Sustainable Competitive Advantage in the Hotel Industry and Impact of Innovations on Occupancy ...

314 Pages·2010·1.37 MB·English

Sustainable Competitive Advantage in the Hotel
Industry and Impact of Innovations on Occupancy
rate – A Managerial Perspective.
Thesis Submitted to the Padmashree Dr. D. Y .Patil University,
Department of Business Management
In partial fulfillment of the requirements for the award of the Degree of
DOCTOR OF PHILOSOPHY
in
BUSINESS MANAGEMENT
Submitted by
Krishna K. Shetty
Enrollment No. DYPPHD07- 066100026
Research Guide
Dr. R. GOPAL
DIRECTOR, DEAN & HEAD OF DEPARTMENT
PADMASHREE DR. D.Y. PATIL UNIVERSITY,
DEPARTMENT OF BUSINESS MANAGEMENT,
Sector 4, Plot No. 10,
CBD Belapur, Navi Mumbai – 400 614
June 2010
1
Sustainable Competitive Advantage
in the Hotel Industry and Impact of
Innovations on Occupancy rate
– A Managerial Perspective.
2
DECLARATION
I hereby declare that the thesis entitled “Sustainable Competitive
Advantage in the Hotel Industry and Impact of Innovations on Occupancy
rate – A Managerial Perspective.” submitted for the Award of Doctor of
Philosophy in Business Management at the Padmashree Dr. D.Y. Patil
University Department of Business Management is my original work and
the thesis has not formed the basis for the award of any degree, associate
ship, fellowship or any other similar titles.
Place:
Date:
Signature of Guide Signature of Head of Dept. Signature of student
3
CERTIFICATE
This is to certify that the thesis entitled “Sustainable Competitive
Advantage in the Hotel Industry and Impact of Innovations on Occupancy
rate – A Managerial Perspective.” submitted by Mr. Krishna K. Shetty is a
bonafide research work for the award of the Doctor of Philosophy in
Business Management at the Padmashree Dr. D. Y. Patil University
Department of Business Management in partial fulfillment of the
requirements for the award of the Degree of Doctor of Philosophy in
Business Management and that the thesis has not formed the basis for the
award previously of any degree, diploma, associate ship, fellowship or any
other similar title of any University or Institution.
Also certified that the thesis represents an independent work on the part of
the candidate.
Place:
Date:
Signature of the
Head of the department Signature of the Guide
4
ACKNOWLEDGEMENT
In the first place, I am indebted to the Padmashree Dr. D.Y. Patil University
Department of Business Management, which has accepted me for
Doctorate program and provided me with an excellent opportunity to carry
out the present research project. I am highly grateful to Dr. R. Gopal, my
guide, the Director, Dean and Head of the Department of Business
Management, who has been a source of constant support, inspiration and
encouragement. Without his valuable guidance and mentoring this
research would not have been possible. I am grateful to my family and
friends for being supportive throughout this period of four years when I
have been pursuing my Ph.D.
Place:
Date: Signature of the student
5
CONTENTS
CHAPTER -TITLE PAGE
NO. NO.
Preliminary Cover Page 1
Title 2
Declaration 3
Certificate 4
Acknowledgement 5
List of Tables 8
List of Figures 9
List of Abbreviations 10
Executive Summary 11 - 14
Chapter -1 Introduction 15 - 22
Chapter -2 Review of the Literature 23 – 39
2.1 Literature Review 23
2.2 Research Gap 38
Chapter -3 Objective of Research 40 – 45
3.1 Research Problem 40
3.2 Statement of Research Objectives 41
3.3 Hypotheses 42
3.4 Importance of Research 45
Chapter -4 Research Methodology 46 – 49
Chapter -5 Hospitality and Hotel Industry – An overview 50 – 78
5.1 Introduction 50
5.2 History of Hotels and Motels 53
5.3 Hotels in Modern Times 56
5.4 Motels and its features 59
5.5 Advent of Hotel Chains 63
5.6 Origin of Food Service Industry 64
5.7 Types of Hotels 64
5.8 Hotel Organization 69
Chapter -6 Hotel Industry – The Global Scenario 79 – 91
Chapter -7 Hotel Industry in India and Thailand 92 – 150
7.1 Hotel Industry in India 92
7.2 Hotel Industry in Thailand 134
Chapter -8 Sustainable Competitive Advantage and Innovations in 151 – 201
the Hotel Industry
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Chapter -9 Data Analysis and Major Findings 202 - 235
9.1 Data Analysis 202
9.2 Major Findings 227
Chapter - Recommendations and Suggestions 236 – 241
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Chapter - Conclusion 242 – 245
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Appendices 246 – 314
Appendix I – Bibliography 246
Appendix II - Questionnaire used for survey 251
Appendix III- SPSS Outputs 261
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LIST OF TABLES
Sr. Table No. Table Name Page
No. No.
1. Table 4.1 Overall Sampling 48
3. Table 6.1 Worldwide hotel ranking 2007 82
4. Table 6.2 Top 20 hotel brands worldwide 82
5. Table 7.1. The supply demand gap in premium hotels segment (Avg.10 major 102
cities)
6. Table 7.2. Thailand tourism growth rate. 139
7. Table 7.3. Thailand tourism receipts 140
8. Table 7.4 Thailand hotels grading points 147
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LIST OF FIGURES
Sr. Figure No. Figure Name Page
No. No.
1. Figure 5.1. Large Independent Hotel Structure 71
2. Figure 5.14. Small Hotel Structure 77
3. Figure 6.1. Worldwide Real GDP Growth –2003 to 2007 79
4. Figure 6.2 Rev PAR Change by Region May YTD 80
5. Figure 6.3 Most key global cites are also seeing substantial rate growth 80
6. Figure 6.4 European Supply & Demand Monthly Change 81
7. Figure 6.5 U.S. Supply & Demand Monthly Change 81
8. Figure 6.6 The growth rate of the hotel supply at corporate chains 83
worldwide from 2001 to 2006
9. Figure 6.7 Hotel Occupancy Rates –Major World Cities. 86
10. Figure 7.1 Sectoral Growth Rates at Factor Cost by Industry – India (03-09) 93
11. Figure 7.2 Domestic tourist visits to India 111
12. Figure 7.3 FTA in India over the past four years 112
13. Figure 7.4 Passengers carried by domestic airlines 112
14. Figure 7.5 Growth of RoomSupply – India (1998/99-2013/14) 119
15. Figure 7.6 Thailand tourist arrivals 2007 -09 139
16. Figure 8.1 A Model of Competitive advantage 169
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List of Abbreviations
GDP = Gross Domestic Product
WTTC = World Travel and Tourism Council
TSA = Tourism Satellite Accounting
UNWTO = UN World Tourism Organisation
SCA = Sustainable Competitive Advantage
F & B = Food and Beverages
RevPAR =Revenue Per Available Room
IRCTC = Indian Railway Catering and Tourism Corporation
ITDC = Indian Tourism Development Corporation
FDI = Foreign Direct Investment
RBI = Reserve Bank of India
FTA = Foreign Tourist Arrivals
FEE = Foreign Exchange Earnings
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