An organizational study report on Leela Group of Hotels Submitted in Partial fulfillment of the requirement for the award of the Degree of MASTER OF BUSINESS ADMINISTRATION 2007-2009 BY XXXXXXXXXX ENROLLMENT NUMBER: XXXXXXXXXX COURSE CODE: XXX Under the Guidance of Mr. xxxxxxxxxx From 02/11/08 To 02/12/08
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An organizational study report on Leela Group of Hotels
Submitted in Partial fulfillment of the requirement for the award of the
Degree of
MASTER OF BUSINESS ADMINISTRATION 2007-2009
BY
XXXXXXXXXX
ENROLLMENT NUMBER: XXXXXXXXXX
COURSE CODE: XXX
Under the Guidance of
Mr. xxxxxxxxxx
From 02/11/08
To 02/12/08
2
DECLARATION
I xxxxxxxxxx hereby declare that the project titled “An Organizational Study
Report on Leela Group of Hotels”, is an original work done by me under the
guidance of Mr. xxxxxxxxxx, Leela Kempinski Kovalam Beach Hotel, for the
partial fulfillment of the award of the degree of Master of Business Administration
2007-2009. Hereby I declare that the project report has not been submitted to any
institution or university for the award of any degree / diploma earlier.
Mr.xxxxxxxxxx xxxxxxxxxx
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Acknowledgement
I humbly make use of this opportunity to thank all those who helped me for
successful completion of my project work.
I would like to thank all my faculties for their support and guidance which
helped me a lot to finish my project successfully.
I take this opportunity to convey my regards and gratitude to the following
persons for their constant support to me.
Above all I wish to thank the Almighty for the blessings showered on me for the
completion of my project.
Mr. xxxxxxxxxx – (Leela Kempinski-Kovalam Beach Resort)
Mr. xxxxxxxxxx (Leela Kempinski-Kovalam Beach Resort)
Mr. xxxxxxxxxx (Leela Kempinski-Kovalam Beach Resort)
Mr. xxxxxxxxxx (Leela Kempinski-Kovalam)
Mr. xxxxxxxxxx (Leela Kempinski-Kovalam)
xxxxxxxxxx
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CONTENTS
Introduction to Tourism Page Nos
1. Rise of Hospitality 5 - 22
2. History of Leela Group 24 - 27
3. Leela At a Glance 28
4. Departmentalization 29
5. Kitchen/ Production, F&B Department 29 - 32
6. Housekeeping Department 32 - 35
7. Front Office Department 35 - 39
8. HR Department 40 - 42
9. Training Department 42 - 44
10. The Club 44 - 46
11. Finance Department 46 - 48
12. Sales & Marketing Department 48 - 51
13. Purchase Department 51 - 52
14. Engineering Department 53 - 54
15. Security Department 54 - 56
16. Spa 57
5
INTRODUCTION TO GLOBAL TOURISM INDUSTRY
A few points are worth noting about the definition of the word “Tourism”.
First, in common English parlance, “tourism” refers only to leisure activities.
The WTO definition uses the word to mean all travel, for a number of
possible purposes of which leisure is only one. Business trips when one is
paid from the home country are included in this definition, however. Travel
for the purpose of study is included; thus foreign students should be
counted as tourists as long as they return to their home country at least
once a year. Travel for medical, religious, and other purposes is also
included.
Tourism is one of the largest industries worldwide, accounting for 10
percent of the world GDP ($7-8 trillion) and 10 percent of the US GDP ($1.2
trillion dollars) in the year 2007. For many countries, such as the Bahamas
and other island economies, it is the main source of income and
employment. About 240 million people worldwide are employed in travel and
tourism.
The U.N. World Tourism Organization states that tourism is one of the best
ways for poor countries to earn foreign currency. Tourism is the second
largest source of foreign dollars (after petroleum) for the world’s 40 poorest
countries. Government and multilateral policies directly impact tourist
activities. Government can encourage tourism through regulations, official
statements, collaborations, and incentives across multiple governmental
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bodies. The United Nations World Tourist Organization (UNWTO) serves as a
global forum for tourism policy issues. The UNWTO focuses on helping
developing countries with sustainable tourism policies and provides
technical and financial assistance to countries seeking to attract foreign
tourists and educate tourism specialists.
