7/30/2019 Project 3 395

1/17

INDEX

SR. NO.CONTENTS

PAGE NO.

1. Acknowledgment & Objective 1

2. Introduction 2

3. History 5

4. Current scenario 4

5. Scope, competition and leaders 5-7

6. Scope in rural areas 8-9

7. Future prospects 10-11

8. SWOT Analysis 12-139. Marketing mix in the hotelindustry :

14-15

Bibliography 16

1

7/30/2019 Project 3 395

2/17

ACKNOWLEDGEMENT

We the students of TYBMS B would like to express our sincere thanks to

---------------------------------for giving us the opportunity to work on such aninteresting project.

We are grateful to K.Jayaraman, The Personnel Manager, HR Dept, The LeelaKempinski, Mumbai for treating us with hospitality & giving us overwhelmimgresponse.

We are thankful to Mr. S. Vidyashankar, The Assisstant Manager, HR dept, The HYATTRegency, 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:-

7/30/2019 Project 3 395

3/17

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.

2

7/30/2019 Project 3 395

4/17

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 anadditional 38 Hyatt hotels and resorts under development, including 13 new hotels inChina. Hyatt Corporation (domestic U.S., Canada and Caribbean hotels) and HyattInternational Corporation (international properties) are subsidiaries of Chicago-basedGlobal Hyatt Corporation. Global Hyatt Corporation is also the owner of Hyatt VacationOwnership, Inc. (timeshare), Hyatt Equities, L.L.C. (hotel ownership), and U.S.Franchise Systems, Inc.

3

http://grandcayman.hyatt.com/http://grandcayman.hyatt.com/

7/30/2019 Project 3 395

5/17

HISTORY OF HYATT CORPORATION

Hyatt Corporation opened its first hotel on September 27, 1957. Hyatt's first property atLos Angeles International Airport was originally named Hyatt House. The owner ofHyatt 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'tuntil 1967, when Hyatt Corporation opened the world's first atrium hotel that the Hyattname became known worldwide. The hotel's 21-story atrium tower lobby and dramaticdeparture 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 creategrand, wide-open public spaces.

By 1969, there were 13 Hyatt hotels in the United States. That year, a subsidiaryof 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, offeringguests opportunities to broaden their horizons.

The Grand Hyatt and Park Hyatt brands were introduced in 1980 to furtheridentify and market the diverse types of Hyatt Hotels & Resorts worldwide. GrandHyatt hotels serve culturally rich destinations that attract leisure and business travelersas well as large-scale meetings and conventions.

Park Hyatt hotels are the company's smaller, luxury hotels designed to cater tothe discriminating individual traveler seeking the privacy, personalized service andelegance 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 hasbecome known as a leader in the creation and operation of dramatic luxury resorts aswell.

4

7/30/2019 Project 3 395

6/17

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 fouryears. Movements in real estate prices have to be watched, though they havestabilized in the past three years or so.

Non-five-star hotels are obviously cheaper and have had smaller gestationperiods, 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. Thecurrent gap between supply (61,000 rooms) and demand (90,000 rooms) isexpected to widen further as the economy opens and grows.

The government forecasts an additional requirement of 200,000 rooms by the turnof the century.

A rapidly growing middle class, the advent of corporate incentive travel and themultinational companies into India has boosted prospects for tourism. India's easy

visa rules, public freedoms and its many attractions as an ancient civilizationmakes tourism development easier than in many other countries.

Many foreign companies have already tied up with prominent Indian companiesfor 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 aninternational 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 Internationalare entering or expanding their hotel network in India.

5

7/30/2019 Project 3 395

7/17

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 1.8million 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 hospitalityto sustain this requirement. You can imagine, therefore, that there is enormous scope forthose who want to pursue a career in the industry, plus a huge range of employmentopportunities across the varied subsectors. You might want to manage a hotel, run arestaurant or become the next Jamie Oliver, or maybe your interests lie in accountancy orinformation technology. You may want to start your own business or be part of aninternational one. Whatever your talents, the hospitality industry offers variety andopportunity.

