Introduction to Hotel and Catering

Industry
• The word ‘Hotel’ is originally derived from the word "Host".
• Hotel is one of the components of tourism industry.
• The combination of many other components as a whole is called the
hospitality industry.
• This means, hotel is not only a component of tourism industry but also
the component of hospitality industry.
• The hotel sector represents a vital part of hospitality earnings.
• Hotel is also considered as 'home away from home", since there is a
provision of accommodation, food and beverages which is essential for
any one spending time away from home, whether it is for business,
leisure or pleasure.
• A hotel or Inn may be defined as an establishment whose primary
business is to provide lodging facilities for the general public.
• The word hotel may be formulated by the concept of hospitality
service, of which the primary objective is to provide lodge and foods to
the people who are economically, mentally and physically able to
receive.
• There are many other properties in the field of hospitality business
such as lodge, guest house, rest house, restaurant etc., but the concept
of hotel is only regarded with the combination of all the activities.
• A hotel usually offers guests a full range of accommodation and services,
which may include reservations of rooms, public dining and banquet
facilities, lounge and entertainment areas, room service, television with
cable, personal computers, business center, meetings room, specialty
shops, personal service, valet, laundry, mini bar in the room, sports
facilities, health club and fitness center, indoor and outdoor swimming
pool, wall to wall carpeting, 24 hour check-in and checkout for VIPs and
CIPs, 24 hour doctor on call, etc.
• According to British law, the hotel is defined as "a place where a bona-
fide traveler can receive food and shelter, provided he or she is in a
position to pay for it and is in a fit condition to be received".

• Thus, a hotel must provide food, beverage and shelter to travelers on

payment and has the right to refuse, if the traveler is not in the fit
condition or is not in the position to pay for the services.
Classification of Hotel
• Hotels are classified to suit or to meet the need and standard of the
tourist.
• This may be done depending upon the factors such as location, number
of rooms, types of plan, room rate, type of customer, length of guest
stay and facilities the hotel offers or combination of all.
1. Location
a. Downtown Hotel (City Hotel or Commercial Hotel or Business Hotel)
• These type of hotels are located in the heart of the city, within a short
distance of business center, shopping area, theaters, public buildings,
offices etc.
• Rates in these hotels are high due to the location advantage and also
due to the "Rate of Return on Interest"(ROI) computed on the capital
invested for the hotel.
• These types of hotel are preferred mainly by business guest (tourist).
Due to this reason, these types of hotels concentrate in providing the
services the business guest needs such as meeting and seminar
facilities, secretarial facilities, 24 hour room service, 24 hour coffee
shop, specialty restaurant, AC in rooms, swimming pool, travel desk
etc.
• The hotel goes for marketing in reputed international organization e.g.
Business companies, like banks, large trading companies etc.
B. Sub-Urban Hotel
• Suburban hotel is normally located little outside of the city.
• It has the advantage of peaceful surroundings.
• The room rate is generally moderate and affordable.
• This type of hotel provides more luxury and comfort to the guest. Many
organize tour group especially for guests who are older in age in this
type of hotel.
• Also, it is preferred by deluxe guest and those who have meetings and
seminars.
• They generally stay for longer period of time in this hotel.
• The hotel goes for marketing in travel agencies (local and
international), and whole sale tour operators.
C. Airport Hotel
• As the name suggest, these type of hotels are located within the
airport vicinity or near the airport.
• These hotels are ideal for transit tourist or layover passengers who
have only few hours’ time for connecting flights, airline crews and
those passengers who have flight delays.
• These hotels are luxurious in nature.
• The room rates are usually quoted only for rooms and are expensive as
the room charge is on hourly basis. Guests stay for few hours to few
days.
• The ideal area for marketing is different airlines companies.
D. Casino Hotel
• These types of hotels can be located either in the city or little outside
of the city.
• They usually provide the facilities for gambling and more night life
activities.
• As the type of hotel indicates, they attracts gamblers and commercial
guests who are interested in gambling and night life.
• Casino Hotels are usually expensive.
