Introduction to Hospit
m m
ality Management
m
(Class XII)
m
1
, UNITmI
IntroductionmtomHospitalitymIndustry
Structure
1. Introduction
2. Structuremofmhospitalitymindustry
3. Characteristicsmofmhospitalitymindustry
4. Historymofmhospitalitymindustry
5. HospitalitymindustryminmIndia
5.1 Emergingmtrendsminmhospitalitymindustry
5.2 Careermoptionsminmhospitalitymindustry
5.3 Ecomfriendlympracticesminmhospitalitymindustry
6. Customermcareminmhospitalitymindustry
6.1 Whomismcustomerminmhotel?
6.2 Whatmaremthemneedsmofmcustomer?
6.3 Whatmarembenefitsmofmsatisfiedmcustomer?
6.4 Whatmaremthemtypesmofmcomplaintmbymcustomers?
6.5 Whatmaremthemimpactsmofmcomplaint?
6.6 Howmtomhandlemcomplaint?
7. HotelmChainsminmIndia
7.1 Profilemofmsomemmajormplayersminmhotelmindustry
7.2 Internationalm hotelm chains
8. Rolemofmhospitalitymindustryminmtourism
Objectives
Aftermreadingmthismunit,mstudentsmwillmbemablemto:
✓ Understandmthemmeaning,mconcept,moriginmandmdevelopmentmofmhospitalitymindustry
✓ Knowmnewmtrendsmandmdimensionsmofmhospitalitymindustry.
✓ Customermandmitsmimportanceminmhospitalitymindustry
✓ FamousmhotelmchainminmIndiamandmworld-wide
✓ Importancemofmhospitalitymindustryminmtourism
1. Introduction
Hospitalitymismthemrelationshipmbetweenmguestmandmhost,mormthemactmormpracticemofmbeingmhospi
table.mHospitalitymismalsomknownmasmthemactmofmgenerouslymprovidingmcaremandmkindnessmtomwh
oevermisminmneed.mAccordingmtomDictionary.commhospitalitymmeansm‘themfriendlymreceptionmandm
treatmentmofmguestsmormstrangers’.mSpecifically,mthismincludesmthemwelcome,mreceptionmandmente
rtainmentmofmguests,mvisitors,mormstrangersminmamwarm,mfriendlymandmgenerousmway.mThemwordm
hospitalitymismderivedmfrommthemLatinmwordmhospes,mmeaningm“guest,mvisitor,mormonemwhomprovi
desmlodgingmformamguestmormvisitor.”mInmIndia,mhospitalitymismbasedmonmthemprinciplemAtithimDevo
m Bhava,mmeaningm"themguestmismGod."
2
, KEYmTERM
Hospitality:mkindnessminmwelcomingmguestsmormstrangers
WhatmismHotel?
Am'hotel'morm'inn'mismdefinedmbymthemBritishmlawmasm'themplacemwheremambonafidemtravellermcanmr
eceivemfoodmandmshelter,mprovidedmhemisminmampositionmtompaymformitmandmisminmamfitmconditionmt
ombemreceived'.mHencemamhotelmmustmprovidemfoodmandmlodgingmtomamtravellermonmpaymentmandm
has,minmturn,mthemrightmtomrefusemifmthemtravellermismdrunk,mdisorderly,munkemptmormismnotminmam
positionmtompaymformthemservices.
2. Structuremofmthemhospitalitymindustry
Themhospitalitymindustrymismambillionmdollarmindustrymandmismamclustermofmindustriesmcomprising
m ofmlodging,mfoodmservices,mrecreation,mentertainment,mamusementmandmtravelmsectors.mThesemo
rganizationsmoffermcomfort,mentertainmentmandmguidancemtomstrangers.
FoodmServices Accommodation
RestaurantmCa Hotels
feteriamCateri Resorts
ng
mMotel
s
Fig.m1:mScopemofmHospitalit
Scopemofm
y
Hospitality
mIndustry TravelmServices
Entertainment
Amusement AirlinesmCr
uisesmRail
mparksmAttra
waysmCarm
ctionsmCasin rentalsmCo
os ach
Themhospitalitymindustrymcanmalsombemdividedminmdifferentmways:
Commercialmormservicemsector:mMostmofmthemhospitalitymoperationsmarembeingmrunmasmbusines
smtomearnmprofits.
