HOTEL INDUSTRY

Problems for ASHH group

Executive Summary3

Background of the study5

Problem faced by the ASHH group6

Political instability6

Occupancy rate7

Decreasing Profit7

To apply the Heritance Kandalama model7

How to apply the Heritance Kandalama experience in the Indian society8

Statement of the problem8

Research aims and objectives9

Research Aim9

Research Objective10

Structure of the rest of the report11

Literature review11

Analysis and Findings11

Conclusion12

Recommendations12

Literature Review12

Elements in the tourism industry13

Major Hotel Chains in India15

Taj Hotels Resorts and Places15

Oberoi Hotels and Resorts15

Le Meridian15

Best Western Group of Hotels16

Culture of Indian Society16

Analysis and Findings17

Increasing usage of Technology17

Increasing use of Greenery18

Expensive hotels chains in India18

Local culture and food of hotels in India19

Experienced hotel chains20

Diversity in the Indian Society20

Large number of events in India21

Beauty of India21

Solutions for the ASHH group23

Solutions for Urban Areas24

Solution for Rural Areas25

Recommendations26

Action Plan26

Limitations of study26

Scope for further research26

References28

EXECUTIVE SUMMARY

In the 19th century, the Aitken Spence Company (ASC) started business as a trading company. Over the next couple of years, the company extended its business and by the 1970s, the company entered in the tourism industry. It made separate group which was looking over the business interests of the tourism industry. The name of the group is Aitken Spence Hotel Holdings (ASHH). It is a Srilnaka based group which has units in four countries. The worse political environment in the local society compelled the ASHH group to look opportinities in other countries. ASHH group got success in three countries, but in India it faces strategic competitors. Among many problems, two issues compelled ASHH group to revisit its decision to to expand business in India. The problems are the; how group will implement its sustainable development policy in the India which it had experienced at Heritance Kandalama. Second, how it will face the issues which will emerge after implementing this policy. To address these problems, we have carried out a comprehensive study. In the research, it is found that Indian society is really diversified and give little opportunity for the foreign business groups to come andfourish. There are thousands of year old religions, languages, cultures and ethnic groups which have long history and do not allow any foreign culture to integrate sinece last several centuries. For the ASHH group, it is challenging task to jump in the Indian market and start a successful business in such a diversified society.

There are already many national and international hotel groups which are successfully operating since last some decades. These hotels have world class standard, name and luxurious facilities which is attracting a large number of visitors and tourists from local as well as international market. They have also handsome experience in the tourism industry. The majority of hotels are not following the sustainable tourism. Sustainable tourism is the collective name of sociology, economy and ecology which make manmade and artificial thigns green and natural. The sociology part of the policy says there should be the inclusion of local people in the industry. The hotel should start the programs which enables individual to get jobs in the hotel industry. In the architecture, there should be a reflection of local ...