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A Organisation Study report Submitted in partial fulfillment of the requirements for the award of the

Submitted by


Under The Guidance of

Faculty guide Ms. SIMI Project Guide Mr. RAMESH KUMAR






I declare that the project entitled Organizational Study submitted by me for the award of the degree of Master of Business Administration of the University of Kerala is my own work. The report has not been submitted for the award of any other degree of this University or any other University.


Certificate from the Organisation


This is to certify that the project report entitled Organizational Study, submitted here is an bonafide record of the work done by Mr. SREEKANTH. S under my guidance in partial fulfillment of the requirement for the award of Degree in Master of Business Administration of the University of Kerala and this work has not been submitted by him for the award of any other degree, diploma or title of recognition earlier.


Faculty Guide Ms . SIMI


First I thank the God Almighty for the grace showered on me. The success of this project lies in the hands of many people who have helped and guided me in completing this project. My heartfelt gratitude to Mr. Ramesh Kumar, Senior Assistant, Marketing Division, KTDC, Trivandrum for giving me the proper guidance and advice during this project. My sincere thanks to Dr. K.S. Chandrasekhar, Director,Institute of management in Kerala and Ms. Simi, Faculty Guide, IMK, Palayam for giving me proper guidance and advice and the tireless efforts for error rectification during this project. With due reverence, I also thank my parents, my friends and all my well wishers who had encouraged and supported me in making this Endeavour a success.




Organisation study helps a management student to acquire knowledge and skills require making a major contribution to the challenges of industrial and commercial management. The nations prosperity depends upon industrial and commercial success, so now a days greater emphasis is given on industrial education. The organisation I selected (Kerala Tourism Development Corporation). The main purpose behind the study is to understand the overall performance of the organisation, which include : its function and its various other activities. By proper analysis of the functions and activities of various departments the importance of their coordinated efforts is considered. The study is conducted during the period of June-July.

It helps: To enable, using how to process business information, its collection, analysis and presentation, applying it to make an immediate contribution to the challenge of industrial and commercial organization
To develop students with knowledge of business and managements who will

be able to handle successfully the complexity and uncertainty of the contemporary business environment
To provide a comprehensive introduction to business organization, the

various business functions and management techniques.



The main objective behind the study is to acquire in-depth knowledge of the To analyze the external business environment of the organisation. To study the functions and responsibilities of various departments and To assess the growth in productivity of Tourism Industry in India.
To prescribe a package of recommendations meant for the government and the To analyze competition within the industry.

organization. 2. 3.
4. 5. 6.

department heads respectively.

Tourism. Industry both to make the industry more effective and viable.


To know more about tourism and its related activities. To understand the day to day activities of the organization To study policies and procedures of organization, its vision and mission.


10. To identify problems faced by the organization and to make solutions. 11. To analyze the strength, weakness opportunities and threats of the organization

1.3 METHODOLOGY The research design is descriptive. Primary and secondary data were collected through different means. 1.3.1 Primary Data Primary data was collected through interview with executives of the firm and discussion with the staff and by observing the organisations day-to-day functions. 1.3.2 Secondary Data Secondary data was collected from the following sources:

Data collected from catalogues, broachers, internet etc. Data collected from company website

Data collected from annual report Data collected from books, journals, magazines.



Tourism is widely accepted as the Worlds largest industry. Today, tourism has

emerged as a dominant economic force anywhere in the world. The scope of the study is limited with in KTDC. The different functional departments and its operations were selected for detailed study. The main aim of the study is to familiarize with various departments. The study brings out the functioning of the organization called KTDC, how it is instrumental in improving the tourism industry of the state and also different policies, departmental activities, guidelines, administration procedures etc.

The study is based on primary and secondary sources. The basic methodology has been to review the relevant literature and meet with the personnel of the corporation for additional and new or updated information and exploring any other data sources available.

The present study had no scope for primary research or in-depth examination or assessment of any one particular issue. Therefore the analysis is more of an overview based on the existing work of KTDC and their future activities.


Time limitations of the staff members. The study did not go into details because time was limited to 15 days. The study is not an exhaustive one as it pertains to KTDC office, Trivandrum. There was a busy condition prevail in the organization so that a deep study in each areas is not possible.

The reliability of the data used in the study is depended upon the information given by the managers and other staff in the office.


Personal bias of respondents. Confidential data are not disclosed.

Chapter 1Introduction, Objectives of the study, Methodology, Scope of the Study Limitations, Chapterisation. Chapter 2Chapter 3Chapter 4 Chapter 5 Chapter 6Chapter 7Industry Profile Company Profile, History, Strategic Intent, Products. Organisational Structure Analysis Objective Wise SWOT Analysis & Michael Porters Five Force analysis Findings, Conclusion and Suggestions.



2.1 TOURISM INDUSTRY - An Overview
Tourism is a collection of activities, services and industries that delivers a travel experience, including transportation, accommodation, eating and drinking establishments, retail shops, entertainment businesses, activity facilities and other hospitality services provided for individuals or groups travelling away from home. World Wide Tourism Organization defines visitors as any person traveling to a place other than of his or her usual environment for less than twelve month and whose main purpose of the trips other than the exercise of an activity remunerate from within the place visited.

Tourism is travel for recreational, leisure or business purposes. The World Tourism
Organization defines Tourists as people who "travel to and stay in places outside their usual environment for more than twenty-four hours and not more than one consecutive year for leisure, business and other purposes not related to the exercise of an activity remunerated from within the place visited". Tourism has become a popular global leisure activity. In 1976, the Tourism Society of England's definition was: "Tourism is the temporary, short-term movement of people to destination outside the places where they normally live and work and their activities during the stay at each destination. It includes movements for all purposes." In 1981, the International Association of Scientific Experts in Tourism defined tourism in terms of particular activities selected by choice and undertaken outside the home. Tourism is a service industry. Today's tourists and travelers need and expect service, whether related to trip planning, reservations handling, efficiency in transportation, or the services available at their destination. The tourist has the right to expect profess sional service. The quality of our leisure time is becoming increasingly important to us, and the demand for expert, professional service in planning that leisure time is growing even more important. The traditional tourist may represent an important proportion of the total visitor population, but we cannot equate the tourism section with tourists or pleasure related activities alone. The existence of a tourism industry is primarily from the traveler's desire to

experience a change and willingness to spend money in the pursuit of the experience. The tourism industry is composed to those sectors of the economy providing services such as accommodation, food and beverages, transportation and recreation, as well as the associated distribution and sales services. It is supplemented by public and private concerns organizing and providing a broad range of events and attractions. The industry operates on profit motive and its promotional efforts are aimed primarily at increasing tourist travel. The economic health of the tourism industry depends on the value and pattern of its customers, use of a large variety of facilities and services, and it counts both local residents and all classes of visitors among its valued customers. CHART NO: 1.1

The growth and development of tourism industry as we experience today is a post world war phenomenon. Mechanization, urbanization, growth of higher disposable income, higher standard of living, demand for leisure and recreation, search for authenticity and quest for knowledge have immensely contributed to the growth of modern tourism. Tourism creates employment to the skilled, semi skilled and unskilled personnel by generating direct, indirect and induced employment. When tourist visit the destination, they make use of the facilities and avail various types of services, for which they make due payment. This results in creating income to the region. Besides, governments at local, regional and national levels are benefited through tax payment at different levels, by the industry. A much broader perception on tourism would reveal its capacity to generate

foreign exchange while promoting regional development. Thus by making significant contribution to government revenue, foreign exchange, income, employment and regional development, tourism acquired a pride of place in the development paradigm of many countries. CHART NO: 1.2

World Tourism Industry is an industry which is flourishing all over the world. The World Tourism Organisation (WTO) claims that tourism is currently the worlds largest industry with annual revenue of over $3 trillion and in many regions the single largest source of investment and employment. The scenario of the World tourism Industry is always in a state of flux, ever changing. It is reckoned that end of 2010 will see the world tourism industry generating as many as 234 million job opportunities for the people. It is also assumed that the contribution towards GDP by the world tourism industry will be approximately 10.3%. The hotel industry is one of the oldest commercial industries in the world. The history of the first inn goes back to the 6th Century B.C. the earliest inn were run by husband and wife teams who provided large halls for travelers to sleep on the floor. They also provided modest food, drinks and staying facilities.

The leading hotel ring was taken up by the nations of Europe especially Switzerland. In 1650 an American named Pascal introduced Caf in Paris and Coffee shop in London. In the meanwhile came the development of inns into travelers eating house etc catering to all types of communities. The real growth of modern hotel industry took place in U.S.A beginning with the opening of City Hotel in New York in 1794. The introduction of ocean liners and eventually air travel brought the matter a step further by bringing all the countries of the world into close contact. The great depression in 1930 had a negative effect on the hotel industry. But after the Second World War the hotel industry recovered and prospered into one of the largest industries in the world today. 2.2

The world tourism organization estimated in the year 1990, there were nearly 415

million international tourist arrivals throughout the world. It estimated that in the year 1991 international tourist arrivals would approach the figure of 450 million or an increase of 5 percent over 1990. These tourists spend billions of dollars in the countries visited. All this activity may be described as tourism. A clear concept and a more precise and scientific definition of tourism is necessary for various purposes. First for the purposes of study in order to describe and define what it covers. Second, for statistical purposes, when the phenomenon is measured, it must also be defined clearly finally, for legislative and administrative purposes. 2.2.1 BASIC COMPONENTS OF TOURISM The tourism industry is made up of three major components Transport sector, which include air water and surface transport Accommodation sector, all types of establishments that offer lodging to visitors Attraction sector which comprises manmade and natural attractions



Modern tourism is an instrument of human education. The role of mass tourism is increasing. It is day by day growing as a instrument of education and of collective and individual culture. it find out the value of mankinds labour. It also helps to know more of ones own country and its historic traditions and its historic cultural values. It widens the knowledge of other people habits, their way of life and many other things causing love and affection for humanity. Tourism create better understanding among the people. It fosters greater awareness of the rich heritage of various cultures. So tourism is of indispensable value for human education. Due to the immense value of tourism United Nations Educational School and Cultural Organisation has regarded tourism as a basic instrument of education Tourism is today the largest single item in world trade, helps in its hold on tremendous economic development, side-by-side, increasing economic growth and prosperity. It also makes amity between different people of the world, socially and culturally and fosters to one another beliefs and tolerance towards other custom. Tourism gives a direct knowledge and contract with the great achievement of human mind. So its helps to travel the basic similarities of human emotions irrespective of country and culture. So tourism, while developing many industries, builds friendship and enlarges understanding among nations. Tourism is a chance of through which we can promote knowledge and understanding the prospectus of establishing the foundation of a world community. The world tourism organisation is string hard to help and assist its more than 100 members from states to consider tourism and its problems in it and find out one of the most significant expressions of modern civilization.



Tourism is the worlds largest industry, with annual revenue of almost $500 billion and it is growing fast, with Airline arrivals expected to double by 2011. Globally, Tourism accounts for roughly 35 % of exports of services and over 8 % of the export of goods (WTO). Leisure is estimated to account for 75 percent of all international travel. The world tourism organization (WTO) estimated there were nearly 900 million international tourist arrivals in 2007 from 846 millon in 2006 an increase about 6 percent. This represents nearly 52 million more arrivals than in 2006 and they are expected to reach 1.6 million by 2020. Domestic tourism (people going on holiday in their own country) is generally thought to be 4.5 times greater than international arrivals. The international tourism receipts totaled US $ 753 billion in 2006.


India attracted about 4 million foreign tourists in 2006 that spent US$8.9 billion.

