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1.1 Introduction to HOTEL MANAGEMENT

A 'hotel' or 'inn' is defined by the British law as 'the place where a bonfire traveler can
receive food and shelter provided he is in a position to pay for it and is in a fit condition to
be received'. Hence a hotel must provide food and lodging to a traveler on payment.

Early travelers were warriors, traders or people in search of knowledge. This was before the
advent of hotels. Thus, warriors and conquerors pitched their tents for accommodation, while
traders and people travelling for knowledge placed a high value on hospitality and sometimes
traded their merchandise for lodging. Inn-keeping can be said to be the first commercial
enterprise, and hospitality one of the first services for which money was exchanged. Inns of
biblical times offered only a cot or a bench in a corner. Guests stayed in large communal rooms
with no sanitation and privacy. Travelers shared the same quarters with their horses and animals.
In the third century AD, the Roman Empire developed an extensive network of brick-paved
roads throughout Europe and Asia Minor, and a chain of roadside lodges was constructed along
the major thoroughfare from Spain to Turkey.

Till the industrial revolution of the 1700s, no significant improvement was made in the inns
and taverns, and they were not very suitable for aristocrats. To accommodate wealthy travelers,
luxurious structures were constructed with private rooms, individual sanitation and the comforts
of a European castle. These elegant new establishments adopted the French word for mansion -
'Hotel'. Not surprisingly, their rates, too, were beyond the reach of an ordinary person. In
America early inns were modeled after European taverns, with sleeping quarters shared by two
or more guests.

Hotels today are much more than just a place to sleep - many travelers view them as an
integral part of a getaway experience. With the recent boom of boutique hotels, spiffed-up
budget properties, and novelty accommodations, travelers can choose a hotel that is as much a
selling point as the destination itself.

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In this period travelers were mainly diplomats, philosophers, intellectuals and researchers.
Guests were invited to stay with the nobleman. In ancient Olympia, buildings constructed with
the aim of accommodating strangers are still visible. They were called 'Leonardo' and were built
in fourth century BC. The concept of hospitality can also be traced back to ancient times.
Mention of it is found in Iliad and The Odyssey by Homer. Hotel keeping can also be traced
back to many centuries and its evolution through the ages has been brought about by Britain's
economic and industrial changes and developments.

1.2 Meaning of Hotel

• The dictionary definition of hospitality is the friendly reception and treatment of
strangers. The hospitality industry consists of businesses and institutions involving
food and beverage, tourism and all kinds of lodging establishments. The friendly
reception and treatment of guests is the responsibility of the people who work in
the hospitality industry.
• An establishment providing accommodation, meals, and other services
for travelers and tourists.
1.3 Definition

• The hospitality industry is a multibillion-dollar industry that depends on the

availability of leisure time and disposable income. A hospitality unit such as a
restaurant, hotel, or an amusement park consists of multiple groups such as facility
maintenance and direct operations (servers, housekeepers, porters, kitchen
workers, bartenders, management, marketing, and human resources etc.).

1.4 Classifications of hotels

• Business Hotels

• Airport Hotels

• Suite Hotels

• Extended Stay Hotels

• Serviced Apartments

• Resort Hotels

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• 3
Business Hotels

• These hotels are the largest group of hotel types and they primarily cater to business
travelers and usually located in downtown or business districts. Although Business
hotels primarily serve business travelers, many tour groups, individual tourists and
small conference groups find these hotels attractive. Guest amenities at business
hotels may include complimentary newspapers, morning coffee; free local
telephone calls, Breakfast etc. 

Airport Hotels:
• These types of hotels typically target business clientele, airline passengers with
overnight travel layovers or cancelled flights and airline crews or staff. Some hotels
might give free transport between hotel and airport. Some Airport hotels also charge
the guest by hour instead of normal daily night charges.  

