CHAPTER 2 HOTEL INDUSTRY

Similar documents
Front Office. Casa High School. Andreas Kassinos

IHM, KOLKATA. Pre Module Guided Reading (PMGR) Close this window. Bonophool Banerjee INTRODUCTION

Hospitality Services A C C O M M O D A T I O N S A N D F O O D & B E V E R A G E

Board of Tourism Controllers. 9 th MEETING OF THE COMCEC TOURISM WORKING GROUP February 16th, 2017, Ankara

Acceleration of tourism

ASIA PACIFIC SIGNIFICANT GROWTH OPPORTUNITIES FOR HOTEL CHAINS

How does my local economy function? What would the economic consequences of a project or action be?

THE LODGING INDUSTRY. Standard 2: Objective 1 Hospitality and Tourism Marketing

5th NAMIBIA TOURISM SATELLITE ACCOUNT. Edition

Destination Marketing and the Lodging Industry STANDARD 2

MENA HOTEL MARKET REVIEW MUSCAT OMAN 2018

The Economic Impact of Tourism in North Carolina. Tourism Satellite Account Calendar Year 2015

Hotel Establishments Statistics April 2013

The Economic Impact of Tourism in North Carolina. Tourism Satellite Account Calendar Year 2013

PREFERRED HOTELS & RESORTS

ATE 2015 Special series:

Tourism in Figures 2013 the Indian market in Flanders

ISPA 2009 U.S. Spa Compensation Data INTERNATIONAL SPA ASSOCIATION

TOURISM AND HOSPITALITY. November 2010

Classification of products and productive activities for tourism

Drawing more tourist to India

Presentation Notes Travel Accommodations

CERTIFICATE IN TRAVEL AGENCY OPERATIONS (CTAO) BTOI-010 : SKILLS IN HANDLING TRAVEL AGENCY

The results of the National Tourism Development Strategy Assessments

COMPANY OVERVIEW Unique Ability to Manage Across All Chain Scales

The U.S. Vacation Ownership (Timeshare) Market: Size, Trends and Forecasts ( ) February 2017

HOTEL MARKET SUPPLY AND DEMAND ANALYSIS

Liberation of tourism and travel-related (T&T) services in Thailand and Its impact

Importance and Developments

The Next International Cruise Tourism Hub

TOURISM AS AN ECONOMIC ENGINE FOR GREATER PHILADELPHIA

Classification of Hotels

The Economic Impact of Travel in Kansas. Tourism Satellite Account Calendar Year 2013

Offshore Real Estate Investment : Risk, Reward and More

HOSPITALITY INDUSTRY WITH SPECIAL REFERENCE TO RAJASTHAN

1. FORECAST VISITATION FOR GREAT OCEAN ROAD

Mid-Atlantic Tourism in 2030: Growth, Evolution and Challenges

The Economic Impact of Tourism in Maryland. Tourism Satellite Account Calendar Year 2015

INTERNATIONAL AIR TRAFFIC STATISTICS

Introduction. Keywords: hotel market, regional development, competitiveness

Status of Compilation of Tourism Satellite Accounts for India

Tourism Performance Report Q1 2018

2016 Annual Tourism Performance Report.

Presented by: Ms. Kanageswary Ramasamy Department of Statistics, Malaysia February 2017

Caravan rentals sustained by continued staycation trend 2016

OIC/COMCEC-FC/33-17/D(16) TOURISM CCO BRIEF ON

INTERNATIONAL AIR TRAFFIC STATISTICS

Destination Management Planning

Washington County, TN. Hotel, Restaurant, and Travel Industries: Economic Profile and Business Trends, Washington County (Jonesborough area)

The Corcoran Report 2Q 2018 EAST END

An Economic Snapshot of Honduras

Chapter 1: Project Overview & Justification 1.1 Project Overview

Accor / Ecpat Partnership. WTO 14th - Task Force Meeting Berlin - March 13th

Rick S. Kirkbride. Los Angeles. Practice Areas. Admissions. Education. Partner, Real Estate Department

The Shankly Hotel Millennium House, 60 Victoria St, Liverpool L1

Sevier County, TN. Hotel, Restaurant, and Travel Industries: Economic Profile and Business Trends, 2006

