CHAPTER 1

1.INDUSTRY PROFILE

Types of HOTEL’S

HOTEL’S answer to the demand of those millions of travellers each year who need a place to
stay when visiting other cities and countries. That may be only for one night or a longer stay of
week, even months with each visitor having different needs and expectations of the HOTEL’S
services. Some may only need a bed to sleep in for a night, some are coming for a big conference
held in the HOTEL or some are coming to the HOTEL for an all-inclusive five-star holiday.

To answer the different needs of the visitors, there are different types of HOTEL’S, some
offering services targeted to a specific type of customers. HOTEL’S can be referred to for
example as luxury, resort, commercial, residential, transit or in many other ways. Each of these
terms can be linked to what kind of HOTEL is in question, give an indication to the location of
the HOTEL or of the main customer group that uses its services.

RESORT HOTEL’S

A resort HOTEL is located in an optimal environment with attractive surroundings. The idea of a
resort HOTEL is to offer a large mixture of services with entertainment and recreational
activities in a way that everything a tourist may need on a vacation is right there in the resort.
The tourist may never have to leave to the resort during the vacation. These kinds of all-inclusive
holidays are typical for a resort HOTEL. The resorts can also have been built around a specific
theme like a gambling resort or a spa resort.

COMMERCIAL HOTEL’S

Commercial HOTEL’S are usually located in a city centre with its services targeted for business
travellers, convention attendees and vacationers. The location of the HOTEL is convenient for
these types of travellers who can get to the HOTEL easily and get to know the city they are in.

TRANSIT HOTEL’S
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Transit HOTEL’S can be divided into two; airport and motor HOTEL’S. These HOTEL’S are
located, as the name already indicates, near airports and main motorways. Each of them has
similar characteristics for their primary importance for a tourist is their convenient location when
the tourist is going somewhere and needs a HOTEL room on the way. So the main pull factor is
not the HOTEL, but the destination the tourist is going to. The transit HOTEL serves as a pit stop
on the way.

RESIDENTIAL HOTEL’S

Residential HOTEL’S are usually for long-term visitors who are in town for example for
business for a longer period of time. On that account the HOTEL’S are not usually targeted for
tourists, but they may also have some rooms designated for tourists staying only a shorter time
period.

HOTEL Products

A typical HOTEL nowadays offers firstly sleeping accommodation but also food and beverage
services. The bedroom itself is of course the most distinctive product of a HOTEL for that is the
primary function of the whole accommodation industry; to offer visitors a bed to sleep in.
Depending on what kind of HOTEL is in question the HOTEL can also offer other services for
example in a form of recreational facilities and meeting and conference rooms. Aside from
accommodation services that usually are strictly meant only for the HOTEL’S residents other
services and facilities are made available also to non-residents.

There are requirements that usually reflect the main customer demand; sleeping accommodation,
food and drink for individual customers as well as for organized groups. These four requirements
relate to accommodation, restaurant and they function as the principal HOTEL products.

When defining a product an important distinction can be drawn between the core product, the
tangible product and extended product.

As shown in figure 2 the product is a combination of all of them, one supporting the other.

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The core product delivers the main benefits that the customer is seeking. In hospitality industry
the core product usually is the sleeping accommodations. But as different customers have
different needs it is always up to the customer to define what the core product is.

A Tangible product consists of all the physical elements that are necessary so that the core
product can be delivered to the customer. The tangible product includes product features such as
the size and range of facilities, design and quality and service standards.

If the core product is for example a convenient location to enjoy a good night’s sleep the tangible
products can be a comfortable bed, en-suite bathroom and a TV.

Extended products are composed of intangible elements of the product. Many times it is the
intangible elements that make the same class HOTEL’S different from each other and they are
also the elements these HOTEL’S compete with among each

Defining the HOTEL product

EXTENDED PRODUCT

TANGIBLE PRODUCT

CORE PRODUCT

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Others. The intangible elements add value, differentiate HOTEL’S form each other’s and are
meant to provide the customer with additional benefits. The extended product includes elements
such as the people; how well the staff is trained and how well they do their job, accessibility
including opening hours and after sales service meaning for example how well the HOTEL
handles a complaint. Also nowadays more and more important has become elements such as
atmosphere, brand image and corporate ethics.

Classification systems of HOTEL’S

The need for HOTEL classification systems has been growing along side with the growth
of tourism itself and as more information and technology has become available for all people.
With easier information access and wider exposure for services and products, travellers now have
certain expectations when selecting travel arrangements and accommodations. A HOTEL
classification system ensures that the HOTEL the traveller has chosen meets minimum standards
of accommodation, facilities and service. Even though there is no universal classification rating
in place, there is a range of systems that are accepted and widely used in most parts of the world.
Most classification systems are based on criteria that consider such factors as HOTEL size by
room account, facilities, convenience or amenities, quality of service and food and beverage
service. Various symbols and letters, with the most popular being the star rating system, usually
portray ratings.

One star *

One-star HOTEL’S are limited in their services; most of them do not have on-site
restaurant and limited hours may apply to public access and front desk services. The rooms are
very basic and generally small. The rooms may not have a private bathroom or in-room
telephone.

