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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






Under the Guidance of

Mr. xxxxxxxxxx

From 02/11/08

To 02/12/08

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


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)



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


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


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


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

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.


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


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,

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


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

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.

Tourism Industry during the recession and post recession


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.

• 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.


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.

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.

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


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.

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

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.

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.

FTAs In India (In Millions)

97 98 99 00 01 02 03 04 05 06 07 08 09 10


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.



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

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


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


Established in the year 1957 by the group’s founding Chairman

Capt. C.P. Krishnan Nair having head-quartered in Mumbai.


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

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


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,


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.


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


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

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.


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

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


Food Production Department: - Food production deals with the preparations of

food items. It basically engaged in preparing those dish, which are ordered by the

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,

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.

The following chart represents the hierarchical structure of the division of
F&B department in a 5-star hotel.





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

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

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.

The following chart shows the hierarchy of the housekeeping department

in the hotel:









Front Office Department: - The front office is the command post for

processing reservations, registering guests, settling guest accounts (cashiering),

and checking out guests. Front desk agents also handle the distribution of

guestroom keys and mail, messages or other information for guests. The most

visible part of the front office area is of course the front desk. The front desk can

be a counter or, in some luxury hotels, an actual desk where a guest can sit down

and register.

The Front Office may be regarded as the show window of the hotel and hence

must be well designed in the first place and maintained in a well organized and

orderly manner. Regardless of how a hotel is organized into, the front office is

always an essential focal point. Front Office is the name given to all the functional

units of a hotel which are situated in the front portion of the hotel, that is, the

lobby – is the place where the guests are received, provided information on the

products and services offered in the hotel, the luggage of the guests are handled,

the accounts of the guest are settled at their departure, and the guest’s problems,

complaints and suggestions are looked after.

The front desk is the link between the guest and the hotel and represents the

hotel to the guest. And is a liaison between the hotel management and the

coordination of all the guest services. It serves as a main channel of both way

communications i.e. from hotel to the guest and guest to the hotel.

Hotel terminology includes terms such as front-of the-house and back-of-the-

house. This front-of-the house term includes those portions of the hotel with

which the guests come in direct contact with during the period of their stay in the

hotel, such as building exterior, lobby, front desk, guest rooms, function rooms


The person who is regarded as the head of the operation of the front-office desk is

the Front-Office Manger. The nature of the front office job is such that he is

almost always crowded with various jobs. He should be able to match job needs to

time available for effective and efficient performance. Another responsibility of the

front office manager is making daily plan of action by outlining work for the next

day at the end of each day. It includes listing all activities for the next day under

ABC category as per the urgency and importance of the job. It is also important to

make flexible plans to fit in emergencies.

The assistant front-office manager’s main duty is aiding the front office manager

in supervising and coordinating the day-to-day operations of the front-office staff

and resolves internal problems. He/She co-ordinates staffing of mail and

information and reservation clerks with their supervisors. The AM-front office

should also be adept in dealing with problems arising from guest’s complaints and

reservation and room assignment activities. He should also be responsible for any

miscellaneous duties assigned by the front office manager.

Another important position at the front desk of the hotel is done by the reception

assistant. The friendly welcome given by the receptionist to a guest changes an

impersonal hotel building in to a friendly and homely place and his unfriendly,

hostile and indifferent attitude may convert the guests experience in to an

unpleasant and uncomfortable stay. If the front office is the hub of the hotel then

the receptionist can be aptly called as the person ‘who keeps the hotel world

moving’. The reception assistant should be well informed of daily room availability

status, and also he should have detailed information regarding arrivals, their room

requirements and expected departures of the guests.

The position of the reservation assistant is also important at the front-office

department of the hotel since the hotel’s good image can be maintained among the

guests only if all the needs of the guests are taken care of, especially the guest’s

requirements in terms of his lodging. The main function of the reservation

assistant is to handle all the reservations courteously and promptly over

telephone, by e-mail, fax etc. He should make proper updating in the reservation

register and records in order to have updated inventory of room availability. The

reservation assistant may also carry out amendments and cancellations

intelligently and accurately. To keep the availability status chart updated. Check

out reservation stationary and keep a satisfactory par stock of the same. Type out

advance reservation slips and maintains reservation racks and correspondence

files and in case of computers updates information in computers.

