CHAPTER 1

INTRODUCTION

1.1 OVERVIEW OF INDUSTRY AS A WHOLE

1.1.1 WHAT IS THE SERVICE SECTOR?

The service sector is the sector of the economy that produces and offers
services. According to the tri-sector macroeconomic theory, there are three
major economic sectors – primary, secondary, and tertiary.

1.1.2 SUMMARY

 The service sector is the part of the economy that provides various
services, as opposed to providing tangible goods such as cars and
televisions.
 The service sector is the largest sector of the economy in developed
nations.
 The rapid growth of service-related industries has been fueled by increases
in knowledge and data, and rapid technological advances – especially,
improvements in communication.
1.1.3 MAJOR ECONOMIC SECTORS

A. PRIMARY SECTOR

The primary sector is composed of industries engaged in the business of

gathering raw materials. It includes mining companies, lumber companies,
and oil drilling companies – along with the agricultural and fishing
industries.

B. SECONDARY SECTOR

The secondary sector includes all businesses involved in producing and

selling goods – such as auto manufacturers, furniture stores, and clothing
retailers.

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C. TERTIARY SECTOR

The tertiary sector is the service sector. It includes industries such as the
financial services industry, internet technology (IT), and the healthcare
and entertainment industries.

1.1.4 THE PRIMACY OF THE SERVICE SECTOR

The fact that the service sector is designated as the tertiary sector should
not be in any way taken to mean that it occupies third place in terms of
economic importance.

Over the past century, the service sector has rapidly expanded. By the turn
of the 21st century, it had eclipsed the manufacturing and retail goods
sector as the largest sector of the economy in most developed nations.

Whereas in the early part of the 20th century, the United States became the
dominant world economy, thanks to its massive manufacturing industry;
by the early part of the 21st century, its worldwide economic dominance
was based on its massive service sector.

In the U.S., between 1919 and 2019, the service sector grew from
accounting for less than 50% of the country’s gross domestic product
(GDP) to generating roughly 85% of the country’s GDP.

The explosion of the service sector has been made possible by the
exponential increase in knowledge that has occurred over the past 50 to 70
years, the rapid growth of technology, and the development of
instantaneous, worldwide communication through internet connections
and cell phones.

Increased automation, which reduces the number of people required for

manufacturing processes, is also a key element in the shift from a
manufacturing-based economy to a service-based economy.

1.1.5 EXAMPLES OF SERVICE INDUSTRIES

Many people do not realize the huge number of businesses and industries
that combine to make up the service sector.

But if you stop and take some time to think about all the various service-
related businesses, then it becomes very easy to see why the service sector

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is, by far, the largest sector of the economy in developed nations such as
the US, the UK, Canada, Australia, Germany, and Japan.

The following are brief descriptions of just a few of the many businesses
that comprise some of the major industries contained within the service
sector.

A. TRAVEL INDUSTRY

The travel industry goes way beyond just the offices of travel agents and
major airlines. It also includes the rapidly growing operations of public
transportation, such as subways and city buses. Uber, Lyft, and Airbnb –
major businesses that didn’t even exist a mere 20 years ago – are part of
the travel industry.

Additionally, the countless tourist attractions such as museums, recreation

parks, national parks – such as Yellowstone and the Grand Canyon –
concert halls, and art galleries, along with the tens of thousands of local
tourist attractions spread throughout the country, are included in the travel
industry.

Hotels, motels, and the entire hospitality industry are also considered part
of the travel and tourism industry.

B. INFORMATION TECHNOLOGY INDUSTRY

The IT industry is composed of virtually anything and everything related

to computers, information, communication technology, and software –
except for the manufacturing of necessary hardware such as computers
themselves.

The whole gamut of social media – from Facebook to Twitter to Instagram

and YouTube – encompasses literally millions of individual businesses.
Did you know that, as of 2019, more than 30 million YouTube channels
were originating in the US?

Online education, one of the most rapidly growing industries worldwide,

also falls under the broad umbrella of the information technology industry.

C. MEDIA AND ENTERTAINMENT INDUSTRY

Technological inventions and advancements have also created a huge

expansion of the media and entertainment industry. News used to be

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distributed by radio stations, print newspapers, and network television
channels.

The rise of cable and satellite TV has given birth to an entertainment

world that contains dozens of different news channels. For example, Fox,
CNN, and NBC not only provide 24-hour news programs, but they even
operate separate business news channels.

Online news and information websites are far too numerous to count.
There are vastly more “made-for-television” movies produced every year
than the number of films produced by all the major motion picture studios
and production companies.

People can spend their entire day watching online entertainment provided
by YouTube or Pinterest or playing video games on their Xbox or
PlayStation. Among the lucrative newer occupations are those of video
game and app developers, social media consultants, and graphic website
designers.

The brief descriptions above, which are nowhere close to being

exhaustive, give us just a small sense of how truly massive the service
sector of our economy is – and we didn’t even mention the multi-billion
dollar healthcare, sports, and financial services industries.

Fintech (financial technology) businesses – another economic entity that

has only come into being since the turn of the century – alone are nearly a
$150 billion industry as of 2018 and are expected to surpass $300 billion
in market value by 2022

1.2 PROFILE OF THE HOSPITALITY AND TOURISM INDUSTRY

The Indian tourism and hospitality industry have emerged as one of the
key drivers of growth among the services sector in India. 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 an important source of foreign exchange in
India similar to many other countries. The foreign exchange earnings from
2016 to 2019 grew at a CAGR of 7% but dipped in 2020 due to the
COVID-19 pandemic.

In 2020, the Indian tourism sector accounted for 39 million jobs, which
was 8% of the total employment in the country.

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By 2029, it is expected to account According to WTTC, India ranked 10th
among 185 countries in terms of travel & tourism’s total contribution to
GDP in 2019. During 2019, contribution of travel & tourism to GDP was
6.8% of the total economy, ~ Rs. 13,68,100 crore (US$ 194.30 billion).

1.2.1 MARKET SIZE

India is the most digitally advanced traveller nation in terms of digital

tools being used for planning, booking, and experiencing a journey.
India’s rising middle class and increasing disposable income has
supported the growth of domestic and outbound tourism.

By 2028, Indian tourism and hospitality is expected to earn US$ 50.9

billion as visitor exports compared with US$ 28.9 billion in 2018.

The travel market in India is projected to reach US$ 125 billion by FY27
from an estimated US$ 75 billion in FY20.

The Indian airline travel market was estimated at ~US$ 20 billion and is
projected to double in size by FY27 due to improving airport
infrastructure and growing access to passports.

The Indian hotel market including domestic, inbound and outbound was
estimated at ~US$ 32 billion in FY20 and is expected to reach ~US$ 52
billion by FY27, driven by the surging demand from travelers and
sustained efforts of travel agents to boost the market.

International hotel chains are increasing their presence in the country, and
it will account for around 47% share in the tourism and hospitality sector
of India by 2020 and 50% by 2022.

As per the Federation of Hotel & Restaurant Associations of India

(FHRAI), in FY21, the Indian hotel industry has taken a hit of >Rs. 1.30
lakh crore (US$ 17.81 billion) in revenue due to impact of the COVID-19
pandemic.

The United Nations World Tourism Organisation selected Pochampally in

Telangana as one of the best tourism villages in November 2021.

