Gall Up Summer Project

8/8/2019 Gall Up Summer Project

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SUMMER PROJECT REPORT

ON

SYNDICATE STUDY OF FIVE STAR &FOUR STAR HOTELS

CUSTOMER SATISFACTION

IILM Institute for Higher Education



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SUBMITTED BY:

GYAN PRAKASH PANDEY

(IILM INSTITUTE FOR HIGHER EDUCATION)

GURGAON



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Certificate (By faculty guide)

Certificate (By industry guide)

Acknowledgement

Executive Summary

Introduction

The Purpose of the Project

Methodology Adopted

Limitations of The Study

History

A Brief About the Gallup Organisation

Corporate History

Gallup HungaryConfidence level graph after gallup surveys

Overview of project

1.1 Vision and Mission Statement

Study of five star & four star hotels

Customer satisfaction

Government policies

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RESEARCH DESIGN

1 Exploratory research

2 Qualitative data

3 Depth interview

4 Questionnaires :

Analysis of questionnaire

Analysis of final conclusion of research

Swot analysis of hospitality industry and their competitor

CHALLENGES FOR THE HOSPIT ALITY INDUSTRY

Conclusion

Recommendation

Annexures

My Experiences

My Learnings

References

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CERTIFICATE ± FACULTY GUIDE

This is to certify that the internship report titled ³syndicate study of five &four star

hotels customer satisfaction´ is a bonafide work submitted by gyan prakash pandey

, under my guidance and support. This report relates to the marketing.stream of

specialization and is original in thought, expression, content and style.

Place: Gurgaon Proff. Monika mor

Date: 30th July 2009 Faculty Guide

IILM BUSINESS SCHOOL



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ACKNOWLEDGEMENT

I take this opportunity to pay gratitude to all the people who have helped me complete this project successfully.

At the outset I would like to thank Miss MONA PANDEY,interviewing manger and MR. S.K

VERMA , Gallup organisation services for giving me the opportunity to carry out the project

work and making this interaction with the company a memorable one.They were a perfect

mentor helping me whenever I was in any trouble relating to the project, be it in terms of getting

an appointment or understanding any terminology during the course of my work. I express my

sincere gratitude and heartfelt regards to them for there exemplary guidance and constant

support.

I record with appreciation the help rendered and the valuable inputs provided by all the countless

people, IT heads and Front desk people in various organizations who took out time despite their

busy schedule to answer my questions as a part of my project. My entire project was based on

the responses from their side and any amount of gratitude expressed will be less to express their

co-operation.

The project would not have been possible if not the constant guidance, monitoring and support

extended by my mentor, Proff. Monica mor. I thank her for all his support, time and adjustmentwith the timings and patience he has shown towards me. , I extended my heart full thanks

to Badal Mukharjee director of IILM institute who gave me to carry out this

project

I also remain thankful to all my friends in DELHI who helped me with the routes of places when

I had difficulty in locating some place; my colleagues in Gallup who made working fun and to

all my well wishers whose names have not been mentioned here but who nevertheless have

contributed and provided me mental support to complete this project successfully.

GYAN PRAKASH PANDEY



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EXECUTIVE SUMMERY

The objective of the project was to find gap between how important various parameters related to

service range ,service support ,customer satisfaction etc .are for the customers and to what extent

is he/she is satisfied with five star &four star hotals and other competitors .four star &five star

hotels like(taj ,obrai) got research carried out through gall up India private limited .to find out

about their customer satisfaction and satisfaction with the customer .and other hotals chain

What they want which type of service quality required by the customer .To take the feed back

from existing customer of the five star &four star hotels to identify areas Of improvement on the

various services provided by the hotels.Evaluate the importance the various parameters related to

the service and their satisfaction withFive star & four star and the other hotels from whom they

are staying .

For this purpose a primary research was conducted in the Delhi &NCR regions.a total sample

size of 30 customers was covered who are stayed in five star and four star hotels .the

questionnaire covers a wide range of issue and it helps in analyzing the information of the

respondents with the customer satisfaction,service quality aspects etc.

For the purpose of this research it was absolutely imperative for us to find out what for us to find

out what was important for customers. This required us to get a detailed questionnaire filled by

The person who had stayed in any five star hotel within the span of last 12 month.all the analysis

in the report is drown out of these questionnaire.

This research will provide five star & four star with the information about what is really

important for the customers and what are they getting from them .i.e to what extent are they

satisfied with their performance. This would help them build new market strategies and improve

Upon their products and services which would ultimately lead to retaining of customer.

INTRODUCTION OF THE COMPANY : -



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Gallup is an enduring, prospering management consulting company that is committed to helpingorganizations improve their business performance and develop better leaders, more productiveemployees, and more profitable customers. Gallup has studied human nature and behavior for more than 70 years. Our purpose is simple: to help organizations and individuals maximize their performance through measurement tools, coursework, and strategic advisory services. Our approach enables us to identify, develop, and implement solutions that align with our clients'visions and strategies. At Gallup, we are just as committed to our employees.

We are in this together. We share beliefs, attitudes, and goals that drive our efforts and makeGallup a meaningful organization. Regardless of our roles, we work hard toward a common goal:creating positive change throughout the world. Our success depends on our associates' greatideas and hard work. Gallup is a living, breathing example of the workplace engagementresearch and consulting we implement in many of our clients' organizations. We hire people whoare a right fit for our company, and we surround them with managers who care about them andtheir development. Our associates decide how successful they will be at Gallup. They developtheir individual career paths and roles based on their unique strengths. We understand that eachassociate is his or her own person, and we respect the talents and abilities each individual bringsto his or her job. We engage our associates and provide them with opportunities to ensure their personal and professional well-being.