The tourism industry in India generated about US$ 100 billion in 2008 and that is expected to increase to US$275.5 billion by 2018 at a 9.4% annual growth rate. The Ministry of Tourism is the nodal agency for the development and promotion of Tourism in India. It maintains the Incredible India campaign. India is one of the popular tourist destinations in Asia. Bounded by the Himalayan ranges in the north, and surrounded on three sides by water (the Arabian Sea, Bay of Bengal, and the Indian Ocean), with a long history and diverse culture, India offers a wide array of places to see and things to do. In 2004, foreign tourists visiting India spent US$ 15.4 billion - the ninth highest in the world. India is also ranked among the top 3 adventure tourism destinations Tourism industry in India is on a great boom at the moment. It is India's third largest export industry after Readymade Garments, Gems & Jewellery. India has tremendous potential to become a major global tourist destination and Indian tourism industry is exploiting this potential to the hilt. Travel and tourism industry is the second highest foreign exchange earner for India, and the government has given travel & tourism organizations export house status.

The buoyancy in the Indian tourism industry can be attributed to several factors. Firstly, the tremendous growth of Indian economy has resulted in more disposable income in the hands of middle class, thereby prompting increasingly large number of people to spend money on vacations abroad or at home. Secondly, India is a booming IT hub and more and more people are coming to India on business trips. Thirdly, aggressive advertising campaign "Incredible India" by Tourism Ministry has played a major role in changing the image of India from that of the land of snake charmers to a hot and happening place and has sparked renewed interest among foreign travelers. Travel & tourism industry's contribution to Indian industry is immense. Tourism is one of the main foreign exchange earners and contributes to the economy indirectly through its linkages with other sectors like horticulture, agriculture, poultry, handicrafts and construction. Tourism industry also provides employment to millions of people in India both directly and indirectly through its linkage with other sectors of the economy. According to an estimate total direct employment in the tourism sector is around 20 million. Travel and tourism industry in India is marked by considerable government presence. Each state has a tourism corporation, which runs a chain of hotels/ rest houses and operates package tours, while the Central Government runs the India Tourism Development Corporation. In the year 2002, the Government of India announced a New Tourism Policy to give boost to the tourism sector. The policy is built around the 7-S Mantra of Swaagat (welcome), Soochanaa (information), Suvidhaa (facilitation), Surakshaa (security), Sahyog (cooperation), Sanrachnaa (infrastructure) and Safaai (cleanliness). Medical Technology used to be differentiator between India and the West. This gap has long been bridged since the best hospitals in India now offer the same equipment and techniques as their counterparts around the world.


The main demand for medical tourism is generated from the 20 million Indians who live abroad, through a growing number of foreigners also are keen on speedy and inexpensive treatment. They are influenced by two facts: one that India now has many private hospitals that the world class and two, that it there is one strength that Indian doctors in abundance it is experience, Owing to Indias prodigious population, its doctors treat twice the number of patients in comparison to doctors in the West, Even more reassuring is the fact that many of them have studied and practiced medicine abroad. Between 1996 and 2001, the number of foreign patients seeking treatment in India as people took to the idea of receiving treatment or diagnosis in with a holiday included. West Asia for example has avoided the US and Europe for medical treatment after the 9/11 terrorists attacks opting for India instead. Also value added service such as transfers from the airport, special food for foreigners and translators for patients who cannot speak English and buoyed travel for the same reason. Apart from this, government has taken several other measures for the promotion of tourism. A multi-pronged approach has been adopted, which includes new mechanism for speedy implementation of tourism projects, development of integrated tourism circuits and

rural destinations, special capacity building in the unorganized hospitality sector and new marketing strategy. The outlook for travel industry in India looks extremely bright. India as a tourism destination is the toast of the world at the moment. 2.6

Kerala, a state situated on the tropical Malabar Coast of southwestern India

is one of the most popular tourist destinations in the country. Named as one of the ten paradises of the world by the national Geographic Traveler, Kerala is famous especially for its ecotourism initiatives. Its culture and traditions, coupled with its varied demography, has made Kerala one of the most popular tourist destinations in the world. Growing at a rate of 13.31%, the tourism industry is a major contributor to the States economy. Until the early 1980s, Kerala was a hitherto unknown destination, with most tourism circuits concentrated around the north of the country. Aggressive marketing campaigns launched by the Kerala Tourism Development Corporation- the government agency that oversees tourism prospects of the state-laid the foundation for the growth of the tourism industry. In the decades that followed, Kerala Tourism was able to transform itself into one of the niche holiday destinations in India. The tag line Kerala- Gods own Country was adopted in its tourism promotions and became synonymous with the State. Today, Kerala Tourism is global super brand and regarded as one of the destinations with the highest brand recall. In 2006, Kerala attracted 8.5 million tourists- an increase of 23.68% in foreign tourist arrivals compared to the previous year, thus making it one of the fastest growing tourism destinations in the world. TRENDS IN DOMESTIC & FOREIGN TOURIST ARRIVALS INTO KERALA (2002 TO 2008) YEAR 2002 2003 2004 2005 2006 2007 2008 DOMESTIC TOURISTS 55,68,256 58,71,228 59,72,182 59,46,423 62,71,724 66,42,941 75,91,250 % VAR 6.3 5.4 1.7 4.3 5.47 5.92 14.28
TABLE No 2.1

FOREIGN TOURISTS 2,32,564 2,94,621 3,45,546 3,46,499 4,28,534 5,15,808 5,98,929

% VAR. 11.30 26.70 17.30 0.27 23.70 20.37 16.00

Foreign Tourist arrival to Kerala during the year 2008 is 5, 98,929. It shows an increase of 16.11 % over the previous year. Domestic Tourist arrival to Kerala during the year 2008 is 75, 91,250. It shows an increase of 14.28 % over the previous year. Foreign exchange earnings for the year 2008 are Rs.3, 066.52 Crores which recorded a growth of 16.11 % over the previous year. Total Revenue (including direct & indirect) from Tourism during 2008 is Rs.13, 130.00 Crores, showing an increase of 14.84% over the last years figure. Considering the district wise Foreign Tourist arrival, Wayanad district shows the highest variation of 37.75% over 2007. Considering the district wise Domestic Tourist arrival, Alappuzha district shows the highest variation of 37.47 % over 2007.


Popular attractions in the state include the beaches at Kovalam, Cherai and Varkala; the hill stations of Munnar, Nelliampathi. Ponmudi and Wayanad; and national parks and wildlife sanctuaries at Periyar and Eravikulam National Park. BEACHES Flanked on the western coast by the Arabian Sea, Kerala has a long coastline of 580 Km (360.39 miles); all of which is virtually dotted with sandy beaches. Kovalam beach near Thiruvananthapuram was among the first beaches in Kerala to attract tourists. Rediscovered by back-packers and tan-seekers in the sixties and followed

by hordes of hippies in the seventies, Kovalam is today the most visited tourist destination in the state. Other popularity visited beaches in the state include those at Alappuzha beach, Nattika beach (Thrissur), Vadanappilly beach (Thrissur), Cherai beach, kappad, Marari beach, Fort Kochi and Varkala. The Muzhappilangad beach at Kannur is the only drive- in beach in India. BACK WATERS The backwaters in Kerala are a chain of brackish lagoons and lakes lying parallel to the Arabian Sea coast (known as the Malabar Coast). Kettuvallam (Kerala House boats) in the back waters are one of the prominent tourist attractions in Kerala. Alleppy, known as the Venice of the East has a large network of canals that meander through the town. The Vallam kali (the snake Boat Race) held every year in August is a major sporting attraction. The backwater network includes five large lakes (including Ashtamudi kayal and Vembanad kayal) linked by 1500 Km of canals, both manmade and natural, fed by 38 rivers, and extending virtually the entire length of Kerala state. The backwaters were formed by the action of waves and shore currents creating low barrier islands across the mouth of the many rivers flowing down from the Western Ghats range. HILL STATIONS Eastern Kerala consists of land encroached upon by the Western Ghats; the region thus includes high mountains, gorges, and deep-cut valleys. The wildest lands are covered with dense forests, while other regions lie under tea and coffee plantations (established mainly in the 19th and 20th centuries) or other forms of cultivation. The Western Ghats rises on average to 1500 m elevations above sea level. Certain peaks may reach to 2500 m. Popular hill stations in the region include Devikulam, Munnar, Nelliyampathi, Peermade, Ponmudi, Vagamon, Wayanadan Kottancherry Hills. WILD LIFE Most of Kerala, whose native habitat consists of wet evergreen rainforests at lower elevations and highland deciduous and semi- evergreen forests in the east, is subjected to a humid tropical climate. However, significant variations in terrain and elevation have

resulted in land whose biodiversity registers as among the worlds most significant. Most of Keralas significantly biodiverse tracts of wilderness lie in the evergreen forests of its easternmost districts. Kerala also hosts two of the worlds Ramsar convention-listed wetlands: Lake Sasthamkotta and the Vembanad- Kol wetlands are noted as being wetlands of international importance. There are also numerous protected conservation areas, including 1455.4 Km2 of the vast Nilgiri Biosphere Reserve. In turn, the forests play host to such major fauna as Asian elephant, Bengal Tiger, Leopard, Nilgiri Tahr, and Grizzled Giant Squirrel. Most remote preserves, including Silent Valley national Park in the Kundali Hills, harbor endangered species such as Lion-tailed Macaque, India Sloth Bear, and Gaur. More common species include Indian Porcupine, Chital, Sambar, Gray Langur, Flying Squirrel, Swamp Lynx, Boar, a variety of catarrhine Old World monkey species, Gray Wolf, common Palm Civet. Silent Valley national park in Palakkad is home to the largest population of lion- tailed Macaque. They are among the worlds rarest and most threatened primates.

AYURVEDA Medical tourism, promoted by traditional systems of medicine like Ayurveda and siddha are widely popular in the state, and draws increasing number of tourists. A combination of many factors has led to the increase in popularity of medical tourism: high costs of healthcare in industrialized nations, ease and affordability of international travel, improving technology and standards of care. However, rampant recent growth in this sector has made the government apprehensive. The government is now considering introduction of a grading system which would grade hospitals and clinics, thus helping tourists in selecting one for their treatments.

Keralas culture is mainly Dravidian in origin, deriving from a greater Tamil heritage region known as Tamilakam. Later, Keralas culture was elaborated on through centuries of contact with overseas cultures. Native performing arts include Koodiyattom,

kathakali and from its offshoot Kerala natanam, Koothu (akin to stand- up comedy), mohiniaattam (dance of the enchantress), thullal, padayani, and theyyam. Other arts are more religion and tribal- themed. These include chavittu nadakam, Oppana, which combines dance, rhythmic hand clapping, and ishal vocalizations. However, many of these art forms largely play to tourists or at youth festivals, and are not as popular among most Total revenue generated from Tourism (Direct & Indirect) Rs. in Crores


Foreign Exchange Earnings (Rs. In Crores)

Percentage of Increase

Percentage of Increase

2001 535.00 1.85 4500.00 9.58 2002 705.67 31.90 4931.00 20.42 2003 983.37 39.35 5938.00 12.83 2004 1266.77 28.82 6829.00 15.01 2005 1552.31 22.54 7738.00 13.31 2006 1988.40 28.09 9126.00 17.94 2007 2640.94 32.82 11433.00 25.28 2008 16.11 13130.00 14.84 3066.52 ordinary Keralites. These people look to more contemporary art and performance styles, including those employing mimicry and parody. Additionally, a substantial Malayalam film industry effectively competes against both Bollywood and Hollywood. Several ancient ritualized arts are Keralite in origin; these include kalaripayattu and payattu. Among the worlds oldest martial arts, oral tradition attributes kalaripayattus emergence to Parasurama. Other ritual arts include theyyam and poorakkali. In respect of Fine arts, the State has an abounding tradition of both ancient and contemporary art and artists. The traditional Kerala murals are found in ancient temples, churches and palace across the state. These paintings, mostly dating back between the 9 th to 12th centuries AD, display a distinct style, and a colour code which is predominantly ochre and green EARNING FROM TOURISM INDUSTRY IN KERALA 2001-2008
TABLE No 2.2



The Kerala Tourism Development Corporation Limited (KTDC) was incorporated as a Private Limited Company on 29-12-1965, initially by name Kerala Tourist & Handicrafts Development Corporation (P) Limited. The Kerala Tourism Development Corporation Limited (KTDC) commenced business from 01-04-1966 by taking over Mascot Hotel, Thiruvananthapuram, Kovalam Beach House, Aranya Nivas, Thekkady, Periyar House, Thekkady and Edappalyam Tourist Bunglavu. The Corporation was later renamed as Kerala Tourism Development Corporation Limited with effect from 15-071970. Government has recently approved a proposal to again change the name as KTDC Hotels & resorts Limited. Established with the main objective of the overall development of tourism and auxiliary activities in the state KTDC is successfully running a chain of hotels ranging from Luxury star hotels, Yatri Nivasas, Motels, Restaurants and Beer Parlours etc. It offers a surpassing scale and quality to almost all tourist packages and products such as accommodation, food, transport, shopping. Entertainments, Information and conduct tours throughout the state of Kerala. KTDC would be primarily focusing on building up of capacities to handle increasing flow of tourists into our state in a planned manner, keeping in mind the different segment of tourists market. KTDC has embarrassed on a massive effort focusing quality up-gradation both on its infrastructure and delivery system. Another focus is on promotion of the Kerala cuisine in all motels. KTDC is also focusing on proper waste management in all its properties. KTDC is now working on a well formulated corporate vision and expanding its services base to more and more emergency areas and has been playing a very significant role in developing new tourist destination in the state. KTDC has succeeded in attracting a large number of tourists and major investors in the tourism and travel sector converting Kerala as the most preferred destination in India.


