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ORGANISATION STUDY AT

THE BEACH ORCHID HOTEL

In partial fulfillment for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by

KIRAN.N

Under the guidance of

MRS.ELIZABETH

(Faculty TIM)

T.K.M.INSTITUTE OF MANAGEMENT, KOLLAM

2008-2010



DECLARATION

I, KIRAN.N hereby declare that the project report titled as “ORGANISATION STUDY

OF THE BEACH ORCHID HOTEL , KOLLAM , KERALA is an original work done by me in partial fulfillment for the degree of Master of Business Administrationunder the University of Kerala. I further declare that this work is not partially or whollysubmitted for any other purpose and the data included in the report, collected fromvarious sources, are true to the best of my knowledge.

KIRAN.N



ACKNOWLEDGEMENT

The success of a project depends up on frame work and co operation of the various people involved either directly or indirectly. I take this opportunity to expressgratitude to all those who helped in this project

First and fore most I thank GOD the almighty for his blessing for the successfulcompletion of this work I take the opportunity to acknowledge my indebtedness toall the persons who have helped me in successful completion of my work.

I would like to convey my sincere gratitude, and thank Mr. Rahul Bhattacharya, General

Manager of “The Beach Orchid Hotel “for allowing me to undertake this studysuccessfully in his organization. I extend my sincere thanks to Mr. Francis (PersonnelManager) and Mr. Alwyn.S (HR executive) for their support throughout my study.

I thank Dr. Jacob Thomas, Director TKM Institute of Management for his supportthrough out my endeavor.

It is my privilege to express my sincere thanks to Mrs. Elizabeth, faculty for thenecessary guidance at all levels.

I thank all the professors and teaching staff of TKM institute of management for their guidin conducting this study.

Finally I wish to thank my family and friends and express my sincere gratitude to themfor their support the eternal love, guidance, protection and blessings those haveshowered upon me throughout this Endeavour.



CHAPTER -1

CHAPTER-1



INTRODUCTION

1.1 Purpose of the Study

The purpose of the study is to familiarize with the industry and attain a first hand

experience of the functioning of the organization. It provides a chance to interact with the

different department and authorities in the organization, and also enable to know how the

theory learned are practically applied in an organization.

1.2 Objectives of the Study

The objectives of this organizational study are:

• To know how the theory learned are practically applied in an organization.

• To fulfill the requirement of the curriculum

• To study about the organization policies and procedures, its vision and mission

• To understand the organization hierarchy

• To study the functions of various departments

•

To study about the products and production process

• To understand the day to day activities of the departments and how they are

interrelated

• To analyze financial performance



• To know how the theory learned are practically applied in an organization

• To evaluate the strength, weakness, opportunity and threats of the organization.

• To study the overall performance of the organization.

1.3 Period of the Study

The organization study was conducted at The Beach Orchid Hotel, Kollam for

a period of 14 days from April 13 to April 26, 2009.

1.4 Methodology of the Study

This report was prepared based on both primary and secondary data collected

from The Beach Orchid Hotel. Primary data includes data collected by means of face to

face interviews with officials in various departments and by observation. Secondary data

includes data collected from internet, company annual reports and manuals of various

departments. The data collected was analyzed and organized into details relating to each

of the department.



CHAPTER-2



CHAPTER 2

EXTERNAL ENVIRONMENT ANALYSIS

The external environment analysis gives the business opportunities and threats of

an organization. External factors include the socio-cultural factors, government and legal

factors, demographic factors and economic factors etc.

INTRODUCTION

Significant developments in the field of transportation, sophistication in

communications, growing importance of sophisticated information technologies in the

business world, engineering of a strong foundation for industrialization and urbanization,

increasing domination of corporate sector on the national and international economies,

emerging corporate culture and changing lifestyles paved copious avenues for the

development of hotel industry the world over. The officials on deputation, the business

magnets on trade promotion mission, the foreign representative on peace mission, the

domestic or foreign tourists interested in visiting a place for pleasure or for enriching the

knowledge bank, the international events etc. are some of the important reasons for the



development of hotel industry. Restaurants, cafeterias and hotels offer food and lodging

services to him/her, person/persons who develop the habit of eating and staying out of

home. This principle necessitated application of management principles in the hotel

industry and the hotel professionals realised the instrumentality of marketing principles in

managing the hotel industry.

The growing significance of managerial proficiency in the hotel industry made

possible innovation in the marketing decisions . Today, the services are planned,

controlled, automated, audited for maintaining and controlling the quality. The concept of total quality management is found getting an important place in the marketing

management of hotels. The inclusion of modem amenities and facilities in the hotel

services is made possible by the leading hotel chains which has been opening new doors

for innovation and competition. It is against this background that the hotel companies, of

late, need world class professional excellence.

The emerging positive trends in the tourism industry indicate that hotel industry is

like a reservoir from where the foreign exchange flows. This naturally draws our

attention on hotel management. In addition, the domestic tourism also indicates a positive

sign of development. Thus the emerging new developments in the socio-economic-

environment open new vistas for the development of hotel industry. Of late, the

organizations engaged in the hotel business are

required to conceptualize modern marketing principles. This makes it essential that they

formulate a sound marketing mix that makes possible an optimal development of the



marketing resources and makes the process of development cost effective. Like other

industries, the hotel industry also needs to explore avenues for innovation, so that a fair

blending of core and peripheral services is

made possible. It is not to be forgotten that the leading hotel companies of the world have

been intensifying research to enrich their peripheral services with the motto of adding

additional attractions to their service mix. It is against this background that we find the

service mix more flexible in nature- The latest developments in the field of promotion

have paved avenues for the introduction of innovative and aggressive promotional

measures: The advertising, publicity, sales promotion, word-of-mouth promotion, personal selling and even telemarketing have been

found used in the process of promoting the hotel business. The hotel tariff is found

drawing due attention of the policy makers. All of them have been found attempting for

making the pricing decisions motivational. The front- line-staff, receptionists, waiters,

housekeepers, sales executives are found responsible for offering the promised services to

the guests... The gap between the service-promised and services-offered is required to be

bridged over that draws our attention on the management of hotel personnel.

HOTEL — THE CONCEPT

At the outset, we go through the concept of hotel. The common law says that,

Hotel is a place where all who conduct, themselves properly and who being able and

ready to pay for their entertainment, accommodation and other services including the

boarding like a temporary home. It is home away from home where all the modern

amenities and facilities are available on a payment basis. The aforesaid viewpoints

regarding the hotel clarify that hotel is a public place where all possible facilities are



made available to a person or persons who stay. The facilities like entertainment, food,

accommodation etc- thus become the core services of a hotel.

The definition presented by Stuart Mc Namara says, “Primarily and

fundamentally, a hotel is an establishment which supplies boarding and lodging not

engaged in inter-state commerces or in any intra-state commerce, competitive with or

affecting inter-state commerce for so related that the regulation of one involves the

control of other. It is a quasi-domestic institution retaining from its ancient and origin

certain traditions and acquiring in its modern development, certain statutory rights and

obligations to the public where all persons not qualified by conditions or conduct are prepared to pay for their accommodation are to be received and furnished with a room or

place to sleep or occupy if such accommodations are available with such services and

attention as are incident to their use with or without contract as to duration of visit and

which conducts within the confines of its physical locations the business of supplying

personal services of individuals for profit- Incidental to such fundamental and principal

business. The hotel may furnish quarters and facilities for assemblage of people for social

business or entertainment purposes and may engage in retaining portion of its premises

for shops and businesses whose continuity (i.e., proximity) is deemed appropriate to a

hotel.”

MOTEL — THE CONCEPT

Initially the term motel was meant for local motorists and foreign tourists

travelling by road- Basically motels serve the needs and requirements of these travellers

and meeting the demand for transit accommodation. We cant also call motel a transit



overnight stay. Some of the important services offered by motels are parking, garage

facilities, accommodation, restaurant facilities- Motels are found equipped with filling

stations, accessories, service of elevator to the automobile entrance restaurants etc.

