CLASSIFICATION OF HOTELS
CLASSIFICATION ON THE BASIS OF OWNERSHIP
Hotels can be categorized by ownership. There are six different ways hotels can be owned and
Independently owned and operated
Independently owned but leased to an operator
Owned by a single entity or group that has hired a hotel management company to operate
Owned and operated by a chain
Owned by an independent investor or group and operated by a chain
Owned by an individual group and operated as a franchise of a chain
An independent hotel is not connected with any established hotel company and is owned by
individual or group investors. A management company contracts with hotel owners to operate
their hotels. The management company may or may not have any of its own funds invested. It is
usually paid by a combination of fees plus a share of revenues and profits. A hotel chain is a group
of affiliated hotels.
Example: The Capitol, Bangalore, The Imperial, New Delhi
A franchise is the authorization granted by a hotel chain to an individual hotel to use the chain’s
trade mark, operating systems, and reservation system in return for a percentage of hotel revenues
plus certain other fees, such as advertising fees. A franchiser is the party granting the franchise:
holiday inn worldwide is an example of franchisor. A franchiseeis the party granted the franchise.
Franchising in the hospitality industry is a concept that allows a company to expand more rapidly by
using other people’s money than if it had to acquire its own financing. the company or franchisor
gets certain rights: for example to use its trademark, signs, proven operating systems, operating
procedures and possible reservation system ,marketing know-how, purchasing discounts and so on
for a fee. In return the franchisee agrees by signing the franchise contract to operate the
restaurant, hotel and so on in accordance with the guidelines set by the franchisor. Franchising is a
way of doing business that benefits both the franchisor –who wants to expand the business rapidlyand the franchisee that has a financial backing but lacks specific expertise and recognition.
The benefits to the franchisee are as follows:
A set of plans and specifications from which to build
Centralized reservation system
Participation in volume discount in purchasing furnishings, fixtures and equipment
The benefits to the franchise company are as follows:
Increased market share/recognition
Up front fees
Example: Le Meridien, Holiday inn
There are also referral systems. Referral systems tend to be made up of independent properties or
small chains that have grouped together for common marketing purpose. Marketing consortiums
or referral associations offer similar benefits to properties such as franchises, albeit at a lower cost.
Hotels and motels with a referral association share a centralized reservation system and a common
image, logo as well as management training and continuing training programs.
A referral group consists of a number of properties, independently owned and operated, that join
under a common identity while maintaining their autonomy. They do this for one or more of the
To operate a reservation system.
To publish joint brochures
To share advertising
To refer business to each other
To refer trained staff to each other
To take advantage of joint purchasing power
To maintain sales offices in major traffic centers
The referral associations offer some of the same benefits as franchises, but at much lower costs. a
referral association may provide the independent hotel with increased visibility, marketing and
buying power, without the necessity of giving up control or ownership. Hotel and motels within a
referral association share a CRS and a common image, logo, or advertising slogan. The referral
association publishes a membership directory, usually given away free to interested guest. In
addition the referral association may offer group buying discounts to members, as well as
management training and continuing education programs, hotels pay initial fee to join the referral
association and an annual membership fee. Generally this fee is much less than that paid to become
a member of the hotel franchise system.
Common Reservation Systems, standardized quality, joint advertising and a recognizable logo were
still are the limited objetives of the most referral groups.
Hotel chains account for a large percentage of the world’s hotel room inventory. Some of the
world’s best hotel rooms are managed by chains.
Example: TAJ GROUP OF HOTELS, ITC CHAIN OF HOTELS
HOTELS CLASSIFED BY PRICE
Three broad categories of hotels distinguished by price are:
Limited service: economy and budget
There are many limited service hotels in the market place today. They typically offer guest rooms
only. There is little or no public space. And usually no or very limited food and beverage facilities.
Room rates are correspondingly lowest for this type of lodging property.