1.2.2 INVESTMENTS

India was globally the third largest in terms of investment in travel and
tourism with an inflow of US$ 45.7 billion in 2018, accounting for 5.9%
of the total investment in the country.

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 The hotel & tourism sector received cumulative FDI inflow of US$ 15.89
billion between April 2000 and June 2021.

Indian government has estimated that India would emerge with a market
size of 1.2 million cruise visitors by 2030-31. Dream Hotel Group plans to
invest around US$300 million in the next 3-5 years for the development of
the cruise sector in India.

1.2.3 GOVERNMENT INITIATIVES

The Indian Government has realised the country’s potential in the tourism
industry and has taken several steps to make India a global tourism hub.

Some of the major initiatives planned by the Government of India to boost

the tourism and hospitality sector of India are as follows:

 From November 15, 2021, India allowed fully vaccinated foreign tourists
to visit India, which in turn will help revive the Indian travel and
hospitality sector.

 In the Union Budget 2022-23, an additional US$ 316.3 million was

earmarked for Ministry of Tourism.

 In November 2021, the Ministry of Tourism signed a Memorandum of

Understanding (MoU) with Indian Railway Catering and Tourism
Corporation to strengthen hospitality and tourism industry. The ministry
has also signed an MoU with Easy My Trip, Cleartrip, Yatra.com, Make
My Trip and Goibibo.

 In November 2021, the Indian government planned a conference to boost

film tourism in the country with an aim to establish domestic spots as
preferred filming destinations. This move is expected to create jobs and
boost tourism in the country.

 In October 2021, Prime Minister, Mr. Narendra Modi launched the

Kushinagar International Airport in Uttar Pradesh to boost tourism.

 The COVID-19 pandemic has greatly disrupted the Tourism industry. In

September 2021, the Ministry of Tourism announced plans to allow
international tourists to enter India and formal protocols are under
discussion. According to the previous announcements, the first five lakh
foreign tourists will be issued visas free of cost.

 In September 2021, the government launched NIDHI 2.0 (National

Integrated Database of Hospitality Industry) scheme which will maintain a

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 database of hospitality sector components such as accommodation units,
travel agents, tour operators, & others. NIDHI 2.0 will facilitate the
digitalisation of the tourism sector by encouraging all hotels to register
themselves on the platform.

 In July 2021, the ministry drafted a proposal titled ‘National Strategy and
Roadmap for Medical and Wellness Tourism' and has requested
recommendations and feedback from several Central Ministries, all state
and UT governments and administrations as well as industry partners to
make the document more comprehensive.

 In May 2021, the Union Minister of State for Tourism & Culture Mr.
Prahlad Singh Patel participated in the G20 tourism ministers' meeting to
collaborate with member countries in protecting tourism businesses, jobs
and taking initiatives to frame policy guidelines to support the sustainable
and resilient recovery of travel and tourism.

 Government is planning to boost the tourism in India by leveraging on the

lighthouses in the country. 71 lighthouses have been identified for
development as tourist spots.

 The Ministry of Road Transport and Highways has introduced a new

scheme called ‘All India Tourist Vehicles Authorisation and Permit Rules,
2021’, in which a tourist vehicle operator can register online for All India
Tourist Authorisation/Permit. This permit will be issued within 30 days of
submitting the application.

 In February 2021, the Ministry of Tourism under the Government of

India's Regional Office (East) in Kolkata collaborated with Eastern
Himalayas Travel & Tour Operator Association (resource partner) and the
IIAS School of Management as (knowledge partner) to organise an
‘Incredible India Mega Homestay Development & Training’ workshop.
725 homestay owners from Darjeeling, Kalimpong and the foothills of
Dooars were trained in marketing, sales and behavioural skills

 On January 25, 2021, Union Tourism and Culture Minister Mr. Prahlad
Singh Patel announced plan to develop an international-level infrastructure
in Kargil (Ladakh) to promote adventure tourism and winter sports.

 The Indian Railway Catering and Tourism Corporation (IRCTC) runs a

series of Bharat Darshan tourist trains aimed at taking people to various
pilgrimages across the country.

 On November 4, 2020, the Union Minister of State (IC) for Tourism &
Culture Mr. Prahlad Singh Patel inaugurated the “Tourist Facilitation

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 Centre” facility constructed under the project “Development of
Guruvayur, Kerala” (under the PRASHAD Scheme of the Ministry of
Tourism).

 Under Budget 2020-21, the Government of India has allotted Rs. 207.55
crore (US$ 29.70 million) for development of tourist circuits under
PRASHAD scheme.

 The Ministry of Tourism’s ‘DekhoApnaDesh’ webinar series titled ‘12

Months of Adventure Travel’ on November 28, 2020, is likely to promote
India as an adventure tourism destination.

 On January 26, 2021, Maharashtra Chief Minister Mr. Uddhav Thackeray

inaugurated Balasaheb Thackeray Gorewada International Zoological Park
in Nagpur. It is India’s largest zoological park spread over 564 hectares
and expected to attract ~2.5 million tourists a year.

 The Ministry of Tourism developed an initiative called SAATHI (System

for Assessment, Awareness & Training for Hospitality Industry) by
partnering with the Quality Council of India (QCI) in October 2020. The
initiative will effectively implement guidelines/SOPs issued with
reference to COVID-19 for safe operations of hotels, restaurants, B&Bs
and other units.

 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 it on the world tourism map.

 Under Budget 2020-21, the Government of India has allotted Rs. 1,200
crore (US$ 171.70 million) for development of tourist circuits under
Swadesh Darshan for eight Northeast states.

1.2.4 STATE GOVERNMENT INITIATIVES

 In October 2021, the Tripura government collaborated with Infovalley

Educational & Research (P) Ltd. as part of a public-private partnership
(PPP) to run the State Institute of Hotel Management (SIHM). Through
the SIHM, the government aims to empower the youth and contribute to
the growth of hotels and hospitality management in the state.

 In July 2021, the Kerala government, in collaboration with Vythiri in

Wayanad, has initiated a campaign to vaccinate all tourism and hospitality
stakeholders.

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 The Ministry of Tourism sanctioned three projects for a total amount of
Rs. 179.68 crore (US$ 24.24 million) under the Swadesh Darshan scheme
in Gujarat. The Ministry of Tourism has approved 16 projects for over Rs.
1,300 crore (US$ 171.2 million) in India's North East under the “Swadesh
Darshan” Scheme.

 In July 2021, the Odisha Tourism Development Corporation (OTDC)

invited applications to operate shacks in six major beaches of the state.

 In July 2021, the Tamil Nadu state government decided to implement an

integrated mega tourism plan, which included new lighting arrangements
for the Thiruvalluvar statue at Kanyakumari, starting renovations at
Poompuhar tourist spot and improving roads leading to tourist spots,
spiritual places and adventure tourism spots. It also includes unveiling a
new tourism policy, establishing more hotels, resorts, and convention
centres and increasing contribution of public and private sectors in the
tourism sector.

 In July 2021, Andhra Pradesh Tourism Authority urged stakeholders in the

tourism sector in the state to register with the Andhra Pradesh Tourism
under the Tourism Trade Registration and Facilitation Guidelines 2020.

 In June 2021, the Odisha state government announced to provide a

financial package for the COVID-hit tourism sector of the state.

