1. SERVICES MARKETING
Module 5
SERVICE INDUSTRIES IN INDIA
Faculty : Kerena Anand
*** AFTER completing the module, the examination
questions from the previous question papers with the marks
will be added to this module’s notes.
I] TOURISM SECTOR
There are many places that interest good tourist traffic in India.
There are hill stations in Himachal and Ooty. Beaches in Goa and
Kerala. Kerala is also known for the ayurvedic treatments. There
are religious places and also places of historical importance.
Unfortunately the country has not exploited this opportunity as
this can play an important role in the economic development.
1. Define Tourism.
Tourism Society of England defined…..
“Tourism as temporary, short term movement of people to
destination outside the places where they normally live and work
and their activities during the stay at each destination. It
includes movements for all purposes”
Tourism is a very complex industry. It embraces five components:
Transportation, accommodation, food and catering, travel agents
and the place of attraction itself. Tourism is not a homogeneous
product as different people have different requirements of
different standards and professionalism.
2. What are the peculiarities of a tourism product?
The peculiarities of a tourism product are:

2. It cannot be provided by a single enterprise; each component
of tourism- hotel, transport etc is highly specialized and
together makes the final product.
The sales intermediaries like tour operators, travel agent
and hotel brokers play a dominant role.
Tourists have diverse motivation to travel
Moreover the demand for tourism is highly unstable due to
seasonal, economic and political factors.
3. How has tourism evolved through the years?
Tourism is an ancient phenomenon which started in the 6th
century BC in Babylonian and Egyptian empires. It became
prominent during the Roman empires as they conducted many
sporting events, festivals mainly for pleasure and curiosity.
During the dark ages that is the fall of Roman empire, tourism
was absent as people found it dangerous and difficult to travel.
Tourism again reappeared in Europe as the companies also
declared annual holiday for their employees. The infrastructure,
urban areas , development of road and rail was given prime
importance during this period.
The first company to provide tourism services was Thomas Cook
which started in the year 1841.
During those days tourism was restricted to the 3 S: Sun, Sea
and Sand.
Today tourism is one of the emerging industries
The World Tourism Organisation forecasted that there is an
increase of 4% in international tourism every year. By 2020
Europe would be the most popular tourist destination.
4. What are the forms and types of Tourism?
There are various reasons to motivate people to travel

3. A] Based on the geographical location:
i. Domestic Tourism: Citizens of a country travel within that
country. No language barriers, currency or documentation
procedures.
ii. International Tourism: Movement of people between
different countries. There are few necessities- currency,
documentation , visa and other entry permits.
a. Inbound : Inbound tourism is when someone/non-
resident comes to your country for e.g. someone
coming from USA to spend their summer holidays
in India.
b. Outbound: When people travel away from the
country were they normally live. It can for holidays,
business, trip etc.
B] Based on the purpose of visit (Holiday and business)
Holiday tourism is for recreational, health, cultural
purposes. They have the freedom of choice about where to
go, when to go. It might be for pleasure, relaxation, health,
sports or even for spiritual reasons.
Professional/ Business travel is for monetary benefits,
corporate travel. For example: Business people travel to
make sales calls, attending meetings, conferences. For this
Hotels have huge convention complexes and conference
rooms.
C] Basis on the number of tourists
Individual
Group
5. What are the different classification of Tourists/ who
are the different types of tourists?

4. Explorer: They are limited in number, They look for
discovery and involvement with local people.
Elite : They require special , individual tailored trips to
exotic places. Example: Top notch business people and royal
monarchs.
Offbeat: People who travel to get rid of their usual humdrum
life.
Unusual: Here the travelers have peculiar objectives. They
visit places where there is physical danger and are isolated.
There are unusual tourist destinations such as : Stone
henge (here people travel thousands of miles to see a piles of
stone arranges one above the other) and Green sand beach (
There are rocky cliffs where people have to climb just to
watch the seashore on the other side)
Incipient mass: They are small organized groups who travel
of some cause e.g religious places, or visiting earthquake or
volcanic prone areas. Angelina Jolie has a charity foundation
in Africa which is an earthquake affected area where she
travels very often for this cause.
Mass: It is a packaged tour market. Example: Thomas Cook,
Cox & Kings designs many packages to different tourist
destinations.
Charter: Mass travel to relaxation destinations. Standarised
developed world class facilities are developed by the charter
flight companies. Example : Aerotech Aviation, Dhillon
Aviation.
6. Who are tour operators? What is their role?
A tour operator typically combines tour and travel components
to create a holiday. They prepare itinerary. The most common
example of a tour operator's product would be a flight on a
charter airline plus a transfer from the airport to a hotel and
the services of a local representative, all for one price.

