This action might not be possible to undo. Are you sure you want to continue?
3023-KUMAKIA POONAM. 3025-MACWAN JIGAR. 3115-DHANESWAR SHATAYU 3116MACKWANA NILAM. 3117-MASTER DIPTI. 3118-MISTRI REENA. 3133-BHRAMBHATT ANAND. 3142-KHANT RAMAN.
Chap . Particular Preface Acknowledgement Page no. 4 5 6 7 7 7 7 8 9 10 10 12 13 14 14 15 16 19 20 21 23 25 26 28 29 33
1 Research methodology What is research methodology 1.1-Identify the objective of research 1.2-Research design 1.3- Data type 1.4 - research aproaches 1.5- Research instrument 1.6 -Sampling plan 1.7- Contact method Part-2 Overview of hotel industry 1.1- Sector outlook 1.2- Future 1.3- Trends in hospitality industry Hotel industry in India 2.1- Feature of hotel industry 2.2- Classification of hotel industry 2.3- Growth of hotel industry in India 2.4- Scenario of hotel industry 2.5- Expansion plan 2.6- International recognition Segmentation of hotel industry 3.1- How star is given
Challenge of hotel industry Govt. policy 5.1- Govt. support 5.2- Step taken by HAI 5.3- Recession Star hotel in Ahmedabad Up coming hotel project in Ahmedabad Brief about visited hotel in Ahmedabad 8.1- Brief about taj hotel 8.2- Brief about ginger hotel 8.3- Brief about Sarovar portico hotel SWOT analysis of hotel industry as a whole 9.1- SWOT analysis of visited hotels PEST analysis of hotel industry Porters five force analysis of hotel industry Security in Ahmedabad after Mumbai attack 12.1- Risk factor in ahmedabad 7p’s of service marketing 13.1- Product 13.2- Price 13.3- Place 13.4- Promotion 13.5- People 13.6- Process 13.7- Physical evidence 5 Gaps model of service quality Questionnaire
36 38 38 39 41 42 43 45 45 48 52 53 59 63 71 79 81 82 83 99 108 119 132 143 153 159 167
6 7 8
10 11 12
We are the students of Bramchari Wadi Trust which is the institute of business Management. Our college has given various topic out of that we have chosen this topic . Our report is on star hotels in Ahmedabad. It is very important and inspirable part of third year of B.B.A. programme. Our report gives the knowledge and information about the Hotel Industries in India. It indicates the current scenario of hotels in India. It also helps to know various strategies of hotels in Ahmedabad to generate or capture more market share of consumer. As a student’s of T.Y.B.B.A., we hope that we tried to prepare this report enthusiastically and put our best effort to add to its quality.
As per laid down curriculum the Third Year of B.B.A. we are assigned service report on hotels management in Ahmedabad. Support for completion for the same .We is thank you to each & every person for providing us and supplying an adequate and defused information and their best support and guidance for completion of our report. We really appreciate the work and systematic efforts of our professor Mrs. Pallavi Ozza who helped guided and supports us positively and enthusiastically in getting our work done. Thanks to: Director:-Madam Shilpa Trivedi.
Madam Pallavi Oza.
What is research methodology?
Methodology is defined as 1. "the analysis of the principles of methods, rules, and postulates employed by a discipline"; 2. "the systematic study of methods that are, can be, or have been applied within a discipline"; or 3. "a particular procedure or set of procedures."
1) Identifying the objective of research.
To know that how hotels are manage. How they provide the services to the customer? For education purpose it is help a lot to learn hotels are manage. 2) Research Design: Exploratory Descriptive Exploratory Research:“Exploratory research is to gather the preliminary information that will help in defining the problem and suggest the hypothesis.” Whenever we want to derive / explore something new our research type should exploratory. In our project we have to explore the data about how hotels are manage & 7’s of visited hotels from data given by the hotel P.R.O (Public Relation Officer) people. that how
Descriptive Research: “Descriptive research is to describe things such as market potential, demographics and attitude of consumers etc.”. Descriptive research we analyzed on qualitative parameters we take the personal interview of the respondent this research is undertaken to collect the primary information.
Ex. Which star category they have belong? What type of customer they have targeted? Which kind of facility they provide to customer? What are their SWOT?
3) Data Type : Primary Secondary Primary Data: “Primary data consists of the information which is freshly collected for the specific purpose at hand.” Newly / Freshly gathered information is known as primary data. For our project sources for primary data are personal interview with hotel consultant. For getting the primary data we have visited the different star hotel like ☼ Neelsahara ☼ Hotel host inn ☼ Ginger hotel ☼ Neelkanth paradise ☼ Taj hotel
Secondary Data: “Secondary data consist of information that already exist somewhere and having been collected for another purpose.”
The data which are already exist & which was gathered earlier for, magazines any other purpose is known as secondary data, sources of secondary data are websites, etc. WWW. Hotel Industry. Com WWW. Equity master. Com WWW. Indian equity fund. Com WWW. Neelkanth group of hotel. Com WWW. Taj hotel. Com. WWW. Ginger hotel. Com WWW. Sarovar portico hotel. Com WWW. Host inn hotel. Com
4) Research Approaches
Focused group Survey Focused Group Research: “A focused group research is to gather six to ten people who are invited to spend few hours with a skilled moderator to discuss about project.” In this report we have done the focus group research. Hear we were met to the star hotels consultant to discuss about the project report.
Questionnaire:“Questionnaire is a form consists of set of questions.” There are two types of Questionnaire that is close ended & open ended. In close ended Questionnaire respondent has to answer from given alternatives & in open ended Questionnaire they can give answer in their own state of manner. For our project we have framed a questionnaire comprising of open questions.
a. Sample b. Sample Unit c. Sample Size d. Sample Procedure
Sample: “Sample is a segment of the population selected for research to represent the population as a whole.” In our report the sample is star hotel in Ahmadabad. Sample Unit: “Sample Unit means who is to be surveyed? We have done the survey on 2 star hotel, 3star hotel, 4 star hotel, 5 star hotel & we met the consultant of this hotel Sample Size: “Sample Size means how many people should be surveyed?” We have surveyed 5 hotels in Ahmadabad
Neelkanth Sahara 2 star hotel Neelkanth paradise 3 star hotel Host inn hotel 2 star hotel Ginger hotel 3 star hotel Sarovar portico hotel 4 star hotel Taj hotel 5 star hotel. Sampling Procedure: - “Sampling procedure means how should the respondent be chosen.” There are two types of sampling procedure. Probability Non probability On the Probability bases sample, where each element of population has given equal chance of getting selected. In our report we are not going survey according to the probability methods On the Non-Probability bases sample, where each element of population has not given equal chance of getting selected. In our report we have done survey according to the non-probability methods. In Non Probability we have done the survey according to the convenience from hotel consultant for example we have visited le-meridian but we didn’t got good response so we have not included that hotel in our report.
Personal interview: Here interviewer asks face to face questions to respondents. It takes two forms, individual & group interviewing. Individual interview involve talking with people in their homes or offices, on the street, or in shopping mall. Such interviewing is flexible. Trained interviewer can guide interviews, explain difficult question, and explore questions as the situation requires. Group interviewing consists of 6 to 10 people and an interviewer will ask question to a group as a whole. It is similar to focused group research. In our project we have done the personal interview. Name of respondent Name hotel Hotel taj of Name of person Mr. vergies curien Neelkanth Miss. Tulsi sahara mam Designations H.R. Manager Assintant general manager Star category 5 star hotel 3 star hotel
Neelkanth paradise Hotel host inn Sarovar portico Ginger hotel
Mr. Harsant shah Mr. parikshit Mr. rishove halder Mr. kaushal
Front office manager Side partner Training manager G.A.M.
3 star hotel 2 star hotel 4 star hotel 3 star hotel
The main advantage of personal interview is that we can get reliable information. The main disadvantage of personal interview is that, it is very time consuming and costly.
Chapter-1-overview of hotel industry
Overview of 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. Many international hotels including Sheraton, Hyatt, Radisson, Meridien, Four Seasons Regent, and Marriott International are already established in the Indian markets and are still expanding. Nowadays the travel and tourism industry is also included in hospitality sector. The boom in travel and tourism has led to the further development of hospitality industry.
1.1 Sector out look
hotel industry largely depend upon the foreign tourist arrivals further classified into business travelers (around 65% of the total foreign tourists) and leisure travelers. The following figures show that business as well as the leisure travelers (both domestic and international) formed major Clientele for hotel in 2007. Global travel increased by 6% in 2007 compared with 2006, crossing tourism forecasts for the fourth year in succession. Among the various regions, the Middle East registered the highest growth in arrival of international tourists with 46 million
tourists compared with 41 million in 2006, a growth of 12.2%.The opening up of the aviation industry in India has resulted in exciting opportunities for the hotel industry. Foreign tourist arrival to India have been growing at a 14 % over the past 5 years. However this has dropped to low single digits in the early part of H2FY09. at the same time, supply additions of premium segment hotel rooms are expected to grow at 16 per cent. This is expected to have a dampening effect on occupancy rates. The supply surplus in 2009-10 and 2010-11 is expected to pull down average occupancy rates from around 75 per cent in 2006-07 to 60 per cent in 2010-11. And significant increase in average room rate (ARR) The major factors contributing to this growth include stable economy & political condition, booming service industry, FDI inflow, infrastructure development, emphasis on tourism by the central as well as state governments and tax rationalization initiatives to bring down the tax rates in line with the international levels. 1.2Future: The number of tourists visiting India is estimated to touch the figure of 4.4 million. With this huge figure, India is fast becoming the hottest tourist destination in the region. The visitors include business travelers, leisure travelers and persons of Indian origin with foreign passports. Growth is expected to continue over the next few years. It is being predicted that India may achieve an average growth of 12% per annum in tourism for many years to come. Apart from international tourists, the domestic tourist market, including
business and leisure travelers, is also flourishing. This market is estimated at around 300 millions tourists per year. The industry also expects a boom in spiritual and medical tourism in the domestic sector at a growth rate of 10% to 15% over the next few years. Growth in tourism will definitely lead to a boom in hotels and restaurants. Though there is a shortage of rooms at present, it is going to be over soon enough, as top international players are heading towards India to establish themselves here. A steady growth of about 10% in new hotel projects is expected for the next few years.
1.3 Trends in Hospitality Sector Trends that will shape the future of hospitality sector are: 1.LowCostCarriers 2.BudgetHotels 3.ServiceApartments 4.Technology 5.LoyaltyTravel 1. Low cost carriers: Travelers in general are more price sensitive to airfare than they are to hotel room rates. Often a low airfare will stimulate demand for travel even if hotel prices are increasing. LCCs are
a good option for business travelers, as they have advantages like low costs, more options and connectivity. 2. Budget hotels: More than 50 per cent of occupancy of a majority of hotels comes from the business travel segment. The average room rate (ARR) realized from business travelers is normally higher than from leisure travelers. Heightened demand and the healthy occupancy rates have resulted in an increase in the number of budget hotels. Some of the new players entering into this category of hotels include hometel, kamfotel, courtyard by Marriott, country inns & suites, ibis & Fairfield inn. 3. Service apartments: The concept of service apartments, though a recent
phenomenon in India, is an established global concept. Villas in Spain, flats in the UK and apartment complexes in the US have all created a viable market for those who want more than just a room in a hotel. Service apartments are the latest trend in accommodation, offering the comfort and convenience of a home without the hassles of having to maintain or look after it. Ideally suited for medium-to-long staying guests, service apartments are a natural choice for corporate employees or expatriates relocating to a particular city, non-resident Indians visiting the country for long spells and foreigners visiting city for long duration. 4. Technology:
Travel and technology have become inseparable. Technology is making its own advances with high-tech video conferencing facilities, web cameras and virtual reality mode of conferencing. On-line bookings, e-ticketing, Wi-Fi Internet connectivity, easy access to information, etc. are just a few areas where technology has compeletely changed the way we travel. 5. Loyalty travel: `Today, airline-credit card company tie-ups have brought a whole range of benefits to the travelers. These include insurance cover, upgrades, free tickets, access to executive lounges, and a host of other goodies. The top players in hospitality sector include the following: 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 ITD hotels
Chapter-2-Hotel industry in India
Hotel Industry in India Hotel Industry in India has witnessed tremendous boom in recent years. Hotel Industry is inextricably linked to the tourism industry and the growth in the Indian tourism industry has fuelled the growth of Indian hotel industry. 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. 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. In recent years government has taken several steps to boost travel & tourism which have benefited hotel industry in India. These include the abolishment of the inland air travel tax of 15%; reduction in excise duty on aviation turbine fuel to 8%; and removal of a number of restrictions on outbound chartered flights, including those relating to frequency and size of aircraft. The government's recent decision to treat convention centres as part of core infrastructure, allowing the government to provide critical funding for the large capital investment that may be required has also fuelled the demand for hotel room. The opening up of the aviation industry in India has exciting opportunities for hotel industry as it relies on airlines to transport 80% of international arrivals. The government's
decision to substantially upgrade 28 regional airports in smaller towns and privatization & expansion of Delhi and Mumbai airport will improve the business prospects of hotel industry in India. Substantial investments in tourism infrastructure are essential for Indian hotel industry to achieve its potential. The upgrading of national highways connecting various parts of India has opened new avenues for the development of budget hotels in India. Taking advantage of this opportunity Tata group and another hotel chain called 'Homotel' have entered this business segment. Hotel Industry in India currently has supply of 110,000 rooms and there is a shortage of 150,000 rooms fueling hotel room rates across India. According to estimates demand is going to exceed supply by at least 100% over the next 2 years. Five-star hotels in metro cities allot same room, more than once a day to different guests, receiving almost 24-hour rates from both guests against 6-8 hours usage. With demand-supply disparity, hotel rates in India are likely to rise by 25% annually and occupancy by 80%, over the next two years. This will affect the competitiveness of India as a cost-effective tourist destination. To overcome, this shortage Indian hotel industry is adding about 60,000 quality rooms, currently in different stages of planning and development, which should be ready by 2012. Hotel Industry in India is also set to get a fillip with Delhi hosting 2010 Commonwealth Games. Government has approved 300 hotel projects, nearly half of which are in the luxury range. The future scenario of Indian hotel industry looks
extremely rosy. It is expected that the budget and mid-market hotel segment will witness huge growth and expansion while the luxury segment will continue to perform extremely well over the next few years.
2.1 Some of the main features of the Indian hotel industry include the following.
1) Industry is more depend on metro city 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. 2) ARR & occupancy rate 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.
3) Foreign visitors India is an ideal destination for tourists. Approximately 4.4 million tourists visit India every year. Thus the growth prospects are very high. 4) Multinational hotel In the hotel sector, a number of multinationals have strengthened their presence. Players like Four Seasons are also likely to enter the Indian market in the near future. Moreover, Indian hotel chains are also expanding internationally. A combination of all these factors could result in a strong emergence of budget hotels, which could potentially lower the cost of travel and related cost.
2.2 The industry can be classified into four segments:
5 Stars and 5 Stars Deluxe. These are mainly situated in the business districts of metro cities and cater to business travelers and foreign tourists. These are considered to be very expensive. These account for about 30% of the industry.
Category Five star & five deluxe Four star Three star Two star Un classified Heritage hotel
3) Budget Hotels:
Percent age 30 % 10 % 27 % 12 % 19 % 2%
These are characterized by less capital expenditure and greater affordability and include running palaces, hotels castles, in forts,
hunting lodges, etc.