Example: Kamat Group, Comfort Inn chain
Mid price (full service and limited service)
Mid scale hotels offer a wide range of facilities and amenities. Usually there will be in comparison to
budget/economy properties, more public space and meeting/function space with at least one food
and beverage facility.
Example: The Chancery, Bangalore, Taj Indi one, Bangalore
At the top of the price category are the luxury hotels. They feature upscale décor and furnishings
that may be unique to the particular hotel. These hotels offer a full range of amenities and services.
Such hotels would typically have a concierge service and several food and beverage operations,
including fine dining facilities, banquet area and full room service. Different types of recreational
facilities are also available.
Example: Taj Westend, Bangalore, The Leela Palace, Bangalore
HOTELS CLASSIFIED BASED ON SIZE
Size or the number of guest rooms in a property gives us one common way to categorize hotels.
Hotels may be broadly grouped as under:
Under 150 rooms
150 to 299 rooms
300 to 600 rooms
More than 600 rooms
BASED ON LOCATION & CLIENTELE
These hotels are located in downtown or business district–areas that are convenient and of interest
to their target markets. And cater primarily to the business traveler. These are also referred to as
transient hotels because of the relatively short length of guest stays compared with other hotels.
Such of these hotels have full service facilities with coffee shop as well as other restaurants, bar or
cocktail lounge, room service, laundry, valet service, business center, gift shop and health club
Example: Taj Residency & The Oberoi Bangalore,
Resort hotels are generally found in destinations that are desirable vacation spots because of their
climate, scenery, recreational attractions, or historic interest. Mountains and seashore are favourite
locales. Resorts provide a comprehensive array of recreational amenities, depending on the
geographic location. A Variety of f &b outlets is available, ranging from informal to fine-dining
restaurants. Usually hotels located at hill stations, beaches, lakes, backwater, forest belt, etc are
termed as resorts.
Example: Fort Aguada Beach Resort, Goa, The Leela Beach, Goa
Many airport hotels enjoy a very high occupancy because of the large number or travelers arriving
and departing from major airports. The guest mix in airport hotels consists of business, group, and
leisure travelers. Passengers of late flights may stay over at the airport hotel while others wait while
waiting for the flights.
Airport hotels are generally full service. To care for the needs of guests who may still feel as if they
are different time zones, room service and restaurant timing may be extended, even offered twenty
four hours. Convenient locations, economical prices, easy and less costly transportation costs to and
from the airport are some reasons why airport hotels are becoming intelligent choices for the
Example: The Trident, Chennai: The Centaur, New Delhi
Freeway hotels and motels came into prominence in the 1950s and 1960s.the travelers needed a
convenient place to stay that was reasonably priced with few frills. Guest could simply drive up,
park outside the office, register, and rent a room .over the years more facilities were added:
lounges, restaurants, pools, game rooms etc.
Example: The Guest line, Bangalore, Suman Motels
Floating Accommodation & other allied hospitality services situated on water bodies.
Example: Cruise liners, shikaras (house boats)
Hotel facilities available on wheels such as a train, caravan.
Example: Palace on wheels
Typically smaller hotels managed by the proprietor. The hotel is often has a more personal
atmosphere. It is usually located near affordable attractions, major intersections and convenient to
public transportation. Furnishings and facilities are clean but basic. Most will not a restaurant on
site but are usually within walking distance to some good low priced dining.
The hotel should have at least 10 lettable bed rooms of which at least 25% should have attached
bathrooms with a bathroom for every four of the remaining rooms.
At least 25% of the bathrooms should have the western style WCs.
Receptions counter with a telephone and a telephone for the use of guests and visitors.
Example: Hotel Ajanta, Bangalore
Usually denotes independent and name brand hotel chains with a reputation for offering consistent
quality amenities. The hotel is usually small to medium sized and conveniently located to
moderately priced attractions. The facilities typically include telephones and TVs in the bed room
some hotels offer limited restaurant service. Somehow room service and bell service are not usually
The hotel should have at least 10 lettable bed rooms of which at least 75% should have attached
bathrooms and showers with a bathroom for every four of the remaining rooms.
