Professional Documents
Culture Documents
Sandhya Live Project
Sandhya Live Project
Sandhya Live Project
Introduction
The Indian hotel industry is becoming as one of the key industries driving
growth of the services sector in India. The fortunes of the hotel industry have
always been linked to the prospects of the tourism industry and tourism is the
foremost demand driver of the industry. The Indian hotel industry has recorded
significant growth fuelled by robust inflow of worldwide tourists as well as
increased tourist movement within the country and it has become one of the
leading players in the global industry. Trends in the Industry:
The Indian hotel industry is highly fragmented with a large number of small and
unorganized players accounting for a lion's share. The major players in the
organized segment include Indian Hotels Company Ltd, Hotel Leela Venture
Ltd, EIH Ltd, ITC Hotels and ITDC. The industry is likely to experience robust
growth on the back of rising disposable incomes and favourable industry
statistics. The market is estimated to reach US$ 30 billion by 2015. The Indian
tourism and hospitality industry has emerged as one of the key drivers of
growth among the services sector in India. The third-largest sub-segment of the
services sector comprising trade, repair services, hotels and restaurants
contributed nearly US$ 187.9 billion or 12.5 per cent to the Gross Domestic
Product (GDP) in 2014-15, while growing the fastest at 11.7 per cent
Compound Annual Growth Rate (CAGR) over the period 2011-12 to 2014-15.
Tourism in India has significant potential considering the rich cultural and
historical heritage, variety in ecology, terrains and places of natural beauty
spread across the country. Tourism is also a potentially large employment
generator besides being a significant source of foreign exchange for the country.
INDUSTRY PROFILE
Hotel operators and observers often employ industry-wide averages as key
points of comparison and analysis for room rates, occupancy, and revenues. The
use of simple averages, however, can be misleading if one does not take into
account the possibility that a mean will be pulled in one direction or another by
extreme values. This analysis of three industry averages shows that those
averages are, indeed, subject to distortion, or skew. The analysis, which
examines figures for virtually all brand-name hotels in the United States,
determined that the means for average daily rate (ADR) and revenue per
available room (RevPAR) are skewed in a positive direction by hotels with
extremely high rates. On the other hand, occupancy is skewed in a negative
direction by a group of hotels with inordinately low occupancy levels.
Many of the extreme values are found in the top-25 markets, which have
hotels with inordinately high ADRs. Analysis of those markets shows that, once
again, the overall statistics are distorted by a relatively small set of hotels with
exceptional ADRs and occupancies. However, each of the top markets shows a
distinctive rate and occupancy pattern.
The pattern of skewed operating statistics carries over into individual
lodging segments. The greatest distortions arise in the luxury and upscale
segments, while economy and budget hotels record more consistent (normally
distributed) statistics.
Finally, the analysis shows that although the events of created much
turmoil for the industry, the hotel business had already cooled substantially
from its record pace of a year earlier. In conclusion, managers must be careful
in applying overall industry statistics to their own situation and should take into
account the factors that distort operating statistics.
- Brings an insight into the procedure for setting up a hotel, type of machinery
- The share of Travel & Tourism industry to the global GDP was 6.48% in the
year 2007 with value of US$ 3,493.19 billion and industry demand contributed
to 13.21% of global GDP in 2007.
- According to the report by World Travel and Tourism Council, India currently
ranks 18th in business travel and will be among the top 5 nations by the end of
2010.
- ASSOCHAM has projected that Medical Tourism is likely to become the
leading foreign exchange earner for India
According to the world travel and tourism council, the growth in the hospitality
industry is pegged at 15% every year, and with 2, 00,000 rooms (both luxury
and budget) needed in the country, the segment is poised for a stupendous
growth.
Travel tales
While the high influx of foreign tourists has ensured huge footfalls for the
sector over the years, internal tourism too has, off late, begun offering great
potential. With travelers taking new interests in the country, players in the
hospitality sector have had to offer the best of services, at affordable prices.