• Las Vegas have most famous casinos in the world.
E. Apartment Hotel
• Apartment hotels are located little outside from the city center.
• They also have quite surroundings providing self-cooking and serving
facilities with bed room, living room, dining room and kitchen having all
necessary utensils and linens.
• These type of hotels attracts long staying people like student, scholar,
researcher, and people working in projects.
• The rates are quoted in apartment basis and moderate in comparison
to other hotels.
• The ideal area for marketing are universities, research institution,
INGO's and NGO's
F. Bed and Breakfast Hotel
• These type of hotels are normally located in the city.
• They are generated from the European concept and are generally
operated in large family residences.
• The rates are quoted for bed and breakfast, and are cheaper in price.
• The owner usually lives on the premises and is responsible for serving
breakfast to guests.
• Guests are accommodated in bedrooms and breakfast is served either
in the rooms or in the dining room.
• Bathroom may be attached to the guest room or maybe on a sharing
basis.
• Those guests who are interested to taste different kinds of cuisine,
lunch and dinner in different restaurants may also prefer to stay in
these type of hotels.
• They mainly attract students and budget class tourist.
• These hotels are very simple and informal in nature.
• Ideal area for marketing is travel agencies who operate tour for
mentioned groups.
• The good example is the chain "GARNI" in Europe.
G. Motel
• This term is derived from the words ‘motor’ and ‘hotel’.
• This type of hotel is located on the highway.
• It provides modest lodging and boarding to highway travelers traveling
by vehicles.
• The length of guest stay in this type of hotel is restricted to one night
only.
• The rates quoted are on European plan.
• Moreover, this type of hotel provides the facilities of secured car
parking, refueling and, repair and maintenance workshop.
H. Resort Hotel
• Resort hotels are very much informal in nature and located in the
places where people can experience real natural life.
• They have very calm and natural ambience.
• Guests such as holiday makers, businessmen, families, and more plan
to stay for longer days (few weeks to months) in such hotel.
• The rate may be moderate to expensive depending on the additional
services offered.
• Mainly there are two types of resort popular in the world.
• These types are beach resort and safari resort.
• Beach resorts are located on the sea beach where as safari resort in or
near the jungle.
• But in the country like ours may have village resort and/or mountain
resort.
• However all resort provides recreational activities available in that
locality, such as water sports, surfing, boating, diving, jungle safari on
elephant, jungle walk, bird watching, jeep safari, village walk, home
visit, local cultural shows etc.
I. Congress Hotel
• These types of hotels are located in an ideal location, where congress,
convention, conference, seminar and meetings can be conducted.
• Rates are expensive and inclusive of rooms to conference delegates,
food and beverages during and after conference, stationeries required
and participation in conference.
• Normally, they are charged as packages.
• These hotels concentrate to provide luxurious facilities focusing
towards the convention business.
• The areas of marketing are mainly big international associations or
organizations like SAARC, UNO, ASIAN Development Bank, UNDP, etc.
J. Rotel
• This is a type of hotel designed in a big automobile van having space
for very limited number of guest.
• It provides the facilities such as a bedroom, kitchen also used as dining
and a small bathroom.
• People interested to travel to many places via many countries are
attracted towards this type of hotel.
• This is also for budget class people interested to travel for the sake of
prestige.
• The owner has the advantage to travel free of cost from one region to
the other because he decides himself where he is traveling in a
particular time of the year and those interested to travel that region may
take part.
• One of the examples of rotel includes caravan.
Caravan
K. Floatel
• Floatel is a hotel that is located on the surface of the water.
• It may be designed in a big ship which is fixed and floats on the water
or could be designed in boats and ships.
• It caters all facilities that one gets in a normal hotel but are very
luxurious.
• The atmosphere it provides is exclusive and exotic.
• People who are interested to spend some time peacefully in water
atmosphere will stay in this type of hotel.
• The hotel also arranges transfer from land to hotel and back.
• Rates are comparatively high for the service.
L. Inns
• ‘Inns’ are small establishments with modest boarding and lodging
facilities.
