Dr Manjusmita DashDepartment of Business Administration

Utkal University

Contents Definition

Introduction

Classification of hotel

Perceptual brand mapping

ITC hotel

Strategies

Service marketing

Service triangle

SWOT

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Definition

The primary purpose of hotels is to provide travelers with shelter, food, refreshment, and similar services and goods, offering on a commercial basis things that are customarily furnished within households but unavailable to people on a journey away from home.

Introduction

1. 1.The Hotel Industry originated in the 6th century B.C.

2. 2.It is one of the oldest endeavor.

3. 3.The earliest inns where just large halls where travelers slept on the floor along with the animals on which they travelled.

4. 4.These conditions prevailed for hundreds of years until the mode of travel changed.

Classification of hotel

Market Segment

• Economy / limited services hotels

• Mid Market Hotels

• All suite Hotels

• Luxury / Deluxe Hotels

According to SizeSmall Hotels (150 rooms)

Medium Hotels (up to 299 rooms)

Large Hotels (up to 600 rooms)

Extra Large Hotels (above 600 rooms)

According to Star

One Star

Two Star

Three Star

Four Star

Five Star

Five Star Deluxe

Level of Services

World Class Services : *luxury / Five Start hotels*target top business.*private dining facilities .

Mid Range Services : *3 to 4 star hotels *target the travelling public *does not provide elaborate service

Economy / Limited Services Hotels/Budget: *comfortable , safe , inexpensive rooms * appeal primarily to budget minded travellers

Ownership and Affiliation

Independent /Boutique hotels : *offer highly personalized accommodation *The Delhi Panchavatti, Goa

Chain Hotels: * A collection of group of hotels operated under a specific brand name * Taj Group of hotels

Franchisee Hotels: * Brand operates the hotel*Taj hotel group subsidiary that manages Ginger Hotels.

Perceptual brand mapping of Indian hotels

ITC

RECEPTION

Spa

Bedroom

Introduction to ITC hotel ITC Limited entered the hotels business in 1975

ITC hotels currently owns and operates 100 hotels in 75 destinations.

Slogan: “Responsible luxury” USP :Five star hotels inspired by Indian heritage India's second largest hotel chain They show our heritageThe group today operates under different brands:

ITC Luxury Collection Hotels

Welcome Hotel Sheraton Hotels

Fortune Hotels

Welcome Heritage

Ω ITC Hotel Maurya Sheraton & Towers, New DelhiΩ ITC Hotel Grand Maratha Sheraton & Towers, MumbaiΩ ITC Hotel Sonar Bangla Sheraton, KolkataΩ ITC Hotel Grand Central, MumbaiΩ ITC Hotel Windsor Sheraton & Towers, BangaloreΩ ITC Hotel Kakatiya Sheraton & Towers,Hyderabad Ω ITC Hotel Park Sheraton & Towers , ChennaiΩ Welcome Hotel Rajputana Palace Sheraton, JaipurΩ Welcome Hotel Chola Sheraton, ChennaiΩ Welcome Hotel Mughal Sheraton, AgraΩ Welcome Hotel, New DelhiΩ Welcome Hotel Rama International , AurangabadΩ Welcome Hotel , VadodaraΩ Welcome Hotel Grand Bay, Visakhapatnam

ITC Hotel Properties

Segmentation

•High end travelers•Global travelers• Upscale segment

Targeting

•Families•Couples from both

Indians and foreigners

•Business travelers

Positioning•Warm &

comforting five star luxury experience

7 P’S of Service mix

Product(services offered)

Room bookings

Butler service

Wi-Fi internet

SPA & Swimmin

g pool

Meeting rooms/

Conference rooms

Restaurants & Bars

Meetings and

Luxury events

Gymnasium

Price

Follow premium pricing strategy i.e.chargedaccording to facilities.

Charges vary from hotel to hotel.

Pricing is the only mix which generates a turnoverfor the organization.

Rent for basic rooms= 8-10k per room/ night

Place

Promotion

Ω Promotion through FMCG goodsΩ Media reports and media releasesΩ Concept promotionΩ Social service projects Ω Travel assistantsΩ Hotel directoriesΩ Trip advisorΩ Restaurant magazinesΩ Luxury travel magazineΩ Websites -eg.burrp.com

People

Ω ReceptionistsΩ Bell boysΩ Laundry servicemenΩ ButlersΩ Room serviceΩ ManagersΩ CleanersΩ Assistants for guestsΩ Chefs Ω Waiters etc

Process

Guest booking

Check in

Stay in hotel

Consuming services

Payment

Check out

Service process is the way in which a service is delivered to the end customer.

Physical evidence

Phones

Nice music

Hotel lobby

Before & after sale service

Restaurant

Furnished rooms

LOBBY

SERVICE MARKETING

Services marketing is marketing based on relationship and value. It may be used to market a service or a product.

SERVICE MARKETING

SERVICE DEPARTMENTS

FOODS & BEVERAGES

Pie chart of service

70%

22%

8%

Sales

room sales foods beverages

Service departments

Revenue collected from the room sales constitutes to 70 of the total sales of the hotel.

MAJOR REVENUE PRODUCING DEPARTMENTS

ROOM DIVISION :

(a)Front Office

(b)Reservation

(c)House keeping

(d)Uniform

(e)Telephone

Service flower

Core

Information

Consultation

Order Taking

Hospitality

Safekeeping

Exceptions

Billing

Payment

Foods and beverages

ΩQuick ServiceΩTable ServiceΩ Specialty RestaurantsΩ Coffee ShopsΩ BarsΩLoungesΩ ClubsΩ BanquetsΩ Catering Functions⇒Wedding,Birthdays

SERVICE TRIANGE

INTERACTIVE

“Making the promise”“Enabling the promise”

“Delivering the promise”

ADVERTISING

SALES PROMOTION

PUBLIC RELATION

MOTIVATION

TRAINING

VERTICAL

COMMUNICATION

HORIZONTAL

COMMUNICATION

• Flagship hotels division of ITC Hotels• Awarded best employer in Asia in hospitality sector• Association with hospitality giant Starwood Hotels• High brand recall and popularity• Exclusivity and innovation in services with over 100 hotels pan India• Business as well as leisure hotel chains like ITC - Luxury Collection Hotels

Strengths

• Limited global presence as compared to some other leading hotel chains• Huge number of competitors means limited market share

Weakness

ITC

• Growing market and tourism industry• Foreign Tourists arrival constantly growing• Novel traveling concepts like Ecotourism, Medical Tourism

Opportunity

• International chains like Ritz Carlton, Novotel are entering India• Economy fluctuations affect tourism.

Threats

• Group comprises 93 hotels in 55 locations across India with an additional 16 international destinations

• Employee strength over 13000 people• The perfect experience of Indian luxury living• Employee retention due to good brand image• Considered to be the most premium hotel chain in India• Top-of-the-mind brand recall

Strength

• Limited market share due to tough competition from international and domestic players means

• Terrorist attacks left a question over the security

Weakness

TAJ

• Introduce better membership plans• Improve hygiene standards• Upgrade to international methods of work

Opportunity

• Other heritage properties• Competitors upgrading to international standards of work ethic• Expectation of clients in terms of technological development

Threats