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Internship Project Report ITC HOTEL Done by RAVI KUMAR HS MBA PDF
Internship Project Report ITC HOTEL Done by RAVI KUMAR HS MBA PDF
INTRODUCTION
Organization study is a part of MBA program which a student has to undergo training during
their course of study. It narrows the gap between theoretical knowledge and practical situations.
The intention of organization study is to have an exposure of real organization function and to
strengthen the theoretical knowledge. I did my training program at FORTUNE SELECT
TRINITY, ITC GROUP HOTEL. During the period of one month I was able to experience the
various function of different departments in the organization.
Scope of study
Observing the working of various departments like finance, human resource production
etc..
Discussion with the company executives and employees, managers and employees.
Visiting and surfing websites of the company.
INDUSTRY PROFILE
The Indian hospitality industry has emerged as one of the key industries driving growth of the
services sector in India. It has evolved into an industry that is sensitive to the needs and desires
of people. The fortunes of the hospitality industry have always been linked to the prospects of
the tourism industry and tourism is the foremost demand driver of the industry. The Indian
hospitality industry has recorded healthy growth fuelled by robust inflow of foreign tourists as
well as increased tourist movement within the country and it has become one of the leading
players in the global industry. Foreign tourist arrivals (FTAs) into the country increased steadily
from 2002 to 2008. FTAs dipped in 2009, due to the global economic slowdown; however, the
impact on the Indian industry was much lower than that on the global counterparts. FTAs are
expected to increase in 2010. On the other hand, domestic tourist movement within the country
was the highest in 2009.
Industry characteristics
High seasonality
The Indian hotel industry normally experiences high demand during October–April,
followed which the monsoon months entail low demand. Usually the December and
March quarters bring in 60% of the year’s turnover for India’s hoteliers. However, this
trend is seeing a change over the recent few years. Hotels have introduced various
offerings to improve performance (occupancy) during the lean months. These include
targeting the conferencing segment and offering lucrative packages during the lean
period.
Labour intensive
Quality of manpower is important in the hospitality industry. The industry provides
employment to skilled, semi-skilled, and unskilled labour directly and indirectly. In
India, the average employee-to-room ratio at 1.6 (2008-09), is much higher than that for
hotels across the world. The ratio stands at 1.7 for five-star hotels and at 1.9 and 1.6 for
the four-star and three-star categories respectively. Hotel owners in India tend to “over-
spec” their hotels, leading to higher manpower requirement. With the entry of branded
international hotels in the Indian industry across different categories, Indian hotel
companies need to become more manpower efficient and reconsider their staffing
requirements.
Classification of hotels
The Ministry of Tourism has formulated a voluntary scheme for classification of
operational hotels into different categories, to provide contemporary standards of
facilities and services at hotels. Based on the approval from the Ministry of Tourism,
hotels in India can divided into two categories:
o DoT (Department of Tourism) classified hotels 2) DoT (Department of Tourism)
unclassified hotels
Classified hotels
Hotels are classified based on the number of facilities and services provided by them.
Hotels classified under the Ministry of Tourism enjoy different kinds of benefits such as
tax incentives, interest subsidies, and import benefits. Due to lengthy and complex
processes for such classification, a significant portion of the hotels in India still remain
unclassified. The Ministry of Tourism classifies hotels as follows:
Star category hotels
Heritage hotels
Licensed units
Star category hotels
Within this category, hotels are classified as five-star deluxe, five-star, four-star, three-
star, two-star and one-star.
Heritage hotels
These hotels operate from forts, palaces, castles, jungles, river lodges and heritage
buildings. The categories within heritage classification include heritage grand, heritage
classic and heritage basic.
Licensed units
Hotels/establishments, which have acquired approval/license from the Ministry of
Tourism to provide boarding and lodging facilities and are not classified as heritage or
star hotels, fall in this category. These include government-approved service apartments,
timesharing resorts, and bed and breakfast establishments.
Branded players
This segment mainly represents the branded budget hotels in the country, which bridge
the gap between expensive luxury hotels and inexpensive lodges across the country.
Budget hotels are reasonably priced and offer limited luxury and decent services.
Increased demand and healthy occupancy have fuelled growth of budget hotels. These
hotels use various cost control measures to maintain lower average room rates without
compromising on service quality. Ginger Hotels, ITC Fortune, Hometel, and Ibis are
some of the popular budget hotels.
Other smaller players
These are small hotels, motels and lodges that are spread across the country. This
segment is highly unorganized and low prices are their unique selling
Growth drivers
The fortunes of the hospitality industry are closely linked to the tourism industry and hence
tourism is one of the most important growth drivers. In addition, all factors that aid growth in
the tourism industry also apply to the hospitality industry. The Indian hospitality industry has
recorded healthy growth in recent years owing to a number of factors:
Increased FTAs and tourist movement within the country has aided growth in the hospitality
industry. Healthy corporate profits and higher disposable incomes with easier access to finance
have driven the rise in leisure and business tourism, thus having a positive impact on the
hospitality industry.
Economic growth
India is one of the fastest growing economies in the world. It recorded healthy growth in the
past few years, at more than 9% each during FY06-FY08. Despite the global economic
slowdown, the Indian economy clocked growth of 6.7% and 7.4% in FY09 and FY10
respectively. Attractiveness of India has encouraged foreign players to set up their operational
facilities in the country. Domestic industries have also made heavy investments to expand their
facilities through Greenfield and Brownfield projects.
