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A PROJECT REPORT

ON

To Study the scope of future expans ion of Hotel Business

at

Pranaam hotel’s pvt. Ltd.

BY

NIKHIL GORAKH KAD

MBA- (2014 – 2016)

IN PARTIAL FULFILLMENT OF

“MASTER’S IN BUSINESS ADMINISTRATION” SAVITRIBAI PHULE PUNE UNIVERSITY

M.A.E.E.R s MIT SCHOOL OF MANAGEMENT PUNE: 411038

CERTIFICATE

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This is to certify that Mr. NIKHIL GORAKH KAD of MAEER’s MIT School of Management has

successfully completed the project work titled “Future expansion of business of

Pranaam hotel’s pvt. Ltd.” In partial fulfillment of requirement for the award of Masters of

Business Management prescribed by the SAVITRIBAI PHULE PUNE UNIVERSITY.

This project is the record of authentic work carried out during the academic year

2015-16.

Prof. Nirav Suratwala Prof. Dr. Sayalee Gankar

Internal Project Guide Director

MITSOM MITSOM

DECLARATION

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I, MR. NIKHIL GORAKH KAD hereby declare that this project is the record of authentic work carried

out by me during the academic year 2015-16 and has not been submitted to any other University or

Institute towards the award of any degree.

NIKHIL GORAKH KAD

ACKNOWLEDGEMENT

In two years course in Master’s In Business Administration (MBA), Summer Internship is a part of it

which provides practical exposure about the real life working environment. So it is an important and

challenging part of two years course curriculum.

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My project work is supported by unparallel help & guidance from respected persons with whom I have

been acquainted with in the course of the project. I feel extremely satisfied to be able to acknowledge

their help & support in completion of my project work. I express my gratitude & thanks to Prof.

NiravSuratwala my project guide whose inspiring suggestions & guidance made it possible for me to

go on with the project & had a great influence on my thinking. I owe a considerable debt of gratitude toProf. (Dr). Sayalee Gankar the director of MITSOM for helping to get my Academic Career started.

It has been a great pleasure & an enriching experience working with “PRANAAM HOTEL’S PVT.

LTD” & Mr. Gorakh M. Kad who guided me for the complication of this project.

He gave us all the important information required for the project. Without his help the project

would not have been possible.

I am grateful to all the people who have given suggestions to improve the project.

Before concluding I must convey regards & heartiest gratitude to my family & friends who have

expended their unbelievable co-operation directly or indirectly in helping me to complete this project.

NIKHIL G. KAD

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CONTENTS

Sr.No. Title Page No.

Executive Summary 6

1 Introduction 3-8

2Literature Review

18-20

3 Research Methodology 22-24

4 Conclusion & Suggestions 26-29

5 Management Learnings 30-36

6 Bibliography 38

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EXECUTIVE SUMMARY

A. International Business in India looks really lucrative and every passing day, it is coming up with only

more possibilities. The growth in the international business sector in India is more than 7% annually.

There is scope for more improvement if only the relations with the neighboring countries are stabilized.

The mind-blowing performance of the stock market in India has gathered all the more attention (in

comparison to the other international bourses). India definitely stands as an opportune place to explore business possibilities, with its high-skilled manpower and budding middle class segment.

This topic was particularly chosen for understanding the international business from the point of view to

improve the service and the quality of the hotel & how the hotel can expand its business in international

region.

The project aims at the customer satisfaction and how the business can grow internationally in nearing

future. The exploration of new region for business and how the business will grow by exporting theservice from india to other nation & importing the franchisee from other nation to our region & to

improve the employee’s work style and the management of the hotel.

My finding is this, i had took an experiment of the review notes for the hotel, Plus direct communication

with our customers from which i was able to understand the needs of customers and what our customers

really want.

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Chapter 1

Introduction

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1. INTRODUCTION

The 3 commandments of this philosophy are: -

The Customer is the King

In God only we trust, rest all gather data

Variation is the enemy of all processes

Manufacturing, automobile, aviation, medical transcription, software, ITES, banks and even other

financial institutions are following this methodology.

The question then is why not Hotels?

If the first commandment of Six Sigma talks about the customer, how can we leave out an industry which

is the epitome of customer service and thrives purely on achieving customer delight consistently.

In an industry where customer interactions occur on an hourly basis, each customer touch point is critical

for building personalized service credibility and developing customer affinity.

SERVICES MARKETING

THE CONCEPT OF SERVICES

To define service narrowly as only relating to service industries is clearly incorrect. Today there is an

increasing trend to attempt to differentiate product by service elements.

Understanding the position of a particular service on each continuum, and the position of competitors, is

an important step towards finding possible sources of competitive advantage.

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POSITIONING AND DIFFERENTIATION OF SERVICES

The positioning of a restaurant is a very important aspect for the marketers since it helps them to

recognize the component characteristic of the services the customers need. Combining an analysis of

customer needs on a segment-by-segment basis with an understanding of competitive offerings enables

the marketer to identify opportunities for serving a particular segment’s needs better than anyone else. If

offering such a service is seen as compatible with the organization’s resources and value, then the firm

should be able to develop a profitable niche for itself in the market.

Here we have to understand that the buyers have different needs and hence they are attracted to different

offers. It is therefore, important to select distinguishing characteristics, which satisfy the following

criteria.

Importance – the difference is highly valued to a sufficiently large market.

Distinctiveness- the difference is distinctly superior to other offerings, which are available.

Communicability – it is possible to communicate the difference in a simple and strong way.

Superiority – the difference is not easily copied by competitors.

Affordability – the target customer will be and is willing to pay for the difference. Any additional cost of

the distinguishing characteristic(s) will be perceived as sufficiently valuable to compensate for any

additional cost.

