Use of Web Services in Hospitality Sector

PARUL INSTITUTE OF MANAGEMENT
A GRAND PROJECT REPORT ON

USE OF WEB SERVICES IN HOSPITALITY SECTOR
In Partial fulfillment of Post Graduate Diploma in Management

(Full Time Programme) Prepared By Harshit Tandon (Roll No. 55) Gajendra Sisodia (Roll No. 53) Batch (2008-10) Parul Institute of management PO Limda, TA:Waghodia Dist: Vadodara, Gujarat-391760
(Approved by AICTE, MHRD, Govt. Of India, New Delhi)
(JANUARY 2010)
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PREFACE
Post Graduation Diploma in Management (PGDM) is a course, which combines both theory and its applications as its contents of study in the field of management. As part and parcel of this course, we have prepared a grand project. The purpose of this grand project is to expose the students of management sciences to real life situations existing in the organization and to provide an insight into the various functions, who can visualize things, what they have been taught in classrooms. Actually, it is the life force of management. It is in practical training that the effectiveness of management itself is realized. This report is a continuation of that tradition. It is an attempt to present an account of practical knowledge and observations gathered during the analysis. This report includes the information about the use of web services in hospitality services.
Acknowledgement
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We hereby acknowledge the courtesy and prompt response of all those who were requested to contribute their views, readily grant the necessary permission to contact them at inconvenient hours despite the pressure of work. We would like to express our sincere gratitude towards Prof. N. K. Kapoor for giving us this opportunity to experience a whole new dimension in our study curriculum which has not only enriched our knowledge but has also helped us by giving a practical exposure to the corporate world. His invaluable and constructive criticism and continuous encouragement throughout the project helped us to get insight of the working for hospitality sector. We would like to express our sincere thanks to Prof.varudhini C. of Parul Institute of Management for guiding us through the project, without her help it would have been difficult for us to complete this project. The training experience will go down as one of the most cherished memories in our lives.
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(STUDENT DECLARATION)
We here by declare that the project report entitled
USE OF WEB SERVICES IN HOSPITALITY SECTOR

Submitted in partial fulfillment of the requirements for the diploma of Post Graduate Diploma In Management (PGDM)
To Parul Institute of Management, Baroda, is our original work and not submitted for the award of any other degree, diploma, fellowship, or any other similar title of prizes.
Place: BARODA Date:
Harshit Tandon Gajendra Sisodia
INDEX
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Sr.No .
Subject
PAGE.NO .
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1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17.
Objectives Research methodology Executive summary History of hospitality sector Hospitality sector overview Top players of hospitality industry Classification of hospitality sector Marketing Mix Contribution to Indian economy Trends in hospitality sector Use of IT in hospitality sector Challenges for hospitality sector SWOT analysis Recommendations Limitation Future of hospitality sector Bibliography
1 2 3 4-6 7-11 12-13 14 15-16 17-18 19-20 21-25 26-27 28-31 32-33 34 35-37 38
Objectives:
To analysis the role and need of Hospitality & Catering as it is an upcoming era of Hospitality.
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To know how Hospitality can be beneficial in the growth of Indian economy.
To understand the nature of services rendered and various facilities provided by Hospitality Industry. To know about the recent trends & services of main Hospitality players in India. To understand the future prospects and challenges faced by Hospitality Industry activity.
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RESEARCH METHODOLOGY Generally Research is considered as an endeavor to arrive at the answers to intellectual and practical problems through the application of scientific methods to the knowledge universe. It is movement from known to unknown. Research comprises defining and redefining of problems, formulating hypothesis or suggested solutions, organizing and evaluating data, making deductions and reaching conclusion, and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis.
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EXECUTIVE SUMMARY
The hospitality industry is one of the oldest businesses in history. People have always gone out to eat sometimes and traveled for work or leisure purposes. However, the face of the hospitality industry has changed drastically. Not only has the industry expanded to include areas such as tourism and meeting and convention planning, but also the face of the workforce in substantial positions has expanded to include all races and colors. The explosion of growth in the hospitality industry demands highly qualified people trained in hospitality management to fill rapidly opening positions. The present hospitality industry is extraordinarily health and viable and as a result offer excellent opportunities in restaurant management, recreational management, travel and tourism, meeting and convention planning and institutional management. The globalization of the hospitality sector creates the availability of jobs in virtually every city in the world
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History of hospitality industry