The country has experienced a change in consumption patterns. The middle class population
with higher disposable incomes has caused the shift in spending pattern, with discretionary
purchases forming a substantial part of total consumer spending. Increased affordability and
affinity for leisure travel are driving tourism in India and in turn aiding growth of the hospitality
industry. Emergence of credit culture and easier availability of personal loans have also driven
growth in the travel and tourism and hospitality industries in the country.
Various policy measures undertaken by the Ministry of Tourism and tax incentives have also
aided growth of the hospitality industry; some of them include:
Allowance of 100% FDI in the hotel industry (including construction of hotels, resorts,
and recreational facilities) through the automatic route
Introduction of ‘Medical Visa’ for tourists coming into the country for medical treatment
Issuance of visa-on-arrival for tourists from select countries, which include Japan, New
Zealand, and Finland
Promotion of rural tourism by the Ministry of Tourism in collaboration with the United
Nations Development Programme
Elimination of customs duty for import of raw materials, equipment, liquor etc
Capital subsidy programme for budget hotels
Exemption of Fringe Benefit Tax on crèches, employee sports, and guest house facilities
Five-year income tax holidays for 2-4 star hotels established in specified districts having
UNESCO-declared 'World Heritage Sites'.
The hospitality industry recorded healthy growth in early-2000, leading to a rise in occupancy
rate during 2005/06 and 2006/07. Consequently, average rates for hotel rooms also increased in
2006/07. The rise in average rates was also a result of the demand-supply gap for hotel rooms,
especially in major metros. Hotels were charging higher rates, at times much higher than that
those charged by their counterparts in other parts of the world.
Lured by higher returns experienced by the hotel industry, a number of players, domestic as
well as international, entered the space. India became one of the most attractive destinations for
such investments.
While on the one hand, investments continued to flow into the hotel industry, hit by sharp rise
in rates, corporate started looking for alternate cost-effective lodging options. This led to
emergence of corporate guest houses, especially in major metros, and leased apartments as
replacements for hotels. While average room rates rose in 2007/08, occupancy rates dropped.
Occupancy rates plunged sharply next year, as demand declined following the global economic
slowdown and the terror attacks in Mumbai. As a result, hotel rates declined during 2009-10.
The hospitality industry reported improvement in 2009-10, with domestic tourist movement in
the country being at a high. While average rates remained lower, occupancy rates rose,
supported by surge in domestic tourist movement. The industry is expected to report healthy
growth in 2010/11, with expected increase in domestic tourist movement and rise in
international tourist arrivals.
A major trend in recent times is the development of the hotel industry in cities other than major
metros. As real estate prices have been soaring, setting up and maintaining businesses and
hotels in major metros is becoming more expensive, leading to search for other cities entailing
lesser costs. Consequently, hotel markets have emerged in cities such as Hyderabad, Pune, and
Jaipur, Banglore. This has led to increase in hotel development activity and expansion of hotel
brands within the country.
The industry has also seen development of micro markets, especially in primary cities. As cities
grow larger and more office spaces come up across the city, travellers prefer to stay at hotels
closer to the place of work/visit to save on time. This has led to the same hotel company setting
up hotels across different location within a city.
Marketing strategies
Marketing strategies in the hospitality industry have changed drastically over the past decade. A
decade back, the brand name of the hotel was a major driver. However, with the arrival of well
educated and experienced travellers, hotel companies have had to change/realign their
marketing strategies. Today, hotel companies marketing strategies are differentiation,
consistency, customer satisfaction, delivery of brand promises, and customer retention.
Development and use of technology have also changed the way hotel companies operate,
creating the need for online marketing. Travellers increasingly conduct basic research on the
Internet. Blogs, networking sites, and travel sites are therefore being used for making choices
and the information provided tends to influence opinions and choices. Several travel portals
have emerged in recent times and travellers are increasingly using these portals to make hotel
reservations.
Opportunities
The prospects for the hotel industry in India are bright. With revival in the global economy,
international tourist inflow into the country is expected to rise. Additionally, hosting of
international sports events and trade fairs and exhibitions in the country are expected to aid both
inflow of international tourists and domestic tourist movement.
The upcoming industrial parks, manufacturing facilities and ports across the country provide a
good opportunity for budget and mid-market hotels. Although around 89,500 additional rooms
are expected to come up in India in the next five years, the supply of branded/quality rooms in
India is much lower compared to other countries across the globe. Hence, there exists huge
potential for investors and operators across all the segments of hotel industry in India. The
increase in room inventories is expected to make the hotel industry more competitive and hotels
would be under pressure to maintain quality and service levels at competitive prices.
Competitive pricing amongst the branded hotels along with the addition of more budget and
mid-market hotels would make the hotel industry cost competitive with other destinations. This
would aid the growth of segments such as MICE, amongst others.
While there is immense potential, concerns for growth of the industry remain. These include
high real estate prices in the country, security threats, shortage of manpower, high tax structure,
and non-uniformity in taxes.
Hotel industry statistics are used as the basis of the monthly HIP index. It uses components such as
inflation adjusted lodging revenues, the number of employees and room occupancy rates to come up
with a number that reflects the health of the industry. The index has a starting point of 100. Anything
above 100 indicates growth and anything under 100 means contraction or a negative growth rate. At the
end of March, 2012 the HIP index stood at 104.6 indicating a lukewarm rate of growth.
Looking at specific markets can also indicate the health of the hotel industry. In the very important Las
Vegas, Nevada market, industry growth is slow, but steady. A recent report provided by the UNLV
Centre for Business & Economic Research (CBER) forecast an increase in visitor count to the city. They
expect with a fair degree of certainty that the city will set an all-time record for annual visitors of just
over 40 million people. The prediction of 40.1 million visitors in 2012 would surpass the 39.2 million
record set in 2007.
