PEST Analysis on Hospitality sector In India

Aureole Institute of Business ManagementBusiness Environment

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Topic

Environmental Scanning for (Hospitality & Tourism) sector

Name: AMAN BHATTACHARYARoll No. A209Section ‘A’Subject: Business EnvironmentFaculty: Prof. SukalpaDate of Submission: 10-04-2010

Short Project Submitted in partial fulfillment for Semester II evaluationOf MBA Programme

At AIBM,PuneYear: 2010


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Introduction

Tourism in India is sunrise industry. Tourism earned more than 15000 crores of

foreign exchange in 2008-09 and it is 2nd largest foreign exchange for the country.

Over 17 crore domestic tourist have traveled within India and over 9.5 lacs tourist

visited India in 2009 and more expected in the fiscal year of 2010.

State and city description

Lucknow is a heart of Uttar Pradesh. As an Uttar Pradesh is the base of mugals in

early century it is known as city of muglai styles, delicious kebabs and there superior

hospitality the Uttar Pradesh. The government announce that within 10 -15 year

lucknow going to be metro city because of the business tourism growth is the state is

higher than other major city such as Mumbai, New Delhi, Bangalore, Hyderabad,

Goa. Goa comes on second place after Agra (UP) in tourist destination in India.

Along with Lucknow and Agra there are few city famous for tourist destination are

Agra, Allahabad, Varanasi, Fatehpur sikri, Ayodha and Ghaziabad etc. It is going to

connect golden triangle of india.

The sight-seeing in the city are Bara Imambara , Rumi Darwaza or The Turkish

Gate, British Residency, Shah Najaf Imambara, Tarunvali Kothi, Muhammad Ali's

Imambara, Juma Masjid, Qaiser Bagh Palace, La Martiniere-A Funerary Monument,

Lucknow’s Cultural History Remains Unrivaled, zoo and that all give growth of the

tourist in the state /city. It also includes business meetings.

In Uttar Pradesh there are two ITDC offices one in Lucknow and another one in

Agra. Lucknow coming with lots of industrial industry and Foreign Company, and it

obvious more foreign companies more tourist and more hotels and motels growth is

higher. In the city there are many competitors for hotels and motels past 15 year

such as Taj Lucknow, the Clarke, park inn, Hotel Shanti Lodge, Hotel Milan,

Hotel Harsit, Hotel Deep Avadh, Hotel Syona Residencym, Hotel Uday Raj

Hotel Amar Prem, Hotel Lips, Hotel Pradeep Palace, Triloki Hotel, the oberoi and

orchid going to launch there five star property in the city within three to four years.

While there are the major areas are hazratganj, gomtinagar, and indranagar, aligang,

and MG road.

The major industry in Lucknow is Sahara India pariwar ltd. Sahara India Pariwar is a

major entity on the corporate scene having diversified business interests that include

http://www.google.co.in/search?hl=en&rlz=1G1GGLQ_ENIN275&sa=X&oi=spell&resnum=0&ct=result&cd=1&q=ghaziabad&spell=1

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Finance, Infrastructure & Housing, Media & Entertainment, Consumer Products,

Manufacturing, Services and Trading in Lucknow.

About the hotel.

The hotel Imperial nawab (It is nawabi style hotel) going too situated in the heart of

Lucknow Gomtinagar. The property is located only three kilometers away from the

excitement of the city. The lobby of the Imperial Nawab Entering the gleaming

marble and granite lobby from the excitement and the bustle of the city; guests are

greeted in a world of hospitality. The lobby resplendent with Italian marbles and it

scattered with sofa and mugal Kaleen (carpets) the comfort of beautifully and

appointed carved ceilings of the lobby give an ancient look of the empire of nawabs

the atmosphere of the hotel give grandeur of the past. The hotel has 75 guest rooms

(standard, deluxe, suit rooms) have dial telephone colour television (LCD) and DTH

facility and many other amenities are available in the rooms and a special collection

of personal care amenities.

The guest rooms offer nawabi style and comfort to the guest hotel has 2 banquets

hall for marriage parties and conference, health club with Jacuzzi, Sauna Bath for

male and female separate, Imperial Nawab has 2 restaurants one is Multi cuisine

restaurant and second one is contain cuisine of golden triangle of India (Golden

Triangle) theme restaurant.it also have special bar also. Janan café is a 24 hr coffee

shop.