Two star **

Two-star HOTEL’S are identified by basic and clean accommodations, with some business
services (typically without meeting rooms). On-site restaurants have limited menus and typically
consist of continental breakfast service. The rooms are comfortable and they typically include
telephones and a TV. Room service and baggage service are usually not included.

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Three star ***

Three-star HOTEL’S are usually more upgraded and they include more spacious rooms with
quality amenities. The other on-site services include a restaurant with the possibility for evening
dining and possibly even a pool and a small fitness centre. Meeting and conference facilities for
business groups and other functions are sometimes available.

Four star ***

Four-star HOTEL’S are very upscale accommodations, offering excellent restaurants, fine dining,
bars, lounges, and complete room service. Other on-site services include valet parking, concierge
services, fitness centre and several spacious and well-maintained pools. Excellent business
centres and meeting facilities are usually present. Inside the room’s high quality linen, bedding,
flooring and amenities are used.

Five star *****

Five-star HOTEL’S are characterized by the best in luxury, service, location, fine dining and
exceptional convenience and comfort. Generally offered are special guest access to golf courses,
luxury spa services on site, the latest in fitness centre and gym facilities, tennis courts, and
several multiple-purpose pools, concierge services and complete HOTEL services. High quality
can be seen throughout the HOTEL; the rooms, lobbies and other facilities. The service quality is
also very high with professional staff and many 24h services like room service. Excellent
business centres and meeting facilities are usually present in the larger properties.

HOTEL star ratings are general quality indicators and should be seen only as broad guidelines in
measuring a HOTEL’S general quality, amenities, and customer satisfaction; ratings are not
meant to be perfectly precise. Due to differing parameters and criteria used, for example a five-
star HOTEL can mean different things in different countries.

Tourism

Tourism is a relatively new concept in a way that only recently has it been considered
valuable enough to be the object of serious business endeavours or academic study. Tourism has

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become a major force in the economy of the world and recognition of its importance by
governments has accelerated the study of tourism.

Definition of tourism

Tourism is a word with many meanings. It includes many different components and that
is why it is difficult to come up with a meaningful definition that can be universally accepted. It
essentially consists of elements such as activities, services and other industries that deliver the
travel experience. Generally people think tourism to be an industry where people travel to
destinations with different motivations like sightseeing, relaxing on the beach, shopping or
visiting friends and relatives. The World Tourism Organization (WTO) defines tourism as
follows: “Tourism comprises the activities of persons travelling to and staying in places outside
their usual environment for not more than one consecutive year for leisure, business and other
purposes.

Definition of a Tourist

To define a tourist is not a simple matter either; everybody is not the same. People have
different needs and motivations for travelling; they differ for example in personalities and
demographics, and these factors affects considerably on what type of tourist is in question. The
types of tourists can be classified in two basic ways that relate to the nature of their trip. Are the
tourists domestic or international and what is the purpose of their visit?

Domestic tourists travel within their own country of residence, usually without anything
to do with currency exchange, language barriers or visa implications. In contrast, an international
tourist travels outside the country of residence and there may well be currency, language and visa
implication. This distinction between domestic and international tourist is starting to be vague
and more indistinct in some parts of the world through the collaborations of different countries.
For example the European Union has made it possible to travel to different countries without
having to exchange currency or even need a passport.

The other way to classify tourists is by examining their purpose of visit. Conventionally
there are three categories used. Leisure and recreational tourists include those who are on a
holiday, sports and cultural tourist and people visiting their friends and relatives.

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 Another category is “other tourism purposes” where a tourist may be on a study-holiday
or visiting the destination due to some health related issues. Third category is the people
travelling for business and professional purposes and may be taking part for example in a
meeting or a conference.

Accommodation services

When one travels to another city or country, one usually has different needs and demands
for the destination one is travelling to. Trying to meet these needs and demands is what
comprises the tourism industry. The tourism industry can be divided into main sectors;
hospitality, attractions and event, transport, travel organizers and intermediaries and destination
organization sectors. All of these sectors can be thought of as range of businesses and
organizations involved in delivering the tourism product and the travel experience. HOTEL’S of
course are a part of the hospitality sector and as such are major essential supply components of
tourism.

A HOTEL is a place that offers its facilities and services for sale. The services can vary
from just one to various combinations that can all be thought of as a part of the total market
concept of the HOTEL. The basic total market concept consists of five elements as shown in

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figure.

Location is usually the main element, thus being in the centre of the market concept circle
that the visitor takes into account when choosing a HOTEL. Location places the HOTEL
geographically into a certain area; for example near a particular city or village. And if one wants
to go to that specific city one has to choose the HOTEL within that area. Where the HOTEL is
situated denotes the accessibility and convenience of the location, attractiveness of the
surroundings and other factors that the visitor sees as appealing when choosing a HOTEL.

Facilities of a HOTEL include the bedrooms, restaurants, function and meeting rooms
and recreation facilities such as a gym, tennis court and swimming pool. Depending on what
kind of HOTEL is in question the facilities vary in number, type and size. Different visitors have
different needs from the HOTEL and its facilities. The HOTEL services comprise the
availability as well as the quality in which they are provided to the customers in the HOTEL
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facilities. A HOTEL can have services such as 24-hour front desk, concierge and room service.
Depending on what kind of HOTEL is in question the services can vary on how formal or
informal they are, the degree of personal attention and speed and efficiency.