Profitability – the company will achieved additional profits as a result of introducing the difference

It is very important for the restaurants to position their services and products to recognize the component

characteristic of the services the customers need. It helps the Hotel managers to identify opportunities for

serving a particular segment’s needs better than anyone else.

SERVICE QUALITY:

One of the major ways a service firm can differentiate it is by delivering consistently higher quality

than its competitors do. Studies have shown that service quality affects customer satisfaction, which

in turn affects buying intentions. Outstanding service quality can give a service company to

superior sales and profit performance. The key is to exceed the customer’s service quality

expectations.

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HUMAN RESOURCE STRATEGIES

The subject matter of personnel policies is as wide as the scope of personnel management. In most

companies, polices are established regarding various functions of personnel management which are

as follows:

Employment: All policies concerning recruitment, selection, and separation of employees are

included in this function. Employment policies should provide clear guidelines on the following

points:

Training and Development:

Attitude towards training- whether it is regarded as a device overcome specific problems or as a

continuing relationship between superior and subordinate.

Compensation

Working Conditions:

Employee Services and Welfare:

Types of services - housing, transportation, medical facilities, education of children, group

insurance, credit facilities, purchase of company's products at discount, company stores, social

security, etc.

Industrial Relations:

International Region

Present Marketing Strategies of Major Players

As occupancy rates is premium hotels drop, and the demand for mid range and budget hotels is

growing, most hotel chains are now turning to the less glamorous segments for growth. Falling

occupancy rates, at an average of 10-15% in the past year, has made it clear that hotels can no

longer rely on their premium categories alone to rake in the kind of money that they were:

Consider the case of ‘ The East India Hotel’ owned Oberoi chain of hotels, that is investing Rs.1500 crore over the next four years. The thrust of this investment will be for leisure destination

properties & budget hotels in Jaipur, Cochin, Delhi, Udaipur, Mysore, Madras, Coimbatore,

Varanasi Jaisalmer & Jodhpur.

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Hotels Low Occupancy in a Row

IT was a year of waiting for the Indian Hotel Industry - for the guests who never came and the

Government that dithered and stumbled as it tried to put forward a tourism policy to lure foreign

tourists to India.

The year saw the red carpet rolled out for foreign tourist with their dollars but only 2.55 million of

them are expected to touchdown by the end of the year as per the Government estimates - a dismal

performance by any standards.

With the turn around in the economy in the second half of the year and a new Government installed

things will hopefully be better in the new year as foreign investment creeps up slowly.

A silver lining was offered by the domestic tourists whose number continued to swell as the Indian

middle-class zig zagged across the country discovering and rediscovering the eternal tourist dream

foreign Indian hoteliers to recognise the home market.

This could be gauged from the fact that hoteliers. Including the big hotel chains, have started

focussing on budget hotels and four-star hotels exemplified by the Trident Hotels. Major hotel

groups have also been on an expansion and revocation spree during the year in preparation for

better times in the new millennium. Like ITC Hotels is currently expanding its Maurya Sheraton

Hotel in New Delhi besides planning to open one more five-star hotel in the Capital and also in

Mumbai by the middle of next year.

The year also witnessed major international chains setting up shops in India as the Marriott in Goa

readies itself for an opening by the end of this year.

The Hilton, Chennai, heralded the return of the American hotel major even as the Radisson group

expanded its presence in India through several sub-brands.

Along with this, all major chains have also expressed interest in acquiring stake in the Government-

owned India Tourism Development Corporation (ITDC) managed hotels which have been put on the

block for sale.

The New Year will have to see the Government take a final decision on this front if it wants

privatisation in the sector to take off.

Several States have shown considerable progress on this front, especially Madhya Pradesh which

has already put up various properties for long term lease to the private sector as the State

Government takes on the role of facilitator leaving actual management of the hotels and resorts to

the private entrepreneur.

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Another problem which remains unresolved during the year was the open sky policy which the

entire tourism sector has been advocating to bring in foreign tourist.

Hotel Occupancy Decreases

The Indian Hotel Industry has registered a fall in occupancy levels from 52.2 per cent in 1999-2000

to 49.7 in 2000-01. While average room in the same period increased by 2.7 per cent, a decrease in

revenues of 2 per cent in 2001-02 was recorded.

Inspite of falling revenues, the Indian Hotel Industry showed an inability to manage departmental

operating expenses such as rooms, Food and Beverages, telephone etc., with these expenses rising

10.2 per cent during this same period.

Undistributed operating expenses like administration, marketing, operation and maintenance too

were uncontrolled and rose by 10.9 per cent.

Food sales showed a growth of only 0.1 per cent, perhaps reflecting the supply and popularity of

independent restaurants in many Indian cities, as well as consumer resistance to the exorbitant

pricing and tax levels at in-hotel restaurants. Telephone revenue showed a fall of 8.7 per cent,

reflecting the increasing use of E-mail and mobile phones.

"In the changing market scenario in the country the hospitality industry has to demonstrate an

ability to drastically cut costs and improve productivity otherwise many hotels will soon find their

existence threatened. There must be paradigm shift towards a value proposition to consumers and

the industry must reinvest itself in terms of product, service and pricing.

The government must rationalise tax structure, which in some cases as high as 40 per cent.

The significance due to reliability and viability of the database drawn from the audited results of

participating hotels form almost all the major chain and key independent hotels.

The five leading countries on rooms yield are Italy, France, Russia, UK, Sweden, while the bottom

five are Egypt, Pakistan, India, Kenya and Morocco. Even in occupancy, India ranks third from the

bottom after Kuwait at 42.7 per cent and Kenya at 47.5 per cent.

As a result, operating profit recorded a staggering fall of 20 per cent from 40.9 per cent to 33.3 per

cent.

