Project on Organisational Study at Leela Kempinski Kovalam Beach Resort

August 7, 2017 | Author: kareemkhan170 | Category: Tourism, Airlines, Compensation And Benefits, Economic Growth, Low Cost Carrier
Share Embed Donate

Short Description

Download Project on Organisational Study at Leela Kempinski Kovalam Beach Resort...


An organizational study report on Leela Group of Hotels

Submitted in Partial fulfillment of the requirement for the award of the Degree of MASTER OF BUSINESS ADMINISTRATION 2007-2009 BY XXXXXXXXXX ENROLLMENT NUMBER: XXXXXXXXXX COURSE CODE: XXX Under the Guidance of Mr. xxxxxxxxxx From 02/11/08 To


DECLARATION I xxxxxxxxxx hereby declare that the project titled “An Organizational Study Report on Leela Group of Hotels”, is an original work done by me under the guidance of Mr. xxxxxxxxxx, Leela Kempinski Kovalam Beach Hotel, for the partial fulfillment of the award of the degree of Master of Business Administration 2007-2009. Hereby I declare that the project report has not been submitted to any institution or university for the award of any degree / diploma earlier.




Acknowledgement I humbly make use of this opportunity to thank all those who helped me for successful completion of my project work. I would like to thank all my faculties for their support and guidance which helped me a lot to finish my project successfully. I take this opportunity to convey my regards and gratitude to the following persons for their constant support to me. Above all I wish to thank the Almighty for the blessings showered on me for the completion of my project. Mr. xxxxxxxxxx – (Leela Kempinski-Kovalam Beach Resort) Mr. xxxxxxxxxx (Leela Kempinski-Kovalam Beach Resort) Mr. xxxxxxxxxx (Leela Kempinski-Kovalam Beach Resort) Mr. xxxxxxxxxx (Leela Kempinski-Kovalam) Mr. xxxxxxxxxx (Leela Kempinski-Kovalam) xxxxxxxxxx


CONTENTS Introduction to Tourism

Page Nos


Rise of Hospitality

5 - 22


History of Leela Group


Leela At a Glance






Kitchen/ Production, F&B Department

29 - 32


Housekeeping Department

32 - 35


Front Office Department

35 - 39


HR Department

40 - 42


Training Department

42 - 44


The Club

44 - 46


Finance Department

46 - 48


Sales & Marketing Department

48 - 51


Purchase Department

51 - 52


Engineering Department

53 - 54


Security Department

54 - 56



24 - 27



INTRODUCTION TO GLOBAL TOURISM INDUSTRY A few points are worth noting about the definition of the word “Tourism”. First, in common English parlance, “tourism” refers only to leisure activities. The WTO definition uses the word to mean all travel, for a number of possible purposes of which leisure is only one. Business trips when one is paid from the home country are included in this definition, however. Travel for the purpose of study is included; thus foreign students should be counted as tourists as long as they return to their home country at least once a year. Travel for medical, religious, and other purposes is also included.

Tourism is one of the largest industries worldwide, accounting for 10 percent of the world GDP ($7-8 trillion) and 10 percent of the US GDP ($1.2 trillion dollars) in the year 2007. For many countries, such as the Bahamas and other island economies, it is the main source of income and employment. About 240 million people worldwide are employed in travel and tourism. The U.N. World Tourism Organization states that tourism is one of the best ways for poor countries to earn foreign currency. Tourism is the second largest source of foreign dollars (after petroleum) for the world’s 40 poorest countries. Government and multilateral policies directly impact tourist activities. Government can encourage tourism through regulations, official statements, collaborations, and incentives across multiple governmental


bodies. The United Nations World Tourist Organization (UNWTO) serves as a global forum for tourism policy issues. The UNWTO focuses on helping developing countries with sustainable tourism policies and provides technical and financial assistance to countries seeking to attract foreign tourists and educate tourism specialists. Increased ease of travel and disposable income has lead to increased tourism around the world, especially to locations that were once remote and unreachable. There are actually some lead forces helping the industry to get faster growth on the global scale. Some factors for the burgeoning growth of the international tourism are as follows.

TOURISM GROWTH FACTORS A number of factors are responsible for the rapid growth and development of the tourism industry in the Asia Pacific region. These include the strong economic growth, increase in income, breakdown of political barriers, easing of travel restrictions, more affordability of air transport; liberalization policies form the national governments and focused marketing campaigns. These factors are expected to accelerate the growth of tourism over the next decade. 1. Economic Growth:

The rapid growth of the tourism industry is a

reflection of the booming and diversified economies. Economic growth has ranged between averages of 6% to 9% between 2000 and 2009 for some Asian countries, in contrast to 3% to 4% growth achieved by the rest of the world. Strong economic growth is attributed to a focus on market reforms,


export oriented industries, stable currencies, diversification of the economy, and massive injection of foreign capital. Billions of dollars are being poured into the tourism infrastructure to accommodate a burgeoning tourism industry. This has intensified trade, investment, and travel throughout the world. 2. Political Stability: In recent 60 years time, the World has become more or less politically stable especially after the Second World War II. The opening of national borders of all most all countries to both inbound and outbound travel, and the breakdown of political barriers, will provide tourists with opportunities to pursue their leisure interests. 3. Easing of Travel Restrictions: Historically, the demand for and freedom to travel increases when travel restrictions are lifted or eliminated. With strong demand for travel, a number of countries have lifted travel restrictions either as a whole or with certain minimal restrictions. The lifting of restrictions in late 1980’s contributed to a surge in the demand for outbound travel. 4. Affordability of Air Transport: Over the last 2 decades the air transport has witnessed tremendous developments. Since the cost for a travel by air has been on downward trajectory more and more people are able to opt foreign tour trips. This also led to the growth of multinational business enterprises. Competition among the airline companies to get maximum market share in respect of domestic and international air travel


has resulted in the decline of prices. This actually proved to be beneficial for the people as they can go anywhere at the most competitive fare. 5. Technology: Technological developments have significantly impacted the travel industry. Developments in large and more fuel efficient aircraft such as the Boeing 777, Boeing 747, and Airbus A340, Airbus A380 have lowered operating costs, increased airline seat capacity, and raised the comfort and safety of air travel. These aircraft facilitate travel over longer distances and fly non-stop over trans-Atlantic and Pacific routes. Lower operating costs, coupled with cheaper airfares, have reduced the cost of travel, thereby making air travel the dominant mode of travel across oceans. Technological Developments in the field of telecommunication also got its share of boosting the industry; with the Internet becoming more and more popular people either tourists or tourist service providers can reach each other without geographical barriers.