The image of the HOTEL can be defined as how the HOTEL portrays itself to people and
how the people perceive the HOTEL. The image is a mixture of location, facilities and services
the HOTEL offers and how they market those elements but there are also such factors as the
HOTEL’S name and appearance included.

The price comprises the values that are given to the HOTEL through its location,
facilities and image. The price has to indicate all those elements for if they do not or the price is
some other way determined wrong it will only result in unhappy customers who feel like they did
not get their money’s worth.

All in all, these individual elements of the total HOTEL concept hold different level of
importance for different people. One person may regard the HOTEL’S location as essential and
is prepared to accept only basic facilities and services to have it where as another person may
think that the price is the paramount factor when staying in a HOTEL and is willing for example
to give in a little on the location of the HOTEL as long as the price is within the range of that
particular person.

2 ABOUT THE INDUSTRY IN COIMBATORE

Coimbatore, which has a fast-growing industrial sector, strong educational infrastructure,

location advantage and neighbouring towns that have extensive international business exposure,
is all set for a leap in the hospitality sector.

Le Meridien Coimbatore, a Rs. 300 crore project of Appu Hotels, is to open shortly.
Palani G. Periasamy, Chairman of Appu Hotels, spoke to M. Soundariya Preetha on Saturday on
Coimbatore's potential in the hospitality sector and the 256-room, five-star, deluxe hotel.

“Five years ago, when I contemplated the project here, I wanted to create supply.” A number of
international visitors come here and several major and minor companies in this region have

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overseas contacts. Many of the foreign visitors who come to Tirupur, Karur and Erode, stay in
Bangalore and Chennai.

In Chennai, five-star hotels are dependent mainly on multi-national companies,

corporates and the affluent. In Coimbatore, the middle income segment is larger. They have the
spending potential, ability and desire to spend. Now, they have limited avenues. More projects
are likely to follow here in the hospitality sector. This will strengthen the market, he said.

Coimbatore has several engineering colleges and Universities, the Tidel park, etc. The
city has a good mix of consumers and creation of such luxury products is the need of the hour.
This is the second-tier development of hospitality sector. Development of this country is in the
tier-two cities. Pune has emerged as a big business centre. “This is another Pune,” he said.Le
Meridien Coimbatore is spread across a 6.75 acre plot. It is a nine-storeyed hotel with a total
built-up area of seven lakh sq.ft. It has a ball room with a seating capacity of more than 2000, an
exclusive spa and health club of 30,000 sq.ft for the entire family, three restaurants (Italian, India
and All Day dining), and a parking space for more than 500 cars. The nearly 40-metre high
chandelier is imported from Italy and will be visible from outside. An entertainment centre is
also planned. The hotel is service and quality-intensive. “We bring five star luxury, comfort and
resources to Coimbatore population which I consider has a lot of spending potential. This is an
urban resort,” he said.

3 ALOFT HOTEL PROFILE

Aloft Coimbatore, Singanallur is conveniently located in the second largest city in South
Indian state of Tamilnadu, a Major Textile and engineering hub of south India. The hill stations
of Ooty, Coonoor and Valparai are close to the city making it a good tourist attraction throughout
the year. Aloft Coimbatore, Singanallur is located 5 Kms from the Airport on the Kamaraj Road,
Near Tidel Park Corporate offices galore, 2 Kms from the CODISSIA Convention Centre
,shopping and more are all close by.

Hotel Amenities

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  Free Wi-Fi connectivity
 LCD TV with multi-channels
 Telephone
 Direct dialing facilities
 Electronic Safe
 24Hrs Room Service
 Mini Bar
 Swimming pool
 Laundry service
 Valet Parking
 24-hour Security
 Car Rental
 Travel desk
 Airport pickup and drop on request
 Max. 2 Children below 12years will not be charged

Hotel Policy and Rating

 Check in : 12:00PM
 Check out : 12:00PM
 Hotel Rating :

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 Photo Gallery

CHAPTER 4

FUNCTIONS OF VARIOUS DEPARTMENTS

 Marketing department

 Finance Department

 Human resource Department

 Accounts Department

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 4.1 MARKETING DEPARTMENT

ROLE OF MARKETING IN HOTEL INDUSTRY

A marketing manager in the hotel industry is responsible for maximizing a hotel's

revenues by developing programs to increase occupancy and make profitable use of its
accommodation, meeting and leisure facilities. A hotel marketing manager must maintain
awareness of the factors that influence the hotel industry and gain a deep understanding of the
needs and attitudes of a hotel’s customers. A hotel marketing manager will be responsible for
coordinating marketing and promotional activities to meet customer needs, working closely with
other hotel staff to ensure customers are satisfied with the facilities and their time there.

Customers may choose a hotel on the basis of its location; its access to road, rail or air
travel; its meeting facilities; its reputation for hospitality; or its price. As a marketing manager,
identify the factors that shape your hotel’s appeal to customers. Monitor customer reviews on
own website or on hotel booking sites to identify the strengths and weaknesses of your hotel.
Speak to guests in person or in follow up calls. Review travel industry research to identify trends
that could affect your hotel, such as increasing demand for low-cost family accommodations, or
fuel prices, or better facilities for business travellers.

