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ORGANIZATIONAL STUDY AT HIMACHAL PRADESH DEVELOPMENT CORPORATION

Report submitted in partial fulfillment of the requirements for the award of the degree of MASTER OF BUSINESS ADMINISTRATION Of JAIN UNIVERSITY By SWATI THAKUR Register No: 10MMA5106 Under the guidance of PROF. MANJU P.CHOPRA

MIME, BANGALORE DECEMBER, 2010

HIMACHAL PPRADESH TOURISM DEVELOPMENT CORPORATION Ltd.

(HPTDC)

STUDENT DECLARATION

I, SWATI THAKUR (10MMA5106) hereby declare that this organization study carried out at HIMACHAL PRADESH TOURISM DEVELOPMENT CORPORATION, between 9th October and 18th November 2010 as a partial requirement for the award of MBA is an original work of mine. This report does not form a base or extract of any other report / research submitted to any other course of any other institution.

Place: Bangalore Date: Nov 2010

Signature Swati Thakur

CERTIFICATE

This is to certify that this Organization study at HIMACHAL PRADESH DEVELOPMENT CORPORATION under my guidance. To the best of my knowledge, this is her original effort.

Place: Bangalore Date:

Signature Prof. Manju P Chopra

ACKNOWLEDGEMENT
I sincerely express my thanks to the Honourable Chairman, JGI, Mr. Chenraj Jain for giving me an opportunity to pursue this Organization study. I express my deepest sense of gratitude to the Dean, MATS Institute of Management and Entrepreneurship, Prof N.V.H Krishnan for giving me this opportunity and permitting me to do the study. I extend my sincere thanks to my internal guide Prof. Manju P Chopra, MATS Institute of Management and Entrepreneurship, for her guidance, valuable suggestions and constant encouragement. I am very grateful to Mr. Yogesh Behl, GM, HPTDC Limited, for giving me an opportunity to pursue my organizational study at HPTDC. I am very grateful to Mr. R.D Bhardwaj, Superintendent HR Personnel & Admin, HPTDC Limited, for providing information regarding the HR Department. I thank Mr. Anil Sharma and Mr. Gopal Sood, Accountants, HPDTC, for providing information regarding the Finance Department. I thank Mr. C.S. Kanwar, Superintendent Marketing, HPDTC, for providing information regarding the Marketing Department. I also thank all the department officers of HPTDC who have spared their valuable time and have helped me complete this study successfully. Finally I wish to thank each and every person whom I could not individually mention here and who has contributed in any possible way to help me accomplish this small endeavour.

TABLE OF CONTENT
1. INDUSTRY PROFILE y y y y y Global Scenario. Indian Scenario. Key players in the industry. PEST analysis. Porters 5 forces analysis. 2 6 9 14 17

2. COMPANY PROFILE y Background and History. y The Vision objectives, goals, SWOT analysis. y Product and Services. 21 23 27

3. ORGANIZATION STRUCTURE.

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4. DEPARTMENTS AND THEIR FUNCTIONS. y y y y y Finance Function. Marketing Function. The Human Resource Function. Purchase Function. Transport Function. 34 36 38 40 41 44 45 46

5. CONCLUSION. 6. OBSERVATION AND LEARNING. 7. BIBLIOGRAPHY.

CHAPTER 1

INDUSTRY PROFILE GLOBAL SCENARIO


People in general now view tourism as a way of life rather than a luxury item reserved for the affluent and the elite. Tourism has emerged as the largest service industry globally in terms of gross revenue as well as foreign exchange earnings. The present annual global income from tourism (international and domestic) is nearly US$13 trillion, an amount more than the GNP of all countries except the United States. According to the World Tourism Organisation (WTO), the number of international travellers has risen to more than 500 million per annum, which means that one out of every ten inhabitants of this planet is a tourist. With rapid developments in the field of transport and communications, the global tourism industry is likely to double in the next decade. WTO forecasts that there will be 702 million international arrivals in the year 2000, that arrivals will top one billion in the year 2010 and that by 2020, international arrivals will reach 1.6 billion nearly three times the number of international trips made in 1996 which was 592 million. The 21st century will see a higher percentage of the total population travelling, especially in developing countries, and people will be going on holidays more often, sometimes two, three or four times a year. Travellers of the 21st will also be going farther and farther. The Tourism 2020 vision forecast predicts that by 2020 one out of every three trips will be long haul journeys to other regions of the world.

Long-haul travel is expected to increase from 24% of all international tourism in 1995 to 35% of all international traffic arrivals by the year 2020. Tourism is the industry of industries and has a great multiplier effect on other industries. Tourism serves as an effective medium for transfer of wealth because here income earned in places of residence is spent in place visit. It is the highest generator of employment. A total of 212 million persons are now being employed globally through direct and indirect opportunities generated by this industry. This means that out of every nine persons, one person earns a living from tourism. For every million rupees of investment 13 jobs are created in manufacturing industries, 45 jobs in agriculture and 89 jobs in hotels and restaurants. Tourism is therefore considered to be an important area for intensive development for all governments. As the fastest growing foreign exchange earner, especially in developed countries, it is being given priority attention. India represents one of the most potential tourism markets in the world. It has expanded rapidly over the past few years and underpinned by the government support, rising income level and various international sports events, the Indian tourism industry will continue to grow at the fastest pace in the coming years. However, the industry may have to cope up with several challenges which will limit its growth.

