By adminOn December 29, 2014November 18, 2021

SIKKIM MANIPAL UNIVERSITY

PROJECT REPORT

“EMERGING TREND OF LOW BUDGET HOTELS IN THE HOSPITALITY INDUSTRY IN JAIPUR CITY AND IT’S BRAND PERCEPTION AMONG BUSINESS TRAVELLERS”

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UNDER SUPERVISION OF:

August, 2014

NO OBJECTION CERTIFICATE

This is to certify that the project titled ““EMERGING TREND OF LOW BUDGET HOTELS IN THE HOSPITALITY INDUSTRY IN JAIPUR CITY AND IT’S BRAND PERCEPTION AMONG BUSINESS TRAVELLERS” is the bonafide work of Mr.__________________________ with roll number _______________________carried out for/in MAHINDRA.

We have no objection with he/she selecting ““EMERGING TREND OF LOW BUDGET HOTELS IN THE HOSPITALITY INDUSTRY IN JAIPUR CITY AND IT’S BRAND PERCEPTION AMONG BUSINESS TRAVELLERS” as his Project for the requirements of his MBA degree. He will be allowed to present the necessary technical details to the panel of examiners for the purpose of evaluation.

Signature of the Organization Guide

(Name, Designation and Organization Details

ACKNOWLEDGEMENT

With Candor and Pleasure I take opportunity to express my sincere thanks and obligation to my esteemed ……………………………. It is because of his able and mature guidance and co-operation without which it would not have been possible for me to complete my project.

It is my pleasant duty to thank all the staff member of the computer center who never hesitated me from time during the project.

Finally, I gratefully acknowledge the support, encouragement & patience of my family, and as always, nothing in my life would be possible without God, Thank You!

DECLARATION

I hereby declare that this project work titled “EMERGING TREND OF LOW BUDGET HOTELS IN THE HOSPITALITY INDUSTRY IN JAIPUR CITY AND IT’S BRAND PERCEPTION AMONG BUSINESS TRAVELLERS” is my original work and no part of it has been submitted for any other degree purpose or published in any other from till date.

The empirical findings in this project are based on the data collected by myself while preparing this report.

This project is completed as a part of curriculum & all that information collected is correct to the best of my knowledge.

TABLE OF CONTENTS

CHAPTER CONTENTS PAGE NO.

Certificate …………………………..……………………..…….……3

Acknowledgement…………………….……………………..…………4

Declaration…………………….……………….……………..……….5

Introduction to topic…………………………………………..7
Review of Literature………………………………………….35

Objective of the study………………………….…………54
Research Methodology…………………………………….55

Data Analysis & Interpretation………………………………58
Theoretical Review…………..………………………………69
Conclusion and Limitation …………………………………..82

References ………………………………………………….………………84

Questionnaire……………….…………………………….…….…….…..86

TITLE OF THE PROJECT

“EMERGING TREND OF LOW BUDGET HOTELS IN THE HOSPITALITY INDUSTRY IN JAIPUR CITY AND IT’S BRAND PERCEPTION AMONG BUSINESS TRAVELLERS”

CHAPTER – 1

INTRODUCTION TO THE STUDY

INTRODUCTION TO HOSPITALITY INDUSTRY

The hospitality industry consists of broad category of fields within the service industry that includes lodging, restaurants, event planning, theme parks, transportation, cruise line, and additional fields within the tourism industry.

The hospitality industry is a several billion dollar industry that mostly depends on the availability of leisure time and disposable income. A hospitality unit such as a restaurant, hotel, or even an amusement park consists of multiple groups such as facility maintenance, direct operations (servers, housekeepers, porters, kitchen workers, bartenders, etc.), management, marketing, and human resources.

The hospitality industry covers a wide range of organizations offering food service and accommodation. The industry is divided into sectors according to the skill-sets required for the work involved.

Sectors include accommodation, food and beverage, meeting and events, gaming, entertainment and recreation, tourism services, and visitor information.

HOTELS

A hotel is an establishment that provides lodging paid on a short-term basis. The provision of basic accommodation, in times past, consisting only of a room with a bed, a cupboard, a small table and a washstand has largely been replaced by rooms with modern facilities, including en-suite bathrooms and air conditioning or climate control.

Additional common features found in hotel rooms are a telephone, an alarm clock, a television, a safe, a mini-bar with snack foods and drinks, and facilities for making tea and coffee. Luxury features include bathrobes and slippers, a pillow menu, twin-sink vanities, and Jacuzzi bathtubs. Larger hotels may provide additional guest facilities such as a swimming pool, fitness center, business center, childcare, conference facilities 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. Some hotels offer meals as part of a room and board arrangement.

In the United Kingdom, a hotel is required by law to serve food and drinks to all guests within certain stated hours. In Japan, capsule hotels provide a minimized amount of room space and shared facilities.

Overview

Business Travel in India has increased as a direct outcome of economic liberalization in India. Foreign investments have increased in Indian companies. There have also been an increasing have led to a steady growth of business or corporate travel to India.

Economic liberalization has initiated a spurring growth of business travel in India. Mutual trade relations with major countries in the world have taken a giant leap so much so that India has been ranked among the fastest growing economies in the world.
India has caught the eye of the foreign investors who are interested in investing in industries in India. The recent rise of the BPO phenomenon has contributed a lot to the growing number of business travelers to India.
With its continuously evolving infrastructure and fabled hospitality India is increasingly being considered as the preferred venue for meetings, incentives, conferences, conventions and exhibitions. Strategic advantage of location and an overwhelming array of destinations are the USP of India.
In each of its destinations there are a huge number of hotels in India, which are well equipped with state-of-the-art facilities.

Prominent Business Travel Destinations

Business travel in India is seen too few of the cities where active economic growth has led to an increase of foreign investments as well as establishments of international companies in such cities.

Mumbai – This is the financial capital of India with offices of almost all the major international names that have come to India.
Delhi – As the capital of India it attracts a lot of business travel from companies who come to India.
Bangalore – This city has seen a tremendous business travel following the growth of the IT industry in India.
Hyderabad – Business travel here has seen a huge growth since the city showed a huge growth in IT and ITES industry.
Kolkata – Though it has forayed much later in the economic liberalization the city has attracted number of international companies who have set up offices in India. All of these a certain of business travelers who have shown interest in investments.

WHAT DO BUSINESS TRAVELLERS WANT?

HOW TO CATER TO THE NEEDS OF BUSINESS TRAVELLERS?

Having traveled a great deal for both business and pleasure, I can say with some authority that tourists and business travelers have different needs. Better business hotels provide some of the services needed by business travelers, but not all. Some traveler needs overlap. Both business travelers and tourists need hotels that provide clean quiet rooms. However, the business traveler is more likely to need Internet access, a table, and good lighting to perform work.

