hotel marketing ppt
TRANSCRIPT
HOTEL M ARKETING
Presented By : Govardhan.J.B Haritha..M Janani.S
Introduction
What is a hotel ? A hotel is an establishment that provides
paid lodging on a short-term basis. The provision of basic accommodation, in times past, consisting only of a room with a bed, a cupboard, a small table and a washstand has largely been replaced by rooms with modern facilities, including en-suite bathrooms
and air conditioning or climate control
HOTEL INDUSTRY
Hotels are a major service industry in India, whose significance is undoubted.
The hotel industry in India is one of the fastest growing sector of our economy.
The hotel industry in India seconds China in the Asia Pacific region. It is valued at $23 million (Rs.11976 crores).
About 4.4 million tourist visit India every year, thus the growth prospect is very high. The hotel market is expected to double by 2018.
C LASSIFI C ATION OF HOTELS
Characteristics of Hotel industry as a service industry
Intangibility
Inseperability
Heterogenity Perishability
Hotel Services
SWOT Analysis – Hotel Industry
Strengths
•Natural & cultural diversity
•Demand-Supply gap
•Govt support
•Increase in market share
Weakness
•Poor support infrastructure
•Slow implementation
Opportunities
•Rising income
•Open sky benefits
Threats
•Fluctuation in international tourist arrival
•Increasing competition
MARKETIN G MI X
8 P’s of Marketing
Price
Product
Place
Process
Productivity & Quality
Physical evidence
Promotion
People
P R O D U C T
The primary components of the basic hotel product are accommodation, food & beverages.
The other components may include health facilities, shops, car rental service etc.
Hotel architects all over the world are now designing properties with much flexibility to create multipurpose adjustable rooms feasible.
In the case of a hotel where such flexibility does not exist, the product decision for accomodation will depend entirely on the accuracy of selling rooms to the right type of customers.
• A bed• A private room with bathroomCORE PRODUCT
• Travel desk• Business centre• Gym/ Swimming pool• Entertainment- cable TV• Telephone• Room service • Restaurant & Bar• Baggage service• Reception• Valet Parking• Reservation
SUPPLEMENTARY SERVICES
P e o p l e
Hotel industry involves high contact service
So people form an integral part of service The service personnel need to be
effectively trained to project proper behaviour, attitude, appearance.
The service personnel should exhibit effective emotional labour and bring about customer satisfaction.
Basis of Pricing Strategy
Pricing Strategy
C osts incurred
Value of CustomerC ompetiton
PRICING
Pricing generally tends to follow or conform to pricing standards applicable to the particular city or area.
It is also based upon the pricing strategy followed by the competitors.
Hotel pricing suffers from a large degree of lack of flexibility.
PLACE OR DISTRIBUTION
Hotel industry relies on interdependence with other industries serving tourists, and transportation industry (airlines, railways, roadways, shipping lines), travel agents and tour operators.
Franchising is seeing a rapid pace of development, so a food franchisee can assure a certain level of business.
PROMOTION MIX
Promotion
M ix
Advertising
Sales Promotion
Direct Marketing
Travel workshops
Direct Mail
Public Relations
PROCESS
It refers to procedures, mechanism or set of activities by which services are consumed.
As an element of marketing strategy, its necessary to smoothen the customer management processes to deliver excellent hassle free sevice.
PRODUCTIVITY OR QUALITY
Above all, in a hotel industry the quality of service provided is of highest important.
The quality of service in hotel industry is an important factor for successful business.
Only a high quality service can gain repeated customers to the hotel.
High quality service can help in competitive positioning.
PhysIcal Evidence
Physical Evidence is the element of service mix that allows the customer to make judgements about the organisation.
It holds the power to tangiblise the intangibles
Truly, physical evidence in hotels and restaurants speak louder than words.
In a hotel, physical evidence may refer to its location, signs and logos, styles, furniture, colours, lighting, clean air, reception etc.
MAJOR PLAYERS
Public sector players:
Hotel Corporation Of India
ITDC Hotels
Private sector players:
ITC Hotels
Indian Hotels Company Ltd.(The TAJ Hotels Resorts & Palaces)
Oberoi Hotels (East India Hotels)
Hotel Leela Venture
Asian Hotels Ltd.
Radisson Hotels & Resorts
Taj Groups
Hotel
Introduction
• Taj Hotel established on December16, 1903.
• Taj Hotels resorts &places comprises 57 hotels in 40 location across india.
• 18 International Hotels in the Malaysia,Australia.UK,USA,Sri lanka, Africa.
• Taj is recognised as the premier Hospitality provider.
• Innovator in dining:- Taj was the first to introduce thai,Italian ,Mexican into the country.
Vision• Apart from strengthing our position in the domestic market. We have adopted a vision to make Taj brand more popular in the International. The only way to do it is to either acquire premium hotels or enter into management contracts.
