Hospitality Industry (1)
Transcript of Hospitality Industry (1)
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HOSPITALITY INDUSTRY
PRESENTED TO: PROF. SUPRIYA BHUTANI
PRESENTED BY:
ANUJ GOSAI (2)
JIGNESH HIRANI (13)
RITU MALIK (19)
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WHAT IS HOSPITALITY MANAGEMEN? Hospitality management is the sum total
organization involved in planning, controlling,supervising and co-ordinating all the humanand other material resources which meant toprovide comfort, conveniences, satisfaction andacceptable services to guests or any persons ina friendly and hospitable atmosphere in orderto minimize complaints, uncomplimentarystatements and to reduce waste of theseresources.
INTRODUCTION
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Hospitality management industry has beenclassified into three major parts,
Different types of hospitality industry such as
HotelMotel
Guest Houses
TYPES OF HOSPITALITY MANAGEMENT
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India has the potential to become the number onetourist destination in the world with the demand growingat 10.1 per cent per annum, the World Travel andTourism Council (WTTC) has predicted.
The WTO (World Travel Organisation) predicts that Indiawill receive 25 million tourists by year 2015.
Major attractions in India are the world's highestmountains, miles of coastline with excellent beaches,tropical forests and wildlife, desert safari, lagoonbackwaters, ancient monuments, forts and palaces,adventure tourism and, of course, the Taj Mahal.
THE GROWING HOSPITALITY INDUSTRY IN INDIA
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Existing hotel rooms in India: 202,963, source
FHRAI
Revenue of the Indian hotel industry FY 2009-
10: US$ 137.36 (INR 47,889.03 crore)
30% of this revenue i.e. US$ 41.2 million (INR
14,366.7 crore) went back into the market in FY
2008-09 as operating expenses
CURRENT SCENARIO
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NUMBER OF HOTELS IN INDIA
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Strengths A very wide variety of hotels is present in the country
that can fulfill the demand of the tourists.
There are international players in the market such as Taj
and Oberoi & International Chains.
Thus, the needs of the international tourists travellers
are met while they are on a visit to India.
Manpower costs in the Indian hotel industry is one ofthe lowest in the world.
This provides better margins for Indian hotel industry.
SWOT ANALYSIS
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The cost of land in India is high at 50% of total project cost asagainst 15% abroad
This acts as a major deterrent to the Indian hotel industry
The hotel industry in India is heavily staffed. This can be gauged
from the facts that while
Indian hotel companies have a staff to room ratio of 3:1, this ratio
is 1:1 for international hotel companies
High tax structure in the industry makes the industry worse off
than its international equivalent
In 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%
WEAKNESS
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In the long-term the hotel industry in India haslatent potential for growth.
This is because India is an ideal destination for
tourists as it is the only country with the mostdiverse topography.
For India, the inbound tourists are a mere 0.49%
of the global figures.
This number is expected to increase at a
phenomenal rate thus pushing up the demand
for the hotel industry.
OPPORTUNITY
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Guest houses replace the hotels This is a growing trend in the west and is now
catching up in India also, thus diverting the hotel
traffic
Political turbulence in the area reduces tourist
traffic and thus the business of the hotels
Changing trends in the west demand similar
changes in India, which here are difficult
to implement due to high project costs.
THREATS
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THE THREE-STAGE MODEL OF SERVICE CONSUMPTION
PRE-PURCHASE STAGE: Awareness Need: Vacation, Tours, A place to relax enjoy and
have
Information Search: Internet, Journals, Word of Mouth,
Evaluation of Alternatives: Comparison of the rates, selecting thebest package,
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Service Encounter Stage:
THE THREE-STAGE MODEL OF SERVICE CONSUMPTION
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Post- Encounter Stage: Evaluation through feedbackforms, satisfaction of consumers, spreading positive
word of mouth
THE THREE-STAGE MODEL OF SERVICE CONSUMPTION
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Functional Risk: Will I be able to experience good room service?
Will I be able to enjoy and relax in the hotel?
Financial Risk:
Will the charges will be high? Will I incur lot of other costs inspite of paying the regular
charges?
Temporal Risk:
Will the have availability of room? Will the service be slow and unmanageable?
PERCEIVED RISK
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Physical Risk: Will the food served will harm my health?
Will I get sick while travelling long distance?
Psychological Risk:
Will my things/luggage will be safe here? Is the security level high here?
Social Risk:
Will my family like this place?
Is this place suitable for family/friends meeting? Sensory Risk:
Will I get a comfortable room for my family/friends?
Will the view from my room be good?