To make Kerala the gods own country an up-market high quality tourist

destination through rational utilization of resources with focus on integrated development of infrastructure sector conserving and preserving the heritage and environment and enhancing productivity income, creating employment opportunities alleviating poverty thereby making tourism the most important sector for the socio-economic development and environment protection of the state 3.3

To carry on the tourism business by helping people travels to green destination

globally and to constantly innovate on means to serve them better with honesty and integrity. To educate and encourage young people with a focus on regional development, employment generation and foreign exchange creator and upholding a strong environment. 3.4

Based on the above mission the objectives of KTDC are:1. Provide accommodation to the tourist by constructing hotels, motels, Yathri Nivas,

Beach resorts. 2. Provide entertainment facilities to tourists 3. To provide transport facilities to tourists



The Kerala Tourism Development Corporation Ltd. owns the largest hotel chain in Kerala. The Kerala Tourism Development Corporation Limited (KTDC) was incorporated as a Private Limited Company on 29-12-1965, initially by name Kerala Tourist & Handicrafts Development Corporation (P) Limited. KTDC commenced business from 0104-1966 by taking over Mascot Hotel, Thiruvananthapuram, Kovalam Beach House, Aranya Nivas, Thekkady, Periyar House, Thekkady and Edappalayam Tourist Bunglavu. The Corporation was later renamed as Kerala Tourism Development Corporation Limited with effect from 15-07-1970. Government have recently approved a proposal to again change the name as KTDC Hotels & Resorts Limited. The Kerala Tourism Development Corporation has a diversity of hotels, from the most luxurious to the most economical from small motel to world-class resorts, providing something for every taste and budget. The Corporation operates 13 hotels, Yathri Nivases and 10 motel and nearly 60 beer parlors, restaurants and cafeteria. It has tours and travels division having a fleet of coaches; tourist reception centres at Trivandrum, Kochi, Kozhikodu and Kumily render valuable service to the tourist. Another major activity is the food festivals conducted by KTDC mainly at Mascot Hotel, Trivandrum and occasionally in other centers KTDC participant in India International Trade fair held at Pragathi Mandan, New Delhi every year. KTDC operates pilgrims shelter at Sabarimala every year and full-fledged restaurants operated at Pamba which serves lakhs of pilgrims. KTDC has renovated all its major hotels like Mascot Hotel, Trivandrum Aryanivas and Lake Palace, Thekkady, Hotel Samudra, Kovalam and Nandavanam, Guruvayoor, The Amusement Park at Veli Tourist Village commissioned recently is an important feature of the tourist spot Neeraja the floating restaurant at Veli has been revamped, Kettuvallam houseboats of the Tharavaadu style at Kumarakam Tourist complex are in operation. Speed boats and cruise boats on hire available are attracting a lot of tourist. Kerala Tourism Development Corporation is actively participating in building up basic infrastructure needed for the development of Tourism in state. They operate star hotels, budget hotels, motel Aarams, Yatri Nivases, restaurants and beer parlours, central reservation systems and

conduct tours, developing Mascot Hotel into a five star deluxe hotel, construction of four star hotel at Munnar, construction of heritage resort at Kumarakam, developing Bolghatty Palace as Heritage Hotel etc. are some of the projects taken by KTDC at present. Kerala Tourism Development Corporation (KTDC) is registered under the Companys Act 1956. KTDC, the states premier destination developer, owns over 60 properties across the state. With properties ranging from luxury hotels to budget hotels and motels, Yatri Nivases and restaurants, KTDC aptly qualifies as the 'Official Host to God's Own Country'. The premium properties of this largest hotel chain in the State are located in the most picturesque theme destinations of Kerala. KTDC also offers Ayurvedic centre, cultural entertainment and the best of Keralas cuisine at all its major establishments. KTDC offers comprehensive holiday package Exclusive Escapades offers holiday packages that are set in the premium properties of KTDC. As a pioneering tourism development corporation, KTDC has also introduced innovative concepts like insured holiday ad rail holidays, which provide a complete Kerala. KTDC is a Government Company established in the year 1965 with the main objective of facilitating the infrastructure for tourism development in the state. the company has so far successfully attained its objective there by becoming the largest in hotel network in the state conduct tour programs, rent vehicle on rent etc. are some of their services. Therefore we can say that KTDC definitely play a significant role in the development of Tourism in the state. A large number of domestic as well as foreign tourists are received by KTDC every year. They also conduct many programs for tourists which help to attract a large number of tourists. A large number of tourists also approve the services rendered to them by KTDC. KTDC has also won several awards for their best performances from Government of India like:

Best performing state for 1999, 2000 and 2001 award for Excellence in Tourism. Most innovative use of information technology 2001 Best Tourism Film - 2001 Most Tourism friendly International Airport 2002 Most Eco Friendly Destination 2002


1. To elevate tourism as the economic and employment priority of the State by using tourism as the vehicle of growth for physical, social and economic development of the State. 2. To develop Infrastructure through private sector and private-public partnership, with Government acting as a facilitator and catalyst.
3. To develop and promote tourism products with continuous focus on backwaters,

Ayurveda, performing arts, pilgrim centers, cuisines and eco-tourism. While promoting Ayurveda, the value of naturopathy herbal medicines and tribal medicines will also be given due importance. 4. To create sufficient quality human resources in the field of tourism within the State and strengthen the institutional mechanism. 5. To strengthen the institutional mechanism. 6. To explore and develop new markets for Kerala Tourism products at domestic and international levels. 7. To conserve and preserve the unique cultural heritage of the State. 8. To ensure the safety and security of tourist 9. For effectiveness, it is proposed to streamline the management of Premium Hotels and Budget Hotels, taking them as different entities. 10. It is important to re-brand the Yathri Nivas into a sophisticated Budget Hotel brand, which will provide modern facilities at a reasonable rate. 11. Training Division to be established to provide continuous training programmes to the permanent and contract staff of KTDC. 12. The investment needs to be addressed in a rational way which will not affect the financial viability i.e., debt-equity ratio for the investment should be in such a manner that the debt component can be absorbed by KTDC. 13. Renovation of the existing properties (which are due) needs to be given priority. Maintenance also to be given prime importance. 14. Attention to be given to capacity enhancement of the existing business places by utilizing the land available in the property premises.

15. Clear cut marketing strategy has to be evolved for different product lines. Online reservation system and virtual walk through has to be introduced in a time bound manner. 16. Non-profitable units working in rented buildings to be closed down. 17. Travel & Tours Division to be made more effective by bringing down the overheads and also exploring the possibilities of out-sourcing. 18. The investment to be arranged towards new and upcoming destinations such as Wayanad and Kannur districts etc.



The affairs of the corporation are governed by the Board of Directors. The total strength of Directors on the Board is 15, of which not more than 9 would be Nonofficial Directors. The present members of the Board are :TABLE No 3.1

1. 2. 3. 4. 5. 6. Dr.V.Venu IAS Dr A.K.Dubey IAS Shri. Ishita Roy IAS Shri. M. Sivasankar IAS Shri. R.P. Sharma IFS Secretary Tourism Principal Secretary Forest & Wild Secretary Finance (Expenditure) Director of Tourism Principal Chief Conservator of Forest

Chairman (Non-official) Director (Official) Director (Official) Director (Official) Director (Official) Director (Official) Managing Director (Official) Director (Non-Official)

7. 8. 9.

Shri. K.G. Mohanlal IFS Shri. K.P. Sathesh Chandran Shri. John Britas Managing Director Malayalam Communications

Director (Non-Official) Director (Non-Official) Director (Non-Official) Director (Non-Official) Director (Non-Official) Director (Non-Official) Director (Non-Official)

10. Shri. Punnalath Dineshan 11. Shri. T. Purushothaman. 12. Shri. Advo. Philip.K.Thomas 13. Shri. Sunny Mannathikaran 14. Shri. Jainedra Kalpetta 15. Dr. A.A. Ameen

The Managing Director is the Chief Executive of the Corporation. He is assisted in the Registered Office by the heads of various divisions, as indicated below:

Sl. No. 1.

Name of Division Secretarial, Finance & Accounts Division Commercial Division

Officers in charge 1. Shri. P.Sreekumar Secretary & Finance Controller 2. Shri. A. Sivadasan Chief Accounts Officer 1. Shri. C.Ramesh Commercial Manager -I 2. Shri.K.P.Ramesan Commercial Manager II Shri. Rajmohan Manager (Marketing) Shri. G. Krishnakumar Chief Corporation Engineer Shri V. S. Daniel Personnel Officer Smt. Seena System Analyst
TABLE No 3.2


3. 4. 5. 6.

Marketing Division Engineering Division Personnel & Administration Division

Systems & Networking



All the exclusive properties are set in exotic theme locales across the State and all the properties have Multi Cuisine Restaurants and Beer parlors Coffee Shops 24 Hour room service Satellite Television Health Club Doctor Call Currency Exchange Travel Assistance & Car


Services Offered by KTDC

TABLE No 3.3



No: of Rooms 66 64 40 06 30 43 04 30 24 30 337 66 06 04 76 66 04 30 100 64 40 06 30 43 04 24 30 241

No: of Beds 114 110 59 10 47 60 07 48 40 55 550 114 10 07 131 114 07 48 169 110 59 10 47 60 07 40 55 388






Source: Company Annual Report

Apart from these KTDC is provided with mid-market segment which includes,

8 Premium/Luxury units 7 Budget Hotels 14 Tamarind Easy Hotels 12 Motels 3 Restaurants 18 Restaurants & Beer Parlours

3.9 Decentralized Units

It consists of large units like Luxury hotels and Budget Hotels. They perform their day to day functions independently. They have their own administrative and accounting department they utilize their funds for their day to day commercial functions. Decentralized units have the right to issue salary certificate to their employees.