Budget hotels cater mainly to domestic travelers who favor reasonably priced accommodations with limited luxury. These are characterized by special seasonal offers and good services
These are low-priced motels spread throughout the country. A low-pricing policy is their only selling point. This segment accounts for about 19 % of the industry
30% 25% 20% 15% 10% 5% 0% Percentage
Five star & five star deluxe Four star Three star Two star Unclassified Heritage hotel
2.3 Growth in hotel industry in India The hospitality boom in India is led not only by the buoyancy in the Indian economy, but also by the supply-demand imbalance that currently exists in most cities. Our focus is extensively on the quantum and classification of new hotels being developed in major cities over the next five years. For each city we have presented the number of new hotels under various stages of development, their market orientation and suggested the active development ratio."
The services sector showed a healthy growth of 11.2 per cent in 2007 as compared to 9.8 per cent in 2006 benefiting from the availability of skilled labour. Trade, hotels, transport and communication continued to develop at an accelerated pace recording a growth of 13.0 per cent during 2007 as against 10.4 per cent in 2006. Occupancy levels: Occupancy levels at hotels catering to business travelers have dropped 5% to 10% since the end of January. On a year on year basis, occupancy levels have remained flat. The major dip in the occupancy levels was seen in the IT hubs, Bangalore and Hyderabad. Major expenditure-cutting exercises by information technology sector companies, hurt by the rupee appreciation, have begun to impact the IT hospitality segments. Also, new supply had come up in these regions, which further affected the occupancy levels. However, destinations like Mumbai, Delhi, and Goa witnessed stable occupancies on account of lower supply. Though the tourist destinations witnessed higher occupancies, rising airfare and higher room rates may hit the leisure tourist segment going forward.
Occupancy (%) City FY07 FY08
North Mumbai South Mumbai Delhi Bangalore Chennai Kolkatta Goa Hyderabad [Source: - equity master research]
69 76 75 74 73 75 70 71
68 76 74 70 71 75 70 69
2.4 Scenario of hotel industry:-
India boasts of the world's highest mountains, miles of coastline with excellent beaches, tropical forests and wildlife, adventure tourism, desert safari, lagoon backwaters, ancient monuments and World Heritage Sites, forts and palaces, and of course, the Taj Mahal. The Indian tourism and hospitality industry has thus emerged as one of the key sectors driving the country's growth. The tourism sector is thriving, owing to a huge surge in both business and leisure travel by foreign and domestic tourists. The boom in India's tourism industry and the surge in tourist inflow to the country have percolated to other associated sectors like hospitality. The revenues for the Indian hotel and restaurant industry in the year 2006-07 exceeded US$ 118.85 million, an increase of nearly 22 per cent over the previous year. The industry is poised for rapid growth and is projected to be well worth over US$ 158.49 million by the year 2010. And with the continuing surge in tourist inflow, this sector is likely to offer tremendous opportunity for investors. For example, while the estimated number of required hotel rooms is around 240,000, the current availability is just 90,000 rooms - leaving a shortfall of 150,000 rooms to be provided. India's hospitality sector is expected to see an estimated US$ 11.41 billion in the next two years, and around 40 international hotel brands by 2011, according to a report by Ma Foi Management Consultants. Moreover, the sector is expected to provide over 400,000 jobs. Along with these large-scale expansion plans, international hotel asset management companies are also likely to enter India. Several global hotel chains see immense investment
opportunities in the sector with global chains like Hilton, Marriott International, Berggruen Hotels, and Cabana Hotels, Premier Travel Inn (PTI), InterContinental Hotels group and Hampshire amongst others have announced major investment plans in India with others likely to follow suit.
Latest Trends Hotels are no longer satisfied with the plain-vanilla room concept but are now getting ready for alternate hospitality formats such as residential hotels, destination resorts, condo hotels, vacation ownership and private residents' club. Four Seasons is developing a destination resort in
Puthenkayal, Kerala, which will have 75 villas and also 20 branded, luxury private residences. The resort will be operational by 2012. Nearly 11 per cent of the hotel demand in the country is from long stay guests. The Leela Group is looking at tapping this market. Its property in Gurgaon will have 90 apartments called 'The Residence' aimed at the long stay guests. India's largest real estate player, DLF, is building India's first residential hotel in Goa with the Hilton Group. DLF plans to invest US$ 2 billion to have six hotels on a similar format in the next five years. 2.5 Expansion Plans
With India being on the global tourist map and more and more people coming to India for tourism or business, hotels are looking at expansion in a major way. The Taj Hotels Resorts and Palaces — in a joint venture with CC Africa, a leading safari operator and ecotourism company from Africa is opening two safari lodges in Madhya Pradesh at Panna and Kanha National Parks. It already has a safari lodge each at Bandhavgarh and Pench National Parks. Marriott, which manages six hotels in India at present, is looking at a steady growth in the number in the next four years. It expects to have 25 hotels by 2011 with room strength of 8,000–10,000. EIH, which owns the Oberoi and Trident group of hotels, is looking at opening 10 hotels in India and abroad in the next three years. These include a luxury Oberoi Hotel in Gurgaon to be opened in 2009, a 320-room Trident hotel at the Bangalore International Airport to be opened in 2010, and two hotels to be opened in Hyderabad in 2010. Hotels in Hyderabad are on an expansion spree and a whooping 4,000 rooms will be added in the next couple of years. Around 20 major properties including that of Park Hyatt, Trident, Marriott, Leela and Taj among others will effectively double the current capacity of 4,000 rooms across all types of hotels.
2.6 International Recognition India's booming tourism sector but has not only witnessed
accolades with its increasing appeal as the leading global tourist destination. The government has been instrumental in making tourism a priority sector. Its efforts have borne fruits with a series of international recognition and awards.
India has been elected to head the UN World Tourism Organization (UNWTO), the highest policy making world tourism body represented by 150 countries. The world's leading travel and tourism journal, Conde Nast Traveler, has ranked India as the 'numero uno' travel destination in the world. India was adjudged Asia's leading destination at the regional World Travel Awards (WTA). India's Taj Mahal continues to figure in the Seven Wonders of the World. Bangalore-based Leela Palace Kempinski was voted the favourite business hotel in the world in a Readers' Choice Awards by Conde Nast Traveler in 2007. India bagged the World's leading Destination Marketing Award for the Incredible India campaign.
Chapter -3- segmentation of hotel industry
Companies mentioned Asian hotel limited, EIH limited, Hotel leela venture, Indian Hotels company limited, Indian Tourism Department, royal Orchid Hotel LTD, Taj Hotels, and Resorts Limited, Jaypee Hotels LTD, ITC Hotels Limited. The hotel industry can be further categorized into three segments: hotels, restaurants and contract caterers. The hotels in India can be broadly classified into the following segments: 1.Star rated hotels 2.Heritage hotels 3.Budget hotels 4.Unclassified hotels 1) Star rated hotel These are mainly situated in the business districts of metro cities and cater to business travelers and foreign tourists. These are considered to be very expensive. They are built over an area of up to 18000 sq. meters. These account for about 30% of the industry. The star hotels are further classified into six segments.
a) Five star deluxe
f ) one star
b) Five star c) Four star d) Three star e) Two star
(a) Five Star Deluxe & Five Stars: These are restricted to the four metros and some major cities like Bangalore and Hyderabad. The customers of these hotels are mostly foreign business and leisure travelers, senior business executives and top government officials. services provided by five star hotel
Parking facilities Gymnasium Laundry Cleaning Service Swimming Pool Parking - Coach/Bus Parking / Car Park Restaurant(s) Tour Desk Wakeup Service Gymnasium Swimming Pool Parking / Car Park Tour Desk (b)Three Star & Four Star:
24 Hours Front Desk Baby Sitting Bar Business Centre Car Rental / Car Hire Cocktail Lounge Conference Facilities Currency Exchange Doctor Laundry Cleaning Service Parking - Coach/Bus Restaurant(s) Wakeup Service
These are located in all major cities as well as tourist destinations. Their customer group ranges from middle level business executives to leisure travelers Services provided by three star & four star hotel
24 Hours Front Desk Bar
Air Condition Coffee / Tea Making Facilities
Telephone / Direct Dial Currency Exchange Doctor Gymnasium Restaurant(s) Tour Desk (c) One Star & Two Star:
Business Centre Conference Facilities Front Desk Safe Deposit Box Laundry Cleaning Service Security Wakeup Service
These are located in major cities as well as in small city and other tourist destinations. Their customers include usually the domestic tourists. Services provided by one star & two star hotel.
Free Parking Accepts Credit Cards Doctor on call Travel Desk Tour Planner Money Exchange A/C and Non A/C Rooms Conference Hall Restaurant Bar/Lounge In house laundry / dry cleaning Complimentary newspaper in lobby (2) Heritage Hotels. These are characterized by lesser capital expenditure and affordability and include hotels running in palaces, castles, forts, hunting lodges etc. The heritage hotels are further classified as: Heritage classic a) Heritage grand b) Heritage Heritage Classic:
These include hotels built between 1920 and 1935. Heritage Grand: These include hotels built prior to 1920. Heritage: These include hotels built between 1935 and 1950.
(3) Budget Hotels: Budget hotels especially cater to domestic travelers who favor reasonably priced accommodations with limited luxury. These are characterized by special seasonal offers, low and good services. Services of budget hotel
AirCondition&non airconditionfacilities Railway picking facilities Laundry Cleaning Service Parking / Car Park Wakeup Service
Refrigerator Currency Exchange Newsstand Restaurant(s) Medical help
(4)Unclassified: These are low-priced hotels spread throughout the country. A low-pricing policy is their only selling point. It accounts for about 19 % of the industry.
5) RESTAURANTS These typically include fast food chains, ethnic restaurants, fine dining and coffee bars. The major players include Barista, Mc Donald’s, Ruby Tuesday, bercos, etc. 6) CONTRACT CATERING This includes any catering business unit that is formally not a part of the hotel industry but is closely allied to it. Some of the major players in this category include Sodexho, Compass Group,
3.1 How star is given to the hotel
The most popular hotel ratings are based on two companies Mobil which rates properties in Stars, and AAA which rates properties in Diamonds. Both of these companies publish travel guides and use their annual ratings of properties across the world to help members distinguish between low and high end properties. 1) One diamond These establishments typically appeal to the budget-minded traveller. They provide essential, no-frills accommodations. They meet the basic requirements pertaining to comfort, cleanliness, and hospitality.
2) Two diamond These establishments appeal to the traveller seeking more than the basic to accommodations. the overall There are modest design enhancements price. 3) Three diamond These establishments appeal to the traveller with physical attributes,
elements, and amenities of the facility typically at a moderate
comprehensive needs. Properties are multifaceted with a distinguished style, including marked upgrades in the quality of physical attributes, amenities, and level of comfort provided. 4) Four diamond These establishments are upscale in all areas. Accommodations are progressively more refined and stylish. The physical attributes reflect an obvious enhanced level of quality throughout. The fundamental hallmarks at this level include an extensive array of amenities combined with a high degree of hospitality, service, and attention to detail. 5) Five diamond These establishments reflect the characteristics of the ultimate in luxury and sophistication. Accommodations are first class. The physical attributes are extraordinary in every manner. The fundamental hallmarks at this level are to meticulously serve and exceed all guest expectations while maintaining an impeccable standard of excellence. Many personalized services
and amenities enhance an unmatched level of comfort. The following is based on personal experience: One thing to keep in mind is that a hotel can have everything it needs to be a 5 star or 5 diamond property but unless it has great customer service then it will never get past a 3 star rating! The hotels and properties that get a four star or 4 diamonds rating (or higher) excel in customer service. Now, the highest level of a rating is either 5 stars or 5 diamonds. The difference between a four diamond or star and a 5 rated hotel is AGAIN the level of customer service. At a 5 star/diamond property you are pretty much treated like royalty and well taken care of. For instance, things I remember from the AAA guidelines are that at a five star property you personally taken to your room by a host, they leave a gift (like chocolate or?) on your pillow, and you receive a personal note from management thanking you for your stay. Of course there is a lot more. There thing that based on the high level of customer service that is required of 5 star/diamond properties, the sizes of the hotels are generally small around 200 rooms or less. You want to put all of this into context lets use Las Vegas as an example. For the longest time (long before hotel ratings i.e. customer service became a factor) Caesars Palace and the Golden Nugget downtown were the most consistent 4 star AND 4 diamond properties. Their level of customer service was top notch. The only thing preventing them from getting a 5 star
rating was that they were limited by their sheer size and numerous rooms. For a long time, other properties found it very hard to go from a 3 rating to a 4 rating. Remember, the 3 to 4 rating is the division where customer service comes in. Properties such as the MGM Grand found this out. They got a 4 star rating one year by Mobil but were still rated by AAA as a three diamond property. The following year, Mobil ranked them back to a 3 star property
Chapter - 4- challenges to hotel industry
1. Shortage of skilled employees: One of the greatest challenges plaguing the hospitality industry is the unavailability of quality workforce in different skill levels. The hospitality industry has failed to retain good professionals. 2. Retaining quality workforce: Retention of the workforce through training and development in the hotel industry is a problem and attrition levels are too high. One of the reasons for this is unattractive wage packages. Though there is boom in the service sector, most of the hotel management graduates are joining. Other sector like retail and aviation. 3. Shortage of rooms: The hotel industry is facing heavy shortage of rooms. It is estimated that the current requirement is of 1, 50,000 rooms. Though the new investment plan would add 53,000 rooms by 2011, the shortage will still persist. 4. Intense competition and image of India: The industry is witnessing heightened competition with the arrival of new players, new products and new systems. The competition from neighboring countries and negative
perceptions about Indian tourism product constrains the growth of tourism. The image of India as a country overrun by poverty, political instability, safety concerns and diseases also harms the tourism industry.
5. Customer expectations: As India is emerging as a destination on the global travel map, expectations of customers are rising. The companies have to focus on Customer loyalty and repeat purchase. 6. Manual back-end: Though most reputed chains have IT enabled systems for property management, reservations, etc., almost all the data which actually make the company work are filled in manual log books or are Simply not tracked. 7. Human resource development: Some of the services required in the tourism and hotel industries are highly personalized, and no amount of automation can substitute for personal service providers. India is focusing more on white collar jobs than blue collar jobs. The shortage of blue collar employees will pose various threats to the industry.
Chapter- 5-government policy
Government policy To unlock the huge potential in this sector, the government has taken various initiatives for the development of this sector. Launch of Incredible India campaign to promote tourism both in domestic and international markets. Recognition of spare rooms available with various house owners by classifying these facilities as "Incredible India Bed and Breakfast Establishments"', under 'Gold' or 'Silver' category. A new category of visa, "Medical Visa" ('M'-Visa), has been introduced which can be given to foreign tourists coming into India for medical tourism. Ministry of Tourism has tied up with United Nations Development Programme (UNDP) to promote rural tourism.
