MENTORING REPORT ON

MARKETING STRATEGIES OF HOTEL INDUSTRY
“Submitted in the Partial Fulfillment for the Requirement of Post Graduate Diploma in Management”

JAGANNATH INTERNATIONAL MANAGEMENT SCHOOL Kalkaji, New Delhi

Submitted to: Dr. Neelam Tandon Associate Professor JIMS, Kalkaji

Submitted by: Neha Jaiswal Roll No: 47 Batch: 2012-14

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DECLARATION

We, here by, declare that this mentorship project report on ‘Marketing Strategies Of Hotel Industry’ has been written and prepared by me during the academic year 2012-14. This project was done under the external mentor Mr.Tarun Bhaskar (Assistant Manager) in Carlson Rezidor Hotel Group and internal mentor Dr. Neelam Tandon. In partial fulfillment of the requirement for the Post Graduate Diploma in Management course of Jagannath International Management School, Kalkaji (New Delhi).

Neha Jaiswal

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Careers. No 1. 7. Brands. 6. 8 11 22 42 5.   TOPIC Introduction of the project What is Hotel? Hotel Industry Objective of the Project Limitation of the study Industry Profile Indian Tourism Industry Domestic & International Tourism Classification of Hotels Competition in hotel industry Company Profile Profile of Carlson Rezidor Ambition.    4. Credo.   Data Analysis. Benefits Marketing practices & strategies Research Methodology Research Techniques Data collection instruments & techniques PAGE NO.     3. Interpretation & Results Conclusion & Suggestions Appendices Bibliography Questionnaire 45 55 57 5 .     2.S. Facts & Figures.

Director. We express our thanks to Mr. for extending his whole hearted cooperation. Chairman. JIMS Kalkaji for providing us the infrastructure to carry out the project. It is also a way of ensuring that even the smallest contribution does not go unnoticed. support.ACKNOWLEDGEMENT Gratitude is a way of acknowledging all the great and little efforts that people around us have put into this project.) Satish Seth. Therefore. 6 . Above all I sincerely thank the God almighty and my affectionate parents without whose blessings I could not have completed this work.Neelam Tandon & external mentor Mr. we would like to express my heartfelt gratitude to everyone being involved in this project one way or the other. valuable time and information throughout our project development with attention and care. We are extremely grateful to our faculty Dr. Amit Gupta. Tarun Bhaskar.(Cdr. JIMS Kalkaji and Dr.

promises a rich experience to any visitor and patron. Hotel industry which has been underperforming on revenue targets in today‟s competitive market. Objectives talks of types of data the research project will generate and how these data is relevant. The positive response of the customers towards the hotel led to the new marketing strategies. measurement instrument. sample and analytical techniques.EXECUTIVE SUMMARY The main object of this project is to show the marketing strategies and quality management of hotels in order to improve its revenue and the research problem is. how can Marketing Strategies and Quality Management improve future revenue with the special reference to selected five star hotels in India? The methodology includes primary data and obtaining access to secondary data like historical sales and revenue data. As advertising and promotional strategies affects revenue faster and in a sustain manner compared to one time hotels promotions depends on external factors besides advertising and promotional strategies can be controlled by the hotel management to help retained loyal customers. Marketing strategies is a key to improving hotels revenue. It is thus an important element of the marketing strategy to generate growth in sales revenue. The stylishly designed hotel that made its way to the list of best hotels in the world. Realizing the huge potential for hospitality industry have to look back to their marketing strategies. The study is based on selected five star hotels in Delhi and I take Radisson Hotel which belongs to Carlson Group to explain my project. Research approach gives a non technical description of the data collection method. I use experimental and questionnaire methods for research methodology. 7 .

1 INTRODUCTION 8 .Chapter.

capsule hotels provide a minimized amount of room space and shared facilities. HOTEL INDUSTRY Hotel industry in India has witnessed tremendous boom in recent year. These days some more additional common features are also found in hotel rooms like telephone. childcare. a television. business centre. Luxury features include bathrobes and slippers. The arrival of low cost airlines and the associated price wars have given domestic tourists a host of options. a pillow menu. The thriving economy and increased opportunities in India has acted as a boon for Indian hotel industry. a safe. The „Incredible India’ destination campaign and the recently launched 9 . In the United Kingdom. Hotel industry is inextricably linked to the tourism industry and the growth in the Indian tourism industry has fuelled the growth for Indian hotel industry. a hotel is required by law to serve food and drinks to all guests within certain stated hours. In Japan. Hotel rooms are usually numbered (or named in some smaller hotels) to allow guests to identify their room. A capsule hotel is a type of hotel with a large number of extremely small "rooms" (capsules) intended to provide cheap and basic overnight accommodation for guests not requiring the services offered by more conventional hotels. ironing facilities and facilities for making tea and coffee. a cupboard.What is a Hotel? Hotel is an establishment that provides lodging and usually meals and other services for travellers and other paying guests. The provision of basic accommodation. in times past. and jacuzzi bathtubs. fitness centre. conference facilities and social function services. swimming pool. Some hotels offer meals as part of a room and board arrangement. a small table and a washstand has largely been replaced by rooms with modern facilities. consisting only of a room with a bed. Larger hotels may provide additional guest facilities such as a restaurant. including en-suite bathrooms and air conditioning or climate control. an alarm clock. a mini-bar with snack foods and drinks.