Key Findings

India is expected to see an influx of 10 Million international tourists by 2010, up from just 5 Million in 2007. Andhra Pradesh, Uttar Pradesh, Tamil Nadu, Karnataka and Rajasthan are the leading tourism destinations in India in terms of total tourist arrivals. India has been promoting its healthcare tourism by providing the visitors with

private healthcare facilities. It is expected that the total market for medical tourism will reach US$ 2 Billion by 2012, representing a CAGR of 60.69%. Personal disposable income during 2002-2007 grew at a CAGR of 14.16%, thereby driving domestic as well as outbound tourism. Indian outbound tourist flow is expected to increase at a CAGR of 13.30% over the five-year period spanning from 2008 to 2012. Indias share in the global tourism is expected to reach 1.5% by 2010. The growth in Indias tourism market is expected to serve as a boon, driving the growth of several associated industries, including hotel industry, medical tourism industry and aviation industry.

As an industry, the impact of tourism is manifold. Tourism industry nourishes a countrys economy, stimulates development process, restores cultural heritage, and helps in maintaining international peace and understanding. Tourism at present is Indias third largest export industry and the forex earnings is estimated to be about Rs.9186 cores (approx Us $3928 million) in 1995-96. Employment potential The most significant feature of the tourism industry is the capacity to generate large scale employment opportunities even in backward areas, specially to women, both educated and uneducated. Another important feature of tourism is that it contributes to national integration of the people who live in different regions of the country with diverse cultures and languages. A survey of 400 policy and opinion makers in 20 countries placed these and three

other industries ahead of tourism in global economic contribution, but recently gathered statistics tell a different story. As a contributor to the global economy, tourism has no equal.
y

Tourism employs 204 million people worldwide or one in every nine workers, 10.6 percent of the global workforce.

Tourism is the worlds leading economic contributor, producing an incredible 10.2 percent of the worlds gross national product.

y y

Tourism is the leading producer of tax revenues at US$655 billion. Tourism is the worlds largest industry in terms of gross output approaching US$304 trillion

Tourism accounts for 10.9 percent of all consumer spending, 10.7 percent of all capital investment and 6.9 percent of all government spending.

Growth of tourism in Asia Furthermore, despite economically and politically induced setbacks threats of terrorism from a variety of global hot spots, recession in Europe, and economic upheaveal in Japan, and the once Communist Eastern Block, the future of tourism is brighter than ever.Expectations for growth tourism are 6.1 percent, 23 percent faster than the world economy. Travel and Tourism will create 144 million jobs worldwide between now and the year 2005 (112 million in the fast growing Asia pacific.) In the 21st century says Geoffrey Lipman, President of the world Travel and Tourism Council, there will be a surge of Asian travellers in markets around the world, and Asian countries will be the premium destinations."

INDIAN SCENARIO
Service Sector in India today accounts for more than half of India's GDP. According to data for the financial year 2008-2009, the share of services, industry, and agriculture in India's GDP is 55.1 per cent, 26.4 per cent, and 18.5 per cent respectively. The fact that the service sector now accounts for more than half the GDP marks a watershed in the evolution of the Indian economy and takes it closer to the fundamentals of a developed economy.

Services or the "tertiary sector" of the economy covers a wide gamut of activities like trading, banking & finance, infotainment, real estate, transportation, security, management & technical consultancy among several others. The various sectors that combine together to constitute service industry in India are:
y y y y y y y y y y y y

Trade Hotels and Restaurants Railways Other Transport & Storage Communication (Post, Telecom) Banking Insurance Dwellings, Real Estate Business Services Public Administration; Defence Personal Services Community Services

Other Services

There was marked acceleration in services sector growth in the eighties and nineties, especially in the nineties. While the share of services in India's GDP increased by 21 per cent points in the 50 years between 1950 and 2000, nearly 40 per cent of that increase was concentrated in the nineties. While almost all service sectors participated in this boom, growth was fastest in communications, banking, hotels and restaurants, community services, trade and business services. One of the reasons for the sudden growth in the services sector in India in the nineties was the liberalization in the regulatory framework that gave rise to innovation and higher exports from the services sector.

The boom in the services sector has been relatively "jobless". The rise in services share in GDP has not accompanied by proportionate increase in the sector's share of national employment. Some economists have also cautioned that service sector growth must be supported by proportionate growth of the industrial sector; otherwise the service sector grown will not be sustainable. In the current economic scenario it looks that the boom in the services sector is here to stay as India is fast emerging as global services hub. Service sector is the lifeline for the social economic growth of a country. It is today the largest and fastest growing sector globally contributing more to the global output and employing more people than any other sector.

The real reason for the growth of the service sector is due to the increase in urbanization, privatization and more demand for intermediate and final consumer services. Availability of quality services is vital for the well being of the economy.

In advanced economies the growth in the primary and secondary sectors are directly dependent on the growth of services like banking, insurance, trade, commerce, entertainment etc.

Indian Service Sector In alignment with the global trends, Indian service sector has witnessed a major boom and is one of the major contributors to both employment and national income in recent times. The activities under the purview of the service sector are quite diverse. Trading, transportation and communication, financial, real estate and business services, community, social and personal services come within the gambit of the service industry.

