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An Introduction to
Tourism & Hospitality
Industry in India
1
1. DATA & FACTS
• The Indian tourism and hospitality industry has emerged as one of
the key drivers of growth among the services sector in India.
• Tourism in India has significant potential considering the rich cultural
and historical heritage, variety in ecology, terrains and places of
natural beauty spread across the country.
• Tourism is also a potentially large employment generator besides
being a significant source of foreign exchange for the country.
• During January-April 2018 FEEs from tourism increased 17.4 per cent
year-on-year to US$ 10.62 billion.
• The tourism and hospitality sector is among the top 10 sectors in
India to attract the highest Foreign Direct Investment (FDI).
• During the period April 2000-December 2017, the hotel and tourism
sector attracted around US$ 10.90 billion of FDI, according to the
data released by Department of Industrial Policy and Promotion
(DIPP).
2
India ranked seventh in the world in terms
of travel & tourism’s total contribution to
GDP in 2017.
3
The sector’s total contribution to
GDP stood at US$ 208.9 billion
(9.6 per cent of GDP) in 2016
and is forecast to rise by 6.7 per
cent in 2017, and to rise by 6.7
per cent pa to Rs 28,491.8 billion
(US$ 424.5 billion), 10 per cent
of GDP in 2027.
In February 2018, the country
earned foreign exchange of
around US$ 2.706 billion, from
the tourism sector.
• Tourism Industry – Tourism means people
traveling for fun. It includes activities such as
sightseeing and camping. People who travel for
fun are called "tourists". Places where many
tourists stay are called "resorts". Places that
people go to for tourism are called tourist
destinations.
• It signifies a group of businesses that encompass
travel/ transportation vendors for air, rail, auto,
cruise, and motor-coach travel, and promote
travel and vacations 4
2. ABOUT THE INDUSTRY
• Hospitality industry – Hospitality means
the friendly and generous reception and
entertainment of guests, visitors, or
strangers.
• It is a broad category of fields within
the service industry that
includes lodging, event planning, theme
parks, transportation, cruise line, and
additional fields within the tourism
industry.
5
6
Lodging Food Service Travel Tourism
Sports &
Entertainment
Hotels
Motels
B&Bs
Resorts
QSR
restaurants
Catering
companies
Banquet
facilities
Fine-dining
restaurants
Cruise lines
Rail service
Car rentals
Motor coach
DMOs
CVBs
Tour
operators
Visitor centers
Arenas
Arts centers
Theaters
Parks
CLASSIFICATION OF INDUSTRY
• Variables - factors that can cause
something to change or vary
• Perishability - the probability of a product
ceasing to exist or becoming unusable
within a limited amount of time
• Intangibility - a state of being abstract, as
are things that cannot be touched
• Changeability - a condition of being
subject to change or alteration 7
3. IMPORTANT TERMS
• Diversity - ethnic variety as well as
socioeconomic and gender variety in a
group or society
• Ecotourism - a branch of tourism
encompassing adventure tourism and
sustainable development of regions for
future generations
• Market Segments - groups of consumers
categorized by specific characteristics to
create a target market
8
4. BASICS
A. Government Bodies/ Organizations
B. Classification
C. Licenses
D. Internal Departments
E. Meal Plans
F. Facilities
G. Guest Handling
9
A. GOVERNMENTBODIES/ORGANIZATIONS
1. India Tourism
2. Kerala Tourism
3. District Tourism Promotion Council
4. Kerala Travel Mart Society
5. Association Of Hotels, Tour
Operators Etc.
10
11
B.
12
• FSSAI Food Safety and Standards Authority License.
• Liquor License
• Health/Trade License.
• GST / VAT / Professional Tax / Building & Land Tax
• Fire & Safety Department
• Environmental Clearance
• Music License
• ESI & PF & Labour Department
• Ayurveda License
• Pollution Control Board
• Legal Metrology 13
C. LEGAL REQUIREMENTS
D.INTERNALDEPARTMENTS
• Front Office & Reservations
• Housekeeping
• Food & Beverages Service
• Food & Beverages Production
• Human Resources and Administration
• Accounts, Store & Purchase
• Engineering, EDP & IT
• Security & Safety
• Utility and KST
• Sales & Marketing
14
E.MEALPLANS
• AP or American Plan
American Plan or AP means that apart from room rent, quoted
hotel tariff includes all 3 meals as well i.e. Breakfast, Lunch &
Dinner. In Europe and some other countries the American Plan is
also referred to as Full Pension or Full Board Plan. This plan is
good for tourists visiting remote places where availability of
food outside/nearby or hygiene could be an issue.
