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Published by Jigya
Notes of the Sector no. 1 - Hotel of tybms sem 5th SSM by Prof. Kripa Kalro.
Her all notes a complete and cover the whole portion, no need for any other reference!
Notes of the Sector no. 1 - Hotel of tybms sem 5th SSM by Prof. Kripa Kalro.
Her all notes a complete and cover the whole portion, no need for any other reference!

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Published by: Jigya on Aug 30, 2009
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08/18/2012

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TYBMS - SEM V - SSMCompiled by Kripa Kalro
SECTOR 1: HOTEL AND CATERINGSERVICES (HOSPITALITY)
CHAPTER CONTENTS:
4 Characteristics
Innovations
Technology
Users
Segmentation
Classification of hotels
8 P`s
PEST Analysis
Additional matter 
INTRODUCTION:
The concept of hotel originated in the 6
th
century B.C. in the form of Inns. These were run by couples and provided sleeping arrangements in big rooms, similar to dormitories in theyouth hostel. Hence the hotel industry has its roots in the past in almost every country.According to welester : “A building of institution providing lodging, meals & service for the people.” According to “Chamber twentieth century dictionary.” says: “It means asuperior house for the accommodation of strangers”A hotel is a place where all who conduct, themselves properly and who being able andready to pay for their entertainment, accommodation and other services including the boarding like a temporary home. It is home away from home where all the modernamenities and facilities are available on a payment basis. The aforesaid viewpointsregarding the hotel clarify that hotel is a public place where all possible facilities aremade available to a person or persons who stay. The facilities like entertainment, food,accommodation etc- thus become the core services of a hotel.
4 CHARACTERISTICS OF HOTEL INDUSTRY1) Intangibility
: Intangible services are difficult to sell because they cannot be producedand displayed ahead of time. They are therefore harder to communicate to prospectivecustomers. Marketers of services can reduce these risks by stressing tangible cues thatrange from the firm's physical facilities to the appearance and demeanor of its staff to the1
 
TYBMS - SEM V - SSMCompiled by Kripa Kalroletterhead on its stationery to its logo. Thus the industry has to provide these tangiblecues.
Strategies to deal with intangibility
Visualization – it promotes the tangible element of a service. For example, a hoteldepicts the benefits of dining at its restaurant with its ads, which shows beautifulinteriors, well laid facilities, etc.
Association - while promoting the hotel, the service is associated with a tangible person, object or place. For example: Mc Donald’s has associated itself withRonald, the clown in order to appeal to children.
Physical representation services when represented by some physicalrepresentation help in building the trust of the customers for example: restaurantsdress their service providers in uniforms to emphasize visibility, reliability andcleanliness, attractive menu cards also help.
Documentation - documentation is sued by service providers to tangibilise their intangibles. Hotel orchid advertises the awards received by it in the recent pastand emphasis its hotel as an environmentally sensitive hotel.
Branding - also adds tangibility to intangibles. Brand help in differentiating theservice from that of its competitors in terms of name, logo, mascot and other identifying features and forms an important component of the communication mix
2) Inconsistency
: The services performed in the hotel industry are largely dominated byrelationship management- that is performed by individuals. Since no human is perfect, itis difficult to standardize the quality of the human effort in this industry. The fact thatservice quality is difficult to control compounds the marketer's task. Services are performances, often involving the cooperation and skill of several individuals, and aretherefore unlikely to be same every time. The only solution to this problem is to designservices to be as uniform as possible. Mc Donald’s- the world’s largest fast food chain isrenowned to standardize the quality of its service by making the whole process asstandardized as possible. This is supplemented by training personnel to follow closelydefined procedures, or by automating as many aspects of the services as possible. Theappeal of some service personnel - particularly, the hotel industry- lies in theispontaneity and flexibility to address individual customer needs. The service provider must find ways to reduce the perceived risk due to variability - one method is to designservices to be as uniform as possible – by training personnel to follow closely defined procedures, or by automating as many aspects of the services as possible. The hotelindustry’s ability lies in their spontaneity and flexibility to address individual customer needs. The danger with too much standardization is that of loosing customization andhence reducing much of their appeal. A second way to deal with perceived risk fromvariability is to provide satisfaction guarantees or other assurances that the customer willnot be stuck with a bad result.
3)
 
Inseparability:
Many services require the participation of the customer in the production process. Unlike goods, which are often produced in a location far from the2
 
TYBMS - SEM V - SSMCompiled by Kripa Kalrocustomer and totally under the control of the manufacturing firm, service productionoften requires the presence and active participation of the customer - and of other customers. Depending upon the skill, attitude, and cooperation and so on that customers bring to the service encounter, the results can be good or bad, but in any event are hard tostandardize.
 
In hotel industry, the customer has to go to the service provider in order toavail the service. He cannot use the services just by sitting at his residence. Thus hotelindustry is an inseparable service.
4) Perishability
: If the full capacities of the services are not utilized, the service becomes perishable. If a hotel having an accommodation facility of 100 rooms is able to lease outonly 70 rooms a particulars day, then the remaining 30 rooms or 30% capacity gets perished a can never be reversed. The product is perishable a room not sold tonight is lostforever. Hoteliers hence give off season rates, do contract bookings with large tour operators etc. They also try to do maintenance/ room renovation during non-peak seasons.
Strategies to deal with Inventory:
The nature of demand for hotel services is more – less seasonal. In case of peak seasons, the demand is much greater than the supplycapacity. However in case of off seasons the demand is very less as compared to the potential supply. This is more relevant in case of hotels located at places of touristattraction like Matheran and Mahabaleshwar.During off-season; hotels can tie-up with some agencies like travel and tourism agencies.These agents play a key role in recommending services to the customers and can form animportant distribution channel. Also hotels can design attractive packages and schemesto attract customers. The best example of this is the Taj.
INNOVATIONS IN HOTEL INDUSTRY
Auto check-in and check outNew items in menuSpecialty restaurantsFood festivals (Kebab Festivals)Information desksShopping arcadesBullet/ Capsule LiftsUnderground/ Underwater Hotels (Burj-al Arab)
TECHNOLOGIES IN HOTEL INDUSTRY
Satellite channelsInternational direct dialSafe Deposit LockersOnline bookingIn-house entertainment: DVD libraryDatabase of past guests: birthdays, anniversaries, preferencesEcotels: Ecofriendly hotels: orchid3

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