Submitted to, B.W.T.B.A,H.K.campusAsharmaroadAhmedabad.Year 2008-09
Submitted By,3009- DOSHIVAIBHAV.3012-GOHIL NARESH.3023-KUMAKIA POONAM.3025-MACWAN JIGAR.3115-DHANESWAR SHATAYU 3116-MACKWANA NILAM.3117-MASTER DIPTI.3118-MISTRI REENA.3133-BHRAMBHATT
ANAND.3142-KHANT RAMAN.
B.W.T.I.B.A 1
Chap.
Particular Page no.
Preface 4Acknowledgement 5
Part-1 6Research methodology 7
1 What is research methodology 71.1-Identify the objective of research 71.2-Research design 71.3- Data type 81.4 - research aproaches 91.5- Research instrument 101.6 -Sampling plan 101.7- Contact method 12
Part-2 131 Overview of hotel industry 14
1.1- Sector outlook 141.2- Future 151.3- Trends in hospitality industry 16
2 Hotel industry in India 192.1- Feature of hotel industry 202.2- Classification of hotel industry 212.3- Growth of hotel industry in India 232.4- Scenario of hotel industry 252.5- Expansion plan 262.6- International recognition 28
3 Segmentation of hotel industry 293.1- How star is given 33
B.W.T.I.B.A 2
CONTENT
4 Challenge of hotel industry 36
5 Govt. policy 385.1- Govt. support 385.2- Step taken by HAI 395.3- Recession 41
6 Star hotel in Ahmedabad 42
7 Up coming hotel project in Ahmedabad 43
8 Brief about visited hotel in Ahmedabad 458.1- Brief about taj hotel 458.2- Brief about ginger hotel 488.3- Brief about Sarovar portico hotel 52
9 SWOT analysis of hotel industry as a whole
53
9.1- SWOT analysis of visited hotels 59
10 PEST analysis of hotel industry 63
11 Porters five force analysis of hotel industry
71
12 Security in Ahmedabad after Mumbai attack
79
12.1- Risk factor in ahmedabad 81
13 7p’s of service marketing 8213.1- Product 8313.2- Price 9913.3- Place 10813.4- Promotion 11913.5- People 13213.6- Process 14313.7- Physical evidence 153
14 5 Gaps model of service quality 159
15 Questionnaire 167
B.W.T.I.B.A 3
16 Conclusion 170
17 Bibliography 171
We are the students of Bramchari Wadi Trust which is the
institute of business Management. Our college has given
various topic out of that we have chosen this topic . Our report
is on star hotels in Ahmedabad. It is very important and
inspirable part of third year of B.B.A. programme.
Our report gives the knowledge and information about the
Hotel Industries in India. It indicates the current scenario of
hotels in India. It also helps to know various strategies of
hotels in Ahmedabad to generate or capture more market
share of consumer.
As a student’s of T.Y.B.B.A., we hope that we tried to prepare
this report enthusiastically and put our best effort to add to its
quality.
B.W.T.I.B.A 4
PREFACE
As per laid down curriculum the Third Year of B.B.A. we are
assigned service report on hotels management in Ahmedabad.
Support for completion for the same .We is thank you to each
& every person for providing us and supplying an adequate
and defused information and their best support and guidance
for completion of our report.
We really appreciate the work and systematic efforts of our
professor Mrs. Pallavi Ozza who helped guided and supports
us positively and enthusiastically in getting our work done.
Thanks to: -
Director:-Madam Shilpa Trivedi.
B.W.T.I.B.A 5
ACKNOWLEDGEMENT
Madam Pallavi Oza.
Part-1
ResearchB.W.T.I.B.A 6
Methodolo
gy
What is research methodology?
Methodology is defined as
1. "the analysis of the principles of methods, rules, and
postulates employed by a discipline";
2. "the systematic study of methods that are, can be, or have
been applied within a discipline"; or
3. "a particular procedure or set of procedures."
1) Identifying the objective of research.
B.W.T.I.B.A 7
To know that how hotels are manage.
How they provide the services to the customer?
For education purpose it is help a lot to learn that how
hotels are manage.