One of the fastest growing sectors of the economy of our times is the hospitality industry. The hospitality industry alone is a multi-billion dollar and growing enterprise. It is exciting, never boring and offers unlimited opportunities. The hospitality industry is diverse enough for people to work in different areas of interest and still be employed within the hospitality industry. Think about this: It makes sense to prepare for a job in which you have numerous opportunities for advancement, because it is an economic advantage for you in the long run. The hospitality industry pays those well who have prepared well. Hospitality organizing, and management directing and involves controlling the of planning, and
human
material resources within the lodging, restaurant, travel tourism, institutional and meeting management, and recreational planning management convention
industries. All of these separate yet related segments of the hospitality industry are interrelated to deliver kind and generous services to guests. The hospitality industry is one of the oldest businesses in history. People have always gone out to eat sometimes and traveled for work or leisure purposes. However, the face of the hospitality industry has changed drastically. Not only has the industry expanded to include areas such as tourism and meeting and convention planning, but also the face of the workforce in substantial positions has
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expanded to include all races and colors. The explosion of growth in the hospitality industry demands highly qualified people trained in hospitality management to fill rapidly opening positions. Although African Americans have had a wealth of
experience in hospitality, it has not always been positive. In the past African Americans have usually performed in low-level managerial positions in hospitality operations holding positions from the lowest realm in service to now having the realistic opportunity of becoming general managers. The present hospitality industry is extraordinarily healthy and viable and as a result offers excellent opportunities for African Americans in each of the segments; restaurant management, lodging management, recreational management, travel and tourism, meeting and convention planning and institutional management. Scott announces good news: the opportunities are there. The globalization of the hospitality industry creates the availability of jobs in virtually every city in the world. Ed Moore, Jr., regional recruiter for Applebee's International says the restaurant industry is a wonderful field to be in, especially in the 90s. He further states, oftentimes young adults think of flipping burgers when they think of the business. That is not all there is to it. There are positions in middle management as well as the corporate office. We are talking about jobs that range from $26,000 to $100,000 plus.
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This industry is very demanding but rewarding and appreciates those who have paid their dues so to speak. Hospitality companies are looking for confident, welladjusted individuals with good communication and interviewing skills. In his role as a regional recruiter, Ed Moore, Jr. states, verbal skills are of concern and that students should learn how to articulate well. However, he continues, one of the glaring areas of concern that I have noticed is students are not ready for the interview. This is something that you will need to practice with an experienced person or professional.
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HOSPITALITY INDUSTRY AN OVERVIEW