• Inns were originated from England but nowadays, have gained
popularity in America in the form of modern luxurious hotel.
• They are the forefather of modern hotels.
• In Asia, especially in India and Nepal, ‘Inns’ means also
‘Dharmashala’, which are still the primitive form of accommodation
establishment.
• Other accommodation establishments like lodge, guest houses and rest
houses can be compared with either ‘Inns’ or bed and breakfast hotel
depending on their service.
2. No of Rooms Available
• The size of a hotel is determined according to the number of sellable
rooms it has, which is one of the essential criteria for classifying a
hotel.

• For example:
• 1 to 25 rooms hotel = Small hotel
• 26 to 100 rooms hotel = Medium hotel
• 101 to 300 rooms hotel = Large hotel
• 301 to 1000 rooms hotel = Very large hotel
• 1001 and above = Mega hotel
 3. Type of Plan :
• A hotel can also be classified according to the meal plan that the hotel
offers. The best example of this kind of hotel is bed and breakfast hotel.
• The meal plans offered by the hotels are:
• EP = European plan; includes room only
• CP = Continental plan; includes room and continental
breakfast
• BB = Bed and Breakfast plan; includes room and breakfast
• MAP = Modified American plan, Half board, Demi pension;
includes room, breakfast, lunch or dinner
• AP =American plan, Full board, En pension; includes room,
breakfast, lunch and dinner
• Downtown hotels prefer offering the European plan to short stay
guests who want the flexibility of eating out.
• The American plan is often found at resorts where vacationers prefer
to have all meal options so that they can concentrate on holidaying and
relaxing.
• Modified American Plan is found in hotels that cater to tour groups
who like to start the day with a hearty breakfast before proceeding to
their sightseeing tours only to return in the evening for a warm dinner.
• Continental Plan is found in Europe mostly, or for European travelers
visiting other countries, who are used to continental B/f.
• Bed and Breakfast meal option is offered by sole proprietor running
small lodging places or city hotels where guests prefer the flexibility of
eating out with friends and office colleagues.
 4. Type of Customer/Clientele :
• Some hotels are classified based on the type of customer it caters.
• For example:
• Commercial hotel: For business guest and corporate travelers.
Facilities include – meeting rooms, secretarial services, modern
telecommunication facilities including high speed internet facilities; a
business lounge for executives to have private food and beverages; and
provision of latest newspaper as well as library.
• Family hotel: For families. Facilities include – rooms with kitchen and
basic cooking facilities; entertainment lounges equipped with
television, indoor games and children’s play area; outdoor children
parks, jogging paths and independent barbeque areas.
• Group hotel: For groups. Facilities include – large lobbies; separate
registration counters; adequate bell boys to handle luggages; separate
baggage elevators; twin rooms; large dining halls for several group;
briefing rooms for tour groups.
• Convention hotel: For conventions. Facilities include – halls for
meetings and seminars; large registration areas; large dining halls for
large number of people; provision of modern telecommunication
system.
• Youth Hostels: Cater to the travelling youth. The hostels will have
dormitory style accommodation and may be some single rooms for the
discerning. They may be equipped with an assembly hall with a stage
for youth gatherings and entertainment. The YMCA and YWCA hostels
are the best example of this type.
 5. Length of Guest Stay :
• Based on the length of guest stay, the hotels can be classified as:

• Transient hotel: Guest can register for a day only or even for less time.
Maximum guest stay could be for one week. For instance: airport hotel

• Residential hotel: Guest stay is usually for longer duration. For

example: Apartment hotel.

• Semi – Residential hotel: Guest may stay for short or long duration.
The time period could last from few weeks to some months.
6. Level of Service :
• Hotel may be classified into economy, and luxury hotels on the basis of
level of service offered.
•
• Economy/ Budget Hotels: These hotels meet the basic need of the
guest by providing comfortable and clean room for comfortable stay.
• Mid- Market Hotels: It is a suite hotel that offers small living room
with appropriate furniture and small bed room with king size bed.