Increased ease of travel and disposable income has lead to increased
tourism around the world, especially to locations that were once remote and
unreachable. There are actually some lead forces helping the industry to get
faster growth on the global scale. Some factors for the burgeoning growth of
the international tourism are as follows.
TOURISM GROWTH FACTORS
A number of factors are responsible for the rapid growth and development of
the tourism industry in the Asia Pacific region. These include the strong
economic growth, increase in income, breakdown of political barriers, easing
of travel restrictions, more affordability of air transport; liberalization
policies form the national governments and focused marketing campaigns.
These factors are expected to accelerate the growth of tourism over the next
decade.
1. Economic Growth: The rapid growth of the tourism industry is a
reflection of the booming and diversified economies. Economic growth has
ranged between averages of 6% to 9% between 2000 and 2009 for some
Asian countries, in contrast to 3% to 4% growth achieved by the rest of the
world. Strong economic growth is attributed to a focus on market reforms,
7
export oriented industries, stable currencies, diversification of the economy,
and massive injection of foreign capital. Billions of dollars are being poured
into the tourism infrastructure to accommodate a burgeoning tourism
industry. This has intensified trade, investment, and travel throughout the
world.
2. Political Stability: In recent 60 years time, the World has become more
or less politically stable especially after the Second World War II. The
opening of national borders of all most all countries to both inbound and
outbound travel, and the breakdown of political barriers, will provide
tourists with opportunities to pursue their leisure interests.
3. Easing of Travel Restrictions: Historically, the demand for and
freedom to travel increases when travel restrictions are lifted or eliminated.
With strong demand for travel, a number of countries have lifted travel
restrictions either as a whole or with certain minimal restrictions. The
lifting of restrictions in late 1980’s contributed to a surge in the demand for
outbound travel.
4. Affordability of Air Transport: Over the last 2 decades the air
transport has witnessed tremendous developments. Since the cost for a
travel by air has been on downward trajectory more and more people are
able to opt foreign tour trips. This also led to the growth of multinational
business enterprises. Competition among the airline companies to get
maximum market share in respect of domestic and international air travel
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has resulted in the decline of prices. This actually proved to be beneficial for
the people as they can go anywhere at the most competitive fare.
5. Technology: Technological developments have significantly impacted the
travel industry. Developments in large and more fuel efficient aircraft such
as the Boeing 777, Boeing 747, and Airbus A340, Airbus A380 have lowered
operating costs, increased airline seat capacity, and raised the comfort and
safety of air travel. These aircraft facilitate travel over longer distances and
fly non-stop over trans-Atlantic and Pacific routes. Lower operating costs,
coupled with cheaper airfares, have reduced the cost of travel, thereby
making air travel the dominant mode of travel across oceans. Technological
Developments in the field of telecommunication also got its share of
boosting the industry; with the Internet becoming more and more popular
people either tourists or tourist service providers can reach each other
without geographical barriers.
9
Tourism Industry during the recession and post recession
periods
During Recession Time: -International tourist arrivals for business,
leisure and other purposes are estimated to have declined worldwide by 4%
in 2009 to 880 million. This represents a slight improvement on the
previous estimate as a result of the 2% upswing in the last quarter of 2009.
In contrast, international tourist arrivals shrank by 10%, 7% and 2% in the
first three quarters respectively. The global economic crisis aggravated by
the uncertainty around the H1N1 pandemic turned 2009 into one of the
toughest years for the tourism sector.
• Europe ended 2009 down 6% after a very complicated first half (-10%).
Destinations in Central, Eastern and Northern Europe were particularly
badly hit, while results in Western, Southern and Mediterranean Europe
were relatively better.
• Asia and the Pacific Arrivals declined by 7% between January and
June, the second half of 2009 saw 3% growth reflecting improved
regional economic results and prospects.
• Americas: - The performance was more sluggish in the other sub-
regions, with the (H1N1) influenza outbreak exacerbating the impact of
the economic crisis.
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• The Middle East: 6 % decline in the tourist arrivals in the first three
quarter of 2009. There was also a steep fall in the leisure spending of
people in the region.
