FRONT OFFICE NOTES TOPIC -1

TOURISM INDUSTRY & ITS IMPORTANCE

•         Tourism is one of the world’s fastest growing industries and a major source of foreign exchange and employment generation for many countries. In early years of this century tourism was not looked as industry but as a collection of business whose common link was to provide service to travellers with increasing standard of living, fast technological revolution. Presently, the sphere of tourism is a world -wide phenomenon. It is regarded as a part of the globalization process. In essence, globalization involves the exchange flow of economic and intellectual items in terms of goods, knowledge, values and images, as well as people on a global scale.

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The word ‘tour ‘is derived from the Latin word tornus meaning a tool for making a circle. Tourism may be defined as the movement of people from their normal place of residence to another place (with the intention to return) for a minimum period of twenty-four hours to a maximum of six months for the sole purpose of leisure and pleasure.

Tourism can be categorized as international and domestic tourism

INTERNATIONAL TOURISM

When people visit a foreign country, it is referred to as international tourism

International tourist may be of following type:

Inbound(When tourist from other country come to destination)

Outbound( tourist originated from country of residence and move to other country)

DOMESTIC TOURISM

The tourism activity of people within their own country is known as domestic tourism. Travelling within the same country is easier because it does not require formal travel documents ad tedious formalities like compulsory health checks and foreign exchange. In domestic tourism, a traveller generally does not face much language problem or currency exchange issues.

IMPORTANCE OF TOURISM

Tourism is the major revenue earning enterprises in the world. They happen to be the top employers too. With several business related activities associated with tourism, the industry has tremendous potential of generating employment as well as earning foreign exchange.

1.                 Stimulation of Economic Growth: There are many countries in the world whose economy is fully dependent on tourism. It greatly influences the economy of the country.  It contributes significantly to a country’s gross domestic product (GDP). Tourists from the developed countries bring valuable foreign exchange, which is essential to developing countries like India to offset the balance of payments (BOP) position.

2.                             Maximization of Foreign Exchange Earnings: The major economic benefit in promoting the tourism industry is the, earning of foreign exchange. Foreign travellers must exchange their currency into local currency for their spending purposes. This means that initially the foreign exchange earnings of the host country increase by the amount of tourism expenditure. It helps in generating foreign exchange without exporting anything out of the country.

3.                             Creation of employment:  Tourism has brought many employment opportunities to people especially in the service related industries, retail sector, catering and transport ones. The tourism industry is a highly labor intensive service industry and hence is a valuable source of direct and indirect employment to millions of people. In many developing countries, where unemployment problems are very acute, the promotion of tourism can be great encouragement to economic development and especially, employment.

4.                             Development of infrastructure: Development and improvement of infrastructure is another important benefit. To become an important commercial or pleasure destination, any location would require the entire necessary infrastructure. The benefits from tourism infrastructure like airports, roads, water supply and other public utilities may be widely shared by other sectors of the economy. The benefits from tourism infrastructure like airports, roads, water supply and other public utilities may be widely shared by other sectors of the economy.

IMPACTS OF TOURISM INDUSTRY

The impact of tourism focuses on the specific change that tourism and tourists have initiated in the community: in particular explores the areas of work and property, power and conflict, social identity and family and belief. It has a multitude of impacts, both positive & negative, on people’s lives and on the environment.

1)                Economic Impact:  One of tourism’s most salient influences is on the economy of the host country. Many tourism texts open with statistics proving the huge economic impact that tourism has in terms of cash flows, employment, gross domestic product (GDP) and so on.

2)                Environmental Impact: The most outstanding result of environmental influence of tourism is its impact as the built environment.  A large hotel built overlooking good scenic beauty, beach. Shops have opened to service the visitors: the majority of outlets are geared towards the tourism market. Roads have been indented and built to enable easier access for coaches and berries. Beyond the valley, tunnels have been blasted out of mountains to ease access and an airport has been built in.

3)                Social impact: Tourism is related to the social system in a country and has definite impressions on the social system present in a society. With the development of tourism many facilities are created to motivate people to travel and get relived from the stress and burden of modern materialistic life. By touring different countries people get acquainted with different social customs and rituals; this shall create a strong bond of relationship with local community and creates a sense of affinity among different nationals of the world

4)                CULTURAL IMPACTS: The concept of cultural tourism has gained prominence as people are interested to know and get familiar with the life style, arts, music, customs and festivals of different parts of the world. Tourism can have an in allowing exchange of cultures in promoting greater awareness on both sides.