Awareness
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 As marketing manager, must make it easy for customers to find out about hotel. Website
should include up-to-date guest information on hotel facilities and rates, travel and location with
detailed information on meeting facilities for event organizers. Post hotel details on destination
websites and online booking sites to increase reach target audience. Collaborating with other
meeting venues to offer their delegates accommodations or meeting space can give access to
other potential customers.

Promotion

Developing promotions is an essential part of hotel marketing, need to increase

occupancy during times of the year when bookings are low. Running special events such as
gourmet weekends, or offering incentives such as one night’s extra accommodation when
booking for a period, can help to attract more guests. If hotel has conference rooms, need to fill
them when events are not taking place. Consider offering meeting rooms to local businesses for
short-term use.

Customer Relationships

To build a stable revenue base and ensure high levels of repeat business, need to develop
strong customer relationships. A customer loyalty program that rewards customers who book
regularly will benefit hotel and customers. Target the program at individual guests or at corporate
customers who require regular meeting facilities or accommodation for large numbers of
travelling staff or visiting customers.

Marketing

Marketing is often thought to be only selling and advertising. However, marketing

consists of many other functions that can be seen far more important than just the exchange of
goods.

The American Marketing Association defines marketing as follows:

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“Marketing is the activity, set of institutions, and processes for creating, communicating,
delivering and exchanging offerings that have value for customers, clients, partners and society
at large.”

Today, more than ever, marketing has put emphasis on satisfying the customer needs. The
customer tends to make decisions on buying a product or a service based on their perception of
the value and satisfaction that the product or service delivers. From the HOTEL’S point of view
the goal of marketing is to first build and then manage profitable customer relationships. In order
to achieve this it is not enough only to first market the product and then sell it but make sure that
the product being sold will meet the standards and be enough to fulfil the customer’s
expectations. Therefore the HOTEL must be aware and understand their customers; their needs,
wants and demands. That is why many HOTEL’S put a lot of effort and money into making
different kinds of customer surveys analyzing their customers’ behaviour and learning about the
different way of delivering the superior customer value and satisfaction.

Marketing mix

The marketing mix is one of the major concepts in modern marketing and is often
brought up in general discussions of marketing. Marketing mix is a set of marketing tools that a
HOTEL uses to pursue its marketing objectives in the target market. When a HOTEL is making
decisions on marketing they generally fall into four controllable categories known as the 4 P’s:
product, price, place and promotion. In Kotler’s Marketing mix chart the target market is placed
in the middle. The main idea of marketing is to influence and persuade the consumer to buy and
use the HOTEL’S product or service. In order to get customers to do so a HOTEL uses the four
P’s as a mixture in order to influence the demand for its products.

In the hospitality industry the products are primarily designed to satisfy the needs and
wants of business and leisure travellers. As part of the marketing mix for example a HOTEL
room can be seen as a product that the HOTEL sells to consumers. HOTEL rooms can vary in
quality or in services they offer and is targeted to consumers who usually have the need for a
specific type of room. For example a businessman can have different kind of needs from a
HOTEL room than a leisure traveller.

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 In the hospitality industry the place of business is many times the key to success. A
HOTEL’S location is important for visitors and therefore they usually examine carefully which
HOTEL and where they choose. The location of the HOTEL affects the transportation
possibilities, how accessible it is for example from the airport or the city centre.

Pricing decisions influence the demand and profitability. In a HOTEL setting for example
the rack rates and agreeing to discount for key accounts are crucial and require a lot of attention
and careful consideration.

Promotion is usually the function of most marketing and sales departments and it
includes all the tools that a HOTEL can use to communicate with customers. A HOTEL can for
example use different websites to advertise their products and services and also use brand
identification to their advantage. Brands help consumers to identify what the product or the
HOTEL is, for example people relate the Hilton HOTEL chain with luxury and good quality.
That helps the HOTEL chain when they are planning their marketing strategy.

Market segmentation

In marketing it is almost impossible to succeed by handling all the consumers as a big

“one size fits for all” mass. Market segmentation recognizes that people differ in many ways like
in their needs, attitudes and lifestyles. Through market segmentation companies divide their
market into smaller segments. All of the segments have specific needs and by dividing the
market those needs can be met more efficiently with products and services that match their
unique needs.

There are many ways to segment a market. Different segmentation variables are used,
both alone and together, in order to classify consumers into different segments. Kotler defines
four major variables that are generally used in marketing; geographic, demographic,
psychographic and behavioural variables.

Geographical segmentation divides the market into different geographical units such as
cities, regions, countries or climate and population density. By this way when a HOTEL is
deciding which units to operate and market, they can pay attention to geographical differences in
needs and wants. For example a major clothing store chain can pay attention to their selection in

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stores in northern areas where it is colder and the need for warmer clothes is greater than in areas
located more south.

Demographic segmentation consists of dividing the market into groups based on

variables such as age, gender, family size, income, occupation, education, religion, race and
nationality. Demographic factors are the most popular bases for segmenting customer groups.
This is partly because customer wants are closely linked to variables such as income and age.
Also, for practical reasons, there is often much more data available to help with the demographic
segmentation process.