Also, with the USD 23 billion software services sector pushing the Indian
economy skywards, more and more IT professionals are flocking to Indian
metro cities, thus signaling a boom time for the hotel and hospitality segment.
Several other factors such as Commonwealth Games in Delhi are fueling the
need further.
Some of the Group's forthcoming ventures include The Cambay Spa &
Resort at Neemrana, Rajasthan - a proposed five star business hotel boasting of
one of the largest conference and convention facilities, another venture of Neesa
Leisure Ltd in Dahej (SEZ) to have 100 rooms including apartment and
conference facilities and Cambay Sapphire, Jodhpur - a business hotel.
Exclusive and innovative initiatives like the Cambay projects certainly focus on
ensuring a bright future for the Indian hotel industry.
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. Growth in demand for hotels was particularly high
during the early 1990s following the initiatives taken to liberalize the Indian
economy in FY1991, as per the recommendations of the International Monetary
Fund (IMF).
The euphoria of the early 1990s prompted major chains, new entrants and
international chains to chalk out ambitious capacity additions, especially in the
metropolitan cities. However, most of these efforts were directed towards the
business travelers and foreign clientele. In recent years, the hotels sector has
grown at a faster rate than GDP. As a result, the share of hotels & restaurants in
GDP at current prices has increased from 1.2per cent in FY2000 to 1.5per cent
in FY2005.
In constant (1999-2000) prices, the GDP from hotels and restaurants has
increased from Rs. 222.65 billion in FY2000 to Rs. 335.49 billion in FY2005.
As a result, the share of hotels and restaurants in total GDP at constant prices
has increased from 1.24per cent in FY2000 to 1.40per cent in FY2005.
Hotels in India are broadly classified into 7 categories (five star deluxe, five-
star, four star, three star, two star, and one-star and heritage hotels) by the
Ministry of Tourism, Government of India, based on the general features and
facilities offered. The ratings are reviewed every five years. As of December
2005 (latest available figure) there are following number and category of hotels.
No. of Hotels No. of Rooms
Star Category
5-Star 92 11332
Heritage 83 2216
To be 50 5127
classified
Total 1934 103973
The table excludes hotels in the unorganized sector that have a significant
presence across the country and cater primarily to economy tourists. 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
travellers and offer a high quality and range of services. The segment accounted
for 29per cent of the total hotel rooms in the country in December 2005.
Mid-Market Segment
This segment comprises 3 and 4 star hotels, which cater to the average foreign
and domestic leisure travellers. This segment also caters to the middle level
business travellers since it offers most of the essential services of luxury hotels
without the high costs since the tax component of this segment is lower
compared with the premium segment.
Budget Segment
Heritage Hotels
At any point in time, applications for classification are usually pending with the
Ministry of Tourism because of which such properties remain unclassified. The
number of hotel rooms pending classification has declined from historical 15-
20per cent to 5per cent of the total rooms available in the recent past.
Over the last decade and half the mad rush to India for business
opportunities has intensified and elevated room rates and occupancy levels in
India. Even budget hotels are charging USD 250 per day. The successful growth
story of 'Hotel Industry in India' seconds only to China in Asia Pacific.
The World Travel and Tourism Council, India, data says, India ranks
18th in business travel and will be among the top 5 in this decade. Sources
estimate, demand is going to exceed supply by at least 100% over the next 2
years. Five-star hotels in metro cities allot same room, more than once a day to
different guests, receiving almost 24-hour rates from both guests against 6-8
hours usage. With demand-supply disparity, 'Hotel India' room rates are most
likely to rise 25% annually and occupancy to rise by 80%, over the next two
years.
MNC Hotel Industry giants are flocking India and forging Joint Ventures
to earn their share of pie in the race. Government has approved 300 hotel
projects, nearly half of which are in the luxury range. Sources said, the
manpower requirements of the hotel industry will increase from 7 million in
2002 to 15 million by 2010.
