HOTEL & HOSPITALITY SERVICES

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Flow of Presentation

• Introduction
• Evolution of Hotel Industry
• Development of Hotel Facilities
• The Guest Cycle
• Meaning of Hospitality
• Marketing Mix of Hospitality
Industry

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Evolution of Hotels

• From time immemorial, we observe that many types of facilities were

provided to the pilgrims to stay in pilgrim places

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Evolution of Hotels

• Dharmashalas were the main places

to stay in pilgrim centers
• The facilities in these dharmashalas
were provided by local philanthropists
or by temple authorities free of cost
or on a minimum charge to pilgrims
• These facilities were provided by all
religions of the world

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Evolution of Hotels

• Churches, cathedrals and

Buddhist monasteries were
providing facilities to the
pilgrims

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Evolution of Hotels

• Inns and taverns

emerged on the scene
and were doing well up
to the downfall of Roman
empire
• Inns could not do well as
travel of traders were
infrequent

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Evolution of Hotels

• The crusades in Europe in 1095 AD laid the

foundation for social revolution
• This provided a firm base for the
development of trade and business
• The renaissance (revival of art and letters
under influence of classical models in 14th
and 16th century) which first started in Italy,
gradually spread to Europe
• In this period, inn- keeping became a
prosperous activity and was quite
remunerative for people

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Evolution of Hotels

• The first tavern came into being in 1634

in the USA
• The “Hotel” emerged from these
taverns
• In the beginning of 19th century, the
term “Hotel” was accepted to describe
“a place where people stayed for the
night and took their meals on a
payment basis”
• Then onwards, hotel assumed different
dimensions of service and emerged as
an industry
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Evolution of Hotels

• Factors contributing for the growth of

hotel industry are:
1. Development of transport
2. Adoption of information
technology in the business
world
3. Strong industrialization and
urbanization
4. Emerging corporate culture
and domination of corporate
sector in national and
international economies

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Evolution of Hotels

• All these factors contributed for the

increased activities in:
• The travel of officials on government
and private business
• The visits of business magnets on
trade promotion mission
• Visits of foreign peace missions to
different countries
• Visits of domestic and foreign tourists
for pleasure and other research
activities
• Visiting international events
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Evolution of Hotels

• A tendency has developed amongst the

people to stay and eat outside
• Hotels encourage such “eat out and stay”
habit of the people
• The hotels of current day provide refined
services to their guests (consumers are called
“Guests”)
• As guests demand quality service without
caring for payment, the hoteliers have to
apply management principles to operate on
professional lines and have to adopt sound
marketing principles
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Evolution of Hotels

• The innovations in hotel marketing have taken place due to growing significance of
managerial proficiency in the hotel industry
• Every hotel service activity, today, is planned organized on mechanical lines,
controlled and automated

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Evolution of Hotels

• Modern hotels, besides providing basic facilities like boarding and lodging, are
engaging themselves on innovative activities like playing the role of event managers
of social functions and other government and non- government business activities
• They provide venue and other facilities for conducting national and international
events of any size and magnitude
• Therefore, they have to manage their business with world class professional
excellence

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Hotel- The Concept

• “Primarily and fundamentally,

a hotel is an establishment
which supplies boarding and
lodging not engaged in inter-
state commerce or in any
intra- state commerce,
competitive with or affective
inter- state commerce- Stuart
McNamara for hotel operators
in the USA

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Hotel- The Concept

• “ It is a place for business to

gather. It is also considered to be
a place where tourists stop, cease
to be travelers and become
customers”- Charles K. Jr. and
others- Tourism Planning and
Development (1979)

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Hotel- The Concept

• Thus, a hotel is “a public place,

governed by statutes of the State,
which provides all possible
facilities such as food, living
accommodation, entertainment,
travel facilities, sports and various
comfort services on paid basis”

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Motel- The Concept

• Motel is a roadside hotel, having

rooms arranged around a parking
area, serving especially motorists
• The term “Motel” is coined by
taking “MOTOR” and “HOTEL”
• “MOT” of motor and “EL” of hotel
has become “MOTEL”

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Motel- The Concept

• Thus Motel is a term used to

explain the hotel services provided
to motor travelers who would like
to have short stay during travel, to
ease out monotony of travel and
make fresh journey
• Motels are located in road side
preferably by the side of highways
or road junctions

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Hotel Facilities

• Hotels provide many facilities to

its users
• The facilities may be of two types:
i. Core Facilities, and,
ii. Peripheral Services

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Core Facilities

 The core facilities are the ones

which are very necessary for a
comfortable stay of the guests
(users)
 This includes accommodation,
food, room, entertainment (TV,
Radio etc.) and other basic
amenities like parking of vehicles,
lounge for relaxation, first aid
services, health care services etc.