25% of the rooms should have AC.
Receptions counter with a telephone
Telephone on each floor if the rooms do not have a telephone each.
Supervisory staff must understand English.
Laundry and dry cleaning services.
Example: woodlands Hotel, Bangalore, Kamath Yatrinivas, Bangalore
Typically these hotels offer spacious accommodations that include well appointed rooms,
decorated lobbies. Bell desk services are generally not available. They are often located near major
express ways or business areas, convenient to shopping and moderate to high priced attractions.
The hotels usually feature medium sized restaurants they typically offer breakfast through dinner.
Room service availability may vary. Valet parking, fitness centers, pools are often provided.
The hotel should have at least 20 lettable bed rooms of which all should have attached bathrooms
At least 50% of the rooms should be AC.
Reception and information counter, book stall, travel agency, safe deposit etc.
Telephone in each room and one for the use of visitors.
Good quality Indian and continental food
Senior staff must possess a good knowledge of English.
Example: Museum Inn, Bangalore, Angsana Oasis Spa & Resort, Bangalore
Mostly large formal hotels with reception areas, front desk service, and bell desk service. The hotels
are usually located near shopping, dining, and other major attractions. The level of service is well
above average. And the rooms are well lit and well furnished. Restaurant dining is usually available
and is having more than one choice. Some properties will offer continental breakfast and /or happy
hour delicacies. Room service is usually available during most hours. Valet parking, concierge
service, fitness centers, pools are often provided.
Hotel must have 25 lettable rooms and all with attaché bathrooms with shower cubicle/bath tub
Should have a recognized travel agency, book stall, safe deposit facilities, left luggage etc.
Example: Taj Gateway, Bangalore, Hotel Janpath, New Delhi, St. Marks Hotel, Bangalore.
These are hotels that offer only the highest level of accommodations and services. The properties
offer a high degree of personal service. Although most five star hotels are large properties,
sometimes the small independent (non-chain) property offers an elegant intimacy that can not be
achieved in larger setting. The hotel locations can vary from the exclusive location of suburban area
to heart of the city. The hotel lobbies are sumptuous, the rooms complete with stylish furnishings,
and high quality linen. The amenities often include DVD players, Jacuzzis and more. The hotels
feature up to three restaurants with exquisite menus. Room service is also available 24 hours a day.
Fitness centers, valet parking are typically available. A concierge is also available to assist you.
Architectural features and general construction of the hotel building should be distinctive
Adequate parking space for cars.
Hotel must have at least 25 lettable; rooms with modern shower chambers.
All guest areas should be air-conditioned
Adequate number of efficient lifts.
24 hours reception, cash and information counter
Example: The Oberoi, Bangalore, The Grand Maratha Sheraton, Mumbai,Taj Bengal and The Park,
Kolkota, The Inter-Continenetal Park Royal, New Delhi, ITC hotel Maurya Sheraton & towers, New
OTHER HOTEL CATEGORIES
Casino hotels and resorts differ significantly in their operation compared to most hotels. In casino
hotels and resorts, gaming operations are the major revenue centers. Most of these are in Las
Vegas. The casino industry is now coming into the financial main stream to the point that as a
significant segment of the entertainment industry especially in the US. Casino hotels are leaning
towards making their hotels into “family friendly”
They have baby sitters available at any point of the day, children’s attractions ranging from parks to
circuses and museums, and kid’s menus in the restaurant. for adults in addition to gaming health
spas for relaxation, dance clubs, and dazzling shows are available.
