Unit 13 : Hospitality Provisions in TT-Btechnd

TASK 3 Development of Hospitality Businesses

Developing rationale for a selected project

An establishment of budget hotel at a famous beach destination like Goa in India can be considered as a selected project for this section.

Goa is a state of India which has become a famous coastal destination and was able to witness more than 3 million tourists to it in year 2013. There is a very good opportunity for the hospitality sector in Goa. Various luxurious and world class resorts and hotels are present in Goa. Leela, Taj and Holiday Inn are some of the example of luxurious hotels in Goa which observe 100% occupancy for their services during the peak season which is from the month of October to January. The tariff of the services from these hotels are on higher side, but still they see 100% occupancy as tourist accept these tariffs to stay there. However, looking as an expert of hospitality sector, there are no budget hotel chains in Goa for the tourist who have budgetary constraints. Such tourists have to dependent only on the makeshift apartments and local lodges available in the area to stay during their visit to the place.

Makeshift apartments are provided by local residents and in this manner, local person earns more money using their properties. Such accommodation is cheaper for the tourists but the issues of quality food, hygiene etc come in the way of tourists. The professional way of accommodation is missed by such facilities. But due to the cheaper facility, people mostly adopt such facilities due to unavailability of budgetary facilities for tourists. It can be easily seen that there are two extreme ends for the accommodation facilities in Goa. There are facilities which can be offered by only few tourists due to high budget and on the other hand there are facilities which are under budget but quality is not as per standards. So, there is an opportunity to fill this gap and a budget hotel can be established to provide budgetary accommodation in a professional manner. It is also necessary to understand the meaning of budget hotel before going forward. A budget hotel is where the tourists have the option to avail a particular type of service or luxury depending on their budgets. All basis services are provided to the tourists at a reasonable cost. So, in this manner, these hotels provide economic service and fulfill all basic requirements of the tourists in a professional manner. However, the standard of such a hotel ca not be matched with that of a high end hotel chain.

Above discussion about the hospitality industry in Goa, it can be easily analysed that there is a good scope of establishing budget hotels in Goa for attracting middle class of tourists visiting place. It is necessary to understand the requirement of a feasible location before going forward to establish a budget hotel. A perfect location for such a hotel would be the mostly visited areas by such visitors for the accommodation. There are two places in area which tourists prefer for budget accommodation i.e. South and North Goa. South Goa is mostly dominated by the various international groups of luxury hotels. North Goa is mostly visited by foreign visitors like Russians (Marqua, 20130.

North Goa attracts most of the Indians comprising of fresh employed people and the college students. Various kinds of lodge, rented apartments and hostels are available in this area for such visitors to get accommodation at a relatively low cost. It can be easily analysed that this area would be perfect for the establishment of budget hotel in Goa. As the place is finalized, next aspect to look upon is the tariffs for the occupancy. Rooms on the basis of single and double occupancy can be built to accommodate all type of groups in the hotel. Third person can also be accommodated in double sharing room with extra cost and an extra bed in the room to lowering down the costs for tourists. As it is budget hotel, there will be no room service. However, some basis requirements like snacks, tea or water can be provided to the tourists on the order over the phone call and after the order is ready, customer will go to the counter to collect the order. However an option to avail the room service can also are provided at added cost.

P3.2- Developing plan

Human resource plan is most important requirement for any kind of hospitality business. There are mostly three aspects in hospitality business i.e. quality of service, cost of service and human resource behaviour along with their commitment. Many hotels are famous and are known worldwide just because of the supportive staff who offer customer friendly services. It is well known fact that any hotel can have any big brand association with it but if the human resource within the hotel is not as per the required standards, it is highly possible that customers will not come back to the hotels due to the organisational behaviour of the support staff. So, recruiting right people and training them according to a defined standard to synchronize their actions according to the organization is most important for any hotel.

It is necessary to have a defined hierarchy of human resource within the organization to manage all the staffs of the hotel. The hierarchy of human resource with various levels is depicted in below mentioned figure. Organizational structure need to be multi layered according to the tasks and responsibilities defined to all the staff members. In budget hotel all the responsibilities would be defined for all the human resources according to their tasks and accountability should be there with each individual. General Manager of the hotel will overlook all the operations and allocations of human resource within the hotel. General Manager can be the main decision maker within the hotel for all kinds of operations. However, he will not be responsible for day to day operations. The responsibilities of day to day operations of the hotel can be assigned to the senior assistant manager of the hotel.He will be responsible for all the operations within the hotel and would give a weekly status report to the general Manager of the hotel so that directed decisions can be taken by the General Manager for the activities of the hotel. In this manner, senior assistant manager can be understood as a supportive role of GM within the business (Baum, 1995).

There would be five main divisions under senior AM within the hotel i.e. Food & beverages manager, personnel Manager, accountant manager, Accommodation Operations Management , and Maintenance manager. There would be deputy assigned under all these roles. Deputy would take the responsibility of the seniors in their absence to ensure the uninterrupted services. F & B division and Operations division will be provided with the maximum level in hierarchy. Taking an example, there would be a team consisting of six people under deputy operation manager who would report him about the daily operations related to their departments. It will also include receptionist, booking office officer and housekeeper etc. All these people form main and ground level core team for the daily operations of hotel.

There would be three separate divisions under the food & beverages team i.e. hotel restraint, kitchen and banqueting. Such kind of division is necessary for ensuring clearly defined responsibilities. As it would be a restaurant cum hotel, it would also cater to the eating needs of random guests also. There would also be a banquet hall within the hotel premises for conducting various kinds of event in case of requirements from the customers. There would be a separate team for the kitchen for hall in order to ensure uninterrupted food & beverages services to the customers. There will be different people to take charge of the bare, food stores and cellars etc under F & B manager. Maintenance manager would be responsible for ensuring cleanliness and hygiene within the hotel with the help of maintenance staff reporting to him.

With the above discussion, it can be easily figure out that human resource within the organization play an important role in the success of a hotel and various lines of authorities within the hotel will ensure the proper services to the customers. It is much important for the organization to define the human resource policies which are for the benefits of the employees so that a healthy environment within the hotel in ensured (Baum, 2002)


Hospitality sector is very important sector and has interrelations with the travel and tourism sector. Both these sectors are so much linked to each other that these can’t be separated. Any kind of positive or negative influence on one sector influences another sector in similar manner. Hospitality sector provides service and bring the businesses to the various governments. Hospitality sector play a crucial role in the travel and tourism sector and various kinds of integration are there in the market. The plan for the establishment of a budget hotel can ensure accommodation for the budgetary constraints tourists in Goa, India. This report helped in the implementation of all the concepts learned during the course.


Kotler, P., Kotler, P., Bowen, J. T., &Makens, J. C. (2006) Marketing for hospitality and tourism, India: Pearson Education.

Baum, T. (2002). Skills and training for the hospitality sector: a review of issues.Journal of Vocational Education and Training, 54(3), 343-364.

Hsu, C. H., &Marqua, J. J. (2013) Tourism: The Business of Hospitality and Travel, Pearson Higher Ed.

Campos-Soria, J. A., González García, L., &Ropero Garcia, M. A. (2005).Service quality and competitiveness in the hospitality sector. Tourism Economics, 11(1), 85-102.

Litvin, S. W., Goldsmith, R. E., & Pan, B. (2008).Electronic word-of-mouth in hospitality and tourism management. Tourism management, 29(3), 458-468.Order Now

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