Other hotel facilities include, are swimming pool business center, travel desk,

parking facilities, room service, laundry facilities, doctor on call and all . Airport

12kms and Railway Station 14 km from the hotel.

If everything goes according to the plan with other business partners the hotel

started construction in the year of 2014.

Business Partners

Present Partners Expected Future partner

Aman Bhattacharya Ranjit Lutte

Ashwani Kumar Nilesh Pullarwar

Chetan satpute Shesh Mani

Yash Jadhav Avi Kumar Rangnenewar

Manoj Kumar Prince Maitte


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Aim: -To be world finest hospitality segment.

Objective: - To give prom service for something unique perspective .

Environmental scanning with the help of PEST analysis

Now we have to see what is PEST analysis? And how it is influence in to the field of

Hospitality service?

PEST analysis of any industry investigates the important factors that affect the

industry and influence the companies operating in the sector. PEST stands for

Political, Economic, Social and Technological analysis. The PEST Analysis is a tool

to analyse the forces that drive the industry and how those factors can influence the

industry.

Political Analysis = It’s include government regulation and legal issue of the

central government.

Employment Law & Act’s in Hospitality Sector:-

The Factories Act, 1948

Objectives

To ensure adequate safety measures and to promote the health and welfare

of the workers employed in factories.

To prevent haphazard growth of factories through the provisions related to the

approval of plans before the creation of a factory.

Scope and coverage

Regulates working condition in factories.

Basic minimum requirements for ensuring safety, health and welfare of

workers.

Applicable to all workers.

Applicable to all factories using power and employing 10 or more workers,

and if not using power, employing 20 or more workers on any day of the

preceding 12 months.

Main provisions


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Compulsory approval, licensing and registration of factories.

Health measures.

Safety measures.

Welfare measures.

Working hours.

Employment of women and young persons.

Annual leave provision.

Accident and occupational diseases.

Dangerous operations.

Penalties.

Obligations and rights of employees.

When to consult and refer

On starting a factory.

Throughout the life of the factory.

The Minimum Wages Act, 1948

Objectives

To determine the minimum wages in industry and trade where labour

organisations are non-existent or ineffective.

Scope and coverage

Applicable to all employees engaged to do any work, skilled, unskilled manual

or clerical, in a scheduled employment, including out-workers.

Fixation of minimum wages.

Main provisions

Fixation of minimum wage of employees.

Procedure for fixing and revising minimum wages.

Obligation of employees.

Rights of workers.


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At the time of fixation of salary of new/existing employees.

The Payment of Wages Act, 1936

Objectives

To ensure regular and prompt payment of wages and to prevent the

exploitation of a wage earner by prohibiting arbitrary fines and deductions

from his wages.

Scope and coverage

Application for payment of wages to persons employed in any factory.

Not applicable to wages which average Rs 1600/- ($35.83) per month or

more.

Wages include all remuneration, bonus, or sums payable for termination of

service, but do not include house rent reimbursement, light vehicle charges,

medical expenses, TA, etc.

Main provisions

Responsibility of the employer for payment of wages and fixing the wage

period.

Procedures and time period in wage payment.

Payment of wages to discharged workers.

Permissible deductions from wages.

Nominations to be made by employees.

Penalties for contravention of the Act.

Equal remuneration for men and women.

Obligations and rights of employers.




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Deciding wages and salary administration at all times.

The Employees Provident Funds and Misc. Provisions Act, 1952

Objectives

To make provisions for the future of the industrial worker after he retires or for

his dependents in the case of his early death.

Compulsory Provident Fund

Family Pension

Deposit linked insurance

Scope and coverage

Application to factories and establishments employing 20 or more persons.

Can be made applicable by central government to establishments employing

less than 20 persons or if the majority of employees agree.

Excludes establishments employing 50 or more persons or 20 or more

persons but less than 50 persons, until the expiry of three years in the case of

the former, and five years in the case of the former, and five years in the case

of the latter, from the date of setting up of establishment.

Applicable to all persons who are employed directly or indirectly through

contractors in any kind of work.

Eligibility

Employees drawing pay not exceeding Rs. 3500/- ($78.37) per month.

Benefits:

Apart from terminal disbursal of non-refundable withdrawals for Life Insurance

Policies

House building

Medical treatment

Marriage

Higher education

Family pension


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Retirement-cum-withdrawal benefits

Deposit linked insurance Amount equal to the average balance in Provident

Fund of deceased subject to a maximum of Rs. 25,000/- ($559.79).