Here’s some of the Information Business Travelers need from their hotels:

Where to get papers copied
Where to rent a conference room
Where to rent a temporary office
Where to rent a videoconference room
Where to rent or buy computer equipment
- Cables
- Notebook computer batteries
Where to buy office supplies
- Notebooks, folios, paper, flip charts…
Where to rent a flip chart stand and purchase flip chart paper
Where to rent or buy a cell phone
Where to rent or buy a cell phone charger
Where to rent or buy business equipment
Where to rent or buy video equipment
Where to buy a digital data projector bulb
Where to rent or buy camera equipment
Where to hire a language translator
Where to hire temporary information technology (IT) staff
Where to hire temporary office workers
Where to obtain temporary legal services
Where to go to play sports or go for a run

Here’s Some Hotel Requirements For Business Travelers:

Internet access, preferably free wireless broadband access
Table and chairs for performing office work
Bright full spectrum lighting especially near tables, chairs, and beds.
Free local calls
In-house notary services
Free long distance calling over the Internet
Room service that can provide hot food or coffee at a specified time
Starbucks or a Starbucks competitor coffee shop in the lobby
Quick turnaround dry cleaning, pressing, shoe shine
Beauty Salon with the ability to provide last minute services for business travelers
Barber shop with the ability to provide last minute services for business travelers
Massage services
Gym services that have accessible treadmills, weights, and aerobic classes
Rooms that sound insulated.
Concierge desk with staff who know how to get things done and make credible recommendations
Restaurants that have business traveler tables where business travelers can meet each other when they are dining alone

Here’s some services needed by business travelers from their corporate travel agents:

All standard travel agency services such as ticket sales, hotel
Reservations, rental car reservation, and so on
Live telephone support 24X7
Email, SMS text, voice, and video chat 24X7
Restaurant reservations
Limousine reservations
Drivers
Security arrangements
Tour guides
Convention arrangements
Business meeting arrangements
Business events, such as river trips, hikes, and other adventure travel trips
Business cruises
Legal services
Travel insurance

Here are some of the recreational information needs of business travelers:

Where to eat
Where to drink
Where to have fun
Where to run
Where to walk
Where to rent a bicycle
What to see
What to do
Where to get a haircut
Where to shop
Where to find a pharmacy
Where to find medical care
What to do after work while on the road

Jaipur Tourist Spots

The City Palace

One of the most magnificent marvels or Jaipur is the City Palace Complex which has a rare combination of the finest blends of Rajasthani and Mughal architecture. In the heart of the old city, it has vast area. The outer wall was built by Jai Singh and additions made up to the 20th century. Many buildings, well-planned gardens and huge courtyards are a part of the complex. For visiting dignitaries, Sawai Madho Singh II, constructed Mubarak Mahal (welcome palace) as a reception centre. The mahal comes before the main complex, though it now forms a part of the Maharaja Sawai Man Singh II Museum. The museum has an array of royal costumes, shawls, embroideries, Benares silk sarees, the maharaja’s pyjamas, chogas and pyjamas of other rulers, jamawars, kamarbands, musical instruments like the giant sized tanpura and sarangis and a set of the clothes of Sawai Madho Singh I who was just over seven feet tall, over four feet wide and supported a Goliathic weight of 250 kilograms.

A delight is the Maharani’s Palace, now the armory with arms to the 15th century which include the deadly Rajput scissor-action daggers which have a unique working action (after the dagger entered the body, the handles were released and the blades spread. during withdrawal, killing the victim). The guns include the ones that also served as walking sticks, one of the size of a small canon fired from a camel’s back, double-barrel guns, early handguns, matchlocks and percussion cap guns, swords with pistols attached to the blades, daggers with handles of crystal and invory, katars, chhuris, peak-kubz jambhiya, Persian and Rajput swords. Deccan hand, bows and arrows, battle axes, shields, maces, breast and shoulder plate gutzis and the ruby and emerald encrusted sword presented by Queen Vicoria to Maharaja Sawai Ram Singh (1835-1880). On display are a big range of shields of rhino, crocodile and turtle skin, the shield of Sawai Pratap Singh and Raja Man Singh’ sword weighing about 5 kilograms.

Diwan-e-Khas (hall of private audience) is housed between the art gallery (once the diwan-e-aam-hall of public audience) and the armoury. The most attractive feature are the two sterling silver vessels (in the marble-paved gallery) in which Maharaja Madho Singh II, a devout Hindu, took holy Ganga water during a visit to Europe. The two vessels are massive standing 160 cm and have a capacity of 9000 litres each. They are listed in the Guinness book of Records as the biggest silver vessels in the world. From the ceiling of the hall hang a number of chandeliers which are covered with plastic to prevent dust and bird droppings falling on them.

The art gallery in the erstwhile Diwan-e-aam has a well preserved painted ceiling on which the original semi-precious stones still retain their lustre. Suspended from the ceiling is a massive chandelier made of crystal. The art gallery also has miniature paintings of the Rajasthani, Mughal and Persian schools featuring religious them mainly scenes from the Ramayana. The other exhibits include an unbraided, handwritten version of the Bhagaved Gita, miniature copies of other holy Hindu scriptures, handwritten books in Persian and Sanskrit and early manuscripts on palmleaes There are among the 20,000 manuscripts that the museum boasts of. Howdahs (elephant saddles), palanquins, the swing of Lord Krishna and paper cuttings cut with the thumbnails are among the several other exhibits in the gallery. One can also see the finest carpets from Herat in Afghanistan and Lahore.
Chandra Mahal is the only part of the complex that is inhabited and is occupied by the royal family. The ground floor of the palace, open to visitors, has some exhibits. In the courtyard outside is the elegantly designed Peacock Gate.

Govindji Temple

The city place complex also houses the Govindji Temple and is a temple of Lord krishna and Large number of people visit it. The temple was built in such a fashion that the king could see the deity from the Chandra Mahal, opposite it. The temple is surrounded by gardens and palaces. The image of Govind Devji was originally installed in a temple in Vrindavan.
Jantar Mantar

Jantar Mantar is the largest and best preserved of Sawai Jai Singh’s five observatories. It is built in stone and marble whose setting and shapes are designed scientifically and which are one of the high points of medieval highpoints of medieval Indian astronomy. There are also two Ram Yantras for gauging altitudes. Timings: 9:30 a.m. to 4:30 p.m.

Hawa Hahal – The palace of winds

The palace of winds a fascinating landmark of Rajasthan, was built by the orders of poet-king, Sawai Pratap Singh in the 18th century and is the most remarkably designed monument in Jaipur. What is seen from the Sireh Deorhi Bazar is the Multi-niched five storey high backside of the complex. it was conceived to provide adequate vantage position behind stone carved mesh like screens to the palace women for watching the royal processions passing through the bazaar. It now has a museum and the collections include paintings, coins, handicrafts and sculptures. ‘Jaipur-past and present’ is the special feature of the museum.

Moti Doongari and Lakshmi Narayan Temple

Among the important landmarks dotting the southern horizon is the small privately owned hilltop fort of Moti Doongari which is shaped like a Scottish castle, the Ganesh Temple at the foot of the hill and the marble built Lakshmi Narayan Temple.
Jagat Shiromani Temple

The beautifully carved Jagat Shiromani Temple houses the idol of Lord Krishna and is popularly associated with the celebrated saint poetess Mira Bai. The old temple of Narsinghji and a step well Panna Mianki-Baodi, which still bears witness to its past glory are also located in the vicinity.
Jaigarh Frot

The western skyline is dominated by the extensive parkotas (walls), watch towers and gateways of Jaigarh. It is one of the few military structures of mediaeval India preserved almost intact containing palaces, gardens, open and covered reservoirs, a granary, an armory, a well planned cannon foundry, several temples, a tall tower and a giant mounted cannon the Jai Ban one of the giggest in the World.

Nahargarh Fort

It is 15 kilometers from Jaipur beyond the hills of Jaigarh and is like a watchful sentinel guarding Sawai Jai Singh’s beautiful capital. Much of the original structures are in ruins. From atop a hill, the fort offers a scenic view of the city be low. Rajasthan Tourism has started a cafeteria where Beer and snacks are available from 10 a.m. to 10 p.m.
Jal Mahal
Jal Mahal was built by Sawai Pratap Shing in 1799 A.D. in the midst of the Man Sagar Lake as a pleasure spot. The Lake was formed by constructing a dam between the two hills by Sawai Man Singh I. During winter months one can see a large number of migratory birds at the lake.

