According to sources India received 5 millions visitors in 2007 and is estimated to get 10 million by 2010. Tourist arrivals grew at a whopping 13-14% in 2007.
Industry forecasts for the tourist season are gloomy with expert saying that foreign tourist arrival could be down by half to 7.8 % if India’s economic growth rate falls to 7 % and global growth rate comes down to 3,2%.
Current occupancy in hotels has started showing decline leading to down fall in room rate.
Terrorist strike in Mumbai and in Tajmahal Hotel and Oberoi Hotels in Mumbai again is not a good sign. This will have drastic impact on the hotel’s revenue due to occupancy along with the downturn in global economy.
Concerned over the economic showdown that could impact foreign tourist arrivals in India Government of India is considering sops like visa fee waiver and reduction in entrance charges to monuments to soften blow for the tourism industry. Consideration for Temporary tax holiday till the commonwealth games is also in pipeline.
Hospitality Business is the recession free business as hotels tend to be late cycle industry in terms of registering the impact of either positive or negative economic trends. It takes time for these changes to filter through, and effect is often delayed. In this uncertain period of economic turbulences focus on this industry can bring respite to the future problems of the Nation to a certain extent. In current circumstances Hospitality stakeholders should come forward with a new strategy for proactive and productive approach for the future of industry:
Strategic vision, strategy to create and develop market for the product, strategy to sustain and achieve desired target and strategy for growth.
Role of HR Intervention in implementation of these strategies is very important. It needs widening of the vision- scope to develop interest to grow with faster pace in the competitive and potential market with proactive approach in this period of Economic down turn and terror strike situation. Some of the impact may be visible in coming year.
Innovation at all level of staff with working hard to reshaping and repositioning of the business in immediate future is the need of the hour.
Productive allocation of responsibility and structuring of the organization can be best at this period along with inservice training programme for
updating to face challenges.
Finance management and cash flowing strategies along with cost profit analysis can be managed with reference to HR Strategies.
Focusing on guest centric service standards
Enhancing operational performance
Improving efficiency-
Outsourcing those things which other can provide at a lower cost
Improving business process
More empowerment practices to be followed
Improving the overall cost control environment and
Creating a cost culture.
Giving value for money
Benchmarking New Performance Standards
Monitoring performance against desired performance standards
Strategies to evaluate and rectify shortcoming and conducting training for that
Communicating openly and frequently with employer to enhance transparency and avoid surprises.
Adopting a more proactive approaches
Implementing productivity based performance appraisal and Evaluation system.
During this phase Cost is definitely one of the important consideration but the impact of this is visible in other areas as rewards.
Improving service quality is cheaper than improving product quality. Training cost should be looked upon as an investment and not cost. The investment in turn will generate higher sales margins and profitability in the future with guest satisfaction and return business.
We should keep in mind
· Good service/ high quality service gives sales growth
· Higher employee satisfaction & pride. This improves employees productivity & retention and reduce both recruitment and manufacturing cost.
· Service driven companies are likely to detect shifts in market behaviour and customer needs and more likely to succeed in product development.
· Better service standards indirectly encourages better corporate behaviour and promote better relations with influential groups and societies.
Training
More emphasis on training and development in the area of
More emphasis to customer focus training
Tight cost control measures
Intensified brand segmentation
Intensified marketing
Discounting policies
Cash management
Consumer behaviour
Customer sensitization training
Since it is highly labour intensive industry, success will largely depend on upgrading level of training specially for service personnel.
All these factors will lead to a satisfied and motivated employees. This communication will develop professionalism and strong organizational culture. Which will travel down the line and will lead to increase and improvement in productivity.
Better utilization of manpower with respect to performance standard and productivity will help in a great way in utilizing efficiency of employee in a correct manner.
HR should emphasize on
Continuous reinforcement of this philosophy.
Guest service training as priority
To achieve quality guest services one should establish performance and quality parameters with accountability and it should be linked to performance.
The service quality will be perhaps be the single most important competitive element to retain customer and business.
Opportunities for empowering, role playing shall be adopted with greater thrust.
Higher employees satisfaction and pride. This improves employees productivity and retention and reduces both recruitment and other HR Cost.
Service driven companies are likely to detect shifts in market behaviour and customer needs and more likely to succeed in growth of organization.
Better service standards indirectly encourages better corporate behaviour and promote better relations with influential groups and societies.
All these factors will lead to a satisfied and motivated employees. This communication will develop professionalism and strong organizational culture. Which will travel down the line and will lead to increase and improvement in productivity.
Better utilization of manpower with respect to performance standard and productivity will help in a great way in utilizing efficiency of employee in a correct manner.
Monitoring performance against Financial and Non financial areas and managing cost base with reliable Management Information System.
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