Chapter 1

History Of Hotel Industry

The Hotel industry comprises a major part of the Tourism industry. Historically viewed as an industry providing a luxury service valuable to the economy only as a foreign exchange earner, the industry today contributes directly to employment (directly employing around 0.15 million people), and indirectly facilitates tourism and commerce. Prior to the 1980s, the hotel industry was a slow-growing industry, consisting primarily of relatively static, single-hotel companies. However, the Asiad, held in New Delhi in 1982, and the subsequent partial liberalization of the Indian economy generated tourism interest in India, with significant benefits accruing to the hotel and tourism sector, in terms of improved demand patterns. Before 1760 people used to go inns for having lunch, dinner etc.it was the palace where families used to host their guest inns owner used to provide lodging and boarding facility services too their guest.

To word

hotel was used then it was called hoteliers which

means head of unit or the palace. Hotels are amongst the most visible and important aspects of a country's infrastructure. Hotel industry is a closely linked one to the tourism industry. A number of factors like promotion of tourism and rapid industrial progress have given a boost to hoteliering. The recent liberalizations of trade and opening up of economy will further lead to revolutionary growth in this sector. The hotel industry is a mature industry marked by intense competition. Market share increases typically comes at a competitors expense. Industry-wide, most growth occurs in the international, rather than the domestic, arena. Prior to the 1980s, the Indian hotel industry was a nascent and slow growing industry primarily consisting of relatively static, single hotel companies. However, Asian games in 1982 and the subsequent partial liberalization of the Indian economy generated tourism interest in India with significant benefits accruing to the hotel and tourism sector in terms of improved demand patterns. Fortunes of the hotel industry are tied to the fortunes of tourism and the general business

climate in the country, which is why the economic liberalization initiatives implemented since 1991, led to a soaring demand and supply gap in the hotel industry.

INTRODUCTION TO THE HOTEL INDUSTRY Hotels today are a Home away from home.
One of the fastest growing sectors of the economy of our time is the hotel industry. The hotel industry is a multi-billion dollar and growing enterprise. It is exciting, never boring and offer unlimited opportunities. The hotel industry is diverse enough for people to work in different areas of interested still be employed within the hotel industry. This is not in India but also globally. Modern hotels provide refined services to their guests. Hotel Industry is service Provider Company. The scope of hotel industry is so wide. Hotel industry is fastest growing and the second largest industry of the world and has tremendous potentialities for earning foreign exchange yielding tax revenue, providing employment, promoting the growth and development of the industry. Hotels considered to be a place where tourist stops, cease to be travelers and become customers. The first catered to travelers and provided them with a mere roof to stay under. This condition of the 3

inns prevailed for a long time, until the industrial revolution in England, which brought about new ideas and progress in the business at inn keeping. The invention of the steam engine made traveling even more prominent. Which had to more and more people traveling not only for business but also for leisure reasons.

This lead to the actual development of the hotel industry as we know it today. Hotel today not only cater to the basic needs of the guest like food and shelter provide much more than that, like personalized services etc.

The customers or guests are always right. This principle necessitated application of management principles in the hotel industry and the hotel professionals realized the instrumentality of marketing principles in managing the hotel industry. The concept of total quality management is found getting an important place in the marketing management of hotels. The emerging positive trend in the tourism industry indicates that hotel industry is like a reservoir from where the foreign exchange flows. This naturally draws our attention on hotel management. Like other industries, the hotel industry also needs to 4

explore avenues for innovation, so that a fair blending of core and peripheral services is made possible. It is not to be forgotten that the leading hotel companies of the world have been intensifying research to enrich their peripheral services with the motto of adding additional attractions to their service mix. It is against this background that we find the service mix more flexible in nature. The recruitment and training programmes are required to be developed in the face of technological sophistication. The leading hotel companies have been found promoting an ongoing training programme so that the personnel come to know about the use of sophisticated communication technologies. The hotel industry in India is a mature industry marked by intense competition, where an increase in market share typically comes at a competitors price. The Indian hotel industry is on a roll. At present this industry has a supply of 1, 25,000 rooms in India. The data available with the World Travel and Tourism Council, India, indicates that India ranks 18th in business travel, and should rank among the top 5 within this decade. It is estimated that demand is going to exceed supply by at least 100 per cent over the next two years. With such demand-supply disparity, room rates in Indian hotels are likely to rise by 25 per cent annually, with occupancy rates rising to 80 per cent, over the next two years. With the commonwealth Games 2010 around the corner in the country, there is a huge demand for rooms in the national capital. India ranks first with regards to tourism fair 5

attendance. Despite short and medium terms set backs, tourism revenues are expected to rise by 42 per cent between 2007 and 2017. The medical tourism in India also does not lag behind. The country today ranks second in medical tourism because of its highly advanced treatment technologies wooing a large number of patients from various countries.

Indias share in international tourism and the hospitality market is expected to increase over the long term. New budget and star hotels are being set up in the country. Many foreign hospitality players are heading towards Indian markets. The hotel industry in India is going through an interesting phase. One of the major reasons for the increase in demand for hotel rooms in the country is the high growth in sectors like information technology, telecom, retail and real estate. The growth of the tourism industry has also added fillip to the hotel industry. In recent years the government has taken several steps to boost travel and tourism, which have benefited the hotel industry the most. The Concept At the outset, we go through the concept of hotel. The common 6

law says that hotel is a place where all who conduct, themselves properly and who being able and ready to pay for their entertainment,

accommodation and other services including the boarding like a temporary home. It is home away from home where all the modern amenities and facilities are available on a payment basis

Scope of the report

At the backdrop of such a conducive business atmosphere 'Pre-feasibility Report on Five-star Hotel Industry' attempts to examine such critical factors which will provide vital inputs in general to the potential investors and estimation of commercial viability of such an investment. - It presents the market analysis of Indian hotel industry in terms of structure& segmentation ,market size, major hotels etc. - It analyses the steps involved in setting up a hotel describing the technical aspects in terms of location details and land requirement.

- It assess the manpower planning and financial estimate involved in setting up a hotel. - Brings an insight into the procedure for setting up a hotel, type of machinery & floors space required, requirement of regulatory permissions & clearances. -Analysis of porters five forces and SWOT of the industry.

FEATURES OF HOTEL INDUSTRY:The hotel industry consists of companies within the food services, accommodations, recreation, and entertainment sectors. The

hospitality industry is a several billion dollar industry that mostly depends on the availability of leisure time and disposable income. A hospitality unit such as a restaurant, hotel, or even an amusement park consists of multiple groups such as facility maintenance, direct operations (servers, 8

housekeepers, porters, kitchen workers, bartenders, etc.), management, marketing, and human resources. Usage rate is an important variable for the hospitality Industry. Just as a factory owner would wish to have his or her productive asset in use as much as possible (as opposed to having to pay fixed costs while the factory isn't producing), so do restaurants, hotels, and theme parks seek to maximize the number of customers they "process". In viewing various industries, "barriers to entry" by newcomers and competitive advantages between current players are very important. The question Very important is also the characteristics of the personnel working in direct contact with the customers. The authenticity,

professionalism, and actual concern for the happiness and well-being of the customers that is communicated by successful organizations is a clear competitive advantage This significant growth of the tourism industry is the direct result of changes in international consumer behaviors as well as economic prosperity and political stability within the region.

Historically, the supply of lodging facilities within the region has proved to be both inadequate in terms of product quality as well as insufficient in quantity for meeting the increasing levels of demand. These elements of supply and demand have created a favorable investment climate for development within 9

the region, resulting in a real estate boom in both tourism and residential development. The growth in residential real estate development has been primarily driven by foreign demand for vacation and retirement homes in both urban and resort destinations within the region. Investment and development has been further supported by the variety of financial incentives for investment in tourism projects offered by national

governments as well as the availability of local capital for the financing of large projects. The first goal is to find ways to operate the hotel according to the idea of a triple bottom line, which embodies profitable operation combined with attention to the people who use and work in the hotel and a focus on careful stewardship of resources. While that goal is important, even more vital is to use the hotels position as an industry leader in the nations capital to demonstrate to the hotel industry , customers, and vendors that sustainable operation is the best strategy to ensure successful hotel operation. The sustainability initiative goes beyond such well-known ideas as reusing guest linens, recycling waste materials, and changing to compact fluorescent lamps.

Hotel The Concept At the outset, we go through the concept of hotel. The common law says that hotel is a place where all who 10

conduct, themselves properly and who being able and ready to pay for their entertainment, accommodation and other services including the boarding like a temporary home. It is home away from home where all the modern amenities and facilities are available on a payment basis. It is also considered to be a place where tourist stops, cease to be travelers and become customers. The hotel may furnish quarters and facilities for assemblage of people for social business or entertainment purposes and may engage in retaining portion of its premises for shops and businesses whose continuity (i.e., proximity) is deemed appropriate to a hotel . The assemblage of people for social business and entertainment purposes makes it essential that hotels are also furnished with a big conference hall where the maximum possible accommodation is available. We also call it the function room. Motel The Concept Initially the term motel was meant for local motorists and foreign tourists traveling by road. They serve the needs and requirements of these travelers and meeting their demand for transit and accommodation. Some of the important services offered by the motels are parking, garage facilities, accommodation, and restaurant facilities. Motels are found located outside the city, preferably by the side of high ways and important road junctions. Estimates abound as to the importance and size of house keeping. Certainly, its economic contribution is critical to the global economy 11

whether as a service to the business community. Background of hotel Industry Prior to the 1980s, the Indian hotel industry was a nascent and slow growing industry primarily consisting of relatively static, single hotel companies. However, Asian games in 1982 and the subsequent partial liberalization of the Indian economy generated tourism interest in

India with significant benefits accruing to the hotel and tourism sector in terms of improved demand patterns which is why the economic liberalization initiatives implemented since 1991, led to a soaring demand and supply gap in the hotel industry.