Tourism Industry during the recession and post recession periods During Recession Time: -International tourist arrivals for business, leisure and other purposes are estimated to have declined worldwide by 4% in 2009 to 880 million. This represents a slight improvement on the previous estimate as a result of the 2% upswing in the last quarter of 2009. In contrast, international tourist arrivals shrank by 10%, 7% and 2% in the first three quarters respectively. The global economic crisis aggravated by the uncertainty around the H1N1 pandemic turned 2009 into one of the toughest years for the tourism sector.

Europe ended 2009 down 6% after a very complicated first half (-10%). Destinations in Central, Eastern and Northern Europe were particularly badly hit, while results in Western, Southern and Mediterranean Europe were relatively better.

Asia and the Pacific Arrivals declined by 7% between January and June, the second half of 2009 saw 3% growth reflecting improved regional economic results and prospects.



The performance was more sluggish in the other sub-

regions, with the (H1N1) influenza outbreak exacerbating the impact of the economic crisis.


The Middle East:

6 % decline in the tourist arrivals in the first three

quarter of 2009. There was also a steep fall in the leisure spending of people in the region. •

Africa: - was a robust performer, with sub-Saharan destinations doing particularly well.

Post Recession Time:

UNWTO forecasts a growth in international

tourist arrivals of between 3% and 4% in 2010. The International Monetary Fund (IMF) has just recently stated that the global recovery is occurring "significantly"









assessment which already counted on a clear return of economic growth in 2010 (+3.1% worldwide, with stronger performance for emerging economies at +5.1%, alongside a more sluggish one for advanced economies at +1.3%). Asia is expected to continue showing the strongest rebound, while Europe and the Americas are likely to recover at a more moderate pace. Growth is expected to return to the Middle East while Africa will continue its positive trend benefiting from the extra boost provided by the 2010 FIFA World Cup in South Africa.


TOURISM FROM INDIAN OUTLOOK Tourism is the basic and most desirable human activity describing the praise and encouragement of all people and government.

Hotel industry is an essential part of tourism. The expansion of tourism is well inevitable bringing out development of the hotel industry. Hotel industry is closely linked with the tourism industry that it is responsible for about 50% of the Foreign exchange earning from tourism trade and enterprises. The rising volume of tourism influx brought into light, the shortage of hotels in important tourists Centers, keeping in view the changing standards in the international hotel keeping. The Indian industry has to make a number of improvements. It is not enough to have adequate hotel accommodations, it is equally necessary to have at various levels, low priced, moderately priced, high priced, and a few luxury hotels. Hotels may be categorized depending upon factors such as 1. Location 2. Categorization according to plan 3. Categorization according to number of rooms 4. Categorization by type of clientele 5. Categorization by length of stay of guest 6. Categorization by the facilities the hotel offers.


The devaluation of the Asian currencies, the Mumabi Terror Attack and followed by the global economic crisis had affected growth in the tourism industry. The situation is gradually moving back to normal with the tourist arrival figure marginally increasing. The industry is growing at a rate of 9% with the political and economic stability being more clearly visible, both tourist as well as business arrivals are likely to gather momentum in the remaining part of the year. The Indian hotel business focuses largely on foreign tourists with only 30% of the business coming from the domestic business and the leisure travelers.

The tourist arrivals in India are seasonal in nature, with the best season being from September to January followed by a steep fall till May. The period June to September gains momentum again. The slack season is generally used for renovation work and the period is characterized by discounts to attract clients. High capital expenditure acts as an entry barrier in the industry with the availability of prime land at economically viable rates being a major constraint. The gestation period is long and break even normally takes five to eight years to happen. Due to this the established players like Indian hotels, EIH Associated Hotels Limited, etc., have an advantage over foreign majors as they already have good establishments at prime locations.


The following table indicates the number of FTAs (Foreign Tourist Arrivals in India.

Foreign Tourists In India (Number)










































































































































_______ Total



GROWTH DRIVERS OF INDIAN TOURISM 1. Economic Affluence: The most important growth driver is the robust economic growth that has been witnessed in the country. India’s GDP has been growing at a rate of 6% since the liberalization of economy in 1991 and now advancing at a pace of over GDP 8.5% per annum (excluding the last one and half year from the mid of 2009). At 8.5% CAGR, India’s GDP would almost triple from US$ 1200 Bn to US$3500 Bn by 2023.

Currently, India is the 12th largest economy in the world in absolute terms and is expected to overtake most of the European nations in the next 15 to 20 years. It will eventually become the world’s 3rd or 4th largest economy by 2050. Despite the recent economic downturn, various industry sources still peg the economic growth at over 6%. India’s strong economic growth has caused the GDP per capita to increase rapidly over the past 5 to 10 years. At the current rate, the GDP per capita in 2013 would be double of what it was in 2003.

More and more families are expected to leave the deprived or aspirers category (annual household income less than US$ 4200) and join India’s burgeoning middle class. By 2025, the Indian middle class is expected to constitute 46% of the Indian population. Subsequently, discretionary spends would be going up and this bodes well for the tourism sector.


2. Low-Cost Carriers: The tourism industry has been supported by the advent of Low-Cost Carriers (LCC) in the airline space. These low-cost carriers have brought down the cost of travel and boosted the growth of domestic air travel immensely. The advent of low-cost airlines which cut down on expensive customary in-flight passenger services has opened-up air travel for the middle class. It is accounted for the increasing share of LCC from 33% to 47% between 2006 and 2008. The advent of LCC has spurred domestic air travel to grow from 11 Million travelers to close to 36 Million travelers in the last decade. Operational airports in the country have gone up from close to 40 airports in 2004 to 81 airports at present. The airports of several metros are undergoing renovation and re-positioning. Airline tickets, tour packages are all set to go cheaper with the 2% reduction in service tax. State-run oil companies have slashed Aviation Turbine Fuel (ATF) prices by 7%, the 11th reduction since Sep last year.