2) Research Design: -
Exploratory
Descriptive
Exploratory Research:-
“Exploratory research is to gather the preliminary
information that will help in defining the problem and
suggest the hypothesis.”
Whenever we want to derive / explore something new our
research type should exploratory. In our project we have to
explore the data about how hotels are manage & 7’s of
visited hotels from data given by the hotel P.R.O (Public
Relation Officer) people.
Descriptive Research: -
“Descriptive research is to describe things such as market
potential, demographics and attitude of consumers etc.”.
Descriptive research we analyzed on qualitative parameters
we take the personal interview of the respondent this
research is undertaken to collect the primary information.
B.W.T.I.B.A 8
Ex.
Which star category they have belong?
What type of customer they have targeted?
Which kind of facility they provide to customer?
What are their SWOT?
3) Data Type :-
Primary
Secondary
Primary Data: -
“Primary data consists of the information which is freshly
collected for the specific purpose at hand.”
Newly / Freshly gathered information is known as primary
data. For our project sources for primary data are personal
interview with hotel consultant.
For getting the primary data we have visited the different
star hotel like
☼ Neelsahara ☼ Neelkanth paradise
☼ Hotel host inn ☼ Taj hotel
☼ Ginger hotel
Secondary Data: -
“Secondary data consist of information that already exist
somewhere and having been collected for another purpose.”
B.W.T.I.B.A 9
The data which are already exist & which was gathered
earlier for, magazines any other purpose is known as
secondary data, sources of secondary data are websites, etc.
WWW. Hotel Industry. Com
WWW. Equity master. Com
WWW. Indian equity fund. Com
WWW. Neelkanth group of hotel. Com
WWW. Taj hotel. Com.
WWW. Ginger hotel. Com
WWW. Sarovar portico hotel. Com
WWW. Host inn hotel. Com
4) Research Approaches
Focused group
Survey
Focused Group Research: -
“A focused group research is to gather six to ten people who
are invited to spend few hours with a skilled moderator to
discuss about project.”
In this report we have done the focus group research. Hear
we were met to the star hotels consultant to discuss about
the project report.
B.W.T.I.B.A 10
5) Research instruments
Questionnaire:-
“Questionnaire is a form consists of set of questions.”
There are two types of Questionnaire that is close ended &
open ended.
In close ended Questionnaire respondent has to answer
from given alternatives & in open ended Questionnaire they
can give answer in their own state of manner. For our
project we have framed a questionnaire comprising of open
questions.
6) Sampling Plan
a. Sample
b. Sample Unit
c. Sample Size
d. Sample Procedure
Sample: -
“Sample is a segment of the population selected for
research to represent the population as a whole.” In our
report the sample is star hotel in Ahmadabad.
Sample Unit: -
“Sample Unit means who is to be surveyed?
We have done the survey on 2 star hotel, 3star hotel, 4 star
hotel, 5 star hotel & we met the consultant of this hotel
Sample Size: -
“Sample Size means how many people should be surveyed?”
B.W.T.I.B.A 11
We have surveyed 5 hotels in Ahmadabad
Neelkanth Sahara 2 star hotel
Neelkanth paradise 3 star hotel
Host inn hotel 2 star hotel
Ginger hotel 3 star hotel
Sarovar portico hotel 4 star hotel
Taj hotel 5 star hotel.
Sampling Procedure: - “Sampling procedure means how
should the respondent be chosen.”
There are two types of sampling procedure.
Probability
Non probability
On the Probability bases sample, where each element of
population has given equal chance of getting selected. In
our report we are not going survey according to the
probability methods
On the Non-Probability bases sample, where each
element of population has not given equal chance of
getting selected. In our report we have done survey
according to the non-probability methods.
In Non Probability we have done the survey according to
the convenience from hotel consultant for example we
have visited le-meridian but we didn’t got good response so
we have not included that hotel in our report.
B.W.T.I.B.A 12
7) Contact Methods
Personal interview: -
Here interviewer asks face to face questions to
respondents. It takes two forms, individual & group
interviewing. Individual interview involve talking with
people in their homes or offices, on the street, or in
shopping mall. Such interviewing is flexible. Trained
interviewer can guide interviews, explain difficult
question, and explore questions as the situation requires.
