all front office notes

An Introduction to Hospitality

The hospitality industry is a part of a larger enterprise known as travel and tourism industry. The travel and tourism industry is a vast group of business with one goal in common : providing necessary or desired services to travelers. Advances in transportation enabled more people to travel greater distances at less cost spreading tourism across the globe. From modest origins, hospitality and tourism rose to become two of the largest world wide industries.

Warriors or traders were the early travelers but they did not have hotels to accommodate them. The warriors used tents but the merchants seeking to trade tools, clothing and livestock, traded merchandise for lodging. The inns offered little more than a cot or a bench in the corner of a room or a stable. Most of them were private residences that offered temporary residence or lodging to strangers. Guests stayed in large communal rooms where sanitation and privacy were non-existent. After the establishment of money in 6^th century BC, innkeeping was one of the first commercial enterprises and hospitality was one of the first services for which money was exchanged.

In the third century AD, Roman Empire developed an extensive system of brick paved roads throughout Europe and Asia minor. Small road side lodges were constructed due to increase in the road transport. During the Industrial Revolution in 1700s, the Europeans began to combine food and beverage service with lodging. No attention was given to sanitation and beds as well as rooms had to be shared with other travelers. These early European inns were unsuitable for aristocrats. To accommodate wealthy travelers, luxurious structures were erected. These offered private rooms, individual sanitation and all comforts of a European castle. These elegant new establishments adopted the French name for mansion, ‘hotel’. The rates they charged were very high and well beyond the means of common citizens.

In colonial America, inns were modeled after European inns. Beds and rooms had to be shared with strangers. Throughout 1800s, American innkeepers improved their services and continued to build larger properties.

Most of these were located in seaport town since sea transport was very widely used mode or travel and transport then. The first American hotel the ‘City Hotel’, opened in 1794 in the New York city. It was one of the largest building in the city and was built exclusively for hotel purpose. It had 73 guest rooms. ‘Adelphi Hotel’ in New York was the first high-rise structure in the city.

In 1829, a large new hotel was constructed in Boston. ‘Tremont House’ was the earliest first class hotel in America and brought revolution in the hospitality industry. This hotel was the first to offer private rooms with locking doors. Each guest room had a wash basin and a water pitcher and a bar of soap. Other innovations included a full time service staff, a French restaurant which was located in the lobby, etc. These American hotels became important social centers and unlike their European counterparts, welcomed anyone who could afford the reasonable rates. Meanwhile in Europe, sanitary lodging continued to be regarded as a privilege to be enjoyed only by the aristocracy. But in democratic America clean and comfortable accommodation was available to any middle class worker or family.

In early 1900s, a new type of traveler entered the picture, the traveling businessman. For him the world class hotels were too expensive and the old style inns too unsanitary. A new type of lodging establishment was opened for these type of guests - ‘the commercial hotels’. It was opened by Mr. E. M. Statler, at Buffalo, New York, in Jan. 1908. It was the beginning of the chain hotel concept. This hotel provided private sanitary rooms with private bathroom. The guest received a pitcher of ice water and morning newspaper everyday. “A room and a bath for a dollar and a half “ was well known among American travelers.

The great Depression nearly wiped out the hotel industry. But one hotel operator, Conrad Hilton, managed to stay afloat as a result of his oil and gas investments. Around 1940 - 1950, the Hilton Hotel corporation built or bought numerous luxury hotels around the world and competed with the largest hotel chains of the time Sheraton and Statler.

With the end of world war II, the hotel industry unexpectedly entered a new era of prosperity, Americans began traveling as never before. With an automobile in every garage, Americans began touring the country with their families. For this new type of traveler - the vacationing family unit - the formality of a traditional hotel was inappropriate. Families traveling in their cars needed casual lodging that was accessible from major highways and had ample facilities for parking. The early these properties were small and had fewer than 50 rooms. Most of them were owned and operated by a couple and were called Mom and Pop properties. By 1960, the motor hotel or the motel, had become an permanent and influential part of the hospitality industry. By this time the motels had over 100 rooms with a separate parking space for each unit.

In 1960s, a new type of lodging outlet - the economy, or budget hotel entered the picture. These lodging establishments sold only room space without F & B service. To save on construction cost, the economy hotels were built on inexpensive land and had small lobbies. They also hired minimum staff. By minimizing costs the budget hotels were able to give much lower room rates than their competitors. The first successful economy hotel, ‘Travelodge’, opened in Tacoma, Washington, in 1956 but the chain expanded nationwide by 1966. By early 1970s the idea of low rate motel/s hotels had captured the imagination of investors mini bars are the standard amenities of most budget hotels. These hotels / motels are also called as no-frills hotels.

By 1973, the no. of travelers staying in motels surpassed the no. of people staying in full-service hotels. To compete with these low end properties, mid-market hotel chains introduced their own limited service hotels. Theses hotels combined some of the features of the full service hotels with the cost saving of the budget hotels / motels. eg. Holiday created the limited service Hampton Inn chain and Marriott created Courtyard hotels. In these hotels all the rooms have separate living and sleeping areas. The lodging trend of the 1990s is towards epanded services made possible through consolidation of responsibilities. Guest services departments are found in hotels of all classes. These departments combine services that traditionally were performed by bell or door attendent, a concierge and an in house travel agent. Two new concepts in the hotel industry are ‘The All Suite Hotels’ and ‘The Residential Hotels’.

TOURISM

Definition:

--- It is the movement of people from their normal place of residence & work for a period of not less than 24 hours and not more than 1 year. (according to W.T.O.)

--- The sum of phenomenon and relationship arising from the travel as it does not lead to permanent residence and is not connected to any earning activity. (by Henniker & Kroff)

--- Tourism covers the social activity of those who travel for a period of 24 hours or more in a country other than the one the person usually lives in (The league of nations in 1937)

--- Tourism is a temporary, short term movement of people to destinations outside the places where they normally live and work and their activities during their stay at these destinations, including day visit & excursion. (By tourism society of Britain)

--- Tourism may be defined in terms of particular activities selected by choice and undertaken outside the home environment. Tourism may or may not involve overnight stay away from home. (A.I.E.S.T, 1981)

--- Tourism – The activity of temporary visitors staying at least 24 hours for leisure, business, family or meeting.

--- Excursion – The activity of temporary visitors staying less than 24 hours but excluding people in transit.

TOURISM INDUSTRY

I. Comprised of a broad range of business and organizations that are related to virtually all the areas of economy.

« The components include all suppliers of goods and services which the tourists require.( according to Mr. A.J. Bunkart)

II. Tourism industry comprises those organizations that are :

« In the business of providing goods and services, to meet the distinctive needs of some identifiable collection of tourists.

« Cooperate with one another to some degree in doing so.

(According to Mr. Leiper)

III. According to Kaiser and others there is no such thing as tourism industry.

What happens is a collection of several industries that function separately with various types of links with tourists. These links can be both incidental as well as purposeful, direct or indirect.