• Africa: - was a robust performer, with sub-Saharan destinations doing
particularly well.
Post Recession Time: UNWTO forecasts a growth in international
tourist arrivals of between 3% and 4% in 2010. The International Monetary
Fund (IMF) has just recently stated that the global recovery is occurring
"significantly" faster than expected, as compared with its October
assessment which already counted on a clear return of economic growth in
2010 (+3.1% worldwide, with stronger performance for emerging economies
at +5.1%, alongside a more sluggish one for advanced economies at +1.3%).
Asia is expected to continue showing the strongest rebound, while Europe
and the Americas are likely to recover at a more moderate pace. Growth is
expected to return to the Middle East while Africa will continue its positive
trend benefiting from the extra boost provided by the 2010 FIFA World Cup
in South Africa.
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TOURISM FROM INDIAN OUTLOOK
Tourism is the basic and most desirable human activity describing the
praise and encouragement of all people and government.
Hotel industry is an essential part of tourism. The expansion of tourism is
well inevitable bringing out development of the hotel industry. Hotel
industry is closely linked with the tourism industry that it is responsible for
about 50% of the Foreign exchange earning from tourism trade and
enterprises. The rising volume of tourism influx brought into light, the
shortage of hotels in important tourists Centers, keeping in view the
changing standards in the international hotel keeping. The Indian industry
has to make a number of improvements. It is not enough to have adequate
hotel accommodations, it is equally necessary to have at various levels, low
priced, moderately priced, high priced, and a few luxury hotels.
Hotels may be categorized depending upon factors such as
1. Location
2. Categorization according to plan
3. Categorization according to number of rooms
4. Categorization by type of clientele
5. Categorization by length of stay of guest
6. Categorization by the facilities the hotel offers.
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The devaluation of the Asian currencies, the Mumabi Terror Attack and
followed by the global economic crisis had affected growth in the tourism
industry. The situation is gradually moving back to normal with the tourist
arrival figure marginally increasing. The industry is growing at a rate of 9%
with the political and economic stability being more clearly visible, both
tourist as well as business arrivals are likely to gather momentum in the
remaining part of the year. The Indian hotel business focuses largely on
foreign tourists with only 30% of the business coming from the domestic
business and the leisure travelers.
The tourist arrivals in India are seasonal in nature, with the best season
being from September to January followed by a steep fall till May. The
period June to September gains momentum again. The slack season is
generally used for renovation work and the period is characterized by
discounts to attract clients. High capital expenditure acts as an entry
barrier in the industry with the availability of prime land at economically
viable rates being a major constraint. The gestation period is long and break
even normally takes five to eight years to happen. Due to this the
established players like Indian hotels, EIH Associated Hotels Limited, etc.,
have an advantage over foreign majors as they already have good
establishments at prime locations.
13
The following table indicates the number of FTAs (Foreign Tourist
Arrivals in India.
Foreign Tourists In India (Number)
2001 2002 2003 2004 2005 2006 2007 2008 2009
January 283750 228150 274215 337345 385977 459489 532088 584765 435820
February 262306 227529 262692 331697 369844 439090 498806 560658 545230
March 248965 225558 218473 293185 352094 391009 444186 509926 425525
April 185338 155378 160941 223884 248416 309208 333945 369677 372840
May 151098 132998 141508 185502 225394 255008 267758 290785 215730
June 176716 143100 176324 223122 246970 278370 310104 344526 285160
July 224432 186432 225359 272456 307870 337332 377474 - 327115
August 196517 161477 204940 253301 273856 304387 360089 - 258450
September 162326 151721 191339 226773 257184 297891 325893 - 315240
October 181605 212191 260569 307447 347757 391399 440715 - 398519
November 209685 243566 290583 385238 423837 442413 510987 - 515260
December - - 319271 417527 479411 541571 575148 - 591584
Total 2282738 2073025 2726214 3457477 3918610 4447167 4977193 2660337
_______
4686464
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GROWTH DRIVERS OF INDIAN TOURISM
1. Economic Affluence: The most important growth driver is the robust
economic growth that has been witnessed in the country. India’s GDP has
been growing at a rate of 6% since the liberalization of economy in 1991 and
now advancing at a pace of over GDP 8.5% per annum (excluding the last
one and half year from the mid of 2009). At 8.5% CAGR, India’s GDP would
almost triple from US$ 1200 Bn to US$3500 Bn by 2023.
