Training And Capacity Building In the Hospitality Sector: An Empirical Study of Luxury Hotels in Indore

Abstract

The hospitality industry thrives on service quality, and the role of employee training in building organizational capacity has become increasingly significant. This study investigates the impact of training on capacity building among employees of luxury hotels in Indore, India. Drawing on data from 300 respondents across ten luxury hotels, the research employs a descriptive and exploratory design supported by quantitative analysis. Reliability testing of the survey instrument (Cronbach’s alpha = 0.796) confirmed internal consistency. Hypothesis testing was conducted using ANOVA, t-tests, and Chi-square tests to examine relationships between training practices, employee development, and organizational outcomes. Results indicate that training significantly contributes to enhancing employee capacity, particularly in terms of work safety, motivation, career advancement, interpersonal relationships, and organizational performance. Statistical tests confirm a highly significant relationship (p < 0.001) between training interventions and employee effectiveness. The findings further reveal that systematic training practices, if aligned with departmental needs, strengthen both individual competencies and organizational capacity in the hotel sector. The study provides empirical evidence supporting training as a strategic investment, not merely an HR function, and highlights the necessity for structured training policies, multi-skill programs, and integration of training with performance appraisal systems. The paper concludes with theoretical, managerial, and policy implications, advocating for capacity-building frameworks tailored to the fast-growing Indian hospitality industry.