Hospitality is all about offering warmth to someone who looks for help at a strange or unfriendly place. It refers to the process of receiving and entertaining a guest with goodwill. Hospitality in the commercial context refers to the activity of hotels, restaurants, catering, inn, resorts or clubs who make a vocation of treating tourists. Helped With unique efforts by government and all other stakeholders, including hotel owners, resort managers, tour and travel operators and employees who work in the sector, Indian hospitality industry has gained a level of acceptance world over. It has yet to go miles for recognition as a world leader of hospitality. Many take Indian hospitality service not for its quality of service but India being a cheap destination for leisure tourism. With unlimited tourism and untapped business prospects, in the coming years Indian hospitality is seeing green pastures of growth. Availability of qualified human resources and untapped geographical resources give great prospects to the hospitality industry. The number of tourists coming to India is growing year after year. Likewise, internal tourism is another area with great potentials. The hospitality industry is a 3.5 trillion dollar service sector within the global economy. It is an umbrella term for a broad variety of service industries including, but not
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limited to, hotels , food service, casinos, and tourism. The hospitality industry is very diverse and global. The industry is cyclical; dictated by the fluctuations that occur with an economy every year. Today hospitality sector is one of the fastest growing sectors in India. It is expected to grow at the rate of 8% between 2007 and 2016. Many international hotels including Sheraton, Hyatt, Radisson, Meridian, Four Seasons Regent, and Marriott International are already established in the Indian markets and are still expanding. Nowadays the travel and tourism industry is also included in hospitality sector. The boom in travel and tourism has led to the further development of hospitality industry. The hospitality 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 is a restaurant; hotel or even an amusement park consists of multiple groups such as facility maintenance, direct operations (servers, 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
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isnt 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 new comers and competitive advantages between current players are very important. and ongoing Among other things, support hospitality industry players find advantage in old classics (location), initial investment (reflected in the material upkeep of facilities and the luxuries located there in), and particular themes adopted by the marketing arm of the organization in question (such as a restaurant called the 51st fighter group that has a WW2 theme in music and other environmental aspects). Very important is also the characteristics of the personnel working in direct contact happiness and wellbeing with the customers. The of the customers that is authenticity, professionalism and actual concern for the communicated by successful organizations is a clear competitive advantage.
In 2003-04 the hospitality industry contributed only 2% of the GDP. However, it is projected to grow at a rate of 8.8% between 2007-16, which would place India as the second-fastest growing tourism market in the world. This year the number of tourists visiting India is estimated to have touched the figure of 4.4 million. With this huge figure,
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India is becoming the hottest tourist destination. The arrival of foreign tourists has shown a compounded annual growth of 6 per cent over the past 10 years. Besides, travel and tourism is the second highest foreign exchange earner for India. Moreover, it is also estimated that the tourism sector will account for nearly 5.3 per cent of GDP and 5.4 per cent of total employment. GDP Employment Visitor Export Personal T&T Capital Investment Govt. Expenditure Outlook for 2006 :- 7.80% 1.40% 10.90% 6.90 % 8.30% 7.70% Outlook for 2007-2016 :- 6.60% 1.00% 7.80% 6.70% 7.80% 6.60% ATITHI DEVO BHAVO (guest is God)we have all heard this phrase many times during our childhood from our parents and grand-parents. We can also find its presence in the earliest Vedas and religious epics. Hospitality is deep-rooted in our traditions and comes as an integral part of our heritage. In very simple terms, hospitality is the art of being warm to strangers and has been derived from the Latin word hospital item, which means "friendliness to guests". The hospitality industry covers a diverse range of establishments in the form of accommodation, food and drinks. It includes hotels, motels, restaurants, bars, ships, airlines and railways. The concept of hospitality business started when people started traveling away on business and they needed a place away from home which could
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cater to all their needs. Today hospitality has evolved from the basic food and accommodation industry and taken a very important position in almost all businesses. In fact, it has become a huge industry and drives economies across the globe. The scope of hospitality/ service industry today is far more than one could have ever imagined a few years back. Earlier people who graduated from a Hotel School could get employed either in Hotels, Cruises or Airlines. But service is the BUZZ word for all businesses today. Be it the Retail Sector, Banking Industry, BPO, Telecom world, Real Estate or any other sector having direct customer contact, a person with hospitality background has an edge above the rest, because of their sheer capability of understanding the needs of a customer better and handling difficult customers/ situations efficiently. Hotel industry depends largely upon the foreign tourist arrivals further classified into business travelers (around 65% of the total foreign tourists) and leisure travelers. The following figures show that business as well as the leisure travelers (both domestic and international) formed major clientele for hotels in 2004.Over the last two years, the hotel industry has seen higher growth rates due to greater number of tourist arrivals, higher occupancy rate (being around 75% in FY'06) and significant increase in average room rate (ARR). The major factors contributing to this growth include stable economic and political conditions, booming service industry, FDI inflow, infrastructure development, emphasis on tourism by the central as well
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as state governments and tax rationalization initiatives to bring down the tax rates in line with the international levels.
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Top players of the industry