Currently, India is the 12th largest economy in the world in absolute terms
and is expected to overtake most of the European nations in the next 15 to
20 years. It will eventually become the world’s 3rd or 4th largest economy by
2050. Despite the recent economic downturn, various industry sources still
peg the economic growth at over 6%. India’s strong economic growth has
caused the GDP per capita to increase rapidly over the past 5 to 10 years. At
the current rate, the GDP per capita in 2013 would be double of what it was
in 2003.
More and more families are expected to leave the deprived or aspirers
category (annual household income less than US$ 4200) and join India’s
burgeoning middle class. By 2025, the Indian middle class is expected to
constitute 46% of the Indian population. Subsequently, discretionary
spends would be going up and this bodes well for the tourism sector.
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2. Low-Cost Carriers: The tourism industry has been supported by the advent
of Low-Cost Carriers (LCC) in the airline space. These low-cost carriers
have brought down the cost of travel and boosted the growth of domestic air
travel immensely. The advent of low-cost airlines which cut down on
expensive customary in-flight passenger services has opened-up air travel
for the middle class. It is accounted for the increasing share of LCC from
33% to 47% between 2006 and 2008. The advent of LCC has spurred
domestic air travel to grow from 11 Million travelers to close to 36 Million
travelers in the last decade. Operational airports in the country have gone
up from close to 40 airports in 2004 to 81 airports at present.
The airports of several metros are undergoing renovation and re-positioning.
Airline tickets, tour packages are all set to go cheaper with the 2% reduction
in service tax. State-run oil companies have slashed Aviation Turbine Fuel
(ATF) prices by 7%, the 11th reduction since Sep last year.
The salient features of this package would be to cut airport charges for a
limited period by 50 %, to remove the 8% excise duty on ATF and to reduce
the charges which the airport operator charges from the oil companies,
leading to enhanced performance.
With the Airports Authority of India (AAI) installing systems like Standard
Instrument Departure (SID) and Star Terminal Arrival Routes (STAR) for
the first time in India at the Mumbai airport, air travel within the country is
16
likely to become faster and more convenient. In addition, the new
installation is expected to help airlines save on fuel.
3. Upbeat support of India Government:
In September 2002, the tourism department unveiled a new campaign called
‘Incredible India’ to promote Indian tourism globally. The first phase of the
campaign, for a period of three months, was jointly funded by the
Government of India and Experience India Society, an association of travel
agents in India. The campaign that focused on the Himalayas, wildlife, yoga,
and ayurveda, was widely promoted in the print media, television, and the
internet. The television campaign was telecasted on CNN, BBC, and other
popular channels across the world.
The government has identified 37 destinations for tourism development and
over the last two years, over 600 projects in 300 tourist destinations have
been developed with an investment of US$ 20 Million. Central financial
assistance of US$ 1 Million and US$ 2 Million has been raised to US$ 5
Million and US$ 10 Million respectively for major destinations depending on
tourist traffic. Through many innovative branding exercises, the government
has been trying to promote tourism and build awareness about India as a
tourist destination – both in the domestic market and abroad. International
events such as Commonwealth Games in 2010 are also expected to increase
arrivals in India.
17
It is recorded that the inbound traffic was doubled to 10 Million visitors in
the wake of the Commonwealth Games in 2010. To motivate travel agents
to promote India and to familiarize them with new tourism products, the
Ministry of Tourism would provide financial assistance for participation in
travel marts or annual conventions. Through the India Tourism Initiative,
the government plans to lease out heritage monuments which would attract
tourists from all across the globe.
4. Medical Tourism & Spas
India has originated as one of the most important hubs for medical tourism.
Many people from the developed countries come to India for the
rejuvenation promised by yoga and ayurvedic massage therapy as well as for
high-end surgeries like cardiac bypass surgery or knee/hip replacement.
Residents are equally patronizing alternative medicine therapies and
undertaking travel to specialist facilities across the country.