however good it may be and every study has some limitations:    Time is the main constraint of my study. The views of the people are biased therefore it doesn‟t reflect true picture. The Indian hospitality industry has recorded healthy growth fuelled by robust inflow of foreign tourists as well as increased tourist movement within the country and it has become one of the leading players in the global industry. Sample size availability was not large enough.  LIMITATIONS OF THE STUDY No study is complete in itself. To know about loyalty programmes.„Atithi Devo Bhavah‟ campaign has also helped in the growth of domestic and international tourism and consequently the hotel industry. 10 . The fortunes of the hospitality industry have always been linked to the prospects of the tourism industry and tourism is the foremost demand driver of the industry.  OBJECTIVES OF THE PROJECT      To study the various trends in Hotel Industry. To find out the strategies of Hotel Industry. It has evolved into an industry that is sensitive to the needs and desires of people. To know the marketing practices of Hotels. The Indian hospitality industry has emerged as one of the key industries driving growth of the services sector in India. To find the future market potential of Hotels.

Chapter-2 INDUSTRY PROFILE INDIAN TOURISM INDUSTRY 11 .

3mn to 2. The rising volume of tourism influx brought i nto light. Keeping in view the changing standards in the international hotel keeping. The industry is growing at a rate of 9%. The Indian industry to make a number of improvements. high priced. the Kargil issue and the parliamentary elections had affected growth in the tourism industry. With the political and economic stability being more clearly visible. Hotel industry is an essential part of tourism. 12 . Hotels may be categorized depending upon factors such as       Locations Categorization according to plan Categorization according to number of rooms. the shortage of hotels in important tourist‟s centers. and a few luxury hotels. Hotel industry is so closely linked with the tourism industry that it is responsible for about 50% of the foreign exchange earning form tourism trade and enterprises. The expansion of tourism is well inevitable brin ging out development of the hotel industry. moderately priced. Categorization by type of clientele. it is equally necessary to have at various levels.5mn. It‟s not enough to have adequate hotel accommodations. low priced. both tourists as well as business arrivals are likely to gather momentum in the remaining part of the year. Categorization by the facilities that the hotel offers The devaluation of the Asian currencies. The situation is gradually moving back to normal with the tourist arrival figure marginally increasing from 2. Categorization by the length of stay of guests.Tourism is the basic and the most desirable human activity describing the praise and encouragement of all people and government.

"tourism is a traditional instrument. new habits and new outlook on life. whether domestic or international has common economies significance in the sense that money earned in places visited large sums of transferred to the host economies where this money provided a source of income. Tourism. It is said it's a smokeless industry and has become second to the petroleum industry in world trade. Contact between people of different races and nationalities widen ones outlook. The studies says.N. General assembly designated 1967 as international tourist year with a unanimous resolution recognizing that "tourism is a basic and most desirable activity deserving the praise and encouragement of all peoples of government". The slack season is generally used for renovation work and the period is characterized by discounts to attract clients. Tourists are in turn affected by the experience and often carry back home with them. Purchasing power is generated in the receiving areas through the expenditure of visitors.The Indian hotel business focuses largely on foreign tourists with only 30% of the business coming from the domestic business and the leisure travels. Their presence and social background affect the social structure and mode of life at the destination. a means of livelihood and amenities for the resident population. Money received is spent and resent and this multiplier process the host country is a beneficiary. 13 . with the best season being from September to December followed by a steep fall till May. For many countries is a major item in world trade. These countries exhibit faster growth in tourism than in trade of goods. tourist comes in contact with the places they visit with their inhabitants and social exchange takes place. International tourism is of great importance in international trade in the sense that it enters into the balance of payments of accounts of individual countries generating tourist traffic and export for countries receiving tourist traffic. When traveling away from home. which enables culture to the rehabilitated and made know to the rest of the world". This great importance was formally acknowledged when the XXI U. The period June to September gains momentum once the monsoons are over. Tourist has great educational significance. The tourist arrivals in India are seasonal in nature.

the geographical expands and the resource constraints. train and road transport has contributed to the impressive growth in tourist traffic. With globalization the free movement of people is growing. Domestic tourism has no balance of payment implications. Barriers like language. Industrial growth. the distinction between domestic and international tourism is now diminishing.Domestic and International Tourism Usually. improvement in the standard of living. domestic tourism would have received greater emphasis in India. estimates of documents tourists' traffic through an executive survey is considered impossible. Considering the greater multiplier effect in domestic tourism. since difference estates have different languages. a distention is drawn between domestic or internal and foreign of international tourism. currency and documentation are not in the domestic tourism. rise in disposable income and most importantly the improvement of tourist infrastructure search as hotels. Domestic tourism if considered separate from the travel for religious and commercial purpose. But in India. Reliable data on the growth of domestic tourists traffic are not available as not extensive survey has been conducted on a national level by any agency. The reasons being: Language barriers are reduced by improving language skills Currency and customs unions are developing in many European countries. air. 14 . ones own language may not serve a medium of communication. It is a post-independence phenomenon. When people travel to a country other than which they normally live in is known as international tourism. government or otherwise not given the numerous festivals celebrated throughout out the year. In domestic tourism people travel outside their normal domicile to other areas within the country. the innumerable tourist's centers in the country.

