CU-BSC.TTM-SEM-III-(Elective Group-C) Introduction to Hospitality Management- Second Draft

BACHLEOR OF SCIENCE TRAVEL AND TOURISM MANAGEMENT SEMESTER III INTRODUCTION TO HOSPITALITY MANAGEMENT BTT209

2 CU IDOL SELF LEARNING MATERIAL (SLM)

CHANDIGARH UNIVERSITY Institute of Distance and Online Learning Course Development Committee Prof. (Dr.) R.S.Bawa Pro Chancellor, Chandigarh University, Gharuan, Punjab Advisors Prof. (Dr.) Bharat Bhushan, Director – IGNOU Prof. (Dr.) Majulika Srivastava, Director – CIQA, IGNOU Programme Coordinators & Editing Team Master of Business Administration (MBA) Bachelor of Business Administration (BBA) Coordinator – Dr. Rupali Arora Coordinator – Dr. Simran Jewandah Master of Computer Applications (MCA) Bachelor of Computer Applications (BCA) Coordinator – Dr. Raju Kumar Coordinator – Dr. Manisha Malhotra Master of Commerce (M.Com.) Bachelor of Commerce (B.Com.) Coordinator – Dr. Aman Jindal Coordinator – Dr. Minakshi Garg Master of Arts (Psychology) Bachelor of Science (Travel &Tourism Management) Coordinator – Dr. Samerjeet Kaur Coordinator – Dr. Shikha Sharma Master of Arts (English) Bachelor of Arts (General) Coordinator – Dr. Ashita Chadha Coordinator – Ms. Neeraj Gohlan Academic and Administrative Management Prof. (Dr.) R. M. Bhagat Prof. (Dr.) S.S. Sehgal Executive Director – Sciences Registrar Prof. (Dr.) Manaswini Acharya Prof. (Dr.) Gurpreet Singh Executive Director – Liberal Arts Director – IDOL © No part of this publication should be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording and/or otherwise without the prior written permission of the authors and the publisher. SLM SPECIALLY PREPARED FOR CU IDOL STUDENTS Printed and Published by: TeamLease Edtech Limited www.teamleaseedtech.com CONTACT NO:- 01133002345 For: CHANDIGARH UNIVERSITY 3 Institute of Distance and Online Learning CU IDOL SELF LEARNING MATERIAL (SLM)

First Published in 2021 All rights reserved. No Part of this book may be reproduced or transmitted, in any form or by any means, without permission in writing from Chandigarh University. Any person who does any unauthorized act in relation to this book may be liable to criminal prosecution and civil claims for damages. This book is meant for educational and learning purpose. The author of the book has/have taken all reasonable care to ensure that the contents of the book do not violate any existing copyright or other intellectual property rights of any person in any manner whatsoever. In the event the Authors has/ have been unable to track any source and if any copyright has been inadvertently infringed, please notify the publisher in writing for corrective action. CONTENT 4 CU IDOL SELF LEARNING MATERIAL (SLM)

Unit 1: Introduction To Hospitcality Industry ...........................................................................6 Unit 2: Different Types Of Accommodation ...........................................................................39 Unit 3: Structure Of Accommodation Unit..............................................................................64 Unit 4: Cruise Industry...........................................................................................................102 Unit 5: Front Office Management..........................................................................................115 Unit 6: Reservations...............................................................................................................133 Unit 7: House-Keeping Management ....................................................................................157 Unit 8: House-Keeping Sops .................................................................................................170 Unit 9: Food And Beverages..................................................................................................202 Unit: 10 Off Premises Catering..............................................................................................242 5 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT 1: INTRODUCTION TO HOSPITCALITY INDUSTRY Structure 1.0. Learning objectives 1.1 Introduction 1.2 Service industry 1.3 Definition 1.4. Spread of tourism industry 1.4.1 Marketing and distribution 1.5 Role of hospitality Industry as a part of Tourism 1.6 Travel and Tourism 1.7 History of accommodation units 1.7.1Timeline of history 1.7.2 Changing era of digital age 1.7.3 A brief history 1.7.4 Travel industry growth 1.7.5 Importance of innovation in hospitality 1.8 Summary 1.9 Keywords 1.10 Learning Activity 1.11 Unit end Questions 1.12 Reference 1.0 LEARNING OBJECTIVES After studying this unit, the student will be able to  Explain the Meaning of hospitality industry.  Define, what scholars has to say about hospitality industry.  Compare hospitality industry worldwide and India.  Analyse the role of hospitality industry as a part of tourism.  Identify the history of accommodation industry. 1.1 INTRODUCTION In British law “Hotel” or “Inn” is defined as a “place where a bonafide traveller can receive food and shelter. Provided he is ina apposition to pay for it and is in a fit condition to be 6 CU IDOL SELF LEARNING MATERIAL (SLM)

received.” Hence, a hotel must provide food (and beverage) and lodging to travellers on payment and has, in turn, the right to refuseif the traveller is drunk, disorderly, unkempt, or is not in a position to pay for the services. The hospitality industry is a broad category of fields within the service industry that includes lodging, food and drink service, event planning, theme parks, and transportation. It includes hotels, restaurants and bars. The role of Hotel Industry stems from a long history and development in the field of hospitality provision. The hospitality industry is generally recognised as a section of the wider service industry, with a focus on leisure, rather than more basic needs. Horeca (also HoReCa, HORECA) is the Dutch and French languages term for the food service and hotel industries. The term is a syllabic abbreviation of the words Hotel/Restaurant/Café. The term is mostly used in the Benelux countries and in Switzerland. \"Horeca\" is often not a one-to-one equivalent to the term \"hospitality industry\" used in English, which is often used more broadly. According to the Cambridge Business English Dictionary the \"hospitality industry\" consists of hotels and food service,[6] equivalent to NAICS code 72, \"Accommodation and Food Service\". However, the United States Department of Labor Standard Industry Classification (SIC) defines the hospitality industry more broadly, as noted above. In this article, you will learn more about the nature of the hospitality industry, the various sectors contained within it, and its connections to the hotel industry and travel industry. So, what is the Hospitality industry? First, it is important to define what we mean by the hospitality industry. After all, it is a broad field and while most people have a basic idea of the types of businesses that count as hospitality brands, a far smaller number are able to provide a coherent and satisfactory explanation of what the industry is, and what it is not. Put simply, the hospitality industry refers to a variety of businesses and services linked to leisure and customer satisfaction. A defining aspect of the hospitality industry is also the fact that it focuses on ideas of luxury, pleasure, enjoyment and experiences, as opposed to catering for necessities and essentials. Hospitality Industry is a large industry. It also is a fast-growing sector in the economic. The hospitality industry is a multibillion dollar and growing enterprise. The hospitality industry can be divided into two main categories and that is, the Hospitality and the Tourism Industry. Hospitality industry is the oldest business in the history. Hospitality industry can be divided into two parts and that is entertainment areas like Hospitality means that the staff of the hotel will receive the guest in a good and a manner way because we have to give full respect to the guest because mostly guest will aspect satisfaction. Most of the guests will aspect a friendly and a safe atmosphere so that they would come back to the hotel if they satisfied with the service provided 7 CU IDOL SELF LEARNING MATERIAL (SLM)

This sector is one of the fastest growing in Europe. In 2004, more than 7.8 million people were employed, and the sector generated more than $338 billion turnover. Jobs tend to be temporary, with irregular hours, low pay, and few career prospects. There is a high proportion of young people working in the sector. Some distribution companies use this term to define the food & beverage service trade channel or the hospitality trade channel. Advantage of Hospitality Industry  Mostly the advantages of hospitality industry are from the Economic gains.  Mostly all the tourism will travel all over the world.  All the hotel industry needs to satisfy all the need of the guest, because the guest will pay money for the facilities that are provided to them. All the money that guest spend on the vacation time, half of the money will spend for the hotel room, restaurants, the service, grocery stores, or even a souvenir shop.  The money that guests spends in the hotel; it will make a good profit for the hotel industry. When the hotel industry gains it profits, the economic also will gain profit from the hotel industry.  Sometimes the business travellers also will come and stay at the hotel because they come for a business trip. The business travelers also will directly give benefits to the hotel industry from the transportation that they use from the hotel, hotel room, and the restaurants.  Most of the tourist that come for vacation half of their stay in the country will give the economic gains because the economic will receive a good benefit directly from the business travellers.  Tourism also generates government revenue from direct taxation of tourism businesses and tourist. If the government revenue gains the money will be used to develop the infrastructure so that more tourism will come and visit the country. 8 CU IDOL SELF LEARNING MATERIAL (SLM)

