ORGANIZATIONAL STUDY

AT

HIMACHAL PRADESH DEVELOPMENT CORPORATION

Report submitted in partial fulfillment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Of

JAIN UNIVERSITY

By

SWATI THAKUR

Register No: 10MMA5106

Under the guidance of

PROF. MANJU P.CHOPRA

MIME, BANGALORE

DECEMBER, 2010

HIMACHAL PPRADESH TOURISM

DEVELOPMENT CORPORATION

Ltd.

(HPTDC)

STUDENT DECLARATION

I, SWATI THAKUR (10MMA5106) hereby declare that this organization study

carried out at HIMACHAL PRADESH TOURISM DEVELOPMENT

CORPORATION, between 9th October and 18th November 2010 as a partial

requirement for the award of MBA is an original work of mine. This report does

not form a base or extract of any other report / research submitted to any other

course of any other institution.

Place: Bangalore Signature

Date: Nov 2010 Swati Thakur

CERTIFICATE

This is to certify that this Organization study at “HIMACHAL PRADESH DEVELOPMENT CORPORATION” under my guidance. To the best of my knowledge, this is her original effort.

Place: Bangalore Signature

Date: Prof. Manju P Chopra

ACKNOWLEDGEMENT

I sincerely express my thanks to the Honourable Chairman, JGI, Mr. Chenraj Jain

for giving me an opportunity to pursue this Organization study.

I express my deepest sense of gratitude to the Dean, MATS Institute of

Management and Entrepreneurship, Prof N.V.H Krishnan for giving me this

opportunity and permitting me to do the study.

I extend my sincere thanks to my internal guide Prof. Manju P Chopra, MATS

Institute of Management and Entrepreneurship, for her guidance, valuable

suggestions and constant encouragement.

I am very grateful to Mr. Yogesh Behl, GM, HPTDC Limited, for giving me an

opportunity to pursue my organizational study at HPTDC.

I am very grateful to Mr. R.D Bhardwaj, Superintendent HR Personnel & Admin,

HPTDC Limited, for providing information regarding the HR Department.

I thank Mr. Anil Sharma and Mr. Gopal Sood, Accountants, HPDTC, for providing

information regarding the Finance Department.

I thank Mr. C.S. Kanwar, Superintendent Marketing, HPDTC, for providing

information regarding the Marketing Department.

I also thank all the department officers of HPTDC who have spared their valuable

time and have helped me complete this study successfully.

Finally I wish to thank each and every person whom I could not individually

mention here and who has contributed in any possible way to help me accomplish

this small endeavour.

TABLE OF CONTENT

1. INDUSTRY PROFILE

Global Scenario. 2 Indian Scenario. 6 Key players in the industry. 9 PEST analysis. 14 Porter’s 5 forces analysis. 17

2. COMPANY PROFILE

Background and History. 21 The Vision objectives, goals, SWOT analysis. 23 Product and Services. 27

3. ORGANIZATION STRUCTURE. 32

4. DEPARTMENTS AND THEIR FUNCTIONS.

Finance Function. 34 Marketing Function. 36 The Human Resource Function. 38 Purchase Function. 40 Transport Function. 41

5. CONCLUSION. 44

6. OBSERVATION AND LEARNING. 45

7. BIBLIOGRAPHY. 46

CHAPTER 1

INDUSTRY PROFILE

GLOBAL SCENARIO

People in general now view tourism as a way of life rather than a luxury item

reserved for the affluent and the elite. Tourism has emerged as the largest service

industry globally in terms of gross revenue as well as foreign exchange earnings.

The present annual global income from tourism (international and domestic) is

nearly US$13 trillion, an amount more than the GNP of all countries except the

United States.

According to the World Tourism Organisation (WTO), the number of international

travellers has risen to more than 500 million per annum, which means that one out

of every ten inhabitants of this planet is a tourist. With rapid developments in the

field of transport and communications, the global tourism industry is likely to

double in the next decade. 

WTO forecasts that there will be 702 million international arrivals in the year

2000, that arrivals will top one billion in the year 2010 and that by 2020,

international arrivals will reach 1.6 billion nearly three times the number of

international trips made in 1996 which was 592 million. 

The 21st century will see a higher percentage of the total population travelling,

especially in developing countries, and people will be going on holidays more

often, sometimes two, three or four times a year. Travellers of the 21st will also be

going farther and farther. The “Tourism 2020 vision” forecast predicts that by 2020

one out of every three trips will be long haul journeys to other regions of the world.

Long-haul travel is expected to increase from 24% of all international tourism in

1995 to 35% of all international traffic arrivals by the year 2020. 

Tourism is the industry of industries and has a great multiplier effect on other

industries. Tourism serves as an effective medium for transfer of wealth because

here income earned in places of “residence” is spent in place “visit”. It is the

highest generator of employment. A total of 212 million persons are now being

employed globally through direct and indirect opportunities generated by this

industry. This means that out of every nine persons, one person earns a living from

tourism. For every million rupees of investment 13 jobs are created in

manufacturing industries, 45 jobs in agriculture and 89 jobs in hotels and

restaurants. Tourism is therefore considered to be an important area for intensive

development for all governments. As the fastest growing foreign exchange earner,

especially in developed countries, it is being given priority attention. India

represents one of the most potential tourism markets in the world. It has expanded

rapidly over the past few years and underpinned by the government support, rising

income level and various international sports events, the Indian tourism industry

will continue to grow at the fastest pace in the coming years. However, the

industry may have to cope up with several challenges which will limit its growth.

