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  • Subject area(s): Marketing
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  • Published on: 14th September 2019
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 The hospitality industry is an extensive part within service industry that includes lodging, event planning, theme parks, transportation, cruise, and additional fields within the tourism industry. The hospitality industry is a highly profitable industry. A hospitality areas such as a restaurant, hotel, or an amusement recreation area/playground area involves many groups such as facility maintenance and direct functions i.e., servers, housekeepers, porters, kitchen workers, bartenders, management, marketing, etc.

The most essential things of human survival are food, accommodation and cloth. Hotel industry alone provides two basic things: food and accommodation. Hotel is a part of the hospitality industry. Hotel is often referred as a "Home far from home". A hotel is a place where you pay for room to sleep in and where you can eat or a hotel is a place that provides paid places to stay on a short-term basic.

Hotel is the place where the tourist being the traveler and become a guest. Hotel usually gives you a full range of accommodations and services, which may includes rooms, banquet facilities, lounges and entertainment facilities. It is considered as a market whose main aim is to make profits for the hoteliers, though this may change at times. Classic hotels provide rooms, agapes and restaurants. Hotels get revenues also from telephone call services, routine laundry services, travel services, internet services and recreational, entertainment activities in the hotels.


The hotel is maybe one of the oldest sectors in the world. The history of hotels is linked closely to cultures of mankind. According to some documents, the first inn was appeared in the sixth century when some couple provided large halls matter to drink and the complete service was done by owners. To other documents, since early times, the Greeks developed thermal bathrooms in villages for bathing. Later, the Romans built mansions to provide accommodation for the federal government business. The first thermal baths in England, Switzerland and the Middle East were {produced by the Romans. In the middle Ages, religious built inns to cater for their colleagues on the road. In the beginning, inns would not offer meals. They will only provided shelter and allowed horses to be changed more readily. Travelling became popular and the impact of the professional trend in England spread extensively that led to the change from social or governmental travel to business travel.

The need for quick and clean service constantly was emerged. Some of the best hotels of the United States were built in this period but the real growth arrived the early of 20th century. It engaged big investments, big earnings and trained professionals to manage the hotel business. Nowadays, architects, designers, engineers, managers, etc realize that taste of friends could be different, regarding with their} wishes or needs. Consequently, they have to catch new trends specify better criteria, present modern standards in order to enhance the quality of life in hotels.


Hotel operations vary in size, function, and cost. Most hotels and major hospitality companies that operate hotels have set widely accepted industry standards to classify hotel types.

Upscale luxury

An upscale full service hotel facility that offers luxury amenities, full service accommodations, on-site full service restaurants, and the highest level of personalized and professional service.

Full service

Full service hotels often contain upscale full-service facilities with a large volume of full service accommodations, on-site full service restaurant(s), and a variety of on-site amenities such as swimming pools, a health club, children's activities, ballrooms, on-site conference facilities, and other amenities. Examples include: Holiday Inn, Sheraton, Westin, Hilton, Marriott, and Hyatt hotels.

Historic inns and boutique hotels

Boutique hotels are smaller independent non-branded hotels that often contain upscale facilities of varying size in unique or intimate settings with full service accommodations. Boutique hotels are generally 100 rooms or less. Some historic inns and boutique hotels may be classified as luxury hotels.

Focused or select service

Small to medium-sized hotel establishments that offer a limited amount of on-site amenities that only cater and market to a specific demographic of travelers, such as the single business traveler. Most focused or select service hotels may still offer full service accommodations but may lack leisure amenities such as an on-site restaurant or a swimming pool. Examples include Crowne Plaza, Courtyard by Marriott and Hilton Garden Inn.

Economy and limited service

Small to medium-sized hotel establishments that offer a very limited amount of on-site amenities and often only offer basic accommodations with little to no services, these facilities normally only cater and market to a specific demographic of travelers, such as the budget-minded traveler seeking a "no frills" accommodation. Limited service hotels often lack an on-site restaurant but in return may offer a limited complimentary food and beverage amenity such as on-site continental breakfast service. Examples include Ibis Budget, Hampton Inn, Aloft, Holiday Inn Express, Fairfield Inn, Four Points by Sheraton, and Days Inn.