Fig 1.1 Hospitality Industries Disadvantage of Hospitality Industry  The disadvantages of hospitality industry are socio cultural impact. It means when the tourism come to other country to visit, they will bring all kind of negative cultural.  When the tourist interacts with other people the society also will follow their lifestyle.  The first negative cultural that follow by the local people are changing family lifestyle. It means like mostly tourism that come for vacation are rich people. When the local people follow the same attitude, and it knows as the demonstration effect.  Once upon time a stage local people come to realize that even their income is high, and they cannot afford to live like the tourism people lifestyle.  Social ill problem also is a disadvantage as crime problem, displacement, and discrimination.  Tourism can also cause displacement if the residents find they can no longer live in their community after they know the problem occur from the social problem.  Now days gambling also are influenced to the local people because the people that are from outside country will play gambling wherever they like, and this attitude will also follow by the local people. The best way is just following our cultural living lifestyle. 1.2 SERVICE INDUSTRY 9 CU IDOL SELF LEARNING MATERIAL (SLM)

The hospitality industry is part of the service industry and is comprised of 5 major sub- sectors as given below. Lodging Services Tourism Food & Beverage Services Transportation Events Figure 1.2 Five major sub-Sectors of Service Industry Hospitality industry plays a huge role because they are very large industry in the world. Hospitality industry has many facilities that they provided such as accommodation, restaurants, mini bar, coffee house, fitness centre and many more. All the facilities are provided at the hotel are very useful for the guest that stays there. Most of the guests that stay in the hotel will aspect satisfaction because they are paying money for the service that is provided. The hospitality industry must also satisfy the guest so that the guest will come back to the hotel again. For example, to encourage the guest to come back to the hotel, the hotel must entertain the regular guest so that they are happy with services that are given. Front office is playing a big role in the hotel industry because they are the first department to receive the guest. First impression is very important, when guest arrive at hotel, reception must play their role to make guest feel happy like their home. At the core the hospitality industry concerns itself with providing products and services to people which assist in recreation and supporting the well-being of people. It includes different activities, which main goal is to provide a service and customer’s satisfaction. This industry can be segmented in four: 1. Food &Beverage, 2. Travel &Tourism (transport), 3. Lodging 10 CU IDOL SELF LEARNING MATERIAL (SLM)

4. Recreation (leisure park, relaxation, etc). While the hospitality industry doesn't have one globally accepted start date, its history dates back thousands of years and spans across the globe. Look at ancient Greece, for example, where xenia — also known as the sacred rule of hospitality — was defined as \"the generosity and courtesy shown to those who are far from home or associates of the person bestowing guest-friendship. Xenia: the law/custom of offering protection and hospitality to strangers. The law/custom was felt to be so fundamental to human civilized life that its patron was Zeus xenios:\"Zeus the god who protects strangers. “More Than a Cup of Tea Offering a hot beverage, food, the safety of your home, or entertainment are all examples of presenting good xenia to guests. xenia is commonly used to portray hospitality or a guest/host relationship. “In short, Xenia was made up of two basic rules: The respect The respect Xenia from hosts from to guests guests to hosts Figure 1.3 Xenia basic rules Guest to host relation ship The respect from hosts to guests- Hosts must be hospitable and provide guests with a bath, food, drink, gifts, and a safe escort to their next destination. The respect from guests to hosts - Guests must be courteous and not be a threat or burden to their hosts. Although our modern-day version of hospitality looks different than it did thousands of years ago, it still follows one main theme: To provide guests with services. And guests do more than just make a pitstop at hospitality businesses these days. Many hospitality businesses are now seen as destinations themselves. 1.3 DEFINITION Hospitality has dozens of different definitions, but it can be broken down to the act of making someone feel welcome, usually through entertainment and comfort. The scope of hospitality industry comprises of a range of businesses that provide services and facilitates such as accommodation, food and beverage, entertainment, gaming and related products. 11 CU IDOL SELF LEARNING MATERIAL (SLM)

The term” hospitality” has become accepted over the years as a generic word, which describes the wellbeing of services and facilities related to the tourists and travellers. So, what is the hospitality industry? It includes many businesses that fall under this large umbrella, such as hotels, motels, resorts, restaurants, theme parks, and much more. If you’re not sure whether or not a business is considered part of the hospitality industry, ask yourself these questions: Does this establishment serve food or drink? Is customer experience a top priority? Does the business make money through services more than goods? If you’ve answered yes to one or more of these, there’s a strong chance that the business is involved in hospitality to some degree. Hospitality is an industry that includes restaurants, hotels, casinos, amusement parks, events, cruises, entertainment, and other tourism-related services. As such, this industry isn’t just important to businesses, but also to customers, employees, and economies. Providing customers with an excellent service is the primary goal of hospitality managers as they focus on creating high-standard services and environments for the purpose of making their customers feel welcomed at their establishments. When you are outside of your home and are paying for staying then the all the services you use during your stay and broadly within or related to or provided by the place of stay comes under hospitality industry. Hospitality is defined as 'the friendly and generous reception and entertainment of guests, visitors, or strangers. ‘Words used to understand hospitality are welcome, friendliness, helpfulness, warmth, greeting, kindness, etc. Hospitality means welcoming a guest and making them comfortable at your place by looking after their needs during their temporary stay. Another way to better understand hospitality is by looking at The Big Four: Food and beverage, travel and tourism, lodging, and recreation. The food and beverage category includes restaurants, bars, and lounges. Travel and tourism cover airlines and travel agencies. Lodging can be anything from hotels to Air Bus. And recreation usually means activities such as golfing, fishing, and tennis. All these industries are connected by their drive to provide an enjoyable experience for all who participate. The atmosphere is welcoming and warm, the facilities sometimes offer convenient amenities such as showers or complimentary valet parking, and their revenue 12 CU IDOL SELF LEARNING MATERIAL (SLM)

typically relies on whether people enjoy being there. One of the most defining aspects of this industry is that it focuses on customer satisfaction. While this is true of nearly every business, this industry relies entirely on customers’ being happy. This is because these businesses are based on providing luxury services. Very few hospitality businesses provide a basic service that people need, like food or clothing. When we do and provide the above things as a service, business to anyone, with the help of products and services, for a price it becomes hospitality industry. Hospitality industry can be defined and understood as an industry which provides facility for stay, food and complete related services for the comfort and leisure of the travellers and visitors. Hospitality is the industry covering all the products and services that serve travellers, tourists and all types of visitors. When you know tourism you also understand hospitality industry. This industry is closely associated and a part of the tourism industry. it is a key part of the tourism industry value chain. This industry is mainly driven by growing tourism, yet it caters to both tourists and travellers. Hospitality and Tourism industry are closely related, and each plays an important role in development and growth of the other industry. Tourism brings revenue, growth and development for hospitality. On the other hand, hospitality industry adds to the overall value and importance of tourism. It creates more tourism demand, makes it look more attractive, adds the much-needed comfort level for tourists and travellers. Without hospitality tourism would be incomplete and will not achieve the growth.The hospitality Industry value chain is a part of the tourism industry value chain. All of the services, segments, sectors and components of hospitality Industry broadly come under the tourism industry. This is because hospitality is the very important segment of tourism. Hospitality majorly caters to the tourists and travelers. The customers or the business of hospitality comes from tourism and from travelling. Yet, we need to look at the value chain of this industry because looking at hospitality through tourism is not that deep and detailed. Hospitality, although is an important part of tourism yet it is also an independent industry that serves and caters to all types of people including those who are not tourists. The value chain is defined and structured across the two sectors or segments of hospitality industry i.e., accommodation sector and food & beverages sector or segment. Then it covers the sub-segments and types for each segment i.e., types of accommodation facilities and types of food & beverages services in hospitality. Another defining aspect of this industry is its reliance on disposable income and leisure time. For this reason, most of these businesses are for tourists or rich patrons. If disposable income decreases due to a slump or recession, then these are often the first businesses to suffer because customers will not have the extra money to enjoy their services. 1.4 SPREAD OF TOURISM INDUSTRY 13 CU IDOL SELF LEARNING MATERIAL (SLM)

Figure 1.4 Spread of Tourism Industry Tourism is a phenomenon of the temporary relocation of human resources from their place of residence with the purpose of familiarization with and resource consumption of a new territory. It is one of the ancestral forms of the human resources movement, such as migration (long movement with the development of the new territories resources), transit and professional travel (spatial movement of workers associated with the crossing of territorial boundaries) and virtual movement. Today tourism is an important component of the world economy development. Over the past 20 years the tourism flows in the world have increased by more than 2.7 times from 436 million in 1990 to 1,186 billion people in 2015. After reaching a historic boom in 2012 – more than one billion people traveling the world in one year – the volume of international tourism continues to grow. This indicates about the rapid development of the world tourism industry. Europe will continue to lead in the number of tourists, which affects the flow of income from international tourism by world regions. Over the past 20 years, many facets of the hotel industry have shifted to adapt to new technology and changing consumer behaviour, which have in turn changed how hoteliers conduct business.“The lodging industry has changed in several key areas over the past decades and many of these changes have helped hoteliers to enhance their products, attract more guests and create opportunities for expansion,” said Chip Rogers, president and CEO of the Asian American Hotel Owners Association.  However, those changes have also had an impact on the bottom line, which Rogers said has become more difficult to attain and has diminished over time. 14 CU IDOL SELF LEARNING MATERIAL (SLM)

