Professional Documents
Culture Documents
The Hospitality Industry
The Hospitality Industry
Objectives
students will get knowledge about
The definition, origin, evolution and growth of hospitality industry
The different form and type of tourism available to the hospitality industry
The role of hospitality industry in global economy
The hotel industry is undergoing many changes the demand for hotels is affected as the
economic fortune of countries, region, cities rise and fall. Each year companies and
hotel change ownership and new companies & brands enter the market place. Brand
names that are popular today may not be there in the next decade. For example: the
popular ITDC chain of hotels has been diluted over time with change of ownership and
new brands taking over.
Origin
No one knows exactly when the first inns opened: but certainly the first inns were
private homes that offered accommodations to travelers. By 500 BC ancient cites in
Greece, Egypt, China, had a number of establishment that offered food and drink as
well as beds to travelers. In France, large building that had rooms to let by the day,
week, or longer were called ‘hotel garni’. The word ‘hotel’ was first used in England in
about 1760. In 1794 the first hotel in the United States opened – the 70-room city hotel
in Broadway in New York City. Over the decades, names like, Cesar Ritz (France),
Ellsworth Statler, Conrad Hilton, Ernest Henderson (of the Sheraton chain), Kemmons
Wilson (of the Holiday Inn chain) are anonymous with the growth and development of
the hotel industry.
2
Module 1 THE HOSPITALITY INDUSTRY
While development were in full swing in the new world, India still under the British rule
was ignorant to all these progress but for one man. JRD Tata founded the first hotel in
India with the opening of ‘Taj Mahal’, Mumbai in 1904. MS Oberoi on the other hand
launched the Oberoi chain and in independent India chains such as ITC Windsor
Sheraton, the Leela group, ITDC, The Park, The Grand, Clarke group; Mahindra
hospitality pioneered the hospitality sector.
Evolution & growth
In 1960’s the development of new locations fueled the expansion of the hotel industry.
Prior to that time hotels were built primarily in city center and resort areas as commerce
and industry spread from urban center’s to rural suburban and airport locations, hotel
companies like Hilton, Sheraton, Marriot recognized opportunities to develop their
brands in these new location.
In the 1970’s intense competition among established and emerging hotel chains created
a need for chains to better differentiate their product. Some did this with architecture
and décor. For example, the atrium lobby became the Hyatt’s signature of its regency
brand. Hotel company adopts distinctive motifs- Ritz Carlton décor was traditions,
Hyatt’s was contemporary.
Pampering the hotel guests was the strategy of the 1980’s, room and bathroom
amenities specialties soaps, sewing kits, ,mouth wash, shampoo, and a variety of other
personal care items could be found in most hotels whatever the rate category. Of
course the higher rate hotel provided the most elaborate amenity package. Some first
class and luxury hotels set aside one or more guest floors as club area. For higher rate
club guest could enjoy a number of special services including an exclusive club desk for
check in and checkout and complimentary, afternoon tea, evening cocktails and before
bed snacks served in the clubs private lounge. Exercise room even complete spa
facilities were added to many hotels to satisfy travelers growing interest in physical
fitness. Hotels with predominantly business traveler markets added business centre to
provide secretarial and translating services as well as computer and fax facilities.
In the early 90’s the concept of quality service as a differentiating factor came to the
forth. Hotel companies implemented quality assurance program and referred to the
quality of service in their advertising, as the 1990’s progresses, the industry emphasized
innovation and new business strategies. Segmentation was one of the most important
strategies implemented by many hotel chains to increase their market share.
At the end of the 20th century and the beginning of the 21st, mergers, acquisitions and
joint ventures changed lodgings competitive environment globally. In India for example,
The Oberoi tower in Mumbai tied up with Hilton International.
India‘s hospitality industry is all set to roll with big players entering the budget hotel
segment. Due to a huge demand- supply gap, this segment holds enormous business
potential. India is one of the world‘s most dynamic economies today. So with the rapidly
growing trade the number of inbound, outbound & domestic tourist has also increased.