Motels are found located outside the city, preferably by the side of high ways and

important road junctions. The accommodation available in a motel is more in the

category of a 'chalet facility'- Which has a dining hall with fixed menu.

HOTEL AND ITS TYPOLOGY

Since time irremovable, there have been frequent changes in the concept and perception of hotel. There are a number of hotels offering different types of services. The

variation in architectural facilities, the size, the facade, the facilities and amenities can't

be overlooked. This necessitates a study of its typology.

Residential Hotel

Commercial Hotel

Resort Hotel

International Hotel

Floating Hotel

Types of Hotels:

Residential Hotel:

The residential hotels work as apartment house, often we call them apartment

hotels. The hotels charge rent on monthly, half yearly, or yearly basis. The hotels are

generally found located in big cities and towns where no meals are served to the



customers L Initially, the residential hotels were developed in the LISA. The services

offered in the residential hotels are comparable to an average well managed home.

Commercial Hotel:

The commercial hotels are meant for the people who visit a place of trade and

commerce or business purposes and therefore these hotels are found located at the

commercial or industrial centres. These hotels focus their attention on individual

travellers and are generally run by the owners.

Resort Hotel:The resort hotel's are meant for the holiday makers, tourists and for those who

need a change in the atmosphere mainly on health ground. These hotels are found located

near the sea, mountain and other areas having an attractive landscape and healthy climatic

condition . The tourists visit hotels mainly to relax. The entertainment and recreation

facilities like swimming pool, tennis courts, boating, golf course, self-riding and other

indoor sports in addition to restaurant and cafeteria, conference room, lounge, shopping

arcade, entertainment etc., become significant in the resort hotels.

International Hotel:

The international hotels are modern luxurious hotels, classified on the basis of

international guidelines. These hotels are placed in various star categories e.g., Five-star-

deluxe, five-star, four-star, three-star, two-star, one-star. The international hotels are

mostly owned by the public companies where a board of directors is constituted for its

control. The overall management is found in the hands of senior executives.



Floating Hotel:

The floating hotels are located on the water surface. The place are sea, river, lake.

These hotels provide all the facilities and services made available in a good hotel. In the

leading tourist generating countries of the world we find the practice of using old luxury

ships as floating hotels.

Classification on the Basis of Standard and Control

On the basis of standard and control, we classify hotels into two parts, such as

Approved and Unapproved. The approved hotels are found of international standards

where the accommodations are made available as per the criteria laid down by the

Ministry of Tourism and Civil Aviation- Since they have the stamp of official

recognition, the customers trust on them. The unapproved hotels may also offer quality

services but they lack official recognition and therefore, the customers or prospects don't

believe offering of service-promised without making any distortion.

Classification on the Basis of Official Stamp

We find a number of unapproved hotels where world class services are made

available to the tourists and even the foreign tourists prefer to stay in these hotels. Hence

the point of difference between the classified and unclassified hotels or approved or

unapproved hotels is the official stamp and recognition. We find realities in the comment,

'the unapproved hotels are clean and those who spend money from their own pockets

prefer to stay in the unapproved hotels because economy in operation is given due



weightage. It is against this background that in the unapproved hotels the customers get

inexpensive accommodation, 4 Thus it is not right to say that the unapproved hotels don't

offer quality services. The differences are in the group of users or guests attending the

hotels. The foreign tourists in a majority of the cases prefer to stay in the approved hotels

whereas the domestic tourists in a majority of the cases prefer to stay in the unapproved

hotels.

Classification on the Basis of Star

One more basis for making a classification is the availability of star. The

Department of Tourism is found responsible for fixing the criteria for everything from the

size of the room to the qualifications of staff. On this basis, there are two important

types-classified and unclassified." The star group of hotels are included in the classified

group. Hotels having no star are deemed unclassified. The aforesaid classification makes

it clear that different types of hotels are used by the different categories of users who

make decisions on the basis of tariffs charged and services offered by the hotels.

Facilities Provided by the Hotel Industry

Accommodations:

Hospitality Industry provides accommodation to guests and visitors in the

different classifications based on the requirement and purpose of the guests stay. The

different types of accommodation facilities provided by hospitality sector in India are as

follows:



Hotels .

A Hotel is an establishment that provides paid lodging on a short-term basis

Resorts.

A Resort is a place used for relaxation or recreation, attracting visitors for holidays or vacations.

Inns.

Inns are generally establishments or buildings where travelers can seek lodging and, usually, food and drink. They are typically located in thecountry or along a highway.

Motels.

A type of hotel consisting of a single building of connected rooms whosedoors face a parking lot and, in some circumstances a common area or aseries of small cabins with common parking.

Hostels.

Hostels provide budget-oriented, sociable accommodation where guestscan rent a bed, sometimes a bunk be, in a dormitory and share a bathroom,lounge and sometimes a kitchen.

Floatels.

Floatels are establishments that are set up on water bodies either on top of huge buoys or pillared deep into the water which provides food andaccommodation facilities to guests.

Destination Spas.

A destination spa is a short term residential/lodging facility with the primary purpose of providing individual services for spa-goers to develophealthy habits.



Food & Beverages

Restaurants.

A restaurant prepares and serves food and drink to customers.

Café pubs.

A café or coffee shop is an informal restaurant offering a range of hot meals andmade-to-order sandwiches.

Night Clubs.

A nightclub is a drinking, dancing and entertainment venue which does its primary business after dark.

BAR.

A public house is a drinking establishment licensed to serve alcoholic drinks for consumption on or off the premises.

Travel & Tourism

Travel Agency.

A travel agency is a retail business, that sells travel related products and services tocustomers, on behalf of suppliers, such as airlines, car rentals, cruise lines, hotels,railways, sightseeing tours and package holidays that combine several products.

Tourist Packages.



A Tourist package consists of transport and accommodation advertised and sold together by a vendor known as a tour operator.

CHAPTER 3



CHAPTER 3

INTERNAL ENVIRONMENT ANALYSIS

ABOUT BEACH ORCHID

The Beach Orchid Hotel is the only five hotel in Kollam. It started its operations

from 1st September 2008. Beach Orchid is a luxury hotel with 95 rooms, located near the

beach offering panoramic view of the Arabian Sea from every room till its horizon. The

hotel is an ideal host to a holiday maker as well as corporates for their meetings,

conventions at a destination which is untouched by many natural resources providing

seven wonder views of the sea, beach, park, city, greenery scenary, harbour and

backwaters.

The main advantage of Beach Orchid Hotel is the facilities that they provide.it hasa 24 hour runnin restaurant “BLACK GOLD CAFÉ” which serves delicious foods and beverages to their customers at any time. Be it a marriage, holidaying family, businesstraveling, honeymoon whatever the situation is, Beach Orchid provides the maximumluxury everyone can just dream about. The facilities offered by The Beach Orchid Hotelare as follows.

Satellite TV Doctor on Call Money Exchange

Mini Bar Two Swimming Pools 24 hour in room diningElectronic Key Cards Credit Card Acceptance Concierge Service

Tea/Coffee Maker Laundry & Dry Cleaning Spa & Wellness Club

In room electronic Safe Gymnasium 24 hours on site security

Energy Saving Systems Curio Shop Wifi Connectivity



Grooming Kits Free Breakfast for Guests Travel Desk

THE ECOTEL CONCEPT

The Beach Orchid Hotel is the first ever ECOTEL Hotel in South India. In Fact ,

there are only 34 ECOTEL Hotels in the world out of which only 3 including The Beach

Orchid Hotel are 5 star hotels with the prestigious 5 globe certification. The ECOTEL

Collection is an exclusive group of international inns, hotels and resorts that define the

concept of environmental responsibility in the hospitality industry.