With the USD 23 billion software services sector pushing the Indian
economy skywards, more and more IT professionals are flocking to Indian
metro cities. 'Hotel Industry in India' is set to grow at 15% a year. This figure
will skyrocket in 2010, when Delhi hosts the Commonwealth Games. Already,
more than 50 international budget hotel chains are moving into India to stake
their turf. Therefore, with opportunities galore the future 'Scenario of Indian
Hotel Industry' looks rosy. It is expected that the budget and mid-market hotel
segment will witness huge growth and expansion while the luxury segment will
continue to perform extremely well over the next few years.
In the hospitality industry, Average room rate (ARR) and occupancy are
the two most critical factors that determine the profitability, since most of the
marginal revenue gets added to the bottom-line. ARR in turn depends upon
location, brand image, star rating, quality of facilities, pricing of value added
services, complementary services offered and the seasonal factor. The hotels to
manage and invest their fund in India adopt many business strategies to
establish their place of business and create innovative service packages to their
custom. In a long-term perspective, these measures bring significant financial
returns.
The hotel industry in India has a latent potential for growth. This is
because India is an ideal destination for tourists as it is the only country with the
most diverse topography and relative political stability. At present India attracts
approximately 2.5 Million tourists every year, which is just 0.4% of the world
tourist arrivals.
Most players, with the exemption of IHCL and EIH, have entered into a
marketing tie-up with major international hotel chains. Thus we have Hyatt
Regency a renowned international hotel chain having tied up with AHL, Leela
having tied up with Kempinski and ITCH having a franchisee agreement with
ITT Sheraton to use the latter's brand name.
For the Indian hotel owners and the international hotel chains the benefit
is mutual, tie-up with an international hotel chain puts the hotel on the global
map with access to chain's reservation network worldwide. For the international
hotel chain they can ride on the boom of the industry without making enormous
capital investments on infrastructure and facilities. Associations with
international brand also play a major role in image building and attracting
foreign tourists. However the value of the international brand gets diluted if a
foreign entity enters an agreement with several Indian companies.
Luxury hotels operate under single tariff structure whereby the foreign
tourists are charged in dollar terms whereas the domestic guest is charged the
equivalent amount in rupees. The luxury hotels earn about two-thirds of their
revenue from foreign tourists. Leisure travelers constitute approximately 76.5%
of the total tourist arrivals whereas business travelers constitute 21% of the total
arrivals. The remainder is accounted by students. The hotel industry is the
second largest foreign exchange earner and between 1991 and 1998 there has
been a 100% growth in foreign tourists.
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.
CLASSIFICATION OF HOTELS:
Classification is based on many criteria and classifying hotels into different
types is not an easy task. The hotel industry is so vast that many hotels do not fit
into single well defined category. Industry can be classified in various ways,
based on location, size of property etc. The main hotel chains of India are: The
Taj Group of Hotels, the Oberoi Group and ITC Welcome group. Some of
the international chains are Hyatt, Marriott, and Le Meridian etc. these
properties have also come up in India now.
1. 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 Mahal, Mumbai
Airport hotels: These hotels are set up near by the airport. 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.
Rotels: These novel variants are hotel on wheel. Our very own "palace on
wheels" and "Deccan Odessey" are trains providing a luxurious hotel
atmosphere. Their interior is done like hotel room. They are normally
used by small group of travelers.
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.
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.
Economy/ Budget hotels: 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.
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: Hyatt Regency, New Delhi.
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: 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.
5. Based on Theme
Depending on theme hotel may be classified into Heritage hotels, Ecotels,
Boutique hotels and Spas.
Ecotels: these are environment friendly hotels these hotel use eco friendly
items in the room. Example: Orchid Mumbai is Asia first and most
popular five star Ecotels.
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.
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.