5.1 Government support: (as per 2008 data) Till a few years ago, the Indian government had a total apathy towards promotion of tourism. In fact, the industry did not find a place in the government’s fund allocation. Things have, however, witnessed a change. The government seems to have realized the importance of tourism and is willing to spend towards the development of the industry. The ‘Incredible India’ campaign is a product of this realization. The focus on infrastructure, modernization of airports, open sky policy, development of new tourist destinations and circuits, more fund allocation towards tourism are some of the initiatives taken by the government to promote tourism. The Indian hotel industry stands to gain from this proactive ness shown by the government. Federation of Hotel & Restaurant Associations of India, often known by the acronym, FHRAI, is the Apex Body of the four Regional Associations representing the Hospitality Industry. FHRAI provides an interface between the Hospitality Industry, Political Leadership, Academics, International Associations and other Stake Holders. FHRAI is committed to promote and protect the interests of the Hospitality Industry by actively seeking better privileges and more concessions for the Industry. FHRAI members are always kept abreast with the latest trade information and trends, statistical analysis and reports on various topics that have a
direct impact on the Industry, government notifications and circulars. FHRAI helps the Hospitality Industry to grow, prosper and keep in pace with the developments in the International scenario. With more than 3300 members comprising of approximately 2052 hotels, 1016 restaurants, 150 associate members and the 4 regional associations, FHRAI is truly the voice of the Hospitality Industry that brings several million dollars to the exchequer and employs more than 15 million direct workers. Secure for the hotel industry its due place in India’s economy; project its role as a contributor to employment generation, and sustainable economic and social development; highlight its crucial role in the service to tourism industry as the largest net foreign exchange earner; help raise the standards of hoteliering and to build an image for this industry both within and outside the country.” 5.2 Step taken by hotel association of India to grow hotel industry Having established itself in 1996, with the objective of securing for the Hotel Industry its rightful place in the Indian Economy, Hotel Association of India in a short period of time has succeeded in creating a strong platform to voice the concerns and the aspirations of the Indian Hoteliers. In less than a decade of its existence, the Association has several notables to its credit. Some landmark achievements are enumerated as follows:
1. Export house status for tourism and hospitality industry
2. Tourism export promotion council.
3. SARRC Hotel Association established international code of conduct to govern relations between hoteliers, travel agents and tour operators
4. Legal 'first' for hotel industry.
5. Surveys on the impact of travel advisories in hospitality industry 6. Setting up of confederation of Indian travel and tourism industry
7. Making Indian hotels disabled friendly. 8. Fiscal benefits to the hospitality industry.
9. Re-structuring in hospitality business 10. World tourism day celebration. September 27 is recognized as the World Tourism Day. While all hotels celebrate it, 11. member service HAI provides various professional services to its member hotels. These services include but are not limited to:
Directory of Hotels - the first hospitality industry magazine
of its kind in India;
Hai directory of hotels
In the wake of global recession, the Federation of Hotel & Restaurant Associations of India (FHRAI) has advised its member hotels to slash the room tariffs by 15 to 20 per cent. This move will also portray India as a cheaper destination compared to other South-East Asian countries. The decision is expected to be announced at the World Travel Market (WTM) which is presently taking place in London. The decision was taken on the suggestion made by Sujit Banerjee, Secretary, Ministry of Tourism, and Government of India to FHRAI delegates at a meeting held in the first week of November to assess the impact of global meltdown in the tourism sector in India. FHRAI is in the process of sending a circular to the member hotels requesting them to slash the room tariffs by 15 to 20 per cent. Confirming the same, Dr Sunil Gulati, Honorary Secretary, FHRAI said, “The Ministry of Tourism is helping us in many ways and we should consider their suggestion in order to maintain a cordial relationship.
Chapter:- 6 Hotels in Ahmedabad
Ahmedabad, the city of Ahmed Shah (Medieval ruler of Gujarat), is known for its rich past and its association with the Mahatma (Great Soul), also known as Mohandas Karamchand Gandhi. The city offers the traveler a unique style of architecture, which is a blend of Hindu and Islamic styles (IndoSaracenic style of architecture). The monuments of Ahmedabad mainly date back to the 15th century. Ahmedabad has been known for its industry since medieval times. Presently it is famous for its textile mills and is often referred to as the 'Manchester of the East' 5star hotel taj residenc y ummed Holiday inn hotel 4star hotel Cama park plaza 3star hotel Hotel neelkant h 2star hotel Hotel ambassa dor Hotel host inn Busines s hotel Taj residenc y ummed Inder residenc y Budget hotel Hotel ambassad or Hotel kllassic gold
Comfort Hotel inn kllassic gold
Inder Sunset residenc y Lemerridie n Sarovar portico
Silver oak hotel &resort Hotel westend Hotel fortune landmark Hotel nest Hotel president Quality inn Rivera hotel
Silver oak hotel &resort Hotel fortune landmark Hotel host inn Hotel nest Quality inn Hotel president Rivera hotel Hotel neelkanth
Chapter:- 7 Up coming Hotels in Ahmedabad
The Grand, Ahmedabad The Grand Ahmedabad is a Greenfield project of Bharat Hotels which will open starting 2008-09. Set in the splendid historical city of Ahmedabad, the resort will offer 5 star luxury & comforts.
Hotel Radisson, Ahmedabad Radisson Hotel in Ahmedabad, which is due to open in May 2008. Radisson Hotel Ahmedabad will join a growing number of hotels in the Radisson portfolio across India Ista Hotels, Ahmedabad Ista Hotels is a hospitality brand owned by IHHR Hospitality Pvt. Ltd. Ista Hotels launched their first luxury Business City-Hotel and Spa in Bangalore in 2006. Courtyard Marriott , Ahmedabad Marriott International is a leading lodging company with more than 2,800 lodging properties in 68 countries and territories. Lemon Tree Hotel, Ahmedabad Ahmedabad, the bustling business and industrial capital of Gujarat is getting ready to change with the construction of a Lemon Tree Hotel in the central business district of Navrangpura.
Hotel Citymax, Ahmedabad After establishing its footprints in the Indian retail sector with Lifestyle, Max and Home Centre brands, Dubai-based Landmark Group is eyeing the hospitality pie.
Cambay Grand Hotel, Ahmedabad A five star deluxe hotel at Ahmedabad is at initial construction stage. The hotel will target the booming MICE market in Ahmedabad city. Ginger Hotel, Ahmedabad Ginger hotels plan to tap the niche markets and target customers, who were looking for a branded product at a viable price.
Chapter:- 8 Brief about Hotels
8.1 Brief about Taj Hotel in Ahmedabad
Taj Hotels, Resorts and Palaces, today a global hospitality chain with over 75 properties in over 60 locations, has been a steward of social responsibility since its founding in Mumbai, India, in 1903. As part of India’s premier business house, the Tata Group, Taj Hotels and its holding company, the Indian Hotel Company Co Ltd, are committed to serving its many local communities culture and by furthering education wildlife, and sound and skills training, particularly among rural populations; preserving Indian art, promoting sustainable, operations. environmentally
In an endeavour to reinstate its vision and efforts to boost sustainable tourism and integrate environment management in all business areas, Taj Hotels Resorts and Palaces presents EARTH (Environment Awareness & Renewal at Taj Hotels), a project which reiterates the conscious effort of one of Asia’s largest and finest group of hotels to commit to energy conservation and environmental management. EARTH has received certification from Green Globe, the only worldwide environmental certification program for travel and tourism.
About Green Globe Green Globe is the international benchmarking and certification programme for the travel and tourism industry based on the Agenda 21 principles for Sustainable Development endorsed by 182 Heads of State at the United Nations Rio Earth Summit in 1992. . Green Globe, is the only worldwide environmental certification program for travel and tourism with participants in more than 50 countries Green Globe is managed by EC3 Global, a subsidiary of the Sustainable Tourism Co-operative Research Centre. Taj hotel started in Ahmedabad in 2001. it is the 8 years old hotel in Ahmedabad. In India there are 67 hotels of taj. In taj Ahmedabad employee They have 170 employee. 1 G.M. 9 Accounting House Keeping Security G.M. (A.H.K.S.G.M.) 10 Top Level 15 middle level 135 are employee staff. Staff facility Canteen facility Lunch & dinner
Morning tea They deduct 5 Rs. Per day charge from the salary of
employee for the staff facility. Training mgr. is sumit goyal Employee Shift in taj hotel Morni ng Noon Night 6:30 2:30 2:30 10:30 10:30 6:30 Future plan of Taj hotel The Indian Hotels Company Ltd (IHCL), of the Tata Group will launch hotels in Vadodara, Ahmedabad, Rajkot, Surat and six other cities in Gujarat to cope with the ever-increasing demand in hospitality industry. Prabhat Pani, chief executive officer anddirector of Roots Corporation Ltd, a subsidiary of IHCL, said that one hotel has already been launched in Vadodara while another Ginger hotel will be opened in Ahmedabad followed by Surat and Rajkot. The 96-room hotel in the city is the 11th hotel that Ginger has added to its growing chain across the country which includes hotels in Bangalore, Pune, Haridwar, Bhubaneshwar, Mysore, Thiruvananthapuram, Puducherry. Durgapur, Nasik, Agartala and to to to
8.2 Brief About Ginger hotel
Gujarat's industrial city has a long and tenuous history behind it, making it an attractive destination for both business travellers and tourists. Ginger Ahmedabad is located 30 minutes from the airport and the railway station, right behind the famous Himalaya mall. There are a variety of hangouts nearby, with the Drive-In theatre being the most frequented. Ginger is just a five-minute drive from the SG (Sarkhej Gandhinagar) Highway, which houses other famous malls like Iskon, Gallop, and Fun Republic. Yet another attraction, the Vastrapur Lake, is only 5 minutes away from the hotel. With 94 well-furnished rooms, Ginger Ahmedabad will have all the special features of Smart Basics™ such as Smart space™,
Safe zone™, meeting and conference room, gymnasium and self check-in kiosk, geared to make your stay comfortable and pleasant. Ginger hotel was started on 15th November 2008. This hotel is also introduced by the TATA group. This is a three star hotel. This hotel is specially targeted to the business client people only. Ginger is tie-up with home inn hotel which is the china hotel. Ginger utility Ginger brings you accurate weather forecasts for two successive days for all our hotel destinations. And what's more, you can walkthrough the city's streets and look up hang-out and tourist spots with the new Google maps facility. value added services Taxi and traveller's van service Doctor on call Check-in, check-out 12 noon Security In keeping with our heightened security procedures we request you to provide your photo-identity proof while checking-in. Foreign nationals are required to present their Passport and valid Visa. Indian nationals can present any one of these, which is mandatory: Passport, Driving License, Voter ID card, PAN card or Credit / Debit / ATM card bearing the holder's photograph
Shifts in Ginger hotel Morning 7:00 to 11:00 General 9:00 to Afterno on Night 6:00 2:00 to 10:00 10:00 to 7:00 There are approximately 40 to 45 employee in the hotel Organization structure of Ginger hotel G.S.A. Assistant Officer
Things that make you go yum, yum!
Ginger has tied up with The Harbour Market, at Ginger Puducherry and Sayagi at ginger vadodara The Harbour Market at the square meal™ in Puducherry, a multi-cuisine restaurant by Mohanlal’s Taste Buds Restaurant, specialises in coastal cuisine. Sayaji’s Buffet Junction at the square meal™ in Vadodara, the only all-day buffet venue in the city, allows you to choose from an assortment of vegetarian and non-vegetarian dishes for breakfast, lunch, evening snacks and dinner. Future plan of ginger Currently in India there are 16 ginger hotels & they want to open open other 9 hotels in next coming future.
Ginger sees room for 10 more hotels Part of the USD 62 billion plan to invest around Tata Group Roots Corporation
Limited , which owns the “Ginger” brsnd of budget hitels Rs 100 crore in Gujarat over the next five years. The company is riding on the growing opportunities for budget hotels amidst current slowdown . “Gujarat has a lot of business travel happening in cities like Ahmedabad and Vadodara . Contrary to common perception, corporates don’t stop travel completely but cut down on cost and go for budget hotels . in such a scenario , our Ginger hotels have huge scop and therefore we plan to widen its reach in Gujarat,” said Prabhat pani , chief executive officer of Roots Corporation Limited . According to pani ,the company will be investing between Rs 10 crore and Rs 15 crore on an average on a Ginger hotel and plans to have such 10 hotels in Gujarat in the next five years . In its efforts to gain firstmover’s advantage in the organised budget hotels market , Roots Corporation Limited is planning more such Ginger hotels in cities like Surat,Rajkot and Jamnagar.
Having launched 16th hotel of the company in Ahmedabad and plans to add three more by the end of the financial year 2008-09. “We plan to tack the total number of hotels to 30 by 2010 . The idea to increase our footprint as much as possible by 2010 Games as will several be events place including in the commonwealth taking
country,” said pani. The cumulative investment on hotels by the company so far has brrn of around Rs 300 crore. With an average size of 100 rooms per hotel , Ginger hotels carry 3-star category and offers competitive rates of Rs 1000-2300 per room . “We ofer much better prices than our contemporaries like Hometel , Ibis and lemon Tree,” added pani .
8.3 Brief about Sarovar portico Hotel
quality 3 star hotel brands. The accent is clearly on a very high level of functionality. Portico hotels comprise a 24 hour world cuisine eatery, and a modern resto-bar, in addition to meetings and functions facilities of moderate capacities. Sarovar Portico hotels are clearly distinguished by superior levels of manpower training, with people competencies vastly superior to competition hotels. Sarovar Portico Hotels are currently present in Ahmadabad, Lonavala, Indore, Hyderabad, and Chennai.
development at Siliguri.
Future Openings Ahmedabad Park Plaza - Ahmedabad 111 Guest rooms and suites. Multi-Cuisine Restaurant. Meeting and Banquet Facilities Business Centre Laundry Health Club Wi-Fi Service
Indian hotel sector: SWOT analysis
According to recent estimates of the World Travel & Tourism Council (as of early 2005), Indian tourism demand will grow at 8.8% over the next ten years, which would place the country as the second most rapidly growing tourism market in the world. With the Indian hotel industry capturing the attention of the
opportunities and threats.
India’s rich culture heritage: With a historical backdrop of 5,000 years, India is one big package of culture and legend that never fails to captivate the imagination of the visitor. Along with
endless natural splendors like the mighty Himalayas, the vast Indo Gangetic Plains, lush tropical jungles and a long coastline. A visit to the country is a changing spectacle of religions, customs, festivals, sights and sounds. Demand–supply gap: Indian hotel industry is currently facing a mismatch between the demand and supply of rooms leading to higher room rates and occupancy levels. With 95,000 odd rooms in the country, the size of the hotel industry represents an abysmal figure for India's size and growth prospects. Though new capacities are expected to come in the next five years demand will outpace supply in the short to medium term. The table below highlights that, over the last 24 months, major cities in the country have witnessed impressive growth in average room rates, due to strong demand and not much addition to supply. ARRs: Average growth rate city Delhi FY02 FY03 FY04 FY05 2.3% 31.4 4.2% 5.7% % Source international HVS
Mumba 2.2% 28.7 i 11.2 15.2 % % % Bangal 3.7% 15.1 11.7 29.1 ore % % % Chenna 6.6% 5.4% 6.4% i 6.9% Goa 12.1 9.8% 18.4 8.2% % %
Government support: Till a few years ago, the Indian government had a total apathy towards promotion of tourism. In fact, the industry did not find a place in the government’s fund allocation. Things have, however, witnessed a change. The government seems to have realized the importance of tourism and is willing to spend towards the development of the industry. The ‘Incredible India’ campaign is a product of this realization. The focus on infrastructure, modernization of airports, open sky policy, development of new tourist destinations and circuits, more fund allocation towards tourism are some of the initiatives taken by the government to promote tourism. The Indian hotel industry stands to gain from this proactive ness shown by the government.
Poor support infrastructure: India is currently spending a miniscule amount compared with its needs, on infrastructure. China is spending seven times as much as India on infrastructure (excluding real estate) in absolute terms. In 2003, total capital spending on electricity, roads, airports, seaports and telecom was US$150 bn in China (10.6% of GDP) compared with US$21 bn in India (3.5% of GDP). However, over the past 2-3 years, the government has realized the importance of infrastructure and has focused on improving it.