In line with our aggressive growth plans in India, we are recruiting a Senior Consultant atMumbai who can drive our customer engagement & customer value practice.

y To create value for the client by assessing their problems & in turn provide a effectivesolution

y To foster organizational change and measure implemented successesy To lead Client Servicing Teams & ensure customer delight towards Gallup solutionsy To provide meaningful consulting insights and actionable recommendations during

presentations to Top Management/ Senior Leadership Team in an client organization



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y To identify and recommend enhanced and new services that answer client¶s businessneeds

y To support the Business Head in assessing the unique client needs & in-turn provide keyconsulting inputs for preparation and delivery of proposal

y To make significant contribution to the Client Servicing Team by achieving revenue,

profitability, quality, speed of delivery and productivity targetsy To effectively manage day-to-day client interactions and internal processes to ensure

perfect completion of client engagements & hence create strong customer engagement

Senior Consultants are experienced, detail-oriented Consultants who lead consulting based,

multi-practice client engagements. They have the courage to make difficult recommendations

and their focus is to grow long-term trusted client relationships. They have proven experience in

leading Market Research/Customer Research or Branding Assignments. Their management and

leadership ability provides direction to teams of professionals; which significantly maximize

team resources. Through strong partnerships, they create organizational change and measure

implementedsuccesses for clients.

The gallup organisation has studied human nature and behaviour for more then 70 years

Gallup employee many of the world µs leading scientists I management economics psychology

and sociology. Gallup performance management system help organisations boost organic

growth by increasing customer engagment and maximising employee productivity through

measuement tool course work and strategic advisory services

Gallup¶s 2000 professionals delivers services at client organisation through the web at gallup

university

Campuses and in 40 offices around the world

Gallup provides

Solution for organisation

Gallup performance improvement system are founded on a proprietary modelation

The gallup path that links every employee contribution to the organisation¶s financial

performance.

To help organisation increase their profit,gallup pffers tool to :



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y Devise and implement an effective organisation performance strategy.

y Provide executive performance coaching for senior leader . Measure and improve

customer engagment.

y Measure and improve employee engagment .

y

Recruit and hire world class performers.y Teach all the emloyee to identify,deploy,and d evolup their strengths.

y Create an objective and easy to use performance evaluation and development syatem.

y Increase the over all impact of brand managment programs.

y Improve marketing strategies through objective,research based ideas and insight.

y Increase sale force effectiveness.

y Gallup has significant expertise in the automotive,bussiness services,education,financail

services ,helth care, hospitality , retail and manufacturing industries.

Soltion for individuals:

Gallup serves individuals through its books,subscrption publication and open enrollment course

of gallup university.



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The Gallup Organization (Princeton NJ USA) is the oldest most accepted and

probably the biggest management consulting polling and market research

company. Gallup's core expertise is in measuring and understanding human

attitudes and behavior. The Gallup Organization in accordance with its mission is

striving in many countries of the world to communicate people's opinions to

governments public institutions and business venturesAs a pioneering polster ,

company founder Dr.gerorge gallup determined that in seeking the truth,that is

the actualwill of the people,his guiding principle would be independence.to

ensure his independence,and therefore his objectivity ,Dr.gallup resolved that he

would undertake no polling that was paid for or sponsored in any way by special

intrest groups such as the republican and democratic parties.adhering to this

princliple,the gallup organization has turned down thaousands of request survey



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form organizations reapresenting every shade of the political spectrum and with

every kind of special agenda.

Historically, gallup has measured and tarcked the publics attitudes concerning

virtually every political,social and economics issue of the day, including highly

sensitive or controversial subjects.although gallup has typically conducted its

polling activity in collaboration with various media organizations and,on

accasion,with world wide association and acedamics institution,these polls have

always been carried out independently and objectively.

This single chosen ethical principleindepnedence has made the gallup name

famous and among the most trusted brand names on earth.synonymous with

democracy and the democratic process.

In the early for 1930s, Dr. gallup was a vice president of young & rubicam In new

York city,and he was the first market research director of an advertising agency.

At young & Rubicam,in addition to his contribution to opinion polling .Dr.Galluporiginated many of the basic methodologies and technical procedure used today

in marketing, advertising and media and audience research.

Dr. Gallup initial break through occurred in 1936, when he correcltly predicted

that frakline Roosevelt would defetal Alfred London for the U.S presidency, this

directly contradicted the Literary digest ,the poll of-record at the time,which

predicted that London,the Kansas governor ,would win in a land slide.with

national news paper syndication of the poll and almost daily refrences in the

press,GALLUP soon became a house hold word.



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Corporate History

RAIN MARKER

Dr.

gallup together with gallup vice president David Ogilvy,who subsequently builtthe advertising agency bearing his name,developed one of the companys most

important business practices --- helping Hollywood make better movies. During

the late 1930s the two man devoluped virtually all of the technical methods used

in the motion picture research.they conducted basic marketing research

concerning the basic movie with scientifically selected audience.

The first global poll

Just before the start of world war II,the gallup organization,with the assistance of the number of noted survey research academic s,established what would

eventually become an association of independent polling organizations

reperesenting almost 50 countries .the galup international research institute hels

annual meeting at which representative of the various affiliates reported and

analysed what the worlds people thought about the multitude of issues that

affected their lives.