Profitmmakingmormworkingmwithinmambudget:mMostmhospitalitymoperationsmneedmtommakempr
ofitmbutmsomemneedmtomworkmonmspecificmbudget.mFormexamplemschoolmcanteens.
Restrictedmcustomermormopenmtomthemgeneralmpublic:mMostmhospitalitymoperationsmcanmsellm
tomanyonembutmsomemaremrestrictedmtomsellingmtomamsmallmpartmofmthempublic.mFormexamplesmcus
tomersmonmtrain,mcruise.
3
, Commercial Service Profitm Working to General Restricted
Making ambud mpublic mcustomer
get s
• Hotels • Touristmatt • Most • School/College • Hotels • Train,mcruis
• Hostels ractions mcanteen em andmferr
• Contract • Hospitals ymcatering
mcaterer • Prisons • Casinos
s • Colleges
3. Characteristicsmofmthemhospitalitymindustry
Intangibility:mThemhospitalitymproductsmcannotmbemseen,mtasted,mfelt,mheardmormsmelledmbeforem
theymarempurchased.mWhenmthemsalesmrepresentativemofmamhotelmgoesmtomsellmhotelmroommtheymd
omnotmtakemhotelmroommwithmthem.mInmfactmtheymdomnotmsellmamroom.mInstead,mtheymsellmthemrigh
tmtomusemamroommformamspecificmperiodmofmtime.
Inseparability:mInmmostmhospitalitymservices,mbothmthemservicemprovidermandmthemcustomermm
ustm bempresentmformthemtransactionmtomoccur.mThemfoodminmamrestaurantmmaymbemoutstanding,mb
utmifmthemservicempersonmhasmampoormattitudemormprovidesminattentivemservice,mcustomersmwillm
down-ratemthemoverallmrestaurantmexperience.
Variabilitymormheterogeneity:mServicesmaremhighlymvariablembecausemtheirmqualitymdependsmo
nmwhomprovidemthemmandmwhenmandmwheremtheymaremprovided.mInmservicemdeliverymhighmlevelm
ofmhumanminvolvementmismrequired.mThismmakesmitmvarymeverymtimemthemconsumermismavailingmt
hemservice.mHotelmroommwillmremainmthemsamembutmthemservicemandmfacilitationminmthemroommwil
lmdependmuponmthemhousekeepingmstaff.mThemcleanlinessmofmamhotelmroommmaymhavemdifferentms
tandardsmifmthemhousekeepingmsupervisormormthemroommcleanermismchanged.
Perishability:mServicesmcannotmbemstored.mVacantmroomsmaremperishable.mThemunsoldmroommto
nightmcanmnevermbemsoldmagain.mLikememptymairlinemseats,mTheatremseatsmormsportmarenamseats,m
hotelmroomsmcannotmbemstored,mcannotmbemsavedmandmcannotmbemusedmamnew.
FixedmSupply:mSupplymofmroomsminmamhotelmismfixed.mAirlinesmadjustmtomdemandmbymtemporaril
ymaddingmormremovingmflights.mThismismnotmsomwithmhotels.
HighmOperatingmCost:mUnlikemmanufacturingmindustries,mwhichmoffsetmlabourmwithmlargemcapit
alminvestments,mhotelsmarembothmcapitalmandmlabourmintensive.mThemresultmismhighmfixedmcosts,m
whichmcontinuemwhethermormnotmthemhotelmhasmbusiness.mThusmamhighmpercentagemofmoccupanc
ymismneededmjustmtombreakmeven.
Seasonality:mSeasonalitymmeansmchangesminmbusiness,memploymentmormbuyingmpatternsmwhich
moccursmpredictablymatmgivenmtimesmofmthemyears.mOnmambusinessmsite,mseasonalitymismdefinedmas
mseasonalmfluctuationminmeconomicmormbusinessmactivitymwhichmoccursmagainmandmagainmregularl
ymduringmamyearmasmamresultmofmchangesminmclimate,mholidaysmandmvacationsm(DictionarymofmFina
ncem andmInvestmentmTermsm2011).mSeasonalitymindicatesmthemsubjectmmattermofmfluctuationsmo
fmdemandmormsupplyminmthemtourismmindustrymwhichmaremeffectedmduemtomweathermconditions,m
publicmandmschoolmholidays.m(Cooper,mFyall,mGilbertm&mWanhillm2005,m279.).mSeasonalityminmhot
elsminvolvesmfluctuationsm inm numberm ofm guests,m occupancym ratesm andm bedm nights.m Them India
nm hotelm industry
4
m m
ality Management
m
(Class XII)
