Site Selection factor

for a 5-star hotel. Service Operation Mangement

Vaibhav G Bandekar
M20202096
 5 STAR HOTELS
Classifications are handled by the Ministry of Tourism's Hotel and
Restaurant Association Classification Committee (HRACC).
• PREMEIUM
• LUXURY
• HIGH REVENUE
• HIGH COST
• HIGH COST- CUSTOMERS

o 1903 - Taj Mahal Hotel – MUMBAI – FIRST LUXURY HOTEL IN INDIA- Jamsetji Tata
o OBEROI, VIVANTA
 WHY IS LOCATION SELECTION IMPORTANT

• TO GENERATE REVENUE
• COST OF PROJECT IS TOO HIGH TO FAIL
• TOO MANY STAKEHOLDERS
• RISE TO UNEMPLOYEMENT
 FACTORS FOR LOCATION
Natural factors
Climate, Beaches, Forests, Natural
Touristic Sites, Archaeological Sites,
Historic Structure And Altitude,
Weather Conditions.
Sociological factors
Shopping center Art Centres,
Exhibition Centers,
Open- And Closed-air Sport
Centres, Recreational
Amusement Parks, Food And
Beverage Facilities
Economical factors
Transportation, Distance
from Customers And Supply
Centre, Area And Construction
Costs, Employment And Waging,
Regional Finance Policies,
Regional Rentability
Psychological factors
Local people and their
perception towards visitors and
tourists
Legal factors
Laws and regulations,
Construction permissions,
Height limits, regional
regulations, the historical site
regulations
Agglomeration effects
Utilizing all the benefits of a
site that the businesses
can receive from clustering
 Decision Makers(DM)

• Investors
• Stakeholders
• Consulting firms
• Government bodies
 Location selection process

• Method – Weighted Average

• Assuming 4 DM’s
1.Banks
2.Stakeholder
3. Adviser
4.Government bodies
• Location shortlisted
A. Mumbai – 10 kms from airport
B. Kolkata – near to beach
C. Jaipur – Maharaj fort
D. Agra – 10 kms from Express highway
E. Hyderabad – Diversified area
 Process

DM 1 Factors   A B C D E  
  Natural factors 0.30 82.00 26.00 99.00 96.00 70.00  
  Economical factors 0.94 46.00 48.00 30.00 66.00 14.00 Max score
  Sociological factors 0.73 88.00 74.00 87.00 42.00 97.00 65.90
  Legal factors 0.96 73.00 27.00 86.00 37.00 62.00 Minimum score
  Psychological factors 0.82 17.00 46.00 21.00 65.00 81.00 53.83
  Crowd effects 0.72 46.00 97.00 65.00 48.00 88.00  
   SCORE 4.47 55.70 53.83 59.93 54.82 65.90  

DM 2 Factors   A B C D E  
  Natural factors 0.96 90.00 16.00 97.00 38.00 75.00  
  Economical factors 0.96 48.00 38.00 12.00 51.00 82.00 Max score
  Sociological factors 0.70 84.00 88.00 59.00 41.00 67.00 67.75
  Legal factors 0.57 10.00 48.00 10.00 33.00 33.00 Minimum score
  Psychological factors 0.08 27.00 32.00 87.00 80.00 80.00 43.73
  Crowd effects 0.07 57.00 39.00 45.00 98.00 47.00  
   SCORE 3.34 60.87 43.73 48.46 43.79 67.75  
 Result
DM 3 Factors   A B C D E  
  Natural factors 0.02 41.00 36.00 93.00 46.00 43.00  
  Economical factors 0.57 34.00 46.00 68.00 17.00 62.00 Max score
  Sociological factors 0.95 23.00 37.00 66.00 15.00 65.00 71.75
  Legal factors 0.13 18.00 51.00 54.00 66.00 30.00 Minimum score SITE FINAL
26.19
  Psychological factors 0.46 19.00 48.00 87.00 45.00 81.00
SELECTED SELECTION
  Crowd effects 0.59 44.00 98.00 76.00 29.00 12.00  
   SCORE 2.73 29.10 54.64 71.75 26.19 53.67   DM 1 E
DM 2 E
E
DM 3 C
DM 4 Factors   A B C D E  
  Natural factors 0.20 48.00 96.00 18.00 14.00 70.00   DM 4 E
  Economical factors 0.05 72.00 10.00 62.00 37.00 61.00 Max score
  Sociological factors 0.86 59.00 15.00 94.00 27.00 85.00 68.41
  Legal factors 0.19 41.00 59.00 39.00 24.00 36.00 Minimum score
  Psychological factors 0.71 11.00 37.00 14.00 23.00 58.00 24.97
  Crowd effects 0.04 14.00 99.00 64.00 64.00 46.00  
   SCORE 2.05 39.16 36.11 52.45 24.97 68.41  
 Conclusion

• Business needs to specifies it’s aim and strategy

• Important factor for a business
• Consideration of all factors
• Target customers
• Verified decision makers
THANK YOU