Hotels : Evolution and Growth

Hotel: Definition and Services

The word Hotel is derived from the French word “hôtel”, which refers to a French version of outhouse. The word hotel could have also derived from “hostel”, which means ‘a place to stay for travelers’.

A hotel or an inn is defined by 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 received.’

 A hotel is thus an establishment that provides paid accommodation, generally for a short duration of stay. Hotels often provide a number of additional guest services, such as restaurants, bar, swimming pool, retail shops, business facilities like conference halls, banquet halls, board rooms; and space for private parties etc. Most of the modern hotels nowadays provide the basic facilities in a room- a bed, wardrobe, writing table, thermostat, and bathroom- along with other features like a telephone with STD/ISD facility, a television set with cable channel, and broadband internet connectivity. There might also be a mini bar (small refrigerator) containing snacks and drinks, and tea and coffee making unit having an electric kettle, cups, spoons, and sachets containing instant coffee, tea bags, sugar and creamer.

History and Evolution of Hotel Industry

The invention of currency and wheel in around 5^th century BC are regarded as the two main factors that led to the start of hospitality as a commercial activity. Europe is regarded as the cradle of organized hotel business, and over the past century the modern hotel industry is said to be evolved in the American continent. From the ancient inns to the present day state-of-the art establishments that provide everything to the modern traveler, the hotel industry has grown by leaps and bounds.

The origin and growth of the hotel industry can be studies under the following three periods:

v  Ancient Era

v  Grand Tour

v  Modern Era

Ancient Era

This era is marked by the  earliest recorded evidences of the hospitality facilities in Europe in 500 BC. Ancient cities of Greece also had large number of commercial places that offered fooding and lodging facilities to travelers. The inns of the biblical era offered a cot or bench in the corner of a room or sometimes even in a stable. Privacy and Personal sanitation had no existence. In 3^rd century AD. Many lodging places grew in Europe and Minor Asia (part of Asia adjoining Europe). These were known as ‘Mansions’.

The Industrial Revolution in England changed travel from social to business travel. The lead in organized hotel keeping as we see it today was taken by the emerging nations of Europe, especially Switzerland. Their lodging establishments were called as ‘Chalets’.

Grand Tour

The second half of the 18^th century, before the French Revolution (1789-99), is referred as the ‘golden era of era’. In those days, ‘Grand Tour’ of the European continent was taken by the wealthy families in Britain for educational purpose. This tour lasted for several years. It gave a big push to the hotel industry particularly in prominent cities of France, Italy, Germany, Austria, Switzerland and Ireland. This gave rise to the development of the modern hotel industry.

The world’s first tour operator, Thomas Cook organized a rail tour from Leicester to Loughborough.

Modern Era

The improvisation in the modes of transport made journeys safer, easier and faster enabling economical as well as frequent mass movement. The development of rope ways lead to the growth of many hotels in the Alpine ranges particularly in Switzerland.

The two world wars severely affected the hospitality industry. The massive destruction caused by the war and the resulting economic depression proved to be a major setback for the travel business. However the development of aircraft and passenger flights accelerated the growth of the hotel Industry.

Tremont house

Tremont house in Boston American entrepreneurs are credited with changing the face of the hospitality industry with their innovation and aggressive marketing. The inauguration of the city hotel in New York in 1794 marked the beginning of the present day hotel Industry.                                                         

The opening of the Tremont house in Boston in 1829 is another Landmark in the evolution of the hotel Industry. It is regarded as the First Luxury hotel having 170 rooms.

The year 1908 saw the emergence of the first Business hotel, the Statler Hotel, in Buffalo, New York. It was a 450 room multi-storeyed hotel. In the years 1920’s, hotel building entered a boom phase and many famous hotels were opened, including Waldorf Astoria, New York’s Hotel Pennsylvania and the Chicago Hilton & Towers, which was originally named as Stevens.

The increase in automobile travel in 1950’slead to the rise of ‘motor hotels’ or ‘motels’ a new category in the hotel industry. The following decades saw the introduction of budget hotels that offered basic facilities at half the rates. Gradually with the passage of time, these evolved into countrywide and international chains.

In the last ten decades, hospitality industry has grown tremendously. Many new concepts of management contract, leasing, timeshare, condominiums membership hotels have emerged.