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Hotel Industry Seeks Service Tax Abolition

The hotel and restaurant industry has sought abolition of five per cent service tax. There is no

justification in levying service tax as they are already paying 10 per cent expenditure tax and sales

tax on the same bill.

The revenue collected by the Government by way of service tax is the range of Rs.100-150 crores.

The Government had imposed service tax on the industry in 2002, mainly targeting the unorganised

sector of caterers, who did not pay any tax on transactions. But the Government exempted service

tax for shamiana contractors last years.

The hotel and restaurants industry to be included in the list of infrastructural facilities. If the hotel

industry is included in the list of infrastructure sectors, then 100 per cent exemption from income

tax will be available for the first five years. Loans from financial institutions can also be availed

of.

On recession in the industry, the industry was hoping to come out of it in 2002; but hopes were

dashed since the growth in the peak season of December to February was just three to four per cent.

The industry is expecting a growth rate of over five per cent in the coming years. The trend of

brand hotels entering into contracts to manage other hotels seems to be gaining ground and would

be a welcome boost to the smaller hotels to become a part of the organised sector.

Hotel Sector Demands All Export Incentives

The hotel industry has demanded the status of an export industry with all tax incentives at par with

computer software exporters besides withdrawal of expenditure tax on guests making payments in

foreign exchange.

In its pre-budget memorandum although the hospitality industry had been granted the status of

export industry last year, in reality it had only got the status of export industry last year, in reality it

had only got the status of export house as the Government had not extended all incentives as

available to other exporters.

"Hotels and tourism units earning foreign exchange are not treated as exporters and are not treated

as exporters and are not given all the incentives available to other exporters. The Government

should new give us the balance of the incentives available to exporters.

The industry had last year been given income tax incentives facilities of EPCG (Export Promotion

Capital Goods) imports, EEFC (Export Earner Foreign Currency) accounts and some other benefits.

Pointing out that exporters are not required to pay any local taxes on their foreign exchange

earnings.

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COMPANY PROFILE

Name of Company: Pranaam Hotel’s Pvt. Ltd.

Address: Pranaam hotel,

Daulat vihar,Near Bus depot.

Hadapsar,Pune-28.

Board of Director

Mr. Gorakh M. Kad - Founder & director.

Mission Statement

“To Provide best service to the customers, by giving one of the best mouth watering food they can have,

& to expand business on international level”

Values of Company

Customer Focus

Passion Excellence

Continuous all round innovation

Transparency and Integrity

People development

Social Responsibility

Historical Background and Current Status of the Company:

Pranaam Hotel’s Pvt. Ltd. was established in the year 1999. It was one of the earliest entrants in the

particular rigional area and is at the top till date. It is the market leader in the regional area.

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THEORETICAL BACKGROUND

Abstract: It is an attempt to understand the role of quality improvement process in hospitality industry and

effectiveness in making it sustainable business enterprise. It is a survey of the presently adopted quality

management tools which are making the hotels operations better focused and reliable and meet the

customer expectations.

Descriptive research design is used to know the parameters of service quality management in hospitality

industry. Exploratory research design is undertaken to dig out the service quality management practices

and its effectiveness. Data analysis is done and presented; hypothesis is tested against the collected data.

Since the industry continuously tries to improve upon their services to meet the levels of customer

satisfaction; Study presents tools for continuous improvement process and how it benefits all the stake

holders. It can be inferred from the study that the hotel implement continuous improvement process and

quality management tools to remain competitive in the market.

The study involves hotels of highly competitive market with limited number of respondents. This limits

the study to hotel industry and has scope of including other hospitality service providers as well.

Keywords: Customer Satisfaction, Perception, Performance Measurement, Continuous Improvement

Process. Introduction Hospitality industry has gone through many changes since its inception. There are

tremendous changes occurred over a period of time due to various reasons. The reasons may include

changing patterns in customer preferences, industrialization, revolution in transport and aviation,

changing laws and regulations and so on.

During the last few decades there is phenomenal change experienced in the hospitality industry and the

reason being is Service Quality. It has brought paradigm shifts in the operations of hospitality industry.

The overall perspective of the industry is changed due to introduction of new techniques and methods of

handling various processes.

Awareness among the hoteliers and the guests has fueled the inventions focused on operations. The

increased sagacity of customer satisfaction led to the use of high standards of service in industry. The new

service parameters made the hoteliers to implement quality management as an effective aid. It has

significantly affected hotels' ability to control and adapt to changing environments. The use of new

techniques began with the simple motive of sophistication and precise activities in the given field of

operation which may result in high standards of service in global economy and has allowed the rise.

Conceptual Framework This study of Service quality management in hospitality industry is an attempt to

understand the presence of quality improvement process in hospitality industry and effectiveness in

making it sustainable business enterprise. It is a survey of the presently adopted quality management tools

which are making the hotels operations safer, focused and reliable and meet the customer expectations.

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As the hospitality industry becomes more competitive there is an obvious need to retain clientele as well

as increasing profitability and hence management professionals strive to improve guest satisfaction and

revenues. The management professionals whom are striving for these results however often have limited

understanding of research surrounding the paradigms of guest satisfaction and loyalty and financial

performance. This research paper shall enlighten some of the variables and important facts of service

quality resulting into guest satisfaction. Review of Literature Customers of hospitality often blame

themselves when dissatisfied for their bad choice. Employees must be aware that dissatisfied customers

may not complain and therefore the employees should seek out sources of dissatisfaction and resolve

them.

(Zeithaml V., 1981, p.186 -190) It is said that service quality is what differentiates hospitality sector,

however there is not an agreed definition of what service quality is. There is however a few different

suggestions of how to define service quality. Dividing it into technical, functional and image components;

(Greenrooms C., 1982) another is that service quality is determined by its fitness for use by internal and

external customers. It is accepted that service quality is depends upon guest's needs and expectations. A

definition of service quality state that quality is simply conformance to specifications, which would meanthat positive quality is when a product or service specific quality meet or exceed preset standards or

promises. This however seems like an easy view within the hospitality industry.