COMPANY PROFILE
About group – Clarks Inn Group of Hotels, one of the fastest growing hotel
companies in India, adds another milestone in its expanding network with its
debut in the southern state of Andhra Pradesh as it announces the opening of
Triguna Clarks Inn IN THE HISTORIC CITY OF KURNOOL. With the latest
addition, Clarks Inn now boasts of a portfolio of 84 hotels properties, including
44 in operation, spread across 18 states in India and one in kathmandu , Nepal.
In Room Minibar
Direct Dial Telephone
24 Hours in Room Dining
Laundry Services
Multichannel LCD TV
Electronic Safe
Work station
Running Hot/Cold Water
Newspaper
Wi – fi LAN Facility
Hair dryer(no request)
Iron box(no request)
24 hrs Laundry Service
The Bridge- Clarks Inn signature multi-cuisine restaurant brand ‘The Bridge’
will delight guests with its offering of Indian and international cuisines, 120
covers serving multi-cuisine delicacies. The multi cuisine restaurant has
widespread buffet &a-la carte options to choose from.
Coffee shop – 42 covers serving 24 hrs dining facility specially with local food
taste.
Look forward to welcoming you and your officials at Triguna Clarks Inn.
We promise you to serve you better and want to be attentive &sensitive to your
needs. We also seek to be innovative in meeting and also exceeding your
expectations.
Should you require any assistance or have any special requirements,I shall be
glad to assist you.
REVIEW OF LITERATURE
New Service Developments
In Today’s modern world ,competitive intensity and
customer expectations are constantly increasing in nearly all services industries
.Thus to compete with the others it becomes essential not only to provide
existing services well but also to create new approaches to service .
It is because the outcome and process aspects of service are
often combined to create the experience and benefits obtained by customers ,
both the aspects must be addressed in new service developments.
1. Major Service Innovations: These are new products for markets that have
not been previously defined. These products usually include both new service
characteristics and radical new processes .
6. Service Improvements: They are the most common type of innovations. They
involve modest changes in the performance of current products, including
improvement to either the core products or existing supplementary services.
4. Test: To monitor the performance of executed ideas, report the results to the
authorities and improve the process in stable operating environment.
The key issues involved in the development process of new services are:
1. New service development concerns all the activities involved in realizing new
service opportunities, product or service design, business model design and
marketing.
If your lawn needs mowing, you could buy a lawn mower and do it yourself or
you could hire a lawn maintenance service to take care of the chore. Such
decisions may be shaped by the customers skills, physical capabilities, time
budget etc.
Any physical product has the potential to create a need for related
possession service: Particularly if the product is a high-value and durable item.
Industrial equipment may require servicing throught out its lifespan,beginging
with shipping and installation and continuing with maintenance, cleaning,
consulting advice , problem solving, upgrading, repair and ultimate disposal.
1.Market synergy: The new product fit well with the existing image of the firm,
provided a superior advantage to competing products in terms of meeting
customers known needs, and received strong support during and after the launch
from the firm and its branches ;further the firm had a good understanding of its
customers purchase decision behavior.
They are:
FINDINGS
From the analysis I found that the hotel always uses social network sites
as strategy for business practices.
I found that Make my Trip and Goibibo are the online social network
sites are mostly preferred by the hotel.
From the analysis I found that the hotel is most preferring Zomato,
A to Z Kurnool, Swiggy are used by the hotel for food delivery services.
I found that the hotel provides discounts to the regular customers.
It is found that the value added services like surprise gifts are
implemented to attract to retain customer.
I found that the hotel is not providing any event organizing services to the
customers.
From the analysis I found that the hotel is providing catering services at
the of functions.
I found that the hotel is providing free Wi-Fi facility to the customers.
From the analysis I found that the hotel is providing additional package
services like MAP, APLAN which include meals to the customers.
LIMITATIONS
The survey is constrained to Kurnool
This project work is limited to the regular function of the company and
does not go deep into functions of department.