Workmen’s Compensation Act, 1923

To provide compensation for workmen in cases of industrial accidental / occupational

diseases in the course of employment resulting in disablement or death. Coverage

for persons employed in Factories, Mines, Plantations, the Railways and others

mentioned in Schedule II of the Act.

Benefits:

Compensation for Death

Minimum - Rs. 20,000 ($447.83) Maximum - Rs. 1,14,000 ($2,552.62)

Compensation for Permanent disablement

Minimum - Rs. 24,000 ($537.4) Maximum - Rs. 70,000 ($1567.4)

Temporary disablement

50% of wages for a maximum period of 5 years.

The Contract Labour (Regulation & Abolition) Act, 1970

Not to be required to work beyond 9 hours between 6 A.M. and 7 P.M.

With the exception of midwives and nurses in plantations.

The Inter-state Migrant Workmen (Regulation of Employment and Conditions

of Service) Act, 1979

Separate toilets and washing facilities to be provided in employment covered

by the 3rd and 6th laws.

Maternity Benefit Act, 1961

Maternity benefits to be provided on completion of 80 days working.

Not required to work during six weeks immediately following the day of

delivery or miscarriage.

No work of arduous nature, long hours of standing likely to interfere with

pregnancy/normal development of foetus or may cause miscarriage or likely


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to affect health to be given for a period of one month immediately preceding

the period of six weeks before delivery.

On medical certificate, advance maternity benefit to be allowed.

Rs. 250 ($5.6) as medical bonus to be given in case when no prenatal

confinement and post-natal care is provided free of charge.

Equal Remuneration Act, 1976

Payment of equal remuneration to men and women workers for same or

similar nature of work protected under the Act and also under the provisions

at ISMW Act, mentioned above.

No discrimination permissible in recruitment and service conditions except

where employment of women is prohibited or restricted by or under any law.

The Children (Pledging of Labour) Act, 1933

Any agreement to pledge the labour of children is void.

The Bidi and Cigar Workers (Conditions of Employment) Act, 1966

Employment of children under 14 years of age prohibited under the laws at Sl.

Nos. 2 to 5.

Except in the process of family based work or recognised school-based

activities, children not permitted to work in occupations connected with:

Passenger, goods mail transport by Railway Cinder picking, cleaning of ash

pits Building operations, construction Catering establishments in Railway

premises or port limits Beedi making Carpet weaving Cement manufacturing

Cloth printing Dyeing, weaving Manufacture of matches, explosives, fireworks

Mica cutting, splitting Wool cleaning

In occupations and processes other than the above mentioned, work by

children is permissible only for six hours between 8.00 A.M. and 7.00 P.M.

with one day's weekly rest.

Occupier of establishment employing children to give notice to local Inspector

and maintain prescribed register.


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The Payment of Gratuity Act, 1972

Objective

To provide for payment of gratuity on ceasing to hold office

Coverage

Factories, Mines, Oil fields, Plantations, Ports, Railway Companies, Shops &

Commercial Establishments and to other establishments to which the

Government extends the law.

Eligibility

Employees drawing wages not exceeding R. 3500/- ($78.37) per month.

Benefits

15 days wages for every completed year of service or part thereof in excess

of six months subject to a maximum of Rs. 50,000 ($119.58)

Employees State Insurance Act, 1948

Objective

To provide for health cover, Medical care and Cash benefits for

Sickness

Maternity

Employment injury

Pensions to dependents in case of Death (or) Employment injury

Eligibility

Employees drawing wages not exceeding Rs. 3000/- ($67.17) per month.

Benefits

Compensation for Death Minimum - Rs. 20,000 ($447.83 Maximum) - Rs.

1,14,000 ($2552.62)


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Compensation for Permanent disablement Minimum - Rs. 24,000 ($537.4)

Maximum - Rs (70,000) $1,567.4

Temporary disablement 50% of wages for a maximum period of 5 years.

The Payment of Bonus Act, 1965

Objectives

To provide statutory obligations for payment of bonus to persons employed in

certain establishments on the basis of profits or productivity.

Scope and Coverage

Applicable all over India to factories under the Factories Act and to other

establishments employing 20 or persons on any day during a year.

Government can extend its coverage to establishments employing between

10 and 20 workers.

Covers all workers including supervisors, managers, administrators, technical

and clerical staff employed on salary or wages not exceeding Rs 2,500

($55.97) per month.