Slow implementation The lack of adequate recognition for the tourism industry has been hampering its growth prospects. Whatever steps are being taken by the government are implemented at a slower pace.
Susceptible to political events The internal security scenario and social unrest also hamper the foreign tourist arrival rates.
Rising Income: While there has been much talk about record number of foreign tourist arrivals, very little has actually been said or done about domestic tourism, which, according to our estimates, has registered a 40% annual growth in the last three years and is currently estimated at 300 m travelers. Per capita income grew by an impressive 7.1% in 2005, while Gross Domestic Savings touched an all time high of 28%. Significantly, the present-day consumption boom in India has been influenced more by higher disposable income rather than lower savings. This is good news, as income induced spending is likely to sustain itself for a longer period. Higher disposable incomes are also expected to enhance the concept of traveling for leisure. Also, there has been an overall transformation in consumption pattern in the last five years. The increase in number of young
people, their rising aspiration levels, and an increase in their spending power has led to a change in the consumption pattern. There is a marked shift from spending on traditional categories like food and grocery, clothing and jewelry, to lifestyle categories such as leisure, and aspiration products and services. Open sky benefits: The opening up of the aviation industry in India brings exciting opportunities for the hotel industry (airlines transport around 80% of international tourists). Increased airline activity has stimulated demand and has helped to improve India's troubled infrastructure. Increased competition among airline companies will further lead to the development of new and improved services. Also the open skies policy has benefited both international and domestic travel. New business opportunities: We believe that, over the next three to five years, the biggest surge in accommodation demand is expected to come from commercial zones that are being developed in metro suburbs and secondary markets. Mixed-use development projects that include retail and commercial space have also gained momentum in the last 24 months and will continue to be an attractive option. This provides a unique opportunity for hospitality projects. Also the new concept, which is going to gain importance, is that of budget hotels (started by Indian Hotels – Ginger, the erstwhile Indione). Due to their inherent
nature of operation, associated costs and flexibility, budget hotels will be better suited to withstand the next economic downturn as and when it takes place.
Event risk: Dependency on foreign tourism can be a double-edged sword as travel decisions are based on global patterns and events that happen elsewhere can have serious impact the performance. Events like 9/11, SARS outbreak and Afghanistan and Iraq wars and the last was on 26th November terrorist attack on taj hotel Mumbai that event seriously effect eo the over all hotel industry. Have severely impacted the tourism industry in the past and the threat remains. Increasing competition: Global hospitality majors like the Four Seasons, Shangri-La and Aman Resorts are all making their entry into the Indian market. They are not the only ones who are turning their attention to India. The Hilton Group is deciding on a comeback and has tied up with the Oberoi Group. Two other groups - the Carlson Group and the Marriott chain are furiously hunting for new hotels in India's top cities. This will increase the competition for the existing Indian hotel majors. Increasing transportation facility:
It means suppose customer have only work of one or two hour in other city or country than he can come because there increasing the transportation facility. Earlier the transportation facility is not so much develop that is why customer have stay there in the hotel but now a day if customer want come than he can come by any time because of there are many airways and railway facility develop so it the threats for hotel industry.
Fluctuations in international tourist arrivals The total dependency on foreign tourists can be risky, as there are wide fluctuations in international tourism. Domestic tourism needs to be given equal importance and measures should be taken to promote it.
9.1 SWOT Analysis of visited hotels
SWOT Analysis of Taj Hotel Strength: Strong brand image: Taj is the property of TATA so it has a
good brang image in the mind of customer.
High quality service: In taj hotel they are providing
different types of room service, swimming pool service, they are providing laundry service, wi-fi internet service etc.
Motivated employee: taj hotel have skill & soft spoken
Good after sales service: taj hotel in not down the regular
customers name & birth date or marriage date of that customer & they wish to the customer & they provide discount to the customer. Weakness:
Far from the city: this hotel is very far from the city so it
the weakness for this hotel.
They have not their own canteen department so it the
weakness for the hotel. Opportunity:
Growth of population in Ahmedabad
Growing of consumer income Govt. policy is to wards the hotel industry.
Threats Strong competition in the hotel industry because there are so many hotel in the Ahmedabad. Threats of terrorism in the taj hotel because of in Mumbai taj hotel attack of 11/26 it effect to specially to the taj hotel. SWOT Analysis of Ginger Hotel Strength: Strong brand image of parent company company of ginger hotel is TATA group. Motivated employee in the ginger hotel they have good & soft spoken employee over there. Flexible mgt structure in ginger hotel the mgt structure so simple & so easy that is why if hotel want to change it as per situation than they can change the mgt. structure. Weakness: Narrow product line they have just one type of room & one gym. & one conference hall, restaurant so it has so narrow product line. They have not their own canteen dept. Newly started In corner area Opportunity: Growing income of people because parents
Govt. policy is to ward the hotel industry. Growth of population in Ahmedabad Threats: Strong competition Threats of terrorism SWOT Analysis of Neelkanth group of Hotel Strength: High quality product Good after sales service Excellent product line Motivated employee in the neelkanth hotel they have good & soft spoken employee over there. Weakness: Not so much reach brand image Look of some hotel is not good like neelkanth palace, neelkanth sahara etc. In neelkanth sahara they have not a kitchen dept. Opportunity: Growing income of people Govt. policy is to ward the hotel industry. Growth of population in Ahmedabad They have there 8 hotel in Ahmedabad.
Threats: Strong competition Threats of terrorism
SWOT analysis of Sarovar Portico Hotel Strength: India’s fourth largest hotel chain High quality product Good after sales service Excellent product line Motivated employee in the Sarovar portico hotel they have good & soft spoken employee over there. Weakness: This hotel is in very slum area Look of hotel is not so much attractive Opportunity: Growing income of people Govt. policy is to ward the hotel industry. Growth of population in Ahmedabad Threats: Strong competition
Threats of terrorism
Chapter –10 – PEST Analysis of Hotel Industry
(1) Political factor: Govt. Policy affects the business in very deep. The arrival of low-cost airlines and associated pries wars have been given domestic tourist a host of option. Government focus a tourism industry e.g.”ATITHI DEVO BHAV” opening up opportunity for the hotel industry. More over the government decision to substantially upgrade 28 Regional airports in smaller tour and privatization and expansion of Delhi and Mumbai airport industry in India. The upgrading of national highways connecting various parts of India has opened new avenues for the development of budget hotel.
In the govt of India’s” Incredible India’ destination campaign have also helped the growth of domestic and international tourism and consequently the hotel industry. Removal of number of restriction in excise on outbound charted fight including those relating to frequency and size of aircraft. The govt decision to treat convention centres as port of core infrastructure has also fuelled the demand of hotel room. For past few years the boom in India’s hospitality industry has been fuelled by favourable political situation. In union budget 2007-08, the govt has also proposed a 5year holiday from income tax for, two, three or four star hotel as well as convention centre with seating capacity of more than 3,000 provided they be completed and begin operation in the adjacent district of faridadaed, gurgour, Ghaziabad or gautam buddhanagar during period of april1, 2007 to march 31 2010. “The planning commission” high level group op services sector has pegged the room shortage in the country at 1, 50,000 rooms by 2010 out of which 1, 00,000 more than it budgeted in category. Investment of US $11 bn over the next 2 year is expected to be earmarked for hotel industry in India.
In economical effect industry has to check out that what the GDP of the industry is. The GDP of the hotel industry is contributed to 13.21% in 2007 The hotel industry in India is going through an interesting phase one of the major reason for the increasing in demand for hotel room in the country seen till recently is the beam in the overall economy and high graph in shelter like information technology. Now slowdown fear is now hovering on the sector. In India form medium to long term the fundamental are very perishing. The continued economic or with increased in test in the India market and improved international access. The leat of global economy melt down is being telt by upcoming hotel project in India some of these venture are like to be delayed or put a hold. The hotel industry in India going though on interesting phase one of the major reasons for the increase in demand for hotel room in the country seen will recently boom in overall economy and high in sector, like information technology, telecom, retail and real estate. A flowish economy helped boost demand for the industry to encourage the tourism sector the govt is planning to propose a conditional 10 year tax holiday for tourism.
(3) Socio-cultural factor:
Socio cultural factor includes two parts (a) Socio (b)Culture If any industry are show to wards the society than you can understand that society are developing the culture. If you understand the socio factor than you can understand the cultural factor.
(a) Socio factor: It include the demographical factor like
India is the second largest population country of the world more than 110 crore population is there. So because of high population it is the positive effect to wards the hotel industry because as population are more hotel industry get more traffic & also occupancy rate is increase at the time of marriage season. Male-female ratio: In India male ratio is more than the female ratio so it affects the marriage. And if there are only male people in the society than it effect the marriage and if marriage is not there than it is negative affect to wards the hotel industry. And if there are female are not there than how male enjoy the life with out life partner so it affect the
hotel industry so you have to check out the male & female ratio in the society.
Domination of male & female: -
In India male are taking maximum decision than the female but in European country the decision is taken by the female so also it affects the hotel because if female want to go for some enjoyment in outside with her life partner & if life partner is not ready than how she go outside so it affects the hotel industry. Literacy level: Literacy level is law in India compare to western country but literacy level is high compare to neighbor country like shri-lanka, Pakistan, Bangladesh, Nepal, etc. so if education level is high than students are go to study in other state & or in other country also other country’s students come to India so they have stay in hotel so it the positive effects to the hotel industry so industry have to show that what is the literacy level in country. Income level: Now a days the income of a people increasing day by day so if income will increase than people want more enjoyment so it is the positive affect to the hotel industry. Average age of society: -
In India there are teenagers & youngster are more than the alder’s people & in America the mature people are high than the youngster so in India teenagers & youngster people want more enjoyment by going in hotel & picnic etc so it is the positive affects to the hotel industry. Occupation are developing: Now a day in any country the business are developing at a very faster rate so business people have go for do some business deal in outside country or any other state so in other country or outside state they have to stay in hotels so it the positive affect to the hotel industry. For example:Recent vibrant Gujarat was over at that time many corporate people are came into ahmedabad at that time the occupancy rate of every hotels are 100%. So it is positive affects to the hotel industry. (b) Cultural factor: Culture means it is the set of Norms, Value of ritual, Philosophy of country is the highest important to any industry. If you are not know the culture of any country than you can not do the business in that country For example: When Mc Donald newly came in to the India at that time they sale the meat of cow all the Indian people were angry
because in Indian culture cow is a holiest animal of the country Neelkanth hotel also they are not providing any non vegetarian food because they believe in swaminarayan religion so before launching any product every industry have to know the culture of that country. In Gujarat also most of the people want Gujarati thali so that you have to keep in mind. In Italian country suppose any hotel want to launch the product than they can not launch cone product because they believe that cone is only food for peacock.
(c) Language: Language is also play an important role in any country. Because whatever you communicate in your language it may be some different meaning in other country. For example:Suppose any people want to open hotel in any country they have to the language of that country. Because he has to work with other countries employee, customer so that is also known by the any industry people. Only verbal communication is not important but nonverbal communication is also important For example:-
Suppose in America you open your hotel but if you communicate with the person or employee of that country with eye to eye than he feel that you threaten from him. But in Japan if want to communicate with eye to eye than he feel that you are insulting that people. So language is very important in any industry.
(4) Technological factor: Technological factors include following factor. (a) Status of technology: Status of technology includes Advance technology Moderated technology Suitable infrastructure for technology Hear hotel industry have to check out that what technology they are using right now whether it is advance, moderated, or outdated technology. In hotel industry they are using moderated technology For example: -
In any in any of the hotel customer are checked when he enter into the premises of hotel by electronic checker machine. In neelkanth paradise they are using kitchen order ticket for serving the customer. In every hotel they are keep the C.C. T.V. Camera for watching the activity in the campus, many hotel in India they have adopted the technology of automatic car wash. In taj hotel there are swimming pool is clean automatically. So some how in Indian hotel industry have adopted the technology but still they are far behind so we can call that as moderated technology.
(b) Pace of technology: Pace of technology means how fast technology is changing in the country. In the country like America, china, Japan, India the technology is taking change at very fast rate as compare to china, Japan, & American technology the Indian is not fast growing as in that country so it is the backward point to hotel industry in India. (c) Cost of technology: -
Cost of technology means what is the cost of adopting technology. For example:In hotel industry if hotel want to adopt new technology like underground swimming pool, underground hotel in the sea. Technology of automatic cleaning of room so it is very costly in India so it is backward point to the hotel industry in India. (d) Suitable infrastructure for technology: Suitable infrastructure for technology means in this govt. support & physical infrastructure availability is very important. In India govt. support is good for hotel industry like build the building and next coming years the more hotels also will come so govt. support is in favor of hotel industry. And also India have high no. of professional like M.B.A. so there are a good infrastructure support by the govt. to the Potential entrants hotel industry.
RIVALRY Chapter-11-porters 5AMONG analysis of force EXISTING FIRMS
Entry barriers new entry
(1) Threats of new entry:Hotel industry the growing industry so growing industry often faces the threats of new entry. Many new hotels are coming in the near future so there are very tough competitions in this industry. Govt. policy:In many cases govt. policy & regulation are important for entry barriers. Govt. policy is liberal to wards the hotel industry few years ago govt. restricted for foreign companies to enter into a India but now a days the govt. become so liberal towards the entry of foreign companies. Govt. has also give the appointment to unitech lines up to develop 35 hotels in next 7 years. So it is the good news towards the hotel industry. Cost disadvantages independent of scale:It means that whatever cost advantage is enjoying by already established hotel that cost advantage can not enjoy by the next coming hotels. For example: - already establish hotel have learning or experience, favorable raw materials, advertisement expenses, favorable location etc. In hotel industry cost of capital is so high& the return is law so it is the negative point towards the hotel industry. Product differentiation:-
It means that how your service is differing by brand image, customer loyalty & product attributes etc.
For example:Taj is having good brand image in the mind of customer & also tata have new introduced a ginger hotel so that ginger hotel not face so much problem to enter in the market but some other new brand hotel want to come than they have to spend lots of cost to attract customer in to this competitive world. Monopoly element:Monopoly in terms of product, technology, effective control over raw materiel supplier, distribution channels etc. in hotel industry now a days there are no monopoly power enjoyed by any hotels because there are so many hotel in Ahmedabad, some how taj hotel have some monopoly in 5 star segment in Ahmedabad but there are also other 5 star hotel in Ahmedabad like holyday inn hotel so now a days there are no monopoly in hotel industry. Capital requirement:To open the hotel lots of capital is required & in hotel there are high risk & law return situation so that is why to a new hotel is very difficult task.
(2) Rivalry among existing firm:State of growth of technology:Hotel industry is growing round about 8% growth so growth of hotel industry is high. Fixed & storage cost:In terms of hotel industry the fixed cost is very high like cost of buildings, salary of regular employee & executives. But in case of storage cost in service industry service can not be stored except like grain etc but vegetable can not be stored long time so in case of hotel industry there are less storage cost. Product or service standardization & switching cost:In hotel service if service is standard & qualitative than customer Go to that kind of hotel for example:-
Ginger & neelkanth is the 3 star hotels but only difference is that ginger is only targeting business client people & hotel neelkanth is targeting both business & normal customer. Service is almost same in both hotels in neelkanth hotel gym. Is not there but in ginger hotel gym. Is there but room rate of ginger is high than the hotel neelkanth so because of high price customer can divert to the neelkanth hotel. Diverse competitors:Rivalry becomes more complex & unpredictable when competitors are very diverse in there strategy, origins, personalities, relationship to their parents etc.