Major hotel chains of India

The origin of Indian Hotel Industry can be traced back to the Mughal period when Musafir-Khanas and sarais were offered to stay. But with the coming of Britishers in cities like Kolkata and Mumbai, theses sarais and Musafir-Khanas were changed into new style of lodgings i.e, inns and western style hotels. The major players behind developing Indian hotels include:

Welcome Group of Hotels

Founder               Indian Tobacco Company             (ITC)

Year                       1974       (First hotel in 1975)

Speciality:            Its restaurants Bukhara, Dakshin, Peshawari, DumPukht and Kebabs and Curries are well cuisine brands today.

Brands:                 ITC- Luxury Collection hotels, Welcome Hotels/Sheraton Hotels, Fortune Hotels, Welcome Heritage Hotels.

Taj Group of Hotels

Founder               Jamshed ji Ratan ji Tata

Parent Company              The Indian Hotel Company-IHC (a part of the TATA group of Industries)

Year       1903

Brands  Taj Luxury Hotels, Taj Business Hotels, Taj Palace Hotels, Taj resorts, Taj Garden Retreats, Taj Cultural centre, Vivanta by Taj, Gateway Hotels.

Oberoi Group of Hotels

Founder               Late Rai Bahadur Mohan Singh Oberoi

Parent Company              East India Hotels (EIH)

Year       1934

Brands  Oberoi Hotels & resorts, Trident Hotels, Oberoi Vilas Hotels and Oberoi Cruiseliners.

Ashoka Group of Hotels              

Founder               Indian Tourism Development Corporation (ITDC)

Year       1965

Brands  Elite Hotels, Classic Hotels and Comfort Hotels

Jaypee Hotels LTD.

Founder               Jaiprakash Gaur

Parent Company              Jaiprakash Asociates limited.

Year       1981      

Brands  Jaypee Palace (Agra), Jaypee Vasant Continental (New Delhi), Jaypee Siddhartha Hotel (New Delhi), Jaypee Residency Manor (Mussourie), Jaypee Green Resort (Greater Noida) etc.

Major International Hotel Chains

Holiday Inn

Founder               Kemmons Wilson

Parent company               Intercontinental Hotel Group (IHG)

Year of Foundation         1950

Product Line       Holiday inn, Holiday Inn Garden Court, Holiday Inn express, Holiday Inn Sunspree Resort.

Intercontinental Group of Hotels

Founder               William Bass

Parent Company              Public Limited company(IHG itself, founded by Pan American World Airways)

Year of Foundation         2003

Product Line       Inter Continental, Crowne Plaza, Hotel Indigo, Staybridge Suites, Nickelodeon Family Suites, by Holiday Inn, and Candlewood Suites.

Sheraton group of Hotels

Founder               Ernst Henderson and Robert Moore

Parent Company              Starwood Hotels and Resorts Worldwide (Later it was purchased by ITT Corporation-New York, then called as ITT Sheraton.)

Year of Foundation         1937

Product Line       Four Points, Element, St. Regis Hotels and Resorts, Le Meridien, Westin Hotels, W Hotels and Aloft.

The Carlson Group of Hotels

Founder               William B. Johnson

Parent Company              Carlson Companies (Minneapolis, US)

Year of Foundation         1938

Product Line       Radisson Hotels, Country Inns & suites, Park Inn, Park Plaza and Regent International.

J W Marriott Group of Hotels

Founder               J. Williard & Alice S Marriott

Parent Company              Marriott International

Year of Foundation         1927

Product Line       Full Service Lodging, Select Service Lodging, Extended Stay Lodging, Timeshare.

Brands  Marriott Hotels, Resorts & suites, Marriott Courtyard, Marriott Residence Inn and Marriott Fairfield Inn.

The Hilton Group of Hotels

Founder               Conrad Hilton

Parent Company              Blackstone Private Equity

Year of Foundation         1919

Product Line       Luxury, Full service, Select Service, Limited Service, Extended Stay Suites, Timeshares

Brands  Hilton Garden Inns, Doubletree by Hilton, Embassy suites, Conard International and Hampton Inns.

Ramada Group of Hotels

Founder               Marion W. Isbell

Parent Company              Wyndham Worldwide

Year of Foundation         1953

Product Line       Ramada ltd ( Budget Properties), Ramada Inns and Suites (Full Service Properties), Ramada Hotel, Suites & resorts (Full Service Properties), Ramada plaza (Lower upscale), Ramada Renaissance.

Hyatt Group of Hotels 

Founder               Thomas J. Pritzker

Parent Company              Hyatt Hotel Corporation

Year of Foundation         1957

Product Line       Grand Hyatt, Park Hyatt, Hyatt Regency, Hyatt resorts and Spa, Hyatt Place, Andaz, Hyatt Vacation Club.