Feroz Kerala

7/30/2019 Feroz Kerala

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SERVICE MARKETING CASE

STUDYPRESENTED BY

FEROZ.M-113

MAHESH.G-223

PRAVEEN.R-333

KOTESWARARAO.S-243


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Executive Summary:

The Hospitality Industry in India, hotel industry,is a significant stake holder of the Indian TourismSector.

Renaissance Hotels and Resorts International(RHI) is a subsidiary of the listed SingaporeCompany, the Straits Trading Company Limited

The company worked out a joint venture

agreement with Chennai based Indian developerXS Real Properties, which is known asRenaissance India Hospitality Private Limited,manages hotels and resorts in India.


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Brief of Hotel Industry:

The Hospitality Industry in India, hotel industry,

is a significant stake holder of the Indian Tourism

Sector.

The Government of India has approved 300 hotel

projects, nearly half of which are in the luxury

range and also estimated that 50 international

budget hotel chains are moving to India to staketheir turf.

Already 281 new hotels are under development

and due to open over the next 10 years.


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Hospitality Industry in Kerala:

Kerala tourism industry expects to clock 11.6% annualgrowth in tourism industry, which is the highest growthrate for any tourist destination in the whole world.

The Kerala government has redefined its role to encourage

entrepreneurship. Today; it is a catalyst rather than aregulator and promotes a conductive atmosphere fortourism to flourish by organizing.

The government supported the entrepreneurs by its smartmarketing strategy.

It is the only state in India that practiced the ancient healthscience with dedication, and positioned itself to assuretourists that the rainy season is the best time forrejuvenation.


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Identification of Problem:

The major problem facing the RHI is to whether toopen a new hotel in Kochi or not .If opened what arethe advantages and disadvantages it will have, and

how it can face the competition in the market fromthe existing ones.

The recommended plan from us is that as there is anestimation of developing 5 0r 6 New hotels in Cochinor in Kerala

It can develop a new 5-star Deluxe, 5 star &4-starhotels as the total number of rooms available in thiscategory are 2384 and the no of tourists visitingKerala are increasing at a rate of 10% per year.


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Continuation..

The increase in number of hotels and restaurantshas amplified the competition ,and each player istrying to create better brand visibility with their ownUSPs

. Increasing consumer awareness on quality, process,

and taste is also making hotels and restaurants tofocus more on bets practices and quality standards.

Kerala has an acute shortage of rooms in the season,and the shortage is being met by the home stayfacilities developed throughout the state.


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Recommended Strategies:

Renaissance Hotels and Resorts International(RHI) can develop its new hotel in Cochin as ithas the highest area(94.88 Sq.km)with apopulation of 12,52,025 by 2011 andestimated population of 13,69,539.Kochibeing the industrial and commercial capital of

Kerala, the population alone is expected to be10% per decade.


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Departmental Expenses:

We note that the departmental expenses continue to increase as apercentage of departmental revenue as we go from Five-Star Deluxeto One-Star hotels.

The food and beverage expenses are as high as 67% and 69%respectively, for Two and One-Star hotels, as compared to 50-54% forFive-Star Deluxe and Five-Star hotels.

The smaller inventories of the lower rated hotels do not permit themto achieve efficiencies of scale in food and beverage operations.

As guests use portable phones and even portable internet devices,the use of hotel phones and internet is reducing, making it expensiveto provide these facilities.

However, these facilities are an important consideration whenchoosing a hotel, and hence it is necessary to have them in theproperty.


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Market Segmentation:

Distinct differences are observed in marketsegmentation across various star categories.

The contribution of the domestic business traveller

segment increases in the Three-Star hotels ascompared to the Five-Star and Five-Star Deluxe, andforms the major constituent of demand for the Two-Star and One-Star hotels, therefore re-affirming theprice sensitivity of the domestic traveller, along withits major contribution to hotel demand.

Airline and MICE segments contribute largely to thedemand for Five-Star and Five-Star Deluxe hotels.


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Country of Origin:

The overall constitution of the country oforigin of guests continues to mirror that ofthe previous years; the UK and USA continueto dominate the overall visitations. This yearwitnessed increased visitation from Europe.


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Statistics:


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Foreign Tourist Arrivals


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Domestic Tourist Visits:


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Cont..


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Foreign Tourist Visits:


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Cont..


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Top 10 states of FTV-2011


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Thank

U

Feroz Kerala

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