For example:There are many competitors in the market there are many hotels in Ahmedabad so to know the strategy of the hotels is very difficult because every hotel have different-different strategy to attract the customer. For example: - taj hotels parent company is ‘TATA’ and it has a good brand image in the mind of customer so it is very difficult to fight against taj for other hotel. Switching cost:In some cases a barrier to entry is created key switching cost. It means that customer is not loyal to wards only one
hotel there are many hotel. And also taste & preferences of the customer will change now & than for example :-in Sarovar portico hotel swimming pool facility is not there & customer go to the Sarovar and he want swimming pool but swimming pool is not there than customer next time go to the taj hotel so Sarovar portico hotel lost the customer. And for Sarovar hotel cost of new ancillary equipment is very high.
(3) Threats of substitutes:Threats of substitute means there are also some other small hotel than the star rated hotel like Resorts Low price Dharmshalas Short term paying guest house In short term paying guest house hear some customer don’t want to stay for the longer time period so customer go to this kind of guest house at very cheapest price. But in star rated hotel customer have to pay rate of full day even he want to stay for an hour so this guest house is best option for the customer so this is a threats for star rated hotel.
(4) Bargaining power of buyers:In star rated hotel customer can not bargain for price but they shows the same rated hotel price like hotel
ginger & hotel neelkanth in hotel ginger rate is high compare to neelkanth & facility are also mostly same so customer more prefer to the hotel neelkanth. Important determinants of the buyer power are following The extent of standardization or differentiation of the product:Now a day customer are so literate & more aware about price & quality of the service it means that customer shows both standard service at less price so it shows the high bargaining power of customer. Switching cost:Switching cost means customer can switch to go the hotel in which he can not get standard service so it also shows the high bargaining power of customer.
Extent of buyer’s information:Now a days customer is became so much aware about information given in the internet & newspapers so they go in that hotel which charge less price and good service. So in this also customers bargaining power is high.
(5) Bargaining power of suppliers:Importance of concentration & domination in the supplier industry:It means that that in hotel industry suppose there are only one supplier than bargaining power of supplier is high. For example :- In vegetable there are lots of farmer in the market so hotel can purchase from any one, in grain also there are many supplier of grains so again there are bargain power of the supplier is low. In milk there are only Amul is selling the milk so hotel have to purchase from Amul only. Importance of buyer to the supplier:It means that in eye of supplier the hotel is very important. Suppose one hotel purchase the 30 to 40% of selling of the supplier & if hotel switch to purchase from that supplier than that supplier lost very important buyers because 30 to 40% selling is go to that hotel at that time bargaining power of the supplier is low. Importance of product to the buyer:-
It means that hear product of supplier is important for hotel if hotel switch to purchase that product from that supplier than hotel will loss heavily because only that suppliers product customer want. For example:For taj hotel havemore ice-cream company is very important because at one time when Bill Clinton came to the taj at that time he demand the havemore ice-cream so have more is very important for the taj hotel so hear bargaining power of buyer is low & bargain power of supplier is high. Substitutability of product:If there is substitute product of havemore at same quality & at fewer prices than taj can stop to purchase havemore so hear bargain power of supplier will be low & bargain power of buyers will be high.
Chapter -12-After Mumbai attack security position in ahmedabad hotels.
Taj residency ummed Security is very tight. Armed anti-terrorist squad (ATS) police personnel in addition to private security guard deployed. No one can enter without identity proof . Le-meridien Car are checking trolley at the main entrance with inverted mirror trolleys. A physical check of dickey and bonnet is also carried out but bags are not checking and people entering the hotel. They have CCTV camera to monitor movement inside the premises.
General manager have given strict instruction to their staff keep an eye on people carrying any suspicious-looking bulky bags. Fortune landmark Bags are checking at the gate, but there are no physical frisking. There are no lady cops to check female guest. The pride Cars are checking at the main gate.
They are strict at time of frisking physically but
not checking bags of the customer. No female security guard to check female guest. They have purchase certain security measures. They are going to install CCTVs, mirror trolleys and door metal detectors soon. The Grand bhagvati.
One armed security guard and a metal detector is deployed
Bags are checking thoroughly before allowing guest inside. They already have CCTVs in place and have tight security. If somebody refuse to check we explain that it’s for their own security, being vigilant is the only way to stay safe.
The Metro pole Zero security, though they have two watchman at the entrance, but not bother to check the guest. They are not even checking bulky bag of the guest. They are planning to install metal detector at the entrance.
12.1 Risk factor to hotels in Ahmedabad
Terrorists were in casual dress, carried heavy bags on there backs and automatic rifles in there hands. Modus operand was same-open indiscriminate fire on target without warning. Security personnel are keep guessing on the exact no of terrorist and their intent.
Operation lasted all night where police personnel also loss their lives. Mostly terrorists are performing Wednesday for attack and 26 date of any month. Fewer escape routes for people inside making task more difficult for police.
(Source:-TOI 10th nov ’08)
Chapter-13 7 P’S OF SERVICE MARKETING
Chapter -13.1- PRODUCT
"Product is anything which is offered to customer for attention, acquisition and consumption which will satisfy the wants and
needs of the consumer." In hotel their main product is rooms, food & basic facilities. We can classify this product in two types. 1) 2) Tangible Product Intangible Product
1) Tangible:Tangible product means that which we can see or touch. Which is last longer time period? In hotel there is room, gymnasium, swimming pool, towel, bad, soap, shampoo this all things are tangible goods. Which are provided by the hotels? Tangible goods normally consumed in one or few uses. These goods are consumed quickly & purchased frequently. have their main product is room &food & basic facilities. 2) Intangible:In the intangible goods, it we can not see, touch but we can feel it. This is not for last longer .services is also intangible in nature .In hotel services are welcome, communication, respect this all product is intangible. Services are intangible insapreble, variable &perishable products. Hotel
Environment affect to the hotels in India:(1) Arrival of more foreigners: How environment affect to the hotel industries .which type of environment India have & on which way hotel industries will increase in India .India is developing country. In India the places o for tour is now day increases. So foreign people may come in big strength .so hotel industries will grow up. They get maximum foreign consumer. So environment is affect with the industries. (2) Different-different type of customer: Consumer views are always changed or fluctuate. They have their own view about hotel facilities. Which type of customers & which type of facilities they get? So they different views about hotel industries. Higher class consumer wants higher class facilities from the hotel. (3) Income is increasing: In India hotel industries will increase way because India is developing country .It’s economy will increasing people have increasing income? In India, people’s income is increasing. So development is in positive way. (4) More youngster: In India ‘the ratio of youngster is highest in the world .their income is also increasing so economy is also
growing up so country also grow so hotel industries is also grow up in India.
(5) DINKS (Double Income No Kids) In India there is concept of “DINKS” means that double income no kids. It means increase in income of people but they don’t waste money or they don’t spend more in the expenses .they believe in saving or increase their income. (6) India people is also believe in life compensate: They have their own view for the income. So there will be growth in economy .In this way hotel has positive way to increase the services or services quality. (7) More corporate are coming up: In India marketing is vary increasing way. Incorporate world many people have connected. They have corporate crowd about the industries.
Level of the product
(1) Basic product :Basic product means basic needs of consumer which is satisfied by the product .In hotel basic product is rooms, food, cleaning ness. The fundamental services that the customers are really buying. Hotel guest is buying `rest &sleep’. The second level, marketer has to give core benefits into basic product. Thus a hotel room includes bed, bathroom, towel, desk, dresser, and closet. This all product is basic product which must be required every customer expected basic product in hotel. For example: In Sarovar portico Their basic product is 6 types of room’s i.e. They are providing food which is their own. Standard,
superior, deluxe, studio suit, executive suit, ground suit.
They have 69 rooms & suits .In every room clean bed, single &double bed as per customer choice, fresh towels, working lamps, and desk. This all are basic product is given by the Sarovar portico. In Neelkanth hotel Their basic product is 5 types of rooms. That is A/C deluxe, suite, non A/C suite a/c Maharaja, A/C honeymoon they are provide food facility which in some hotel they gave in like in neelkanth Sahara there are food facility is on contract base. They have total 250 rooms with a/c &non a/c. In every room consider clean & bad wase fresh towel, purity water, and desk. This all basic product they have. In Taj Hotel In this hotel there basic product room’s types is 5types rooms are available That is pool suite, executive, deluxe, pool view & garden room .This is main basic types of rooms. They are providing food facilities which are excellent facilities. It is their own. They have 91 rooms in this hotel their basic product is clean bad, fresh towel, shampoo, soup, body lotion, mineral water this all facilities are given by this hotel. In Ginger hotel In ginger hotel they have only one type of room that is standard room. They have 93 rooms. In host inn
In this hotel the basic product is executive room, deluxe room, super deluxe room, they have 36 rooms in that hotel. (2) Expected Product:-
Expected product means a set of attributes, features that customer except when they get or purchase the product. Hotel guests expect a clean bed, fresh towel, working lamps, & a relative degree of quite because most hotels can meet this minimum expectation. The traveller normally will settle for whichever hotel is most convenient or least expensive. In expected product that will analyse that which type of facilities &services are expected by customer in that product.
For example:In neelkanth They are providing basic facilities or which the customer has expected according to that the hotel is providing services. They are providing clean rooms, hospitality services, food &also fresh water they are also providing them a peaceful atmosphere for the consumer. They have their own restaurant also that patang. The all expected product is available by the all the branches of Neelkanth Groups Of hotels.
In Sarovar portico They are give them a clean bad, room, facilities, food or ma other product which customer needs. They are also providing reading, Desk lamp, fresh water, clean bathroom with soap shampoo etc. In Taj hotel They are provide customer a better facility like fresh food , clean room , mineral water also basic product which is expected by the customer .They are provide best facility to the customer they have their own food or kitchen so every customer have their own choice & view. In Ginger hotel They provide service for only the business client people they provide good food as per the choice of customer veg. & non veg. both. They have not there own kitchen. They have gym. Facility, conference hall facility In host inn hotel They also provide good & clean room, mineral water facility, food facility, they have there own kitchen. (3)Augmented Augmented Product:product is a product which exceeds the more & more customer &
customer .Expectation to attract
to create on augmented product company should involve into customer helps to prepare & provide superior customer experience.
Product augmentation leads the marketer to look at the user’s total consumption system. The way the user performs the tasks of setting & using products & related services. Each augmentation add cost augmented benefits soon become expected benefits. In hotel guests expect a remote control television set. This means competitors will have to search for still other feachers & benefits. As companies revise the price of their augmenter product some competitors offer a “stripped –down” .Version at a much lower price. Thus alongside the growth of fine hotels like emergence of lower cost hotel & motels .catering to clients who simply wants the basic product.
The augmented product of hotels is as follows.
For example: Sarovar portico hotel
It has their augmented product is travel desk, pick up & drop facility, pink services, Airport transfers Shalimar facilities in banquet & conference hall facilities. This all facilities are augmented facilities for the hotel .All customer want augmented product & they have to pay entry charges for entering in the hotel. Banquet & conference: Venue Shamian a Mandap Durbar – 1 Durbar – 2 Theatre seating 500 175 100 90 ‘U’ shape 120 60 50 30 Class room 150 80 70 50 Reception/cock tails 1000 500 350 250
Taj hotel They have their augmented product is pick up facilities from railway station &airport .They also provide vehicle for the tourist. Banquet hall &conference room for meeting, parking facilities. They have three types of banquet hall which are gokul, dwarka, & Mathura hall. This all the augmented product, they have to change &the customer vary attract from this type of product. In Ginger hotel
They have pick-up facility, good parking facility, they provide bath kits to the customer, they provide LCD T.V. facility, the square meal restaurant, laundry facility etc Neelkanth group hotel They have their augmented product is good staff, television facilities, telephone, banquet hall &conference room also provided by them. They are providing also water, towel, soap, shampoo, bathroom freshener, etc. This is augmented product is to attract the customer. In host inn hotel They have television facility, banquet hall facility of 160 people capacity, they also providing bath kits to the customer. (4) Potential product:Potential product is a product which is combines all the possible up gradation &transformation into the product might launch in future. In this companies search for new ways to satisfy the customer with new variety of product. Users create their own cereal blend from ingredients that meet their specific testes, health needs; one woman receive her cereal packages with cornflukes, and slice almonds, bread &fruits etc. Hotel remembers guest preferences and assigned rooms with those preferences in the mind .they empower to make employees to take decisions. &provide training to tackle
with customers problems and provide the best solution to them. They review the services delivery process to imagine everything that would go wrong and then take preventive steps.
Sarovar portico It has their own potential product like multycuisine
restaurant, meeting hall &banquet hall. They are doing outdoor catering & indoor also. They have fitness centre & doctor facilities in the hotel. They are changing entrance facilities .This facilities are vary alternative to customer. Customer is satisfied with their higher facility of the facilities. They have one travel agency that is coxed &king.
Riverview view Restaurant
Neelkanth hotel In this hotel they are provide entire ordinary things is conference hall ,travel home service ,E-mail ,net service , computer, torrent pharmaceutical company for Neelkanth for that their rate is high. They give the assurance of safety to customer. They provide to the customer for outdoor catering, they also provide laundry facility to the customer etc. This all types of potential Neelkanth group of hotel. In Taj hotel They are provide a potential product is coffee shop, Narmada restaurant for dinner, banquet hall, indoor catering, parking product are provided by the
areas, swimming pool, health centre, beauty parlour for ladies & gents, garden facility this all are potential potential facility which is given by the hotels. In Ginger hotel They provide mini fridge, wi-fi net service, conference hall facility, soft spoken employee etc. product is provided by the hotel Taj. Customer has much choice for the
In host inn hotel They provide the service of wifi internet facility, laundry facility, doctor on call service, safe deposit lockers, money exchange facility etc
They have two travel agency IMG: -Imaginative Group of travel. It is international company ITP: - it is national level
'RELISH' The Multi Cuisine Restaurant offering delicious gourmets delight Serving Indian, Punjabi, and Continental & Chinese delicacies.
Product Mix Decisions of Hotels
Product mix:The set of all lines and items that and particulars sellers for sale. Four important dimensions: - Width, length, Depth, and consistency. (1) Product mix width It refers to the total no of different product line the company carries. (2) Product mix length It refers to the total no of items the company carries within its product line. Product Line Length:Neelkanth hotel Rooms A/C & non A/C room A/C honey moon A/C deluxe A/C executive A/C suite Maharaja suite Conference hall 1 in paradise 1 in neelkanth inn 1 in neelkanth pansicura 1 in neelkanth blues Restaurant In paradise In other they have contract base
Taj hotel Rooms Entertainme Conference nt product hall Restaurant
Executive suite Deluxe suite Pool view Garden view Ginger hotel Rooms Standard room
1 swimming pool 1 gymnasium
1 conference 1 restaurant hall “narmada” Coffee shop “Jacaranda”
Entertainment product 1 conference hall 1 gymnasium
Restaurant 1 restaurant “ The Square meal”
Sarovar portico hotel Rooms Standard room Deluxe suite Superior room Studio suite Executive suite Grand suite Host inn hotel Rooms Executive room Deluxe room Superior deluxe room room Conference hall/banque t hall Durbar 1 Durbar-2 Restaurant One restaurant Entertainme Conference nt product hall/banque t hall 1 swimming Shamiana pool 1 gymnasium Manadp Durbar 1 Durbar-2 Restaurant Riverview the multicuisine
(3) Product mix depth
It refers to the no of version offered of each product in the lines. Product depth:Neelkanth hotel Rooms A/C & non A/C room A/C honey moon A/C deluxe A/C executive A/C suite Maharaja suite Ginger hotel Rooms Standard room Restaurant Conference hall Taj hotel Rooms Deluxe Executive room Pool view room Garden view room Restaurant Coffee shop Gymnasium Swimming pool Conference hall Sarovar portico hotel Rooms Standard room Deluxe suite Superior room No. 02 02 33 54 01 01 01 01 01 No. 93 1 1 No. 65 33 43 45 43 21
No. 02 03 20
Studio suite Executive suite Grand suite Restaurant Banquet hall Host inn hotel Rooms Executive room Deluxe room Superior deluxe room room Conference hall Restaurant (4) Consistencies No. 12 15 09 01 01
18 10 16 01 02
Consistency of product mix referees to how closely related The various product lines are in a use, production requirement, channel or some way. Product consistency refers that the product is perform same function &distribution channel is also same. For example In all this hotel room is performing same function that is give comfort level to the customer.
