Service sector management: Hotel industry by Riddhimaan Nandgaonkar 07B431 Shivam Trivedi 07B456 Sneha Meshram 07B465 Naresh Gedala 07B412
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Service sector management: Hotel industry
by Riddhimaan Nandgaonkar 07B431Shivam Trivedi 07B456Sneha Meshram 07B465Naresh Gedala 07B412Sameer Sayyed 07B444Sanket Gahukar 07B413
INTRODUCTION TO HOTEL INDUSTRY
Introduction
• Linked to the tourism industry• Helps to boost travel & tourism• Business Travel is included• Demand –supply gap in star category hotels• Opportunity for investment for Indian and
over seas players
Introduction
Introduction
Future Potential & Growth
• World Tourism Organisation (WTO) - International tourist inflow in India by 2020 would be 10 m
• Tourist influx to grow at a CAGR of 6.5% for the next 14 yrs• Expected share of world tourism: 1.5% by 2010• Untapped domestic tourist potential• Commonwealth Games in New Delhi in 2010• Medical Tourism• Rural Tourism• Wildlife Tourism
Demand Supply Gap
• Demand Supply Gap for 2012– 1,50,000 rooms Supply – 1,10,000 rooms Demand – 2,60,000 rooms
• Demand Supply Gap – 60,000 Supply - 90,000 rooms Demand – 1,50,ooo rooms
Ample scope for Indian and global players to set up new projects
Perceptual brand mapping of Indian hotels
SWOT
• Strengths– Diversity– Demand-Supply gap– Government Support– Market Share
• Weakness– Poor Infrastructure– Slow Implementation– Susceptible to political Events
SWOT
• Opportunities– Open Sky– Rising Income
• Threats– Fluctuation– Increasing Competition
INTRODUCTION TO ITC HOTELS
Introduction to ITC hotels
• ITC Limited entered the hotels business in 1975• ITC hotels currently owns and operates 100 hotels in 75
destinations• India's second largest hotel chain• They show our heritage• The group today operates under different brands:
– ITC Luxury Collection Hotels– WelcomHotel Sheraton Hotels– Fortune Hotels– WelcomHeritage Hotels– WelcomeEnviron
ITC Hotel Properties
• ITC Hotel Maurya Sheraton & Towers, New Delhi• ITC Hotel Grand Maratha Sheraton & Towers, Mumbai• ITC Hotel Sonar Bangla Sheraton, Kolkata• ITC Hotel Grand Central, Mumbai• ITC Hotel Windsor Sheraton & Towers, Bangalore• ITC Hotel Kakatiya Sheraton & Towers, Hyderabad • ITC Hotel Park Sheraton & Towers , Chennai• WelcomHotel Rajputana Palace Sheraton, Jaipur• WelcomHotel Chola Sheraton, Chennai• WelcomHotel Mughal Sheraton, Agra• WelcomHotel, New Delhi• WelcomHotel Rama International , Aurangabad• WelcomHotel , Vadodara (through associate company)• WelcomHotel , New Delhi • WelcomHotel Grand Bay, Visakhapatnam
MARKETING MIX
Marketing mix – Product(services offered)
• Room bookings – Eva, business, executives, disabled• Butler service• Wi-Fi internet• SPA & Swimming pool• Meeting rooms/ Conference rooms/ Board rooms• Restaurants & Bars• Meetings and Events/ Luxury events
Marketing mix - Pricing
• The hotels are classified under four different categories for pricing:- (Grand Central, Parel, Mumbai)– Luxury - Rs.31500– Upscale – Rs. 27500– Mid-market – Rs. 23500– Budget - Rs.12500
• The restaurants are also divided into such categories
Marketing mix - Promotion
• Promotion through FMCG goods• Internet• Media reports and media releases• Concept promotion• Customers• Social service projects• Travel assistants• Hotel directories
Marketing mix - People
• Receptionists• Bell boys• Laundry servicemen• Butlers• Room service• Chauffers• Managers• Cleaners• Assistants for guests• Chefs• Waiters etc
Marketing mix - Place
• Strategic Locations• Metropolitan cities• Business hubs• Tourist places• Heritage areas• Upcoming areas
CAPACITY AND DEMAND
Capacity and demand
Capacity(ITC Grand central, Parel, Mumbai)• 242 guest rooms and suites• Arranging tours for guests(Around 400 people in a day)• 24-hour Butler service for all 242 rooms(optimum capacity – 30
rooms at a time)• Grand ballroom – 400 to 750 guests at a time• 5 conference halls• 6 restaurants which can cater roughly 430-500 people at a time viz
Kebabs and Kurries, Hornby’s Pavilion, Shanghai Club, Dublin, Frederick’s Lounge and The Point of View.
Capacity and demand
• The flow of customers is stable but it dips a bit in the rainy season
• Generally if the customers exceed the capacity then they are given suggestions to go to other ITC properties
• If the customers want the same area then other hotels nearby are indirectly suggested(eg. Oberoi trident, Taj, Grand hyatt eyc)
SERVICE QUALITY
Service quality
• Hospitality – treatment of guests• Material attributes – food, toiletries,
complimentary goods etc • Time management – efficiency in service • Communication• Presentation
CONSUMER PERCEPTION AND BEHAVIOUR
Consumer behaviour and perception
Behaviour(Why customers go?)• Disposable money• Class/ Status• Image of ITC as an excellent brand• Luxury expectations• References received• Personal liking• Feel good factor
Consumer behaviour and perception
Types(Who goes?)• Business class• Executives• Tourists• Local people using hotels for pleasure• Party goers• Study groups• Work groups
Consumer behaviour and perception
Perception(What do consumers expect/feel?)• Excellent conditions• High class treatment• Effective time management• Value for money• Rise in social status• Safety & Security• Hygiene
Thank You
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