HOTEL M ARKETING

Presented By : Govardhan.J.B Haritha..M Janani.S

Introduction

What is a hotel ? A hotel is an establishment that provides

paid lodging on a short-term basis. The provision of basic accommodation, in times past, consisting only of a room with a bed, a cupboard, a small table and a washstand has largely been replaced by rooms with modern facilities, including en-suite bathrooms

and air conditioning or climate control

HOTEL INDUSTRY

Hotels are a major service industry in India, whose significance is undoubted.

The hotel industry in India is one of the fastest growing sector of our economy.

The hotel industry in India seconds China in the Asia Pacific region. It is valued at $23 million (Rs.11976 crores).

About 4.4 million tourist visit India every year, thus the growth prospect is very high. The hotel market is expected to double by 2018.

C LASSIFI C ATION OF HOTELS

Characteristics of Hotel industry as a service industry

Intangibility

Inseperability

Heterogenity Perishability

Hotel Services

SWOT Analysis – Hotel Industry

Strengths

•Natural & cultural diversity

•Demand-Supply gap

•Govt support

•Increase in market share

Weakness

•Poor support infrastructure

•Slow implementation

Opportunities

•Rising income

•Open sky benefits

Threats

•Fluctuation in international tourist arrival

•Increasing competition

MARKETIN G MI X

8 P’s of Marketing

Price

Product

Place

Process

Productivity & Quality

Physical evidence

Promotion

People

P R O D U C T

The primary components of the basic hotel product are accommodation, food & beverages.

The other components may include health facilities, shops, car rental service etc.

Hotel architects all over the world are now designing properties with much flexibility to create multipurpose adjustable rooms feasible.

In the case of a hotel where such flexibility does not exist, the product decision for accomodation will depend entirely on the accuracy of selling rooms to the right type of customers.

• A bed• A private room with bathroomCORE PRODUCT

• Travel desk• Business centre• Gym/ Swimming pool• Entertainment- cable TV• Telephone• Room service • Restaurant & Bar• Baggage service• Reception• Valet Parking• Reservation

SUPPLEMENTARY SERVICES

P e o p l e

Hotel industry involves high contact service

So people form an integral part of service The service personnel need to be

effectively trained to project proper behaviour, attitude, appearance.

The service personnel should exhibit effective emotional labour and bring about customer satisfaction.

Basis of Pricing Strategy

Pricing Strategy

C osts incurred

Value of CustomerC ompetiton

PRICING

Pricing generally tends to follow or conform to pricing standards applicable to the particular city or area.

It is also based upon the pricing strategy followed by the competitors.

Hotel pricing suffers from a large degree of lack of flexibility.

PLACE OR DISTRIBUTION

Hotel industry relies on interdependence with other industries serving tourists, and transportation industry (airlines, railways, roadways, shipping lines), travel agents and tour operators.

Franchising is seeing a rapid pace of development, so a food franchisee can assure a certain level of business.

PROMOTION MIX

Promotion

M ix

Advertising

Sales Promotion

Direct Marketing

Travel workshops

Direct Mail

Public Relations

PROCESS

It refers to procedures, mechanism or set of activities by which services are consumed.

As an element of marketing strategy, its necessary to smoothen the customer management processes to deliver excellent hassle free sevice.

PRODUCTIVITY OR QUALITY

Above all, in a hotel industry the quality of service provided is of highest important.

The quality of service in hotel industry is an important factor for successful business.

Only a high quality service can gain repeated customers to the hotel.

High quality service can help in competitive positioning.

PhysIcal Evidence

Physical Evidence is the element of service mix that allows the customer to make judgements about the organisation.

It holds the power to tangiblise the intangibles

Truly, physical evidence in hotels and restaurants speak louder than words.

In a hotel, physical evidence may refer to its location, signs and logos, styles, furniture, colours, lighting, clean air, reception etc.

MAJOR PLAYERS

Public sector players:

Hotel Corporation Of India

ITDC Hotels

Private sector players:

ITC Hotels

Indian Hotels Company Ltd.(The TAJ Hotels Resorts & Palaces)

Oberoi Hotels (East India Hotels)

Hotel Leela Venture

Asian Hotels Ltd.

Radisson Hotels & Resorts

Taj Groups

Hotel

Introduction

• Taj Hotel established on December16, 1903.

• Taj Hotels resorts &places comprises 57 hotels in 40 location across india.

• 18 International Hotels in the Malaysia,Australia.UK,USA,Sri lanka, Africa.

• Taj is recognised as the premier Hospitality provider.

• Innovator in dining:- Taj was the first to introduce thai,Italian ,Mexican into the country.

Vision• Apart from strengthing our position in the domestic market. We have adopted a vision to make Taj brand more popular in the International. The only way to do it is to either acquire premium hotels or enter into management contracts.

• Embrace talent and harness expertise to leverage standards of excellence in the art of hospitality to grow our international presence.increase domestic dominance and create value for all stakeholders.