• Luxury Hotels: These hotels offer world class service providing
restaurant and lounge, concierge service , meeting rooms, and other
luxurious facilities.
7. Ownership:
There are different types of organizations based on their ownership:
• Individual/ Sole Proprietor
• Partnerships
• Public Ltd. Companies
• Franchised
• Sole proprietor:
• It is an individual business who uses his or her own resources to set up
the business.
• S/he will only limit the size of operations to the extent of his or her
financial limits.
• Funds come from personal wealth in terms of cash and fixed assets, like
land, building and jewellery, against which the proprietor gets additional
loans from the banks.
• Partnerships:
• Partnerships are another method of raising funds. Partnerships help in
aspiring for medium to large hotels.
• “A partnership is the relation that subsists between persons carrying on a
business in common, with a view of profit” (1890 Partnership Act of the
UK). Partners are limited to 20 persons only.
• Public Limited Companies
• PLC are those companies that finance mega hotels of 1000 rooms and above. Las
Vegas is an example of mega projects where rooms go as high as 6000 in numbers
Chain Hotels:
• The international chain operations are the hotels which have various other
similar hotels chains in more than one place.
• With the intention of global marketing and to increase the sales of the
hotel, most of the independent hotels enter into an affiliation or merged
with in internationally recognized hotel chain operations by paying certain
percentage of equity sharing or consultation or affiliation fees.
• The top level management and the decision making, marketing policies
strategies, rules and regulations etc. will be governed by the head office of
the international chain operations.
• The hotel in return will attain a height of dignity and goodwill of the chain
operation by using the brand name and the logo of the chain operation
along with the name of the hotel. For e.g. Hyatt, Marriott, Crown Plaza,
Radisson etc.
• Generally, the international chain operation will provide the following
services to the individual owner of the independent hotels:
• Partnership: Sharing equity and profit
• Franchise: A franchise is a license to use a brand name given by a
franchiser to a franchisee who can be an individual, partner, a small
corporation or a group of investors.
• It is a license to use the franchisers concept of business, methods of
operation and name.
• The franchiser provides operating manuals (Standard Operating
Procedures) to the franchisee to ensure international quality and
services of the brand.
• And in this agreement, the franchisee is required to maintain the
quality standards of the franchiser.
• Benefits of Franchisors:
• A franchise arrangement is the fastest way to expand overseas.
• Captive investments are expensive for any individual corporation to
finance.
• Any new franchisee became a new sales person in a location for other
franchised properties
• Management Contract: Expertise in management, professional
managers, technicians etc on the basis of management fees and share
of profit as incentive payment.
8. Theme:
Heritage Hotel
• Heritage hotel: In this hotel a guest is graciously welcomed, offered
room that have their own history, serve traditional cuisine and are
entertained by folk artist. These hotels put their best efforts to give the
glimpse of their region.
• Ecotels: These are environment friendly hotels these hotel use eco
friendly items in the room.
• Boutique hotels: This hotel provides exceptional accommodation,
furniture in a themed and stylish manner and caters to corporate
travelers.
• Spa hotels: It is a resort which provide therapeutic bath and massage
along with other features of luxury hotels.
9. Facilities
• Facilities offered by the hotel plays a vital role in classification of
hotels.
• It is considered as the most important criteria combining all other
aspect discussed so far.
• However, system varies from country to country. Some countries adopt
‘star’ rating system awarded by ‘Mobile Travel Guide’ and some
‘diamond’ rating awarded by American Automobile Association
(AAA).
• Similarly, some may use words such as deluxe, economy, luxury and
some may use letters such as A, B, C, D, E, F to describe about their
hotel, their standards and the facilities. These types of rating help the
guest to know what to expect from the hotel.
• Star Rating
• Deluxe Hotels
• Palace Hotels
• Convention Hotels
• Conference Hotels
• Casino Hotels
• Business Hotels
• Budget Hotels
• Bed and Breakfast
• Caravan
• Star Rating: is one of the most definitive standards which guide
travelers as to what to expect. The star ratings are organized by the
State Tourism Department who puts together a team of representatives
from the government, hospitality educationists, travel agents, airlines
and the hotel industry. They are guided by a checklist of minimum
requirements to achieve a certain star rating.
