Introduction to Hospitality Industry PDF

INTRODUCTION TO HOSPITALITY INDUSTRY The hospitality industry is among the oldest commercial activities in the world. It is infact, an integral part of the largest business enterprise known as travel and tourism, which provides a wide range of travel related services, such as modes of travel, accom...

INTRODUCTION TO HOSPITALITY INDUSTRY The hospitality industry is among the oldest commercial activities in the world. It is infact, an integral part of the largest business enterprise known as travel and tourism, which provides a wide range of travel related services, such as modes of travel, accommodation, food and drinks, recreational activities, and other facilities required by a modern age traveller. The introduction to the Hospitality industry is aimed at providing an insight into the evolution and growth of the hotel industry in India and other parts of the world. Definition of Hotel:- The British law defines hotel or Inn as a “place where a bonafied traveller can receive food and shelter, provided he is in a position to pay for and is in a fit condition to be received” Origin and Growth:- The origin and development of the hospitality industry is a direct outcome of Travel and Tourism. There are many reasons for which a person can travel: Business, Pleasure, Further Studies, medical treatment, pilgrimage and any other reason. When a person travels for a few or more days, he may carry his clothes with him, but it is not possible for him to carry his food and shelter- Thus two of his three basic needs-foods and shelter- are not taken care of when he is travelling. This is where the hospitality industry steps in. Before the wheel was invented, people undertook journeys on animals such as horses, camels and elephants. In those days, they use to travel in groups called Caravans. At nightfall they avoided travel due to the fear of wild animals and bandits, and because animal fatigue (animals tiredness). Thus, for the night halt they looked for a place that could provide them with water fuel to cook food and above all security from the animals and bandits (Robbers).The primitive lodging or Inns originated essentially to cater to these needs of the travelers. Throughout the world the lodging houses or inns were known by different names, such as Dharmashala or Sarai in India,ryokans in Japan, Paradors in Spain, Coffee Houses in America, Taverns and Inns in Europe, Cabarets and hostelries in France and Rely Houses in China.The earliest Inns were generally run by families of Husband and Wife teams who provided large halls to travelers to make their own beds and sleep on the floor with some modest food and drinks like wine, port ale etc and staple facilities for animals at a certain price. These lodging facilities were housed in their private homes. These inns were not as tidy as we seen them today.Gradually the Inns started providing Beds to many travelers-Typically , an Inn would have a large hall with many beds. TOURISM INDUSTRY The word ‘TOUR’ is derived from the Latin Word Tornus meaning a tool for making a circle. Tourism may be defined as a movement of people from the normal place of residence to another place (with an intention to return) for a minimum period of 24 hours to a maximum of 6 months. The UNWTO defines TOURISTS as ‘people who travel to and stay in places outside their normal environment for not more than one consecutive year for leisure, business and other purposes not related to the exercise of an activity remunerated from within the place visited’ Tourism is one of the fastest growing and a major source of foreign exchange and employment generation for many countries. It is regarded as one of the most economic and social phenomena of the past century. According to the data available with the united Nations World Tourism Organization (UNWTO) world grew from OVAL Forum for promoting tourism the number of international; arrivals in 25 million in 1950 to a whopping 806 million in 2005 making an average growth of 6.5 percent Tourism can be categorized as international and Domestic Tourism International Tourism: - When people visit a foreign country, it is referred as international tourism. In order to travel to a foreign country, one needs a valid passport, visa, health documents, foreign exchange etc. International tourists can be inbound or outbound Inbound: - This refers to tourists of outside origin entering a particular country Outbound: - This refers to tourists travelling from the country of their origin another country. Domestic Tourism: - The Tourism activity of people within their own country is known as domestic tourism. Travelling within the same country is easier because it does not require formal travel documents and tedious formalities like compulsory health checks and foreign exchange. In domestic Tourism, a traveller generally does not face much language problem or currency exchange issues IMORTANCE OF TOURISM Tourism and hospitality, which are inextricably linked to each other, are among the major revenue