Unit 1

Introduction To Hospitality and Hotel

Industry
• Introduction to Hospitality Industry
• Industries related to Tourism
• Evolution and Growth of Hotel industry in The
World
• Evolution and Growth of Hotel industry In
India
 Introduction to
the Hospitality Industry

What is Hospitality?
Hospitality is the cordial reception and
entertainment of guests,visitors,or
strangers.

Hospitality is also known as the act of

generously providing care and kindness to
whoever is in need.
The Hospitality Industry is part of the travel
and tourism industry, which provides a wide
range of travel related services such as modes
of travel,accommodation,food and drinks,
recreational activities and other facilities
required by the modern-age traveller.
 ORIGIN AND GROWTH OF
HOSPITALITY INDUSTRY
• The origin and development of the hospitality industry is a
direct outcome of travel and tourism.
• Reasons for Travel : __________________???
• 3 basic needs of Humans are _________________, what
are difficult to procure while travelling? ___________ .
• This is where Hospitality industry Stepped in.
• Before Wheel, animals were used for travelling. – Horses,
Camels, Elephants
• People used to travel in Groups called caravans for safety.
• At night they took rest to avoid wild animal and bandit
attacks. This also gave rest to animals to overcome fatigue.
• For the night halt they selected places with water,
Fuel(wood) to cook food, and secure themselves from wild
animals by putting up a kind of Campfire around them.
 Primitive Lodging houses
• First inns date back to 3000 BC
• They were known by different names, such
as
• Dharamshala and Sarai in India,
• Ryokans in Japan,
• Paradors in Spain,
• Pousadas in Portugal,
• Coffee houses in America,
• Taverns and inns in Europe,
• Cabarets and hostelries in France and
• Relay houses in China.
• The earliest inns were generally run by families or
husband-wife teams who provide
 Large halls for travelers to make their own beds and
sleep on the floor.
 Modest wholesome food and drinks like wine, port, ale
etc.,
 Facilities for animals.
 Sometimes, entertainment and recreation by performing
folk songs and dances too.
• All of this for a Price.
• Not as clean and tidy as we see them today, DIY
concept for cooking and making beds with “No Frills
attached”
• Gradually Inns started Providing Beds to Travelers
• An INN Typically would have a Large hall with many
beds.
 Tourism Industry
• World’s Fastest growing industry
• Major source of FOREX, Employment
generation for many countries
• UNWTO – A global Forum promoting Tourism
• International arrivals In the world grew from
25 million in 1950 to 806 – 30 fold rise with an
annual growth rate of 6.5%
 UNWTO International Arrivals –
Statistics 2015

• Africa - 53 million (5%)

• Asia and the Pacific – 678 Million (23%)
• Europe - 609 million (51%)
• Americas - 191 million (16%)
• Middle East - 54 million (5%)
• “Tour” – A word derived from Latin meaning “ a tool for
making a circle”
• Tourism definition - Movement of people from their
normal place of residence to another place (with an
intention to return) for a minimum period of 24 hours to
a maximum period of 6 months for the sole purpose of
leisure and pleasure.
• Refined definition “ a visit to a country other than one’s
own or where one usually resides and works” how ever
it failed to take domestic tourism into account.
• UNWTO defines Tourists as “ People who travel to and
stay in places outside their usual environment for not
more than one consecutive year for leisure, business and
other purposes not related to the exercise of an activity
remunerated from within the place visited”
• Tourism categorized into
• 1. International Tourism 2. Domestic Tourism

1. International Tourism - when people visit foreign

country
• Requisites for International Travel – Valid Passport, Visa,
Health Docs, FOREX etc.
• A. Inbound Travel – refers to tourists of outside origin
entering a particular country.
• B. Outbound : Refers to tourists travelling from the
country of their origin to another country.