• Deluxe Hotels: would normally have a minimum five-star rating. These
hotels are rated as deluxe as they would have decor and appointments
of luxury. They would have every conceivable comfort built into the
guest experience. Take Burj-al-Arab in Dubai where accommodations
are suites that overlook the Persian Gulf.
• The rooms are fitted with remote control window shades, gold plated
taps, etc.
• Palace Hotels: really an Indian concept where ancient Indian
Maharajas converted their palaces into hotels after they were stripped
off their princely privileges.
• The palaces transport guests to old heritage, architecture and priceless
appointments.
Star Rating Criteria:
* star
• Clean and comfortable rooms
• Minimum standard of service
• Need not have 24 hours, Front desk & telephone service
• Acceptable furnishing
• Good housekeeping and maintenance service
• Courteous and reliable service
• Polite and disciplined staff
** star
• Good quality of furnishing
• Specious bedrooms with better amenities
• Direct dialing telephone system from room
• Restaurant on the premises
• May have swimming pool
• Perfect absolute cleanliness and comfort are always an essential criteria.
*** star
• In addition to the above given criteria,
• Some truly outstanding amenities
• Ability to offer pleasant stay experience to each and every customer
**** star
• Outstanding bed rooms: suite and deluxe.
• Furniture of high quality.
• Swimming pool.
• All extra sundry services should be offered.
• Personnel should be well trained.
• Staffs should be courteous to provide customer with everything they
need and expect.
• Standard of quality should be high.
• Price is often higher than average.
• Central Heating System
• Stay in a 4 star hotel should be a memorable one
***** star
• At least 200 rooms, including 20 suite rooms with modern music
system
• Central or split air conditioning
• LED/LCD TV with cable TV service
• PC with Internet connection
• At least two banquet halls and one multi-purpose hall sprawled over
5,000 sq. ft
• Should have training department to train employees 24-hour health
clinic
• Lobby capable of accommodating 100 persons
• Night Club or Lounge Bar with Live Music
• International standard swimming pool
• Spa and sauna bath
• Modern baggage and luggage scanner
• Earthquake resistant building
• Separate swimming pool for children
• Arrangement of at least three sports like tennis, table tennis,
putting green, snooker, rowing boats, jogging track
• Fire fighting system
• Baby sitter facility
• Five restaurants with touch-screen and remote facility
• All managers should have diploma in hotel management with at least
three years of experience
• Should have ISO or HACCP certification
• Should have separate lodging room and dining area for staff members
Catering Establishments
• Catering is derived from word ‘cater’, means to serve, whose literal
meaning is to provide Food and Beverage service.
• Catering industry is a hospitality industry providing food, drinks and
service to a bonafide customers with an objective to satisfy its
customers and meet their objectives (needs) at all times.
• Its main function is to prepare various food & drinks and serve them to
the concerned in the appropriate hospitable manner.
• The provision of accommodation may also be a part of the catering
industry.
• Catering establishments are committed to achieve excellence through
quality food and beverage service in a manner which meets the client’s
expectation and achieve the highest level of the customer satisfaction
and value for money.
Classification of Catering Establishment
1. Primary or Commercial Catering Establishment:
• This includes those establishments which provide food, drink,
refreshments and accommodation in exchange for money.
• Their main aim is to earn a profit by providing food and beverage and
excellent services to the guest or customer as per their demand.
• Hence they are also called as commercial catering establishment.
• Generally they provide food and beverage in a higher price.
• Such caterings are hotels, restaurant, bar/ pub, discotheque and Outdoor
catering etc.
a. Hotel:
• It is a primary catering establishment which provides accommodation
and food and beverage service to guest in a hospitable manner.
• The main objective of hotel is to earn a profit.
b. Restaurant:
• It is an establishment that serves the customers with prepared food and
beverage to order, to be consumed on the premises.
