayurvedic health Spa

 Running hot and cold water

 Direct dialing telephones.

 Doctor on call

 TVs with cable channels

 Credit cards and money exchange

City Info:

Jodhpur, the beautiful tourists destination in Western India is also referred as the

Blue City, due to the indigo tinge of the whitewashed houses around the

Mehrangarh Fort. The interiors of almost all the heritage houses in this place are

complemented with antique and traditional furniture and medieval Rajasthani

style tapestries and floor coverings.

53
 9 HOTEL RANBANKA PALACE

State Rajasthan
Location Jodhpur, Rajasthan
Rooms 58 rooms

Introduction

Overlooking the magnificent Mehrangarh Fort on the one side and gigantic

Umaid Bhawan on the other is the majestic Ranbanka Palace of Jodhpur. A

perfect blend of the royal style and modern luxurious comforts, Ranbanka Palace

boasts of providing a memorable stay and warm hospitality to its guests. One of

the finest heritage hotels in the Jodhpur city, Ranbanka Palace is preferred

equally by both holiday makers and business travelers.

54
History

Built for Maharaja Ajit Singhji, the younger brother of Maharaja Umaid Singh ji,

Ranbanka Palace is a beautiful sandstone building that has now been converted

into a heritage hotel.

Accommodation
Offering 58 well furnished and tastefully appointed rooms/suites, Ranbanka

Palace provide you with a fabulous staying experience. The rooms in Ranbanka

Palace are elegantly decorated with antique colonial furniture and have a warm

and a cozy ambience. The rooms are categorized as deluxe and suites and are

replete with modern comforts making the stay of its guests luxurious.

Dining

With two fine restaurants to choose from, dining can be quite a memorable

experience at Ranbanka Palace. ‘Panchranga’ is a multicuisine buffet restaurant

at Ranbanka that is beautifully decorated in the royal style and takes you to the

bygone era. The restaurant is air conditioned and serves wide variety of cuisine

from across the continents for its guests to relish and tickle their taste buds.

Besides, ‘Roof Top Restaurant’ at Ranbanka is ideal for Theme and Mashaal

dinners. ‘Trophy Bar’ is a well stocked bar at Ranbanka Palace.

55
Business and Banquets

Providing state of the art business facilities, Ranbanka Palace is ideal for

business travelers as well. The hotel also provides well facilitated business

center to business travelers.

Recreation

Recreation facilities provided at Ranbanka Palace are aplenty. Swimming Pool,

Health Spa, folk dance evenings etc. are some of the leisure activities you can

avail in Ranbanka Palace.

Other Facilities

Doctor on call, currency exchange, car rentals, express laundry/dry cleaning,

babysitting, florist and room service.

City Info

Also known as the Blue City, Jodhpur in the Rajasthan state of India is one of the

major tourist destinations of India. Known for its forts, palaces and temples,

Jodhpur is visited by large number of tourists every year.

56
 HOTEL ROYAL PALACE

INTRODUCTION

The Royal Palace Jodhpur is built and managed by the princely family of
Khanpur. A perfect blend of traditional hospitality and modern amenities, the
Royal Palace Jodhpur is one of the best budget hotels in Jodhpur. The hotel is
conveniently located at a distance of 2 km from the railway station and bus
stand.

Accommodation:-
The rooms at the hotel are all cocoons of comfort and luxury. Well appointed and
well attended, these rooms offer state of the art facilities. The modern amenities
available here make a stay at the hotel a truly memorable one. The in-room
facilities are: 

 Attached bathroom
 Running hot & cold water
 Television
 Dressing area
 Direct dial telephones
 Room service

57
Dining
The restaurant at the hotel serves lip smacking Indian, Chinese, Continental and
local cuisines. It remains open for breakfast, lunch and dinner and serves both
vegetarian and non-vegetarian dishes.

Business Facilities

International dialing, etc. are available at the hotel.

Recreation
The travel desk arranges for village safari, folk performances at the hotel, on
request.

Other Facilities at Royal Palace Jodhpur 

 Doctor on call
 Laundry
 Housekeeping
 Baggage storage
 Parking
 Car rental
 Airport pickup
 Currency exchange
 All major credit cards accepted

11 HOTEL GHOOMER

58
 HOTEL: Budget Hotel

Hotel Chain; RTDC Hotels

Hotel address: High court road, jodhpur

Rooms : 75

Introduction:-

An RTDC guesthouse, budget Hotel Ghoomar offers warm Marwar style

hospitality. Situated at a distance of 5 kilometers from the airport and at a

distance of 2 kilometers from the railway station, Hotel Ghoomar is conveniently

accessible. A low budget hotel, Hotel Ghoomar offers delightfully regal stays and

gives you a fair taste of ethnic Jodhpur.