way back in the 6th century BC when the first inn in and around the city of London began to develop. Which had to more and more people traveling not only for business but also for leisure reasons. 15 .The definition of a domestic tourist is a person who travels within the country to a place of residence and stays at hotels or other accommodations establishments run on commercial basis or in dharmashalas. but not as we know today. the climatic conditions. This condition of the inns prevailed for a long time. The factors that govern the magnitude of domestic tourist traffic are the religious and cultural importance of a place. Hotels have a very long history. which brought about new ideas and progress in the business at inn keeping. sarais. HOTEL INDUSTRY According to the British laws a hotel is a place where a “bonafied” traveler can receive food and shelter provided he is in a position to for it and is in a fit condition to receive. Hotels today are a “Home away from home”. The extent of manufacturing. like personalized services etc. This lead to the actual development of the hotel industry as we know it today. The first catered to travelers and provided them with a mere roof to stay under. the infrastructure facilities available and the geographical location etc. Hotel today not only cater to the basic needs of the guest like food and shelter provide much more than that. for duration of not less than 24 hours. chaultries etc. until the industrial revolution in England. The invention of the steam engine made traveling even more prominent. business and trading activity. the current rough estimate of domestic tourism in India is ten million a year.

based on their operational criteria. facilities given and the clientele they cater to can help categories hotels today. They often have 2 or 3 dining rooms.CLASSIFICATION OF HOTEL Hotel can be classified into different categories or classes. Food and beverage services and uniformed bell staff. type of services provided. Deluxe hotels: They are better and offer more specialized services than first class hotels. 16 . Food and beverage service may or may not be available. All Suite hotels: It offers separate sleeping and living areas along with a kitchenette and a stocked bar. uniformed bell services. The furnishing and decor are acceptable to majority of travelers. For example the type of accommodation they provide. They offer above average luxury. They also provide limousine services. swimming pool. spas etc. and offer class service. location of the property. Hotels today are basically classified into the following categories:  MARKET SEGMENT Economy hotel: It provides efficient sanity private rooms with bath. Mid market hotels: They offer comfortable accommodation with private on premises bath. First class hotels: They are luxury hotels with exceptional decor better than average food and beverage service.

 PROPERTY TYPE
Traditional hotels:
They have the basic concept of rooms with break fast, bell desk services and the other usual services.

Motels:
They are located on highways. Guest is given parking right outside their rooms. The usually have a gas station / workshop attached to them.

Resorts:
They are usually situated in tourist locations like on rivers, mountains, jungles, or the sea. They give more privilege to sports activities leisure and re-creation activities like manages, sightseeing, adventure sports, etc.

Resident hotels:
Where guest stay for longer duration, stay like weeks, months even years.

Casino hotels:
They are hotels usually in tourist spots and mainly cater to people who are on holidays. Casino hotels like the name suggest offer gambling facilities along with

accommodations.

 ACCORDING TO SIZE
Small hotel – up to 150 rooms Medium hotels –150 to 299 rooms Large hotels – 299 to 600 rooms Extra large hotels – above 600 rooms

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 OWNERSHIP AND AFFILIATION:

Independent hotels:
They have no application with other properties. They have their own management and are single properties with one owner.

Chain hotels:
They impose certain minimum standards, levels of service, policies and procedures to be followed by their entire establishment. Chain hotels usually have corporate offices that monitor all their properties and one management runs these properties. That is all the hotels under the chain are completely owned and run by the chain itself.

Franchisee hotels:
The franchisee grants the entities, the right to conduct business provided they follow the established pattern of the franchisee, maintains their standards, levels of service, practice their policies and procedures.

STAR CATEGORY OF HOTEL [INDIA]
One star [*] Two star [**] Three star [***] Four star [****] Five star [*****] Five star deluxe [***** deluxe]

THREE STAR CATEGORIES:
For a hotel to be recognized as a three star property the architectural features and general features of the building should be very good there should be adequate parking facilities. At least 50% of the rooms must be air-conditioned. Also the ambience and

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decor of the place must be ecstatic. They should provide reservation and information facility apart from reception, information, bell service at least two gourmet dining facility

should be available. The establishment may or may not have banqueting facility. They should provide high levels of personalized services. The staff must be well-trained and proper standards for hygiene and sanitation must be followed. Also all properties have to keep in mind that proper waste management is done.

FIVE STAR CATEGORIES:
Five star category is only allotted to properties, which have all the qualities of a three star property and a few additional. Like the entire property must be centrally airconditioned. The building of the property must be an attractive one. All the rooms must be spacious. The property must have proper banqueting facility, business center. Proper and well-maintained pool and health club a spa is optional. The property must have 24 hour coffee shop, round the clock room service, a bar, and a minimum of 1 gourmet restaurant. The staff must be highly trained and a degree of specialization must be shown. State of art Equipments must be used and the facility provided in the rooms must be sophisticated.

FIVE STAR DELUXE CATEGORIES:

They are more or less like five star properties with the only difference is that they are on a larger scale. Five star deluxe properties maintain a very high staff to guest ratio and very high levels of service is maintained. They in addition to five star properties have 5 to 7 dining rooms, a bar, 24-hour coffee shop, banqueting facility. Spas, fitness centers, business centers etc.

