SERVICES MARKETINGModule 5

SERVICE INDUSTRIES IN INDIA

Faculty : Kerena Anand

*** AFTER completing the module, the examination questions from the previous question papers with the marks will be added to this module’s notes.

I] TOURISM SECTOR

There are many places that interest good tourist traffic in India. There are hill stations in Himachal and Ooty. Beaches in Goa and Kerala. Kerala is also known for the ayurvedic treatments. There are religious places and also places of historical importance. Unfortunately the country has not exploited this opportunity as this 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 to destination outside the places where they normally live and work and their activities during the stay at each destination. It includes movements for all purposes”

Tourism is a very complex industry. It embraces five components: Transportation, accommodation, food and catering, travel agents and the place of attraction itself. Tourism is not a homogeneous product as different people have different requirements of different standards and professionalism.

2. What are the peculiarities of a tourism product?

The peculiarities of a tourism product are:

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 6th

century BC in Babylonian and Egyptian empires. It became prominent during the Roman empires as they conducted many sporting events, festivals mainly for pleasure and curiosity.

During the dark ages that is the fall of Roman empire, tourism was absent as people found it dangerous and difficult to travel.

Tourism again reappeared in Europe as the companies also declared annual holiday for their employees. The infrastructure, urban areas , development of road and rail was given prime importance during this period.

The first company to provide tourism services was Thomas Cook which started in the year 1841.

During those days tourism was restricted to the 3 S: Sun, Sea and Sand.

Today tourism is one of the emerging industries

The World Tourism Organisation forecasted that there is an increase of 4% in international tourism every year. By 2020 Europe 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

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?

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 components to create a holiday. They prepare itinerary. The most common example of a tour operator's product would be

a flight on a charter airline plus a transfer from the airport to a hotel and the services of a local representative, all for one price.

The role of tour operators

The role of tour operator is to design an INCLUSIVE TOUR.

INCLUSIVE TOUR

The term inclusive tour (IT) is used to describe a commercial arrangement where a company commonly referred to as a tour operator organises package holidays that include accommodation in addition to transportation. These arrangements are usually built around charter flights carrying a group of individuals who share seats on the same plane to travel together to their intended holiday destination as well as back to their point of origin. They also include accommodation and - in some cases - other holiday arrangements such as the provision of meals as well. Everything is 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 your vacation through the contracting, booking and packaging together of the various components of your tour such as your hotel, transportation, meals, guides, optional tours and sometimes flight.  Many tour operators are considered land only operators and focus on the aspects of your package once you have arrived in your destination. 

Travel Agents hold the role of selling and administering packages from various tour operators to their personal clients based on what they’re looking for and what package suits each client best.  While many tour operators focus on a select concentration of destinations most travel agents can specialize in a range of destinations and then they can help you narrow down a package for that specific destination or area you are looking to travel to based on your budget, preferred method of travel and interests.  Travel agents will then work directly with the tour operator to perfect your requests and provide the tour operator with the information and payments they need.

Therefore a tour operator is a an organiser of tours and also a supplier ( they might own a air craft, hotels, car rentals or all of the three or even tie-ups with them ).

A travel agent is only a distributor or seller of tours. They do not own any travel assests.

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.

II] HOSPITALITY (HOTEL) SECTOR

1. 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 from hôte meaning host), which referred to a French version of a townhouse or any other building seeing frequent visitors, rather than a place offering accommodation.

LARGESTIn 2006, Guinness World Records listed the First World Hotel in Genting Highlands, Malaysia, as the world's largest hotel with a total of 6,118 rooms. The Izmailovo Hotel in Moscow has the most rooms, with 7,500, followed by the Venetian Palazzo Complex in Las Vegas (7,117 rooms) and MGM Grand Las Vegas (6,852 rooms).

[edit] OldestAccording to the Guinness Book of World Records, the oldest hotel in operation is the Hoshi Ryokan, in the Awazu Onsen area of Komatsu, Japan, which opened in the year 718.

