Title of Paper

STUDY OF HOTEL INDUSTRY IN KHANDESH REGION

Authors:
1. Er. Anawade Pankajkumar Ambadas
(Assistant Professor, MBA Dept. )
SSBTs COLLEGE OF ENGINEERING & TECHNOLOGY
BAMBHORI,
NORTH MAHARASHTRA UNIVERSITY, JALGAON, MS
PIN- 425001.
Email ID : anawade.pankaj@gmail.com
Contact No: 7588044073

2. Dr. Shilpa K. Bendale

(H.O.D. Dept. of Management)
KCEs COLLEGE OF ENGINEERING & INFORMATION
TECHNOLOGY,
NORTH MAHARASHTRA UNIVERSITY, JALGAON, MS.
PIN- 425001
Email ID: skbendale@yahoo.com
Contact No: 9423973215

ABSTRACT:
Now a days Hotel Industry taking place a huge role in the service sector. It helps the
tourism sector for earning the revenue from the foreign as well as Indian tourists.
Hotels and tourism industry are the biggest earners of the foreign exchange in India.
Hotel and tourism Industry is the strong base to increase the GDP of Indian economy.
Hence in order to inculcate the impact and scope of Hotel industry in various
spectrum of region, researcher had made a survey in Local area of Jalgaon region to
identify the scope of Hotels in the region so that study reveals various objectives
which will guide and help to the Hotels for betterment of the service provision and
customer satisfaction.
Jalgaon city is also framed with the name Gold City as it is famous for the big
market of Gold Jewelries and other rich ornaments. It is also famous for the tourist
place as a World Herritage Ajanta Caves is only 57 km from the Jalgaon City.
Hence in order to catch the importance of Service sector specially Hotel Industry as a
tourist spot and availability of 24 hours transportation facility by Railway and by
Road service, Researcher had made a survey report on the basis of No of hotels in the
selected area i.e Jalgaon City and found that there are more than 600 Hotels including
all kinds like 3 Stars, 2 Stars, medium range and small hotels with Restaurants,
Various parameters has been set like, kind of service they provide, charge
applications, packages during seasons and to the tourists. Also it has been surveyed
about the no of rooms available in each hotel, and type of facility they provide for the
tourists and type of customers visiting the Hotels.
Keywords:
Service sector, Type of hotels, customer Satisfaction, tourist spot, transportation
facility.

INTRODUCTION:
Tourism in India including Hotels and Restaurants:

Hotel Industry in India got a tremendous boom in recent 5 to 10 years. Hotel Industry
is very much related to the tourism industry and the growth of tourism industry has
increased the growth of Indian hotel industry. The thriving economy and increased
business opportunities in India have acted as a boon for Indian hotel industry. The
'Incredible India' destination campaign and the recently launched 'Atithi Devo
Bhavah' campaign have also helped in the growth of domestic and international
tourism.

In recent years government has taken several steps to boost travel & tourism which
have benefited hotel industry in India. These include the abolishment of the inland air
travel tax of 15%; reduction in excise duty on aviation turbine fuel to 8%; and
removal of a number of restrictions on outbound chartered flights, including those
relating to frequency and size of aircraft. The government's recent decision to treat
convention centers as part of core infrastructure, allowing the government to provide
critical funding for the large capital investment that may be required has also fuelled
the

demand

for

hotel

rooms.

The opening up of the aviation industry in India has exciting opportunities for hotel
industry as it relies on airlines to transport 80% of international arrivals. The
government's decision to substantially upgrade 28 regional airports in smaller towns
and privatization & expansion of Delhi and Mumbai airport will improve the business
prospects of hotel industry in India. Substantial investments in tourism infrastructure
are essential for Indian hotel industry to achieve its potential. The upgrading of
national highways connecting various parts of India has opened new avenues for the
development of budget hotels in India. Taking advantage of this opportunity Tata
group and another hotel chain called 'Homotel' have entered this business segment.