The top players in hospitality sector include the following: ITC Hotels Indian Hotels Company Ltd. (The Taj Hotels Resorts & Palaces) Oberoi Hotels (East India Hotels) Hotel Leela Venture Asian Hotels Ltd. Hotel corporation of India
ITDC hotels Some of the main features of the Indian hotel industry include the following:
The industry is more dependent on metropolitan cities as they account for 75% to 80% of the revenues, with Delhi and Mumbai being on top. The average room rate (ARR) and occupancy rate (OC) are the two most critical factors that determine profitability. ARR depends on location, brand image, star rating, quality of facilities and services offered. The occupancy rate depends on other seasonal factors.
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India
is
an
ideal
destination
for
tourists.
Approximately 4.4 million tourists visit India every year. Thus the growth prospects are very high. In the hotel sector, a number of multinationals have strengthened their presence. Players like Four Seasons are also likely to enter the Indian market in the near future. Moreover, Indian hotel chains are also expanding internationally. A combination of all these factors could result in a strong emergence of budget hotels, which could potentially lower the cost of travel and related costs.
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Classification of Hospitality industry
5 Star and 5 Star Deluxe. These are mainly situated in the business districts of metro cities and cater to business travelers and foreign tourists. These are considered to be very expensive. These account for about 30% of the industry.
Heritage Hotels. These are characterized by less capital expenditure and greater affordability and include running hotels in palaces, castles, forts, hunting lodges, etc.
Budget Hotels: Budget hotels cater mainly to domestic travelers who favor reasonably priced accommodations with limited luxury. These are characterized by special seasonal offers and good services. 21
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Unclassified: These are low-priced motels spread throughout the country. A low-pricing policy is their only selling point. This segment accounts for about 19 % of the industry.
Marketing mix in the hotel industry :

A modern hotel is a major establishment, manned by trained personnel from hotel schools an institution of commercial hospitality and a building or an institution where the guest expect refined behavior, excellent services and personal attention In order to market a hotel product the combination of different sub mixes is very important. The combination of core and peripheral services, the creative promotional decision, the pricing strategy that will enable the hotel to maintain the commercial viability, the place and the people are the important decision making areas in the formation of sound mix for hotel industry. THE PRODUCT: The core service / product of the hotel industry which satisfies the basic needs of the customer are the rooms. The role of the industry is to provide basic accommodation facilities. Apart from this there are other tangible elements that are added like room service, laundry etc the other services that can be added are childcare, barber, babysitting, boutiques, currency exchange, in room telephone service, express check in, express check out, florist, front desk 24etc. PRICING DECISION There can be competition based pricing or demand based pricing. Off season discounts can be clubbed with higher rtes during season also. Differential pricing can also be adopted based on the type of client the hotel caters to. PROMOTION MIX
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Promotion schemes should carried on regularly promoting the hotel, the advertising should be done through attractive pictures through travel agents, through hoardings, pamphlets etc. advertisements can also be given on travel guides which are published by the government agencies.
PLACE The place in case of hotel industry must provide easy accessibility in terms of proximity to railway stations, airports etc. it must be a safe and convenient location. The closer the places to such important places, the greater are the chances of business.
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CONTRIBUTION TO INDIAN ECONOMY