[edit] TallestThe Ritz-Carlton Hong Kong is claimed to be the world's highest hotel. It is located in the top floors of Hong Kong's tallest building, 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 of 18%annually. The current gap is expected to widen further as the economy opens and growsA rapidly growing middle class , the advent of corporate incentive travel and the multinational companies into India has boosted prospects for tourism.India’s easy visa rules, public freedoms and its many attractions as an ancient civilization make tourism development easier than in many other countries.Many foreign companies have already tied up with prominent Indian companies for setting up new hotels, motels and holiday resorts.Several International chains are expanding their hotel network in India

3. What is the difference between a hotel and an inn?

Hotel is a building where people can pay for lodge, have meal and other services. Hotels have rooms with beds and some useful furniture like chair, TV, telephone, small table, and some modern facilities like air conditions, computer and climate controller. Some rooms are attached with bathroom where visitors can bathe and 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 a different section for food in hotels, which provides many different types of cuisines like Italian, Chinese, Lebanese, Thai, Continental and more.The cost and expenses of hotel usually depends on the type of services. It is rated depending upon the range of service and the luxury of the hotel. Rating system is indicated by stars, hotel is affiliated by stars on these rating parameters. Hotel can be affiliated 3 stars, 5 stars or 7 stars. But AAA (American

Automobile Association) uses diamonds instead of stars to affiliate hotels.

An inn is generally a building located along a highway or countryside where people can seek lodging and food. Inns were the first commercial buildings for lodging and boarding. Inns were established at time of Romans, to help travellers in lodging, food and drinks including alcohol. Not only do they used to provide service for the travellers, but horses were provided with stable and fodder. Until now, aside from providing lodging, it also provides good services to customers like drinks and food. Inns do not have separate restaurants instead it has small section for food and drink. It does not provide a large food variety unlike in hotels.

4. How are hotels classified based on their standard?

One Star Hotels Hotels in this classification are likely to be small and independently owned, with a family atmosphere. Services may be provided by the owner and family on an informal basis. There may be a limited range of facilities and meals may be fairly simple. Lunch, for example, may not be served. Some bedrooms may not have en suite bath/shower rooms. Maintenance, cleanliness and comfort should, however, always be of an acceptable standard.

Two Star Hotels In this classification hotels will typically be small to medium sized and offer more extensive facilities than at the one star level. Some business hotels come into the two star classification and guests can expect comfortable, well equipped, overnight accommodation, usually with an en-suite bath/shower room. Reception and other staff will aim for a more professional presentation than at the one star level, and offer a wider range of straightforward services, including food and drink.

Three Star Hotels At this level, hotels are usually of a size to support higher staffing levels, and a significantly greater quality and range of facilities than at the lower star classifications. Reception and the other public rooms will be more spacious and the restaurant will normally also cater for non-residents. All bedrooms will have fully en suite bath and shower rooms and offer a good standard of comfort and equipment, such as a hair dryer, direct dial telephone, toiletries in the bathroom. Some room service can be expected, and some provision for business travellers.

Four Star Hotels Expectations at this level include a degree of luxury as well as quality in the furnishings, decor and equipment, in every area of the hotel. Bedrooms will also usually offer more space than at the lower star levels, and well designed, coordinated furnishings and decor. The en-suite bathrooms will have both bath and fixed shower. There will be a high enough ratio of staff to guests to provide services like 24-hour room service, laundry and dry-cleaning. The restaurant will demonstrate a serious approach to its cuisine.