Key Findings

• India is expected to see an influx of 10 Million international tourists by 2010, up

from just 5 Million in 2007. 

• Andhra Pradesh, Uttar Pradesh, Tamil Nadu, Karnataka and Rajasthan are the

leading tourism destinations in India in terms of total tourist arrivals. 

• India has been promoting its healthcare tourism by providing the visitors with

private healthcare facilities. It is expected that the total market for medical tourism

will reach US$ 2 Billion by 2012, representing a CAGR of 60.69%.

• Personal disposable income during 2002-2007 grew at a CAGR of 14.16%,

thereby driving domestic as well as outbound tourism.

• Indian outbound tourist flow is expected to increase at a CAGR of 13.30% over

the five-year period spanning from 2008 to 2012.

• India’s share in the global tourism is expected to reach 1.5% by 2010.

• The growth in India’s tourism market is expected to serve as a boon, driving the

growth of several associated industries, including hotel industry, medical tourism

industry and aviation industry.

As an industry, the impact of tourism is manifold. Tourism industry nourishes a

country’s economy, stimulates development process, restores cultural heritage,

and helps in maintaining international peace and understanding. Tourism at

present is India’s third largest export industry and the forex earnings is

estimated to be about Rs.9186 cores (approx Us $3928 million) in 1995-96.

Employment potential

The most significant feature of the tourism industry is the capacity to generate

large scale employment opportunities even in backward areas, specially to

women, both educated and uneducated. Another important feature of tourism is

that it contributes to national integration of the people who live in different

regions of the country with diverse cultures and languages. 

A survey of 400 policy and opinion makers in 20 countries placed these and

three other industries ahead of tourism in global economic contribution, but

recently gathered statistics tell a different story.

As a contributor to the global economy, tourism has no equal.

Tourism employs 204 million people worldwide or one in every nine

workers, 10.6 percent of the global workforce.

Tourism is the world’s leading economic contributor, producing an

incredible 10.2 percent of the world’s gross national product.

Tourism is the leading producer of tax revenues at US$655 billion.

Tourism is the world’s largest industry in terms of gross output

approaching  US$304 trillion 

Tourism accounts for 10.9 percent of all consumer spending, 10.7 percent

of all capital investment and 6.9 percent of all government spending.

Growth of tourism in Asia

Furthermore, despite economically and politically induced setbacks threats of

terrorism from a variety of global hot spots, recession in Europe, and economic

upheaveal in Japan, and the once Communist Eastern Block, the future of

tourism is brighter than ever.Expectations for growth tourism are 6.1 percent, 23

percent faster than the world economy. Travel and Tourism will create 144

million jobs worldwide between now and the year 2005 (112 million in the fast

growing Asia pacific.) “In the 21st century” says Geoffrey Lipman, President of

the world Travel and Tourism Council, “there will be a surge of Asian travellers

in markets around the world, and Asian countries will be the premium

destinations."

 

INDIAN SCENARIO

Service Sector in India today accounts for more than half of India's GDP.

According to data for the financial year 2008-2009, the share of services, industry,

and agriculture in India's GDP is 55.1 per cent, 26.4 per cent, and 18.5 per cent

respectively. The fact that the service sector now accounts for more than half the

GDP marks a watershed in the evolution of the Indian economy and takes it closer

to the fundamentals of a developed economy.

Services or the "tertiary sector" of the economy covers a wide gamut of activities

like trading, banking & finance, infotainment, real estate, transportation, security,

management & technical consultancy among several others. The various sectors

that combine together to constitute service industry in India are:

Trade

Hotels and Restaurants

Railways

Other Transport & Storage

Communication (Post, Telecom)

Banking

Insurance

Dwellings, Real Estate

Business Services

Public Administration; Defence

Personal Services

Community Services

Other Services

There was marked acceleration in services sector growth in the eighties and

nineties, especially in the nineties. While the share of services in India's GDP

increased by 21 per cent points in the 50 years between 1950 and 2000, nearly 40

per cent of that increase was concentrated in the nineties. While almost all service

sectors participated in this boom, growth was fastest in communications, banking,

hotels and restaurants, community services, trade and business services. One of the

reasons for the sudden growth in the services sector in India in the nineties was the

liberalization in the regulatory framework that gave rise to innovation and higher

exports from the services sector.

The boom in the services sector has been relatively "jobless". The rise in services

share in GDP has not accompanied by proportionate increase in the sector's share

of national employment. Some economists have also cautioned that service sector

growth must be supported by proportionate growth of the industrial sector;

otherwise the service sector grown will not be sustainable. In the current economic

scenario it looks that the boom in the services sector is here to stay as India is fast

emerging as global services hub.

Service sector is the lifeline for the social economic growth of a country. It is today

the largest and fastest growing sector globally contributing more to the global

output and employing more people than any other sector.

The real reason for the growth of the service sector is due to the increase in

urbanization, privatization and more demand for intermediate and final consumer

services. Availability of quality services is vital for the well being of the economy.

In advanced economies the growth in the primary and secondary sectors are

directly dependent on the growth of services like banking, insurance, trade,

commerce, entertainment etc.

Indian Service Sector

In alignment with the global trends, Indian service sector has witnessed a major

boom and is one of the major contributors to both employment and national

income in recent times. The activities under the purview of the service sector are

quite diverse. Trading, transportation and communication, financial, real estate and

business services, community, social and personal services come within the gambit

of the service industry.