Extended stay

Extended stay hotels are small to medium-sized hotels that offer longer term full service accommodations compared to a traditional hotel. Extended stay hotels may offer non-traditional pricing methods such as a weekly rate that cater towards travelers in need of short-term accommodations for an extended period of time. Similar to limited and select service hotels, on-site amenities are normally limited and most extended stay hotels lack an on-site restaurant. Examples include Staybridge Suites, Candlewood Suites, Homewood Suites by Hilton, Home2 Suites by Hilton, Residence Inn by Marriott, Element, and Extended Stay Hotels.

Timeshare and destination clubs

Timeshare and Destination clubs are a form of property ownership also referred to as a vacation ownership involving the purchase and ownership of an individual unit of accommodation for seasonal usage during a specified period of time. Timeshare resorts often offer amenities similar that of a Full service hotel with on-site restaurant(s), swimming pools, recreation grounds, and other leisure-oriented amenities. Destination clubs on the other hand may offer more exclusive private accommodations such as private houses in a neighborhood-style setting. Examples of timeshare brands include Hilton Grand Vacations, Marriott Vacation Club International, Westgate Resorts, Disney Vacation Club, and Holiday Inn Club Vacations.


A motel, an abbreviation for "motor hotel", is a small-sized low-rise lodging establishment similar to a limited service, lower-cost hotel, but typically with direct access to individual rooms from the car park. Motels were built to serve road travellers, including travellers on road trip vacations and workers who drive for their job (travelling salespeople, truck drivers, etc.). Common during the 1950s and 1960s, motels were often located adjacent to a major highway, where they were built on inexpensive land at the edge of towns or along stretches of freeway.

Motels are still useful in less populated areas for driving travelers, but the more populated an area becomes, the more hotels move in to meet the demand for accommodation. Many of the motels which remain in operation have joined national franchise chains, often rebranding themselves as hotels, inns or lodges.

Commercial Hotel: A chain of hotels which have standardized service and amenity structures.

Airport Hotel: Hotel near the airport but it does not have to be connected or adjacent to the airport. It could be located up to five miles away. Most airport hotels have a shuttle to and from the terminals

Conference Center: A specialized hotel (usually in a less busy but easily accessible location) designed and built almost exclusively to host conferences, exhibitions, large meetings, seminars, training sessions, etc. A conference center often also provides office facilities and a range of leisure activities.

Economy Hotel: A hotel offering few amenities.

Suite or All-Suite Hotel: A hotel in which every room has an attached living room and/or kitchen.

Residential Hotel or Apartment Hotel:  A serviced apartment complex uses a hotel-style booking system. It is similar to renting an apartment, but with no fixed contracts and occupants can 'check-out' whenever they wish.

Casino Hotel: A business establishment combines a casino and a hotel or a building that houses both a hotel and a casino.

Resort Hotel: A hotel caters primarily to vacationers and tourist and typically offers more recreational amenities and services in a more aesthetically pleasing setting, than other hotels. These hotels are located in attractive and natural tourism destinations and their clientele are groups and couples that like adventure with sophistication and comfort. The attractions vary depending on the region and some might offer golf, tennis, scuba diving and, depending on the natural surroundings, may also arrange other recreational activities.

 By Star Ratings, hotel has been classified into several types as follows:

 ï¿½ï¿½ï¿½ Five Star Hotel

��� Four Star Hotel

 ï¿½ï¿½ï¿½ Three Star Hotel

��� Two Star Hotel

 ï¿½ï¿½ï¿½ One Star Hotel

 ï¿½ï¿½ï¿½ No Category Hotels

 Five Star Hotel: Luxury hotels; most expensive hotels/resorts in the world; numerous extras to enhance the quality of the client's stay, for example, some have private golf courses and even a small private airport.

 Four Star Hotel: First class hotels; expensive (by middle-class standards); has all of the previously mentioned services; has many "luxury" services, for example, massages or a health spa.

Three Star Hotel: Middle class hotels; moderately priced; has daily maid service, room service, and may have dry-cleaning, internet access and a swimming pool.

 Two Star Hotel: Budget hotels; slightly more expensive; usually has maid service daily.

One Star Hotel: Low budget hotels; inexpensive; may not have maid service or room service.

No Category Hotels: These hotels include motels, cottages, bungalows and others with limited services. However, these hotels represent 41% of the total hotel market share.

ITC Hotels is second largest hotel chain in India with over 100 hotels. ITC Hotels has an exclusive tie-up with Starwood Hotels and Resorts in bringing its premium brand LUXURY COLLECTION to India. ITC Hotels is part of the ITC Limited i.e.  India Tobacco Company. ITC Hotels is regularly voted amongst the best employers in Asia in the hospitality sector.

