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A. hotel operations

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Introductory discussion on the hospitality industry especially the hotel operations.

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A. hotel operations

  1. 1. Prof. (Dr.) Nimit Chowdhary Department of Tourism and Hospitality Management Jamia Millia Islamia, New Delhi
  2. 2. The hospitality industry Hospitality industry goes far beyond hotels and restaurants to include any organisation that provides food shelter and other services to people away from home.
  3. 3. Industries of hospitality sector • Lodging (not just restricted to traditional hotels) • Food service (not just restricted to restaurants) • Gaming operations • Private clubs • Theme parks • Destination management companies
  4. 4. Industries of hospitality sector • Meeting and conventions (planning and operations) • Managed park environments (natural) • Resorts • Senior living • Managed services • Consulting service
  5. 5. Travel & Tourism Hospitality Country Clubs Lodging Restaurants Maps & Guides Travel Agencies Retirement Communities Contract Food Service Sporting Events Airlines
  6. 6. Concerns • Travel restrictions • Safety and security issues • Cost of operations • Government regulations • Destinations that have been effected
  7. 7. Polarization • Limited Service versus Service Intensive organizations • Has led to growth in certain segments of the industry (luxury hotels, limited service restaurants) • Has generally been positive for the industry as a whole as well as for consumers
  8. 8. Competition • Competition across segments has increased dramatically • International competition has also increased • Competition had led to more emphasis on creating specialized niches and better management practices • Factors include: Cost of money and demand for specific services
  9. 9. Service is the difference • Service is more and more what brings customers back (or prevents them from returning) • Companies that provide excellent service inevitably lead their segments • Not limited to hospitality
  10. 10. Value consciousness • Customers are getting smarter and more selective • Customers look for value in all hospitality experiences and purchases • Value doesn’t mean the lowest price • Customers also tend to balance time and money spent
  11. 11. Technology • The hospitality industry has been one of the “laggards’ in terms of adapting to new technologies but the industry has made some inroads • Perhaps the segment that is the most advanced is the airline industry, both in terms of on-line interaction with customers as well as up-to-the-minute pricing • New technologies are being introduced every year
  12. 12. Sanitation concerns • Increases in foodborne illness has resulted in a raised concern on the part of consumers • Raised concerns in the US probably began with the Jack-in-the Box incident in the 1990s • More recent incidents have also raised questions about the quality of the food supply and even the water supply (e.g., bottled water).
  13. 13. Globalization • Globalization is perhaps one of the greatest factors affecting the industry as it impacts every facet of operations including: –Competition –Work force –Travel patterns –Company alliances, etc.
  14. 14. Scope of the Hospitality-Tourism Industry (Walker, 2007)
  15. 15. April 19, 2019 (C) Prof. Nimit Chowdhary @Jamia 15 ACCOMMODATION LOCAL AUTHORITY TRAVEL AGENTS AND TOUR OPERATORS PREVIOUS NEXT DESTINATION DESTINATION ATTRACTIONS LOCAL ENVIRONMENT BUSINESS Role of accommodation in the tourist product
  16. 16. Accommodation types
  17. 17. Accommodations in a typical case • Hotel/ motel/ guest house • Paying guest in – Farm house – Other private houses/ B&B • Self catering in rented – Flat/ apartment – House/ villa/ bungalow – Hostel/ university/ school
  18. 18. Accommodations in a typical case • Friends’/ relatives’ house • Second home/ time-share • Holiday camp/ village – Self catering – Serviced • Camping
  19. 19. Accommodations in a typical case • Caravan – Towed – Static owned – Static not owned • Boat • Sleeper cab of lorry / truck • Other/ transit
  20. 20. Organizational Structure of Hotels Business of a hotel is broadly put under two heads: front office and back of house. Front office include the following: 1. Rooms division • Front office security • Concierge • Reservations 2. Food and beverage division • Kitchen • Restaurants • Room service • Bars and lounges • Banqueting 3. Sales and marketing division 4. Housekeeping division
  21. 21. Room division
  22. 22. Activities of Front Office
  23. 23. The Front Office
  24. 24. Activities of F&B division
  25. 25. Organizational structure of hotels Back of house include the following: 1. Engineering division • Electrical and electronics • Plumbing • Civil engineering • Horticulture 2. Human resources division • Recruitment • Training • Payroll and benefits 3. Accounting division
  26. 26. The Functions and Departments of a hotel
  27. 27. A day in hotel industry
  28. 28. Hotels in a globalized world Rank Name of Group Nationality Number of hotels Number of rooms 1 Intercontinental Hotel Group (IHG) GB 4,697 686,873 2 Hilton Worldwide USA 4,115 678,630 3 Marriott International USA 3,783 653,719 4 Wyndham Hotel Group USA 7,485 645,423 5 Choice Hotels and Resorts USA 6,303 502,663 6 Accor France 3,576 461,719 7 Starwood Hotels and Resorts USA 1,161 339,243 8 Best Western USA 4,046 314,318 9 Home Inns China 2,180 256,555 10 Carlson Rezidor Hotel Group USA 1,079 168,927
  29. 29. Operating models in accommodation sector • Owned properties • Leased properties • Management contracts • Franchisee
  30. 30. Classification of hotels • From a customer perspective, hotel classification provides the following: • An objective platform to differentiate hotels based on facilities and quality of service. • The customer with accurate information. • Tourism agencies specific data that facilitate communication and marketing. • The regulator, a system based on which a graded taxation system could be implemented if necessary. • A transparent and measurable system by which hotels can benchmark themselves and work to improve services and facilities.
  31. 31. April 19, 2019 (C) Prof. Nimit Chowdhary @Jamia 31 Range of accommodation provision • Paying/ non-paying • Serviced/ non-serviced • Owned/ rented • Primary purpose/ secondary occupation • Static/ mobile • Purpose of visit – Holiday camps, business accommodation, etc.
  32. 32. April 19, 2019 (C) Prof. Nimit Chowdhary @Jamia 32 Characteristics of accommodation • Importance of location • Fixity of premises • Cost structures • Demand dependence • Contact dependence • Core service/ territory/ ownership
  33. 33. April 19, 2019 (C) Prof. Nimit Chowdhary @Jamia 33 Trends in accommodation • Reservations • Branding • Quality • Environmental issues – Energy conservation – Waste recommendation – Reduction of emission – Reduction of chemical usage
  34. 34. Accommodation Aggregators
  35. 35. Accommodation as Attractions
  36. 36. Unusual hotels of the world

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