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has taken some measures which will benefit the sector. 5. 20 . RBI has allowed ECB upto US$ 100 m in January 2009. it is only 1% of the total government spending. The global economic downturn impacted the Indian tourism and hospitality industry which saw a decline in the foreign tourist arrivals to India from 5.Visitors are like God) to reinforce the rich variety of tourism in India.5 m in FY2010. The travel & tourism growth in 2009 slowed down to just 1%. Rs. In FY2009.2 bn for development of tourism infrastructure was allocated. The ministry promoted India as a sate tourist destination and undertook various measures. To encourage the tourism sector. thereby resulting in a increase of 7% . such as stepping up vigilance in key cities and at historically important tourist sites.COMPETITION IN HOTEL INDUSTRY After witnessing good times for 3 years. the government in recent times.13 m in FY 2009 to 5. which would help in raising funds. This figure is higher by Rs 970m as compared what was allocated in the previous year. the hotel sector had a tough 2009 due to the Global Economic slowdown and terror attacks. However. India occupies the sixty-second position among the top tourist destinations in the world for 2009. The Centre and States are also working out a PPP (Public-PrivatePartnership) model to increase hotel capacity. Government of India increased spend on advertising campaigns (including for the campaigns 'Incredible India' and 'Athithi Devo Bhava' .

especially in the metros. Demand Largely depends on business travelers but tourist traffic is also on the rise. This is expected to keep ARRs high for the next few years. Demand normally spurts in the peak season between November and March. Bargaining power of supplires Limited due to higher competition.Supply We have a shortage of 100. poor infrastructure facilities and scarcity of land especially in the metros. Competition Intense in metro cities.000 guest rooms short in the country. Competition has picked up due to the entry of foreign hotel chains 21 . slowly picking up in secondary cities. Barriers to entry High capital costs. Bargaining power of customers Higher in metro cities due to increasing room supply.

Chapter-3 COMPANY PROFILE 22 .

and The Rezidor Hotel Group – one of the world's most dynamic. the decision to join forces as a strategic partnership and go to market as The Carlson Rezidor Hotel Group was a natural.3%). the Middle East and Africa. and Hotel Missoni under a worldwide licence agreement. family-owned. U. common history of successful growth. a division of Carlson – a vibrant.S. The company's legal status and ownership structure remain. innovative and fastest growing hotel companies.-based global hospitality and travel company with a strong portfolio of ambitious brands and ambitious goals. And so. Carlson and Rezidor have enjoyed a long. operating and developing the Carlson brands Radisson Blu and Park Inn by Radisson across Europe. next step in leveraging the strengths of two great companies to create additional value for all stakeholders.PROFILE OF THE HOTEL TOGETHER WE DELIVER MORE The Carlson Rezidor Hotel Group began in 2012 when two great companies joined forces to leverage their significant synergies and go to market to do business together: Carlson Hotels. Carlson is Rezidor's majority shareholder (50. Rezidor is a publicly listed company at Stockholm Stock Exchange. CREATING VALUE The impressive size of the Carlson Rezidor Hotel Group's worldwide footprint unlocks significant value creation opportunities related to:     The global management and development of its brands The ambitious development of its revenue generation engines The leveraging of global purchasing opportunities People development on a global basis 23 .

the Carlson Rezidor Hotel Group aims to generate more than USD 400 million in additional revenue and a RevPAR Index increase of more than nine points by 2015. heritage. and the Carlson symbol on top of the logo represents important values such as relationships. innovation and service. The chosen logo of the Carlson Rezidor Hotel Group symbolizes several key elements of the company: the combination of the Carlson name and the Rezidor name highlights the partnering nature of the relationship. These initiatives include:     A reinforced global sales team The growth of the company‟s brand website Unique revenue optimization tools Partnership projects with travel intermediaries. president and chief executive officer of Rezidor. and Kurt Ritter. president and chief executive officer of Carlson. including Carlson Wagonlit Travel A global steering committee has been established to oversee the value creation areas and the development of the Carlson Rezidor Hotel Group. It is co-chaired by Hubert Joly.The goals of the Carlson Rezidor Hotel Group partnership are to:      Generate attractive financial returns for owners Create value for all shareholders Be advantageously perceived by business partners around the world as one global hotel company Offer compelling and consistent value propositions to the guests Offer global career and development opportunities to the staff Through a number of concrete revenue generation initiatives. 24 .

These investments can and will be leveraged by Rezidor. first class brands Accelerating the growth of Country Inns & Suites By Carlson in key markets Growing Park Inn by Radisson as a winning midscale brand across theaters in key countries Continuing the push in key emerging economies. Underpinning these key principles. and to have segment leading. the group will also maintain a strong focus on the four priority growth initiatives:     Expanding Radisson Blu and Radisson as strong. Carlson. global brands. especially in the areas of the web.AMBITION 2015 / ROUTE 2015 The Carlson Rezidor Hotel Group has ambitious goals: to be the number one hotel company to work for and invest with. is leveraging the relationship with its main shareholder. 25 . its industry leading loyalty program Club Carlson. with added emphasis on midscale These will be achieved by:      Establishing clear. globally consistent. as a publicly listed company. global sales capabilities. Carlson has invested significantly in the last few years in revenue generation capabilities.500 hotels in operation by 2015. in support of its Route 2015 plan. We intend to grow the company's hotel portfolio by at least 50 percent. The partnership with Carlson can help Rezidor capture revenue generation and purchasing opportunities. compelling positioning for each brand Operationalizing the brand promises Accelerating development resources and commitment Winning the revenue battle Building a global team and organization Rezidor. reaching at least 1. relationship with key intermediaries and revenue optimization tools.

