INDEX

SR. NO.
1. 2. 3. 4. 5. 6. 7.

CONTENTS

PAGE NO.
1 2 5 4 5-7 8-9 10-11

Acknowledgment & Objective Introduction History Current scenario Scope, competition and leaders Scope in rural areas Future prospects

8.

SWOT Analysis

9.

Marketing mix in the hotel industry :

Bibliography

12-13 14-15

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ACKNOWLEDGEMENT

We the students of TYBMS B would like to express our sincere thanks to ---------------------------------for giving us the opportunity to work on such an interesting project. We are grateful to K.Jayaraman, The Personnel Manager, HR Dept, The Leela Kempinski, Mumbai for treating us with hospitality & giving us overwhelmimg response.

We are thankful to Mr. S. Vidyashankar, The Assisstant Manager, HR dept, The HYATT Regency, Mumbai for giving us his precious time & for the positive response. We hope that u find our project interesting and upto the mark.

OBJECTIES OF PROJECT:-

To analyses the role and need of Hospitality & Catering as it is an upcoming era of Hospitality.

To know how Hospitality can be beneficial in growth of Indian economy. To know about the emergence of Hospitality industry in International market. 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.

HYATT REGENCY GRAND CAYMAN

INTRODUCTION GLOBAL HYATT CORPORATION There are 215 Hyatt hotels and resorts (over 90,000 rooms) in 43 countries around the world, operating under the Hyatt, Hyatt Regency, Grand Hyatt, Park Hyatt, Hyatt resorts, Hyatt place, Hyatt vacation club and Summerfield Suites. Brands. Currently, there are an additional 38 Hyatt hotels and resorts under development, including 13 new hotels in China. Hyatt Corporation (domestic U.S., Canada and Caribbean hotels) and Hyatt International Corporation (international properties) are subsidiaries of Chicago-based Global Hyatt Corporation. Global Hyatt Corporation is also the owner of Hyatt Vacation Ownership, Inc. (timeshare), Hyatt Equities, L.L.C. (hotel ownership), and U.S. Franchise Systems, Inc.

HISTORY OF HYATT CORPORATION Hyatt Corporation opened its first hotel on September 27, 1957. Hyatt's first property at Los Angeles International Airport was originally named Hyatt House. The owner of Hyatt House was a local entrepreneur by the name of Hyatt R. von Dehn. Hyatt hotels expanded aggressively along the West Coast during the next decade. However, it wasn't until 1967, when Hyatt Corporation opened the world's first atrium hotel that the Hyatt name became known worldwide. The hotel's 21-story atrium tower lobby and dramatic departure from traditional hotel architecture changed the course of the lodging industry. The challenge to hotel architects was no longer to eliminate extra space; rather, to create grand, wide-open public spaces. By 1969, there were 13 Hyatt hotels in the United States. That year, a subsidiary of the newly formed Hyatt International Corporation opened the first international hotel, the Hyatt Regency Hong Kong. Hyatt Regency hotels are the core brand of Hyatt Hotels & Resorts, offering guests opportunities to broaden their horizons. The Grand Hyatt and Park Hyatt brands were introduced in 1980 to further identify and market the diverse types of Hyatt Hotels & Resorts worldwide. Grand Hyatt hotels serve culturally rich destinations that attract leisure and business travelers as well as large-scale meetings and conventions. Park Hyatt hotels are the company's smaller, luxury hotels designed to cater to the discriminating individual traveler seeking the privacy, personalized service and elegance of a small European hotel. They offer a sense of sanctuary and luxury. Since the opening of Hyatt Regency Maui in 1980, Hyatt Hotels & Resorts has become known as a leader in the creation and operation of dramatic luxury resorts as well.

CURRENT SCENARIO

Economic liberalization has given a new impetus to the hospitality industry. It costs an average of US$50-80 million to set up five-star hotels with 300 rentable rooms in India. The gestation period is usually between three and four years. Movements in real estate prices have to be watched, though they have stabilized in the past three years or so. Non-five-star hotels are obviously cheaper and have had smaller gestation periods, but international chains are expected to go into the five-star category. The Indian hospitality industry is growing at a rate of 15 percent annually. The current gap between supply (61,000 rooms) and demand (90,000 rooms) is expected to widen further as the economy opens and grows. The government forecasts an additional requirement of 200,000 rooms by the turn of the century. A rapidly growing middle class, the advent of corporate incentive travel and the multinational companies into India has boosted prospects for tourism. India's easy visa rules, public freedoms and its many attractions as an ancient civilization makes tourism development easier than in many other countries. Many foreign companies have already tied up with prominent Indian companies for setting up new hotels, motels and holiday resorts. The entry of McDonald's, Pepsico's Kentucky Fried Chicken, Domino's and Pizza Hut have given an international glitz to the hospitality sector. Several international chains including Sheraton, Holiday Inn, Intercontinental, Hyatt, Radisson, Best Western, Days Inn, Hilton, Quality Inn, Ramada Inn, Meridian, Kempenski, Four Seasons Regent, Accor, and Marriott International are entering or expanding their hotel network in India.