Mascot Hotel, located in the heart of Trivandrum City, the Capital of Kerala, is the oldest Star Hotel of KTDC, built during World War I to house the officers of the Royal British Army. And it now stands as a historical edifice polished over time to cater to the tourists or business travelers with all the comforts of a luxury hotel. Mascot turns on its lucky charm with the beauty of its past and the comfort of its present, and what with its accessibility to the Capital City, Mascot Hotel is indeed the idyllic spot to plan a grant retreat! Highlights 62 Deluxe rooms, 2 suits with Sea facing balconies, Restaurant, Coffee shop, Beer Parlour, Ayurvedic Centre, Swimming Pool, Pool side bar, Inhouse Movies, Handicrafts Emporium, Travel Assistance, Car Hire, Laundry, Doctor on call, Currency Exchange. Attractions

Kovalam Beach, Vizhinjam Harbour, Veli-Aakulam Tourist Village, Napier Museum, Art Gallery, Padmanabhaswami Temple, Neyyar Dam, Ponmudi Hill Resort, Varkala Beech

(Deluxe island heritage resort)

Bolgatty Palace is the oldest existing Dutch Palace outside Holland, once the summer palace of the Dutch Governor, later conquered by the British. And today, long after the British Raj, the Bolgatty Palace stands proud in all its resplendent glory, preserved by the KTDC. Just so that you can sit back and enjoy a royal holiday! Highlights 4 palace suites, 16 suits, 6 independent cottages, swimming pool, conference hall, golf course, horse riding, boating and backwater tours, Ayurvedic Centre, restaurant, beer parlour, Kathakali performances, laundry, doctor on call, car hire, currency exchange, travel assistance. Attractions Chinese Fishing Nets, Dutch Palace, Jewish Synagogue, St. Francis Church, Hill Palace Museum, Willington Island, Museum of Kerala History, Malayattoor, Cherai Beach, Fort Kochi etc.

(A KTDC Hill Resort with four star deluxe facilities)|

The true image of mist-clad Munnar opened up by the official host, Tea county. It is located at the picturesque hills of Munnar. Tea county is one of the exotic Hill resort at Munnar. It is the perfect honeymooners and tourist all round the year.


43 rooms, Health Club, Conference Hall, Board Room, Ayurvedic Herbal Body toning massage parlour, Restaurant with dancing floor, Beer Parlour, Indoor games, Paragliding and Trekking arrangements, Car hire, Laundry, Doctor on call, Currency Exchange, Day tour. Attractions Chithirapuram Tea Plantations, Mattupetty Dam, Top Station, Anamudi, Rajamala, Peermade, Marayoor, Chinnar Wildlife Sanctuary etc

4. ARANYA NIVAS (Three star Wildlife Resort, Thekkady)

Call it an expression of the multi hued marvel of nature of the call of the wild, if you please. This place here, conjures up a birds eye view of the tranquil lake, the verdant jungles, the spice-scented plantations and more to captivate your senses. Aranya Nivas, the only resort in India to be located right in the heart of game reserve by the banks of the Periyar Lake, brings you face-to-face with the animals that rule the jungle, to give you an experience unlike any other! Highlights: 30 rooms, Suites, Swimming Pool, Restaurant, Beer Parlour, Handicrafts Emporium, In-house Movie, Travel Assistance, Car Hire, Laundry, Doctor on call, Currency Exchange. Attractions : Elephant rides and Wildlife Safari, Trekking through the dense woods

and sprawling tea, coffee, cardamom plantations, Boat Cruise on the Periyar Lake, Tigers, Majestic Asiatic Wild Elephants, Nilgiri Langur, Wild Boar.

(Deluxe Wildlife Heritage Hotel, Thekkady)

This resort offers you unlimited peace and tranquility, interrupted only by the twitter of birds, a cry in the wilds or the excitement of spotting wildlife from your window. Thekkady, one of Indias most fascinating natural wildlife sanctuaries prepares you for an encounter with the wild side of Kerala. Our Plantation eco tours, animal safari, trekking and boat cruise among others, allow you to explore the fascinating jungles at will, to keep your adrenaline levels at an all time high! Lake Palace, set in the backdrop of the Periyar Lake, offers the tranquility of the lake, the adventure packed verdant jungles, spice scented plantations and more. Highlights 6 palatial deluxe rooms, In-house movies, Restaurant, Car Hire, Laundry, Doctor on call, Currency Exchange etc. Attractions Boating inside the wildlife sanctuary, jungle safaris through evergreen rainforests, wildlife sightings, jungle treks and the call of the wild.

(4-Star Backwater Resort, Kumarakom)

Kumarakom, the picturesque backwater destination, with palm fringes, thatched houseboats, fishing boats and the work, slumbers ever so sweetly on the banks of the Vembanad Lake of Kuttanad, the Rice Bowl of Kerala. Water Scapes, sprawled over a seven-acre estate at Kumarakom, surrounded by mangrove woods, provides the perfect gateway from the everyday grind, with its backwater cruise in country boats/thatched houseboats and sights of the chirping migratory birds at the Kumarakom Bird Sanctuary to redeem the soul and uplift your spirit. Highlights 40 water front cottages, swimming pool, restaurant, beer parlour, Ayurvedic Centre, Conference Hall, Boating, Backwater Tours, Sightseeing trips, Car hire, currency exchange, Laundry, Amphitheatre.

Attractions House Boat Cruises with stopovers for a glimpse of the rustic life, toddy-tapping and fishing trips, a trek down to the Kumarakom Bird Sanctuary etc.

(A KTDC Ayurvedic Lake Resort at Thanneermukkom) Ayur village Ayurvedic Lake Resort, set by the backwater of Kumarakom A Resort that Capture the very best of kerala and the very best of Ayurveda, the 5000 year old system of holistic healing. Highlights 37 rooms overlooking the backwaters, Ayurveda treatment, Conference hall, Yoga and meditation, Water sports, Boating etc.

(Deluxe Beach Resort, Kovalam) The name of this beach resort itself means "the ocean" and it is an ideal place to enjoy the fullness of the beauty of Kovalam, the enchanting beach destination. Set in inspiring environs, every room of the hotel overlooks the sea and the sprawling lawn stretches upto the beach. In its very design, location and ambience, it captures the essence of the sun, the sand and the sea. Visitors can surf on the waves, taste some of the best seafood delicacies or simply let the calm of the deep blue overwhelm you. A former fishing village, Kovalam is 16 kms, away from Trivandrum. With a high rock cape and a calm bay of blue waters, this beach paradise creates a unique water magic on moonlight nights. At certain coastal areas there are beautiful patches of coral reefs, a pretty sight for underwater snorkeling indeed. Highlights

62 deluxe rooms, 2 suits with a sea facing balconies Restaurants Coffee shops, Beer parlour, Ayurvedic centre, swimming pool, pool side bar, in house movies, handicrafts emporium, travel assistance, car hire, laundry, doctor on call, currency exchange.

9. MARINA HOUSE (A Marina View) Built in traditional Kerala architectural style, Marina House offers state-of-the-art accommodation and recreation facilities like health clubs, coffee shops and Ayurvedic spa. Overlooking Indias first Marina, the resort also offers a scenic view of the backwaters and heritage golf course

Accessibility Cochin International Airport 45mins Rail& Bus terminal 5 mins by ferry across backwaters and 2 km by road. Highlights 20 deluxe rooms, 4 suits overlooking the backwaters & heritage golf course. Ayurveda treatment, health clubs, coffee shops, Yoga and meditation, Water sports, Boating etc.

10. BOLGATTY ISLAND RESORT (An Island resort of calm right in the midst of Bustling city of Kochi)

The Bolgatty Island Resort, just off the Kochi Marine Drive, is literally an Island resort of calm right in the midst of bustling city of Kochi. Here heritage meets natural beauty as the resort overlooks the backwaters, the port and estuary all at once. Surround by 14 acres of green groves and golf course, Bogatty Island is neatly is neatly tucked away amidst a giant umbrella of refreshing green.

Accessibility Cochin International Airport 45mins Rail& Bus terminal 5 mins by ferry across backwaters and 2 km by road. Highlights 24 deluxe rooms, 6 Lake front A/c rooms overlooking the backwaters & Port. Ayurveda treatment, health clubs, Coffee shops, Beer parlour, swimming pool, Water sports, Boating etc.

3.10. Centralized Units KTDC Budget Hotels

1. Hotel CHAITHRAM, Thiruvanathapuram. 2. Pariyar House, Thekkady 3. Hotel NANDANAM, Guruvayoor 4. Mangalaya, Guruvayoor 5. Garden House, Malampuzha 6. Pepper Grove, Sultan Bathery 7. Malabar Mansion, Kozhikode.


1. Motel Araam, Kottarakkara 2. Motel Araam, Kayamkulam 3. Motel Araam, Alappuzha 4. Motel Araam, Erimayoor,Palakkad 5. Motel Araam, Kannur 6. Motel Araam, Vaikkom 7. Motel Araam, Palaruvi 8. Motel Araam, Vadakara 9. Motel Araam, Kuttipuram 10. Motel Araam, Punaloor 11. Motel Araam, Athirapalliy 12. Motel Araam, Pallathuruthi 13. Motel Araam, Adoor 14. Motel Araam, Kumarakom

Tamarind Easy Hotels

1. Tamarind Easy Hotel Neyyardam

2. Tamarind Easy Hotel Asramam (Kollam) 3. Tamarind Easy Hotel Alappuzha 4. Tamarind Easy Hotel Changanacherry 5. Tamarind Easy Hotel peerumedu 6. Tamarind Easy Hotel Eranakulam 7. Tamarind Easy Hotel Thrissur 8. Tamarind Easy Hotel Guruvayoor 9. Tamarind Easy Hotel Mannarkad 10. Tamarind Easy Hotel Kozhikode 11. Tamarind Easy Hotel Nilambur 12. Tamarind Easy Hotel Waynad 13. Tamarind Easy Hotel Kannur 14. Tamarind Easy Hotel Parasinikadavu, Mangattuparambu



Its clear from the organizational chart that KTDC follow the Functional Organizational Structure. Each part has a functional purpose with regard to helping its internal or external customers. This structure is easy to manage but can be difficult to find something quickly. Viewing the organization chart on the Hierarchical manner we can understand that KTDCs organization structure is traditional, one where a clearly defined boundary exists between management and employees. The boundary exists because managers have to be seen as at the top of a hierarchy as if the decision-making process is the most important task for an organization whereas employees are kept at the bottom as if their work is less important than the managers. The traditional organization structure of KTDC is as follows: Level 1 Chairman Chairman controls the overall activity of the organization. He is the reporting officer of the level 2 managers showing in the organization chart. He is responsible for solving issues at his level in most of the situations. Level 2 Managing Director Managing director is the reporting officer of the level 2 managers showing in the organization chart. He is responsible for solving issues at this level in most of the situations. The Managing Director is the Chief Executive of the Corporation. He is assisted in the Registered Office by the heads of various divisions. The functional managers of KTDC are follows: 1. Commercial Manager I 2. Commercial Manager II 3. Marketing Manager 4. Personnel Officer 5. Chief Corporate Engineer 6. Chief Accounts Officer

7. Training Manager 8. System Analyst The Chief Accounts Officer is controlled by Managing Director through Secretary & Finance Controller. The reporting officer for the above managers is the Managing Director. Each of these managers has a clear idea about their respective departments. They will solve problems in their departments at their authority in most of the situations otherwise they will refer it to Chairman.

Level 4 Lower level management Every departmental Manager is subordinated by one or more Middle Level managers. Each of these managers will have a deep technical knowledge about the functions of that department. It is a promotion post. The vacancies are filled by promotion on the basis of performance and seniority. By defining these levels, managers can show other people who is really the boss within an organization and then to exercise that kind of authority on others by controlling employees and telling them what to do and the employees have to follow the orders very precisely irrespective of the problems that may exist in the organization (eg. lack of resources, training etc).




Marketing Manager RO, South Supnt: A/c &Supnt: (Admn) Sr.A/c & Jr. Supnt: Dy.Manager (Marketing) Office Manager
Cochin Chennai New Delhi

Personnel Officer Dy.Manager (H.R) Senior Superintend Administration Jr. Supnt: (H.R) Sr.Officer
Asst Office Asst:

System Analyst Hardware& Software Trainees

Chief Corp: Engineer

PRJT Engineer I, II Civil

Manager Training Office Staff

Accounts officer Superintend Accounts Accountants Office Staff

PRJT Engineer Electrical

Sr. Office

Supnt: A/c &Supnt: (Admn)

Supnt: A/c &Supnt: (Admn) Sr.A/c & Jr. Supnt: Staff

Dy.Manager Engineers Overseers Electricians Maintenance Staff

TRCs CRCs Office Trivandrum

Office Assistant

Sr.A/c & Jr. Supnt:

Accountant Sr.Officer Asst.

