case study on hotel industry

7/27/2019 Case Study on Hotel Industry

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CASE STUDY

On

HOTEL LAKE PARADISE: ROADBLOCKS TO

SUCCESS

Subject: Strategic Formulation

Submitted to: Prof R. Patnaik

Submitted by:

Section F: Group No. 9

Members: Vinayak Goldar( 2012368)

Vineet Nagar(2012369)

Vipin Goel(2012370)

Vishakha Sugand( 2012371)Vishal Golchha (2012372)

Vishal Moonka (2012373)

Batch: 2012-14


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Section F: Group 9 Page 1

HOTEL LAKE PARADISE: ROADBLOCKS TO SUCCESS

About Manali (India)

Manali at an altitude of 2,050 m (6,726 ft) in the Beas RiverValley is a hill station nestled in themountains of the Indian state ofHimachal Pradesh. It is located about 270 km (168 mi) north of thestate capital, Shimla.

Manali is primary attraction for the tourists who want to visit the Himalayas. Rohtang Pass is verymuch popular among tourists. Kullu River nearby also offers opportunities for rafting. The climate in

Manali is predominantly cold during winters and moderately cool during summers.

Tourism in Manali

The landscape here is breath taking. One sees well-defined snow capped peaks, the Beas River with

its clear water meanders through the town. On the other side are deodar and pine trees, tiny fields andfruit orchards. It is an excellent place for a holiday, a favourite resort for trekkers to Lahaul, Spiti,

Bara Bhangal (Kangra), and Zanskar ranges. From temples to antiquity, to picturesque sight-seeingspots and adventure activities, Manali is a popular resort for all seasons and for all travellers.

Introduction of hotel

Hotel Lake Paradise, Manali is a 4 star hotel located on the mountain top of Manali. It was founded inthe year 2002 by VP Chain of hotels. Mr. S. Chandra, chairman VP chain, along with his two brothers

founded this hotel which was a dream project of his younger brother Mr. R. Chandra. Located in thepicturesque valley of Manali, Lake Paradise always had huge footfalls coming its way. Lake paradisewas the first choice of tourists coming from all over India and abroad. Its an ideal place for

rejuvenating for your mind, body and soul from the stress.

Hotel lake paradise has following facilities:

AC/Non AC Rooms & Suites Restaurant Garden Areas Swimming Pool

Vision, mission & values

Vision

To Sustain hotel Lake Paradise as one of Manalis most respected hotel through world classambience, creating growing value for Manalis tourism industry and the hotels stake holders.

Mission

To enhance profitable hospitality services in globalizing environment, developing superiorand sustainable stakeholder value.

Values

Hotel Lake Paradises core values are aimed at creating a customer focused high performancehospitality service which adds value to all its stake holders.
http://en.wikipedia.org/wiki/Beas_Riverhttp://en.wikipedia.org/wiki/Valleyhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/States_and_territories_of_Indiahttp://en.wikipedia.org/wiki/Himachal_Pradeshhttp://en.wikipedia.org/wiki/Shimlahttp://en.wikipedia.org/wiki/Shimlahttp://en.wikipedia.org/wiki/Himachal_Pradeshhttp://en.wikipedia.org/wiki/States_and_territories_of_Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Valleyhttp://en.wikipedia.org/wiki/Beas_River


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Customer focusWe are always customer focused and will deliver what the customer needs in terms of value,quality and satisfaction.

ExcellenceDoing the right things at the right time is our mantra. We shall strive for excellence under anycircumstances.

InnovationWe shall continuously improve and upgrade our processes, services and management

practices in order to deliver the best value to our customers.

Management speaks

MANALI is a hill station Four thousand five hundred feet above sea level, enveloped amidst lushgreen hills, strawberry farms and panoramic valleys is an one hundred and fifty square kilometresplateau.

For Recreation of the body we have Manali's best designed swimming pool for you to take a plungeand work up an appetite. The Jacuzzi is also there to replenish your body with a new vigour. The

children too can splash in their pool.

Enjoy a game of carom board, chess or a set of table tennis at our recreation centre. A cluster ofcottages set amidst 3 acres with swaying trees and soft lush green lawns with an unmatched landscape

designed by famous experts of horticulture.

Each room be it BUDGET or EXECUTIVE (a/c or Non-a/c) have been designed keeping you in

mind. Every room would give you that homely feeling with a touch of modernity which is necessaryin today's hi-tech world.

The management of Hotel Lake paradise believes in the traditional mantra of Athithee Devo Bhava(The guest is an incarnation of god) and we take immense pleasure in providing the best cuisines be itGujarati, Punjabi, Chinese, Italian, Mexican or Bambaiyaa (chaat, pav-bhaji,etc)

Other facilities for local sight-seeing and sports activities are available for the customers.

The WOW TIMES of Hotel Lake Paradise..

The strategic location of it being just half a kilometre away from the mall road of Manali has made itfavourable for the tourists as tourists prefer to be near the market place so that there is ease of goingaround the local areas of the region. At the same time its serenity welcomes people who are there just

for relaxation.