One of the key service industry in India would be health and education. They are vital for the countrys economic stability. A robust healthcare system helps to create a strong and diligent human capital, who in turn can contribute productively to the nations growth.

KEY PLAYERS
The key players in tourism industry are:-

1. Thomas Cook India.


Thomas Cook (India) Ltd. is the largest integrated Travel and Travel related Financial Services Company in the country offering a broad spectrum of services that include Foreign Exchange, Corporate Travel, Leisure Travel, and Insurance. The Company launched its Indian operations in 1881 and is celebrating its 127 years of world-class service in India. Thomas Cook (India) operates in the following areas of business, namely: Leisure Travel, Corporate Travel Management, MICE, Foreign Exchange, SWIFT Network, Travel Insurance, Credit Cards, Pre-Paid Cards, Life Insurance and E-Business. Post March 31st 2008, Thomas Cook (India) Limited (TCIL) is a part of Thomas Cook Group plc UK (TCG). On March 7th 2008, TCG announced its decision to acquire TCIL from Dubai Investment Group. Thomas Cook Group plc is one of the largest travel groups in the world with a market capitalization of approximately US$6 Billion.In June 2006, Thomas Cook (India) acquired LKP Forex Limited and Travel Corporation (India) Pvt. Ltd. (TCI).TCIL presently operates in over 72 cities across over 180 locations. The company has overseas operations in Sri Lanka which is a branch of TCIL and Mauritius which is a subsidiary of Thomas Cook (India). The Company employs over 2,200 resources and is listed on both the Bombay Stock Exchange as well as the National Stock Exchange. Thomas Cook (India), over the years has received several prestigious awards such as the Golden Peacock Award for excellence in Corporate Governance and the

Pacific Asia Travel Association (PATA) Golden Award for Best Travel. Recently, the Company won the Best Tour Operator at the CNBC Awaaz Travel Awards 2008 and was also accredited the P1 rating which is the highest financial rating given by Crisil.

2 . Raj Travels Ltd.


Shree Raj Travels & Tours Ltd. was established in 1976 by the Chairman & Managing Director- Mr. Lalit Sheth. It was his vision to provide the Indian traveler with SUPERIOR quality package tour facilities. He ensured that the services of Raj Travels would be totally customer focused and would maintain their exclusivity. The objective was to make family holidays tours more comfortable, more exciting, and most me morable. His passion was to change the entire scenario that existed in the Indian Market. An array of NEW Services were introduced by Raj Travels that were welcomed by custo mers with open arms. Within a short span of time RAJ TRAVELS revolutionized the entire travel industry. The CHANGE had taken place and Raj Travels began its journey to become the Number 1 Outbound Tour Operator in the country.

Raj Travels was the first Outbound Tour Company to introduce Indian Meals on its Globe Tour Packages. Raj Travels was the first tour operator to start package tours to Australia & New Zealand. Way back in 1986 when Raj Travels Launched Caravan Kitchens and started serving "Indian Cuisine- Hot Meals" in Europe, the customer response was so dynamic that it changed the face of "Indian Tours" forever. The

biggest players in the industry were compelled to follow suit and it was do or die situation for many. Raj Travels has been renowned for PIONEERING some of the most admired "Customer Services" in tourism. Today, we proudly continue to enjoy the Number 1 position in the outbound tours industry with 54 operational offices Spread over India .They want to be different, this has been their most outstanding qualit y. This is a trait which segregates the m fro m the rest of the co mpetition. They are aggressive, intense & passionate of their business of travel promotion.

They provide a lending ear to understand the changing profile of today's traveller. They pack a lot of things to do and see in a short holiday, for so me it may be taxing, for most it is the best way to holiday. Our young and vibrant tea m is full of ideas & eager to provide the right service.

3. Kuoni India Ltd.


The Kuoni Group is one of Europes leading leisure travel companies, and generated consolidated turnover of CHF 4,855 million (INR 194 billion) in 2008 with a worldwide workforce of 9,797 employees. The companys activities are focused on its Leisure Travel and Destination Management businesses.

Head Office is in Zurich, Switzerland, where Alfred Kuoni founded the company back in 1906. The Kuoni Group has steadily and systematically developed its position in the world travel market over the years, and has branch operations today in more than 40 countries in Europe, Asia, Africa, Australia and North America.

Kuoni aims to be the worlds best and most successful tourist travel company in the premium and specialist segment. The Kuoni Group was named Worlds Leading Tour Operator at the World Travel Awards in 2008, the eleventh time in a row it hasearned this distinction.Kuoni cares to enrich people's lives Kuoni India is committed to fulfilling its role as the first citizen of the Indian travel and tourism industry. The company has always believed deeply in its role of being a conscientious, responsible corporate citizen. It is Kuoni India's resolute endeavour to give something back to society. Through a variety of initiatives ranging from Tourism Police, Ecology Preservation techniques to pioneering Travel Education. Kuoni India strives relentlessly to enrich people's lives.