Facilities

59
Hotel Ghoomar facilities are a pot pourri of luxury and basic amenities that

enchant you at amazingly budget rates. Some of the hotel amenities on offer at

Hotel Ghoomar include travel assistance, safe deposit, laundry services, car

rentals, shopping arcade, currency exchange facilities etc.

Cuisine

Chefs at the multi-cuisine restaurant at budget Hotel Ghoomar conjure up Indian,

Continental and Chinese delicacies for your hungry palate. Try the wide array of

wines, cocktails and beverages on offer at the Hotel Ghoomar bar.

Accommodation

All rooms at budget Hotel Ghoomar offer standard room amenities such as

attached baths with running hot and cold water, telephon

Restaurant: Restaurant of hotel Ghoomar offers Rajasthani, Indian, Continental

and Chinese cuisines.

Bar:  Serving Indian, Rajasthani Liquor & Wine.

Room Facilities

Attached Bathroom with Running Hot & Cold Water.

Other Facilities & Services

60
Doctor on Call, Conference Hall Sight Seeing & Package Tours, Cloak rooms,

Car Rental, Car Parking & Laundry

TARIFF

Room Type
Plan Single Double Extra Bed

Non AC Room
CP 1265 1485 440

AC Room
CP 1925 2310 495

AC Superior Room
CP 2475 2860 605

Suite
CP 3740 4565 715
Check out time 12 Noon
 Rates are inclusive of applicable taxes.

 Rates may change during the fairs & festivals time.

 Rates are in Indian Rupees.

61
 12 HOTEL CITY PALACE

Introduction:-

Hotel City Palace started in year 1995.Situated in the center of Sun city, major
tourist attractions are proximate to our Hotel. We have 21 air-conditioned rooms
equipped with modern amenities including Restaurant, Bar, Conference facilities
etc. Our conference capacity is 70-80 people at a time. The conference facilities
include Slide Projector, OHP and PA system. We serve North Indian, South
Indian, Chinese and Continental cuisine.

The luxurious comfort of elegantly furnished rooms, the idylic serenity of the bar
& our inimitable special cuisine make Hotel City Palace "A Home Better than
home"
Accommodation:

21, Superbly appointed rooms. All rooms are equipped with air-conditioning,

direct dialing telephone, colour television with satellite channels refrigerator,

attached bath, 24 hrs. hot & cold water.

Restaurant : India, South Indian Chinese and also continental and Rajasthani

specialties

62
Amenities : Elevator, Banquet and Conference Facility, 24 hrs. Money changer,

Safe deposits Laundry, Credit cards, Rooms Service, Doctor on call, Courtesy

cab on request.

:: TARIFF :: 

Singl
 Room Type  Double
e
 Deluxe 1400/- 1600/-
 Super Deluxe 1800/- 2000/-
 Extra Person 300/-  

63
PORTER’S FIVE FORCES MODEL

SUPPLIER POWER
   

BARRIERS
THREAT OF
TOENTRY
SUBSTITUTE
S

BUYER
 
POWER

MODEL FOR INDUSTRY ANALYSIS

INTRODUCTION
The model of pure competition implies that risk-adjusted rates of return should be

constant across firms and industries. However, numerous economic studies have

affirmed that different industries can sustain different levels of profitability; part of

this difference is explained by industry structure

64
Michael Porter provided a framework that models an industry as being influenced

by five forces. The strategic business manager seeking to develop an edge over

rival firms can use this model to better understand the industry context in which

the firm operates.

Porter’s model is based on the insight that a corporate strategy should meet the

opportunities and threats in the organizations external environment. Especially,

competitive strategy should base on and understanding of industry structures

and the way they change. Porter has identified five competitive forces that shape

every industry and every market. These forces determine the intensity of

competition and hence the profitability and attractiveness of an industry. The

objective of corporate strategy should be to modify these competitive forces

in a way that improves the position of the organization. Porter’s model supports

analysis of the driving forces in an industry. Based on the information derived

from the Five Forces Analysis, management can decide how to influence or to

exploit particular characteristics of their industry.

1.BARGAINING POWER OF SUPPLIERS

The term 'suppliers' comprises all sources for inputs that are needed in order to

provide

goods or services.

 The high class hotels are operating by few hotel chains like-TAJ,EIH,ITC

PALACE so they have a control over the industry.

65
  There are no substitutes for spas and five star hotels.

 The hotels customers are fragmented, so they have to reduce their

bargaining power to attract the customers.

 The Taj, ITC are having various rates and tariffs. Because they are

having their own brand image.

 The hotel chains are operating different services like Spas, Boatels,

Resorts, City Centers, Heritage HOTELS,etc.

2 . BARGAINING POWER OF CUSTOMERS

Similarly, the bargaining power of customers determines how much

customers can impose pressure on margins and volumes.

 The hotel industry is one of the most invested in its fixed assets. So they

are trying to recover their amount quickly.