Accountan Sr.Officer Other Asst.

Accountant Sr.Officer Other Staff Asst.

Other Staff










departments. A detailed analysis will provide an overview of how the organization functions and facilitates to know the impact of the efficiency of each department to achieving the overall objective of the organization. The organization has the following functional departments.





It is one of the departments of supreme importance. Though Managing Director has the overall control, the main works are being undertaken by commercial managers. There are two commercial managers. Commercial Manager I controls the decentralized units and Commercial Manager II controls the centralized units. The travel and tour section is in charge of purchasing of vehicles including lease and hire purchase, maintenance and repair of boats and other vehicles etc. The main future works of commercial department include commercial works related to onam fairs and food festival conducted as part of festival onam.

A) CENTRAL PURCHASE Commercial Department makes the purchase of cutlery, grocery, crockery etc for the units of KTDC. B) GENERAL CORRESPONDENCE OF THE UNITS Commercial Department looks after the functioning of the units. The commercial Department control and co-ordinates the functioning of the units. C) KEEPING OF THE ESTATE FILES The department keeps the files regarding the payment details which include payment of land tax, building tax etc of the units. CD keeps details of building rent, land purchase of the units. D) DEVELOPMENT OF THE UNITS CD provides necessary suggestions for the development of the units. CD conduct inspection regarding the performance of the units as well as to avoid malpractices within the units. E) CUSTOMER SUPPORT

Commercial Department gives necessary support the customer in case of credit purchase, Advance booking etc. G) Serves as an information centre on material knowledge relating to price and sources of supply made delivery. H) Other functions

Responsible for the preparation and custody of agreements leased buildings. Process all works related to running costs of (rent, electricity, water) leased buildings.

Update and maintain files related to leased buildings. Receive and dispatch inwards to the section. Update and maintain necessary registers/records/files. Prepare and forward MIS statements required. Provide assistance to offices in various. Take over of leased properties


Commercial Manager I

Commercial Manager II

Premium Hotels

Regional Manager (North)

Regional Manager (South)

Budget Hotels Regional Manager (Central) Others


Sr. Office Assistant




Effective marketing and promotional measures are essential to attract tourist and to highlight Kerala as a distinct destination. For this, various measures like media, advertisement, printing and distribution of multi-color brochures, hospitality to travel writers, conducting festivals, participating in national and international fairs and festivals etc. must be adopted. The Marketing Manager leads the marketing Division. The Assistant Manager of the Marketing department performs the function of the marketing manager in his absence. The manager of Advertising performs the advertising activities of the corporation.

To satisfy the customer needs and wants through creating and exchanging the service To develop and retain the customers

To gather market information and facts and analyzing the information To inform the customers and their by promoting the business through pres release, tour fest etc To analyze customer complaints and to take preventive action against recurrence of similar complaints To develop new tour packages that suits the customer preference

To make additional promotional activities like advertising, publicity etc.


Manager (Marketing)

Deputy Manager, (Marketing)


Manager CRC & Office






DIRECT-SELLING KTDC adopts direct selling techniques to attract new customers. They have agents throughout India. The executives directly contact with the tourists and give them necessary information regarding accommodation, tour packages and their rates. The agents report it to the head office to make arrangements for them through mail and telephone. The payments is send after taking the commission MARKETING AGENTS KTDC has domestic marketing agents in almost all major cities in India as well as international marketing agents including USA, UK, Germany, Italy, Norway and Muscat for promoting its properties at various destinations. KTDC have launched road shows at various locations in other states in the country such as Ahmadabad, Mumbai, New Delhi, Kolkata, Chennai, Bangalore, and Hyderabad etc. involving the managers of our premium properties. This has afforded an opportunity to the managers to interact directly with the leading players in the tourism sector tour-operators, travel agents etc. resulting in better business in all units. NATIONAL & INTERNATIONAL TOUR FAIRS KTDC conducts travel and tour fairs as a promotional strategy. In this fairs the marketing executives are appointed to clarify the queries of the travelers and travel agents throughout the world. ADVERTISEMENTS KTDC gives a number of advertisements about their hotels and their tour packages in TV, Radio and Magazines etc. They also have a website -

HANDILING CUSTOMER COMPLAINTS KTDC hotels used to give a feed-back form to the customers to give opinions regarding the services and behavior of the employees in the hotels. The marketing department issues this feed-back form to the hotels and analyzes it to make necessary suggestions and actions. PRESS RELEASES The marketing division does the press releases on the different matters regarding the corporation. The brochures, leaflets, books etc relating to the various packages are issued by this division.

CENTRAL RESERVATION Central reservation is a facility offered to the tourists by which the rooms of various hotels under KTDC can be reserved from anywhere. The marketing division does this.


PRODUCT Like the manufactured product, potential tourists cannot feel, taste, touch or sample a package tour. The service is non material, intangible thing. Every product is aimed at some marketing and its marketing success depends essentials on its fit with the market. The developments of accommodation facility by the opening new classified and non-classified hotels, the channelization of safe, comfortable and transportation facilities, availability of sophisticated communication facilities and hotels are some of the important components of tourist organizations. So KTDC, the destination developer is bring its extensive understanding of Kerala by offering the most comprehensive tourism service in Kerala. From Reservation to Transit, House boat cruises to heritage tourism, Motels to

information centers, Spice tour to wildlife safaris are offered by the official host Official host to Gods own country.

Product Mix
Premium Units Budgets Hotels Tamarind Easy Hotels Restaurant and Beer Parlors KTDC Restaurant CRC Motels Boat Club Travel Division Shopping complex
TABLE No 5.1

11 7 13 24 3 1 14 1 3 1

PRICE In tourism industry the pricing decision is found critical and challenging. Since it is a multi segmented industry, when tourist proposes to visit a particular place the total cost on his/her travelling includes the expenses incurred on transportation communication, accommodation etc.

The tour packages are priced on the basis of seasons. Off-season packages are offered from April-September and Season- Packages are from October-March. Seasons Peak season Duration 15th Dec - 15th Jan 15th Oct - 14th Dec 16th Jan - 31st May 1st June 30th Sep
TABLE No 5.2

Tariff rate High.

Moderate Season




The room facility of KTDC is based on Modified American Plan (MAP), American Plan (AP), Continental Plan (CP) and European Plan (EP).

Room Facility Plans American Plan (AP) Modified American Plan (MAP) Continental Plan (CP) European Plan (EP).

Included Facilities in the Plan Room rent, Breakfast, Lunch, Dinner Room rent, Breakfast, Lunch/Dinner Room rent, Breakfast, Room rent
TABLE No 5.3

PLACE A sound distribution system is found essential to improve the quality of service and to bridge over the gap between services promised and services offered. KTDC have appointed general sales agents throughout India to give necessary information regarding KTDC to the tourists. PROMOTION

Creation of awareness has a far reaching impact in a tourism industry. The tourist organization bears the responsibility of informing, sensing and persuading the potential tourist in a right fashion. The tourism promotion is an effort to implement marketing plan formulated by the tourist organization. It helps in maximizing the duration of stay, frequency of visit by offering new tourist products in the country. It is a marketing effort which consists of marketing communication to transmit information about the business to all participants as well as the users. KTDC offers four types of promotional mixes. Advertising KTDC puts ads in TV, newspapers, magazines etc. It helps in furnishing the information to the tourists and simplifies the process of transformation. It is aimed at the public to create awareness about travels, offers available on resorts and its main attractions. They also have a website -

Publicity KTDC is one pf he profits making Government Company and so it is getting

adequate publicity through word of mouth and press media. Personal selling To market its product KTDC mainly adopt personal selling technique. Personal selling is the personal presentation of the intangible service offered by the company to the customers.


5.3.1 INTRODUCTION The Personnel Officer is the head of this Department. This
division deals with the personnel matters of the KTDC wiz appointment, transfer etc. The corporation has its own service rules regulating the service conditions of the staff. The employees of the Corporation are transferable from one unit to other. The principal component of an organization is its human resources. It is of prime importance because most of the problems in an organization are human and social. The personnel of an organisation comprises of a large number of individuals of different educational standards. Individuals in the work place exhibit, not only similar behavior in the work characteristics to a certain degree but they also show much dissimilarity as well. People come to work with certain specific motives, to earn money, work satisfaction, to ace a cordial work atmosphere, to have very good interpersonal relation etc. In KTDC there are nearly 750 permanent staff, 800 casual staff and 900 trainees. Employees recruited as trainees are usually taken for a period of 6 months, which may be extended for one or two terms if required. As the main business of the corporation is Hotels, which is mainly of seasonal in nature. The organization employs casual labourers on daily wage basis to meet the urgent requirements. 5.3.2FUNCTIONS

Recruitment to the service of the corporation is made in three ways

a) Direct appointment- Direct appointment shall be made out of the names send on

the request of the corporation by the employment exchange or SS & A Board or from among others on the basis of application received in pursuance of advertisements in newspapers.PSC also recruiting employees to the organisation.
b) Promotions- Promotions from the personnel in the service of the corporation. c) Deputation from other services- Deputation from the service of the state or central

government or from the service of the statutory bodies. THE DETAILS OF EMPLOYEES Sl No 1 2 3 4 5 6 7 Category Permanent Employees On deputation Contract employees Trainees Daily Wage Security contract workers Cleaning Contract workers Total
TABLE No 5.5

Number 602 4 119 532 6 158 515 1936

SELECTION Selection of the candidates for the appointment of the post under the corporation shall be made by the staff selection committee of the board constituted for the purpose, with the

chairman, the Managing Director and not more than three other Directors nominated by the board. Provided that the managing Director or any officer authorized by him shall be empowered to select candidates for provisional appointment through employment exchange for a period not exceeding 89 days. Recruitment to the categories of posts would be subject to the principle of communal rotation as laid down in rule14 to 17 of the Kerala state and subordinate service rules, subject to the condition that reservation for SC/ST be treated as compulsory requirement as in government while making appointment to post under the corporation. Employees of the corporation are liable to serve or undergo training in any part of India at the expense of the corporation. All other matters like papers to be submitted by the applicant for appointment, age, qualifications, seniority, probation, termination, reservation, reversion, resignation from service, the increments, allowances, kinds of leave, record of service conduct and disciple, penalties etc are mentioned in the service rules. PERFORMANCE APPRAISAL KTDC follows the performance appraisal system in head office as well as in hotels. For this an appraisal form is given to superiors to evaluate their subordinates and also to the employees to evaluate their superiors. Five point scale rating is used in the appraisals. SENIORITY Seniority of the employees of the corporation is determined as follows: Seniority of an employee is made by determining the date of his first appointment to the respective category of post unless he has been reduced to a lower rank as punishment. The appointment authority at the time of passing an order appointing two or more persons simultaneously to a particular category of post, fix the order of preference among them and seniority is determined accordance with it. TERMINATION OF SERVICE I. The service of an employee who has acquired a lien in any post in the corporation by having been confirmed against a permanent post may be terminated.

II. As a result of disciplinary action taken against him in accordance with these rules. III. In the event of the employee being declared medically unfit for further continuance in the Corporation Service

RETIREMENT FROM SERVICE An employee will ordinarily retire from the service of the Corporation on the afternoon of the last day of the month in which the employee completes the age of 58 years. The Board can, in appropriate cases, allow the employee an extension of service by one year at a time but extension shall not be given for more than two years for an employee. MOTIVATIONS PROMOTION Promotion is on the basis of 80% merit and 20% seniority on office employees. But for the hotel employees 80% seniority and 20% merit. Employees directly recruited to the service of the Corporation shall ordinarily be on probation for one year on duty. If the competent authority is not satisfied with the work of the probationer, the period of probation may be further extended at the discretion of the Competent Authority. During or at the end of the period of probation, the services of an employee can be terminated without notice and without assigning any reason thereof, by order of the competent authority. An employee of the corporation who has been promoted to a higher grade in an officiating capacity shall be deemed to be on probation for a period which may be extended to one year during his period he may be reverted to this substantive post if the competent authority so desired, without assigning any specific reason. ALLOWANCES Dearness allowance, House rent allowance, compensatory allowance and such other allowances will be payable to the employees of the Corporation in accordance with the scale and condition laid down by the Board. The Managing Director can subject to the approval of the board, give conveyance allowance in appropriate cases.

