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Study of Different Processes of Operations In

Hotel Industry

SUBMITTED BY: GROUP 9

JYOTI JANGID
KARUNESH
NANDINI KUMARI
TOSHIK SHRIMALI
SHREEYA VERMA
Ginger Hotels
Ginger hotels is the largest chain of branded hotels in India and are operated
under the company name Roots Corporation Limited founded in 2004. Ginger
hotels has a total of 49 properties panned across 34 locations in India. It is
considered as pioneer of budget hotel space in India. Tata Capital and Indian
Hotel Company Ltd are the key investors in Ginger Hotels. They offer comfort
and amenities such as AC, WiFi, TV, in room dining and many more at very
affordable prices.
According to Tourism Council India it is the fastest growing company with the
growth rate of approximately 10% per annum. Ginger Hotels are known as
Nextgen hotels in India and abroad.

How bookings are done?

We visited Ginger Hotel, Noida where we asked them this question. So,
basically there are four way through which a booking can be made. Since,
Ginger is award winning hotel chain they offer the luxury to their customer to
book a hotel from the methods explained as follow:
Ginger Central Reservation: It is the core working system of the hotel. All 49
properties get business through this centralised system known as Ginger
Central Reservation system.
Direct walk-ins: It is the simplest way through which a customer can book a
hotel. They can directly walk into the hotel and book their slot according to
their requirements.
Ginger official website: The website layout is very neat. Customers can directly
go to their website and book a room for them by paying online as well as
offline through various mode of payment. They provide their customer a very
soothing experience by providing filtration and hassle-free payments.
Third party applications: Customers can also visit various applications such as
trivago, make my trip, goibibo etc. to book hotel without any hustle. Customer
can compare the prices among various applications and book which suits their
pocket the best.
Factors affecting supply chain management in Hotel Industry

It is essential to understand that the premise under which the hospitality

industry operates is much different from other industries. The industries
capital costs are high, operating costs being comparatively lower. The hotel
industry has its unique characteristics, like customer centricity, different types
of management etc.

 Guest or Customers are the utmost important for the hotel industry;
customer satisfaction is of paramount importance to the hotel industry.
In the hospitality industry the customer related activities such as food
and beverage production and service, housekeeping, Front office
management are given utmost importance. The back-office operations
such as the accounts, purchases, supplies chain management, revenue
recording etc. take a back seat.

 Different types of management systems, such as the ownership hotels,

franchisees, hotels which are run on operating contracts by chains etc.
The different managements systems have different implications on the
supply chain management

 In the hotel industry all the efforts are customer oriented as a result lot
of cost reduction which can be attained through improved upstream
functions of supply chain management is lost. Current trends in the
industry show that computerized property management systems are
used but mainly for front office management and reserv
All business processes in a hotel can be divided into three types:
a. Operating processes - processes that create, produce and deliver
products and services that hotel guests want
b. Supporting processes- processes that do not produce output for hotel
guests, but which are necessary to start up a business
c. Managerial process

Operating process
Process of Process of Process of
Process of producing
supplying guest
hotel necessary arrivals and
and serving
housekeeping food and
inputs departures beverages

Supporting process

Understand market and services

Develop vision and strategy

Design hotel products and services

Market and sell

Managerial process

Develop & Manage Manage

manage financial and reputation,
Manage IT
human physical quality and
resource resources change
Four key operating processes in the hotel are:
1) The process of hotel housekeeping
Hygiene
Hygiene Laundry &
Bed making hotel pubilc
hotel rooms Dry cleaning
areas

Decorating
Technical Safety &
interior of
mintenance security
hotel

2) The process of supplying necessary inputs

Select & certify Purchase food & Food & beverage

suppliers beverage receipt

Inventory of store Food & beverage

food & beverage issue

3) The process of guest’s arrivals and departures-

The guest chooses a hotel during the pre-arrival activity. Choice of the guest
can be affected by many factors, including previous experiences with the
hotel, advertisement, word of mouth referral by friends and colleagues,
location, corporate, travel agent booking, hotel name, hotel loyalty
program member etc.

Pre arrival Arrival Occupancy Departure Post arrival

4) The process of producing and serving food and beverage

 Preperation of
Preperation and Finishing
cold appetizers,
pretreatment of preeration of
cold dishes and
food food stuffs
salads

Preperation of
Serving food
sweet dishes
and beverages
and desserts

Type of Inventory technique

Inventory Management:
Inventory management is the act of keeping track of a company’s stocked
goods and monitoring their weight, dimensions, amounts, and location. The
goal of inventory management is to minimize the cost of holding inventory by
helping business owners know when it’s time to replenish products, or buy
more materials to manufacture them.
There are many types of inventory technique used in different organization as
mentions below:
1. ABC Analysis: It is a method of analysis that divides the subject up into
three categories: A, B and C. Wherein A is Business Critical; B is Middling
Importance; C is Relatively unimportant.
2. MRP technique: It is a system for calculating the materials and
components needed to manufacture a product.
3. JIT method: Just-in-time (JIT) inventory system is a management
strategy that aligns raw-material orders from suppliers directly with
production schedules.
4. Set par levels: Make inventory management easier by setting “par
levels” for each of your products. Par levels are the minimum amount of
product that must be on hand at all times. When your inventory stock
dips below the predetermined levels, you know it’s time to order more.
 5. First-In First-Out (FIFO): “First-in, first-out” is an important principle of
inventory management. It means your oldest stock (first-in) gets sold
first (first-out), not your newest stock.
6. Accurate forecasting: A huge part of good inventory management
comes down to accurately predicting demand, but the actual demand is
hard to measure.
7. EOQ model: This model is used in inventory management by calculating
the number of units a company should add to its inventory with each
batch order to reduce the total costs of its inventory.

