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Jatashankar R. Tewari,
Babu Banarsi Das National Institute of
Technology & Management, Lucknow

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Chapter 1


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Learning Objectives
After reading this chapter, you will be able to
understand the following:
Hospitality industryits origin and growth.
Travel and tourismtheir evolution,
importance, and related industries.
Evolution and growth of the hotel industry
in the world and in India.
Hoteldefinition and core areas.

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The hospitality industry is an umbrella term

for a broad variety of service industries,
including, but not limited to, hotels,
restaurants, casinos, catering enterprises,
resorts, and clubs. The industry is very
diverse and global, and is greatly impacted
by fluctuations within the economy as also
by various happenings across the world.

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Origin and growth
The origin and development of the hospitality
industry is a direct outcome of travel and tourism.
The primitive lodging houses or inns originated
essentially to cater to these needs of the travelers.
Throughout the world they were known by different
names :
Dharamshala and Sarai in India
Ryokans in Japan
Paradors in Spain
Pousadas in Portugal
Coffee houses in America
Taverns and Inns in Europe
Cabarets and Hostelries in France
Mansionis and Hospitia in Switzerland
Phatnal in Greece
Relay Houses in China
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Tourism may be defined as the movement

of people from their normal place of
residence to another place (with the
intention to return) for a minimum period of
twenty-four hours to a maximum of six
months for the sole purpose of leisure and
Tourism can be categorized as:
International tourism
Domestic tourism
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When people visit a foreign country, it is
referred to as international tourism
International tourist may be of following
Inbound(When tourist from other country come to destination)
Outbound( tourist originated from country of residence and move
to other country)

The tourism activity of people within their
own country is known as domestic tourism
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Employment generation
Infrastructure development
Foreign exchange

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Evolution and Growth of Hotel Industry

The origin and growth of hotel industry can be studied

under following periods:
Ancient Era : Primitive type of lodging houses offering
rooms and modest services eg. Inns, Dharamshalas,
Sarais etc.)
Grand Tour : Second half of 18th century, prior to
French revolution is referred as Golden era of travel.
This lead to extensive travel creating the need of
lodging houses for aristocrats
Modern Era : Industrial revolution, development of
fast and safe mode of transport lead to the growth of
modern lodging houses to cater the needs of mass
movement of tourists
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Evolution and Growth of Hotel Industry in India
The origin and growth of hotel industry in India may be studied
under following heads:
Ancient and Medieval Era: While it is not clear when hospitality emerged
as a commercial activity in ancient India, there is evidence of
accommodation facilities for travellers and guests, though not as
organized as we see them today. The lodging houses during those times
were known as dharamshalas (dharama in Sanskrit means religion and
shala school).
Colonial Era: The organized existence of the hotel industry in India
started taking shape during the colonial period, with the advent of
Europeans in the seventeenth century. The early hotels were mostly
operated by people of foreign origin to cater to the needs of the
European colonizers and later officials of the Raj.
Modern Era : Over the last few decades, various well-known international
hotel chains have come to India. These include Hyatt Hotels and
Resorts, InterContinental Hotels and Resorts, Marriott International,
Hilton Hotels, Best Western International, Shangri-La Hotels and
Resorts, Four Seasons Hotels and Resorts, Carlson Hotels worldwide

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A hotel or an inn is defined by the British Law as a place where
a bonafide traveler can receive food and shelter, provided he
is in a position to pay for it and is in a fit condition to be
The core areas of hotel
Room Division
Front office
House keeping
Food and Beverage Department
F& B Service
Human Resource Department
Sales and Marketing Department
Purchase Department
Financial Control Department
Security Department
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