The following chart shows in detail the common hierarchy of the

structure of the front-office staff in 5-star deluxe hotels.











Human Resource Department: - Human resources is exactly meant as

‘resources for human – wi8thin the workplace’. Its main objective is to meet the

organizational needs of the company it represents and the needs of the people

hired by that company for running its operations. Every organisation needs its

stack of manpower to carry out its day-to-day operations. No establishment

cannot operate without being involved in some kind of transactions with the

people in general. Hence HR department is drawn with special emphasis as this

department is responsibly for all activities concerning to the employees of an


In short HR department is the hub of the organisation serving as liaison between

the organisation and its employees. On the basis of the size of the company the

HR department is usually called as the Personnel department in medium–sized

establishments, with a limited number of managerial staff and is guided by a

Personnel Manager. For larger and more complex organizations with hundreds of

departments and divisions, the task of managing the workforce as a whole is

much more demanding and intricate.

Some of the most important responsibilities to be carried out by the HR

department include (1) Employee recruitment & Selection, (2) Employee

compensation benefits, (3) Employee relations and (4) Policy formulation. As a

company and the requirements of a position evolve, a company needs to take

certain measures to ensure that the highly skilled workforce is in place. It is

actually the responsibility of the HR department to oversee the skills development

of the company’s workforce. After formulating the requirements criteria to fill up a

vacant post in the organisation, the HR department of the company will call for

application for the specific post from the eligible candidates by way of advertising

on news papers, televisions, mobile phones etc. Employee compensation packages

also come under the prerogative of the HR department. This covers salaries,

bonuses, vacation pay, sick leave pay, Workers' Compensation, and insurance

policies such as medical, dental, life. The Human Resources Department is

responsible for developing and administering a benefits compensation system that

serves as an incentive to ensure the recruitment and keep hold of of top talent

that will stay on with the company.

With the increased rise in unethical practices and misbehaviors taking place in

today's workplace such as age, gender, race, and religion discrimination and

sexual harassment, there needs to be mandatory compliance with governing rules

and regulations to ensure fair treatment of employees. In short, employees need to

know they have a place to turn when a supervisor abuses his or her authority in


Regardless of the organization's size, company policies and procedures must be

established to ensure order in the workplace. These policies and procedures are

put in place to provide each employee with an understanding of what is expected

of them. Similarly, these policies and procedural guidelines will assist hiring

managers in evaluating their employee's performance. These policies can be

established company-wide or used to define each department's function. It is

Human Resource's responsibility to collaborate with department managers on the

formulation of these policies and regulations to ensure a cohesive organization.

All new recruits to the Hotel Leela Kempinski-Kovalam beach hotel are

inducted through an orientation program of 2 days duration called BLOSSOM

(Brand Leela Service Organisation Module). All employees at the hotel are

mandatorily required to abide by the services standards set forth by the Leela

Group of Companies. This set of services standards is known as BLISS (Brand

Leela Integrated Services Standards).

The following is the hierarchy of the positions in the HR department.

HR Head

Assistant HR Manager

HR Executive HR Co-coordinator

Training Department: Training is the process that involves an expert working

with learners to transfer to them certain areas of knowledge or skills to improve in

their current jobs. Training Department is considered to be a stand-by unit of the

HR department. The primary function of this department is to empower and equip

new recruits to the hotel to such a level where they can deliver their maximum to

the company’s growth.

All the activities undertaken in this department is guided and supervised by the

Training Manager. He is responsible for conducting training programmes to the

new recruits inducted into the existing workforce of the company. The spectrum of

the training manager’s responsibility also includes making each new recruit aware

of what his duty is? How he is to do his duty? Etc.

In short, it is the function of the training manager to make the new workforce of

the company learned of what is exactly expected of them, and on what degree.

Training is usually given to the employees on the following grounds as and when

it demands.