In the seventh 5year plan (1985-90) tourism was given the status of an industry by govt. of India.

Hence as a plan objective its development was listed for the first time in the planning process. In May 1992, National Action plan was drawn for its growth and development.

Primary and secondary constituents.

Primary or major constituents :

1. Transport

2. Accommodation

3. Intermediaries

4. catering and food

5. Govt. Dept., tourists information centers ( tourists organizations)

Secondary constituents :

1. Shops and emporiums

2. Handicrafts and souvenirs

3. Local transportation

4. Coolie and transport assistance

5. Communication services.

6. Advertisement agencies

7. Publishing industry

8. Artists, musicians and performers

TOURISM

International Domestic

Inbound Outbound

International tourism - When the travel is from one country to another.

Domestic tourism – When the travel is within the country that is trip taken

by a tourist within his/her own country or where the origin and destination are in the same country.

Inbound - It refers to tourists entering a country.

Outbound – It refers to tourists leaving their country of origin to another.

CLASSIFICATION BASED ON MOTIVES OF TRAVEL

TOURISM

Leisure Business

1.Pleasure 1.Conventions

2.Relaxation, rest, recreational. 2.Conferences

(holiday, vocational, tourism) 3.Seminars

4.Meetings

àCultural tourism

àSpiritual & religious tourism

àEthnic & family tourism

àSports & adventure tourism

àHealth tourism

«Miscellaneous Motives

àStatus & prestige

àFor the sheer joy of traveling

àShopping

ECO TOURISM

All tourism comprises either mass tourism or alternative tourism. Eco tourism is another subset of natural area and may combine elements of both nature based and adventure travel.

Eco tourism is responsible is responsible travel to natural areas which conserves the environment and improves the welfare of the local people.

PRINCIPLES OF ECO TOURISM

Eco tourism comprises of a number of inter-related components, all of which should be present for authentic eco tourism to occur. There are five key principles which are fundamental to eco-tourism.

1. Nature Based:

Based on natural environment with a focus on its biological, physical and cultural features.

2. Ecologically Sustainable:

All tourism should be sustainable ecologically, socially and environmentally.

3. Environmentally Educative:

It attracts people who wish to interact with the environment in order to develop their knowledge, awareness and appreciation of it.

4. Locally Beneficial:

It not only benefits the community and the environment but also improves the quality of tourist experience. Local communities can provide knowledge, services, facilities and products.

5. Tourist Satisfaction:

Satisfaction of visitors is essential in long term viability. Visitor safety in regard to political stability. The eco tourism experience should match or exceed the realistic expectations of the visitor.

IV. EMERGING STYLES OF ECO TOURISM

1. Frontier Eco tourism:

It involves individuals or small groups (10 or less) people who utilise non-motorised forms of transport. E.g., walking or canoeing.

2. Small Group Eco tourism:

Involves individuals or relatively small group (15 or less) who utilise motorised forms of

Transport. E.g., four wheel drive.

3. Popular Eco tourism:

It involves larger number of visitors to, through or across a country’s best known and most popular natural attractions. It relies on high capacity mechanised forms of transport. E.g., buses, large boats.

V. ECO TOURISM IN INDIA

In the last 20 years India has opened its doors to international visitors and is now fostering tourism largely to gain an increase in foreign exchange earnings to help its economy.

In 1996, 2.2 million international tourists visited the country. However India’s tourism infrastructure is barely keeping pace with the industry increase and problems are evident in accommodation, transport and personnel sectors. In addition, India has real problem with environmental pollution and tourist pressures causing substantial damages to its natural treasures.

India’s focus should be better redirected towards sustainable tourism. Strong elements in support of this approach include India’s natural and cultural attractions, its unique blend of natural and cultural environment and its expertise in small package tours.

Another key for India would be to become involved in the Indian Ocean Tourism Organisation. India should plan the regions so that a balance is maintained among the natural, cultural and economic environment.

HOTEL

A hotel or inn may be defined as an establishment whose primary business is providing lodging facilities for the general public and which furnishes one or more of the following services.

• Housekeeping service
• Food and beverage service
• Bell and door attendant service
• Laundry and dry cleaning
• Concierge
• Use of furniture and fixtures

Hotels range from 50 to 2000 rooms, sometimes more. Inns usually have between 5 to 50 rooms.

CLASSIFICATION OF HOTELS

Hotels are classified on the basis of :

1. SIZE: Depending on the number of rooms, hotels are classified as
• Under 150 rooms
• 150 to 299 rooms
• 300 to 600 rooms
• More than 600 rooms

2. TARGET MARKET: Depending on the clientele hotels are classified as
• Commercial hotels- business clientele.
• Airport hotels- transient or stop over for airline passengers.
• Suite hotels- VVIPS, dignitaries, long staying guests.
• Extended stay hotels- Long staying guests.
• Residential hotels- generally for diplomats.
• Resorts- Recreation and leisure for holiday makers.
• Bed and breakfast- travelers.
• Timeshare and condominiums- Holiday makers.
• Conference centers / Convention hotels- for conferences, seminars and conventions.
• Casino- gambling / games.
• Alternate lodging properties- budget travelers.

3. LEVELS OF SERVICE:

· World class service- luxury service

· Mid range service

· Economy / limited service.

4. OWNERSHIP AND AFFILIATION:

· Independent hotels- single / stand alone properties

· Chain hotels- more than hotel being part of a group.

· Management contracts- Owners hire a management company to run their hotel.

· Franchise- using the name of a established chain of hotels by paying a fee.

· Referral groups- Independent hotels get together, form a group and assist one another in getting business.

Hotel

Definition

A hotel or inn may be defined as an establishment whose primary business is providing lodging facilities for the general public & which furnishes one or more of the following services.

Services

a) Food & Beverage b) Housekeeping c) Concierge d) Bell & Door attendant service e) Laundry & dry cleaning f) use of furniture & fixtures.

Hotels range from 50 to 2000 rooms & sometimes more. Inns usually have b/w 5 to 50 rooms.

Hotels are classified on the bases of :

SIZE-

Includes no. of rooms & are classified as :

Small - upto 150 rooms

mid sized - 150 - 299 # s

large - 300 - 600 # s

very large - 600 + # s

II. TARGET MARKET

Clientele the hotel has or the clients they serve to.

a) Commercial Hotels

i. Location - Commercial area, down town areas, business districts & also in the heart of the city.

ii. Clientele - Businessmen or corporate.

iii. Services / Facilities - Good communication rooms conference rooms & also secretarial services. Highly specialised Business Centres.

Facilities in Business centers

Lounge with reception area, sitting area, with newspaper, national & international, magazines, televisions, Reuters, Conference Rooms ranging from capacity of 2 to 25 people, Secretarial Services, Stationary, Photo Copier, Fax, Binding, Lamination, Interpreters can also be arranged. Computers & internet connectivity also a guest can hire mobile phones & laptops from business centers. It may also have a small library.