According to a report, Hotel Industry in India currently has supply of 110,000 rooms
and there is a shortage of 150,000 rooms fueling hotel room rates across India.
According to estimates demand is going to exceed supply by at least 100% over the

next 2 years. Five-star hotels in metro cities allot same room, more than once a day to
different guests, receiving almost 24-hour rates from both guests against 6-8 hours
usage. After falling in 2009-10, the hotel sectors sales are likely to grow in 2010-11
by 18.1 per cent due to both, higher occupancies and Average Room Rate (ARRs).
However, fresh room additions in 2011-13 will keep the ARRs under check. Sales are
expected to grow by 15.1 per cent in 2011-12.
With demand-supply disparity, hotel rates in India are likely to rise by 25% annually
and occupancy by 80%, over the next two years. This will affect the competitiveness
of

India

as

cost-effective

tourist

destination.

To overcome, this shortage Indian hotel industry is adding about 60,000 quality
rooms, currently in different stages of planning and development, which should be
ready by 2012. Hotel Industry in India is also set to get a fillip with Delhi hosting
2010 Commonwealth Games. Government has approved 300 hotel projects, nearly
half of which are in the luxury range. The future scenario of Indian hotel industry
looks extremely rosy. It is expected that the budget and mid-market hotel segment
will witness huge growth and expansion while the luxury segment will continue to
perform extremely well over the next few years.
Tourism is one of the major engines of economic growth in most parts of the world
including India. Since tourism does not fall under a single heading in the National
Accounts Statistics, its contribution has to be estimated. In 2007-08, the contribution
of tourism to the countrys GDP, and to total jobs (direct and indirect) in the country
was estimated at 5.92 per cent, and 9.24 per cent respectively. In absolute numbers,
the total number of tourism jobs in the country increased from 38.6 million in 200203 to 49.8 million in 2007-08. According to the UN World Tourism Organization,
tourism provides 6 per cent to 7 per cent of the worlds total jobs directly and millions
more indirectly through the multiplier effect in this sector. Tourism also plays an
important role in the countrys foreign exchange earnings, as its share in Indias
export of services accounted for 13 per cent of the total export of services in 2009-10.
In India, the tourism sector witnessed significant growth in recent years. During the
period 2004 to 2009, the CAGRs of foreign tourist arrivals and foreign exchange
earnings from tourism in rupee terms were 8.1 per cent, and 14.5 per cent
respectively. Foreign tourist arrivals in India, which were at 5.28 million in 2008, fell

to 5.11 million in 2009 due to the global crisis. These arrivals, which registered
negative or low growth rates in the first eleven months of 2009, started recovering
from December 2009 with a good growth of 21 per cent.

In the year 2010, the recovery continued with foreign tourist arrivals at 5.58 million
registering a growth of 9.3 per cent. The foreign exchange earnings from tourism in
the year 2010 witnessed a growth of 18.1 per cent over the previous year in rupee
terms compared to the decline of 3.3 per cent in 2009. Domestic tourism also plays an
important role in overall tourism development in the country. The number of domestic
tourist visits increased to 650 million in 2009 as compared to 562.98 million in 2008,
witnessing a growth of 15.5 per cent in spite of various adverse factors during this
period. The hotels and restaurants sector is an important sub-component of the
tourism sector. Availability of good quality and affordable hotel rooms plays an
important role in boosting the growth of tourism in the country. Presently there are
1593 classified hotels with a capacity of 95,087 rooms in the country. The hotels
sector comprises various forms of accommodation, namely star category hotels,
heritage category hotels, timeshare resorts, apartment hotels, guest houses, and bed
and breakfast establishments. The share of the hotels and restaurant sector in the
overall economy increased from 1.46 per cent in 2004-05 to 1.69 per cent in 2007-08,
and then decreased to 1.53 per cent and 1.45 per cent in 200809 and 2009-10
respectively. The CAGR in the GDP contributed by the hotels and restaurants sector
was 8.5 per cent in 200405 to 200910.

REVIEW OF LITERATURE:
For several years now scope of hotel industry in India and Study of Hotel Industry in
many Metropolitan cities has been carried out. Also research work has been carried
out by no of researchers throughout the world. Research is trying to find out the scope
of hotel industry in rural area. Hence the researcher has chosen the Khandesh region
specially Jalgaon.
The Economic Survey of India 2010-11 has reported the impact of hotel industry on
overall GDP of India.
Report from the Central Statistics Office (CSO) reveals the growth of Hotel Industry
in the Economy of India.