Five Star Hotels Here you should find spacious and luxurious accommodation throughout the hotel, matching the best international standards. Interior design should impress with its quality and attention to detail, comfort and elegance. Furnishings should be immaculate. Services should be formal, well supervised and flawless in attention to guests' needs, without being intrusive. The restaurant will demonstrate a high level of technical skill, producing dishes to the highest international standards. Staff will be knowledgeable, helpful, well versed in all aspects of customer care, 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, auto camps, tourist home, tourist cabins, auto cabins, cabin camps, cabin court, or auto court), is a hotel designed for motorists, and usually has a parking area for motor vehicles. It refers to a type of hotel consisting of a single building of connected rooms whose doors faced a parking lot and, in some circumstances, a common area; or a series of small cabins with common parking. Motels are often privately owned, though motel chains do exist.

Motels differ from hotels in their location along highways, as opposed to the urban cores favoured by hotels, and their orientation to the outside (in contrast to hotels, whose doors typically face an interior hallway). Motels almost by definition include a parking lot, while older hotels were not usually built with automobile parking in mind.Motels are typically constructed in an 'I'- or 'L'- or 'U'-shaped layout that includes guest rooms, an attached manager's office, a small reception and, in most motels, a swimming pool, and in some cases, a small diner. A motel could range from a small single story to two or three floors, although the hotel form of construction with inside corridors would be more suited to taller buildings due to the number of stairwells required to service multiple levels of balcony rooms. The doors to each motel room typically face the parking lot, making it easy to unload suitcases from 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 stay away from home for a long period of time. Also, some guests live in extended stay hotels in lieu of a home for a variety of reasons. Extended stay hotels offer many of the comforts of home while the customer is not in their own home. Below are some useful facts and information titbits about these unique places.

Great amenitiesExtended stay hotels usually offer more upscale amenities and comforts than regular hotels. Wireless internet access and on-site laundry are usually offered at these establishments. Some hotels also 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 the rooms in these hotels mimic the comforts of a traditional home, such as an increased kitchen size that may include a dishwasher, stove or oven. This may also include more counter space in kitchens, bigger closets and roomier bedrooms.

Discounted ratesMany extended stay hotels often offer discounted rates or weekly rates that are lower than nightly fees as a benefit of staying long-term. Shop around and explore the different hotels that offer extended stay rooms to ensure that you get the best deal.

Deals on mealsContinental breakfasts or restaurants within the hotel are often perks associated with long-term stays at hotels. Some packages may include free morning breakfasts or discount

cards and coupons to use at the hotel eateries or other nearby restaurants in town, so make sure to ask hotel personnel about any offers available.

Extended stay hotels are a wonderful way to feel at home when not at home. With decent discounts and better amenities, these hotels may have you wishing to stay there instead of return back to your house.

6. How are hotels classified on the basis of nature?

a. Heritage hotels:

Jodhpur heritage hotel Chomu Palace Hotel Jaipur

Palace Hotel Rajasthan

The Maharajas in India have left a royal legacy with their palaces and residences still holding on to the glory. Vacation in one of the heritage hotels in India would be like steering your vacation ship to the port of royalty and comfort. You get to live king size while being awake to the hospitality and facilities that you are enjoying. The erstwhile residences of the royal families in various states of India serve as luxury and boutique hotels presently.Guests at such palace turned hotels enjoy great ambience, royal food, huge rooms, old furniture, yet modern facilities. The rooms have been renovated to satisfy a modern guest who is looking to make his vacation and business trip worthwhile. The concept of heritage hotels took off mainly from the Rajputana state of Rajasthan, land of the Marwar rulers too. There were several havelis and palaces owned by the Maharajas that stood abandoned and were simply tourist attractions. Today, it remains to be an attraction, but tourists are offered the chance of reliving history.

b. Resort hotels:

A resort is a place used for relaxation or recreation, attracting visitors for holidays or vacations. Resorts are places, towns or sometimes commercial establishment operated by a single company.

c. Floatels:

A floating hotel, esp. a boat used as a hotel

d. Airport hotels:

Airport hotels have grown popular due to their convenience for transient passengers and easy accessibility to the airport terminal. Many airport hotels also have agreements with airlines to provide overnight lodging for displaced passengers.