Suite Hotels:
• These kinds of hotels are the latest trend and the fastest growing segments in the
hotel industry. Such hotels have a living room and a separate bedroom.
Professionals such as accountants, lawyers, business men and executives find suite
hotels particularly attractive as they can work and also entertain in an area besides
the bedroom.

Extended Stay Hotels:

• Extended stay hotels is somewhat similar to the suite hotels, but usually offers
kitchen amenities in the room. These kinds of hotels are for long a stayer who want
to stay more than a week and does not want to spend on hotel facilities. 

Serviced Apartments:
• Serviced Apartment / Residential hotels provide long-term or permanent
accommodation for Guest. Usually guest makes a lease agreement with the hotel

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these types of hotels typically target business clientele, airline passengers with
overnight travel layovers or cancelled flights and airline crews or staff. Some hotels
• Might give free transport between hotel and airport. Some Airport hotels also
charge the guest by hour instead of normal daily night charges.  

Bed and Breakfast / Homestays

These are houses with rooms converted into overnight facilities; this can size up to 1 to 10 guest
rooms. They are also known as 'Home Stay's'. The owner of the B&B usually stays on the
premises and is responsible for serving breakfast to guest 

 On the basis of standards:

Like most of the countries in world, India also has hotels divided in different categories
depending on their location, facilities, infrastructure and amenities provided. All the star hotels in
India are government approved with continuous control on the quality of services offered.

 Five Star Hotels:

The most luxurious and conveniently located hotels in India are grouped under Five Star Deluxe
Hotel categories. Five star deluxe in India are globally competitive in the quality of service
provided, facilities offered and accommodation option. These are top of the line hotels located
mostly in big cities. These hotels provide all the modern facilities for accommodation and
recreation matching international standards in hospitality. In such type of hotel HR department
are established separately and to execute and to follow the concept of HR strictly, HR
professional are hired.

 Four Star Hotels:

A rung below five star hotels are Four Star Hotels, these hotels provide all the modern amenities
to the travelers with a limited budget. Quality of services is almost as high as the five stars and
above categories. These kinds of hotels are there for the travelers with limited budget or for the
places which might not get the tourist traffic associated with larger cities. In such type of hotel
concept of HR is more or less followed.

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 Three Star Hotels:

These are mainly economy class hotels located in the bigger and smaller cities and
catering to the needs of budget travelers. Lesser in amenities and facilities, these hotels
are value for money and gives good accommodation and related services on the reduced
price. Services would be stripped down version of higher categories of hotels but
sufficient to fulfill customer basic needs. In such type of hotel concept of HR may or may
not be present. If present all functions of HRD is curtailed.

 Two Star Hotels:

These hotels are most available in the small cities and in particular areas of larger cities. Catering
to the backpacker tourist traffic, these hotels provide all the basic facilities needed for general
accommodation and offers lowest prices. In this type of hotel concept of HR is absent.

 One Star Hotels:

The hotels with most basic facilities, small number of room’s locations in the far-flung areas are
grouped under One Star Hotel category. These hotels are best when customer is looking for
cheapest available accommodation option. In this type of hotel concept of HR is alien words.

 On the basis of Nature:

 Heritage Hotels:

Heritage hotels in India are best if one is looking for sheer elegance, luxury and loyal treatment.
They are not just another accommodation options but tourist attractions in themselves.
Exquisitely designed and decorated, meticulously preserved, high standards of service and ethnic
cultural motifs helps the tourists get the complete experience of an India.

 Beach Resorts Hotels:

Peninsular India bounded by Arabian Sea, Bay of Bengal, Indian Ocean and the two emerald
archipelagos of Lakshadweep and Andaman and Nicobar have a long coast line of around 7500

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km, offering an amazing array of beaches, some popular, some not so well known. Thus location
of resort is the basic point of attraction for tourists.

1.5 Features of Hotel

• With the help of hotel management system you can manage offline and online hotel sales.

• You can manage right from reservations to check-outs, with channel manager, booking
engine.