Main Provision

Eligibility for bonus.

Payment of minimum and maximum bonus.

Time limit for payment of bonus.

Deductions from bonus.

Computation of gross profits and available allocable surplus.

Rights of employees.

When to Consult and Refer

When the factory if registered under the Factories Act.

When the number of employees in the establishment reaches 20 or above.

When calculating the bonus.


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The Shops and Establishments Act, 1953

Objectives

To provide statutory obligation and rights to employees and employers in the

unorganized sector of employment, i.e., shops and establishments.

Scope and Coverage

A state legislation; each state has framed its own rules for the Act.

Applicable to all persons employed in an establishments with or without

wages, except the members of the employer's family.

State government can exempt, either permanently or for a specified period,

any establishments from all or any provisions of this Act.

Main Provisions

Compulsory registration of shop/establishment within thirty days of

commencement of work.

Communications of closure of the establishment within 15 days from the

closing of the establishment.

Lays down the hours of work per day and week.

Lays down guidelines for spread-over, rest interval, opening and closing

hours, closed days, national and religious holidays, overtime work.

Rules for employment of children, young persons and women

Rules for annual leave, maternity leave, sickness and casual leave, etc.

Rules for employment and termination of service.

Maintenance of registers and records and display of notices.

Obligations of employers.

Obligations of employees.


At the time of start of an enterprise.

When framing personnel policies and rules.


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The Trade Unions Act, 1926

Objective

To confer a legal and corporate status on registered trade unions.

Scope and Coverage

Applicable to unions of workers as well as associations of employers.

Extends to the whole of India.

A central legislation but administered and enforced by the state governments.

Main Provisions

Defines trade union.

Registration of a trade union by any seven or nine workers of an

establishment on applying with a copy of the rules of the union, the name and

address, and the list of office bearers.

Cancellation and dissolution of trade unions.

Obligations of registered trade unions.

Rights of registered trade unions.


At the time of start of an enterprise.

Throughout the running of the enterprise.

The Industrial Disputes Act

Objectives

To provide a machinery for peaceful resolution of disputes and to promote

harmonious relation between employers and workers.


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Scope and coverage

Applicable to all industrial and commercial establishments

Covers all workers and supervisors drawing salaries up to Rs. 1600/- ($35.82)

per month.

Not an applicable to person employed in managerial and administrative

capacities.

Main provisions

Defines industry, industrial dispute, layoff, lockout, retrenchment, trade union,

strike, wages. workman, etc.

Provides machinery for investigating and settling disputes through works

committees, conciliation officers, boards of conciliation, courts of enquiry,

labour courts, tribunals and voluntary arbitration.

Reference of dispute for adjudication.

Awards of labour courts and tribunals.

Payment of wages to workers pending proceedings in High Courts.

Rights of appeal.

Settlements in outside conciliation.

Notice of change in employment conditions.

Protection of workmen during pendency of proceedings

Strike and lockout procedures.

Lay-off compensation.

Retrenchment compensation.

Proceedings for retrenchment.

Compensation to workmen in case of transfer of undertakings.

Closure procedures.

Reopening of closed undertakings.

Unfair labour practices.

Recovery of money due from employer.

Penalties.



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In the political factor licencing plays an important factor in this political hand plays a

vital role in it success. It will cost lacks of Indian rupees to get the licence.

Approval and licensing of the hotel

Registration is made of all accommodation utilized by the tourists .the work of

registration is done or entrusted to a government or statutory body.

The hotel has to be eligible to various facial relief and benefits only after the hotel

accorded by the government from the point of view the hotel is suitable for the tourist

or not, after approved by the government it get worldwide publicity through tourist.

Publicity and promotion abroad under hotel incentive quota scheme.

The basic requirements for approval of the hotels are: -

1) Each and every functioning hotel should have at least 10 bedrooms.

2) The area of the restrooms /bath rooms.

3) Management must agree to abide by the regular condition by the government.

There is few features for approvals of the functioning hotel are: -

1) General feature in this building should be constructed and the locality the

approach should be attached 50% to 75% bathrooms with all modern facilities.

2) Facilities front deck should be in conformity with the guideline and total security,

well-equipped kitchen and restaurant, and hygienic.

3) Service should be courteous and efficient staff with proper grooming and

hygienic uniforms, housekeeping at the hotel keeping good quality of linens and

machineries.