Amber Palace and Fort complex

Situated just over 10 kilometres away from Jaipur on the Jaipur-Delhi highway is Amber, which was the ancient capital of Jaipur State. A bus leaves from Hawa Mahal every 30 minutes and a well-laid out road takes the visitor out of the city and very soon one witnesses lush green hills.

One then notices a lake and standing next to it is the majestic Amber Fort which several rulers of the erstwhile State of Jaipur recognized as a vantage military building. The excursion start of Jaipur recognized as a vantage military building. The excursion starts with the Dil-E-Aaram Garden which is laid out in the traditional Mughal style. The complex of palaces, halls, pavilions, gardens and temples was built by Raja Man Singh, The Rajput commander of Akbar’s Army, Mirza Raja Jai Singh an Sawai Jai Singh, over a period of about two centuries. One can climb up to the fort from the road in about 10 minutes, go up by a jeep or even on elephant back. The diwan-E-aam (hall of public audience) has latticed galleries and double row of columns each having a capital in the shape of elephants on the top. To the right are steps that lead to the Kali Temple where everyday a goat was sacrificed right up to 1980 when the practice was banned by the state government. The temple offers a wonderful sight and has huge doors made of silver. It is said that Maharaja Man Singh prayed to the goddess for victory during a particular battle. The goddess was said to have come in his dream and said that if he won the battle, then he should retriever her image which was lying at the bottom of the sea. he won the battle, retrieved the image and installed it at the temple of Shitla Devi.

The maharaja’s residence is at a higher elevation and can be entered through a decorated gateway. The Jai Mandir (hall of victory) has a glittering ceiling of mirrors and elegant inlaid panels. In front of the Jai Mandir is the Sukh Niwas (Hall of pleasure) with a door made of sandalwood, inlaid with ivory with a channel running through which once carried cool water. The zenana or women’s apartments were designed in a manner which could easily facilitate the entry of the maharaja to various chambers without any of the concubines aware of any visitor. Mohan Bari or Kesar Kyari in the centre of the Maotha lake gives a scintillation view from the palaces above it.

Swarghashuli/Isar Lat

The tower on the western side of Tripolia Bazaar is the highest structure in Jaipur and was builr by Sawai Ishwari singh in 1749 to commemorate an important victory.

Ram Niwas Bagh

To provide open space and greenery to the citizens, there is a big garden, with a zoo, an aviary, a greenhouse, a herbarium, a museum and several sports grounds. It was built during the reign of Sawai Ram Singh II’ in 1868 as a famine relief project.

Albert Hall

It is situated in the beautiful Ram Niwas Garden. This beautifully designed Saracenic structure was designed by sir Swinton Jacob. It was opened in 1887 as a public museum. It contains a rare collection of decorative art objects, paintings, sculptures, natural history specimens, an Egyptian Mummy and the well known Persian Golden Carpet.
Dolls Museum

Located near the Police memorial towards the back side of SMS Hospital is the Dolls Museum. There are attractive dolls from various countries and is housed in the compound of the school for the deaf and the dumb.
Sisodia Rani Garden

It is eight kilometres away from Jaipur on the road to Agra. Several landscaped gardens were constructed by the kings and the courtiers in the 18th and 19th centuries with the biggest and the most famouse being one built by Sawai Jai Singh for his Sisodia queen, the Sisodia Rani Ka Bagh. It consists of tiered multilevel gardens with fountains, watercourses and painted pavilions.
Vidyadhar Garden

This garden is named after Vidyadhar who was the chief architect and town planner of Sawai Jai Singh II. It falls just before the Sisodia Garden and the gardens have been planned in the medieval style. Every evening. lights concealed at the base of the surrounding hills lighten up the place.
Statue Circle

The full length white marble statue of Sawai Jai Singh installed in the centre of the circle in the newly developed C-Scheme area was erected as a tribute to the founder of Jaipur.
Gaitore
Eight kilometres on the road to Amer, it has memorials of queens in the Maharani-ki-Chhatri complex near the Ramgarh road crossing, the island palace – Jai Mahal built by Sawai Madho Singh as a pleasure spot at the Man sagar lake and the Kanak Vrindavan complex temples and gardens recently renovated. To the west, in a narrow valley, is the royal cremation ground and the cenotaphs of Jaipur rulers with the exception of Sawai Ishwari Singh, who was cremated outside the Jai Niwas Garden.

Galta
In the vicinity of the city, 10 kms. from Jaipur, Galta is situated amidst the range of hills east of the city. On the top of the hill. overlooking the Galta valler is a sun temple. To the east of the temple is a reservoir or a tank which is fed by spring of pure water falling from a Gaumukh or an outlet shaped like the mouth of a cow. On way to Galta, by the Ghat-ki-Guni, is a range of hills crowned with the fort of Amargarh.

Birla Planetarium

The planetarium is on the Statue Circe and is made of white marble. One can get a view of the cosmos with the production and sound system of the planetarium.

Birla Auditorium and Convention Centre

Over 9.5 acres, it houses a museum, auditorium, (with a seating capacity of 1,300), a library, a planetarium and a big exhibition area. The convention centre hosts major conferences. The entrance facade is a replica of Ganesh Pole of Amber Palace.

Budget Hotels in Jaipur
Umaid Bhawan D1-2A,Behind Collectorate, (Via) Bank Road, Bani Park, Jaipur-302016, Rajasthan,INDIA Hotel Lines: +91 (141) 2316184 / 2206426 / 2201276 Fax us: +91 (141) 2207445 Email us: [email protected], [email protected] / [email protected] Website: www.umaidbhawan.com
Hotel Umaid Mahal C-20 / B-2 Bihari Marg, Jai Singh Highway, Opp. Lane of K.P. Automotives, Bani Park, Jaipur – 302016, Rajasthan (India) Hotel Lines : +91-141-2201952 / 2201954 Fax : +91-141-2204470 Email : [email protected] / [email protected] Website: www.umaidmahal.com
Anuraag Villa, D-249, Devi Marg, Bani Park, Jaipur,
Comfort Inn Hawa Mahal, 40 – 41, Barwara House, Civil Lines, Ajmer Road,
Hotel Maurya Palace, S-35A, Arvind Marg, M.I. Road
Hotel Maya International, A-1, Jaisingh Heighway, Bani Park
Hotel Meenakshi Palace, Adjoining D.R.M. Office, Near Railway Station
Hotel Meru Palace, Ramsingh Road, Jaipur,
The Wall Street, C-7, New Colony, M.I. Road
Empire Regency, D-1, Madhosingh Road, Near Collectrat Circle, Bani Park,
Hotel Bani Park Palace, Kabir Marg, Bani Park
LMB Hotel, Johri Bazar, Jaipur,
Hotel Megh Niwas, C-9, Jai Singh Highway, Bani Park
Maharani Palace, Station Road
Maharani Plaza, Station Road, Opp. Sindhi Camp Bus Stand
Hotel Neelam, A-3, Moti Lal Atal Road
Arya Niwas, S.C. Road, Jaipur
Jaipur Inn, B-17, Shiv marg, Banipark, Jaipur.
Rajdhani Hotel, 5, Park House Scheme, Opp. A.I.R., M.I. Road,
Tara Niwas, B-22/B, Shiv Marg, Banipark Jaipur.