• MAP or Modified American Plan
Modified American Plan or MAP means quoted rates include
two meals a day, namely breakfast and either lunch or dinner. In
Europe and some other countries the Modified American Plan is
also referred to as Half Pension or Half Board Plan. Preferred by
most of the tourists as you can leave hotel with a good
breakfast, spend the day out, have lunch at some nice local
restaurant and go for dinner in the hotel after a shower.
15
• CP or Continental Plan
Under Continental or CP Meal Plan, room rent and
complimentary free breakfast are included in the tariff. And in
case you decide to have dinner and lunch at the hotel, you
always have the option to pay extra. Continental Plan is
supposed to include a continental breakfast. However, hotel
nowadays use the term for any kind of breakfast. Most of the
hotels have breakfast buffet (for all meal plans) with tea, coffee,
milk, juices, eggs, pancakes, local dishes, breads and corn flakes.
• EP or European Plan
European Plan or EP will mostly have the lowest tariff in a rate
card simply because it includes only room rent and no meals.
This gives you the option of trying local food and save some
money as well. You always have the option of paying and having
food in the hotel. Another advantage of EP is that since almost
every hotel has more than 1 restaurant, you are free to try and
choose the one you like. 16
F.FACILITIES
• Rooms
• Restaurants & Coffee Shop
• Travel Desk
• Curio Shop
• Ayurveda Spa
• Bar
• Swimming Pool & Fitness Centre
• Business Centre
• Banquets
• Wallet Parking 17
These are my 4 “must-do’s” for making great impressions.
• Friendly Welcome – “Hi, Welcome to the Quilon Beach Hotel”
or “Good afternoon, Welcome to Quilon Beach Hotel. Is this
your first time visiting our city?”
• Stand Up – Get off that chair and be presentable (iron your
shirt!)
• Make Eye Contact – Eye contact produces feelings of caring,
trustworthiness and likability.
• Smile – Why look sad? When instead, you can smile. They say
a smile is contagious and it’s actually true! When we smile, it
creates a spark that triggers the brain’s pleasure center. Read
my article on “Your Million Dollar Smile.” 18
G. GUEST HANDLING METHODS
Top Ten ways of handling guest Complaints
• Listen with concern and empathy.
• Isolate the guest if possible, so that other guests won't overhear.
• Stay calm. Don't argue with the guest.
• Be aware of the guest's self-esteem. Show a personal interest in the
problem, Try to use the guest name frequently.
• Give the guest your undivided attention. Concentrate on the
problem, no on placing blame. Do NOT Insult the guest.
• Take notes. Writing down the key facts saves time if someone else
must get involved. Also, Guest tends to slow down when they see
the front desk agent trying to write down the issue.
• Tell the guest what can be the best done. Offer choices. Don't
promise the impossible, and don't exceed your authority.
• Set an approximate time for completion of corrective actions. Be
specific, but do not underestimate the amount of time it will take to
resolve the problem.
• Monitor the progress of the corrective action.
• Follow up. Even if the complaint was resolved by someone else,
Contact the guest to ensure that the problem was resolved
satisfactory.
19
Here are some Right versus Wrong hospitality words.
• “NO” vs Find a solution – No is not the answer
• “We can’t do that” vs “Please allow me to figure out a solution”
• “We’re sold out” vs “Tonight our hotel is fully committed, can I offer
to help you find nearby accommodations?”
• “Checking out/in?” vs “Good Morning/Afternoon, How may I assist
you?”
• “I don’t know” vs “ Please allow me to find out this for you”
• “I don’t work in that department” vs “I’m happy to help you find
that right person to better answer your question”
• “It’s our policy” vs “Let me see how I can help you with this”
• “You can’t do that” vs “Here are some alternative suggestions for
you to…”
• “No Problem” vs “It’s my pleasure”
• “It’s not my fault” vs “On behalf of _____and our hotel, I’m
sincerely apologize….”