Topics that were discussed and analyzed including the dropping of the atomicbombs and other WWII related topics, communism and capitalisim,religion ,the

condition of the family,and world hunger.every nation presented its finding.DR.

gallup had created a sociological first ---- knowing the opinion of people around

the world on virtually all the issues that affected their lives.The core of gallups



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mission is revealed in his own words.If democracy is supposed to be based on

the will of the people, then somebody should go and find out what that will is

DR. gallup as a teacher

He was a gifted scientist.But his greatest talent was probably best described by

his close friend,Jan stapel,founder of the nitherland institute of public opinion

.who stated George was simply the greatest teacher of his time

As with many who have become celebrated world figures, Dr.gallup achieved this

status by developing his strong leader ship ability around his talent s to think and

to teach.

Throughout his life,he remained true to his key strength as a polling scientist anda teacher.

DR. gallup became a renowned world figure whose advice was sought by

presidents,prime minister ,head of the state ,and many of the world influnential

and celebrated thinker and entrepreneurs.his name and his work are referenced

time and again,and he is often cited as one of the most influential Americans of

the 20th

century.

DR. gallup has appered on the covers of many newmagzines.

Most of them are still in place today.

1988:Gallup and SRI



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Following DR. gallups death in 1984,a number of fortune 500 companies

explored the possibility of acquiring the gallup organization.

In October 1988,james Clifton of selection research,incorporated (SRI) in

Lincoln,Nebraska,led what many considered to be the improbable acquisition of the gallup by the employee-owned SRI.The merger occurred after four years of

almost daily negotiations between Clifton and gallups vice chairman,alec gallup .

Clifton was named CEO ,and the new leadership team would embark on what

would become a historic course.over the next decade,the company grew tenfold

in business volume,while expanding into 20 foreign countries.

The SRI name is still used with product grounded in SRIs founding practices

(1969) of conducting structured psychological interviews to identify the talent of

individual who fit a designated position or role in organization.This practice has

continued to serve business, schools, and other institution for more than 30

years.

1990s:Gallup experience its Largest Growth

During the 1980s and early 1990s,corporate management theory was dominated

by the doctrines of quality gurus---DR.W.Edwards demanding,DR. joseph

M. juran ,and Philip Crosby created a whole new industry around total qulity

mangment.this produced a significant opportunity for the GALLUP

ORGANISATION ,which was nearly perfectly equipped to architect the first on

going tracking studies for measuring customer satisfaction .gallup and several

other laeding research organization paved the way for Fortune 500 companies to

measure and track customer satisfaction as consistently and realiably as they had

applied traditional accounting principles.

Gallup expanded its activity from tracking presedential approval to tracking

consumer product and customer service approval.these effort contributed to the

largest period of growth in the company history .during this time ,gallup won its

largest contracts

Gallup Build outthe world



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As a client extended their research effort overseas,THE GALLUP Organisations

leadership concluding that the companys loose,informal network of independent

affiliates ,typically owned by local share holder ,would not serve gallups future

well.this situation was further complicated by the fact that many of the affiliates

had acquired the right to use the Gallup name in their respective countries

.Gallups leadership,therefore,decided to rectify the situation in these nations by

either acquiring the organsations in question or by establishing start up

operation.as of this writing ,The gallup organization owns gallup name operation

in 20 nation and maintain offices in 40 major cities around the world.

As a pioneering survey research company,gallup has fostered the devolupment of

numerous individual who subsequently attained leadership position in

organizations representing a wide range of fields.For example ,at last count,gallup

alumni have become senior executives at 35 survey research companies,as well

as at many of the nations major advertising agencies,public realation firms

,newspaper magazines foundation and acedemics institution.

1192:gallup goes Dailywith CNN and USA today

In 1922 during a time of proliferation of national and local polling

organizations,The Gallup organization produced another major break through by

forming a polling partnership with CNN and USA Today.This partnership made it

feasible to expose the public to poll that were not only accurate but that were

also reported on a more frequent (daily) and more comprehensive basis than ever

before.Gallup and its media partner helped carry out a new mission for polling

while maintaining the highest ethical standard for public opninon journalism in a

democratic society.in the words of DR. gallup If politicians and special intrest

have polls to guide them in pursuing their intrest the voters should have polls as

well.

Gallup built its own television studio with the gallup polls editor in chief ,Dr.Frank

Newreport



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Gallup Hungary ----

(Magyar Gallup Intézet) was founded in 1990 by The Gallup Organization. Gallup

Hungary Ltd. remains the exclusive property of The Gallup Organization and also

carries on its mission.

Based on the more than 60 years worth of expertise and professional

accomplishments accumulated by the US based parent company and using highly

effective research techniques while also taking into account circumstances peculiar

to Hungary Gallup Hungary Ltd. provides its customers with highly accurate and

reliable analyses and findings. Questionnaires and research schedules are diligently

composed by accomplished experts to suit the needs and requirements of

customers. High quality interviews together with careful controlling and strict

standards applied for sampling provide for accurate and reliable findings.

Hungarian companies government agencies and municipalities just like

multinational companies and organizations belong to Gallup Hungary' s clientele.

In other words just about everybody in need of reliable information on public

opinion or market trends in Hungary Eastern and Central Europe will turn to

Gallup Hungary Ltd.

Gallup Hungary Ltd. owes much of its success to the fact that it also supervises

research conducted at other Gallup research facilities in Eastern and Central

Europe. As a result Gallup Hungary Ltd. has amassed a great variety of databases

and diverse sorts of information from outside the borders of Hungary thus greatly

improving the reliability of its analyses.



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The professional and ethical standards maintained by Gallup played a significant

role in establishing its international reputation for objectivity impartiality and

integrity.

The Gallup Education Center is operated in conjunction with the Gallup

International Research and Education Center within the framework of Gallup

Hungary Ltd.