Facilities in Club / Business Floors

2 phonelines ii) Fax Machine iii) Coffee Maker iv) Internet Facilities v) Business Kit & Large Study Table vi) Mostly junior suites vii) Separate reception to save time c/a club lounge or club reception area.

These are mainly for Businessmen Lounge may serve breakfast, high tea & cocktails too. eg. Oberios, Taj, Hilton towers.

b. Airport Hotels -

i. Location - Near airports

ii. Clientele - Stopovers, airline staff.

iii. Service / Facilities - Exchange rate / airport transverse travel desk (book tickets & updated High Schedule), more staff at night shift.

Also c/a transit hotels,  length of stay is not long.

e.g. - The Leela, the Grand Hyatt

c. Suite Hotels :

i. Location - not in commercial areas, but in posh areas.

ii. Clientele - VIPs, diplomats

iii. Services - High profile hotels, not very high facilities e.g. Lotus suite.

d. Extended Stay Hotels :

i. Location - near by a residential area.

ii. Clientele - Journalists, Students doing research.

iii. Services - Extremely less services, may have a not so costly. e.g. Lodges.

e. Residential / Apartment hotels

i. Location - upmarket residential area

ii. Clientele - families staying for maybe 2 - 4 years.

iii. Services / facilities - Ample parking, Swimming pool, Gym, Housekeeping, Butter Services, Laundry Services it also has a complete kitchen. Are like apartments can have 1 to 4 bedrooms. e.g. Taj Apartments.

f. Resort

i. Location - Near scenic beauty, can be by a beach or mountains.

ii. Clientele - Holiday markers, travelers, families.

iii. Services - Recreation & Leisure facilities Swimming pool, Gym, Indoor & Outdoor Game, Sight Seeing facilities, Spa.

e.g. Retreat, the Resorts, Taj Holiday Village.

g. Bread & Breakfast Hotels

Also known as ‘Mom & Pop’ hotels

i. Location - located in cultural centers

ii. Clientele - travelers

iii. Service - breakfast & accommodation

Advantages :

Ø No sharing of profit.

Ø It can have a goodwill.

Ø Avoiding of bureaucracy

Disadvantages :

Ø the decision may not be the best  not lot of thought  the experience is not much.

Ø losses can’t be shared.

Ø the loyalty may not be much.

Ø no advantage of bulk production.

no sharing of reservation network

h. Timeshare and Condominium

(the unit under which these 2 work).

ô RCI - Resort Condominium international

Location - Mostly Resort  out of the city.

Services - In timeshare the money investors are allowed a free stary.

Timeshare - People invest in a timeshare company & depending on the amount of investment, they get membership for certain duration of time. The members get to stay at the time share property (resort) once a year for a week. Members can exchange their holidays with members from other time share companies. This can be done by the time share company. e.g. Club Mahindra.

Condominium - Each member owns a unit c/a condo. The owner can stay at the unit for as long as he/she wants & when he is not staying at the resort / property, the unit can be given out to the general public when it is done so, a part of the revenue goes to the owner. They can also exchange their holidays. e.g. Royal Palms, RCI resorts.

ô Timeshare & Condominiums are the members of RCI

Ø Cliental - Holiday makers

Ø Services - that of a resort

i. Casino -

ô These are the hotels which provide accommodation. Difference types of games, entertainment, different cuisine etc.

ô Legalised gambling is the major part to the clients.

Headliner entertainment is also a part of casino

Casinos are also a major part of hotel industries.

e.g. has Vegas, Monte Carlo, Kathmandu.

River boat casino - These are the casino mostly in water b/w 2 lands probably where gambling is not allowed.

j. Conference Centres - Convention

Location - Out of the city for security reasons.

Clientele

Companies, Corporate

floor space for exhibition also a good business center.

Convention - These centre will have convention hall facility.

Location - Away from city for security reason.

Clientele - Delegates & VIPs & decision maker service - have large convention hall with all --- facilities, Accommodation High security.

MICE

Meetings, Incentive Travel, Conferences & Exhibition.

k. Alternate Lodging Properties :

Supplementary Accommodation

Either heritage hotels, cruise liners or house boats.

Ø & high cost for advertising.

e.g.: Mid town Pritam in Dadar (E).

III Levels of Service - Depending on the standard of service provided the hotels are classified as

a. World class service hotels

Ø LHW - Leading Hotels of the world (based in NY)

Ø LSHW - Leading small hotels of the world.

Ø For India the organisation

Ø HRACC - Hotel & Restaurant Approval Classification Committee

Ø FHRAI - Federation of Hotel & Restaurant Association of India like LHW another organisation.

Ø AAA - American Automobile Association - this organisation also classify the hotels  all associates and corporates judge the hotels hence they give diamond rating.

Ø Grand Tourism - South American’s (Mexico) organisation to classify the hotels.

Ø Under world class service hotels

5 star & 5 star deluxe.

b. Mid ranged service hotels

3 star & 4 star hotels

They provide with good service but not luxurious

The organisation which classifies these hotels is

SRS - Steingenberger Reservation System

(Germany based)

c. Economy / limited service / No. frills hotels.

Ø Good service but no extra facility.

Ø It is an economic hotel.

Ø not too much of luxury.

Ø but no compromise of an cleanliness & hygiene.

Ø 1 & 2 Star hotels

e.g. Indi 1 (Taj), Trident (Oberoi’s)

India 1

The top brands are going for economic hotels to reach the masses.

The highest rating in India is 5 star deluxe.

IV OWNERSHIP & AFFILIATION HOTELS

Depending on who owns the hotels & type of ownership they’ve classified as

a. Independent Hotels

In this there is only single property.

b. Chain Hotels

Multi - property owned by a group of individual

Advantage :

Ø brand loyalty

Ø sharing of losses

Ø adv. of bulk purchasing

Ø Reservation net & marketing & advertising can be shared.

Ø better & planned decision making.

Ø experimentation

Ø exchange of employ & training.

Disadvantages :

Ø Profit is shared

Ø Reputation at stake if 1 property does not perform well.

Ø decision making is slow.

Ø bureaucracy is applicable.

Ø No individuality

Ø Internal Competition may not be healthy.

difficult controlling for 1 hotel may not be applicable or profitable for the other.

c. Management Contracted Hotels

Owners hire management companies to run the hotel for them conditions are written in the contract.

1. Pay Specific fee to Management Company the income is the owner.

2. The management company pays a specific amount to owners & the income is theirs.

e.g. Hilton.

d. Franchise

Using the name of a brand that has developed a distant way of doing business by paying a fee.

The brand that lends the name - franchiser

The hotel that buys the name - franchisee

e.g. Hilton Towers, Grand Maratha Sheraton.

Advantage

Ø flexible

Ø quick decision making

Ø span of control

e. Referral group

The independent hotels get together & form an association to overcome the

disadvantage of being an independent property.