The alternative definitions read as follows:

1) Quality is excellence;

2) Quality is value for money;

3) Quality is meeting or exceeding expectations.

This appears better aligned with ideas which exist within hospitality management than the first mentioned

simplistic approach. Service quality and value is rather difficult to calculate, companies must therefore

rely on guest's quality perceptions and expectations to get consistent results which is best achieved by

asking guest's questions related to expectations and their perceptions of the service quality, which can

effectively be achieved through carefully designed surveys. A major problem with service quality is

variability and limited capability and robustness of the service production process. (Gummesson E., 1991)

Hotels consumers have well-conceived ideas about service quality and quality attributes are considered

important for most types of services, the absence of certain attributes may lead consumers to perceive

service quality as poor. The presence of these attributes may not substantially improve the perceivedquality of the service. Most customers would be willing to trade some convenience for a price break, and

that the behavior, skill level and performance of service employees are key determinants of perceived

quality of services. This is a major challenge in improving or maintaining a high level of service quality.

(Tigineh M. et al 1992) Studies focusing on service quality management suggest that service firms spend

too little effort on planning for service quality. The resultant costs of poor service quality planning lead to

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lower profitability as part of the service failures. (Stuart F., et al 1996) When discussing satisfaction, it is

important to understand that guest's evaluation of service comprise of two basic distinct dimensions:

service delivery and service outcome (Mattila, 1999). Research indicates that how the service was

delivered (perceived functional quality) is more important than the outcome of the service process

(technical quality). This research clearly indicates that effort by staff have a strong effect on guest's

satisfaction judgments. Companies delivering services must broaden their examination of productivity to

help settle conflicts – the leverage synergies – between improving service quality and boosting service

productivity. ( Parasuraman A. 2002) Akey activity is to conduct regularly scheduled review of progress

by quality council or working group and management must establish a system to identify areas for future

improvement and to track performance with respect to internal and external customers. They must also

track the changing preferences of customer. Continuous improvement means not only being satisfied with

doing a good job or process. It is accomplished by incorporating process measurement and team problem

solving an all work activities. Organization must continuously strive for excellence by reducing

complexity, variation and out of control process. Plan-DStudy-Act (PDSA) developed by Shewhart and

later on modified by Deming is an effective improvement technique. First Plan carefully, then carry out

plan, study the results and check whether the plan worked exactly as intended and act on results by

identifying what worked as planned and what didn't work. Continuous process improvement is the

objective and these phases of PDSA are the framework to achieve those objectives. (Besterfield D. et al

2003) The 'servicescape' -is a general term to describe the physical surroundings of a service environment

(Reimer 2005, p. 786) such as a hotel or cruise ship. Guests are sometimes unconsciously trying to obtain

as much information as possible through experiences to decrease information asymmetries This causes

guests to look for quality signals or cues which would provide them with information about the service,

which leads us to 'cue utilization theory'. Cue utilization theory states that products or services consist of

several arrays of cues that serve as surrogate indicators of product or service quality. There are both

intrinsic and extrinsic cues to help guests determine quality. Consequentially, due to the limited tangibility

of services, guests are often left to accept the price of the experience and the physical appearance or

environment of the hotel or cruise ship itself as quality indicators. Though there are many trade and

academic papers discussing guest satisfaction has been published, one can note that limited attention has

been paid to the value perception and expectations guests have towards product delivery and influence

price guests pay for an experience has on satisfaction and future spending. Furthermore it is also known

that the role of pricing in relation to guest. Satisfaction has been largely ignored. Considering that guest's

expectations has gone up in the past few decades within the hospitality industry, and continue to do so,

does not make it any easier for management to understand what guests expect.

American society for quality control defines quality as the totality of features and characteristics of the

service or product that bears on its ability to satisfy customer needs. (Kotler P., 2006, p.34 -35). Unlike

physical products, services pretested before purchase. (Kotler P., 2006, p.59) Therefore, buyers look for

some tangible evidence that will provide information and confidence about service. Something like the

exterior of the restaurant or hotel is the first thing on arrival of the guest; cleanliness of the public areas

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etc provides clues about service. High quality builds loyal customers and creates positive word of mouth.

It determines customer satisfaction, which affects repeat business, many studies have shown that it costs

four to six times to create a customer as it does to maintain an existing one. (Kotler P., 2006, p.420). On

an average, one satisfied customer will tell five others while a dissatisfied customer will tell ten or more

others. To balance the negative word with positive word, two or more person should leave as satisfied for

very one person leaving unsatisfied. Most hospitality professionals do understand that hotels that have

more satisfied guests experience higher guest loyalty and perform better financially compared to their

competition. The long-term success is based on guest loyalty and retention which consequentially results

in future revenue. Methodology Objectives of the study: It is an attempt to understand the role of service

quality in improvement of customer satisfaction in today competitive hospitality industry.

However, the specific objectives of the study are

1. To understand the influence of service quality management on improvement of customer satisfaction.

2. To know the benefits of practicing continuous improvement program in hotel operations.

Sampling Design: The research on service quality management in hospitality industry required multiple

methods of data sourcing. Various resources contributed in different ways of collection of data and

analyzing it for the research paper. Convenient sampling method is used for conducting this study.

Methods of Data Collection: Primary data sources- The study required survey of current quality

management approaches used in hotel industry. It also involved the continuous discussions with service

providers and the developers of various standard operating procedures.