THEOROTICAL APPROACH:
Hotel Industry: A perspective approach in rural sector
Researcher had carried a small survey within a short duration of time just to know the
scope of hotels in the area of Jalgaon city. Which is located in the greenery of
Satpuda, and on the bank of river Girana. The area is also known as Khandesh Region
of North Maharashtra.
Modern Jalgaon now has a vast industrial area, Education Hub, rich with specialty
Hospitals. City is well developed with good raods with National Highway No 6, and
state highways connected to many cities like Aurangabad, Nashik, Mumbai, Surat and
Nagpur. It is also connected with Central Railway which helps to reach to many cities
across the country. An Airport is now at the final stage to use from the month of April
2011. This will add more benefits for the business mans Industrialists and foreign
tourists also. A world famous Ajanta Caves is very near i.e only 57 km from the city.
It is also well developed with a high class supermarkets like Big Bazar, D Mart,
Navjeevan, Vishal Mega mart etc. also city is having markets with big infrastructure
i.e Golani market, Phule Market and Grain Market.
After successful entrance of hotel chains into the metropolitan cities ,they are now
entering into the places of district levels. But somehow they are not able to attract the
customers from various classes. That is why it is more essential to this problem and
find out what necessary steps is to be taken to improve the conditions of hotel
industry in other places as well as to attract the customers from each class.
In India there are no of hotel chains of many groups like Taj Group of Hotels, Jaypee
Groups Best Western group of hotels, The Grand International Group, Oberoi Group,
The Le Meridien Group of Hotels and many more. But they had not shown keen
interests in the area of rural sectors.
It is found during the survey that approximately 600 hotels including lodging, food
and restaurants are observed in the Jalgaon City. These hotels are categorized under 3
Star, 2 Star, 1Star and also some small hotels which are only meant for providing food
or lodging to those who are not affording heavy costs. It also includes some

Restaurants and Dhabas. In the rich location of the city, there are many snacks centers
which provides snacks like south Indian Dishes, Pizzas, Burgers and fast foods.
OBJECTIVE OF THE STUDY:
1. To study the no of hotels in the Khandesh Region.
2. To study the scope of hotels.
3. To study the types of services provided by the hotels
4. To study the customer perceptions and requirements.
5. To offer the remedial measures for future improvements in the hotels.
RESEARCH METHODOLOGY
Selection of Samples
Researcher has carried out a short survey as a part of subject matter of research study
for the doctoral Program. For this purpose the samples are categorized as under
Visitors from Business Persons, Marketers, Tourists
Hotel Owners / Care Takers and or Managers.
Sampling Method:Questionnaire method was adopted as sampling method.
Questionnaire was prepared containing
1) Open ended questions.
2) Close ended question.
Primary Data
Primary data has been collected directly from the field. Survey is research approach
used in this research project. These made to learn about peoples knowledge, personal
opinion and attitude towards the service

Secondary Data
The secondary data has been taken from hotel booklets, information manuals, service
chars and rate lists etc. This has been used to know about the history of the hotels,
service facility, type of accommodation they provide etc.
Research Instrument
For this study paper, Questionnaire method is used as the research instrument.
These questionnaires include all type of question which had asked to both Visitors
and Owners as well. Questionnaire was structured for both open ended and closed
questions.
Contact Method
Here personal interview method is used to collect the information from visitors with
the kind permission of the owners of the respective hotels. Due to short period of time
the visitors are randomly selected. Sampling procedure was simple random sampling
methods is used where personnel interview or face-to-face meeting is taken of each
visitor.
CURRENT SCENARIO OF HOTELS IN KHANDESH REGION:
As stated earlier, there are nearly 600 hotels with varieties of facilities for each class.
As hotels has its special categories mentioned in the style of stars they are5 Star, 4 Star, 3 Star, 2 Star and 1 Star.
Following are the requirements that the hotels should provide as per their ratings
Table No-1
Sr.
No.
1

Type of Hotel
(Star Ratings)
5 Star

4 Star

3 Star

2 Star

Facilities or Standards
International Style of standards include 24 hrs. room
service, Recreation Facilities, Availability of Tourist
Guide, Internet Facility in each room etc.
High Standard with high quality furnishing, High
standard Presentation and guest service, Availability of
Restaurants, Comfortable living, Lounge etc.
Well furnished, equipped with lighting, cooling room
heaters, telephone line, internet facility, Room service
with tea, coffee, breakfast, newspaper etc.
Well maintained with average standards.

