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  1. 1. SERVICES MARKETING Module 5 SERVICE INDUSTRIES IN INDIA Faculty : Kerena Anand*** AFTER completing the module, the examinationquestions from the previous question papers with the markswill be added to this module’s notes. I] TOURISM SECTORThere are many places that interest good tourist traffic in India.There are hill stations in Himachal and Ooty. Beaches in Goa andKerala. Kerala is also known for the ayurvedic treatments. Thereare religious places and also places of historical importance.Unfortunately the country has not exploited this opportunity asthis can play an important role in the economic development. 1. Define Tourism.Tourism Society of England defined…..“Tourism as temporary, short term movement of people todestination outside the places where they normally live and workand their activities during the stay at each destination. Itincludes movements for all purposes”Tourism is a very complex industry. It embraces five components:Transportation, accommodation, food and catering, travel agentsand the place of attraction itself. Tourism is not a homogeneousproduct as different people have different requirements ofdifferent standards and professionalism. 2. What are the peculiarities of a tourism product?The peculiarities of a tourism product are:
  2. 2. It cannot be provided by a single enterprise; each component of tourism- hotel, transport etc is highly specialized and together makes the final product. The sales intermediaries like tour operators, travel agent and hotel brokers play a dominant role. Tourists have diverse motivation to travel Moreover the demand for tourism is highly unstable due to seasonal, economic and political factors. 3. How has tourism evolved through the years?Tourism is an ancient phenomenon which started in the 6thcentury BC in Babylonian and Egyptian empires. It becameprominent during the Roman empires as they conducted manysporting events, festivals mainly for pleasure and curiosity.During the dark ages that is the fall of Roman empire, tourismwas absent as people found it dangerous and difficult to travel.Tourism again reappeared in Europe as the companies alsodeclared annual holiday for their employees. The infrastructure,urban areas , development of road and rail was given primeimportance during this period.The first company to provide tourism services was Thomas Cookwhich started in the year 1841.During those days tourism was restricted to the 3 S: Sun, Seaand Sand.Today tourism is one of the emerging industriesThe World Tourism Organisation forecasted that there is anincrease of 4% in international tourism every year. By 2020Europe would be the most popular tourist destination. 4. What are the forms and types of Tourism? There are various reasons to motivate people to travel
  3. 3. A] Based on the geographical location: i. Domestic Tourism: Citizens of a country travel within that country. No language barriers, currency or documentation procedures. ii. International Tourism: Movement of people between different countries. There are few necessities- currency, documentation , visa and other entry permits. a. Inbound : Inbound tourism is when someone/non- resident comes to your country for e.g. someone coming from USA to spend their summer holidays in India. b. Outbound: When people travel away from the country were they normally live. It can for holidays, business, trip etc.B] Based on the purpose of visit (Holiday and business) Holiday tourism is for recreational, health, cultural purposes. They have the freedom of choice about where to go, when to go. It might be for pleasure, relaxation, health, sports or even for spiritual reasons. Professional/ Business travel is for monetary benefits, corporate travel. For example: Business people travel to make sales calls, attending meetings, conferences. For this Hotels have huge convention complexes and conference rooms.C] Basis on the number of tourists Individual Group 5. What are the different classification of Tourists/ who are the different types of tourists?
  4. 4. Explorer: They are limited in number, They look for discovery and involvement with local people. Elite : They require special , individual tailored trips to exotic places. Example: Top notch business people and royal monarchs. Offbeat: People who travel to get rid of their usual humdrum life. Unusual: Here the travelers have peculiar objectives. They visit places where there is physical danger and are isolated. There are unusual tourist destinations such as : Stone henge (here people travel thousands of miles to see a piles of stone arranges one above the other) and Green sand beach ( There are rocky cliffs where people have to climb just to watch the seashore on the other side) Incipient mass: They are small organized groups who travel of some cause e.g religious places, or visiting earthquake or volcanic prone areas. Angelina Jolie has a charity foundation in Africa which is an earthquake affected area where she travels very often for this cause. Mass: It is a packaged tour market. Example: Thomas Cook, Cox & Kings designs many packages to different tourist destinations. Charter: Mass travel to relaxation destinations. Standarised developed world class facilities are developed by the charter flight companies. Example : Aerotech Aviation, Dhillon Aviation.6. Who are tour operators? What is their role?A tour operator typically combines tour and travel componentsto create a holiday. They prepare itinerary. The most commonexample of a tour operators product would be a flight on acharter airline plus a transfer from the airport to a hotel andthe services of a local representative, all for one price.