Asf part of its work in the field of education more precisely quality assurance and

quality improvement in education Gallup Hungary Ltd. has created a web site

entitled Quality in Education.

In conjunction with its projects monitoring the quality of public service activities Gallup Hungary Ltd. has launched an online periodical. By furnishing

information Gallup Monitor aims to foster the transparency of public life and

public service activities and provide for the accountability of decision makers thus

encouraging law abiding behavior. Given the current state of public affairs Gallup

Monitor very much in line with the UN's Global Counter Corruption Program pays

special attention to fighting corruption.

In the late 1990s,as the business environment was becoming increasingly global

and more competitive,the Gallup Organisation produced its next major

breakthrough.for the first time corporate leader began to express an intrest not

only in what their customer were thinking but also in the opinions of their

employees.although employees surveys had been around for years ,they tended

to focus on issues that were narrow in scope,such as employee parking or benifts

.gallups breakthrough occurred when corporate leader actually commited

themselves and their oraganisations to studying basic employee attitude that

affect workplace morale and ultimately over all productivity .gallup was at the

right place at the right time with its indepth research devoluped over 25 years of study and analysis ).This research clearly indicates that among thousands of

questions 12 keys items revealed the primary need of people in the workplace .

Gallup quickly devoluped partnership with 200 organisation around the world.In

these partnership,gallup conducted on going employee engagement tracking



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based on the newly discovered Q measurement as well as development programs

to improve employee engagement throughout these organizations.

Gallup had produced a major managment counsulting breakthrough .

The gallup organization next breakthrough was a book publishing venture.gallups

book about employee engagement First break all the rules best seller in united

states.the book also became a best seller in several foreing countries and remains

a best seller in the united states.

On the heels of the success of first break all the rules ,gallup authored a second

best sellers .now discover your strength t seller list regularly including both books

in its top 10 gallups next major managment book ,follows this path was published

in October 2002.gallups other mangment texts include.discover

YOUR_SALE_STRENGTH(2003) and animal_Inc (2004).Gallup most recent best

seller HOW FULL IS YOUR BUCKET (2004) revels how even the briefest interaction

affect relationship,productivity,health ,and longevity.

Gallup and Psychology¶s First Taxonomy of Strengths

The Gallup Organization¶s next historic advance came via the psychologist¶s

laboratory. The science of psychology had historically focused on what is wrongwith people. Using more than 30 years of in depth research, Gallup scientists, led

by Donald O. Clifton, Ph.D., created one of the first programs based on what is

right with people. This innovative program is built on the Clifton Strengths Finder,

a Web-based talent assessment tool. As of this writing, more than 2 million people



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worldwide have taken the Clifton Strengths Finder assessment Among them are a

great number of leaders who claim to have become significantly more effective as

they have structured their lives and their leadership activities around their newly

diagnosed ³talents´.

The Clifton Strengths Finder is one of Gallup¶s most significant psychological

breakthroughs. It is available in 16 languages, and it is changing the lives of

individuals worldwide. Gallup clients regularly use the Clifton Strengths finder to

identify the talents of individuals in their organizations and to help those

individuals understand and maximize their talents by building and applying

strengths in their roles.

Dr. Clifton and his team of scientists had discovered psychology¶s first taxonomy

of strengths. In 2002, Dr. Clifton was cited as the ³Father of Strengths-Based

Psychology´ in an American Psychological Association Presidential

Commendation.

The Gallup Path

In 2000, extreme competition in the global marketplace caused corporate

leadership ± according to numerous think tanks ± to pose one common, all-

consuming question : What is the role of human nature of driving business

outcomes ?



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The Gallup Organization¶s next major technical advance provided the answer to

this question. Gallup sorted through billions of bits customer and employee data

than had ever been studied before. The answer to the role of human nature in

driving business outcomes is contained in the management theory known today as

the Gallup Path.

The Gallup Path is now Gallup¶s premier management consulting model. At the

heart of the model is the theory that in every organization, every employee, at all

levels, contributes to some degree to sales growth, profit, and ultimately, to share

price. The Path represents a turning point for Gallup, but even more so for 20

million world leaders. It is the first theory that proves and tracks the connectedness

of managers to employees, employees to customers, and customers to hard

financial outcomes.

The purpose of the report

Understanding the customer response towards hotels and analyzing customer

satisfaction of projected(given) hospitality industry in India and abroad is the main

aim of this study. This report will give a complete picture of the customer response

towards ³given´ industry task in india, Major Consuming segments will be



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identified which segments they have to improve their service quality what are the

satisfaction level of the customer .which area they should be improve and which

Hotel chains are most preferable by a grade&business class people whom stayed

In five star hotels.

Apart from that, this project will also give an idea of the various kinds of hotels

industries present here, their business, major locations and customer satisfaction. In

short this report is a comprehensive analysis.

The project will use descriptive techniques like:y Graphical description

o Use graphs to summarize data

o Examples: histograms, scatter-grams, bar charts, pie charts

y Tabular description

o Use tables to summarize data .

for explanations and observations.

PRIMARY DATA COLLECTION-primary data is fresh data it

is collected by interacting directly with customer and collecting first hand

information from them

Primary data is collected with the help of the questionnaire which is supposed to

Be filled by customers an then information analyzed on different parameters.



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SECONDERY DATA COLLECTION-it is in the form of

derived data collected From different resources example news papers

,magazine,expert opinion,etc

CHANNEL LISTING ON WEBSITE-I have taken secondary

Data from several website.

