"A Study of Factors Influencing Increasing Attrition Rate in Hotels of Pune, Its Impact on the Organization and Measures Undertaken by the Hotels to Curb the Attrition Rate"

The hotel industry of Pune has been evolving since long. The competition in the industry is fierce and every brand is putting their best foot forward by providing "Service par Excellence" to their guests to increase their market share and this is where the hospitality sector differentiates itself from others. Hotel industry is a part of Service industry and is characterized by the intangible nature of its product i.e. "Service". Unlike the tangible products produced by other industries, the quality of "Service" cannot be standardized through machines because there is a Human factor that is involved in producing & consuming of service. Thus, in the hotel industry the human element is of utmost importance. The industry aims at channelizing their human resources towards attainment of their objectives and the major challenge faced by the industry today, is the raising attrition rate of its employees.

This study is aimed at analyzing the facts pertaining to the issue of increasing attrition rate in the hotels of Pune city. In an effort to do so, a survey in the form of a questionnaire and interviews was conducted from the sample comprising of employees of hotels in Pune to understand their views on the subject. The responses received were represented graphically and analyzed using basic percentage and chi square tools.

The findings of this research suggests that: Long working hours and low salaries are the major factors that affect the attrition rate in hotels which has a great impact on customer satisfaction and reputation of the hotel. Although the hotel industry is concerned with the increasing attrition rate in the industry and have designed various policies to curb the same, they are not found to be sufficiently effective in dealing with the problem.