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GROWTH OF HOTEL INDUSTRIES The hotel industry in India is going through an interesting phase. One of the major reasons for the increase in demand for hotel rooms in the country is the boom in the overall economy and high growth in sectors like information technology, telecom, retail and real estate. Rising stock market and new business opportunities are also attracting hordes of foreign investors and international corporate travelers to look for business opportunities in the country. Hotel industry is also inextricably linked to the tourism industry and its growth has added fillip to the hotel industry. And with Conde Nast Traveler ranking India as the fourth most preferred travel destination and Lonely Planet selecting the country among the top five destinations from 167 countries, India has finally made its mark on the world travel map. The arrival of low cost airlines and the associated price wars have given domestic tourists a host of options. The opening up of the aviation industry in India has led the way for exciting opportunities for the hotel industry as it relies on airlines to transport 80% of international arrivals. Moreover, the governments decision to substantially upgrade 28 regional airports in smaller towns and privatization and expansion of Delhi and Mumbai airport will improve the business prospects of hotel industry in India. 13

Substantial investment in tourism infrastructure is essential for Indian hotel industry to achieve its potential.

The upgrading of national highway connecting various parts of India has opened new avenues for the development of budget hotels here. The Government of Indias Incredible India destination campaign and the Atithi Devo Bhavah campaign have also helped the growth of domestic and international tourism and consequently the hotel industry. In recent years the government has taken several steps to boost travel and tourism, which have benefited the hotel industry in the country. These include the abolishment of the inland air travel tax by 15%, reduction in excise duty on aviation turbine fuel to 8% and removal of a number of restrictions in excise on outbound chartered flights including those relating to frequency and size of aircraft. The governments decision to treat convention centers as part of core infrastructure has also fuelled the demand for hotel rooms. There are some 1,980 hotels approved and classified by the Ministry of Tourism, Government of India, with a total capacity of about 110,000 hotel rooms. Revenues of the hotel and restaurant industry in India during the financial.

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DIFFERENT DEPARTMENTS IN HOTELS

The departments are classified on accounts of it function. They are as follows:- There are many opportunities to be creative: - Hotels and restaurants managers might design new products to meet their needs of their guests; produce training programs for employees; or implement challenging advertising, sales promotions and marketing plans. The work is varied: - Because hotels and restaurants are complete production, distribution and service units, and managers are involved in a broad array of activities. The industry offers more career options than most: - No matter what kind of work we enjoy and wherever our aptitudes lie, there is a segment of the industry that can use ours talents. industry are as follows. &D) Department:- F & B deals mainly with food and beverage service allied activities. Different divisions are there in F & Housekeeping Department:-

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The housekeeping department is another important department in hospitality world. Housekeeping is responsible for cleaning the hotels.

Front Office 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 like Restaurants, Speciality Restaurants, Coffee Shop (24 hrs.), Bar, Banquets, Room service etc. Apart from that they have Utility services (Cleaning). Hotels guestrooms and public areas. This department has the largest staff, consisting of an assistant housekeeper, room inspectors, room attendants, a horseperson crew, linen room attendants and personnel in charge of employee uniforms. They may also have their own laundry and valet service. Hotels with laundry and valet equipment may use it only for hotel.

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Food Production Department:- Food production deals with

the preparations of food items. It basically engaged in preparing those dish, which are ordered by the guest and afterwards is catered by the uniforms and send guest clothing to an outside service where it can be handled with specialized equipment & Marketing.

Support Department (Cost Centers) department. Cuisine

like Indian, Continental, Thai, Italian, Konkani (Coastal Sea Food), South Indian, Chinese, Mexican, etc. Different Chefs are appointed for the specialty cuisine.

Selling Department:- Sales and marketing has become one of

the most vital functions of the hotel business and an integral part of modern hotel management. It includes packaging for selling, sales promotion, advertising and public relations. The marketing division is charged with the responsibility of keeping the rooms in the hotel.

Engineering and Maintenance Department:- The energy

crisis throughout the world has given a great importance to the engineering department of occupied at the right price and with the right mix of guests hotel. This department provides on the day-to- day basis the utility services, electricity, hot water, steams, airconditioning and other services and is responsible for repair and 17

maintenance of the equipment, furniture and fixtures in the hotel. The engineering department has an important role in satisfying the guestdemand and helping to maintain the profit level of the hotel . The cleaning, up-keep, repair, replacement, installation and maintenance Finance, Accounting and Control Department of property and its

furnishing, machinery and equipment are the joint responsibilities of Engineering/Maintenance and the Housekeeping Department.

Hotels accounting department is responsible for keeping track of the many business transactions that occur in the hotel Safety and Security Department. The accounting department does more than simply keep the booksfinancial management is perhaps a more appropriate description of what the accounting department does. Whereas the control department is concern with cost control guidelines by way of reducing in investment, reduction in operating cost, control of food service costs, control of beverage costs, labour cost control, etc. hotel itself is an overriding concern for todays hoteliers. In the past, most security precautions concentrated on the prevention of theft from guests and the hotel Administration Department:- Top organizational members usually supervise the Administration Department in a. However, today such violent crimes as murder and rape have become a problem for some hotels. 18

Unfortunately, crime rates in most majors cities are rising. Hence today security department also concentrate on these additional criminal activities too hotel .This department is responsible for all the work connected with administration, personnel, manpower,

employees welfare, medical, health as follows

Classification of hotels
Hotels can be classified into different categories or classes, based on their operational criteria. For example the type of accommodation they provide, location of the property, type of services provided, facilities given and the clientele they cater to can help categories hotels today. Hotels today are basically classified into the following categories: 1 Market segment: 19

(1) Based on Star category of hotels [India]

One Star Hotels:The hotels with most basic facilities, small number of rooms locations in the far-flung areas are grouped under One Star concept of HR is absent. hotel category. These hotels are best when customer is looking for cheapest available accommodation option. In this type of hotel Floating Hotels The floating hotels are located on the water surface. The places are sea, river, and lake. These hotels provide with all the facilities and services made available in a good manner. Two Star Hotels: These hotels are most available in the small cities and in particular areas of larger cities. Catering to the backpacker tourist traffic, these hotels provide all the basic facilities needed for general accommodation and offers lowest prices. In this type of concept of HR may or may not be present. If present all functions of HRD is curtailed.

Three star hotels:For a hotel to be recognized as a three star property the architectural features and general features of the building should be very good there should be adequate parking facilities. At least 50% of the rooms must be air-conditioned. Also the ambience and decor of the place must be ecstatic. They should provide 20

reservation

and

information

facility

apart

from

reception,

information, bell service at least two gourmet dining facility should be available. The establishment may or may not have banqueting facility. They should provide high levels of personalized services. The staff must be well trained and proper standards for hygiene and sanitation must be followed. Also all properties have to keep in mind that proper waste management is done. Four Star Hotels: A rung below five star hotels are Four Star Hotels, these hotels provide all the modern amenities to the travelers with a limited budget. Quality of services is almost as high as the five stars and above categories . These kinds of hotels are there for the travelers with limited budget or for the places which might not get the tourist traffic associated with larger cities. In such type of HR department are established separately and to execute and to follow the concept of HR strictly, HR professional are hired hotels.

Five star hotels: -

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Five star category is only allotted to properties, which have all the qualities of a three star property and a few additional. Like the entire property must be centrally air-conditioned. The building of the property must be an attractive one. All the rooms must be spacious. The property must have proper banqueting facility, business center. Proper and well-maintained pool and health club a spa is optional. The property must have 24 hour coffee shop, round the clock room service, a bar, and a minimum of 1 gourmet restaurant. The staff must be highly trained and a degree of specialization must be shown. State of art Equipments must be used and the facility provided in the rooms must be sophisticated. Five star deluxe : They are more or less like five star properties with the only difference is that they are on a larger scale. Five star deluxe properties maintain a very high staff to guest ratio and very high levels of service is maintained. They in addition to five star properties have 5 to 7 dining rooms, a bar, 24-hour coffee shop, banqueting facility. Spas, fitness centers, business centers.

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(2)

Based on location:-

City center: Generally located in the heart of city within a short distance from business center, shopping arcade. Rates are normally high due to their location advantages. They have high traffic on weekdays and the occupancy is generally high. Example: Taj Hari at jodhpur. Motels: They are located primarily on highways, they provide lodging to highway travelers and also provide ample parking space. The length of stay is usually overnight. Suburban hotels: They are located in suburban areas, it generally have high traffic on weekend. It is ideal for budget travelers. In this type of hotel rates are moderately low. Airport Hotels:These are located near airports and are a conveniently located to provide any level of service from just a clean room to room service and they may provide bus or limousine service to the air lines. They have transit guest who stay over between flights.

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Resort Hotels:They are also termed as health resort or beach hill resort and so depending on their position and location. They cater a person who wants to relax, enjoy themselves at hill station. Most resort work to full capacity during peak season. Sales and revenue fluctuate from season to season. These are the planned destination of guests, usually vacationers. This is because resorts are located at the ocean or in the mountains away from inner cities. Resort hotels may offer any form of entertainment to keep their guests happy and busy Floating hotels:As name implies these hotels are established on luxury liners or ship. It is located on river, sea or big lakes. In cruise ships, rooms are generally small and all furniture is fixed down. It has long stay guest. Boatels: A house boat hotels is referred as boatels. The shikaras of Kashmir and kettuvallam of kerala are houseboats in India which offers luxurious accommodation to travelers. 24

Rotels: These novel variants are hotel on wheel. Our very own "palace on wheels" and "Deccan Odessey" are trains providing a luxurious hotel atmosphere.

(3) Based on Size of Property

The main yardstick for the categorization of hotel is by size the number of rooms available in the hotel. Small Hotel :Hotel with 100 rooms and less may be termed as small hotels. Medium sized hotel: hotel which has 100-300 rooms is known as medium sized hotel . Large hotels:Hotel which have more than 300 rooms are termed as large hotels. Mega hotels: are those hotels with more than 1000 rooms. Chain hotels: these are the groups that have hotels in much number of locations in India and international venues.