20
Any Questions ?
21

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Tourism & Hospitality Industry

  • 1. An Introduction to Tourism & Hospitality Industry in India 1
  • 2. 1. DATA & FACTS • The Indian tourism and hospitality industry has emerged as one of the key drivers of growth among the services sector in India. • Tourism in India has significant potential considering the rich cultural and historical heritage, variety in ecology, terrains and places of natural beauty spread across the country. • Tourism is also a potentially large employment generator besides being a significant source of foreign exchange for the country. • During January-April 2018 FEEs from tourism increased 17.4 per cent year-on-year to US$ 10.62 billion. • The tourism and hospitality sector is among the top 10 sectors in India to attract the highest Foreign Direct Investment (FDI). • During the period April 2000-December 2017, the hotel and tourism sector attracted around US$ 10.90 billion of FDI, according to the data released by Department of Industrial Policy and Promotion (DIPP). 2
  • 3. India ranked seventh in the world in terms of travel & tourism’s total contribution to GDP in 2017. 3 The sector’s total contribution to GDP stood at US$ 208.9 billion (9.6 per cent of GDP) in 2016 and is forecast to rise by 6.7 per cent in 2017, and to rise by 6.7 per cent pa to Rs 28,491.8 billion (US$ 424.5 billion), 10 per cent of GDP in 2027. In February 2018, the country earned foreign exchange of around US$ 2.706 billion, from the tourism sector.
  • 4. • Tourism Industry – Tourism means people traveling for fun. It includes activities such as sightseeing and camping. People who travel for fun are called "tourists". Places where many tourists stay are called "resorts". Places that people go to for tourism are called tourist destinations. • It signifies a group of businesses that encompass travel/ transportation vendors for air, rail, auto, cruise, and motor-coach travel, and promote travel and vacations 4 2. ABOUT THE INDUSTRY
  • 5. • Hospitality industry – Hospitality means the friendly and generous reception and entertainment of guests, visitors, or strangers. • It is a broad category of fields within the service industry that includes lodging, event planning, theme parks, transportation, cruise line, and additional fields within the tourism industry. 5
  • 6. 6 Lodging Food Service Travel Tourism Sports & Entertainment Hotels Motels B&Bs Resorts QSR restaurants Catering companies Banquet facilities Fine-dining restaurants Cruise lines Rail service Car rentals Motor coach DMOs CVBs Tour operators Visitor centers Arenas Arts centers Theaters Parks CLASSIFICATION OF INDUSTRY
  • 7. • Variables - factors that can cause something to change or vary • Perishability - the probability of a product ceasing to exist or becoming unusable within a limited amount of time • Intangibility - a state of being abstract, as are things that cannot be touched • Changeability - a condition of being subject to change or alteration 7 3. IMPORTANT TERMS
  • 8. • Diversity - ethnic variety as well as socioeconomic and gender variety in a group or society • Ecotourism - a branch of tourism encompassing adventure tourism and sustainable development of regions for future generations • Market Segments - groups of consumers categorized by specific characteristics to create a target market 8
  • 9. 4. BASICS A. Government Bodies/ Organizations B. Classification C. Licenses D. Internal Departments E. Meal Plans F. Facilities G. Guest Handling 9
  • 10. A. GOVERNMENTBODIES/ORGANIZATIONS 1. India Tourism 2. Kerala Tourism 3. District Tourism Promotion Council 4. Kerala Travel Mart Society 5. Association Of Hotels, Tour Operators Etc. 10
  • 11. 11 B.