1.2.5 ACHIEVEMENTS

Following are the achievements of the Government during 2019-20:

 During 2019-20, an additional fund Rs. 1,854.67 crore (US$ 269.22

million) was sanctioned for new projects under the Swadesh Darshan
scheme.

 Ministry of Tourism sanctioned 18 projects covering all the North Eastern

States for Rs. 1,456 crore (US$ 211.35 million) to develop and promote of
tourism in the region under Swadesh Darshan and PRASHAD schemes.

 Statue of Sardar Vallabhbhai Patel, also known as ‘State of Unity’, was

inaugurated in October 2018 and the total revenue generated till
November 2019 stood at Rs. 82.51 crore (US$ 11.81 million).

1.3 PROBLEMS

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1.3.1 IMPLEMENTATION OF TECHNOLOGY

Over the past year technology has ramped up within the hospitality
industry; self check-ins, contactless service, online ordering and payment
via apps has become the new norm.

It’s a challenge for the industry to provide a good customer experience

with a mix of human and tech-enabled interactions; customers crave
experience thus the company must be doing everything they can to adhere
to this. If the technology system is not in place at all or is down it can stop
the whole production system, thus organisations need to have back-up
plans in place to be prepared for any issue thrown at them with the world
of technology.

1.3.2 REPUTATION MANAGEMENT

Online platforms are becoming increasingly popular every year, with

customers giving companies online reviews, through comments, ratings
and photos. The hospitality industry has been battling to establish strong
relationships with their consumers to increase their reputation.

Reviews and comments can destroy or glamorise companies, thus the

industry needs to utilise certain platforms to their advantage and manage
their reputation, a challenge that organisations will face in 2021.

1.3.3 RETAINING AND ATTRACTING EMPLOYEES

The hospitality industry is known for high turnover rates, with about one-
third of workers quitting their jobs after working for just six months and
around 45 percent of workers holding on for an average of two years.

The industry is continuing to grow with more employees being expected

to be hired every year, thus for companies to remain competitive they need
to ensure they have employees with strong qualities, skills and knowledge.
Employee expectations are always changing and growing, organisations
need to keep up with the latest trends for attracting and retaining
employees, which is proving to be an ongoing challenge within the
hospitality industry.

1.3.4 ENVIRONMENTALLY FRIENDLY PRACTICES

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Environmental pressures continue to shape today’s hospitality industry,
over the past 10 years it has been a key focus for all organisations to invest
in. Sustainable practices make hospitality companies stand out, consumers
want to know that the business they purchase from follow
environmentally, socially and culturally sound practices. Especially
evident with Millennials and Generations Z’ers, consumers will pay more
for products that don’t harm the environment or affect wildlife.

A complete overhaul of the organisations systems and products to follow

sustainable measures will become expensive and won’t last, whereas small
steps over time to adhere to socially responsible guidelines will have a
lasting effect on your customers and the environment, increasing the
company’s reputation. A massive challenge that businesses will continue
to face in the future as sustainability is becoming a way of life to the
public and organisations.

1.3.5 PERSONALISING CUSTOMERS EXPERIENCE

Customers today have grown to expect to be recognised and treated as

individuals, rather than a steam-lined operations system. While consumers
expect a greater level of personalization, businesses still struggle to
translate data and insights into actions.

This information provides companies with customers past buying habits

and their interests, enabling the hospitality industry to tailor their offers
and promotions to specific customers. The industry needs to continually
find new and unique ways to personalise a customer’s experience to keep
a competitive edge.

1.3.6 LOYALTY PROGRAMS

Loyalty programs are one of the top-level marketing strategies to obtain

returning customers and most individuals expect a loyalty system when
purchasing from an business. The hospitality industry battles each other to
attract a loyal customer base and provide the best deals / product to
consumers.

There are multiple challenges companies face when implementing a

loyalty program mainly inaccessibility and confusion, as some customers
will not participate in a system that has complex accessibility or that

11
people do not understand. Furthermore, loyalty programs that are
unappealing and obsolete to consumers are also extremely unsuccessful.

Looking for more important hospitality industry news and insights?

The Impos Blog is your source for everything hospitality-related. Stay up-
to-date and get top-notch advice from the experts at Impos to help your
business succeed.

1.4 SWOT ANALYSIS OF TOURISM INDUSTRY

1.4.1 STRENGTHS OF TOURISM INDUSTRY

A. CULTURAL HERITAGE 

Cultural heritage and historical places are the main centers of attention for
many tourists. The history and archeology students are also the target
market of such places. 

The ancient temples in India and Thailand, the Great Wall in China, the
Egyptian Pyramid, K-2 in Pakistan, Himalayas mountain, ruins of ancient
Greeks, Stonehenge in the UK, and many other places around the world
are a cultural heritage that attracts thousands of tourists every year. 

B. LOCAL FESTIVALS 

The other thing that comes along with cultural heritage is the local
festivals. They’re different in different parts of the world. Some festivals
are so unique that attract tourist to have a real-life experience of those
festivals. For instance, the New Year festival in China, the colors of Holi
in India, American Orgi, and wild bull race in Spain, Pamplona’s festival,
and many other festivals. Such festivals and their unique history provide a
unique experience to the people. It doesn’t matter whether it’s right or
wrong and good or bad, they’re unique in their way. 

C. SAFE ENVIRONMENT 

When hundreds and thousands of people are gathered at one place and
celebrating the festivals. They’re moving around, meeting with different,
and enjoying the company of their friends and relatives. It gives the

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impression of a safe environment. The safety of the environment attracts
more people towards it, and the tourism industry keeps on multiplying. 

D. ACCOMMODATION FACILITIES 

As I’ve discussed earlier that the tourism industry works in collaboration

with other businesses as well. Different kinds of lodgings and
accommodations for different types of people also attract people. If a
tourist spot has luxury hotels, it’s good for business and rich people. Some
of the successful tourist places offer accommodation facilities for all types
and categories of people. 

E. ENOUGH RESOURCES TO PRODUCE QUALITY PRODUCTS

 
One of the most important advantages of the tourism industry is that it
increases the GDP growth of your country. When businesses and people in
your country have sufficient capital and resources, then they would be able
to produce quality products. When they start offering quality products and
services to the customers, it would bring more people. The cycle of
productivity and growth keeps on increasing. 

F. ECONOMIC GROWTH 

The tourism industry plays a very important role in the GDP and economy
of a country. In 2019, the tourism industry along with the travel business
single-handedly added 2.9 trillion dollars to the world’s economy. The
countries that have realized the significance of the tourism industry, earn
billions of dollars of revenue annually from it. 

G. TRAVELING CONVENIENCE 
A country with a strong infrastructure of roads, railways, and airports
would attract more people. It’s because traveling convenience is also a
very important aspect of the tourism industry. There could be very
beautiful places, but there are no roads to reach there. People usually don’t
take risks in their lives where there are no roads. Successful tourist
countries have a well-established system of transport. 

H.DIVERSE CULTURE
People speak different languages across the world and there’s a strong
cultural diversity. It also includes different types of lifestyle, clothing,
eating, festivities, and the whole social setup. It’s different everywhere.
Some cultures are open and moderate that they’re willing to accept any
good new thing. Such openness attracts a lot of people towards it. 

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1.4.2 WEAKNESSES OF THE TOURISM INDUSTRY

A. LESS MANAGEMENT SKILL 

As we have established the fact that tourism is a combination of different
types of business. It means that you have to bring different businesses to
the table to work for the same common goal. The objective would growth
of the tourism industry. It may seem simple and easy, but it requires a
huge managerial skill. It’s because different businesses have different
objectives and they may not agree with your plan. We don’t see a high
level of professionalism often. 