5. The role of tour operators
The role of tour operator is to design an INCLUSIVE TOUR.
INCLUSIVE TOUR
The term inclusive tour (IT) is used to describe a commercial
arrangement where a company commonly referred to as a tour

6. operator organises package holidays that include accommodation
in addition to transportation. These arrangements are usually
built around charter flights carrying a group of individuals who
share seats on the same plane to travel together to their intended
holiday destination as well as back to their point of origin. They
also include accommodation and - in some cases - other holiday
arrangements such as the provision of meals as well. Everything
is sold to the holidaymaker as an all-inclusive package.
7. What is the difference between a tour operator and a
travel agent?
A tour operator is responsible for operating and providing your
vacation through the contracting, booking and packaging
together of the various components of your tour such as your
hotel, transportation, meals, guides, optional tours and
sometimes flight. Many tour operators are considered land only
operators and focus on the aspects of your package once you
have arrived in your destination.
Travel Agents hold the role of selling and administering
packages from various tour operators to their personal clients
based on what they’re looking for and what package suits each
client best. While many tour operators focus on a select
concentration of destinations most travel agents can specialize in
a range of destinations and then they can help you narrow down
a package for that specific destination or area you are looking to
travel to based on your budget, preferred method of travel and
interests. Travel agents will then work directly with the tour
operator to perfect your requests and provide the tour operator
with the information and payments they need.
Therefore a tour operator is a an organiser of tours and also a
supplier ( they might own a air craft, hotels, car rentals or all of the
three or even tie-ups with them ).
A travel agent is only a distributor or seller of tours. They do not
own any travel assests.

7. Example:
I go to a travel agent to book a holiday.
The travel agent will offer me a choice of holidays with
different tour operators.
The tour operator is responsible for my holiday.
The travel agent takes my money.
Think of it like an restaurant. The waiter takes my order( the
travel agent). The chef cooks the food( the tour operator)
8. How are tourism product classified?
A Tourism product can be categorized into 5 broad types
Attractions: Natural( landforms, flora and fauna), Man made
(historic monuments), Cultural ( Music, art, folk)
Transport: Rail , road, air, cruise line ( ships)
Accommodation: It is a critical component. There are
commercial sector hotels, guest houses, private residences
and camping sites.
Support and auxiliary services: Shops, restaurants, banks
and medical facilities should be located close to the tourist
place.
Physical and Communication infrastructure: Roads,
airports, electricity.

8. II] HOSPITALITY (HOTEL) SECTOR
1. Define Hotel. Where did the word hotel originate from?
Which is the largest, oldest and tallest hotel in the world?
The word hotel is derived from the French hôtel (coming from
hôte meaning host), which referred to a French version of a
townhouse or any other building seeing frequent visitors, rather
than a place offering accommodation.
LARGEST
In 2006, Guinness World Records listed the First World Hotel in
Genting Highlands, Malaysia, as the world's largest hotel with a
total of 6,118 rooms. The Izmailovo Hotel in Moscow has the most
rooms, with 7,500, followed by the Venetian Palazzo Complex in
Las Vegas (7,117 rooms) and MGM Grand Las Vegas (6,852
rooms).
[edit] Oldest
According to the Guinness Book of World Records, the oldest
hotel in operation is the Hoshi Ryokan, in the Awazu Onsen area
of Komatsu, Japan, which opened in the year 718.
[edit] Tallest
The Ritz-Carlton Hong Kong is claimed to be the world's highest
hotel. It is located in the top floors of Hong Kong's tallest
building, the 488 meter tall International Commerce Centre.
2. Discuss about the growth and development of hotel sector
in India.
The Indian hospitality industry is growing at a rate of
18%annually. The current gap is expected to widen further as the
economy opens and grows
A rapidly growing middle class , the advent of corporate incentive
travel and the multinational companies into India has boosted
prospects for tourism.