The salient features of this package would be to cut airport charges for a limited period by 50 %, to remove the 8% excise duty on ATF and to reduce the charges which the airport operator charges from the oil companies, leading to enhanced performance. With the Airports Authority of India (AAI) installing systems like Standard Instrument Departure (SID) and Star Terminal Arrival Routes (STAR) for the first time in India at the Mumbai airport, air travel within the country is


likely to become faster and more convenient. In addition, the new installation is expected to help airlines save on fuel.

3. Upbeat support of India Government: In September 2002, the tourism department unveiled a new campaign called ‘Incredible India’ to promote Indian tourism globally. The first phase of the campaign, for a period of three months, was jointly funded by the Government of India and Experience India Society, an association of travel agents in India. The campaign that focused on the Himalayas, wildlife, yoga, and ayurveda, was widely promoted in the print media, television, and the internet. The television campaign was telecasted on CNN, BBC, and other popular channels across the world.

The government has identified 37 destinations for tourism development and over the last two years, over 600 projects in 300 tourist destinations have been developed with an investment of US$ 20 Million. Central financial assistance of US$ 1 Million and US$ 2 Million has been raised to US$ 5 Million and US$ 10 Million respectively for major destinations depending on tourist traffic. Through many innovative branding exercises, the government has been trying to promote tourism and build awareness about India as a tourist destination – both in the domestic market and abroad. International events such as Commonwealth Games in 2010 are also expected to increase arrivals in India.


It is recorded that the inbound traffic was doubled to 10 Million visitors in the wake of the Commonwealth Games in 2010. To motivate travel agents to promote India and to familiarize them with new tourism products, the Ministry of Tourism would provide financial assistance for participation in travel marts or annual conventions. Through the India Tourism Initiative, the government plans to lease out heritage monuments which would attract tourists from all across the globe.

4. Medical Tourism & Spas India has originated as one of the most important hubs for medical tourism. Many people from the developed countries come to India for the rejuvenation promised by yoga and ayurvedic massage therapy as well as for high-end surgeries like cardiac bypass surgery or knee/hip replacement. Residents are equally patronizing alternative medicine therapies and undertaking travel to specialist facilities across the country. Medical tourism refers to the movement of the people to the country providing the service for diagnosis and treatment. The industry has been in the growth trajectory during the last one decade since the people going out of their home country for medical treatments is rising substantially and is expected to grow by a whopping rate of 20-35 % during the next 15 years time. Considering the growth the current market size of the industry is estimated to be $ 100 billion. Hence it is considered as the yet –to – betapped industry for the countries like India – since they have the low cost price advantage.


FTAs In India (In Millions) 8 7 6 5 4 3 2 1 0

97 98 99 00 01 02 03 04 05 06 07 08 09 10


ORIGIN OF HOTEL INDUSTRY: The concept of hotels is rather old. It takes back to 6 century. B.C where ventures of husbands and wives of that age introduced the concept of hotels on a smallscale basis. These units were called ‘inn’. Here the wife and the daughter looked after the food and entertainment of the guest while the husbands did the financial and running about jobs. Huge hall was provided to the traveler where he could make his own bed and rest. Inns prevailed for a few hundred years. The change in this industry began to occur when industrial revolution took place in England and gave birth to new ideas, in the advent of Inn keeping, more so the development in means of communication systems gave this industry a boost. Starting with the invention of steams engines and ships to the railways and the airways. People began to feel the need to travel and have a better social life. Clientele from Business trips and political trips was also on an increase. These causes increased the need and demand of hotels. The lead in hotel keeping was taken by the emerging nations of Europe, especially Switzerland. The birth of the hotel industry actually took place in England. The first hotel was built in 1794, in New York, and was called the City Hotel. This lead to specialization in the hotel section and some of the finest hotels were built in this era. In the 20th century this industry rose to incredible highs and led to the establishment of some of the world’s finest chains of hotels. The pioneer in popularizing the hotel operation was Mr.E.M. Statler.


THE HISTORY AND DEVELOPMENT OF THE INDIAN HOTEL INDUSTRY Though India is a late comer in the modern tourism and hotel industry, the concept of travel and halting facilities on the way is not all together a new idea for Indians. Even in the 16th and 17 centuries there existed innumerable number of dharmashalas, sarais (inns) and taverns in India. The credit for introducing modern hotels in India goes to the British. They launched hotel projects in India for their own use, until about 80 to 90 years ago, except the Taj Mahal in Bombay. Residential hotels of the western type are of recent origin in India. Pallonjee Pertonjee opened the British hotel; the first western type hotel in 1840 in Bombay, the twentieth century saw several development in the Indian Hotel Industry. Several enterprising Entrepreneurs entered the field. The Hotel Industry comprises a major part of the Tourism industry. Historically viewed as an industry providing a luxury service valuable to the economy only as a foreign exchange earner, the industry today contributes directly to employment (directly employing around 0.15 million people), and indirectly facilitates tourism and commerce. Prior to the 1980s, the Indian hotel industry was a slow-growing industry, consisting primarily of relatively static, single-hotel companies. However, the Asiad, held in New Delhi in 1982, and the subsequent partial liberalization of the Indian economy generated tourism interest in India, with significant benefits


accruing to the hotel and tourism sector, in terms of improved demand patterns. Growth in demand for hotels was particularly high during the early 1990s following the initiatives taken to liberalize the Indian economy in FY1991, as per the recommendations of the International Monetary Fund (IMF). The euphoria of the early1990s prompted major chains, new entrants and international chains to chalk out ambitious capacity additions, especially in the metropolitan cities. However, most of these efforts were directed towards the business travelers and foreign clientele. In recent years, the hotels sector has grown at a faster rate than GDP. As a result, the share of hotels & restaurants in GDP at current prices has increased from 1.2per cent in FY2000to 1.5per cent in FY2005. In constant (1999-2000) prices, the GDP from hotels and restaurants has increased from Rs. 222.65 billion in FY2000 to Rs. 335.49 billion in FY2005. As a result, the share of hotels and restaurants in total GDP at constant prices has increased from 1.24per cent in FY2000 to 1.40per cent in FY2005.

