KARNATAKA HOTELS AND SMART COST REDUCTION USING
WASTE MANAGEMENT PHASE PLAN PROGRAMS


By
Dr. Padma Srinivasan
Visiting Faculty
ICFAI Business School
Bangalore
E-mail:
padma@sindhucargo.com
 


Introduction:

The Karnataka State offers every kind of travel attraction and holds appeal to a diverse array of tourists. It is among the world's most ancient civilizations and is home to two World Heritage Sites Hampi and Pattadakal. In terms of natural attractions, 22 percent of the state's land area is made up of forests; Karnataka is home to Jog Falls - Asia's highest waterfall. It boasts of a 320km unspoilt coastline as well as several breathtaking hill stations that are ideal for ecotourism projects. For adventure lovers, Karnataka offers white-water rafting possibilities, not possible elsewhere in India, other than in the Himalayan region. Colourful art forms, indigenous crafts and a rich cultural legacy add further sheen to Karnataka's diverse tourism potential.

Alongside heritage, culture, and natural splendors, Karnataka also boasts of Bangalore -- India's Silicon Valley, and a rapidly growing metropolis. In short, Karnataka has all else except snow and has much to offer discerning travellers, as well as tourism entrepreneurs. The state is also fast emerging as a sought after MICE destination - ideal for meetings, employee incentive packages, conventions and exhibitions.

All hotels of Karnataka are expected to provide luxurious and most modern facilities to the price conscious customers. Except for the location and some subtle variations in themes, most hotels have the same tight budgets in Karnataka. It is also seen that during the budgeting process, eco-driven business plans are pushed to ' Later On' or 'Next Priority' space. So unless the hotel theme revolves in Waste Management, the hotels or resorts do not focus on such issues. In this paper, the author has extensively toured the State of Karnataka to find out the efforts made by the hotels, to fit into the business environment, a need to take care of the waste management process in and around. The hotels of different Star categories, concepts and themes have been considered to study the deeper meaning of "How does a perfect Hotel mange waste and the strategies involved".

SMART COST REDUCTION:

This is one of the techniques involved in making a successful hotel property. At the same time, some hotels have to face modernization at huge costs often especially in cyber city like Bangalore where technology up-gradation is swift and the inflows of customers require multi dimensional facilities ranging from full-fledged business center to high grade video conferencing. Hence providing value additions and a relaxing environment has become an integral part of the hotel service. This cost is inevitable or else the customers may turn to a different service provider. How ever, it is estimated that approximately a lull of 2%-10% of the previous year business occurs in all categories of hotels. Here the waste management is perused as a core regimen, as part of routine and as "HOTEL CULTURE". So, a safe and relaxing environment is maintained at all costs.

Similarly, waste management has slowly crept in part of hotel business' T.Q.M. Thus quality does not influence price tag but a survival technique. If this quality aspect is not impressed on the Guest, he may stop giving business? But it is also seen that during the budgeting process, eco-driven business plans are pushed to ' Later On' or 'Next Priority' space. So unless the hotel theme revolves in ECO-RESOURCES, the hotels or resorts do not focus on eco related issues. The hotels identify the waste zones and plan specifically for them.

WASTE MANAGEMENT PHASE PLAN PROGRAMS

Management relates to the art and science of planning, organizing, directing and controlling. The firms, be it a small time or a MNC have plan the waste management, organize and direct the disposal and control the WASTE OF ALL RESOURCES in any form.

In an article dated 20/04/2001, Rethinking waste management in India, Mr. Sanjay K. Gupta voices his concern as  "There is no Indian policy document, which examines waste as part of a cycle of production-consumption-recovery or perceives the issue of waste through a prism of overall sustainability. In fact, interventions have been fragmented and are often contradictory. The new Municipal Solid Waste Management Rules 2000, which came into effect from January 2004, fails even to manage waste in a cyclic process. Waste management still is a linear system of collection and disposal, creating health and environmental hazards".

BASKETING OF WASTE:

This is an important step before any planing or management can be done. In a hotel at a macro level, the following are the classifications and basketing of wastes.

Fig.1   Basketing of Waste.




THE MULTI FUNCTIONAL PHASE PLAN PROGRAM:

This plan starts with

    * Plotting the plans, actions at micro level precision on the graph plane
    * Identifying the zone of waste areas
    * Identifying the areas where costs should not be tampered with 
    * Highlighting the cost efficiency plans and targets established in this pretext
    * Estimate the variance caused by actuals
    * Reset the strategic option to reduce waste marks
    * Reorient the actions to cut to match plans.

WASTE FREE SOCIETY:

Every hotel may aspire to create a waste free society creating awareness of a GREEN ASSOCIATION where

    * Environmental protection will be the theme and direction of working
    * Reschedule the hotel activities around the Green zone
    * Move the horticultural plans to 'more green and most green' 

IndiOne HOTELS AND SMART BASICS: a case study

IndiOne™  has been launched to cater to corporate executives, traders and self-employed professionals, tourists, pilgrims and leisure travelers who are looking for a clean, secure, convenient hotel, without having to pay premium prices. It has been an offshoot of Taj Group that was operating in the premium segment so far. The Tata Group's Indian Hotel Company Limited has this concept hotel as India's first `no attitude' hotel with tariff under Rs 1,000. As no-frills hotel chain, it offers low-cost hospitality to its customers who get value for money at an affordable price

It is based on a model of CK PRAHALAD, where a model was created based on the values to be created for the customers in the economic section. Then it was worked backwards and costs were cut down as follows:

  • The procurement of supplies has been negotiated with many projects in mind.
  • The design of the room and accessories is to keep maintenance to a minimum- room sizes were fixed at around 200 metres compared to five stars where they are between 250 to 400 metres.
  • Staffing has also been negotiated to keep costs low without compromising on a level of service that the group is used to- the entire Bangalore hotel is to  be run by 25 people and arranged for  working on automatic check-in kiosks instead of porters.
  • The control on the physical aspects of the property too-:the hotels would be on 1 acre of land with 100 rooms. If each hotel costs about Rs 10 crore (Rs 100 million) that comes to around Rs 10 lakhs (Rs 1 million) a room.
  • Use of technology to save on marketing and sales. For instance, it's offering Rs 50 off on Internet bookings.

Conclusions:

There is an imminent need for significant action in the arena of Cost saving, Wastage management and Eco balance  preservation. A brisk action is suggested before things could go out of hand in this matter. So 'W.M Concept' itself can be introduced as a ' Brand Leveraging Factor' and the benefits can be much more than the costs involved. Various solutions and strategies are used by the hotel industry to overcome the difficulties in preserving the environment along with managing their wastage of resources in attaining the mission & vision of the hotels in a cost-effective manner.
 


Dr. Padma Srinivasan
Visiting Faculty
ICFAI Business School
Bangalore
E-mail:
padma@sindhucargo.com
 

Source : E-mail December 1, 2004

 

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