The Indian hospitality industry is going great guns presently, with high operating margins and increase in the number of travelers visiting India - both inbound and outbound. Thus, the only direction left for the sector points upwards. However, what needs to be focused on is the fact that opportunities are not missed, which presently includes the large gaps in rooms supply as compared to demand. India has approximately 100,000 rooms only in totality, which is lesser than that in Las Vegas, besides contributing to an insignificant portion of the GDP - just 5.4 per cent says Sudeep Jain, executive director of JLLM. In comparison to nations like China, Thailand and Malaysia where the hospitality share ranges between 12 and 15 per cent, India's growth potential is boundless. "By 2020, the hospitality and tourism sector would be a major contributor to the Indian economy," says Jain. South Asia is and will remain a must-visit destination and India is looking more and more lucrative. Within the nation, major contribution as destinations will be from the growing tier I and II cities with a special emphasis on business hotels across categories as well as the prime leisure destinations like Goa, Rajasthan, etc,
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which will remain on the growth path, creating the aura for India as a leisure destination. Accordingly, the needs of the traveller will be nothing less than perfection. Jain says, "They will be more discerning and more value conscious." With an increase in choices available, they will be less forgiving of service deficiencies. Guests will require higher levels of service in the full-service segments, which will warrant greater training requirements for hotel staff. The limited service hotels will require a complete shift in the perception of customer service. Nevertheless, this is directly related to the travellers' travel persona. "The same person will have different standards when he/she is on a business trip, versus an escape with his partner versus a leisure trip with the family," he explains.
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TRENDS IN HOSPITALITY SECTOR

Trends that will shape the future of hospitality sector are: 1. Low Cost Carriers 2. Budget Hotels 3. Technology 4. Service apartments 5. Loyalty Travel 1. Low cost carriers:
Travelers in general are more price sensitive to airfare than they are to hotel room rates. Often a low airfare will stimulate demand for travel even if hotel prices are increasing. LCCs are a good option for business travelers, as they have advantages like low costs, more options and connectivity.
2. Budget hotels:
More than 50 per cent of occupancy of a majority of hotels comes from the business travel segment. The average room rate (ARR) realized from business travelers is normally
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higher than from leisure travelers. Heightened demand and the healthy occupancy rates have resulted in an increase in the number of budget hotels. Some of the new players entering into this category of hotels include Hometel, Kamfotel, and Courtyard by Marriott, Country Inns & Suites, Ibis and Fairfield Inn.
3.Technology:
Travel and technology have become inseparable.
Technology is making its own advances with high-tech video conferencing facilities, web cameras and virtual reality mode of conferencing. On-line bookings, e-ticketing, Wi-Fi Internet connectivity, easy access to information, etc. are just a few areas where technology has completely changed the way we travel.
4. Service apartments:
The concept of service apartments, though a recent phenomenon in India, is an established global concept. Villas in Spain, flats in the UK and apartment complexes in the US have all created a viable market for those who want more than just a room in a hotel. Service apartments are the latest trend in accommodation, offering the comfort and convenience of a home without the hassles of having to maintain or look after it. Ideally suited for medium-to-long
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staying guests, service apartments are a natural choice for corporate employees or expatriates relocating to a particular city, non-resident Indians visiting the country for long spells and foreigners visiting the city for long durations.
5. Loyalty travel:
Today, airline-credit card company tie-ups have brought a whole range of benefits to the travelers. These include insurance cover, upgrades, free tickets, access to executive lounges, and a host of other goodies.
USE OF INFORMATION TECHNOLOGY IN HOSPITALITY SECTOR