After Umrah Program. A Destination for Muslims

Tourism as an Economic Pillar. Mary Vrolijk 25 September 2015

A STUDY ON TOURIST ACCOMMODATION INFRASTRUCTURE IN TOURIST RESORTS LOCATED IN THE IALOMIŢA SUBCARPATHIANS

INTERNATIONAL AIR TRAFFIC STATISTICS

Hamilton County, TN. Hotel, Restaurant, and Travel Industries: Economic Profile and Business Trends, Hamilton County (Chattanooga area)

Tourism Satellite Account: Demand-Supply Reconciliation

Year on year average room rate and room supply

OVERVIEW Four year annual average to the year ending September 2014

SKÅL INTERNATIONAL BY-LAWS ARTICLE I SKÅL CLUBS AND MEMBERSHIP

Economic Impact of Tourism in South Dakota, December 2018

Accommodation Survey: November 2009

The Economic Impact of Tourism on the District of Thanet 2011

w w w. s a r i n. c o. n z

The Economic Contributions of Agritourism in New Jersey

THE 2006 ECONOMIC IMPACT OF TRAVEL & TOURISM IN INDIANA

ABOUT HOSPITALITY NEW ZEALAND

Molton Hotels Marriott Hotels Prefered Operator

Demand perspective: Measuring flows of visitors/ trips/ expenditure and their characterization in each form of tourism

Winnipeg Market Report

Nigeria: Tourism Market Insights 2017

Oregon s State Transient Lodging Tax

Structure of presentation

Tourism Performance Summary Q

23rd SEOUL BUILD. Organized by Co-Organized by Supported by. Overseas Cooperation. Exhibit Profile. Highlight Sector. Constek Remodeling Greenbuilding

Week #1. The temporary movement of people Travelling away from one s normal place of work and residence

Netherlands. Tourism in the economy. Tourism governance and funding

Blount County, TN. Hotel, Restaurant, and Travel Industries: Economic Profile and Business Trends, 2006

AZUGA PROJECT DETAILS

Travel is the only thing you buy that makes you richer.

Promoters Profile. Mr. Rakesh Babbar

Cheatham County, TN. Hotel, Restaurant, and Travel Industries: Economic Profile and Business Trends, 2006

WAC AWA KRA NIEWSKA CENTRAL STATISTICAL OFFICE OF POLAND

Presented by: Ms. Kanageswary Ramasamy Department of Statistics, Malaysia February 2017

CHAPTER-IV CRM AND STAR HOTELS IN KARNATAKA

Convincing wealthy Chinese travelers to choose New Zealand for their luxury trips By Pierre Gervois, CEO, China Elite Focus Ltd.

Tourism in Figures 2013 the New Zealand market in Flanders

The Economic Impact of Tourism on Calderdale Prepared by: Tourism South East Research Unit 40 Chamberlayne Road Eastleigh Hampshire SO50 5JH

Percentage Share Total Workers Main Workers 29.5 Marginal Workers 2.22 Non-Workers Source: Census of India, 2001.

Chile. Tourism in the economy. Tourism governance and funding

hotels our business & passion

GROWTH, CONFIDENCE AND OPPORTUNITIES TO INVEST

TRENDS. IN THE HOTEL INDUSTRY Northern California AUGUST Shifts in Revenue and Expenses Improve Hotel Food and Beverage Profits

One Arthouse Square - "Cool, Creative, Urban" 1 Arthouse Square, Seel Street, Liverpool L1 4AZ

CalARVC White Paper on

Transcription:

CHAPTER 2 HOTEL INDUSTRY 2.1 DEFINITION OF HOTEL AND ACCOMMODATION Away from the home, Hotels present one of the convenient staying alternatives. Initially hotel was used as a place where families host their guests by providing lodging, boarding, and service facilities. Back then, hostel was term used for this and persons availing this facility were called hostelier. The Norman people invented the word hotel. The word hotel was originally originated in England in 1760 both for business or pleasure [20]. Accommodation provides the base from which tourists can engage in theprocess of staying at a destination. It is an element of the widen hospitalitysector that is used by tourist. Accommodation has emerged as the focal point forthe hosting of guests and visitors through the ages but according toandrews [21], "Hotel" or "Inn" under British Law is defined as a place where a bonafidetraveller. But Al-sairafi [22] gave twodefinitions for Hotel in his book which has been issued in the Arabic languageunder Edaratalfanadeq ManzorEdari (Hotel managementmanagerial Overview) (Perspective) Comprehensive Guide, helping you inunderstanding the required skills and Etekit of Successful Hotel Management. Following are key terms as explained by author: A- The word hotel equal in Latin language the word hospitality which the French word Hotel has been derive from this word which means a special place for guest accommodation. B- In Arabic, the Hotel pronunciation is related to the pandokia word which means a place for accommodation which provides the shelter, food and service to the guest and pay money in return for. Furthermore, according to Braham [23], hotelier should use both art and science in order to attract customers. According to Brody [24], true meaning of hospitality lies in kindness and in welcoming strangers or guests with an affection. The word comes from the Latin Hospes, 11

meaning guest, and developed into hospice, a place of shelter for travellers. These days, the services (or products) offered to the modem traveller by hospitality establishments can cater for every human comfort. The hospitality business is a massive industryencompassing all forms of transport, tourism, accommodation, eating, drinking, entertainment, recreation and activities [25]. One of the most best quoted statement to describe the term hospitality is as following: "Hospitality industry or broadly speaking the Hospitality sector is the cornerstone of most Developing and developed nations affected by Transactions of business among humans" [26] The Hospitality has been known as reception and very kindly treatment with strangers, the Hospitality word has been derived from the word HOSPICE which has been known by different nations in different times, and this word also has been Maniacal in The Holy Curran [27]. 2.2THE INDIAN HOTEL INDUSTRY: OVERVIEW Hotels are main constituents of the Tourism [28]. The Indian tourism focus is on the AtithiDevoBhavah campaign, targeted at the inbound foreign tourists in the country. Translated literally this means Guest is God [29]. Now ownership has turned into franchises business way [30]. Delhi-NCR has rated high growth though increase in waste has also manifold [31]. Improvements in infrastructure and the construction of new residential projects have made the areas attractive for investment.delhi, the second largest hotel market in India after Mumbai, saw a compounded increase in supply of 15% over the past three years. Hotel industry continuous grows as the same pace of real estate industries grown in Delhi NCR area. Despite moderate supply pressures in the next few years, Delhi remains a strong market for hotels [32]. 2.3 GROWTH AND CURRENT STATUS OF HOTEL INDUSTRY According to estimates, hotel industry will grow at 7.8% per annum in 2013 2023 [33]. India current rank is 12 here and will increase in future [34]. On the basis of growth of Indian economy and foreign tourist arrivals (FTA) and other supporting factors forced Ministry of 12

tourism to forecast the percentage growth of hotel industry in coming futurein each zone like East, North, South, West, North East (refer table 2.1)[35]. Table 2.1: Forecasting of percentage of growth in hotel industry Growth in Hotels East North South West N. East % Growth in 4 Starupwards Accommodation units 9 10 17 9 11 % Growth in 1 3 Star 3 0 12 8 14 Accommodation units % Growth in Unclassified 5 2 6 15 7 Accommodation units % Growth in Motels 2 2 2 2 2 In all, there are total of 56,792 hotels in India consisting of categories of 4-star & upward, 1 3 star and unclassified hotels in India. Whereas approximately 75000 motels in India in 2010, with 4% in the star category. There are a total of 2229 star category hotels in India i.e. 1 to 4 star upward hotels; out of it a little over 26%, i.e. 599 hotel is 4 star upwards hotels. North India has the largest number of five/ four star hotels followed by the Southern region. North India also accounts for almost 40% of all accommodation units in India (refer table 2.2) [35]. Table 2.2: Number of hotels unit (2010) Number of Accommodation Units in March 2010 Region 4 Star upwards 1 3 Star Unclassified Motels Hotels Hotels Units East 40 67 2937 12407 North 237 276 20870 21389 South 183 911 10290 16477 West 134 348 19731 15794 North East 5 28 735 8970 All India 599 1630 54563 75037 Apart from the numbers of hotel unit, some reputed consultancy like Cushman & Wakefield expects the hotel industry will grow 65 per cent rise in the total number of hotel rooms by 2017. According to a report, approximately 52,000 new hotel rooms are expected to come into 13