 “The availability of internet marketing has led to increased competition and has created pressure on room rates. As costs continue to rise at a higher rate, the net effect on the [net operating income] has overall been negative,” he said.  “Profit margins have also decreased because of higher commissions from [online travel agencies] and increases in operating costs such as workforce, and the increased amenities demanded by consumers.”  Even so, hospitality will continue to adapt, said Tom Corcoran, co-founder and chairman of the board of FelCor Lodging Trust.  “Hospitality has been around for a thousand years,” he said. “It will continue to be around for another thousand years.”  The two industry veterans discussed with HOTEL MANAGEMENT some of the biggest changes the industry has seen over the past two decades and how those changes have affected business at large. Dynamics and forecast of international tourism development * * Compiled according to the World Tourism Organisation International tourism arrivals, million Region 1990 1995 2000 20005 2010 2011 2012 2013 2014 2015 2020 2030 World 436 529 677 807 949 995 1038 1087 1138 1186 1360 1809 By the territorial factor, we distinguish internal (intra-national) and international (foreign) tourism. By the direction of flow: incoming and outgoing. By the aim of the tour: recreation, health, therapeutic, informative (tour), professional, business, scientific (research, search, communication, conferences and congresses, scientific), educational (short term training), sports, shopping tours, adventure, pilgrimage, nostalgic (visiting relatives and places of origin), ecotourism (green tourism), exotic (thematic, sex tourism, alcohol, museum, theatre, esoteric (mystical), romance, war, historical, UFO tourism), elite (tourism to the North pole, exclusive tours, special terms and programs), ethnic (ethnographic, sentimental, family), amateur (hunting, fishing), extreme and combined types. By the sources of financing: social and commercial. By the way of travelling: pedestrian, aviation, marine, river, tourism by car, train, bicycle, horse-drawn, mixed. By the types of accommodation facilities: hotel, motel, guest house, friendly, sanatorium, hostel, camp, apartment, tents. By the number of 15 CU IDOL SELF LEARNING MATERIAL (SLM)

participants: individual, family and group tourism. By the duration: short (short-term) and long-term tourism. Environment tours: mountain tourism, water, speleo-tourism, forest, desert, industrial, rural tourism, suburban tourism, urban tourism, aviation tourism, space tourism. By the flow rate: constant, seasonal, mono-seasonal, bi-seasonal, event (onetime or periodic basis). By the institutional form of regulation: organized tourism, informal (amateur) tourism. By the development and agreement with the receiving side: planned tourism and independent tourism. By the nature of the travel motivation: conveyor tourism and differentiated tourism. By the age of tourists: children, young people, tourism of relatively young economically active people, tourism of economically active people of middle age, tourism by pensioners. By the form of tourist services: inclusive tours, package tours. By the ethnic criterion: tourists have signs of national belonging, for example, an American tourist, a Japanese tourist, etc. Modern views on innovation in tourism based on changes in society, which is under the influence of globalization processes has transformed into a “consumer society” and becomes the customer of new services. The number of such customers is increasing each year. Therefore, tourism enterprises also need to constantly transform. To ensure those innovation processes, it is expedient to apply the symbiosis of traditional and contemporary sections which includes innovation focused on customer service; developing a highly innovative tourism products; the introduction of a specific innovative marketing policies; management of companies’ innovation; direction of their activities towards cooperation with other representatives of the tourism industry at the local, regional and state levels. 1.5 ROLE OF HOSPITALITYINDUSTRY AS A PART OF TOURISM Figure 1.5 Role of Hospitality Industry 16 CU IDOL SELF LEARNING MATERIAL (SLM)

The tourism sector employs a range of different workers to facilitate leisure activities away from the 'home' environment, while the hospitality sector employs a wide range of people to provide accommodation, food and beverage services. The tourism industry is often cited as the largest industry in the world, contributing 10% of the world’s GDP. In 2014 there were over 1.1 billion international tourists: that’s a substantial economic impact and movement of goods and services!1 Tourism is also considered an export and is unique in that the consumers come to the product where it is consumed on-site. Before we dig any deeper, let’s explore what the term “tourism” means. Hospitality Industry is a large industry. It also is a fast-growing sector in the economic. The hospitality industry is a multibillion dollar and growing enterprise. The hospitality industry can be divided into two main categories and that is, the Hospitality and the Tourism Industry. Hospitality industry is the oldest business in the history. Hospitality industry can be divided into two parts and that is entertainment areas like Hospitality means that the staff of the hotel will receive the guest in a good and a manner way because we must give full respect to the guest because mostly guest will aspect satisfaction. Most of the guests will aspect a friendly and a safe atmosphere so that they would come back to the hotel if they satisfied with the service provided.Tourism impacts can be grouped into three main categories: economic, social, and environmental. These impacts are analysed using data gathered by businesses, governments, and industry organizations. Some impacts gain more attention than others. It is also important to recognize that different groups and constituencies are impacted differently. Hospitality Industry is divided into many terms such as Accomodation Transportation Food & Beverages 17 CU IDOL SELF LEARNING MATERIAL (SLM)

Figure 1.6 Hospitality Industry terms Accommodation is typically a lodging industry: Hospitality is made up of two services: the provision of overnight accommodation for people travelling away from home, and options for people dining outside their home. We refer to the accommodation and food and beverage services sectors together as the hospitality industry. Figure 1.7 Accommodation is typically a lodging industry The hotel rooms mostly provide bed, cupboard, small table, and modern facilities include such as, suite bathroom and air conditioning. Additional thing that are provide in the hotel room are, telephone, alarm clock, television, slippers, bathrobes, mini bar with food and soft drinks and facilities of making coffee or tea. If the hotel has more luxury facilities like example the facilities that are given to them are such as swimming pool, fitness centre, and childcare. Hotels are typically referred to by hotel type or category. The type of hotel is determined primarily by the size and location of the building structure, and then by the function, target market, service level, other amenities, and industry standards. Business hotels, airport hotels, budget hotels, boutique hotels, convention hotels, and casino hotels are some examples of differentiated hotel concepts and services designed to meet a specific market segment. 18 CU IDOL SELF LEARNING MATERIAL (SLM)

Example types of hotels that are: Deluxe Resorts Motel Hotel Figure 1.8 Hotel rooms  Deluxe hotel is the high standard types of hotel and it is in the level of luxury and comfort from the cleanliness, efficiency, the staffs are very specialization and the quality types of food and beverage service. Deluxe hotel mostly are very big types of rooms. Each room has its own types and design. The rate of the hotel room mostly changes during the season, it doesn’t have a fix price for the room.  Resort types of hotel mostly choose by the family trip or leisure travellers. Mostly resort will provide many facilities such as swimming pool, tennis courts, exercise facilities, health clubs, traditional restaurant and more extra facilities. Resorts mostly are located at the areas such as near the beaches, and nature resorts. Some resort also provides activities such as playing game in the swilling pool because these types of game mostly enjoy and can make the guest to have fun and relax. The guest will be satisfied with what they pay for it because they mostly will pay money much because to enjoy the environment and activities of the hotel.  Motel types of hotel are called as the cheapest hotel because the hotel won’t provide the facilities that are provided at the other hotels. Mostly a standard motel only provides parking space for the guest, if the motel is not standard it will not provide any facilities to the guest. Motel price are usually very cheap, and any types of people could stay there if they won. Motel that has low limited services are called budget motels. Transportation: A lot consider tourism synonymous with hospitality and not as a different sector of the hospitality industry. 19 CU IDOL SELF LEARNING MATERIAL (SLM)