Cost advantages which the firm enjoys is one of the major strength of the Hotel Lake Paradise, beside

that being a well established hotel in that region they already have a good customer base.

Hotel Lake Paradise also provides excellent customer service as Mr. S Chandra and Mr. R Chandrahave had an experience of 10 years in service industry both in India as well as abroad. This has given

them the knowledge to give customers cutting edge service in the competitive industry. This is alsoobserved by having repeat customers and customers through references.

The management also maintains a good relationship with the local tourist guides and travel agentswhich results in enlarging the customer base for the hotel as there are many customers who reach at

their destination and then look for hotels around. Hence good relation with local tourist guides hasenabled them to get customers to their hotel.


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They are well aware about the local conditions, so are able to provide the best possible service in thatregion. The Hotel enjoys very good infrastructure facilities which help them in managing operationseven during any extreme situation, considering the altitude at which it is located.

The WOE TIMES of Hotel Lake Paradise..

On the other hand the hotel suffers from a few hindrances which are costing them a lot at the moment.Some problems did exist from a long time but the management failed to recognise, understand andthus solve.

Firstly, Uttrakhand floods of June, 2012 leaving behind trails of death and destruction of local peopleas well as tourists has created as fear in minds of tourists with respect to all hill stations. Hence, thenumber of tourists was less at all the hill stations during Diwali and Christmas of 2012 as well hasvacation period of 2013. This is a problem not only for Hotel Lake Paradise but all Hotels in Manali.

If we look at internal factors, one of the main problems is the online booking system which is notavailable. When Hotel Lake Paradise was established in 2002, in India people did not prefer to bookhotel rooms online hence they had not paid attention to that aspect but ignoring it till date has affectedtheir occupancy ratio by 20%, the number of foreign tourists staying in their hotel is less compared toother hotels in the same category. The number of Indian tourists looking for and booking hotels onlinehas also increased in the past 4 years. Also, there have not been any major upgradations from itsinception so the newer hotels are coming up with better infrastructure and modern interior for rooms.

The area surrounding the hotel was very beautiful. On the other side of the road facing the entrancewas the river Beas. In the backside of the hotel at the distance was a lake surrounded by the mountainsadding to the look of the hotel, but the land right behind the hotel is now purchased by someone whohas created a mess in that place. It is being used as a dumping ground, this is creating unhealthysituation for Hotel Lake View.

SURVIVAL STRATEGIES

In the wake of dismal internal and external conditions, Hotel lake paradise needs a magic wand toundo all problems. Resting on its past laurels no more seems a way out for this hotel which is onquicksand only to keep sinking unless the foundation is solidified. One cannot gainsay the fact thatHotel lake paradise enjoyed virtual monopoly in initial years of formation. However non-adaptabilityto change became one of the major internal reasons for its woe times. Internal problems to a largeextent can be solved if the hotel makes itself abreast with the latest technology. Quick response to theproblem of pesticide infected food was probably the only silver lining for this hotel which otherwiseis palled by dark clouds.

External problems are unique in the sense that majority of the times one has no control over it.

Entrapped by the recency effect of Uttarakhand natural disaster, people have developed a forbia forhill stations. Such mental state is not within the control of management. However, the hotel industrycan join hands with the tourism department of Himachal Pradesh and try to promote the tourist placesby focusing on safety and other critical issues.

The shabby constructions in the vicinity which pulls crowd away from the hotel can be dealt with in alegalised manner preceded by friendly persuasion. The competitors have only gained ground as Hotel

lake paradise has given them a chance to outdo itself. Proper check of its loopholes can put the hotelback on track and shoo competition away. Propercheck involves the process of Business process Re-engineering and a thorough follow of Kaizen- continuous improvement.


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EXHIBITS

Exhibit.1

SWOT Analysis of Hotel Lake Paradise

Exhibit.2

12 years profit scenario

0

5

10

15

20

2530

35

40

45

50

1 2 3 4 5 6 7 8 9 10 11 12

BOTTOMLINE(FIG. IN LACS)

BOTTOMLINE(LACS)

Strengths

Cost AdvantagesGood customer baseAwareness among local peopleGood relationship with tourist guides and travelagents.Loyal customersMarket share leadershipWell awareness about local situationsGood infrastructure facilities

Weaknesses

Bad communicationDiseconomies to scaleLimited online presenceNot innovativeNot diversified

Opportunities

AcquisitionsSet up tracking campsAsset leverageFinancial markets (raise money through debt, etc)Innovation

Online booking facilityProduct and services expansion

Threats

CompetitionEconomic slowdownExternal changes (Climate, politics, taxes, etc)Exchange rate fluctuationsLower cost competitors or importsMaturing categories, products, or services

Price wars.Unhygienic conditions for keeping food fresh.


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Exhibit.3

Hotels front view

Exhibit.4

Organisational Chart

case study on hotel industry

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