4. Cox & Kings India Ltd.

Cox & Kings is a ONE STOP SHOP. We offer the following services all under

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Hotel bookings Car/Coach/Railway bookings Foreign Exchange Leisure Travel (Overseas holidays land & cruise bookings) Destination Management(Domestic holidays & conference management)

They strongly believe that the complete range of travel services offered by Cox & Kings would be an added advantage for you as all your travel purchase can be consolidated through a single window. Such consolidation can substantially increase your buying power with suppliers. Upon confirmation as your travel managers Cox & Kings would be actively involved in the negotiation with

suppliers on your behalf. This exercise would entail dramatic savings on your travel spend. Cox & Kings has a strong network of offices within India as well as overseas. Their widespread presence can be a huge advantage. Their close proximity to your office means faster service delivery and more personalised attention. Cox & Kings is also a partner of Radius, which is a consortium of leading travel agents round the world. On the international map Cox & Kings has its presence through its own offices as well as its Radius partners in more than 80 prominent countries worldwide. Their international travelers enjoy certain privileges due to this strategic partnership between Cox & Kings and Radius.

PEST ANALYSIS
PEST analysis is a business measurement tool. PEST is an acronym, where P stands for Political factors, E for Economic factors, S for Social factors and T for Technological factors. The PEST analysis is a useful tool for understanding the market growth or decline and as such the position, potential and direction of the business. The PEST analysis headings are a framework for reviewing a situation and can also be used to review a strategy position, direction, marketing position or an idea of a company. PEST analysis stands for "Political, Economic, Social, and Technological analysis" and describes a framework of macro-environmental factors used in the environmental scanning component of strategic. Some analysts added Legal and rearranged the mnemonic to SLEPT; [1] inserting Environmental factors expanded it to PESTEL or PESTLE, which is popular in the United Kingdom.[2] The model has recently been further extended to STEEPLE and STEEPLED, adding education and demographic factors. It is a part of the external analysis when conducting a strategic analysis or doing market research, and gives an overview of the different macro environmental factors that the company has to take into consideration. It is a useful strategic tool for understanding market growth or decline, business position, potential and direction for operations.

Political Factors
Political arena has a huge influence upon the regulation of businesses .It includes government regulations and legal issues under which businesses should operate. The major political factors affecting this industry are

y Government policies which are in favour of the industry y Regulatory bodies and processes favouring the industry
y

The company is located in industrial estate.

Economic Factor
Economic factors affect the purchasing power of potential customers

and also affect the individual companys offerings. The major economic factors impacting this industry are y Market and trade cycles affecting the sales y Domestic economic trends y International economic trends.

Social Factors
Social factors are those which emerge from the soail needs of the customers. The major social factors impacting this industry are y Company image and brand favoring the industry y Advertising & publicity y Development of nearby villages. y Proper facilities for the rural people.

Technological Factors
Technological factors are those which emerge from the technological advancement of the nation. The major technological factors affecting this industry are y Competing technology advancement. y Up gradation in technology. y Maturity and replacement of technology.

PORTERS FIVE FORCE ANALYSIS


Porter's five forces is a framework for the industry analysis and business strategy development formed by Michael E. Porter of Harvard Business School in 1979. It draws upon Industrial Organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Attractiveness in this context refers to the overall industry profitability. An "unattractive" industry is one in which the combination of these five forces acts to drive down overall profitability. A very unattractive industry would be one approaching "pure competition", in which available profits for all firms are driven down to zero. It is a simple but powerful tool for understanding where power lies in a business situation. This is useful because it helps in understanding both, the strength of current competitive position and the strength of the position the organization is looking to move into. Conventionally, the tool is used to identify whether new products, services or businesses have the balance potential to be profitable.
COMPETITIVE RIVALRY

BARGAINING POWER OF SUPPLIERS

HPTDC

BARGAINING POWER OF

THREAT OF NEW ENTRANTS

THREAT OF SUBSITUTIVE PRODUCTS

COMPETITIVE RIVALRY Himachal Tourism Development Corporation has many competitors especially the private companies as they are very much advanced in technology and they are also available at a cheaper rate. There is threat from companies because Himachal Tourism Development Corporation offers best possible services as compared to the services of the competitors.

BARGAINING POWER OF BUYERS In this case, it is not easy for the buyers to drive the price down as HPTDC is one of the well reputed companies in providing excellent tourism services. Because it is concerned with providing superior quality of services at affordable prices.

THREATS OF SUBSTITUTIVE PRODUCTS. Threat of substitutive products almost does exist in case of services provided by the private competitors, In this case, it is not easy for the buyers to drive the price down as HPTDC is one of the well reputed producers as far as tourism industry is concerned because of the superior quality of the services they offer. THREATS OF NEW ENTRANTS Though the threat of new entrants lingers around the firm, Himachal Tourism Development Corporation limited holds a good favorable position as it is a well known and reputed company for tourism in and around Himachal Pradesh.

CHAPTER 2

COMPANY PROFILE Background and history


The Himachal Pradesh Tourism Development Corporation is a pioneer in the development of tourism infrastructure in Himachal, it was formed in 1972, having its registered office at Ritz Annexe, Shimla-171001.It provides a complete package of tourism services, including accommodation, catering, transport, conferencing and sports activities having the largest chain of finest hotels and restaurants in the state with 57 hotels having 1051 rooms with 2256 beds. HPTDC also runs 60 restaurants and cafes, serving a varied cuisine, including Himachali delicacies. All these properties are set in superb location in the lap of the nature. Ever since is establishment, the Corporation has acted as a catalyst, trendsetter and a prime mover for the promotion of domestic and foreign tourism in Himachal Pradesh. Private hoteliers started their units in several places only after the HPTDC had started operations initially. Such areas were opened up and publicized for tourists by HPTDC. Initial losses were consequently borne by the Corporation. It has expanded and diversified its activities, broad based its strategy and has contributed significantly to the multi-faceted socio-economic development of the state. HPTDC has established a brand name for providing safe, assure accommodation at prescribed rates The client has confidence of not being fleeced or cheated. It contributes 10% of Luxury Tax to the State Exchequer. The Corporation contributes more than 3 Crores per annum by way of Sales Tax, Luxury and Passenger Tax. It also caters to the hospitality needs of the government at all times and in all situations.