 The suppliers are providing better information about them to attract the

customers’ .Here the buyers are highly informed.

 f the hotel price changes are moderate, the Customers have low margins

and are price sensitive.

 Some unseasoned timings the hotels are offering discounts and

incentives to reduce the bargaining power of buyers.

66
3.THREAT OF NEW ENTRANTS

The competition in an industry will be the higher; the easier it is for other

companies to enter this industry. In such a situation, new entrants could

change major determinants of the market environment (e.g. market shares,

prices, customer loyalty) at any time. There is always a latent pressure for

reaction and adjustment for existing players in this industry.

 The foreign hotel chains are tied up with Indian hotels to reduce the

initial cost and using the latter’s brand name.

 Brand loyalty of customers like TAJ, ITC, and LEELA PALACE affects the

new entrants.

 Access to raw materials and Distribution channels are controlled by

Existing players likeTAJ, ITC.

 The cost of land in India is high at 50% of total project cost as against

15% abroad. This acts as a major deterrent to the Indian hotel industry.

 n India the expenditure tax, luxury tax and sales tax inflate the hotel bill by

over 30%. Effective tax in the South East Asian countries works out to

only 4-5%..

67
4. THREAT OF SUBSTITUTES

A threat from substitutes exists if there are alternative products with lower prices

of better performance parameters for the same purpose. They could potentially

attract a significant proportion of market volume and hence reduce the potential

sales volume for existing players.

This category also relates to complementary products.

 Brand loyalty of customers (TAJ, ITC, LEELA PALACE, etc,) is dominating

the substitutes.

 The hotel relationship with customer and costs also the reasons to switching

to substitutes.

 The price variation of same class hotel services from various brands is one

of the reasons to choose a substitute.

 The present demand and supply of hotel rooms is one of the reasons to

choose a substitute.

 More fixed cost and switching costs affects the business.

68
5. COMPETITIVE RIVALRY BETWEEN EXISTING PLAYERS

This force describes the intensity of competition between existing players

(companies) in an industry. High competitive pressure results in pressure on

prices, margins, and hence, on profitability for every single company in the

industry.

 The top competitors in hotel industry are having the same services like five

star, spas ,boatels and motels, heritage hotels and palaces.

 The healthy competition among the all players is helping to increase the

industry growth.

 Intense in metro cities, slowly picking up in secondary cities.

69
CHALLENGES FOR HOTEL INDSTRY

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

hotel industry is the unavailability of quality workforce in different skill levels. The
hotel 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

4. Intense competition:- 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.

70
5. Customer expectations:- As India is emerging as a destination on the global

travel map, expectations of customers are rising. The companies have to focus

on customer loyalty and repeat purchases.

6. Manual back-end:- Though most reputed chains have IT enabled systems

for property management, reservations, etc., almost all the data which actually

make the company work are filled in manual log books or are simply not tracked.

7. Human resource development: -Some of the services required in the

tourism and hotel industries are highly personalized, and no amount of

automation can substitute for personal service providers. India is focusing more

on white collar jobs than blue collar jobs. The shortage of blue collar employees

will pose various threats to the industry. 

71
 Chapter - 3

Research methodology

Market Research is a systematic gathering recording analyzing data about

problems relating to the marketing of product and services. It is the process of a
systematic and in depth study an area of investigations. Supported by the
collections, completion and end presentation of relevant details for further
utilization. It involves scientific analysis that would result in the formulation of new
theories, the discovery of new techniques, a modification of old concepts or
rejections of an existing theory. Marketing research plays a vital role of making
available the right at right time, right place and to the right person for use in
decision making. It is very difficult to find out information about the company’s
strategies and polices. Since the research will be doctrinal and non-doctrinal in
nature, therefore the data would be collected both from secondary and primary
sources of information. On the basis of the data collected, a questionnaire will be
developed, which would further help in field study and collection of primary data.
So, research would also follow empirical research. Therefore the approach for
research would be deductive approach. Thus, research methodology is a way to
systematically solve the research problem. It includes:

1. To know the research problem.

2. To specify the specifications.
3. To review literature.
4. Data verifications.
5. Data analysis.
6. Interpretations

72
3.1 Title of the study: A study of Hotel industries at jodhpur.

3.2 Duration of the Project is one week.

3.3 Objectives of the study :-

Primary Objective.

Sufficient information has been provided in the project about the company

and its proceedings. Thus, it is referable. – More knowledge and experience

gained in making a project report. – For the purpose of comparing some of

the most luxurious and biggest hotels of India. – For the purpose of

submitting the IRP. – Last but not the least, it is done as my interests lie in

this industry.

1. To study the Hotel industry of Jodhpur.

2. To study the recessionary effect on the hotel industry at Jodhpur.

3. To understand the complete procedure and requirements of jodhpur Hotel

Industry.