India is on track to capture 01% of the global trade in the near future. In fact the world‘s
GDP of India is expected to rise from 6% to 11% by 2025. So, with a growing number of
wealthy Indians as well as an expanding middle class, the number of Indians traveling
within the country has nearly doubled in the past decades to about 450 million. It means
that there is a huge domestic tourist market in India itself, including business & leisure
travelers. An estimated 300 millions tourist trips annually are there, on average, which
may also include those traveling for social & religious purpose. The industry expects a
boom in tourism in the domestic sector in India, & a growth of 10% to 15% over the next
few years. A growth in tourism will certainly mean a boom in hotel & restaurants & in
turn focus on its service sector &the human resource manning those services. The
hospitality industry has grown at 23.7% in 2005-2006 & now the focus is shifting
towards domestic travel, which is the real driver of hotel business in the country in past,
Foreign tourist arrivals in our country has been hovering around 2.5 million but in 2003,
with 2.72 millions tourist, growing was at 14.3%. in calendar year2004, foreign tourist
arrivals reached the figure of 3.37 million, showing a growth of 23.5% & India crossed
the magic figure of 03 million foreign tourist for the 1st time
And in an effort to encourage foreign investment in the real estate sector for hospitality
industry, the Indian government has changed its restrictive laws in February 2005, to
allow 100% foreign direct investment to develop new housing, commercial properties,
hotels & hospitals. The international tourist arrival in Delhi for the year 2010 is
forecasted at 18 lakh & of domestic tourist being 35.8 lakhs in the same year.
India has great caliber for growth & development in the tourism sector. The growth of
the hotel management is linked closely to this sector. Manpower requirement for hotels
is on the rise. Star hotels require specialized trained staff for their various departments
like Food & Beverage, Food Production, Housekeeping & Front office, Public relation,
Account section & other services. These jobs have become increasingly challenging &
sophisticated in recent times. The employment opportunity in hotels varies within the
industry & is largely dependent on the size of the hotel. Human resource required by the
hotel industry by 2001 is predicted to match the extension of room space, likely to be
almost an additional 124,000 rooms. Each room in a 5 star hotels needs 03 person &
jobs with direct responsibilities, while many more persons indirectly assist the core
group.
compared with global trends. The report also analyses the performance of the industry
across major markets, and profiles the major players in the industry.
Prime Minister, Mr Narendra Modi urged people to visit 15 domestic tourist destinations
India by 2022.
Statue of Sardar Vallabhbhai Patel, also known as ‘Statue of Unity’, was inaugurated in
October 2018. It is the highest standing statue in the world at a height of 182 metre. It is
expected to boost the tourism sector in the country and put India on the world tourism
map.
The Government of India is working to achieve one per cent share in world's
international tourist arrivals by 2020 and 2 per cent share by 2025.
India’s travel and tourism industry has huge growth potential. The tourism industry is
also looking forward to the expansion of E-visa scheme which is expected to double the
tourist inflow to India.
Definition of Tourism
There are a number of ways tourism can be defined, and for this reason, the United
Nations World Tourism Organization(UNWTO) embarked on a project from 2005 to
2007 to create a common glossary of terms for tourism. It defines tourism as follows:
Tourism is a social, cultural and economic phenomenon which entails the movement of
people to countries or places outside their usual environment for personal or
business/professional purposes. These people are called visitors (which may be either
tourists or excursionists; residents or non-residents) and tourism has to do with their
activities, some of which imply tourism expenditure (United Nations World Tourism
Organization, 2008).
Using this definition, we can see that tourism is the movement of people for a number of
purposes (whether business or pleasure).
Forms of tourism
There are three basic forms of tourism: domestic tourism, inbound tourism, and
outbound tourism. These can be combined in various ways to derive the following
additional forms of tourism: internal tourism, national tourism and international
tourism
International Tourism
When people visit a foreign country, it is referred to as International Tourism. In order
to travel to a foreign country, one need a valid passport, visa, health documents, foreign
exchange, etc.
7
Module 1 THE HOSPITALITY INDUSTRY
International tourism further divides into two types; Inbound Tourism & Outbound
Tourism.
Inbound Tourism
This refers to tourists of outside origin entering a particular country. When people travel
outside their host/native country to another country, then it is called inbound tourism for
that country where he/she is traveling. For example when a tourist from Indian origin
travels to Japan then it is Inbound tourism for Japan because foreign tourist comes to
Japan.
Outbound Tourism
This refers to tourists traveling from the country of their origin to another country. When
tourists travel a foreign region than it is outbound tourism for his own country because
he/she is going outside their country. For example when a tourist from India travel to
Japan then it is outbound tourism for India and Inbound tourism for Japan.
Domestic Tourism
The tourism activity of the people within their own country is known as domestic
tourism. Traveling within the same country is easier because it does not require formal
travel documents and tedious formalities like compulsory health check and foreign
exchange. In domestic tourism, a traveler generally does not face much language
problems or currency exchange issues.