The hotels help each other getting business share reservation net; marketing & advertising even purchases.

e.g. LHW (is a referral of leading hotels of the world).

CLASSIFICATION OF HOTELS (Star Classification)

The department of Tourism classification functioning hotels under the star system, into five categories from 1-star to 5-star for this purpose a permanent Committee, the Hotel and Restaurant Approval and Classification Committee has been set up which inspects the applicant hotels to assess their suitability or otherwise for award of the star category and are placed on the approved list of the Department. Approved hotels become eligible to various fiscal relief and benefits. The department intercedes on behalf of such hotels whenever necessary to ensure that their needs get priority consideration from various concerned authorities. These hotels also get worldwide publicity through tourist literature published by the Department of Tourism and distributed by the Government of India Tourist Offices in India and abroad. Approved hotels become eligible for foreign exchange for their import of essential equipment and provisions and for their advertising, publicity and promotion under the Hotel Incentive Quota Scheme.

To be eligible to apply for classification hotel must fulfill the following minimum basic requirements:

i) The Hotel must have at least 10 lettable bedrooms.

ii) Carpet areas in respect of rooms and areas of bathroom should by and large adhere to the following limits: -

Categories of Hotel	Area standard for bedrooms/bathrooms
· 5 Star/5 Star Deluxe Hotels Single - Double - Bathrooms -	180 sq.ft. 200 sq.ft. 45 sq.ft.
· 4 Star & 3 Star Hotels Single A/C and Single Non A/C - Double A/C and Double Non A/C - Bathrooms -	120 sq.ft. 140 sq.ft. (Extra area may be provided if twin beds are to be provided) 36 sq.ft.
· 2 Star & 1Star Hotels Single A/C and Single Non A/C - Double A/C and Double Non A/C - Bathrooms -	100 sq.ft. 120 sq.ft. (All rooms should have proper ventilation And ceiling fans) 30 sq.ft. Or subject to local bye-laws

Failure to satisfy these conditions will disqualify a hotel for consideration.

The general features, facilities and services expected of hotels in the different star categories are broadly described below:

FIVE STAR CATEGORY

General features: The facade, architectural features and general construction of the hotel building should have the distinctive qualities of a luxury hotel of this category. The locality, including the immediate approach and environments, should be suitable for a luxury hotel of this category and there should be adequate parking space for the cars. The hotel should have at least 25 lettable rooms, all with attached bathrooms with long bath or the most modern shower chambers. All public rooms and private rooms should be fully air-conditioned and should be well equipped with superior quality carpets, curtains, furniture, fittings, etc. in good taste. It would be advisable to employ the services of professionally qualified and experienced interior designers of repute for this purpose. There should be an adequate no. of efficient lifts in the building of more than two storeys (including the ground floor), with 24 hrs. service. There should be a well-designed and properly equipped swimming pool.

Facilities: There should be a reception; cash and information counter attended by highly qualified, trained and experienced personnel and conference facilities in the form of one or more conference rooms, banquet hall and private dining rooms. There should be a bookstall, a beauty parlor, barbershop, recognised travel agency, florist and a shop for toilet requisites and medicines on the premises. There should be a telephone in each room and a facility of radio or relayed music in each room. There should be a well-equipped, well-furnished and well-maintained dining room, restaurant on premises and whenever permissible by law, there should be an elegant, well-equipped bar/ permit room. The pantry and cold storage should be professionally designed to ensure efficiency of operation and should be well equipped.

Services: The hotel should offer both International and Indian cuisine and the food and beverage service should be of highest standard. There should be professionally qualified, efficient and courteous staff in smart, clean uniforms. The staff coming in contact with the guests should understand English. The supervisory staff knowing at least one continental language should be rotated on duty at all times. There should be 24 hrs. Services for reception, information and telephones. There should be provision for reliable laundry and dry cleaning services. Housekeeping at the Hotel should be of the highest possible standard and there should be plentiful supply of linen, blankets, towels, etc., which should be of the highest quality available. Each bedroom should be provided with a good vacuum jug thermos flask with ice cold, boiled drinking water except where centrally chilled purified drinking water is provided. There should be special restaurant/dining room where facilities for dancing, orchestra are provided.

FOUR STAR CATEGORY:

General Features: The architectural features and general construction of the building should be distinctive and the locality including the immediate approach should be suitable for a hotel of this category. There should be adequate parking facilities for cars.

The hotel should have 25 lettable rooms all with attached bathrooms. At least 50% of bathrooms must have long baths of the most modern shower chambers, with 24 hrs service of hot and cold running water. All public areas and private rooms should be well furnished with carpets, curtains, furniture, fittings etc. in good state. It would be advisable to employ the services of professionally qualified and experienced interior designer of repute for this purpose. There should be an adequate number of efficient lifts in building of more than two storeys (including ground floor). There should be well-appointed lobby and ladies, gents cloak rooms equipped with fittings and furniture of the highest standard.

Facilities: There should be a reception, cash and information counter attended by, trained and experienced personnel. There should be bookstall, recognised travel agency, money changing and safe deposit facilities and a left luggage room on the premises. There should be a telephone in each room and provision for a radio or relayed music in each room. There should a well-equipped, well-furnished and well-appointed dining room/restaurant on the premises and where ever permissible by law, there should be an elegant and well-equipped bar/permit room. The kitchen, the pantry, cold storage should be professionally designed to ensure efficiency of operation and should be well equipped.

Service: The hotel should offer both International and Indian cuisine and the food and beverage service should be of highest standard. There should be professionally qualified, efficient and courteous staff in smart, clean uniforms. The staff coming in contact with the guests should understand English. It will be desirable for some of the staff to posses the knowledge of foreign language and staff knowing at least one continental language should be rotated on duty at all times. There should be 24 hrs services for reception, information and telephones. There should be provision for reliable laundry and dry cleaning services. Housekeeping at the Hotel should be of the highest possible standard and there should be plentiful supply of linen, blankets, towels, etc., which should be of the highest quality available. Similarly the cutlery and the glass wear should be of the highest quality available. Each bedroom should be provided with a good vacuum jug thermos flask with ice cold, boiled drinking water except where centrally chilled purified drinking water is provided. There should be special restaurant/dining room where facilities for dancing, orchestra are provided.

THREE STAR CATEGORIES.

General features: The architectural features and general construction of the building should be of a very good standard and the locality including the immediate approach should be suitable for very good hotel of this category. There should be adequate parking facilities for cars. The hotel should have at least 20 let table rooms all with attached bathrooms with bathtubs and/or showers. The bathrooms should be with hot and cold running water. At least 50% of the rooms should be air-conditioned and the furniture and furnishings such as carpets, curtains, etc., should be of a very good standard and design. There should be adequate number of lifts in the building with more than two storeys (including the ground floor). There should be a well appointed lounge and separate ladies and gentlemen’s cloak room equipped with fittings of a good standard.