• Embrace talent and harness expertise to leverage standards of excellence in the art of hospitality to grow our international presence.increase domestic dominance and create value for all stakeholders.
M ission
A higher emphasis was placed on the business segment as the profits are higher (this market being less price-sensitive) as compared to the luxury segment. There was a proliferation of the Taj Presidency hotels not only in new cities, but also smaller towns.
The action plan is more opportunities, adding to and complementing the brand
Services offered • Health & Fitness facility to its Guests.
• Latest cardico vascular machines, strength-training equipment.
• Spa also includes steam rooms &sauna,specialized treatment rooms.
• swimming pool, Gardens, Waterfall
•The beauty saloon of the Taj hotel offer a wide range of beauty and hair treatment for men &women.
The TAJ Brand
The brand “Taj Hotels Resorts and Palaces” comprises 58 hotels across India and 17 hotels globally. The hotels are grouped into 3 categories - Luxury, Leisure and Business.
The Taj Luxury Hotels offer lavish accommodation, gourmet specialty restaurants and bars, fitness centres and spas and well-equipped business and banquet facilities.
Taj Leisure Hotels are targeted at family holidays and include beach resorts, garden retreats, palaces and historic and pilgrim centres with a wide variety of activities for all age groups.
Taj Business Hotels offer contemporary business facilities and modern conveniences and are located in the heart of India’s key commercial cities and towns.
SWOT Analysis
Strength :- Brand loyalty C redibility Huge Reputation Patent protection
Weakness :- High cost service Not proper network in semi-
urban Lack of safety measure
Opportunity :- Rising incomeGlobalizationNew Geographical location
Threats :- Fluctuations in international tourist arrivalsIncreasing competitionTerrorism
Suppliers• Many available suppliers•THREAT: LOW
Buyers• Global tourists •Medical tourists•Industrialist people
THREAT: MODERATE
Substitutes• Small lodges•THREAT: HIGH (because of new class, Low otherwise)
Industry Competitors
• Oberoi groups• Leela group of hotels• THREAT: HIGH
Potential EntrantsGlobal hotel groups entry
•THREAT : MODERATE
Porter’sFive ForcesAnalysis
Customer Need• Good Hospitality• Hygiene food and environment
KSFs Technology related:-Used of advance technology in hotel premises.
M anufacturing- related:- High utilization of fixed assets. Quality control know-how. Serving customer according to their specification.
Distribution-related:- Presence of hotel chain at various places. A strong network.
M arketing related:- Breadth of product line and product selection. Personalized customer services. A well-known and well-respected brand name.
• Taj Hotel Resorts and Palaces signed a marketing alliance with Okura Hotels and Resorts of Japan.
• After entering into strategic marketing alliances with Silversea Cruises and Korea's Shilla Hotels & Resorts, Taj Hotels Resorts and Palaces has entered into a strategic marketing alliance with Okura Hotels & Resorts, one of the largest international hotel groups in Japan.
Alliances
Merger & Acquisition
•The Indian Hotels Company Limited (IHCL), which owns and operates Taj Hotels, Resorts and Palaces, acquired the 100-room W Sydney from the Harileela Group for A$36 million. The property was re-launched as BLUE Sydney, a Taj Hotel in February 2 0 0 6 .
Diversification
•The company will launch the first luxury service apartments/residences through its Wellington Mews project later this year, followed by luxury residences at Taj Lands End, Mumbai.
• Indian Hotels plans to have a presence in key international cities such as New York, Los Angeles, Singapore as well leisure destinations, and in fast growing markets like China.
Reasons behind growth of Hotel Industry Growth in the Indian tourism industry has fueled the growth of Indian
hotel industry. 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.
Also India has been ranked as the fourth most preferred travel destination from 167 countries
There is a boom in the overall economy. 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. Thus, the increase in the need for accommodation has hugely
increased the demands for hotels which in turn has boosted the growth of the hotel industry in India.
The future growth Hospitality experts believe that the Indian hotel industry will witness
higher than usual growth in the coming peak season. The good times for the Indian hospitality industry are here to stay, with top-end hotels experiencing high room occupancy rates even in the lean season.
“ The lean season has been exceptionally good for us. Our room occupancy rate has been around 89 per cent and we are looking at over 95 per cent occupancy for the period September to December,” says Kapil Chopra, general manager, Trident Hilton, Gurgaon.
There was an increase of 15 % in the number of international tourist arrivals in India and 14 % in the foreign exchange earnings in the first quarter of 2006 as compared to the same period last year.
The non-luxury segment in particular has been perking up with more and more investors spotting the demand supply imbalance, surge in domestic travel and growth in spending among middle-class Indians.
Conclusion
The outlook for the hospitality market in India is optimistic .
The thriving economy and increased business opportunities have acted as a boon for Indian hotel industry.
Hospitality organizations will have to find alternative avenues to attract and hire employees, and have policies and practices in place to retain quality employees.
Thank You