One of the key service industry in India would be health and education. They are

vital for the country’s economic stability. A robust healthcare system helps to

create a strong and diligent human capital, who in turn can contribute productively

to the nation’s growth.

KEY PLAYERS

The key players in tourism industry are:-

1. Thomas Cook India.

Thomas Cook (India) Ltd. is the largest integrated Travel and Travel related

Financial Services Company in the country offering a broad spectrum of services

that include Foreign Exchange, Corporate Travel, Leisure Travel, and Insurance.

The Company launched its Indian operations in 1881 and is celebrating its 127

years of world-class service in India. Thomas Cook (India) operates in the

following areas of business, namely: Leisure Travel, Corporate Travel

Management, MICE, Foreign Exchange, SWIFT Network, Travel Insurance,

Credit Cards, Pre-Paid Cards, Life Insurance and E-Business.

Post March 31st 2008, Thomas Cook (India) Limited (TCIL) is a part of Thomas

Cook Group plc UK (TCG). On March 7th 2008, TCG announced its decision to

acquire TCIL from Dubai Investment Group. Thomas Cook Group plc is one of the

largest travel groups in the world with a market capitalization of approximately

US$6 Billion.In June 2006, Thomas Cook (India) acquired LKP Forex Limited and

Travel Corporation (India) Pvt. Ltd. (TCI).TCIL presently operates in over 72

cities across over 180 locations. The company has overseas operations in Sri Lanka

which is a branch of TCIL and Mauritius which is a subsidiary of Thomas Cook

(India). The Company employs over 2,200 resources and is listed on both the

Bombay Stock Exchange as well as the National Stock Exchange.

Thomas Cook (India), over the years has received several prestigious awards such

as the Golden Peacock Award for excellence in Corporate Governance and the

Pacific Asia Travel Association (PATA) Golden Award for Best Travel. Recently,

the Company won the Best Tour Operator at the CNBC Awaaz Travel Awards

2008 and was also accredited the P1 rating which is the highest financial rating

given by Crisil.

2.Raj Travels Ltd.

Shree Raj Travels & Tours Ltd. was established in 1976 by

the  Chairman & Managing Director- Mr. Lalit Sheth . It was his

vision to provide the Indian traveler with SUPERIOR quality package

tour facilities. He ensured that the services of Raj Travels would be

totally customer focused and would maintain their exclusivity. The

objective was to make family holidays tours more comfortable, more

exciting, and most memorable. His passion was to change the entire

scenario that existed in the Indian Market. An array of NEW Services

were introduced by Raj Travels that were welcomed by customers with

open arms. Within a short span of time RAJ TRAVELS revolutionized

the entire travel industry. The CHANGE had taken place and Raj

Travels began its journey to become the Number 1 Outbound Tour

Operator in the country.

Raj Travels was the first Outbound Tour Company to introduce Indian

Meals on its Globe Tour Packages. Raj Travels was the first tour

operator to start package tours to Australia & New Zealand. Way back

in 1986 when Raj Travels Launched Caravan Kitchens and started

serving "Indian Cuisine- Hot Meals" in Europe, the customer response

was so dynamic that it changed the face of "Indian Tours" forever. The

biggest players in the industry were compelled to follow suit and it was

do or die situation for many. Raj Travels has been renowned for

PIONEERING some of the most admired "Customer Services" in

tourism. Today, we proudly continue to enjoy the Number 1 position in

the outbound tours industry with 54 operational offices Spread over

India .They want to be different, this has been their most outstanding

quality. This is a trait which segregates them from the rest of the

competition. They are aggressive, intense & passionate of their

business of travel promotion.

 

They provide a lending ear to understand the changing profile of

today's traveller. They pack a lot of things to do and see in a short

holiday, for some it may be taxing, for most it is the best way to

holiday. Our young and vibrant team is full of ideas & eager to

provide the right service.

3. Kuoni India Ltd .

The Kuoni Group is one of Europe’s leading leisure travel companies, and

generated consolidated turnover of CHF 4,855 million (INR 194 billion) in 2008

with a worldwide workforce of 9,797  employees. The company’s activities are

focused on its Leisure Travel and Destination Management businesses. 

Head Office is in Zurich, Switzerland, where Alfred Kuoni founded the company

back in 1906. The Kuoni Group has steadily and systematically developed its

position in the world travel market over the years, and has branch operations today

in more than 40 countries in Europe, Asia, Africa, Australia and North America.

Kuoni aims to be the world’s best and most successful tourist travel company in

the premium and specialist segment. The Kuoni Group was named “World’s

Leading Tour Operator” at the World Travel Awards in 2008, the eleventh time in

a row it hasearned this distinction.Kuoni cares to enrich people's lives Kuoni India

is committed to fulfilling its role as the first citizen of the Indian travel and tourism

industry. The company has always believed deeply in its role of being a

conscientious, responsible corporate citizen. It is Kuoni India's resolute endeavour

to give something back to society. Through a variety of initiatives ranging from

Tourism Police, Ecology Preservation techniques to pioneering Travel Education.

Kuoni India strives relentlessly to enrich people's lives.

4. Cox & Kings India Ltd.

Cox & Kings is a ONE STOP SHOP. We offer the following services all under

one roof -

Hotel bookings

Car/Coach/Railway bookings

Foreign Exchange

Leisure Travel (Overseas holidays land & cruise bookings)

Destination Management(Domestic holidays & conference management)

They strongly believe that the complete range of travel services offered by Cox &

Kings would be an added advantage for you as all your travel purchase can be

consolidated through a single window. Such consolidation can substantially

increase your buying power with suppliers. Upon confirmation as your travel

managers Cox & Kings would be actively involved in the negotiation with

suppliers on your behalf. This exercise would entail dramatic savings on your

travel spend.