There are few criteria for approval are: -

Good location of the hotel, fully furnished guest rooms, well occupied bath rooms,

well occupied kitchen utensil, personal hygiene, comfortable and attractive dining

hall, good management, housekeeping and maintenance, front desk, and special

facilities by the hotel I.e. doctor on call, travel desk, saloon for gents and ladies,

handicraft and all.

===============================================================

The Uttar Pradesh Liquor License Rules, 1976 and 1986 act.

License required for the opening a hotels.


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The license is required for the hotels are: -

Building license: The application for obtaining a license for building hotel is to be

made on the prescribe form giving particular pertaining to name of

establishment ,location of the premises, name of proprietor /partner ,father

name ,caste, residential address, name of the keeper ,number of stories ,year of

grant of original license , last year of license number of bed of license , size of the

rooms ,number of workers etc, after that local municipal authorities will a notice for

the payment amount of license under the bye- laws after payment the local authority

issue the license.

Eating-house: The application has to be made separately for each eating-house

indicating the name and address of license in term of local municipal health

authorities. Certificate is to be issued in the name of officer who has been nominated

by the management. It is for the food license that serve in the hotel.

Bars L-3,L-5,L-20 : L–3 service of liquor in a hotel ( to resident in there rooms),

L-5 service of liquor in a bar / restaurant to a hotels, L-20 temporary arrangements

for service of liquor are required inside the licensed premises of L-3, L-4, L-5, L-19

and L-19 A( for private parties).

Swimming pool: It has to be registered by the police certified by municipal health

authority.

Fire prevention and fire safety act, 1986: Chief fire officer of a particular area

issuing authority, all the hotel required to obtain from DFS before applying for

renewal of licenses from the police.

Prevention of food adulteration: Department of health is issuing authority for food

of eating-house is food is hygienic.

Elevators: Inspector of lifts Lucknow administration office of the electrical inspector

is issuing authority. These licenses need to be renewing every year.

Generating: UPMC issuing authority for license.

Boilers: A license is issued by the UPMC under factories act.

Cold storage: The deputy senior marketing development officer of the directorate

issues a license.

Foreigners’ registration : Under police act all foreigners staying in the hotel will

have to be registered within 24 hours in police headquarters.


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E.S.I: where employees are covered under factories act such employees will be

covered by the E.S.I.

E.P.F: This is a register license with the E.P.F authority.

Foreign exchange license: Reserve bank of India issuing the license, by the act of

1973.

Weight and measure: Inspector of weight and measures department, of a

particular state issuing authority, once in a year, all weighing scales/machines,

measuring jar etc, are required to be calibrated and stamped by the authorized

agency.

Music license: Local authority or Municipal Corporation issuing license.

Insurance health and building: General insurance /life insurance. Is the using

authority .the following insurance are to be taken by hotels.

1) Insurance against fire, floods ,earth quakes, civil riots, malicious risk etc

2) Insurance against cash in safe, burglary and house breaking.

3) Insurance against third party risk.

Nsu (national specialty underwriters) is leading insurance company in the world

Nsu sets the standard when it comes to property and casualty insurance for the

hospitality industry.

Nsu offering business insurance for the hospitality industry. Insurance coverage

services include health insurance policy services, auto insurance coverage for

businesses, business health insurance services, and various other insurance policy

services for businesses; along with the health insurance coverage and liability

insurance services designed to suit your hotel or casino.

Economical Analysis

While operating a hotel generally will say they like inflation because they can raise

rates quickly, keep in mind there are two sides to this. Costs will inflate along with

wages and interest rates inevitably will rise. Just look at the yield, which is at the

steepest upward slope ever. This means eventually interest rates will be high. That

will be necessary to save the Indian economic from collapse in the world market.


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Impact of India's economic growth on Tourism

Indian tourism receipts combined with better passenger transport systems and

customized food and lodging preferences taken into consideration by exclusive tour

operators has meant a niche segment of the country's top travel agencies generating

considerable income for their industry. No wonder, as things stand, tourism has

become the number one export earner, ahead of automotive products, chemicals,

petroleum and food for India and this would not have been possible without the

combining of governmental, community and private industry powers through

diversification in the economy.