Medical tourism refers to the movement of the people to the country
providing the service for diagnosis and treatment. The industry has been in
the growth trajectory during the last one decade since the people going out
of their home country for medical treatments is rising substantially and is
expected to grow by a whopping rate of 20-35 % during the next 15 years
time. Considering the growth the current market size of the industry is
estimated to be $ 100 billion. Hence it is considered as the yet –to – be-
tapped industry for the countries like India – since they have the low cost
price advantage.
18
97 98 99 00 01 02 03 04 05 06 07 08 09 100
1
2
3
4
5
6
7
8
FTAs In India (In Millions)
19
ORIGIN OF HOTEL INDUSTRY:
The concept of hotels is rather old. It takes back to 6 century. B.C where ventures
of husbands and wives of that age introduced the concept of hotels on a small-
scale basis. These units were called ‘inn’. Here the wife and the daughter looked
after the food and entertainment of the guest while the husbands did the financial
and running about jobs. Huge hall was provided to the traveler where he could
make his own bed and rest. Inns prevailed for a few hundred years. The change in
this industry began to occur when industrial revolution took place in England and
gave birth to new ideas, in the advent of Inn keeping, more so the development in
means of communication systems gave this industry a boost. Starting with the
invention of steams engines and ships to the railways and the airways.
People began to feel the need to travel and have a better social life. Clientele from
Business trips and political trips was also on an increase. These causes increased
the need and demand of hotels. The lead in hotel keeping was taken by the
emerging nations of Europe, especially Switzerland. The birth of the hotel industry
actually took place in England. The first hotel was built in 1794, in New York, and
was called the City Hotel. This lead to specialization in the hotel section and some
of the finest hotels were built in this era. In the 20th century this industry rose to
incredible highs and led to the establishment of some of the world’s finest chains
of hotels. The pioneer in popularizing the hotel operation was Mr.E.M. Statler.
20
THE HISTORY AND DEVELOPMENT OF THE INDIAN HOTEL
INDUSTRY
Though India is a late comer in the modern tourism and hotel industry, the
concept of travel and halting facilities on the way is not all together a new idea for
Indians. Even in the 16th and 17 centuries there existed innumerable number of
dharmashalas, sarais (inns) and taverns in India. The credit for introducing
modern hotels in India goes to the British. They launched hotel projects in India
for their own use, until about 80 to 90 years ago, except the Taj Mahal in Bombay.
Residential hotels of the western type are of recent origin in India. Pallonjee
Pertonjee opened the British hotel; the first western type hotel in 1840 in Bombay,
the twentieth century saw several development in the Indian Hotel Industry.
Several enterprising Entrepreneurs entered the field.
The Hotel Industry comprises a major part of the Tourism industry. Historically
viewed as an industry providing a luxury service valuable to the economy only as
a foreign exchange earner, the industry today contributes directly to employment
(directly employing around 0.15 million people), and indirectly facilitates tourism
and commerce.
Prior to the 1980s, the Indian hotel industry was a slow-growing industry,
consisting primarily of relatively static, single-hotel companies. However, the
Asiad, held in New Delhi in 1982, and the subsequent partial liberalization of the
Indian economy generated tourism interest in India, with significant benefits
21
accruing to the hotel and tourism sector, in terms of improved demand patterns.
Growth in demand for hotels was particularly high during the early 1990s
following the initiatives taken to liberalize the Indian economy in FY1991, as per
the recommendations of the International Monetary Fund (IMF). The euphoria of
the early1990s prompted major chains, new entrants and international chains to
chalk out ambitious capacity additions, especially in the metropolitan cities.
However, most of these efforts were directed towards the business travelers and
foreign clientele.
In recent years, the hotels sector has grown at a faster rate than GDP. As a result,
the share of hotels & restaurants in GDP at current prices has increased from
1.2per cent in FY2000to 1.5per cent in FY2005. In constant (1999-2000) prices,
the GDP from hotels and restaurants has increased from Rs. 222.65 billion in
FY2000 to Rs. 335.49 billion in FY2005. As a result, the share of hotels and
restaurants in total GDP at constant prices has increased from 1.24per cent in
FY2000 to 1.40per cent in FY2005.