Methodology Adopted

The following methods were used for data generation-

1. Primary data collection



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o Face to face interview with the customers, The person who had stayed

in any five star hotel within the span of last 12 months.all the analysis

in the report is drown out of these questionnaire.

o Snowballing

o Street Mapping for understanding the various organisations present

here

2. Secondary research

o Yellow Pages

o Channel listing on websites

o Annual Brochure of IT Association

3. Analytical Tools-

o Pivot Table

Microsoft excel



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FIVE STAR & FOUR STAR HOTELS

TAJ HOTEL:

Taj Hotels R esorts and Palaces is a worldwide chain of luxury hotels and resorts.

The Indian Hotels Company Limited and its subsidiaries are collectively known

as Taj Hotels Resorts and Palaces. A part of the Tata Group, one of India's largest



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business conglomerates, Taj Hotels Resort and Palaces comprises 76 hotels, 7

palaces, 6 private islands and 12 resorts and spas, spanning 52 destinations in 12

countries across 5 continents. Besides India, Taj Hotels Resort and Palaces are

located in the United States of America, United Kingdom, Africa, the Middle East,

Maldives, Mauritius, Malaysia, Bhutan, Sri Lanka and Australia.

Jamshetji Nusserwanji Tata, founder of the Tata Group, opened the Taj Mahal

Palace & Tower, the first Taj property, on December 16, 1903. He was inspired to

open the grand luxury hotel after an incident involving racial discrimination at the

Watson's Hotel in Mumbai, where he was refused entry as the hotel did not permit

Indians. Hotels which accepted only European guests were common across British

India. Jamsetji Tata traveled to London, Paris, Berlin and Dusseldorf to get the best

materials and pieces of art, furniture and interior artifacts for his hotel. Due to its

prime location, traditional architecture and massive size, this hotel soon gained thestatus of the most iconic hotel in Mumbai

OBRAIE HOTELS-Presently, Oberoi Hotels & Resorts includes 16

luxury hotels and three cruisers in India, Mauritius, Egypt, Indonesia and Saudi

Arabia.

The last decade has witnessed the debut of new luxury Oberoi leisure hotels in

India and abroad. In India, these hotels include The Oberoi Rajvilas, Jaipur; The

Oberoi Amarvilas, Agra; Wildflower Hall, Shimla in the Himalayas; The Oberoi

Vanyavilas, Ranthambhore; The Oberoi Cecil, Shimla and The Oberoi Udaivilas,

Udaipur. Overseas, the new hotels include The Oberoi Lombok in Indonesia, TheOberoi, Mauritius and The Oberoi, Sahl Hasheesh in Egypt. The Oberoi Zahra,

Luxury Nile Cruiser, Egypt, was launched in 2007.



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ITC GROUPS -ITC Welcomgroup Hotels, Palaces and R esorts is

India's second largest hotel chain[with over 80 hotels. Based out of Hotels Division

Headquarters at the ITC Green Centre in Gurgaon, off New Delhi, ITC

Welcomgroup is also the exclusive franchisee of The Luxury Collection brand of

Starwood Hotels and Resorts in India.

ITC Limited entered the hotels business in 1975 with the acquisition of a hotel in

Chennai, which was rechristened Hotel Chola. Today, ITC hotels owns and

operates 90 hotels in 77 destinations. ITC Hotels have a reputation of playing host

to visiting royalty and world leaders time and again.

The group today operates under several distinct brands:

y ITC Luxury Collection Hotels

y WelcomHotel Sheraton Hotels

y Fortune Hotels



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The Le Méridien brand was established in 1972 by Air France "to provide a home away from

home for its customers." The first Le Méridien property was a 1,000-room hotel in Paris ² Le

Méridien Etoile. Within two years of operation the group had 10 hotels in Europe and Africa.

Within the first six years the number of hotels had risen to 21 hotels in Europe, Africa, the

French West Indies, Canada, South America, the Middle East and Mauritius. By 1991, the total

number of Le Méridien properties had risen to 58.

In late 1994, Le Méridien was acquired by UK hotel giant, Forte Group, which in turn was

acquired by Granada Group plc in 1996. Through a merger in the summer of 2000 between

Forte's parent company, Granada Group plc, and global contract catering giant, Compass Group

plc ² and the subsequent de-merger of the two companies in February 2001 ² the ownership of

the Forte Hotels division and its three brands (Le Méridien, Heritage Hotels and Posthouse

Forte) passed solely to Compass Group.



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In May 2001, Nomura International plc announced the acquisition of Le Méridien Hotels &

Resorts from Compass Group plc for £1.9 billion and Le Méridien was merged with Principal

Hotels, which was acquired in February 2001. In December 2003, Lehman Brothers Holdings

acquired the senior debt of Le Méridien.

On November 24, 2005, the Le Méridien brand and management fee business was acquired by

Starwood Hotels & Resorts. The leased and owned real estate assets were acquired in a separate

deal by a joint venture formed by Lehman Brothers and Starwood Capital.

PARK HOTEL

The Gramercy Park Hotel was one of New York¶s truly legendary hotels, designed by Robert T.

Lyons and built by the famous developer brothers Bing and Bing in 1925. The hotel occupies the

site of the former homes of flamboyant architect Stanford White and controversial agnostic

Robert Ingersoll.In the hotel's first two years, Humphrey Bogart lived in the hotel with his first

wife Helen Menken, just after marrying her,and the Joseph P. Kennedy family stayed on the 2nd

floor before moving to London. During the Great Depression, Babe Ruth was a regular bar



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patron. An autographed picture of Ruth hung in the bar until it disappeared in the 1960s. In the

1940s, Edmund Wilson lived in the hotel with novelist Mary McCarthy.