This diversification of economy is a sign of health for India as a developing nation

fast emerging as a major player in the tourism sector, which has got a shot in the

arm thanks to better management at local and urban levels. The only issue of

concern is that should India or any of its major tourism generating regions become

dependent for its economic survival upon one industry, it can put major stress upon

this sector and its people, who may be compelled to perform well consistently. One

solution for easing the burden of India's welcome economic growth off the shoulders

of the locals is for our developing country to explore other resources, apart from

embracing specialized tourism pockets, as a way to boost the economy.

Social Analysis= It’s include demographic and culture aspects of the society.

Trends & Developments in Hospitality Sector:

The year 2003 was an outstanding year in terms of inbound tourism, with tourist

arrivals reaching 2.73 million. The strong growth in tourist arrivals in 2003 (especially

in the first half of the year) is partly attributable to the outbreak of SARS in East Asia,

as well as the war on Iraq, which resulted in India being perceived as a safe region

To visit. The more fundamental reason, however, relates to a strong sense of

business and investment confidence in India: inspired by India’s strong GDP

performance, and initiatives taken by the erstwhile Prime Minister, to make peace

with Pakistan, strengthen ties with the developed world and open sectors of the

economy to private sector/foreign investment.

Significantly, the bulk of international arrivals in India, both in 2003 and 2004, have

been business travellers. Domestic travel, both business and leisure, also benefited

from a thriving economy. Prior to being voted out of power, the NDA government


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implemented certain important measures to provide a much-needed boost to travel &

tourism. These included the abolishment of the inland air travel tax of 15%; reduction

in excise duty on aviation turbine fuel to8%; and removal of a number of restrictions

on outbound chartered

Flights, including those relating to frequency and size of aircraft. The provision

included allowing Indian charters to land at all airports in the country, and Indian

passport holders to travel on inbound charters. The government also launched the

Incredible India campaign, which has been successful in launching the ‘Brand India’

image. The new government, it appears, is taking active interest in developing

tourism in India. The continued Incredible India campaign has had a strongly positive

impact on tourist arrivals in 2004. Definite efforts are being made to communicate

the Brand India message: India made its presence strongly felt at the WTTC

promoted Global Travel & Tourism Summit held in Doha, Qatar in May this year.

The five cultural trends affecting the hotel industry

Understanding consumers - expectations is paramount to delivering the type of

hospitality experience that will bring repeat business and earn excellent world-of-

mouth recommendations. These expectations are being driving by five major cultural

trends, according to Daniel Levine, founder, Avant-Guide. These trends are:

Exclusivity through personalization and localization—consumers expect to be

catered to for their hospitality needs.

Upscale design—Design no longer is viewed as a luxury, but a trend to be honored.

Control and consumer transparency - consumers want to feel they are in control of

their hospitality experience, whether it be using price comparison sites, placing live

phone pictures online for others to see at websites like ComVu.com, or posting

reviews of services on a website like Consumerist.com.

Empathy and social networking - This is the intersection between real and virtual

worlds. Various companies are offering networking opportunities from choosing your

cab-sharing partner to another passenger on the same plane to invitation-only meet

spaces and designed to bring like-minded travellers together. Hotels, particularly, are

a natural and organic place for social networking.

Abundance-The wealth of opportunities to service micro niches, whether it be the

Millennial or over 50s—allows personalization of services and offerings.


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Finally, Levine points out that hotels need to be seen as being dedicated to green

initiatives in order to appeal to travellers.

GLOBALIZATION VS LOCALIZATION

Are globalization and localization competing strategies? No. “Any business needs to

think about both,” Globalization is here to stay as evidenced by changes in

demographics and affluence. For instance, Russia is becoming the biggest

European market while India, China and other Asian countries are emerging as

important markets, too. In all of these regions, there is a huge rise in an affluent

middle class who will be interested in travel.

Technology Analysis

With the advancement of technology, the way hotels receive reservations is

changing. In fact, there are so many new companies and even new terminology; it is

hard to understand the tremendous amount of technology that comes between the

guest and the hotel.

First, some basic information about how technology has developed. To go back to

the times before electronic communications, a guest probably wrote to the hotel to

request lodging. Then come the telephone and over time, middlemen known as

travel agents intervened between the guest and the hotel.