The ECOTEL inspection is based on five separate inspections each with a three-

tiered Numerical Scoring System. The five inspections correspond with the five globe

awards:

• Environmental Commitment

• Solid Waste Management

• Energy Efficiency

• Water Conservation

•

Employee Education & Community Involvement

Within each globe inspection there are three levels of criteria and scoring: Primary,

Secondary and Tertiary scores. All hotels applying for certification must satisfy all of the

primary criteria before an inspection will be scheduled. The hotel must prepare an



application including descriptions of how the primary criteria are achieved, and include

descriptions of other environmental efforts and programs that are at the hotel.

Once it is evident that all of the primary criteria have been satisfied, inspectionsare scheduled to ascertain the lodging facility's score according to the secondary criteria.

Inspections both guided by hotel staff and unguided are completed throughout the

lodging facility to determine if the environmental programs that the hotel reports are

actually part of the day-to-day operations. Each department or function area of the hotel

(i.e., main restaurant kitchen, banquet kitchen, room service kitchen, front desk and office

area, executive office areas, etc.) is inspected and scored individually. A percentage score

is calculated for each department inspection, and each department must score above a set

level to be awarded the certification. If any department scores below that level, but above

a minimum threshold, the tertiary criteria (described herein) can boost that department's

score in order that the hotel may achieve the award.

The tertiary criteria are most easily described as a bonus system. The hotel receives

bonus points for environmental programs discovered in operation that are not part of the

primary criteria, and are considered to be above ordinary levels of environmental

responsibility.

Based on the hotel's numerical scoring rate in each category, the lodging facility will

receive from zero to five ECOTEL Globes, corresponding to each of the five

cornerstones. Hotels that achieve the globes qualify as ECOTEL certified hotels for a

period of two years, but must agree to re-inspections (announced or unguided) at any

time during that period. If the hotel falls short of achieving certified status, the HVS



International inspection team will prepare an action plan to help management make the

changes necessary and prepare for re-inspection.

Members of the ECOTEL Collection realize a number of benefits. Primarily thevalue of the business will improve due to increased exposure in the marketplace, higher

staff morale, and better control of operating expenses. The ECOTEL Collection of hotels

caters to a variety of groups, including not only traditional ecotourists, but also discerning

business travelers with interest in the environment, companies with advanced

environmental programs as part of their own corporate cultures, corporate meeting

planners, travel agents, eco-friendly vacationers, and of course business, travel, and

environmental media.

Because of the integrity of the ECOTEL certification and inspection system, travelers and

the media rely on this endorsement of a hotel's environmental performance. When

presented properly, the certification can be a powerful marketing advantage and

motivator of sales.

ECOTEL hotels should follow a 4 bin waste management system wherein wastes should

be disposed off separately according to their nature. The four bin systems followed are:

Black Bin - Food & Wet garbage,

White - Plastics, bottles, tins, cans,

Red - Cigarette buds, oil paper, grease, broken glass (Non Recyclable)

Green - Paper, Cardboard (Recyclable)



OWNERSHIP & MANAGEMENT

The ownership and management of The Beach Orchid Hotel is different. The

Hotel is owned and invested by Mr Sreekumar who is the managing director of “Quilon

Hotels and Resorts’ . The hotel is managed by a group calledCONCEPT

HOSPITALITY LTD. is a conception of a team of hotel consultants and experts

formulated in July 1996 in Mumbai. CHL sets up and operates Restaurants, Hotels, Clubs

and Resorts for different owners. This submission outlines the strength of CHL's

Management System, incorporating the decentralized profit orientated management

philosophy which has consistently produced the best possible returns to hotel owners and

the highest levels of guest satisfaction. It details CHL's sales and marketing network, and

the "state of the art" teamwork - which is the ability to work together towards a common

vision. It illustrates how CHL has earned a reputation as an industry leader in setting upand helping to certifying environmentally friendly hotels, with a full range of training

programs, each of which has been adapted for the various cultures and environment,

within which it operates the hotels.

CHL has had a presence in India for over 10 years and so understands and has adapted its

systems and management to the values and culture of India. CHL does not believe in the

total imposition of western systems and management concepts, but an integration of these

with the prevailing culture to maximize both employee productivity and guest satisfaction

to achieve the highest possible returns for the property owner.



Mission Statement of Concept Hospitality Ltd.

To create a group of Corporate Hotels, Service Apartments and Resorts, which are

efficient and friendly and also environmentally sensitive.

Strategies of Concept Hospitality Ltd.

CHL have developed strategies to help hoteliers/entrepreneurs increase the value of their

investments and this has paid rich dividends as more and more travellers are becoming

conscious and choose to patronize CHL group of hotels, which are environmentallyfriendly and most of them certified as Ecotel Hotels. Environmentally sensitive travellers

are the fastest growing segment in the Travel Industry.

Management of Concept Hospitality Ltd.

Operational Structure :

The Chairman - Mr. Param Kannampilly, who is an experienced Hotelier, a Fellow of the

Institute of Hospitality, London and also a Fellow of the World Academy of Productivity

Sciences, heads the Company.

The organizational philosophy of CHL is based on a ‘hands-on’ corporate office

providing support services in the field of Operations, finance and administration,

technical services, human resource development, sales, marketing, product development,

MIS and reservations. Specialist consultants are added where necessary.

Managed by CHL Executive Chairman – Mr. Param Kannampilly, Managing Director -

Mr. Manoj Bhatia, and it’s CEO - Mr. Pushpinder Kumar, properties under CHL’s



management are broken down into strategic areas, managed by Vice Presidents, who are

responsible for generating profit with defined guidelines. The VP’s are in turn supported

by area specialists in financial control, human resources development, sales and

marketing.

Divisions of Concept Hospitality Ltd.

Hotel Consultancy

Providing consultancy in hospitality industry including preparation of

feasibility studies, conceptualisation of hotel projects and implementation of

same, preparation and implementation of marketing program, recruitment of staff

etc.

Hotel Management

Concept Hospitality Ltd. is staffed by hotel professionals skilled at

identifying profit potential and extracting it for the benefit of the owner. Concept

Hospitality Ltd. will not manage the day-to-day operations of the hotel; it will

supervise the management company, provide the highest quality pooled

professional resource which is capable of discovering new profit opportunities,

cost savings and operational advantages. Concept Hospitality Ltd. will achieve theowner's aims and at the same time maintain a harmonious and professional

relationship with the operator.



Marketing

Positioning a new hotel in the market place is a very important aspect of

marketing. With spiraling prices and huge costs of development, it has become

mandatory to implement innovative ideas for marketing a hotel. It is equally

important to understand that the development itself is a long process and as such

the hotel industry has a long gestation period. To partly fund the project cost,

some of the projects are designed as multi use projects in which a certain percentage of the hotel rooms are pre sold, so that the owners have some capital.

The marketing division has devised a unique strategy to market the rooms in

advance and thereby raise funds required for implementation of project and also

underwriting occupancy. Concept Hospitality Limited is aware of the fact that

hotels generally work at 70%-75% occupancy. It is thus imperative to

presell/underwrite 25-30% of the room inventory to ensure 100% occupancy. The

marketing plan has received approval from all professional quarters. The

company has entered into an understanding with Himco (India) Limited for

marketing its hotel project.

Tie up with HVS eco service

Concept Hospitality Ltd. has entered into a MOU with HVS Eco

Services (the certifying agency for environmentally sensitive hotels) to facilitate

growth of Ecotels in Asia and particularly India over the next few years. Ecotel is

the `Hallmark of Environmentally Sensitive Hotels'. Concept Hospitality Ltd. will



operationalise the certification and market the brand. In this process, four

properties (Hotel Rodas, Mumbai; Lotus Suites, Mumbai; Uppal's Orchid, New

Delhi and Jungle Lodges Resorts, Bangalore - A Govt. of Karnataka undertaking)

have already gone in for the Ecotel certification.