4. To find the potential in existing market.

5. To measure the satisfaction level of the existing customers and to make

the customers awareness about the new products and services offered by

Hotel Industry of Jodhpur.

6. To get the cause of losing customer satisfaction.

7. To know what kind of improvement is required to be the best in hotel

sector. To understand the current market position and to evaluate the

improvements required for hotel industries.

8. To understand the services changes needed to give it a competitive edge

in the market.
73
Secondary objective:-

 To find which is the top ranking hotel at jodhpur.

 What are the areas where the hotels are lacking.

 To improvement its services for attract more customers.

 To identify the strategies adopted by hotels.

 To identify the opportunities and threats for hotels in the market, and

analyses its strengths and weaknesses.

Scope of the study

Time frame: A two week’s time was given for the completion of the

project. Weekly submissions and check-ups of data was done.

Area: The study was based only in the jodhpur market, i.e. Taj Hotels and

some of the other major jodhpur hotels.

Market study: Data collected basically from the internet and some

business magazines. Financials and market shares provided.

Limitations: Time frame for study was tight. Schedule had to be

maintained.

Access to data: Internet, Books, Magazines, Newsletters, Word-of mouth

information etc.

74
DATA COLLECTION TOOLS

Depending upon source data collection is classified under two categories:

1. Primary Data
2. Secondary Data

PRIMARY DATA

The data which are originally collected by an investigations or agency for the first

time for any time for any statistical investigations used by them in the statistical

analysis are termed as primary data.

SECONDARY DATA

The data which have already been collected and processed by some agency or

person and taken over from these or used by any other agency for their statistical

work are termed as secondary data.

The methodology used for the data collection was based on personal

observation & information gathered through various sources like Internet, annual

reports etc. The information so received was properly analyzed, interpreted to

the right conclusions.

The research study has been carried out by adopting the following methodology:-

1. The review of available literature was made to develop the conceptual

framework of Hotel industry.

2. The study has been based on primary & secondary data both.

75
 In data collection method we shall collect the secondary data from following

sources:-

 News paper

 Magazine

 Internet

 Survey

 Questionnaire

Research Design

Exploratory Research

According to Kothari (2003), the primary purpose of exploratory research is to

shed light on the nature of situation and identify any specific objective or data

needs to be addressed through additional research. Exploratory research is the

most useful when a decision maker wishes to better understand situation, identify

relevant courses of action or gain additional insights before an approach can be

developed. In general, exploratory is appropriate to any a problem about which

little is known. Exploratory studies are distinguished by flexibility concerning the

methods employed. Literature searches, experience surveys and study of

selected studies are some commonly used approaches (Kothari, 2004).An

effective way of doing exploratory research is to seek out and talk to individual

with expertise related to the situation being investigated.

76
  Designed to generate basic knowledge, clarify relevant issues uncover

variables associated with a problem, uncover information needs, and/or

define alternatives for addressing research objectives.

A very flexible, open-ended process.

Conclusive Research:

The insights gained from exploratory research might be verified by conclusive

research, as the objective of conclusive research is to test specific hypothesis

and examine specific relationship (Malhotra, 1999). Conclusive research is

especially useful when the decision-maker already has in mind on or more

alternatives and is specifically looking for information pertinent to evaluating

them. Therefore, when conductive a conclusive research, the decision maker can

choose the best course action in a situation.

The kind of research is based on large, representative samples, and the data

obtained are

 subject to quantitative analysis

Descriptive Research :-

Descriptive research is the design involved in the vast majority of marketing

studies. The goal of descriptive research, as the name implies is essentially to

describe something. Specifically, it is intended to generate data describing the

composition and characteristics of relevant groups of unit such as customers,

77
salespeople, organization and market areas (Parasuraman, 1991).Data collected

through descriptive research can provide valuable information bout the study

units along relevant characteristics and also association among those

characteristics.

 Designed to provide further insight into the research problem by

describing the variables of interest.

 Can be used for profiling, defining, segmentation, estimating, predicting,

and examining associative relationships.

Causal Research

 Designed to provide information on potential cause-and-effect

relationships.

 Most practical in marketing to talk about associations or impact of

one variable on another.

Research Instrument used If one wants to know that how much people buy a

particular brand or what they think about the brand or a particular company. Thus

the questionnaire method has come to be the more widely used of the true data

collection method.

The questionnaire method in general has a number of advantages. A

questionnaire consists of list of questions to be asked from the respondents and

the space provided to record the answer.

Questionnaire in the project consists of: Multiple Choice questions – question of

this type offer the respondents an alternative to choose right answer among

78
other. Sample design is a definite plan of obtaining some items from the whole

population. The sample design used in this project is: Convenience Sampling –

This type of sampling is chosen purely on the basis of convenience of the

interviewer.