Texas is another state that attracts millions of travellers and tourists who support the hospitality
industry.
According to the Texas Workforce Commission & Real Estate Center at Texas A&M
University, the employment rate has been growing at a much faster rate than the national
employment rate. That is a strong indication that business will be picking up for the many
hotels, restaurants and tourist attractions in the state. The data shows that in April, 2012, the
Leisure and Hospitality industry employed 1,089,800 compared to 1,046,000 in April, 2011.
The year-to-year comparison shows that 43,800 more people have been employed and that the
figure translates into a 4.2% annual growth rate
COMPANY PROFILE
Fortune select trinity hotel Ltd. is a subsidiary of ITC Ltd. Set up in 1995 to cater to the mid-
priced market segment in business and leisure destinations; it is today a professional Hotel
Management company, with forty operating hotel and many more in various stages of
completion.
Fortune Hotels operate across a wide spectrum and offer various categories such as My Fortune,
Select. The Select, Park and Inn categories are business hotels in metros and non-metros. The
'My Fortune' brand, representing a 'stylish lifestyle with efficient personalized service', is the
latest addition to the bouquet of brands.
The Fortune chain has won a number of a awards which include - The Galileo Express Travel
and Tourism Award for the "Best First Class Hotel Chain in 2004", the Hospitality India Award
for the "Best Mid Market Hotel Chain of the year 2005" and the "Best First Class Hotel Chain
2011 and also in 2006, and Satte Award for 'Leading Mid-Market chain' 2012.
ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India
Limited. As the Company's ownership progressively Indianised, the name of the Company was
changed from Imperial Tobacco Company of India Limited to India Tobacco Company Limited
in 1970 and then to I.T.C. Limited in 1974. In recognition of the Company's multi-business
portfolio encompassing a wide range of businesses - Fast Moving Consumer Goods comprising
Foods, Personal Care, Cigarettes and Cigars, Branded Apparel, Education and Stationery
Products, Incense Sticks and Safety Matches, Hotels, Paperboards & Specialty Papers,
Packaging, Agri-Business and Information Technology - the full stops in the Company's name
were removed effective September 18, 2001. The Company now stands rechristened 'ITC
Limited'.
The Company's beginnings were humble. A leased office on Radha Bazar Lane, Kolkata, was the
centre of the Company's existence. The Company celebrated its 16th birthday on August 24,
1926, by purchasing the plot of land situated at 37, Chowringhee, (now renamed J.L. Nehru
Road) Kolkata, for the sum of Rs 310,000. This decision of the Company was historic in more
ways than one. It was to mark the beginning of a long and eventful journey into India's future.
The Company's headquarter building, 'Virginia House', which came up on that plot of land two
years later, would go on to become one of Kolkata's most venerated landmarks.
Though the first six decades of the Company's existence were primarily devoted to the growth
and consolidation of the Cigarettes and Leaf Tobacco businesses, the Seventies witnessed the
beginnings of a corporate transformation that would usher in momentous changes in the life of
the Company.
ITC's Packaging & Printing Business was set up in 1925 as a strategic backward integration for
ITC's Cigarettes business. It is today India's most sophisticated packaging house.
In 1975, the Company launched its Hotels business with the acquisition of a hotel in Chennai
which was rechristened 'ITC-Welcomgroup Hotel Chola' (now renamed My Fortune, Chennai).
The objective of ITC's entry into the hotels business was rooted in the concept of creating value
for the nation. ITC chose the Hotels business for its potential to earn high levels of foreign
exchange, create tourism infrastructure and generate large scale direct and indirect employment.
Since then ITC's Hotels business has grown to occupy a position of leadership, with over 100
owned and managed properties spread across India under four brands namely, ITC Hotels -
Luxury Collection, WelcomHotels, Fortune Hotels and WelcomHeritage.
In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards
Limited. Bhadrachalam Paperboards amalgamated with the Company effective March 13, 2002
and became a Division of the Company, Bhadrachalam Paperboards Division. In November
2002, this division merged with the Company's Tribeni Tissues Division to form the Paperboards
& Specialty Papers Division. ITC's paperboards' technology, productivity, quality and
manufacturing processes are comparable to the best in the world. It has also made an immense
Launched in 1975, ITC Hotels, India's premier chain of luxury hotels, has become synonymous
with Indian hospitality. ITC Hotels pioneered the concept of 'Responsible Luxury' in the
hospitality industry, drawing on the strengths of the ITC groups exemplary sustainability
practices. Responsible Luxury personifies an ethos that integrates world-class green practices
with contemporary design elements to deliver the best of luxury in the greenest possible manner.
Fortune Hotels are the brainchildren of ITC ltd which is a large commercial conglomerate.
Fortune Hotels have done a splendid job of establishing its brand as a premium hotel brand.
Their chain of 3-4 star hotels across 18 locations in India are mostly business hotels situated in
metropolitan areas.
Branded Accommodation
ITC Hotels has set standards for excellence in the hotel industry by pioneering the concept of
branded accommodation. The chain has developed three brands of accommodation ITC One',
'Towers' and the 'Executive Club' to differentiate between the needs of various travellers and
provide the highest levels of service.