(4) Based on the Level of Service

Hotels may be classified into economy, and luxury hotels on the basis of the level of service they offer. 25

Budget Hotels They provide a limited service and are known for clean rooms at low prices meeting just the basic needs of travelers. These hotels meet the basic need of the guest by providing comfortable and clean room for a comfortable stay Mid market hotels: It is suite hotel that offers small living room with appropriate furniture and small bed room with king sized bed. They offer comfortable accommodation with private on premises bath. Food and beverage services and uniformed bell staff. They offer above average luxury. All Suite hotels: It offers separate sleeping and living areas along with a kitchenette and a stocked bar, and offer class service. First class hotels: They are luxury hotels with exceptional decor better than average food and beverage service, uniformed bell services. They often have 2 or 3 dining rooms, swimming pool, spas etc Luxury hotels:These offer world class service providing restaurant and lounges, concierge service, meeting rooms, dinning facilities. Bath linen is provided to the guest and is replaced accordingly. These guest rooms contains furnishing, artwork etc. prime market for these hotels are celebrities, business executives and high ranking political figures. Example: Hotel umaid bhawan palace jodhpur.

(5) Based on the Length of Stay

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Hotel can be classified into transient, residential and semi residential hotels depending on the stay of a guest. Transient Hotel: These are the Hotel where guest stays for a day or even less, they are usually five star hotels. The occupancy rate is usually very high. These hotels are situated near airport. Residential Hotels :- It used to be very popular. The typical residential hotel offers long term accommodations. These are the Hotel where guest can stay for a minimum period of one month and up to a year. The rent can be paid on monthly or quarterly basis. They provide sitting room, bed room and kitchenette.

Semi residential hotels: These hotels incorporate features of both transient and residential Hotel.

(6) Based on Theme

Depending on theme hotel may be classified into Heritage hotels, Ecotels, Boutique hotels and Spas. Heritage Hotels : Heritage hotels in India are best if one is looking for sheer elegance, luxury and loyal treatment. They are not just another accommodation options but tourist attractions in themselves. Exquisitely designed and decorated, meticulously preserved, high standards of service and ethnic cultural motifs helps the tourists get the complete experience of enjoying pleaser. In this 27

Hotel a guest is graciously welcomed, offered room that have their own history, serve traditional cuisine and are entertained by folk artist. These hotels put their best efforts to give the glimpse of their region. Example: Jai Mahal palace in Jaipur. Boutique hotels:This hotel provides exceptional accommodation, furniture in a themed and stylish manner and caters to corporate travelers. Example: In India the park Bangalore is a boutique hotel. Spas: -is a resort which provide therapeutic bath and massage along with other features of luxury hotels in India Ananda spa in Himalaya are the most popular Spa.

(7)

Based on Target Market

Commercial Hotels:They are situated in the heart of the city in busy commercial areas so as to get good and high business. They cater mostly businessmen. cater mainly to business clients and usually offer room service, coffee-shop, dining room, cocktail lounge, laundry and valet service as well as access to computers and fax services. Convention hotels:28

These hotels have large convention complex and cater to people attending a convention, conference Example: Le meridien, Cochin, is a hotel with largest convention center in south India. Resort hotels:These leisure hotels are mainly for vacationers who want to relax and enjoy with their family. The occupancy varies as per season. The atmosphere is more relaxed. These are spread out in vast areas so many resorts have solar powered carts for the transport of guest. Suite hotels:These hotel offer rooms that may include compact kitchenette. They cater to people who are relocating act as like lawyers, executives who are away from home for a long business stay.

These are hotels, which offer spacious layout and design. Business people like the setting which provides space to work and entertain separate from the bedroom. Casino hotels:- Hotel with predominantly gambling facilities comes under this category, they have guest room and food and operation too. These hotels tend to cater leisure and vacation travelers. Gambling activities at some casino hotels operate 24 hours a day and 365 days

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Government Approved Hotels :These are the hotels, which might not have applied for star categorization or small enough to find them in the list. Many of the wildlife resorts, lodges and hostels are government approved providing a minimum level of

accommodation facilities at far off places.

Independent hotels: They have no application with other properties. They have their own management and are single properties with one owner. Chain hotels: They impose certain minimum standards, levels of service, policies and procedures to be followed by their entire establishment. Chain hotels usually have corporate offices that monitor all their properties and one management runs these properties. That is all the hotels under the chain are completely owned and run by the chain itself.

MARKETING MIX:Services and product offered by hotels

Room bookings Eva, business, executives, disabled Butler service WiFi internet SPA & Swimming pool Meeting rooms/ Conference rooms/ Board rooms Restaurants & Bars Meetings and Events/ Luxury events 30

The restaurants are also divided into such categories

Marketing mix Promotion

Promotion through FMCG goods Internet Media reports and media releases Concept promotion Customers Social service projects Travel assistants hotels directories.

Marketing mix People

Receptionists. Bell boys. Laundry . Servicemen. Butlers Room service. Chauffeurs Managers Cleaners Assistants for guests Chefs Waiters etc.

Marketing mix Place

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Strategic Locations Metropolitan cities Business hubs Tourist places Heritage areas Upcoming areas.

Service quality: Hospitality treatment of guests . Material attributes food, toiletries, complimentary goods etc. Time management efficiency in service . Communication. Presentation.

Consumer behavior and perception: Behavior(Why customers go?) Disposable money 32

 Class/ Status Luxury expectations References received Personal liking Feel good factor. Rise in social status. Hygiene.

Chapter -2 Introduction to the Organization

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HOTEL THE UMMED BHAWAN PALACE

Hotel Chain : Taj Hotels Five Star DeluxeHeritageHotel BhawanPalace Jodhpur Rooms : 64

Introduction:Umaid Bhawan Palace, an impressive and magnificent golden-yellow sandstone edifice in the heart of Jodhpur, stamps a commanding presence. Set amidst 26 acres of lush gardens, the Art Deco style palace was the last of India's great palaces and was one of the largest private residences in the world.

A part of the palace is still the residence of the royal family and another section houses a museum displaying a range of antiques from Jodhpur's 34

royal past. Designed by the renowned Edwardian architect Henry Lanchester and embellished with exotic murals of the self-exiled Polish artist Stefan Norblin, the palace is a blend of Eastern and Western architectural influences. The luxurious bathtubs, swimming pool, murals and gardens add to its beauty to its majestic architecture. Among the finest palace hotels in the world, Umaid Bhawan Palace.

Restaurant & Bar The Trophy Bar: Embellished with hunting trophies and memorabilia, recalls a royal lifestyle of times past. The bar serves finger food, snacks, cocktails, spirits, wines, beers and other beverages. Open from 11:00 am 3:00 pm; 6:00 pm 11:00pm.

Risala: The elegant a la carte restaurant evokes the gallantry of the Jodhpur Lancers with its beautiful royal and martial portraits. It serves a delectable fusion menu of Continental and Indian specialties complemented by a wide selection of fine wines. Lunch 1:00 - 3:00pm, Dinner 7:30 -11:00 pm

The Pillars: The inviting all day dining restaurant with a spectacular view of the gardens, the city and the magnificent Mehrangarh Fort, offers a wide selection of pre-plated meals, snacks, Rajasthani delicacies, major meals and tea time delicacies. The palace-hotel has several excellent venues for private dining, romantic evenings as well as theme dinners.

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Room Facilities The Deluxe Rooms, embellished with Art Deco interiors and equipped with modern conveniences, are a blend of princely charm and contemporary comforts. The Regal Suites, tastefully appointed and lavishly spread, are the erstwhile residences of visiting royalty. Each suite has its own unique theme and all have a different colour scheme from pastels to rich, deep tones. The Royal Suites, two elegant and luxurious erstwhile royal residences of Maharaja Umaid Singh and his queen, are distinct in their style, dcor and layout Whether we are on our business tour or holiday, the Ummed Hotel Jodhpur is an idyllic place to explore the Blue City. Ummed hotel is an 80roomed hotel. All rooms and suites are fitted with contemporary facilities to make you feel like at home. Every room has centralized air-conditioning, safe deposit, tea / coffee maker and direct dialing facility. If you desire to stay amidst the ultimate luxury, you may choose to stay in the lavishly furnished hotel suite. Other Facilities & Services:Business Centre, Business Facilities, Car Rentals, Currency Exchange, Driver Dormitory, Express Check in Check out, Facilities For the Physically Challenged, Health Club - Taj Spa, Sauna, Hotel Safe, Internet/E-mail/Fax

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Facilities, Interpreter Services - on request, Laundry & Dry Cleaning Services, Palace Museum, Luggage Storage-upon space availability, Medical Services - Doctor on Call, common medicines available, Parking, Sim card on hire, Postal/Parcel Services, Room Service - 24 Hrs, Security Escorts - available on request, Shops, Travel Desk -Ticketing, Tours Recreation: Billiards, Croquet, Golf on request, Horse Riding on request, Polo on request, Squash, Swimming - Indoor Pool, Swimming -Kiddies Pool - in the shallow end of main pool, Tennis.

Room Type Palace Room Historical Suite Royal Suite Check out time

Plan EP EP EP 12 Noon

Double Occupancy 40000 83000 140000

Rates are inclusive of applicable taxes. Rates may change during the fairs & festivals time. Rates are in Indian Rupees.

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HOTELTAJ HARI MAHAL

Hotel Chain: IHCl Five star hotel

Introduction:The Indian Hotels Company Limited (IHCL) and its subsidiaries are collectively known as Taj Hotels.

Taj Values
PEOPLE DIVERSITY, INTEGRITY & RESPECT PASSION FOR EXCELLENCE EXCEED EXPECTATIONS INNOVATION SENSE OF URGENCY & ACCOUNTABILITY SOCIAL RESPONSIBILITY JOY AT WORK People are our greatest asset and the key to our success. 38

 We respect diversity of people, ideas, cultures and honor the value of individuals in a team. We believe in perfection to achieve excellence. We continuously improve processes to surpass global benchmarks. We succeed by exceeding expectations of all stakeholders and protecting the interest of our shareholders and playing by the rules. We encourage innovation, embrace change and support growth through knowledge and learning. We accept responsibility and deliver on promises with a sense of urgency and agility. We commit to improve the quality of life of the communities we serve and our concern for the environment by returning to society what we earn. We recognize and respect each other in all interactions and set the example for our guests, business associates and colleagues. We encourage a fair environment that supports equal opportunity to attract, develop and retain the best talent and endeavor to have fun too. Good Earth - It is a perfect place to relish authentic Chinese food. Taj hari Hotels Resorts and Palaces presents EARTH (Environment Awareness & Renewal at Taj Hotels), a project which reiterates the conscious effort of one of Asias largest and finest group of hotels to commit to energy conservation

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and environmental management. TAJ focuses on class leadership rather than on cost leadership. They believe in giving value to the customers.