OUR CREDO For the Carlson Rezidor Hotel Group. Whenever you dream.000 employees 80 Countries USD 7 billion system-wide revenues 9 largest hotel company in the world 26 . hospitality is more than a market: it represents the essence of what we do for our guests. Wherever you go. We simply like to take care of them and bring them extraordinary service. serve with Caring. Whatever you do. go as a Leader.000 rooms 80. And never. do with Integrity. ever give up. FACT & FIGURE 1. Whomever you serve.319 Hotels 209. dream with your All.

Middle East. Africa  The Rezidor Hotel Group  PPHE Hotel Group  Radisson Edwardian Hotels 27 . we are always looking for great people to join our team. CAREERS We are a people business. operating in 80 countries with more than 80. are among the most recognized and respected in the industry. As one of the world‟s largest hotel companies.000 inspiring people. We aspire to be the number one hospitality company to work for:  Americas  Asia Pacific  Europe.OUR BRANDS The Carlson Rezidor Hotel Group's brands. which include:      Radisson Blu Radisson Park Plaza Park Inn by Radisson Country Inns & Suites By Carlson Hotel Missoni.

28 . CountryInns.  Earn 2 additional Gold Points per U.S.com and ParkPlaza.com. You will earn Gold Points for every eligible reservation that includes your company ID. Join today to access a collection of exceptional benefits.S.000 hotels worldwide.000 Gold Points No blackout dates for award nights on standard rooms Free Internet for Club Carlson members at Carlson Rezidor hotels worldwide A collection of first-class redemption options Elite status starting at 15 nights or 10 stays per year EARNING POINTS When you become a member of Club Carlson for Business you will be issued a company ID.the global hotel rewards program from the Carlson Rezidor Hotel Group. dollar spent on eligible hotel nights.com.com or booked using any of the mobile versions of our web sites. more partners and more places with Club Carlson . Club Carlson offers you:  20 Gold Points® per U. as well as meals and beverages charged to your room.  Earn 8 Gold Points per U. dollar spent on eligible hotel nights worldwide booked online at clubcarlson. dollar spent on eligible hotel nights at Radisson. Country Inns & Suites By Carlson. ParkInn. Radisson. service and privileges at any of our more than 1.com.BENEFITS WITH CLUB CARLSON Enjoy more points. Park Inn and Park Plaza hotels worldwide.S. at participating hotels      Free nights faster starting at 9.

including:   Hotel nights. And your travelers may also continue to earn Gold Points through their individual Club Carlson memberships for the same hotel stays. or stock up on office supplies. vendors. using either Gold Points or Points + Cash Prepaid Cards and Retail Gift Cards (Retail gift cards only available to US members) Vacation savings through CWT Vacations (U./Canadian members only)    Airline miles (when transferred to an individual) Charitable donations to the World Childhood Foundation CO2 Emissions offsets 29 . save your rewards to offset future travel expenses.S. be sure to include your company ID to earn Gold Points for your company. members only) and Club Med (U. Our flexible rewards let you tailor the benefits to meet the needs of your business. REWARDS You decide how to use the points you earn: Reward employees.Whenever you arrange hotel stays for your employees. Club Carlson for Business customers may redeem points for Club Carlson rewards.S. or business partners.

000 points Complimentary Room Upgrade • • • Point Bonus 25% 50% 75% Elite Roll Over Nights • • • Early Check-In/Late Checkout • • • Elite Customer Service Line • • • In-Room Welcome Gift • • Room Availability Guarantee 72 hrs 48 hrs Free Continental Breakfast (Restaurant only) • Global Concierge • 30 .S.S. dollar spent on Food and Beverage charged to your room • • • • Hotel Redemption Offers (Standard. dollar spent on Room Revenue • • • • Earn 20 Gold Points per U.Benefits Red Silver Gold Concierge Not a member? Sign up 15 Nights/10 Stays Per Year 35 Nights/20 Stays Per Year 75 Nights/30 Stays Per Year Earn 20 Gold Points® per U. Points + Cash) • • • • Partner Redemption Offers (Airlines. Prepaid Cards) • • • • Free Internet* • • • • Online Booking Points Bonus 1.000 points 3.000 points 2.000 points 2.

Michael John Baker (. 31 . Because boundaries are blurring. Advertising is the major ATL activity and all other form of promotions except direct marketing falls below the line. where the advertising agencies were paid differently from those who undertook promotional activities other than advertising. PR. In common. Both these refer to the nature of promotional activities done by companies.MARKETING PRACTICE Marketing Funda : Above The Line & Below The Line Above the Line (ATL) and Below The Line (BTL) are the two most commonly used terms in marketing. According to Mr . consumer promotions. Below The Line promotions include sales promotions. Direct Marketing how ever could not be fitted into both these jargons and hence is kept stand alone. Now we see consumer promotions heavily advertised in mass media. the term came into forefront in 1954 through the practice of Proctor and Gamble. Frankly there is no need for such a hypothetical boundary and classifications like ATL and BTL. events . so the LINE is actually non-existent. Both ATL and BTL jargons does not form a part of the core marketing concepts hence you will not find a clear academic definition in marketing text book. The current developments that are happening in the media space makes such jargons highly irrelevant. The simple and most common definition for Above the Line promotions is that ATL refers to all promotional activities done by companies through mass media. Marketers began to delineate activities other than advertising as a separate marketing practice called Below the Line Promotion. point of purchase promotions and all those unconventional tools that marketers adopt. Events are highly publicized using advertising.