the system in the next five years. There are over 2.7 million rooms available in the accommodation units across India, with almost 39% of them being in North India. Most of them are in the unclassified category (refer table 2.3) [35]. Table 2.3: Number of hotel s room unit (2010) Number of Accommodation Units in March 2010 Region 4 Star upwards 1 3 Star Unclassified Motels Hotels Hotels Units East 3810 2725 94083 173730 North 25236 9151 609974 299499 South 20206 33291 369977 230697 West 17875 16086 441438 221143 North East 298 930 17371 125606 All India 67425 62183 1532844 1050675 As per the estimation of hotel and rooms in each region by ministry of tourism in March 2010, further it is extrapolating for the estimation of hotels and rooms in the year 2022 (refer table 2.4). Table 2.4: Forecast of Number of Accommodation Units (2022) Region 4 Star upwards Hotels Number of Accommodation Units March 2022 1 3 Star Unclassified Hotels Units Motels East 119 99 5545 15255 North 707 289 27456 26298 South 1235 3527 19830 20257 West 378 859 107543 19418 North East 17 141 1603 11029 All India 2457 4916 161977 92257 Facts and figure above shows that there is tremendous growth in 12 year from 2012 to 2022. Southern region is expected to increase its 4 star upward hotel to unclassified hotels up to 44849 units whereas a motel increases by 20257 units. As compare to 2010 star rated hotels are 2229 units and 7373 units in 2022 respectively, which is grown by 5144 more units. Similarly unclassified units are grown by 107414 more units as compare to previous year 14

2010. In the same vain motels are continue to increase by 17220 units in year 2022 compare to year 2010. 2.4TYPES OF HOTELS There are three major types of hotels [36]. The ratings are reviewed once in every five years. Starred Hotels These hotels are rated 1,2,3,4,5 star category Approved Hotels - Hotels which have acquired approval from Ministry of Tourism but not classified into any star categories. Hotel industry in India Starred Hotel Approved Hotel Licensed Hotel Heritage Hotel Star Hotel Heritage Heritage Classic Heritage Grand 1 Star 2 Star 3 Star 4 Star 5 Star 5 Star Deluxe Figure 2.1: Classification of Hotel Source: Pictorial representation of concept by Ministry of Tourism [36] Licensed Units These acquire license from MCD or local authority. Luxury These are having 4,5 and 5 star deluxe rating. Budget - Hotels having classification between 1 Star 3 Star has been defined as a Budget accommodation unit. 15

Others Includes approved (awaiting classification) as well as licensed units. 2.5CLASSIFICATION OF HOTEL INDUSTRY There are many criteria that help to classify the hotels in India as follows: Criteria for hotel s classification Based on location Based on size of property Based on level of service Based on length of stay Based on theme Based on target market Figure 2.2: Criteria for hotel s classification Source: Pictorial representation of criteria for hotel s classification [65] 2.5.1 BASED ON LOCATION City centre Motels Suburban hotels Airport hotels Resort hotels Floating hotels Boatels Rotels 16

2.5.2 BASED ON SIZE OF PROPERTY The main yardstick for the categorization of hotel is by size the number of rooms available in the hotel. Small hotel, Medium-Sized hotel, Large hotels, Mega hotels and Chain hotels 2.5.3 BASED ON LEVEL OF SERVICE Hotels may be classified into economy, and luxury hotels on the basis of the level of service they offer. Economy/ Budget hotels, Mid-market hotels, Luxury hotels 2.5.4 BASED ON THE LENGTH OF STAY Hotel can be classified into transient, residential and semi residential hotels depending on the stay of a guest. Transient Hotel, Residential hotels, Semi residential hotels 2.5.5 BASED ON THEME Depending on theme hotel may be classified into Heritage hotels, Ecotels, Boutique hotels and Spas. Heritage hotel Ecotels Boutique hotels Spas 2.5.6 BASED ON TARGET MARKET Commercial hotel Convention hotels Resort hotels Suite hotels Casino hotels 17