SERVICE SECTOR

MANAGEMENT
HOTEL INDUSTRY

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 DEFINITION

Webster defines a hotel as, “A building of institution

providing lodging, meals and service for the
people.”

Oxford defines a hotel as, “An establishment

providing rooms & meals for the travellers &
tourist.”

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 HISTORY OF HOTEL INDUSTRY

Concept of hotel originated in the 6th century B.C in

the form of inns

Development of hotel & motel on an organized basis

Significance of management practices in hotel

industry

Change in traditional concept

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 CHARACTERISTICS
High initial investment Customers as guest

Immovability Intangibility

Inseparability
Competition
Variability
Supporting services

Perishability
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SWOT ANALYSIS

STRENGTHS WEAKNESS

OPPORTUNITIE
S THREATS

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Types of Hotels

Budget Hotel

Business Hotel

Luxury Hotel
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CLASSIFICATION OF HOTELS

On the
basis of
standards
and control
On the
On the
basis of
basis of star
nature

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 Resort

Commercial International

ON THE BASIS
Residential OF NATURE Floating

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ON THE BASIS OF STANDARDS
& CONTROL

Approved Unapproved

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ON THE BASIS OF STAR
RATING
7 STARS

6 STARS

5 STAR DELUX

5 STAR

4 STAR

3 STAR

2 STAR

HERITAGE HOTELS

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 USERS OF HOTEL SERVICES
Domestic Foreign
Educationists Film stars

Sportsmen Cultural representatives

Medical representatives Sportsmen

Trade representatives
Educationists

Officials
Political representatives
Pilgrims
Trade representatives
Students
Pilgrims
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 HOTEL MARKETING IN INDIAN
ENVIRONMENT
 Hotel business is at an infant stage

 The hotel industry needs to revamp the product mix

 Users of the services expect economy and sellers look to

cost + profit

 The promotional strategies are also required to be

restructured
 Requires increased governmental support

 The main way for the development of this industry is to

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encourage tourism
 BENEFITS OF HOTEL INDUSTRY TO
OTHER INDUSTRIES
Tourism Industry

Banking Industry

Food Industry

Transport industry

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 CHAINS OF INDIAN HOTELS
 The Oberoi chain (Now Hilton
Hotels)

 The Ashoka chain of hotels

 The Taj group

 The Kamath hotel

 The Tunga Hotels

 The Ritz chain

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MARKETING MIX

PHYSICAL EVIDENCE
PROMOTION
PRODUCT
PEOPLE
PROCESS
PLACE
PRICE
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Product
CORE
BASIC
EXPECTED
AUGMENTED
POTENTIAL

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 Price

Competition
Demand based
based

Differential
pricing

PRICING STRATEGIES 17
 Tactical pricing

SEASONAL TRADE SPECIAL

DISCOUNTS DISCOUNTS DISCOUNTS

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 Place

Distribution Chain

0 level 1 level 2 level 3 level 4 level

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 People
“First impression is the last
impression”

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 Physical Evidence
• It addresses the ‘tangible’ components of the
service experience

• The “services cape” includes the ambience, the

background music, the comfort of seating and the
physical layout of a service facility

• The appearance of the staff, including clothes and

grooming, may be used as important clues
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 Promotion
ADVERTISING

SALES PROMOTION

WORD OF MOUTH PROMOTION

PUBLICITY AND PUBLIC RELATIONS

PERSONAL SELLING
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 Process
It includes the flow and progress of the
production process

E.g. the service of providing a meal at the fine

dining restaurant of the hotel

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Case study

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 Comparison of Hotels
Taj Orchid Regale
Deluxe rooms, luxury Deluxe, executive, club
Star, icon,
Product suite, Taj club rooms, prive, orchid suite,
legend
Palace wing rooms presidential suite
` 6,500 –
Price ` 11,000 – 95,000 ` 5000 -27000
18000
Near to Tourist
High Society or sea
Place side.
Near airports. sites as well as
airports
Brochures,
Calendars, print, Ads, cinema, TV, print
Promotion exhibitions, TV. media.
exhibitions,
media

Online or on the Online or on the Online or on

Process desk desk the desk
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 Taj Orchid Regale
5 star eco
Performance 6 stars
friendly
4.5 stars
Nila blue
Packages Yatch services Business, spa waters. Sparta
fitness
Porters, chef, Porters, chef,
Receptionist
People manger manger
manager,
receptionist, receptionist
Physical It was built in It opened up in
Built in in 1903
Evidence 1997 2008
Corporate Tourists &
Positioning High class
travelers normal public
High class Encourage
Purpose enjoyment
Eco friendly
tourism
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 Presented by
Ateeb Ansari – 01
Steffi Biswas – 03 Junaid Gandhi – 10
Thomas J.K. – 15 Shahil Mithani – 26
Ali Rizvi – 34 Shoeb Syed – 41

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