Internal tourism: Internal tourism comprises domestic tourism and inbound tourism,
that is to say, the activities of resident and non-resident visitors within the country of
reference as part of domestic or international tourism trips
National tourism: National tourism comprises domestic tourism and outbound
tourism, that is to say, the activities of resident visitors within and outside the country
of reference, either as part of domestic or outbound tourism trips
Tourism in India has emerged as the fastest growing industries in the last decade and is
still in its growth phase. The diverse flora and fauna, climatic conditions, historical
heritages and cultural diversity in India have made it the first choice of the tourists
across the world.
The major reason behind the success of tourism industry in India is the availability of all
aspects of tourism at a single country, whether it be nature, wildlife, cultural diversity,
ecological biodiversity, adventure and many more. In addition to that, the hospitality of
India is famous worldwide giving it an additional edge to attract the tourists from
different countries.
There are various types of tourism branches in India that can be enjoyed at different
tourist destinations of India. The major of them are:
Types of Tourism
1. Mass Tourism: It is the most recent phenomenon of the modern tourism. This
concept emerged along with the concept of paid holiday. It focuses on more no.
of tourists instead of selective or elite tourists. The development of air ways and
sea ways has helped to travel many people at once. Many travel agencies focus
on package-tourism due to many people.
2. Village and Urban Tourism: In village tourism, all activities are concerned within
village. A village is selected as a model village. A few guest room and kitchen are
developed without disturbing the village
environment. Urban tourism focuses on city tourism where big hotels and
restaurants are developed.
3. Cultural Tourism: It is related to the tours to culturally rich places. The tours are
arranged to provide knowledge on culture, religion, beliefs, attitudes, social
behaviors and so forth.
4. Adventure Tourism: It involves three basic components; an element of risk,
higher level of physical involvement, and specialized skills to participate. For e.g.
rafting, trekking, bungy-jumping etc.
5. Conference Tourism: Big business-homes, multi-national companies,
government etc organize meetings, conventions, conferences that make people
visit different places and countries.
6. Eco-Tourism: This type of tourism is the need of modern era. This type of
tourism is organized in natural environment and the tourists observe man-nature
relationship.
7. Recreational Tourism: It concerns with recreational activities, mostly centralized
in big cities. For e.g., casinos at Los Angeles, Night Clubs at Bangkok etc.
8. Health Tourism: This type of tourism was in more demand in late 19 th century.
People visit different places for better health and refreshed mind.
9. Sustainable Tourism: This concept emphasizes on public participation. It does
deal with the study of carrying capacity of the earth.
10. Historical Tourism: It focuses on visiting historically important places like
museums, monuments, archaeological areas and so forth.
9
Module 1 THE HOSPITALITY INDUSTRY
order to take items such as toothbrushes, chargers and snacks to guests. These types
of digital systems not only make it easy for hotel staff to deliver items to guests, but it
also offers a forward-facing digital experience to people who stay at the hotel.
Smart room keys
Hotels will increasingly install smart room access systems that allow guests to unlock
their doors by simply swiping their phones across a keyless pad on the door. Starwood
(owner of the Sheraton, Weston and “W” hotel chains) has already upgraded 30,000
room locks across 150 hotels with this system and Hilton will be implementing a similar
system at 10 of their US properties this year. In 2019, they will be deploying the smart
room key technology globally. This technology will mean that guests don’t have to worry
about picking up keys and front desk staff won’t have to issue new keys in the event
that a guest loses their room key.
Feedback on social media
Technology has infiltrated almost every aspect of our lives and hotel developers need to
realize that almost any person checking in at a hotel, resort, spa or lodge, will have a
smartphone in their pockets.
Many companies in the hospitality industry are already using social media to their
advantage as guests check-in on location-based social media apps, tweet about their
experience on Twitter and share their holiday photos with friends and followers on
Instagram and Facebook. This trend will continue and hotels can expect to see even
more social media engagement from guests who use these platforms to give feedback
about their experience, complain and give compliments about their stay. Hotel staff are
also expected to provide feedback and address and complaints or queries from guests
in real-time.
Cloud services
Being able to provide entertainment on tab and mobile content has led to the trend of
hotels investing in cloud services. While hotels want to be able to offer digital content,
they don’t necessarily want to invest in IT infrastructure and IT staff, making cloud
computing the ideal solution. Hardware is expensive. Also, it takes up a lot of space,
which is a big commodity in the world of small hotels. So you need to keep it simple.
You need to keep all your software tools in one, centralized location that everyone can
access.
Course Outcome