Figure 1.9 Transportation: Travel and tourism industry is a vast sector of the hospitality industry with several key players across the globe. Most of them include trains, airlines, cruise ships, and several crew members in their service. On the whole, players in the travel and tourism segment are in the business of moving people from one destination to another. It would not be an exaggeration if we make a statement that the most important segment of the hospitality industry is travel and tourism as others depend on it. Without profound levels of travelling and tourism in a region, the hospitality industry of the region will not grow. So, the Travel and tourism domain makes the backbone of our hospitality industry. It is a huge domain which demands innovation, strategy, and novelty at each step. When we talk about travel and tourism, it is not confined to leisure and travel for fun. Both formal and informal travelling include this division. People travel across the globe for businesses, education, entertainment, holidays, and many other things. Like all other different sectors of the hospitality industry, this one also demands customer focus, leniency, relationship management, and other integrated marketing skills for its smooth running and expansion. Transportation is the transport that the guest or people take to move to another place by it. An example types of transportation that has is by road, air, cable, water, and rail. The main transport that uses by people are by the road and rail. But for tourism people mostly use the airline industry because it is fast transportation in the world, and it helps the tourism to go to the destinations that they like to go. Airline Industry The airline industry is the fastest transportation in the world. Mostly tourism people will use the airline industry because it can save the time to go to the destination. Airline industry has many parts of the world. Some people will choose the type of destination they one, because airline industry will also provide a package trip for the tourism so that they can save their cost in the travelling. They also will arrange the trip from the transportation, hotel room and sometimes tour package that can help them to travel at the place they won. 20 CU IDOL SELF LEARNING MATERIAL (SLM)

 Group Transportation Industry: Ground transportation industry such as buses, van also helps the tourism and the hospitality industry. Because mostly the people that come to travel by tour packages also need help from the ground transportation because they need transport to go around the places they like. Sometimes when the tourism people take the tour package will also include the transportation because it can help them to travel the places that they wish too. Mostly when the guest stays at any hotel the tour guide people will arrange transport from the hotel industry, and the tourism industry will pay the hotel for it.  Food and Beverages: The food and beverage sector which is professionally known by its initials as F&B is the largest segment of the hospitality industry. The F&B industry is estimated to provide 50% of all meals eaten in the US today. It comprises of establishments primarily engaged in preparing meals, snacks, and beverages for immediate consumption on and off the premises. When a restaurant is part of a hotel, services it renders can enhance the guest experience by providing excellent food and first- class customer service. Figure 1.10 Food and Beverages While many business niches are composed of only a handful of different businesses, the hospitality industry applies to nearly any company that deals with customer satisfaction and is focused on meeting leisurely needs rather than basic ones. With the broadness of this industry, some defining aspects are important to understanding. The hospitality industry 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. Food service industries also are important in the hotel industry because, it is the place where the guest has their meal. The hotel also provided many times of food cuisines such as cooked food and serve in many types of styles such as example are, Chinese food, Indian food, Malaysian food, Thai food, Italian food, Japanese food and American food. The hotel also provided bar, coffee house for the guest because the guest can go and eat there when they one to go. A hospitality unit such as a restaurant, hotel, or an amusement park consists of units 21 CU IDOL SELF LEARNING MATERIAL (SLM)

such as facility maintenance and direct operations (servers, housekeepers, porters, kitchen workers, bartenders, management, marketing, and human resources, etc.). The hospitality industry is a multibillion-dollar industry that depends on the availability of leisure time, disposable income, and complete customer satisfaction. There are four segments of the hospitality industry: Food and beverages, Travel and Tourism, lodging, and recreation. It can symbiotically function as part of other businesses, such as in bowling alleys or movie theatres.  Catering and banquets will be done by a hotel if there are any important functions such as, wedding dinner, meetings that organize by any important people, orientation night or even an annual dinner of a company. Catering and banquet service has to know how to make the food preparation and the decoration such as table setting and the lighting. Catering service means the waiter or waitress will serve the guest but if the banquets service the guest must take their food by their own and they can eat how much they one.  Restaurants: The hotel also provides restaurants because it cans gains the hotel profits. The restaurant has many types in the hotel industry. The restaurant will provide many types of food in different types of cuisine. Each restaurant has its own cuisine and type of food and the guest can choose whatever food they like to eat. Many restaurants in the hotel industry also provide take away service and also delivery service to the guest room. The restaurant mostly provides twenty-four hours service to the guest. The guest can order the food or eat whenever they won. 1.6 TRAVEL AND TOURISM Figure 1.11 TRAVELS 22 CU IDOL SELF LEARNING MATERIAL (SLM)

Travel and tourism deal with services related to moving people from place to place. Buses, cabs, planes, ships, trains and so on are all part of the travel industry. Leisure travel is when a person spends money on lodging, food, and recreation while taking a vacation trip, and business travel is when a person travels for work and spends money on lodging and food. Some people also spend on recreation while on a business travel. The major function of the tourism is to encourage people to travel. When people travel, either for business or leisure, they spend money on hospitality. Lodging means accommodation for a period or a place to sleep for one or more nights. Fancy hotels, youth hostels, elder hostels, campgrounds, motels and other businesses that provide a place for people to sleep overnight are all in the lodging industry. Lodging businesses markets to other market segments such as business travellers, leisure travellers, long-stay travellers, budget travellers, and special travellers like people working with the government, airlines, and military. Recreation is any activity that people do for rest, relaxation, and enjoyment. The goal of recreation is to refresh a person's body and mind. Any business that provides activities for rest, relaxation and enjoyment, to refresh a person's body and mind is in the recreation business. Entertainment businesses which provide shows such as movie or theatre, attractions which are places of special interest of visits such as zoos and museums, spectator sports and participatory sports are all parts of the recreation business. 1.7 HISTORY OF ACCOMMODATION UNITS Figure 1.12 Histories of Accommodation Units 23 CU IDOL SELF LEARNING MATERIAL (SLM)

1.7.1 Timeline of history of accommodation industry Hospitality is nearly as old as humanity. From the earliest caves to inns, staging posts, motels, and resorts—today, the hospitality industry is thriving, with something like 187,000 hotels around the world. Below is a timeline of some important milestones in the development of the hospitality industry. 15,000 BCE—The Lascaux caves in France are the first shelter in history that provably accommodated people of a different tribe. Figure 1.13 Spread of Tourism Industry The Lascaux caves in France Classical antiquity—In ancient Greece and Rome, spas and bathhouses often provided sleeping facilities and were popular attractions for those seeking rest and relaxation. A bordello in Classical Pompeii is considered to be the first hospitality establishment that charged for lodging. 24 CU IDOL SELF LEARNING MATERIAL (SLM)

Figure 1.14 The Lascaux caves in France Classical Pompeii Middle Ages—In Japan, the first two hotels in history (guest houses called ryokans) were built in the early 700s. Figure 1.15 Classical Pompeii The Ryokans 25 CU IDOL SELF LEARNING MATERIAL (SLM)

In the Middle East, caravanserais were a resting place for caravans along the Silk Road, and refuges served pilgrims and crusaders on their way to the Holy Land. Figure 1.16 The Ryokans The Caravanserais In China and Mongolia, staging posts provided shelter for couriers and allowed horses to be changed more easily. In Europe, cloisters and abbeys provided free accommodation to travellers. Gradually, inns and guesthouses began to open on popular trade routes to provide lodging for traveling merchants and their horses. Figure 1.17 The Caravanserais 26 Cloisters and Abbeys CU IDOL SELF LEARNING MATERIAL (SLM)

1600s—More than 600 inns were registered in England; the English and French governments began to introduce laws regulating them. Thermal spas with lodging were developed at Karlovy Vary in the Czech Republic. The first guidebooks for travellers were published in France. Early 1700s— Masonic Lodges began to appear in North America. In Paris, the Place Vendôme offered the first example of a multiple-use architectural complex, including boutiques, offices, apartments, and hotels. Figure 1.18 Cloisters and Abbeys Masonic Lodges in America 1760s—The Industrial Revolution spurred the construction of hotels across Europe and the United States. Early 1800s—The first modern hotel built in England, with a full complement of facilities, was the Royal Hotel in Plymouth. Holiday resorts began to flourish along the French and Italian rivieras. In Japan, ryokan guest houses proliferated; in India, dak bungalows run by the British government served travellers. 27 CU IDOL SELF LEARNING MATERIAL (SLM)

Fig 1.19 Masonic Lodges In America Royal Hotel in Plymouth  1829—The Tremont House in Boston was the first hotel to provide inside toilets, locks on the doors, and bellboys.  1832—Holt’s Hotel boasted the first steam-powered elevator in New York City.  1862—Le Grand Hôtel Paris opened, the largest and most luxurious hotel in Europe, decorated by top painters.  1870—The Palmer House Hotel in Chicago was the first hotel built to be fire resistant and the first to offer telephones in all its rooms.  1873—The Palais Württemberg in Vienna was transformed into the Hotel Imperial, a superb luxury residence for the notables of the era.  1888—The Hotel Victoria in Kansas City, Missouri, was the first to offer an en suite bathroom with every room.  1893—The first school for hoteliers, Ecole hôtelière de Lausanne, was founded in Lausanne, Switzerland. That same year, the Waldorf Astoria in New York opened its doors. It was the first hotel to offer room service; its maître d’ created the Waldorf salad. 28 CU IDOL SELF LEARNING MATERIAL (SLM)