The economic importance tourism

The economic importance of tourism varies from place to place but can be seen to make a significant contribution to many countries wealth. MEDCs benefit massively from tourism in terms of total wealth generated, even if the % of GDP that tourism generates is small. LEDCs are variable in their involvement in tourism but most see tourism as an extremely important way of getting money into their countries. Some LEDCs are reliant on tourism, and it can create more than 50% of GDP, more than exporting primary goods such as food stuffs or manufactured goods such as clothing. This can be problematic, as war, terrorism, or natural disasters could put people off visiting which would strip away a huge chunk of a countries income.

Oberoi Hotels and Reorts and TRIDENT HOTELS

OBERIO HOTELS

The Oberoi Group, founded in 1934, operates 28 hotels and three cruisers in five countries under the luxury ‘Oberoi’ and five-star ‘Trident’ brands. The Group is also engaged in flight catering, airport restaurants, travel and tour services, car rentals, project management and corporate air charters.

Oberoi Hotels & Resorts is synonymous the world over with providing the right blend of service, luxury and quiet efficiency. Internationally acclaimed for all-round excellence and unparalleled levels of service, Oberoi hotels and resorts have received innumerable awards and accolades.

A distinctive feature of The Group’s hotels is their highly motivated and well trained staff who provide exceptionally attentive, personalised and warm service. The Group’s new luxury hotels have established a reputation for redefining the paradigm of luxury and excellence in service amongst leisure hotels around the world.

Trident hotels are five-star hotels that have established a reputation for excellence and are acknowledged for offering quality and value. These hotels combine state of the art facilities with dependable service in a caring environment, presenting the ideal choice for business and leisure travellers. At present there are nine Trident hotels in India. These are located in Mumbai at Bandra Kurla and Nariman Point, Gurgaon (Delhi National Capital Region), Chennai, Bhubaneshwar, Cochin, Agra, Jaipur and Udaipur. The Oberoi Group also operates a Trident hotel in the Saudi Arabian city of Jeddah.

The last decade has witnessed the debut of new luxury Oberoi leisure hotels in India and abroad. In India, these hotels include The Oberoi Rajvilas, Jaipur; The Oberoi Amarvilas, Agra; Wildflower Hall, Shimla in the Himalayas; The Oberoi Vanyavilas, Ranthambhore; The Oberoi Cecil, Shimla and The Oberoi Udaivilas, Udaipur. Overseas, the new hotels include The Oberoi, Lombok in Indonesia, The Oberoi, Mauritius and The Oberoi, Sahl Hasheesh in Egypt. The Oberoi Zahra, Luxury Nile Cruiser, Egypt was launched in 2007.

The Group’s commitment to excellence, attention to detail and personalised service has ensured a loyal list of guests and accolades in the worldwide hospitality industry. Recognising the importance of quality training in hospitality management, The Oberoi Group established The Oberoi Centre of Learning and Development in New Delhi in 1966. Today, this institution is considered amongst the best in Asia with approximately 100 students graduating each year.

TRIDENT HOTELS

Located at Agra, Bhubaneswar, Chennai, Cochin, Gurgaon (Delhi NCR), Jaipur, Mumbai (Nariman Point), Mumbai (Bandra Kurla) andUdaipur, Trident Hotels offer business as well as exotic holiday locations across India. Make the best of a business meeting or event by benefiting from our award winning facilities. You can plan your trip ahead and complete your reservation online now. Discover the cultural heritage and diversity of India while we make your stay a memorable one.
At Trident, you’re sure

ITC Hotels

ITC’s hotel division was launched on October 18, 1975, with the opening of its first hotel – Chola Sheraton (now rechristened as My Fortune) in Chennai. ITC Hotels, is today one of India’s finest hotel chains, with its distinctive logo of hands folded in the traditional Namaste is widely recognised as the ultimate in Indian hospitality.
Each of the chain’s hotels pays architectural tribute to ancient dynasties, which ruled India from time to time. The design concept and themes of these dynasties play an important part in their respective style and decor.
GROWTH UNDER FOUR BRANDS

Acknowledged as one of the finest in Indian hospitality, ITC Hotels are classified under four distinct brands.

ITC Hotels – Luxury Collectionare super deluxe and premium hotels located at strategic business and leisure locations.
Fortune Hotelsoffer full service properties all over India, including smaller towns and cities, ideal for the budget traveller.

WelcomHeritage brings together a chain of palaces, forts, havelis and resorts that offer a unique experience. WelcomHeritage endeavours to preserve ancient royal homes and the historical Indian grandeur and opulence for the future Indian generations.

TAJ HOTELS

Taj Hotels Resorts and Palaces comprises 93 hotels in 55 locations across India with an additional 16 international hotels in the Maldives, Malaysia, Australia, UK, USA, Bhutan, Sri Lanka, Africa and the Middle East.

Spanning the length and breadth of the country, gracing important industrial towns and cities, beaches, hill stations, historical and pilgrim centres and wildlife destinations, each Taj hotel offers the luxury of service, the apogee of Indian hospitality, vantage locations, modern amenities and business facilities.

THE LEELA

The Leela Palaces, Hotels and Resorts are an expanding chain of some of the finest five star luxury resorts and business hotels in India. It is also one of the best-run corporate in India. Do take the time to go through this corporate information section. You’ll find that the best business practices are responsible for the best business and luxury hotels in India.

EMERGENCE OF LOW BUDGET HOTELS

LEMON TREE HOTELS

India’s Fastest Growing Chain of Upscale Business and Leisure Hotels

Lemon Tree Hotels is India’s largest chain of upscale hotels and resorts – the perfect choice for today’s discerning yet value conscious traveler.

While 5 Star hotels in India are at par with global competitors, there is a near absence of internationally acceptable mid-market hotels. This gap is now being proficiently filled by the Lemon Tree Hotels chain which operates in the upscale and upscale ‘plus’ (through Lemon Tree Premier) segment in India. Youthful, spirited, efficient and growing at an incredible pace, Lemon Tree Hotels are India’s first, largest and finest chain of upscale hotels and resorts. Not surprisingly, they say that being at a Lemon Tree hotel is like being offered a tall glass of icy cold lemonade after hours of traipsing through the hot and dry desert!

Lemon Tree Premier, our new upscale ‘plus’ brand that retains the essence of the upscale Lemon Tree by continuing to provide the fresh, fun and spirited experience the group is so well known for. Lemon Tree Premier provides an enhanced product-service offering and superior amenities. At Lemon Tree Premier – it’s everything that our customers love about the ‘refreshingly different’ Lemon Tree Hotels… ‘plus’ more.

A Brand New Vision

At the Lemon Tree Hotel Company we plan to be India’s largest and finest chain of upscale hotels and resorts.

A Bright Mission

At Lemon Tree Hotels, we not only see the big picture, we make sure that it remains bright and clear. That’s why we are committed to:

The well-being of our colleagues, whose happiness and self-worth is of utmost importance to us.
The delight of our customers, whose safety, security and sense of well-being and care is our main reason for being.
The expectations of our shareowners, whose confidence and trust propel us to excel further.
The needs of society, so that we may give back a part of what we receive, to contribute to a greater goal.
The efficiency of our processes, so that we can be the most cost-effective quality service provider and thereby offer the greatest value, which our customers have every right to expect.

GINGER HOTELS

The Ginger Hotels are built around a unique concept that provides facilities to meet the key needs of today’s traveller, at surprisingly affordable rates. They have created a new category in the domestic hospitality landscape, while giving a major fillip to Indian tourism and other ancillary industries. The primary objective behind the launch of these hotels is to provide a superior product offering and consistent experience to travellers, beyond the present offerings in the industry.