Star Category No. of Hotels No. of Rooms Star Category

No Of Hotels

No. of Rooms

5-Star Deluxe



5-Star 4-Star

92 132

11332 9401

3-Star 2-Star

704 587

31039 19031







To be classified








Taj Group of Hotels


The Ritz Chain


The Oberoi Group of Hotels


Leela Group Hotel and Palaces


Palace Hotels


Air India and the Hotel Cooperation of India


ITC Group


Holiday Inn


Hyatt Regency


Marriott’s Group Hotels


Overview: Established in the year 1957 by the group’s founding Chairman Capt. C.P. Krishnan Nair having head-quartered in Mumbai.

Background: Behind every success of every enterprising institution lies the commitment of a true visionary. In the case of Leela Group the man is Captain C.P. Krishnan Nair. Born in 1923 at Cannanore, North malabar-Kerla, Capt.C.P.Krishnan Nair received his early education at the local Raja’s High School and Govt. Muslim College, Madras. During 1940-42, he had a brief stint as a freedom fighter and later on as a Civilian Officer for two years. He resigned from his job in the Army to work for the familiarization of his native handloom weavers in North Malabar. He took up the cause of handloom Weavers Association and was responsible for the scientific production and modern marketing methods of the handloom cloth. He pioneered the marketing of “Bleeding Madras” and the “Gauz Fabric” which became a fashion runs away in the international markets of U.S.A. Europe and


Japan in the 60’ and 70’s.He later set up a unit to produce cotton laces in India with Scottish collaboration. “The Leela lace’ is now the premier export house of the country. In the early 70’s, the company launched its ready-made garments unit and is today, India’s premier export house. Since the 80’s, the client list of Leela Lace reads like the veritable who’s who of the American fashion industry : The Gap, Liz Claiborne, Polo Jeans, Tommy Hilfiger, JC Penney, Macy’s, Van Heusen, Walmart….. Mr. Dinesh Nair, the present Managing Director of Leela Lace Ltd., took over from his father Capt. C.P. Krishnan Nair, in the early 80’s. After consolidating the company’s position, he shifted his focus to the American woven sportswear market with a continuous emphasis on fast turnaround and big volumes. Rapid growth has been the result, and has made Leela Lace the largest garment exporter from India to the USA. Today Leela Lace has 20 factories with state of the art equipment – 10 in Bangalore, 5 in Chennai and 5 in Mumbai, with an annual turnover of US$ 75 million. It is Leela Lace Ltd., the parent company, which is the promoter of Hotel Leela Venture Ltd.


HOTEL LEELA VENTURE LTD. Capt. Krishnan Nair served in the Indian National Army under Netaji Subhash Chandra Bose. Subsequently, he helped his father-in-law in the latter's garment export business. In 1957, he was part of a delegation to West Germany, which involved visits to Frankfurt, Cologne, Munich and Hamburg. Here he realized the need for a luxury hotel chain in India that could measure up to international standards. Eventually, in 1988, he launched his first hotel in Mumbai as Hotel Leela. Incorporated in 1981 to set up and operate 5-star hotels, Hotel Leela Venture entered into a collaboration with Penta Hotels, UK, which was subsequently transferred to Kempinski Hotels, a European chain of 5-star deluxe hotels, owned by Lufthansa, the German airline. The company entered into collaboration agreement with Penta Hotels Ltd (Penta) for a period of 10 years for sales, marketing & technical know-how. The company set up its first 5-star deluxe hotel, Leela Penta, in Bombay in 1986. It was renamed Leela Kempinski in 1988, following the change in its marketing and sales tie-up. The hotel entered into a marketing alliance with Germany’s Kempinski group, which has close to a hundred years of rich management expertise in the hospitality industry. When Lufthansa and British Airways became regular customers, Nair had Kempinski to thank. That relationship has continued to flourish and a flurry of projects has come up across the land. Second in line was


the Leela Goa, followed by the Leela Palace in Bangalore and the Leela Beach Resort in Thiruvananthapuram. The Leela Kempinski Mumbai and The Leela Kempinski Goa are two of the best hotels in India, and have also won considerable international acclaim. Recently in 2001 Capt. Nair fulfilled his longstanding dream of constructing a palace hotel in the garden city of Bangalore. The Leela Palace Kempinski Bangalore is built in art deco style recreating the grandeur of The Mysore Maharajas Palace. It is set amidst 8 acres of landscaped garden and waterfalls. It is a palace with the heart of a modern hotel. Its 254 rooms are opulently furnished and are befitting royalty. The newest addition The Leela Kovalam is Kerala’s largest resort, built on a rock face cradled between two wide sweeping beaches with a stunning view of the famous Kovalam coastline. New projects will be commissioned at Gurgaon, Udaipur and Chennai this year. Other new properties have been planned for New Delhi, Jaipur, Agra, Hyderabad and Pune in the coming years. Achieving these levels of excellence has been the result of a three pronged business strategy, best described in the words of Capt. Nair. Fundamental to our business is the all pervasive Indian tradition of hospitality. Secondly, we honour the cultural heritage of India. Lastly, we operate on the basis of world class technology, backed up fully by the commitment of the staff.