Figure 1.20 Royal Hotel in Plymouth 1.7.2 A Brief History of Modern Era Early 20th century—The early years of the twentieth century saw the construction of new luxury hotels: The Ritz in Madrid, the Savoy in London, the Beau Rivage Palace in Lausanne, the Plaza in New York, the Métropole in Brussels, the Plaza-Athenée in Paris, the Taj Mahal in Bombay, etc. During this period, Switzerland built its first ski resorts. Figure 1.21 Taj Mahal 29 CU IDOL SELF LEARNING MATERIAL (SLM)

The Taj Mahal Palace in Mumbai 1923—La Mamounia was built among gardens in Marrakech, Morocco; many considered it to be the most beautiful hotel in the world. Figure 1.22 La Mamounia Morocco La Mamounia Morocco  1927—Hot Shoppes was founded in Washington, D.C., a hospitality company that later became Marriott Corp.  1950s—After the Great Depression and the war, the fifties saw a second boom in the hotel industry, including the advent of Club Med, the first casino hotels, the first hotels developed by airline companies, and new resorts flourishing around the Mediterranean. In the United States, Holiday Inn and Howard Johnson’s motor lodges were founded; 35,000 motels were built between 1939 and 1960. Latter half of the 20th century—Thanks to various social and economic factors, middle- class people had more time and money to indulge in travel. Hotels began to diversify, catering to different budgets and interests (spas, casinos, motels, hostels, resorts, conference hotels) and offering a more varied range of services.  1970—Hotel’s catering to businesspeople began to proliferate, especially in the Middle East, Europe, and North America.  1980s—The third boom in the hotel industry began in 1980. International hotel chains (mostly American) expand in Europe, the Middle East, and Asia.  1987—Kendall College launched its Bachelor’s in Hotel and Restaurant Management program, which later evolves into a Bachelor’s in Hospitality Management. 1.7.3 Changing era of digital age  Digital age—Software companies began developing new tools for the hospitality industry that are still evolving today, including customer databases and systems for reservations, room and housekeeping management, customer preferences, loyalty programs and more. 30 CU IDOL SELF LEARNING MATERIAL (SLM)

 1993—The travel industry was quick to take advantage of the advent of the Internet, giving customers the opportunity to compare, book and review hotels from their home computer.  1997—Hotel Adlon Berlin, destroyed in 1945, is rebuilt for $260 million on its original site facing the Brandenburg Gate. Its exterior is a virtual replica of the original; inside, the rooms are the ultimate in luxury.  Early 21st century—Global corporate hotel chains merge and acquire each other. InterContinental Hotel Group now owns Holiday Inn and Crowne Plaza; Marriot owns Renaissance; AccorHotels owns the brands Raffles, Sofitel and Novotel.  2009—Airbnb is founded, challenging the hotel industry by attracting tourists and taking market share. Hotels respond with creative marketing approaches, including social media campaigns and personalized customer experiences created through smart devices.  2014—The Waldorf Astoria New York is sold to the Chinese Anbang Insurance Group for $1.95 billion, the most ever paid for a hotel.  2015—The First World Hotel in Pahang, Malaysia, expands to become the largest hotel in the world, with 7351 rooms.  Away from home, surrounded by strangers and yet you feel welcome. The original idea of hospitality has remained unchanged since the creation of the word itself. Derived from the Latin word “hospes”, meaning both visitor and stranger, hospitality has its roots in ancient history.  Thousands of years ago, when road networks were scarce, and traveling was cumbersome strangers arriving in a foreign land had to rely on either their camping skills or a local’s kindness when looking for shelter. During the age of pilgrimage and the development of major trade routes throughout Europe, it was mostly inns and taverns offering primitive rooms to weary travellers. The idea of a hotel built for the sole purpose of hosting guests did not exist in Europe until the 18th century, when technological progress and the introduction of faster and more reliable modes of transport made long distance travel available to wider public. With the influx of large numbers of foreigners into major cities, the need for accommodation led to the opening of the first hotels in the modern sense. Since then, the sector has known a nearly unbroken run of growth and international expansion. 1.7.4 Travel Industry Growth Over the last two decades, international departures have more than doubled from around 600 million to more than 1.4 billion in 2016. 31 CU IDOL SELF LEARNING MATERIAL (SLM)

Figure 1.23 Travel Industry Growth Thanks to this immense potential, a network of service providers has developed that caters to nearly every desire imaginable. Hospitality has gradually become one of the largest and most diverse industries, employing hundreds of millions spread over different sectors. Tourism is defined as international visitors spending across national borders travel primarily for business, convention or conference travel, government business, and the more familiar tourism for leisure, vacation or to visit friends and relatives. Major industries that benefit from tourism expenditure include domestic and international air transportation, accommodation services, food services, drinking places, automotive rental and travel agencies. Today, businesses in the industry can generally be divided into four categories:  Lodging  Food & Beverage  Recreation  Travel & Tourism The Global Tourism industry has experienced growth over the five years to 2020. Except for 2020, the number of international tourist arrivals has risen as global per capita income has increased and consumer sentiment improved. Over the past five years, tourists going to and from emerging economies, particularly countries in Asia and South America, have driven industry growth. Emerging economies now account for a much larger share of the Global Tourism industry, compared with a decade ago. Generally, two broad themes underline this growing trend. First, per capita income grew rapidly in many developing economies, expanding consumers' choices and spending power as to where to spend the holidays. 32 CU IDOL SELF LEARNING MATERIAL (SLM)

Figure 1.24 International Tourist Every category under the umbrella of the term “hospitality” further contains many different sub-sector and operators. The mere global scale of the industry makes it difficult to provide a conclusive overview without taking up hours of your time. Travel, for instance, encompasses all modes of transportation available to travellers, including coaches, airplanes, vessels, taxis etc. While all sectors are interconnected and reliant on each other, each one of them is facing unique challenges and opportunities in the future. 33 CU IDOL SELF LEARNING MATERIAL (SLM)

Figure 1.25 1.7.5 The importance of innovation in hospitality Going forward, the key for companies looking to defend or expand their current position in the market will be to keep up with the pace of innovation. The emergence of new technologies such as artificial intelligence (AI) and the internet of things (IoT), means that providers are now faced with the challenge of moving their offer into the era of digitalization. The availability of extensive data on each individual guest will make it possible for companies to tailor their offers at a bespoke level, leading to closer and more immersive client interaction. Hotel rooms that automatically adjust the lighting and the temperature to each traveller’s personal preferences can enhance guest experience and thus make it more likely for them to return. Traditional check-in and guest interaction procedures at hotels will likely see a fundamental overhaul. The introduction of voice recognition software, for instance, will enable hotels to automate tasks that would traditionally be performed by a human. Innovative technologies and business models have revolutionized the hospitality and tourism industries. Examples of such innovations are phone-as-key-cards, mobile self-check- in, mobile booking, self-service check-in kiosks, lobby media panels, electronic luggage tags, bring your own device, bring your own content platforms, smartphone boarding passes, hotel service optimization systems, guest device connectivity tools, voice over internet protocol phones that are interconnected with the hotel’s ecosystem (e.g. phones in the guestrooms that guests can use for ordering room service directly from a touchscreen and housekeeping can 34 CU IDOL SELF LEARNING MATERIAL (SLM)

use them to put work orders and the system directly communicates with corresponding departments), wearable devices to identify guests, tablet menus and table reservation systems to name a few. These innovations may take place in the frontline of a service where customers observe the innovation, or they may operate in the backend and be “invisible to consumer”. In some hospitality services, guests interact with the latest gadgets in the lobby of hotels or use their own mobile devices to make plans for dinner or other services. For example, Link Sheraton is a touchscreen device that creates a new experience by interacting with guests and providing them with a new way to explore local tourist attractions and enhance their hotel experience. However, some innovations such as customer relationship management (CRM) and customer intelligence tools are not observed by the guests, but hoteliers can customize and enhance their guests’ experiences using order histories and consumption patterns. This will result in more efficient processes at properties all around the world. While procedures are being streamlined, vehicles, amenities and buildings become smarter and more interactive. The challenge for providers will be to keep alive the human touch that has made hospitality establishments so successful. At the same time, adapting to and using these new technologies will be crucial in the fight for customers in one of the most competitive markets in the world. 1.8 SUMMARY  Hospitality industry plays a vital role in the growth of tourism.  A hospitality industry is the oldest business in the history.  The purpose for travel and tourism is to stay and explore a particular place or location.  Early 1800- The first modern Hotel built in England. With full complement of facilities was the Royal Hotel in Plymouth.  Accommodation, Transportation, Food and beverage are the key factors in tourism and hospitality industry  Due to globalisation travel industry has a rapid growth in the past two decades.  Over the last two Decades, international departures have more than doubled from around 600million to more than 1.4 billion in 2016. 1.9 KEYWORD  Hospitality - Hospitality is the relationship between a guest and a host, where in the host receives the guest with goodwill, including the reception and entertainment of guests, visitors, or strangers. 35 CU IDOL SELF LEARNING MATERIAL (SLM)