Branded Cuisine
ITC Hotels is one of the first to introduce branded cuisine WelcomCuisine - in India. The
Bukhara and Peshawri restaurants give epicures the rugged, outdoor cuisine of the Northwest
Frontier Province. Dakshin has brought together the highly evolved cuisines of the four southern
states- Andhra Pradesh, Karnataka, Tamil Nadu and Kerala. Dum Pukht is a unique restaurant
dedicated to a 200-year old culinary tradition of slow cooking food, in sealed deghs. The
fragrance of the meal becomes an invitation befitting royalty. Today the connoisseur can savour
these delicacies across the country. The sumptuous fare at Kebabs and Kurries comprises a
mouth-watering array of kebabs and a wide range of dishes from all over India. These dishes can
be categorized as Qualms, Qaliyas or Salans.
Rated high by food connoisseurs all over the world, ITC Hotels takes exceptional pride in
showcasing its internationally renowned cuisine. West View brings a careful selection of western
cuisine s from the remote France chateaux, grill houses on the East and West coasts of America,
rosy kitchens of English manors, leisurely Mediterranean villas and bustling German
marketplaces.
Create multiple drivers of growth by developing a portfolio of world class businesses that
best matches organizational capability with opportunities in domestic and export markets.
Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards &
Packaging, Agri Business and Information Technology.
Benchmark the health of each business comprehensively across the criteria of Market
Standing, Profitability and Internal Vitality.
Ensure that each of its businesses is world class and internationally competitive.
Enhance the competitive power of the portfolio through synergies derived by blending
the diverse skills and a capability residing in ITC’s various businesses.
Create distributed leadership within the organization by nurturing talented and focused
top management teams for each of the businesses.
Continuously strengthen and refine Corporate Governance processes and systems to
catalyze the entrepreneurial energies of management by striking the golden balance
between executive freedom and the need for effective control and accountability.
BOARD - STRUCTURE
Board of Directors »
Corporate Management
Committee »
Board of Directors
Chairman
Y C Deveshwar
Chairman :- Y. C. Deveshwar (65) joined ITC in 1968 and is an alumnus of the Indian
Institute of Technology, Delhi and Harvard Business School. He was appointed as a Director on
the Board of the Company in 1984 and became the Chief Executive and Chairman of the Board
on January 1, 1996. Between 1991 and 1994, he led Air India as Chairman and Managing
Director.
Executive Directors
B Vijayaraghavan
Hotels Division
B Hariharan Member
A Pathak Member
M Bhatnagar Member
S C Sekhar Member
A R Noronha Member
G Anand Invitee
A Sharma Invitee
ITC Hotels
Bukhara awarded with " Restaurant of the Year" at NDTV Lifestyle Awards, March 2013
Dum Pukht awarded with 'Best in Country' recognition at the S.Pellegrino Asia's 50 Best
Restaurants, Singapore, February 25, 2013
Bukhara recognised amongst S. Pellegrino Asia's 50 Best Restaurants at No. 26, from
close to 900 restaurants in Asia, February 25, 2013
ITC Grand Chola receives green rating for integrated habitat assessment by The Energy
Resource Institute (TERI), Ministry of New & Renewable Energy (MNRE), Government
Of India – February 2013
ITC Grand Central awarded with The Golden Peacock - Corporate Excellence
Recognition for national training by Institute of Directors – January 2013
ITC Grand Chola recognized by HIFI as development of the year in the luxury and
upscale category – January 2013
Kaya Kalp recognized as Best Hotel Spa by CondeNast Traveler, India – December 2012
Bukhara and Dakshin listed amongst Asia’s Top 20 Restaurants – Miele Guide Asia,
January 2013
ITC Grand Chola receives green rating for integrated habitat assessment by The Energy
Resource Institute (TERI), Ministry of New & Renewable Energy (MNRE), Government
Of India – February 2013
ITC Grand Central awarded with The Golden Peacock - Corporate Excellence
Recognition for national training by Institute of Directors – January 2013
ITC Grand Chola recognized by HIFI as development of the year in the luxury and
upscale category – January 2013
Bukhara and Dakshin listed amongst Asia’s Top 20 Restaurants – Miele Guide Asia,
January 2013
Kaya Kalp recognized as Best Hotel Spa by CondeNast Traveler, India – December 2012
ITC Hotels - The Standout Winner for Sustainability , Global Vision Awards -October
2012
COMPETITORS COMPARISON
Name Last Price Market Cap. Sales Net Profit Total Assets
(Rs. cr.) Turnover
ITC
India Tourism D Indian Hotels EIH Mahindra Holida
Hotels
Mar
Mar '12 Mar '12 Mar '13 Mar '13
'04
Sources Of Funds
Total Share Capital 30.21 85.77 75.95 114.31 83.88
Mar
Mar '12 Mar '12 Mar '13 Mar '13
'04
Application Of Funds
Gross Block 206.40 142.32 2,814.49 2,825.83 612.51
Less: Accum. Depreciation 71.17 80.93 971.56 709.15 139.14
Net Block 135.23 61.39 1,842.93 2,116.68 473.37
ORGANIZATIONAL STRUCTURE
ORGANIZATIONAL DESIGN
1. The framework of jobs and departments that make up any organization must be directed
toward achieving the organization’s objectives. In other words, the structure of a lodging
business must be consistent with its strategy.
2. Managers give structure to a hotel and lodging through job specialization, organization, and
establishment of patterns of authority and span of control.