• As well as you can track guest at every stage of stay, starting from booking to check-out.

• Hotel software offers front office and property management capabilities, guest
relationship management have, fast learning and a user friendly platform.

• It can be used in Budget Hotels, Lodges, Guest Houses, Megamalls, Clubs, Restaurant &
point of sales etc.

• With the help of hotel management system you can manage offline and online hotel sales.

• You can manage right from reservations to check-outs, with channel manager, booking
engine.

• As well as you can track guest at every stage of stay, starting from booking to check-out.

• Hotel software offers front office and property management capabilities, guest
relationship management have, fast learning and a user friendly platform.

• It can be used in Budget Hotels, Lodges, Guest Houses, Megamalls, Clubs, Restaurant &
point of sales etc.

• Hoteliers can offer discounts to customers.

• Stats management is very beautiful.

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1.6 Functions and Practices in Hospitality Industry

Things those are important in managing people:

• Core HRM practices: recruitment & selection, T&D, performance appraisal

• Discipline
• Managers need to set a good example
• Communication with employees
• Employee benefits
• Salary confidentiality
• Harnessing experience from seniority

Activities thought to increase organizational effectiveness:

• Employee benefits
• Training and development
• Financial incentives
• Cross department collaboration
• Exemplary employee awards
• Employee Assistance Programs (EAP)
• Employee attitude survey

Practices thought to create and sustain competitive advantage:

• Training and development

• Employee benefits
• Physical facilities and environment
• Retention and reputation of excellent Staff
• Supporting the front office
• Membership of chains and alliances
• Involvement of HRM with top

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• Management

•
1.7 Hotel advantages:
• There are numerous advantages of the hotel property management system.
Some of the benefits that hoteliers reap from the management system are:
•
• The complexity involved with managing of data is reduced considerably.
All the logs and records can be easily stored in a digital form without any hassles and
otherwise necessary paperwork

 Characteristics of The Hospitality Industry

• Inseparability

• Intangibility

• Perishability

• Repetitive

• Labor-intensive

 Components of Hospitality Industry

• Lodging / Accommodation Operations

• Transportation / Travel Services

• Food and Beverage Operations

• Retail Stores

• Activities / Recreation

 Components of Hospitality Industry

a. Deluxe

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b. First Class

c. Standard

d. Economy

 . According to Location

a. Center City
b. Suburban
c. Resort
d. Airport
e. Highway

 . Hotel Divisions:

1. Food and Beverage Division

2. Sales and Marketing Division
3. Accounting Division
4. Engineering and Maintenance

1.8 Meaning of Management:

Management (or managing) is the administration of an organization, whether it is a business, a

not-for-profit organization, or government body. Management includes the activities of setting
the strategy of an organization and coordinating the efforts of its employees (or of volunteers) to
accomplish its objectives through the application of available resources, such
as financial, natural, technological, and human resources. The term "management" may also refer
to those people who manage an organization.

Definition of Management

According to Henri Fayola, "to manage is to forecast and to plan, to organize, to command, to
co-ordinate and to control."[1]

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Redmond Malik defines it as "the transformation of resources into utility."

Management included as one of the factors of production – along with machines, materials
and money.

Gillian Deplanes defines it as “a vulnerable force, under pressure to achieve results and

endowed with the triple power of constraint, imitation and imagination, operating on
subjective, interpersonal, institutional and environmental levels”.[2]

1.16 Features of Management:

 Management is goal oriented process

 Management is Pervasive:
 Management is Multidimensional
 Management is a continuous process
 Management is a group activity
 Management is a dynamic function:
 Intangible
 Composite process

1.17 PROCESS OF MANAGEMENT

• To overcome the problems of the manual system, online hotel management system is
proposed.
• The central objective of the online hotel management is to provide online facilities for
booking rooms.
• This software can manage and keep records of the hotel.