Even the customers are not bothered about the price because they receive desired value and services. They provide unique features to the customers both- tangible and intangible The Courtyard - Along with a European charm, the Courtyard in this 5 star deluxe Jodhpur hotel offers delicious Mediterranean food. Barbeque - This specialty restaurant is a seasonal restaurant that serves finger licking grills and kebabs (October to March). Verandah Caf - This caf serves a wide variety of world flavors and is an extension of Marwar Restaurant. The Bar - It is an ideal place where you can pep up your spirits. Conference and Banquet facilities This 5 star deluxe Jodhpur hotel comes with 5 spacious meeting rooms. Business guests can avail innovative business services to make their trips lucrative. Beside meeting venues, the hotel has a well-equipped business center where you can get connected with your business and clients. 40

Recreation : A spectacular array of recreational facilities at Taj Hari Hotel Jodhpur will instantly kick your blues away. The hotel has a swimming pool, health club and Jacuzzi. Enjoy playing cricket, croquet, dart, table tennis and pool polo while staying here. Besides, guests can also enjoy cultural performances and sightseeing tour of the city. Special services/Facilities:

Currency Exchange Fax Pool Parking Wake up Service

On-Site Services Laundry/ Valet * 24 hr room service * Safe Deposit Box * telephone -STD/ISD * Parking * Wake Up Calls * Postal Service * Luggage Storage. Business ServicesAudio-Visual Equipment * Catering * Computer Modem Hookups * Copy Center * Copy Service * Fax Machine * Fax Service

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General Information:-Hotel Location: Taj Hari Mahal is strategically located close to the city center. Nearby Attractions: Referred as the 'Blue City', Jodhpur is a fabulous tourist destination of Rajasthan. Founded in 1459 A.D., Jodhpur is located on the outskirts of Thar Desert. Jodhpur is dotted with numerous palaces, forts and temples. Tourist attractions in Jodhpur are delight to all eyes. Besides temples, palaces and forts, tourists can also go for excursions from Jodhpur such as tourist places.

HOTEL PARK PLAZA

Hotel Chain : Sarovar Hotels Five star Hotel Jhalamand Road 42

Rooms : 45 Introduction:Park Plaza Jodhpur is a state-of-the-art business boutique hotel, ideally located in the heart of the city, in close proximity to the market. This luxurious 5 Star hotel is five minutes from the Airport and fifteen minutes from the Railway Station.

The Hotel Park Plaza is vibrant and contemporarily designed, and the interiors include a collection of thoughtfully sourced art pieces and artefacts. Park Plaza has 45 guest rooms and suites, all elegantly designed and offering the latest amenities and facilities.

Restaurant & Bar:Oasis: The Coffee Shop.Gardenia: The poolside restaurant provides a choice of cuisines on a-la-carte basis..Geoffreys: Offers the connoisseurs a choice of exotic cocktails drinks and coolers. Room Facilities:24-hour Room & Valet service, Wi-Fi, Hair dryer, Mini bar, In room Safe Deposit Vault, Satellite Cable TV, Tea / Coffee maker, Bathroom with telephones. Other Facilities & Services:-

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Banquet & Conference Facilities, Swimming Pool, Health Club, Concierge, Currency Exchange, Travel Desk, 24-hours Fax / E-mail, Doctor on Call, WiFi Connectivity.

HOTEL MAPPLE ABHAY

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Hotel Chain : None Four Star Hotel Hotel Mapple Abhay Paota Circle, Paota, Jodhpur Rooms : 72

Introduction:Mapple Abhay, Jodhpur offers a perfect setting to experience the rich culture and traditions of Rajasthan. You will cherish the royal warmth, hospitality and service for a long time. Mapple Abhay, Jodhpur is a 72 room friendly, relaxed and charming hotel in the heart of the Sun City Jodhpur. Minutes away from the Umaid Bhavan Palace and Mehrangarh Fort the guests are a handshake away from the magical past.

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The Rajput chivalry and valour and the vibrant hues of history come alive in the red sandstone city.we take home more than pictures as the Jodhpur experience is offered on a platter. As our eyes soak in the grandeur you can almost hear the victory bugle and Mapple Abhay lets you 'just be yourself' at the centre stage.

Restaurant & Bar :Elements: Elements, the unique multicuisine restaurant also offers special Rajasthani creations like the spicy Lal Maas, delectable Gatte Ki Sabji and Dal Bati that tantalize the taste buds of the most discerning gastronomes.

The Royal Peg: It offers the widest range of exotic Cocktails. The resident mycologist serves them with panache and you can sip them in style.

Room Facilities:Elegantly appointed centrally air conditioned rooms, Tea coffee maker in all rooms, An Electronic Safe, Well stocked Mini bar, Executive worktable, Point to point lighting in the rooms, 24 hours hot & cold water supply, Direct dial telephones, 24 hours Satellite TV.

Other Facilities & Services:Doctor on call, Conference Halls, Laundry service, Shopping arcade, Swimming Pool, Travel desk, Foreign currency exchange. 46

HOTEL SHRI RAM EXCELLENCY

Hotel Chain : None Economy Hotel Residency Road Opp.Medical College jodhpur Rooms : 24 Introduction:Hotel shri Ram Excellency is one of the most popular hotel at jodhpur. one of the dream destinations in the world, which fascinates the tourists from across the globe. The Suncity and the cozy accommodation, a place away from home, is Hotel Shri Ram Excellency.

Hotel Shri Ram Excellency is a state of art business boutique, ideally located in the heart of the city, close to all major offices, banks and markets. hotel is 3 Km. from the airport and 2 Km. from the railway station and 10 minutes from the bus stand.

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With a firm belief in the age-old adage of "Atithi Devo Bhava" (Guest is God), Hotel Shri Ram Excellency has succeeded in creating a benchmark in the hospitality industry in a short period of time.

Restaurant and Bar:- Restaurant: Hotel Shri Ram Excellency's showcases delicacy with myriad different flavor, awakening your taste buds to gourmet cuisine of the orient serving food presented with aromatic spices that's cooked with perfection.

Bar: Not available. Room Facilities Hotel Shri Ram Excellency provides 24 spacious & well lit rooms including Executive, Super Deluxe and Presidential Suites full of coziness and comfort. Attached Toilet fitted with exclusive range of sanitary-wares, neat and tidy provides an atmosphere of freshness and warmth with the bath tub. Other Facilities & Services:Safe deposit vault. Car Hire. Doctor on call. Courtesy airport pickup & drop. Money changing. Major credit cards excepted. Direct dialing. Mini bar. Individual temperature control. Different color theme. 24 hour hot and cold water. Dental, shaving and medical kit and other important amenities.

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HOTEL RATAN VILAS

Introduction:Built in 1920, by Maharaj Ratan Singhji of Raoti, a royal from Jodhpur and one of the finest horsemen and polo players of his time, Ratan Vilas with its imposing yet delicately carved exterior and elegant interiors is a genuine heritage edifice in a sylvan setting.

The mansion, reminiscent of the romance of the bygone era, has been converted into a hotel by Maharaj Bharat Singh, the grandson and R.K. Brijraj Singh, the great grand son of Maharaj Ratan Singhji, with the exception that it still continues to be their residence as well. 49

So, whether you are in the drawing room amongst fascinating old photographs and family portraits or unwinding in the casual surroundings of the courtyard;

Whether you are savoring the traditional delicacies in the dining room or relaxing

in the garden under the soothing shade of a seasoned Neem tree; At Ratan Vilas you will soon find yourself getting accustomed to a lively atmosphere and the legendary Rajput hospitality. In a nutshell, Ratan Vilas as a place to stay will impress you as being cared for Heritage Hotel Ratan Vilas Jodhpur Hotel Overview

Stay at the heritage hotel Ratan Vilas in Jodhpur and experience regal pleasures in perfect style. Situated at a distance of 2 kilometers from the Jodhpur railway junction, heritage hotel Ratan Vilas is a tranquil holiday retreat replete with typical Jodhpur regal paraphernalia. Ratan Vilas was constructed in the year 1929 by Maharaja Ratan Singhji and is a treasure hoard of royal portraits, hunting trophies and other royal treasures. Rooms Furnished with Persian rugs, wooden furniture and artifacts, the rooms at heritage hotel Ratan Vilas offer warm plush holiday 50

sanctuaries. Every room is equipped with telephones, televisions and safety lockers among other things. Cuisine The multi-cuisine restaurant at heritage hotel Ratan Vilas offers a wide menu of Indian, Continental and regional delicacies that are prepared from fresh vegetables grown in the hotel's massive kitchen garden. Health Recreation Health and recreational facilities extended at the heritage hotel Ratan Vilas include a swimming pool, travel assistance, car rental, sightseeing tours, indoor games, jeep safaris, health spa, beautician on call etc.

HOTEL RAJPUTANA PALACE

Hotel Chain: None (Deluxe Hotel) Rajputana Palace,

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Panchbati,Circle,AirportRoad, Jodhpur Rooms : 48

Introduction

Hotel Rajputana Palace, welcoming the guest in a spacious double height marble lobby in bright and cheerful colours. Away from the hustle and bustle of the city this unique place is geared for the idyllic pursuit of happiness and is known for its traditional hospitality.

All rooms are luxuriously appointed with all modern amenities and a breath taking view of Mehrangarh Fort and Maharaja's Palace. Our hotel promises the tourist & business traveller alike a highly satisfying enjoyable and memorable stay.