B. LACK OF INNOVATION 
The tech development and progress that we see in different fields like
transport, hotels, and luxury are all moving in a different direction.
There’s no coherence among all of them. We can safely say that it lacks
innovation and creativity.

C. LACK OF QUALITY SERVICE 

Some hotels and restaurants, airlines, and local travel companies provide
quality service in some countries. Often we hear people complaining about
their bad experience that they had with the different traveling agencies.
Many tourism agencies working in different countries and they charge a
very amount for their services. Very few of them provide quality services
to their clients. 

D. HIGH TURNOVER RATE 

The employees’ turnover rate is very high in the tourism industry. It’s
because the work pressure is very high during the season, and pay is very
low. The reason people accept such a job is to fill the gap in their careers.
They’re always looking for a better opportunity. Whenever they find it,
they leave their job immediately. 

E. SEASONAL STAFF
The businesses in the hospitality industry don’t hire employees
permanently. They pay low wages to their employees and don’t invest
resources in training and development. The employees’ satisfaction level
is very low in this field. 

F. CONVENTIONAL MARKETING STRATEGIES 

Most of the businesses and companies in the tourism industry use
conventional marketing strategies. Like billboards, newspapers, word of
mouth marketing, and referrals. Very few of them use sponsored posts on
different social media platforms to target their specific market. 

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1.4.3. OPPORTUNITIES FOR THE TOURISM INDUSTRY

A. PERSONALIZED SERVICE WITH UNIQUE EXPERIENCE 

Most of the hotels, restaurants, travel companies and other businesses
offer a collective service and treat everyone the same way. They lack a
personalized customer service experience. In other words, there’s a growth
potential for new businesses in the hospitality industry. If they’re able to
provide a unique customer experience, they can excel in it. 

B. UNUSUAL VENUES TO ATTRACT PEOPLE

If you’re new in this field of the hospitality industry, selecting an unusual
spot and building it has growth potential. It would require a huge amount
of resources. If you can manage to raise the capital, work on the land,
establish a good place, then you would able to attract a lot of tourists. 

C. NEW PRODUCTS 
A new product or service always has growth potential. It means that your
product should be unique and catchy. If it can attract the attention of
customers, then it would sell in the market.

D. ENVIRONMENT-FRIENDLY PLACE
People have become very cautious about the environment in recent years.
If you establish a place free from plastic and zero carbon emission. Such
steps would help you to attract environmentally friendly customers. 

E. ECONOMICAL SERVICE 
There’s a perception among the public that the hospitality industry is very
costly. If your business offers quality products and services at an
economical price, it would provide you a huge competitive edge.  

F. ONLINE MARKETING 
If you employ online marketing techniques to target your customers, it
would help your business to reach more audiences. You can increase the
sale and profitability if your message reaches more people. 

1.4.4 THREATS TO THE TOURISM INDUSTRY

A. PANDEMIC OF COVID-19
The lockdown and shutdown of businesses due to the pandemic of covid-
19 has impacted very badly the tourism industry. No one was expecting
the worldwide lockdown. It did happen and it impacted a lot of small
businesses. 

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B. ENVIRONMENTAL ISSUES 
Tourism industry has been polluting the environment. It includes carbon
emission by burning fuels, plastic bags, endangering the wild, cutting off
the tree to establish hotel resorts, and many other issues. 

C. LIMITED FINANCES 
The global economy has been going through a period of economic
recession. Many people have lost their jobs due to the pandemic. Their
finances are limited and tourism is a luxury to them that they can’t afford. 

D. LIMITED PROFESSIONAL INSTITUTION FOR TOURISM 

There are very few institutes that provide professional training for tourism.
That’s why we don’t see often professionalism in the tourism industry. It
could be the professional product quality and service, or the professional
way of doing business. 

E. HIGHLY COMPETITIVE 
The tourism industry has become very competitive. Many small
businesses have jumped into it and they offer low-quality service at high
prices. 

F. VISA RESTRICTION 
It’s very difficult to get a tourist visa for different countries. Many
countries don’t offer it easily. Even if you have the best quality service,
but the government regulations aren’t letting people in. you can’t do
anything about it. You have got no other choice, but to obey the law. 

CONCLUSION 
After a careful study of the swot analysis of tourism industry, we have
concluded that tourism along with hospitality and transport business is
indeed a successful business. But the visa restrictions, government
regulations, and many other threats are real and important

1.4.5 STRENGTHS OF THE HOTEL INDUSTRY

A. PROVIDES SAFE ABODE AWAY FROM HOME

It’s undeniable that the hotel industry provides safe

accommodation for people when they are away from their
homes.The industry itself boasts millions of decent rooms. With
a variety of hotels across the globe – from boutique hotels to the grandeur
international name brands and everything in between, there’s always a
hotel that will fit a customer’s needs.They offer everyone a place to kick

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back and relax away from all the hustle and bustle of everyday life and
work.Without the hotel industry, vacations and road trips wouldn’t be
safer or even possible.

B. CONTRIBUTES TO THE LOCAL ECONOMY

As an industry that wields significant financial power, the hotel industry

can certainly tide things over in the local economies.Sure, it’s local
attractions that bring masses to the community, but it’s the hotels that keep
them there. When people stay in a place, they consume local services and
goods.They will visit local malls, eat in local restaurants, and shop in local
stores and, where do all those top dollars end up? That’s right – within the
community.So, the Hotel industry is a boon to the community.

C. IT IS A MAMMOTH OF AN EMPLOYER

Again, the hotel industry is an enormous sector that employs many people
in myriad disciplines.Think in the line of management, groundworks,
landscaping, banking, service, and entertainment to name a few.There are
a lot of Astonishing facts about hotel industry with key facts being that
within the next couple of decades 1 out of 10 people could be a hotelier or
hospitality professional.Even after a huge setback due to the COVID-19
pandemic, the hotel industry would still be one of the biggest employers
globally.

D. HIGH-PROFIT MARGIN

Although the hotel industry requires huge initial capital, it’s still a worthy
investment as the cost of labour is lower, and the profit margins are
higher.However, this is not the case across the globe.While Asian, Latin,
African, and Middle Eastern hotels enjoy cheap labour, those in Europe
and the Americas are paying a premium in wages.High-profit margins are
key strengths for the following sub-sectors of the hotel industry

 Luxury hotels and resorts

17
  Boutique Hotels
 All-Inclusive Resorts
 Casino Properties
 Spa and Lifestyle Resorts
 and more.

1.4.6 WEAKNESSES OF THE HOTEL INDUSTRY

A. HIGH HOTEL RATES- HUGE SETUP COST

High-end hotels charge thousands of US Dollars to stay there for a single

night.The problem is that these rates are not within reach of an average
household in today’s world.So, the hotels are losing customers to
competition inside and outside the industry.In essence, there’s a limited
demographic that the hotel industry can market their services and products
to.Although there are affordable hotels out there, they usually offer lower
standards of services – and maintenance.Also, the setup expenses of hotels
are huge. It takes a lot of effort and money to build up a hotel and then run
and manage the same.It can take years to get to profit zone for high-end
hotels. Huge investment and operational costs are key weaknesses of the
hotel industry.