I. When a performance appraisal indicates performance improvement is needed

II. To "benchmark" the status of improvement so far in a performance

improvement effort

III. As part of an overall professional development program

IV. As part of succession planning to help an employee be eligible for a planned

change in role in the organization

V. To "pilot", or test, the operation of a new performance management system

VI. To train about a specific topic

Several benefits can be reaped out of rendering proper training programmes.

I. Increased job satisfaction and morale among employees

II. Increased employee motivation

III. Increased efficiencies in processes, resulting in financial gain

IV. Increased capacity to adopt new technologies and methods

V. Increased innovation in strategies and products

VI. Reduced employee turnover

VII. Enhanced company image, e.g., conducting ethics training

Employee training programs provide focused training to a number of employees

either on a one-time or recurring basis. Programs can be developed in-house or

employees can attend more generic programs, e.g., at a local university, college or

training center. Programs are conducted for a variety of topics, e.g., training about

communications, computer skills, customer service, quality initiatives, safety,

diversity training, etc.

The Club: - It is built to showcase the vision of a “hotel within a hotel”; The

Club at every Leela Palaces, Hotels and Resorts property is actually the epitome of

a luxury hotel within a luxury hotel. And the Leela Kempinski Kovalam Beach,

Kerala is no exception to that rule.

The Club offers many exclusive delights to its guests. In fact, the guests so close

to the restless Arabian Sea that the pounding of the waves on the rocks below acts

as the perfect lullaby.

Guests at The Club also enjoy services like in-room entertainment, a minibar, a

writing desk overlooking the sea, airport transfers and high tea in the lounge, to

mention a few services. The guests can also avail a24 hour butler to help them

with packing, food and drink of their choice and travel and ticketing


All the operations of the club are handled and guided by the Club Manager who is

responsible for all the customer relations affairs within the club. In fact the guests

in the club have to experience more luxury in terms of amenities and facilities

offered. They have everything (clubs, pubs, restaurants, spa etc) as separate for

themselves, means that those facilities within the club can only be availed by the

club-inmates. Those staying outside of the club cannot use those within the club.

That is why the club concept at Leela Hotels is defined as a ‘Hotel within the


Some of the facilities and offerings at the club are

A. Arrival and departure transfers from the Airport by luxury Nissan X Trail


B. Round the clock Butler Service

C. Breakfast with the option of in room dining or at the Café

D. Selection of movies and music

E. Complementary soft beverages, tea/coffee in the lounge

F. Hi - Tea at the lounge from 4:00 to 5.30 pm everyday

G. Complementary Pressing Service

H. Exclusive gymnasium, international Spa and Infinity edged swimming pool

overlooking the sea

I. Complementary internet access in the lounge

J. I POD dock on request

K. Linear, minimalistic design – contemporary old world luxury at the same

time. Each room features state of the art LCD flat screen television, DVD

player (with choice of movies and music), wireless internet access, twin

headed massage shower heads, and electronic safe.

L. Stunning sea rimmed infinity swimming pool.

M. Ocean deck with sunset views

Finance Department: - A hotel’s accounting department is keeping track of

the many business transactions that occur in the hotel. The accounting

department does more tan simply keep the books. Financial management is

perhaps a more appropriate description of what the accounting department does.

Whereas the control department is concerned with cost control guidelines by way

of reducing in investment, reduction in operating cost, control of food service cost,

control of beverage cost, lobour cost control etc.

In most hotels the person in charge of the finance department of the hotel is called

the Chief Financial Officer. Usually he is addresses by the short-form of his

designation as CFO. In most major hotels, the CFO or Finance

Controller/Manager ranks among the top two or three decision makers in the

hotel hierarchy. No organisation can survive without a very strong financial vigor.

The finance controller is responsible for presenting a Financial and budgetary

programs which can strengthen management’s control of hotel’s operating

expenses and help determine the profitability of the property. Specifically

forecasting gives owners a projected level of sales, while budget alert owners and

operators alike to significant expenditures that are on the horizon or predictable

shortfalls in revenues. Used together, forecast and budgets can provide a bench-

mark for sales intensive programs, executive-compensation bonuses, incentive

based management fees and capital expenditure.