1 Star

Basic standard accommodation, simple and adequate

lighting

As it is observed from the above table the essential facilities to be given to the visitors
if they want to maintain the stars.
But unfortunately researcher observed from the survey that there is only one hotel
which is having only 3 Star Rating and no 5 Star and 4 Star hotels.
Also the visitors are classified according to their income levels as shown in the
following table.
Table No-2
Sr.

Class of Visitors

Monthly Income level

No

(In Rupees)

Foreign Tourists

Income not mentioned for Foreigners

Rich & Business Class

40,000 and above

Govt. Employees,

15,000 to 40,000

Executives,
4

Middle Class

5,000 to 15,000

Average

Less than 5,000

Top TEN Hotels in Khandesh Region

1. Maitrya Hotel Resorts
2. President Cottage Resorts
3. Hotel Royal Palace
4. Mahendra Hotel
5. Motel Cozzy Cottage
6. Hotel Kewal Inn.
7. Golden Palace Hotel
8. Hotel Minerva
9. Hotel Green Palace
10. Ram Niwas Hotel

RESEARCH FINDINGS:
The survey was undertaken using questioner method which were asked to the visitors
and the respective hotel in charges. Following were the observation during the survey.

1. Not availability of 5 and 4 Star Hotels in the Region of Jalgaon

2. Awareness about the scope of such hotels in the region
3. Unavailability of high standard accommodation facilities though they
advertise of such kind of facilities.
4. Unavailability of Guide and Tourist vehicles in case of emergency. They have
to depend on other vehicles on rent.
5. Unavailability of no of rooms in case of seasonal periods.
6. Lack of proper advertisements in nearer places like Ajanta Caves, Aurangabad
Airport, Railway stations, Bus stands etc.
7. Lack of provision of promotional activities to the visitors.
8. Hotel groups like Taj, Le Meridians, Oberoi Groups are not showing the
interests in this region to establish their chain of hotels.
9. Unavailability of no of rooms during the peak periods like Vacations, Tour
period etc.

CONCLUSSION:
During the study of this topic it has been observed that there is a great opportunity to
enter the hotel chains in this region as it is a point of center for all tourists, business
class persons etc. but due to the awareness of scope of hotels, it has failed to do so.
In the era of 21st Century, as India is on the way of becoming super power in the
world economy and service sector is playing a huge role to achieve this stage. It has
been observed from many economic reports and surveys that service sector is majorly
depend on hotel industries. But certain consequences are making the impact on the
entry of large and famous hotel groups in the rural sectors like khandesh.
Also those hotels are having the stand into the local market, they should try to
improve the services what they provide currently to their customers or visitors. For
this purpose following are some of the suggestions which researcher want to give
after this study.
Hotels should provide the high quality standard services for the tourists.
Hotels having star ratings should provide world class services to the foreign
tourists.
They should provide vehicles like Cab to the tourists.
They should use proper media like Internet, Magazines and tourists guide map
etc. to make the impact in the area of tourism.

 Government should pay keen attention to make the entry of High class hotels
in the Khandesh region.
Hotels should provide holiday packages to the group and family packages
during the off peak and on peak periods.
There should be the facilities like Golf Clubs, Swimming pools, ski,
conventions and conference halls for the business class peoples.

References:
1. Ravi Shankar, (2009), Service Marketing- Excell Books
2. S.M.Zha, Service Marketing, Himalaya Publishing House.
3. Rajendra Nargundkar, Services Marketing 2nd Ed- -Tata Mc Graw Hill
companies
4. Govind Apte, Services Marketing - Oxford
5. Report of Economic Survey of India 2010-11
6. Report on service and hotel Industry pp-2
7. Survey report from Central Statistics Office
8. http://indiabudget.nic.in