 Tourism - Tourism is travel for pleasure or business; also, the theory and practice of touring, the business of attracting, accommodating, and entertaining tourists, and the business of operating tours.  Hotel-A hotel is an establishment that provides paid lodging on a short-term basis. Facilities provided inside a hotel room may range from a modest-quality mattress in a small room to large suites  Motel - A motel or motor lodge is a hotel designed for motorists, usually having each room entered directly from the parking area for motor vehicles rather than through a central lobby.  Budget hotels - A hotel that provides minimum amenities and services for a lower price than a regular hotel in the area. This type of hotel provides clean rooms that are safe and meet the basic needs of a guest  Boutique Hotels - A boutique hotel is a small hotel which typically has between 10 and 100 rooms in settings with upscale accommodations and individualized unique selling points.  AI – Artificial intelligence  IOT – Internet of things  OTA- On-line travel Agencies 1.10 LEARNING ACTIVITY 1. Learn about some historical places converted into hotels in our country and the idea behind the same. ___________________________________________________________________________ ___________________________________________________________________________ 1.11 UNIT END QUESTIONS 36 A. Descriptive Questions Short Questions 1. Define hospitality management? 2. State the digital era in hospitality? 3. Describe the growth of Travel Industry? 4. What is the Xenia Philosophy? 5. What are the 3 types of Hotels in general? Long Questions CU IDOL SELF LEARNING MATERIAL (SLM)

1. Explain in detail the changing and modern era of hospitality industry? 37 2. Explain the divisions of Hospitality industry? 3. Please give the advantage and disadvantages of hospitality industry 4. What are different factors of Marketing Mix? 5. Explain in detail the importance of innovation in hospitality industry? B. Multiple choice Questions 1. Paid accommodation for a short duration of stay a. Hotel b. Motel c. Dharamshala d. Cabana 2. Hotel’s revenue is generated from a. Restaurant b. Front Office c. House Keeping d. Sales of room 3. Construction of Hotels started in a. Early 20th Century b. 18th Century c. 19th Century d. None of these 4. Hotels located in Tourist destination like hill station, beaches and countryside are a. Resorts b. Floatels c. Motels d. Apartments 5. Hotels designed for Motorists are called ………. a. Hotels b. Motels c. Boutiques d. Lodges 6. Hospitality is defined as a. Receiving guest in a friendly Manner CU IDOL SELF LEARNING MATERIAL (SLM)

b. Receiving guest in an unfriendly Manner c. Guest treated as strangers d. None of these Answer 1-a, 2-d, 3-a, 4-a, 5-b, 6-a 1.12 REFERENCES Reference books  Bhatnagar, S.K., Front Office Management, Frank Bros, India, 2109  Global Tourism and Hospitality by Andrews.  Managing Front Office Operations – Michael L Kasarana& Richard Brooks.  Introduction to Hospitality - I & II – Dennis Foster Textbooks  Introduction to Hospitality Management, Walker, Fourth Edition (2112). Pearson ISBN: 978-0-13-295994-0.  Enz, Canina and Walsh (2101). Hotel Industry Averages: An Inaccurate Tool for Measuring Performance. The Cornell Hotel and Restaurant Administration Quarterly. 38 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT 2: DIFFERENT TYPES OF ACCOMMODATION STRUCTURE 2.0. Learning Objectives 2.1 Introduction 2.2. Meaning of hotels. 2.3 History of Hotels 2.3.1. Ancient era 2.3.2. Grand Tour 2.3.3 Modern era 2.4. Standard Classification of Hotels 2.5. Heritage Hotels 2.6. Hotels based on size 2.7. Hotels Based on Location 2.8. Classification Based on Clients 2.9. Classification Based on Ownership 2.9.1 Hotels Located in Historical, Cultural and Natural Sites 2.9.2 Hotel Traffic Plans 2.9.3 Types of Rooms 2.10 Summary 2.11 Keywords 2.12 Learning Activity 2.13 Unit End Questions 2.14 References 2.0 LEARNING OBJECTIVES After learning this unit, the student will be able to  Explain the General types of accommodation units  Classify Special divisions in accommodation unit  Analyse about the specialized divisions of accommodation industry.  Familiarize with spa, disco, laundry, etc. 39 CU IDOL SELF LEARNING MATERIAL (SLM)

2.1 INTRODUCTION The hotel industry is one of the most important components of the wider service industry, catering for customers who require overnight accommodation. It is closely associated with the travel industry and the hospitality industry, although there are notable differences in scope. In this article, you will learn more about the hotel industry, its links to those other service industry sectors, and the range of hotel and guest accommodation types that exist. Broadly speaking, a hotel is a managed building or establishment, which provides guests with a place to stay overnight – on a short-term basis – in exchange for money. The precise features and services provided to guests can vary quite drastically from one hotel to another, and hotel owners generally aim to attract a particular type of customer through their pricing model and marketing strategy, or via the range of services they offer. The word hotel is derived from the French hotel, which refers to a French version of the townhouse. The term hotel was used for the first time by the fifth Duke of Devonshire to name a lodging property in London sometime in AD 1760. Historically, in the United Kingdom, Ireland, and several other countries, a townhouse was the residence of a peer or an aristocrat in the capital of major cities. The word hotel could have also derived from the hostel, which means ‘a place to stay for travellers’ ‘ Hotels are one of the fastest-growing sectors in the tourism sector and it is truly justified as accommodation is the key part in the development of any country or region’s tourism. Tourism and Hotel Industry always go hand in hand and the presence of enough hotels also adds value and quite a lot of factors and punches it within the region’s economy. The Existence of a Hotel is not enough to single-handedly boost a region’s tourism, but they also give out a symptom of health tourism. 40 CU IDOL SELF LEARNING MATERIAL (SLM)

Fig 2.1 Different Types of Accommodation Hotels may be classified on a number of different variables. A hotel’s size is based on the number of guest rooms it has; hotel sizes can range from a small boutique hotel with fewer than 50 rooms to a large resort hotel with more than 1,000 rooms. The location of a hotel can also determine the type of guest served. An airport hotel may be very different from a bed and breakfast or a conference hotel. The level of service provided is also a key variable, ranging from an inexpensive budget or economy hotel, which may have limited services and amenities, to upscale and luxury hotels with full services and a wide range of amenities. What are amenities? They are the extra activities or services available at a hotel beyond the guest room itself. They can include basics such as accessibility or parking, or higher-end options like spas, golf courses, and elegant restaurants. The health of the U.S. hotel industry depends largely on the strength and stability of the national economy and on other economies around the world, as the number of travellers— whether traveling for business or pleasure—increases with economic growth and prosperity. After a global recession in the early 1990s, the United States and other countries recovered in the mid-1990s and continued to prosper going into the late 1990s. The U.S. hotel industry followed this pattern by performing poorly in the early part of the decade and recovering in the latter. The economic turnaround, the emergence of new markets, and the balancing of hotel supply and demand all played a decisive role in the industry's success in the mid- to late 1990s. The U.S. industry experienced a boom in demand in the mid- to late 1990s, posting record sales each year during this period. In 2000, the industry achieved its most profitable year 41 CU IDOL SELF LEARNING MATERIAL (SLM)

ever. However, by 2001 the U.S. economy weakened and terrorist attacks against the United States that September made conditions even worse as business and leisure travel activity fell. According to Hotel & Motel Management, information from Smith Travel Research revealed the industry lost somewhere between $7 billion and $8 billion in room revenue during 2001. This figure was estimated to be much higher when related businesses like food and beverages are factored into the equation. The publication also revealed that more than 400 hotels closed during 2001. In addition, for the most part construction of new hotels ceased. According to some industry analysts, conditions were expected to improve gradually and reach pre-2001 levels sometime in 2004. The type of ownership is also an important variable: many branded hotels are franchised, but many are operated as independent hotels. Owners may manage their own hotels, or many hire a third-party manager. A hotel chain such as Marriott or Hilton may in fact be comprised of several different brands: Marriott currently has 19 different hotel brands, with each name representing a different level of price, service, or target customer segment. There are several industry organizations, such as AAA or TripAdvisor, which can provide consumers with ratings for individual hotels. The period of industry consolidation also was underway by the mid- to late 1990s. In the first half of 1997 alone, the United States reported mergers and acquisitions worth $4.1 billion, twice as much as reported in the first half of 1996. Marriott International made one of the largest acquisitions, purchasing Renaissance Hotel and its holdings such as Renaissance and Ramada International for $1.0 billion. Extended Stay America also bought Studio Plus hotels for $290 million. In addition, Promus Hotel Corporation acquired Doubletree in 1997. Doubletree had previously bought Red Lion, a chain with a strong presence in the Pacific Northwest. By 2002 industry analysts expected consolidation to continue within the industry as chains struggled financially in the wake of a slack economy and the terrorist attacks of September 11, 2001.Different types of hotels and their Characteristics of specific hotel types that have evolved to match the needs of a particular traveller segment. As you can see, hotels adapt and diversify depending on the markets they want and need to attract to stay in business. Market Traveler Type Characteristics Segment Commercial Business High-volume corporate accounts in city or airport properties Stronger demand Monday through Thursday 42 CU IDOL SELF LEARNING MATERIAL (SLM)

