O F

I AL IA
N T I ND
T E IN
P O RY
H & S T
W T D U
O I N
GR VICE O L
E R C HO
S ES S S

y; U SIN
b L B
n t ed umar N A
r e se u K AT IO
P n sh RN
im a TE
H Y I N 0
I T 70
AM 2008
1 80
A
 PREFACE
• INTRODUCTION
• CONTRIBUTION OF SERVICES IN GDP
• CLASSIFICATION OF MAJOR SERVICES
• MAJOR PLAYERS
• FUTURE OF SERVICE INDUSTRY
• INDIAN HOSPITALITY INDUSTRY
• SWOT- HOSPITALITY INDUSTRY
• SEGMENTATION
• MAJOR PLAYERS, CHALLENGES & FUTURE SCOPE
• MARKETING STRATEGY
 INTRODUCTION- SERVICE
• “ Activity or benefit that one party can
offer to another that is essentially
intangible and does not result in the
ownership of anything. Its production
may or may not be tied to a physical
product. ”
 CHARACTERSTICS OF SERVICES
• Intangibility- Cannot be touched, seen, tasted, heard, or smelled before purchase. Lack of
trial means higher consumer risk. Consumers rely on cues to draw quality inferences
• Inseparability- Services are produced and consumed at the same time (air travel). Service
providers and sometimes other customers become part of the service (restaurant)
• Variability- Service providers vary with respect to attitudes, skills, mood, etc. Even the
same provider may give different service on a different day
• Perish ability- Services can not be inventoried or otherwise stored. Capacity / demand
management is critical
 CONTRIBUTION IN GDP

MITES, srikant kulkarni

CLASSIFICATION OF MAJOR SERVICES

MITES, srikant kulkarni

 MAJOR PLAYERS

MAJOR MAJOR PLAYER MAJOR PLAYER MAJOR PLAYER

SERVICES 1 2 3

FINANCIAL SBI Capital Markets Bajaj Capital Limited Birla Global Finance
SERVICES Limited Limited

GOVERNMENT NTPC BSNL HAL

SERVICES

TRANSPORT TNT Express AFL DHL

SERVICES

HEALTHCARE Apollo Life Sun Healthcare Nicholas Primal India

SERVICES Private Ltd.

INFRASTRUCTURE HCC Infrastructure Maytas Infra Limited Reliance

Infrastructure
 Contd..
MAJOR MAJOR PLAYER MAJOR PLAYER MAJOR PLAYER
SERVICES 1 2 3

EDUCATION IIT Bombay IIT Kanpur IIM Ahmadabad

ENTERTAINMENT Sony Pictures ZEE Televisions STAR TV

IT SERVICES TCS INFOSYS WIPRO

BUSINESS & Global Hunt New Star Consulting Reliance Quality

PROFESSIONAL Consultants

HOSPITALITY ITDC Hotels ITC Hotels Indian Hotels

Company Ltd. (TAJ
Hotels)
 FUTURE OF SERVICE INDUSTRY
• Service sector is the lifeline for the social economic growth of
a country. It is today the largest and fastest growing sector
globally
• The real reason for the growth of the service sector is due to
the increase in urbanization, privatization and more demand
for intermediate and final consumer services
• services hold immense potential to accelerate the growth of
an economy and promote general well-being of the people.
They offer innumerable business opportunities to the
investors. They have the capacity to generate substantial
employment opportunities in the economy as well as increase
its per capita income
• Globally outsourcing industry would continue to grow
 INDIAN HOSPITALITY INDUSTRY
• Hospitality is about serving the guests to provide them with "feel-good-
effect". "Athithi devo bhavha" (Guest is God) has been one of central
tenets of Indian culture since times immemorial. In India, the guest is
treated with utmost warmth and respect and is provided the best services
• Today hospitality sector is one of the fastest growing sectors in India. It is
expected to grow at the rate of 8% between 2007 and 2016
• The industry is more dependent on metropolitan cities as they account for
75% to 80% of the revenues, with Delhi and Mumbai being on top
• The average room rate (ARR) and occupancy rate (OC) are the two most
critical factors that determine profitability
• ARR depends on location, brand image, star rating, quality of facilities and
services offered
• The occupancy rate depends on other seasonal factors
• India is an ideal destination for tourists. Approximately 4.4 million tourists
visit India every year. Thus the growth prospects are very high.
 SWOT- Hospitality Industry
STRENGTHS WEAKNESSES
• Natural and cultural diversity • Poor support infrastructure
• Demand-supply gap • Slow implementation
• Government support • Susceptible to political events
• Increase in the market share

OPPORTUNITIES THREADS
• Rising income • Fluctuations in international tourist
• Increasing demand arrivals
• Open sky benefits • Increasing competition
H SEGMENTATION Star Rated Hotels

O Heritage Hotels
S Hotels
P Hotel Budget Hotels
I Industry
T Facility Hotels
A Restaurants
L Resorts
I
T
Y Casual Dining
I
N Fine Dining
D Tourism Coffee Bars
U Travel &
Fast Food
S Tourism
Hotel Chains
T Industry
R Travel
Y
 MAJAOR PLAYERS, CHALLENGES &
FUTURE SCOPE
• MAJOR PLAYERS- ITC Hotels, Indian Hotels Company Ltd.
(The Taj Hotels Resorts & Palaces), Oberoi Hotels (East India
Hotels), Hotel Leela Venture, Asian Hotels Ltd., Hotel corporation
of India, ITDC Hotels
• MAJOR CHALLENGES- Shortage of skilled employees,
Retaining quality workforce, Shortage of rooms, Intense
competition, Customer expectations, etc..
• FUTURE SCOPE- The factors that will account for the further
growth of tourism will include the following:
>Change in standards of living
>More disposable income
>Better education
>Long leisure time
>Aging population
 MARKETING STRATEGY
• Staff should be trained via internal marketing efforts to successfully
delivering a service and improve employees’ skill in serving the client
by Interactive marketing
• Improve technical and functional qualities to acquire customer
satisfaction
• Manage differentiation by improving delivery system, innovative
features and image & branding
• Managing service quality by filling service gap
• Well-Managed Service Firms Share
>A strategic concept
>Commitment from top-management
>High standards
>Firm and customer monitoring systems
>Satisfaction of employees and customers
 Contd..
• Indian hotel companies look overseas
• Many business hotels in India are integrating full-fledged spas
on their premises, originally a main stay of resort properties.
• in order to attract more visitors, India still needs to
dramatically increase the number of rooms available
• Maintain adequate infrastructure
• Retain quality work force and skilled employees
 . .
ou
y
n k
h a
T