Star Category No. of Hotels No. of Rooms
Star Category No Of Hotels No. of Rooms
5-Star Deluxe 82 18764
5-Star 92 11332 4-Star 132 9401
3-Star 704 31039 2-Star 587 19031
1-Star 212 695
Heritage 83 2216
To be classified 50 5127
Total 1934 103973
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SOME OF THE LEADING 5 STAR HOTEL IN INDIA
1. Taj Group of Hotels
2. The Ritz Chain
3. The Oberoi Group of Hotels
4. Leela Group Hotel and Palaces
5. Palace Hotels
6. Air India and the Hotel Cooperation of India
7. ITC Group
8. Holiday Inn
9. Hyatt Regency
10. Marriott’s Group Hotels
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Overview:
Established in the year 1957 by the group’s founding Chairman
Capt. C.P. Krishnan Nair having head-quartered in Mumbai.
Background:
Behind every success of every enterprising institution lies the commitment of a
true visionary. In the case of Leela Group the man is Captain C.P. Krishnan Nair.
Born in 1923 at Cannanore, North malabar-Kerla, Capt.C.P.Krishnan Nair
received his early education at the local Raja’s High School and Govt. Muslim
College, Madras. During 1940-42, he had a brief stint as a freedom fighter and
later on as a Civilian Officer for two years. He resigned from his job in the Army to
work for the familiarization of his native handloom weavers in North Malabar. He
took up the cause of handloom Weavers Association and was responsible for the
scientific production and modern marketing methods of the handloom cloth. He
pioneered the marketing of “Bleeding Madras” and the “Gauz Fabric” which
became a fashion runs away in the international markets of U.S.A. Europe and
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Japan in the 60’ and 70’s.He later set up a unit to produce cotton laces in India
with Scottish collaboration. “The Leela lace’ is now the premier export house of the
country.
In the early 70’s, the company launched its ready-made garments unit and is
today, India’s premier export house. Since the 80’s, the client list of Leela Lace
reads like the veritable who’s who of the American fashion industry : The Gap, Liz
Claiborne, Polo Jeans, Tommy Hilfiger, JC Penney, Macy’s, Van Heusen,
Walmart…..
Mr. Dinesh Nair, the present Managing Director of Leela Lace Ltd., took over from
his father Capt. C.P. Krishnan Nair, in the early 80’s. After consolidating the
company’s position, he shifted his focus to the American woven sportswear market
with a continuous emphasis on fast turnaround and big volumes. Rapid growth
has been the result, and has made Leela Lace the largest garment exporter from
India to the USA.
Today Leela Lace has 20 factories with state of the art equipment – 10 in
Bangalore, 5 in Chennai and 5 in Mumbai, with an annual turnover of US$ 75
million. It is Leela Lace Ltd., the parent company, which is the promoter of Hotel
Leela Venture Ltd.
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HOTEL LEELA VENTURE LTD.
Capt. Krishnan Nair served in the Indian National Army under Netaji Subhash
Chandra Bose. Subsequently, he helped his father-in-law in the latter's garment
export business. In 1957, he was part of a delegation to West Germany, which
involved visits to Frankfurt, Cologne, Munich and Hamburg. Here he realized the
need for a luxury hotel chain in India that could measure up to international
standards. Eventually, in 1988, he launched his first hotel in Mumbai as Hotel
Leela.
Incorporated in 1981 to set up and operate 5-star hotels, Hotel Leela Venture
entered into a collaboration with Penta Hotels, UK, which was subsequently
transferred to Kempinski Hotels, a European chain of 5-star deluxe hotels, owned
by Lufthansa, the German airline. The company entered into collaboration
agreement with Penta Hotels Ltd (Penta) for a period of 10 years for sales,
marketing & technical know-how.
The company set up its first 5-star deluxe hotel, Leela Penta, in Bombay in 1986.
It was renamed Leela Kempinski in 1988, following the change in its marketing
and sales tie-up.