It differs from BTL advertising. The term comes from top business managers and involves the way in which Procter & Gamble. print. Advertising agencies made commission from booking media (Television. which uses unconventional brand-building and promotional strategies. and having short duration. was charged for its media in the 1950s and 1960s. The recent ZooZoo campaign of Vodafone cannot be bracketed along ATL and BTL because the campaign has already become viral with many blogs writing about it. Above the line sales promotion ATL is a type of advertising through media such as television. telemarketing and printed media (for example brochures) – and usually involves no motion graphics. The campaign was designed to be viral.For example a viral video in You tube which is watched by millions can be theoretically put as a BTL but it is reaching even more people than the traditional media like TV and print. cinema. flyers. point-ofsale. such as direct mail. one of the world‟s biggest advertising clients. It is efficient and cost-effective for targeting a 32 . cinema.[1] It is much more effective than when the target group is very large and difficult to define. sales promotions. press. This type of communication is conventional in its nature and is considered impersonal to customers. out-of-home and magazines). Below the line sales promotion BTL sales promotion is an immediate or delayed incentive to purchase. As below the line had no media involvement there was no commission to be made for the advertising agencies. The accountants thus labeled the different media ATL and BTL depending on where it would sit in the balance sheet and profit and loss accounts (ATL where they made a profit and BTL where they did not) Since then. radio. and Out-of-home to promote brands or convey a specific offer. models have changed and clients are no longer charged for their media in that way. radio. expressed in cash or in kind.

BTL is a common technique used for "touch and feel" products (consumer items where the customer will rely on immediate information rather than previously researched items). In other words. by definition. BTL techniques ensures recall of the brand while at the same time highlighting the features of the product. Another BTL technique involves sales personnel deployed at retail stores near targeted products. in. and having only a short term or temporary duration. This technique may be used to generate trials of newly launched products. Below the line advertising typically 33 . display units. public relations and sales promotions for which a fee is agreed upon and charged up front. make it difficult to gauge consumer-response. most commonly direct mail and e-mail. but also for industrial goods. expressed in cash or in kind. Examples include tele-marketing. except at the time of sales. road shows. there has been a need to find out more effective and cost efficient ways to communicate with the target markets. This has led to a shift from the regular media based advertising. promotions. below-the-line sales promotion is an immediate or delayed incentive to purchase. BTL services may include those for which a fee is agreed upon and charged up front. not only those involved in FMCG products. even non-media advertising. It uses less conventional methods than the usual ATL channels of advertising. refers to forms of non-media communication.shop and shop-front activities.limited and specific group. The terms "below the line" promotion or communications. etc. typically focusing on direct means of communication. These may include activities such as direct mail. Below the line sales promotions are short-term incentives. With the increasing pressure on the marketing team to achieve communication objectives more efficiently in a limited budget. Below the Line uses less conventional methods than the usual specific channels of advertising to promote products. It helps marketers establish one-to-one relationship with consumers while mass promotions. Below the line promotions are becoming increasingly important within the communications mix of many companies. often using highly targeted lists of names to maximize response rates. than Above the Line strategies. largely aimed at consumers. services.

croissant. HOTEL TARIFF PLANS The various tariff patterns followed by hotels have come to be identified with the areas where such patterns originated . Continental plan. near the shelves of targeted products.focuses on direct means of communication often using highly targeted lists of names to maximize response rates. with butter or preserves like jam. CONTINENTAL PLAN: The room tariff includes continental breakfast along with the room rent . American plan. etc.hotels charge their guests according to the European plan. In addition. More recently. agencies and clients have switched to an 'Integrated Communication Approach. if a pen manufacturer is going to promote its product.' BTL is a common technique used for "touch and feel" products . jellies and marmalade. it may take the ATL route. beverages like tea or coffee with or without milk. breads like toast. but if a company manufactures computer UPS. 34 . BTL techniques ensures recall of the brand while at the same time highlighting the features of the product. for example. Say. Bed and Breakfast meal plans .etc. These young women convince customers visiting these shelves about the better aspects of their brand compared with others. Trained sales personnel. it will certainly take the BTL route. This is ideal for new launches as it generates trials. often young women. are deployed at Retail Stores. But if the target group is limited and specific. it is always advisable to use BTL promotions for efficiency and cost-effectiveness.all other expenses would be paid by the guest as per the actual use or consumption. EUROPEAN PLAN: The tariff consists of room rate only . as the target group is very limited and specific.consumer items where the customer will rely on immediate information rather than previously researched items.A continental breakfast includes a choice of fresh or canned juices. above the line is much more effective when the target group is very large and difficult to define. which if successful result in repeat sales.

the company announced their "Route 2015 Strategy" – a number of initiatives to improve the group's EBITDA margin. partly through achieving more synergies with our partner and brand owner Carlson. The menu for the food and beverage is fixed. In the current macroeconomic situation. The tariff includes all meals(b/f. MODIFIED AMERICAN PLAN: It is also known as half board.AMERICAN PLAN: It is also known as en-pension or full board. cornflakes or other cereal. lunch and dinner)along with room rent. assuming that market RevPAR growth will be in line with inflation.sliced bacon or sausages. sliced bread or toast with jam /jelly/butter. the targeted approach includes growing the group's fee-based hotel portfolio and cost savings. and I feel confident we will be able to improve our underlying margins over the next few years while continuing to pursue our asset-light growth strategy. Besides different revenue initiatives. American breakfast generally includes most or all of the following :two eggs (fried or poached). Rezidor's plan will focus on several targeted areas which combined are expected to push the margins by 6 to 8 percentage points by 2015. Our main focus is improving profitability both in absolute terms and relative to the industry. One important element is to put stronger emphasis on Revenue Generation. pancakes with syrup. The company has also established a 35 . we have to focus on what we can control ourselves. At the Rezidor Hotel Group's Capital Market Day in London in December 2011. STRATEGY Rezidor announces Route 2015 Strategy – plan to expand margins by 6-8 points. coffee/tea or orange/grapefruit juice. The tariff consists of breakfast and one major meal (lunch or dinner) along with the room rent. BED AND BREAKFAST PLAN (B&B) OR BERMUDA PLAN: The room tariff includes American breakfast along with the room rent.