Cox & Kings has a strong network of offices within India as well as overseas.

Their widespread presence can be a huge advantage. Their close proximity to your

office means faster service delivery and more personalised attention.

Cox & Kings is also a partner of Radius, which is a consortium of leading travel

agents round the world. On the international map Cox & Kings has its presence

through its own offices as well as its Radius partners in more than 80 prominent

countries worldwide. Their international travelers enjoy certain privileges due to

this strategic partnership between Cox & Kings and Radius.

PEST ANALYSIS

PEST analysis is a business measurement tool. PEST is an acronym, where P

stands for Political factors, E for Economic factors, S for Social factors and T for

Technological factors. The PEST analysis is a useful tool for understanding the

market growth or decline and as such the position, potential and direction of the

business. The PEST analysis headings are a framework for reviewing a situation

and can also be used to review a strategy position, direction, marketing position or

an idea of a company.

PEST analysis stands for "Political, Economic, Social, and Technological analysis"

and describes a framework of macro-environmental factors used in

the environmental scanning component of strategic. Some analysts added Legal

and rearranged the mnemonic to SLEPT; [1] inserting Environmental factors

expanded it to PESTEL or PESTLE, which is popular in the United Kingdom.[2] The model has recently been further extended to STEEPLE and STEEPLED,

adding education and demographic factors. It is a part of the external analysis

when conducting a strategic analysis or doing market research, and gives an

overview of the different macro environmental factors that the company has to take

into consideration. It is a useful strategic tool for understanding market growth or

decline, business position, potential and direction for operations.

Political Factors

Political arena has a huge influence upon the regulation of businesses 

.It includes government regulations and legal issues under which 

businesses should operate.

The major political factors affecting this industry are

Government policies which are in favour of the industry

Regulatory bodies and processes favouring the industry

The company is located in industrial estate.

Economic Factor

Economic factors affect the purchasing power of potential customers 

and also affect the individual company’s offerings. 

The major economic factors impacting this industry are

Market and trade cycles affecting the sales

Domestic economic trends

International economic trends.

Social Factors

Social factors are those which emerge from the soail needs of the customers.

The major social factors impacting this industry are

Company image and brand favoring the industry

Advertising & publicity

Development of nearby villages.

Proper facilities for the rural people.

Technological Factors

Technological factors are those which emerge from the technological advancement

of the nation.

The major technological factors affecting this industry are

Competing technology advancement.

Up gradation in technology.

Maturity and replacement of technology.

PORTER’S FIVE FORCE ANALYSIS

Porter's five forces is a framework for the industry analysis and business strategy

development formed by Michael E. Porter of Harvard Business School in 1979. It

draws upon Industrial Organization (IO) economics to derive five forces that

determine the competitive intensity and therefore attractiveness of a market.

Attractiveness in this context refers to the overall industry profitability. An

"unattractive" industry is one in which the combination of these five forces acts to

drive down overall profitability. A very unattractive industry would be one

approaching "pure competition", in which available profits for all firms are driven

down to zero. It is a simple but powerful tool for understanding where power lies

in a business situation. This is useful because it helps in understanding both, the

strength of current competitive position and the strength of the position the

organization is looking to move into. Conventionally, the tool is used to identify

whether new products, services or businesses have the balance potential to be

profitable.

         

           HPTDC

COMPETITIVE RIVALRY

COMPETITIVE RIVALRY

Himachal Tourism Development Corporation has many competitors especially the

private companies as they are very much advanced in technology and they are also

available at a cheaper rate. There is threat from companies because Himachal

Tourism Development Corporation offers best possible services as compared to the

services of the competitors.

BARGAINING POWER OF BUYERS

In this case, it is not easy for the buyers to drive the price down as HPTDC is one

of the well reputed companies in providing excellent tourism services. Because it is

concerned with providing superior quality of services at affordable prices.

THREATS OF SUBSTITUTIVE PRODUCTS.

Threat of substitutive products almost does exist in case of services provided by the

private competitors, In this case, it is not easy for the buyers to drive the price

BARGAINING POWER OF SUPPLIERS

BARGAINING POWER OF 

THREAT OF NEW ENTRANTS

THREAT OF SUBSITUTIVE PRODUCTS

down as HPTDC is one of the well reputed producers as far as tourism industry is

concerned because of the superior quality of the services they offer.

THREATS OF NEW ENTRANTS

Though the threat of new entrants lingers around the firm, Himachal Tourism

Development Corporation limited holds a good favorable position as it is a well

known and reputed company for tourism in and around Himachal Pradesh.

CHAPTER 2

COMPANY PROFILE

Background and history

The Himachal Pradesh Tourism Development Corporation is a pioneer in the

development of tourism infrastructure in Himachal, it was formed in 1972, having

its registered office at Ritz Annexe, Shimla-171001.It provides a complete package

of tourism services, including accommodation, catering, transport, conferencing

and sports activities having the largest chain of finest hotels and restaurants in the

state with 57 hotels having 1051 rooms with 2256 beds. HPTDC also runs 60

restaurants and cafes, serving a varied cuisine, including Himachali delicacies. All

these properties are set in superb location in the lap of the nature.