The hotel entered into a marketing alliance with Germany’s Kempinski group,
which has close to a hundred years of rich management expertise in the
hospitality industry. When Lufthansa and British Airways became regular
customers, Nair had Kempinski to thank. That relationship has continued to
flourish and a flurry of projects has come up across the land. Second in line was
26
the Leela Goa, followed by the Leela Palace in Bangalore and the Leela Beach
Resort in Thiruvananthapuram. The Leela Kempinski Mumbai and The Leela
Kempinski Goa are two of the best hotels in India, and have also won considerable
international acclaim.
Recently in 2001 Capt. Nair fulfilled his longstanding dream of constructing a
palace hotel in the garden city of Bangalore. The Leela Palace Kempinski
Bangalore is built in art deco style recreating the grandeur of The Mysore
Maharajas Palace. It is set amidst 8 acres of landscaped garden and waterfalls. It
is a palace with the heart of a modern hotel. Its 254 rooms are opulently furnished
and are befitting royalty. The newest addition The Leela Kovalam is Kerala’s
largest resort, built on a rock face cradled between two wide sweeping beaches
with a stunning view of the famous Kovalam coastline.
New projects will be commissioned at Gurgaon, Udaipur and Chennai this year.
Other new properties have been planned for New Delhi, Jaipur, Agra, Hyderabad
and Pune in the coming years.
Achieving these levels of excellence has been the result of a three pronged
business strategy, best described in the words of Capt. Nair. Fundamental to our
business is the all pervasive Indian tradition of hospitality. Secondly, we honour
the cultural heritage of India. Lastly, we operate on the basis of world class
technology, backed up fully by the commitment of the staff.
27
LEELA AT A GLANCE
Leela Kempinski Kovalam Beach Resort,
Leela Kempinski Palace-Bangalore,
Leela Kempinski-Goa,
Leela Kempinski Palace-Udaipur,
Leela Kempinski-Mumbai,
Leela Kempinski-New Delhi,
Leela Kempinski-Gurgaon,
Segmentation of different departments at Leela Kovalam
There are more than 10 different departments are functioning in the traditional
and executive levels at the management of the hotel. These departments have
diverse portfolios and responsibilities headed by a person in charge of the entire
operations undertaken within the department. He may be a manger/supervisor of
the respective department.
The reason why hotels are usually organized into functional blocks, with
departments grouped according to the particular work/activity that particular
28
department is actively engrossed. In most scenarios a hotel industry is divided up
into 5 different departments such as rooms, Food and Beverages (usually this
department is called as by its short form as F&B), accounting, sales and Human
Resource/HR. Each of these departments has their own heads of the operations
and they should have to report directly to the General Manager of the hotel
regarding the performance of their respective departments.
These departments are sub-divided into various other smaller organizational
units. These sub-divisions represent refinement of the work performed and the
knowledge and the skills of the people in each subunit.
As organizations grow large in respect of its size and operations it carries out most
hotels tend to segment its operations to various departments with food
preparation and food servicing as separate entities. Since preparing food and
serving it to the guest are usually of two different arts; both the processes are
done through different and separate works. Thus forming departments along
functional line is the most common method in a hotel organisation.
The department engaged in the preparation of food is called as Production
Department while the division involved in the art of serving the prepared food to
the guests in an eye-catchy and sumptuous manner is known as the Servicing
Department.
Food Production Department: - Food production deals with the preparations of
food items. It basically engaged in preparing those dish, which are ordered by the
29
guest and afterwards is catered by the F&B department. Cuisine like Indian,
Continental, Thai, Italian, Konkani (Coastal Sea Food), South Indian, Chinese,
Mexican, etc. Different Chefs are appointed for the specialty cuisine. Marketing a
celebrity chef as a primary component of a hotel may yield a competitive
advantage among that specific hotel’s competitive set.
Food Servicing Department: - Food service deals with the process of the delivery
of the prepared food items onto the end customers who ordered it. Service
department should also lay special emphasis on the importance of getting the
orders delivered with an eye candy look and appearance.
Food & Beverages Department: - F & B deals mainly with food and beverage
service allied activities. Different divisions are there in F & B like Restaurants,
Specialty Restaurants, Coffee Shop (24 hrs.), Bar, Banquets, Room service etc.