General Manager
Executive assistant
manager
FUNCTIONAL DEPARTMENTS
There are more than 10 different departments are functioning in the traditional and executive
levels at the management of the hotel. These departments have diverse portfolios and
responsibilities headed by a person in charge of the entire operations undertaken within the
department. He may be a manger/supervisor of the respective department. The reason why hotels
are usually organized into functional blocks, with departments grouped according to the
particular work/activity that particular
Department is actively engrossed. In most scenarios a hotel industry is divided up into 5 different
departments such as rooms, Food and Beverages (usually this department is called as by its short
form as F&B), accounting, sales and Human Resource/HR. Each of these departments has their
own heads of the operations and they should have to report directly to the General Manager of
the hotel regarding the performance of their respective departments. These departments are sub-
divided into various other smaller organizational units. These sub-divisions represent refinement
of the work performed and the knowledge and the skills of the people in each subunit. As
organizations grow large in respect of its size and operations it carries out most hotels tend to
segment its operations to various departments with food preparation and food servicing as
separate entities. Since preparing food and serving it to the guest are usually of two different arts;
both the processes are done through different and separate works. Thus forming departments
along functional line is the most common method in a hotel organization. The department
engaged in the preparation of food is called as Production Department while the division
involved in the art of serving the prepared food to the guests in an eye-catchy and sumptuous
manner is known as the Servicing 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. 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.
Sell guestrooms; register guests and design guestrooms
Provide information
NIGHT AUDITORS
RESERVATIONS ASSISTANTS
TELEPHONE SUPERVISORS
The Front Office may be regarded as the show window of the hotel and hence must be well
designed in the first place and maintained in a well organized and orderly manner. Regardless of
how a hotel is organized into, the front office is always an essential focal point. Front Office is
the name given to all the functional units of a hotel which are situated in the front portion of the
hotel, that is, the lobby – is the place where the guests are received, provided information on the
products and services offered in the hotel, the luggage of the guests are handled, the accounts of
the guest are settled at their departure, and the guest’s problems, complaints and suggestions are
looked after. The front desk is the link between the guest and the hotel and represents the hotel to
the guest. And is a liaison between the hotel management and the coordination of all the guest
services. It serves as a main channel of both way communications i.e. from hotel to the guest and
guest to the hotel. Hotel terminology includes terms such as front-of the-house and back-of-the-
house. This front-of-the house term includes those portions of the hotel with which the guests
come in direct contact with during the period of their stay in the hotel, such as building exterior,
lobby, front desk, guest rooms, function rooms etc. The person who is regarded as the head of
the operation of the front-office desk is the Front-Office Manger. The nature of the front office
job is such that he is almost always crowded with various jobs. He should be able to match job
needs to time available for effective and efficient performance. Another responsibility of the
Front office manager is making daily plan of action by outlining work for the next day at the end
of each day. It includes listing all activities for the next day under ABC category as per the
urgency and importance of the job. It is also important to make flexible plans to fit
in emergencies. The assistant front-office manager’s main duty is aiding the front office manager
in supervising and coordinating the day-to-day operations of the front-office staff and resolves
internal problems. She/he co-ordinates staffing of mail and information and reservation clerks
with their supervisors.
The AM-front office should also be adept in dealing with problems arising from guest’s
complaints and reservation and room assignment activities. He should also be responsible for
any miscellaneous duties assigned by the front office manager. Another important position at the
front desk of the hotel is done by the reception assistant. The friendly welcome given by the
receptionist to a guest changes an impersonal hotel building in to a friendly and homely place
and his unfriendly, hostile and indifferent attitude may convert the guests experience in to an
unpleasant and uncomfortable stay. If the front office is the hub of the hotel then the receptionist
can be aptly called as the person ‘who keeps the hotel world moving’. The reception assistant
should be well informed of daily room availability status, and also he should have detailed
information regarding arrivals, their room requirements and expected departures of the
guests. The position of the reservation assistant is also important at the front-office department of
the hotel since the hotel’s good image can be maintained among the
Guests only if all the needs of the guests are taken care of, especially the guest’s requirements in
terms of his lodging. He should make proper updating in the reservation register and records in
order to have updated inventory of room availability. The reservation assistant may also carry
out amendments and cancellations intelligently and accurately. To keep the availability status
chart updated. Checkout reservation stationary and keep a satisfactory par stock of the same.
Type out advance reservation slips and maintains reservation racks and correspondence files and
in case of computers updates information in computers.
The food and beverage service department is an integral place in any hotel which is responsible
for the systematic and the actual service of food and beverage to the general public or customers
as per the order in any F &B outlets. This department plays a vital role on the delivering the
accurate service of food and beverage by placing the orders from the hot or cold plates of kitchen
to the customers table in the proper and the hospitality manner.
This department in any hotel plays a vital role in the profitable process of the hotel business.
Among the total revenue collected in the hotel, about 40% contribution is directly accredited to F
& B Service department. This department is specialized by its output of the products that
satisfies customers demand for food and beverage. For the proper control and the effective
management of the total staffs and their duties, this department is divided into different units or
sections which are also called as an outlet. Each outlet is specialized for the special functions.
For the systematic and a good service process of any F & B outlet, presentation, time keeping,
order taking and the suggestive selling are the key element of a service to be maintained by
service staffs.
The staffing pattern of F & B department is basically divided into two parts. They involve the
service staffs and the kitchen staffs. In the modern concept of catering, this department generally
focuses on the product knowledge, salesmanship, customer’s relation and expectation rather than
the traditional style of service. The guest satisfaction is only ensured when the service.