  5. 5. The role of tour operators The role of tour operator is to design an INCLUSIVE TOUR. INCLUSIVE TOURThe term inclusive tour (IT) is used to describe a commercialarrangement where a company commonly referred to as a tour
  6. 6. operator organises package holidays that include accommodationin addition to transportation. These arrangements are usuallybuilt around charter flights carrying a group of individuals whoshare seats on the same plane to travel together to their intendedholiday destination as well as back to their point of origin. Theyalso include accommodation and - in some cases - other holidayarrangements such as the provision of meals as well. Everythingis sold to the holidaymaker as an all-inclusive package. 7. What is the difference between a tour operator and a travel agent?A tour operator is responsible for operating and providing yourvacation through the contracting, booking and packagingtogether of the various components of your tour such as yourhotel, transportation, meals, guides, optional tours andsometimes flight. Many tour operators are considered land onlyoperators and focus on the aspects of your package once youhave arrived in your destination.Travel Agents hold the role of selling and administeringpackages from various tour operators to their personal clientsbased on what they’re looking for and what package suits eachclient best. While many tour operators focus on a selectconcentration of destinations most travel agents can specialize ina range of destinations and then they can help you narrow downa package for that specific destination or area you are looking totravel to based on your budget, preferred method of travel andinterests. Travel agents will then work directly with the touroperator to perfect your requests and provide the tour operatorwith the information and payments they need.Therefore a tour operator is a an organiser of tours and also asupplier ( they might own a air craft, hotels, car rentals or all of thethree or even tie-ups with them ).A travel agent is only a distributor or seller of tours. They do notown any travel assests.
  7. 7. Example: I go to a travel agent to book a holiday. The travel agent will offer me a choice of holidays with different tour operators. The tour operator is responsible for my holiday. The travel agent takes my money. Think of it like an restaurant. The waiter takes my order( the travel agent). The chef cooks the food( the tour operator) 8. How are tourism product classified? A Tourism product can be categorized into 5 broad types Attractions: Natural( landforms, flora and fauna), Man made (historic monuments), Cultural ( Music, art, folk) Transport: Rail , road, air, cruise line ( ships) Accommodation: It is a critical component. There are commercial sector hotels, guest houses, private residences and camping sites. Support and auxiliary services: Shops, restaurants, banks and medical facilities should be located close to the tourist place. Physical and Communication infrastructure: Roads, airports, electricity.
  8. 8. II] HOSPITALITY (HOTEL) SECTOR1. Define Hotel. Where did the word hotel originate from? Which is the largest, oldest and tallest hotel in the world?The word hotel is derived from the French hôtel (coming fromhôte meaning host), which referred to a French version of atownhouse or any other building seeing frequent visitors, ratherthan a place offering accommodation.LARGESTIn 2006, Guinness World Records listed the First World Hotel inGenting Highlands, Malaysia, as the worlds largest hotel with atotal of 6,118 rooms. The Izmailovo Hotel in Moscow has the mostrooms, with 7,500, followed by the Venetian Palazzo Complex inLas Vegas (7,117 rooms) and MGM Grand Las Vegas (6,852rooms).[edit] OldestAccording to the Guinness Book of World Records, the oldesthotel in operation is the Hoshi Ryokan, in the Awazu Onsen areaof Komatsu, Japan, which opened in the year 718.[edit] TallestThe Ritz-Carlton Hong Kong is claimed to be the worlds highesthotel. It is located in the top floors of Hong Kongs tallestbuilding, the 488 meter tall International Commerce Centre.2. Discuss about the growth and development of hotel sector in India.The Indian hospitality industry is growing at a rate of18%annually. The current gap is expected to widen further as theeconomy opens and growsA rapidly growing middle class , the advent of corporate incentivetravel and the multinational companies into India has boostedprospects for tourism.