CHAPTER 4



Sales &Marketing Department

Sales and marketing is in charge of sale of the hotel services like rooms and

banquet halls. This department tries to find out the customer need and tries its level best

to satisfy the guests, so that they have a good service and would like to repeat it whenever

needed.

HIERARCHY

Sales Manager (Mr. Sreejith)

Sales Executive (Mr. Denver)

Sales & Marketing Executive (Miss Doni)

Functions of Sales & Marketing Department

Market Research

Product Development

Promotion

Selling

Monitoring & Reviewing



The main objective of people in the marketing and selling department is to inform

maximum number of people about the hotel. Being a new Hotel in town , it will take its

own time to gain recognition of the people. The marketing department is striving hard to

inform people about the hotel and also to bring people to the hotel. They are sure that if a

customer comes to The Beach Orchid Hotel once, then the hotel’s service and facilities

will surely make them come again.

MARKETING VS SELLING THE HOTEL SERVICES

According to the concept and perception of hotel marketing, it is right to mention

that marketing and selling of hotel services can't be tantamount. In selling, the key areas

are advertising including other aspects of marketing communication like telephones,

letters, and face to face communication. Often, the hoteliers explain their marketing

strategies by showing computer booking services and the advertising campaigns planned

for the coming tourists. As per the continuous circle, it is essential to keep intoconsideration the research required for data collection and on the basis of a sound

marketing information system transforming the data into information for making right

marketing decisions. In addition, it is also essential that the strategies adopted by the

competitors are given due weightage, specially while making and practising the strategic

decisions, The threats and weaknesses in the markets are identified, if we have an indepth

information regarding the competitors. The pricing decisions are also significant keeping

in view the seasonal fluctuations which play a significant role in the hotel industry.



MARKETING POLICY

The major difference in marketing hotel services as against other consumer

products, is that after a customer has spent money in hotels, he/ she has nothing

substantial to show except bills for his/ her money as benefits as compared with buying

tangibles, such as television and refrigerator. But if the rooms of a hotel remain vacant, it

is unlikely that the same can be sold next day. While selling the hotel services, we cover

the limited areas but while marketing the hotel services, we find unlimited areas. If we

talk about marketing the hotel services, we include in its purview everything and almostall the dimensions directly or indirectly helping in promoting the business and this

necessitates formulation of a sound marketing mix, such as an aggregation of different

submixes like product, promotion, pricing, place and people. We manage services, we

manage promotional activities, we manage pricing, we manage distribution process and

we manage people serving as hotel personnel.

USERS OF HOTEL INDUSTRY

In marketing hotel services, it is important to know about the different types of

users availing the services with diverse aims and objectives. This would ease 'the task of

marketers specially while studying the behavioural profile. Below given is the

classification of different categories of domestic and foreign users.

Domestic – Pilgrims, Students, Officials, Film stars, Intellects, Sportsmen, Business

Executives, Tourists.



Foreign - Political Representatives, Trade Representative, Educationists, Tourists,

Sportsmen, Cultural Representatives, Pilgrims, Business Executives.

It is natural that we fined a difference in the intensity of both the categories of uses.

Domestic Users : In the group of domestic users, the different categories are pilgrims

visiting the sacred places, students on educational tours, officials on deputation, political

representatives, film stars on location shooting. Knowledge seekers on developing their

credentials, sportsmen playing national games. The domestic users stay in hotels with adifferent motive. We find a change in the level of domestic users. Generally the domestic

customers pay less attention on value and more on price, A majority of the domestic users

are found price-sensitive and therefore the hoteliers are supposed to make pricing

decisions motivational. Kollam being known as the land of cashews and a place which

has a lot of cashew factories and tradings, The Beach Orchid Hotel tries to capture the

attention of the cashew devolepers and cashew factories owners to have an association

with the hotel. But there are two other luxury hotels in kollam namely Hotel Nani and

Hotel Nila Palace which are owned by cashew owners. So most of the functions and

meetings of cashew owners go the competitiors way.

Foreign Users : In the group of foreign users, we find political representatives on peace

mission, trade representatives on business promotion, educationists, sportsmen, cultural

representatives, film stars, pilgrims etc. These categories of foreign tourists visit-hotels

with diverse aims and objectives. They normally prefer to stay in the classified hotels



where the services are found standardized. We also find cases where foreigners stay even

in the unclassified hotels- To be more specific the existing world wide economic

depression has made even the foreign users sensitive to price and this makes it significant

that policy makers and the senior executives assign due weightage to this new

development.

MARKET SEGMENTATION FOR THE HOTEL

To make the marketing decisions effective, it is essential that the hotel

professionals segment the market in such a way that the task of identifying the changing

needs and requirements of different segments is made easier.The Beach Orchid Hotel

segments their customers on the basis of their earnings and status. Segmentation proves

to be an important commandment of marketing since this helps in making and innovating

the marketing decisions. All the users, of course have their own likes and dislikes because

the food habits are different the drinking habits are different; the expectations are

different- The kids, teens, youths, men, women, married and unmarried, youth and grey,

technocrats and bureaucrats, business executives and political representatives stay in

hotels with diverse motives. Segmentation makes the ways for knowing their uniqueness

and formulating the sub mixes in such a way that an optimal development of marketing

resources is made possible. It is against this background that segmentation is done for the

hotel organizations.



MARKET TARGETING OF THE HOTEL

The Beach Orchid Hotel, being a five star hotel is obviously expensive

than other range of hotels. So, this hotel cannot target the lower strata of the society as

they will not able to afford it. The main target customers are above middle class strata of

the society. But the main marketing strategy of The Beach Orchid Hotel is to attract

corporates. Financial Companies are institutions where atleast one meeting will be held

every month. So the marketing team of The Beach Orchid Hotel is trying their maximum

to have an association with the financial companies in and around the city and providefacilities and services to them at a reasonable price. They also target the cashew industry

because there are many cashew facories and cashew tradings being going on in kollam

and if beach orchid succeeds in having an association with the cashew devolepment

authorities, they will surely get a lot of customers.

MARKET POSITIONING OF THE HOTEL

The Beach Orchid Hotel is positioned in the minds of the customers as a luxury

hotel with excellent service and luxury which is very expensive, not affordable for the

lower strata of the society and as a status symbol also. i.e. functions and banquets in TheBeach Orchid Hotel will be conducted only by upper class people and is not for the

middle class and below middle class people.



THE PRODUCT MIX

Levels of Service:

Level 1: Core/Generic Product

This is the basic service product. In a hotel , the food and accommodation services

offered to the guests by way of the hospitality and behaviour of the employees of the

hotel is the core product or service.

Level 2: Expected Product

This is the basic product and minimum purchase conditions that must be met. In

Beach Orchid, in addition to the core product some other supplementary services like

complementary buffet breakfast, free pick up and drop at railway stations and airports

etc.

Level 3: Augmented product

In this, along with the basic and minimum offering, there is something differentwhich enables the product or service to be differentiated from that of the competitors. InBeach orchid Hotel, the hotels rooms are designed in such a way that all rooms are seaview rooms. This factor distinguishes Beach Orchid from other their competitors.

Level 4. Potential product:

The potential product contains potentially feasible features and benefits that play asignificant role in holding and attracting the customer. These features and benefits areuseful or likely to be useful to the customers. Fro example, in Beach Orchid Hotelfacilities like spa, ayurvedic massage, electronic locker in every rooms are potential products of the hotel.



PROMOTION MIX

For successful marketing, it is only not sufficient that the hotels concentrate on

the quality of services but it is also impact generating that they promote their business in

such a way that their prospects come to know about the quality to be offered to them as

hotel customers. This focuses the beach orchid’s attention on innovative promotional

measures. It is against this background that the hotel talks about the promotional

measures. There are a number of components for promoting the business and it is hoped

that a professionally sound employee would blend the different constituents in such a

way that effects are proactive but the process of persuasion is cost-effective. Thecomponents like advertisement, publicity, sales promotion, personal selling, word-of-

mouth promotion and telemarketing need due attention of hotel professionals.