Chapter –13.2 - Pricing
Introduction In the determine the price of the product marketing it is very easy to decide price because in product marketing marketer can decide the cost but in case of service marketing marketer can not decide the price easily. So in hotel industry it is difficult for a hotel to exercise differential pricing except for certain specific purposes. These may typically be differentials in tariffs and prices during the peak and lean season; group rates; contracts rates for airline crew; special conference rates or special concession to attract customer ; tourism year syndrome, etc. however’ by and large ‘hotel pricing tends to follow or conform to pricing standards applicable to the particular city area or resort ; to competitive
hotels; to the amount of traffic being generated in the hotel location; tourist location; international or national conference venue; and soon. Nevertheless, hotel pricing also suffers from a degree of lack of flexibility, although to a lesser extent than that of the hotel product. The depreciated valuation of the hotel property, its financial management efficiencies, credit policies and other factor, specially cost of empty room nights on fixed overheads, also have a bearing on tariffs and Manu prices.
Tariff Of hotels Tariff rate of neelkanth group of hotel Neelkanth Sahara
Category Non a/c room a/c deluxe room Royal deluxe room Honey moon suite room
Maharaja suite room Neelkanth paradise
Category Non a/c room Deluxe room Prime suite room Extra bed Tariff rate of taj hotel
Category Executive room Deluxe suite room Pool view Garden view They are paying 6% luxurious tax. They are paying sales tax 15%. Tariff rate of Sarovar portico hotel
Category Standard room Superior room Deluxe room `studio suite Executive suite Grand suite
They are paying 6 % luxurious tax On food vat in 4 %
Tariff of host inn hotel
Category Executive room Deluxe room Super deluxe room Extra bed
They rare paying tax 4% unto 2000Rs. And above 2000Rs. 6%. Tariff of Ginger hotel
Category Standard room
Approaches of prices
(1) Cost based pricing Hear the price is decided according to the cost of hotel. There are two types of cost Variable cost & fixed cost Total cost =fixed cost + variable cost
Fixed cost in the hotel o Cost of buildings o Salary of employee & executive o Room maintenance o Infrastructural facility cost Variable cost in hotel o Doctor service o Car cost o Raw material cost (2) Competition based cost It means as per the competition they charge the rates. There are many hotels in Ahmedabad so there is a very tough competition in the hotel industry so hear in hotel industry according to the competition they charge the rate of rooms. (3) Value based pricing It means what value of your hotel in the mind of customer. According to that base they decide the price. For example Hotel taj It has a good brand image in the mind of customer so they higher the high price. Ginger hotel
This hotel is a newly started hotel this is a 3 star hotel & ginger is the introduced by the TaTa group so it has a brand image of tata. So they are charge the high price than neelkanth hotel. Hotel Sarovar portico It is the four star category property & it has less brand image as compare to the hotel taj that is why they higher less rate than the hotel taj. Hotel neelkanth It is the 2 or 3 star property hotel & it has a law brand image as compare to hotel taj & hotel Sarovar portico that is why they higher less rate compare to other hotel. Hotel host inn It is a 2 star property hotel so it higher less rate as compare to other hotel.
There are two parts of pricing
(1) Monetary aspects
Monetary aspect is related with the quality of the service monetary aspect is related with (a) Price quality relationship Price & quality you can judge in the product but in the service marketing marketer can not judge the price & quality Why customer can not judge because Hotel service is highly variable Because when customer first time go to any hotel taj, Sarovar, or any hotel He get good service but when he go to another time at that time he may not get good service as compare to earlier service because service is not provided by the machine but it is provided by the employee. For example:Sarovar portico hotel At one time they people give chips of fruit to the customer at that time there is a chips of orange in the dish. But when another time customer is go to the hotel at that time he not get the chips of orange so it is varies of service. Tailor made package will involve differential price:-
Tailor made service means according to the exact need of customer.
For example: In Sarovar portico Hotel they have banquet hall Of mandup up to 500 people capacity Durbar 1 up to 350 people capacity Durbar 2 up to 250 people capacity They have different type of room according to the requirement of customer. In Taj hotel They also provide service of conference hall, coffee bar, marriage party, small business meet service. Etc. In Ginger hotel They have conference hall up to 14 people capacity. They have one restaurant etc. In Neelkanth hotel They also provide service of conference hall, marriage party, and birthday party. In Host inn hotel They provide “grand durbar” 1 & 2 , state of the art banquet/conference/meeting hall for the business % contemporary world to meet their needs for holding meetings, seminars, workshop, get-together &reception.
Mechanization of services Mechanization means technology of the services. Neelkanth, Taj, Ginger, Sarovar, & host inn they have some how do the mechanization of service. Like internet facility, car wash facility, automatic clean of swimming pool in taj hotel, computer through booking facility, computer through ordering facility from the room by customer. In ginger hotel they have one automatic machine in that when customer make a coin than chocolates or whatever demand by customer that will come. (2) Non monatory aspects Certain cost is non monetary cost. Comfort level to the the customer Comfort level to the customer means according to the requirement of customer they provide room. For example A/c room, non a/c room, deluxe suite room, maharaja suite room, honey moon suit room, garden view room. So
hear according to the requirement of customer they provide comfort level to the customer.
Physical effort for providing services :Hear customer is come to your hotel but if hotel people are not putting physical effort to provide service to the customer than customer will not satisfy. For example:If hotel people don’t give one glass of water to the customer & do not response to the customer’s problem than customer will not satisfy. Psychological It means some times customer except some thing extra in the room. For example:Taj hotel provide o Pool view room o Garden View room
Sarovar portico hotel provide o Studio suite room o Grand suite room Neelkanth hotel provide o a/c room, non a/c room o maharaja suite room Suppose customer want garden view room & he go to Sarovar portico hotel than he can not get that type of room from Sarovar portico hotel. So for garden view room he has to go taj hotel.
Chapter -13.3 - Place
INTRODUCTION Services are inseparable. We can not touch it, we can not test it etc. services should be provided where customer are located. In the hotel industry there many different services to provide to the customer like pick up, same day laundry facility, doctor on call, parking, internet, spa, swimming pool, gym, etc. In the services there are three different parts: 1)Distribution channel 2)Location 3)Focus (1) Distribution channel
When distribution channel are proper than services are good & better to provide the customer. So that customer will be satisfied with services. (A) Intensive distribution Intensive distribution means creating maximum service outlets in the different place which is not applicable in the hotel. But in neelkanth hotel there are 8 hotels in Ahmedabad. Neelkanth Sahara, neelkanth inn, neelkanth paradise, neelkanth palace, neelkanth panshikura, neelkanth crystal, neelkanth bliss, which provide different service to the customer. Tata have also introduce two hotel in Ahmedabad first is taj hotel & second is ginger hotel. (b) Limited outlets Limited outlet means there are limited location selected for hotel. Like that host inn there is only one hotel in Ahmedabad in khanpur. (2) Service distribution strategy In the hotel industry there is different service distribution strategy in different hotel. Service distribution strategy means how to provide service to the customer &which type of customer. There is different part in service distribution strategy.
(A) Multi site strategy Multi site strategy means standardize operation &
procedure & main objective of cost efficiency. (B) Multi services strategy In multi service strategy we can define that different sight &different service & different offer to the regular customer. They use multi service strategy for better segmentation. IN NEELKANTH SAHARA Comfort for customer
Well Furnished Rooms Non A/C., A/C. Rooms, A/C Deluxe
Category and prime suites beautiful design with modern amenities.
refrigerator in all prime suite
Direct dialing on Telephone for Local calls and STD on
Color TV in each room With In-House Video Movies, Satellite
Programmes. Round the clock room service. Parking faculties.
All major credit cards accepted. Airport & Railway Station Pick-up & Drop with Nominal Fare
On customer call service
Air, Rly. & travel booking facilities. Taxi & sights-seating arrangement on request. Same day laundry services. Doctor on call services. Postal & courier services.
IN NEELKANTH PARADISE Comfort for customer
Well Furnished Rooms Non A/C., A/C Deluxe Category and
prime suite beautiful designed with modern amenities.
Specially arranged spacious seeking arrangement and
refrigerator in all prime suites.
Direct dialing on Telephone for Local calls and STD on
Color TV in each room With In-House Video Movies, Satellite
Programmes. Parking facility. All major credit cards accepted.
Airport & Railway Station Pick-up & Drop with Nominal Fare
On your call service
Air, Rly. & travel booking facilities. Taxi & Sight-seeing
arrangements on request. Same day laundry service. Doctor on call.
Postal & Courier Services.
IN SAROVER PORTICO Parking facility Daily laundry facility Pick up facility Wine provided to the customer Wifai, television, sofa, water, etc. Garden provided to the customer for celebrate birthday party, Direct dialing from room 24 hours room service Doctor on call IN HOST INN Direct dialing from room 24 hours room service Same day laundry service Travel desk All major credit cards accepted Doctor on call Money exchange facility Safe deposit locker marriage.
Wifai zone TAJ HOTEL Television Wi-fi internet facility King or queen size beds Study table Safe deposit locker Bath kits in bathroom Direct dialing facility A/C control to regulate room temperature Voice mail Electronic safe Safe deposit locker on request GINGER HOTEL Smart sleep Tea/coffee maker LCD T.V. Mini fridge
The Square Mealtm Restaurant
Give ‘N’ Take Laundry Wi-Fi /net zone Meeting room (C) Multi segment strategy Multi segment strategy means different customer to provide to different services that means different segment
wise provided service to the customer. This strategy use for new target customer only.
(3) Location Location is the main part of the hotel industry. Location is the heart of the whole hotel industry. If location is wrong than hotel is not running very well. All profit of the hotel is depending upon the location. In the hotel main problem is that the cost of the hotel. Taj residency ummed International airport circle, Hansol, Ahmedabad. Hotel Host inn Opp, Le Meridian, khanpur, Ahemedabad-380001.India Sarovar portico Bhawn’’s college road, Ahmedabad. Neelkanth Sahara 2nd floor iscon square,
Opp, kothawala flat, paldi, Ahmedabad. Neelkanth Paradise Ellisbridge cross road, Opp, town hall, Ellisbridge, Ahmedabad.
Ginger hotel Behind Himalaya mall, Drive in road, Ahmedabad 380015. (4) Focus In the service marketing we saw that which need of the customer& wants of the customer & than service provided to the customer. In the hotel industry main focus in the service provided to the customer. They saw service keeping in view the needs & wants of specific group or specific customer in a specific location. Important consideration in location. (1) Access: Access means near to any railway station or near to air port or nears to bus station.
For example: Neelkanth hotel Hotel Neelkanth Sahara Airport (13k.m.) Railway Station (5 k.m.) Private Luxury Bus Station on Walking Distance. Hotel Neelkanth Paradise Airport (13k.m.) Railway Station (5 k.m.) Private Luxury Bus Station on Walking Distance. Sarovar portico hotel This hotel is 3 k.m. from the railway station 8 k.m. from the airports. Host inn hotel 3 k.m. from the railway station 8 k.m. from the airports. Taj hotel 1 k.m. from the airport. 10 k.m. from the railway station. Ginger hotel 12 k.m. from air port. 12 k.m. from railway station.
(2) Parking facility: There should be proper parking facility in the hotel if there is no proper parking facility & there is no security of vehicle than customer not comes again to your hotel Parking facility in neelkanth paradise: -12 car capacity Parking facility in neelkanth Sahara: -7 to 8 car Parking facility in Sarovar portico: - 15 to 17 car Taj hotel: - 25 to 30 car In Ginger hotel:- 10 to 12 car (3) Traffic problem: If there are traffic problem to reach to the hotel than customer feel dissatisfaction. For example:-
Hotel neelkanth is situated at the area of paldi where the traffic so much that customer can face lot of problem of reach over there from the airports. Sarovar portico hotel is in khanpur area where customer can easily reach because it is very near to the railway station & some how it is far from the airport but there is not so much traffic face by the customer. Host inn also situated at the khanpur. Taj hotel is situated very near to the air port & far from the railway station so customer of airport can not face the problem to reach the taj hotel but the customer of railway station face the problem of traffic. So hotel taj can loss the customer of railway station. Ginger hotel is also very long from the airport railway station but it is in the area of west zone & it the near to the S.G. Highway & from Himalaya mall customer can go directly to the hotel. (5) Surrounding:In neelkanth paradise & in neelkanth Sahara there are look of building is good but the surrounding area is very crowdie & there are also very slum area surrounding this hotel so surrounding area of this hotel is not good. Surrounding area of taj hotel is beautiful there are very charm environment.
Surrounding area of ginger is also not good because in behind of the hotel there are very slum area is there. In Sarovar portico & host in hotel also the surrounding area is not good. (6) Tite competition:Tite competition means there are many hotels in that area. In taj hotel area there many competitors are there in paldi area also there are many hotels are there in khanpur area also there are many hotels.
Advantages & disadvantages to the hotels
Expansion opportunity Near to airport
Far from the city Many competitors
Green environment Ginger hotel near to the Far from the air himalaya mall, port. C.G. Road west zone area In the corner place. Area of the hotel. Very slum area.
near to air port & Many competitors. railway station Sarovar portico Area of the hotel. Very slum area. near to air port & Many competitors. railway station Sarovar portico hotel Near to railway Very crowdie area station Business area of Many competitors. paldi
Perhaps this element of the hotel marketing mix is most important as it is directly responsible for bringing customers to the hotel. Hotel marketing communications are either direct or indirect. The direct communication is through personal selling, advertising, sales promotion and direct mail. Appropriate messages are conveyed to those who directly influence decision to buy the hotel product. Personnel selling of the hotel product are effective when long-term relationship between the hotel and the customer is sought. It is also required where the level of business per customer is likely to be significant. Indirect marketing communications for hotels include public relations and publicity, both of which may and may not form a part of the hotel’s marketing communication programme but may function independently. The major elements of the hotel communication mix are mass media advertising, direct mail, sales promotion, public relation, and publicity.