Leisure Leisure Purpose for travel includes sightseeing, recreation, or visiting friends and relatives Stronger demand Friday and Saturday nights and all week during holidays and the summer Meetings Corporate groups, Includes meetings, seminars, trade shows, conventions, and groups and gatherings of over 10 people Peak convention Associations, Social, demand is spring and fall Proximity to a conference center and meeting and banquet space increase this Military, Education, market Religious, and Fraternal groups (aka, SMERF) Extended Business and leisure Often offers kitchen facilities and living room spaces stay Bookings are typically more than five nights Often business related (e.g., extended health care, construction projects, corporate projects) Leisure demand driven by a variety of circumstances including family visiting relatives, home renovations, snowbirds escaping winter Table 2.1 2.2 MEANING A hotel is defined by the British Law as a ‘place where bonafide travellers can receive food or shelter, provided he/she is in a position to pay for it and is in a fit condition to be received‘. Hence, a hotel must provide food (and beverage) and lodging to a traveller on payment, but the hotel has the right to refuse if the traveller is not presentable (either drunk, or disorderly, or unkempt) or is not in a position to pay for the services. Alternatively, a hotel may be defined as ‘an establishment whose primary business is to provide lodging facilities to a genuine traveller along with food, beverage, and sometimes recreational facilities too on the chargeable basis ‘. Though there are other establishments such as hospitals, college hostels, prisons, and sanatoriums, which offer accommodation, they do not qualify as hotels, since they do not cater to the specific needs of the traveller. A hotel is an establishment that provides paid accommodation, generally for a short duration of stay. Hotels often provide a number of additional guest services, such as restaurants, bars, swimming pools, healthcare, retail shops; business facilities like conference halls, banquet halls, boardrooms; and space for private parties like birthdays, marriages, kitty parties, etc. Most of the modern hotels nowadays provide the basic facilities in a room- a bed, a cupboard, a small table, weather control (air conditioner or heater), and a bathroom- along with other feature like a telephone with STD/ISD facilities, a television set with cable channel, 43 CU IDOL SELF LEARNING MATERIAL (SLM)

broadband internet connectivity. There might also be a mini bar containing snacks and drinks (the consumption of the same is added to the guest’s bill), and tea and coffee making unit having an electric kettle, cups, spoons, and sachets containing instant coffee, tea bags, sugar, and creamer. If we generally look at the facilities provided inside a hotel room may range a lot and it completely depends on the cost of the room that we opt for and based on the location/ country’s cost of living. The overall facilities ranges from a modest-quality mattress in a small room to large suites with bigger, higher-quality beds, a dresser, upholstered chairs, a refrigerator and other kitchen facilities, a flat screen television ( size also varies), and en- suite bathrooms. Small, lower-priced hotels may offer only the most basic guest services and facilities whereas higher-priced and larger hotels may provide additional guest facilities such as a swimming pool and childcare. It also comes up with a nice common or individual business centre (with computers, printers, and other office equipment), conference and event facilities, tennis or basketball courts, gymnasium, restaurants, day spa, and social function services. Hotel rooms are usually numbered (or named in some smaller hotels and B&Bs) to allow guests to identify their room. Mostly this will go based on which floor it is located and some boutique, high-end hotels have custom decorated rooms with various theme-based furniture and interiors. Meals will be offered as part of a room and board arrangement in some hotels as a package. Machines become a vital part of many hotels and with time we believe they will be crucial for their growth. Today we can already see robots as receptionists and cleaning “staff”. They can give us new towels, bring us food and greet us at the entrance. The hotel rooms themselves are also technically advanced, with voice detection devices and advanced electronics. The only logical next step is the Artificial Intelligence (AI). Although it will probably never completely take over, it will be a major part of the future hotels. One thing we are sure of is that the future of the hotel industry truly is bright. 2.3 HISTORY OF HOTELS The inventions of currency and wheels sometime in the 5th century BC are regarded as the two main factors that led to the emergence of inn-keeping and hospitality as a commercial activity. While Europe can safely be regarded as the cradle of the organized hotel business, it is in the American continent that one sees the evolution of the modern hotel industry over the past century. In 1792 the first publicly held hotel, called the City Hotel, opened in NYC. The first hotel in the present sense of the word, the Tremont House, opened in Boston in 1829. It was a quite remarkable place, that set many “firsts” for the industry. Most notably it was the first hotel with indoor plumbing and indoor toilets and baths. It was also the pioneer in terms of reception as well as everyone’s favourite – free soap. Another big milestone is the creation of the first business hotel, the Buffalo Statler, in 1908. 44 CU IDOL SELF LEARNING MATERIAL (SLM)

1983 was the year when the hotel real estate market came to life. More people were interested in building and buying hotels. The interest in creating more of them grew and, as a matter of fact, hasn’t stopped growing ever since. That is why today we can choose from over 17.5 million guest rooms all around the globe. One big move for the industry was selling the Intercontinental Hotels to the Japanese Seibu Holdings, Inc. by the Grand Metropolitan. It was one of the first major acquisitions that started the trend. From the rudimentary ancient inns to the present-day state-of-art establishment that provides everything under the sun of the modern traveller, the hotel industry has come a long way. The origin and growth of the hotel industry can be broadly studied under the following periods: Grand Modern Tour Era Ancient Era Fig 2.2 Histories of Hotels 2.3.1 Ancient Era The earliest recorded evidence of the hospitality facilities in Europe dates back to 500 BC. An ancient city, such as Corinth in Greece, had a substantial number of establishments that offered food and drink as well as beds to the traveller. The precursor to the modern hotel was the inn of medieval Europe. The inns of the biblical era were of the primitive type, offering a cot or bench in the corner of a room and, at times, even a stable. For a period of about 200 years from the mid-17th century, coaching inns served as a place for lodging for coach travellers. Inns began to cater to richer clients in the mid-18th century. One of the first hotels in a modern sense was opened in Exeter in 1768. Hotels proliferated throughout Western Europe and North America in the early 19th century, and luxury hotels began to spring up in the later part of the 19th century. Travellers used to stay in a large hall. Privacy and personal sanitation were non-existent. In the 3rd century AD, numerous lodging premises mushroomed along with the extensive network of brick-paved roads throughout Europe and minor Asin (part of Asia adjoining Europe). The lodging hotels were known as mansions during that time. These conditions prevailed for several hundred years, until the 45 CU IDOL SELF LEARNING MATERIAL (SLM)