There is no exaggeration to say that it is primarily through its policies and programs that Himachal Pradesh today, it well represented on the tourist map of the country.Hospitality is a way of the people of Himachal and the hospitality is at its best at HPTDC- The Perfect Host. Nestled in the Himalayas, the world's mightiest mountain ranges, Himachal is blessed with some of the most spectacular landscapes anywhere. Truly a travellers paradise, with mighty snow peaks, deep gorges, lush green and golden valleys, flower filled meadows, misty woods, fast flowing icy rivers, glaciers and enchanting lakes. While the picturesque valleys of Kullu, Kinnaur and Kangra are a riot of colours, in marked contrast the barren terrain of Lahaul & Spiti have a stunning lunar landscape like beauty. For the visitor there are superb locations for relaxing and sight seeing. There are also tremendous opportunities for trekking, mountaineering, fishing, river rafting, skiing, para-gliding, ice skating and golf.Having an excellent network of roads and communication facilities, Himachal has a clean and peaceful environment. Himachal Tourism a pioneer in the development of tourism infrastructure in Himachal, has Himachal's largest complete package of tourism services, including accommodation, catering, transport and sports activities. Himachal Tourism has divided the state into four interesting circuits. Sutlej Voyage Beas Voyage Dhauladhar Voyage Tribal Voyage

Mission
India provides you travel opportunities of all kinds, of all forms, and for everyone. They, at HPTDC, believe in presenting India in a way that is quite unique, unexplored, and unhindered. They want to show us the possibilities that are immense and unending. Come and explore the Himalayas, take risks and trek through the Himalayas, bask under the glory of sun god and relax under the golden sun, hunt the tigers 'with cameras' and make wild friends in the rain forests, travel on the top of world's oldest working locomotive, or face the force of rapids and go for the river rafting on the wild rivers. HPTDC will provide you all the facilities whilst you are on your personal journey - the journey of a lifetime. Believe them when they say, Possibilities are Unlimited - You only need your imagination to find them and guts to live them. Their mission is to provide Quality and excellence to their customers promptly and exclusively. All the professionals at HPTDC are masters of their trade and each brings with him/her a unique set of experience adding value to the traveler's overall experience. To put it simply, they know what a traveler anticipates and more than that they know what it takes to satisfy them.

OBJECTIVES
The objectives are formulated to agree with the present development programme and complement to the broad goals of Tourism development in Himachal Pradesh, such as, judicious use of natural resources, economic benefit to the region, full employment, urban revitalization balanced growth of areas,

preservation of heritage resources, penetration in the new find resources of tourism such as apple blossom and improved goodwill.

The objectives are as follows:

1. First objective is to increase the inflow of foreign as well as domestic tourists to meet to meet the projected target growth.

2. It also requires a specific course of action in planning to involve the high spending category of visitors in overseas as well as domestic market by offering them a viable planned Tourism product.

3. There a need to stimulate the visitors for bigger participation in tourism.

4. Promotion of recreational activities and pursuits of active enjoyment would be the important aspect of tourism development in concerned region.

5. At present tourist agglomeration are at Shimla and Manali which need to be regulated in a discreet manner so as to reduce over-crowding in these areas.

6. There is also a need for word of mouth publicity, this mode is very powerful in the field of personalized services like-Tourism.

8. The prime objective has been to open new areas which other companies are not interested in like- Rohru, Khada Pathar etc.

7. Lastly, most important is the need to support tourism in HP as a priority industry and provide a sound footing without resorting to any political overtone.

Goals
1. Judicious use of natural resources. 2. Economic benefit to the region. 3. Generation of employment. 4. Urban revitalization. 5. Balanced growth of the area. 6. Preservation and development of the heritage resources. 7. Penetration in the new resources of tourism such as apple blossom and improved goodwill. HPTDC has taken tremendous steps to achieve these goals.

SWOT Analysis
Strengths:

Pleasant weather which is ideal for the tourists to come for the annual summer holiday to escape the scorching heat of the plains. Scenic beauty of the Himalayas, which draws tourists away from the crowded and polluted towns and cities. Terrain is ideally suited for various adventure activities. Some very well known tourist hill- stations. It can attract tourists all throughout the year. Hospitable people.

Weaknesses:

Inadequacy of transport facilities Funds constraining the development of regions. Inadequacy of information channels. Overcrowding of popular tourist centres. Some places are inaccessible, especially in winterdue to heavy snowfall. Inadequacy of marketing. Lack of adequate infrastructural support.

Opportunities:

The concept of holidaying is gaining popularity in India among various classes of people. Increased disposable incomes of the Indian middle class. Adventure sports and trekking. Eco- tourism is gaining popularity. Himachal contains many unexplored regions.