Facilities: There should be a reception and an formation counter attended by qualified staff, and a bookstall recognised travel agency, money changing and safe deposit facilities on the premises. There should be a telephone in each room (except in seasonal hotels where there would be a call bell in each room and a telephone on each floor for the use of hotel. There should be a well equipped and well maintained

Air-conditioned dining rooms /restaurant and where permissible by law, there should be a bar/permit rooms. The kitchen, pantry and cold storage should be a clean organised for orderliness and efficiency.

Service: The hotels should offer good quality cuisine both Indian as well as continental and the food and beverage service should be of a good standard. There should be qualified, trained, experienced, efficient and courteous staff coming in contact with the guests should be provision for laundry and dry cleaning service. Housekeeping at the hotel should be of a very good standard and there should be adequate supply of linen, blankets, towels etc., of good quality. Similarly, cutlery, crockery, glassware should be of a good quality. Each bedroom should be provided with vacuum jug/thermos flask with cold, boiled drinking water. The hotel should provide orchestra and hall room facilities and should attempt to present specially choreographed Indian Cabaret.

TWO STAR CATEGORY

General Features: The building should be well constructed and the locality and environs including the approach should be suitable for a good hotel. The hotel should be at least 10 lettable bedrooms of which at least 75% should have attached bathrooms with showers and a bathroom for every four of the remaining rooms and should be with modern sanitation and running cold water with adequate supply of hot water, soap and toilet papers. 25% of the rooms should be air-conditioned (where there should be heating arrangements in all the rooms) and all rooms must be properly ventilated clean and comfortable with all the necessary items of furniture. There should be a well-furnished lounge.

Facilities: There should be a reception counter with a telephone. There should be a telephone or call bell in each room and has a separate telephone. There should be a well-maintained and well-equipped dining room / restaurant serving good, clean wholesome food and a clean, hygienic and well-equipped kitchen and pantry.

Service: There should be experienced, courteous and efficient staff in smart and clean uniforms. The Supervisory staff coming in contact with guests should understand English. There should be provision for laundry and dry cleaning services. Housekeeping at the hotel should be of good standard and good quality linen, blankets, towels etc., should be provided. Similarly, crockery, cutlery and glassware should be of a good quality.

ONE STAR CATEGORY:

General Features: The general construction of building should be good and the locality and environs, including immediate approach should be suitable. The hotel should have at least 10 lettable bedrooms of which at least 25% should have attached bathrooms with a bathroom for every 4 of the remaining rooms. At least 25% of the bathrooms should have western style WCs. All bathrooms should have modern sanitation and running cold-water wit adequate supply of hot water, soap and toilet paper. The rooms should be properly ventilated and should have clean and comfortable bed and furniture.

Facilities: There should be a reception counter with a telephone and a telephone for the use of guests and visitors. There should be clean and wholesome food and there should be a clean well equipped kitchen and pantry.

Services: There should be experienced, courteous and efficient staff in smart and clean uniforms and the senior staff coming in contact with guests should possess working knowledge of English. Housekeeping at the hotel should be of a good standard and clean and good quality linen, blankets, towels etc., should be supplied. Similarly, crockery cutlery and glassware should be of good quality.

A classification fee at the following rate is payable by the hotels supplying for classification:

Star Category Amount in Rs.

One star 2000/-

Two star 3000/-

Three star 4000/-

Four star 6000/-

Five star 8000/-

Five star deluxe 10000/-

The classification fee is payable by means of a demand draft drawn in favour of the Pay & Accounts Officer, Department of Tourism, New Delhi. For Re-classification, fee will be 50% of the above fee.

The application for One, Two and Three star category Hotels should be addressed to The Regional Director, Government of India Tourist Office, M. Karve road, Mumbai 400 020. Where as the applications for Four, Five and Five Deluxe category hotels should be addressed to The Assistant Director (Hotels), Department of Tourism, Government of India C-I Hutments, Dalhousie Road, New Delhi, 110011.

For each of these categories of star classification the hotel have to fulfill three classes of criteria, E - Essential, N - Necessary, D - Desirable. For each of these criteria there are maximum marks allotted.

Supplementary Accommodation

This consists of all types of accommodation other than the conventional hotel type. This can be described as premises which offer accommodation but not the extra services of a hotel. It is a very economical type of accommodation.

Main distinguishing features :

1. The standard of comforts is modest as compared to that of a hotel.

2. The accommodation is sold at a very low price.

3. They have an informal atmosphere and freedom regarding dress code.

4. There is more emphasis on recreation, entertainment and sports.

Supplementary accommodation plays a very important role in the total available tourist accommodation in the country. It caters to both international & domestic tourist traffic.

Types of supplementary accommodation :

¨ Sarais / Dharamshalas (inns)

¨ Youth hostels e.g.YMCA

¨ Camping sites.

¨ Circuit houses / Dak bunglows -- Govt. accommodation.

¨ Tourist bungalows -- M.T.D.C. holiday camps.

¨ Traveler’s lodges or Forest lodges.

¨ Dormitories.

¨ Paying guest accommodation.

¨ Rotels ( hotels on wheels e.g. Palace on wheels)

¨ Floatels ( Hotels on Water e.g. House boats)

TYPES OF ROOMS

1. SINGLE ROOM :

Room having a single bed. Room meant for one person. Abbreviation - or s.

2. DOUBLE ROOM :

Room having a double bed (one large bed). It is meant for two persons. Abbreviation + or D.

3. TWIN ROOM :

Room having two single beds, separated from each other. The room is meant for two persons. Abbreviation = or T.

4. TWIN DOUBLE ROOM :

Room with two double beds, separated from each other and meant for four persons. It is also called as double double room.

5. HOLLYWOOD TWIN ROOM :

Room with two single beds having common head board. It is meant for two persons.

6. PARLOR :

Sitting or living room not used as a bed room.

7. STUDIO ROOM :

Parlor set-up with one or two studio beds or sofa-cum-beds.

8. Suite :

Parlor connected with one or more bedrooms. Expensive, being larger with more rooms for privacy. Has more facilities like TV, fridge, mini bar, extra complementary, etc.

9. LANAI :

Hawaiian term for a room with a balcony that overlooks a garden or swimming pool.

10. JUNIOR SUITE :

One large room partitioned into a parlor and a bed room.

11. EFFICIENCY ROOM :

Room with a kitchenette attached. Mainly found in motels and residential hotels.

12. DUPLEX :

Set of rooms which are not at the same level but are situated on two different floors. The parlor and the bed room are connected with a staircase. One of the most expensive suites.

13. PENTHOUSE SUITE :

Suite located to on the topmost floor of the hotel. A part of the room can be open to the sky or with a glass roof. Very expensive and exclusive suite.

14. CABANA :

Located close to the swimming pool or beach. Has shower and changing facilities. May have been furnished in bamboo for attractive appearance.