The success rate of a hotel is virtually coiled in the essence of transforming the

occasional visitors into the habitual visitors because this helps substantially the process of

increasing the occupancy ratio. The sensitivity is vigorously influenced by creativity.

This makes it essential that the decision makers in the hotel industry make sincere efforts

to formulate sound promotional strategy. No one can't deny the fact that creation of

awareness has a far reaching effect on the formulation of promotional strategy. If

scientifically formulated, optimally blended promotional measures are used by the

professionally-sound and personally-committed hotel personnel, the rate of successwould be found satisfactory. The marketing team of beach orchid hotel finds a number of

instances to quote that even quality services failed in creating and expanding market

because the promotional measures failed in sensitizing the prospects. This draws the





The broadcast media can also be used for advertising the hotel services but if we

make a comparative analysis of this media with others, the effects are found of low

intensity. The hotel professionals are supposed to select a suitable time for transmission

when a majority of the target audience are supposed to be close to the radio set. We find a

particular season during which the pilgrims prefer to visit the sacred places and the hotels

located in that catchment area need to advertise on sensitive hours. The messages, themes

need rural orientation in the very context. It is essential that the advertising professionals

are well aware of the nature and requirements of target audience.

Publicity :

Another dimension of promotion known as an unpaid form of persuasive

communication also plays an incremental role in promoting the hotel business. While

publicizing, thy hotel professionals play a significant role by managing the media

personnel or publishing news items related to the hotel. Public relations activities thus

become instrumental in the process of publicising.

In the hotel industry, public relations activities are more instrumental in informing

the clients about the outstanding merits of different services offered. The specialties of

hotel are presented in such a way that the prospects are motivated to avail of the facilities

offered by a particular hotel- It also helps in creating an atmosphere where the users at

large are convinced. Besides, it also helps in collecting the information on the preferences

of the prospects. It is right to mention that we find a few or even a very few consumer

industries to be benefited substantially by public relations as the hotel industry. The vast

majority of hoteliers welcome publicity not only because it is free but because they know

that most people buy a magazine or a newspaper to read the articles, news and editorials,



rather than the advertisements unless they are looking for a product or are interested in

booking a holiday or a restaurant or a convention hall or a wedding hall.

In The Beach Orchid Hotel, there are a number of events which are transmitted to

the local press, such as the appointment of a new chef, list of cocktails, menus for certain

functions held at hotel, particulars of certain important conferences or exhibitions to be

held, menus for special days of the year, photographs of staff dressed up for special days

and well-known people staying in the hotel. Journalists always prefer to visit a hotel as

they get their full enjoyment free of cost. Beach Orchid gives journalists a write-up of

their story and preferably a story with a photograph. For this, the marketing people of The Beach Orchid Hotel are eyeing on journalist and offering them good services from

the hotel so as to have a good relationship between the hotel and the journalist. Even

though this may seem unethical, but this is one of the finest eye-catching free publicity.

In the public relations, the activities range from a press release to newspapers and

magazines, especially to create the interest of prospects in a holiday package in a good

resort of a country. The holiday package tours and trips on familiarity with a tour spot,

organised by tour operators for the travel agents help them in enriching their knowledge

and making the travelling decisions. The Beach Orchid Hotel has recently launched the

monsoon package where a couple can stay for 2 nights and 3 days at the hotel and can

avail all the facilities of the hotel including the buffet lunch and dinner. They also get an

ayurvedic massage for 3o minutes every day plus a boat trip in the beautiful backwaters

of ashtamudi.



There are a number of media sources available for publicity. Illustration, copy and

the spoken word are the primary publicity to media which are grouped into the following

heads:

• Printed Publicity

• Advertising Publicity

• Projected Publicity

• Structural Publicity .

• Personal Publicity

Thus it is right to say that public relations activities occupy a significant place inthe promotion mix of The Beach Orchid Hotel.

Sales Promotion :

In Beach Orchid, the marketing people feels the need of offering incentives for

promoting the business. Like other organisations, the hotels and hotel companies also

offer incentives to the users vis-a-vis to the personnel and organizations evincing interest

in promoting the business. The Beach Orchid Hotel considers sales promotion a

temporary device to increase their business with certain objectives. It is a short term

activity seeking to boost sales during peak demand periods to make it sure that the firm

obtains its market share and helps launch a new product or support an ailing or modified

services. These facts make it clear that sales promotion is complementary to advertising.

Sales promotion and advertising objectives do not conflict but reinforce one another.

This tool of promotion is designed to appeal particularly to those customers who

are found sensitive to price. It is quite natural that the tools of sales promotion attract



buyers even having little brand loyalty. In the hotel business, we find perishability a risk

and this factor is also given due weightage while offering off-season accommodation at

low price tags.

The Marketing People in The Beach Orchid Hotel feels that repeated advertising

and competitive market conditions two important reasons for the growing significance of

sales promotion in the hotel industry. The techniques may be directed by the hotel staff,

tour operator and the travel agents including the users of the services. They find tools of

sales promotion directed at the hotel staff, tour operator and travel agents and guests or clients.

Tools of Sales Promotion

The following tools of sales promotion are some of the sales promotion

techniques followed in The Beach Orchid Hotel

Brochure :

It is a device to stimulate customers and motivate them to visit a hotel and

avail of the benefits offered by the management of the hotel It is a detailed

publication helping hotel companies in promoting their business. The guests,

clients get detailed information from the brochure.

Folder :



We find folder the most commonly used sales promotion tool. In this

respect, it is essential that folders have an impressive appearance in totality.

The particulars are required to be in brief but clear. The hotels can use folders

for promoting the business.

Packaging :

We call packaging an attractive wrapper of product. When we talk about

packaging in the hotel industry, our emphasis is on the outer cover and

internal layout of brochures and leaflets.

Attraction leaflets :

This is exclusively meant for presenting a view of the different theme parks,

museums, amusement parks, outstanding points of attraction in the hotels or so.

Merchandising :

It is found helpful in promoting mass-market- This tool is found significant

to restaurants and bars. The merchandising involves displaying of food stuffs and

drinks in the right location.



Direct Mail Materials :

The sales letters are found to be a direct mail material which can either be

used alone or in combination with brochures and folders.

Display Materials :

In the materials to be displayed at sensitive points are posters, dispensers,

exhibits etc. Beach Orchid uses these materials in the offices of the travel agents,

tour operators or at the places where tourists come, such as tourists spots, resorts,

airports, railway and bus stations.

Word-of-mouth Promotion :

The Beach Orchid Hotel considers word-of-mouth promotion very much

instrumental in sensitizing the prospects. In the hotel industry, it is much more significant

that the satisfaction of users is give top priority- Of course, there are a number of

components to promote sale but it is right to mention that other constituents may be

ineffective but the word-of-mouth can't. The word-of-mouth promoters are those who are

satisfied with the services of hotels or are motivated to motivate the prospects. No one

can't deny the fact that one bad meal would often do more damage by word of mouth than

fifty good meals. The Hotel’s guests take a good meal for granted but don't forget to

narrate to their friends and relatives about a bad meal or the bitter experiences of menu-fatigue. This speaks of the fact that word-of-mouth promotion can show more negative

effects and therefore the hotels and hotel companies need to assign due weightage to this

component of the promotion mix. Of course, the dissatisfied group of users are free to



complain to the hotel management but often they don't act. We find them close-mouthed

and stiff-lipped till they make a good-bye and after going back they try their best to think

twice before coming to that hotel again. Moreover they start narrating to their friends and

relatives their bitter experiences of menu fatigue even without taking a rest. It is against

this background that high-level functions, refined behaviour and world class services by

the hotel personnel carry some meaning. These services pave the ways for oral

communication and recommendation. In the Beach Orchid Hotel if the guests has some

serious complaints, the general manager personally meets him and apologizes for the

inconvenience caused and also provides the guests a half kg cream cake as an item of apology free of costs.