SAROVAR HOTELS

Sarovar Hotels & Resorts pioneered in venturing into the mid-market segment in the Indian hospitality landscape. The Company over a period of 18 years has successfully churned the demand in this segment, and is now the third largest chain in India, with 58 operational hotels across 40 cities in India and overseas. It has a diverse portfolio encompassing hotels, resorts, restaurants and corporate hospitality. The properties vary by type, size and the market niche they serve. It provides a consummate and unmatched international hospitality experience at competitive price offerings.

Vision :

To strengthen our position as a leading player in the hospitality landscape.

Mission :

To provide our guests a superior hospitality experience at excellent value in varied market segments
To provide our employees a great work environment, continuous satisfaction and growth opportunities while treating each other with respect and dignity
To recognize that profitability is essential to our future success and therefore provide our property owners and investors the highest possible returns
To focus on our growth and maintain consistency in product through warm, personalized service and absolute transparency in all our dealings
To contribute positively to our communities and our environment

TAJ GATEWAY HOTELS

The Gateway Hotel (upscale/mid-market full service hotels and resorts) is a pan-India network of hotels and resorts that offers business and leisure travelers a hotel designed, keeping the modern nomad in mind.

At the Gateway Hotel, we believe in keeping things simple. This is why, our hotels are divided into 7 simple zones- Stay, Hangout, Meet, Work, Workout, Unwind and Explore.

As travel often means more hassle than harmony, more stress than satisfaction, modern travelers are looking for smarter choices. Driven by our passion for perfection, we welcome our customers to a refreshingly enjoyable and hassle-free experience, anytime, everywhere.

Fortune Hotels

Fortune, a member of ITC’s hotel group, was set up in 1995 to cater to the mid-market to upscale segment in business and leisure destinations.

Today, it is a professionally managed Hotel Management Company with 67 signed properties, 5164 rooms spread across 50 cities in India, out of which 40 hotels are operational at present.

It has emerged as one of the fastest growing hotel chains in the first-class, full-service business hotel segment in India.

CHAPTER – 2

REVIEW OF LITERATURE, OBJECTIVES AND RESEARCH METHODOLOGY

REVIEW OF LITERATURE:

Today’s travelers are increasingly vocal and willing to share their experiences with hotels and travel providers, and they are more apt to share those experiences online through social networks like Facebook and Twitter, in online reviews on sites such as TripAdvisor and Yelp, as well as directly with the provider through surveys, emails, calls and other more traditional means. From the check-in process to the quality of a property’s spa, this feedback contains valuable insights that hospitality providers can use to improve the guest experience with their brands, better target customers with offers, and differentiate their properties, products and services from the competition.

Kamya Jaiswal, Feb 19, 2012, Cheap hotels. There is a guilty pleasure about them. You can’t help feel wistful about the occasions when you did or did not choose to stay in one. But if you are an hotelier, veteran or newbie, the guilt will likely be that you didn’t do it.

For the business opportunity in low-cost lodging has been the hospitality industry’s worst kept secret for nearly a decade. Strangely, few have jumped at it

Global Investments in hospitality Sector has shown increasing trends over last few years. Asia is Viewed as Top Global Prospect for Hospitality Investment. Emerging markets in Asia are unseating Europe as the epicenter of new hospitality investment and development while investors in the United Statesare switching their focus from the acquisition of existing hotels to developing according to the Ernst & Young Hospitality Investment Survey, which surveyed more than 300 investors and industry executives worldwide, capitalization rates for hotel properties are expected to stabilize and possibly even increase over the short-to-mid-term in the US. Even with the dramatic shift in the debt markets over the last few months, hotel industry sector fundamentals continue to be strong.

Hospitality Industry in India

The history of the hotel industry is as old as the history of tourism and travel industry. In fact, both are two sides of the same coin. Both are complementary to each other. Hotel is an establishment which provides food, shelter and other amenities for comfort and convenience of the visitors with a view to make profit (Chakravarti, B.K). Hotel is a commercial establishment and intends to provide visitors with lodging, food and related services with a view to please them so as to build goodwill and to let them carry happy memories. In general, a “hotel” is defined as a public establishment offering visitors against payment two basic services i.e. accommodation and catering (Ghosh, Biswanath). However, during the last few years great changes have taken place in the scope of hotel industry. During 6th century BC, hotels were known as “inns” or “dharamshalas” and we’re providing only food and overnight stay facilities. At that point of time the standard of an inn was quite normal with earth or stone floor, common bedroom and simple food. As travel became easier, inns grew in size and number. The spirit of competition raised the standard of inns.

Industrial revolution and trade expansion resulted into increase in the number of visitors crossing international border. In this era, room furnishing and catering received greater attention. Emphasis was made on accommodation with spacious assembly hall and dining hall for organizing functions and parties etc. But the real growth of the modern hotels started in the last decade of the eighteenth century with the establishment of City Hotel in New York. After that a large number of hotels of various types and grades came into existence in different countries to meet the requirements of different categories of visitors. Modern hotels provide a number of services to the visitors. The services vary according to the aim, location, type, size and grade of the hotel.

As per Negi Jagmohan, Generally, the important activities of a hotel include – (1) Direction (2) Reception (3) Provision of accommodation rooms/floors (4) Cuisine Meals and Refreshments (5) Restaurant (6) Bar (7) Bell to provide information to the guests (8) Entertainment and Recreation (9) Sightseeing(10) Transport facilities (11) Parking space(12) Swimming pool(13) Bathroom facilities (14) Lounge facilities (15) Garden (16) Shopping facilities (17) News stand (18) Tobacco and Cigarettes (19) Telephone (20) Television (21) Radio (22) Laundry and Cleaning (23) Telex service (24) Sporting installations, Tennis court, Golf and Squash (25) Installation for children (26) Banquet hall (27) Conference facilities (28) Convention facilities (29) Exhibition areas (30) Health club (31) Business centre etc. After 2nd world war, there were several distinct trends in the hotel industry. First, hotel industry became highly profitable mainly because of auxiliary services. Another feature was the growth of hotel chains. In most chain operations, some hotels are owned by the corporation while others are leased for operation to the group having experience in hotel business. The high cost of land in the heart of the city often forced a successful hotel to maintain auxiliary shops such as drug stores, flower shops, haberdashery and dress shops, beauty salons and newsstands to serve both hotel guests and the city residents who live or work near the hotel. Although such shops may be staffed and operated by the hotel but usually these are leased out to outside concerns (American People Encyclopedia).

Development of Hospitality Industry in India

The concept of travel and halting facilities is quite old in India. In ancient times, people used to travel for pilgrimage or business purposes. For ages, India has been known for its hospitality. Endowed with rich historic heritage, cultural diversity, natural resources and geographical advantage, India remained a big attraction for foreigners. In ancient times, the need of travellers for food and accommodation was met mainly by hospitable householders which are still in existence in interior areas of the country.

Domestic tourists were looked after by the pandas or priests. They used to accommodate their clients in dharamshalas or in their own houses at places of pilgrimage like Banaras, Hardwar, Puri and Mathura etc. In general, the attitude of the ancient Indians towards visitors was influenced by the ‘Atithi Devo Bhavah’. It means guest is like God and should be treated accordingly

(R.N. Kaul): These few lines amply indicate the importance which was given to guests in

olden times. Improvements in the transport and communication facilities resulted in the establishment of inns and taverns in main cities of the country in the eighteenth century, there were plenty of taverns in the country (a tavern mean an archaic or literary inn) where travellers from long distances took shelter and food. During this period, a number of dharamshalas were built by Kings for encouraging travel all over the country. Apart from dharamshalas, “Saris” were introduced by the Muslim rulers which provided the best possible facilities like food, accommodation etc. to travellers (R.N. Kaul).