Negative impacts or limitation of cultural tourism:  Tourism as a unique and powerful phenomenon has a tremendous capacity of changing culture. Tourism is seen as having a strong influence on a culture, understood in the holistic sense, with impacts spreading throughout the culture.

a)        Threat is posed to traditional social values and weakens the cultural values.

b)        Exchange of culture tourism is allowing exchange of culture but with this the original culture is diluting day-by-day.

c)         Cultural tourism contributes to universal brotherhood and promotes international place. At the same time may transform the local craft, folk art and festivals to suit the demands of a tourist, which shall affect the originality.

HOSPITALITY AND ITS ORIGIN

Hospitality can be termed as a deliberate, planned and sustained effort to establish and maintain mutual understanding between an organization and the public. As per the Oxford Dictionary Hospitality is defined as “Reception and entertainment of guests, visitors, or strangers with liberality and goodwill”. The word hospitality is derived from the latin word “Hospitalitias”

The term Hospitality industry describes a wide range of business enterprises concerned with the transportation, feeding entertaining and housing of the travelling public. Airlines, bus companies, cruise lines, car rental agencies, amusement parks, tour operators, restaurants, bars, casinos, and hotels are all part of this industry.

The concept of hospitality is extremely old; it is mentioned in writings dating back to Ancient Greece, ancient Rome and Biblical Times.

& Two possible explanations of why ancient times people felt required to be hospitable: they felt that hospitality to strangers was necessary to their religious well-being and in others, they were hospitable only because of their own superstitious fears.

Hospitality in ancient Greece is understandable that certain elements of religion were intermingled with the idea. Missionaries, priests, and pilgrims formed a very large part of the travelling public. Often they were journeying to holy places, perhaps oracles or temples that had a dominant position in their religion.

& In ancient Persia, travelling was done in large caravans, which carried elaborate tents for use along the caravan routes. However, at certain points on these routes, accommodations known as Khans were constructed. These were simple structure consisting of four walls that provided protection not only against natural elements but also against enemies who attacked under cover of darkness.

& In the later years of the Roman Empire, taverns and inns provided shelter for travelling merchants, actors, and scholars. Accommodations were still primitive. Sometimes there were rooms for the people but no stables for the horses; more often there were stables but no rooms.

& The high spot of that era in terms of hospitality was the development by the Persians of post houses along the caravan routes.  These developed later than the khans and provided accommodations and nourishment for both soldiers and couriers.

& Marco Polo described the post houses known as yams as apartments suitable for a king. They were located 25 miles apart, perhaps equivalent of a day’s ride, and supplied fresh horses for the couriers carrying messages throughout the land. By Marco Polo’s estimate, there were 10,000 such posthouses in existence at the time of his journey to the far east.

Throughout the world hospitality houses were known by different names :

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

Mansions and Hospitia in Switzerland

Phatnal in Greece

Relay Houses in China

HOTELS AND THEIR EVOLUTION AND GROWTH

The origin and growth of the hotel industry in the world can be broadly studied under the following periods:

•          Ancient Era

•          Grand Tour

•          Modern Era

Ancient Era

The earliest recorded evidence of the hospitality facilities in Europe dates back to 500 BC. Ancient cities, such as Corinth in Greece, had a substantial number of establishments that offered food and drink as well as beds to travellers. The inns of the biblical era were of primitive type, offering a cot or bench in the corner of a room and, at times, even a stable. Travellers used to stay in a larger hall. Privacy and personal sanitation were non-existent. In the third century AD, numerous lodging premises mushroomed along the extensive network of brick paved roads throughout Europe and minor Asia (part of Asia adjoining Europe). The lodging houses were known as mansionis during that time.

These conditions prevailed for several hundred years, till the Industrial Revolution in England led to the development of railways and steamships, making travelling more efficient, comfortable, and faster. The Industrial Revolution also bought about a shift in the focus of travel that became more business-oriented than educational or social.

The lead in organized hotel keeping, as we see it today, was taken by the emerging nations of Europe, especially Switzerland. The early establishments were mainly patronized by the aristocracy, and took shape in chalets(small cottages) and small hotels that provided a variety of services. Between 1750 and 1825, inns in Britain gained the reputation of being the finest hospitality establishments.

Grand Tour

The second half of the eighteenth century, prior to the French Revolution (1789-99), is referred as the ‘golden era of travel’ as the popularity of the ‘Grand Tour’ gave a big push to the hotel industry. In those days, a Grand Tour of the European continent constituted as indispensable element of the education of scions of wealthy families in Britain. As this tour often lasted several years, it was a good business opportunity for people in the prominent cities of France, Italy, Germany, Austria, Switzerland, and Ireland to establish lodging, transportation, and recreation facilities. Far-sighted entrepreneurs, who smelt money in the exercise, developed the skills of hospitality and pioneered the modern hotel industry.