earning enterprise in the world. They happen to be among the top employers too. There are been an upmarket trend in tourism over the last few decades as travel has become quite common. People travel for business, vacations, pleasure ,adventure or even medical treatment. The present day tourist who had higher level of disposable income, international exposure and refined tastes wants specialized versions of products and services such as quieter resorts, family oriented holidays or commercial hotels has led to demand for better quality products and services mainly regarding accommodation and travelling thus feeding the growth of hospitality industry as a whole. With several business related activities associated with tourism the industry has a tremendous potential of generating employment as well as earning foreign exchange. Tourism can contribute to the economic growth of a country in the following ways Employment Generation:-It creates a large number of job among direct service providers (such as hotels, restaurants, travel agencies, tour operators,) and among indirect service providers (such as suppliers to hotels and restaurants) Infrastructure development:- Tourism spurs infrastructure development. In order to become an important commercial or pleasure destination, any location would require all the necessary infrastructure, like good connectivity via rail road and Air transport, adequate accommodation, restaurants and well developed telecommunication network. Foreign Exchange:- The people who travel to other countries spend a large amount of money on accommodation, transporation, sightseeing, shopping etc. INDUSTRIES RELATED TO TOURISM Hotels:- Hotels are commercial establishments that provide accommodations, meals and other guest services. In general to be called, an establishment must have a minimum six guest rooms, at least 3 of which must have attached private bathroom facilities. In the travel and tourism industry, the hotel industry plays a very vital role, as all tourist need a place to stay at their destinations , and require many more services and facilities to suit their specific needs and taste. Restaurants:- Restaurants are retail establishments that serve prepared food and beverages to customers. Though the term is generally applicable for eating on premises, it can also be used to include take away establishments and food delivery services. In the travel and tourism industry , restaurants and other food and beverage outlets are very important as tourist like to experiment with local cuisines of the places they are visiting. Retail and Shopping:- The retail industry is very important as tourist shop for their day to day necessities as well as look for memories and souvenirs. In the recent years, several cities in the world have been promoted as shopping destinations to attract people with a penchant for shopping by offering various products such as garments, electronic goods, jewellery and antiques, among others, at very low prices. The recent years have seen the organizations of events like shopping festivals to attract tourists with deep pockets. Transportations:- It is the movement of people and goods from one place to another. A well-developed transport industry as well as infrastructure, is integral to the success of any travel and tourism enterprise. Good transport facilities and connectivity are basic for putting any place on the travel map, whether domestic or international, At times, poor connectivity and transport has kept places, such as the north-eastern states of India, from exploiting their full tourism potential. In a bid to encourage travel to the northeast several travel concessions are announced by the states as well as union government from time to time. Travel Agencies :- A travel agency is a retailing business that sells travel related products and services, particularly package tours, to customers on behalf of suppliers such as airlines, car rentals, cruise liners, hotels, railways, and sightseeing and tour operators. In addition to dealing with ordinary tourists, most travel agencies have a separate department devoted to making travel arrangements for business travellers. Travel agencies play a vital role as they plan out the itinerary if their clients and make the necessary arrangements for their travel, stay, and sightseeing besides facilitating their passport etc. EVOLUTION AND GROWTH OF THE HOTEL INDUSTRY IN THE WORLD:- The invention of currency and wheel sometimes in the fifth century BC is regarded as the two main factors that led to the emergence of inn keeping and hospitality as a commercial activity. While Europe can be safely regarded as the cradle of organized hotel business, it is in the American Continent that one sees the evolution of the modern hotel industry over the past century. The origin and growth of the hotel industry in the world can be broadly studied under the Following period -Ancient Era -Grand Tour -Modern Era Ancient Era:- The earliest recorded evidence of Hospitality facilities in Europe dates back