  9. 9. India’s easy visa rules, public freedoms and its many attractionsas an ancient civilization make tourism development easier thanin many other countries.Many foreign companies have already tied up with prominentIndian companies for setting up new hotels, motels and holidayresorts.Several International chains are expanding their hotel network inIndia3. What is the difference between a hotel and an inn?Hotel is a building where people can pay for lodge, have meal andother services. Hotels have rooms with beds and some usefulfurniture like chair, TV, telephone, small table, and some modernfacilities like air conditions, computer and climate controller.Some rooms are attached with bathroom where visitors can batheand get refreshed. There are some additional features like mini-bars, gaming, swimming pools, child-care center, gym, spas,conference hall and service of social gatherings.Food is offered by some hotels, but it has to be paid. There is adifferent section for food in hotels, which provides many differenttypes of cuisines like Italian, Chinese, Lebanese, Thai,Continental and more.The cost and expenses of hotel usually depends on the type ofservices. It is rated depending upon the range of service and theluxury of the hotel. Rating system is indicated by stars, hotel isaffiliated by stars on these rating parameters. Hotel can beaffiliated 3 stars, 5 stars or 7 stars. But AAA (AmericanAutomobile Association) uses diamonds instead of stars toaffiliate hotels.An inn is generally a building located along a highway orcountryside where people can seek lodging and food. Inns werethe first commercial buildings for lodging and boarding. Innswere established at time of Romans, to help travellers in lodging,food and drinks including alcohol. Not only do they used to
  10. 10. provide service for the travellers, but horses were provided withstable and fodder. Until now, aside from providing lodging, it alsoprovides good services to customers like drinks and food. Inns donot have separate restaurants instead it has small section forfood and drink. It does not provide a large food variety unlike inhotels.4. How are hotels classified based on their standard?One Star HotelsHotels in this classification are likely to be small andindependently owned, with a family atmosphere. Services may beprovided by the owner and family on an informal basis. Theremay be a limited range of facilities and meals may be fairlysimple. Lunch, for example, may not be served. Some bedroomsmay not have en suite bath/shower rooms. Maintenance,cleanliness and comfort should, however, always be of anacceptable standard.Two Star HotelsIn this classification hotels will typically be small to mediumsized and offer more extensive facilities than at the one star level.Some business hotels come into the two star classification andguests can expect comfortable, well equipped, overnightaccommodation, usually with an en-suite bath/shower room.Reception and other staff will aim for a more professionalpresentation than at the one star level, and offer a wider range ofstraightforward services, including food and drink.Three Star HotelsAt this level, hotels are usually of a size to support higher staffinglevels, and a significantly greater quality and range of facilitiesthan at the lower star classifications. Reception and the otherpublic rooms will be more spacious and the restaurant willnormally also cater for non-residents. All bedrooms will have fullyen suite bath and shower rooms and offer a good standard ofcomfort and equipment, such as a hair dryer, direct dial
  11. 11. telephone, toiletries in the bathroom. Some room service can beexpected, and some provision for business travellers.Four Star HotelsExpectations at this level include a degree of luxury as well asquality in the furnishings, decor and equipment, in every area ofthe hotel. Bedrooms will also usually offer more space than at thelower star levels, and well designed, coordinated furnishings anddecor. The en-suite bathrooms will have both bath and fixedshower. There will be a high enough ratio of staff to guests toprovide services like 24-hour room service, laundry and dry-cleaning. The restaurant will demonstrate a serious approach toits cuisine.Five Star HotelsHere you should find spacious and luxurious accommodationthroughout the hotel, matching the best international standards.Interior design should impress with its quality and attention todetail, comfort and elegance. Furnishings should be immaculate.Services should be formal, well supervised and flawless inattention to guests needs, without being intrusive. Therestaurant will demonstrate a high level of technical skill,producing dishes to the highest international standards. Staff willbe knowledgeable, helpful, well versed in all aspects of customercare, combining efficiency with courtesy.5. How are hotels classified on the basis of purpose?a. A motor hotel: or motel for short (also known as motor inn,motor court, motor lodge, tourist lodge, cottage court, autocamps, tourist home, tourist cabins, auto cabins, cabin camps,cabin court, or auto court), is a hotel designed for motorists, andusually has a parking area for motor vehicles. It refers to a type ofhotel consisting of a single building of connected rooms whosedoors faced a parking lot and, in some circumstances, a common