Prominent among the hotels that emerged during this period were Dolder Grand in Zurich, The Imperial in Vienna, the Vier Jahreszeiten in Hamburg, and Des Bergues in Geneva. In 1841, a simple cabinet maker, Thomas Cook, organized a rail tour from Leicester to Loughborough and immortalized himself as the world’s first tour operator.

Modern Era

The improvisation in modes of transport made journeys safer, easier, and faster, enabling economical as well as frequent mass movement. The introduction of Funiculars (the ropeway) made high altitude mountains accessible, leading to the growth of many hotels in the Alpine ranges. Bürgenstock and Giessbach are among the hotels in Switzerland that owe their existence to the development of the ropeways.

The two world wars, especially the second (1939-45), took their toll on the hospitality industry. The massive destruction caused by the war and the resulting economic depression proved to be a major setback for travel business. The 1950s witnessed slow and steady growth of travel in the European continent. The development of aircraft and commercial passenger flights across the Atlantic stimulated travel across the globe, and in the process accelerated the growth of the hotel industry.

But it is the American entrepreneurs who are credited with literally changing the face of the hospitality industry with their innovations and aggressive marketing. The inauguration of the City Hotel in New York in 1794 marked the beginning of the present-day hotel industry. It was a ‘giant’ building at that time, with 73 rooms, and it went on to become a favourite meeting ground for socialites.

Prior to the establishment of the City Hotel, lodging facilities in the American continent were patterned on European style taverns or inns. The City Hotel, however, triggered a race of sorts among American hoteliers, resulting in the construction of large hotels like the Exchange Coffee House in Boston, the second City Hotel in Baltimore, Mansion House in Philadelphia, etc. the opening of the Tremont House in Boston is another landmark in the evolution of the hotel industry. Regarded as a forerunner of luxury hotels, the 170-room hotel had many firsts to its credit. For example, it was the first to provide locks, indoor plumbing, running water, and bathing facilities, besides providing a bowl, pitcher, and free soaps in its rooms. It was also the first to provide front office services like bell boys and a reception. It was also the first hotel to serve French cuisine in the US.

Throughout the nineteenth century, the contest among hoteliers to build better, larger, and most luxurious hotels continued. Several luxury hotels, like the Grand Pacific, The Palmer House, and The Sherman House in Chicago, as well as The Palace (with 800 rooms) in San Francisco were built. The year 1908 saw the emergence of the first business hotel, the Statler Hotel in Buffalo, New York. This magnificent 450-room multi-storey building was a pioneer in many ways. Some of the innovations included an attached bathroom with hot and cold water in each room, an electric lamp on the desk, and the radio in each room.

The decade of the great depression in the 1930s witnessed the liquidity of most the hotels in America. The hotel industry streamlined with slow and steady growth during the 1940s. The increase in automobile travel in the 1950s led to the rise of ‘motor hotels’ or motels, a new category in the hotel industry. The motels, which offered free parking facilities, served as rest houses for people travelling between two cities or tourist destinations. The following decades saw the growth of the motels on a large scale, an also the introduction of budget hotels that offered basic facilities at half the rates. Gradually, with the passage of time, these evolved into countrywide and international chains.

HOTELS EVOLUTION IN INDIA

Ancient & Medieval

In India the concept of shelter for travellers is not new. In fact, it is as old as its recorded history. The historical records are replete with mention of viharas, dharamshalas, sarais, musafirkhanas, etc.

The ancient Buddhist monks were probably the first to institutionalise the concept of a shelter in India. The cave temples scattered all over the south-western region of India have both a chaitya (sanctuary) for worship and prayer and a vihara (monastery).

These monks, although living in their quiet retreats, away from towns and villages, were nevertheless mindful of the needs of travellers and pilgrims who found shelter and food at these monasteries.

It is interesting to note that these monasteries are located on the ancient trade routes between important deities of the region.

It is gathered from some inscriptions that merchants gave liberal donations for the construction and maintenance of these establishments. Mere charity was obviously not the motivation in these displays of generosity. The trader travelled with their merchandise and money on these routes and the viharas were their hotels.

In the medieval period this ancient institution gradually assumed a more secular character. Although religious centres invariably had dharamshalas and musafir khanas attached to them, the caravanserai appeared as an exclusive traveler’s lodge with a nanbai or cook attached with it.

Sher Shah Suri, the Afghan Emperor and the builder of the Grand Trunk Road, is credited with having built caravanserais at regular intervals all along this highway creating favourable conditions for commerce and travel. However, he was not alone in this venture. The Mughals built such facilities all over their empire.

The sarais in India like inns in Europe or the stagecoach stations in the USA of the eighteenth and nineteenth centuries stood all along the well-travelled routes. They provided food and shelter to the travellers and fodder to their horses.

The amenities these early hotels offered would seem to us to be primitive but they conformed to the lifestyle of that age.