The Internet is changing the way that resorts are marketing their properties. With a lean towards Internet vacation directories, the hospitality industry is making the search for consumers easier than ever. The popularity and growth of the Internet has changed the way many businesses and services are marketed. With the potentially unrestricted access to millions of people, hotel, resorts, and lodges have capitalized on Internet advertising and promotion as a means of adding value to the services they are able to offer; thus, enabling them to cater to a niche market. Those businesses in the travel and tourism sector have benefited tremendously from online advertising, as the
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Internet allows them to economically market in a highly efficient manner. As this market has stepped away from printed pamphlets and brochures as a primary means of promoting tourist areas and hospitality properties, and focused more on online hospitality and vacation internet directories, they have recognized tremendous financial savings due to the market reach being much larger and offering unlimited advertising possibilities as compared to traditional print promotions. As the hospitality industry trend gears towards on online advertising, they have become aware of valuable services, such as vacation directories, that promote a particular resort region or destination. Unlike other marketing mediums, online directories not only allow hospitality businesses to showcase their property to potential customers, they also provide valuable information about the region, information that is not often provided with traditional marketing. Additionally, this industry has recognized the value that vacation directories are able to offer to lesser-known vacation destinations. By utilizing directory hubs, the playing field is leveled; thus, allowing much smaller resorts to compete more readily with larger, well known destinations. Having a solid understanding of the value that online directories offer to both visitors and business owners alike, the directory was created to provide a wealth of area information that is complied into assorted categories for easy access. Featured on the directory are a wide range of area vacation and resort properties, as well as area attractions and activities; thus, making it easy for visitors to find what they are looking for in a vacation, while providing the business owners with an affordable way to market their business. This service has
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shaped the way that the Almaguin Highlands tourist industry functions and will continue to offer many benefits to this region. Vacation directories encourage resort bookings by assisting both resort businesses and vacation seekers alike. Additionally, this service provides hospitality owners with a cost effective venue to effectively promote their property to its best advantage, as well as offering vacationers a source of information on a specific area and allowing for comparative shopping when researching a vacation resort. With the start up the new Almaguin Directory, it is expected that the tourism industry will benefit dramatically, not only through providing affordable advertising, but also through the increased number of tourists that will now be able to experience an area that they may not have otherwise known about.
SECTOR TRENDS AND ISSUES:

Hotels groups are looking at guest profiling leading to frequent lodger programmes allowing guest to take their individual preferences from hotel to hotel with a single guest profile number. Hotels in a particular are now developing E marketing strategies both to develop new business and to retain
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repeat customers. There will be a merging of back office, administration and accounting data with front office customer care and guest histories, all this will link up with reservation, distribution, procurement and supply chain management. Big changes are coming in the way payments are accepted by credit and debit cards. The new system is called chip and PIN and its already in effect starting this year. Increasing numbers of restaurants are turning to more technological methods to speed up the process. Handheld terminals one way of doing this. Consider this: what technology do your guest look for when they arrive in their hotel room? What do they need? What would they like? And what could they do without? For e.g. simply everything the business guest requires has a technology implication from wireless broadband T.V, printers and fax to access internet through T.V. Online marketing strategies including E commerce
development portal and online application development to facilitate and promote service offering, hotel bookings online through company web sites. Investing in property management systems, computer system that links together all the different parts of the hotel. It can be used together information from all those system, such as the phones, restaurants and bar, to calculate guests bill and monitor stock and even staff performance.
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India has become a major tourist destination of the world and it experiences an influx of tourists throughout the year. The 5 star hotels in India are scattered all across the country. The 5 star hotels in India are famed for offering superb accommodation and classic hospitality services. The accommodation at 5 Star Hotels in India are worth reckoning. The facilities at 5 Star Hotels in India conform to the international standards of hospitality. Introduce yourself to the 5 star hotels in India by logging on to www.bestindiansites.com.
tajhotels.com:
Scouting for the 5 Star Hotels in India? Visit the web portal of the Taj Group of Hotels, the 5 star hotel chain of India. Check out the services and facilities offered by the Taj Group of Hotels by taking a tour of this site.
theleela.com:
Check into this portal if you are on the look out for the 5 Star Business Hotels in India. The Leela hotel chain is one of the top 5 Star Hotels in India offering a host of cutting edge facilities for the business travelers and business executives. Navigate through this site and glean detailed information on this famous 5 star hotel chain of India.
mapsofindia.com:
Introduce yourself to the 5 Star Hotels in India by clicking on mapsofindia.com. You will get a comprehensive picture of the 5 star hotels of India by navigating through this portal.
orchidhotel.com:
Enter the web portal of the Orchid Hotel, one of the famous 5 star hotels in Mumbai. Located in Mumbai the Orchid Hotel offers the ultimate in luxury and comfort. Take a look at the services and facilities offered by the leading 5 Star Hotels in India by logging on to this portal
asiahotels.com:
Wouldnt it be amazing if you can find the list of the 5 star hotels in India in a single web portal. Well this portal will offer you comprehensive reviews on the 5 star hotels in India. The USP of this portal is its search box where you can look up for 5 star hotels; it also offers online hotel booking facilities.
jaypeehotels.com:
Drop in at this portal if you are searching for 5 star hotels in Agra. 32
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Browse through this site and acquaint yourself with comprehensive information on the Jaypee Palace Hotel, the renowned 5 star hotel in Agra
ercohotels.com:
The 5 star hotels in India are strewn all across the country; this portal offers a comprehensive picture of the 5 star hotels in India. Search the 5 star hotels in India with the assistance of the search tool box simply by mentioning the city.
hotelsinindia.com:
Scouting for the 5 star hotels in India? Simply click on this portal and equip yourself with detailed information on all the 5 star hotels in India.
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Challenges For Hospitality Industry
1.
Shortage of skilled employees: One of the greatest