36 .separate Asset Management function in order to optimize the existing portfolio of leased assets. to increase profitability and to reduce the leverage of the company.

Under development as of 31 Dec 2011 Rezidor Totals Radisson Blu Park Inn by Radisson Hotel Missoni Other Number of hotels 100 52 43 5 0 Number of rooms 22. Hotels/rooms in operation The number of hotels/rooms operating under any of our brands.937 858 0 37 .766 49. In operation as of 31 Dec 2011 Rezidor Totals Radisson Blu Park Inn by Radisson Hotel Missoni Other Number of hotels 325 209 109 2 5 Number of rooms 70.590 20.244 7.039 13.540 305 331 Hotels/rooms under development (pipeline) The number of hotels/rooms officially signed with no condition precedent due to open within the next three to four years.KEY PERFORMANCE INDICATORS We use a number of key performance indicators (KPIs) to measure the performance of our business and report on them quarterly.

RevPAR Revenue Per Available Room: Rooms revenue in relation to rooms available. 38 .Occupancy Number of rooms sold in relation to the number of rooms available for sale.

The EBITDAR margin is EBITDAR as a percentage of Revenue. food & beverage revenue. EBITDAR and EBITDAR Margin Operating profit before rental expense and share of income in associates and before depreciation and amortisation and gain on sale of shares and of fixed assets and net financial items and tax. fee revenue and other non-hotel revenue from administration units).Revenue All related business revenue (including rooms revenue. 39 . other hotel revenue.

MARKETING STRATEGY Direct Marketing The direct marketing is handling by their PR agency.EBITDA and EBITDA margin Operating profit before depreciation and amortization and gain on sale of shares and fixed assets and net financial items and tax. They will buy select targeted list of corporate companies and send them information about Good Hotels. Website Marketing Strategy The main website marketing strategy hinges upon making sure all major travel sites list hotels which comes under Carlson Rezidor when customers search for hotels in our area. 40 . The EBITDA margin is EBITDA as a percentage of Revenue.

Just make sure you give us that ID when you make a qualifying reservation and you‟ll earn Gold Points for every eligible reservation that includes your company ID. 41 . When you become a member in Club Carlson for Business. you will be issued a Company ID.Sales Plan Our sales plan hinges upon our sales strategy. or business partners. be sure to include your company ID to earn Gold Points for your company. As long as we follow the plans laid below we should be in good shape. sales process and. vendors. We need to develop a relationship with the companies listed in our Sales Account Plan. prospecting plan. Whenever you arrange hotel stays for your employees. Sales Strategy Loyalty Programme sales strategy hinges upon repeat visits. as well as amenities. as well as actively generate new accounts by soliciting first time corporate visitors. And your travelers may also continue to earn Gold Points through their individual Club Carlson memberships for the same hotel stays. It will be important to remain competitive on price.

Chapter-4 RESEARCH METHODOLOGY 42 .

I use Quantitative research method as it emphasizes on quantification in the collection and analysis of the information. qualitative and quantitative research method. In order to get reliable results it is necessary to study relatively large sample group and use a computer to analyze the collected information.RESEARCH METHODOLOGY When conducting a research there are two ways of approaching. DATA COLLECTION TECHNIQUES The sources of data includes primary and secondary data sources. which is collected and compiled from different sources and are used in research for this study. The aim is to gather numerical evidence where conclusions can be drawn from or they can be used to test hypotheses. The secondary data include material collected from:  Newspaper  Magazine  Internet  Friends 43 . Secondary Sources: The secondary data is data. Primary Sources: Primary data is collected by survey. The information is derived from questionnaire surveys. secondary sources and from observation involving counts.

interviewer-completed or respondent-completed. These are called 'tools' or 'instruments of data collection. They are ideal when a large sample group is needed. I used respondent-completed method for filling the questionnaire.DATA COLLECTION INSTRUMENTS The various method of data gathering involves the use of appropriate recording forms. Collection Instruments  Questionnaire  Observation Questionnaire surveys can be done in two different ways. Ideally these questionnaire surveys consist primarily of “closed” questions that can be answered easily by only ticking a box. “Open ended” questions should be avoided in respondent-completed questionnaires for they usually receive a low response. the questions are read by the respondents themselves and they also answer the question by filling the answer on to the questionnaire. The aim of the questionnaire is to research and gather information from the people on how well they think marketing is being done in the hotel and how they would improve it. Respondent-completed questionnaires are often used in surveys done for example through the Internet or by mail. When the questionnaire is being completed by the respondent. 44 .

Chapter. INTERPRETATION AND RESULTS 45 .5 DATA ANALYSIS.