Ever since is establishment, the Corporation has acted as a catalyst, trendsetter and

a prime mover for the promotion of domestic and foreign tourism in Himachal

Pradesh. Private hoteliers started their units in several places only after the HPTDC

had started operations initially. Such areas were opened up and publicized for

tourists by HPTDC. Initial losses were consequently borne by the Corporation. It

has expanded and diversified its activities, broad based its strategy and has

contributed significantly to the multi-faceted socio-economic development of the

state. HPTDC has established a brand name for providing safe, assure

accommodation at prescribed rates The client has confidence of not being fleeced

or cheated. It contributes 10% of Luxury Tax to the State Exchequer. The

Corporation contributes more than 3 Crores per annum by way of Sales Tax,

Luxury and Passenger Tax. It also caters to the hospitality needs of the government

at all times and in all situations.

There is no exaggeration to say that it is primarily through its policies and

programs that Himachal Pradesh today, it well represented on the tourist map of

the country.Hospitality is a way of the people of Himachal and the hospitality is at

its best at HPTDC- The Perfect Host.

Nestled in the Himalayas, the world's mightiest mountain ranges, Himachal is

blessed with some of the most spectacular landscapes anywhere. Truly a travellers

paradise, with mighty snow peaks, deep gorges, lush green and golden valleys,

flower filled meadows, misty woods, fast flowing icy rivers, glaciers and

enchanting lakes. While the picturesque valleys of Kullu, Kinnaur and Kangra are

a riot of colours, in marked contrast the barren terrain of Lahaul & Spiti have a

stunning lunar landscape like beauty. For the visitor there are superb locations for

relaxing and sight seeing. There are also tremendous opportunities for trekking,

mountaineering, fishing, river rafting, skiing, para-gliding, ice skating and

golf.Having an excellent network of roads and communication facilities, Himachal

has a clean and peaceful environment. Himachal Tourism a pioneer in the

development of tourism infrastructure in Himachal, has Himachal's largest

complete package of tourism services, including accommodation, catering,

transport and sports activities. 

Himachal Tourism has divided the state into four interesting circuits. 

Sutlej Voyage 

Beas Voyage 

Dhauladhar Voyage 

Tribal Voyage 

Mission

India provides you travel opportunities of all kinds, of all forms, and for everyone.

They, at HPTDC, believe in presenting India in a way that is quite unique,

unexplored, and unhindered. They want to show us the possibilities that are

immense and unending. Come and explore the Himalayas, take risks and trek

through the Himalayas, bask under the glory of sun god and relax under the golden

sun, hunt the tigers 'with cameras' and make wild friends in the rain forests, travel

on the top of world's oldest working locomotive, or face the force of rapids and go

for the river rafting on the wild rivers. HPTDC will provide you all the facilities

whilst you are on your personal journey - the journey of a lifetime. Believe them

when they say, Possibilities are Unlimited - You only need your imagination to

find them and guts to live them.

Their mission is to provide Quality and excellence to their customers promptly and

exclusively. All the professionals at HPTDC are masters of their trade and each

brings with him/her a unique set of experience adding value to the traveler's overall

experience. To put it simply, they know what a traveler anticipates and more than

that they know what it takes to satisfy them. 

OBJECTIVES

The objectives are formulated to agree with the present development programme

and complement to the broad goals of Tourism development in Himachal

Pradesh, such as, judicious use of natural resources, economic benefit to the

region, full employment, urban revitalization balanced growth of areas,

preservation of heritage resources, penetration in the new find resources of tourism

such as apple blossom and improved goodwill.

The objectives are as follows:

1. First objective is to increase the inflow of foreign as well as domestic tourists to

meet to meet the projected target growth.

2. It also requires a specific course of action in planning to involve the high

spending category of visitors in overseas as well as domestic market by offering

them a viable planned Tourism product.

3. There a need to stimulate the visitors for bigger participation in tourism.

4. Promotion of recreational activities and pursuits of active enjoyment would be

the important aspect of tourism development in concerned region.

5. At present tourist agglomeration are at Shimla and Manali which need to be

regulated in a discreet manner so as to reduce over-crowding in these areas.

6. There is also a need for word of mouth publicity, this mode is very powerful in

the field of personalized services like-Tourism.

8. The prime objective has been to open new areas which other companies are not

interested in like- Rohru, Khada Pathar etc.

7. Lastly, most important is the need to support tourism in HP as a priority industry

and provide a sound footing without resorting to any political overtone.

Goals

1. Judicious use of natural resources.

2. Economic benefit to the region.

3. Generation of employment.

4. Urban revitalization.

5. Balanced growth of the area.

6. Preservation and development of the heritage resources.

7. Penetration in the new resources of tourism such as apple blossom and improved

goodwill.

HPTDC has taken tremendous steps to achieve these goals.

‘SWOT’ Analysis

Strengths:

• Pleasant weather which is ideal for the tourists to come for the annual summer

holiday to escape the scorching heat of the plains.

• Scenic beauty of the Himalayas, which draws tourists away from the crowded

and polluted towns and cities.

• Terrain is ideally suited for various adventure activities.

• Some very well known tourist hill- stations.

• It can attract tourists all throughout the year.

• Hospitable people.

Weaknesses:

• Inadequacy of transport facilities

• Funds constraining the development of regions.

• Inadequacy of information channels.

• Overcrowding of popular tourist centres.

• Some places are inaccessible, especially in winterdue to heavy snowfall.

• Inadequacy of marketing.

• Lack of adequate infrastructural support.

Opportunities:

• The concept of holidaying is gaining popularity in India among various classes of

people.

• Increased disposable incomes of the Indian middle class.