 Social impact
 Shorter work week
 Not so in US

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 Europeans get more holidays

 Professions work more
 Downsizing causes more work
 More leisure time
 Short, last minute trips
 Seasonality not a factor
 Greater disposable income

 The success of the service

Focus on the guest

 Understand the role of the guest-contact employee
 Weave a service culture into education and training systems
 Thrive on change

Guests are the best advertisement of the Management

• Hotels should never forget that the best way to advertise their service is through a
satisfied the guest.

• If a guest is dissatisfied, he will give negative feedback and bad reviews about the hotel
and its services.

• This will have far-reaching consequences, as many guest now use online sites to provide
feedback about hotels.

• Other potential guests read this and use it to base their decisions on whether to use the
stay at the hotel or not.

• On the other hand, if a guest leaves the hotel satisfaction, not only will he give positive
feedback, also he will return with his friends and family for the next time when he is in
town.

Handling the guest complaints

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Are you expert enough to solve your hotel guest complaint?

• There is a certain amount of expertise required when handling customer complaints in a
hotel.

• Most of the time, the complaint comes to the hotel receptionist, who should have the skill
and knowledge to handle if effectively.

• It is not necessary a complaint does always have to be voiced, it can also be unvoiced.
Hence, hotel staff should be able to address both types of complaints.it is important to
remember that the hotel exist because of the guest only and if guest no longer stay at the
hotel due to dissatisfaction then there will be no hotel. And the business go down….

• A part of the front office responsibility is to serve the guest well and this is evident in the
way they handle the problems.

• Ahead are some tips that will help you hoe to handle guest complaints at your hotel
effectively and ensure guest satisfaction.

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1.11 Meaning of Hotel Management:

• The hotel management is a broad category of fields within service industry that
includes lodging, event planning, theme parks, transportation, cruise line, and additional
fields within the tourism industry.

Definition

• The hospitality industry is a multibillion-dollar industry that depends on the availability

of leisure time and disposable income. A hospitality unit such as a restaurant, hotel, or an
amusement park consists of multiple groups such as facility maintenance and direct
operations (servers, housekeepers, porters, kitchen workers, bartenders, management,
marketing, and human resources etc.).

1.12 Futures of the Hospitality Industry

 Increasing competition;
 Emphasis on service;
 Customers’ growing value consciousness;
 Changes in marketing and management made possible by technology;

1.13 Industry Relationships

 Travel Agents
 Tourist Information Centers
 Retail Outlets

Benefits for the hotel management company:

 Little or no up-front financing or equity involved
 Manage the property for the contract period such as five, ten or twenty years

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1.18 Hotel management

 As the property has already been physically developed, the owner may want assistance
only with marketing, advertising, management, or reservation referral. In addition, guests
may find more variation among the referral properties as size and appearance standards
are less stringent than those in a franchise agreement. However, every hotel is assessed
and checked regularly to ensure that it maintains the highest standards.

The Functions and Departments of a Hotel specialised the departments become.

 The Functions and Departments of a Hotel

 General Manager
 Resident manager

 Functions of major hotel departments

 Room Division
 Front office Division
 Housekeeping Division

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1.14 Functions of major hotel Management:

The FOM performs the following duties:

- Monitoring reservation status

- Looking over market mix and preparing occupancy forecasts

- Determining rate structures and supervising implementation of rate policies

- Reviewing previous night’s occupancy and average room rate

- Reviewing arrivals and departures for the day and the next day

- Making staffing adjustments needed for arrivals and departures

- Reviewing the VIP list, checking VIP rooms, meeting VIPs and entertaining them

1.15 User Module

• Check room availability.

•
• Fill registration form
•
• Can login with his/ her own user id and password.
•
• Get all the amenities of the hotel.
•
• Get the information about nearby visiting places.
•
• Get information about reserved rooms (if room is already reserved).

 Administrator module
 Can login with unique user id and password.
 Check details of the room reserved for the current day.

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 Check details of the room reserved for the coming days.