challenges plaguing the hospitality industry is the unavailability of quality workforce in different skill levels. The hospitality 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. Though the new investment plan would add 53,000 rooms by 2011, the shortage will still persist.
4.
Intense competition and image of India: The

industry is witnessing heightened competition with the arrival of new players, new products and new systems. The competition from neighbouring Indian countries tourism and negative perceptions about product
constrains the growth of tourism. The image of India as a

HOSPITALITY SECTOR
34 country overrun by poverty, political instability, safety
concerns and diseases also harms the tourism industry.
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STRENGTHS
1. Natural and cultural diversity :

India has a rich cultural heritage. The "unity in diversity" tag attracts most tourists. The coastlines, sunny beaches, backwaters of Kerala, snow capped Himalayas and the quiescent lakes are incredible.
2. 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 privilege 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
3. 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.
4. 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.
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WEAKNESS
1. Poor support infrastructure:

Though the government is taking necessary steps, many more things need to be done to improve the infrastructure. In 2003, the total expenditure made in this regard was US $150 billion in China compared to US$ 21 billion in India.
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.
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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.
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.
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:
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Several international majors like the Four Seasons, Shangri-La and Aman Resorts are entering the Indian markets. Two other groups - the Carlson Group and the Marriott chain - are also looking forward to join this race. This will increase the competition for the existing Indian hotel majors.
Recommendations to the government

The government could constitute a steering committee to review the demand and supply of the human resources in the hospitality industry and prepare plans for developing qualitative human resources which are required for the present day global industry. The committee should constitute with the members from all concerned areas like: State and central tourism development commissioners Representatives from all areas of hospitality industry Members / president / secretary of the hotel
management associations Members / president / secretary of the travel and tourism association Representative from hotel employees associations One member representative from international hotel chain The committee should review the present situation and suggest the steps to be taken to reduce the gap between the demand and supply of human resources in the industry. The committee should concentrate on the following issues mainly: Create a policy on industry institute interaction
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Establish an apex body t coordinate all the management institutes in the country. For conducting common entrance test for all Govt. university / AICTE / private institutes in the country Curriculum development from time to time as industry requirement Fees structure for different courses in different institutes Appoint a committee to identify the requirements of qualified manpower for International Hotels and also identify the ways to develop.
Recommendations to the hospitality industry :

Tie ups with institutes :
It is the duty of the Industry t 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 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 to sponsor some amount / equipment to the institute for their betterment. if possible
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the sponsor a chair for continuous funding and research for that institute .
Research :
Every institute must spend some amount for the research which is essential for further development and understand the present situation. The industry should involve in the researchers by providing timely information and data which is ultimately useful for them only.
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LIMITATION
Generally every research has its own limitations. The limitations of our study are: The data we have collected is all depend on internet/magazine.so,the reliability of data is depend on validity and accuracy of sources. We have not taken any primary data. The content may biased or may not be its depend on sources.
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FUTURE OF HOSPITALITY SECTOR