B. UNFAVOURABLE TAX RATES

In some countries, the hotel industry is subjected to an unfair tax structure

which, in turn, takes the cost of offering hospitality services to a whole
new high.Get this some rooms attract specific taxes which are charged per
night spent there.As if that isn’t worse enough, some hotels also receive
higher sales taxes when pitted against other sub-industries such as bed and
breakfasts.

C. SEASONALITY OF THE HOTEL BUSINESS AND

DEPENDENCE ON TOURISM

18
The hotel industry is a part of the bigger travel and hospitality
industry.This dependence makes the hotel industry vulnerable.The
business of hotels would depend on the influx of tourists, holidays and
season. This seasonality and dependence on tourism is a key weakness of
the hotel industry.Predicting high and low season in advance is quite
difficult. Keep a macro perspective, this gets even more difficult.As an
example, the COVID-19 pandemic has simply demolished the tourism
sector in 2020.The hotel industry is directly dependent on travel and thus
had to suffer huge losses.This is a classic example of the over-dependence
of the hotel industry on external factors.

1.4.7 OPPORTUNITIES FOR THE HOTEL INDUSTRY

A. HUGE SCOPE FOR TECHNOLOGY

It’s a key strength of the hotel industry as the technology still can be said
to be underexplored in hospitality and travel.

The benefits for your organization:

 Utilising Artificial Intelligence in customer support (Chatbots)

 Upgrading the Property Management System
 Greater use of Automation for check-in and check out
 Using Robotics for automatic some part of service
 Blockchain for an enhanced payment security
 Cloud technology for saving on server resources
 Augmented and Virtual Reality helps in richer consumer
experience.
 And much more would be on your exploration radar while
exploring opportunities for the hotel industry.

B. MILLENNIALS THE NEW KEY TARGET SEGMENT FOR

HOTELS

19
Millennials are creating huge opportunities for the hotel industry.They
love to travel. They love technology. They care for sustainability. They
love green tourism.There is a huge crowd that has become the decision-
maker for travel and lodging.All SWOT analysis must have a section for
new market segment opportunities.Millennials should find a separate
heading in the opportunity section of the analysis.Catering to this market
has a huge spillover effect on all other segments.With their varies interests
and love for innovation, millennials are creating opportunities for the hotel
industry in 2020 and beyond.

1.4.8 THREATS TO THE HOTEL INDUSTRY

Alternative lodging like Airbnb has already posed enough threat to the
hotel industry.Boutique Alternatives- Cheaper and more robust hospitality
services are mushrooming each day. Airbnb is the primary threat to the
hotel industry, for that matter.Prevalent Conditions: Civil unrests in some
foreign countries can dampen down the hotel industry both directly and
indirectly.Worse-Than-Expected Economies: The hotel industry is still
reeling back from the aftermath of the world’s recession. Unfavourable
interest rates and low disposable income has cut down dramatically
footfall in most hotels across the world.Changing travel patterns:
Consumer behaviour is changing. Augmented reality and Virtual reality is
giving consumers options to enjoy travel without much of travelling. This
can directly impact the lodging industry.Pandemics: COVID pandemic is a
recent example of how pandemics can be a threat of the hotel and
hospitality industry overalA hotel competitive analysis is an assessment of
your competitors’ strengths and weaknesses as a means of comparison in
an effort to find your property’s strategic position in the market. Hoteliers
use competitor analysis to help with benchmarking the local market in
order to find their competitive advantage and ideal pricing position.It’s
basically like studying the chessboard in preparation for the game ahead.
How do you know what move to make next? Gathering the information on

20
your competitors can give you the insight you need to make smart revenue
management decisions.

1.5 COMPETITIVE ANALYSIS 

1.5.1 WHY IS PERFORMING A HOTEL COMPETITIVE

ANALYSIS IMPORTANT?

A hotel competitive analysis (sometimes called a value analysis) gives you

the information you need to make sure your property is priced
competitively for your market. It prevents you from leaving money on the
table with rates that are too low or losing occupancy due to rates that are
too high. If you’ve ever worked on strategic planning for business growth
or a marketing strategy, you may have done a SWOT analysis, or an
evaluation of your business’s strengths, weaknesses, opportunities, and
threats. Similarly, in the hospitality industry, a hotel competitor analysis
helps you find your “sweet spot” in your local market. The saying
knowledge is power has never been more true when it comes to your
competition; without this knowledge, you’re giving up your power to be in
control of the best pricing strategy for your market.

1.5.2 HOW DO YOU DO A HOTEL COMPETITIVE ANALYSIS?

Let’s start by discussing what is included in a hotel competition analysis.

Two major factors impact rates the most: what your competitors are doing
and your current occupancy. Large, hotel chains, like Hilton and Marriott,
have the budget to hire a revenue manager. Revenue management can be
time-consuming and expensive, and it requires an understanding of data
and strategic decision-making. However, it’s no longer true that revenue
management is only for larger hotel businesses with a full hotel
management staff. Every property type and accommodation provider
should be conducting a hotel competitive analysis if they want to see

21
better revenue per available room (RevPAR), a higher average daily rate
and increase their profitability.

The 6 steps of a hotel competitive analysis

1. Choose your hotel competitive set, also known as a compset. Select 3-5

direct competitors in your market (in our example we use 4). For an

accurate comparison, choose properties that attract a similar target

audience and potential guests as your property.

2. List the competitive characteristics for comparison (in our example, we

chose the 4 characteristics listed below and illustrated in the table) then on
a scale of 1-10, rate where each property falls on the scale:

o Location

o Property amenities

o Room quality

o Reviews

3. Take an average of those scores to calculate the “perceived value” of

the property.

4. Next, take an inventory of your compset’s average room rates: Note

down both the cheapest rate and the highest rate you found publicly listed
for each property.

5. Plot the results on a graph (view image) On the “x-axis” add the RATE
by listing the cheapest rate to the highest rate found for all the properties.
On the “y-axis” add the VALUE which is the average score you calculated
for each property in Step 3.

22
6. Review the results to build your compset strategy. The graph will help
you understand your competitive position in the market. In other words,
where you “stack up” against your competition in terms of price and
perceived value.

23
 CHAPTER 2

CONCEPTUAL DISCUSSION

THE HOSPITALITY INDUSTRY & THE IMPACT OF COVID-19

As the effects of COVID-19 spread across the entire world, the primary
focus for governments and businesses is the safety of their people. Whilst
this focus will continue, the implications for economic growth and
corporate profits have to lead to a sharp sell-off in equity markets across
the globe. We are proud to see that our hospitality and leisure clients,
being the first ones that experienced the extreme bad weather conditions,
are moving quickly and remain focussed to understand and quantify the
operational and financial impact for their business. The impact is huge,
and not yet predictable, on both revenue and supply chains. Decisions
being taken to shut down hotels, restaurants, theme parks, cinemas, not to
mention the entire disruptive effect of the travel ecosystem, all have a
significant impact on worldwide tourism. As a team, Operators and
Investors are trying to mitigate the cash and working capital issues, and
stay in close contact with their stakeholders.