F & B deals mainly with food and beverage service allied activities. Different divisions are there
in F & B like Restaurants, Specialty Restaurants, Coffee Shop (24 hrs.), Bar, Banquets, Room
service etc. Apart from that they have Utility services (Cleaning). A food and beverage
department in a hotel is usually guided by an F&B Director followed by an F& B manager. A
Food and Beverage Manager in a hotel should always be ready to undertake a variety tasks each
and every day. Some of the main important functions endowed on this specific department in a
hotel include,
Provide the highest quality in food, beverage and service in all the food and beverage outlets
inside the hotels
Provide all guests with the highest quality of food and beverage experience by working as a team
with all the food and beverage outlets ensuring prompt,
Courteous and professional services resulting in increasing employee morale and decreasing
employee turnover rates.
Food and beverage servers’ duties vary considerably from one type of establishment to another.
In fast food outlets, they often work behind counters and use computerized systems to take
orders and tabulate bills. In coffee shops and cocktail lounges, they provide quick and efficient
service for customers seated at tables. In formal dining establishments, they carefully observe
established rules of service and etiquette, and pace the meal according to customer preference.
Human resources is exactly meant as ‘resources for human – within the workplace’. Its main
objective is to meet the organizational needs of the company it represents and the needs of the
people hired by that company for running its operations. Every organization needs its stack of
manpower to carry out its day-to-day operations. No establishment cannot operate without being
involved in some kind of transactions with the people in general. Hence HR department is drawn
with special emphasis as this department is responsible for all activities concerning to the
employees of an organization. In short HR department is the hub of the organization serving as
liaison between the organization and its employees. On the basis of the size of the company their
department is usually called as the Personnel department in medium–sized establishments, with a
limited number of managerial staff and is guided by a Personnel Manager. For larger and more
complex organizations with hundreds of departments and divisions, the task of managing the
workforce as a whole is much more demanding and intricate. Some of the most important
responsibilities to be carried out by the HR department include.
Employee recruitment & Selection
Employee relations
Policy formulation
As accompany and the requirements of a position evolve, a company needs to take certain
measures to ensure that the highly skilled workforce is in place. It is actually the responsibility of
the HR department to oversee the skills development of the company’s workforce. After
formulating the requirements criteria to fill up a vacant post in the organization, the HR
department of the company will call for application for the specific post from the eligible
candidates by way of advertising on news papers, televisions, mobile phones etc. Employee
compensation packages also come under the prerogative of the HR department. This covers
salaries, bonuses, vacation pay, sick leave pay, Workers' Compensation, and insurance policies
such as medical, dental, life.
FINANCE DEPARTMENT
A hotel’s accounting department is keeping track of the many business transactions that occur in
the hotel. 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 concerned with cost control guidelines by way of reducing in
investment, reduction in operating cost, control of food service cost, control of beverage cost,
labor cost control etc. In most hotels the person in charge of the finance department of the hotel
is called the Chief Financial Officer. Usually he is addresses by the short-form of his designation
as CFO. In most major hotels, the CFO or Finance Controller/Manager ranks among the top two
or three decision makers in the hotel hierarchy. No organization can survive without a very
strong financial vigor. The finance controller is responsible for presenting a Financial and
budgetary programs which can strengthen management’s control of hotel’s operating expenses
and help determine the profitability of the property. Specifically forecasting gives owners a
projected level of sales, while budget alert owners and operators alike to significant expenditures
that are on the horizon or predictable shortfalls in revenues. Used together, forecast and budgets
can provide a bench-Mark for sales intensive programs, executive-compensation bonuses,
incentive based management fees and capital expenditure. The administration and department of
accounting and finance coordinate management and staff functions. This includes extensive
contact with our shareholders, other partners. The department of accounting and finance is
responsible for accounting, payroll, budgets and cash flow management. The department of
Information Technology (IT) is also managed by the Finance department in most hotels.
The following shown chart is the common hierarchy of the positions in the Finance Department
in 5 star hotels. But it cannot be guaranteed that the same structure is followed by all the 5 star
hotels. It may depend upon the size and the scale of operations of the respective hotels.
Accounts Payable
A key area in accounting, accounts payable ensures that all bills are paid on time
and all discounts are taken minimizing the costs of the hotel. Accounts payable
clerks work closely with the purchasing department to verify that all invoices to
be paid are indeed invoices of the hotel.
Assistant Controller
In a big hotel, you may see one, or a few, assistant controllers. In smaller hotels,
there may not be any. The controller divides the various functions to be performed
so that the workload will be even. For example, one assistant might be responsible
for daily transactions while another works on special projects, budgets, analyses,
and the like.
Night Audit
Night auditors get their name because of the hours they work. At the end of the
day after most hotel guests have retired, these auditors begin recording charges to
guests’ accounts and verifying the revenue for the hotel. However, with computers
and various technologies, the hotel industry can post charges instantaneously. Some
hotels have actually changed the night auditors to become day auditors.
Banquet Auditor
Besides revenues charged to guest rooms, a large hotel earns the bulk of its food
and beverage revenues through banquets. The banquet auditor’s function is to verify
the correct revenue for billing. This individual works closely with the banquet
staff, the sales office staff, and the accounts receivable clerks.
Credit
A big hotel may have its own credit manager whose function is to check and grant
credit. In today’s business world, many transactions are done on credit rather than
cash or cashier checks. It is, therefore, the credit manager’s responsibility to conduct
such investigations to be sure that a person or company is creditworthy.
Front-Office Cashiers
The duties of a front-office cashier are often incorporated with the front-office
personnel. When guests check out, it is the duty of these cashiers to charge the
guests the correct amount and secure a form of payment.
General Cashier
Pause for a minute and think how many cash banks there are in a large hotel: a
few at the front office, at least one in the restaurant, at least one in the gift shop,
and so on. The general cashier is the person who is in charge of all the cash banks
in the hotel. He or she also makes all deposits of checks and credit card receipts.