9. India’s easy visa rules, public freedoms and its many attractions
as an ancient civilization make tourism development easier than
in many other countries.
Many foreign companies have already tied up with prominent
Indian companies for setting up new hotels, motels and holiday
resorts.
Several International chains are expanding their hotel network in
India
3. What is the difference between a hotel and an inn?
Hotel is a building where people can pay for lodge, have meal and
other services. Hotels have rooms with beds and some useful
furniture like chair, TV, telephone, small table, and some modern
facilities like air conditions, computer and climate controller.
Some rooms are attached with bathroom where visitors can bathe
and get refreshed. There are some additional features like mini-
bars, gaming, swimming pools, child-care center, gym, spas,
conference hall and service of social gatherings.
Food is offered by some hotels, but it has to be paid. There is a
different section for food in hotels, which provides many different
types of cuisines like Italian, Chinese, Lebanese, Thai,
Continental and more.
The cost and expenses of hotel usually depends on the type of
services. It is rated depending upon the range of service and the
luxury of the hotel. Rating system is indicated by stars, hotel is
affiliated by stars on these rating parameters. Hotel can be
affiliated 3 stars, 5 stars or 7 stars. But AAA (American
Automobile Association) uses diamonds instead of stars to
affiliate hotels.
An inn is generally a building located along a highway or
countryside where people can seek lodging and food. Inns were
the first commercial buildings for lodging and boarding. Inns
were established at time of Romans, to help travellers in lodging,
food and drinks including alcohol. Not only do they used to

10. provide service for the travellers, but horses were provided with
stable and fodder. Until now, aside from providing lodging, it also
provides good services to customers like drinks and food. Inns do
not have separate restaurants instead it has small section for
food and drink. It does not provide a large food variety unlike in
hotels.
4. How are hotels classified based on their standard?
One Star Hotels
Hotels in this classification are likely to be small and
independently owned, with a family atmosphere. Services may be
provided by the owner and family on an informal basis. There
may be a limited range of facilities and meals may be fairly
simple. Lunch, for example, may not be served. Some bedrooms
may not have en suite bath/shower rooms. Maintenance,
cleanliness and comfort should, however, always be of an
acceptable standard.
Two Star Hotels
In this classification hotels will typically be small to medium
sized and offer more extensive facilities than at the one star level.
Some business hotels come into the two star classification and
guests can expect comfortable, well equipped, overnight
accommodation, usually with an en-suite bath/shower room.
Reception and other staff will aim for a more professional
presentation than at the one star level, and offer a wider range of
straightforward services, including food and drink.
Three Star Hotels
At this level, hotels are usually of a size to support higher staffing
levels, and a significantly greater quality and range of facilities
than at the lower star classifications. Reception and the other
public rooms will be more spacious and the restaurant will
normally also cater for non-residents. All bedrooms will have fully
en suite bath and shower rooms and offer a good standard of
comfort and equipment, such as a hair dryer, direct dial

11. telephone, toiletries in the bathroom. Some room service can be
expected, and some provision for business travellers.
Four Star Hotels
Expectations at this level include a degree of luxury as well as
quality in the furnishings, decor and equipment, in every area of
the hotel. Bedrooms will also usually offer more space than at the
lower star levels, and well designed, coordinated furnishings and
decor. The en-suite bathrooms will have both bath and fixed
shower. There will be a high enough ratio of staff to guests to
provide services like 24-hour room service, laundry and dry-
cleaning. The restaurant will demonstrate a serious approach to
its cuisine.
Five Star Hotels
Here you should find spacious and luxurious accommodation
throughout the hotel, matching the best international standards.
Interior design should impress with its quality and attention to
detail, comfort and elegance. Furnishings should be immaculate.
Services should be formal, well supervised and flawless in
attention to guests' needs, without being intrusive. The
restaurant will demonstrate a high level of technical skill,
producing dishes to the highest international standards. Staff will
be knowledgeable, helpful, well versed in all aspects of customer
care, combining efficiency with courtesy.
5. How are hotels classified on the basis of purpose?
a. A motor hotel: or motel for short (also known as motor inn,
motor court, motor lodge, tourist lodge, cottage court, auto
camps, tourist home, tourist cabins, auto cabins, cabin camps,
cabin court, or auto court), is a hotel designed for motorists, and
usually has a parking area for motor vehicles. It refers to a type of
hotel consisting of a single building of connected rooms whose
doors faced a parking lot and, in some circumstances, a common