This sector shows its maturity level in working together, showing their
true hospitality commitments in helping out our society where they can.
For example by making their venue available for hospital beds and
hospital employees. The situation we are in also brings new business
models and opportunities, in defining for instance new delivery concepts,
human capital sharing platforms, initiatives in promoting the “staycation
or holistay concept” and the use of the less productive time to work on
activities that were normally pushed forward like asset counts, security
plans, defining standard operating procedures, social media plans etc. The
good news is that our colleagues in Asia already see a pick up in this
sector, although only at the starting point. This gives hope for the sector at
this stage in time. Stay positive, stay focused and stay alert on your
financial situation.

COVID-19 RESEARCH IN HOSPITALITY AND TOURISM

Our lives and our industry have been deeply impacted by the pandemic
and the global lockdown that came with it. In these unprecedented times
researchers at the School of Hospitality and Tourism Management have
worked closely with industry to learn about the needs and requirements of
businesses and travellers to be able to return to a new normality when it
comes to travelling and the prosperity of businesses. We are dedicated to

24
support the hospitality, tourism, events, transport industry, and related
sectors with our research and wish to share it as widely as possible.

IMPACT OF COVID-19 ON ASIA PACIFIC VISITOR

FORECASTS 2020-2024

Centre for Competitiveness of the Visitor Economy

Professor Gang Li and Dr Anyu Liu, in collaboration with Professor
Haiyan Song’s team at The Hong Kong Polytechnic University,
produced Asia Pacific Visitor Forecasts 2020-2024 for the Pacific Asia
Travel Association (PATA). The report has paid particular attention to the
impact of Covid-19 on the visitor demand and the market recovery in 39
destinations of the region. Both Professor Li and Dr Liu were invited as
panellists to PATA’s webinar on this topic on 14 May 2020. 

Consumer purchasing intention in restaurants and hotels post-Covid-19

lockdown

Centre for Competitiveness of the Visitor Economy

Dr Yoo Ri Kim and Dr Anyu Liu are working on an experimental study
regarding understanding consumers’ purchasing intention in restaurants
and hotels after the Covid-19 lockdown measures are lifted. This study
aims to provide both theoretical and practical implications for the
hospitality industry after the lockdown measures have been lifted by
informing consumer behavioural intention on social distancing measures
and promotion offers.

EXAMINING THE RESILIENCE OF HOSPITALITY

COMPANIES DURING THE COVID-19 PANDEMIC

Centre for Competitiveness of the Visitor Economy and Centre for Digital

Transformation in the Visitor Economy
Dr Tracy Xu is working with Mark Ashton and Dr Yanning Li to study the
resilience capacity and real-time adaptive strategies hospitality
organisations need to have in order to sustain in the Covid-19 pandemic.
This project aims to provide insights into how business strategies for
hospitality organizations may be better formulated to build sustainable
competitive advantage.

COVID-19 IMPACT ON THE CHINESE AIR TRANSPORT

MARKETS

25
Centre for Competitiveness of the Visitor Economy
Dr Frankie O'Connell is working on studying the knock-on effects of the
Covid-19 crisis on airline traffic (business and leisure passengers) within
the Chinese domestic market as well as the China to Europe and China to
other Asian markets. This study aims to uncover which type of passenger
segment as well as which type of airline business model showed more
resilience to the pandemic and which are most likely to rebound firs

CONNECTING WITH NATURE DURING TIMES OF CRISIS:

UNDERSTANDING ALTERNATIVE USE OF SPACES OF
LEISURE AND RECREATION DURING LOCKDOWN

Centre for Digital Transformation in the Visitor Economy

Professor Caroline Scarles and Dr Tracy Xu are working in collaboration
with Dr Birgitta Gatersleben and Dr Kayleigh Wyles from the School of
Psychology to investigate the impact of Covid-19 on people’s use of local,
everyday spaces of leisure and recreation. The research seeks to
understand how behaviour during lockdown is significantly different to
pre-lockdown behaviours and how experiences during lockdown may
influence changes in behaviour going forward. This is an ongoing survey
and results will be shared in due course.

VIRTUAL EXPERIENCES OF TRAVEL DURING LOCKDOWN

Centre for Digital Transformation in the Visitor Economy

Professor Caroline Scarles, Dr Tracy Xu and Dr Daisy Liu and Ayeisha
Green are collaborating to investigate how experiences of virtual travel
effect wellbeing during lockdown and how these experiences may affect
travel planning and decision making going forward as the tourism industry
moves into a post-Covid-19 era. This is an ongoing survey and the results
will be shared in due course.

THE IMPACT OF THE UK’S COVID-19 LOCKDOWN ON DOG

OWNERS' WELLBEING

Postgraduate researcher Lori Hoy in the School of Hospitality & Tourism

Management is investigating the lockdown’s impact on dog owners’
feelings, thoughts, behaviours, and wellbeing. The project is receiving
input from various stakeholders including MP Luke Pollard, Shadow
Secretary for Environment, Food & Rural Affairs. This project aims to
generate information for government, businesses, and charities in future
crises. Lori is supervised by Dr Brigitte Stangl and Professor Nigel
Morgan.

26
SUSTAINABLE MOBILITY AND AUTONOMOUS VEHICLES
AFTER COVID-19

SHTM/SWELL has been administering in the UK a user survey focusing

on travel preferences and Autonomous Vehicles. This is an activity
of WISE-ACT, which is an international network of experts chaired by Dr
Nikolas Thomopoulos. Since this user survey is coordinated with the
Eurobarometer and administered in several countries across Europe,
SHTM/SWELL researchers will collaborate with WISE-ACT to control
user responses received before and after the Covid-19 lock-down across
participating countries. Findings will be published in this
upcoming special Issue.

PANDEMICS, TOURISM AND GLOBAL CHANGE: A RAPID

ASSESSMENT OF COVID-19

Professor Daniel Scott co-authored the assessment of Covid-19 on the

tourism industry that is currently the most read journal article in the world
on this topic. It reviews how the current ban on travelling is affecting the
tourism industry and what the consequences for the sector may be.
The article was published in April 2020.

COVID-19 HAS AFFECTED EVERY SECTOR ACROSS THE

GLOBE, AND THE HOTEL INDUSTRY IS AMONG THE
HARDEST HIT.

Our research suggests that recovery to pre-COVID-19 levels could take

until 2023—or later. Investors are providing similar views of hotel
companies’ prospects, as seen in the underperformance of US lodging real
estate investment trusts (REITs). Like so many industries, hospitality will
also see both subtle and substantial shifts in the post-pandemic era. Some
are already apparent today.

MOST POPULAR INSIGHTS

 A single approach to culture transformation may not fit all

 Five trends shaping tomorrow’s luxury-car market
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 The six secrets of profitable airlines

27
In this article, we will examine a set of recovery scenarios for US hotels,
including differing return and recovery timelines for hotels ranging from
luxury to economy segment. On the consumer side, we will look at what
guests say will make them feel safe when traveling, including contactless
check-ins and check-outs, and an added emphasis on hygiene. And we will
review the factors affecting the initial return of travel in the domestic
business and leisure segments.

28
 CHAPTER 3

RESEARCH METHODOLOGY

3.1 TITLE

Hospitalty And Tourism Management

3.2 TITLE JUSTIFICATION

This project aims to analyse the hospitality and tourism industry.This

project consists previous studies and reasearch about hospitality and
tourism industry

3.3 OBJECTIVE OF STUDY

 To analyze and assess the performance of the hotel and tourism

industry .
 To identify the post Covid19 challenges and setbacks of the hotel
and tourism industry.