ITC limited entered the hotel business on 18 October 1975 in Chennai which was rechristened ���ITC- Welcomgroup Hotel Chola (now renamed My Fortune, Chennai). In 2006, ITC hotels owned 100 hotels in 75 locations. ITC Hotels have a reputation of playing host to visiting royalty and world leaders time and again.

The objective of ITC limited entry into hotel industry was rooted in the concept of ���creating value for the nation���. ITC choose hotel business to earn high level of foreign exchange, create tourism infrastructure and to generate employment. ITC Hotels took its first step towards international expansion with super premium luxury hotel in Colombo, Sri Lanka. ITC also tied up with RP Group Hotels and Resorts to manage 5 hotels in Dubai and India under ITC Hotel 5-star ���welcomHotel��� brand and the mid market to upscale ���fortune��� brand.ITC Grand Bharat is their latest hotel opened in Manesar, Gurugram.

In my research I took welcomHotel Dwarka for survey, which is located in the district of South West Delhi in India. The hotel is located extremely near to Indira Gandhi International Airport.


1. Shortage of skilled workforce or employees: One of the biggest challenge face the hospitality industry is the shortage of quality workforce in different skill levels. The industry has failed to retain professionals. Employees in the Indian hospitality industry are not as well rewarded. Thus we can see that employees are moving to the other countries with some years of experience for better living conditions and rewards.

2. Retaining quality workforce: through training and development in the hotels industry is a problem and attrition level are too high. One of reason is unattractive wage packages. Because there is high in service sector, most of the employees are joining other sectors like retail and aviation.

3. Technology: Technology changes time to time so it���s difficult for hotels to keep up before they adopt one piece of technology another idea is already in the market and everyone is using that technology.

4. Dealing with complicated customers: Customer satisfaction is the main objective of most hotels then second profit. But now a day it���s difficult to predict and understand customer. Managers have to struggle to understand the customers need from the moment they book hotel and try to solve their complaints. In hotels there is not just one customer but hundreds of them with different needs and expectations.

5. High competition: The rate of growth in hospitality sector is high. This means that the competition has also grown. People believe that the increase in competition has led to loss in revenue for their business. Population growth and higher consumer demand are some factor.

6. Lack of productive chefs and managers: Finding the best cooks, labors and managers is a difficult task especially for small hotels and large hotels can recruit professional cooks at high cost. Therefore its difficult job for the small budget hotels to find right person.

7. Cleanliness issues: Sometime customer face cleanliness problem. Hotels make sure the rooms have clean, odor free and spacious conditions. It would help to attract more visitors to hotel. Some hotels hire a professional cleaning service for best result.

8. No proper transportation; hotels should be always ready to provide transportation for all pick up points. But some hotels face shortage of transportation and they unable to provide proper facility, it create difficulty for customer or guest. Transportation facility is must for hotels.

9. Security problem: some different types of security issues are:

��� General theft and other crime

��� Violence

��� Terrorism

��� Robbery

��� Credit card frauds

��� Cyber crime

��� Sexual harassment

��� Racial discrimination

��� Food poisoning

10. Poor infrastructure: Poor infrastructure is one of the major issues faced by hotel in India in elevating standards Sometimes poor infrastructure is demotivating for guest. To attract guest or customers hotel should focus on their infrastructure.

11. Financial issue: Sometime hotels have to deal with financial crisis. It���s difficult for them to cover damages or losses and they lack in customers��� expectation

12. Taxation: In India hotels industries facing high taxation issues. ���unfortunately hotels projects are being viewed as juicy pieces of enterprise through which the maximum can be extracted through taxes or otherwise���, Thacker said .


��� To understand the issues and challenges faced by hotels.

��� To study how hotels deal with these issues.

��� To identify the issues faced while dealing with customers.


The scope of this study is to know about the issues and challenges faced by hotels in hospitality industry. To analysis how these problem affect their employees and customers.


��� As the data is primary data its accuracy cannot be judged.

��� Field work limited to particular city thus results cannot be applied to entire industry.

��� The survey results may get affected due to of certain biases.

��� Random Sampling error can be present leading to variations in results.

Review of literature

There are a lot of studies available on various aspects of hospitality industry, discussing how hospitality industry is helpful for employment, foreign exchange and economic growth and development. The growth and development of both hotels and tourism depends upon each other. Hotels suffer from some different problems like higher taxation, government laws, unskilled workforce etc.

