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has largely been replaced by rooms with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

Hotel
Services
Perishability
Heterogenity
• Fluctuation in international tourist arrival Threats
• Increasing competition
• Rising income Opportu
nities
• Open sky benefits
• Poor support infrastructure Weakne
• Slow implementation ss
• Natural & cultural diversity
• Demand-Supply gap Strength
s
• Govt support
• Increase in market share
SWOT Analysis – Hotel Industry
MARKETIN G MI X
Price

People Product

Promoti 8 P’s of Place

on Marketing

Physica
l
Process
evidenc
e Product
ivity &
Quality
PRODUCT
 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
CORE PRODUCT
• A private room with bathroom

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

C osts
incurred

Pricing
Strategy
C Value of
ompetiton Customer
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

Advertising

Public Sales
Relations Promotion

Promotion
M ix

Direct
Direct Mail
Marketing

Travel
workshops
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.

M ission
• 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.
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.

TajLeisure 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.

TajBusiness 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 income
Globalization
New Geographical location

Threats :- Fluctuations in international

tourist arrivals
Increasing competition
Terrorism
Porter’s Potential Entrants
Global hotel groups entry

Five Forces •THREAT : MODERATE

Analysis
Industry Competitors Buyers
• Oberoi groups • Global tourists
Suppliers • Leela group of hotels
• Many available •Medical tourists
• THREAT: HIGH •Industrialist people
suppliers
•THREAT: LOW

THREAT: MODERATE

Substitutes
• Small lodges
Customer Need •THREAT: HIGH
• Good Hospitality (because of new class,
• Hygiene food and Low otherwise)
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.
 Alliances

• 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.
 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