Sampling Techniques: –

Sampling may be defined as the selection of some part of an aggregate or

totality on the basis which a judgment or interference about the aggregate or
totality is made. In other words, it is the process of obtaining information about an
entire population by examine only a part of it. In most of the research work and
surveys, the usual approach happens to be to make generalizations or to draw
inferences based on samples about parameters of populations from which the
samples are taken.

Sampling technique Sample units. Non- probability sampling People who are in

hotel business.

Population (or universe) is the aggregate or totality of statistical data forming a

subject of Investigation, for example,
1) The population of books in the National Library.
2) The populations of the heights of Indians.

79
A Sample is a portion of the population which is examined with a view to
estimating the
Characteristics of the population, i.e.,
1) To assess the quality of a bag of rice, we example only a portion of it. The
portion selected from the bag is called a sample, while the whole quantity
of rice in the bag is the population.
2) To estimate the proportion of defective articles in a large consignment,
only a portion (i.e, a few of them) is selected and examined. The
selected portion is a sample.

Methods:-

Direct interview through Questionnaire

Data analysis method -: Graphical method

3.4 TYPE OF RESEARCH

Research of the project was Field Research Analysis.

Field Research:

Field research are ex – post facto scientific inquires that aims at finding the
relations and inter – relations among variables in a real setting. Such studies are
done in life situations like communities, schools, factories, organizations and
institutions.

Advantages of Field Study

1) They are close to real life, and they cannot be criticized on the ground that
they are remote from real settings or are artificial. Field studies are
more socially significant than other types of study.
2) In real settings, variables exert their influence fully and, as such, the
strength of variables is another advantage of field studies.
3) field studies are also strong in their heuristic quality.

80
Limitations of the Field Study

1) Such studies are scientifically inferior to laboratory and field experiments.

2) There is lack of precision in the measurement of variables. This limitations
arises on
account of the greater complexity of field situations.
3) Such studies have practical problems in respect of feasibility, cost,
sampling, and time. For instance, they are likely to take more time and
involve a great cost.

3.5 Sample Size

20 Respondents (age ranging between 18 years to 50 years) and 12 Hotel

profile are included

81
 Chapter-4

Facts and findings

The type of data collection refers to the main process used in the

collection of statistical data by the primary source of the data, those

commonly used being survey data collection and administrative data

collection. Each of these broad types may be further broken down on the

basis of some characteristic, e.g. the nature of the data provider

(enterprise/household) or exhaustiveness (sample survey, complete

enumeration, census).

Surveys refer to both sample surveys and censuses.

Specialized surveys are those concerned with a single subject or issue.

Specialized surveys may be ad hoc or they may be implemented as part

of an on-going national survey programme but conducted with separate

samples because of subject-matter or other considerations. They may be

conducted periodically, irregularly or only once. In the case of commodity,

they collect information on the physical quantities in original units and/or

commodity equivalent for energy commodities, produced or consumed

whereby specialized surveys enquiring on production are surveys to

producers and specialized surveys enquiring on consumption are surveys

to consumers.

82
 These specialized energy surveys complement regular structural and

short-term business surveys that enquire on production-related and

financing-related variables in monetary terms.

Administrative data is the set of units and data derived from an

administrative source (that is, the organizational unit responsible for

implementing an administrative regulation (or group of regulations), for

which the corresponding register of units and the transactions are viewed

as a source of statistical data). [Examples of administrative data are

custom data on imports/exports, data from tax records etc.

83
IMPACT OF RECESSION ON HOTEL INDUSTRY

Recession is a decline in a country's gross domestic product (GDP) for two or

more consecutive quarters of a year. A recession  is also preceded by several
quarters of slowing down.

GDP= Consumption + investment + government spending + (exports-

imports)

Negative:-

The state of turmoil in global financial markets has generated new concerns for

the hospitality industry. Industrial and economic growth/ slowdown has direct impact

on the Indian hotel industry. Existing hotels in India are also likely to benefit from

the improved performance of the non-room sources of income, namely Food &

Beverage (including banquet operations), Spa, Corporate Club memberships and

other ancillary services. Hotel Industry has been built as an infrastructure for

tourism in which the scope of earning is almost infinite, considering the potential

of this global industry. Hotel industry is never a commodity supply like a

package, process for promotion of rooms and supply of food, but demands

hospitality as well. First pre-requisite of hotel industry is forecast of future

demand, in terms of demand that the right supply at right place, right time and

right price is built up. One hotel room alone creates three direct & nine indirect

job opportunities which makes it a labour intensive industry. Hotel is a essential

destination facility that a country must provide to built up its tourist image. India  

Challenges for the hospitality industry are:

84
1. Shortage of skilled employees

2. Retaining quality workforce.

3. Shortage of rooms.

4 .Unemployment due to low business Reduction in Foreign Exchange Reduction

in FDI.

5. Decline in growth of foreign tourist arrivals (FTAs): India receives huge tourist

inflows from the UK and US.