PAR Level System Followed At GINGER

After visiting Ginger hotel, we came to know that they follow PAR Level
technique which is named as the 3 PAR system.
3PAR system: it is a system in which the hotel keeps the stock three (3) times
of the original stock.
From our visit, we got to know how they keep their inventory for the future
and present use.
1. The manager told us that there are 90 rooms in the hotel and each room
contains one bed sheet and in the spare 2 more bed sheet are available,
which implies (90*3=270) total 270 bed sheet for 90 rooms.
2. Also, we got to know about the restaurant and the assets which are
been used in there they follow the same 3PAR system.

Procurement of Materials

At Ginger inventory procurement is done through third party vendors which

are:

1. OCS
OCS is a joint venture with the world's second largest FPSO operator BW
Offshore and Planet Energy. They are an international supplier of essential
services to provide facilities and premises to their clients, with significant
operations across the UK, Ireland, Middle East, Asia and Australasia. They
ensure that they maintain the highest professional standards.
OCS works at the heart of their clients' businesses, and their sector expertise
means that they can design sustainable service solutions that align with their
business strategies. It is a responsible business. As they believe that the work,
they do should be sustainable not just in financial terms but also in the way
they impact upon people, communities and the environment.
They deliver a comprehensive range of facilities management services around
the world. They provide services like
 Security
 Cleaning
 Catering
 Mechanical
 electrical

2. ISS
The ISS group was founded in Copenhagen in 1901 and has grown to become
one of the world’s leading Facility Services companies. Since 2005, ISS is
present in India and have over 57000 employees who are dedicated to
delivering high quality support services.
They are actively involved in corporate responsibility and sustainability
initiatives. The ISS India workforce is committed to understanding the needs of
every organization that they serve. Their services are always line with the
global standards. They provide efficient and customer friendly services.
Also, they deliver a wide range of self-performed services that can be
combined in numerous ways depending on the customer’s requirements. They
have adopted a consistent approach throughout their business and across
countries, not only in-service delivery but also in the support system. This has
now been adopted as a group wide standard. The ISS Facility Management
System supports our operations and is essential in ensuring consistency and
quality in service delivery.
They provide many other services like
 Facility management
 Cleaning services
 Security services
 Property services
 Catering services
  Support services
This Helps in optimum utilization of resources, saves time, and money.
Good Practices followed at Ginger
 Sewage Treatment Plant: They have installed Sewage treatment plant
for the hotel, wherein the waste water is treated and then utilised for
watering trees and plant around the facility.
 Half Water Challenge: At Ginger, the waiters are trained to fill a glass of
water to its 50% capacity only. This is done to ensure water is not
wasted.
 Use of Soap Dispensers: Other hotels provide toiletries in bottles and
sachets; this increases the cost for the hotel as many are thrown away
unused and some are taken by the guests. Also, this adds to
procurement and inventory cost. At Ginger, Soaps and other toiletries
are provided through Fixed Dispensers in the bathroom. This saves the
cost and also helps in waste management.
 Refiling Water: When a new booking is done, the guests are provided
with 2 Bisleri Bottles. On each floor, ginger have 2 refiling points wherein
guests can refill water. The waiters are asked to inform the guests about
the refiling stations, again to reduce the use of plastic bottles. It is on the
part of the customer, whether he want to refill or buy a new one.
Waste Elimination at Ginger
MUDA – It includes all the Activities or Processes which does not add value,
and results in wastage of resources and time. There are 7 categories of
wastage. These are: Defects, Overproduction, Waiting, Non-used Talent,
Transport, Inventories, Motion and Excess processing. The most common tool
that helps to improve productivity by removing all 7 wastes, or by reducing the
resources used in these processes.
MURA-Mura means unevenness, non-uniformity, and irregularity. Mura is the
reason for the existence of any of the seven wastes. Mura can be avoided
through the Just-In-Time ‘Kanban’ systems and other pull-based strategies that
limits overproduction and excess inventory. To prevent overworked
employees, safety should be the focus of all process designs and all standard
work initiatives.
MURI- Muri means overburden, beyond one’s power, excessiveness,
impossible or unreasonableness. Muri can result from Mura and in some cases
be caused by excessive removal of Muda (waste) from the process. Muri also
exists when machines or operators are utilized for more than 100% capability
to complete a task or in an unsustainable way. Muri over a period of time can
result in employee absenteeism, illness, and breakdowns of machines.
Standardize work can help avoid Muri by designing the work processes to
evenly distribute the workload and not overburden any particular employee or
equipment.

MUDA MURA MURI

The waiting time at the In holiday seasons, In holiday seasons,
Reception at the time of there is high demand there is high demand
registration can be for rooms at the hotel for rooms at the hotel
decreased. As Identity and that creates an and employee are
Proof can be uploaded unevenness in the needed to extend their
at the time online performance of the work hours leading to
booking. employees. Employee dissatisfaction and
efficiency reduces in absenteeism.
idle days and increases
in holiday seasons.