Group interviewing consists of 6 to 10 people and an
interviewer will ask question to a group as a whole. It is
similar to focused group research. In our project we have
done the personal interview.
Name of respondent
Name of hotel
Name of person
Designations Star category
Hotel taj Mr. vergies curien
H.R. Manager 5 star hotel
Neelkanth sahara
Miss. Tulsi mam
Assintant general
3 star hotel
B.W.T.I.B.A 13
managerNeelkanth paradise
Mr. Harsant shah
Front office manager
3 star hotel
Hotel host inn
Mr. parikshit Side partner 2 star hotel
Sarovar portico
Mr. rishove halder
Training manager
4 star hotel
Ginger hotel Mr. kaushal G.A.M. 3 star hotel
The main advantage of personal interview is that we can
get reliable information.
The main disadvantage of personal interview is that, it is
very time consuming and costly.
B.W.T.I.B.A 14
Part-
2
Chapter-1-overview of hotel industry
B.W.T.I.B.A 15
Overview of Hospitality Industry
Hospitality is about serving the guests to provide them with
"feel-good-effect". "Athithi devo bhavha" (Guest is God) has
been one of central tenets of Indian culture since times
immemorial. In India, the guest is treated with utmost warmth
And respect and is provided the best services.
Today hospitality sector is one of the fastest growing sectors in
India. It is expected to grow at the rate of 8% between 2007
and 2016. Many international hotels including Sheraton,
Hyatt, Radisson, Meridien, Four Seasons Regent, and Marriott
International are already established in the Indian markets
and are still expanding.
Nowadays the travel and tourism industry is also included in
hospitality sector. The boom in travel and tourism has led to
the further development of hospitality industry.
1.1 Sector out look
hotel industry largely depend upon the foreign tourist arrivals
further classified into business travelers (around 65% of the
total foreign tourists) and leisure travelers. The following
figures show that business as well as the leisure travelers
(both domestic and international) formed major Clientele for
hotel in 2007.
Global travel increased by 6% in 2007 compared with 2006,
crossing tourism forecasts for the fourth year in succession.
Among the various regions, the Middle East registered the
highest growth in arrival of international tourists with 46
B.W.T.I.B.A 16
million tourists compared with 41 million in 2006, a growth of
12.2%.The opening up of the aviation industry in India has
resulted in exciting opportunities for the hotel industry.
Foreign tourist arrival to India have been growing at a 14 %
over the past 5 years. However this has dropped to low single
digits in the early part of H2FY09. at the same time, supply
additions of premium segment hotel rooms are expected to
grow at 16 per cent. This is expected to have a dampening
effect on occupancy rates. The supply surplus in 2009-10 and
2010-11 is expected to pull down average occupancy rates
from around 75 per cent in 2006-07 to 60 per cent in 2010-11.
And significant increase in average room rate (ARR) The major
factors contributing to this growth include stable economy &
political condition, booming service industry, FDI inflow,
infrastructure development, emphasis on tourism by the
central as well as state governments and tax rationalization
initiatives to bring down the tax rates in line with the
international levels.
1.2Future :
The number of tourists visiting India is estimated to touch the
figure of 4.4 million. With this huge figure, India is fast
becoming the hottest tourist destination in the region. The
visitors include business travelers, leisure travelers and
persons of Indian origin with foreign passports. Growth is
expected to continue over the next few years. It is being
predicted that India may achieve an average growth of 12%
per annum in tourism for many years to come. Apart from
international tourists, the domestic tourist market, including
B.W.T.I.B.A 17
business and leisure travelers, is also flourishing. This market
is estimated at around 300 millions tourists per year. The
industry also expects a boom in spiritual and medical tourism
in the domestic sector at a growth rate of 10% to 15% over the
next few years. Growth in tourism will definitely lead to a
boom in hotels and restaurants. Though there is a shortage of
rooms at present, it is going to be over soon enough, as top
international players are heading towards India to establish
themselves here. A steady growth of about 10% in new hotel
projects is expected for the next few years.