LEELA AT A GLANCE Leela Kempinski Kovalam Beach Resort,

Leela Kempinski Palace-Bangalore,

Leela Kempinski-Goa,

Leela Kempinski Palace-Udaipur,

Leela Kempinski-Mumbai,

Leela Kempinski-New Delhi,

Leela Kempinski-Gurgaon,

Segmentation of different departments at Leela Kovalam There are more than 10 different departments are functioning in the traditional and executive levels at the management of the hotel. These departments have diverse portfolios and responsibilities headed by a person in charge of the entire operations undertaken within the department. He may be a manger/supervisor of the respective department. The reason why hotels are usually organized into functional blocks, with departments grouped according to the particular work/activity that particular


department is actively engrossed. In most scenarios a hotel industry is divided up into 5 different departments such as rooms, Food and Beverages (usually this department is called as by its short form as F&B), accounting, sales and Human Resource/HR. Each of these departments has their own heads of the operations and they should have to report directly to the General Manager of the hotel regarding the performance of their respective departments. These departments are sub-divided into various other smaller organizational units. These sub-divisions represent refinement of the work performed and the knowledge and the skills of the people in each subunit. As organizations grow large in respect of its size and operations it carries out most hotels tend to segment its operations to various departments with food preparation and food servicing as separate entities. Since preparing food and serving it to the guest are usually of two different arts; both the processes are done through different and separate works. Thus forming departments along functional line is the most common method in a hotel organisation. The department engaged in the preparation of food is called as Production Department while the division involved in the art of serving the prepared food to the guests in an eye-catchy and sumptuous manner is known as the Servicing Department. Food Production Department: - Food production deals with the preparations of food items. It basically engaged in preparing those dish, which are ordered by the


guest and afterwards is catered by the F&B department. Cuisine like Indian, Continental, Thai, Italian, Konkani (Coastal Sea Food), South Indian, Chinese, Mexican, etc. Different Chefs are appointed for the specialty cuisine. Marketing a celebrity chef as a primary component of a hotel may yield a competitive advantage among that specific hotel’s competitive set.

Food Servicing Department: - Food service deals with the process of the delivery of the prepared food items onto the end customers who ordered it. Service department should also lay special emphasis on the importance of getting the orders delivered with an eye candy look and appearance.

Food & Beverages Department: - F & B deals mainly with food and beverage service allied activities. Different divisions are there in F & B like Restaurants, Specialty Restaurants, Coffee Shop (24 hrs.), Bar, Banquets, Room service etc. Apart from that they have Utility services (Cleaning). A food and beverage department in a hotel is usually guided by an F&B Director followed by an F& B manager. A Food and Beverage Manager in a hotel should always by ready too undertake a variety tasks each and every day. Some of the main important functions endowed on this specific department in a hotel include, a) Provide the highest quality in food, beverage and service in all the food and beverage outlets inside the hotel. b) Provide all guests with the highest quality of food and beverage experience by working as a team with all the food and beverage outlets ensuring prompt,


courteous, and professional services resulting in increasing employee morale and decreasing employee turn over rates. c) Maintain existing programs and develop new programs ensuring the highest quality of food, beverage and service offered. Arrange daily talks with staff and managers, reviewing plate-ups in different outlets. d) Maintain a high quality hotel image through effective house keeping and sanitation in the F&B operations. e) Meet all the needs and the expectations of the guest by ensuring proper service standards, providing quality food and beverages, and managing all aspects of operation, resulting in an increasing Guest Satisfaction Index (GSI) and decreasing guest complaints. f) Maintain top-notch security to all the F&B properties and inventories. g) Maintain knowledge of national and international competition and industry trends. Includes changing menus based on seasonality, product availability, and input from staff. h) Seek profitability in all the F&B outlets by decreasing the operational costs and by increasing the sales volumes of different menus and beverage items.


The following chart represents the hierarchical structure of the division of F&B department in a 5-star hotel.





HOUSE KEEPING DEPARTMENT: The House Keeping Department is another important department in the hospitality industry. Housekeeping Department is responsible for cleaning the hotel’s guest rooms and public areas. Housekeeping department usually has the largest staff, consisting of an assistant housekeeper, room attendants, room inspectors, a house person crew, linen room attendants and personnel in charge of employee uniforms. They may also have their own laundry and valet service. Hotels with laundry and valet equipment may use it only for the hotel uniforms


and linens and send guest clothing to an outside service where it can be handled with specialized equipment. Basically the main responsibility of the housekeeping department is to ensure that the guest rooms and the entire public area within the hotel are neat and clean all the time. But the cleaning duty of the kitchen area is done by Kitchen steward. Cleaning of the lawn area of the hotel is also set apart from the housekeeping department while the same is carried out by the gardening division of the hotel. The person who is made in charge of the entire operations being performed in this specific department is Housekeeping Executive. The Executive Housekeeper is responsible for the total cleanliness and the, maintenance and the aesthetic upkeep of the hotel. This end is achieved with the resources made available to his/her of manpower, materials, machines, money, space and time. The position of the Executive Housekeeper is considered to be one of the most important positions in the hotels since it carries tremendous responsibility for the proper cleanliness and the aesthetic fabric of facilities in order that they are sanitary, desirable and in saleable condition. The good Housekeeper, because of the need to co=operate with many other department heads, must posses a high degree of tact as well as good organizing ability. The Assistant Housekeeper is the deputy to the Executive Housekeeper of a hotel. He/She manages the resources given by the executive housekeeper to achieve the common objectives of cleanliness, maintenance and attractiveness in a given


period of time. Assistant Housekeeper’s accountability normally ends with the completion of the shift. The position of a Housekeeping supervisor is normally occupied by a competent, personable individual who knows his/her employees well, and is, above all, able to meet the public. This requirement is so important as far as a hotel is concerned since the supervisors are actually representatives of the Executive House keeper in the areas assigned to them. House keeping draws special mention since a hotel survives on the sale of rooms, food and beverage and other minor operating services such as laundry, spa, clubs etc. Of these, the sale of rooms constitutes a minimum of 50 %. In other words the largest margin of profit comes from room sales because a room, once made, can be sold over and over again. A good hotel operation ensures optimum room sales to being in maximum profit. The room sale is dependant on, apart from several other things, the quality of the room décor, room facilities, and cleanliness of the room and how safe it is.