Medical allowance, Group gratuity, Canteen facilities are also providing to the employees Childrens Award is given to the employees children who have scored high marks in SSLC and in higher education. HOLIDAYS Board shall prescribe annually the holidays for the Corporation. The Managing Director shall have power to declare any holiday or part there of as working day in the interest of work and grand another day or part there of as compensation holiday. Special holidays, can be declared by the Board on special important occasions. WORKING HOURS The working hours for the office of the Corporation will be between 10.15 am to 5.15 pm with a lunch interval of 45 minutes from the 1.15 pm to 2.00 pm on all working days. PAY SCALE The salary pay scale of the employees is as per the Government employee pay scale. The increments are also as per the state government pay scale. KINDS OF LEAVE 1. Casual Leave The maximum number of casual leave in a calendar year for the employees shall be 20 days. Casual leave may be combined with Sundays and other holidays provided that maximum period of casual leave inclusive of holidays shall not exceed 10 days at a time. Casual leave cannot be taken in combination with any other leave recognized under these rules or with joining time. 2. Earned Leave All employees shall be entitled to earned leave on full pay and allowances at the rate of one eleventh of the period spend on duty, provided that can employee will cease to earned leave when the earned leave accumulates to 300 days. The maximum earned leave that may be granted at a time shall 120 days. 3. Terminal Leave

Earned leave to the extent admissible and leave salary thereof may be granted to an employee at the discretion of the sanctioning authority on the termination of service on account of retirement or abolition of posts or continued till health before attaining the age of superannuation even when it has been applied for and refused in the interest in the interest of Corporation. 4. Half Pay Leave All employees shall be entitled also to half pay leave in respect of each completed year of service at the rate of 20 days per year. This can be availed of on production of medical certificates or for attending matters. 5. Maternity Leave Maternity leave on full pay drawn prior to the date of proceeding on leave may be granted to a female employee who is exempted from the coverage from the scheme on maternity grounds of a period of 135 days from the date of its commencement or to the end of eight weeks from the date of confinement whichever is earlier. TERMINATION OF EMPLOYMENT The management shall have the right to terminate the services of any employees by any of the following methods. I. Discharge

Discharge may be either on giving one months notice of one months wage in lien and may be done in either of the following cases. 1. On an employee becoming medically unfit for work. 2. On the termination of contract of service. 3. On an employee being convicted by a criminal court with imprisonment 4. On an employee tendering his resignation from work. 5. On an employee being appointed by any other Private of Government organization, it he applied for the same though this corporation.



Any employee may be dismissed from the service of the Corporation if he is found guilty of any misconduct stated in this the standing Orders. In every case where an employee is liable to be dismissed the management may, at its discretion discharge him on payment of compensation provided under the industrial Disputes Act 1947. III. Retirement

All employees shall be retired by the Management on their attaining 58 years of age, and for this purpose all employees shall produce satisfactory evidence regarding their date of birth when they are appointed. For existing employees in case their dates of birth are not furnished. IV. Retrenchment

Retrenchment shall be effected under the provisions of the Industrial Disputes Act, 1947. DISCIPLINARY ACTION The following punishments may, for good and sufficient reasons, be imposed on employees, as herein after provided.
1. Warnings: - For any misconduct, an employee may be warned. 2. Fines: - An employee may be fined up to 2 % of his wages in a month for any of the

following acts and omission. a) Late attendance in more than two occasions in a month b) Negligence of work c) Breach of any rules of safety or instructions for the maintenance of cleanliness d) Any violation of the provisions of the contract of the service already entered in to with the Management. e) Distributing circulars, papers of posters inside the establishment without the permission of the Management.

3. With holding or postponing increments or promotions These punishments may be imposed on any employee who repeats any act or omission for which the punishment is fine. RECOVERY OF DAMAGES Damages may be recovered from any employee who is guilty of the loss, destruction of partial loss of any goods belonging to the Establishment or any machinery of the Establishment or any machinery of the Establishment expressly entrusted to him for caused due to the negligence on the part of the employee concerned. INDUSTRIAL RELATIONS AND TRADE UNION MATTERS Industrial relation deals with the relation between employees and employers in industrial organization so the personnel department of KTDC has implemented sound human resource policies, constructive attitude between trade union and management, participative management, employee welfare scheme and have sound grievance procedure scheme. TRADE UNIONS OF KTDC KTDC Employees association (CITU) KTDC Employees Congress (INTUC) LTDC Employees Federation (AITUC) KTDC Workers Association (UTUC) KTDC Employees Union

LAISON WITH LEGAL ADVISOR P&A department solves the dispute occurring in the organization. They legally advice on matters referred from various others department of the Corporation on subject varying from recruitment, service matters of commercial transactions. AWARDS AND APPRECIATION The department gives awards and appreciation to the employees for their good service. Good service entry award is one of the awards to the employee for their

performance. Best Manager Award is provided to managers for their superior performance.

FIGURE No.5.3 Personnel Officer

Dy. Personnel Officer

Senior Superintendent (Administration)

Junior Superintendent (HR)

Junior Superintendent (P & A)

Senior Office Asst. Senior Office Asst.

Office Assistants Office Assistants


Training department is newly formed department in the corporation. This department is headed by the manger (training). This department focuses at the training of the employees of the KTDC. The department is the result of the hard work of several people over several years. During the beginning, the department intends to train only the personnel of the units i.e. the various hotels Yatri Nivas, and restaurants and beer parlor. Training is basically focused on behavioral; development of the employees. Behavior is a major factor in the hospitality industry. Training is intended to improve the behavioral aspects of the employees and thereby increasing the customer satisfaction. Customer dissatisfaction worldwide depends 80% on behavioral aspects. The department claims that India, especially Kerala has high levels of hospitality. The training will lead the employees to sequence themselves to the level of customers, which would lead to greater customer satisfaction. In this industry, when the traveling.

The training plays a significant role in the performance of an organization. On the job training is the most common form of training given at KTDC. The job trainee learns while he is actually engaged in doing a job. The probation period for the training is one year. KTDC has regular HRD training programmes given to the non employees for the sake of social service. Its training period has duration of 6 months to a maximum of 2 years. The organizational employees attend the training conducted by the corporation and also outside training is conducted by the agencies from outside. These training are conducted systematically. KTDC also gives training for the waiters, servicemen etc.

4.4.2 FUNCTIONS Prepare and send intimation letters for training to the concerned officers and employees. Assist in the selection of employees for training program. Responsible for procurement of stationery items (files, pens etc)required in training section. Responsible for settling of bills related to purchases for training section. Forward bills and vouchers with notes of the section to accounts.


ON THE JOB TRAINING On the job training is the most effective method as the trainee learns by experience, making him/her highly competent. On the job training is conducted at the work site and in the context of the job. It is informal. This method is least expensive.



Lectures are verbal presentation of information by an instructor to a large audience. The lecturer is presumed to possess a considerable depth of knowledge of subject at hand.

A virtue of this method is that it can be used for very large groups and hence the cost per trainee is low.

JOB INSTRUCTION TRAINING the intervention of a trainer.

It is method in which training is offered without

Information is provided to the trainee in blocks, either in a book form or through teaching method. After it is ready each block of material, the learner must answer a question about it, feed back in the form of correct answer is provided after each response.


Audio visual include television slides, overhead projectors, video tapes and video clips. These can be used to provide a wide range of realistic examples of job conditions and situations and the condensed period of time. Further, the quality of the presentation can be controlled and will remain equal for all training groups There is an evaluation process to evaluate the effectiveness of the training program. Usually the evaluation takes place after a period of 3- months from the completion of the training, but now a day the evaluation is done while the training is going through. After completion of the training there is a job evaluation. Training evaluation is done through two main processes. Measuring the Productivity level Measuring the increase in the customer satisfaction level. There is a customer satisfaction index. A questionnaire of 22 questions is prepared which is given to the customers. The customers have to fill it. These responses are then collected. Even though the responses are collected for different units, these are combined by the department and then evaluated altogether. The idea is to have an even change in all the departments and to find out the various problems faced by each unit. The training department is also planning to provide technical training to the units also. The training managers for front office management, housekeeping, food and beverages service, and food and beverages production. The training managers will

coordinate with the corporate training manager to conduct the training process. The training mangers will have the freedom to train the employees, but he has to coordinate with the training manager in the corporate office. Also the training lessons will be dispatched from corporate office only. The training report has to be submitted immediately after the training. There is no particular budget for the training process because the costs are already known and the department claims very little deviation from the targeted training cost. The training department is determined to change the face of the corporation by providing quality to the skills of the employees. There by increasing the customer Satisfaction and increasing the revenue of the corporation.



Assistant Manager

Office Staff



5.5.1 INTRODUCTION Accounting Division maintains the records relating to

financial dealings of KTDC, the computation of salary and related matters. The chief Accounts Officer heads this department. KTDC is having about 60 units in various packages throughout the state. The above 60 units are classified into

Centralised units Decentralised units

In centralised unit the income and the expenditure account is prepared and send to the head office. In a decentralized unit, the trial balance is prepared and send to the head office. After coordinating all these, the consolidated accounts of KTDC are prepared. For the financial control and uniform collection, the sales analysis statement, sundry debtors statement, advance-received statement etc, are received statements etc are used. This is also used for the management and for budgetary control. For each unit separate annual budgets are prepared. The annual budget is split into monthly budget and performance is collected from the units and the variations are analyzed. The major costs like the food costs, administrative cost, beer cost, energy conservation and profitability in total is calculated. The annual budgets of these units are combined together and it forms the annual budget of KTDC. Along with this a separate capital budget is also prepared based on the request from the unit for capital addition and based on the future program for developments. The means for capital requirements are met from the internal resources and also financial assistance from various sources. All the budgets and accounts and reports are placed before the BOD an appropriate time and get their approval.

The Secretary and Controller of Finance heads the division. Below him a Chief Accounts Officer is there. The total staff strength of the division is 26. This is a fully computerized division. Accounting in a commercial organization represents writing of financial transactions of the enterprise in a chronological order under the double entry system of book keeping on an accrual basis. Accounting includes orderly and timely recording of cash receipts and payments, recording of rights, liabilities and obligation which flows from contracts, even though the transactions are not settled in cash terms. Accounting includes proper classification of assets, liabilities, income and expenditure to meet legal requirements, to take managerial decision to draw performance report based on budgets. Conventionally, accounting refers to cost based system of writing of financial transactions. Detailed registers are used for both documentation and details about the financial transactions. It sub serves as an authentic data for management decisions. Internal audit is checking of financial and other related record to ensure that enterprises financial function is carried out as per the procedures prescribed and appraise the top management about the deficiencies, irregularities if any and suggest improvements if possible. Internal audit is basically a management function to serve management requirements. It is not a report given to outsiders. Statutory audit is basically a certifying function after examining the books of accounts and other evidences with the Balance Sheet and Profit and Loss accounts to ensure that they are true and fair and in accordance with accounting standards. Accounting standards are acceptable norms used on Generally Accepted Accounting Principles and practices prevailing India 5.5.2 FUNCTIONS

Preparation and maintenance of accounts. Preparation of advanced capital budgets. Monitoring internal audit system. Budget and Budgetary Control Statutory Audit Payment of Sales Taxes/Luxury Sales, Service Tax and expenditure Tax.

Maintaining Payroll Payments to casual labourers or trainees Contractual payments Accounting for fixed asset Payment of goods Process works related to extension, arrears, bonus, allowances etc. Prepare salary bill, covering letter and cheque. Prepare salary certificate, relieving report, joining report etc and record them. Responsible for ledger postings and settlement of provident funds from units Responsible for filing works of the accounts section. Update and maintain necessary registers/records Prepare and forward MIS statements as required. Any other duty as assigned.