2. Domestic Tourism
• Tourism activity of people within their own country
• Travel is easy as there are no documents and formalities
 Importance of Tourism
• Tourism and hospitality – major revenue earning
enterprises of the world
• Travel became quite common
• People travel for - ???
• Higher disposable incomes, international
exposure refined tastes, needs for specialized
versions of products egs, quieter resorts, family-
oriented holidays and so on
• This led to an increase in demand for better
quality products in our sector feeding the growth
of hospitality sector .
 Growth Boosters
• Development of technology and transport such as low
cost airliners, jumbo jets, more accessible airports
boosted tourism growth
• Life style changes also helped to develop tourism
• Vigorous promotions of tourism products online,
besides aggressive marketing by TO and TA’s also
contributed to the growth of tourism
• Business related activities linked with tourism
developed the MICE concept
• Tremendous potential for employment generation and
FOREX
• Countries such as Mauritius, Malaysia, Singapore, Fiji
and Caribbean economies are driven by tourism
Tourism can contribute to economic growth
of the country in the following ways

1. Employment generation
a. Jobs in Direct service providers – Hotels ,
Restaurants, Tour escorts, guides, Travel
agencies
b. Jobs in Indirect service providers – hotel and
Restaurant Suppliers, supplementary
accommodation
2. Infrastructure development
• Tourism induces infra development to
become an important commercial or
pleasure destination, infrastructure through
good connectivity via. Rail, Road and Air,
adequate and variety of accommodations,
restaurants, telecommunication network,
medical facilities and so on.
3) Foreign exchange – when people spend large
amount of money on accommodation,
transport, sightseeing, shopping, an inbound
tourist will become an important source of
FOREX to our country.
 THE TOURISM INDUSTRY – Related industries