The administration and department of accounting and finance coordinate

management and staff functions. This includes extensive contact with our

shareholders, other partners. The department of accounting and finance is

responsible for accounting, payroll, budgets and cash flow management. The

department of Information Technology (IT) is also managed by the Finance

department in most hotels.

The following shown chart is the common hierarchy of the positions in the

Finance Department in 5 star hotels. But it cannot be guaranteed that the same

structure is followed by all the 5 star hotels. It may depend upon the size and the

scale of operations of the respective hotels.










Marketing is the study and management of the exchange process. It involves

the things that the property will do to select a target market and stimulate

or alter that market demand for the property services. It consists with

research, action, strategies advertising, publicity, & sales and promotion.

Sales consist of direct efforts to sell the property by personal sales, calls,

telecommunication & mailings.

Marketing and sales division can be varied with the size, type, and budget of

the hotel to hotel. Small hotel only have one person who is handling all the

sales activities related to the hotel business. But large hotel have organized

sales and marketing division with no of key personnel.

A sales department is particularly very essential in large hotels and those

with convention and banquet facilities. The General manger participates

actively in this area for and basic reason. First sales and their development

is a long-range activity of the hotel and the second sales policy of the hotel

interwoven with the image of the hotel has in the eyes of public and GM

wishes to enhance that images. This department may have Sales. Manager

who assists the GM on sales calls. The GM and Sales Manager prepare a

budget for the year sale of rooms and the conference hall. They try and

achieve the budget by the end of the year. This is done with a lot of planning

and research. This would be achieved by a contract with one or more travel

agents in and outside the town. And for selling the conference hall the sales

team should contact various companies and other business firms.

The main function of this department is to increase the sales volumes of the

different services offered in the hotel, be in terms of rooms, food, beverages,

clubs, restaurants, spa etc. Usually the tools adopted by the department to

make the guests accustomed to different services and offerings in the hotels

are as by (1) Correspondence (2) Personal contact (3) mailings (4) Fax etc.

The other core areas of its consideration are as follows,

⇒ Conduct a market Audit.

⇒ Analysis of market competition.

⇒ Market place analysis.

⇒ Formulation of new schemes and niche offerings.

⇒ Selection of profitable market segments.

⇒ Positioning the property.

⇒ Establishing the objectives and the action plan.

⇒ Monitoring and evaluating the market plan.

⇒ Restructure the market plan, if needed.

⇒ Implement the plan as it is demanded.


Head of sales

Associate Head of Sales

Sales Executives Sales coordinators

Purchase Department: - While operating a hotel is supposed to be a

difficult task, managing the entire procurement process (for such a unit) is

even more so. The purchase department handles the task of procurement

yet all departments play a crucial role in it. That said technology ensures

that inter-departmental activities takes place flawlessly. Although purchase

has now become dependent on technology for managing inventories and

order status, it was originally a manual job. From selection of products to

deciding on a vendor, this department rests on the human ability of

judgment. However technology is now making the processes related to other

departments easier by streamlining all activities.

Purchase is about procuring products in large quantities for the stores

catering to various department needs. In this, various operational tools

bridge the relationship between the purchase department and stores,

fulfilling the requisites of all departments. At LEELA the department is

responsible for the procurement of all the perishable commodities from the

local markets such as those in Trivandrum and Kochi. Rare brands of

beverages are brought from Delhi or Chennai. While the common ones are

procured from Kerala State Beverages Corporation (KSBC). The stipulated

time of working hours for the purchase departments is from 9AM TO 5 PM.

Purchase Manager is the person who is in full control of the entire

operations of the department.

The hierarchy of the Purchase Department is as follows

General Manager

Purchase Manager

Purchase Executive

Purchase Assistant Purchase Driver

Engineering Department: - The energy crisis throughout the world has

given a great importance to the engineering department of a hotel. This

department provides on the day-to-day basis the utility services, electricity, hot

water, steams, air-conditioning and other services and is responsible for repair

and maintenance of the equipment, furniture and fixtures in the hotel. The

engineering department has an important role in satisfying the guest- demand

and helping to maintain the profit level of the hotel. The cleaning, up-keep, repair,

replacement, installation and maintenance of property and its furnishing,

machinery and equipment are the joint responsibilities of

Engineering/Maintenance and the Housekeeping Department.