The visit to hotels proved as major source of information. For this study observation method and

questionnaire survey were selected for primary data collection. Major sources of primary data include the

respondents: Hoteliers, front line staff and management level executives. Multivariate questions were

presented to the respondents and responses formed the main part of data. Purposive sample method with

more than 30 respondents from various leading hotel is used for this study. It also included the brief

interview and discussion to know and understand the presence of quality improvement practices

implemented in their hotels. The study required survey of current service practices used in hotel industry.

Telephonic conversation with peers and friends in hospitality industry worked a wonder giving lots of

inputs in drafting this paper. Secondary data sources- For this study, data sources such as hospitality

journals, Books on service quality management, organization behavior, URL on internet of various

hospitality majors. Referring hospitality publications were helpful in knowing the current inventions in

industry.

Research Tools: Descriptive research design is used to know the attributes of service quality management

in hospitality industry. Exploratory research design is undertaken to dig out the service quality

management practices and its effectiveness. Data analysis is done and presented in tables. The hypothesis

is tested against the collected data.

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Variables denote quantitative data such as price paid for products and services. Measure: Critical to

quality characteristics are established and factors contributing to good or bad service are identified.

Analyze: Attributes and variables are measured to find any possible causes of defect or low quality of

service. Improve: The influence of the causes for defects and questionable quality are quantified and

acceptable benchmarks for the same are defined. The technical framework within which quality assurance

systems develop is well recognized. Likewise, although not as well recognized, the non-technical

framework which affects quality assurance systems is nevertheless an important element to be discerned.

While there may be some awareness of the technical and non-technical interface in quality assurance

systems, this is generally not acknowledged and, at worst, treated as separate. It is the argument of this

paper that the interface between the technical and non-technical framework must be acknowledged

explicitly to achieve effective quality management. In essence, the systemic view which links these two

frameworks must be recognized for managing total service quality. With escalating competition in the

hotel industry, the quality becomes top priority in maintaining competitiveness. This questionnaire handed

to 30 respondents of given hotels is to understand the performance of their establishments on given

attributes, variables and are measured with multivariate questions.

The research questions and hypothesis of the study is presented as under:

Hypothesis 1: Implementing service quality management as a tool for improvement in Customer

Satisfaction. This hypothesis is tested by responses to specific questions related to SQM and its

implementation and is presented as below. Change in Customer Satisfaction Index on practicing SQM

program: 19 were improved, 7 were indifferent and 4 were declined. Importance of SQM in

Customer Satisfaction: 22 reported high satisfaction, 5 reported mid-leveled satisfaction and 3 reported

low satisfaction. Frequency of Evaluating the SQM program: 3 did it frequently 10 monthly and 17

quarterly. Specially designed SQM Programs to improve Customer Satisfaction: 18 said they have done

this, 5 said they have not and 7 said they were planning to do so.

Means to Evaluate Customer Satisfaction on implementation of SQM:

16 said that they have used the in-house questionnaire method, 10 have used outside agencies and 4 have

used suggestion box.

Dedicated staff for matters of SQM and Customer Satisfaction: 17 reported that they have taken

measures, 10 reported they haven't any and 3 have planned to do it.

Reasons to implement Service Quality Management Programs: 3 reported they are doing it for the sake of

competition, 4 were doing it for branding and 23 were doing it for customer satisfaction.

Effect of Quality Improvement on Bottom Line: 22 said they observed positive effects, 6 said it was

indifferent and 2 said they found it negatively effective.

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For Customer Satisfaction; area which requires Continuous Improvement Program: 22 replied that it is

more at the Guest Relations & Service, 5 replied it is production and 3 replied marketing.

From the above data analysis with simple majority of opinion, it can be inferred that Service quality

management is an important factor in improving the customer satisfaction and which results in improved

bottom line. Many variables of customer satisfaction are tested again and again and are modified to suit

changing customer requirement. The matching of customer perception to the actual delivery of service isa major task in the improvement of quality. Hypothesis 2: Practicing Continuous Improvement program

has benefited hotel. This hypothesis is discussed with respondents to length and tested by responses to

specific questions as presented as below. Leadership in the field of service quality excellence: 14 thought

it was required, 10 had indifferent thoughts and 9 thought it is not required. Majority created opportunity

to learn from best practices and increased customer satisfaction by increasing efficiency in service

delivery and improved employee satisfaction and engagement. Many identified strengths and weaknesses

across each department and have set common goals and created a customer service culture amongst staff,

which results in repeat business and creates loyal customer. The collected data is analyzed with simple

majority of opinion. It can be inferred that continuous improvement programs adds value.

Hotel business being capital intensive and which requires long wait for returns on investment requires

improving continuously as per the changing patterns of guest requirements and perception of quality. New

processes are designed; tested and them the staff is trained to practice it. Conclusion It can be inferred

from the study that the hotel implement continuous improvement process and quality management tools

to remain competitive in the market. The ever changing perception of customer for hotel industry requires

the hotels to match the perception of customer by delivering quality services. This leads to higher levels

of customer satisfaction and customer loyalty. The study involves hotels of highly competitive market

with limited number of respondents. This limits the study to hotel industry and has scope of includingother hospitality service providers as well. The direct response from hotel guest could not be collected

since it was unavailable for external public

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Chapter 2:

LITERATURE REVIEW

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2. LITERATURE REVIEW

Global Investments in hospitality Sector has shown an increasing trends over last few years. Asia is

Viewed as Top Global Prospect for Hospitality Investment. Emerging markets in Asia are unseating

Europe as the epicenter of new hospitality investment and development while investors in the United

States are switching their focus from the acquisition of existing hotels to developing new properties. 3

According to the Ernst & Young Hospitality Investment Survey, which surveyed more than 300 investors

and industry executives worldwide, capitalization rates for hotel properties are expected to stabilize and

possibly even increase over the short-to-mid-term in the US. Even with the dramatic shift in the debt

markets over the last few months, hotel industry sector fundamentals continue to be strong

Hospitality Industry in India

The history of the hotel industry is as old as the history of tourism and travel industry. In fact, both are

two sides of the same coin. Both are complementary to each other. Hotel is an establishment which

provides food, shelter and other amenities for comfort and convenience of the visitors with a view to

make profit (Chakravarti, B.K). Hotel is a commercial establishment and intends to provide visitors with

lodging, food and related services with a view to please them so as to build goodwill and to let them carry

happy memories.