Personal Selling:

Nothing happens unless anyone sells something and nothing is sold unless the

buyers are motivated to purchase things of their choice. The oral representation in

conversation bears the efficacy of transforming the motivation into persuasion. Thus

persuasion is one of the main thing in energising the process of marketing. Personal

selling has proved to be an important constituent of promotion. There is no doubt in it

that the goods or services are found half-sold when their properties are well told. The art

of telling -and - selling is personal promotion which depends upon the personal

excellence.

The hotel business is substantially influenced by personal selling- The personal

selling brings considerable momentum to the process of boosting the hotel business. The

feedback received from the sales force engaged in the process helps marketers in



designing the development plans. Besides, the transmission of first hand information is

also an outstanding contribution of this tool of promotion. Service does not mean

servility- The Phrase 'the customer is always right', applies specifically to the hotel

industry. The sales personnel are required to be friendly in dealings and cheerful in

expression. They are required to be helpful and patient and above all, they should appear

satisfied and work towards generating more -satisfaction to customers.

Telemarketing :

The Marketing people in the hotel cant negate the fact that even in the hotel

industry, the telemarketing can play an incremental role. It is against this background that

the instrumentality of telemarketing in promoting the hotel business. The fact that the

instrumentality of telemarketing is substantially influenced by the skill of telemarketers

vis-a-vis the instruments used in the process. A person with high communicative ability is

to perform as a telemarketer who bears the responsibility of answering to the questions

and queries of customers, prospects regarding the business transactions. In the hotel

industry, the telemarketing can be helpful in promoting the business since the tour

operators, transport operators, travel agents and the users develop a number of confusions

and misunderstanding about booking, confirmation, cancellation, availability of package

tour, a change in the hotel tariff or so. If they have misunderstanding or they are

confused, it is pertinent that the telemarketers remove their misunderstanding by

answering to their questions suitably. It is in this context that the beach orchid hotel

marketing experts find telemarketers very much instrumental in activating the business

transactions and that’s why they select their telemarketers very carefully.



PRICE MIX

Like other organisations, the hotels also need to make pricing decisions. The

existence and prosperity of hotels and hotel companies are substantially influenced by the

quality of pricing decisions. Of late, there is world-wide economic depression and the

trend is not likely to be reversed in the near future.

The pricing decisions are beset with many problems. No doubt in it that fixing

the hotel tariffs is just like pricing other goods and services. At the same time, it is also

right to mention that the hotel professionals need more excellence while fixing the hoteltariffs since the services are found of perishable nature. In addition, the seasonal

fluctuation in demand and increasing intensity of competition also complicate the task of

professionals. The Beach Orchid Hotel needs world class excellence while making

strategical and tactical pricing decisions- It is in this context that they go through the

problem of price mix. Managing relatively volatile demand around a relatively fixed

capacity of highly perishable product supply is identified as one of the principal

characteristics of the hotel business.

Pricing menus and drinks in hotel food and beverage areas to obtain maximum

sales and profits is a very complex subject. While formulating the pricing strategy, the

beach orchid hotel professionals takes into account a number of factors, specially the

diverse nature and character of dishes, involvement of costs and spending power of the

customers. They also considers the economic criteria, target average spends, target

covers per meal period, current menu and drink prices.





Tariff of rooms in The Beach Orchid Hotel

ROOM TYPE Rooms Single Bed Double Bed

Available

Deluxe Room 56 5950 * 6450*

Premium Rooms 30 6950 * 7450*

Executive Suite 7 8950 * 9450*

Royal Suite 1 15950* 15950*

Honeymoon Suite 1 18950* 18950*

* plus taxes.

PLACE MIX

The choice of location is, of course, the most important business decision. This is

due to the fact that a well located business can often be sure of an adequate now of

customers to its catchment area. In the case of The Beach Orchid Hotel, which is situated

near the kollam beach has a great advantage of being located near the beach. Kollam

Beach is one of the most favourite hangout place for majority of the people in kollam.

This helps the beach orchid hotel to get more beach going customers. Apart from it , all

the rooms in The Beach Orchid Hotel are sea facing rooms which is the Unique Selling

Point of the Hotel.



PEOPLE MIX

In an age of sophisticated information technologies when we have been making

superhighway for communications, there is a basic change in the expectations of users.

The personnel serving the hotel companies no doubt depend substantially on the

instrumentality of information technologies but here it is , also important that hotels and

hotel companies assign due weightage to the development of personnel. This phrase is

meaningful not only for the technologies but even for the people who manage them. It is

against this background that the marketing experts the world over have been found

making a strong advocacy in favour of an ongoing training programme for the personnelservicing the hotel companies.

In this context, the prime focus of The Beach Orchid Hotel is on the front-line-

personnel working in hotels in different capacities. The receptionists, the porters, the

house-keepers, the waiters and waiteresses and even the doormen play an incremental

role in promoting the business. The sales executives, the marketing managers, the senior

executives bear the responsibility of managing the front-line-personnel in such a way that

the promised services reach to the ultimate users without making any distortion. Even

though they are having proper education and knowledge regarding the services they need

to offer but still The Beach Orchid Hotel organize for them an ongoing training

programme, refresher courses, capsule courses, lecture programmes, specially related to

the behavioural profile. They find several cases to quote that even the five star hotels

where the users stay with high expectations and a minor mistake committed by the

receptionists or the housekeepers has resulted in a bigloss. The front- line-staffing

particular need to identify the changing levels of expectations of users and in a majority



of the cases they virtually fail in doing such. A gap is generated between the quality-

promised and the quality-offered. If the hotel personnel prove to be high-performers,

personally-committed, professionally-sound, value-oriented, aware of the behavioural

management familiar with the aesthetic management they can satisfy the users even if the

sophisticated technologies develop a fault. This makes it essential that the hotel personnel

are made available an ongoing training facility efficacious in enriching their professional

excellence. The cases of menu fatigue, power interruption, mismanaged bedrooms,

function rooms and restaurants, indecent behaviour of doormen, poor information by the

receptionists and enquiries are minimised considerably by assigning due weightage to performance-orientation.The Beach Orchid Hotel Team believes that technologies in no

case can replace the high-performers.



HUMAN RESOURCES MANAGEMENT

In hotel industry the job of a HR manager can be compared with the job of

a music conductor, whose job is to instruct and direct all of the various musicians so that

they can perform well together. But before a conductor can direct a beautiful

performance, all of the individual musicians must be able to play their instruments well.

What kind of performance could one can expect if the violinists did not know how to play

their instruments or the flutists could not read music?

So it is in the hospitality industry, before a manager can direct and shapeemployee’s individual contributions into an efficient whole, he or she must first turn

employees into competent workers who know how to do their jobs. Employees are the

musicians of the orchestra that the members of the audience-the-guests-have come to

watch performance. If employees are not skilled at their jobs, then the performance they

give will get bad reviews. Just as an orchestra can have a fine musical score from a great

composer and still perform poorly because of incompetent musicians, so a hotel can have

a finest standard recipes, service procedures and quality standards and still have

dissatisfied guests because of poor employee performance.

That is why properly managing human resources is so important. No other

industry provides so much contact between employees and customers and so many

opportunities to either reinforce a positive experience or create a negative one.

As in the five-star hotel and five-star deluxe hotel there are around lots of

employee are involved in different jobs in different fields there is dire need to look and

control on them. No doubt different department’s heads are present to look their



department employee, but HRD is a place, which supervise and effectively communicate

with these departments head and communicate with the top management. Thus their

function is very large and diverse as compared with respect to different department’s

heads.