COMPETITION FOR HOSPITALITY INDUSTRY

1. Shortage of skilled employees: One of the greatest challenges plaguing the hospitalityindustry is the unavailability of quality workforce in different skill levels. The hospitalityindustry has failed to retain good professionals.

2. Retaining quality workforce: Retention of the workforce through training anddevelopment in the hotel industry is a problem and attrition levels are too high. One ofthe reasons for this is unattractive wage packages. Though there is boom in the servicesector, most of the hotel management graduates are joining other sectors like retail andaviation.

3 Shortage of rooms: The hotel industry is facing heavy shortage of rooms. It is estimatedthat the current requirement is of 1,50,000 rooms. Though the new investment planwould add 53,000 rooms by 2011, the shortage will still persist.

4. Intense competition and image of India: The industry is witnessing heightenedcompetition with the arrival of new players, new products and new systems. The

6

7/30/2019 Project 3 395

8/17

competition from neighboring countries and negative perceptions about Indiantourism product constrains the growth of tourism. The image of India as a countryoverrun by poverty, political instability, safety concerns and diseases also harms thetourism industry.

5. Customer expectations: 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.

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

7. Human resource development: Some of the services required in the tourism and hotelindustries 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

7/30/2019 Project 3 395

9/17

The Top Players( Leader) In Hospitality Sector Include The Following:

ITC HotelsIndian 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 criticalfactors that determine profitability. ARR depends on location, brand image, star rating,

quality of facilities and services offered. The occupancy rate depends on other seasonalfactors. India is an ideal destination for tourists. Approximately 4.4 million tourists visit Indiaevery 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 allthese factors could result in a strong emergence of budget hotels, which could potentiallylower the cost of travel and related cost.

8

SCOPE IN RURAL AREAS

7/30/2019 Project 3 395

10/17

. The New Tourism Policy released in May 2002 has outlined the following policyinitiatives 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, wealthcreation, development of remote and rural areas, environment preservation and socialintegration. The policy also aims to spruce up economic growth and promote Indiasstrengths 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 soas to enable both the central and state governments to participate in the development ofthe 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 to100%. Approvals for Technology agreements in the hotel industry are available on anautomatic basis, subject to the fulfilment of certain specified parameters. Concession rates on customs duty of 25% for goods that are required for initial settingup, or for substantial expansion of hotels. 50% of profits derived by hotels, travel agents and tour operators in foreign exchangeare exempt from income tax. The remaining profits are also exempt if reinvested in atourism 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 precedinglicensing 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.

9

7/30/2019 Project 3 395

11/17

BENEFITS TO CUSTOMERS

Since the economy opened up in 1991, several foreign chains have entered the Indianmarket, including Hyatt, Four Seasons, Hilton, Regent, Radisson and Holiday Inn. Theresult 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 forcedIndian hotel groups to improve their standards. The customer has benefited in manyways. The influx of foreign players has led to major price wars in the industry. In anattempt to woo customers, Indian hotels have reduced their tariffs significantly.According to one hotelier, "India has become a normal market - like others in the Westor in Southeast Asia with demand and supply determining the price".

10

7/30/2019 Project 3 395

12/17

Future tense

TRENDS IN HOSPITALITY SECTOR

Trends That Will Shape The Future Of Hospitality Sector Are:

1. Low Cost Carriers2. Budget Hotels3. Service Apartments4. Technology5. 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 ifhotel prices are increasing. LCCs are a good option for business travelers, as theyhave advantages like low costs, more options and connectivity.

2. Budget hotels: More than 50 per cent of occupancy of a majority of hotels comes fromthe business travel segment. The average room rate (ARR) realized from businesstravelers is normally higher than from leisure travelers. Heightened demand and thehealthy 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.