Threats:

Various other places in India are providing stiff competition. Environmental and political factors also impose a threat.

Products and Servicies


ACCOMMOATION NETWORK H.P. Tourism Development Corporation Limited has a wide network of accommodation in the state. At present it has 57 hotels having 1051 rooms and 2256 beds. HPTDC also runs 60 restaurants and cafes, serving varied cuisine, including Himachali delicacies. All these properties are in superb locations in the lap of nature. The HPTDC hotels have three categories viz. Premium Heritage, Deluxe and Budget Hotels. The tariff for the year 2010-11 has been revised and remain in force upto 31.3.2011. The Corporation also is running three Bhawans of H.P. Govt. i.e. Himachal Bhawan-Chandigarh, Himachal Bhawan & Himachal Sadan-New Delhi and also managing H.P. Secretariat Canteen and only one Lift at Shimla is also run by HPTDC. CONFERENCE NETWORK HPTDC has a comprehensive network of conference facilities in the State, which are available in The Holiday Home-Shimla, The Peterhof-Shimla, The Palace-Chail, The Pinewood-Barog, The Club House-Manali, The Club House-Mcleodganj, The Dhauladhar-Dharamsala, The Tea-Bud-Palampur, Hotel Jawalaji-Jawalamukhi, The Yamuna-Paonta, The Hamir-Hamirpur and The Manimahesh-Dalhousie. The Peach Blossom-Fagu, The Lake ViewBilaspur and The Mandav Mandi. WAYSIDE AMENITIES

The Corporation is providing wayside facilities on important tourist routes and destinations which include national and state highways.

MARKETING NETWORK HPTDC has set-up Marketing and Tourist Information Offices in all major and important cities within and outside the State. Besides it has appointed 14 General Sales Agents in different cities of the country for reservation of HPTDC Hotels and other facilities. For this, it is paying these General Sales Agents and Travel Agents handsome commission on slab basis. Depending upon the volume of business they fetch, they are being given commission ranging from 15% to 25%. PACKAGE TOURS The HPTDC has also prepared different package tours, which are further circulated, to its marketing and Tourist Information Offices within and outside the State. These packages include major destinations, Temples, Gompas and heritage buildings in Himachal Pradesh. It also announces special packages during Karva Chauth, Skiing packages during winters. INTRODUCTION OF PREVILEGE CARD In view to have repeated clientele HPTDC has introduced the system of Privilege Card and at present we have about 1500 Privilege Card holder. The Privilege Card holder is allowed 20% discount on boarding and lodging & soft drinks.

DISCOUNT

Corporation offers 10% special discount to senior citizens during season.During monsoon and other season they offer special discounts. Corporate discount has also been offered. HOME STAY SCHEME They have also floated Home Stay Scheme by which tourists are being invited to stay in village houses offering them to have a feel of village atmosphere. HPTDC are the pioneer in providing this scheme. REJUVENATION HEALTH CENTRE/PANCHKARMA Rejuvenation Health Centre at Hotel Holiday Home, Shimla, Hotel Palace, Chail and Panchkarma Therapy at Hotel Tea-Bud-Palampur has been started. RESERVATION SYSTEM During the year 1999, HPTDC launched its official website

http://www.hptdc.nic.in covering the four circuits, properties, transportation services, hotels, restaurants, cafeterias, places of tourist interest, access to Himachal Pradesh, conference facilities and other activities being carried out by the Corporation to make its presence felt on the World Wide Web. All the HPTDC marketing/Tourist Information Offices have been networked. An agreement for online reservation system/payment Gateway has been made with HDFC Bank and Axis Bank reservation through Credit Cards. Publicity and Information Network The HPTDC has brought out comprehensive range of Publicity literature, detail of which are given below:-

1. Brochure on Panchkarma at Hotel Holiday Home, Shimla (8 Pages), Hotel Palace, Chail (12 Pages) and Hotel Tea Bud-Palampur (12 Pages) has been printed during the year 2008-09. 2. Brochure on special package for senior citizen (12 ages) has been printed. 3. Brochure on Chail has also been printed. 4. Accommodation Tariff (2010-11) Every year HPTDC prints an accommodation tariff which contains room tariff of Hotels with available facilities, telephone numbers and e-mail address. 5. DVD (film on HPTDC) TRANSPORT NETWORK The HPTDC has a full-fledged transport wing consisting of a fleet of 17 coaches (which includes 4 Volvo buses recently purchased). Besides this, it has hired Volvo busses and AC Sleeper Buses and the same are operating on Delhi-Manila and Manali-Delhi routes. It is perhaps one of the best and most efficient transport wing, which any Tourism Corporation has in the country having a record of 0% accidents in its 38 years of operation. It has been organizing/conducting sightseeing packages and LTC tours besides catering to the international and national conferences and meets. It also runs long distance services between Delhi-Shimla, Delhi-Manali, Delhi-Dharamsala and Manali-Leh etc. Branch Offices of Transport Wing are at Shimla, Manali and Delhi. The online reservation of HPTDC Volvo buses has started through payment Gateway.