Characteristics Of Hospitality Industry: (C. Bhattacherjee 2005)

Perishability: If the full capacity of the services is not utilized the services becomes perishable.
Variability: The quality of service varies to great extent.
Inseparability: Service is inseparable from the provider.
Intangibility: Hospitality is intangible but hotel industry in tangible you can touch, taste and feel the product.

In Indian context there is quite a lot of interdependence of Tourism Sector and Hospitality Sector.

Classification of Hotel (Hotel School of Hague Classification)

Recent Trends in Indian Tourism and Hospitality Industry

The Asian games in 1982 provided an opportunity to travel agents and tour operators to market India abroad and they grabbed it well. Encouraged by some incentives announced by government, five star hotels began growing all over the India. All these helped a lot in the healthy growth of tourism in our country. In fact, tourism business and hotel business go side by side and both are complementary to each other. In India, both approved and unapproved hotels are found but approved hotels have an edge over unapproved hotels in

Several respects. Hotels are granted approval from the department of tourism, Government of India at project stage and then are classified in one of the star categories. It is voluntary for a hotel to get approved status from the government, but only approved hotels can avail the various income tax incentives, import licences and other approvals.

There were 1300 approved and 477 unapproved hotels offering 98515 rooms in 2004 as against 1285 approved and 452 unapproved hotels offering 95722 rooms in 2003. The Indian hotel business is focused largely on foreign tourists with almost 70 percent business coming from this segment. The key operating characteristics of the hotel business are the occupancy rate and the average room rate. The room rates depend on the class, location and the image of the hotel. The occupancy rate is dependent primarily on the seasonal arrivals as well as the location of the hotel. Occupancy level of 70 to 80 per cent is considered good by industry standards. Average occupancy in India was 59.7 per cent in 2004 as against 54.8 per cent in 2003 and average room rate was Rs.2689 in 2004 as against Rs.2004 in 2003 (FH&RA). The position has been improving continuously.

The hotel industry and the 5-star hotels in particular are concentrated in the four metros, especially in Mumbai and Delhi. As many as 75 per cent of the 5 star deluxe rooms, 47 per cent of the 5 star ordinary rooms and approx 35 per cent of all the registered rooms are in the four metros. Due to phenomenal increase in tourism activities, the hotel business has grown beyond expectations. This is particularly true about international tourism and star hotel business.

At present about 789 million tourists are crossing international boarder every year and they are spending nearly 685 billion US Dollars. This figure was just 100 million in 1964. The figure is likely to swell to 1 billion by 2010 and 1.5 billion by 2020 as per projection by world tourism organisation. International tourists here in India were 3.5 million in 2004 as against 2.78 million tourists in 2003. Foreign exchange earnings from these tourists were about 23000 crores of rupees in 2004 as against Rs.16429 crores in 2003. During the year 2005, about 4 million foreign tourists came here and India earned 5 billion US Dollars from them. In the first 6 months of the year 2006, about 2.16 million foreign tourists visited India and foreign exchange earnings from these were 13441 crores of rupees. It is expected that this growth will continue during the next couple of years if no adverse incident happens in India or the South East Region. According to an estimate of CII, the number of foreign tourists visiting India is likely to increase to 50 million by 2020. As per estimates of Ministry of Tourism, 1,50,000 hotel rooms of different categories are required to be added to the existing available rooms in the next couple of years to accommodate all the foreign tourists and this will involve an investment of Rs. 35,000 crores. Obviously, there is a good scope for hotel business all over the world including India and these estimates will boost hotel business in India. The key factors spawning India’s hospitality industry growth are a booming economy and steady political scene, soaring service industry, FDI inflow, infrastructure growth and a boost for the tourism sector due to government funding. An estimated 4.4 million tourists are expected to visit India with an annual average growth rate of 12% in the next few years. The domestic tourist market is also flourishing. The commonwealth games in 2010 has also added to the demand for quality accommodation.

The hospitality and leisure industry comprises of mostly chains/multiple business units, widely scattered across the globe. With the advent of the Internet and the latest technologies, the industry is facing a constantly changing business environment requiring immediate and proactive adaptability in operations, customer relationship management and back office processes. Products and service offerings differentiation has been diminishing leading to consumers demanding fast and highly personalized services.

Problems of Hospitality Industry in India

Developing countries like India have failed to develop tourism and hotel industry to its potential due to one reason or the other. Indian share in tourism business at global level is far below than its capacity to develop this industry. Data available from the World Tourism Organisation available till 2003 shows France continued to maintain top slot with almost 75 million international tourists in 2003. Spain and USA consolidate the second and third position having 52.5 million and 40.4 million foreign tourists respectively. Even smaller countries like Singapore, Indonesia and Thailand etc. are doing much better business than India from tourism. It is because of the number of problems

faced by tourism and hotel industry in India. The hotel industry in India is facing a number of problems such as low occupancy rate, increasing competition, high taxes, increasing cost, fuel shortage, low profitability and so forth. Similarly, on the one hand, it is alleged that there is shortage of rooms to meet the varied requirements of different categories of tourists and visitors while on the other hand room occupancy rate is very low here in India. It was 59.7 per cent in 2004 as against 54.8 per cent in 2003. Hotels are compelled to give liberal discount to the potential customers particularly during the lean period.

Further, average expenditure of those who get commercial accommodation is comparatively low due to one reason or the other. Similarly, prevailing tax rates such as service tax, excise duty and custom duty on imported luxury car, beer, liquor etc. are very high. All these factors adversely affect the profitability of the hotels. This is particularly true about 5-star hotels in India. Thus, on the one hand, heavy investment is required in hotel business while on the other hand profitability in this business is adversely affected by the aforesaid constraints. These problems can be discussed under the following heads:

Problem of Seasonality

Hotel is indeed a seasonal business. There is seldom 100 per cent occupancy except in peak season. In India on an average, it is 59.7 per cent. Therefore, a hotel cannot use its property fully and it accounts for low income. The problem is aggravated in case occupancy is adversely affected owing to bad weather or any other reason such as slump in business, international crisis or disturbances etc. Food cannot be stored due to its perishable nature. Similarly, hotel staff cannot be reduced temporarily at the time of poor demand of rooms. All these account for poor earnings.

High Consumer Expectations

Consumer satisfaction is key to success for hotel industry. In these days, consumers are well informed and their expectations go on changing very frequently. Therefore, satisfying a consumer is a most challenging task as it depends not only on tangible but on intangible factors as well. The best of room comfort and the choicest products of culinary art fail to satisfy some people. Services have to be highly personalised in this industry. This makes the hotel industry the most difficult one from the marketing point of view.

3. Low Profitability

Revenue mainly comes from the rooms and sale of food & beverage in the hotel industry. Average occupancy level and average room rate have been found very low as indicated in table 1.2. However, slight increase has been noted in both in 2003-04. But it is not sufficient to increase the profitability level of the hotel industry upto mark. Further, on one hand food & beverage revenue is low while on the other hand food & beverage cost as well as labour cost is high as shown by below table which affect the profitability of the hotel industry adversely.

High Direct and Indirect Taxes

The hotel industry is unfavorably treated from taxation point of view. Hotels do not get tax benefits as enjoyed by other industrial enterprises. Rebates in corporate income tax, service tax, custom duty, municipal taxes etc. are offered to other industries. The hotel industry does not get these benefits despite its $low return on investment. Therefore, the industry cannot keep pace with inevitable changes in market trends.