The main shopping areas like shopping malls in Gurgaon. Excellence of staff Feedback Very Good Good Percentage 80% 20% 46 . 2. Location of the all hotels under Carlson Group. For ex. South Extension market and Vasant Kunj are located nearby. The hotel is located next to the Gurgaon toll on the National Highway. very good Interpretation: 100% of the respondents saying that location is the main advantage of the hotel under Carlson Group. giving easy access to both Gurgaon and Delhi.Data Analysis and Interpretation 1. The Radisson Blu is the closest hotel to Delhi International Airport and is 10 minutes from the domestic airport.

3 47 . Physical facilities Feedback Good Very Good Percentage 26. And the rest 20% saying the excellence of the staff is good. 3.90 80 70 60 50 40 30 20 10 0 Good Very Good percentage Interpretation: 80% of the respondents think that the hotel staff‟s have very good excellence.7 73.

7% feels its good 4.4 66.6 48 .80 70 60 50 40 30 20 10 0 Good Very Good percentage Interpretation: The 73. Safety Facilities Feedback Good Very good Percentage 33.3% of the respondents feels that the physical facilities of the hotel is very good. And the rest 26.

5.4% feels that the safety facilities are good in the hotel. The rest 33.6% of the respondents are satisfied with the safety facilities in the hotel. Cleanness & Comfort ability of rooms Feedback Good Very Good Percentage 80 20 49 .70 60 50 40 30 20 10 0 Good Very Good percentage Interpretation: 66.

Services of the hotel Feedback Good Very Good Percentage 40 60 50 . 6. The rest 20% feels that the cleanness and comfort ability.90 80 70 60 50 40 30 20 10 0 good very good percetage Interpretation: The 80% of the respondents are satisfied with the cleanness and comfort ability of the rooms.

70 60 50 40 30 20 10 0 Good Very Good percentage Interpretation: 60% of the respondents are satisfied in the services provided by the hotel. And the rest 40% feels that the services provided by the hotel is good.3 51 . Value for money Feedback Not upto the mark Good Very good percentage 20 26. 7.7 53.

Reference for the hotel Feedback News paper Magazine internet Percentage 26.6 46.8 52 . And 53.3% are satisfied.7% of the respondents feels the value given for their money is good.60 50 40 30 20 10 0 not upto the mark good Very good Interpretation: The 20% of the respondents are not satisfied with the value provided their money.6 26. 8. and the rest 26.

6% of the respondents come to about the hotel from news paper. 9. and the rest 46.8% from internet. other 26.50 45 40 35 30 25 20 15 10 5 0 News Paper magazine Internet Column1 Interpretation: 26.6% from magazine. Accessibility of reservation system Feedback Good Very good Percentage 40 60 53 .

There must be an innovation in marketing strategy. RESULTS 1. 5. 2. 6. 4. The customer survey says that most of the customers are happy. Event conducting have an important role in profit generation. 3. The hotel industry is in boom. 54 . The location of the hotel is the main advantage for the hotel. Effective marketing can raise the business of the hotel. And the rest 40% feels its good.70 60 50 40 30 20 10 0 Good Very Good perentage Interpretation: 60% of the respondents says they are satisfied with the reservation system.

6 CONCLUSION AND SUGGESTIONS 55 .Chapter .

The hotel can more concentrate on direct marketing and web marketing. hospitality industry is in a booming stage.CONCLUSION On the basis of overall study on Hotel Industry it s found out that the hotel. These problems could be overcome easily by revising marketing strategies and also there should be effective direct marketing SUGGESTIONS 1. The income has generally generated from tourism and from Corporates as the business meetings is generally fixed in top hotels so in this way Hotel Industry is growing. Direct marketing must be more efficient. 56 . Tour Packages should be introduced. Marketing strategy should be revised. But the challenges confronting the industry segment are giving it a low customer base. I was really surprised to see during my study that the hotel industry is really growing even if it has some challenges like any other industry. It will surely help to increase the business of the hotel. 4. No doubt that Hotel Industry growth towards the progress of economy is positive. And it should concentrate to give more value for the customers money as some of the customers feels that value for money is not upto the mark. 3. Prices should be rescheduled 2.

APPENDICES 57 .

clubcarlson. MAGAZINES (For Tourists) 2. INTERNET SITES www. NEWSPAPER 3.com www.com 58 .carlsonrezidor.BIBLIOGRAPHY 1.

QUESTIONNAIRE 1) How do you rate the location of all hotels under Carlson group? a) Not up to the mark c) Good b) Average d) Very Good 2) How do you rate the Excellence of the staff? a) Not up to the mark c) Good b) Average d) Very Good 3) How do you rate the physical facilities in the hotel (eg. building. etc)? a) Not up to the mark c) Good b) Average d) Very Good 4) How do you rate the safety facilities in the hotel? a) Not up to the mark c) Good b) Average d) Very good 5) How do you rate the cleanness and comfort ability of rooms? a) Not up to the mark c) Good b) Average d) Very good 59 . signs. furnishing of room. lighting.

6) How do you rate the services of the hotel? a) Not up to the mark c) Good b) Average d) Very good 7) How do you rate the value for money in hotel? a) Not up to the mark c) Good b) Average d) Very good 8) How do you come to know about this hotel? a) News paper c) Internet b) Magazine d) television 9) How do you rate the accessibility of reservation system? a) Not up to the mark c) Good b) Average d) Very good 10) What suggestions do you want to make? 60 .

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