to 500 BC. Ancient cities such as Corinth in Greece had a substantial number of Establishments that offered food and drinks as well as beds to travelers. In the Thirteenth Century AD numerous lodging premises mushroomed along the extensive network of brick paved roads throughout Europe and minor Asia (parts of Asia Adjoining Europe).These conditions prevailed for several hundred years, until the industrial revolution in England led to the development of railways and steamships, making travel more efficient, comfortable and faster. The industrial revolution also brought about a shift in the focus of travel that became more business oriented than educational and social The lead in organized hotel keeping as we saw it today was taken by the emerging nations of Europe specially Switzerland. Between 1750-1825 , inns in Britain gained the reputation of being the finest hospitality establishments. Grand Tour:- The second half of the eighteenth century prior to the French Revolution (1789-99) is referred as the “Golden era of travel” as the popularity of Grand tour gave big push to the hotel industry. In those days, a grand tour of the European continent constituted an Indispensable element of the education of the scions of wealthy families in Britain. As the tour often lasted several years, farsighted entrepreneurs, who smelt money in the exercise, developed the skills of hospitality and pioneered the modern hotel industry. Prominent among the hotels that emerged during this period were Dolder Grand in Zurich, The imperial in Vienna. In 1841 a simple cabinetmaker, Thomas Cook organized a Rail tour from Leicester to Loughborough and immortalized himself as the world’s first Tour operator. Modern Era:- The improvisation in modes of transport made journeys safer, easier, and faster, enabling economical as well as frequent mass movement. The introduction of Funiculars (The ropeway) made high altitude mountains accessible, leading to the growth of many hotels in the Alpine ranges. Burgenstock and Giessbach are among the hotels in Switzerland that owe their existence to the development of the ropeways. However, the American entrepreneurs are credited with literally changing the face of the hospitality industry with their innovations and aggressive marketing. The inauguration of the City hotel in New York in 1794 marked the beginning of present day hotel industry. It was a giant building at that time, with 73 rooms and went to become a favourite meeting ground of socialites. The opening of the Tremont House in Boston is another landmark in the evolution of the hotel industry. It was the first to provide locks, indoor plumbing, running water, and bathing facilities besides providing a bowl, pitcher and free soaps in its rooms. It was also the first to provide front office services like bellboys and a reception. It was also the first to provide French Cuisine in the US. In the year 1908 saw the emergence of the first business hotel, the Statler hotel in Buffalo, New York. The magnificent 450- multi story building was a pioneer in many ways. The increase in automobile travel in the 1950s led to the rise of ‘motor hotels’ or motels, a new category in the hotel industry. It offered free parking facilities, served as rest houses for people travelling between two cities or Tourist destinations. The following decades saw the growth of motels on a large scale and also introduction of budget hotels that offered basic facilities at half the rates. Evolution And Growth Of Hotel Industry In India Although the origin of the hotel industry in India cannot be traced to a definite point of time, there are evidence of its presence even during the Indus Valley Civilization and the Vedic Era. In olden days Travel was predominantly undertaken for pilgrimage and trade. The concept of Chardham (i.e visiting religious places located in the four corners of India) among the Hindu Community is an important indicator of the significance accorded to pilgrimage by our ancestors. Some such popular destinations are Sikh Golden Temple in Amritsar, Ajmer Sharif Shrine in Rajasthan, and Haji Ali tomb in Mumbai etc. Ancient Texts and literature as Hindu mythology have many references to travel and the provision of accommodation facilities for travelling pilgrims and traders by the authorities of those days.  