Accomodation Transportation Food&Beverage Retail Stores Activities

. Hotel .Trains .Restaurants .Shopping Malls .Festivals

.Motels .Passenger Ships .Bars .Gift Shops .Trade Fairs
.Time-Share .Airlines .Pubs .Art &Craft .Road Show
Shop
.Resort .Buses .Dhabas .Handicraft .Exhibitions
.Dak Bungalow .Cars .Take away .Handloom .Study Trips
.Sarai .Bikes .Retail Shops Emporium .Excursions
.Casino Hotel .Steamers .Kiosks .Antique Shops .Cultural
Events
.B&B Hotel .Cruise liners
.Condominium
 Hotels - Accommodation
• Commercial establishments providing food
and accommodation
• Though “star “ classification exists, no
standard method of assigning these ratings
• Hotel chains assure uniformity compared to
non-chain hotels
 Transportation
• In Latin “trans” means across and “portare” means to
carry ( To carry across)
• Industries involved in providing transport equipment
(automobiles) and transport services are the leaders in
most important national economies and are referred to
as transport industries
• A well developed transport industry is integral to the
success of any tourism economy
• Poor connectivity is one reason for not reaping the full
tourism potential of north eastern states of India such
as Arunachal Pradesh, Assam, Meghalaya, Manipur,
Mizoram, Nagaland and Tripura
 F & B service
• Retail establishments serving F&B to guests
• Includes dine-in to take- aways, simple –
expensive fine dining restaurants with hosts or
hostess to welcome with Bus boys,
sommeliers etc.
• Varied theme restaurants
• In tourist destinations restaurants provide an
opportunity to experiment local cuisine
 Retail and Shopping
• Tourists shop for day-to-day necessities and
mementos and souvenirs
• Shopping destination tours are being promoted
recently
• Singapore, Dubai, Bangkok attract shoppers for
gadgets, jewellery, antiques while Newyork,
Paris, London, Milan are fashion havens
• Many countries organize shopping festivals to
attract tourists with deep pockets.
 Travel Agencies
• A Retail business selling travel related products
and services i.e package tours on behalf of
suppliers like airlines, car/coach rentals, railways,
tour guide services etc usually for a commission
from the supplier.
• Separate departments for travel arrangements to
ordinary tourists and business travelers
• TA’s main function is to act as an agent selling
travel services on behalf of suppliers for
commission.
• They do not keep stock in hand
• They buy tickets only when customer requests for
them
• The suppliers offers a fixed percentage of sale as
commission
• The agencies offer discounts on packages by
shrinking their commission at times
• Other travel related business undertaken by large
chains are in-house insurance, car rentals, visa
services bureau de exchange
• They also plan itineraries and make necessary
arrangements for travel, stay, sight seeing besides
facilitating passports, visa a , insurance etc for them.
 Tour Operator
• Assembles various elements of the tour
• He combines travel and tour components to create a
holiday
• Ex. A seat on a charter plane + airport transfers
+services of Local Representative for a price
• Destination tours , adventure tours are planned by
them
• The reason for Tour operators market to exist in these
WWW era is the difficulty to make arrangements in far
flung places
• Lack of time, and the size of groups also added up to
their role as competent service providers
• They can influence and negotiate well with
locals and have better power in contracting
with suppliers. ( local transport, cruises, land
arrangement, tour guides, liaison with tourism
boards and other government authorities)
• This contacts and influences makes it easier to
create packages and special destinations that
are otherwise difficult and expensive to visit.
 Tourist Destinations
• Tourist attraction – A place of interest for tourists,
typically for its inherent or exhibited cultural
value, historical significance, natural or built
beauty, or amusement opportunities
• Historical palaces, museums, art galleries castles,
libraries, former prisons, carnivals, historical
trains, zoos, skyscrapers, bridges etc.
• Ethnic communities such as China towns, Turkish
markets, Indian markets, Jewish communities
around the world are some tourist spots of a
destination
• Brochures and flyers of popular destinations
are circulated in the areas frequented by
travellers.
• Some tourist destinations however give low
quality goods and services and over price
them. such places are commonly referred to
as Tourist Traps
• Areas around Niagara falls Canada, Fremont
street, Nevada
 Cultural Industries
• Responsible for creation, production, and
distribution of goods and services that are
cultural in nature and usually protected by
intellectual property rights
• Literary works, arts, crafts and other creative
fields
• Cultural industries are knowledge bases and
labour intensive, creating employment and
wealth
• By nurturing creativity and fostering
innovation, societies develop a cultural
heritage and enhance economic performance
• As tourists also travel to explore and soak in
the culture of the area, cultural industry is
very important to travel & Tourism industry
• Literature, Cuisine(Haleem, Ladoo),
Clothing(Gadwal, Pochampally), ethnicity like
Lambadas, Bonalu dances, Pothurajus, of
Telangana
 Leisure, Recreation and Sport
• Leisure or free time is time spent out of work and
regular domestic activity
• Recreation or fun is spending time in a manner
designed for refreshment of Body and Mind
• While leisure is more of rest or entertainment,
Recreation is active participation in activities one likes
the most. (Hobbies/Adventure)
• The spread of mass media and sport activities aided
with good marketing strategies is attracting larger
audiences making sporting events such as Wimbledon
or 20/20 cricket popular with fans willing to travel to
get first hand experience of their favorite game.
 EVOLUTION AND GROWTH OF HOTEL
INDUSTRY IN THE WORLD
• The invention of the currency and the wheel
sometime in the fifth century BC are regarded
as the two main factors that led to the
emergence of inn-keeping and hospitality as
a commercial activity.
• While Europe is Regarded as cradle of
organized hotel business, it is in the
American continent that one sees the
Evolution of Modern hotel industry over the
past century.
• The origin and Growth of Hotel industry in the world
can be classified into the following periods
 Ancient Era
 Grand Tour
 Modern Era
Ancient Era
• The earliest recorded evidence of hospitality facilities in
Europe dates back to 500 BC.