HUMAN RESOURCE PLANNING IN THE BEACH ORCHID HOTEL:

The total strength of the organization is 250. They have 12 departments in the

hotel with only 5 people in the HR department catering to the manpower needs of the rest

11 departments. They have 70-75% employees in the operations department including

services and housekeeping.

They prepare a budget at the beginning of the year. Taking into consideration many

factors such as high attrition rate of 50%, competition from other high paying hotels,

Manpower planning is done in such a way that there is maximum recruitment in the

months of May, June, July as they can hire freshers from hotel management institutes and

also by considering the fact that there is maximum attrition in the month of August,

September and October.





For people who work in contact with the customer the recruitment process begins

with a telephonic interview by the HR manager. If the prospective candidate is found to

be eligible to the particular post, then he will be called for a direct interview where he

will have be interviewed by the interview panel of the general manager, personnel

manager and the head of the respective department where his service is needed. He will

also be asked to do his work practically by offering service to the customers which will

be supervised and evaluated by the interview panel.

Beach Orchid recruits people mainly freshers from hotel management institutesThey prefer taking in-house people for senior position. The criteria for recruiting are 1st

and foremost attitude and then they look for personality.

TRAINING & DEVELOPMENT

They conduct training and development as and when required when there is a need. The

Training & Environment Manager Mr. Kapilan S is responsible for the training and

devolepment activities inside the hotel .They senior level management has a training and

development session whereby they go on a 3 day training session where they have ice-

breakers and team development sessions so that there is no inter-department rivalry.Every

month a training calendar is prepared wherein the whole schedule of the month is made

including what all things are to be done, how & where the training is to be given and such

other things. Fire drills, evacuation, bomb threat, first aid, various leadership games,

environment training etc forms part of the training process.



I NDUCTION & O RIENTATION

After selection there is an induction. Beach Orchid conducts an induction program

once every month, usually in the beginning of the month. Generally the inductions are

done during this time only for all new employees. This is a common induction which is

done for every new employee whether a chef or a manager.

This induction gives a basic introduction to the company and the job. It gives

basic details on the company and it is followed by a games session which is an ice

breaker between the new employees. This is done as a team building operation.

P ERFORMANCE APPRAISAL

Promotion and performance appraisal takes place every 3 months where by the

head of the department and the immediate higher-ups evaluate the performance of the

employee by filling in a form which is then evaluated by the HR department. This form

has various factors which are as basic as how many times in the quarter the employee has

been late to issues like whether an employee has be involved in any conflict with a

customer or fellow employee. Since there are various departments like housekeeping,

back office, front desk, sales and marketing, kitchens, etc. the performance appraisal

changes depending on the department.



The performance appraisal form in Beach Orchid has 4 parameters. They are as follows:

Peers Stroke:

This section consists of the positive strokes given by the peers/colleagues for a

particular employee.

Green Stroke:

Since Beach Orchid is a ECOTEL (environment friendly hotel), it has certain

responsibilities to the environment. Green Stokes are given to those persons who

are environment conscious and if he does some act voluntarily for the sake of th

environment , he will be given a green stroke.Customer Stroke:

This is considered as the most valuable stroke. If a customer says something good

about a particular employee, then he gets a green stroke.

Negative Strokes:

Negative Strokes represents the bad marks of an employee. If he enters into a

conflict with another employee, comes late or leaves early to/from the

organization, gets a complaint from a customer etc. he will get a negative stroke.

At the end of every month , the person who is having the most number of

positive strokes and the least number of negative strokes will be selected as the employee

of the month. The person who comes next to the employee of the month in stroke points

will be the runner up employee of the month. This will make him work harder in order to

achieve the employee of the month next time.



EXIT INTERVIEW

It is conducted by the HR department as they feel that their employees are their

biggest assets and they would do their best to retain them. It is a formal process and isdocumented for records.

TIMINGS: 9:00 AM to 6:00 PM



FINANCE & ACCOUNTS DEPARTMENT

The Accounts and Finance Department of the hotel deals with mainly the hotel

revenue expenditure profits. This department deals with the work of correcting and

checking all the accounts from th various departments of the hotel. The total number of

staffs in the accounts department is 5.

HIERARCHY

Chief Accountant (Mr. Sasidharan S)

Finance Manager (Mr. Sajin P K)

Food & Beverage Controller ( Mr. Ani S)

Accounts and Finance Assistants (Miss. Sumi & Mr Manuel)

The activities of the accounts section of the Beach Orchid Hotel starts with

the morning meeting every day with all department heads and the general

manager. There are 2 accounts maintained by the hotel with the Union bank of

India. They are:



Receipts a/c

Payment a/c

The accounts section updated the old Tally 7 accounting software with Tally 9.2

now. All the accounting transactions are done through this software. The accounts section

also uses the centralized software program “HOTSOFT” which is commonly used in the

hotel industry. The accounts departments gets a copy of the bill when a transaction in the

hotel occurs.

Shares & Debentures

.The Beach Orchid is a priate limited company registered under the

companies act of 1956. The hotel has only issued a small part of its equity shares to

outsiders. Majority of the shares (more than 90 %) are held by mr. Sreekumar and his

family. No debentures are yet issued . The Beach Orchid Hotel uses most of its Managing

Director’s (Mr. Sreekumar) funds. Other sources of funds are a small portion from bank

borrowings and issue of a small portion of the equity shares to 4 outsiders but they are

not in the director board. The company has not yet distributed any dividends to its

shareholders.

Balance Sheet

A Balance Sheet is a document prepared to know the financial position of an

organization for a particular period of time. Due to the organization policies and for other

security reasons , the accounts department of the beach orchid hotel was not willing to



share their balance sheet, trial balance and other financial statements for my organization

study. Henceforth no data about the liquidity position and other accounting ratios could

not been found out due to the lack of data.

Files Maintained in the Accounts Department

Debtors Correspondence

Purchase Order

Daily Receiving report

Management Information Systems

Budget File

Company File.

TIMINGS: 9:00 AM to 6:00 PM



PURCHASE & STORES DEPARTMENT

The purchase and stores department at th hotel doeas all the purchase for the

kitchen department and also all the other departments and stores them at the purchase

department and stores department. When any of the departments of the hotel requires

things like stationary, vegetables, fruits, meat, spices, ice – creams, soft drinks etc they

would contact the purchase and stores department in order to acquire them. It is o be

noted that all the purchases of the department will be done only through the purchase and

stores department. Even for buying things like computer, television, furniture and other

items in the hotel room , the purchase is done through the purchase department.

HIERARCHY

Purchase & Stores Manager (Mr. Sasidharan Pillai)

Purchase & Stores Assisstant (Mr. Nithin Babu)

Purchase & Stores Supervisor (Mr. Anand.S)

Utility Boy





SECURITY DEPARTMENT

After the terror attacks on the TAJ PALACE HOTEL , Mumbai on 26-11-

08 , the customers had shown great concern in security of the hotel. The beach Orchid is

guarded by not less than 20 securities at any time. The chief security offices is Mr.

Surendhran who had served the kerala police for more than 3 decades the crime branch

cell.

HIERARCHY

Chief Security Officer

Assistant Security Officer

Guards Watchmen

SHIFTS

1st Shift: 6:00 AM to 3:00 PM

7:00 AM to 4:00 PM

Breakshift i.e. 7:00 AM to 11:30 AM and 7:00 PM to 11:30 PM

2nd Shift: 3:00 PM to 12:00 PM

Night Shift: 10:00 PM to 7:00 AM



OPERATIONS

Some of the modes of operations in the The Beach Orchid Hotel are as follows:

Reservation

This is the important section in the front office department. the reservation

assistant handles the reservation. They have a major role to play in achieving the

maximum sale of rooms. It works on a general shift from 9:00 AM to 6:00 PM

The faxes and telexes first comes to the business centre and then forwarded to the

reservations, then the reservations assistant goes through it and does the process

accordingly. If those dates are all sold out for the day then the reservationists sends a

reply saying that she is unable to confirm the booking and takes it on wait listed. If

somebody calls up for a booking, the reservationists there looks at the room availability

chart and then into the computer for booking details and tells the person about the status

of his/her room. Then the reservationists takes details such as name, company, type of

room, number of people, date of arrival and departure, bill paying procedure, contact

number, name of the person calling and the special instructions if any. After this the

reservationists enters all these details in the computer. The computer is linked to the main

computer in credits department and reception. Later the reservationists categorizes

whether the guest is a v.i.p, v.v.i.p. etc.