Ancient India was known for its Silk, Spices, Gemstones. Records of Famous travellers of the Yore speak of Indians trading with countries like Greece, Italy, Indonesia, Malaysia, China and Japan etc. The main mode of transport was animals on land, and boats and ships that criss- crossed rivers and seas for connectivity with distant lands. That is why we find major trading cities in the world situated along the banks of the rivers or the seaports. The origin and evolution of the hotel industry in the country can be broadly categorized in the following three periods:- - Ancient and Medieval Era (from Indus valley civilization to AD 1600) - Colonial Era (AD 1601 to AD 1947) -Modern Era (1947 onwards) Ancient and Medieval Era (from Indus valley civilization to AD 1600) The beginning of the hospitality sector in India stand rooted in the Hindu philosophy of “atithi devo bhava”, implying that an unannounced guest is to be accorded the status of god. While it is not clear when hospitality emerged as a commercial activity in ancient India, there is evidence of accommodation facilities for travellers and guest, though not as organized as we see them today. The lodging houses during those times were known as dharmshalas (dharma in Sanskrit means religion and shalas means school) Dharmshalas , the resting place for pilgrims are believed to have their origins in village Chaupals which served as a meeting ground for villagers to plan and discuss various social welfare and development measures. These became the places of lodging as travellers started putting up camps there due to their safety reasons. Gradually, with the help of local residents and financial assistance from the rulers, zamindars, or other influential people, permanent structures (dharmashalas) were built. Here they were provided with a safe place to relax and spend the night. Similarly, in the Ramayana and Mahabharata, there is a mention of the existence of avasthaghar (the outer portion of the house) to accommodate people who were invited during the festivals, yagnas or other festivals organized by kings. Records of many foreign visitors and philosophers who came to Indi speak highly of the hospitality facilities. Famous Chinese scholars Fa Hien and Huein Tsang who came during the reigns of Chandragupta Vikramiditya and Harshvardhana respectively, have mentioned the existence of shelters for travelers. In the medieval era, many sarais and Musafirkhannas were built, primarily a resting place for messengers of the postal system established by the sultans of the slave or Mamluk dynasty. The system was refined by Allauddin khiljee, who established Dak Chowkis with horse runners and messengers to deliver post. Colonial Era (AD 1601 to AD 1947) :- The Organized existence of the hotel industry in India started taking shape during the colonial period, with the advent of Europeans in the Seventeenth Century. The Early hotels were mostly operated by people of Foreign Origin to cater to the needs of European Colonizers and later officials of the Raj. Among the first such properties were Taverns like Portuguese Georges, Paddy goose’s, and Racquent within a period of about ten Years most of the Taverns disappeared and more respectable hotels like Hope Hall Family Hotel began to make an appearance.Watson’s was a hotel which was exclusively for Europeans, Aukland Hotel (1841) in Kolkata, which went on to become the Great Eastern Hotel in post- independent India and so on In December 1903, Jamshedji Nusserwanji Tata, inaugurated the Taj Mahal Palace and Tower Hotel, overlooking the Gateway of India in Mumbai, Following the racial discrimination incident wherein he was refused entry into the Watson’s Hotel for Being an Indian. The Hotel which is an Architectural marvel is credited with being the first luxury hotel for Indians by an Indian. In 1923 Mr. Sahpurji Sorabji built the Grand hotel in Mumbai few years later the Majestic Hotel was opened. In 1900, almost all hotels were constructed and run as per Western Traditions. The first Indian style hotels were Sardar Griha which opened in 1900 and Madhavashram in 1908. Modern Era (1947 Onwards) Post Indepencdence, there were big leaps in the hotel trade in our country. The Oberoi Group Of hotels (founded by Rai Bahadur Mohan Singh Oberoi) and the Taj Group took over several British Properties maintained high standards of service and quality, and expanded their business Overseas. The later Decade Corporates like ITC (Indian Tobacco Company) also joined the hotel industry with properties under ITC Welcome Group. The Year 1949, saw the Organization of Four regional hotels and restaurants associations with head Offices in Delhi, Mumbai Calcutta (now Kolkata) and Madras (now Chennai) this Four Associations were linked in a Federation, The Federation of Hotels and Restaurants In India(FHRAI) in1955, the Federation serves as an interface between the hospitality industry, political leadership, government, international associations and other stake holders in the trade. The Ashok Hotel in Delhi’s Diplomatic Enclave has the Distinction of being the first Luxury Hotel built by the government, It was founded in 1956 to host the India’s first ever international event a United Nations Industrial Development Organization (UNIDO) conference. Realizing the importance of Tourism industry the government of India constituted India Tourism Development Corporation (ITDC) in 1966. Over the last few Decades various well-known international Chains have come to India. These include Hyaat Hotels and Resorts, Intercontinental Hotels and Resorts, Marriot International, Hilton Hotels, Shangri-la Hotels and Resorts and Aman Resorts. -----------------------------------------------------------------------------------------------