Psychographic segmentation divides the market into different groups based on social
class, lifestyle or personality characteristics. People can be in the same geographical segment
meaning that they may for example live in the same city; they can even be of same age. But one
may be a student and another worker. This affects their lifestyles greatly and therefore also has
an effect on the buying behaviours of the people.

Behavioural segmentation divides buyers into groups based on their knowledge, attitudes,
uses and responses to a product. Behavioural segmentation has the advantage of using variables
that are closely related to the product itself. When a HOTEL knows when and why customers are
buying their products, they can link their marketing to that. For example some holidays like on
Valentine’s Day or at Christmas people tend to buy certain things related to the occasion; many
companies prepare special offers and advertisements for those holiday occasions. In hospitality
industry these same segmentation variables can be used but there is also a wide range of
subgroups that for example almost all of the HOTEL’S use. HOTEL’S usually use only one
variable when segmenting these subgroups and that is the purpose of travel. By defining the
purpose of travel HOTEL’S can classify many subgroups such as corporate/business clients,
visitors on group package tours, independent and leisure vacationers. By acknowledging
different segments a HOTEL can target their services more effectively.

Relationship Marketing

Relationship marketing is a form of marketing that emphasizes customer retention and

satisfaction. It switches the focus from the recruitment of new customer to the retention and
recovery of existing ones. Relationship marketing differs from other forms of marketing in that it
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recognizes the long-term value of customer relationships and extends communication. The world
of marketing today is more customer-centered. As companies must compete in a more
competitive marketplace they have to know their customers’ needs and wants in order to get new
customers, then keep and grow them by delivering greater value for them.

When planning g a relationship marketing strategy one must take into account that not all
customers want a relationship with the HOTEL. That is why it must be carefully considered
which types of customers are usually more likely to repeat their visit in a HOTEL or a restaurant.
Some customers are aware of the wide choice of competitor products and services and do not
want to limit their options and tie themselves only to one HOTEL but prefer to switch their
custom accordingly. Other customers are not interested in any type of relationship with any
HOTEL; they simply look at the best quality, value and convenience available at the time of
purchase.

Building close relationships with key customers should be mutually rewarding for both
the customer and the HOTEL. For example to companies that have a lot of employees working
on the road and moving constantly HOTEL accommodation becomes a major expense. That is
why it is profitable for the HOTEL to choose a particular HOTEL or a HOTEL chain and arrange
a fixed price for their employees staying at the HOTEL. That price is usually lower than the
regular rate in the HOTEL so the HOTEL saves money and the HOTEL gets a steady income
from the HOTEL’S employees staying there.

Different stages of customer ship

When planning relationship marketing it is important to know which ones of the

customers are regulars, who are staying at the HOTEL just for that one time and who visit the
HOTEL on more irregular bases? In other words, it is important to know your customers. When
developing relationship marketing there are different classification systems that can be used to
define customers. At simplest customers can be divided into four different categories. First are
the loyal customers who purchase the HOTEL’S services regularly. Second are the customers
who purchase the services and products occasionally but also use competitors’ services. Third are
the “not yet”-customers who have been targeted by the HOTEL’S marketing but have not yet

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purchased their services. Fourth are the customers who used to use the HOTEL’S services but are
no longer, for some reason, doing so.

Depending on which category the customer belongs to the marketing strategies are very
different. A HOTEL does not necessarily market their services to loyal customers in the same
way as they do to occasional customers. The main objective when planning marketing to loyal
customers is to ensure the continuity of the customership by keeping the loyal customers happy
and invest in direct marketing. When dealing with occasional customers it is important to start
forming that long lasting relationship for example by targeting the market efforts to sell the loyal
customer’s program. The potential “not yet” customer should be enticed to use the HOTEL’S
services for example by marketing some special offers.

Marketing of HOTEL Services

There are numerous challenges that companies face and have to deal with when
marketing their products and services. Hospitality industry is no exception and for example
HOTEL’S have to be aware of the many different special characteristics that affect their
marketing.

Seasonality, which refers to the fluctuations in demand, is one of the biggest

characteristics and is something the HOTEL’S have to be aware of when marketing hospitality
and accommodation services. Depending on what type of HOTEL is in question the biggest
demand might be generated for example by businessmen in the middle of the week or by
independent travellers during the weekends. Not only different days of week but seasonality are
affected also by different months or seasons of the year and even different times of the day.
Many HOTEL’S face the challenge of keeping profitability high and stable throughout the year
with no under- or over- utilization of their capacity. The profitability often suffers during low
season periods; this is why marketing has big responsibility to increase the demand during low
seasons and even out the demand throughout the year.

In the hospitality industry and especially in the HOTEL industry the services are often
intangible. This means that the customer cannot experience the service or product in any way
prior to it being purchased. For example the customer cannot stay overnight at a HOTEL and
decide in the morning not to pay for the HOTEL was not exactly to his or her liking. The
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intangible nature of the products creates difficulties for marketing; customers often find it
difficult to assess the quality of the product before having experienced it for real. That is why the
customers have to be provided with information that is accurate and truthful but at the same time
encourages the customer to choose that specific product or service. At the same time marketing
should not raise customer expectations too high for that will only result in failing to deliver
customer satisfaction.