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Peripheral Services

 The peripheral services include

cultural shows, shopping facilities,
personal care services such as
beauty parlors, hair cutting salon,
gymnasium, jogging facility,
communication and transport
services such as telephone,
newspapers, magazines, air, train
and bus reservation facilities, car
rentals etc.

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Guest Cycle (GC)

 This is a sequence of phases that begins

with pre- sale events, continues through
point- of- sale activities and concludes with
post- sale
 This is a monitoring system of guests of the
hotel, through an operation flow- chart to
control the guest transactions with the
hotel

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Phases of Guest Cycle

 In each phase of GC,

activities have around two
main issues:
i. Guest Services, and,
ii. Guest Accounting

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Guest Services

 Guest Services includes:

a) Reservation
b) Registration
c) Occupancy Services
d) Check- out and history

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Guest Accounting

 Guest Accounting involves:

1. Establishment of credits
2. Posting charges
3. Night auditing, and,
4. Settlement of accounts

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Phases of Guest Cycle

 The three phases of Guest

Cycle are:
1. Pre- sale (Pre- arrival)
2. Point of sale(Arrival and
Occupancy)
3. Post sale
(Departure/Check-out)

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Pre- arrival (Pre- sale)

• At the pre- arrival stage, the hotel must create a

Reservation Record for every potential guest.
Doing this initiates the hotel guest cycle.
Moreover, reservation records help personalize
guest services and appropriately schedule needed
staff and facilities
• The reservation department should, then,
complete all the pre- registration activities and
prepare guest folios (applicable only for
automated systems). Doing so will eventually
maximize room sales by accurately monitoring
room availability and forecasting room revenues

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Arrival

• At the arrival stage,

registration and rooming
functions takes place and the
hotel establishes a business
relationship with the guest

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Occupancy

• At the occupancy stage, the front office department

shall co- ordinate guest services in a timely and accurate
manner

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Post sale (Departure)

• At the departure stage, the

guest shall be walked out of
the hotel
• Moreover, front office clerks
shall create guest history
record
• Finally, cashiers shall settle
guest account outstanding
balances

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Classification/ Grades of Hotels

• Hotel classification is very subjective and

standards can vary greatly from country to
country
• Some of the classifications done in different
countries are as follows:
 Europe Classification: In all the countries of
Europe, except in UK, hotels are classified from
one to five star by a government agency or the
local tourist authority
 This ensures a uniform standard for each star
classification and prices charged reflect the
number of stars awarded to each hotel
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Classification/ Grades of Hotels

• Australian Classification: Hotels and motels are graded in a star rating system by the
Australian Automobile Clubs
• They follow their own norms
• The star classification is similar to that of the UK

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Classification/ Grades of Hotels

• German Classification: In Germany, the

following categories are made to exhibit the
standards offered in hotels:
 Tourist Hotels (Accommodation for
simple needs)
 Standard Hotels (Accommodation for
moderate needs)
 Comfort Hotels(Accommodation for
greater needs)
 First Class Hotels (Accommodation for
high needs)
 Luxury Hotels (Accommodation for
highest needs) 33
Classification/ Grades of Hotels

• USA Classification:
 Superior Deluxe Hotels
 Deluxe Hotels
 Moderate Deluxe Hotels
 Superior First Class Hotels
 First Class Hotels
 Limited Service First Class Hotels
 Moderate First Class Hotels
 Superior Tourist Class Hotels
 Tourist Class
 Moderate Tourist Class
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Classification/ Grades of Hotels

• Indian Classification:
 The Hotel and Restaurant
Approval and Classification
Committee (HRACC) set up
by the Department of
Tourism classify the
functioning hotels under
the star system into six
categories from 1 to 5 Star
Deluxe
 A new category of Heritage
Hotels has also been
introduced since 1994 35
Classification/ Grades of Hotels

• Heritage Hotels:
 The concept of Heritage Hotels was
introduced with a view to converting 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

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Classification/ Grades of Hotels

• Heritage Hotels are sub- classified into the

following categories:
 Heritage: This category covers hotels in
residences/ havelies/ hunting lodges/
castles/ forts/ palaces built prior to 1950 but
after 1935
 Heritage Classic: This category covers hotels
in residences/ havelies/ hunting lodges/
castles/ forts/ palaces built prior to 1935 but
after 1920
 Heritage Grand: This category covers hotels
in residences/ havelies/ hunting lodges/
castles/ forts/ palaces built prior to 1920

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THANK YOU

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