TARIFF
Single Plan Occupancy Room Type Deluxe Room Super Deluxe Room Suite Extra Bed Check out time EP EP EP EP 12 Noon 1050 1700 5100 Occupancy 1700 2550 5100 400 Double

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Rates are inclusive of applicable taxes. Tariff may change during the fairs & festivals time.

Restaurant & Bar Toran: The in house "Toran Restaurant and open air garden restaurant provides you Indian, Continental, Chinese & Rajasthani Dishes prepared by highly skilled chefs.

Somras Bar: Somras serves the best of Indian liquor of different taste and variety with all major types of beer with traditional hospitality and personalized service. Room Facilities :Hotel Rajputana Palace offers you 24 super deluxe & 24 deluxe elegant & spacious rooms including 2 suites with wall to wall carpets and granite floor, attached bath and dressing with running hot & cold water, round the clock room service, television and direct dial telephone.

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HOTEL BALSAMAND LAKE PALACE

BasicFacts City,Jodhpur State,Rajasthan Location:-Mandore Road, Introduction Rooms 9 Palace suites and 26 rooms in the Balsamand Garden Retreat on the same property.

History:
Balsamand Lake Palace heritage hotel in Jodhpur is a very famous heritage mansion in North India. Balsamand Lake Palace exemplifies perfect traditional Rajputana architecture. The Balsamand Lake Palace heritage 54

hotel, built out of special Jodhpur red sandstone, was originally conceived as the summer resort of the Jodhpur royalty. The Balsamand Lake is an artificial reservoir, built in the 13th century, which provided drinking water to the city.

Accommodation:
Balsamand Lake Palace is surrounded by lush green and manicured gardens that add to the hotel's aesthetic attractiveness. The Balsamand Lake Palace heritage hotel offers 10 plush suites and 26 other rooms in the Balsamand Garden Retreat. The Balsamand Lake Palace is decorated in a royal fashion that pampers your imagination and concept of a royal home.

Dining:
The well laid open air mutlicuisine restaurant at Balsamand Lake Palace offers delectable dishes from Indian, Continental and Chinese cuisines. The palace hotel also has a coffee shop, lounge and bar.

Busines and Banquets:

You will get excellent Conference and banquet facilities at hotel

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Balsamand Lake Palace. The meeting rooms and boardrooms at Ajit Bhawan Palace are set with all necessary equipments.

Recreation and Other Facilities:

Swimming pool 24 hr room service

Horse carriage buggy ride Cycling/ jogging track Croquet . Obstacle golf Aroma and Ayurvedic health Spa Running hot and cold water Direct dialing telephones. Doctor on call TVs with cable channels Credit cards and money exchange

City Info:

Jodhpur, the beautiful tourists destination in Western India is also referred 56

as the Blue City, due to the indigo tinge of the whitewashed houses around the Mehrangarh Fort. The interiors of almost all the heritage houses in this place are complemented with antique and traditional furniture and medieval Rajasthani style tapestries and floor coverings.

HOTEL RANBANKA PALACE

State Location Rooms

Rajasthan Jodhpur, Rajasthan 58 rooms

Introduction
Overlooking the magnificent Mehrangarh Fort on the one side and gigantic 57

Umaid Bhawan on the other is the majestic Ranbanka Palace of Jodhpur. A perfect blend of the royal style and modern luxurious comforts, Ranbanka Palace boasts of providing a memorable stay and warm hospitality to its guests. One of the finest heritage hotels in the Jodhpur city, Ranbanka Palace is preferred equally by both holiday makers and business travelers.

History
Built for Maharaja Ajit Singhji, the younger brother of Maharaja Umaid Singh ji, Ranbanka Palace is a beautiful sandstone building that has now been converted into a heritage hotel.

Accommodation
Offering 58 well furnished and tastefully appointed rooms/suites, Ranbanka Palace provide you with a fabulous staying experience. The rooms in Ranbanka Palace are elegantly decorated with antique colonial furniture and have a warm and a cozy ambience. The rooms are categorized as deluxe and suites and are replete with modern comforts making the stay of its guests luxurious.

Dining
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With two fine restaurants to choose from, dining can be quite a memorable experience at Ranbanka Palace. Panchranga is a multicuisine buffet restaurant at Ranbanka that is beautifully decorated in the royal style and takes you to the bygone era. The restaurant is air conditioned and serves wide variety of cuisine from across the continents for its guests to relish and tickle their taste buds. Besides, Roof Top Restaurant at Ranbanka is ideal for Theme and Mashaal dinners. Trophy Bar is a well stocked bar at Ranbanka Palace.

Business and Banquets Providing state of the art business facilities, Ranbanka Palace is ideal for business travelers as well. The hotel also provides well facilitated business center to business travelers. Recreation Recreation facilities provided at Ranbanka Palace are aplenty. Swimming Pool, Health Spa, folk dance evenings etc. are some of the leisure activities you can avail in Ranbanka Palace.

Other Facilities

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Doctor on call, currency exchange, car rentals, express laundry/dry cleaning, babysitting, florist and room service.

City Info

Also known as the Blue City, Jodhpur in the Rajasthan state of India is one of the major tourist destinations of India. Known for its forts, palaces and temples, Jodhpur is visited by large number of tourists every year.

HOTEL ROYAL PALACE

INTRODUCTION The Royal Palace Jodhpur is built and managed by the princely family of Khanpur. A perfect blend of traditional hospitality and modern amenities, the 60

Royal Palace Jodhpur is one of the best budget hotels in Jodhpur. The hotel is conveniently located at a distance of 2 km from the railway station and bus stand. Accommodation:The rooms at the hotel are all cocoons of comfort and luxury. Well appointed and well attended, these rooms offer state of the art facilities. The modern amenities available here make a stay at the hotel a truly memorable one. The in-room facilities are:

Attached bathroom Running hot & cold water Television Dressing area Direct dial telephones Room service

Dining The restaurant at the hotel serves lip smacking Indian, Chinese, Continental and local cuisines. It remains open for breakfast, lunch and dinner and serves both vegetarian and non-vegetarian dishes.

Business Facilities

International dialing, etc. are available at the hotel.

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Recreation The travel desk arranges for village safari, folk performances at the hotel, on request. Other Facilities at Royal Palace Jodhpur

Doctor on call Laundry Housekeeping Baggage storage Parking Car rental Airport pickup Currency exchange All major credit cards accepted

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HOTEL GHOOMER

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HOTEL: Budget Hotel Hotel Chain; RTDC Hotels Hotel address: High court road, jodhpur Rooms : 75

Introduction:An RTDC guesthouse, budget Hotel Ghoomar offers warm Marwar style hospitality. Situated at a distance of 5 kilometers from the airport and at a distance of 2 kilometers from the railway station, Hotel Ghoomar is conveniently accessible. A low budget hotel, Hotel Ghoomar offers delightfully regal stays and gives you a fair taste of ethnic Jodhpur.

Facilities Hotel Ghoomar facilities are a pot pourri of luxury and basic amenities that enchant you at amazingly budget rates. Some of the hotel amenities on offer at Hotel Ghoomar include travel assistance, safe deposit, laundry services, car rentals, shopping arcade, currency exchange facilities etc. Cuisine

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Chefs at the multi-cuisine restaurant at budget Hotel Ghoomar conjure up Indian, Continental and Chinese delicacies for your hungry palate. Try the wide array of wines, cocktails and beverages on offer at the Hotel Ghoomar bar. Accommodation All rooms at budget Hotel Ghoomar offer standard room amenities such as attached baths with running hot and cold water, telephon Restaurant: Restaurant of hotel Ghoomar offers Rajasthani, Indian, Continental and Chinese cuisines.

Bar: Serving Indian, Rajasthani Liquor & Wine. Room Facilities Attached Bathroom with Running Hot & Cold Water.

Other Facilities & Services Doctor on Call, Conference Hall Sight Seeing & Package Tours, Cloak rooms, Car Rental, Car Parking & Laundry

TARIFF 64

Room Type Non AC Room AC Room AC Superior Room Suite Check out time

Plan Single Double CP 1265 1485 CP 1925 2310 CP 2475 2860 CP 3740 4565 12 Noon Rates are inclusive of applicable taxes.

Extra Bed 440 495 605 715

Rates may change during the fairs & festivals time. Rates are in Indian Rupees.

12 HOTEL CITY PALACE

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Introduction:Hotel City Palace started in year 1995.Situated in the center of Sun city, major tourist attractions are proximate to our Hotel. We have 21 airconditioned rooms equipped with modern amenities including Restaurant, Bar, Conference facilities etc. Our conference capacity is 70-80 people at a time. The conference facilities include Slide Projector, OHP and PA system. We serve North Indian, South Indian, Chinese and Continental cuisine. The luxurious comfort of elegantly furnished rooms, the idylic serenity of the bar & our inimitable special cuisine make Hotel City Palace "A Home Better than home" Accommodation: 21, Superbly appointed rooms. All rooms are equipped with air-conditioning, direct dialing telephone, colour television with satellite channels refrigerator, attached bath, 24 hrs. hot & cold water. Restaurant : India, South Indian Chinese and also continental and Rajasthani specialties

Amenities : Elevator, Banquet and Conference Facility, 24 hrs. Money changer, Safe deposits Laundry, Credit cards, Rooms Service, Doctor on call, Courtesy cab on request.

:: TARIFF :: Room Type Deluxe Single Double 1400/- 1600/66

Super Deluxe Extra Person

1800/- 2000/300/-

PORTERS FIVE FORCES MODEL

SUPPLIER POWER

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BARRIERS TOENTRY

THREAT OF SUBSTITUTE S

BUYER POWER

MODEL FOR INDUSTRY ANALYSIS

INTRODUCTION
The model of pure competition implies that risk-adjusted rates of return should be constant across firms and industries. However, numerous economic studies have affirmed that different industries can sustain different levels of profitability; part of this difference is explained by industry structure

Michael Porter provided a framework that models an industry as being influenced by five forces. The strategic business manager seeking to

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develop an edge over rival firms can use this model to better understand the industry context in which the firm operates.