Internal marketing

As a part of the marketing mix promotion has an essential part in reaching marketing
objectives in a HOTEL. Internal marketing is an extension of that as it recognizes the importance
that employees have while encountering customers. This puts an emphasis on the customer-
contact employees and how well they are able to deliver the promises made during the pre-
encounter marketing. Human resource managers in HOTEL’S are using marketing techniques
more and more to recruit communicative and motivated employees. It all comes down to
delivering service quality in a way that the customer is satisfied. It starts from the marketing of
the products prior the customer has even made the decision to make a reservation. But after the
reservation has been made the customer-contact employees have the biggest role in delivering
the promised product. In order for a HOTEL to succeed in delivering service quality it has to
have motivated employees who know what they are selling. The goal of internal marketing is to
attain the best possible professional skills available.

A HOTEL needs employees who have “the right service attitude” for attitude is
something that can rarely be taught as it usually comes naturally. If the employees do not have
the right attitude towards their work and serving customers they can be the weakening link in the
management’s efforts delivering the service quality. After an employee has been hired the
emphasis moves to the managers and co-workers for every HOTEL has its own service culture,
operating systems and service standards. And it is up to them to teach the new employee and give

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the best possible tools for him to learn the job. This is called induction training and how well a
HOTEL succeeds in it plays an important role in how well the HOTEL works inside and out. The
training should not end after the induction but continuous training and career development are
usually marks of the most successful hospitality HOTEL.

As an employee is working he need both good guidelines as well as some boundaries to

work within. If the induction training has not been successful and if the employee is not sure
what he is authorized to do it can result in unhappy customers. It has to be clear what customer-
contact employee can do in responding to customer requests and complaint. What a HOTEL has
empowered the employees to do differs in many HOTEL’S but mainly it is most successful when
the employee has been given the authority and responsibility to solve problems and react to
customer requests without always having to get a second or third co-worker involved. Customers
appreciate speedy solutions, especially when complaining and do not like having to repeat their
complaints to several different employees.

There are problems with empowering employees. If the employees have not received
appropriate training and resources to make correct decisions or some employees do not feel
comfortable taking responsibility at all.

To be able to sell the products and deliver the service quality it is not only important that
the employees are trained and they have all the necessary information. It has also been shown
that employees are more motivated when they are regularly informed about the HOTEL’S
current situation and future plans. This makes the employees feel more involved with the
HOTEL.

A HOTEL can reward its employees for good work and there are many reward systems in
place in larger HOTEL chains. Employees may receive benefits such as bonuses, tips or meals
provided for free of charge. These are tangible benefits that are given to the employees but they
can also receive intangible benefit in form of excitement, fun and teamwork that many
hospitality employees enjoy. It also brings good energy and a sense of pride when customers give
good feedback and it also motivates employees to keep the service quality high.

Distribution channels

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 The main objective of distribution in hospitality industry is relatively simple; to use
different channels to find customers or more importantly to help customers find the HOTEL and
make the booking or purchasing as easy as possible. There are numerous different channels that a
HOTEL can use to reach their customers. When the HOTEL is choosing which channel to use it
is important to know their target market. Do their customers use internet so that the HOTEL
should put the emphasis on using it as their main distribution channel or their customers prefer to
turn to a travel agent to help with their travel arrangements?

The most cost effective distribution channel is “direct to customer” where the HOTEL
communicates with the customer directly with no intermediaries. It is most effective when the
customer makes the booking directly at the HOTEL’S front desk. This is more and more used
with repeat customers who can for example make the next reservation for themselves as they are
checking out. The internet has also brought new direct ways to be in contact with the customers.
Usually HOTEL’S have their own websites where customers can make reservations directly to
the HOTEL via the website. Many bigger HOTEL chains also have their own computerized
reservation systems (CRS) where the customer can call or go to their website and make a
reservation to any of the chain’s HOTEL’S anywhere in the world. Another cost effective
distribution channel that bigger HOTEL chains can use is “referral network” which means that
the HOTEL’S within the same chain market each others. There can be for example brochure
racks in the HOTEL reception or HOTEL directories in the rooms. The objective is that all of
these brochures market the other HOTEL’S within the same chain or HOTEL group.

Many times HOTEL’S use intermediaries in their distribution channels. This means that
the communication is not directly between the HOTEL and the customers but there is some other
HOTEL in between, for example travel agents or tour operators. A travel agent helps customers
in all aspects of travelling; they make bookings, provide tickets and accommodation vouchers.
The main idea is that the travel agent works on the customers’ behalf concerning the travel
arrangements. Travel agencies can be in co-operation with different airlines or HOTEL’S and the
products and prices are stored in databases and manual directories. The customer does not pay
for the services to the agent but for example a HOTEL pays the travel agent commission. A tour
operator differs from a travel agent in a way that the operator gets paid by the customer and does
not receive commission. Tour operator negotiates bulk allocation of seats from airlines and bulk

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accommodation from HOTEL’S and creates a package product of them. The package products
are then marketed directly to customers. A tour operator makes a profit by charging the customer
more than the rates given by the airlines and HOTEL’S.

Development of information communications technology (ICT) with the growth of the

internet and powerful computerized systems has had a significant influence on the whole
distribution network. The internet has both provided a direct channel between the customers and
companies as well as increased the choice of different channels through which a travel booking
can be made. The internet is getting larger part in direct marketing but at the same time new
online intermediaries have emerged offering services similar to those of the traditional tour
agents and operator. As a customer goes online to a website offering different flight and HOTEL
bookings like booking.com or HOTEL’S.com they make a reservation there but do not pay the
reservation to the website but to the HOTEL. The HOTEL then pays a commission to the
website.