The following chart shows the hierarchy of the housekeeping department in the hotel:












Front Office Department: - The front office is the command post for processing reservations, registering guests, settling guest accounts (cashiering), and checking out guests. Front desk agents also handle the distribution of guestroom keys and mail, messages or other information for guests. The most visible part of the front office area is of course the front desk. The front desk can be a counter or, in some luxury hotels, an actual desk where a guest can sit down and register. 34

The Front Office may be regarded as the show window of the hotel and hence must be well designed in the first place and maintained in a well organized and orderly manner. Regardless of how a hotel is organized into, the front office is always an essential focal point. Front Office is the name given to all the functional units of a hotel which are situated in the front portion of the hotel, that is, the lobby – is the place where the guests are received, provided information on the products and services offered in the hotel, the luggage of the guests are handled, the accounts of the guest are settled at their departure, and the guest’s problems, complaints and suggestions are looked after. The front desk is the link between the guest and the hotel and represents the hotel to the guest. And is a liaison between the hotel management and the coordination of all the guest services. It serves as a main channel of both way communications i.e. from hotel to the guest and guest to the hotel. Hotel terminology includes terms such as front-of the-house and back-of-thehouse. This front-of-the house term includes those portions of the hotel with which the guests come in direct contact with during the period of their stay in the hotel, such as building exterior, lobby, front desk, guest rooms, function rooms etc. The person who is regarded as the head of the operation of the front-office desk is the Front-Office Manger.

The nature of the front office job is such that he is

almost always crowded with various jobs. He should be able to match job needs to time available for effective and efficient performance. Another responsibility of the 35

front office manager is making daily plan of action by outlining work for the next day at the end of each day. It includes listing all activities for the next day under ABC category as per the urgency and importance of the job. It is also important to make flexible plans to fit in emergencies. The assistant front-office manager’s main duty is aiding the front office manager in supervising and coordinating the day-to-day operations of the front-office staff and resolves internal problems. He/She co-ordinates staffing of mail and information and reservation clerks with their supervisors. The AM-front office should also be adept in dealing with problems arising from guest’s complaints and reservation and room assignment activities. He should also be responsible for any miscellaneous duties assigned by the front office manager. Another important position at the front desk of the hotel is done by the reception assistant. The friendly welcome given by the receptionist to a guest changes an impersonal hotel building in to a friendly and homely place and his unfriendly, hostile and indifferent attitude may convert the guests experience in to an unpleasant and uncomfortable stay. If the front office is the hub of the hotel then the receptionist can be aptly called as the person ‘who keeps the hotel world moving’. The reception assistant should be well informed of daily room availability status, and also he should have detailed information regarding arrivals, their room requirements and expected departures of the guests. The position of the reservation assistant is also important at the front-office department of the hotel since the hotel’s good image can be maintained among the 36

guests only if all the needs of the guests are taken care of, especially the guest’s requirements in terms of his lodging. The main function of the reservation assistant is to handle all the reservations courteously and promptly over telephone, by e-mail, fax etc. He should make proper updating in the reservation register and records in order to have updated inventory of room availability. The reservation assistant may also carry out amendments and cancellations intelligently and accurately. To keep the availability status chart updated. Check out reservation stationary and keep a satisfactory par stock of the same. Type out advance reservation slips and maintains reservation racks and correspondence files and in case of computers updates information in computers.


The following chart shows in detail the common hierarchy of the structure of the front-office staff in 5-star deluxe hotels.

















Human Resource Department: - Human resources is exactly meant as ‘resources for human – wi8thin the workplace’. Its main objective is to meet the organizational needs of the company it represents and the needs of the people hired by that company for running its operations. Every organisation needs its stack of manpower to carry out its day-to-day operations. No establishment cannot operate without being involved in some kind of transactions with the people in general. Hence HR department is drawn with special emphasis as this 38

department is responsibly for all activities concerning to the employees of an organisation. In short HR department is the hub of the organisation serving as liaison between the organisation and its employees. On the basis of the size of the company the HR department is usually called as the Personnel department in medium–sized establishments, with a limited number of managerial staff and is guided by a Personnel Manager. For larger and more complex organizations with hundreds of departments and divisions, the task of managing the workforce as a whole is much more demanding and intricate. Some of the most important responsibilities to be carried out by the HR department include (1) Employee recruitment & Selection, (2) Employee compensation benefits, (3) Employee relations and (4) Policy formulation. As a company and the requirements of a position evolve, a company needs to take certain measures to ensure that the highly skilled workforce is in place. It is actually the responsibility of the HR department to oversee the skills development of the company’s workforce. After formulating the requirements criteria to fill up a vacant post in the organisation, the HR department of the company will call for application for the specific post from the eligible candidates by way of advertising on news papers, televisions, mobile phones etc. Employee compensation packages also come under the prerogative of the HR department. This covers salaries, bonuses, vacation pay, sick leave pay, Workers' Compensation, and insurance policies such as medical, dental, life. The Human Resources Department is


responsible for developing and administering a benefits compensation system that serves as an incentive to ensure the recruitment and keep hold of of top talent that will stay on with the company. With the increased rise in unethical practices and misbehaviors taking place in today's workplace such as age, gender, race, and religion discrimination and sexual harassment, there needs to be mandatory compliance with governing rules and regulations to ensure fair treatment of employees. In short, employees need to know they have a place to turn when a supervisor abuses his or her authority in anyway. Regardless of the organization's size, company policies and procedures must be established to ensure order in the workplace. These policies and procedures are put in place to provide each employee with an understanding of what is expected of them. Similarly, these policies and procedural guidelines will assist hiring managers in evaluating their employee's performance. These policies can be established company-wide or used to define each department's function. It is Human Resource's responsibility to collaborate with department managers on the formulation of these policies and regulations to ensure a cohesive organization. All new recruits to the Hotel Leela Kempinski-Kovalam beach hotel are inducted through an orientation program of 2 days duration called BLOSSOM (Brand Leela Service Organisation Module). All employees at the hotel are mandatorily required to abide by the services standards set forth by the Leela


Group of Companies. This set of services standards is known as BLISS (Brand Leela Integrated Services Standards).