3.4 RESEARCH METHODOLOGY

Research methodology is a way of explaining how a researcher intends to

carry out their research. It's a logical, systematic plan to resolve a research
problem. A methodology details a researcher's approach to the research to
ensure reliable, valid results that address their aims and objectives. A
research methodology gives research legitimacy and provides
scientifically sound findings. It also provides a detailed plan that helps to
keep researchers on track, making the process smooth, effective and
manageable. A researcher's methodology allows the reader to understand
the approach and methods used to reach conclusions.

TYPES OF RESEARCHES

 Applied research : Applied research refers to scientific study and

research that seeks to solve practical problems.
 Quantitative research : Quantitative research is the process of
collecting and analyzing numerical data. It can be used to find
patterns and averages, make predictions, test causal relationships,
and generalize results to wider populations.

29
  Qualitative research : Qualitative research is research using
methods such as participant observation or case studies which
result in a narrative, descriptive account of a setting or practice
 Experimental research : Experimental research is a study that
strictly adheres to a scientific research design.
 Non-experimental research : Nonexperimental research is research
that lacks the manipulation of an independent variable, random
assignment of participants to conditions or orders of conditions, or
both.
 Exploratory research : Exploratory research is a methodology
approach that investigates research questions that have not
previously been studied in depth
 Confirmatory research : Confirmatory research (a.k.a. hypothesis
testing) is where researchers have a pretty good idea of what's
going on.

CONCLUSION
The design used for this study was that of the exploratory research
design which aimed at delving deeper into the hotel industry in
India and how the sector has contributed to the economy. Data was
collected for this research using secondary sources. Thorough
studies were conducted on
existing literature by reviewing textbooks, related literature,
articles, journals and online resources and the seaming trends were
identified to predict the future prospects of the industry.

3.5 DATA COLLECTION

 PRIMARY DATA

3.6 LIMITATION OF STUDY

1. Exploratory research brings up tentative results and so is

inconclusive. The focus of such research is to grasp and
formulate a better understanding of the issue at hand. These
research insights cannot be relied upon for effective decision-
making.

30
2.  Another con of exploratory research is its qualitative data
and subsequent analysis. It is difficult to derive accurate
insights that can be summarized in an objective manner. The
variability in qualitative data itself makes the evaluation of
data collected, a difficult and cumbersome process.

3. The small sample used for exploratory research increases

the risk of the sample responses being non-representative
of the target audience. Smaller groups of people as samples,
however useful for a quick study, can hinder a cohesive
understanding which not only deteriorates the current quality
of research but also adversely impacts the future research
carried out along similar lines.

4. Data, when gathered through secondary resources, can

supply obsolete information which may not generate any
significant contribution to the understanding of an issue in the
current scenario. Outdated information is neither actionable
nor supportive in offering any sort of clarity under dynamic
market conditions.

31
 CHAPTER 4

ANALYSIS

THE HOSPITALITY INDUSTRY

The word ‘hospitality’ derives from the Latin word ‘hospes or

hospitalitas’; meaning host or hospitable towards guests or strangers, with
the host being expected to make sure the need of the guest is met.
Historically hospitality involved welcoming strangers/travelers and
offering them food, shelter, safety and maybe some form of entertainment
in an establishment such as a guest house or an inn.

In the modern day this practice has mostly remained the same, however,
the scope and size in this day and age have dramatically changed into a
complex industry that covers a broad spectrum of organisations, locations,
activities, and economic bracket.

The hospitality industry is a multi-billion pound industry that mostly

depends on the availability, leisure time and disposable income. A
hospitality unit such as a restaurant or a hotel consists of many facets;
such as facility maintenance, operations, human resources, and sales and
marketing.

HOSPITALITY INDUSTRY SECTOR CLASSIFICATION

The hospitality industry is a diverse and highly competitive industry with

significant overlaps in other sectors, its services and enterprises can range
from food services to accommodation. It is divided into sectors including
food services, accommodation and lodging, events, entertainment,
recreation, and tourism services. There is 4 main classification of the
hospitality industry. These are:

1. Food and drinks services

The food service industry is one the most important sectors of the
hospitalityindustry and also overlaps with other sectors within the
industry.

Main areas of food services are to cater food and beverages to its clients,
guests and customers.

32
 Organisations within the foodservice industry:

•     Restaurants

•     Takeaways

•     Catering services

•     Cafés

•     Pubs

•     Events planning and exhibitions

•     Motorway services

•     Retail stores

•     Licensed trade

•     Events and exhibitions

2. Accommodation and lodging

Accommodation is an absolute broad and the most important sector of the

hospitality industry spanning the entire globe. Accommodation is provided
by a number of establishment ranging from very basic lodging which
includes shared or basic washing facilities to luxurious lodging which can
include spas and state of the art gym facilities to Michelin star dining
experience, this establishment ranges from:

•     Bed and breakfast

•     Hotels

•     Hostels

•     Floatels

•     Self-catering

•     Camping grounds, recreational vehicle parks, and trailer parks

•     Facilities offering lodging services

33
•    Holiday and other short-stay accommodation

3. Travel and tourism

The United Nations World Tourism Organisation defines tourism as:

“the activities of persons identified as visitors. A visitor is someone who is

making a visit to a main destination outside his/her usual environment for
less than a year for any main purpose [including] holidays, leisure and
recreation, business, health, education or other purposes ….This scope is
much wider than the traditional perception of tourists, which included only
those travelling for leisure”. The travel and tourism industry is a vast
sector of the hospitality industry which plays a pivotal role across the
globe. In a nutshell, the travel and tourism industry is in the business of
moving people from one destination to another. Like all other sectors-they
are also customer service focused.

The travel and tourism sector include:

•     Trains

•     Cruise ships

•     Airlines

•     Cabin crews

•     Travel agents

•     Tour operators

•     Leisure centre

•    Visitor attractions

•     Botanical and zoological gardens and nature reserve activities

•     Museum activities and preservation of historical sites and building

4.Entertainment sector

The entertainment sector is a key category within the hospitality industry

as it involves the most important aspect of the hospitality industry – that is

34
to provide entertainment. Activities and entertainment that elevate
experience are:

•     Sports and gaming – including Esports

•     Cruises

•     Nightclubs

•     Bars

•     Casinos

Another emerging sector of the hospitality industry is vacation ownership

of a place or venue for a specific duration period during the year.
Timeshare gives an option to acquire and enjoy facilities by either buying
or hiring part of a facility, venue or subscribing to a membership plan.
During this time period, the buyers or members can occupy the property or
a venue for their own purpose. There are many places and venues which
people can own for the time being, places and venues such as:

•     Convention Centres: Convention centres make the base of the

hospitality

the industry as they offer a place where people can gather in bulks for
seminars,

conventions, expos, and other similar activities.

•     Villas and Resorts: villas and resorts can be owned under the
timeshare rule

for some time of the year so that it can be enjoyed with friends or family.

Operational and functional department in hotels

Full-service hotels have six specific functional departments and divisions,

these form the foundations of all operations. These functional departments
are further divided into two categories; Front house and back house, with
the front house, having a high level of guest interaction and the back house
having the least but more towards human resources, maintenance and
payroll. Below is a diagram with the breakdown of functional departments
by their divisions and a brief summary of each department:

35
 Figure No-1

diagram showing operational and functional departments in a hotel (Elen

2013)

Functions of Front of House Operations

 Front of house refers to all actions and areas that a customer will be
exposed to during their stay. Employees who work in front of house
should be well presentable, have excellent hygiene and adopt a
professional, welcoming demeanour at all times. This group consists of:

•     Room Division: “Everything Begins with the Rooms Division”

(Ismail 2002, p.97). Room division is the primary receiver for the guests,
their visit and source for guests information, as the main purpose for
guests to visit a hotel is for lodging.