SCOPE
The hospitality industry is probably the worlds fastest-growing, 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 are currently too few students taking college and university courses in hospitality to sustain this requirement. You can imagine, therefore, that 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.

COMPETITION 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 6

competition from neighboring countries and negative perceptions about Indian tourism product constrains the growth of tourism. The image of India as a country overrun by poverty, political instability, safety concerns and diseases also harms the tourism industry. As India is emerging as a destination on the global travel map, expectations of customers are rising. The companies have to focus on customer loyalty and repeat purchases.
5. Customer expectations:

Though most reputed chains have IT enabled systems for property management, reservations, etc., almost all the data which actually make the company work are filled in manual log books or are simply not tracked.
6. Manual back-end:

Some of the services required in the tourism and hotel industries are highly personalized, and no amount of automation can substitute for personal service providers. India is focusing more on white collar jobs than blue collar jobs. The shortage of blue collar employees will pose various threats to the industry.
7. Human resource development:

The Top Players( Leader) 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 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. 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 cost.

SCOPE IN RURAL AREAS

. The New Tourism Policy released in May 2002 has outlined the following policy initiatives for the tourism sector: The new policy is built around the 7-S Mantra of Swaagat (welcome), Soochanaa (information), Suvidhaa (facilitation), Surakshaa (security), Sahyog (cooperation), Sanrachnaa (infrastructure) and Safaai (cleanliness). The new policy envisages making tourism a catalyst in employment generation, wealth creation, development of remote and rural areas, environment preservation and social integration. The policy also aims to spruce up economic growth and promote Indias strengths as a tourism destination that is both safe and at the same time exciting. The policy proposes the inclusion of tourism in the concurrent list of the Constitution so as to enable both the central and state governments to participate in the development of the sector. No approval is required for foreign equity of up to 51 per cent in tourism projects. Enhanced equity is considered on a case-to-case basis. NRI investment is allowed up to 100%. Approvals for Technology agreements in the hotel industry are available on an automatic basis, subject to the fulfilment of certain specified parameters. Concession rates on customs duty of 25% for goods that are required for initial setting up, or for substantial expansion of hotels. 50% of profits derived by hotels, travel agents and tour operators in foreign exchange are exempt from income tax. The remaining profits are also exempt if reinvested in a tourism related project. Approved hotels are entitled to import essential goods relating to the hotel and tourism industry up to the value of 25% of the foreign exchange earned by them in the preceding licensing year. This limit for approved travel agents/tour operators is 10%. Hotels located in locations other than the four major metro cities are entitled to 30% deduction from profit, for a ten-year period. The expenditure tax has been waived in respect of hotels located in the hills, rural areas, and places of pilgrimage or specified place of tourist importance.

BENEFITS TO CUSTOMERS Since the economy opened up in 1991, several foreign chains have entered the Indian market, including Hyatt, Four Seasons, Hilton, Regent, Radisson and Holiday Inn. The result is that the quality of service has improved. The overseas players have brought in efficient systems and service standards from Europe and the US. Competition has forced Indian hotel groups to improve their standards. The customer has benefited in many ways. The influx of foreign players has led to major price wars in the industry. In an attempt to woo customers, Indian hotels have reduced their tariffs significantly. According to one hotelier, "India has become a normal market - like others in the West or in Southeast Asia with demand and supply determining the price".

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Future tense
TRENDS IN HOSPITALITY SECTOR Trends That Will Shape The Future Of Hospitality Sector Are: 1. Low Cost Carriers 2. Budget Hotels 3. Service Apartments 4. Technology 5. Loyalty Travel 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. 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 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, Courtyard by Marriott, Country Inns & Suites, Ibis and Fairfield Inn.
2. Budget hotels: 3. 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 staying guests, service apartments are a natural choice for corporate

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4. 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 the way we travel. 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.

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SWOT

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.
WEAKNESSES

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.

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3. Susceptible to political events: The internal security scenario and social unrest also hamper the foreign tourist arrival rates.

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: Several international majors like the Four Seasons, ShangriLa 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

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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 is 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 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 govt 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. 15

Biography

http://www.tourismofindia.com