5.5.3 RESPONSIBILITIES OF ACCOUNTS DEPARTMENT The accountants and accounts superintendents are expected to write the following books/ registers 1. Manual cash books, posting of voucher/ data in the computer, proof list, checking and correction updating. 2. Posting to ledgers 3. Prepare journals, data entry in the computer, proof checking and correction updating. 4. Fixed asset register writing, writing asset identification No. in the asset etc 5. Filing and maintaining statutory returns includes sales tax, income tax, wealth tax, luxury tax, expenditure tax, service tax, provident fund 6. Filing and preservation of vouchers, files, registers, receipt books, copies, statement etc. relevant for accounts and audit. 7. Maintaining MIS track records.

8. While processing advance to manager/ staff, the accountant/ staff, the accountant/ superintendent should ensure that no previous advance is pending for settlements and all advance settlement submitted has been processed and vouchers has been prepared and passed. 9. Taking of reconciliation of bank on every month is the responsibility of accounts/ superintendent (accounts) same way advance of all types has to be reconciled and schedule has to drawn up once in every month, i.e., in the first week of the succeeding month itself. 10. Preserving accounts manual and annual closing instructions 5.5.4 LEDGER SECTION Ledger section performs functions such as passing and settlement all miscellaneous advances, freight advances, local purchases, personal accident claims of all employees, bills connected with work/ telephone / water charges / excise duty etc. 5.5.5 PARTY BILL SECTION This section deals with service bills for rendering services such as telephone, typewriter, computer etc. Service bills are usually of a contract nature with respect to work order supplied. The accounts department certifies the bills and prepares cash/cheque payment accordingly. This department prepares the vouchers for the above and these vouchers are sent to finance department for drawing cash. 5.5.6 BOOKS TO BE MAINTAINED BY THE ACCOUNTS DEPARTMENT 1. Cash book 2. Ledger 3. Journal; 4. Fixed asset register 5. House stock register 6. Bank pass book/ statement and reconciliation statement. 7. Loan registers and registers of charges.

8. Statutory returns like: a) Sales tax returns b) Luxury tax returns copy collected from the unit c) Service tax returns copy collected from the unit d) Expenditure tax returns copy collected from the unit. e) Certificate received by KTDC 10 11 12 13 MIS reports of the head office Cash payment, bank payment, journal vouchers Original bills/ receipts. Register of companys assets including rooms used by the executives.

An accounts manual is prepared for easy working of the accounts department. It encompasses all works and duties of the accountant department. Balance sheet is statutorily prepared at 31st March in every year. Profit and loss account is also prepared along with the balance sheet. Profit and loss account is generally prepared every quarter for discussion in board meeting. Management information system (MIS) is generally dominated from the accounts for various financial decisions based on performance. While consolidating MIS is used as a tool for ensuring, and understanding corporate performance, department wise performance report ensure the ability and efficiency of each department. Internal audit is done for checking of financial and other related record to ensure that enterprise financial function is carried out as per the procedure prescribed and appraise the top management about the deficiencies, irregularities, if any suggest improvement if possible. Internal audit is basically a, management function is find out management requirement. It is not a report to be given to the outsiders. Statutory audit is prepared and basically it is a certifying function after examining the books of account and other evidences with the balance sheet and profit and loss account, to ensure that the balance sheet is true and fair with accounting standards. 5.5.7 ACCOUNTING FOR RECEIPTS

Collections from room guests should be received at the Reception. Guests entry should be made in the Reception Register with time and no: of inmates in the room. Advance amount should be collected and entered in the register and the receipt should be issued to the guests. All the service bills should be entered in the Visitors ledger (VL). VL sheets shall contain all columns as that of bill issued to the room guests. Collections from restaurant/bar should be handed over to the reception office on regular basis at a fixed time. The collections should tally with sales summary/sales register. Book copy of the sales bills must be handed over to the accounting section. Daily collections from all departments shall be deposited into the bank on the next working day. Monthly statements like VL reconciliation, Bank reconciliation and stock statement should be submitted to Head office before 5th of the succeeding month. 5.5.8 PAYMENT OF SALES TAX/LUXURY TAX Sales tax/ luxury tax should be remitted into the Government Account before 10th of every month and monthly return will be filled. All the units coming under the control of regional office should forward the sales tax/luxury tax collection details to the regional office concerned before 5th of every succeeding month to enable the regional office to remit the amount in time and file monthly annual return in time. Annual return of sales tax, luxury tax etc should be filed within one month from the end of the financial year and figures should tally with the annual accounts. If there is any mistake in the monthly return revised return should be filed with reason for revision. 5.5.9 PAYMENT OF EXPENDITURE TAX Expenditure tax should be collected from the guests and remitted with the authority before 10th of succeeding month and return to be filed within 4 months from the end of the financial year. 5.5.10 ACCOUNTING FOR STOCK TRANSACTIONS PURCHASE OF GOODS Goods should be purchased from empanelled suppliers at contracted prices. The quantity specifications and quality should be in accordance with the purchase order. Purchase order book should be serially numbered and copies shall be maintained. Minimum

level, maximum level and reorder quantity of the stock should be fixed in advance and order should be placed by observing this. While receiving the goods, the stores department should verify the quantity and quality of the items with reference to the purchase order and should be entered in the stock register with a note in the original invoice/cash bill mentioning the stock register folio and date of entry. If there is a shortage of delivery, the details should be noted on top of the invoice/bill and the fact should reported to the supplier immediately with a copy to accounts department. Only the net value after reducing the value for shortage should be paid to the supplier and entered in the purchase register and suppliers ledger/cash book. The accountant shall make the entry in the financial books, i.e. Purchase register in relevant column to which the stock belongs to. In the case of cash purchases, the same should be entered immediately in the cash book also. In case credit purchases, entry should posted to the Suppliers Ledger simultaneously. Purchase register folio should be noted on the Suppliers ledger and Suppliers ledger folio or Cash book folio should be noted in the Purchase register. Purchase register total for a month should be taken to a folio in the General ledger for control purposes. Such General Ledger folio should be noted in the purchase register for having confirmed the posting. PAYMENT FOR GOODS All payments to the empanelled suppliers/contractors should be made by the way of account payee crossed cheques preferably once in a month. If the party doesnt collect the cheque directly from the accounts department, the same should be dispatched to the party as a registered post with acknowledgement due. ACCOUNTING FOR LABOUR COST, APPOINTMENT OF STAFF, TRAINEES All the appointments of regular staff should be made with the approval of head office. Appointment of casual labourers, trainees and their remuneration should be made in accordance with delegated authority of the unit in charge. Service record should be maintained in the unit for every regular staff. File should be maintained and kept for labourers / trainees etc. RECEIPTS TO PAYMENT MADE TO CASUAL LABOURERS/TRAINEES

Casual labourers/ trainees should be paid on monthly basis based on the attendance sheet and wages contracted. The receipts should duly be stamped and signed with date by the person concerned. ACCOUNTING FOR CONTRACTUAL PAYMENTS Payments to maintenance contractors like lawn maintenance, electrical maintenance, plumbing, cable TV operators, security contract etc. Should be paid as per the contractual obligations, for this a register may be maintained mentioning the principal terms and conditions of the contract and payment entries shall be made in the register then and there. ACCOUNTING FOR FIXED ASSETS Fixed assets like furniture, fittings, fans kitchen utensils, freezer generator, refrigerator, TVs etc should be recorded in a register. Before purchasing any assets the unit in charge should ensure whether the item was included in th capital budget. If not proper authorization should be obtained from the regional office or head office. Purchase order should be placed and wherever possible it should be brought from the empanelled/approved supplier. Full payment should be made after successful delivery/installation and trial run. Once the asset is delivered and installed, an identification number should be marked and the same is written in the fixed assets register. Every year end, a list of assets should be taken. Damaged stock and missing items should be accounted separately. Depreciation should be calculated every year as per the rates and manner prescribed in the laws. 5.5.11 SIGNIFICANT ACCOUNTING POLICIES a) The company has been following Written Down Value Method (WDV) of charging depreciation on its fixed assets. In case of the following items depreciation is calculated @20 % on WDV method. Bicycle Speed Boat Photographs and FoxGraph Film Transparencies

b) c) d) e)

The company values stock of catering items, beverages etc at cost price using FIFO Fixed assets are stated at original cost less depreciation The interest due on refund of tax is accounted on receipt basis Major renovation carried out in Hotel properties has been treated as deferred revenue

expenditure to be written off in 5 years time


Secretary and Controller of Finance

Chief Accounts Officer

Accounts Officer

Superintendant of Accounts

Senior Accountant


Office Staff


5.6.1.INTRODUCTION Engineering Department is headed by chief corporation Engineer, Engineering department do all construction and maintenance works of corporation. Engineering department deal with new project development of the units. Unit up-gradation is also done by the department. There are mainly three sections:- Civil, Mechanical and Electrical wing. KTDC mainly adopt land acquisition. The government provides the land for the construction of the units. KTDC appoints external Architects for construction. The necessary material for construction is usually purchased by giving tenders in news papers. The quote with the lowest rates is selected. Engineering Department is headed by Chief Corporation Engineer. The engineer division undertakes all the construction and maintenance activities of the corporation. It mainly deals with the construction of new hotels, projects etc. the maintenance of existing buildings and properties are also done by the engineering division. 5.6.1 ACTIVITIES Engineering department has completed many projects. The division undertakes projects separately the total cost of the project should be approved by the Board. If estimate figure is more than Rs. 10 lakhs approval of government is compulsory. In case of new project it is presented before the Board meeting. Board meeting occurs in three months. Then it is submitted before the approval of government. The department takes necessary information regarding the units. If any damages occur to the units, it undertook the construction work immediately without affecting the working of the units. The department is always buzy with the extension and up gradation function. A project engineer should be appointed for each project under him there will be an overseer, accountant and an Assistant Engineer.

5.6.2 FUNCTIONS New project Development of the units Up gradation of the existing units Routine maintenance of existing units Maintenance of lifts, Automobiles and Air conditioners Maintenance of Electrical works

5.6.3 CIVIL ENGINEERING WING Civil section of KTDC deals with: Construction plans for the new projects Prepares plans for the extent ion of the units Up gradation of the existing units Maintenance of the existing units

5.6.4 MECHANICAL WING Mechanical wing of the Engineering department does the repairing works of the lifts, Air conditioners, piping works etc. The repair of the automobiles and boats are done by them. They have to check the functioning of the above materials. 5.6.5 ELECTRICAL WING Electrical sections deals with all the electrical works of KTDC units. It looks after the wiring and other electrical works in co-ordination with the mechanical wing. 5.6.6 NEW PROJECTS CURRENTLY UNDER IMPLEMENTATION 1. Kerala House Hotel Project at Chennai 2. Additional rooms at Tea County, Munnar 3. Muzhappilangad Beach Resort 4. Baykal beach Resort Convention Centre at Hotel Samudra, Kovalam


Chief Corporation Engineer

PRJT Engineer I

PRJT Engineer II

PRJT Engineer Electrical

Dy. Manager



Maintenance Staff Overseers



Purchasing of Hotel management Hardware and Software To make hand with Government projects like E-commerce and IT projects Controlling the entire system activities of KTDC The System and Networking division of KTDC is in charge of controlling and co-ordinating the entire system and networking functions of KTDC office and its hotels. Computerization is vastly getting done in every year. It makes work easier as well as more effective with minimal errors. The department is headed by a system analyst. The premium hotels under KTDC are completely computerized. Under system analyst there are IT assistants to help her perform the activities in these premium hotels. The staffs are employed on contract basis for 3 years. At present, the department has computerized the 11 premium properties and also 2 budget hotels of KTDC. These computerized hotels activities are centralized by linking the computers of these hotels to a server, placed in the head-quarter. The department is concentrating on centralizing the work of corporate office. This means that any matters relating to money will be entered directly to the computer which will be accessed directly by the accounts department. KTDC uses software known as HOTSOFT as the operating software. The division has associated a Cochin based company called Data Mate for this. The tie up with the expert is helping the department to carry out its activities in a more efficient manner. The division is also working for online reservation to hotels, motels and Yatri Nivas etc. KTDC uses software known as WebCRC as the web design software designed and updating by INVIS Multimedia. Apart from that the department purchases required software for the organization. They also maintain all the systems and accessories

of the organization. Identify the changing demand of both the customer as well as the market are also indicates the necessary of new technology.