Promotion elements (1) Advertisement : There is a big difference in advertisement of product and service because product are tangible in nature so customer can judge the product and he can touch the product but in case of service or hotel customer can not judge product until he use so hotel industry is depend upon following factor like Message of advertising:Message in terms of punch line, in terms of logo, in term of jingle etc. For example:In taj hotel symbol is
In taj hotel they give advertisement in Hoarding They tie-up with Pepsi As a brand they do the advertisement In internet Some time they give advertisement in the news paper They do not provide any magazine As a brand they do the advertisement
In Ginger hotel logo
They also providing virtual tour in the internet that how hotel look. They also give advertising in the TV & hoarding. Punch line of ginger hotel “Stay for less. Shop for more.” In neelkanth hotel They have two agency for advertisement • Ford development • Challenge agency Yellow pages Websites By telephone Hoardings The neelkanth hotel is not providing any virtual tour so if customer want see how that hotel look in the internet than
customer can not see that so they may loss the customer because of this tangible clues.
In Sarovar portico
Hoardings Website By telephone In host inn
Banner Venus agency Just dial In kem chho serial at 7 p.m. (2) sales promotion : -
It means to promote sales for the shorter time period. Again it is different from product because the reason of parishability and intangibility. In product marketing you give the physical product but in case of service marketing you can not give product in terms of physical.
For example:In all four hotels they do not give any discount in the pick season but they are giving discount in only lean season. The discount is only for shorter time period after lean season they do not provide any discount to the customer. October to march there is a peak season in the hotel industry because in that days there are many festivals comes like diwali, navratri, Christmas etc. (3) personnel selling : personnel selling is very important factor in the service marketing because in case of product customer can himself go and judge the product but in case of hotel product until the use of product you can not judge because hotel person can not go to customer and tell the customer that use our product it is better than other so hear who are selling the product that employee should be trained better.
For example:In case of hotel the room boy and employee are serve the customer so that employee should be very polite in language and he can solve the all the problem of customer so employee should be properly trained. (4) Direct marketing : Direct marketing means service are provide direct to the customer there are no any advertisement, personnel selling, sales promotion etc. but hear company give browser to the customer , with the help of internet this direct marketing is growing very rapidly.
For example:These all hotel provide the browser to the customer and they also have the internet booking facility. (5) publicity & public relation : It means it is the paid form of product exposer to the target customer. Publicity includes social activity, press conference. For example:These all four hotels are not doing any social activity but they only list down the regular customers name & they wish
them on their birthday or marriage day and offer them attractive discount.
There are two parts in the promotion
(1) Marketing communication : -
(a) Pre-purchase stage: perception of the consumer regarding price : -
associated with purchase. Consumer have certain perception some promotional activities more directly add the value.
For example:Taj hotel The perception of consumer towards taj is high because it is well known brand in India as well in ahmedabad also finally it is very costly in nature as compare to sarovar portico hotel , neelkanth hotel & host inn hotel. So high class people perception is more on taj hotel but middle class & lower class people perception is more on neelkanth hotel & sarovar portico hotel. In ginger hotel They have only targeted to the business client people so business client people have more perception about ginger hotel.
Performance : Performance is depends upon the service. Performance is important factor because how you attract more customers because it is highly depend on your performance weather service is good or not good.
For example:Performance of taj hotel is better than sarovar portico hotel & neelkanth hotel & host inn hotel. And the performance of ginger hotel is better than the neelkanth. The established services and image increases the
consumer consumption confidence & reduces consumer’s risk of buying services like taj group. But neelkanth & sarovar portico hotel is the economic hotel so they have opportunity.
Psychological consequences: -
Psychological consequences are also important because it affects the service also. Now a day the terrarium attack is effects the whole hotel industry especially to taj group of hotel. For example:` There is a threat of consumer to visit taj hotel so other hotel like neelkanth and sarovar portico can take the opportunity to attract customer of taj hotel.
(b) Communication and consumption stage
The medium of communication will based on the decision on how to create most favorable awareness amongst the target audience The role of communication mix within the promotion and communication plan comprise following steps. Identify the target audience Determine & setting objectives Message development for right communication effects. Selection of communication mix. The role of provider will make the consumer perception clear. For example:Hotel sarovar portico they are targeted most business working people Hotel taj is targeting high income group people & executives. Ginger hotel is targeting only business client people. Hotel neelkanth & host inn hotel is targeting middle class people & lower class people. (c) Post communication stage: -
Promotion post purchase ensures continuous satisfaction and retention of the customer. Performance of services is matches with customer’s perception.
For example:In each visited hotel they people told us that every time we get the complain about service and they try to improve the quality of service, and try to improve the employee’s skill to provide best service. Compare to other hotel perception about taj hotel service is good in the mind of customer. (2) service communication: (a) Provide tangible clues: Marketer can make consumer perceive the service as tangible with the help of tangible elements within the product surround and use them to provide clues. For example:In host inn
In Sarovar portico hotel
In neelkanth hotel
Single room Taj hotel
(b) Focus on employee development: It means that in hotel the employee are the people who serve the customer so employee should be proper trained so they can serve better to the customer.
Encourage word of mouth communication employee It means that if the language of employee is very polite to the problem of customer than customer will more satisfy and they also tell to the other that service of this hotel is good. For example:In neelkanth hotel the manager of that hotel is learn to his employee that do not angry in any situation occur with customer. In taj hotel also they encourage people to serve better to the customer by giving training & some extra benefit as we can see that in taj Mumbai when there were terrarisum attack the employee of that hotel are with the customer & save the most of customer with own life make in danger.
(c) Focus on benefit: -
Hotel are mainly target to the high level people , tourist, and business working people because they are more using the service of hotel. For example:In taj hotel they are more targeted to the high income people and V.I.P. people, business people, N.R.I. people & this hotel is very near to the airport. In neelkanth they more target to the middle level people & this hotel is more targeting Indian people hear more N.R.I. is not come. In Sarovar portico it is targeting more business people & middle level people & N.R.I. people but there are less customer of N.R.I. are coming. In host inn they are more targeting the middle level & Indian customer. (d) Build image Marketer use advertising to build favorable image for services and especially for the corporate behind the services. A significant benefit of the advertising is its role in influencing and motivates employees of services employers also. For example:The building an image by taj hotel by using this image many corporate companies are tie-up with taj hotel like Pepsi.
Chapter -13.5- People/internal marketing
What is internal marketing? “All the techniques that are used for external customer with an end goal in mind to create a satisfied employee. This is called internal marketing.” Introduction Generally in the product marketing customer are divorced from factories. There may be a difference of space & time. Intermediation is created by marketing function & distribution system, the customer are rarely comes in contact with the marketer. This happens only in exception cases when customers are involve in marketing activity. But in case of hotel industry or any other service industry customer have to come in contact with the service provider. This physical proximity and interaction is often the key to the service experience. A service firm may possess all necessary
competencies and resources to provide the right kind of service, but in the absence of appropriate interpersonal experience, the customer would develop negative perception of overall service quality. It is therefore, critical that a great amount of attention is paid to personnel dimension of the service business.
Importance of people in service marketing The importance people or participants of people are very important in both service and product with out people any service or product organization can not produce any thing. But importance of people is more in service than the product because people perform their task and operation in factories insulted from direct customer influence. What happens in the factories is hidden from the customer direct interface between the customer and the marketer people are rare. On the other hand, people also work in hotel industry but with a significant difference the key to marketing of hotel service is the direct interaction between hotel employee and customer. The customer and service provider interaction is the moment of
truth when the service is either marketed pr de-marketed. The customer provider interaction is one of the important aspects of hotel or any service organization. So important of people in service marketing is very important.
Types of service person
There are two types of service person (1) High contact employee High contact employee means that employee who is coming in very frequent contact with the customer for the longer time period. For example:-
In hotel industry
Employee of providing food Receptionist (2) Low contact employee Low contact employee means the employee who is not come in to the interaction on regular basis or on rare cases that is called low contact employee. For example: Manager Kitchen department employee This people only in interaction with customer when customer & high contact employee quarrel or arise some difficult situation with the customer.
Strategy for internal marketing This is the strategy for internal marketing while managing the people. Hear human resource manager of any hotel they have to train to the high contact employee to how to deal with customer & how to talk with customer etc.
(1) Staffing: “Staffing means selection of right person, at right place, at right time in the organization is called staffing” (a) Recruitment: Hotel h.r. manager have to recruit the employee from the proper source. For example:In neelkanth hotel
For executive: - they recruit person from M.B.A. or hotel
For employee: - I.T.I. or 10th or 12th pass.
In taj hotel
Top level: - M.B.A. institute & hotel mgt. cource institute. Middle level: - graduate & hotel mgt. Lower level: - 10th or 12th attempt & I.T.I. people.
In ginger hotel For top level M.B.A. or hotel mgt. is require.
For lower level 10th or 12th pass is require.
In sarovar portico hotel
Top level: - diploma hotel mgt & 5yrs. Experience people.
Middle level :- graduate people Lower level:-10th or 12th pass.
Host inn hotel
Top level: - hotel mgt. or M.B.A. Middle level: - hotel mgt or graduate is enough. Lower level: - 10th or 12th pass.
(b) Selection:In internal marketing you have to decide proper criteria for selection of employee by written exam or by practical exam. For example: In taj hotel: They take first written exam and than take practical exam and than after take personnel interview & group discussion. In Ginger hotel They takes two round of interview & than after they select appropriate employee. In neelkanth hotel: They are taking both exams written and practical.
In sarovar portico hotel: They select the employee by written test & than after they take practical exam for kitchen department people. In host inn: They only show qualification & take personnel interview. (c) Training: Training is the heart or core function of internal marketing for selecting right people. There are two type of training
on the job :-
It means when employee is working at that time giving the training.
Off the job training :-
It means employee is specially called at one place and gives them training. For example:In taj hotel: They provide training on monthly basis on the job & off the job both.
They give the target to the employee to achievement and if the employee can not achieve it than they give the training as per requirement to that employee. In Ginger hotel They provide on the job training to the employee they sent the employee to goa for training on companies expenses. They also provide software training to the customer it is the first asian hotel who is providing software training in software training they made one software of training in that software every thing is shown. In neelkanth hotel: They give the training some times on weekly basis & some times on monthly basis on the job & off the job both. In sarovar portico: Hotel they provide training on the job & off the job both and according to the performance they give the training that perform less they give training to that employee. In host inn hotel: - They only provide off the job training to the employee. (2) Organizing:“Organizing means listing down of the closely related activity and delegate the authority and responsibility to the perform the job.”
Empowerment :“It means delegate the power to the employee when manager delegating the authority and responsibility to the employee to perform the job.”
For example:In taj hotel: They give authority according to the qualification and experience and practical exam and performance. In neelkanth hotel: According employee. In sarovar portico hotel: According to the experience & performance they give the authority to employee. In host inn: They give authority according to the performance. (b) culture :to the experience and qualification and
performance of employee they give authority to the
It means belief system and norms & team spirit develop in the organization. For example:Belief system of taj hotel serves the customer in any situation In taj hotel Mumbai they save the customer when terrorist attack was there. Belief system of neelkanth hotel “Atithi devo bhavah”
(c) motivation “Motivation means inspire the employee to achieve the goal.” here are two way to motivate the employee. promotion:means promotion to employee on the basis of his knowledge, ability, skill, achievement. For example:In taj hotel They decide the criteria for promotion
Scaling is “0 TO 5” If some one get five rank they give promotion to that employee. treating employee as customer :It means equal treatment to employee as we treat to employee. For example:In taj hotel o o food. In Ginger hotel o They have only rest room for the employee In neelkanth hotel o Separate rest room In sarovar portico hotel o Education to the employee Separate rest room Carrem playing room
o Separate kitchen for employee for their own choice of
o Family gathering o Best employee of the month
Host inn o Separate rest room for the employee (d) support It means hotel manager have to provide continuous support in terms of mental support. Technical support :It is only applicable in insurance sector. Process support :It means when one employee is busy during pick season to one customer at that time other employee will help him to provide service. For example:In all four hotels they recruit the extra employee when there is pick season.
(d)Rewarding:It means provided compensation reward to your employee extra than the salary. Reward must be competent enough than the other organization is providing.
For example:Taj hotel providing enough reward to their employee than other hotel provides like as under o Fringe benefit like insurance, providend fund. o Bonus. Other three hotels are providing only bonus to the employee. No any extra than the bonus.
Chapter -13.6- Process
Process is a starting to end point of any service activity. In service participation of customer is important but in the product there is no customer participation. So in case of service marketing it is very difficult to decide the way of process. If there is a mistake in the entire service process than customer feels dissatisfied. The service process that creates the service experience may involve processing of people, information and material hence, three types of service processes can be distinguished. (1) People processing:People process makes the people or customer pass through a sequence of activity in order to create a service experience. For instant, process of transferring customer from airport to hotel and security check is people processing process. For example:People process in taj hotel The people pick-up the customer from the airport & railway station and they check all the information about the customer and check the identity consumer for the security. They also keep the C.C.Camera in the airport & railway station.
People process in neelkanth hotel They keep the C.C. Camera in the air port and railway station and they keep attention on customer and they pick-up the customer from the airport & railway station. Neelkanth hotel also provide one ‘C’ form to the foreigner he has to fill that form. In that form every details of that foreigner should be there like
From which country he comes ? Where he want go after this ? Which-which place he want to go ?
People process in sarovar portico They also pick-up the customer from the airport & railway station And check the information about that customer for the security. People process in host inn They also follow the same process as all hotel follow only they have no any C.C. Camera in the airport & railway station. Ginger hotel
They pick-up the customer from the airport they checkout the identity & they give one ‘C’ form to the customer to know all the details about the customer.
(2) Processing of information:Processing of information means the booking process of consumer at the receptionist department and they provide Manu card for inform the customer that which type of room are provided by hotel. For example:In taj, ginger, neelkanth, sarovar portico, & host inn provide information to the customer about services. (3) Material processing:Finally the room is provided to the customer according to the requirement of customer and provides all needed things to the customer.
Types of process
(1) Continuous production:It includes process start from one hand & continuous to end without any interruption and logical manner it is called as continuous production. In hotel this continuous production is not applicable. (2) job-shop production:It means there are different department in the
organization hear process is not continuous there are separate department for each activity. They provide service according to the need of customer. In every hotel there are different department for provide services like
Receptionist department Kitchen department (3) Intermittent:It means service is providing according to the need of customer, hear when customer need service you provide service & when customer don’t need service than it is stop. For example:In hotel they provide facility of car for out side catering, they provide wi-fi internet facility according to the need of customer.
Service process matrix
In the service process matrix service are categorized in two basic parameters. 1. labour intensive / capital intensive 2. level of customization Certain service are highly labour intensive and certain service are exactly the need of customer it is also called as tailor made service. Service process matrix chart:-
Labourintensive High Profession al service Level of High Mass Customization service Low (1) Professional service: It is high in labour and high in customization. For exampleC.A., lawyer, legal consultancy services. Because this service is not requiring more capital and it is more exactly the need of customer it means it high on customization. Service factory Service shop low
(2) Mass services:This service high on labour and law on customization it means it is require more labour and it is not exactly to the need of customer. For example:Retailing & Educational services (3) Services shop:-
It is law of labour and more of capital and high of customization. For example:In hotel industry this service is applicable because hotel industry requires huge capital investment and it provide service exact the need of customer. (4) Service factory:It is law of labour and law of customization it is not applicable in the hotel industry.
Value addition in the process
Service within room
Service outside room
Exit Customer relation ship mgt. after Sales service
For example:In taj hotel, in neelkanth hotel, sarovar portico hotel & host inn they pick-up the customer from air port & railway station in car In car they provide facility of Television A/C car Music system (2) reception In this hotel people is check the customer’s identity and book the room for customer. If receptionist not provide proper information about the customer’s problem than it is not add value in the process experience of customer. If customer not gets one glass water than he feel unsatisfaction.