15. INTERCONNECTING ROOMS :

Two adjacent rooms allowing entry from one to the other through a connecting door. The connecting door is kept locked if the rooms have to be sold to two different guests separately.

16. HOSPITALITY ROOM : A room hired by a guest on hourly basis to entertain his guest. It is generally a banquet room.

17. ADJOINING ROOMS :

Rooms with a common wall but no connecting door.

18. ADJACENT ROOMS :

Rooms close to each other, perhaps across the hall or the corridor.

DEPARTMENTAL ORGANISATION OF A HOTEL

A hotel is an organisation made up of different departments all of which have to work in close co-ordination for the efficient working of the organisation.

Some departments are more important as far as revenue is concerned, some do not produce revenue but are very important from the operational point of view. Thus the departments of the hotels can be classified under three main headings. They are

1. Operating and Revenue producing.
2. Operating and Non revenue producing.

3. Non operating and Revenue producing.

Operating and Revenue producing departments (O.R.P.) :

Minor revenue producing departments.

a) Laundry : The hotel may have it's own laundry or may have a contract with an outside laundry. In any case laundry of guest clothing is a facility provided by the hotel & is charged for.

b) Telephone department : Guests are charged for the local and trunk or STD calls. Charging can be done either by the telephone operator or in case of direct billing by telephone meters. In a small hotel, there would be just a small switch board, probably operated by the receptionist. In large hotels, there exists a separate telephone department, where the board is manned by operators working in shifts.

c) Swimming pool : Though hotel guests are not charged for using the pool, their guests can be charged for this facility. Many hotels offer a free swim alongwith a buffet lunch (charged per head) setup near pool side.

Major revenue producing departments:

1. Rooms departments : These are the departments concerned with the actual sale of rooms. This revenue producing section earns around 60% of the total hotel revenue. The departments under this section are Housekeeping and Front office.

2. Front office is concerned with actual sale of rooms and hence comes in direct contact with the guest. Housekeeping is concerned with keeping the guest rooms clean and in a position to be sold. Hence though Housekeeping is a behind the scene activity it is extremely important.

3. F & B Department : These are the departments concerned with the production of food & beverage items and their sale.

4. F & B Production includes all kitchens, bakery, confectionery, stores and pantry. All these are behind the scene and responsible to the total preparation of the food items right from the storage of raw material to the presentation of the final dish.

5. F & B Service includes all the service outlets where the food prepared by the production areas is sold to the guests. Theses areas can be listed as

· Restaurants - General as well as specialty restaurants. These restaurants have fixed hours of service.

· Coffee Shop - A coffee shop is open 24 hours of the day & serves mainly snacks & beverages. Heavy meals are generally served only during lunch and dinner time. A coffee shop generally has an informal atmosphere and plated service.

· Bar : Serves alcoholic and non alcoholic beverages along with snacks. A permit is required to operate it and there are fixed hours of operation.

· Room Service : 24 hours service in most large hotels.

· Banquets : It is the major revenue producing department, among the F&B service departments. Some of the banquet functions are Dinners, Lunches, Wedding receptions, Cocktail parties, Conferences, Club meetings, out door catering, etc.

Operating and Non revenue producing departments (O.N.R.P.) :

1. Personnel : Deals with recruitment and training of staff, staff induction, promotions, welfare, etc.

2. Security : Deals with all unusual events in the hotel.

3. Maintenance : They are responsible for total maintenance and upkeep of rooms and public areas, i.e. Air-conditioning, Lifts, Plumbing, Electricity, Lighting, carpentry, etc.

4. Accounts : Receives a copy of all departmental vouchers & the guest bills. Maintains cash register, city ledger, etc. Prepares sales summary sheets for each day's sales.

5. Sales and Marketing : Sales is concerned with getting and maintaining clientele for both rooms and food & beverage.

Non operating and Revenue producing departments (N.O.R.P.) :

They include travel agencies and airline offices, book shops, chemists, florists, bank, beauty parlor, etc. They either be let out on commission bases or on rental bases. These 'concessionaires' should be reputable as for the guests they are a part of the hotel services.

FUNCTIONAL ORGANISATION OF FRONT OFFICE

The Front Office department can be divided into different sections according to the nature of their functions. They are :-

1. Reservations.

2. Reception.

3. Information.

4. Cashiers.

5. Bell desk.

6. Telephones.

1. Reservations

It is often referred to as the nerve center of the department. All booking requests are received and processed here. Prior arrangement for guest arrival can be made from the information processed at reservations which facilitates efficient and satisfactory service to the guests.

2. Reception

It is responsible for receiving the guests with warmth and a genuine smile. Registration of guests during check in, sensible and efficient dealing with situations which may arise at the counter are important tasks for the reception staff.

3. Information : The main functions of this section are :

a. To maintain an alphabetical guest index.

b. To receive messages for resident guests.

c. Handling guests room keys.

d. Handling guest mail, packages etc.

e. Paging for guests.

f. Providing relevant and accurate information to the guests and answering queries.

4. Cashier

Responsible for handling guest bills, where guests settle final bills either by cash, credit card or as charge settlement for their entire stay in the hotel. Expenses would include room, F & B service and charges for any other services or facilities used. These charges are recorded centrally upto the minute at the cashier’s cabin. The cashier’s role therefore is to post all guest charges and credits on the master bill so as to present the same duly totaled for payment at the time of guest departure. This section is also responsible for exchanging foreign currency and for safe deposit lockers provided for guest valuables.

5. Bell desk

Responsible for baggage handling at guest arrival or departure time and running errands during the guest’s staying in the hotel.

6. Telephones

Handles all incoming and outgoing local calls and trunk and international calls for both guests and the hotel management.

DUTIES AND RESPONSIBILITIES OF THE FRONT OFFICE

STAFF

A. Front Office Manager

Ø He is the head of the department.

Ø He ensures the smooth running of the department

Ø He sees to it that his staff reports to duty in time and in proper uniform.

Ø He ensures that courteous and personalized service is given to the guests by his staff.

Ø He deals with front office correspondence on reservations, enquiries, room booking etc.

Ø He is responsible for the up keep of the front desk, lobby manager’s desk and their equipment.

Ø He deals with the complaints against his staff and other complaints of the guests.

Ø Participants in the selection of F O Personnel

Ø Conducts regularly scheduled meeting of F O Personnel.

B. Lobby Manager

Ø He ensures that all rooms are blocked as per reservation requests

Ø He keeps a check on room position

Ø He instructs the airport representatives regarding the list of arrivals to be met.

Ø He checks pre-registration cards

Ø He also checks house keeping discrepancy report

Ø He ensures that guest requests and complaints are followed up

Ø He follows up on group and crew movement

Ø He takes actions for all unusual events in the lobby like fire, accidents, etc.,

Ø He ensures the smooth running of the lobby.