Problems of Raising Funds

Most of the hotels are built in the heart of towns where land is very costly Further, cost of constructing a new hotel building or renovating an existing facility is also very high. Therefore, huge capital is required to complete construction or to renovate the existing one. It is indeed very difficult to mobilize huge funds from various sources. The poor financial viability of the hotel industry has further aggravated the position. The solution of these problems needs a very high degree of managerial skill and expertise.

Indian hotel industry – current and emerging trends

MANISH KHANNA

The constant transformation has made the Indian hotel industry more functional and practical and has gained a level of acceptance world over. The standards of facilities and services offered have evolved over the last decade towards the extensive use of technology, environment friendly services, pricing, market segmentation, regional preferences, etc. The Indian hotel industry has seen a significant growth in room inventory across categories from upscale luxury to limited services and, boutique and budget hotels. The occupancy and the room rates have seen continued gains both from the domestic and the international traveller in both the business and leisure segment.

With the continued growth in India’s GDP, improvement in the per capita income, and increased aspirational spending, the Indian hospitality sector is expected to grow faster than most countries around the world. According to the Consolidated FDI Policy, released by DIPP, ministry of Commerce and Industry, government of India, the government has allowed 100 per cent foreign investment under the automatic route in the hotel and tourism related industry. The inherent strength of the Indian economy has led to increased international visits to India. For foreigners, the travel time has increased to three-five days for business travel and from five days to seven-10 days for leisure travel. The government of India has announced a scheme of granting tourist visa on arrival (T-VoA) for the citizens of Finland, Japan, Luxembourg, New Zealand and Singapore.

The government has stepped up various reforms to accelerate the industry growth with liberalisation in the regulatory framework, investment friendly schemes, extensive support for creating a world class infrastructure, initiating better air and land connectivity, incentivising regional set-up in tier III and IV cities, exploring the untapped geographical resources. Currently 29 mega tourism projects are being initiated across 22 states. The government is focusing on the PPP and is looking beyond the traditional tourism avenues and on to new initiatives – medical tourism, sports and adventure tourism, religious circuit, wildlife safaris, rural tourism, eco tourism, cruise tourism and wellness tourism. But, still more concrete measures such as uniformity of state and municipal taxes, single window clearances, improvising lower bureaucracy in effective planning and execution, and safe and secure environment will be critical to the industry’s growth. According to World Travel & Tourism Council, by 2020, travel and tourism investment is estimated to should reach US$ 109.3 billion or 7.7 per cent of total investment. The future of the Indian markets and their ability to mature into destinations relies on concerted efforts, both by the relevant government bodies and the private sector players.

Federation of Hotel and Restaurant Associations of India states that India currently has over 200,000 hotel rooms spread across hotel categories and guest-houses and is still facing a shortfall of over 100,000 rooms. Leading hotel brands have pepped up their investments and are in various stages of commencement of new proprieties in India, both in metro and non- metro cities. Cities such as Hyderabad, Pune, Jaipur and Chandigarh have emerged as growth markets. The emergence of these secondary and tertiary cities has led to an aggressive increase in hotel development activity, which was previously dependent in just five main cities. Another trend that has now emerged in the various major markets is the growth of micro-markets, especially in the larger cities like Delhi, Mumbai, Chennai, etc, where travel time has increased. For example, Taj Group, while it was feasible to build two luxury hotels in Delhi, the presence of independent micro-markets has lead them to open business hotels in other parts of National Capital Region. Vivanta by Taj at Dwarka, Delhi and Gurgaon are the underconstruction Taj projects.

The Indian hotel industry is seeing huge spurt of foreign investment and international brands entering the fray. Most major international hotel brands such as Starwood, Hilton, Marriott, Hyatt and Accor already have a growing presence in India and they have an even stronger pipeline. Marriott International operates 11 properties across the country and plans to expand its network to 100 hotels over the next five-years. ITC Hotels also have projected its plan to open 25 new hotels under the Fortune brand over the course of next 12-18 months. The emergence of branded budget and economy segment hotels present tremendous opportunities. Keys Hotels, a brand of Berggruen Hotels, is setting up a leading chain of mid market hotels, resorts and service apartments across India and plans to open and manage 40 hotels over the next five years. So does, Ginger Hotel also plans to open 60 to 70 budget hotels in 23 locations across the country. No-frill chic is a new consumer trend that is going to deeply affect the hotel industry, by shifting consumer expectations and changing the traditional segmentations in which marketers try to squeeze – with decreasing success – the modern travellers.

Trendwatching defines the No-frill chic trend as:

“low cost goods and services that add design, third-party high quality elements and/or exceptional customer service to create top quality experiences at bottom prices.

No-frills chic is important to all consumer sectors because of its power to change consumer expectations. Frugal consumers will like the chic experience at virtually no extra cost, dumping ‘no-chic’ low cost offerings. Old-style ‘luxury’ consumers may be tempted to forego more expensive, traditional products and services. This is in many ways a natural evolution of the no-frills concept. In the end, there aren’t that many goods and services that require no experience at all.”

When it comes to hospitality, the concept is very well represented by a wave of new hotel companies that promise to (finally) bring some real innovation to the industry by combining style with budget, mixing the chic with affordable rates.

No-frill chic hotels want to appeal to both budget consumers who will love to experience some extra chic at no extra costs, and to the more demanding travellers who are ready to welcome a non-traditional concept of luxury and service. The spectrum is indeed quite wide, and ranges from the core “no-frills/back to the basics” model (very close to the low-cost airlines concept) to a more chic level, where also the sophisticated design-minded types and the business travellers can feel comfortably cocooned by stylish architectural details.

Small sized commercial hotels catering to budget guests: new alternative.

(Swig, 2000) has explained candidly, how broadening the foundation of services and technology can strengthen the independent hotels. Regardless of above current trends, independent small and mid-scale hotels will continue to be a viable brand alternative. Changing customer demographics, evolving products with new environments and new

technologies will add strength to this sector. The success of independent hotels depends on their ability to be distinctive in their market. They are more introspective in relation to their customers. They seek to develop products and link them to the specific consumer demand source. Without opting relationship to any soft brand, use of new technology as a vehicle can lower the competitive barriers. Utilization of internet to exploit their product will offer same visibility, presence, marketing and distribution as others. There are defined and willing customer bases to occupy their rooms and use facilities. The marketing options available should be applied favorably. However, previously narrow customer niches have to be expanded to find different products which reflect their own individuality and personality. (Gupta, 2009), feels with excellent hospitality at affordable rates, budget hotels can be the approach of the hoteliers.

According to Alessandro Florentine in 2000

This paper analyses budget hotels from the strategic perspective. The author argues that these hotels represent an innovative hospitality product concept and that the key to their commercial success lies in a purpose-designed service product formula. Budget hotels are considered the result of sound strategic management decisions in the international hospitality industry, and are seen as a product that is giving hotel organizations considerable growth opportunities, both in domestic and international markets, by expansion in a new market segment. Finally, it is argued that the budget hotel product concept offers more value for money to the new value-conscious travellers, and why the product is proving particularly successful in pulling customers down from the full-service segment, and up from inexpensive accommodation is highlighted.

Liping A. Cai in 2004:

This article identifies China’s state-owned economy and budget hotels as the most troubling segment of the country’s hotel industry. Based on personal interviews with operators and experts, the article examines the segment-wide problems and property-level symptoms, and attributes the segment’s failure to the state ownership. Through analyzing five key characteristics on a commodity-brand continuum, the article reveals the segment’s three critical issues of product differentiation, market segmentation, and brand development. Eight factors are determined that affect hotel operators’ preference towards various network forms for brand affiliation. The article concludes with the proposal for a three-stream research agenda.