The hospitality industry is probably the worlds fastestgrowing, job-creating profession, employing one in ten people worldwide. In the UK alone, the industry employs over 1.8 million people. It is estimated that the industry will require 30,000-35,000 trained people at management and supervisory level year on year until 2010, if it is to fulfil its potential. There is enormous scope for those who want to pursue a career in the industry, plus a huge range of employment opportunities across the varied subsectors. You might want to manage a hotel, run a restaurant or become the next Jamie Oliver, or maybe your interests lie in accountancy or information technology. You may want to start your own business or be part of an international one. Whatever your talents, the hospitality industry offers variety and opportunity. Hotels as a product will witness evolution. "As the market becomes more segmented, especially in the mid-market and select service categories, more product types will appear." The driving force behind these will be global brand standards and therefore they will have standard specifications creating a degree of uniformity and standardization in certain limited and mid-market hotel segments. Differentiations in product type will evolve more at the higher end of the market with boutique hotels, resorts, convention centers, etc. The need to differentiate design will play an important role. Various brands and operators will play a larger role in driving design standards, getting involved at early project planning stages.
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"As hotel segments cater to specific demand segments, design typologies will be more customized to suit travelers lifestyle, Equal importance should also be given to green-building concepts in terms of development and operations, which will go beyond cost-saving, placating the demands from both investors and customers. "From the investment side, there will be enough environmentally-conscious investors, who will only invest in green buildings and will also pay a premium for such properties relative to other properties, In addition, 'greenconscious' business and corporate groups will patronize hotels and brands that support green concepts," he further adds. Besides all this, the reliance on technology will move beyond Wi-Fi and internet requirements to tools to support sales and marketing as well as yield management. Even basic interiors will be upgraded with the use of technology like self check-in and information kiosks. This will also revamp sales and marketing as international brands will leverage their central reservation systems and will initiate networks with third party reservation agencies. In addition, systems will become more sophisticated and targeted, customizing sales and marketing efforts for each targeted traveler. However when discussing service, which is the main play of this industry, it has to be understood that the growth phase is still on and the market is currently undersupplied in terms of trained hotel staff to cater to the large supply pipe-line. "A larger number of globally recognized training institutes are required in the country and this is a great opportunity for educational institutions,". To boost up the growth of tourism in India, the government has proposed to invest Rs. 520 crore in 2007-2008. Tourism in
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expected to grow further over the next few years due to the changes taking place on the demand and supply sides. The factors that will account for the further growth of tourism will include the following: Change in standards of living More disposable income Better education Long leisure time Aging population Owing to growth of tourism sector, infrastructure will improve, competition will increase, new products will come into markets and better services will be provided. Due to the rapid growth in tourism, the hotel industry is also booming. Many international players like Le Meridian and Accor are heading towards Indian markets to expand their business. With government's full support in developing infrastructure, increase in demand, open sky policies and increased competition, the hospitality industry is getting consolidated and has many more opportunities to grow further. In 2003-04 the hospitality industry contributed only 2% of the GDP. However, it is projected to grow at a rate of 8.8% between 2007-16, which would place India as the secondfastest growing tourism market in the world. This year the number of tourists visiting India is estimated to have touched the figure of 4.4 million. With this huge figure, India is becoming the hottest tourist destination. The arrival of foreign tourists has shown a compounded annual growth of 6 per cent
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over the past 10 years. Besides, travel and tourism is the second highest foreign exchange earner for India. Moreover, it is also estimated that the tourism sector will account for nearly 5.3 per cent of GDP and 5.4 per cent of total employment.
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Bibliography:

www.google.com www.hotel.com www.scribd.com www.elsevier.com
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PARUL INSTITUTE OF MANAGEMENT

A GRAND PROJECT REPORT ON

In Partial fulfillment of Post Graduate Diploma in Management

PARUL INSTITUTE OF MANAGEMENT

PARUL INSTITUTE OF MANAGEMENT

PARUL INSTITUTE OF MANAGEMENT

We here by declare that the project report entitled