Ø He sends “C” Forms to the FRRO.

C. Reception Supervisor

Ø To train all front office assistants on the job

Ø To make the duty roster for the staff

Ø To check the shift in-charge’s list on a daily basis

Ø To check the next day’s arrival list and to brief the staff accordingly

Ø He makes the requisition for the stationery required for the Front Office

Ø Ensures the smooth running of the reception

Ø Welcomes VIP guests

Ø Attends to guest complaints

Ø Assists the reception staff

Ø Maintains records of the reception

D. Reception Assistant

Ø To answer the queries of the guest to their satisfaction and to provide information

Ø To promptly register guests and to assign rooms to them

Ø To update the room rack regularly

Ø To complete pre-registration formalities for VIPs

Ø To execute government formalities regarding foreigners

Ø To prepare room reports and occupancy statistics

Ø Send messages to the guests

Ø To print the arrival list for the next day.

E. Reception Shift in-charge

Ø Performs the tasks of reception assistant

Ø Supervises and checks the entire Shift Operation

Ø Handles guest complaints

Ø Checks all the reports before the end of the shift

Ø Airline crew blocking and group blocking

F. Reservation Supervisor

Ø To help out Reservation Assistant in calls, courses and feeding reservation information.

Ø To supervise the staff under her and impart training

Ø To monitor all new movements

Ø To follow up on billing instructions and other special requests

Ø To check on credit facilities to Companies, discount policies and discounts offered to various companies.

Ø Co-ordination with Reception, Information, Sales and Marketing Departments and Tour Operator.

Ø Up-to-date information of the position of the house for the day and the next three days.

Ø She draws up a weekly, monthly and quarterly forecast

Ø Monitors VIP movements and informs all concerned

Ø Monitors house status and keep Front Office Manager informed of sold out dates.

Ø Deals with correspondence, vouchers, exchange orders, deposits, refund of deposits and actions thereon.

Ø She handles the group and conference booking.

G. Reservation Assistant

Ø To update regularly the reservation chart and computer

Ø To properly and courteously handle all reservation requests

Ø To keep all reservations correspondence up to date

Ø To handle amendments and cancellation of reservation.

H. Senior Bell Captain

Ø He controls the movements of Bell Captains and Bell Boys

Ø He briefs the Bell Boy and ensures that they are always well groomed

Ø Takes stock of the luggage, parcels and any other material

Ø Has thorough knowledge of the hotel, shops, airline offices, executive offices etc.

Ø Thorough procedure on arrival and departure

Ø To carry out different errands for the guests

Ø Responsible for the proper distribution of newspapers

Ø Keeping stock of the equipments, trolleys and ensuring that they are in good working order

Ø Vigilant and alert on duty

Ø To initiate action against guests having scanty baggage

Ø To assist in crew and group wake up call procedures

I. Bell Boy

Ø Take the baggage front the porch to the room

Ø Escort the guest to the rooms on arrival

Ø Place the baggage in the room

Ø Explain the operation of light switches, air conditioning control to the guests.

Ø Brings the baggage down in case of departures

Ø Checks the room to ensure that the guest has not left any articles in the room

Ø Obtain clearance from Front Office cashier on the errand card regarding the bill.

Ø Check that main and messages are distributed to the guests.

J. Front Office Cashier

Ø Operates front office posting equipment

Ø Completes cashier pre-shift supply checklist

Ø Completes guest check in procedures

Ø Post charges to guest account

Ø Handle paid-outs

Ø Completes guest check-out procedures

Ø Settles guest account

Ø Makes account adjustments

K. Night Auditor

Ø Posts room charges and taxes to guest accounts

Ø Processes guest charge vouchers and credit card vouchers

Ø Transfers charges and deposits to master accounts

Ø Verifies all account postings and balances

Ø Prepares a summary of cash, check and credit card activities

Ø Summarizes results of operations for management

Ø Knows how to operate position machines, typewriters and F O equipment

Ø Understands and knows how to perform check-in and check-out procedures

Ø Handle errands requested by guests and Front Office staff

Ø handle baggage of guests when they are shifting to another room

Ø Distribute news papers

Ø To page guests in the lobby

Ø To report guests with scantly baggage the bell captain

Ø To issue postage stamps against cash.

BASIS OF CHARGING

CHECK-IN / CHECK-OUT BASIS

As per this system, a particular time of the day is fixed as the check-out time. The most common is a 12 noon check-in / check-out system. According to this, the day starts at 12 noon daily and ends at 12 noon the next day, immaterial of the time at which the guest checks-in. If the guest has checked-in in the morning before 12 noon and intends to stay overnight, then from the point of his check-in, till 1200 hrs that day makes one day and from 1200 hrs till the next day, becomes another day. As a result, when the guest stays sometimes for 24 hours or lesser, he could be charged for more than a day. In other words, the same room may be sold twice in the same day.

Since it is not practical for any guest to check in at exactly 1200 hrs, most hotels permit a grace period (of about 2 hours), before and after checkout time. Though the system is good for the hotelier, many guests may think of this system as unreasonable. To ensure renewed patronage by the guests, many hotels today tell a guest that there exists a two hour grace period for check-in or check-out, but actually give a leeway of three hours to avoid disputes. Also, for an early morning check-in after 0600 hrs, instead of a full day extra to be charged, most hotels charge only a half day’s charges. Following the same systems, when a guest checks-out as late as 1800 hrs, a half day tariff is again charged instead of a full day’s charge. The logic that is explained in this system, is that the room cannot be sold after that point of the day. For an early morning check-in, the guest could be told that the room could not have been sold the previous night. However, the least amount charged is a minimum of one day’s charge.

e.g., (1) Mr. A. checks-in on Sunday at 1200 hrs to room # 101.

Mr. A checks-out on Monday at 0030 hrs from room # 101.

Mr. B. checks-in on Monday at 0200 hrs to room # 101 and checks-out at 1200 hrs on Monday.

Mr. A. And Mr. B will both he charged for one day each.

e.g., (2) Mr. X checks - in at 0500 hrs on Monday.

Mr. X checks-out at 0600 hrs on Tuesday.

Mr. X will be charged for two days as per this system.

24 HOURS BASIS

As per this system, the guest is entitled to keep his room for a period of 24 hours from the point of the guest’s check-in, for a day’s charge. There is no fixed time of arrival for the guest. This system of charging is generally practised at resort hotels.

e.g. Mr. X checks-in at 1300 hrs on Tuesday. He will be charged for one day till 1300 hrs on Wednesday.

PER NIGHT BASIS

According to this system, the guest is charged on the basis of the number of nights he stays. This system has evolved from the 24 hours system of charging, and is not very much in use in the modern day hotels.

Very much connected to this system of charging is the concept of Day Rate or ‘Day Use Rate’. This is a concessional rate given to guests who do not stay over-night in the hotel. Usually this is targeted at business clientele who use the room from 0900 hrs to 1800 hrs. The guest may check-in to the hotel for a wash and change in the morning, leave his baggage in the room and carry on for his business. He may return in the evening, have a wash and change, check-out and take the evening flight out.