• Ancient cities like Corinth, in Greece had many
establishments offering food, Drinks and Beds to
Travelers.
• Privacy and personal sanitation were non existent.
• The primitive inns had basic facilities like cot/ bench in
corner of a room and at times even a stable.
• In the third century AD, numerous lodging houses
mushroomed along the extensive network of brick-paved
roads throughout Europe and Asia.
• These conditions prevailed till the Industrial
Revolution broke out in England in the eighteenth
century.
• The Industrial Revolution was the transition to new
manufacturing processes in the period from about 1760 to
sometime between 1820 and 1840.
• The development of railways and steamships during this
time ,made travelling more efficient, comfortable and
faster
• Travel became more business oriented than for education
or social.
• The lead in organized hotel keeping in Europe was taken
by Switzerland
• The early establishments in Swiss were patronized by
aristocracy who stayed in Chalets (small wooden
cottages)
• Between 1750 and 1825 Inns in Britain gained the
reputation of being the finest hospitality establishments
 Grand Tour
• The second half of 18th Century Prior to the French
revolution is (1789-99) is referred to as Golden Era of Travel
as the popularity of Grand tour gave a big push to the Hotel
Industry
• In those days Grand Tour of the European Continent is
considered a mandatory element of education of scions of
Wealthy families
• This tour lasted for several years and was a good business
opportunity for people in places like France, Italy, Germany,
Austria, Switzerland, Ireland to establish lodging,
transportation and Recreation Facilities.
• Far- sighted Entrepreneurs who smelt money in the exercise
,developed the skills of hospitality and pioneered the modern
hotel industry
Hotels emerged during Grand Tour Era
• Dolder Grand, Zurich
• The Imperial, Vienna
• Vier Jahreszeiten, Hamburg
• Les Bergues, Geneva
Dolder Grand, Zurich
The Imperial, Vienna
Les Bergues, Geneva
Vier Jahreszeiten, Hamburg
The Worlds first Tour Operator…?????
 Thomas Cook (1808-1892)
• He arranged to take a group of Temperance campaigners
from Leicester Campbell Street railway station to a teetotal
rally in Loughborough, eleven miles (18kms) away.
• On 5 July 1841, Thomas Cook escorted around 500 people,
who paid one shilling each for the return train journey, on
his first excursion. During the following three summers he
planned and conducted outings for local temperance
societies and Sunday school children.
• Four years later, he planned his first excursion abroad,
when he took two groups on a 'grand circular tour' of
Belgium, Germany and France, ending in Paris for the
Exhibition. During the 1860s he took parties to
Switzerland, Italy, Egypt and United States.
Statue near Leicester Railway Station
 Modern Era
• The advancement in Modes of Transport made
journeys safer, easier and faster enabling
economical and frequent mass travel
• The introduction of funiculars made high altitude
mountains accessible, leading to the growth of
hotels in Alpine Region
• Burgenstock and Giessbach are the hotels in
Swiss that owe their existence to the
development of Ropeways
• But this moment was short lived, the 2 world
wars especially the second war 1939-45 took
their toll on the hospitality industry
Name the Alpine Countries? One of
You Please 
• Travel business suffered due to the destruction.
• Again 1950’s saw a slow and steady growth, with the development of
Aircrafts and commercial passenger flights
• Flight Travel stimulated travel across the Globe and accelerated the
growth of Hotel industry
• Americans however are credited for changing the face of hospitality
industry with their innovations and aggressive marketing
• The opening of City hotel in Newyork in 1794 with 73 rooms marked
the beginning of present day hotel industry
• Before the City Hotel American hotel industry patterned on European
style Taverns and Inns
• With City hotel Other Large Hotels Started Mushrooming in America
Such as Exchange Coffee House in Boston, The second City Hotel in
Baltimore, and the Mansion house in Philadelphia.
CITY HOTEL ,NEWYORK(1794 AD)
• The opening of first class hotel “Tremont house” in Boston in
1829 is another Landmark in the evolution, with 170 rooms
and had many firsts to its Credits
• It was the first to provide Locks, indoor plumbing, Running
water and Bathing Facilities, besides providing a wash Bowl
,Pitcher and free soaps in its rooms.
• It was also the first to provide Front office services such as Bell
boys, and a Reception, as well as French Cuisine in The US.
• Throughout the 19th Century, The contest to build better
Larger and the Most Luxurious Hotels Continued
• Luxury hotels such as Grand Pacific, The palmer House, The
Sherman House in Chicago, The palace with 800 Rooms in San
Francisco were Built
TREMONT HOUSE, BOSTON(1829 AD)
• 1908 saw the emergence of the first business Hotel, The Statler
Hotel in Buffalo, New York (Sold to Hilton Group in 1954)
• This magnificent 450 Room building was a pioneer in many
ways, with innovations such as attached bathroom with running
hot and cold water in every room, an electric lamp on the desk,
and a radio in each room
• The decade of Great Depression in 1930’s led to liquidity of
most hotels in US
• But streamlined with slow and steady growth in 1940’s
• Increase in automobile travel led to the growth of Motor hotels
or Motels
• Motels offered free parking facilities, and served as rest houses
for people travelling between two cities or tourist destinations
• The following decades saw a forth in Motels and introduced
Budget hotels that offered basic facilities at half the price
• Gradually these evolved into country wide and international
Chains
 Evolution and Growth of Hotel
Industry in India
• Historically Indian travel was pre dominantly for
pilgrimage
1. For Hindus Chardham was one of the earliest
pilgrimages ( Badrinath, Rameswaram, Dwaraka, Puri)
• Other religions followed with visiting the churches of
Goa, Haji Ali Tomb in Mumbai,
• Golden Temple of Amritsar for Sikhs, Bodhgaya for
Buddhists.
• Ancient texts and Hindu mythology have many
references to Travel related to pilgrims where
accommodation and food was provided.
 Ancient India was well known for its Trade from
silk, spices, gold and gemstones
 Mode of transport was on animals on land, and
boats and ships for connectivity through Rivers and
seas between distant lands.
 This is the reason why many trading cities are
situated along the banks of the Rivers or Sea Ports.

