Hospitality is about serving the guests so that they experience a “feel-good-effect.” Today, the hospitality sector is one of the fastest growing sectors in India. It is expected to grow at the rate of 8 per cent between 2007 and 2016. Many renowned global players in the hospitality industry are coming to India to capture the growing Indian market. Trends that will shape the future of hospitality sector are low cost carriers, budget hotels, service apartments, technology and loyalty travel. The top players in the Indian hospitality sector include ITC Hotels, Indian Hotels Company Ltd. (The Taj Hotels Resorts and Palaces), Oberoi Hotels (East India Hotels), Hotel Leela Ventures, Asian Hotels Ltd, Hotel Corporation of India and ITDC Hotels.
1. Classification of the Hospitality Industry
The industry can be classified into four segments7:
Five-star andfive-star deluxe: These account for 30 per cent of the industry. These are mainly situated in the business districts of metro cities and cater to business travellers and foreign tourists. These are considered to be very expensive.
Heritage hotels: These are characterized by less capital expenditure and greater affordability and include hotels situated in forts, palaces, castles, lodges, etc.
Budget hotels: Budget hotels cater mainly to domestic travellers who favour reasonably priced accommodations with limited luxury. These are characterized by good services and special seasonal offers.
Unclassified: This segment accounts for about 19 per cent of the industry. These are low- priced motels spread throughout the country. A low pricing policy is their only selling point.
Hotel ratings should be regarded only as general guidelines designed to assist guests in making hotel reservations decisions. The hotel industry has elaborate criteria in terms of service quality for categorizing hotels as Star and Diamond.
2. Star Rating
The Star classification guidelines are instituted by the Department of Tourism in order to be at par with international standards. The Star classifications of hotels are a function of the services provided by them. They are explained below:
Five-stars/grand heritage hotels/deluxeresorts (deluxe): These are luxurious hotels that offer a high degree of personal service. The hotel lobbies are sumptuous and rooms are equipped with stylish furnishing and quality linen. The amenities often include VCR, CD, stereo, a Jacuzzi tub and an in-room video library, heated pools and many more. A fitness centre, valet parking and concierge service round out the experience. There are multiple restaurants on site with extensive, exquisite menus. The room-service facility is also available 24 x 7. A concierge is available to assist guests. The typical national chains include Taj Hotels, Oberoi Hotels, etc.
Four-stars (superior): These are formal, large hotels with smart reception areas, front desk and bellhop services. The level of service is above average and rooms are well furnished with brilliant illumination. A variety in restaurant dining is available here. The amenities offered are room service, valet parking facilities, fitness centres, one or more pools and concierge services. A formal professional service is provided and the staff anticipates and responds to guests’ needs. The Hyatt and Marriott are example of hotel chains in this bracket.
Three-stars/heritage hotels/resorts (first-class): These hotels are usually located near a major expressway, business centre and/or shopping area, offer more spacious accommodation that include nice, spacious rooms and decorative lobbies. On-site restaurants may be average in size but will offer breakfast, lunch and dinner. Valet parking, room service, a small fitness centre and a pool are often available. Staff will be skilled in responding to the needs of the guests, and there will be a dedicated receptionist on duty. The Trident is an example of a hotel chain in this bracket.
Two-stars (moderate): These hotels are generally part of a chain that offers consistent quality and limited amenities. The hotel is usually small to medium-sized and conveniently located in the proximity of moderately priced attractions. The rooms will have a telephone and a television. Some hotels offer limited restaurant service on-site but may not have the convenience of room service. The staff is smartly turned out and provides competent, often informal service. The Days Inn chain is an example of a hotel chain in this bracket.
One-star/budget hotels/motels (economy): These hotels are usually located near affordable attractions, major intersections and entertainment channels linked conveniently by public transportation. The atmosphere will be more personal and furnishings and facilities will be clean but basic. They may not have a restaurant on-site but will usually be within walking distance to some good low-priced dining area. The RTDC chain is an example of hotels in this bracket.
3. Diamond Rating
The American Automobile Association (AAA) has provided a Diamond Rating system that covers all of North America including Mexico and the Caribbean as well as Canada and all the states in the US. A hotel must meet 27 basic requirements, covering comfort, cleanliness and safety to become AAA approved. AAA annually evaluates 55,000 lodging establishments and restaurants and rates them on a scale of one to five diamonds. AAA Diamond ratings system evaluates the service, amenities and decor of each hotel.
One diamond properties meets AAA’s basic standards for comfort, cleanliness and hospitality, while five diamond properties are the premier establishments that provide the ultimate in quality and service.
Five-diamond: These establishments are the ultimate in sophistication, luxury and quality of service offered. The hallmarks at this level include meticulous service, exceeding guest expectations and maintaining an impeccable standard of excellence. For example, the Ritz Carlton, Sarasota.
Four-diamond: The fundamental hallmarks at this level include an extensive array of amenities combined with a high degree of hospitality, service, and attention to detail. Accommodations are progressively more refined and stylish. For example, Disney’s Grand Floridian Resort and Spa, Gaylord Palms Resort, Hyatt Regency Grand Cypress.
Three-diamond: Properties are multifaceted with a distinguished style, including marked upgrades in the quality of physical attributes, amenities and the level of comfort provided. These establishments appeal to the traveler with comprehensive needs.
For example, Nickelodeon Family Suites, Holiday Inn Express Lake Buena Vista, Disney’s Animal Kingdom lodge.
Two-diamond: They provide modest enhancements to the overall physical attributes, design elements, and amenities of the facility typically at a moderate price. These establishments appeal to the traveller seeking more than the basic accommodation.
For example, Disney’s Pop Century Resort, Best Western Lakeside.
One-diamond: The establishments have basic buildings and landscaping. They meet the basic requirements pertaining to comfort, cleanliness and hospitality. These establishments typically appeal to the budget-minded traveller. They provide essential, no-frills accommodation. For example, Motel 6 Orlando-Kissimmee Main Gate East.
Source: Poornima M. Charantimath (2017), Total Quality Management, Pearson; 3rd edition.
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