Porters model is based on the insight that a corporate strategy should meet the opportunities and threats in the organizations external environment. Especially, competitive strategy should base on and understanding of industry structures and the way they change. Porter has identified five competitive forces that shape every industry and every market. These forces determine the intensity of competition and hence the profitability and attractiveness of an industry. The objective of corporate strategy should be to modify these competitive forces in a way that improves the position of the organization. Porters model supports analysis of the driving forces in an industry. Based on the information derived from the Five Forces Analysis, management can decide how to influence or to exploit particular characteristics of their industry.

1.BARGAINING POWER OF SUPPLIERS

The term 'suppliers' comprises all sources for inputs that are needed in order to provide goods or services. The high class hotels are operating by few hotel chains likeTAJ,EIH,ITC PALACE so they have a control over the industry. 69

 There are no substitutes for spas and five star hotels. The hotels customers are fragmented, so they have to reduce their bargaining power to attract the customers. The Taj, ITC are having various rates and tariffs. Because they are having their own brand image. The hotel chains are operating different services like Spas, Boatels, Resorts, City Centers, Heritage HOTELS,etc.

2 . BARGAINING POWER OF CUSTOMERS

Similarly, the bargaining power of customers determines how much customers can impose pressure on margins and volumes. The hotel industry is one of the most invested in its fixed assets. So they are trying to recover their amount quickly. The suppliers are providing better information about them to attract the customers .Here the buyers are highly informed. f the hotel price changes are moderate, the Customers have low margins and are price sensitive. Some unseasoned timings the hotels are offering discounts and incentives to reduce the bargaining power of buyers.

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3.THREAT OF NEW ENTRANTS

The competition in an industry will be the higher; the easier it is for other companies to enter this industry. In such a situation, new entrants could change major determinants of the market environment (e.g. market shares, prices, customer loyalty) at any time. There is always a latent pressure for reaction and adjustment for existing players in this industry. The foreign hotel chains are tied up with Indian hotels to reduce the

initial cost and using the latters brand name.

Brand loyalty of customers like TAJ, ITC, and LEELA PALACE affects the new entrants. Access to raw materials and Distribution channels are controlled by Existing players likeTAJ, ITC. The cost of land in India is high at 50% of total project cost as against 15% abroad. This acts as a major deterrent to the Indian hotel industry. n India the expenditure tax, luxury tax and sales tax inflate the hotel bill by over 30%. Effective tax in the South East Asian countries works out to only 4-5%..

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4. THREAT OF SUBSTITUTES
A threat from substitutes exists if there are alternative products with lower prices of better performance parameters for the same purpose. They could potentially attract a significant proportion of market volume and hence reduce the potential sales volume for existing players. This category also relates to complementary products. Brand loyalty of customers (TAJ, ITC, LEELA PALACE, etc,) is dominating the substitutes. The hotel relationship with customer and costs also the reasons to switching to substitutes. The price variation of same class hotel services from various brands is one of the reasons to choose a substitute. The present demand and supply of hotel rooms is one of the reasons to choose a substitute. More fixed cost and switching costs affects the business.

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5. COMPETITIVE RIVALRY BETWEEN EXISTING PLAYERS

This force describes the intensity of competition between existing players (companies) in an industry. High competitive pressure results in pressure on prices, margins, and hence, on profitability for every single company in the industry. The top competitors in hotel industry are having the same services like five star, spas ,boatels and motels, heritage hotels and palaces. The healthy competition among the all players is helping to increase the industry growth. Intense in metro cities, slowly picking up in secondary cities.

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CHALLENGES FOR HOTEL INDSTRY

1. Shortage of skilled employees: One of the greatest challenges plaguing the hotel industry is the unavailability of quality workforce in different skill levels. The hotel industry has failed to retain good professionals. 2. Retaining quality workforce: Retention of the workforce through training and development in the hotel industry is a problem and attrition levels are too high. One of the reasons for this is unattractive wage packages. Though there is boom in the service sector, most of the hotel management graduates are joining other sectors like retail and aviation. 3. Shortage of rooms: The hotel industry is facing heavy shortage of

rooms. It is estimated that the current requirement is of 1,50,000 rooms 4. Intense competition:- The industry is witnessing heightened competition with the arrival of new players, new products and new systems. The competition from neighboring countries and negative perceptions about Indian tourism product constrains the growth of tourism. The image of India

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as a country overrun by poverty, political instability, safety concerns and diseases also harms the tourism Industry.

5. Customer expectations:- As India is emerging as a destination on the global travel map, expectations of customers are rising. The companies have to focus on customer loyalty and repeat purchases. 6. Manual back-end:- Though most reputed chains have IT enabled systems for property management, reservations, etc., almost all the data which actually make the company work are filled in manual log books or are simply not tracked. 7. Human resource development: -Some of the services required in the tourism and hotel industries are highly personalized, and no amount of automation can substitute for personal service providers. India is focusing more on white collar jobs than blue collar jobs. The shortage of blue collar employees will pose various threats to the industry.

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Chapter - 3

Research methodology
Market Research is a systematic gathering recording analyzing data about problems relating to the marketing of product and services. It is the process of a systematic and in depth study an area of investigations. Supported by the collections, completion and end presentation of relevant details for further utilization. It involves scientific analysis that would result in the formulation of new theories, the discovery of new techniques, a modification of old concepts or rejections of an existing theory. Marketing research plays a vital role of making available the right at right time, right place and to the right person for use in decision making. It is very difficult to find out information about the companys strategies and polices. Since the research will be doctrinal and non-doctrinal in nature, therefore the data would be collected both from secondary and primary sources of information. On the basis of the data collected, a questionnaire will be developed, which would further help in field study and collection of primary data. So, research would also follow empirical research. Therefore the approach for research would

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be deductive approach. Thus, research methodology is a way to systematically solve the research problem. It includes:

1. 2. 3. 4. 5. 6.

To know the research problem. To specify the specifications. To review literature. Data verifications. Data analysis. Interpretations

3.1 Title of the study: A study of Hotel industries at jodhpur. 3.2 Duration of the Project is one week. 3.3 Objectives of the study :Primary Objective. Sufficient information has been provided in the project about the company and its proceedings. Thus, it is referable. More knowledge and experience gained in making a project report. For the purpose of comparing some of the most luxurious and biggest hotels of India. For the purpose of submitting the IRP. Last but not the least, it is done as my interests lie in this industry. 1. To study the Hotel industry of Jodhpur. 2. To study the recessionary effect on the hotel industry at Jodhpur.

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3. To understand the complete procedure and requirements of jodhpur Hotel Industry. 4. To find the potential in existing market. 5. To measure the satisfaction level of the existing customers and to make the customers awareness about the new products and services offered by Hotel Industry of Jodhpur. 6. To get the cause of losing customer satisfaction. 7. To know what kind of improvement is required to be the best in hotel sector. To understand the current market position and to evaluate the improvements required for hotel industries. 8. To understand the services changes needed to give it a competitive edge in the market.

Secondary objective: To find which is the top ranking hotel at jodhpur. What are the areas where the hotels are lacking. To improvement its services for attract more customers. To identify the strategies adopted by hotels. To identify the opportunities and threats for hotels in the market, and analyses its strengths and weaknesses.

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Scope of the study

Time frame: A two weeks time was given for the completion of the project. Weekly submissions and check-ups of data was done. Area: The study was based only in the jodhpur market, i.e. Taj Hotels and some of the other major jodhpur hotels. Market study: Data collected basically from the internet and some business magazines. Financials and market shares provided. Limitations: Time frame for study was tight. Schedule had to be maintained. Access to data: Internet, Books, Magazines, Newsletters, Word-of mouth information etc.

DATA COLLECTION TOOLS

Depending upon source data collection is classified under two categories: 1. Primary Data 2. Secondary Data

PRIMARY DATA

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The data which are originally collected by an investigations or agency for the first time for any time for any statistical investigations used by them in the statistical analysis are termed as primary data.

SECONDARY DATA

The data which have already been collected and processed by some agency or person and taken over from these or used by any other agency for their statistical work are termed as secondary data. The methodology used for the data collection was based on personal observation & information gathered through various sources like Internet, annual reports etc. The information so received was properly analyzed, interpreted to the right conclusions. The research study has been carried out by adopting the following methodology:1. The review of available literature was made to develop the conceptual framework of Hotel industry. 2. The study has been based on primary & secondary data both.

In data collection method we shall collect the secondary data from following sources: News paper Magazine 80

Internet Survey Questionnaire

Research Design Exploratory Research

According to Kothari (2003), the primary purpose of exploratory research is to shed light on the nature of situation and identify any specific objective or data needs to be addressed through additional research. Exploratory research is the most useful when a decision maker wishes to better understand situation, identify relevant courses of action or gain additional insights before an approach can be developed. In general, exploratory is appropriate to any a problem about which little is known. Exploratory studies are distinguished by flexibility concerning the methods employed. Literature searches, experience surveys and study of selected studies are some commonly used approaches (Kothari, 2004).An effective way of doing exploratory research is to seek out and talk to individual with expertise related to the situation being investigated. Designed to generate basic knowledge, clarify relevant issues uncover variables associated with a problem, uncover information needs, and/or define alternatives for addressing research objectives. A very flexible, open-ended process. 81

Conclusive Research:

The insights gained from exploratory research might be verified by conclusive research, as the objective of conclusive research is to test specific hypothesis and examine specific relationship (Malhotra, 1999). Conclusive research is especially useful when the decision-maker already has in mind on or more alternatives and is specifically looking for information pertinent to evaluating them. Therefore, when conductive a conclusive research, the decision maker can choose the best course action in a situation.

The kind of research is based on large, representative samples, and the data obtained are subject to quantitative analysis

Descriptive Research :Descriptive research is the design involved in the vast majority of marketing studies. The goal of descriptive research, as the name implies is essentially to describe something. Specifically, it is intended to generate data describing the composition and characteristics of relevant groups of unit such as customers, salespeople, organization and market areas (Parasuraman, 1991).Data collected through descriptive research can provide valuable

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information bout the study units along relevant characteristics and also association among those characteristics. Designed to provide further insight into the research problem by describing the variables of interest. Can be used for profiling, defining, segmentation, estimating, predicting, and examining associative relationships.