Evolution of Hotel Industry in Our country can be

classified into three Periods
 Ancient and Medieval Era ( From Indus valley
civilization to 1600AD )
 Colonial Era (1601 to 1947)
 Modern Era (1947 Onwards)
Ancient and Medieval Era( Indus Valley
civilization to 1600)
• Hospitality in India stands Rooted with the
Hindu Philosophy “Athithi ___________”
• Though not clear when it became a
commercial activity, there is evidence of
accommodation provided for travelers and
guests in ancient literature.
• Dharamshala in sanskrit means religious
school
• Dharamshalas originated from village
choupals(meeting Points). These became the
places of lodging for travelers
• Gradually with the financial assistance of Locals,
Zamindars and influential people permanent
structures started shaping up.
• Literature shows other words such as
Annakshetras, bhojanalayas, paakshalas and
panthagars
• In Ramayana and Mahabharata, usage of the
word avasathagar (outer portion of the house) to
accommodate people invited to perform yagnas
or celebrations organised by kings
• Records of foreign visitors and philosophers speak highly of
the ancient hospitality showered by our ancestors.
• Chinese scholars Fa Hein ((399-419)Huien Tsang (629-
643)who came during the reigns of Chandragupta,
Vikramaditya and Harshavardhana have mentioned the
existence of shelters for travelers
• Huien tsang mentioned about the arrangements of food for
10,000 students in Nalanda University, one of the oldest
universities of the world (600 -1300 Ad till foreign invaders
destroyed it)
• In the medieval era i.e. between 11th and 13th centuries
sarais and Musafirkhanas were built, primarily for the
messengers of the postal system established by slave
dynasty / Mumluk dynasty.
• This system was refined by Allauddin Khilji, who
established Dak Chowkis with horse runners and
messengers to deliver post.
• The postal service employed 3400 people to manage
1700 stations for lodging and messenging services,
which also served as post offices.
• Mughals later continued to build Sarais which fulfilled
the needs of a traveler such as food, water, room, Stable
and fodder for livestock and sometimes a place for
worship.
• In Delhi we still find localities such as Katwaria Sarai,
Lado Sarai, Sarai Kale Khan that have retained their
names although these medieval structures are hard to
find.
 Colonial Era ( 1601 – 1947 )