6 .Due to recession many countries like the UK, US, Australia, etc had issued

travel advisory notes. This has led to huge cancellations/postponements of room

bookings by many foreign tourists to the tune of 35-40% in the last 3-4 months.

Positive impact:- 
1. Reduction in interest rates.
2. Reduction in taxes.
3. Entry for new players.

4. Customer can book at the last minute & have opportunity to negotiate.

5. More discounted hotels deals and easy availability.

6. Discounts in luxury services.

85
Products Key Players Significance

Products:-

Rooms .

Conference Rooms .

Banquets & Halls.

SPA facility. Restaurants & Bar 12. Recreation facility

Key Players

1) ITC Limited

2) Taj Hotels

3) RtdcHotel

5) Hertiage Hotels

86
 Chapter-5

RECOMMADATIONS AND SUGGESTIONS:-

 Tie ups with institutes : It is the duty of the industry 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 Research : Every institute must

spend some amount for the research which is essential for further

development and understand the present situation . the 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 .

industry should involve in the researchers by providing timely information

and data which is ultimately useful for them only .

 Good advertising is a major problems to jodhpur hotels.

 Technology and online booking.

 .Brand recognition..

87
  Different pricing..

 Site and Locations’ is also improve success strategies.

 More advance and development should be there.

 More need of transparency is there.

 Customer satisfaction is also more important.

 The hotels are lacking in many areas so there is a need of

improvement.

 The competition are in hotel industry are there but its really works

for increase hotel image.

 Slow market growth causes firms to fight for market share. In a

growing market, firms are able to improve revenues simply

because of the expanding market.

KEY SUCCESS FACTORS

The market for the hotel industry can be divided into the following key consumer

segments

based on purpose of visit:

The Business Traveler

The Business Traveler is a businessman or a corporate executive traveling for

business purposes. This segment includes corporate, both domestic and foreign,

who open offices in the hotel premises during start-ups, corporate executives

who make extended stay either for long duration projects or while waiting for

permanent accommodation (primarily expatriates) and convention arrivals. While

the senior executives usually stay in 5 star hotels, the middle level executives,

88
who are much larger in number, stay in the budget hotels. This segment offers

better realizations, as they demand relatively smaller discounts on room rents

(about 10per cent-15percent), use more of facilities such as PCs, fax multi

media, conference halls. Also, the Food &Beverage (F&B) revenues are better

as they usually eat in the hotel itself due to their busy schedules.

The Leisure Traveler

The Leisure Traveler could either be a foreigner or a domestic traveler whose

primary purpose of visit is holiday or site seeing. Among non-business foreign

tourists the primary motivation for visiting India is largely cultural attraction

followed by conferences and conventions, tourist attractions like beaches, wild

life, hill resorts etc. Usually, leisure travelers are part of a package run by a tour

operator. The margins offered by leisure travelers tend to be lower because of

two reasons. Firstly, they seek higher discounts and also provide less F&B

revenues as they usually eat out. The business offered by this segment is highly

seasonal and tends to peak in the September to March period.

Premium and Luxury Segment

This segment comprises the high-end 5-star deluxe and 5-star hotels, which

mainly cater to the business and up market foreign leisure travelers and offer a

high quality and range of services.

DOMESTIC PLAYERS
Major players in the Indian Hotel Industry:
 Hotel Chains
They comprise major players including Indian Hotels Company Limited (the Taj

Group) and associate companies, EIH Limited (the Oberoi Group), ITC Hotels

89
Limited (the ITC Welcome Group), Indian Tourism Development Corporation

(ITDC) and Hotel Corporation of India (HCI) (the latter two being under the Public

Sector). Most of these chains had an established presence in one or more metro

cities prior to the tourism boom of the 1980s. Subsequent to the tourism boom,

these chains aggressively expanded their presence in other locations. The

private players among the hotel chains are industry leaders and have well-

established brand identities across the different industry segments.

 Small Chains

They are companies that have come up after the tourism boom of the 1980s and

1990s. Due to lack of prior experience in the hotel industry, these players have

preferred to opt for operating/management arrangements with international

players of repute. As late entrants, most of these hotel companies have fewer

properties, compared with the big chains. However most of these players have

initiated

 Public Sector Chains

ITDC and RTDC boast of some of the best locations in major cities but are

relative underperformers, as compared with their private sector counterparts

International Hotel Chains They are also looking at India as a major growth

destination. These chains are establishing themselves in the Indian market by

entering into joint ventures with Indian partners or by entering into management

contracts or franchisee arrangements. Some of the players who have already

entered or plan to enter the Indian market.

 Localized Hotel Companies

90
They are mainly comprise early entrants who have an established localized

presence and who preferred not to expand during the tourism boom but focus on

building and catering to a loyal customer base.