m
1
, UNITmI
IntroductionmtomHospitalitymIndustry
Structure
1. Introduction
2. Structuremofmhospitalitymindustry
3. Characteristicsmofmhospitalitymindustry
4. Historymofmhospitalitymindustry
5. HospitalitymindustryminmIndia
5.1 Emergingmtrendsminmhospitalitymindustry
5.2 Careermoptionsminmhospitalitymindustry
5.3 Ecomfriendlympracticesminmhospitalitymindustry
6. Customermcareminmhospitalitymindustry
6.1 Whomismcustomerminmhotel?
6.2 Whatmaremthemneedsmofmcustomer?
6.3 Whatmarembenefitsmofmsatisfiedmcustomer?
6.4 Whatmaremthemtypesmofmcomplaintmbymcustomers?
6.5 Whatmaremthemimpactsmofmcomplaint?
6.6 Howmtomhandlemcomplaint?
7. HotelmChainsminmIndia
7.1 Profilemofmsomemmajormplayersminmhotelmindustry
7.2 Internationalm hotelm chains
8. Rolemofmhospitalitymindustryminmtourism
Objectives
Aftermreadingmthismunit,mstudentsmwillmbemablemto:
✓ Understandmthemmeaning,mconcept,moriginmandmdevelopmentmofmhospitalitymindustry
✓ Knowmnewmtrendsmandmdimensionsmofmhospitalitymindustry.
✓ Customermandmitsmimportanceminmhospitalitymindustry
✓ FamousmhotelmchainminmIndiamandmworld-wide
✓ Importancemofmhospitalitymindustryminmtourism
1. Introduction
Hospitalitymismthemrelationshipmbetweenmguestmandmhost,mormthemactmormpracticemofmbeingmhospi
table.mHospitalitymismalsomknownmasmthemactmofmgenerouslymprovidingmcaremandmkindnessmtomwh
oevermisminmneed.mAccordingmtomDictionary.commhospitalitymmeansm‘themfriendlymreceptionmandm
treatmentmofmguestsmormstrangers’.mSpecifically,mthismincludesmthemwelcome,mreceptionmandmente
rtainmentmofmguests,mvisitors,mormstrangersminmamwarm,mfriendlymandmgenerousmway.mThemwordm
hospitalitymismderivedmfrommthemLatinmwordmhospes,mmeaningm“guest,mvisitor,mormonemwhomprovi
desmlodgingmformamguestmormvisitor.”mInmIndia,mhospitalitymismbasedmonmthemprinciplemAtithimDevo
m Bhava,mmeaningm"themguestmismGod."
2
, KEYmTERM
Hospitality:mkindnessminmwelcomingmguestsmormstrangers
WhatmismHotel?
Am'hotel'morm'inn'mismdefinedmbymthemBritishmlawmasm'themplacemwheremambonafidemtravellermcanmr
eceivemfoodmandmshelter,mprovidedmhemisminmampositionmtompaymformitmandmisminmamfitmconditionmt
ombemreceived'.mHencemamhotelmmustmprovidemfoodmandmlodgingmtomamtravellermonmpaymentmandm
has,minmturn,mthemrightmtomrefusemifmthemtravellermismdrunk,mdisorderly,munkemptmormismnotminmam
positionmtompaymformthemservices.
2. Structuremofmthemhospitalitymindustry
Themhospitalitymindustrymismambillionmdollarmindustrymandmismamclustermofmindustriesmcomprising
m ofmlodging,mfoodmservices,mrecreation,mentertainment,mamusementmandmtravelmsectors.mThesemo
rganizationsmoffermcomfort,mentertainmentmandmguidancemtomstrangers.
FoodmServices Accommodation
RestaurantmCa Hotels
feteriamCateri Resorts
ng
mMotel
s
Fig.m1:mScopemofmHospitalit
Scopemofm
y
Hospitality
mIndustry TravelmServices
Entertainment
Amusement AirlinesmCr
uisesmRail
mparksmAttra
waysmCarm
ctionsmCasin rentalsmCo
os ach
Themhospitalitymindustrymcanmalsombemdividedminmdifferentmways:
Commercialmormservicemsector:mMostmofmthemhospitalitymoperationsmarembeingmrunmasmbusines
smtomearnmprofits.
Profitmmakingmormworkingmwithinmambudget:mMostmhospitalitymoperationsmneedmtommakempr
ofitmbutmsomemneedmtomworkmonmspecificmbudget.mFormexamplemschoolmcanteens.