M ission

A higher emphasis was placed on the business segment as the profits are higher (this market being less price-sensitive) as compared to the luxury segment. There was a proliferation of the Taj Presidency hotels not only in new cities, but also smaller towns.

The action plan is more opportunities, adding to and complementing the brand

Services offered • Health & Fitness facility to its Guests.

• Latest cardico vascular machines, strength-training equipment.

• Spa also includes steam rooms &sauna,specialized treatment rooms.

• swimming pool, Gardens, Waterfall

•The beauty saloon of the Taj hotel offer a wide range of beauty and hair treatment for men &women.

The TAJ Brand

The brand “Taj Hotels Resorts and Palaces” comprises 58 hotels across India and 17 hotels globally. The hotels are grouped into 3 categories - Luxury, Leisure and Business.

The Taj Luxury Hotels offer lavish accommodation, gourmet specialty restaurants and bars, fitness centres and spas and well-equipped business and banquet facilities.

Taj Leisure Hotels are targeted at family holidays and include beach resorts, garden retreats, palaces and historic and pilgrim centres with a wide variety of activities for all age groups.

Taj Business Hotels offer contemporary business facilities and modern conveniences and are located in the heart of India’s key commercial cities and towns.

SWOT Analysis

Strength :- Brand loyalty C redibility Huge Reputation Patent protection

Weakness :- High cost service Not proper network in semi-

urban Lack of safety measure

Opportunity :- Rising incomeGlobalizationNew Geographical location

Threats :- Fluctuations in international tourist arrivalsIncreasing competitionTerrorism

Suppliers• Many available suppliers•THREAT: LOW

Buyers• Global tourists •Medical tourists•Industrialist people

THREAT: MODERATE

Substitutes• Small lodges•THREAT: HIGH (because of new class, Low otherwise)

Industry Competitors

• Oberoi groups• Leela group of hotels• THREAT: HIGH

Potential EntrantsGlobal hotel groups entry

•THREAT : MODERATE

Porter’sFive ForcesAnalysis

Customer Need• Good Hospitality• Hygiene food and environment

KSFs Technology related:-Used of advance technology in hotel premises.

M anufacturing- related:- High utilization of fixed assets. Quality control know-how. Serving customer according to their specification.

Distribution-related:- Presence of hotel chain at various places. A strong network.

M arketing related:- Breadth of product line and product selection. Personalized customer services. A well-known and well-respected brand name.

• Taj Hotel Resorts and Palaces signed a marketing alliance with Okura Hotels and Resorts of Japan.

• After entering into strategic marketing alliances with Silversea Cruises and Korea's Shilla Hotels & Resorts, Taj Hotels Resorts and Palaces has entered into a strategic marketing alliance with Okura Hotels & Resorts, one of the largest international hotel groups in Japan.

Alliances

Merger & Acquisition

•The Indian Hotels Company Limited (IHCL), which owns and operates Taj Hotels, Resorts and Palaces, acquired the 100-room W Sydney from the Harileela Group for A$36 million. The property was re-launched as BLUE Sydney, a Taj Hotel in February 2 0 0 6 .

Diversification

•The company will launch the first luxury service apartments/residences through its Wellington Mews project later this year, followed by luxury residences at Taj Lands End, Mumbai.

• Indian Hotels plans to have a presence in key international cities such as New York, Los Angeles, Singapore as well leisure destinations, and in fast growing markets like China.

Reasons behind growth of Hotel Industry Growth in the Indian tourism industry has fueled the growth of Indian

hotel industry. The 'Incredible India' destination campaign and the recently launched

'Atithi Devo Bhavah' (ADB) campaign have also helped in the growth of domestic and international tourism and consequently the hotel industry.

Also India has been ranked as the fourth most preferred travel destination from 167 countries

There is a boom in the overall economy. The thriving economy and increased business opportunities in India

have acted as a boon for Indian hotel industry. The arrival of low cost airlines and the associated price wars have

given domestic tourists a host of options. Thus, the increase in the need for accommodation has hugely

increased the demands for hotels which in turn has boosted the growth of the hotel industry in India.

The future growth Hospitality experts believe that the Indian hotel industry will witness

higher than usual growth in the coming peak season. The good times for the Indian hospitality industry are here to stay, with top-end hotels experiencing high room occupancy rates even in the lean season.

“ The lean season has been exceptionally good for us. Our room occupancy rate has been around 89 per cent and we are looking at over 95 per cent occupancy for the period September to December,” says Kapil Chopra, general manager, Trident Hilton, Gurgaon.

There was an increase of 15 % in the number of international tourist arrivals in India and 14 % in the foreign exchange earnings in the first quarter of 2006 as compared to the same period last year.

The non-luxury segment in particular has been perking up with more and more investors spotting the demand supply imbalance, surge in domestic travel and growth in spending among middle-class Indians.

Conclusion

The outlook for the hospitality market in India is optimistic .

The thriving economy and increased business opportunities have acted as a boon for Indian hotel industry.

Hospitality organizations will have to find alternative avenues to attract and hire employees, and have policies and practices in place to retain quality employees.

Thank You