Travel agents

First begun as authorized ticket agents for airlines, travel agents were also trained to

purchase rail, ship, hotels, attractions, and rental cars. If a client wanted to reserve a

hotel, agents referred to paper documents (such as the Red Book or Hotel and

Travel Index) for information. Agents

Were happy to call hotels to get more detailed information, but reservations were

made manually and the client had to wait for a confirmation by mail. With the advent

of computers, the airlines allowed travel agents to view their flight inventories and

rates in real time. Soon, the airlines added hotels and car rental companies to their

computers so that agents could book the entire guest’s travel itinerary through their

computer. Today, most

In Indian travel agencies are affiliated with one or more airline system and

domestically book more than 70% of their hotel reservations electronically.


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Hotel connection

Meanwhile, each hotel received these calls at the property level. “In the days when

the only way to reserve a room was to call the hotel directly, most hotels had

between one to six people available to answer calls. In the late 1980’s, the Taj

Corporation was the first hotel in India to install an 800-number answered at a

reservation center (National & International). This was a more efficient way to take

reservations because there was a larger number of calls and they were better able to

handle the peaks and valleys of call volume.

In this environment, there were a larger number of agents available to take

reservations. In addition, the 800-center provided around-the-clock capability to book

Sheraton regardless of which time zone the call originated.” Other hotel companies

soon followed suit. These reservation canters were not computerized until the late

1970’s and early 1980’s.

Advancing technology

Each airline system maintains its own database and must be managed separately by

the hotel reservation center, but the communication link is with just one interface.

This all happen automatically and hopefully all the different databases stay in sync.

Airline systems were still limited in how they could display hotels in their systems,

and today further technological developments have been made to allow the travel

agent direct access to the hotel reservation system’s database.

This is called seamless connectivity. For instance, by using different keystrokes on

Sabre, a travel agent can alternate out of the Sabre screen to get the same real time,

descriptive information from a hotel’s central reservation database as the hotel

company’s CRS reservation agent. This seamless connectivity gives travel agents

detailed product information about the hotel and various rates that previously were

not available in the limited descriptive information permitted by an airline system.

Technology is changing so rapidly that it is difficult to predict what will happen even

in the near future. But in a related article TRC examines other ways for a guest to

reserve a hotel room. It could soon happen that if a hotel cannot be booked

electronically from a customer’s home, the hotel will miss an important new and

rapidly growing source of reservations.


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CURRENT & FUTURE TRENDS

JOINT VENTURES

MNC Hotel Industry giants are flocking India and forging Joint Ventures to earn their

share of pie in the race. Government has approved 300 hotel projects, nearly half of

which are in the luxury range.

E-BUSINESS

One of the top strategies for hotel e-business is evolving from selling to engaging the

customer. Hoteliers need to think more like retailers. To succeed, hoteliers need to

fulfill the experience expected by customers, not just think of them as heads in a

bed. Another strategy is engaging the customer through social computing, which is

the fifth generation of electronic distribution. Travel plays a big role in social

computing, making social computing a blend of marketing and distribution, The sixth

generation for electronic distribution is mobile technology. Mobile phones are

becoming ubiquitous in many countries. Travelers are an ideal group for mobile-

based

Services and activities frequent travelers are the ones who find the most utility from

using mobile services. Some of the opportunities center on the five important trends

affecting hotel e-business. These trends are: more demanding consumers; more

complex distribution channels; changing business models where companies must

give more but expect less in return; an emphasis on technology and richer content;

and a change in the structure of hotel e-business.


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GROWTH OF OTHER INDUSTRIES

With the USD 23 billion software services sector pushing the Indian economy

skywards, more and more IT professionals are flocking to Indian metro cities. 'Hotel

Industry in India' is set to grow at 24% a year. This figure will skyrocket in 2010,

when Delhi hosts the Commonwealth Games. A major reason for the growing

demand for hotel rooms is the underlying boom in the economy, particularly the

growth in the IT and ITES industries. The overall growth outlook appears buoyant

and much of this growth will be driven by the BPO explosion, IT, Telecom and

energy sectors.

The opening up of the aviation industry in India has resulted in exciting opportunities

for the hotel industry. The various emerging concepts in India such as service

apartments, spas, medical tourism, wildlife resorts.


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Conclusion

It can be seen clearly that PEST analysis gives an organisation a clear advantage

for the future by predicting changes in the external environment. This gives them the

opportunity to prepare for the change and, for example in the event of a high

economy, take full advantage and capitalise on this change. The number of macro-

environmental factors is virtually unlimited. In practise, an organisation must prioritise

and monitor those factors that influence its industry.

Even so, it may be difficult to predict future trends with an exceptional level

Documents

PEST Analysis on Hospitality sector In India