12. area; or a series of small cabins with common parking. Motels are
often privately owned, though motel chains do exist.
Motels differ from hotels in their location along highways, as
opposed to the urban cores favoured by hotels, and their
orientation to the outside (in contrast to hotels, whose doors
typically face an interior hallway). Motels almost by definition
include a parking lot, while older hotels were not usually built
with automobile parking in mind.
Motels are typically constructed in an 'I'- or 'L'- or 'U'-shaped
layout that includes guest rooms, an attached manager's office, a
small reception and, in most motels, a swimming pool, and in
some cases, a small diner. A motel could range from a small
single story to two or three floors, although the hotel form of
construction with inside corridors would be more suited to taller
buildings due to the number of stairwells required to service
multiple levels of balcony rooms. The doors to each motel room
typically face the parking lot, making it easy to unload suitcases
from the car.
b. Extended stay:
When travelling for a few weeks or moving to a new home,
extended stay hotels are often used by people who have to stay
away from home for a long period of time. Also, some guests live
in extended stay hotels in lieu of a home for a variety of reasons.
Extended stay hotels offer many of the comforts of home while
the customer is not in their own home. Below are some useful
facts and information titbits about these unique places.

13. Great amenities
Extended stay hotels usually offer more upscale amenities and
comforts than regular hotels. Wireless internet access and on-site
laundry are usually offered at these establishments. Some hotels
also offer newspaper delivery and laundry services. In addition,
many extended stay hotels receive mail for their guests.
Enhanced rooms
Because their guests are away from home, many features of the
rooms in these hotels mimic the comforts of a traditional home,
such as an increased kitchen size that may include a
dishwasher, stove or oven. This may also include more counter
space in kitchens, bigger closets and roomier bedrooms.
Discounted rates
Many extended stay hotels often offer discounted rates or weekly
rates that are lower than nightly fees as a benefit of staying long-
term. Shop around and explore the different hotels that offer
extended stay rooms to ensure that you get the best deal.
Deals on meals
Continental breakfasts or restaurants within the hotel are often
perks associated with long-term stays at hotels. Some packages
may include free morning breakfasts or discount cards and
coupons to use at the hotel eateries or other nearby restaurants
in town, so make sure to ask hotel personnel about any offers
available.
Extended stay hotels are a wonderful way to feel at home when
not at home. With decent discounts and better amenities, these
hotels may have you wishing to stay there instead of return back
to your house.

14. 6. How are hotels classified on the basis of nature?
a. Heritage hotels:
Jodhpur heritage hotel Chomu Palace Hotel Jaipur
Palace Hotel Rajasthan
The Maharajas in India have left a royal legacy with their palaces
and residences still holding on to the glory. Vacation in one of the
heritage hotels in India would be like steering your vacation ship
to the port of royalty and comfort. You get to live king size while
being awake to the hospitality and facilities that you are enjoying.
The erstwhile residences of the royal families in various states of
India serve as luxury and boutique hotels presently.
Guests at such palace turned hotels enjoy great ambience, royal
food, huge rooms, old furniture, yet modern facilities. The rooms
have been renovated to satisfy a modern guest who is looking to
make his vacation and business trip worthwhile. The concept of

15. heritage hotels took off mainly from the Rajputana state of
Rajasthan, land of the Marwar rulers too. There were several
havelis and palaces owned by the Maharajas that stood
abandoned and were simply tourist attractions. Today, it remains
to be an attraction, but tourists are offered the chance of reliving
history.
b. Resort hotels:
A resort is a place used for relaxation or recreation, attracting
visitors for holidays or vacations. Resorts are places, towns or
sometimes commercial establishment operated by a single
company.

16. c. Floatels:
A floating hotel, esp. a boat used as a hotel
d. Airport hotels:
Airport hotels have grown popular due to their convenience for
transient passengers and easy accessibility to the airport
terminal. Many airport hotels also have agreements with airlines
to provide overnight lodging for displaced passengers.