5.7.2.BENEFITS OF AN EFFECTIVE SYSTEMS DEPARTMENT E-business can provide the following benefits over non electronic communication:
1. Reduced costs: E-business reduces labour in paper work and also errors in keying

data etc.
2. Reduced time: shorter lead times, faster delivery of products. 3. Flexibility with efficiency: Enhances the ability to handle to complex situations,

product ranges and customer profiles without the situation becoming unmanageable.
4. Enhanced long term trading partner relationships: improved communication

between trading partners leads to enhanced long term relationship.

5. Lock in customers: How much closer you are to your customer, the more you work

with them to change from normal business practices to best practices E-business the harder it is for a competitor to upset your customer relationship
6. New markets: internet has the potential to expand business into wider geographical

locations. However it is necessary to develop the appropriate production capacity and distribution channels to generate by promoting your business to a larger market place.

5.7.3.Advantages to Organizations Due to the global reach of internet, business organizations are able to send message worldwide, exploring new market and opportunities. This breaks down geographic limitations and reaches narrow markets that traditional business has difficulties in accessing. Through the internet, business now offers a wide range of choices and higher levels of customer information and details for individuals to search a compare. Some build to order companies as Dell Computer Corporation can even provide a competitive advantage by inexpensive customization of products and services.

In terms of cost reduction, E-business helps organizations to decrease costs in creating, distributing, processing, storing and retrieving information .for example, the communication and advertising costs could be lower by sending e-mails and using online advertising channels, than by using television commercials or the print media. In terms of online ordering and online auction organizations, the cost could be lower than running an actual shop with the associated manpower. Extending trading hours is another benefit; the 24 hours a day, 7 days a week allows business always free to open on the internet without overtime and extra cost. other advantages includes the up to date company material, current inventories, improved customer service, better customer communication, increased operating and trading flexibility.

5.7.4.Advantages to consumers For customers, the advantages occur in the buying process, product research, evaluation and execution. E-business provides customers with a platform to search product information through global markets with a wider range of choices, which makes comparison and evaluation easier and more efficient. With the ubiquity in accessing the internet, consumers are able to search for shops or perform other transactions anytime in almost all locations. Cheaper goods and services is one of the benefits for consumers who purchase online. Furthermore, buyers can save delivery time and costs when they purchase digital goods and services. Examples are books, music and audio clips, software, games and distant education delivered via internet. 5.7.5.Advantages to the society By communicating, individuals can nowadays work and do their purchasing by sitting in home rather than by traveling around. This will result in less traffic and air pollution. For people in under developed countries, many services and products are now available which were not available in the past. Opportunities and higher education services are more achievable for students.

Non profit organizations including government services also benefit from Ebusiness by the online payment system, which support the payment of tax refunds and pensions quickly and securely.








SWOT Analysis is a strategic planning method used to evaluate the Strengths,

Weaknesses, Opportunities and Threats involved in a project or in business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective. It is also an assessment of internal business environment. A SWOT analysis must first start with defining a desired end state or objective. A SWOT analysis may be incorporated into the strategic planning model. Strategic Planning has been the subject of much research.

Strengths: characteristics of the business or team that give it an Weaknesses: are characteristics that place the firm at a disadvantage Opportunities: external chances to make greater sales or profits in Threats: external elements in the environment that could cause

advantage over others in the industry.

relative to others.

the environment.

trouble for the business. Identification of SWOTs is essential because subsequent steps in the process of planning for achievement of the selected objective may be derived from the SWOTs.

First, the decision makers have to determine whether the objective is attainable, given the SWOTs. If the objective is NOT attainable a different objective must be selected and the process repeated. The SWOT analysis is often used in academia to highlight and identify strengths, weaknesses, opportunities and threats. It is particularly helpful in identifying areas for development.



KTDC is one of the profits making Government Company in Kerala

KTDC enjoys a reputation of above 40 years KTDC possess largest hotel chain in Kerala KTDC possess highly skilled and professional managers at the top level It has worldwide recognition The corporation is supported with dedicated team of employees by which the goals of the organization can easily be achieved Marketing opportunities are higher as the hotels are at exact locations. Attractive facilities like car parking , room facilities, standards . Favorable Natural and cultural diversity Government support Increase in market share which are of higher



Lack of delegation of authority The pricing strategies are not affordable for common man Slow implementation Susceptible political events. Maintenance problem. Insufficient fund allotment.

6.1.4 OPPORTUNITIES Good brand image of the Gods own country for targeting high spending up market tourists.

Tourism in one of the fast growing industries in the world with new products which is becoming more and more popular offers new opportunities and new markets. The awareness and attitude of people towards tourism is very much conductive to the growth of tourism industry in the state. The states specific feature like high literacy rate, high position in human development index, low birth rate etc offers sufficient opportunities for the development of KTDC Tourism policies issued by the state calls for private investment and so rapid growth in the industry is possible
Vast untapped potential on heritage tourism, backwater tourism, eco friendly

tourism, health tourism and pilgrimage tourism. Natural and cultural diversities are favoring the industry and it can be exploited.
The latest issue related to Sree Padmanabha Swami Temple offer increased tourism

potentials. Owing to the rise in income levels, Indians have more spare money to spend, which is expected to enhance leisure tourism.

6.1.5 THREATS International market is getting cheaper Competition from private sector Negative attitude of the people towards tourism Various social organizations do not support Tourism Development due to the fear that it will disturb the environmental balance and cultural heritage of the state. Restrictive Airline policy of the Government of India
Over emphasis on tourism alone may lead to economic recession

Epidemic diseases Terrorism and Natural calamities




Michael Porters famous Five force of competitive position model provides a simple perspective for assessing and analyzing the competitive strength and position of a corporation or business organization.

1) Threat of new entrants. 2) Bargaining power of suppliers 3) Bargaining power of buyers 4) Threats of substitutes 5) Competitive rivalry

1)Threat of new entry The company has attained economies of scale, as KTDC is a well established organization which has been established in 1965 hence it gained much experience in business and has cost advantage over the competitors. The company has the capacity to retaliate when new firms enter into the industry as it is a well established government organization. KTDC has unique products and have competitive advantage over competitors. Moreover KTDC is a government organization; the guest has a feeling of security and the tariff rate is comparatively less. The capital requirement in the initial stages is high for the organization because the procurement of fixed assets and the development of chain of hotels are so expensive. KTDC has a good distribution channel. They have agents throughout India. The brand image of KTDC helped to attract more customers.KTDC is a well established company. The switching cost of customers is moderate and there are chances for them to go for other products of private sectors. So the threat of new entry is moderate. Bargaining power of Suppliers KTDC purchases materials on tender basis. So the bargaining power of supplier is less. KTDC has substitutes, so the bargaining power of supplier is high. The switching cost from one supplier to another is not high, as they purchase materials on tender basis. There is a chance for supply forward integration, because the company has not been purchasing for a long period. Hence the bargaining power of supplier is less. 3)Bargaining power of Buyers The buyers are fragmented all over the countries, so no buyer has influence on product or price.

The switching cost of buyers is not much high, so the bargaining power of buyers are high. The customers are price sensitive, so bargaining power of buyers are less. KTDC is highly reputed public limited company. so the bargaining powers of customers are less. So the bargaining power of buyers is comparatively less. 4)Threat of substitutes The company has substitutes from private tourists organizations like TAJ,SAROVAR GROUPS,CLUB MAHINDRA etc.They have better tour packages for canvassing more customers. So the substitutes will be a threat for the company. The switching cost for the customers is low. So there is threat from substitutes. But because of the brand loyalty of the customers and the low price charging for their products compared to the private organization, the company can withstand in the field. KTDC has less customer relationship when compared to private organizations. The switching cost for customers is high as it is a government undertaking and is more reliable than private organization and is affordable even for common people. Hence threat of substitutes is comparatively high. 5)Competitive Rivalry The intensity of competition is high for the KTDC. The company has players of similar strategy and of same size. So the market growth rate of company is moderate. KTDC has product range that can be differentiated from that of competitors. So the competitive rivalry is comparatively less. The industry has high exit barrier. Thus threat from competition is high for KTDC.


FINDINGS Employment opportunities: The growth of tourism in Kerala gave a large number of employment opportunities to the people.

Lack of improper maintenance of funds: finance is the lifeblood of any business activity. The major problem connected with KTDC is the deficiency of finance and the available fund is not utilized in the proper manner. As the result the planned results are not maintained.

Earnings: The earnings from the tourism sector increased a lot. Undefined structure: The structure of the organization is not clearly defined, which lead to unclear level of hierarchy.

Arrival rate of tourists: The rate of arrival of tourists in our state is increasing year after year. Majority of the tourists visiting Kerala are first timers, but the share of the repeat travelers particularly international tourists has been increasing rapidly.

Interference of Government: Almost in every matter, unnecessary interferences from a part of government will occur and this is a situation where the concerned project and development will be resisted.

Source of information: The main source of information to the tourists is provided by the website of the department.

Delay in Project: This situation should be avoided and only then the effective implementation is possible. A number of project, which were planning to be accomplished with a short period of time, are still under in process.

Centralization: The Centralization attitude of the management is a critical problem with in the Corporation. By this situation employees are always accused for the improper decisions took by the top-level management.

Privatization: There is a feeling among the employee that the Corporation is going to be privatized. This will affect the mental status of the employees by which the attainment organizational goals will be difficult.

Lack of Innovative tour packages: The present tour packages of KTDC are not so sufficient enough to satisfy every requirement of the tourists. This will result in the increase of profit within the private sector.

Absence of sufficient accommodation facilities, which will match, with the requirements of different categories of tourists.

The tourists are not satisfied with the type of behavior that is received from the local people and the tour operators.


SUGGESTIONS FOR IMPROVEMENT Promoting the use of sophisticated information technologies to improve the quality of eservice
Have to give and overriding priority to adventure tourism, village or rural tourism,

beach tourism etc Development of people by advancing education and training facilities enriching their professional excellence by understanding an ongoing training programme Innovating the promotional measures and assigning due weightage to aggressive promotion to project a positive image
The tariff has to be made liberal to the economic class of the society


CONCLUSION The Kerala Tourism Development Corporation is having a very good

atmosphere to grow and flourish in the tourism sector. The Corporation offers many packages and services for tourists, which will enable to out compete the competitors in the market. KTDC has entered the 90s with a new found prosperity for development. From 1991-1992 onwards the numbers of units went up and the turnover has increased substantially. By 1993-94 the company, this as on loss finally turned, round the corner. An efficient management sensitive to the needs of an every growing market has contributed to the continued excellence in performance by the corporation recording a never before growth in profits during the year 1996-1997. At Present Corporation is faced with absence of sufficient trends for meeting its requirements and for undertaking new projects. This leads to the delay in the execution of new and existing projects. Absence of sufficient employees, grievances about concentration of authority, lack of participatory management, weak and inefficient privatization etc. now affects the corporation very much. Irrespective of these drawbacks, KTDC is having a very good infrastructure, strong goodwill in its services, innovative tour packages, and sufficient managerial experience market leadership in Kerala etc. If proper attention is made immediately to solve these drawbacks the KTDC can come back to its glorious past.



BOOK REFERENCE Uma Sekaran (2006), Research Methods for Business: A Skill Building Approach, New Delhi: John Wiley & Sons, Inc. Aswathappa K (2005), Human resource and Personnel Management, New Delhi: Tata McGraw Hill. Gupta C B (2006), Human Resource Management, New Delhi: Sultan Chand & sons. Jha S M (2004), Services Marketing, Mumbai: Himalaya Publishing House.

KTDC Company Annual Report 2009


www.ktdc. Com