Example: Las Vegas Hilton Hotel & Casino, MGM Grand, Flaming Hilton in Las Vegas
The concept of Heritage Hotels was introduced with a view to convert the old palaces, havelies,
castles, forts and residences built prior to 1950 into accommodation units as these traditional
structures reflect the ambience and lifestyle of the bygone era and are immensely popular with the
tourists. The scheme is aimed at ensuring that such properties, landmarks of our heritage are not
lost due to decay but become financially viable properties providing additional room capacity for
The Heritage Hotels have also been sub-classified in the following categories:
: This category covers hotels in residences / havelies / hunting
lodges / castles / forts / palaces built prior to 1950 but after 1935.
: This category covers hotels in residences / havelies / Hunting
lodges / castles / forts / places built prior to 1935 but after 1920.
: This category covers hotels in residences / havelies / hunting
lodges / castles / forts / palaces built prior to 1920.
Till the end of March 2002, as many as 69 properties have been classified as Heritage Hotels
providing a room capacity of 1810 rooms. Guidelines have also been formulated for conversion of
heritage properties into heritage hotels and their approval at project planning stage.
Example: Usha Kiran Palace, Gwalior, Lalitha Mahal Palace, Mysore.
Rambagh Palace, Jaipur, Lake Pichola hotel, Udaipur
Time-sharing, more recently known as vacation ownership, involves a “type of shared ownership in
which the buyer purchases the right to uses a residential dwelling unit for a portion of the year or
Each Condominium or unit of a vacation ownership resort is divided into intervals, typically by the
week and sold separately. The condominiums are priced according to a variety of factors including
unit size, resort amenities, location and season. Purchasers of vacation ownership properties can
typically travel to other destinations through exchange programs provided through the timeshare
resort developers. Condominium hotels are also called condo hotels or even condotels. Vacation
ownership offers consumers the opportunity to purchase fully furnished vacation accommodations
in a variety of forms, such as weekly intervals or points in points based systems, for a percentage of
the cost of the full ownership. For a one time purchase price and payment of a yearly maintenance
fee, purchasers own their vacation either in perpetuity or for a predetermined number of years.
During the 1960s and 1970s, when inflation was a serious problem in many countries, time sharingwhich first started in the French Alps in the 1960s-seemed like an idea whose time had come.
Example: RCI, Club Mahindra, Country Club Group
Boutique hotels span all price segments and are noticeably different in look and feel from
traditional lodging properties interior design styles in boutique hotels range from postmodern to
homey. Soft attributes, such and image and atmosphere, typically distinguish these properties.
Traveler’s desires to be trendy, affluent and artistic tie into boutique themes.
Example: The Park, Bangalore, The Park, Kolkota
All suite hotels became known as a separate category in the 1970s.guest rooms are larger than the
normal hotel room usually containing more than 500 square feet. A living area or parlor is typically
separate from the bedroom, with some properties offering kitchen areas. All-suite hotels can be
found in urban, sub-urban and even residential locations. The amenities and services can vary
widely in this type of hotels.
All suite hotels were originally positioned to attract extended stay travelers, but they roved popular
with other kinds of travelers as well. An all suite hotel gave guest more private space.
Example: Residence Inns, Fairfield Suites & Town-Place Suites by the Marriot chain.
Convention hotels are large with 500 or more guest rooms. These properties offer extensive
meeting and function space, typically including large ball rooms and even exhibition areas. Food
and beverage operations tend to be extensive, with several restaurants and lounges, banquet
facilities and room service. Convention hotels are often in close proximity to convention centers
and other convention hotels, providing facilities for city wide conventions and trade shows. These
hotels have many banquet areas within and around the hotel complex. These hotels have a high
percentage of double occupancies. Convention hotels may also offer a concierge floor to cater to
individual guest needs. Round the clock room service, an in house laundry, a business center, a
travel desk, and an airport shuttle service are other amenities found in convention hotels.