CHAPTER 3

BOARD OF DIRECTORS

MANAGING DIRECTOR

GENERAL MANAGER

DGM MARKETING & OPRATIONS

JOINT CONTROLLER ADMIN/HR

DGM PURCHASE

DGM TRANSPORT

FINANCE PROJECT MANAGER OFFICER

COMPANY SECRETARY

AGM MKT.&OPR. & PUBLICITY

Superin-tendent

AGM PURCHASE

AGM TRANSPORT

ACCOUNTS OFFICER

ASST. ENGINEER

ASST. MANAGER

SENIOR MANAGER

SENIOR ASST.

SENIOR MANAGER

SENIOR MANAGER

ACCOUNTANT

ORGANISATIONS STRUCTURE ABBREVIATIONS USED:


DGM: DEPUTY GENERAL MANAGER AGM: ASSISTANT GENERAL MANAGER AAE: ADDITIONAL ASSISTANT ENGINEER ADMIN: ADMINISTRATION

CHAPTER 4

VARIOUS DEPARTMENTS AND THEIR FUNCTIONS


A. FINANCE DEPARTMENT
FINANCE MANAGER

ACCOUNTS OFFICER

ACCOUNTANT

Finance department plays a very significant role in any organization. They maintain various books of accounts, manage the budget and the cost functions of the company etc. FUNTIONS A) HPTDC maintains the books of accounts according to the Companies Act, 1956.All their financial functions are carried out according to this act. The various books maintained by them are:1. Daily Sales Summary. 2. Journal. 3. Cash Book. 4. Ledger. 5. Bank reconciliation Statement. 6. Annual Balance Sheet at Branch Level and final consolidation is done at Corporate Level.

B) Conducts internal and external audits.

They have internal as well as external audit. Internal audit is done by the CA and the external audit is done by the government auditors. C) Internal control. Internal control is done by proper monitoring at corporate level such as from the monthly Profit and Loss account and other direct and indirect overheads. D) Cost & Revenue centers Cost and Revenue maintained monthly by the Branches and finally consolidated at corporate level annually. E) Maintain Cost records. Maintain Kitchen order tickets, Food cost register, Stock register, consumption registers daily and reconciled with stock register. F) Maintains various documentation  Receipts  Vouchers  Debit note  Credit note  Inward and outward invoices at store level. G) Makes the budget. The budget is maintained annually. There are two types of budget being maintained by the corporation that is:1. Revenue Budget and 2. Capital Budget. H) Control costs.

They control costs by following various techniques. By adopting various ratiosDebt-Equity ratio, Quick ration, Liquidity Ratio, Working Capital, Debtors Ratios, Creditors Ratios, Fuel Ratios and Food Ratios.

B.MARKETING DEPARTMENT DGM

Asst. GM, MO, Shimla.

Asst. GM, MO, Delhi.

Sr. Manager, MO, Chandigarh.

Asst. Manager, MO, Ahmadabad

Asst. Manager, MO, Mumbai

Incharge, MO, Kolkata

Marketing is the process by which goods and services are delivered to the customers. Marketing department plays an active role in achieving the objectives.

HPTDC has set-up Marketing and Tourist Information Offices in all major and important cities within and outside the State. Besides it has appointed 14 General Sales Agents in different cities of the country for reservation of HPTDC Hotels and other facilities. For this, it is paying these General Sales Agents and Travel Agents handsome commission on slab basis. Depending upon the volume of business they fetch, they are being given commission ranging from 15% to 25%. The department satisfies the customers needs, as it is available throughout the world. It provides feedback from customers and provides proper service. The department collects information regarding current market condition to maximize awareness of the product. FUNCTIONS A) The HPTDC has also prepared different package tours. They also announce special packages during Karva Chauth, Skiing packages during winters. B) Introduction of privilege card. In view to have repeated clientele HPTDC has introduced the system of Privilege card. The card holder is allowed 20% discount on boarding and lodging & soft drinks. C) Offer special discount Corporation offers 10% special discount to senior citizens during season. D) Offer various schemes like:1. Home stay scheme They have floated Home Stay Scheme by which tourists are being invited to stay in village houses offering them to have a feel of village atmosphere. 2. Rejuvenation health centre E) Publicity and Information Network

The HPTDC has brought out comprehensive range of Publicity literature, detail of which is given below:Brochure on Panchkarma at Hotel Holiday Home, Brochure on special package for senior citizen, Brochure on Chail, Accommodation Tariff and DVD (film on HPTDC). F) Offer other special packages like:1. Beti Hai Anmol. 2. Tribal packages. 3. Student package tours. 4. Common Wealth Game, 2010 special package. 5. Marriage Anniversary. 6. Bonanza for Honeymooners at Manali.

C. ADMINISTRATION/HR DEPARTMENT

JOINT CONTROLLER

SUPERINTENDENT

Human resource is the most basic form of resource which is of utmost necessity for the functioning of any business firm, unit, factory, plant or organization. An organization is incomplete without the human resource, all the activities of the organization are initiated and completed by the persons who make up the organizations.