FOOD PLANS

1. European Plan (EP) :

This plan includes only the room charges and morning tea in some cases. All other charges are charged extra. Most commercial hotels run on this plan.

2. Continental Plan (CP.) :

This plan includes room charges and a continental breakfast. All additional charges are considered extra. [ A continental b/f consists of juices, toast or rolls, butter, cheese, jam, tea or coffee but no eggs.]

3. Bermuda Plan (BP) :

This plan includes room charges optional early morning tea and an American breakfast. [ American b/f is a buffet breakfast not served in the room]

4. American Plan (AP) :

This plan includes all principal meals. It includes room charges with optional morning tea, English B/F, lunch, afternoon tea and dinner. It is mostly found in resort hotels and in commercial hotels catering to groups sent by airlines and companies or travel agents. This plan is also known as 'all inclusive plan' or 'full board' or 'en pension' [English breakfast has all courses like American B/F and ham, beacon, meat is also included].

5. Modified American Plan (MAP) :

This plan has evolved out of the American plan. It includes room charges with optional morning tea, English B/F and an option of lunch or dinner. It is also called as 'demi pension' or 'half board'. This facilitates the guests to eat out for one meal. It is usually used for groups where meal coupons are provided to the guests (coupon is valid only for a day ) and the coupon cost is included in the room rent.

The use of these plans:

· Commercial hotels prefer EP because:

1. Commercial hotels are situated in the urban areas, there are bound to be numerous restaurants in the vicinity. Hence the guest will prefer to keep his option open as far as meals are concerned. Moreover the hotel may not have a particular cuisine which the guest likes.

2. On the other hand hotel being situated in an urban area would get plenty of chance guests in their restaurants. Thus their F&B income is not restricted to only hotel residents. They do offer meal inclusive plans but only to groups sent by travel agents and company bookings for conventions, seminars, etc.

· Resort hotels prefer AP/ MAP because

1. They may be situated in an isolated area with hardly any restaurant in the vicinity. Guests therefore prefer to have meals in the hotel. For the tourists wishing to go sight seeing during the day, an MAP will be more appropriate.

2. The hotel itself benefits from this plan since the hotel relies only on the resident guests for their food and beverage income.

The CP. & BP lie between EP & AP So they can be offered by any hotel.

Above five are food plans.

There is another plan called 'GO PLAN'

It is not a food plan. It is an adjustment made in the settlement of accounts.

If a guest stays in different hotels of the same chain in the course of his tour, his bills will be forwarded to his next destination every time he changes the place of stay. The guest can make the payment at the last hotel he visits belonging to the same chain.

SPECIAL RATES

Very often a room may not be sold at the tariff quoted on the tariff sheet. The rooms may be discounted or special rates may be applied under certain conditions, or as a special case.

COMPANY VOLUME GUARANTEED RATE (CVGR)

Based on the room night potential of different companies, certain hotels give a special rate to those companies which contribute a large volume of room nights. This special rate offered came to be called as the ‘Company Volume Guaranteed Rate’ (C.V.G.R) or ‘Company Guaranteed Rate’ (C.G.R.). The higher the volume of business, the higher was the percentage of discount given. For this purpose, all those companies which offer a large quantum of business could be ‘A’ rated. As the contribution figure dipped, the company rating would also drop to ‘B’ or even ‘C’ for those with a relatively poor volume of business.

Many hotels today, in order to accommodate all category of employees from one particular organisation, have gone ahead and offered very low rates to the lower down officers, and higher rates to the top brass of the company, based on their entitlements and expenditure capabilities. A record of the room night contribution (R.N.C.) of individual companies are maintained either on a computerized system or manually by an alphabetically indented register. Periodically, the companies are informed of their volume contribution. If the expected room night contribution was not maintained by any one company, they would fall to a lower rating or even be left out of the C.G.R. list after the total period of assessment.

PACKAGE RATES

Many resort hotels (especially during lean/Off season periods) and some commercial hotels from time to time coin seasonal packages for different durations (e.g: two nights three days/three nights four days), which may include besides the room and meal, a complimentary airport transfer, sightseeing, entertainment etc.

OFF-SEASON RATES

Most resorts and other seasonal hotels have separate tariffs for peak and off-seasons. The off-season rates are much lower than regular or peak-season rates.

EMPLOYEE RATE

Employees of major hotel chains have a special employee rate for all employees at their member hotels within the chain. This is however based on the availability of space and policy of the individual hotel.

F.H.R.A.I DISCOUNT

The Federation of Hotel and Restaurants Association of India (F.H.R.A.I) is a major association of hotels and restaurants in India. As a gesture of goodwill for members of the same fraternity, the association issues membership cards to the Proprietor / Partners / Chairman / M.Ds of these establishments, which entitles them to a special discount( presently 30% on room rent, food and beverage (excluding liquor), if paid by cash and 25% if settled through a credit card. The percentage of discount and other conditions are subject to change).

AIRLINE CREW

Most airlines enter into a contract with hotels in different cities where its flights commute, wherein staff of the airline (crew) are given a very special rate for a fixed period. Their duration of stay may be a few hours upto a maximum of 24 hours. There is also another special rate negotiated for the lay-over passengers. The food-plan applied would be based on the requirement, but the food element computed is also on a discounted basis.

GROUPS

Groups (G.I.T - Guest in Transit) are given special rates due to the number of rooms taken by them at a time. A group under standard stipulation, comprises of 15 guests or more. Based on the discretion of the Management, the group leader may be given a complimentary room for a minimum of 15 paying customers.

Guests who do not come into any of the above groups are called as ‘F.I.Ts’ or Free Individual Travellers. i.e., they are not part of any group or company enjoying special rates. When these are Indians or Domestic clientele, they are referred to as ‘D.F.I.T’. or ‘Domestic Free Individual Traveller’. Similarly, if the guest is not a domestic traveler i.e., if he is a foreigner, then he is called as ‘F.F.I.T’. or ‘Foreign Free Individual Traveller’.

CRIB RATE

This is a special rate applicable in some hotels to children. Most Indian hotels prefer to compliment upto a maximum of two children below the age of twelve.

EXTRA BED / EXTRA PERSON CHARGES

As most five star hotels today do not have single rooms, but have only double rooms which could accommodate a minimum of two guests, a third person if present, is given an extra bed and charged. This charge is in most hotels levied even if an extra bed is not given. The rate charged could be approximately 20 to 25% of the room rate.

Besides the above, special rates may also be given to a hoard of other category of people based on the discounting policies of the management. Some of these might be commercially important persons (C.I.Ps) for publicity and promotion purposes, influential persons like company directors, decision makers, top executives, travel writers, etc. Such discounts have to be authorised by a senior member of the Management.