PERCEIVED RISK
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Reservation
Valet
Parking
Reception
Baggage
Service
CocktailBar
RestaurantEntertainment/
Sports / Exercise
Telephone
Wake-upCall
Room
Service
Business
Center
Cashier
A Bed for the
Night in an
Elegant Private
Room with a
Bathroom
CORE AND SUPPLEMENTARY SERVICE IN A LUXURY HOTEL
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FLOWER OF SERVICE
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Information - Reg. the org.,, promotion schemes etc.Through website, call
service, sms, employees etc.
Consultation - Reg. the choices of class, routes to a destination & special
menus for frequent visitors
Order taking - Booking - through phones, fax and internet Call Centres, Company
Website & Agents
Hospitality - Most important differentiating factor
Safe keeping - Luggage & Children
Exceptions - Special requests reg. meal preferences, special amenities
for elderly people or children, medical needs etc.
Billing - Charges split, E-mail bills etc.
Payment - Credit card, Travellers cheque, Special payment privileges
for frequent visitors
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SUPPORTPROCESS
CON
TACTPERSON
(BackStage)
(On
Stage)
CUST
OMER
Hotel ExteriorParking
Cart forBags
DeskRegistration
PapersLobby
Key
ElevatorsHallways
Room
Cart forBags
RoomAmenities
Bath
Menu DeliveryTray
FoodAppearance
Food BillDesk
LobbyHotel Exterior
Parking
Arriveat
Hotel
Give Bagsto
BellpersonCheck in
Go to
Room
Receive
Bags
Sleep
Shower
CallRoom
Service
Receive
FoodEat
Check outand
Leave
Greet andTake
Bags
ProcessRegistration
Deliver
Bags
Deliver
FoodProcess
CheckOut
Take Bagsto Room
TakeFood
Order
RegistrationSystem
PrepareFood
PHYSICAL
EVIDENCE
Line of Interaction
Line of Visibility
Line of Internal Interaction
RegistrationSystem
BLUE PRINT FOR OVERNIGHT HOTEL STAY
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Environmental
Dimensions
Perceived
ServiceScape
Ambient
Conditions
Temp, air
qu,noise,mu
sic,scent
Space/
Function
Layout,equip,furnishing
Signs,
Symbols &
Artefacts
Cognitive
Emotional
Psychological
Customer
Response
Moderator
Employee
Responses
Approach
or
Avoid
Approach
or
Avoid
Social Interaction
Between
Customers &
Employees
Holistic
Environ-
ment
Moderators Internal Responses
Customer
Responses
Employee
ResponseModerator
Cognitive
Emotional
Psychological
An Integrated Framework Bitners Service Scape Model
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THE GAPS MODEL
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The knowledge gap:
Hotel managers must know and understand what their guests expect from
their stay, including all tangibles and intangible components
The size of the gap is dependent on the extent of upward communication ,
the number of layers of management, the size of the organization
The extent of marketing research to identify customer expectations
The policy gap:
It is measured by how well the service design specifications match up to
managements perception of customer expectations
The extent of this gap is dependent on managements belief that service
quality is important and that it is possible, as well as the resources that are
available for the provision of the service.
THE GAPS MODEL
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Delivery Gap: Since individuals perform the service, the quality may be affected by such
factors as skill level, type of training received, degree of role congruity
or conflict, and job fit
The process is further complicated by the customers participation in the
service encounter
Communication Gap:
Hospitality companies use advertising, personal selling, and
sales promotion to inform, persuade, and remind guests about its products
and services
Showing beautifully appointed hotel rooms, refreshing swimming pools, andluxurious lobby areas in an advertisement communicates to the target
customers.
The extent of communications between the company and the advertising
agencies will affect the size of the gap.
Over-promising is commonly responsible for the communication gap.
THE GAPS MODEL
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RUSSELLSMODEL
AROUSING
EXCITING
PLEASANT
RELAXINGSLEEPY
BORING
UNPLEASANT
DISTRESSING
RUSSELLS MODEL OF AFFECT
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Problem: Non- Availability of rooms (during vacation)
Information:
Lack of research, planning
Over doing promotions, unable to manage the rush
Procedures: Confused/ delayed room selections
More and more cancelations
Over reservations
Desire to earn more income Front-Stage personnel:
Few Employees
Untrained/undermotivated employees
ROOT CAUSE ANALYSIS
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Inability to handle such situations
Late/delayed/slow response to customers
Backstage Personnel:
Late cleaners
Unavailability of the required staff
Facilities Equipment
Cleaning and maintaining tools
Materials used and required by customers
Failures in services Material Supplies:
Late food service/room service
Lack of things required by customers
ROOT CAUSE ANALYSIS
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Customers:
Being rude and making unnecessary demands
Arriving late
Over booking of rooms/ cancellations
Other causes: Peak period
Less rooms
Unnecessary Promotions
ROOT CAUSE ANALYSIS
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