Although all hotels with meeting facilities compete for conferences there are specialized hotels that
almost exclusively book conferences, executive meetings, and training seminars. While they provide
most of the facilities found at the conventional hotels, conference centers are built to provide living
and conference facilities without any outside distractions that might detract from hotels held in
ALTERNATIVE LODGING PROPERTIES:
Besides hotels, these are several other types of lodging establishments which compete for business
and leisure travelers. recreational vehicle parks, campgrounds, and mobile home parks are
somewhat like hotels since they involve the rental of space for overnight accommodations
Another form of alternative lodging is the corporate lodging business very commonly known
as serviced apartments. These are designed for guests wishing to stay for longer periods, some
times up to six months or longer. While hotels are usually designed for guests staying from one to
ten nights, corporate lodging is better suited to guests with very long stay requirements. Instead of
using hotels or hotel buildings, corporate lodging usually provides fully furnished apartments for
guests. The service provider rents the apartment, provides furniture and house wares, and provides
housekeeping and other services to the guests. Corporate lodging is usually cost competitive with
hotels, since apartments can be rented and furnished by the owner or the service provide for a
lower daily cost than that incurred by hotels.
Example: Stay and Work, Bangalore,
Another example of alternative lodging is the cruise ship industry. Cruise ships have become major
competition for resorts. They offer many amenities offered similarly at island resorts, while having
the unique advantage of moving from island to island as part of the experience. Modern cruise
ships offer all the advantages of resort hotels. they are equipped with many modern convenience
such as ship to shore telephones, satellite television, fitness centers, movie theaters, multiple dining
and cocktail lounge facilities, spas, casinos, shopping, and of course novelty to waking up in
different location at every morning. Some cruise ships now even offer conference facilities for
corporate or association meetings.
Example: Carnival Cruise liners, Caribbean Cruise liners, Norwegian cruise liners.
Types of rooms
Single: meant for one person with a single bed of size 39”*81”.
Double: meant for two persons & size of the double bed in the room is 57”*81
Twin bedded: room having two identical single beds size of the bed is same as the single bed.
Triple room: meant for 3 persons
Quad room: for 4 persons
Cabana: a room on the beach or by the pool separated from the main house and sometimes
furnished as sleeping room.
Adjoining room: are rooms next to each other, but not necessarily communicating
Corner room: an outside room on the corner of the building having two exposures
Hospitality: for entertainment
Studio room; a bed approximately 36”*75” without headboard or footboard that serves a s a sofa
during the day is called studio bed the room with a studio bed is called a studio room.
Penthouse: situated on the terrace of the hotel generally meant for retired or rich guests.
Interconnecting rooms: two rooms having an interconnecting door
Duplex: Two floors of rooms or a split level of rooms connected through an internal staircase. One
room could be used as a bedroom while the other is generally used as a living room.
Efficiency: accommodations that include kitchen facilities
Parlor: a sitting or living room not used as bedroom
Salon: the European designation for parlor
Siberia: jargon for a very undesirable room, one sold only after the house fills and then only after
the guest has been alerted to its location and condition
Hollywood twin bedded room: 2 single beds with a single head board meant for 2 persons.
Twin double room: two double beds meant for 4 persons i.e. families.
Single-suite: a set of two or more rooms well furnished
Suite: expensive room having good furnishing and a lot of amenities normally with a living room,
bedrooms and kitchenette.
Junior suite: one large room sometime with half partition furnished as both parlor and bed room
Lanai: Hawaiian term for veranda, a room with a porch or balcony usually overlooking garden or
Physically challenged room: it is the room meant for handicapped person.
INTRODUCTION TO TOURISM, HOSPITALITY AND HOTEL INDUSTRY
TOURISM AND ITS IMPORTANCE
HOSPITALITY - ORIGIN, EVOLUTION AND GROWTH
BRIEF INTRODUCTION TO HOTEL’S CORE AREAS WITH SPECIAL REFERENCE TO FRONT OFFICE
TOURISM AND ITS IMPORTANCE
Tourism is recognized as a global industry today. It is sizeable & complex industry, in the last 40
years tourism has been taken a rapid and continuous growth. The multifaceted nature of tourism &
its various links with the manufacturing and retail sectors & its numerous seasonal or unofficial
businesses make it extremely difficult to asses its market size.