GOVERNMENT POLICIES
Tourism being a concurrent subject under the Indian constitution, both the central

and state governments regulates the hotel industry. The regulations include

statutory and regulatory sanctions (or approvals and licenses) from the Central

and State departments or agencies. This includes license to operate a

restaurant, a hotel license (issued by municipal authorities), license from police

(issued by local police) and a bar license (issued by excise department).

Tourism Policy

In order to develop tourism in India in a systematic manner, position it as a major

engine of economic growth and to harness its direct and multiplier effects for

employment and poverty eradication in an environmentally sustainable manner,

the National Tourism Policy was formulated in the year 2002. Broadly, the

“Policy” attempts to:

• Position tourism as a major engine of economic growth

• Harness the direct and multiplier effects of tourism for employment generation,

economic development and providing impetus to rural tourism

• Focus on domestic tourism as a major driver of tourism growth

• Position India as a global brand to take advantage of the burgeoning global

travel trade And the vast untapped potential of India as a destination.

91
• Acknowledges the critical role of private sector with government working as a

pro-active facilitator and catalyst.

• Create and develop integrated tourism circuits based on India’s unique

civilization, heritage, and culture in partnership with States, private sector and

other agencies.

Foreign Trade Policy

The Foreign Trade Policy announced in April, 2006, offered following incentives

to the hotel industry: Hotels and Restaurants are allowed to import duty free

equipment and other items including liquor, against their foreign exchange

earnings under the Served from India Scheme. As in previous years, this

entitlement is 5per cent of previous year’s foreign exchange earnings for hotels

of one-star and above (including managed hotels and heritage hotels) approved

by the Department of Tourism and other service providers in the tourism sector

registered with it.

The stand-alone restaurants will be entitled to duty credit equivalent to 10per

cent of the Foreign exchange earned by them in the preceding financial year

(instead of the earlier 20per cent). Service exports in Indian Rupees, which are

otherwise considered as having been paid for in free foreign exchange by RBI,

will now qualify for benefits under the Served from India Scheme. Also, foreign

exchange earned through International Credit Cards and other instruments

as permitted by RBI for rendering of service by the service providers shall be

considered for the purposes of computation of entitlement under the Scheme.

Benefits of the Scheme earned by one service provider of a Group company can

92
now be utilized by other service providers of the same Group Company including

managed hotels.

The measure aims at supporting the Group service companies not earning

foreign exchange in getting access to the international quality products at

competitive price and providing services of international standards. This new

initiative allows transfer of both the script and the imported input to the Group

Service Company. The earlier provision allowed transfer of

imported material only.

93
Analysis and Interpretation

Questionnaire

Q 1 Is there need of training for customer service staff?

Ans Yes 63%

No 37%

YES
NO

94
Q 2 Do you consider change in customers’ habits, taste and

preference an opportunity?

Ans Yes 68%

No 32%

70%

60%

50%

40%

30%

20%

10%

0%
YES NO

95
Q 3 Do your consider growth of tourism industry as an opportunity?

ANS:

Reply No. of respondents Percentage

Yes 10 82%
No 10 18%
Total 20 100%

90%
80%
70%
60%
50%
40% YES
30% NO
20%
10%
0%
S1
YES
NO

96
Q 4. Do you think any changes in policies of government and tourism

industry will affect your hotel industry?

Reply No. of respondents Percentage

Yes 10 68%
No 10 20%
Don’t know 10 12%
Total 30 100%
12%

Don’t know
20%

No
68%

yes

0% 10% 20% 30% 40% 50% 60% 70% 80%

Series1

97
Q 6. In today’s changing scenario- do you agree that hotel industry is

haunted by terrorism and has become a major threat (for your

hotels)?

Reply No. of respondents Percentage

Yes 10 59%
No 10 20%
Don’t know 10 21%
Total 30 100%

60%

50%

40% YES
NO
30%
DON’T NO

20%

10%

0%
1

98
Q 7.Do you consider retention of key staff critical?

ANS;- YES 60%

NO 40%

NO
40%

YES
60%

99
Q 8. Do your consider event risk as a threat?

ANS:- YES 70%

NO 20%

DON’T KNOW 10%

Don’t know
11%

NO
11%

YES
78%

100
Q 9. Do you consider international brand as a threat to your

organization?

ANS:- YES 58%

NO 30%

DON’T KNOW 12%

Don’t know 12%

NO 30%

YES 58%

101
Q 10. In what areas the hotel is not able to recover cost?

Is there any area which has not yet been taken care of by your

competitors?

102
Q11. Are there any complains reported by your customers?

Ans :- YES 55%

NO 45

NO
45%
YES
55%

Q13. Do you consider niche target segment as your strength?

103
Q 14. Do you think that the employees and the staff are skilled or do

they require customer service training?

Q 15.Do you consider fluctuations in international tourism arrival as a

major threat?