(3) service within room After reception customer left the customer into the room. Taj hotel Television Ginger hotel Neelkanth hotel Television Refrigerator in prime suite room Running hot & cold water In house video mpves Satellite programme s Sarovar portico hotel Television Wi-fi internet facility River view Study desk Direct dialing facility hot & cold waterfacilit y Safe deposit locker Host hotel inn
Smart sleep Wi-fi Tea/coff internet ee facility maker King or LCD T.V. queen size beds Study table Mini fringe Safe deposit locker Bath kits in bathroom Direct dialing facility Meeting room
Television Wi-fi internet facility 24 hours room facility Direct dialing facility Safe deposit locker
Wi-fi net Safe zone deposit lockeron request A/C control Laundry Wi-fi to regulate internet room facility temperatur e Voice mail Electronic safe
(4) service outside room
Neelkanth hotel Swimming Live guzzle pool during Health club Outdoor catering Live guzzle Laundry during dinner Outdoor Doctor on call catering
Sarovar portico hotel Banquet hall facility Live guzzle during Money exchange Outdoor catering at navaratri time in c.m. ground Laundry Pick-up & Dog show in draw facility June in car Doctor on call Parking Package facility during marriage season Banquet All major card Laundry facility acceptable Pick-up & Banquet hall Doctor on draw facility facility call
Host inn Banquet hall facility Out door catering Travel desk All major credit card are accepted Doctor on call Money exchange Laundry
in car Parking facility All major card acceptable
(5) Exit:Hear customers are left the hotel. In all four hotels they left the customer to airport & railway station by car. (6) Customer relationship management after sales
service:In this all the four hotel note down the customers list that who are regular customer & who are irregular customer and note down the birthday date and marriage date of the customer and they wish to the customer and they provide discount offer to that customer.
Chapter 13.7:- Physical evidence
Introduction Physical evidence plays an important role in the hotel industry because customer enters into the service organization. What surrounds the service often becomes the intervening variable that mediates between what really the service is and what is actually perceived by the customer. Evidence management is another area of strategic importance to the service marketer. It
can both add and destroy value depending upon how it is managed. Importance of physical evidence Goods marketer have discovered the potential of packaging the fifth p’s of marketing if packaging is attractive than customer are more attract to wards the product. As packaging is important in product marketing. Physical evidence is important in service marketing. In service product itself being intangible, Like in hotel service until you use you can not judge the service how the service is. Therefore physical evidence is the tangible part of the hotel industry like building of hotels’ lighting in the hotel, music system, receptionist area, surrounding area of hotel buildings if these all things are excellent than more customer are attract to wards this kinds of hotels. So physical evidence is very important part of entire
experience of customer in the hotel.
Types of physical evidence
There are two type of physical evidence (1)dominant evidence
(2)peripheral evidence (1) dominant evidence :-
Dominant evidence constitutes a dominant part of service facility For example: buildings of hotel hotel room receptionist area parking area furniture of hotel
peripheral evidence :It is not very visible in relation to the dominant but no matter hoe small and trivial, they do have an impact on customer perception. Peripheral evidence includes
Entry gate :-
In all four hotels the gate was open by the employee. Water try In all the hotel employee gave the water to any customer.
Telephone In all hotel telephone is properly arranged. Bath kits In all four hotel they provides bath kits to the customer Study table In all four hotel there are study table. Children & aldure people facility. All hotels not charge the extra charge for the children with out extra bed.
Dimension of service environment
It means what is the key evidence in service environment.
Architectural style: -
It mean how the look of the hotel Taj Mumbai: - heritage look Taj Ahmedabad: - modern look Ginger hotel:-modern look Sarovar portico hotel: - modern look Neelkanth hotel: - modern look Host inn: - modern look
Service layout: -
It is called as systematic arrangement of service For example: First of gatekeeper Than receptionist area Table arrangement is proper or not In taj, neelkanth, & sarovar portico the arrangement of table service layout so beautiful but in host inn hotel the place was very small & table arrangement is in very haphazard manner.
It means lighting should be properly and in plant manner In taj hotel, in sarovar portico hotel they arrange proper lighting during festival like during Christmas they arrange one Christmas trees. And at the time of diwali, navratri they arrange beautiful light. In neelkanth also they arrange light according to the festival like diwali, navratri, Christmas etc. in host inn they only arrange simple light during festival.
Music should be as per time & as per mood.
For example:Except host inn hotel all other three hotel provide music facility during dinner time. The music is not fixed or as per time.
The fixture it is fixed it is not movable like study table, wash tub, etc. The fixture should be properly installed. If the fixture is installed in very haphazard manner than customer feel uncomfortable. In ginger hotel the fixture is mostly red colored so it looks very beautiful.
wall decoration: -
For example:Wall color wall color is very important in hotel room hotel room color should not be dark. We have observed in all hotels that wall color is light. In ginger hotel in floor they have patex & room colour is light . In ginger hotels lobby
scents:It means perfume for freshness of room. There are different type of scent use by hotel & restaurant like sandal rose lavender These all hotel are using scent for the room freshness. They are not using fixed perfume they are using different different type perfume.
symbols: To informed the customer. In hotel there are symbol of male & female in the bathroom. To reflect the brand in the brand in the mind of customer.
Chapter -14- 5 Gaps model of service quality
Personal need Word of mouth communication
Expected service Consumer part Perceived service
Gap- 4 Gap- 1 Service delivery External Communication To customer. Gap- 3 Marketer part Transition of Perception into Service quality Specification Gap- 2 Mgt. perception of consumer Expectation
Gap-1: - Expected service & mgt. perception of consumer Expectation. B.W.T.I.B.A
The first gap shows that customer expectation is some thing different & mgt perception to wards the consumer expectation is different. For example:In Taj hotel Detailed Rating Location: 9/10 Food: 9/10 Service: 9/10 Rooms: 9/10 Facilities: 8/10 Value: 7/10 Prompt pickup at the
airport by courteous person from the hotel. The car was clean, and the driver was also very courteous. The persons identified themselves, and told us about the services expected in the hotel, and radioed .The lady at the check-in was very courteous and helpful. Like any other 5 star hotel, the person at the check in walked us up to our room and explained us the services available. Luggage was promptly delivered to the room. Room was very neatly organized. Rooms seemed a bit old though, probably can help with some renovating the interiors. Breakfast was included in our package, and breakfast was a lot of fun. There was a lot of different food available for every taste. Kids just went nuts at all the choices they had. Funnily though,
Customer in taj hotel tells that every thing is good in the taj hotel but they didn’t have orange juice or mango juice or even coconut water. Food otherwise was excellent in taste. So taj hotel perception is only is that customer want only tasty food but they also want some juice so it is the gap-1 in the hotel taj. And also customer tells that they are not providing service according to the value of money so they rated 7/10. Facility also is not so much expected than customer so customer rated facility as 8/10. In hotel host inn: Review of customer Hotel Good Very Home Home feel stay Value for money Decent experience Extremely disappointing It is very disappointing to see that Yatra. Com.has mention this kind of hotel in their list. It is just like a lodge, and trust me, from no where does it look good hotel. Nice & cozy hotel
Nice hotel. Facility & customer service is very good. Recommended for families. Hear in this hotel customer like every room service, it gives the value for money but some customer don’t like this hotel, hear customer want the looking of hotel but they are only concentrate on the room service.
In NeelKanth hotel Neelkanth Inn “Decent Hotel for the Price” In neelkanth hotel people have expectation that customer are just want to stay & rest in the hotel but customer want something enjoyment over there like gymnasium playing game etc. so it is the gap first in hotel neelkanth. In Sarovar portico hotel: Customers review Detailed Rating Rank = 9/10 Close Location: 6/10 Food: 10/10 Service: 10/10 Rooms: 10/10 Facilities: 10/10 Value: 10/10
It was a good hotel and had a nice comfortable stay. Plus point is Warm cooperative staff. Minus point is Location was a bit letdown but close enough to all important destinations. Plus point is Clean rooms, good food, and nice professional and warm welcoming staff. Minus point is the room smelled very odd. As above mention customer told that the room is good, warm welcome staffs are there but hotel people don’t know that customer want good outlook of the hotel & not very smelling odd so it is the gap 1 in the hotel.
Gap:-2:-Transition quality into
perception of consumers expectation.
It means that hotel knows every need of customers want but they are not in position to translate or design that kind of service to the customer. For example:In Sarovar portico hotel In Sarovar portico hotel they people know that customer want the swimming pool over there but they are not in the position to provide swimming pool in the hotel so it the gap 2 in the hotel of Sarovar. In host inn hotel
They people know that customer want music over there during the dinner time but they are not in position to provide music over there.
In ginger hotel Ginger people know that there are except business people will also come but they are not in position to serve the normal customer because they only provide the service of business client.
Gap-3- service delivery & transition of perception into service quality specification.
In this gap hotel have already design the service according to the need of customer but there is a problem in providing service delivery. For example:In neelkanth hotel In neelkanth hotel & in host inn hotel problem is that the table is so beautifully designed but space is so small then entire family member can not adjust.
In ginger hotel There are good communicated employee, lighting is so good, service are so good but they are not providing one glass water to the customer when customer come to the hotel so in entire experience of the customer this is only lacking. In taj hotel In taj hotel also they are not providing service according to the money pay by the customer so it is again a problem of service providing. So in this customer only rate value for money is 7/10.
Gap-4-service delivery & external communication to customer
Hear hotel is advertising so beautifully in the internet by providing virtual tour, good accommodation & good service in the advertising but when employee actually goes there than they not find any thing which is mention in the advertising. For example:-
In taj hotel also from customer review they find less service than the whatever service shown in the internet so hear customer only give 8 rank out of 10 in facility. In ginger hotel also they are showing good virtual tour in the internet but when customer actually goes there than they find less service. In Sarovar portico hotel also they shown good room in the internet but when actually customer go there than they find very odd smelling room, and also they shown building in beautiful manner but looking of building actually it is not good because in some part of the hotel there are no painting.
Gap-5-Perceived service & expected service
In this gap is related with the psychological because marketer can not do any thing in this gap because it is comes from the mind of the customer. For example:Customer expecting past good service at the second time. It means that customer have already visit first time any hotel at that time he got the satisfactory & excellent service from that hotel but when customer second time go to that hotel & he get a good service from that hotel but there is a tendency of customer to tell that service is not good as he get earlier. Every hotel faces this problem because hotel can’t change the mind of customer.
Q:- Name of hotel. AName of hotel Date of visit Taj hotel 3rd oct., 2008 Sarovar portico 18th dec., 2008 hotel Hotel neelkanth 23rd sep., 2008 7th Jan., 2009 24th Jan., 2009 7th Jan., 2009 Star category 5 star 4 star 3 star 3 star 3 star 2 star
sahara Hotelneelkanth paradise Hotel ginger Hotel host inn
Q:-Name of person & designation. AName hotel Hotel taj of Name of person Mr. vergies curien Neelkanth Miss. Tulsi sahara mam Designations H.R. Manager
Assintant general manager Neelkanth Mr. Harsant Front office paradise shah manager Hotel host inn Mr. parikshit Side partner Sarovar Mr. rishove Training portico halder manager Ginger hotel Mr. kaushal G.A.M. Q-How many rooms are there in the hotel?
AHotel Taj 91
Hotel Ginger 93
Neelkant Neelkant Hotel h Sahara h Host Paradise Inn 250 78 38
Sarovar Portico 69
Q- How many banquet hall the hotels have? AHotel Hotel Neelkan Neelkan Hotel Taj Ginger th th Host Sahara Palace Inn 2 1 2 3 1 Q- How many categories of AHotel Hotel Neelkan Taj Ginger th Sahara Deluxe Standar Non A/C room d room room Executiv e room Pool view room Garden room Deluxe A/C room Sahara Deluxe room Honey moon suite room Maharaja suite room Extra bad /Person rooms in the hotels? Neelkan th Paradise Non A/C room A/C Deluxe room A/C prime suit room Hotel Host Inn Deluxe room
Sarovar Portico 4
Sarovar Portico Standard room
Executive Superior room room Non A/C room Standard room Deluxe room Studio suite Executiv e suite Grand suite
Q - Facilities provided by the hotels. AHotel Hotel Neelkan Neelkan Taj Ginger th th Sahara paradis e Banquet Tea / Banquet Banquet facility Coffee facility facility maker Car LCD TV 24 hour Car parking coffee parking shop Airport Gym Car Car pickup parking facility Restaura Airport Compute Doctor nt pickup r facility on call facility Swimmin g pool Safe deposit lockers Car facility Restaura nt facility Car facility Airport pickup Airport pickup Fax & Internet facility
Hotel Sarover host Inn portico Travel desk Money exchang e Wi-Fi service Safe deposit lockers Laundry facility Airport pickup Restaura nt facility Banquet facility Fitness center Wi-Fi service Travel Desk Doctor on call
Compute Safe r facility deposit lockers Gym Mini fridge Car facility Sky way facility
Safe deposit lockers Doctor on call Postal & courier service
Compute Restaura r facility nt facility Safe Car deposit facility lockers Postal & Banquet courier facility service
Permit shop Airport pickup Car facility
Q-location of hotels AHotel Ginger Neelkan Neelka Hotel Taj hotel th nth Host inn Sahara Paradis e Internati onal airportcir cle, Hansol, Ahmada bad. Behind Himalay a mall, Drive in road, Ahmada bad 380015. 2nd floor icon square, Opp, kothawal a flat, paldi, Ahmadab ad. Ellis bridge cross road, Opp,tow n hall,Ellisb ridge, Ahmada bad . Opp,Le -Meridian,k hanpur, Ahemedab ad380001.Ind ia
Sarov ar portic o Bhawn’ ’s college road, Ahmad abad
After preparing report on hotel industry, our group have conclude that the current situation of the hotel industry is very tough because of the Mumbai terror attack in the taj hotel so foreign customers arenot coming in India so there are need to improve the very tiet security.
And our overall experience after preparing this report is very good but in some hotel we did not get good response from the H.R. Manager of the hotel like in le-meredien hotel we did not get good response so did not include that hotel in our report. But in other hotel like taj hotel, neelkanth sahara hotel, neelkanth paradise hotel, hoet inn hotel, saravar portico, ginger hotel hotel our experience was good & very fantastic as specially to ginger hotel & taj hotel & Sarovar portico hotel. From the customers point of view & review of the customer all these hotel have to improve a lot like in taj hotel customer are not getting value for money, in neelkanth group of hotel, & Sarovar portico hotel look of building is not good, In host inn hotel customer view is it look like lodge & from no where it looks like hotel so they have to improve the look of hotel. After preparing report & visiting to the hotel our suggestion to taj hotel is they have to improve there the hospitality service to the customer, In neelkanth hotel they need to improve their employee skill in speak in English, in host inn hotel they need to improve their restaurant & employee skill in speak in English, in ginger hotel they have to improve the security because when we were go at there at that time there are no any checking process of visitors, in Sarovar portico hotel they need to improve the look of the hotel. So finally our over all experience was fantastic.
The Times of India Business Standard
WWW. Hotel Industry. Com WWW. Equity master. Com WWW. Indian equity fund. Com WWW. Neelkanth group of hotel. Com WWW. Taj hotel. Com. WWW. Ginger hotel. Com WWW. Sarovar portico hotel. Com WWW. Host inn hotel. Com
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue reading from where you left off, or restart the preview.