hotelserviceindustry_grp16

8/3/2019 HotelServiceIndustry_Grp16

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ROLE OF TECHNOLOGY IN

SERVICES INDUSTRY

HOTELS & MOTELS

Presented by:

Apurva Agarwal| Dheeraj Arora| Gagandeep| Harish Kumar

Group #16IM-17, Sec A Service Operations

Management


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Hotel Industry

The modern era of the hotel industry saw its beginnings in1794 New York where the first ever hotel was built.

History has proven that the success of this industry haslargely to do with two factors, location and innovative

integration, the combination of these two has created amargin between the larger chains and those who operate ona smaller scale.

Soap and locks on doors were the innovation for their day.

Strategic placement and product differentiation once againguide the success of this industry.

Hotels in India are broadly classified into 7 categories(fivestar deluxe, five-star, four star, three star, two star, and one-star and heritage hotels) by the Ministry of Tourism,

Government of India, based on the general features and


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Products

Rooms : The rooms in hotels are based on the Category ofthe hotel. The facilities in the rooms are based on the type ofhotel and price of the rooms are based on the type andfacilities provided in the room.

Conference Rooms: The conference rooms are provided byhotels for the meetings and other requirements as per therequest by the customers. The price depends on the facilities,space and time utilized.

Banquets & Halls: Banquet halls are provided by hotels forparties and functions. These halls provide extra revenue forthe hotels.

Restaurants & Bar : Along with the rooms hotels providerestaurants and bars which are charged separately. This adds

revenue as well as a facility for the customers who are


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MARKET SEGMENTATION

Mid Market Segment 3 and 4 star hotels

Heritage Hotels 1 and 2 stars

Budget Segments Forts and Palaces

Others

Rack Rates

Consortia Rates

Corporate RatesGroup Rates

Weekend Rates

Promotional Rates

Pricing Strategy


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In the hospitality industry, technology represents one of thestrongest forces for change, while having had a significantimpact on brand marketing.

Hotel reservation systems have been shifting from voice toelectronic Global Distribution Systems and are now on theverge of consumer access via the Internet.

The increasing role played by the Internet should slowly affectbooking patterns in the future as inexpensive consumeraccess to hotel product becomes available. This, of course,has potential implications for the benefits associated with thebranding of hospitality products.

IT Contribution to the hotel

Industry


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1. Property Management System

Complete Reservation Module Comprehensive guest history and mail merge

Dynamic rooms and availability chart

Complete folio control

Unlimited number of folios per guest

Concierge and information Sophisticated user defined packages and plans

Group reservations with flexible number of room types, room guests,plans and status

Unlimited no. of tariffs and daily rates tables in any currency

Dynamic tape chart

Housekeeping and room maintenance Automatic or semi-automatic night auditing procedures

Thousands of report plus and advanced report generator

Multi-currency payments, charges and invoices

Full management of VAT and other taxes suitable to any countrys laws

Fully interfaced with all leading PABXs, E-locks and Pay-TV systems


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Most deluxe hotels deploy Revenue enhancement\YieldManagement application. Keeping the manual track of a bulkroom inventory, looking at the future booking trends andcalculating the potential room rate manually is too tedious a

task.

This job is eased by Revenue enhancement\YieldManagement application as systems looks into currentbookings, past history, future booking trends and variousevents (repetitive and non repetitive in nature) to calculatethe best possible rate at which a guest room can be sold. Italso prompts the best choice to be picked up from the bucketof market segments to maximizing revenue i.e.-whether toaccept a group reservation or accept FIT-Free IndividualTraveler booking in a given scenario.

2. YIELD MANAGEMENTAPPLICATION


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2. YIELD MANAGEMENTAPPLICATION

"Yield Management" objective is to manage the productinventory (seats on a given flight, rooms for a given night) insuch a way as to maximize revenue.

Yield management (or revenue management) is an economicdiscipline appropriate to many service industries in whichmarket segment pricing (price differentiation) is combined withstatistical analysis to expand the market for the service andincrease the revenue "yield" per unit of capacity.

It is the set of demand forecasting techniques, optimizationmodels, and implementation procedures which collectivelydetermine which reservation requests to accept and which toreject in order to maximize revenue.


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Need for Yield ManagementApplication

Market Segmentation: Demand can be segmented intobusiness and pleasure segments using discount raterestrictions.

Fixed Capacity: Hotels have a fixed number of rooms andcannot add 100 rooms when a major convention is in town.

Perishable Inventory: Hotels cannot sell last night's unsold

rooms today.

Low Marginal Cost of Sale: The marginal cost of cleaningand making up a room plus incremental supplies and utilities

is low relative to the additional revenue, generated by a unitsale.


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Advanced Sales: Reservations for rooms are accepteddays, weeks and months in advance (even years for majorconventions).

Uncertainty of demand: The demand for hotel roomsexhibits regular seasonal and day-of-week patterns, butcannot be forecasted precisely for any particular night.

Rate Differentiation: Different, demand driven inventorycontrolled rates, combined with segment-specific bookingrestrictions (fencing), are at the core of modern Yield

Management applications

Need for Yield ManagementApplication


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3. E-butler

The guests are given a wireless handheld device to e-mailtheir wishes to their very own personal butler from anylocation.

Now, E-butler application has been developed for iPads,iPhones, Blackberry, etc.

The application sent to guests via a link, after they make a

reservation, allows access to hotels butlers and conciergeteam.


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4. Business and recreational needs

Plasma interactive televisions have though helped hotels inmarketing their services.

Guests business and recreational needs

Additional services like express check out, details about city,tourist spots, shopping venues etc.

Various applications loaded on a common server which connectsto set-top of box - additional multifunctional entertainmentfunctions like Games, Music on demand, FM

Guests who dont carry laptop and like to browse Internet fromtheir respective room can browse on these interactive TV withthe help of cordless (infrared) keyboard.


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Thank You !!

hotelserviceindustry_grp16

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