An integrated amalgamation of those businesses and agencies which totally or in part provide the
means of transport, goods, services, and other facilities for travel outside of the home community
for any purpose not related to day to day activity.
INTER-RELATIONSHIP WITHIN THE TRAVEL AND TOURISM INDUSTRY
An important unique feature of the travel and tourism industry is the inter relationships of the
various parts of the whole. A trip may consists of a flight, car rental, stay in a hotel, several
restaurant meals and some gift purchases.
WHY PEOPLE TRAVEL?
Visiting friends & relatives (VFR)
Beauty, nature, national parks
The following table shows the businesses that make up travel and tourism industry.
Hotel/Restaurant Suppliers Distillers/Brewers/Bottles
Cameras And Film
Motor Fuel Producers
Maps, Travel Books
Food And Beverage
The tourism goals set will be tempered by the constraints already discussed. Typical tourism goals
Economic: to optimize their contribution of tourism and recreation to economic prosperity, full
employment, regional economic development, and improved international balance of payments.
Consumer: to make opportunity for and the benefits of travel and recreation universally accessible
to residents and visitors
To contribute to the personal growth and education of the population and encourage their
appreciation of the geography, history and ethnic diversity of the nation
To encourage free and welcome entry of the foreigners, while balancing
this goal with the need
to monitor persons and goods entering the country with laws protecting public health
Environment and natural resource:
To protect and preserve the historical and cultural foundations of a nation and as a living part of
community life and development, and to ensure an opportunity to the future generations to enjoy
the rich heritage of a nation.
To ensure the compatibility of tourism recreational and activity policies with other national interest
in energy development and conservation, environmental protection and judicial use of natural
Government operations: to harmonize to a maximum extent possible all federal activities
supporting tourism and recreation :to support the needs of the general public and private sectors of
the industries involved with tourism and recreation: to take a leadership role of those concerned
with tourism, recreation, and national heritage conservation.
Different people will define international tourism in different ways. One way to look at international
tourism is in the context of domestic tourism. In the simplest sense, domestic tourism refers to
people traveling within their own country. In contrast international tourism refers to people
traveling out side their own country.
But international tourism is much more than simply traveling beyond the borders of ones own
country. International tourism encompasses all the services required for the tourist-including those
in the country of origin, the destination and the stops made en route. Companies other than airlines
or cruise lines are involved. International tourism integrates many public, private, and government
agencies including airport authorities, border and custom agencies harbors and ports, and public
transaction systems. In addition both public and private attractions including lodging operations
have a stake in satisfying the volume of demand of international tourism.
International tourism provides employment for millions of people around the world. As tourism
expands on a global scale .so too will the number of people employed in tourism related businesses.
International travels benefits the nations through cultural, social and economic exchange. Such
contacts also foster the exchange of ideas which can result in economic activity and diversification.
This is especially the case when tourism introduces new technologies, encourages foreign
investment, and results in selective relocation of business personnel.
All things considered, tourism is not without cost. It can degrade the environment as well as
dislocate and disrupt societies and cultures. The development of facilities, transportation systems,
and amenities to service tourists can be very destructive to the environment. Scenic views and
wonders can be destroyed, and the quality of air and water can be degraded. International tourism
can also disrupt local norms and cultures by importing new manners of dress, codes of conduct and
social interactions that are often very different from those of native culture.
HOSPITALITY - ORIGIN, EVOLUTION AND GROWTH
The hotel industry is undergoing many changes the demand for hotels is affected as the economic
fortune of countries, region, cities rise and fall. Each year companies and hotel change ownership
and new companies & brands enter the market place. Brand names that are popular today may not
be there in the next decade. For example: the popular ITDC chain of hotels has been diluted over
time with change of ownership and new brands taking over.