Apart from that they have Utility services (Cleaning). A food and beverage
department in a hotel is usually guided by an F&B Director followed by an F& B
manager. A Food and Beverage Manager in a hotel should always by ready too
undertake a variety tasks each and every day. Some of the main important
functions endowed on this specific department in a hotel include,
a) Provide the highest quality in food, beverage and service in all the food and
beverage outlets inside the hotel.
b) Provide all guests with the highest quality of food and beverage experience by
working as a team with all the food and beverage outlets ensuring prompt,
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courteous, and professional services resulting in increasing employee morale
and decreasing employee turn over rates.
c) Maintain existing programs and develop new programs ensuring the highest
quality of food, beverage and service offered. Arrange daily talks with staff and
managers, reviewing plate-ups in different outlets.
d) Maintain a high quality hotel image through effective house keeping and
sanitation in the F&B operations.
e) Meet all the needs and the expectations of the guest by ensuring proper service
standards, providing quality food and beverages, and managing all aspects of
operation, resulting in an increasing Guest Satisfaction Index (GSI) and
decreasing guest complaints.
f) Maintain top-notch security to all the F&B properties and inventories.
g) Maintain knowledge of national and international competition and industry
trends. Includes changing menus based on seasonality, product availability,
and input from staff.
h) Seek profitability in all the F&B outlets by decreasing the operational costs and
by increasing the sales volumes of different menus and beverage items.
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The following chart represents the hierarchical structure of the division of
F&B department in a 5-star hotel.
HOUSE KEEPING DEPARTMENT: -
The House Keeping Department is another important department in the
hospitality industry. Housekeeping Department is responsible for cleaning the
hotel’s guest rooms and public areas. Housekeeping department usually has the
largest staff, consisting of an assistant housekeeper, room attendants, room
inspectors, a house person crew, linen room attendants and personnel in charge
of employee uniforms. They may also have their own laundry and valet service.
Hotels with laundry and valet equipment may use it only for the hotel uniforms
RESTAURANT MANAGER
BEVERAGE MANAGER
ASSISTANT F & B
MANAGER
F & B MANAGER
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and linens and send guest clothing to an outside service where it can be handled
with specialized equipment.
Basically the main responsibility of the housekeeping department is to ensure that
the guest rooms and the entire public area within the hotel are neat and clean all
the time. But the cleaning duty of the kitchen area is done by Kitchen steward.
Cleaning of the lawn area of the hotel is also set apart from the housekeeping
department while the same is carried out by the gardening division of the hotel.
The person who is made in charge of the entire operations being performed in this
specific department is Housekeeping Executive. The Executive Housekeeper is
responsible for the total cleanliness and the, maintenance and the aesthetic
upkeep of the hotel. This end is achieved with the resources made available to
his/her of manpower, materials, machines, money, space and time. The position
of the Executive Housekeeper is considered to be one of the most important
positions in the hotels since it carries tremendous responsibility for the proper
cleanliness and the aesthetic fabric of facilities in order that they are sanitary,
desirable and in saleable condition. The good Housekeeper, because of the need to
co=operate with many other department heads, must posses a high degree of tact
as well as good organizing ability.
The Assistant Housekeeper is the deputy to the Executive Housekeeper of a hotel.
He/She manages the resources given by the executive housekeeper to achieve the
common objectives of cleanliness, maintenance and attractiveness in a given
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period of time. Assistant Housekeeper’s accountability normally ends with the
completion of the shift.
The position of a Housekeeping supervisor is normally occupied by a competent,
personable individual who knows his/her employees well, and is, above all, able to
meet the public. This requirement is so important as far as a hotel is concerned
since the supervisors are actually representatives of the Executive House keeper
in the areas assigned to them.
House keeping draws special mention since a hotel survives on the sale of rooms,
food and beverage and other minor operating services such as laundry, spa, clubs
etc. Of these, the sale of rooms constitutes a minimum of 50 %. In other words the
largest margin of profit comes from room sales because a room, once made, can be
sold over and over again. A good hotel operation ensures optimum room sales to
being in maximum profit. The room sale is dependant on, apart from several other
things, the quality of the room décor, room facilities, and cleanliness of the room
and how safe it is.
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The following chart shows the hierarchy of the housekeeping department
in the hotel:
Front Office Department: - The front office is the command post for