With the passage of time the age-old institution of the sarai or the inn adapted itself to the ever-changing and constantly growing requirements of the market and has evolved into the modern hotel.

Colonial era

The development of hotel industry in India is also continuous and satisfactory. The British introduced hotels in India mainly for their own use or for foreign visitors.

Some seventy years back, baring the Taj Mahal Hotel in Mumbai, almost all hotels in India were owned and operated by the Britishers and the Swiss. There were Albion Hotels, Victory Hotel and the Hope Hall. The arrangement in these was an excellent one.

Western-style residential hotels are comparatively of recent origin in India. These hotels were first started about 160 years ago mainly for princes and aristocrats and high dignitaries.

The credit for opening the first Western-style hotel in India in the name of British Hotel in Mumbai in 1840 goes to Pestonjee who is the pioneer of Western-style hotels in India. The Auckland Hotel was started in 1843 and in 1858 it was renamed as the Great Eastern Hotel.

Today there are a number of western-style hotels in Kolkata Great Eastern, Oberoi Grand, Kenilworth, Park, Hindustan International, Taj BengalEtc.

By the end of the 19th century, there were many western-style hotels in South, like Imperial, Albany, New Woodland, Elphinstone, Napier, Pandyan (Madurai), Bangalore International, West End (Bangalore), Savoy, Ritz (Hyderabad), Palm Beach (Visakhapatnam) etc.

 Modern era

The twentieth century can be called the turning point in the history of the hotel industry in India. It was during this period many big business owners entered into the field.

In 1904, Jamshedji Tata opened the Taj Mahal Hotel in Mumbai. Front facing the Mumbai harbour and overlooking the Gateway of India, it was until recently, the largest hotel in the East.

It is rated among the top ten hotels in the world. Jamshedji felt that it was essential for the advancement of the country that it should have an up-to-date hotel to provide facilities and comforts to visitors from all parts of the world.

Today there are many hotels in the chain including the President Hotel, the Fort Auada Beach Resort, the Lake Palace (Udaipur), the Rambagh Palace, Taj Palace (New Delhi), Taj Bengal (Kolkata) and many more.

The Indian Hotels Company Limited, owned by Tatas manages the famous Taj group of Hotels. This chain has fifty-five properties in India and abroad. It has drawn up a plan of Rs. 1,500 crore to add forty more hotels to its present fifty-five. The Taj Hotel in Mumbai, the Taj Palace Intercontinental in New Delhi and the Taj Bengal in Kolkata account for 76 per cent of its profits.

Another entrepreneur who entered the field of hotel industry is Rai Bahadur Mohan Singh Oberoi who opened a chain of Oberoi Hotels in India and abroad. Mr. Oberoi started his career as a clerk but later became a partner in the Clarks Hotels, Shimla.

In 1933, Mr. Oberoi took over the Grand Hotel, Kolkata on lease and gave it a new look and new life. Mr. Oberoi built a hotel on Gopalpur on sea, in Orissa, Mount Everest in Darjeeling, the Mount View in Chandigarh and the Palace in Srinagar to his chain of hotels.

In 1973, Oberoi commissioned the 500-room luxury hotels the Oberoi Sheraton, Mumbai. It is a product of Indo- American partnership. Other hotels of Oberoi chain are Oberoi in Singapore, Abu Dhabi, Sudan, Zambia, Egypt, Saudi Arabia, Fiji, Mauritius, Indonesia, Zanzibar and Colombo.

Oberoi’s School of Hotel Management in Delhi recognised by the International Hotel Association, Paris, trains up young people from different countries.

BRIEF INTRODUCTION TO HOTEL CORE AREA WITH SPECIAL REFERENCE TO FRONT OFFICE

A hotel or an inn is defined by the British Law as a ‘place where a bonafide traveler can receive food and shelter, provided he is in a position to pay for it and is in a fit condition to be received’.

The core areas of hotel

Room Division: Front office & House keeping

These departments together are responsible for maintaining and selling the rooms in a hotel these departments directly or in directly generate more revenue than any other department.

Food and Beverage Department

F& B Service

Kitchen This department is headed by the F&B director it includes restaurant, bars coffee shops banquets room service kitchen and bakery

Human Resource Department   Recruitments, orientation, training, employee welfare and compensation, labor laws and safety norms for the hotel come under the purview of this department.

Sales and Marketing Department The function of this department is fivefold sales, personal relationships, advertising, getting business and market research

Purchase Department The procurement of all departmental inventories is the responsibility of the purchase department

Financial Control Department Financial controller is responsible for ratifying inventory items, budget preparation and maintains the hotel accounts

Security Department

The security department is responsible for the safeguarding the assets, guest and employees of the hotel