In 1958, Herbert Weissberg, a prominent New York hotel owner, bought the Gramercy Park

Hotel. He added a gift shop, doubled the size of the bar, and gave tenure to Pinky, the beloved

hotel bellhop. Guests were drawn to its bohemian character, low prices and locale.

The hotel's reputation for discretion attracted such musicians as Bob Marley and Bob Dyla in the

1970s. The Canadian and Chicago part of the first cast of Saturday Night Live stayed in the hotel

during the show's premiere and Paul Shaffer, the show's original bandleader, continued to live in

the annex for another 16 years. Other former residents include writer S. J. Perelman, actor James

Cagney, character actress Margaret Hamilton, actor Matt Dillon, and playwright David Mamet.

Other notable guests include the Clash,Madonna, Debbie Harry, and David Bowie.

By the late 1990s the hotel's ratings began to decline as the health of the hotel's owner for more

than 30 years began to fail. His sons fought for control and, after a series of family tragedies, the

hotel was subleased in 2002 to Steven Greenberg, the founder of the Roxy nightclub. A bar was

added to the roof but the restaurant closed. It began to attract a younger clientele and the prices

began to increase rapidly.

LEELA GROUP-Hotel Leela Venture Ltd is an Indian hotel company, currently

with four deluxe hotels, located in Mumbai, Bangalore, Kovalam and Goa.

The company was founded by Captain C.P. Krishnan Nair. Capt. Nair served in the Indian

National Army under Netaji Subhash Chandra Bose. He helped his father-in-law in the latter's

garment export business. While visiting various countries, he realized the need for a luxury hotel

chain in India that could measure up to international standards. He went ahead and launched the

first hotel in Mumbai as Hotel Leela, in 1988. The group has then gone ahead to develop fine

hotels across the other cities.

The group intends to launch new hotels across other locations in India viz. Hyderabad, Delhi &

Udaipur



32

HYATT GROUP-Hyatt is an international brand of hotels within the Global Hyatt

Corporation that operates numerous properties.

Mark S. Hoplamazian is the current President and CEO of Global Hyatt Corporation. He took

over the position on 28 November 2006.

Hyatt Center (completed in 2005 & located in downtown Chicago at 71 South Wacker Drive), is

the headquarters for Hyatt corporation. Prior to this, the corporate headquarters was around the

corner at 200 West Madison Street.

The Hyatt Corporation was born upon purchase of the Hyatt House, at Los Angeles International

Airport on September 27, 1957. The original owners were entrepreneurs, Hyatt von Dehn and

Jack D. Crouch.V

on Dehn was eager to get out of the hotel business after a few years, so he soldhis share in the hotel to Jay Pritzker. Mr Pritzker heard the hotel was for sale while sitting in its

coffee shop, called "Fat Eddie¶s", waiting for a flight. He scribbled a bid for $2.2 million dollars

on a napkin, and the Hyatt Corporation was born. (That¶s the equivalent of $15,770,581 in 2006).

Jay Pritzker and Jack D. Crouch remained partners until 1965, opening airport hotels in several



33

cities including San Francisco, Seattle, and San Jose. Crouch stepped away from Hyatt to pursue

other hotel ventures, while Jay and his younger brother, Conor continued to run Hyatt.

The Hyatt became famous after the chain opened the world's first atrium hotel in 1967, the Hyatt

Regency Atlanta,a decade after opening its first hotel.

In 1969, Hyatt opened its first hotel overseas, the Hyatt Regency Hong Kong (which closed at

the end of 2005 and was demolished, the new one will open in 2009). In 1980, the Grand Hyatt

and Park Hyatt brands were introduced. Hyatt has become known for its resorts after the opening

of Hyatt Regency Maui in 1980. Today Hyatt has over 340 hotels worldwide.

In December 2004, Global Hyatt announced it would acquire AmeriSuites, an upscale chain of

all suite business class hotels from affiliates of the Blackstone Group, a New York based private

equity investment firm. Blackstone had inherited AmeriSuites from its 2004 acquisition of Prime

Hospitality. The AmeriSuites chain is being rebranded and converted to a new concept calledHyatt Place. With Hyatt Place, Global Hyatt will better compete with the limited service

products Courtyard by Marriott and Hilton Garden Inn offered by industry leaders Marriott

International and Hilton Hotels corporation.



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CUSTOMER SATISFACTION

Customer satisfaction a business term is a measure of how product and service

supplyed by a company meet or surpass customer expectation .it is seen as a

key performance indicator within business and is part of the four perspective

Of a blances scorecard .

In a competitive market place where businesses compete for customers,cust

Tomer satisfaction is seen as a key differentiator and increasingly has become

A key elements of business strategy.

MEASURING COSTOMER SATISFACTION

Organization are increaseingly intersted in retaining exiting customers while

targeting non customers while targeting non customer measureing customer

Satisfaction provides an indication of how sucessful the organization is at

provideing products and service to the market place.

Customer satisfaction is an ambiguous and abstract concept and the actual

Manifestation of the state of willvery from the person to person and product /

Service.the state of satisfaction depends on a number of a both psychological

And physical variables which correlate with satisfaction behaveiours such as

return and recommend rate .the level of satisfaction can also vary depends on

Other options of customer may have and other products against which the

customer can compare the organization;s service.