In general, a "hotel" is defined as a public establishment offering visitors against payment two basicservices i.e. accommodation and catering (Ghosh, Biswanath). However, during the last few years great

changes have taken place in the scope of hotel industry. During 6th century BC, hotels were known as

"inns" or "dharamshalas" and were providing only food and overnight stay facilities. At that point of time

the standard of an inn was quite normal with earth or stone floor, common bedroom and simple food. As

travel became easier, inns grew in size and number. The spirit of competition raised the standard of inns.

Industrial revolution and trade expansion resulted into increase in the number of visitors crossing

international border. In this era, room furnishing and catering received greater attention. Emphasis was

made on accommodation with spacious assembly hall and dinning hall for organising functions and

parties etc. But the real growth of the modern hotels started in the last decade of the eighteenth centurywith the establishment of City Hotel in New York. After that a large number of hotels of various types and

grades came into existence in different countries to meet the requirements of different categories of

visitors. Modern hotels provide a number of services to the visitors. The services vary according to the

aim, location, type, size and grade of the hotel.

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As per Negi Jagmohan,

Generally, the important activities of a hotel include –

(1) Direction

(2) Réception

(3) Provision of accommodation rooms/floors

(4) Cuisine Meals and Refreshments

(5) Restaurant

(6) Bar

(7) Bell to provide information to the guests

(8) Entertainment and Recreation

(9) Sight seeing

(10) Transport facilities

(11) Parking space

(12) Swimming pool

(13) Bathroom facilities

(14) Lounge facilities

(15) Garden

(16) Shopping facilities

(17) News stand

(18) Tobacco and Cigarettes

(19) Telephone

(20) Television

(21) Radio

(22) Laundry and Cleaning

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(23) Telex service

(24) Sporting installations, Tennis court, Golf and Squash

(25) Installation for children

(26) Banquet hall

(27) Conference facilities

(28) Convention facilities

(29) Exhibition areas

(30) Health club

(31) Business centre etc.

Ph. D Thesis Suruchi Pandey submittd to TMV After 2nd world war,

there were several distinct trends in the hotel industry. First, hotel industry became highly profitable

mainly because of auxiliary services. Another feature was the growth of hotel chains. In most chain

operations, some hotels are owned by the corporation while others are leased for operation to the group

having experience in hotel business. The high cost of land in the heart of the city often forced a successful

hotel to maintain auxiliary shops such as drug stores, flower shops, haberdashery and dress shops, beauty

saloons and news stands to serve both hotel guests and the city residents who live or work near the hotel.

Although such shops may be staffed and operated by the hotel but usually these are leased out to outside

concerns (American People Encyclopaedia).

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Chapter 3:

RESEARCH METHODOLOGY

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3. RESEARCH METHODOLOGY

After completing the literature review on training in hospitality industry the Gap for status report on

training practices was identified. This chapter outlines the research methodology adopted to complete the

study in a scientific manner.

Transformation – whether of the organization or of individual – always help liberate enable people.Theindustry was earlier part of travel and tourism but now it has a separate industry status. Like aviation

industry which was part of travel & tourism, hospitality industry. The major challenge of this sector is

shortage of skilled employees along with the challenge of attrition rate. Skilled chefs and managers are in

great 8 Status report is preconditioned form of evaluation of training effort in any organization. Presently,

In the absence of such status report in hospitality industry, researcher has embarked on the status report as

follow. Ph. D Thesis Suruchi Pandey submittd to TMV demand. Managers require huge range of

competencies such as, people management, viable skills, business insights, analytical skills, succession

planning, and resource development in order to get success in this sector. In addition to that, employees

are not enough trained on Business Etiquettes, Courtesy, and Business Communication. Hospitality is allabout handling people. So an employee must have right attitude, tolerance, and listening skills in order to

move up the hierarchy. There is still a long way to go to inculcate good public relations, interpersonal

skills. With the increase in competition due to the coming up of major players and investments in

hospitality industry sector, the need to train employees has increased more than ever before. The major

players are now strategizing to increase the turnover of the customers by training their employees on

Communication, Dining and Business etiquettes, etc. Some of the essentials required by hospitality sector

training are:

• Good infrastructure • Trained trainers

• Quality of content • Certification of training course

• Food Production • Food and Beverage Service

• Front Office • Housekeeping

• Information Technology • Customer Relationship Management

• Supervisory Skills • Interpersonal Skills

• Managerial Skills

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Employers and Management:

Hospitality Industry has achieved an exponential growth in last few years. Many new set ups have started

and old ones are expanding its branches in terms of more rooms, more services, facilities, operations in

new cities. With this growth human resources functioning has become a challenge. Specially availability

of trained and motivated staff is the major requirement. Present study will help employers understand

industry trend and gear up their own training facilities to meet Human resource requirements. SpeciallyHuman resource professionals can make use of this study while planning Human resources.

The findings and suggestions of the present Study is already discussed with office bearers of Pune

hoteliers association..

Employees: Employees working in hospitality industry or aspiring to join the industry can make use of

present study by knowing the kind of practices existing and training expectations of the industry.