• Adventure sports and trekking.

• Eco- tourism is gaining popularity.

• Himachal contains many unexplored regions.

Threats:

• Various other places in India are providing stiff competition.

• Environmental and political factors also impose a threat.

Products and Servicies

ACCOMMOATION NETWORK

H.P. Tourism Development Corporation Limited has a wide network of

accommodation in the state. At present it has 57 hotels having 1051 rooms and

2256 beds. HPTDC also runs 60 restaurants and cafes, serving varied cuisine,

including Himachali delicacies. All these properties are in superb locations in the

lap of nature. The HPTDC hotels have three categories viz. Premium – Heritage,

Deluxe and Budget Hotels. The tariff for the year 2010-11 has been revised and

remain in force upto 31.3.2011.

The Corporation also is running three Bhawans of H.P. Govt. i.e. Himachal

Bhawan-Chandigarh, Himachal Bhawan & Himachal Sadan-New Delhi and

also managing H.P. Secretariat Canteen and only one Lift at Shimla is also run

by HPTDC.

CONFERENCE NETWORK

HPTDC has a comprehensive network of conference facilities in the State,

which are available in The Holiday Home-Shimla, The Peterhof-Shimla, The

Palace-Chail, The Pinewood-Barog, The Club House-Manali, The Club

House-Mcleodganj, The Dhauladhar-Dharamsala, The Tea-Bud-Palampur,

Hotel Jawalaji-Jawalamukhi, The Yamuna-Paonta, The Hamir-Hamirpur and

The Manimahesh-Dalhousie. The Peach Blossom-Fagu, The Lake View-

Bilaspur and The Mandav – Mandi.

WAYSIDE AMENITIES

The Corporation is providing wayside facilities on important tourist routes and

destinations which include national and state highways.

MARKETING NETWORK

HPTDC has set-up Marketing and Tourist Information Offices in all major and

important cities within and outside the State. Besides it has appointed 14 General

Sales Agents in different cities of the country for reservation of HPTDC Hotels

and other facilities. For this, it is paying these General Sales Agents and Travel

Agents handsome commission on slab basis. Depending upon the volume of

business they fetch, they are being given commission ranging from 15% to 25%.

PACKAGE TOURS

The HPTDC has also prepared different package tours, which are further

circulated, to its marketing and Tourist Information Offices within and outside the

State. These packages include major destinations, Temples, Gompas and heritage

buildings in Himachal Pradesh. It also announces special packages during Karva

Chauth, Skiing packages during winters.

INTRODUCTION OF PREVILEGE CARD

In view to have repeated clientele HPTDC has introduced the system of Privilege

Card and at present we have about 1500 Privilege Card holder. The Privilege Card

holder is allowed 20% discount on boarding and lodging & soft drinks.

DISCOUNT

Corporation offers 10% special discount to senior citizens during season.During

monsoon and other season they offer special discounts. Corporate discount has also

been offered.

HOME STAY SCHEME

They have also floated Home Stay Scheme by which tourists are being invited to

stay in village houses offering them to have a feel of village atmosphere. HPTDC

are the pioneer in providing this scheme.

REJUVENATION HEALTH CENTRE/PANCHKARMA

Rejuvenation Health Centre at Hotel Holiday Home, Shimla, Hotel Palace, Chail

and Panchkarma Therapy at Hotel Tea-Bud-Palampur has been started.

RESERVATION SYSTEM

During the year 1999, HPTDC launched its official website

http://www.hptdc.nic.in covering the four circuits, properties, transportation

services, hotels, restaurants, cafeterias, places of tourist interest, access to

Himachal Pradesh, conference facilities and other activities being carried out by

the Corporation to make its presence felt on the World Wide Web. All the HPTDC

marketing/Tourist Information Offices have been networked. An agreement for

online reservation system/payment Gateway has been made with HDFC Bank and

Axis Bank reservation through Credit Cards.

Publicity and Information Network

The HPTDC has brought out comprehensive range of Publicity literature,

detail of which are given below:-

1. Brochure on Panchkarma at Hotel Holiday Home, Shimla (8 Pages), Hotel

Palace, Chail (12 Pages) and Hotel Tea Bud-Palampur (12 Pages) has been

printed during the year 2008-09.

2. Brochure on special package for senior citizen (12 ages) has been printed.

3. Brochure on Chail has also been printed.

4. Accommodation Tariff (2010-11)

Every year HPTDC prints an accommodation tariff which contains room tariff of

Hotels with available facilities, telephone numbers and e-mail address.

5. DVD (film on HPTDC)

TRANSPORT NETWORK

The HPTDC has a full-fledged transport wing consisting of a fleet of 17 coaches

(which includes 4 Volvo buses recently purchased). Besides this, it has hired

Volvo busses and AC Sleeper Buses and the same are operating on Delhi-Manila

and Manali-Delhi routes. It is perhaps one of the best and most efficient transport

wing, which any Tourism Corporation has in the country having a record of 0%

accidents in its 38 years of operation. It has been organizing/conducting sight-

seeing packages and LTC tours besides catering to the international and national

conferences and meets. It also runs long distance services between Delhi-Shimla,

Delhi-Manali, Delhi-Dharamsala and Manali-Leh etc. Branch Offices of Transport

Wing are at Shimla, Manali and Delhi. The online reservation of HPTDC Volvo

buses has started through payment Gateway.