Benefits of using different distribution channels are that the HOTEL can more effectively
reach their customer and they also provide convenient global access point for customers. Also it
is more and more common when a booking is made that the customer has to pay for the
accommodation immediately before arrival. This is an effective way to make advance sales,
which is important when selling perishable products such as HOTEL rooms. Many distribution
channels of course cost money to the HOTEL for example in a form of commissions.

Marketing Plan

A marketing plan is a written document that can be thought of as set of decisions about
what the HOTEL wants to achieve and how it is going to achieve it. Essentially a marketing plan
sets a goal that is accompanied with strategy and tactics outlining how that goal will be achieved.
In general there are two different kinds of marketing plans; strategic and tactical. Strategic
marketing plan is more general and is focused on long-term goals; usually for a minimum three
to five- year term. It is not as detailed as a tactical marketing plan and it deals more with the
external environmental influences and opportunities and less with details of the HOTEL’S
marketing activities. Tactical marketing plan differs from strategic plan in both timeframe as well

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as content. Typically it operates within a short timeframe, usually from one year to no longer
than three years.

There are many benefits for a HOTEL by having a marketing plan. Especially with larger
companies they are essential but for smaller companies as well. Often in smaller HOTEL the
marketing plan may only exist in the mind of the owner and there is no written document of the
marketing efforts done by the HOTEL. To provide clear direction to the marketing operations
that are based on a systematic and written approach usually benefits both the management and
the employees of the HOTEL. Everyone has a clear image of the goal and all the employees can
actively be part of achieving that goal. This eliminates confusion and misunderstandings and
coordinates the resources of the HOTEL.

Not having a marketing plan will result in a wide range of possible consequences. For a HOTEL
this could for example mean a failure to take advantage of potential growth markets and other
new marketing opportunities and demand problems during low-season periods. These very much
affect the profitability of the HOTEL and therefore having a marketing plan, even though it does
not guarantee success, it eliminates many risks as well as makes the HOTEL more prepared and
less vulnerable.

The construction of the marketing plan is characterized by a wide range component each
with its own heading. They provide a framework that presents an analysis of where the HOTEL
is now, where they want to go and how to get there. Not all of the components appear on every
marketing plan.

Situational analyses

The premises for marketing planning are to have credible background data about the
HOTEL’S situation in the market. The main goal is to assess where the HOTEL is now; what is
its current marketing situation. Mainly all of the situational analyses can be divided into two
parts; external and internal. The external analysis usually includes data about the HOTEL’S
business environment such as competition. The main element for the external environment is that
it includes all the factors, which the HOTEL has no control over, but they still affect the
HOTEL’S operations. These factors can also be defined as macro-environment, which includes
for example major regional, national and global trends and other factors influencing the business.
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The factors are often listed under six different headings; political, economical, social,
technological, legal and environmental. The idea of analyzing these factors is to make the
HOTEL more prepared for change as they help when analyzing potential opportunities and
threats. When assessing internal situational analysis it usually includes data about the HOTEL’S
products and distribution situation. When assessing the product situation one can for example
asses the sales figures, prices and net profits of the products from several past years. Or when
looking more closely at the existing distribution channels one can determine which channels
have been successful and what channels maybe are not yet utilized. The function is to assess
aspects of the HOTEL’S operations with the aim of establishing what the business is doing well
and which parts of the business are performing poorly. This way the HOTEL can determine its
strengths and weaknesses.

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 4.2 FINANCE DEPARTMENT

Finance in general is the “Life Blood of any organization”. Finance is required for
meeting the day-today. No business enterprise can be started and run smoothly without finance.
Finance is required for purchasing of machines, Packing Material, etc. Finance is needed to pay
salaries to employees and also for staffs.

The Finance can be borrowed, from shareholders, banks and other financial institutions
also from the internal and external sources.

The firm arises fund from banks also. The firm maintains the fund by proper utilization
for necessary things. Finance department helps the Accounts department by pay the amount to
the suppliers. It pays the amounts to the accounts departments. When they are in need of money
yearly budgets are prepared and a separate finance manager is appointed to control the Finance
department.

MAINTAIN BOOKS AND FILES

 Cash book and bank book

 Sales register and purchase register
 Ledger Accounts
 Trial balance
 Profit and Loss Account
 Balance Sheet

CASH BOOK AND BANK BOOK

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 All sums of money received and expended by the Hotel.

SALES REGISTER AND PURCHASE REGISTER

All Sales and purchases of goods by the Hotel.

LEDGER ACCOUNTS

The ledger holds account information that is needed to prepare financial statements and
includes accounts for assets, liabilities, owners' equity, revenues and expenses.

TRIAL BALANCE

(i) Trial balance is a summary of all ledger balances cash and bank balances on a
particular day. In a Trial balance, Debit side and Credit side should always Tally.

(ii) Profit and Loss Account and Balance sheet is prepared from the Trial Balance.

PROFIT AND LOSS ACCOUNT

(i) Profit and Loss Account is prepared from the Revenue income and Revenue
expenditure items in the Trial Balance.