3. Service apartments: The concept of service apartments, though a recent phenomenon inIndia, is an established global concept. Villas in Spain, flats in the UK and apartmentcomplexes 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 tomaintain or look after it. Ideally suited for medium-to-long staying guests, serviceapartments are a natural choice for corporate

11

4. Technology: Travel and technology have become inseparable. Technology ismaking its own advances with high-tech video conferencing facilities, web camerasand virtual reality mode of conferencing. On-line bookings, e-ticketing, Wi-Fi Internet

7/30/2019 Project 3 395

13/17

connectivity, easy access to information, etc. are just a few areas where technologyhas completely changed the the way we travel.

5. Loyalty travel:Today, airline-credit card company tie-ups have brought a wholerange of benefits to the travelers. These include insurance cover, upgrades, freetickets, access to executive lounges, and a host of other goodies.

12

SWOT

7/30/2019 Project 3 395

14/17

STRENGTHS

1. Natural and cultural diversity: India has a rich cultural heritage. The "unity in diversity" tagattracts most tourists. The coastlines, sunny beaches, backwaters of Kerala, snow cappedHimalayas and the quiescent lakes are incredible.

2. Demand-supply gap: Indian hotel industry is facing a mismatch between the demandand 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 fivestar hotels. This has led to the rapid expansion of the sector.

3. Government support: The government has realized the importance of tourism andhas proposed a budget of Rs. 540 crore for the development of the industry. The priorityis being given to the development of the infrastructure and of new tourist destinations andcircuits. 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 hospitalitymarket is expected to increase over the long-term. New budget and star hotels are beingestablished. Moreover, foreign hospitality players are heading towards Indian markets.

WEAKNESSES

1.Poor support infrastructure: Though the government is taking necessary steps, manymore 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 hasbeen hampering its growth prospects. Whatever steps are being taken by the governmentare implemented at a slower pace.

13

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

7/30/2019 Project 3 395

15/17

OPPORTUNITIES

1.Rising income: Owing to the rise in income levels, Indians have more spare money tospend, which is expected to enhance leisure tourism.

2. Open sky benefits: With the open sky policy, the travel and tourism industry has seenan increase in business. Increased airline activity has stimulated demand and has helpedimprove the infrastructure. It has benefited both international and domestic travels.

THREATS

1. Fluctuations in international tourist arrivals: The total dependency on foreigntourists can be risky, as there are wide fluctuations in international tourism. Domestictourism needs to be given equal importance and measures should be taken to promote it.

2. Increasing competition: Several international majors like the Four Seasons, Shangri-La and Aman Resorts are entering the Indian markets. Two other groups - the CarlsonGroup and the Marriott chain - are also looking forward to join this race. This willincrease the competition for the existing Indian hotel majors

14

Marketing mix in the hotel industry :

A modern hotel is a major establishment, manned by trained personnel from hotel schoolsan institution of commercial hospitality and a building or an institution where the guestexpect refined behavior, excellent services and personal attention

7/30/2019 Project 3 395

16/17

In order to market a hotel product the combination of different sub mixes is veryimportant. The combination of core and peripheral services, the creative promotionaldecision, the pricing strategy that will enable the hotel to maintain the commercialviability, The place and the people are the important decision making areas in theformation of sound mix for hotel industry.

THE PRODUCT:

The core service / product of the hotel industry which satisfies the basic needs of thecustomer is the rooms. The role of the industry is to provide basic accommodationfacilities. Apart from this there are other tangible elements that are added like roomservice, 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 discountscan be clubbed with higher rtes during season also. Differential pricing can also beadopted based on the type of client the hotel caters to.

PROMOTION MIX

Promotion schemes should carried on regularly promoting the hotel, the advertisingshould 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 proximityto 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

7/30/2019 Project 3 395

17/17

http://www.tourismofindia.com

http://www.tourismofindia.com/http://www.tourismofindia.com/