The reservation forms are arranged date wise for the particular month and month

wise for the future months of the year. Everyday in the evening, the reservation assistant



does follow ups for the next day. This involves calling up the booker and reconfirming

the booking. After this he takes a point out of the next days arrival list and sends it to the

general manager, food and beverage manager and to room service. In this , arrivals of

v.i.p’s and v.v.i.p’s and special instructions are highlighted. This contains the details such

a type of room, departure date, name of the person making the booking and contact

number.

Guest Arrival

When a guests arrives The Beach Orchid Hotel, the bell boy goea to the porch, picks up the guest’s luggage, brings it to the bell desk, puts a hotel tag and waits for the

guests to finish the registration process. The guests takes the key from the reception and

gives it to the bellboy to carry the luggage. The bellboy acts as a lift attendant and escorts

the guests to its room. He opens it and explains the guests about the facilities and the

operation of switches in the room. He also gives necessary information about the hotel to

the guest.

Guest Departure

At the time of checkout, the guest gives a call to the bell desk and a bellboy is

send to the room to bring the luggage down. The boy checks for any loss of the guests

property in the room and in case any damage of property in the room. After all these the

bellboy locks the room and gets the luggage down to the belldesk and puts the hotel tag.

He makes a departure errand card and takes it to the reception along with the key. The

reception signs for the key when the guest clears their bills, the cashier signs the

departure errand card. Then the boy loads the luggages on the guest transportation if any.



Process of how food order is carried out.

Guests call the room service.

The order taker greets the guest and the guest places order and if possible the order taker does suggestive selling.

The order taker waits for the guest to put the phone receiver first and then the order taker puts the receiver down himself.

The order taker simultaneously feeds the guest order into the computer and a 4 copies print out is taken.

The Order taker gives one copy of kitchen out ticket (KOT) to the kitchen and rings tothe room service attendant.

He hands over the other 3 copies of the KOT to the room service attendant and explains

the order with the room number.

The Room service attendant goes through the order thoroughly and moves towards thekitchen for the food pick up.

The room service room attendant picks up the food, shows to the captain for approval andtakes the food to the guest’s room and serves it.

The order will be served to the guests within 45 minutes from the time of order.



House keeping Pantry

This is the store room for the house keeping department. here they keep the guests

staionaries, flower vases, guest toilet supplies, new pillows, mattress etc. the house

keeper goes to all the floors to take floor counts and qrites it on the store requisition slip

of the floors and brings it to the desk control and makes a consolidated stores requisition

and submit it to the executive house keeper for approval. Next day with the floor house

keepers the room boys take the stores to all the floors.Every month the store requisition is

made for the stores and after the executive housekeepers approval, it is send to different

companies for the items. The hotel has contract with different companies for different

items. For example, soaps are bought from lux, paste from close up and so on

Lost & Found Procedure

This procedure is only for guest’s possessions which are left in the room or any

other premises of the hotel. When such items are found by the staff of the housekeeping

department or any of the hotel staff, the finder brings the possession to the housekeeping

department for entry in the register. The register contains details such as name of the

finder, date, room number and the finder’s signature. All these details are written on a

slip and attached with the possession before keeping it in the lost and found cupboard. In

the end of every month, the security officer comes and checks how many possessions of

guests are left in the lost and found cupboard.



Engineering and Maintenance Department

The engineering and maintainence department is the department responsible for

maintainence and upkeep of all the furniture, fixtures, electrical equipments and other

electronic installations with in the hotel.

HIERARCHY

Chief Engineer

Supervisor

Engineering Assistance/Maintenance Personnel.

Engineering assistance and maintenance personnel consists of the following

personnel:

Air Conditioning Technician

Plumber

Electrician

TV operator

Carpenters

Masons

Painter



The engineering and maintenance department is also responsible for the supply of

hot and cold water to rooms, provide adequate lighting, fan and electricity round the

clock and also does the control of video and other various channels.

The engineering and maintenance department has also the equipment with

the departments itself:

1. Central Air Conditioning Plant

2. Hot water systems 24 hours, a day running in diesel.

3. Generators for a continuous current supply.



CHAPTER 6



CHAPTER 6

CONCLUSIONS

SWOT ANALYSIS

A SWOT analysis is a close look at a company’s strengths, weakness,

opportunities and threats in terms of important factors such as the economy, the product,

staff resources, competition, technology, legislation, consumer trends, environment, and

etc. It is a common tool used in organizational planning and strategy development. The

basic assumption of a SWOT Analysis is that organizations must align internal activities

with external realities to be successful.

Strengths and weakness are essentially internal to the organization and relate to

matters concerning resources and programs within the company whereas opportunities

and threats are external factors confronting a company such as new technologies,

competition etc. he four factors can be described as follows:

Strength: What an organization can do

Weakness: What an organization cannot do

Opportunities: Potential favorable conditions for an organization

Threats: Potential unfavorable conditions for an organization.



STRENGHTS WEAKNESSES

> Prime Location of the Hotel. >Intense competition from nearby hotels.

> Only Five Star Hotel in Kollam. > Domination of Cashew Industry

Owners.

> All Sea Facing Rooms. > Beach available near is dangerous

for swimming.

> Ownership and management is different. > Since ownership and management is

So there is less chance of beuracratism. Different, there are differences in

Opinion.

> Tie ups with corporates. > The Current Recession is having a

negative impact.

> Availability of Employees cheaply. > Attrition rate is very high.

OPPORTUNITIES THREATS

> Rising Income of the people. > Event Risk due to terror attacks.

>New Business Opportunities. > Increasing Competition

> Open Sky Benefits >Tsunami and other Natural calamities.



SUGGESTIONS & RECOMMENDATIONS

• The Hotel faces severe competition in the city hence it should develop a new

strategy not only to increase its customers but also to provide good services at

cheaper costs compared to its competitors.

• Try to inform more people about the hotel irrespective of income group.

• Should try to maintain more contacts with the corporates.

• The hotel should conduct events like DJ Party, food festival etc in order to attract

more customers.

• While recruiting hotel management students for training, it should be noted that

they should not come to direct contact with the customers.

• There should be a stipulated time shift for the staffs. The current scenario is that

employees are working fore more than 15 hours a day. This practice should be

changed.

• There should be some committee to protect the rights and duties of the employees

in the hotel.



CONCLUSION

The organization study conducted at “The Beach Orchid Hotel” enabled me to

get hands on experience of the overall functioning of an organization and to translate

academic knowledge into practical experience. The visits to various departments were

very informative and added to my awareness about the organizational atmosphere. Face

to face interviews with the hotel’s officials helped to understand the vital role played by

each department and their functioning. The Hospitality industries are very important in

providing needed employment and necessary treatment in many areas. With its rich

reserves, hi-technology, vast experience of its motivated employees and deep

commitment to quality, The Beach Orchid Hotel is all set to take a place of pride in the

twenty first century as the preferred source for the best hotels in the country.



BIBLIOGRAPHY

www.wikipedia.com

www.managementparadise.com

www.a2zmba.com

Hospitality and Travel Marketing- Alaistair M Morrison

Hotel Marketing- S.M. Jha

Marketing for Hospitality and Tourism- Philip Kotler, John Bowen & James

Makens.

Hotel & Food Service Marketing- Francis Buttle



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