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Sample Copy. Not For Distribution.

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ENTREPRENEURSHIP IN THE HOSPITALITY,

TOURISM AND LEISURE INDUSTRIES

MAVERICK MINDS


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Publishing-in-support-of,

EDUCREATION PUBLISHING

RZ 94, Sector - 6, Dwarka, New Delhi - 110075

Shubham Vihar, Mangla, Bilaspur, Chhattisgarh - 495001

Website: www.educreation.in

________________________________________________________________

© Copyright, 2018, Biswajit Pattajoshi

All rights reserved. No part of this book may be reproduced, stored in a retrieval system, or transmitted, in any form by any means, electronic, mechanical, magnetic, optical, chemical, manual, photocopying, recording or otherwise, without the prior written consent of its writer.

ISBN: 978-1-5457-2928-1

Price: ₹ 518.00

The opinions/ contents expressed in this book are solely of the authors and do not represent the opinions/ standings/ thoughts of Educreation or the Editors.

Printed in India


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ENTREPRENEURSHIP IN THE HOSPITALITY,

TOURISM AND LEISURE INDUSTRIES

MAVERICK MINDS

Biswajit Pattajoshi

EDUCREATION PUBLISHING (Since 2011)

www.educreation.in


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For wife Snigdha & Son Aryan.


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Contents

Sr. No. Title Page

Illustrations x

Preface xi

Acknowledgements xiii

About Author xiv

UNIT 1 INTRODUCTION 1

CHAPTER 1.1 Hospitality Industry an

outlook

2

UNIT 2 STARS –BLOOM 30

CHAPTER 2.1Budget Hotels 31

CHAPTER 2.2. Star Hotels 32

CHAPTER 2.3. Hotels and their star

ratings bloom

35

UNIT 3 MARKET POTENTIAL 38

CHAPTER 3.1. Market Mapping trends in

Hotel Industry

39

CHAPTER 3.2 Growth in Hospitality

Industry

43

CHAPTER 3.3 FICCI the nurturer 46

CHAPTER 3.4 Hotel chains of India 48

UNIT 4 CONSTRUCTIVE PLANNING 50

CHAPTER 4.1 Floor planning 51

CHAPTER 4.2 Facilities and amenities 54

UNIT 5 PROJECT APPROVAL PROTOCOL 58

CHAPTER 5.1General terms and

conditions and protocol format for project

approval

59


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CHAPTER 5.2 Hotel Association of India 84

CHAPTER 5.3 Hotel and Restaurant

Association of Eastern India

85

HAPTER 5.4 Hotel Franchising for the

New Doers

91

UNIT 6 PROJECT COST ENTITY 94

CHAPTER 6.1 Roughly how much does it

cost to set up a restaurant

95

CHAPTER 6.2 Project cost and

profitability

97

CHAPTER 6.3 Project profile for 2 star

hotel

102

CHAPTER 6.4 Setting up an Aqua-Leisure

park

104

CHAPTER 6.5 Project economics 120

CHAPTER 6.6 Hotels And Hospitality

Projects

125

UNIT 7 ESTABLISHMENT 129

CHAPTER 7.1 BODY CORPORATE 130

UNIT 8 PRICING THINK-TANK 147

CHAPTER 8.1 Enigmatic -Revenue

Management

148

CHAPTER 8.2 Revenue Management

Excellence for Hospitality industry

188

CHAPTER 8.3 Price Management 199

UNIT 9 BRANDING DECISIONS 208

CHAPTER 9.1 Hotel staff Marketing

Strategy

209

CHAPTER 9.2 Hospitality Marketing

Genius

215

UNIT 10 TQM 279

CHAPTER 10.1 Quality Management in

Hotel Industry

280


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CHAPTER 10.2 Departments of a limited

service Hotel

289

CHAPTER 10.3 Rooms division

department

295

UNIT 11 RENOVATION OF HOTEL 305

CHAPTER 11.1 Renovating Hotel assets 306

UNIT 12 EFFICIENT FINANCIALS 308

CHAPTER 12.1 Working Capital 309

CHAPTER 12.2 Who gets that capital

working?

311

CHAPTER 12.3. Run up to budget 314

UNIT 13 SCOPE & CHALLENGES 323

CHAPTER 13.1 Scope of Hospitality sector 324

CHAPTER 13.2 Hotel development India 335

CHAPTER 13.3 Condominium

Hotels:unique challenges to hotel

operators

338

CHAPTER 13.4 FF & E challenges in

Hotel boom

343

CHAPTER 13.5 Hotel investments

:challenges and opportunities

346

UNIT 14 INNOVATIONS 351

CHAPTER 14.1 Innovations in Hotel

products and services

352

CHAPTER 14.2 Benchmarks for excellence 356

CHAPTER 14.3 New financial players in

Global Hotel Industry

359

CHAPTER 14.4 Small is the new big 374

UNIT 15 360-DEGREE INCLUSIVITY 378

CHAPTER 15.1 INCLUSIVE GROWTH 379

UNIT 16 FUTURISM 398

CHAPTER 16.1 Funding for the future 399

CHAPTER 16.2 Future of Hospitality 404


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operations

CHAPTER 16.3 Future of Hospitality

sector

406

Abbreviation and Glossary 410

Bibliography 422


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Illustrations.