Industrial Revolution in England led to the development of railways and steamship, making travelling more efficient, comfortable, and faster. The Industrial Revolution also brought about a shift in the focus of travel that becomes more business-oriented than educational or social. The lead-in organized hotel-keeping, as we see it today, was taken by the emerging nations of Europe, especially Switzerland. The early establishment was mainly patronized by the aristocracy and took shape in chalets (small cottages) and small hotels that provided a variety of services. Between 1750 and 1825, inns in Britain gained the reputation of being the finest hospitality establishments. 2.3.2 Grand Tour The second half of the eighteenth century, prior to the French Revolution (1780-990, is referred as the ‘golden era of travel ‘as the popularity of the ‘Grand Tour ‘gave a big push to the hotel industry. In those days, a Grand Tour of the European continent constituted as an indispensable element of the education of scions of wealthy families in Britain. As this tour often lasted several years, it was a good business opportunity for the people in prominent cities of France, Italy, Germany, Austria, Switzerland, and Ireland to establish lodging, transportation, and recreation facilities. Far-sighted entrepreneurs, who smelt money in the exercise, developed the skills of the hospitality and pioneered the modern hotel industry. Prominent among the hotels that emerged during the period were Dolder Grand in Zurich, Imperia in Vienna, the Jahreszeiten in Hamburg, and Des Bergues in Geneva. In 1841, a simple cabinet marker, Thomas Cook organized a rail tour from Leicester to Loughborough and immortalized himself as the world’s first tour operator. 2.3.3 Modern Era The improvisation in the mode of transport made journeys safer, easier, and faster, enable 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 Alpine rages. Burgenstock and Giessbach are among the hotels in Switzerland that owe, their existence to the development of the ropeways. The two world wars, especially the second (1939-45) took their toll on the hospitality industry. The massive destruction caused by the war and the resulting economic depression proved to be a major setback to the travel business. The 1950s witnessed a slow and steady growth of travel on the European continent. The development of aircraft and commercial passenger flight across the Atlantic stimulated that across the globe, and in the process accelerated the growth of the hotel industry. But it is the American entrepreneurs who credited with literally changing the face of the hospitality industry with their innovation and aggressive marketing. Prior to the establishment of City Hotel lodging facilities in the American continent was patterned on the European style taverns or inns. The City Hall, 46 CU IDOL SELF LEARNING MATERIAL (SLM)

however, triggered a race among American hoteliers, resulting in the construction of the large hotels. The decade of the great depression in the 1930s witnessed the liquidity of most of the hotels in America. The hotel industry streamlined with the slow and steady growth during the 1940s. The increase in automobile travel in the 1950s led to the rise of ‘motor hotels or motels, a new category in the hotel industry.  The motel which offered free parking facilities served as rest houses for the people travelling between two cities or tourist destination.  The following decades saw the growth of motels on a large scale, and also the introduction of budget hotels that offered basic facilities at half of the rates. Gradually, with the passage of time, they evolved into countrywide and international chains1792 2.4 STANDARD CLASSIFICATION OF HOTELS The star classification system is among the most widely accepted rating of hotels worldwide. Rating of hotels in different countries is done by the government or quasi-government sources, independent rating agencies, or sometimes the hotel operators themselves. The brief description of the various star categories are following as: One-star Hotels These properties are generally small and independently owned, with a family atmosphere. There may be a limited range of facilities the meals may be fairly simple. For example, lunch may not be served, or some bedrooms may not have an en-suite bath or shower. However, maintenance, cleanliness, and comfort would be of an acceptable standard. Two-star Hotels In this class, hotels will typically be small to medium-sized and offer more expensive facilities than one-star hotels. Guests can expect comfortable, well equipped overnight accommodation, usually with an en-suite bath and shower. Reception and other staff will aim for a more professional presentation that at the one-star level and will offer a wider range of straightforward services, including food and beverages. Three-star Hotels At this level, hotels are usually of a size to support higher staffing levels as well as significantly higher quality and range of facilities than at the lower star classifications. Reception and other public areas will be more spacious, and the restaurant will normally also cater to non-residents. 47 CU IDOL SELF LEARNING MATERIAL (SLM)

All bedrooms will have an en-suite bath and shower and will offer a good standard of comfort and equipment, such as a direct dial telephone and toiletries in the bathrooms. Besides room services, some provision for business travellers can be expected. Four-star Hotels Expectations of this level include a degree of luxury as well as quality in the furnishing, décor, and equipment in every area of the hotel. Bedrooms will also usually offer more space than at the lower star levels. They will be well designed with coordinated furnishing and décor. The en-suite bathrooms will have both a bath and shower. There will be a high staff to guest ratio, with provisions of porter services, twenty-four-hour room service, and laundry and dry- cleaning services. The restaurants will demonstrate a serious approach to its cuisine. Five-star Hotels Five-star hotels offer spacious and luxurious accommodation throughout the hotel, matching the best international standards. The interior design should impress with its quality and attention to detail, comfort, and elegance. The furnishing should be immaculate. The services should be formal, well supervised, and flawless in its attention to the guest’s need, without being intrusive. The restaurant will demonstrate a high level of technical skill. The staff will be knowledgeable, helpful, and well versed in all aspects of customer care, combining efficiency with courtesy. 2.5 HERITAGE HOTELS A recent addition to the hotel industry, heritage hotels are properties set in small forts, palaces, or havelis, the mansions of erstwhile royal and aristocratic families. They have added a new dimension to cultural tourism. In a heritage hotel, a visitor is offered rooms that have their own history, is served traditional cuisine toned down to the requirements of international palates, is entertained by folk artists, can participate in activities that allow a glimpse into the heritage of the region and can bask in an atmosphere that lives and breathes of the past. Heritage hotels can further be divided into three types:  Heritage  Heritage Classis  Heritage Grand 2.6 CLASSIFICATION OF HOTELS ON THE BASIS OF SIZE 48 CU IDOL SELF LEARNING MATERIAL (SLM)

The number of guest rooms in a hotel is a criterion to classify hotels. Hotels can be grouped into the following categories on the basis of the number of rooms or the size of the hotel: Small Hotel In India, hotels with twenty-five or less are classified as small hotels. However, in the developed countries of Europe and America, hotels with less than 100 rooms are considered small. These hotels provide clean and comfortable accommodation but may not provide upmarket facilities, such as swimming pool, restaurant, bar etc. Medium Hotel Hotels with twenty-six to a hundred rooms are called medium hotels. However, in developed nations, hotels with up to 300 rooms are termed medium sized. Large Hotel In India, hotels with 101 to 300 guest rooms are regarded as large hotels. Whereas hotels with 400 to 600 rooms are termed as large hotels in the developed world. Very Large Hotel Hotels, with more than 300 guest rooms are known as very large hotels in our country. In developed nations, hotels with 600 to 1,000 rooms may be considered very large. 2.7 CLASSIFICATION OF HOTELS ON THE BASIS OF LOCATION The location of the hotel is one of the major criteria for the traveller to select and patronize a hotel. Hotels may be located in the city centre, suburban areas, natural locations such as hill stations and sea beaches, near the port of entry into a country, etc. They may be classified into the following categories on the basis of their location: Downtown Hotel A downtown hotel is located in the centre of the city within a short distance from the business centre, shopping areas, theatre, public offices, etc. The centre of the city may not necessarily be the geographical centre, but it refers to an area that is considered to be the commercial hub of the city. The room rates in these hotels may be higher than similar hotels in the other areas, so as to cover the huge investment made on land. They are generally preferred by the business clients as they find it convenient to stay close to the place of their business activities. Sub-Urban Hotel As the land cost in the city centre is higher and space is limited, some entrepreneurs build their hotel near the outskirts of the city. Providing similar facilities to the downtown hotels, these hotels are set in suburban areas and have the advantage of quieter surroundings. Such hotels are ideal for people who prefer to stay away from the hustle and bustle of a city. 49 CU IDOL SELF LEARNING MATERIAL (SLM)

The duration of the stay of guests in these hotels may be longer than the at a hotel located in the city. The room rates in such hotels are moderate and may attract the budget travellers. Resort Hotel Hotels that are located at a tourist destination such as hill stations, sea beaches, and countryside are referred to as resort hotels. These hotels have a very calm and natural ambiance. They are mostly away from cities and are located in the pollution-free environment. The room rates in these hotels may range from moderate to high, depending on the additional services offered. These hotels combine stay facilities with leisure activities such as golf, summer and winter support, etc. Some of these hotels are projected as a dream destination to guests who wish to enjoy the beauty of nature and have a memorable holiday. The occupancy in the resorts is normally higher during the vacation time and weekend when guests want to take a break from their weekly routine. Airport Hotel Airport hotel is situated in the vicinity and other ports of entry. Offering all the services of the commercial hotel, these hotels are generally patronized by the passengers who need a stopover en-route journey. Motel The word ‘motel ‘is formed by the merging of two words ‘motor ‘and ‘hotel ‘. They are located primarily in the highways and provide modest lodgings to highway travellers. The development of extensive road networks in the early twentieth century led to an increase in the people traveling in their own vehicles. The phenomenon was quite common in the American European continents. The traveller who was traveling in their own vehicles needed a neat and clean accommodation for the night, so, the motel concept came into existence. Flotel As the name suggests, flotels are types of lodging properties that float on the water. This category consists of all lodging properties that are built on the top of rafts or semi- submersible platforms and includes cruise liners and houseboats. Some of them provide luxurious accommodation, along with food and beverage facilities to guests. 2.8 CLASSIFICATION OF HOTELS ON THE BASIS OF CLIENTS The hotel caters to the need of its guests. Every individual or a group of people who patronize a hotel has a different set of requirements. While some would prefer luxurious 50 CU IDOL SELF LEARNING MATERIAL (SLM)