1.3 Trends in Hospitality Sector
Trends that will shape the future of hospitality sector are:
1.LowCostCarriers
2.BudgetHotels
3.ServiceApartments
4.Technology
5.LoyaltyTravel
1. Low cost carriers:
Travelers in general are more price sensitive to airfare than
they are to hotel room rates. Often a low airfare will stimulate
demand for travel even if hotel prices are increasing. LCCs are
B.W.T.I.B.A 18
a good option for business travelers, as they have advantages
like low costs, more options and connectivity.
2. Budget hotels:
More than 50 per cent of occupancy of a majority of hotels
comes from the business travel segment. The average room
rate (ARR) realized from business travelers is normally higher
than from leisure travelers. Heightened demand and the
healthy occupancy rates have resulted in an increase in the
number of budget hotels. Some of the new players entering
into this category of hotels include hometel, kamfotel,
courtyard by Marriott, country inns & suites, ibis & Fairfield
inn.
3. Service apartments:
The concept of service apartments, though a recent
phenomenon in India, is an established global concept. Villas
in Spain, flats in the UK and apartment complexes in the US
have all created a viable market for those who want more than
just a room in a hotel. Service apartments are the latest trend
in accommodation, offering the comfort and convenience of a
home without the hassles of having to maintain or look after it.
Ideally suited for medium-to-long staying guests, service
apartments are a natural choice for corporate employees or
expatriates relocating to a particular city, non-resident Indians
visiting the country for long spells and foreigners visiting city
for long duration.
4. Technology:
B.W.T.I.B.A 19
Travel and technology have become inseparable. Technology is
making its own advances with high-tech video conferencing
facilities, web cameras and virtual reality mode of
conferencing. On-line bookings, e-ticketing, Wi-Fi Internet
connectivity, easy access to information, etc. are just a few
areas where technology has compeletely changed the way we
travel.
5. Loyalty travel:
`Today, airline-credit card company tie-ups have brought a
whole range of benefits to the travelers. These include
insurance cover, upgrades, free tickets, access to executive
lounges, and a host of other goodies. The top players in
hospitality sector include the following:
ITC Hotels
Indian Hotels Company Ltd. (The Taj Hotels Resorts &
Palaces)
Oberoi Hotels (East India Hotels)
Hotel Leela Venture
Asian Hotels Ltd.
Hotel corporation of India
ITD hotels
Chapter-2-Hotel industry in India
Hotel Industry in India
B.W.T.I.B.A 20
Hotel Industry in India has witnessed tremendous boom in
recent years. Hotel Industry is inextricably linked to the
tourism industry and the growth in the Indian tourism industry
has fuelled the growth of Indian hotel industry. 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. 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.
In recent years government has taken several steps to boost
travel & tourism which have benefited hotel industry in India.
These include the abolishment of the inland air travel tax of
15%; reduction in excise duty on aviation turbine fuel to 8%;
and removal of a number of restrictions on outbound chartered
flights, including those relating to frequency and size of
aircraft. The government's recent decision to treat convention
centres as part of core infrastructure, allowing the government
to provide critical funding for the large capital investment that
may be required has also fuelled the demand for hotel room.
The opening up of the aviation industry in India has exciting
opportunities for hotel industry as it relies on airlines to
transport 80% of international arrivals. The government's
decision to substantially upgrade 28 regional airports in
smaller towns and privatization & expansion of Delhi and
B.W.T.I.B.A 21
Mumbai airport will improve the business prospects of hotel
industry in India. Substantial investments in tourism
infrastructure are essential for Indian hotel industry to achieve
its potential. The upgrading of national highways connecting
various parts of India has opened new avenues for the
development of budget hotels in India. Taking advantage of
this opportunity Tata group and another hotel chain called
'Homotel' have entered this business segment.
Hotel Industry in India currently has supply of 110,000 rooms
and there is a shortage of 150,000 rooms fueling hotel room
rates across India. According to estimates demand is going to
exceed supply by at least 100% over the next 2 years. Five-star
hotels in metro cities allot same room, more than once a day to
different guests, receiving almost 24-hour rates from both
guests against 6-8 hours usage. With demand-supply disparity,
hotel rates in India are likely to rise by 25% annually and
occupancy by 80%, over the next two years. This will affect the
competitiveness of India as a cost-effective tourist destination.