  12. 12. area; or a series of small cabins with common parking. Motels areoften privately owned, though motel chains do exist.Motels differ from hotels in their location along highways, asopposed to the urban cores favoured by hotels, and theirorientation to the outside (in contrast to hotels, whose doorstypically face an interior hallway). Motels almost by definitioninclude a parking lot, while older hotels were not usually builtwith automobile parking in mind.Motels are typically constructed in an I- or L- or U-shapedlayout that includes guest rooms, an attached managers office, asmall reception and, in most motels, a swimming pool, and insome cases, a small diner. A motel could range from a smallsingle story to two or three floors, although the hotel form ofconstruction with inside corridors would be more suited to tallerbuildings due to the number of stairwells required to servicemultiple levels of balcony rooms. The doors to each motel roomtypically face the parking lot, making it easy to unload suitcasesfrom the car.b. Extended stay:When travelling for a few weeks or moving to a new home,extended stay hotels are often used by people who have to stayaway from home for a long period of time. Also, some guests livein extended stay hotels in lieu of a home for a variety of reasons.Extended stay hotels offer many of the comforts of home whilethe customer is not in their own home. Below are some usefulfacts and information titbits about these unique places.
  13. 13. Great amenitiesExtended stay hotels usually offer more upscale amenities andcomforts than regular hotels. Wireless internet access and on-sitelaundry are usually offered at these establishments. Some hotelsalso offer newspaper delivery and laundry services. In addition,many extended stay hotels receive mail for their guests.Enhanced roomsBecause their guests are away from home, many features of therooms in these hotels mimic the comforts of a traditional home,such as an increased kitchen size that may include adishwasher, stove or oven. This may also include more counterspace in kitchens, bigger closets and roomier bedrooms.Discounted ratesMany extended stay hotels often offer discounted rates or weeklyrates that are lower than nightly fees as a benefit of staying long-term. Shop around and explore the different hotels that offerextended stay rooms to ensure that you get the best deal.Deals on mealsContinental breakfasts or restaurants within the hotel are oftenperks associated with long-term stays at hotels. Some packagesmay include free morning breakfasts or discount cards andcoupons to use at the hotel eateries or other nearby restaurantsin town, so make sure to ask hotel personnel about any offersavailable.Extended stay hotels are a wonderful way to feel at home whennot at home. With decent discounts and better amenities, thesehotels may have you wishing to stay there instead of return backto your house.
  14. 14. 6. How are hotels classified on the basis of nature? a. Heritage hotels: Jodhpur heritage hotel Chomu Palace Hotel Jaipur Palace Hotel RajasthanThe Maharajas in India have left a royal legacy with their palacesand residences still holding on to the glory. Vacation in one of theheritage hotels in India would be like steering your vacation shipto the port of royalty and comfort. You get to live king size whilebeing awake to the hospitality and facilities that you are enjoying.The erstwhile residences of the royal families in various states ofIndia serve as luxury and boutique hotels presently.Guests at such palace turned hotels enjoy great ambience, royalfood, huge rooms, old furniture, yet modern facilities. The roomshave been renovated to satisfy a modern guest who is looking tomake his vacation and business trip worthwhile. The concept of
  15. 15. heritage hotels took off mainly from the Rajputana state ofRajasthan, land of the Marwar rulers too. There were severalhavelis and palaces owned by the Maharajas that stoodabandoned and were simply tourist attractions. Today, it remainsto be an attraction, but tourists are offered the chance of relivinghistory. b. Resort hotels:A resort is a place used for relaxation or recreation, attractingvisitors for holidays or vacations. Resorts are places, towns orsometimes commercial establishment operated by a singlecompany.
  16. 16. c. Floatels:A floating hotel, esp. a boat used as a hotel d. Airport hotels:Airport hotels have grown popular due to their convenience fortransient passengers and easy accessibility to the airportterminal. Many airport hotels also have agreements with airlinesto provide overnight lodging for displaced passengers.