Academicians: Present study can be of help to two many disciplines in studies. Specially hospitality /

hotel management, Human resource management and general management. The research work can also be taken further by other academicians in doing sector wise, region wise or period wise comparison. Few

topics for further research are discussed later in this chapter. Ph. D Thesis Suruchi Pandey submittd to

TMV (d) Trainers and Consultant: Trainers and consultants can benefit from the study to great extent as

the information about training practices, training requirements, skills gaps are identified in the report. (e)

Training and Educational Institutes: Hospitality sector is in need of the trained manpower. Various

training and educational institutes can make use of this study in imparting training to the candidates and

make them ready for the job. This training is more of a vocational nature. Also trend is that most of the

hotels are setting up their own institutes for ready supply of trained human resources. The study can

benefit such set up. (f) Researcher: The study has help me in exploring the field of training in hospitalityindustry. It has helped researcher in developing insight and more understanding about training functions.

This entire research experience was a lot of learning for researcher on research methodology and

industrial practices.

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SWOT Analysis of the Hotel Industry

Strengths

• India!s rich cultural heritage

• Second largest forex earner

• Demand exceeds supply

Opportunities

• Boom in tourism

• Privatization of airlines

• Increase in disposable incomes

Weaknesses

• Capital intensive

• Labour intensive

• Non-availability of land

Threats

• Sensitive to disturbances in thecountry

• Competition from International

chains

High taxes may render India as an

unviable destination.

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Chapter 5:

SUGGESTIONS - CONCLUSION

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CONCLUSION

The hotel industry in India having a tremendous opportunity in the future because of increasing trends in the tourism industry

and government promoting the “Incredible India” campaign and other tourism promotion measures. The hotel industry in

India is mix of many brand internationally established hotels having the scope to attract shares in the brand hotels which will

help to expand the industry and the innovations in the industry is helping the hotels to retain the customers with them.

Though the industry is having opportunities in future it is suffering with the cost of land which is costing 50%of the total cost

and the taxes are main drawbacks for the industry. Industry is opening gates for the foreign investment which is a good sign

for the industry and industry is working toward the fulfillment of the demand and supply gap1

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SUGGESTIONS

As with any business, the economy has a direct impact on the hospitality industry. When people are

pinching their pennies, they’re far less apt to travel, which inevitably takes a toll on hotel business. To get

more guests, hotels must come up with more creative ways to get people through their doors. The best

ideas aren't always the most conventional

Truly value your customers and their (emotional) experiences.

Small businesses in the travel industry have a leg up in that they can provide personalized experiences fortheir customers. Therefore, it’s important to find your unique selling point. This could be your location,

specialized tour packages, or even something unusual like rooms that cater to dogs and their

owners. Whatever it is, focus on the special capabilities you have as a small business to make guests’

experiences truly personal and sell it. Your business has the potential to make an impact on the memories

your guests have of a particular trip or even geographical area.

Start using social media well.

At a minimum, you should have a Facebook page and a Twitter account that clearly displays your brand

logo and name. When competing with major brands that are well recognized in traveler’s minds, a small

business must take every opportunity to bolster their credibility. A 2010 study by Chadwick Martin Bailey

found that consumers are 67 percent more likely to buy from the brands they follow on Twitter, and 51

percent more likely to buy from a brand they follow on Facebook.

Make booking/buying seamless.

If you run a small hotel — or any other business — and you don’t have online booking or buying

capabilities on your site, you’re losing tons of business. Period.

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http://blog.cmbinfo.com/press-center-content/bid/46920/Consumers-Engaged-Via-Social-Media-Are-More-Likely-To-Buy-Recommendhttp://www.forbes.com/companies/facebook/http://blog.cmbinfo.com/press-center-content/bid/46920/Consumers-Engaged-Via-Social-Media-Are-More-Likely-To-Buy-Recommendhttp://blog.cmbinfo.com/press-center-content/bid/46920/Consumers-Engaged-Via-Social-Media-Are-More-Likely-To-Buy-Recommendhttp://www.forbes.com/companies/facebook/http://www.forbes.com/companies/facebook/


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Small businesses need to be able to convert website visitors into paying guests (or customers). But there

are many factors that go into customer decisions, so to increase conversions, it’s critical that your

business decrease the number of boundaries between the customer and the sale.

Unconventional Pricing

Doing anything unconventional in business can create a buzz, and buzz-worthy businesses typically enjoy

new customers. You could create an unconventional pricing structure to build renewed interest in your

hotel. A restaurant in Minneapolis, Minnesota, for example, has one menu in rotation from when it

originally opened its doors back in 1950. If your table ends up with this menu, the prices of your entrees

reflect it. Novel, yes, and it’s very buzz-worthy.

Reimbursement

Another novel idea, this one coming from Loews Hotels, is to offer reimbursement for the fees that guests

pay airlines for their checked bags. And you needn’t offer this service for all luggage or even all year

through. Set a limit on the number of bags and the timing of this offering to attract more guests.

SMS Messaging

Like any business, those in the hospitality industry should be using social media to reach consumers. One

of the more recent strategies is location-based marketing, in which you contact a consumer via a short

message service (SMS) text. But this text is only sent to potential customers who have entered a certain

location. With hotels, you could “geofence” airports or convention centers in your city to send a message

to people, telling them of your services.

QR Codes

Staying with handheld devices, hotels can also use quick response codes to improve business. QR codes,

as they’re often called, are basically barcodes that are scanned with mobile phones to access special offers

and other information about a business. Instead of relying on these codes to just promote an offer, you can

offer information about events, attractions, shops and restaurants in the area, adding value to the guest

experience.

Blogging

Consumers shop much differently than they did in the past, gathering information from the Internet before

ever making a purchase. The same applies to hotel stays. By starting a hospitality or travel blog, you

increase the quality content on your website, which drives your online presence and improves your search

rank. If your hotel ends up on the first page of search results, people are more apt to make a reservation.