Because satisfaction is basically a psychological state ,care should be taken in

the effort of quantitive measurement ,although a large quantity measurement

This area has recently been developed .factor which influence satisfaction

behaviour ,known as the ten domen of satisfaction .these domen of satisfactio



35

N include quality of service,value,timelineless,efficency,ease of

eccess,environment,inter-departmental team work,front line service

Behaveiors ,commitment to the cusomer and innovation.these factors are

emphasized for continious improvements and orgzational change

measurement and are most often utilized to develop the architecture for

satisfaction measurement as an interegated modal.these provides the basis for

the measurement of the customer satisfaction with the service by using the

gap between the customers expectation of performance and their perceived

Experience of performance.this provides the measurer with a satisfaction gap

Which is objective and quantitative in nature.customer satisfaction equals

perception of performance divided by expectation of performance.

SATISFACTION=PERCEPCTION-EXPECTATION



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SWOT ANALYSIS OF HOTEL INDUSTRY

According to recent estimates of the World Travel & Tourism Council (as of early

2005), Indian tourism demand will grow at 8.8% over the next ten years, which

would place the country as the second most rapidly growing tourism market in theworld. With the Indian hotel industry capturing the attention of the world, let us

understand its strengths, weaknesses, opportunities and threats.

Strengths

India¶s rich culture heritage: With a historical backdrop of 5,000 years, India is

one big package of culture and legend that never fails to captivate the imagination

of the visitor. Along with endless natural splendors like the mighty Himalayas, the

vast Indo Gangetic Plains, lush tropical jungles and a long coastline. A visit to thecountry is a changing spectacle of religions, customs, festivals, sights and sounds .

Demand±supply gap: Indian hotel industry is currently facing a mismatch

between the demand and supply of rooms leading to higher room rates and

occupancy levels. With 95,000 odd rooms in the country, the size of the hotel

industry represents an abysmal figure for India's size and growth prospects.

Though new capacities are expected to come in the next five years demand will

outpace supply in the short to medium term. The table below highlights that, over

the last 24 months, major cities in the country have witnessed impressive growth inaverage room rates, due to strong demand and not much addition to supply.

ARRs: Average growth rate

FY02 FY03 FY04 FY05 Delhi -4.2% -5.7% 2.3% 31.4% Mumbai -11.2% -15.2% 2.2% 28.7% Bangalore 3.7% 15.1% 11.7% 29.1% Chennai -6.9% 6.6% 5.4% 6.4% Goa -8.2% 12.1% 9.8% 18.4%

source HVS international

Government support: Till a few years ago, the Indian government had a total

apathy towards promotion of tourism. In fact, the industry did not find a place in

the government¶s fund allocation. Things have, however, witnessed a change. The



37

government seems to have realized the importance of tourism and is willing to

spend towards the development of the industry. The µIncredible India¶ campaign is

a product of this realization. The focus on infrastructure, modernisation of airports,

open sky policy, development of new tourist destinations and circuits, more fund

allocation towards tourism are some of the initiatives taken by the government to promote tourism. The Indian hotel industry stands to gain from this proactiveness

shown by the government.

Weaknesses

Poor support infrastructure: India is currently spending a miniscule amount

compared with its needs, on infrastructure. China is spending seven times as much

as India on infrastructure (excluding real estate) in absolute terms. In 2003, total

capital spending on electricity, roads, airports, seaports and telecom was US$150 bn in China (10.6% of GDP) compared with US$21 bn in India (3.5% of GDP).

However, over the past 2-3 years, the government has realized the importance of

infrastructure and has focused on improving it.

Opportunities

Rising Income: While there has been much talk about record number of foreign

tourist arrivals, very little has actually been said or done about domestic tourism,

which, according to our estimates, has registered a 40% annual growth in the lastthree years and is currently estimated at 300 m travelers. Per capita income grew

by an impressive 7.1% in 2005, while Gross Domestic Savings touched an all time

high of 28%. Significantly, the present-day consumption boom in India has been

influenced more by higher disposable income rather than lower savings. This is

good news, as income induced spending is likely to sustain itself for a longer

period. Higher disposable incomes are also expected to enhance the concept of

traveling for leisure.

Also, there has been an overall transformation in consumption pattern in the last

five years. The increase in number of young people, their rising aspiration levels,

and an increase in their spending power has led to a change in the consumption

pattern. There is a marked shift from spending on traditional categories like food

and grocery, clothing and jewelry, to lifestyle categories such as leisure, and

aspirational products and services.



38

Open sky benefits: The opening up of the aviation industry in India brings

exciting opportunities for the hotel industry (airlines transport around 80% of

international tourists). Increased airline activity has stimulated demand and has

helped to improve India's troubled infrastructure. Increased competition among

airline companies will further lead to the development of new and improvedservices. Also the open skies policy has benefited both international and domestic

travel.

New business opportunities: We believe that, over the next three to five

years, the biggest surge in accommodation demand is expected to come from

commercial zones that are being developed in metro suburbs and secondary

markets. Mixed-use development projects that include retail and commercial space

have also gained momentum in the last 24 months and will continue to be an

attractive option. This provides a unique opportunity for hospitality projects. Alsothe new concept, which is going to gain importance is that of budget hotels (started

by Indian Hotels ± Ginger, the erstwhile Indione). Due to their inherent nature of

operation, associated costs and flexibility, budget hotels will be better suited to

withstand the next economic downturn as and when it takes place.

Threats

Event risk: Dependency on foreign tourism can be a double-edged sword as

travel decisions are based on global patterns and events that happen elsewhere canhave serious impact the performance. Events like 9/11, SARS outbreak and

Afghanistan and Iraq wars have severely impacted the tourism industry in the past

and the threat remains.

Increasing competition: Global hospitality majors like the Four Seasons,

Shangri-La and Aman Resorts are all making their entry into the Indian market.

They are not the only ones who are turning their attention to India. The Hilton

Group is deciding on a comeback and has tied up with the Oberoi Group. Two

other groups - the Carlson Group and the Marriott chain are furiously hunting for

new hotels in India's top cities. This will increase the competition for the existing

Indian hotel majors.