 Try to get customer direct room bookings.
 Get the best rate for the direct customers.
 Respect guest whatever they be

• Regardless of the customer’s race, language, appearance or culture, he or she should

be treated with respect and made to feel valued and special. This should be
throughout all department of the hotel.

• When you respect your guest you will make an effort to meet their needs, leading
them to be satisfied.

1.19 Hospitality Industry in India

Hospitality segment, just like many other segments in India is booming at an unprecedented
pace. India faces a huge challenge of being "under roomed" while the economy is growing
rapidly. This provides for a huge opportunity for hospitality industry. A lot of large real estate
developers are also investing into this business to bridge the demand-supply gap and leverage the
opportunity.

Bangalore, Hyderabad, Chennai, Gurgaon, Pune and the suburbs of Mumbai are the
areas attracting international investment and as expected, are the cities with the largest
development pipelines. Combined, these cities account for 89 of the 161 projects in the pipeline
and 16,734 guestrooms, which is 68% of the rooms in India's total pipeline.

Of the 161 projects in India's pipeline, 100 will have 4 and 5 star designations. The
other 61 are 1, 2 and 3 star developments. A number of them are new economy brands recently
designed for the Indian market place. Tag’s Ginger Hotels is one such brand, Lemon Tree and
Red Fox are others in this category.

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Almost all the major hotel operators such as Star woods, Hilton, and Intercontinental
have significant growth plans for India and have multiple projects in works or in pipeline.

Over the last decade and half the mad rush to India for business opportunities has
intensified and elevated room rates and occupancy levels in India. Even budget hotels are
charging USD 250 per day. The successful growth story of 'Hotel Industry in India' seconds only
to China in Asia Pacific.

'Hotels in India' have supply of 110,000 rooms. According to the tourism ministry, 4.4
million tourists visited India last year and at current trend, demand will soar to 10 million in
2010 - to accommodate 350 million domestic travelers. 'Hotels in India' has a shortage of
150,000 rooms fueling hotel room rates across India. With tremendous pull of opportunity, India
is a destination for hotel chains looking for growth. The World Travel and Tourism Council,
India, data says, India ranks 18th in business travel and will be among the top 5 in this decade.
Sources estimate, demand is going to exceed supply by at least 100% over the next 2 years. Five-
star hotels in metro cities allot same room, more than once a day to different guests, receiving
almost 24-hour rates from both guests against 6-8 hours usage. With demand-supply disparity,
'Hotel India' room rates are most likely to rise 25% annually and occupancy to rise by 80%, over
the next two years. 'Hotel Industry in India' is eroding its competitiveness as a cost effective
destination. 'India Hotel Industry' is adding about 60,000 quality rooms, currently in different
stages of planning and development and should be ready by 2012. MNC Hotel Industry giants
are flocking India and forging Joint Ventures to earn their share of pie in the race. Government
has approved 300 hotel projects, nearly half of which are in the luxury range. Sources said, the
manpower requirements of the hotel industry will increase from 7 million in 2002 to 15 million
by 2010.

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1.20 Problems & Challenges in the Hotel Management Industry

1. High competition:

Hotel industry is a ever blooming business. Travel and tourism keeps on growing every
year. Traveler’s always look for the perfect accommodation. Due to very high demand in
accommodation, the competition is also high in this business. In the crowded travel spots,
you can see hotels at each and every locality. High competition is a major challenge in
this sector. To reap the high profits, new or existing competitors could significantly
reduce rates or provide greater conveniences, services or amenities, or significantly
expand, improve or introduce new facilities in the markets. 

2. Improper marketing effort:

As the technology is improving day by day, there are lots of options available for the
hotels in capturing their market space online. But according to a recent survey in the year
2016, almost 70% of the hotels across the world still follow the old marketing practices.
Due to poor marketing efforts, sales and brand recognition gets affected to high extent.
The current trend denotes that hotels are slowly moving towards OTA marketing
and hotel management software to ease the workload and increase ROI.