Restrictedmcustomermormopenmtomthemgeneralmpublic:mMostmhospitalitymoperationsmcanmsellm
tomanyonembutmsomemaremrestrictedmtomsellingmtomamsmallmpartmofmthempublic.mFormexamplesmcus
tomersmonmtrain,mcruise.
3
, Commercial Service Profitm Working to General Restricted
Making ambud mpublic mcustomer
get s
• Hotels • Touristmatt • Most • School/College • Hotels • Train,mcruis
• Hostels ractions mcanteen em andmferr
• Contract • Hospitals ymcatering
mcaterer • Prisons • Casinos
s • Colleges
3. Characteristicsmofmthemhospitalitymindustry
Intangibility:mThemhospitalitymproductsmcannotmbemseen,mtasted,mfelt,mheardmormsmelledmbeforem
theymarempurchased.mWhenmthemsalesmrepresentativemofmamhotelmgoesmtomsellmhotelmroommtheymd
omnotmtakemhotelmroommwithmthem.mInmfactmtheymdomnotmsellmamroom.mInstead,mtheymsellmthemrigh
tmtomusemamroommformamspecificmperiodmofmtime.
Inseparability:mInmmostmhospitalitymservices,mbothmthemservicemprovidermandmthemcustomermm
ustm bempresentmformthemtransactionmtomoccur.mThemfoodminmamrestaurantmmaymbemoutstanding,mb
utmifmthemservicempersonmhasmampoormattitudemormprovidesminattentivemservice,mcustomersmwillm
down-ratemthemoverallmrestaurantmexperience.
Variabilitymormheterogeneity:mServicesmaremhighlymvariablembecausemtheirmqualitymdependsmo
nmwhomprovidemthemmandmwhenmandmwheremtheymaremprovided.mInmservicemdeliverymhighmlevelm
ofmhumanminvolvementmismrequired.mThismmakesmitmvarymeverymtimemthemconsumermismavailingmt
hemservice.mHotelmroommwillmremainmthemsamembutmthemservicemandmfacilitationminmthemroommwil
lmdependmuponmthemhousekeepingmstaff.mThemcleanlinessmofmamhotelmroommmaymhavemdifferentms
tandardsmifmthemhousekeepingmsupervisormormthemroommcleanermismchanged.
Perishability:mServicesmcannotmbemstored.mVacantmroomsmaremperishable.mThemunsoldmroommto
nightmcanmnevermbemsoldmagain.mLikememptymairlinemseats,mTheatremseatsmormsportmarenamseats,m
hotelmroomsmcannotmbemstored,mcannotmbemsavedmandmcannotmbemusedmamnew.
FixedmSupply:mSupplymofmroomsminmamhotelmismfixed.mAirlinesmadjustmtomdemandmbymtemporaril
ymaddingmormremovingmflights.mThismismnotmsomwithmhotels.
HighmOperatingmCost:mUnlikemmanufacturingmindustries,mwhichmoffsetmlabourmwithmlargemcapit
alminvestments,mhotelsmarembothmcapitalmandmlabourmintensive.mThemresultmismhighmfixedmcosts,m
whichmcontinuemwhethermormnotmthemhotelmhasmbusiness.mThusmamhighmpercentagemofmoccupanc
ymismneededmjustmtombreakmeven.
Seasonality:mSeasonalitymmeansmchangesminmbusiness,memploymentmormbuyingmpatternsmwhich
moccursmpredictablymatmgivenmtimesmofmthemyears.mOnmambusinessmsite,mseasonalitymismdefinedmas
mseasonalmfluctuationminmeconomicmormbusinessmactivitymwhichmoccursmagainmandmagainmregularl
ymduringmamyearmasmamresultmofmchangesminmclimate,mholidaysmandmvacationsm(DictionarymofmFina
ncem andmInvestmentmTermsm2011).mSeasonalitymindicatesmthemsubjectmmattermofmfluctuationsmo
fmdemandmormsupplyminmthemtourismmindustrymwhichmaremeffectedmduemtomweathermconditions,m
publicmandmschoolmholidays.m(Cooper,mFyall,mGilbertm&mWanhillm2005,m279.).mSeasonalityminmhot
elsminvolvesmfluctuationsm inm numberm ofm guests,m occupancym ratesm andm bedm nights.m Them India
nm hotelm industry
4