In 1957 rates and hotel standard committees was created by government of India for classification of hotels on international standards based  in specific criteria, to develop suitable rate structure, to research whether any legislation are necessary for the hotel and any types of assistance required to develop hotel. The main recommendation of the committee were the hotels should classified on star basis, hotels with various luxuries and amenities should be on top and followed by lesser amenities. The hotels should be classified as 1 to 5 stars, the use of Hubert formula for rate structure in hotel as recommended by American hotels association, with some required modification to Indian conditions, they also recommended to criterion to classify the hotels and the responsibility to classify hotels should be given to the department of tourism.

 In 1962 hotels classification committee made extensive tour of the whole country and inspected 298 hotels and 124 restaurants across the country. Out of these only 185 hotels were registered and classified in different star categories. The committee suggested 29 recommendation and all were accepted by government. One of the recommendation was the classified hotel should be reviewed at least once in 3 years.

In 1967 hotel review and survey committee was to review the classification of all the hotels situated at various locations, including newly made and willing to be classified. Committee estimated that at the end of 1981, the requirement of rooms in 3, 4 and 5 star hotels will be 29024. They recommended that a permanent committee made to inspect the hotels. In 1967 Mahadev suggested different plan decisions altering the spatial trend. In 1975 Singh, T.V. assessed hotels capacity at twelve various locations in Uttar Pradesh his main finding was that the domestic tourist are neither choosey about accommodation nor demand for better service. But the foreign guest demand for superior service.

In 1978,A.K. Bhatia made some recommendation regarding the level if demand for accommodation service. He recommended that while calculating the requirement of rooms different variables should be considered like duration of stay and occupancy rates. If the occupancy annual would be higher than numbers of room required for visitors would be high.

Guhu(1981) suggested that hotels should provide basic service beside doing promotions of rooms and food etc. ways of maximum utilization and increase tourist inflow suggested by him.

Nankarni, M.M. (1981) said that because of avoiding building infrastructure is main reason for setback to hotels. He pointed that there is still shortage of room. There should be proper planning.

In 1986, national committee on tourism suggested that pertaining to accommodation were offer a package of monetary, fiscal and other incentives to be provided to stimulate investment.  

The study of Dennis L Foster (1992) emphasized on practical job related skills as well as the general and technical knowledge that are required by personnel in hotel industry. The study covers the pricing strategies to hotels and buying behavior of tourist influenced.

In 1995 Nancy M. Dixon studied the approaches of applying the quality process to training and makes clear cut case for the evaluation. This section deals with management, pros and cons of various performances tools and some others. It also contains retention of employees.

In 1996 B.S. Bhatia and G.S. Batra highlight the issues in human resource management. HRD keeps in view the global challenges, growing complexity of business and increased competition and importance of participation of workforce in management. It also covers the different techniques for quality improvement

In 1998 G.S. Batia and A.S. Chawla covers the importance of tourism in national economy. They said that we cannot export real wealth of our country, but we can attract more and more tourist in our country. They studied different aspects if Indian tourism and they found that there is lack of facilities for teaching tourism as field of study.

In 2000 Ashok Chanda and Shilpa Kabra studied the strategic approaches that need to change according to environment. The changes required in policies, practice and system. The study looks the changes in environment and its impact on the performance of employees. Companies should train their employees time to time for better performance.

In 2005 P.C. Sinha focuses on various issues pertaining to modern international tourism like tourism research, education, marketing and policies etc. It makes a comprehensive analysis and evaluation of the process of development and different strategies made for its growth and development.

Employees��� understanding and perception of the information related to the work to be done in accommodation establishments, and the clarity of employees��� roles within the organization, in other words clear expression of the expectation of the organization from the employees play very significant roles in the relationship between employees and customers. The employee who has all the information needed for the work to be done would be able to increase the quality of service by managing relationships with customers more effectively due to increased self-confidence and would contribute to the positive perception of customers with regard to the service quality (Argenti, 2003; Sl��tten et al., 2010; Demir, 2011; Zulhamri & Claina, 2012).



To study the issues faced by hotels in elevating standard and know the views of people, a survey was conducted. The source of data through which the survey is done is primary data. A questionnaire was designed and distributed in order to gather the primary data. The target audience were guest of the few hotels with different perceptions. The sample size undertaken is 14 responses.  In order to verify the authenticity of the data collected, primary data has been backed by a justified amount of secondary data. The tools used to analyze the obtained data are bar graphs and simple description of people���s views.

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