CHAPTER 3

 

GENERAL MANAGER

MANAGING DIRECTOR

BOARD OF DIRECTORS

COMPANY

SECRETARY

DGM

MARKETING & OPRATIONS

JOINT

CONTROLLER

ADMIN/HR

DGM

PURCHASE

DGM

TRANSPORT

FINANCE

MANAGER

PROJECT

OFFICER

AGM

MKT.&OPR.

& PUBLICITY

Superin-

-tendent

AGM

PURCHASE

AGM

TRANSPORT

ACCOUNTS OFFICER

ASST.

ENGINEER

SENIOR

MANAGER

SENIOR

ASST.

SENIOR

MANAGER

SENIOR

MANAGER

ACCOUNTANT

ABBREVIATIONS USED:

DGM: DEPUTY GENERAL MANAGER

AGM: ASSISTANT GENERAL MANAGER

AAE: ADDITIONAL ASSISTANT ENGINEER

ADMIN: ADMINISTRATION

ORGANISATIONS STRUCTURE

ASST.

MANAGER

CHAPTER 4

VARIOUS DEPARTMENTS AND THEIR FUNCTIONS

A. FINANCE DEPARTMENT

ACCOUNTS OFFICER

ACCOUNTANT

Finance department plays a very significant role in any organization. They maintain various books of accounts, manage the budget and the cost functions of the company etc.

FUNTIONS

A) HPTDC maintains the books of accounts according to the Companies Act, 1956.All their financial functions are carried out according to this act.

The various books maintained by them are:-

1. Daily Sales Summary.

2. Journal.

3. Cash Book.

4. Ledger.

5. Bank reconciliation Statement.

6. Annual Balance Sheet at Branch Level and final consolidation is done at Corporate Level.

B) Conducts internal and external audits.

FINANCE MANAGER

They have internal as well as external audit. Internal audit is done by the CA and the external audit is done by the government auditors.

C) Internal control.

Internal control is done by proper monitoring at corporate level such as from the monthly Profit and Loss account and other direct and indirect overheads.

D) Cost & Revenue centers

Cost and Revenue maintained monthly by the Branches and finally consolidated at corporate level annually.

E) Maintain Cost records. Maintain Kitchen order tickets, Food cost register, Stock register, consumption registers daily and reconciled with stock register.

F) Maintains various documentation Receipts Vouchers Debit note Credit note Inward and outward invoices at store level.

G) Makes the budget.

The budget is maintained annually. There are two types of budget being maintained by the corporation that is:-

1. Revenue Budget and

2. Capital Budget.

H) Control costs.

They control costs by following various techniques. By adopting various ratios-Debt-Equity ratio, Quick ration, Liquidity Ratio, Working Capital, Debtors Ratios, Creditors Ratios, Fuel Ratios and Food Ratios. 

B.MARKETING DEPARTMENT

DGM

Asst. GM, MO, Shimla.

Asst. GM, MO, Delhi.

Sr. Manager, MO, Chandigarh.

Asst. Manager, MO, Ahmadabad

Asst. Manager, MO, Mumbai

Marketing is the process by which goods and services are delivered to the

customers. Marketing department plays an active role in achieving the objectives.

Incharge, MO, Kolkata

HPTDC has set-up Marketing and Tourist Information Offices in all major and

important cities within and outside the State. Besides it has appointed 14 General

Sales Agents in different cities of the country for reservation of HPTDC Hotels and

other facilities. For this, it is paying these General Sales Agents and Travel Agents

handsome commission on slab basis. Depending upon the volume of business they

fetch, they are being given commission ranging from 15% to 25%.

The department satisfies the customer’s needs, as it is available throughout the

world. It provides feedback from customers and provides proper service. The

department collects information regarding current market condition to maximize

awareness of the product.

FUNCTIONS

A) The HPTDC has also prepared different package tours. They also announce special packages during Karva Chauth, Skiing packages during winters.

B) Introduction of privilege card.

In view to have repeated clientele HPTDC has introduced the system of Privilege card. The card holder is allowed 20% discount on boarding and lodging & soft drinks.

C) Offer special discount

Corporation offers 10% special discount to senior citizens during season.

D) Offer various schemes like:-

1. Home stay scheme

They have floated Home Stay Scheme by which tourists are being invited to stay in village houses offering them to have a feel of village atmosphere.

2. Rejuvenation health centre

E) Publicity and Information Network

The HPTDC has brought out comprehensive range of Publicity literature, detail of which is given below:-

Brochure on Panchkarma at Hotel Holiday Home, Brochure on special package for senior citizen, Brochure on Chail, Accommodation Tariff and DVD (film on HPTDC).

F) Offer other special packages like:-

1. Beti Hai Anmol.

2. Tribal packages.

3. Student package tours.

4. Common Wealth Game, 2010 special package.

5. Marriage Anniversary.

6. Bonanza for Honeymooners at Manali.

C. ADMINISTRATION/HR DEPARTMENT

JOINT

CONTROLLER

SUPERINTENDENT

Human resource is the most basic form of resource which is of utmost necessity for the functioning of any business firm, unit, factory, plant or organization. An organization is incomplete without the human resource, all the activities of the organization are initiated and completed by the persons who make up the organizations.

FUNTIONS

A) Planning

Human resource planning involves planning of required quantity of manpower to perform the job. Here the target will be analyzed and the required manpower will be calculated.

B) Recruitment

Recruitment is the process of searching for prospective employees and stimulating them to apply for job in the organization. The recruitment policy of this is based on need or requirement, it generally begins when the need is generated from any department of the company. All vacancies are notified to the Employment Exchange in terms of the act. Departmental candidates are also eligible to apply.