Operations Analyst
this is a nice position to have in a hotel. An operation analyst performs analyses
to help managers operate the hotel more effectively. From guests’ statistics to revenue
trends, the operations analyst does it all. However, not all hotels are able to
afford an analyst on the payroll. If this is the case, an assistant controller often
performs these duties. For smaller hotels where there is not an accounting office
on the property, this function is done at the regional level.
Payroll
Payroll employees calculate the pay rate with the hours worked to do the payroll
so pay checks are released on time. Payroll functions also include filing all payroll
taxes and tip credits for tipped employees, as well as keeping track of vacation,
sick pay, and other payroll-related deductions.
Systems Manager
A systems manager is not depicted in Illustration above. Since the various accounting
functions cover the entire hotel operation, the systems manager or systems analyst,
whose job is to take care of all technology issues, is normally founded within
the accounting department. In a smaller hotel, the controller or an assistant controller
may take on this responsibility. Normally, this position is found at a regional
or corporate level and systems analysts will be dispatched to assist the property
when needed.
Marketing is the study and management of the exchange process. It involves the things that the
property will do to select a target market and stimulate or alter that market demand for the
property services.
A marketing manager in the hotel industry is responsible for maximizing a hotel's revenues by
developing programs to increase occupancy and make profitable use of its accommodation,
meeting and leisure facilities. A hotel marketing manager must maintain awareness of the factors
that influence the hotel industry and gain a deep understanding of the needs and attitudes of a
hotel’s customers. A hotel marketing manager will be responsible for coordinating marketing
and promotional activities to meet customer needs, working closely with other hotel staff to
ensure customers are satisfied with the facilities and their time there.
A typical hotel should usually have Sales & Marketing division. However, if the staff size,
volume business, hotel size, expected group arrivals is low enough, the hotel might have
marketing staff placed under the reservation department (i.e. No need for a Sales & Marketing
Division).
a) Sales
b) Convention Services
c) Advertising
d) Public Relations
Marketing and sales division can be varied with the size, type, and budget of the hotel to hotel.
Small hotel only have one person who is handling all the sales activities related to the hotel
business. But large hotel have organized sales and marketing division with no of key personnel.
A sales department is particularly very essential in large hotels and those with convention and
banquet facilities. The General manger participates actively in this area for and basic reason.
First sales and their development is a long-range activity of the hotel and the second sales policy
of the hotel interwoven with the image of the hotel has in the eyes of public and GM wishes to
enhance that images. This department may have Sales. Manager who assists the GM on sales
calls. The GM and Sales Manager prepare a budget for the year sale of rooms and the conference
hall. They try and achieve the budget by the end of the year. This is done with a lot of planning
and research. This would be achieved by a contract with one or more travel agents in and outside
the town. And for selling the conference hall the sales team should contact various companies
and other business firms. The main function of this department is to increase the sales volumes
of the different services offered in the hotel, be in terms of rooms, food, beverages, clubs,
restaurants, spa etc. Usually the tools adopted by the department to make the guests accustomed
to different services and offerings in the hotels
The other core areas of its consideration are as follows
Conduct a market Audit.
Purchase Department
While operating a hotel is supposed to be a difficult task, managing the entire procurement
process (for such a unit) is even more so. The purchase department handles the task of
procurement yet all departments play a crucial role in it. That said technology ensures that inter-
departmental activities takes place flawlessly. Although purchase has now become dependent on
technology for managing inventories and order status, it was originally a manual job. From
selection of products to deciding on a vendor, this department rests on the human ability of In
most modern hotels, the installation and service of elevator systems is generally the province of
the elevator manufacturer, and hotels typically have extended maintenance agreements for the
elevators. Most engineering departments, however, closely monitor the operation of the elevator
systems. In modern high-rise hotels with high speed elevator service, the slightest problem with
that service should be quickly and easily identified and reported to the contractors. It is generally
the responsibility of the engineering department to monitor these services and their contracts
closely and carefully.
SECURITY DEPARTMENT
The security of guests, employees, personal property and the 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. 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. The
main position in the security department is of the Assistant Security Manager. The department
includes the fire and safety officer and the duty guards. The primary function of the security
department is to provide property surveillance and protection to the guest. The latter is more
important for the security department. In the hotel there are two variants of security staff working
round the clock indifferent shifts. First is the direct security staff of the hotel working in three
different shift of 8 hour duration? Considering flawless security to the guests, all the guest rooms
of the hotel are installed with spring glass and smoke detectors and automatic alarm
system. There is a central security office working inside the hotel with all the modern fire
Fighting equipments such as fire extinguishers, dry powder, and other fire dousing facilities. As
a part of the security provision both to the hotel’s property and the guests the entire geographical
area of the hotel is divided in to 3 portions such as Beach Viewpoint, Tide point and the Club –
these three points are all together known as the ‘assembly point’ . The most common methods
adopted by the fire and safety wing of the hotel (it came under the security department) are liquid
carbon dioxide, dry powder etc. The security control post of the hotel will be functioning on 24 x
7with office secretary, night and day supervisor, and security officer. The security setup at the
hotel is faultless since the hotel cannot compromise on the safety of its valuable guests. All the
activities of the security department is controlled and supervised by the main security officer. He
is also responsible for conducting training programmes on security and fire fighting to the
security staff of the hotel.