• Hotel Industry in India started taking shape

during the colonial period and the advent of
Europeans in 17th Century
• Early hotels were mostly operated by
Europeans to cater to the whites and Indian
kings.
• First such properties were Portuguese
Georges, Paddy Goose’s and Racquent Court
opened in Bombay between 1837-40
• Within a span of 10 years these tavrs were
replaced by more respectable hotels such as
Hope Hall Family Hotel, Victoria Hotel, Pallanjee
Pestonjee 1840, Esplanade 1871, Watsons
Exclusively for Europeans, Auckland Hotel 1841 in
Kolkata which went on to become the Great
Eastern Hotel Post Independence.
• In December 1903, Jamshetji Nusserwanji Tata
inaugurated the Taj mahal Palace and Tower
Hotel, Overlooking the Gateway of India following
a racial discrimination incident refusing entry into
Watson’s Hotel for being an Indian.
• The Hotel which is an architectural marvel is
credited for being the first luxury hotel for Indians
by an Indian
• 1923 saw the opening of Grand Hotel by Shapurji
Shorabji in Mumbai
• A few years later Majestic Hotel was opened.
• Until 1900 almost all hotels were run as per
western traditions
• The indian twist to hopitality came back with the
opening of Sardar Griha in 1900 and
Madhavashram in 1908.
• The 2 world wars also bought a fresh lot of
hotels to port city of Mumbai during post war
times.
• The Ritz, The Ambassador, West End, which
opened during these years and are fondly
referred to as WAR BABIES by industry
historians
 Modern Era 1947 onwards
• Oberoi Group of Hotels founded by Rai Bahdur
Mohan Singh Oberoi
• Both Taj and Oberoi took over several British
properties post independence.
• They maintained high standards of service and
quality and established them.
• Followed by ITC
• 1949 local chapters of all 4 metros formed a
chapter by name regional hotels and restaurants
association
• These four associations merged to form FHRAI
in 1955
• FHRAI serves as an interface between hotels,
political leadership, government, international
associations and other stake hotels
• Ashoka Hotel – Delhi opened in 1956 became
the first luxury hotel built by the government.
• This hotel promoted Independent India’s first
International event, UNIDO conference (
united nations industrial development
organisation
• Realizing the potential of this business the
government formed the ITDC in 1966
• ITDC opened many large and small hotels
across India
• The most popular if ITDC was hotel Ashoka for
its quality services.
• Last decades saw the entry of International
chains in India
• Can you name some International chains???
• https://www.slideshare.net/Edgardsouza24/c
hain-hotels-of-the-world?qid=a6bec131-2c5c-
4fd5-999d-
9ef2e66b6a3f&v=&b=&from_search=23
• https://en.wikipedia.org/wiki/Statler_Hotels
• https://en.wikipedia.org/wiki/Tremont_House
_(Boston)
• http://www.statista.com/statistics/247264/tot
al-revenue-of-the-global-hotel-industry/

• file:///C:/Documents%20and%20Settings/user
/Desktop/%E2%80%A2%20Hotel%20industry_
%20RevPAR%20by%20region%202015%20_%
20Statistic.html
 LAND MARKS IN THE GROWTH OF HOTEL INDUSTRY

1650: Pascal opened a café in Paris and Café house in London.

1794: City hotel at 115 Broadway, New York, first building specially made
For a hotel.
1829: Tremont House, Adam and Eve of modern hotel industry was opened
At Boston (170 rooms).
1889: Cesar Ritz introduced luxury hotels such as Savoy, Carton and Hyde
Park hotels in England.
1890 – 1899: Fredrick Gordon and Sir Blonde maple launched Gordon
Hotels and Fredrick Hotels Ltd.
Late 19th Century: Famous Waldron of Astoria in New York.
18. 1. 1908: Buffalo Statter by Eusworth Statter is US considered to be the
Birth of commercial hotels.
1950: Two new concepts ‘Motels’ and ‘International Chain Operation’
1927: Stevens Hotels in Chicago, later Remanedas Hilton Hotels (3000
rooms)
Hotel Russia or Rossiya: Moscow (remained largest hotel of world for
Quiet sometime.)
Western Stanford: Singapore (remained largest hotel of world for
Quiet sometime.)
1930 Depression in World Economy: Decline in Hotel Industry.
World War Period: Up surge in hotels.
 GREAT FIRSTS IN THE HOTEL INDUSTRY
(some of the important developments in US hotel industry)
1846: Central heating

1859: Elevator
1881: Electric lights (two years after patent)
1907: In room telephones (31 years after invention)
1910: American Hotel Association (later AHMA) was formed (now AHLA)
1927: Radio in room (21 years after invention)
1940: Air Conditioning (mostly in public areas)
1950: Electric Elevator
1958: Free Television
1964: Hotel Inn Reservation system with central computer.
1965: Message light on telephone.
1965: Initial FO systems followed by room status.
1970: Color TV. (Invented in 1954)
1970 (early): E.C.R. (Electronic Cash Register)
1970 (middle): POS system.
1973: Free in room movies (Sheraton)
1983: In room personal computers.