But stick with articles that are informative, as opposed to promotional.

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Considerations

As with all marketing strategies, measure the success of your efforts, getting rid of those that don’t prove

as fruitful. One of the easiest methods of measurement is to set up an individual toll-free number for each

channel. SMS messaging, for example, would provide potential guests with a different phone number to

call than a brochure or website. After two to three months, compare the reservations coming in from each

number, and you'll get a better idea of where to focus the energy of your marketing staff.

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MANAGEMENT LEANINGS

The project at has been a great learning experience for me. This was a great opportunity as I was exposed

to working in a dynamic and challenging work place and was fortunate to have a project here. The

guidance received from all the members of at every step was very useful and working here made me

gain lot of patience and skills of managing the customers.

1. All the departments are interconnected which simplifies the work.

2. The process is developed in such a way that it performs its work without interruption.

3. Direct communication with the customers.

4. How the purchasing is done.

5. How to deal with hard situations.

6. How to manage staff and the employees.

7. I thank Mr. Gorakh Kad for supporting me for this project, from this project i have learnt many

management skills and it will help me in the nearing future

8. 2$345678$97:

a. Number and type of person required

b. Time periods when required

c. Possible sources of recruitment

d. Selection techniques to be used

e. Any special problems anticipated and how they are to be overcome.

Redeployment:

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a. Transferring to other units.

b. Retraining for new jobs.

9. Redundancy:

a. Number and names of redundant

b. Departments/units where redundancy exists

c. Time of redundancy

d. Retraining whenever possible

e. Voluntary separation

f. Retrenchment and layoff

10. Promotion:

a. Ratio of promotion to external recruits

b. Basis of promotion

c. Reservations, if any, in promotion.

11. Transfer:

a. Transfer policy and rules

b. Channels of transfer

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12. Training and Development:

a. Number of people to be trained

b. Existing employees to be retrained

c. Skill areas for training

d. Availability of trainers

e. Methods of training

f. Training period

g. New courses to be developed and changes to be made in existing courses.

13. Productivity:

a. Work simplification

b. Mechanization and automation

c. Job redesign

d. Training and refresher training

e. Incentives and profit-sharing schemes

f. Participation

g. Productivity bargaining

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14. Retention:

a. Improving compensation levels

b. Providing opportunities for career development

c. Changes in work requirements

d. Opportunity for participation

15. HUMAN RESOURCE STRATEGIES

The subject matter of personnel policies is as wide as the scope of personnel management. In most

companies, polices are established regarding various functions of personnel management which are

as follows:

Employment: All policies concerning recruitment, selection, and separation of employees are

included in this function. Employment policies should provide clear guidelines on the following

points:

a. Minimum hiring qualifications.

b. Preferred sources of recruitment.

c. Reservation of seats for scheduled castes, scheduled tribes, handicapped persons and ex-

servicemen.

d. Probation period.

e. Layoff and rehiring.

Training and Development:

a. Attitude towards training- whether it is regarded as a device overcome specific problems or

as a continuing relationship between superior and subordinate.

b. Objectives of training

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c. Opportunities for career development.

d. Basis of training

e. Methods of training - on the job or off the job.

f. Programmes of executive development.

g. Orientation of new employees.

Transfer and Promotions:

a. Rationale of transfer.

b. Periodicity of transfer.

c. Promotion from within or outside the organisation.

d. Seniority required for promotion.

e. Relative weightage to seniority and merit in promotion.

f. Seniority rights.

g. Channels of promotion.

Compensation

a. Job evaluation system.

b. Minimum wages and salaries.

c. Method of wage payment.

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d. Profit sharing and incentive plans.

e. Non monetary rewards

f. Executive stock option plan

g. Procedure for getting pay

h. Whether to pay prevailing or more than prevailing salary scales.

Working Conditions:

a. Working hours.

b. Number and duration of rest intervals.

c. Overtime work.

d. Shift work.

e. Safety rules and regulations.

f. Leave rules.

g. Employee Services and Welfare:

a. Types of services - housing, transportation, medical facilities, education of children, group

insurance, credit facilities, purchase of company's products at discount, company stores,

social security, etc.

b. Financing of employee services

c. Incentives to motivate.

Industrial Relations:

a. Handling of grievance

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b. Recognition of trade union.

c. Suggestions schemes.

d. Discipline and conduct rules.

e. Workers' participation in management.

f. Employees' news sheet and house journals.

International Region

a. Study the international market

b. Make decisions on where to invest

c. Which region will give outputs

d. Documentation

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BIBLIOGRAPHY

Magazine:

FH&RA

News Papers :

Times of India

Websites:

www.ibef.org

www.weikfield.com

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www.tradeindia.com

www.niir.org

www.shodhganga.inflibnet.ac.in

www.catarina.udlap.mx

www.ukessays.com
http://www.ukessays.com/essays/tourism/literature-review-on-the-hospitality-industry-tourism-essay.phphttp://www.ukessays.com/essays/tourism/literature-review-on-the-hospitality-industry-tourism-essay.phphttp://catarina.udlap.mx/u_dl_a/tales/documentos/lni/rodriguez_t_h/capitulo3.pdfhttp://catarina.udlap.mx/u_dl_a/tales/documentos/lni/rodriguez_t_h/capitulo3.pdfhttp://shodhganga.inflibnet.ac.in/bitstream/10603/2495/9/09_chapter%202.pdfhttp://shodhganga.inflibnet.ac.in/bitstream/10603/2495/9/09_chapter%202.pdfhttp://www.niir.org/http://www.niir.org/http://www.tradeindia.com/http://www.tradeindia.com/

nikhil please print this

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