The following is the hierarchy of the positions in the HR department. HR Head Assistant HR Manager

HR Executive

HR Co-coordinator

Training Department: Training is the process that involves an expert working with learners to transfer to them certain areas of knowledge or skills to improve in their current jobs. Training Department is considered to be a stand-by unit of the HR department. The primary function of this department is to empower and equip new recruits to the hotel to such a level where they can deliver their maximum to the company’s growth. All the activities undertaken in this department is guided and supervised by the Training Manager. He is responsible for conducting training programmes to the new recruits inducted into the existing workforce of the company. The spectrum of the training manager’s responsibility also includes making each new recruit aware of what his duty is? How he is to do his duty? Etc.


In short, it is the function of the training manager to make the new workforce of the company learned of what is exactly expected of them, and on what degree. Training is usually given to the employees on the following grounds as and when it demands.

I. II.

When a performance appraisal indicates performance improvement is needed To "benchmark" the status of improvement so far in a performance improvement effort


As part of an overall professional development program


As part of succession planning to help an employee be eligible for a planned change in role in the organization

V. VI.

To "pilot", or test, the operation of a new performance management system To train about a specific topic

Several benefits can be reaped out of rendering proper training programmes.

I. II.

Increased job satisfaction and morale among employees Increased employee motivation


Increased efficiencies in processes, resulting in financial gain


Increased capacity to adopt new technologies and methods


Increased innovation in strategies and products Reduced employee turnover Enhanced company image, e.g., conducting ethics training


Employee training programs provide focused training to a number of employees either on a one-time or recurring basis. Programs can be developed in-house or employees can attend more generic programs, e.g., at a local university, college or training center. Programs are conducted for a variety of topics, e.g., training about communications, computer skills, customer service, quality initiatives, safety, diversity training, etc.

The Club: - It is built to showcase the vision of a “hotel within a hotel”; The Club at every Leela Palaces, Hotels and Resorts property is actually the epitome of a luxury hotel within a luxury hotel. And the Leela Kempinski Kovalam Beach, Kerala is no exception to that rule. The Club offers many exclusive delights to its guests. In fact, the guests so close to the restless Arabian Sea that the pounding of the waves on the rocks below acts as the perfect lullaby. Guests at The Club also enjoy services like in-room entertainment, a minibar, a writing desk overlooking the sea, airport transfers and high tea in the lounge, to mention a few services. The guests can also avail a24 hour butler to help them with packing, food and drink of their choice and travel and ticketing arrangements. All the operations of the club are handled and guided by the Club Manager who is responsible for all the customer relations affairs within the club. In fact the guests in the club have to experience more luxury in terms of amenities and facilities


offered. They have everything (clubs, pubs, restaurants, spa etc) as separate for themselves, means that those facilities within the club can only be availed by the club-inmates. Those staying outside of the club cannot use those within the club. That is why the club concept at Leela Hotels is defined as a ‘Hotel within the Hotel’. Some of the facilities and offerings at the club are


Arrival and departure transfers from the Airport by luxury Nissan X Trail Cars.


Round the clock Butler Service


Breakfast with the option of in room dining or at the Café


Selection of movies and music


Complementary soft beverages, tea/coffee in the lounge


Hi - Tea at the lounge from 4:00 to 5.30 pm everyday


Complementary Pressing Service


Exclusive gymnasium, international Spa and Infinity edged swimming pool overlooking the sea


Complementary internet access in the lounge


I POD dock on request


Linear, minimalistic design – contemporary old world luxury at the same time. Each room features state of the art LCD flat screen television, DVD player (with choice of movies and music), wireless internet access, twin headed massage shower heads, and electronic safe.



Stunning sea rimmed infinity swimming pool.


Ocean deck with sunset views

Finance Department: - A hotel’s accounting department is keeping track of the many business transactions that occur in the hotel. The accounting department does more tan simply keep the books. Financial management is perhaps a more appropriate description of what the accounting department does. Whereas the control department is concerned with cost control guidelines by way of reducing in investment, reduction in operating cost, control of food service cost, control of beverage cost, lobour cost control etc. In most hotels the person in charge of the finance department of the hotel is called the Chief Financial Officer. Usually he is addresses by the short-form of his designation











Controller/Manager ranks among the top two or three decision makers in the hotel hierarchy. No organisation can survive without a very strong financial vigor. The finance controller is responsible for presenting a Financial and budgetary programs which can strengthen management’s control of hotel’s operating expenses and help determine the profitability of the property. Specifically forecasting gives owners a projected level of sales, while budget alert owners and operators alike to significant expenditures that are on the horizon or predictable shortfalls in revenues. Used together, forecast and budgets can provide a bench-


mark for sales intensive programs, executive-compensation bonuses, incentive based management fees and capital expenditure. The administration and department of accounting and finance coordinate management and staff functions. This includes extensive contact with our shareholders, other partners. The department of accounting and finance is responsible for accounting, payroll, budgets and cash flow management. The department of Information Technology (IT) is also managed by the Finance department in most hotels.


The following shown chart is the common hierarchy of the positions in the Finance Department in 5 star hotels. But it cannot be guaranteed that the same structure is followed by all the 5 star hotels. It may depend upon the size and the scale of operations of the respective hotels.















SALES AND MARKETING Marketing is the study and management of the exchange process. It involves the things that the property will do to select a target market and stimulate or alter that market demand for the property services. It consists with research, action, strategies advertising, publicity, & sales and promotion. Sales consist of direct efforts to sell the property by personal sales, calls, telecommunication & mailings. 47

Marketing and sales division can be varied with the size, type, and budget of the hotel to hotel. Small hotel only have one person who is handling all the sales activities related to the hotel business. But large hotel have organized sales and marketing division with no of key personnel.

A sales department is particularly very essential in large hotels and those with convention and banquet facilities. The General manger participates actively in this area for and basic reason. First sales and their development is a long-range activity of the hotel and the second sales policy of the hotel interwoven with the image of the hotel has in the eyes of public and GM wishes to enhance that images. This department may have Sales. Manager who assists the GM on sales calls. The GM and Sales Manager prepare a budget for the year sale of rooms and the conference hall. They try and achieve the budget by the end of the year. This is done with a lot of planning and research. This would be achieved by a contract with one or more travel agents in and outside the town. And for selling the conference hall the sales team should contact various companies and other business firms.