FUNTIONS A) Planning Human resource planning involves planning of required quantity of manpower to perform the job. Here the target will be analyzed and the required manpower will be calculated. B) Recruitment Recruitment is the process of searching for prospective employees and stimulating them to apply for job in the organization. The recruitment policy of this is based on need or requirement, it generally begins when the need is generated from any department of the company. All vacancies are notified to the Employment Exchange in terms of the act. Departmental candidates are also eligible to apply. C) Selection Selection is the process of choosing the most suitable persons out of all the applications. Selection is done by the selection committee under the guidance of the MD. This committee holds written tests and interviews. D) Training Training is the process of increasing the knowledge and skills for doing a particular job. The purpose of training is basically to bridge the gap between the job recruitment and present competence of the employees, in HPTDC both on-the-job and off-the-job training are given. E) Wage and Salary Administration The wage payment in HPTDC is monthly paid on the last working day of every month and it is directly credited to the respective bank account of employees. Dearness allowance and house rent allowance is also paid to the employees. Capital allowance is paid to those working in the capital. F) Grievance Redressal Each and every individual employee in the company has an equal chance to report their grievances to their immediate seniors or supervisors or superiors. The

grievance may be monitory or non-monitory one, but the complaint must go through a proper channel or hierarchy level in the organization. No individual in the company is allowed to contact Head of the Department directly. These grievances are taken up by the grievance committee. G) The various employee welfare measures prevailing in HPTDC are:1. Diwali gifts. 2. Uniform and shoes. 3. Bonus. 4. 50% discount on food. 5. Special discount on accommodation. 6. Medical facility. 7. LTC facility. D. PURCHACE DEPARTMENT

DGM

AGM

This department looks into the needs of all the other departments.They make all kinds of purchase on behalf of the company. All big to small purchases are made by this department. They make purchases at Head Office level as well as at the unit level depending on their day-to-day requirements. Purchase is being made in the most economical, transparent manner and also in accordance with the requirements keeping in mind the aspect like quality, colour, design etc. Tenders for purchase and rate contract of Central Store items for the year 2010-2011 were made during the current financial year after wide publicity in the leading national, regional news papers and through tender portal, so that

reputed manufacturers and genuine suppliers could participate in the tender process and the corporation could get the best quality material on competitive rates.They make centralized purchases, apart from this efforts are being initiated to purchase the commonly required provisions directly from the manufacturers or their authorized distributors so that the standardized provision material are available on competitive rates.

FUNCTIONS A) Procurement of items. B) Vendor quality evaluation. C) Recurring storing and issuing all incoming Material. D) Maintaining good relations with the sellers. E) Making orders as and when required. F) Keeping in touch with the needs of the other departments. G) They issue central store items.

E. TRANSPORT DEPARTMENT
AGM TRANSPORT WING

ASST. MANAGER MANALI

The HPTDC has a full-fledged transport wing consisting of a fleet of 17 coaches (which includes 4 Volvo buses recently purchased). Besides this, it has hired Volvo busses and AC Sleeper Buses and the same are operating on Delhi-Manali and Manali-Delhi routes. It is perhaps one of the best and most efficient transport wing, which any Tourism Corporation has in the country

having a record of 0% accidents in its 38 years of operation. It has been organizing/conducting sight seeing packages and LTC tours besides catering to the international and national conferences and meets. It also runs long distance services between Delhi-Shimla, Delhi-Manali, Delhi-Dharamsala and ManaliLeh etc. Branch Offices of Transport Wing are at Shimla, Manali and Delhi. The online reservation of HPTDC Volvo buses has started through payment Gateway. FUNTIONS A) Provide facility to the tourist. B) Operates busses to provide LTC facility to government employees.

CHAPTER 5

CONCLUSION
The Himachal Pradesh Tourism Development Corporation is a pioneer in the development of tourism infrastructure in Himachal, it was formed in 1972. It provides a complete package of tourism services, including accommodation, catering, transport, conferencing and sports activities having the largest chain of finest hotels and restaurants. Ever since its establishment, the Corporation has acted as a catalyst, trendsetter and a prime mover for the promotion of domestic and foreign tourism in Himachal Pradesh. Himachal Tourism has divided the state into four interesting circuits. Sutlej Voyage Beas Voyage Dhauladhar Voyage Tribal Voyage Their mission is to provide Quality and excellence to their customers promptly and exclusively. All the professionals at HPTDC are masters of their trade and each brings with him/her a unique set of experience adding value to the traveler's overall experience. To put it simply, they know what a traveler anticipates and more than that they know what it takes to satisfy them. The most important function of HPTDC is marketing as it is a tourism company. It also has other well developed departments like finance, administration, purchase and transport. To conclude, this corporation is functioning at its best because of its well planned policies and services. One thing which adds to the advantage of this corporation is the tremendous beauty of Himachal Pradesh.

OBSERVATIONS AND LEARNINGS

The following are the learnings from the study done at HPTDC:y

The organization structure of HPTDC Ltd. is well formatted in which each and every department plays important role.

All departments function similarly with their respective purchase, production marketing and quality assurance departments

The entire organization is so well structured that all the resources (including human resources) are utilized to their best.

The marketing department applies the concept of outsourcing regular services. This way they save a lot of time. But they ensure that their outsourcing firms meet their standards.

The marketing department obtains regular feedback and provided it to the quality assurance department so that they can rectify the next lot of products.

The marketing research department provides with the data of current sales and other relevant information, based on which the other department make decisions.

BIBLIOGRAPHY

1. www.hptdc.nic.in 2. www.rajteavels.com 3. www.cox&kings.co.in 4. www.kuoni.com 5. www.thomascook.com 6. HPTDC annual report 2009 journal. 7. HPTDC magazine 2009.