The study is restricted to the executive and staff of the hotel as the
information was gathered by the discussion with them.
The study is confined to Triguna Clarks Inn of branch at Kurnool.
Time factor is the main limitation of the study.
The method used in the project is survey method and results obtained
may not be fully accurate and believable.
The analysis is purely based on answers, information and reactions of
respondents, which may involve loss of actual information due to
deliberate manipulation of the reaction or even barriers of
communication.
RESEARCH METHODOLOGY
services”
METHODOLOGY ADOPTED:
Research methodology is a way to systematically solve the research problem.
Here we study the various steps generally adopted by the researcher in studying
In this research, both Primary and Secondary data taken into consideration. The
Primary data: - This is those, which are collected as fresh and for the first
Time, and thus happen to be original in character. There are many ways of data
etc.
Secondary data: - These are those data, which are not collected afresh and are
used earlier also and thus they cannot be considered as original in character.
There are many ways of data collection of secondary data like publications of
the state and central govt., website, journals, companies reports, reports
business, Industries, banks etc. For this project secondary data was taken from
RESEARCH DESIGN:
Ended)
DATA ANALYSIS
NUMBER OF
PARTICULARS PERCENTAGE
RESPONDENTS
Always 15 100%
Occasionally 0 0
Often 0 0
Rarely or seldom 0 0
TOTAL 15 100%
1. How does your hotel use social network sites as strategy for business
practices?
16
14
12
10
8
6 NUMBER OF RESPONDENTS
4 PERCENTAGE
2
0
INTERPRETATION:
From the above graph, it is analysed that always the hotel uses social
network sites as strategy for business practices.
2. Which of the online social network sites is mostly preferred by your Hotel?
NUMBER OF
PARTICULARS PERCENTAGE
RESPONDENTS
Make My Trip.com 08 53%
Tivago.com 0 0
Booking.com 0 0
Goibibo.com 07 47%
TOTAL 15 100%
18
16
14
12
10
8
6 PERCENTAGE
4 NUMBER OF RESPONDENTS
2
0
INTERPRETATION:
From the above graph, it is analyzed that the online social network sites is
mostly preferred by hotel are Make My Trip & Goibibo.com i.e., 53%
and 46% respectively.
3. What is the most preferred app used by your hotel for food delivery service?
NUMBER OF
PARTICULARS PERCENTAGE
RESPONDENTS
Zomato 3 20%
A to Z Kurnool 3 20%
Swiggy 9 60%
Any other 0 0
TOTAL 15 100%
16
14
12
10 PERCENTAGE
8
6 NUMBER OF
RESPONDENTS
4
2
0
Zomato A to Z Swiggy Any TOTAL
Kurnool other
100%
90%
80%
70%
60%
50% PERCENTAGE
30%
20%
10%
0%
YES NO TOTAL
16
14
12
10
8
6
NUMBER OF
4
RESPONDENTS
2
0 PERCENTAGE
100%
90%
80%
70%
60% PERCENTAGE
50%
40% NUMBER OF
RESPONDENTS
30%
20%
10%
0%
YES NO TOTAL
100%
90%
80%
70%
60% PERCENTAGE
50%
40% NUMBER OF
RESPONDENTS
30%
20%
10%
0%
YES NO TOTAL
100%
90%
80%
70%
60% PERCENTAGE
50%
40% NUMBER OF
RESPONDENTS
30%
20%
10%
0%
YES NO TOTAL
9. Are the any leisure to amenities service are available in your Hotel?
100%
90%
80%
70%
60% PERCENTAGE
50%
40% NUMBER OF
30% RESPONDENTS
20%
10%
0%
Play Gym Spa Others TOTAL
Zone
10. What are the additional package services your hotel is offering to
customers?
NUMBER OF
PARTICULARS PERCENTAGE
RESPONDENTS
MAP 6 40%
APLAN 9 60%
Others 0 0
TOTAL 15 100%