(ii) Profit arises when revenue income is in excess of revenue expenditure.

(iii) Loss arises when revenue expenditure is in excess of revenue income.

BALANCE SHEET

Balance Sheet is the statement reflecting the Assets and Liability position of a concern on
any particular date.

Books of Accounts of the company and vouchers to be kept safely for a period of 8 years.

ACCOUNTS

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 All the accounting transactions and accounts are maintained by the accounts department.
In a nutshell, accounting, as a whole, accounts for such activities as maintenance of files of data,
analysis and interpretation of data, and preparation of multiple types of reports. The entire
invoice that is being used by the company is filed up separately by the company. The invoice
contains information like the purchase order number, date, issued number, date, type of
transaction, vehicle number, number of the items sent, name of the person who created the
invoice etc. all this information is then entered in the accounts of the company.

A separate journal and ledger book is also maintained by the hotel. When a sale is made a
sales report is created. The sales report contains information like the name of the company to
which sales was made, the date, the net amount of the product, the tax and duties payable and the
total amount payable by the sales department and another copy is maintained by the accounts
department.

Needless to say, finance and maintenance of accounts are the life blood of any
organization. All the accounts of the company accounts are maintained by separate person. All
the credit and cash transaction are recorded in this department. The main function of this
department is to verify all the financial transaction. Computerized accounting system is followed
by the company.

Each and every expense should be analyzed and if there are any possibilities to reduce that
cost it must be informed. One of the main duties of accounts department is it should check each
and every bill.

o Accounts are entered based on DOUBLE ENTRY book keeping system.

o Stocks are valued on FIFO basis.

o The company uses Tally 9.0 accounting packages.

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 4.3 HUMAN RESOURCE DEPARTMENT

The main and the foremost objective of this department is to improve the efficiency of the
employees. This department is headed by the HR manager, who in turn assists the chief manager
and the managing partner on various areas related to recruitment and selection of the employees.
Requirements of the training needs, if any is discussed in the monthly meetings and it is brought
to the notice of the top management. Human resource department maintains the records in
systematic manner. This department controls all human resource managerial functions such as.

Role and responsibility

To provide attendance details.

To calculate performance appraisal.

To provide welfare facilities.

Recruitment and selection process.

In the human resource department, the records are maintained in a systematic manner. This
department controls the human resource managerial functions such as;

Recruitment

Induction and orientation

Training

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 Promotion

Motivation

Rewards

Welfare facilities to the employees.

The performance measure for each department has been identified and the effectiveness of the
training given is understood from the data of department’s performance measure. It maintains
full details of the employees and records of the trainings are also maintained in the employee’s
profile. The annual increment is based on the performance and the period of stay in the
organization. The wages are given to the employees on time rate or shift basis and piece rate
method. The salaries are given to the staff on monthly basis. Apart from this basic pay it provides
various benefits like

 ESI
 PF
 Medical Allowances
 Transport Allowances
 Leave wages for 9 days per year.
The five important key functions performed by this department are

 Recruitment
 Selection
 Training
 Evaluation
 Motivation
RECRUITMENT

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 The HR manager recruits employees on the basis of the skills required. He
follows both internal and external recruitment. To have a good recruitment the company
advertises through the local news papers and by placing wanted boards in front of the company.

SELECTION

The HR manager selects the candidate based on their skill and performance during
the test period. Selection is made after interviewing 5 or more candidates for the particular job.
Usually for the blue collar candidates the interview session is conducted by the HR and the chief
manager. For white collar workers the top management also participates during the interview and
the selection phase. As the company follows all the industrial norms it does not select or
encourage child labors.

TRAINING

Training is given to both the existing and the new employees. The supervisors or the
experts train the employees on the basis of the job requirement. It follows on the job training,
apprenticeship training to uplift the performance of the employees.

EVALUATION

Performance is evaluated on the feedback obtained from the supervisors of the

various sections.

MOTIVATION

This department also provides good motivation to the employees relating to their
work as well as the personal matters by giving financial assistance and counseling during the
time of urgency.

The HR department takes personal care on the welfare measures of the employees by
providing various facilities like:

 Canteen facilities
 Drinking water
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  Hygienic toilets
 Rest rooms
 Fan facilities
 Washing facilities

Apart from these, it also takes care of the safety measures like providing

 First aid boxes

 Fire extinguishers
 Emergency exit
The HR manager of the company comments that by performing these functions effectively, it
paves way for the success of both the organization as well as the employees there by making the
dreams come true.

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 CHAPTER 5

CONCLUSION

On the concluding part of my study, I had learned many ideas and Techniques in the
field of hotel industry . The people in this firm had helped many more in every way to
complete my training. In this firm the relationship between the Management and labour is
cordial. I learned a practical knowledge about the functions of the various departments of
hotel.

The whole training period was very interesting, instructive and challenging.
Through this training I can able to gain new insights and more comprehensive
understanding about the real industry working condition and practice. All of this valuable
experience and knowledge that I have gained were not only acquired through the direct
involvement in task given but also through other aspect of the training such as work
observation, interaction with colleagues, superior and others third party related to the hotel.
As a result of the program now I am more confident to enter the employment world and
build my future career.

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