Causal Research
Designed to provide information on potential cause-and-effect relationships. Most practical in marketing to talk about associations or impact of one variable on another. Research Instrument used If one wants to know that how much people buy a particular brand or what they think about the brand or a particular company. Thus the questionnaire method has come to be the more widely used of the true data collection method. The questionnaire method in general has a number of advantages. A questionnaire consists of list of questions to be asked from the respondents and the space provided to record the answer. Questionnaire in the project consists of: Multiple Choice questions question of this type offer the respondents an alternative to choose right answer among other. Sample design is a definite plan of obtaining some 83

items from the whole population. The sample design used in this project is: Convenience Sampling This type of sampling is chosen purely on the basis of convenience of the interviewer.

Sampling Techniques:
Sampling may be defined as the selection of some part of an aggregate or totality on the basis which a judgment or interference about the aggregate or totality is made. In other words, it is the process of obtaining information about an entire population by examine only a part of it. In most of the research work and surveys, the usual approach happens to be to make generalizations or to draw inferences based on samples about parameters of populations from which the samples are taken. Sampling technique Sample units. Non- probability sampling People who are in hotel business.

Population (or universe) is the aggregate or totality of statistical data forming a subject of Investigation, for example, 1) The population of books in the National Library. 2) The populations of the heights of Indians.

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A Sample is a portion of the population which is examined with a view to estimating the Characteristics of the population, i.e., 1) To assess the quality of a bag of rice, we example only a portion of it. The portion selected from the bag is called a sample, while the whole quantity of rice in the bag is the population. 2) To estimate the proportion of defective articles in a large consignment, only a portion (i.e, a few of them) is selected and examined. The selected portion is a sample.

Methods:Direct interview through Questionnaire Data analysis method -: Graphical method

3.4 TYPE OF RESEARCH

Research of the project was Field Research Analysis. Field Research:

Field research are ex post facto scientific inquires that aims at finding the relations and inter relations among variables in a real setting. Such studies are done in life situations like communities, schools, factories, organizations and institutions.

Advantages of Field Study

1) They are close to real life, and they cannot be criticized on the ground that they are remote from real settings or are artificial. Field other types of study. studies are more socially significant than

2) In real settings, variables exert their influence fully and, as such, the strength of variables is another advantage of field studies. 85

3) field studies are also strong in their heuristic quality.

Limitations of the Field Study

1) Such studies are scientifically inferior to laboratory and field experiments. 2) There is lack of precision in the measurement of variables. This limitations arises on account of the greater complexity of field situations. 3) Such studies have practical problems in respect of feasibility, cost, sampling, and time. For instance, they are likely to take more time and involve a great cost.

3.5 Sample Size

20 Respondents (age ranging between 18 years to 50 years) and 12 Hotel profile are included

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Chapter-4 Facts and findings

The type of data collection refers to the main process used in the collection of statistical data by the primary source of the data, those commonly used being survey data collection and administrative data collection. Each of these broad types may be further broken down on the basis of some characteristic, e.g. the nature of the data provider (enterprise/household) or exhaustiveness (sample survey, complete enumeration, census). Surveys refer to both sample surveys and censuses. Specialized surveys are those concerned with a single subject or issue. Specialized surveys may be ad hoc or they may be implemented as part of an on-going national survey programme but conducted with separate samples because of subject-matter or other considerations. They may be conducted periodically, irregularly or only once. In the case of commodity, they collect information on the physical quantities in original units and/or commodity equivalent for energy commodities, produced or consumed whereby specialized 87

surveys enquiring on production are surveys to producers and specialized consumers. surveys enquiring on consumption are surveys to

These specialized energy surveys complement regular structural and short-term business surveys that enquire on production-related and financing-related variables in monetary terms. Administrative data is the set of units and data derived from an administrative source (that is, the organizational unit responsible for implementing an administrative regulation (or group of regulations), for which the corresponding register of units and the transactions are viewed as a source of statistical data). [Examples of administrative data are custom data on imports/exports, data from tax records etc.

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IMPACT OF RECESSION ON HOTEL INDUSTRY Recession is a decline in a country's gross domestic product (GDP) for two or more consecutive quarters of a year. A recession is also preceded by several quarters of slowing down.

GDP= Consumption + investment + government spending + (exportsimports)

Negative:The state of turmoil in global financial markets has generated new concerns for the hospitality industry. Industrial and economic growth/ slowdown has direct impact on the Indian hotel industry. Existing hotels in India are also likely to benefit from the improved performance of the non-room sources of income, namely Food & Beverage (including banquet operations), Spa, Corporate Club memberships and other ancillary services. Hotel Industry has been built as an infrastructure for tourism in which the scope of earning is almost infinite, considering the potential of this global industry. Hotel industry is never a commodity supply like a package, process for promotion of rooms 89

and supply of food, but demands hospitality as well. First pre-requisite of hotel industry is forecast of future demand, in terms of demand that the right supply at right place, right time and right price is built up. One hotel room alone creates three direct & nine indirect job opportunities which makes it a labour intensive industry. Hotel is a essential destination facility that a Challenges for the

country must provide to built up its tourist image. India hospitality industry are:

1. Shortage of skilled employees 2. Retaining quality workforce. 3. Shortage of rooms. 4 .Unemployment due to low business Reduction in Foreign Exchange Reduction in FDI. 5. Decline in growth of foreign tourist arrivals (FTAs): India receives huge tourist inflows from the UK and US. 6 .Due to recession many countries like the UK, US, Australia, etc had issued travel advisory notes. This has led to huge

cancellations/postponements of room bookings by many foreign tourists to the tune of 35-40% in the last 3-4 months.

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Positive impact:1. Reduction in interest rates. 2. Reduction in taxes. 3. Entry for new players. 4. Customer can book at the last minute & have opportunity to negotiate. 5. More discounted hotels deals and easy availability. 6. Discounts in luxury services.

Products Key Players Significance

Products:-

Rooms . Conference Rooms . Banquets & Halls. SPA facility. Restaurants & Bar 12. Recreation facility

Key Players

1) ITC Limited 2) Taj Hotels

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3) RtdcHotel 5) Hertiage Hotels

Chapter-5

RECOMMADATIONS AND SUGGESTIONS:-

Tie ups with institutes : It is the duty of the industry make necessary tie-up arrangement for their required human resources with one or two hospitality institutes in the country . Continuous training : There is a need of continuous training to all categories of employees in the organization . when they have a tie 92

up with the institutes , the institutes will offer in house training to different category of employees from time to time to update their skills . Sponsoring: It is the duty of the industry Research : Every institute must spend some amount for the research which is essential for further development and understand the present situation . the to sponsor some amount / equipment to the institute for their betterment . if possible the sponsor a chair for continuous funding and research for that institute . industry should involve in the researchers by providing timely information and data which is ultimately useful for them only . Good advertising is a major problems to jodhpur hotels. Technology and online booking. .Brand recognition.. Different pricing.. Site and Locations is also improve success strategies. More advance and development should be there. More need of transparency is there. Customer satisfaction is also more important. The hotels are lacking in many areas so there is a need of

improvement.

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The competition are in hotel industry are there but its really

works for increase hotel image. Slow market growth causes firms to fight for market share. In a

growing market, firms are able to improve revenues simply because of the expanding market.

KEY SUCCESS FACTORS

The market for the hotel industry can be divided into the following key consumer segments based on purpose of visit: The Business Traveler The Business Traveler is a businessman or a corporate executive traveling for business purposes. This segment includes corporate, both domestic and foreign, who open offices in the hotel premises during start-ups, corporate executives who make extended stay either for long duration projects or while waiting for permanent accommodation (primarily expatriates) and convention arrivals. While the senior executives usually stay in 5 star hotels, the middle level executives, who are much larger in number, stay in the budget hotels. This segment offers better realizations, as they demand relatively smaller discounts on room rents (about 10per cent-15percent), use more of facilities such as PCs, fax multi media, conference halls. Also, the Food &Beverage (F&B) revenues are better as they usually eat in the hotel itself due to their busy schedules. 94

The Leisure Traveler The Leisure Traveler could either be a foreigner or a domestic traveler whose primary purpose of visit is holiday or site seeing. Among nonbusiness foreign tourists the primary motivation for visiting India is largely cultural attraction followed by conferences and conventions, tourist attractions like beaches, wild life, hill resorts etc. Usually, leisure travelers are part of a package run by a tour operator. The margins offered by leisure travelers tend to be lower because of two reasons. Firstly, they seek higher discounts and also provide less F&B revenues as they usually eat out. The business offered by this segment is highly seasonal and tends to peak in the September to March period. Premium and Luxury Segment This segment comprises the high-end 5-star deluxe and 5-star hotels, which mainly cater to the business and up market foreign leisure travelers and offer a high quality and range of services.

DOMESTIC PLAYERS
Major players in the Indian Hotel Industry: Hotel Chains
They comprise major players including Indian Hotels Company Limited (the Taj Group) and associate companies, EIH Limited (the Oberoi Group), ITC Hotels Limited (the ITC Welcome Group), Indian Tourism Development Corporation (ITDC) and Hotel Corporation of India (HCI) (the latter two being under the Public Sector). Most of these chains had an established presence 95

in one or more metro cities prior to the tourism boom of the 1980s. Subsequent to the tourism boom, these chains aggressively expanded their presence in other locations. The private players among the hotel chains are industry leaders and have well-established brand identities across the different industry segments. Small Chains They are companies that have come up after the tourism boom of the 1980s and 1990s. Due to lack of prior experience in the hotel industry, these players have preferred to opt for operating/management arrangements with international players of repute. As late entrants, most of these hotel companies have fewer properties, compared with the big chains. However most of these players have initiated Public Sector Chains ITDC and RTDC boast of some of the best locations in major cities but are relative underperformers, as compared with their private sector counterparts International Hotel Chains They are also looking at India as a major growth destination. These chains are establishing themselves in the Indian market by entering into joint ventures with Indian partners or by entering into management contracts or franchisee arrangements. Some of the players who have already entered or plan to enter the Indian market.