The main function of this department is to increase the sales volumes of the different services offered in the hotel, be in terms of rooms, food, beverages, clubs, restaurants, spa etc. Usually the tools adopted by the department to make the guests accustomed to different services and offerings in the hotels


are as by (1) Correspondence (2) Personal contact (3) mailings (4) Fax etc. The other core areas of its consideration are as follows,

Conduct a market Audit.

Analysis of market competition.

Market place analysis.

Formulation of new schemes and niche offerings.

Selection of profitable market segments.

Positioning the property.

Establishing the objectives and the action plan.

Monitoring and evaluating the market plan.

Restructure the market plan, if needed.

Implement the plan as it is demanded.



Associate Head of Sales

Sales Executives

Sales coordinators

Purchase Department: - While operating a hotel is supposed to be a difficult task, managing the entire procurement process (for such a unit) is even more so. The purchase department handles the task of procurement yet all departments play a crucial role in it. That said technology ensures that inter-departmental activities takes place flawlessly. Although purchase has now become dependent on technology for managing inventories and order status, it was originally a manual job. From selection of products to deciding on a vendor, this department rests on the human ability of


judgment. However technology is now making the processes related to other departments easier by streamlining all activities.

Purchase is about procuring products in large quantities for the stores catering to various department needs. In this, various operational tools bridge the relationship between the purchase department and stores, fulfilling the requisites of all departments. At LEELA the department is responsible for the procurement of all the perishable commodities from the local markets such as those in Trivandrum and Kochi. Rare brands of beverages are brought from Delhi or Chennai. While the common ones are procured from Kerala State Beverages Corporation (KSBC). The stipulated time of working hours for the purchase departments is from 9AM TO 5 PM. Purchase Manager is the person who is in full control of the entire operations of the department. The hierarchy of the Purchase Department is as follows General Manager

Purchase Manager

Purchase Executive

Purchase Assistant

Purchase Driver


Engineering Department: -

The energy crisis throughout the world has

given a great importance to the engineering department of a hotel. This department provides on the day-to-day basis the utility services, electricity, hot water, steams, air-conditioning and other services and is responsible for repair and maintenance of the equipment, furniture and fixtures in the hotel. The engineering department has an important role in satisfying the guest- demand and helping to maintain the profit level of the hotel. The cleaning, up-keep, repair, replacement, installation and maintenance of property and its furnishing, machinery








Engineering/Maintenance and the Housekeeping Department.

The person in charge of this department is the chief-engineer. It is the responsibility of the engineering department to provide the hotel with electrical service that meets the needs of individual departments and the needs of guests.

Refrigeration, food production equipment, and computer systems are examples of other building system functions for which the engineering department may be responsible for repairing, maintaining, replacing, or managing. While the maintenance of many of these systems may be contracted to outside agencies such as the supplier, the engineering department nonetheless is the first line of defense in keeping them operating efficiently.


In most modern hotels, the installation and service of elevator systems is generally the province of the elevator manufacturer, and hotels typically have extended maintenance agreements for the elevators. Most engineering departments, however, closely monitor the operation of the elevator systems. In modern highrise hotels with high speed elevator service, the slightest problem with that service should be quickly and easily identified and reported to the contractors. It is generally the responsibility of the engineering department to monitor these services and their contracts closely and carefully. The










engineering division in hotels:









Security Department: - The security of guests, employees, personal property and the hotel itself is an overriding concern for today’s hoteliers. In the past, most security precautions concentrated on the prevention of theft from guests and the hotel. However, today such violent crimes as murder and rape have become a problem for some hotels. Unfortunately, crime rates in most major’s cities are rising. Hence today security department also concentrate on these additional criminal activities too.

The main position in the security department is of the Assistant Security Manager. The department includes the fire and safety officer and the duty guards. The primary function of the security department is to provide property surveillance and protection to the guest. The latter is more important for the security department in the Leela Hotel.

In the hotel there are two variants of security staff working round the clock in different shifts. First is the direct security staff of the Leela hotel working in three different shift of 8 hour duration. Second is the temporary staff from a security agency to provide surveillance to the entire property of the hotel as it is spread over an area of more than 60 acres.

Considering flawless security to the guests, all the guest rooms of the hotel are installed with spring glass and smoke detectors and automatic alarm system. There is a central security office working inside the hotel with all the modern fire


fighting equipments such as fire extinguishers, dry powder, and other fire dousing facilities.

As a part of the security provision both to the hotel’s property and the guests the entire geographical area of the hotel is divided in to 3 portions such as Beach View Point, Tide point and the Club – these three points are all together known as the ‘assembly point’ . The most common methods adopted by the fire and safety wing of the hotel (it came under the security department) are liquid carbon dioxide, dry powder etc. The security control post of the hotel will be functioning on 24 x 7 with office secretary, night and day supervisor, and security officer.

The security setup at the hotel is faultless since the hotel cannot compromise on the safety of its valuable guests. All the activities of the security department is controlled and supervised by the main security officer. He is also responsible for conducting training programmes on security and fire fighting to the security staff of the hotel.


The following chart shows the division of positions in the security department.








SPA: - At Leela-Kovalam a specialty centre is working exclusively for ayurveda treatments such as Panchakarma - the ultimate ayurvedic detox, Shirodhara and Abhyanga - the ayurvedic oil bath and massage, as well as specially formulated ayurvedic packages for rejuvenation,


Spa Manager is the person in charge of the entire operation at the spa center of the Leela Kovalam hotel. For ayuvedic treatments and therapies to the guest the company is hiring the professional service of an ayuvedic contract agency known as Soft Touch. All the services to the guest in Spa are extra-paid services. The most common services provided in the centre are massages and yoga treatments. The Spa Manager should be answerable to the Assistant Executive Manager on the performance of the department. The scheduled working hours of the Spa is 7 am – 10 pm, with 2 different shifts one starts from 7 am in the morning till 4 pm in the evening. Another is from 4 pm till 10 pm.

******************************************* *********************************************


View more...


Copyright ©2017 KUPDF Inc.