SECURITY SUPERVISOR
Reservation
There should be close relation-ships with Sales and Marketing Division concerning Large
Group Reservations
Uniformed Services
Bell Attendants: Ensure baggage service between the lobby area and guestrooms
Door Attendants: Ensure baggage service and traffic control at hotel entrance
Transportation Personnel: Ensure transportation services for guests from and to the hotel
Telephone Department
Answers and distributes calls to the appropriate extensions, whether guest, employee, or
management extensions
This very department maintains the property's structure and grounds as well as electrical and
mechanical equipment. Some hotels might have this very division under different names, such as
maintenance division, property operation and maintenance department…
HOUSE KEEPING
The good Housekeeper, because of the need taco-operate with many other department heads,
must possess a high degree of tactics well as good organizing ability. The Assistant Housekeeper
is the deputy to the Executive Housekeeper of a hotel. His/her manages the resources given by
the executive housekeeper to achieve the common objectives of cleanliness, maintenance and
attractiveness in a given period of time. Assistant Housekeeper’s accountability normally ends
with the completion of the shift. The position of a Housekeeping supervisor is normally occupied
by a competent, personable individual who knows his/her employees well, and is, above all, able
to meet the public. This requirement is so important as far as a hotel is concerned since the
supervisors are actually representatives of the Executive House keeper in the areas assigned to
them. Housekeeping draws special mention since a hotel survives on the sale of rooms, food and
beverage and other minor operating services such as laundry, spa, clubs etc. Of these, the sale of
rooms constitutes a minimum of 50 %. In other words the largest margin of profit comes from
room sales because rooms, once made, can be sold over and over again. A good hotel operation
ensures optimum room sales to being in maximum profit. The room sale is dependent on, apart
from several other things, the quality of the room décor, room facilities, and cleanliness of the
room and how safe it is.
Basically the main responsibility of the housekeeping department is to ensure that the guest
rooms and the entire public area within the hotel are neat and clean all the time. But the cleaning
duty of the kitchen area is done by Kitchen steward. Cleaning of the lawn area of the hotel is also
set apart from the housekeeping department while the same is carried out by the gardening
division of the hotel. The person who is made in charge of the entire operations being performed
in this specific department is Housekeeping Executive. The Executive Housekeeper is
responsible for the total cleanliness and the, maintenance and the aesthetic upkeep of the hotel.
This end is achieved with the resources made available to his/her of manpower, materials,
machines, money, space and time. The position of the Executive Housekeeper is considered to be
one of the most important positions in the hotels since it carries tremendous responsibility for the
proper cleanliness and the aesthetic fabric of facilities in order that they are sanitary, desirable
and in saleable condition.
Inspects rooms before they are available for sale
Cleans and presses the property’s linens, towels, and guest clothing (if equipped to do so, free
of charge or for a pre-determined fee)
SWOT ANALYSIS
SWOT ANALYSIS
STRENGTHS
ITC is a very strong and established brand name all over the world. It has a base of loyal
customers at local level as well as at international level. It has one of the biggest
international booking structures. Whatever the situation and scenario may be, corporate
and government agencies always prefer for their functions, seminars, and lodging their
guest and customers. ITC Guest Rewards program is the world’s largest and most
preferred frequent guest program and is strength for customer retention.
Natural and cultural diversity: India has a rich cultural heritage. The "unity in
diversity" tag attracts most tourists. The coastlines, sunny beaches, backwaters of
Kerala, snow-capped Himalayas and the quiescent lakes are incredible.
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 star hotels are
being established. Foreign hospitality players are heading towards Indian markets.
WEAKNESSES
Susceptible to political events: The internal security scenario and social unrest also
hamper the foreign tourist arrival rates. 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.
OPPORTUNITIES
ITC has the opportunity to retain its customers by providing good quality food, as food
quality is not up to mark.
In light of post 11 September, foreign delegations and missions are bound to come to the
federal capital, which opens an opportunity for ITC to attract new business.
Rising income: Owing to the rise in income levels, Indians have more spare money to
spend, which is expected to enhance leisure tourism.
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.
THREATS
Emergence of new competition in form of new hotels: Food Street poses a threat for
their restaurant business. Government policies and economic recession can adversely
affect their business.
Increasing competition: Several international majors like the Four Seasons, Shangri-La
and Aman Resorts are entering the Indian markets. Two other groups - the Carlson Group
and the Marriott chain - are also looking forward to join this race. This will increase the
competition for the existing Indian hotel majors.
FINDINGS
SUGGESTIONS
CONCLUSION
Tourism is a phenomenon, which has now become a powerful in its own right. It has now
become a vital part in any country’s economy. This is by virtue of the being the highest foreign
exchange earner and an employment in time industry.
ITC is renowned because of its excellence in providing customer satisfaction. They were
enjoying the status of market leadership rather monopoly since their existence,. ITC should
work to cope with this competition. Whatever the conditions will be, ITC loyal and
permanent customers will always prefer them. As is not up to the expectations so far,
therefore, It has an opportunity to maintain and improve their quality service and retain their
customers. It never compromises on quality.
ITC is aware of the fact that hospitality industry exists in rapidly changing environment, where
new products and innovations are introduced quite frequently. It is one of the biggest names in
the industry and they always keep abreast of their competitors. It relies on its international brand
name and is quite sure that will not be that big a threat.
We conclude that ITC is better than any other hotel located in Bangalore at present and it is
always the first preference for its customers.
BIBLIOGRAPHY
BIBLIOGRAPHY
The information provided in this project is collected from various sources like;
ITC website(www.itcportal.com
www.wikipedia.com
www.Wikipedia.org
India Today magazines