3. Energy management difficulties:

Investing in renewable & eco-friendly resources can help in improving your hotel's
overall profit margin. Tourists prefer to accommodate themselves at an environmental-
friendly hotel room rather than a ordinary hotel room. With rising electricity prices and
increasing pressure to cut carbon emissions, saving energy is the no.1 on a hotelier’s
priority list. There are two solutions for effective energy management. One is voltage
optimization, which works to reduce the incoming power to premises for reducing the
energy consumption and protect electrical equipment. The other is energy management
systems, which switch on and off appliances depending on the occupancy of a room.

4. Poor customer satisfaction:

With the lack of food resources and staffs, most of the hotels provide low-quality foods to
their customers. Once you get a bad recognition in your area / locality / city, it is very
difficult to regain the good position. From a hotelier's point of view, customer satisfaction
is nothing but providing the good quality foods, amenities, customer support, etc..

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5. Lack of productive chefs and managers:

Finding the right cooks, labors and managers may be a difficult task, especially if you are
small hotel owner. Usually, five star hotels (luxurious accommodation providers) recruit
professional cooks at high cost. Hence it is a hectic job for the low-budget hotels to find
the right persons.

6. High service rates:

Whether you provide a high-quality or low-quality service, make sure it is affordable to

the end users. High service rates can divert the visitors to your competitors. Provide
lodging rooms at reasonable rates. Service rate should match with the facilities of your
hotel. Avoid taking commissions, high tax charges, etc...

7. Cleanliness issues:

Make sure the lodging rooms have clean, odor-free, eco-friendly and spacious conditions.
This would help to drive more visitors to your hotel. As hospitality businesses usually
operate around the clock and slow periods in which staff can conduct some minor
cleaning are never guaranteed; many companies choose to hire a professional cleaning
service. This is the best way to ensure that all the requirements are met and it doesn’t
mean you have to take valuable time out of your day to enforce the fact that everything is
completed.

8. No proper transportation facility:

Hotels should be ready to provide transportation facility 24x7 from all the major pick-up
points of a city or town. Even a small cab / van from the major spots (airports, tourist
destinations, etc.) can make a huge improvement in your hotel business management.
Transport facility is a must for hotels situated in the remote locations. 

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9. Security challenges:

1. General theft and other crime

2. Public violence

3. Terrorism

4. Armed robbery

5. Credit card fraud

6. Cybercrime issues

7. Identity theft

8. Sexual abuse on women

9. Racial discrimination

10. Risk of food poisoning

10 .Lack of refreshing events and entertainment:

Most of the tourists who stay in a hotel room expect refreshing events & entertainment programs
for getting relaxation from the stressful conditions. Conduct events & entertainment shows on a
regular basis to attract more audience to your business. Go a mile extra to improve the re-visit
rate of your hotel.

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CHAPTER-2
RESEARCH DESIGN

2.1 Meaning

Research design is blue print for collection measurement and analysis of data. It

Involves decision regarding what, where, when, how much, what means, concerning

An enquiry or a research study.

It always begins with a question or problem. Its purpose is to find answers to

Quotations through the application of systematic and scientific methods. Thus,

Research is the systematic approach towards purposeful investigations, this needs

Formulating a hypothesis, collections either in the form of a solution or certain

Generalization,

2.2 Definition

According to Cook Jihad ‘’ A research design is the arrangement of conditions for

Collection and analysis of data in the manner that aims to combined relevance to

Research process with economy is procedure”

2.3 “A STUDY ON ISSUES AND CHALLENGES OF HOTEL MANAGEMENT AT MORGAN SUITES ”

2.4 Statement of the problem

The problem selected to the analysis is A STUDY ON ISSUES AND CHALLENGES OF HOTEL
MANAGEMENT AT MORGAN SUITES” Bangalore the effectiveness of the prevailed issues and challenges system

analyzing

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