No one knows exactly when the first inns opened: but certainly the first inns were private homes
that offered accommodations to travelers. By 500 BC ancient cites in Greece, Egypt, China, had a
number of establishment that offered food and drink as well as beds to travelers. In France, large
building that had rooms to let by the day, week, or longer were called ‘hotel garni’. The
word ‘hotel’ was first used in England in about 1760 by the Fifth Duke of Devonshire to name a
lodging establishment in London.
In 1794 the first hotel in the United States opened – the 70-room city hotel in Broadway in New
York City. Over the decades, names like, Cesar Ritz (France), Ellsworth Statler, Conrad Hilton, Ernest
Henderson (of the Sheraton chain), Kemmons Wilson (of the Holiday Inn chain) are anonymous with
the growth and development of the hotel industry.
While development were in full swing in the new world, India still under the British rule was
ignorant to all these progress but for one man. JRD Tata founded the first hotel in India with the
opening of ‘Taj Mahal’, Mumbai in 1904. MS Oberoi on the other hand launched the Oberoi chain
under East India Company and in independent India chains such as ITC Windsor Sheraton, the Leela
group, ITDC, The Park, The Grand, Clarke group; Mahindra hospitality pioneered the hospitality
Evolution & growth
In 1960’s the development of new locations fuelled the expansion of the hotel industry. Prior to
that time hotels were built primarily in city center and resort areas as commerce and industry
spread from urban center’s to rural suburban and airport locations, hotel companies like Hilton,
Sheraton, Marriot recognized opportunities to develop their brands in these new location.
In the 1970’s intense competition among established and emerging hotel chains created a need for
chains to better differentiate their product. Some did this with architecture and décor. For example,
the atrium lobby became the Hyatt’s signature of its regency brand. Hotel company adopts
distinctive motifs- Ritz Carlton décor was traditions, Hyatt’s was contemporary.
Pampering the hotel guests was the strategy of the 1980’s, room and bathroom amenities
specialties soaps, sewing kits, ,mouth wash, shampoo, and a variety of other personal care items
could be found in most hotels what ever the rate category. Ofcourse the higher rate hotel provided
the most elaborate amenity package. Some first class and luxury hotels set aside one or more guest
floors as club area. For higher rate club guest could enjoy a number of special services including an
exclusive club desk for check in and checkout and complimentary, afternoon tea, evening cocktails
and before bed snacks served in the clubs private lounge. Exercise room even complete spa
facilities were added to many hotels to satisfy travelers growing interest in physical fitness. Hotels
with predominantly business traveler markets added business centre to provide secretarial and
translating services as well as computer and fax facilities.
In the early 90’s the concept of quality service as a differentiating factor came to the forth. Hotel
companies implemented quality assurance program and referred to the quality of service in their
advertising, as the 1990’s progresses, the industry emphasized innovation and new business
strategies. Segmentation was one of the most important strategies implemented by many hotel
chains to increase their market share.
At the end of the 20th century and the beginning of the 21st, mergers, acquisitions and joint
ventures changed lodgings competitive environment globally. In India for example, The Oberoi
tower in Mumbai tied up with Hilton International.
BRIEF INTRODUCTION TO HOTEL’S CORE AREAS WITH SPECIAL REFERENCE TO FRONT
In order to attract and serve the guests and make a reasonable profit, hotels are organized into
functional areas or divisions based on the services it provides. Within each division, there are
specialized functions. The rooms division handles reservations, check-ins and check-out activities,
housekeeping tasks, bell desk and telecommunication services. The food and beverage department
takes care of restaurants & rooms food services, lounge service and so on.
The divisions in a hotel can be categorized as revenue centers or cost centers. Revenue centers
generate income for the hotel through the sale of services or products to guests. Cost centers, also
known as support centers, do not generate revenue directly; instead, they support the proper
functioning of revenue centers.