SYNOPSIS
MEASURING THE GROWTH OF SERVICE ORIENTATION
IN THE KARNATAKA STATE HOTEL INDUSTRY
- a Meta analysis and Business Model on the HR related issues and attitudes


By
Dr. Padma Srinivasan
Senior faculty on Management & Consultant
Laksha Global Consultancy Services
 


* Key Words: Karnataka Hotels, Service orientation of hotels, HR & Services link Model

INTRODUCTION: Services are intangible deeds, processes and performances that cannot be touched, seen or felt but can be experienced. The Service sector is characterized by its diversity. Global opportunities are growing due to accelerated growth of the service economy. A hotel, as an integral part of this economy, is concerned with converting inputs of various kinds into outputs.   Its potential markets are subject to the influence of culture, fashion, and lifestyle, Changes in social and population structures so as to make a drastic alteration in the relative attractiveness of the hotel product. They have to search for relationship between products and lifestyle groups. A customer's satisfaction with a hotel product depends on the performance of services.

Measuring service performance per se is not as meaningful as measuring relative to customers' expectations. Customers' service expectations provide a frame of reference for their assessment of the service. –Service Marketing-People, Feel & Strategy. To succeed in an over communicated society, a company must create a position in the prospect's mind, a position that takes into consideration not only a company's own strengths and weakness, but those of its clients as well.

Karnataka is poised to become south Asia's premium tourist destination. Tourism is clearly being perceived as Karnataka's strength. Its cosmopolitan nature, manageable infrastructure and largest talent pool are attracting quality tourist and sound investors. In short Karnataka is well on the road that will take it places.  It is offering the comfort and convenience of Aero-Tourism. It facilitates flying down to the most exotic offerings of the state in the comfort of the sleek 68C Twin- Engine Air Crafts or a state- of the- art Helicopter fleet. It is being adequately supported with the Hotel industry which accelerates the State economic growth.

NEED AND CAUSE OF THE STUDY: The researcher is interested in studying the multidimensional aspects of hotel industry services and the need for streamlining the structure and system befitting the growth pace. The KSTDC has helped funding of nearly 672 projects in the State to the tune of Rs. 153,413,227. Karnataka was among the first States in the country to bring out a progressive Tourism Policy as early as June 1992. This had the twin objective of promoting tourism-related activities and enhancing employment and income-generation among all sections of the society to further promote tourism in the State.

HYPOTHESIS:

1. The service orientation of the Karnataka Hotel Industry is escalating and more global focus has evolved.

2. The Karnataka Hotels adopt a proactive business and HR policy

RESEARCH METHODOLOGY;

The researcher used a random sample of 108 hotels of the Karnataka State and applied various statistical tools to evaluate the service parameters and arrived on the research findings on the orientation of the hotels along with the HR dimensions.

FINDINGS:

The findings, as significant as the application of the solutions, are

* 5 Star, 5 Star deluxe hotels have the highest standard of services in the business center and practically all of them have internet access, PC for guest use, color printer, supply of consumables like floppies, blank CDs, Fax, photocopy, LCD/OHP on hire, existence of technical persons for assisting guests in IT services etc.

* 3 and 4 Star Business hotels are also well up in providing such services from the business center, compared to their inertia in providing many services from the guestrooms. A very large number, between 80 to 90%, have the basic services of Internet access, secretarial services etc, in the business center.

* The study showed that 48.15% and 32.50% of the guests of the 2 segments use the Internet services. This is followed in terms of usage of services like VCR/DVD on demand, data port telephone line in the guestroom and the Voice mail. The usage of the services from the business center is much higher than from the guestrooms and many of the services are being used by more than 50% of the guests.

* The usage percentage is lower in 3 and 4 Star hotels, particularly from the guestrooms and other places although it is comparatively higher from the business center.

* A number of guests remain busy in their business meetings and other activities and have neither the time nor the inclination to use services like Internet. Many of them just come back in the evening, watch T.V and go to sleep. Many business guests are also in the higher age group and are in very senior positions in the Organizations. They do not personally use the IT services etc.

* The survey found that 55.56% of 5 Star, 5 Star Deluxe hotels had received adequate financial returns from the investment in the Internet service.

* Many 3 Star and above hotels were charging very high rates per hour or per day of the Internet access.

* 5 Star, 5 Star Deluxe hotels were receiving reasonable returns on other services also, because of their generally high charges. 3and 4 Star hotels were receiving lower returns on their investments in IT services etc, but practically all hotels whether in 5 Star and 3 Star categories, said that they were considering these investments for positioning of the hotel in the market. They were mostly satisfied with the marketing and competitive advantage they had received from these investments.

* Many of the complaints received by the Hotel Mangers relate to the Internet speed in the business center and non-availability of select liquor in the bar.

* Promotional strategies, apart from the regular ads are used for ensuring the best Customer Relation & Retention for the enhanced revenue targets. The study reveals that the increase of revenue due to ads is in the range of 0-20% for 29% respondent hotels. In 71% hotels, the increases in revenues are expected around 20-40% due to advertisements and restaurant promotions.

* Food festivals contribute to approximate increased revenue of 33%. From the point of view of directionality, the hypothesis of newer strategies being cherished by all the customers, local and floating also has also been proved by this study.

* 65% of the hotels surveyed belong to groups based in India. Capitals of nearly 40% of the hotels range from Rs. 50-75 lakhs. 40% of the hotels function with a financial investment of Rs.75-100 lakhs. The finalizing of the plans is generally made at the decision of the Management. In 4 Star and above category advertisement decision favors the globally centralized ad cell.

* The poorly manned time is identified to be between 12 noon to 4.00 PM in 45% of the hotels surveyed.

* It was found that senior executives working in independent hotels generally have a better Compensation Package as compared to executives working for hotel chains.

* The middle level executives have better benefits, perks and retirement benefits compared to executives working in independent hotels.

* Presently, almost all the hotels are exploring scientific approach in obtaining reservations, systematizing the service parameters and are looking up for better days ahead with planned strategies.

CONCLUSIONS: Organizations grow through an increase either in sales, profit, size or diversification, or by number of customers or number of employees. One could say that only profit mattered, but there is pride and satisfaction in growth for the staff as well as the owners. In addition, size and the impetus of growth gives place for a better chance of survival in the market place.
 


Dr. Padma Srinivasan
Senior faculty on Management & Consultant
Laksha Global Consultancy Services
 

Source : E-mail March 20, 2006

 

    

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