The person in charge of this department is the chief-engineer. It is the

responsibility of the engineering department to provide the hotel with electrical

service that meets the needs of individual departments and the needs of guests.

Refrigeration, food production equipment, and computer systems are examples of

other building system functions for which the engineering department may be

responsible for repairing, maintaining, replacing, or managing. While the

maintenance of many of these systems may be contracted to outside agencies

such as the supplier, the engineering department nonetheless is the first line of

defense in keeping them operating efficiently.

In most modern hotels, the installation and service of elevator systems is generally

the province of the elevator manufacturer, and hotels typically have extended

maintenance agreements for the elevators. Most engineering departments,

however, closely monitor the operation of the elevator systems. In modern high-

rise hotels with high speed elevator service, the slightest problem with that service

should be quickly and easily identified and reported to the contractors. It is

generally the responsibility of the engineering department to monitor these

services and their contracts closely and carefully.

The following shown chart depicts the important hierarchy of the

engineering division in hotels:






Security Department: - The security of guests, employees, personal property

and the hotel itself is an overriding concern for today’s hoteliers. In the past, most

security precautions concentrated on the prevention of theft from guests and the

hotel. However, today such violent crimes as murder and rape have become a

problem for some hotels. Unfortunately, crime rates in most major’s cities are

rising. Hence today security department also concentrate on these additional

criminal activities too.

The main position in the security department is of the Assistant Security Manager.

The department includes the fire and safety officer and the duty guards. The

primary function of the security department is to provide property surveillance

and protection to the guest. The latter is more important for the security

department in the Leela Hotel.

In the hotel there are two variants of security staff working round the clock in

different shifts. First is the direct security staff of the Leela hotel working in three

different shift of 8 hour duration. Second is the temporary staff from a security

agency to provide surveillance to the entire property of the hotel as it is spread

over an area of more than 60 acres.

Considering flawless security to the guests, all the guest rooms of the hotel are

installed with spring glass and smoke detectors and automatic alarm system.

There is a central security office working inside the hotel with all the modern fire

fighting equipments such as fire extinguishers, dry powder, and other fire dousing


As a part of the security provision both to the hotel’s property and the guests the

entire geographical area of the hotel is divided in to 3 portions such as Beach View

Point, Tide point and the Club – these three points are all together known as the

‘assembly point’ . The most common methods adopted by the fire and safety wing

of the hotel (it came under the security department) are liquid carbon dioxide, dry

powder etc. The security control post of the hotel will be functioning on 24 x 7

with office secretary, night and day supervisor, and security officer.

The security setup at the hotel is faultless since the hotel cannot compromise on

the safety of its valuable guests. All the activities of the security department is

controlled and supervised by the main security officer. He is also responsible for

conducting training programmes on security and fire fighting to the security staff

of the hotel.

The following chart shows the division of positions in the security








SPA: - At Leela-Kovalam a specialty centre is working exclusively for ayurveda

treatments such as Panchakarma - the ultimate ayurvedic detox, Shirodhara and

Abhyanga - the ayurvedic oil bath and massage, as well as specially formulated

ayurvedic packages for rejuvenation,

Spa Manager is the person in charge of the entire operation at the spa center of

the Leela Kovalam hotel. For ayuvedic treatments and therapies to the guest the

company is hiring the professional service of an ayuvedic contract agency known

as Soft Touch. All the services to the guest in Spa are extra-paid services. The

most common services provided in the centre are massages and yoga treatments.

The Spa Manager should be answerable to the Assistant Executive Manager on

the performance of the department. The scheduled working hours of the Spa is 7

am – 10 pm, with 2 different shifts one starts from 7 am in the morning till 4 pm

in the evening. Another is from 4 pm till 10 pm.

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