C) Selection

Selection is the process of choosing the most suitable persons out of all the applications. Selection is done by the selection committee under the guidance of the MD. This committee holds written tests and interviews.

D) Training

Training is the process of increasing the knowledge and skills for doing a particular job. The purpose of training is basically to bridge the gap between the job recruitment and present competence of the employees, in HPTDC both on-the-job and off-the-job training are given.

E) Wage and Salary Administration

The wage payment in HPTDC is monthly paid on the last working day of every month and it is directly credited to the respective bank account of employees. Dearness allowance and house rent allowance is also paid to the employees. Capital allowance is paid to those working in the capital.

F) Grievance Redressal

Each and every individual employee in the company has an equal chance to report their grievances to their immediate seniors or supervisors or superiors. The

grievance may be monitory or non-monitory one, but the complaint must go through a proper channel or hierarchy level in the organization. No individual in the company is allowed to contact Head of the Department directly. These grievances are taken up by the grievance committee.

G) The various employee welfare measures prevailing in HPTDC are:-

1. Diwali gifts.

2. Uniform and shoes.

3. Bonus.

4. 50% discount on food.

5. Special discount on accommodation.

6. Medical facility.

7. LTC facility.

D. PURCHACE DEPARTMENT

DGM

AGM

This department looks into the needs of all the other departments.They make all kinds of purchase on behalf of the company. All big to small purchases are made by this department. They make purchases at Head Office level as well as at the unit level depending on their day-to-day requirements. Purchase is being made in the most economical, transparent manner and also in accordance with the requirements keeping in mind the aspect like quality, colour, design etc. Tenders for purchase and rate contract of Central Store items for the year 2010-2011 were made during the current financial year after wide publicity in the leading national, regional news papers and through tender portal, so that

reputed manufacturers and genuine suppliers could participate in the tender process and the corporation could get the best quality material on competitive rates.They make centralized purchases, apart from this efforts are being initiated to purchase the commonly required provisions directly from the manufacturers or their authorized distributors so that the standardized provision material are available on competitive rates.

FUNCTIONS

A) Procurement of items.

B) Vendor quality evaluation.

C) Recurring storing and issuing all incoming Material.

D) Maintaining good relations with the sellers.

E) Making orders as and when required.

F) Keeping in touch with the needs of the other departments.

G) They issue central store items.

E. TRANSPORT DEPARTMENT

AGM TRANSPORT

WING

ASST. MANAGER

MANALI

The HPTDC has a full-fledged transport wing consisting of a fleet of 17 coaches (which includes 4 Volvo buses recently purchased). Besides this, it has hired Volvo busses and AC Sleeper Buses and the same are operating on Delhi-Manali and Manali-Delhi routes. It is perhaps one of the best and most efficient transport wing, which any Tourism Corporation has in the country

having a record of 0% accidents in its 38 years of operation. It has been organizing/conducting sight seeing packages and LTC tours besides catering to the international and national conferences and meets. It also runs long distance services between Delhi-Shimla, Delhi-Manali, Delhi-Dharamsala and Manali-Leh etc. Branch Offices of Transport Wing are at Shimla, Manali and Delhi. The online reservation of HPTDC Volvo buses has started through payment Gateway.

FUNTIONS

A) Provide facility to the tourist.

B) Operates busses to provide LTC facility to government employees.

CHAPTER 5

CONCLUSION

The Himachal Pradesh Tourism Development Corporation is a pioneer in the

development of tourism infrastructure in Himachal, it was formed in 1972. It

provides a complete package of tourism services, including accommodation,

catering, transport, conferencing and sports activities having the largest chain

of finest hotels and restaurants. Ever since its establishment, the Corporation

has acted as a catalyst, trendsetter and a prime mover for the promotion of

domestic and foreign tourism in Himachal Pradesh.

Himachal Tourism has divided the state into four interesting circuits. 

Sutlej Voyage 

Beas Voyage 

Dhauladhar Voyage 

Tribal Voyage 

Their mission is to provide Quality and excellence to their customers promptly and

exclusively. All the professionals at HPTDC are masters of their trade and each

brings with him/her a unique set of experience adding value to the traveler's overall

experience. To put it simply, they know what a traveler anticipates and more than

that they know what it takes to satisfy them. 

The most important function of HPTDC is marketing as it is a tourism company. It

also has other well developed departments like finance, administration, purchase

and transport.

To conclude, this corporation is functioning at its best because of its well planned

policies and services. One thing which adds to the advantage of this corporation is

the tremendous beauty of Himachal Pradesh.

OBSERVATIONS AND LEARNINGS

The following are the learnings from the study done at HPTDC:-

The organization structure of HPTDC Ltd. is well formatted in which each

and every department plays important role.

All departments function similarly with their respective purchase, production

marketing and quality assurance departments

The entire organization is so well structured that all the resources (including

human resources) are utilized to their best.

The marketing department applies the concept of outsourcing regular

services. This way they save a lot of time. But they ensure that their

outsourcing firms meet their standards.

The marketing department obtains regular feedback and provided it to the

quality assurance department so that they can rectify the next lot of products.

The marketing research department provides with the data of current sales

and other relevant information, based on which the other department make

decisions.

                     

BIBLIOGRAPHY

1. www.hptdc.nic.in

2. www.rajteavels.com

3. www.cox&kings.co.in

4.  www.kuoni.com

5. www.thomascook.com

6. HPTDC annual report 2009 journal.

7. HPTDC magazine 2009.