104
Q16 Does the hotel have a pool of skilled employees? If yes, is the

morale of the employees high?

105
Q 17.Has the hotel & the staff demonstrated the ability to adapt the

changes?

Ans Yes

No

Q18.What is the major source of your revenue and profit?

106
 Chapter -

Swot Analysis

Strengths:-

SWOT ANALYSIS  India has a rich cultural heritage. The "unity in diversity" tag

attracts most tourists.

 Linked to the tourism industry.

 Quality of services.

 Dynamic in the Tourism and Hotel industry.

 India’s rich cultural heritage.

 Low labour cost as against the world standards.

 Helps to boost travel &tourism.

 Demand & supply gap in star category hotels.

 Opportunity for investment for Indian and over seas players.

107
 Natural and cultural diversity :-

Segment will witness huge growth and expansion while the luxury segment will

continue to perform extremely well over the next few years.

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 privile ge 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.

 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.

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

108
star hotels are being 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.

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. 

4. Slow market growth causes firms to fight for market share. In a growing

market, firms are able to improve revenues simply because of the expanding

market.

5. Regional imbalance of Hotels.

109
6. capital incentives.

7. labour intensive.

8. high taxes and tariffs for every services.

9. High government duty on power tariffs.

10. lack of aggressive and effective marketing and promotional strategies.

11. Disparity in taxes charged by various states.

12. The prohibitive cost of power in India.

13. Land availability is a major hurdle for any hotel project. Release of Land

location is difficult because large tracts of India such locations comes under the

Government’s control.

110
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.

3New business opportunity.

4. Unique experience in heritage hotels.

5. In the long-term the hotel industry in India has latent potential for growth.

Demand between the national and the inbound tourists can be easily managed

due to difference in the period of holidays.

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 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.

2. Increasing competition:- There are many new hotels are coming up in next

few years. There is a threats for loosing customers by the hotels.
3. Event risk.

4. Lack of training man power in the hotel industry

5. The economic conditions of a country have a direct impact on the earnings in

hotel industry.

6. Changing trends in the west demand similar changes in India.

7. Political turbulence in the area reduces tourist traffic and thus the business of
the hotels.

8. Guest houses replace the hotels.

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Chapter -9

CONCLUSION

The outlook for the hotel market in jodhpur is optimistic. It creates interest of the

competitors to grow drastically. The hotel industry comprises a major

part of the tourism industry. The hotel industry contributes employment and

economical growth of the country.The report shows that the present and future

skyrocket scenario of the industry. Various classes and categories of hotels and

their services of the industry are very effective. The market share and expansion

of industry in Indian economy is rosy day by day. At present the government is

very liberal in regulating and licensing to the hotels because to increase foreign

tourist average daily rate. The thriving economy and increase business

opportunity have acted as a boon for jodhpur hotel industry. Hotel industry

organizations will have to find alternative avenues to attract and hire employees,

and have policies and practice to retain quality employees. The future scenario of

jodhpur hotel industry looks extremely rosy,. New MNC’s also contributes in

jodhpur hotel industry in next few years. This hotel industry analysis report helps

to know the full information of Indian hotel industry. The government support

towards the hotel industry and its development is appreciable. It creates interest

of the competitors to grow drastically. The hotel industry comprises a major part

of the tourism industry. The hotel industry contributes employment and

economical growth of the country.

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First, increases in occupancy are accompanied by increases in operating

expenses. For every room that is filled, there are additional costs such as

housekeeping, laundry and utilities that must be paid. When room rates decline

while variable operating expenses remain stable, margins are compressed.

Second, and most importantly, cuts to ADR are difficult to recoup when the

operating environment eventually improves. After slashing room rates in an effort

to fill a ,hotel, attempts to restore those rates to previous levels are likely to be

met with significant resistance. As such, the ability to benefit from an improving

economy will be delayed.

This assignment has enhanced our knowledge database about the tourism

and hotel industry. It has provided us with an insight into some of the best

hotel companies, as we were able to analyze the sum total of data

representation of their performance and survival techniques. Pertaining to

the current world recession scenario, we could find that it had little impact

on the tourism and hospitality industry. there is a cut throat competition

existing in the hotel industry and only survival of the fittest is possible. In

the hotel industry customer centric approach is followed wherein customer

is of prime importance and other factors are based on the decisions made

by the customers. A paramount importance is given to the human

resources as they constitute a major part of the industry. Also quality is

never compromised.

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Bibliography
 The information provided in this project is collected from various sources

like:-

 Google website

 Taj website(www.tajhotels .org)

 Itc website(www.itcportal.com)

 Ashok website(Ashokhotels.com)

 www.yahoo.com

 www.slideshare.com

 www.Scribd.com

 www.Wikipedia.org

 IndiaToday magazines

 Help from Parents, Teachers & Friends too. 

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