  • 12. 12
  • 13. • FSSAI Food Safety and Standards Authority License. • Liquor License • Health/Trade License. • GST / VAT / Professional Tax / Building & Land Tax • Fire & Safety Department • Environmental Clearance • Music License • ESI & PF & Labour Department • Ayurveda License • Pollution Control Board • Legal Metrology 13 C. LEGAL REQUIREMENTS
  • 14. D.INTERNALDEPARTMENTS • Front Office & Reservations • Housekeeping • Food & Beverages Service • Food & Beverages Production • Human Resources and Administration • Accounts, Store & Purchase • Engineering, EDP & IT • Security & Safety • Utility and KST • Sales & Marketing 14
  • 15. E.MEALPLANS • AP or American Plan American Plan or AP means that apart from room rent, quoted hotel tariff includes all 3 meals as well i.e. Breakfast, Lunch & Dinner. In Europe and some other countries the American Plan is also referred to as Full Pension or Full Board Plan. This plan is good for tourists visiting remote places where availability of food outside/nearby or hygiene could be an issue. • MAP or Modified American Plan Modified American Plan or MAP means quoted rates include two meals a day, namely breakfast and either lunch or dinner. In Europe and some other countries the Modified American Plan is also referred to as Half Pension or Half Board Plan. Preferred by most of the tourists as you can leave hotel with a good breakfast, spend the day out, have lunch at some nice local restaurant and go for dinner in the hotel after a shower. 15
  • 16. • CP or Continental Plan Under Continental or CP Meal Plan, room rent and complimentary free breakfast are included in the tariff. And in case you decide to have dinner and lunch at the hotel, you always have the option to pay extra. Continental Plan is supposed to include a continental breakfast. However, hotel nowadays use the term for any kind of breakfast. Most of the hotels have breakfast buffet (for all meal plans) with tea, coffee, milk, juices, eggs, pancakes, local dishes, breads and corn flakes. • EP or European Plan European Plan or EP will mostly have the lowest tariff in a rate card simply because it includes only room rent and no meals. This gives you the option of trying local food and save some money as well. You always have the option of paying and having food in the hotel. Another advantage of EP is that since almost every hotel has more than 1 restaurant, you are free to try and choose the one you like. 16
  • 17. F.FACILITIES • Rooms • Restaurants & Coffee Shop • Travel Desk • Curio Shop • Ayurveda Spa • Bar • Swimming Pool & Fitness Centre • Business Centre • Banquets • Wallet Parking 17
  • 18. These are my 4 “must-do’s” for making great impressions. • Friendly Welcome – “Hi, Welcome to the Quilon Beach Hotel” or “Good afternoon, Welcome to Quilon Beach Hotel. Is this your first time visiting our city?” • Stand Up – Get off that chair and be presentable (iron your shirt!) • Make Eye Contact – Eye contact produces feelings of caring, trustworthiness and likability. • Smile – Why look sad? When instead, you can smile. They say a smile is contagious and it’s actually true! When we smile, it creates a spark that triggers the brain’s pleasure center. Read my article on “Your Million Dollar Smile.” 18 G. GUEST HANDLING METHODS
  • 19. Top Ten ways of handling guest Complaints • Listen with concern and empathy. • Isolate the guest if possible, so that other guests won't overhear. • Stay calm. Don't argue with the guest. • Be aware of the guest's self-esteem. Show a personal interest in the problem, Try to use the guest name frequently. • Give the guest your undivided attention. Concentrate on the problem, no on placing blame. Do NOT Insult the guest. • Take notes. Writing down the key facts saves time if someone else must get involved. Also, Guest tends to slow down when they see the front desk agent trying to write down the issue. • Tell the guest what can be the best done. Offer choices. Don't promise the impossible, and don't exceed your authority. • Set an approximate time for completion of corrective actions. Be specific, but do not underestimate the amount of time it will take to resolve the problem. • Monitor the progress of the corrective action. • Follow up. Even if the complaint was resolved by someone else, Contact the guest to ensure that the problem was resolved satisfactory. 19
  • 20. Here are some Right versus Wrong hospitality words. • “NO” vs Find a solution – No is not the answer • “We can’t do that” vs “Please allow me to figure out a solution” • “We’re sold out” vs “Tonight our hotel is fully committed, can I offer to help you find nearby accommodations?” • “Checking out/in?” vs “Good Morning/Afternoon, How may I assist you?” • “I don’t know” vs “ Please allow me to find out this for you” • “I don’t work in that department” vs “I’m happy to help you find that right person to better answer your question” • “It’s our policy” vs “Let me see how I can help you with this” • “You can’t do that” vs “Here are some alternative suggestions for you to…” • “No Problem” vs “It’s my pleasure” • “It’s not my fault” vs “On behalf of _____and our hotel, I’m sincerely apologize….” 20