Figures

1. Figure 1.Model floor plan 51

2. Figure 2.16th floor Plan 52

3. Figure 3.Rooms plan 52

4. Figure 4.Deluxe suite plan 53

5. Figure 5.Apartment plan 53

6. Figure 6. Expected revenue and capacity 195

7. Figure 7.Price level and volume(room nights) 202

8. Figure 8.Dynamic pricing models 205

9. Figure 9.Departments of a limited service hotel and

departments of a full service hotel(under 500 rooms)

294

Tables

10. Table 1.Star category project approval 62

11. Table 2.Star category classification 66

12. Table 3.Checklist of facilities and services 81

13. Table 4.Marksheet of quality 83

14. Table 5.Qualifying score 84

15. Table 6. Basic assumptions of the project cost and 99

16. Table 7. Revenue expenses & Insurance charges 101

17. Table 8.Cost of project,means of financing,and

utilities requirement

104

18. Table 9.Type of hotels 106

19. Table 10.Hotel development costs 109

20. Table 11.Cost to build indoor water park 112

21. Table 12.Names of lodges 115

22. Table 13.Typical cost of upscale hotel waterpark 116

23. Table 14.Hotels and indoor water park and sf. 118

24. Table 15.Characteristic and pricing as per fences 193

25. Table 16.Year and scope graph 325


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Preface Many standard BOP models have been undergoing radical transformations.Newer functioning models with inclusivity with holistic ,systems approach is the mantra.Development has morphed into community leadership,and societal fabric building, now frames the effect of corporate governance activities on shareholder value. Not sursprisingly ,new voices have been calling for reinvention of marketing.CEO’s cannot get clear,compelling answers about marketing’s impact on the bottom line.The old adage of Sam Wanamaker- that he knows that 50 percent of his advertisement works but he does not know which half –still haunts management.

• Consider the following: Economic liberalisation has given a new impetus to the hospitality industry.

• It costs an average of US$50-80 million to set up a five-star hotels with 300 rentable rooms in India. The gestation period is usually between three and four years. Movements in real estate prices have to be watched, though they have stabilised in the past three years or so.

• Non-five-star hotels are obviously cheaper and have have smaller gestation periods, but international chains are expected to go into the five-star category.

• The Indian hospitality industry is growing at a rate of 15 percent annually. The current gap between supply (61,000 rooms) and demand (90,000 rooms) is expected to widen further as the economy opens and grows.

• The government forecasts an additional requirement of 200,000 rooms by the turn of the century.

• A rapidly growing middle class, the advent of corporate incentive travel and the multinational companies into India has boosted prospects for tourism. India's easy visa rules, public freedoms and its many attractions as an ancient civilisation makes tourism development easier than in many other countries.

• Many foreign companies have already tied up with prominent Indian companies for setting up new hotels, motels and holiday resorts. The entry of McDonald's, Pepsico's Kentucky Fried Chicken, Domino's and Pizza


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Hut have given an international glitz to the hospitality sector.

• Several international chains including Sheraton, Holiday Inn, Intercontinental, Hyatt, Radisson, BestWestern, Days Inn, Hilton, Quality Inn, Ramada Inn, Meridien, Kempenski, Four Seasons Regent, Accor, and Marriott International are entering or expanding their hotel network in India.

The Book offers not only a candid critique of eradicating poverty ,through bottom of pyramid spins but more important a clear agenda –indeed the Samaritans agenda-for meaningful change in end of poverty by immortal brand equity white horse.It calls upon leadership to deliver value and solutions ,not physicality colours .It believes that the stalwart must understand their building blocks and operations from finance to supplier partnerships.They must co-operate and compete on multidisciplinary teams ,because BOP model fails whenever any part of greater agenda fails to cohort with great acres. BOP’s are posing titan challenges to manage marketing tornadoes ,many of which are exemplary spectaculars in waves of shareholders.Marketing change agents have led to innovative,community building indispensability models that track futuristic transformation eradicating poverty ,establishing peace revolution.If community building models take-off, profits are harnessed by the BOP.


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Acknowledgements

This work has been the outcome of insights achieved in Corporate, Government and Academic institutions that I have loved to associate and work with, in the past years .I acknowledge the kind of co-operation ,support, brain-storming sessions, and knowledge-sharing attitudes of my co-workers at the work places. I thank the entire teaching fraternity ,staff ,mentors , the obvious roles of mentors ,co-staff and colleagues with the industry ,I was associated with, which has given me immense knowledge, insight, working model, modus operandi, and simple but valuable and important, as well as fundamental so called powerful teachings in my life .These so called small small baby-steps teaching learning process has immense ability and fundamental force/impetus/momentum to transform not only myself but also the needy. Last but not the least I thank almighty to give me learning lessons, subtle pain as well as happiness , a blend that drives mankind in the path of journey for ultimate reality. I owe a great deal to my teachers & mentors for their support, encouragement and suggestions. Several mentors have helped me in many ways: Dr Abhaya Kumar Panda, Ex-Principal Fakir Mohan Autonomous College ,Balasore ;presently Director ,BCET, Balasore & Dr Sangeeta Mohanty, Principal ,Management, ABA, Balasore- for guidance and suggestions, research and insightful commentaries, during the initial phase of this project. They had a great influence on my thinking. I express my infinite thanks to my family , namely ,my parents and to my wife, Snigdha & son,Aryan for their love ,understanding, help, inspiration & emotional support at home. I am thankful to editors and to those for help in production of this book, I acknowledge the support of the Educreation Publishing for making the project come true. I like to acknowledge the help provided by all.


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About Author

Mr Biswajit pattajoshi is a dedicated worker on BOP models.His research on BOP models spans glocal village.He has worked for a decade delving development, governance ,management ,teaching and research as core level of competency,His books on BOP models are trickles of association and love for rural brethren.The transmutation as strategic thinking, corporate entrepreneurship and BOP models are all sheer hard work out of churn with corporate and governance and entities.His works on leadership and BOP models are critically engineered to pave win-win path.He lives in India.


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