Localized Hotel Companies

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They are mainly comprise early entrants who have an established localized presence and who preferred not to expand during the tourism boom but focus on building and catering to a loyal customer base.

GOVERNMENT POLICIES
Tourism being a concurrent subject under the Indian constitution, both the central and state governments regulates the hotel industry. The regulations include statutory and regulatory sanctions (or approvals and licenses) from the Central and State departments or agencies. This includes license to operate a restaurant, a hotel license (issued by municipal authorities), license from police (issued by local police) and a bar license (issued by excise department). Tourism Policy In order to develop tourism in India in a systematic manner, position it as a major engine of economic growth and to harness its direct and multiplier effects for employment and poverty eradication in an environmentally sustainable manner, the National Tourism Policy was formulated in the year 2002. Broadly, the Policy attempts to: Position tourism as a major engine of economic growth Harness the direct and multiplier effects of tourism for employment generation, economic development and providing impetus to rural tourism Focus on domestic tourism as a major driver of tourism growth Position India as a global brand to take advantage of the burgeoning global travel trade And the vast untapped potential of India as a destination. 97

 Acknowledges the critical role of private sector with government working as a pro-active facilitator and catalyst. Create and develop integrated tourism circuits based on Indias unique civilization, heritage, and culture in partnership with States, private sector and other agencies.

Foreign Trade Policy

The Foreign Trade Policy announced in April, 2006, offered following incentives to the hotel industry: Hotels and Restaurants are allowed to import duty free equipment and other items including liquor, against their foreign exchange earnings under the Served from India Scheme. As in previous years, this entitlement is 5per cent of previous years foreign exchange earnings for hotels of one-star and above (including managed hotels and heritage hotels) approved by the Department of Tourism and other service providers in the tourism sector registered with it. The stand-alone restaurants will be entitled to duty credit equivalent to 10per cent of the Foreign exchange earned by them in the preceding financial year (instead of the earlier 20per cent). Service exports in Indian Rupees, which are otherwise considered as having been paid for in free foreign exchange by RBI, will now qualify for benefits under the Served from India Scheme. Also, foreign exchange earned through International Credit Cards and other instruments as permitted by RBI for rendering of service by the service providers shall be considered for the purposes of computation of entitlement under the 98

Scheme. Benefits of the Scheme earned by one service provider of a Group company can now be utilized by other service providers of the same Group Company including managed hotels.

The measure aims at supporting the Group service companies not earning foreign exchange in getting access to the international quality products at competitive price and providing services of international standards. This new initiative allows transfer of both the script and the imported input to the Group Service Company. The earlier provision allowed transfer of imported material only.

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Analysis and Interpretation

Questionnaire
Q 1 Is there need of training for customer service staff? Ans Yes 63%
No 37%

YES NO

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Q 2 Do you consider change in customers habits, taste and preference an opportunity? Ans Yes 68%
No 32%

70% 60% 50% 40% 30% 20% 10% 0% YES NO

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Q 3 Do your consider growth of tourism industry as an opportunity? ANS:

Reply Yes No Total No. of respondents 10 10 20 Percentage 82% 18% 100%

90% 80% 70% 60% 50% 40% 30% 20% 10% 0% S1 YES NO YES NO

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Q 4. Do you think any changes in policies of government and tourism industry will affect your hotel industry?
Reply Yes No Dont know Total No. of respondents 10 10 10 30 Percentage 68% 20% 12% 100%

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12%

Dont know

20%

No

68%

yes

0%

10%

20%

30%

40% Series1

50%

60%

70%

80%

Q 6. In todays changing scenario- do you agree that hotel industry is haunted by terrorism and has become a major threat (for your hotels)?
Reply Yes No Dont know Total No. of respondents 10 10 10 30 Percentage 59% 20% 21% 100% 104

60% 50% 40% 30% 20% 10% 0% 1

YES
NO DONT NO

Q 7.Do you consider retention of key staff critical? ANS;- YES 60%
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NO 40%

NO 40%

YES 60%

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Q 8. Do your consider event risk as a threat? ANS:- YES 70% NO 20% DONT KNOW 10%

Dont know 11% NO 11%

YES 78%

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Q 9. Do you consider international brand as a threat to your organization? ANS:- YES 58% NO 30% DONT KNOW 12%

Dont know

12%

NO

30%

YES

58%

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Q 10. In what areas the hotel is not able to recover cost?

Is there any area which has not yet been taken care of by your competitors?

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Q11. Are there any complains reported by your customers? Ans :- YES 55% NO 45

NO 45% YES 55%

Q13. Do you consider niche target segment as your strength?

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Q 14. Do you think that the employees and the staff are skilled or do they require customer service training?

Q 15.Do you consider fluctuations in international tourism arrival as a major threat?

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Q16 Does the hotel have a pool of skilled employees? If yes, is the morale of the employees high?

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Q 17.Has the hotel & the staff demonstrated the ability to adapt the changes? Ans Yes No

Q18.What is the major source of your revenue and profit?

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Chapter Swot Analysis

Strengths:SWOT ANALYSIS India has a rich cultural heritage. The "unity in diversity" tag attracts most tourists.

Linked to the tourism industry. Quality of services. Dynamic in the Tourism and Hotel industry. 114

 Indias rich cultural heritage. Low labour cost as against the world standards. Helps to boost travel &tourism. Demand & supply gap in star category hotels. Opportunity for investment for Indian and over seas players.

Natural and cultural diversity :Segment will witness huge growth and expansion while the luxury segment will continue to perform extremely well over the next few years.

Demand-supply gap :Indian hotel industry is facing a mismatch between the demand and supply of rooms leading to higher room rates and occupancy levels. With the privile ge of hosting Commonwealth Games 2010 there is more demand of rooms in five star hotels. This has led to the rapid expansion of the sector.

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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. Moreover, foreign hospitality players are heading towards Indian markets.

Weakness:1.Poor support infrastructure: Though the government is taking necessary steps, many more things need to be done to improve the infrastructure.

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2.Slow implementation: 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.

3. Susceptible to political events: The internal security scenario and social unrest also hamper the foreign tourist arrival rates. 4. Slow market growth causes firms to fight for market share. In a growing market, firms are able to improve revenues simply because of the expanding market. 5. Regional imbalance of Hotels. 6. capital incentives. 7. labour intensive. 8. high taxes and tariffs for every services. 9. High government duty on power tariffs. 10. lack of aggressive and effective marketing and promotional strategies. 11. Disparity in taxes charged by various states. 12. The prohibitive cost of power in India.

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13. Land availability is a major hurdle for any hotel project. Release of Land location is difficult because large tracts of India such locations comes under the Governments control.

Opportunities:1. Rising income: Owing to the rise in income levels, Indians have more spare money to spend, which is expected to enhance leisure tourism.

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2. 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. It has benefited both international and domestic travels. 3New business opportunity. 4. Unique experience in heritage hotels. 5. In the long-term the hotel industry in India has latent potential for growth. Demand between the national and the inbound tourists can be easily managed due to difference in the period of holidays.

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Threats
1. Fluctuations in international tourist arrivals: The total dependency on foreign tourists can be risky, as there are wide fluctuations in international tourism. Domestic tourism needs to be given equal importance and measures should be taken to promote it. 2. Increasing competition:- There are many new hotels are coming up in next few years. There is a threats for loosing customers by the hotels. 3. Event risk. 4. Lack of training man power in the hotel industry 5. The economic conditions of a country have a direct impact on the earnings in hotel industry. 6. Changing trends in the west demand similar changes in India. 7. Political turbulence in the area reduces tourist traffic and thus the business of the hotels. 8. Guest houses replace the hotels.

Chapter -9 CONCLUSION
The outlook for the hotel market in jodhpur is optimistic. It creates interest of the competitors to grow drastically. The hotel industry comprises a major

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part of the tourism industry. The hotel industry contributes employment and economical growth of the country.The report shows that the present and future skyrocket scenario of the industry. Various classes and categories of hotels and their services of the industry are very effective. The market share and expansion of industry in Indian economy is rosy day by day. At present the government is very liberal in regulating and licensing to the hotels because to increase foreign tourist average daily rate. The thriving economy and increase business opportunity have acted as a boon for jodhpur hotel industry. Hotel industry organizations will have to find alternative avenues to attract and hire employees, and have policies and practice to retain quality employees. The future scenario of jodhpur hotel industry looks extremely rosy,. New MNCs also contributes in jodhpur hotel industry in next few years. This hotel industry analysis report helps to know the full information of Indian hotel industry. The government support towards the hotel industry and its development is appreciable. It creates interest of the competitors to grow drastically. The hotel industry comprises a major part of the tourism industry. The hotel industry contributes employment and economical growth of the country.

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First, increases in occupancy are accompanied by increases in operating expenses. For every room that is filled, there are additional costs such as housekeeping, laundry and utilities that must be paid. When room rates decline while variable operating expenses remain stable, margins are compressed. Second, and most importantly, cuts to ADR are difficult to recoup when the operating environment eventually improves. After slashing room rates in an effort to fill a ,hotel, attempts to restore those rates to previous levels are likely to be met with significant resistance. As such, the ability to benefit from an improving economy will be delayed.

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This assignment has enhanced our knowledge database about the tourism and hotel industry. It has provided us with an insight into some of the best hotel companies, as we were able to analyze the sum total of data representation of their performance and survival techniques. Pertaining to the current world recession scenario, we could find that it had little impact on the tourism and hospitality industry. there is a cut throat competition existing in the hotel industry and only survival of the fittest is possible. In the hotel industry customer centric approach is followed wherein customer is of prime importance and other factors are based on the decisions made by the customers. A paramount importance is given to the human resources as they constitute a major part of the industry. Also quality is never compromised.

Bibliography
The information provided in this project is collected from various sources like: Google website Taj website(www.tajhotels .org) 123

 Itc website(www.itcportal.com) Ashok website(Ashokhotels.com) www.yahoo.com www.slideshare.com www.Scribd.com www.Wikipedia.org IndiaToday magazines Help from Parents, Teachers & Friends too.

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