Accoridng to Angela Monaghan in 2008

Britain’s business travellers are trading swanky hotel rooms for budget hotel stays as their expenses allowances are slashed in the wake of an economic downturn. Whitbread, the leisure group, said today that its budget hotel chain Premier Inn was benefiting from the trend towards lower cost travel, with bookings made through its business account cards up 40pc year-on-year in the 13 weeks to May 29, as companies sought ways to cut unnecessary costs. “There are clear signs that the corporate traveller is getting more savvy and recognizing value for money,” said Alan Parker, Whitbread’s chief executive. The trend helped to offset a slowdown in the holiday market, with like-for-like sales at Premier Inn up 10.7pc over the period. Like-for-like sales at the group overall, which includes the Costa coffee chain, rose 7.1pc.

The dawning of the 21st century signals a new era in international business travel both in terms of the number of businesspeople who are increasingly pursuing new ventures abroad and in the volume of business they generate. When combined, the income generated by the travel industry worldwide totals over $2 trillion per year, making it one of the ten largest industries. The competitive nature of hotels, airlines, cruise lines, incentive travel, and related businesses has led to several interesting trends in recent years.

First, the laws that govern business travel have become dramatically less rigid in the wake of the collapse of communism. Today, Americans can travel virtually unrestricted to most countries as long as they have a valid passport (good for ten years) and—for some countries—a visa (obtained through the embassy of the destination country, sometimes for a small fee). The United States has a reciprocal arrangement with most countries so that just as Americans can travel freely to other countries, their nationals can also travel to the United States for business or recreation without bureaucratic delays.

The European Union has further reduced the problems associated with business travel by providing a single passport for citizens of all member states so that travel between the more than 14 member nations is virtually unrestricted. Further enhancements of this nature are expected throughout Asia and in Africa in the years to come.

Business travel is one of the most important aspects of commerce today because with an international economy that is interdependent, businesses are sending sales and marketing personnel, scientists, and executives to learn about research, products, and production techniques both in their own country and abroad. An entire industry serves business travel clientele; the largest players include American Express Travel Services, Carlson Wagonlit Travel, and Rosenbluth, all of which have offices in most major cities.

The impact of business travel is profound; cities throughout the world have collectively spent over a billion dollars since 1980 to enhance their convention and tourism facilities, including Paris, Philadelphia, Boston, Tokyo, Seoul, and Beijing. Visitor and convention bureaus are especially important to business travel; these quasi-public agencies seek to attract major industrial conventions and trade shows to their cities. The resulting economic profit to hotels, restaurants, and other businesses is estimated to grow at about 17 percent in the coming years in the United States and about 4 percent internationally.

According to a study at Penn State University, the number of Americans traveling to the Pacific Rim on business will increase 14 percent by the year 2000, while the number of Pacific Rim residents traveling to the United States will increase by almost 27 percent. Similar numbers exist in Latin America. Due to lower petroleum costs, which affect airfare prices in particular, the actual costs of business travel have been kept reasonable.

Business travel poses as many problems as benefits. Crime against business tourists has increased in recent years, primarily in urban areas. Although the business travel industry is working with law enforcement officials, rental car agencies, and other industry players to reduce the severity and number of crimes against business travelers, security awareness throughout the industry is often high only after a major incident. Many business travel corporations are rushing to sponsor training seminars on how to protect hotel and motel guests, convention attendees, and other business travelers. Other business travel hazards include potential outbreaks of food poisoning at major banquets.

Although one would assume that the rise in teleconferencing, electronic mail, and faxes has diminished the need for business travel, the meteoric growth of the Pacific Rim and parts of Latin America have actually counterbalanced any negative impact from new technologies. Indeed, the costs of business travel often outweigh any other factor. It is not uncommon throughout Asia to have entire departments of leading manufacturers travel to the United States or Canada for a major business tour; often a reciprocal arrangement will follow so that American colleagues will then have the opportunity to visit plants in Asia. Out of such exchanges new partnerships and joint ventures frequently emerge.

OBJECTIVES OF THE STUDY:

Fixing the objective is like identifying the star. The objective decides where we want to go, what we want to achieve and what is our goal or destination. Every study is carried out for the achievement of certain objectives.

To understand the challenges and find solutions for alternative accommodation arrangements for company employees as they travel on official trips.
To study about Indian hotel industry and low budget hotel.
To find out benefits of low budget hotel in the hospitality industry

RESEARCH METHODOLOGY:

Defining the Research Problem and Objectives: it is said, “A problem well defined is half solved”. The first step in research methodology was to define the problem and deciding the research objective. The objective of the study will to get an insight into the business to business marketing with special reference towards Samsung products in Delhi city.

RESEARCH DESIGN:- The research design used in this study was both ‘Descriptive’ and ‘exploratory’.

RESEARCH INSTRUMENT: Research instrument is that with the help of which we collect the data from respondents. The questionnaire of our research consists of close ended and open ended questions.

DATA COLLECTION METHODS:

The data will be collected using both by primary data collection methods as well as secondary sources

PRIMARY DATA: Most of the information will be gathered through primary sources. The methods that will be used to collect primary data are:

Questionnaire
Interview

SECONDARY DATA: The secondary data will be collected through:

Text Books
Magazines
Journals
Internet

SAMPLE DESIGN

A sample design is a finite plan for obtaining a sample from a given population. Simple random sampling is used for this study. Nature of the research is Descriptive. Descriptive, it also known as statistical research, describes data and characteristics about the population being studied.

SAMPLE SIZE: 50

SAMPLING TECHNIQUE: Sampling Technique will be used in our study is Non-Probabilistic Convenient Sampling.

STASTICAL TOOLS

The tools used in this study were MS-EXCEL, MS-WORD. MS-EXCEL was used to prepare pie- charts and graphs. MS-WORD was used to prepare or write the whole project report.

REPORT WRITING AND PRESENTATION

Report Encompasses – Charts, diagrams

DATA ANALYSIS & INTERPRETATION – Classification & tabulation transforms the raw data collected through questionnaire in to useful information by organizing and compiling the bits of data contained in each questionnaire i.e., observation and responses are converted in to understandable and orderly statistics are used to organize and analyze the data.

Simple tabulation of data using tally marks.
Calculating the percentage of the responses.
Formula used = (name of responses / total responses) * 100

Tool of Analysis: Tool of analysis used was pie charts, bar graphs and values..

RESEARCH LIMITATIONS

The sample size being very small, that is only twenty five respondents, limited the scope and study of the project.
Taking the convenience sampling might have led to some bias as people with different age groups have different perceptions.
Time constraints put boundaries to the sample area and hence limited the extent of the study.
Value of any research findings depends critically on accuracy of data collected; data quality can be compromised via number of potential routes for e.g. Leading questions, biased interviews.

CHAPTER – 3

DATA ANALYSIS AND INTERPRETATION PRIMARY DATA

Graphical representation of respondent feedback

Evaluation of the Study:-

A detailed analysis of the study is necessary and is to be considered in order to compare the actual theory with that practical the variants of which may form the basis for improvements. Keeping this point in view and to fulfill the evaluation variants of which may form the basis for objectives of the studies an attempt has been made to segment the various respondents on the basis of some aspects collected from them through questionnaire. There are depicted through tables and graphs.

The copy of questionnaire administered is enclosed and the sample size was 50 respondents are enclosed at the end of this project. All the calculations and numerical interpretations are for 100%

In which purpose do you are travelling

TABLE – 1

Criteria	Frequency	Percentage
Business	27	54%
Leisure	15	30%
Others	8	16%