•     Sales & Marketing: This department exists to ensure the hotel

maximises its revenue, to ensure they are continually filling rooms and
making the most out of every available revenue source through marketing
and sales pitch.

•     Food and Beverage: The main responsibilities for the food and
beverage department are the kitchen(s), restaurant(s), lounge/bar(s) and
room service within a hotel establishment. (Ismail 2002, p.101)

36
Functions of Back of House Operations

Front of house encompasses all the behind-the-scenes areas that guests

will not see and has the least interaction with guests. It also serves as a
place for employees and managers to do administrative work.

•     Human Resources are responsible for recruiting, screening,

interviewing and placing workers. They may also handle employee
relations, payroll, benefits, training, and career progression

•     Engineering: This department is responsible for the overall

maintenance and improvement of the building structure, the ensure the
safety of all staff and guests within the boundaries of the establishment.
They will occasionally outsource certain functions to a third-party
specialist and are responsible for all jobs taking place by them.

•    Accounting: Responsible for overseeing hotel budgets, staff payroll,

and overall finances. They are detail-oriented employees and work with a
high ethical standard. Their overall duties include:

•    Managing budget

•    Process payroll

•    Track expense

•    Financial reports

•    Financial auditing

The economic contribution of the Hospitality Industry

 Hospitality is an important economic industry in most countries around

the world. According to an article on hospitality.net, “World Travel &
Tourism Council (WTTC) predicts that the hospitality industry will grow
in value on average by 3.9% a year over the next 10 years to $11.5
trillion and UN’s World Tourism Organisation (UNWTO), international
tourist arrivals are projected to increase by more than 3% a year to reach
1.8 billion by 2030”.

37
 CHAPTER 5

FINDINGS / OBSERVATIONS

FINDING

Overall, results suggest that the lockdown days at the peak of the
coronavirus crisis, the increasing number of monetary policy decisions and
international travel restrictions have led to the epidemic effect of COVID-
19 on the level of general economic activity and the budget of the hotel
sector in Indian industry. Has severely affected the lowest and highest
stock prices. . On the other hand, the epidemic of COVID-19 has a
negative impact on the hotel sector budget in the Indian industry whereas
the confirmed cases have a profound effect of COVID-19 on the hotel
sector budget related to the highest and lowest prices. . The COVID-19
appears to be more effective in reducing the effects of the epidemic, as
economic stability in the hotel sector has deteriorated significantly over a
short period of time. Operating sufficient minimum for quick
recommendation when the opportunity arrives. Implement a micro-digital
and social media marketing strategy to maintain the customers' mindset.
Engage with Vol-6 Issue-5 2020 IJARIIE-ISSN(O)-2395-4396 12654
www.ijariie.com 294 suppliers / vendors to calculate your ability to
reconnect with the hotel upon recommendation. Develop and maintain
communication lines with key customers and team members. Continue to
remain in discussion with the local government authorities concerned
develop a plan and budget again

OBSERVATION
The large-scale hotel sector has been the biggest cause of COVID-19
shock, with less worldwide demand. As contingency plans continue to
ease the collapse of the crisis in the region, in our opinion, hotel operators
should also extend a hand of solidarity to their owners by providing some
relief measures. According to recent reports, more than 30% of domestic
hotels in the country resumed operations at the end of May 2020, 2 months
after the first COVID-19 case was filed in the country. Hotel bookings are
also increasing, with hotel travelers accounting for the largest segment.
Hotels located in proximity to transportation centers have been a popular
choice. All of the above news comes in the form of silver linings as it
provides a window to the Indian hotel sector for future viewing, as it
makes reference to COVID-19 related travel restrictions and cancellations.
Our industry has taken several precautionary measures to minimize the
immediate impact. However, we must ensure in advance that hotels must

38
now continue their efforts to adapt to the rapidly changing business
environment

39
 CHAPTER 6

SUGGESTIONS AND CONCLUSIONS

SUGGESTIONS

1. Using Virtual Tech: The hospitality business is a place where people

are almost always in touch or in close quarters to customers and
colleagues, at almost all times. In a situation like this, where there is mass-
panic about the spread of the virus, going virtual for a number of things
seems like the best idea.
Hotels can get into cloud technology for a better Property Management
System. This will help them control the operations from everywhere.
Cloud will also help with the mobile concierge system, hassle-free food
orders, and contactless meal delivery. Cloud will also take several jobs to
remote operations, like sales, business development, digital marketing,
eCommerce, and Digital Marketing.

2. Target the Millenials: In a time like this, the faction of society that
wants to get back to normal the most is the millennial population of the
country. Yes, the pandemic has scared them of the outcome as well;
however, their eagerness to experience unique adventures around the
world can be a deciding factor in attracting them. Soon enough, the
millennial generation with disposable income will become the backbone
of the hospitality industry.

3. Maintain and Renovate, if need be: The lockdown and the pandemic

do not mean that the hotels will just close their doors and will only open
when the restrictions are lifted. If anything, this is probably the best time
for catching up on all the property improvement plans you had before the
pandemic even struck.
You can order repairs, maintenance, and complete changes of obsolete
features in the hotel. Everything from the carpet to the pool should be
maintained and cleaned.

4. Smart Water Systems: Given the present conditions of water scarcity,

conserving water is a necessity. With the use of modern techniques
available, architects can install smart water systems that can conserve
water in commercial as well as residential buildings. With the use of smart
water systems, architects can not only conserve water but also make its
reuse possible.

5. Reconsider Current Health and Safety Protocols, Policies, and

Procedures: In a time like this, people will be trusting you with their

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lives. This may mean that you will be needing to reconsider a lot of things.
The most important in this is the safety protocols that the hotel will follow
to ensure there are no chances of harm to the health of the guests.
There are strict guidelines issued by authorities, and if you don’t conform
to them, it will soon be time to reconsider your policies and procedures.

6. Stay Up-To-Date and Ensure You Deliver the Same Accuracy in

Information: Staying up-to-date with the condition is the best way to stay
away from the adverse effects that it may have on you. Also, ensuring that
you deliver this information accurately to your clients or prospective
customers will also bring a trust factor to your brand, further helping you
in recovering from the lockdown after-effects.

CONCLUSION

The accommodation sector, and the hotel sector in particular, encompasses

multiple business models and employs hundreds of thousands of
Canadians. A smaller, but important growing segment in BC is that of
camping and RV accommodators.

As broader societal trends continue and morph, they will continue to

impact the accommodations marketplace and consumer. Owners and
operators must stay abreast of these trends, continually altering their
business models and services to remain relevant and competitive.

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 BIBLIOGRAPHY

INTERNET-

www.surrey.ac.uk

www.deloitte.com

www.ibef.org

www.tourismconference.com

www.journals.elsevier.com

www.investopedia.com

www.corporatefinanceinstitute.com

www.britannica.com

www.google.com

www.poornima.edu.in

www.journals.plos.org

www.researchgate.net

www.emerald.com

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