Conclusion The outlook for the hospitality market in India is optimistic and will continue to

remain so, in our opinion. The economy¶s buoyancy, initiatives to improve



39

infrastructure, growth in the aviation and real estate sectors and easing of

restrictions on foreign investment will fuel demand for hotels across star categories

in the majority of markets. India¶s hotel industry is increasingly being viewed as

investment-worthy, both within the country and outside, and several international

chains are keen to establish or enhance their presence here. We anticipate that, over the next three to five years, India will emerge as one of the world¶s fastest growing

tourism markets and will be hard to ignore.

BLUE PRINTING OF FIVE STAR HOTELS

Bluprinting of a high contact ,people-processing service ,we examine the

exeprience of stayed in five star hotels that enhances its core food services with avarity of supplementary services a typical rule of thumb in full-service hotels is

that the cost of purchasing the food ingredients represent about 20-30 percent priceof meal .the balane can seen as the ³fees´ that the customer willing to pay For supplementry services like interior design good services,and service quality,and

pleasant staying provideind the service staff to wait on them both in side andoutside the dining room.

THE KEY COMPONANTS OF BLUEPRINT-

1-difinition of standard for each front ±stage activity

2-physical and other evidence for front stage activity.

3- principle customer actions

4-line of interactions

5-front stage actions by customer-contact personnel

7-back stage actions by customer contect personnel

8-support processes involving other service personnel

9-support processes involveing information techonology

In the blueprinting of hotel inddustry we have got three act of performance this isexplain below-



40

ACT-1 PROLOGUE AND INTRODUCTORY SCENES-in this particular drma ,act 1

begins with making a reservation ±an interaction conducted by telephone with anAn unseen employee ,often hours or even dayes in advanced of visiting the hotel.Intheeatrical terms ,the telephone conversation might be linked to a radio drama,with

impressions being created on the evidence of the respondent voice,speed of response ,and the style of conversation.on thhe customer¶ arrival at the restaurant,a

valet parks their car ,and they leave their coats in coats room And they enjoy a

drink in the bar area while waiting for their room.With impressions being created

on the evidence fo te respondent voice speed of Visiting the hotel .in theatricalterms the telephone conversation might be linked to a radio drama ,withimpressions being created on the evidence of the respondents voice speed of voice

Speed of responces ,and style of conservation .on the customer ; arrival at theresturants ,a valet parkes their car ,and they leave their costs in the coatroom ,and

they enjoy a drink in the bar area while waiting for other task.the act concludeswith their being escorted to a rooms and other hotel facility.



41

MARKET RESEARCH FOR BUSINESS PLAN

Market research is descovering what people want ,need or believe.it can alsoinvolve discovering how they act .once that research is complete it can be used to

determine how to market to your specfic product .whenever possible ,tri to reducerisk at the earliest possible stage .for you could carry out market research revealsthat your business idea is potential ,you can use this information in planning the

build -up of your business .

For starting up a business there are few thing that should find out through marketresearch in order to know if your business is feasible.these are thing like-

y MARKET INFORMATION

1-who are the customer?

2-where they are located and hoe they can be contacted?

3-what quality and quantity do they want?

4- what is the best time to beat their comptitors and adopt much more marketshare?

5-what is the long term or historical data over the number of the years?

6-what is the pci of the country?

7-is there more demand for one product or a another?

y MARKET SEGMENTATION

Market segmentation is the division of the market or popluation into subgroups

with similar motivation .widely used base for segmenting including geographic

Differences.

PERFORMING MARKET RESEARCH

The market research process has 4 basis step as:

1-defineing the research problems



42

2-establishing the research design

3-collecting and analyzing data

4-formulate findings

DEFINING THE RESEARCH PROBLEMS

the research questions. This steps defineing the research problems consists of two

main steps (1)formulating the problems (2)establishing research objectives.

Defining the problem is the single most important stepin the market research

process. A clear statement of the problem is a key to goog research. A firm mayspend hundreds or thausands of dollars doing market research, but if it has notcorrectly idenified the problem, those dollar are wasted.

Problems that may be encountered are: it is unknown what potential markets thereare, what customer groups are interested in your products, who are the competitersare? After fourmulating the problems, one needs to formulate the research

questions.

With the problems or opportunity defined ,the next step to set objectives for your

Market research operations .research objective ,related to and determined by theProblems formulation ,are so that then when achieved they provide the necessaryinformation to solved the problems.

Your objective might even be to test possible cause and effects relationships .for exanmple ,if you lower your price ,how much it will increase your sale volumeand what impact will it have on your profit?

Clear objectives can lead to clear result

SELECTING RESEARCH DESIGN

This type consists of 3 main steps (1)select the research design,(2)identifyinformation types and sources and (3) determine and design research instruments.

Select the research design



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There are three types of research design:

y Exploratory research design

y Descriptive research

y

Causal research

Exploratory research is defined as collecting information is an unstructured and

informal way .for example ,a resturent owner may regularly eat at competing hotelin order to gather information about menu selection ,prices and service quality.

Descriptive research refer to a set of methods and procedures that describedmarketing variables .descriptive studies portray these variables byanswering.who,what,why questions.these type of research stuides may describedsuch thing as consumers. Attitudes,intentions on the numbers of comptitors and

their strategies.

Causal research design is conducted by controlling various factor to determinewhich factor causing the problems .it allow you to isolate cause and effects .bychanging one factor ,say price you can moniter its effect on a key consequencesuch as sale .although causal research can give s



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