• There are different types of restaurant such as Multi-cuisine, Specialty,
Fine dining and Fast Food restaurant etc.
c. Bar and Pub:
• Bar is an outlet which provides beverage (both alcoholic and Non-
alcoholic) with light snacks.
• A pub is a public house where people go to drink and meet their friends.
So, pub is gathering place.

d. Discotheque:
• It provides the dancing floor, with high pitch sound and are usually
located at the basement of the hotel.
• They serve alcoholic and non-alcoholic beverages and are usually
canned.
• There is certain age bar for the customer and one has to pay certain
entrance fee to get there.
e. Out Door Catering
• The catering which is provided to the venue of customer’s choice as per
their demand is known as Outdoor Catering.
• These are free standing independent catering with the provision of food
and beverage as per the requirements of parties or organizers.
• The type of food and beverage, venue and set-up depend entirely on the
price agreed upon.
• It is done to cater to a large number of peoples on various functions
such as wedding, anniversaries, celebrations and many other get
together parties for lunch and dinner.
• Well established hotels or restaurants offer this service within their
complex and out to serve as per the customer’s choice.
• Some catering organizations are specialized for these types of service
only.
2. Secondary or Welfare Catering establishment
• The provision of food and beverages to people to fulfil a social
obligation, determined by a recognized authority, is known as welfare
catering.
• This grew out of the welfare state concept, prevalent in western
countries.
• It includes catering in hospitals, schools, colleges, the armed forces
and prisons.
• These are the catering establishment which provides food and
beverage to the bonafide guest as part of their own business.
• Their aim is not to earn a profit, instead they provide welfare services.
Institutional Catering:
• It is one of the sector of welfare catering establishment which includes
catering in hospitals, schools/colleges, the armed forces and prisons.
• It is one of the sector welfare catering establishment, open in the
school/colleges area to provide food and beverage to students, their
staffs as well as teachers.
• E.g. Hospital canteens, School/College canteens.
• Hospital canteens are open near the hospital area to provide the food
and beverage to the sick people, their guests as wells as doctor and
nurses.
• School/college canteens are open near the school/college area to
provide food and beverage to students, their staffs as well as teachers.
Industrial Catering
• The provision of food and beverages to ‘people at work,’ in industries
and factories at highly subsidized rates is called industrial catering.
• It is one of the sectors of welfare catering establishment, open in the
industrial areas to provide food and beverage service to the worker,
labor and other staffs working in the industry.
• For e.g. Industrial Canteen
Transport Catering
• The provision of food and beverages to passengers, before, during and
after a journey on trains, aircraft and ships and in buses or private
vehicles is termed as transport catering.
• The major forms of modern day transport catering are as follows:
• Surface Catering: Catering provided to the passengers travelling by
surface transport such as buses or private vehicles is called as surface
catering. These establishments are normally located around a bus
terminals or highways.
• Airline Catering: Catering provided to airlines passengers on aircraft,
as well as at restaurants situated at airports is called airline catering.
Modern airports have a variety of food and beverage outlets to cater to
the increasing number of passengers.
Ship Catering: Catering provided to ship passengers travelling on a ship is
called Ship catering.
Railway Catering: Catering provided to the railway passengers both
during the journey as well as during halts at different railway station is
known as railway catering.
• Retail store catering: This type of catering evolved when large
departmental stores wished to provide food and beverages to their
customers as a part of their retailing concept. This style of catering is
becoming more popular and varied nowadays.
• Leisure-Linked Catering
• This type of catering refers to the provision of food and beverages to
people engaged in ‘rest and recreation’ activities. This includes sale of
food and beverages through different stalls and kiosks at exhibitions,
theme parks, galleries and theatres. The increase in the availability of
leisure time and a large disposable income for leisure activities has
made it a very profitable form of catering.
• Club Catering: Club catering refers to the provision of food and
beverages to a restricted member clientele. Some examples of clubs for
people with similar interests are cricket clubs, football clubs, golf clubs
etc.