To overcome, this shortage Indian hotel industry is adding
about 60,000 quality rooms, currently in different stages of
planning and development, which should be ready by 2012.
Hotel Industry in India is also set to get a fillip with Delhi
hosting 2010 Commonwealth Games. Government has
approved 300 hotel projects, nearly half of which are in the
luxury range. The future scenario of Indian hotel industry
looks extremely rosy. It is expected that the budget and mid-
market hotel segment will witness huge growth and expansion
B.W.T.I.B.A 22
while the luxury segment will continue to perform extremely
well over the next few years.
2.1 Some of the main features of the Indian hotel
industry include the following.
1) Industry is more depend on metro city
The industry is more dependent on metropolitan cities as
they account for 75% to 80% of the revenues, with Delhi and
Mumbai being on top.
2)ARR & occupancy rate
The average room rate (ARR) and occupancy rate (OC) are
the two most critical factors that determine profitability.
ARR depends on location, brand image, star rating, quality
of facilities and services offered. The occupancy rate
depends on other seasonal factors.
3)Foreign visitors
B.W.T.I.B.A 23
India is an ideal destination for tourists. Approximately 4.4
million tourists visit India every year. Thus the growth
prospects are very high.
4) Multinational hotel
In the hotel sector, a number of multinationals have
strengthened their presence. Players like Four Seasons are
also likely to enter the Indian market in the near future.
Moreover, Indian hotel chains are also expanding
internationally. A combination of all these factors could
result in a strong emergence of budget hotels, which could
potentially lower the cost of travel and related cost.
2.2 The industry can be classified into four segments:
1) 5 Stars and 5 Stars Deluxe.
These are mainly situated in the business districts of metro
cities and cater to business travelers and foreign tourists.
These are considered to be very expensive. These account
for about 30% of the industry.
2) Heritage Hotels.
B.W.T.I.B.A 24
These are characterized by
less capital expenditure
and greater affordability
and include running hotels
in palaces, castles, forts,
hunting lodges, etc.
3) Budget Hotels:
Budget hotels cater mainly
to domestic travelers who
favor reasonably priced accommodations with limited
luxury. These are characterized by special seasonal offers
and good services
4)Unclassified:
These are low-priced motels spread throughout the country.
A low-pricing policy is their only selling point. This segment
accounts for about 19 % of the industry
B.W.T.I.B.A
Category Percent
age
Five star & five
deluxe
30 %
Four star 10 %
Three star 27 %
Two star 12 %
Un classified 19 %
Heritage hotel 2 %
25
2.3 Growth in hotel industry in India
The hospitality boom in India is led not only by the buoyancy in
the Indian economy, but also by the supply-demand imbalance
that currently exists in most cities. Our focus is extensively on
the quantum and classification of new hotels being developed
in major cities over the next five years. For each city we have
presented the number of new hotels under various stages of
development, their market orientation and suggested the
active development ratio."
B.W.T.I.B.A 26
The services sector showed a healthy growth of 11.2 per cent
in 2007 as compared to 9.8 per cent in 2006 benefiting from
the availability of skilled labour. Trade, hotels, transport and
communication continued to develop at an accelerated pace
recording a growth of 13.0 per cent during 2007 as against
10.4 per cent in 2006.
Occupancy levels:
Occupancy levels at hotels catering to business travelers have
dropped 5% to 10% since the end of January. On a year on
year basis, occupancy levels have remained flat. The major dip
in the occupancy levels was seen in the IT hubs, Bangalore and
Hyderabad. Major expenditure-cutting exercises by
information technology sector companies, hurt by the rupee
appreciation, have begun to impact the IT hospitality
segments. Also, new supply had come up in these regions,
which further affected the occupancy levels. However,
destinations like Mumbai, Delhi, and Goa witnessed stable
occupancies on account of lower supply. Though the tourist
destinations witnessed higher occupancies, rising airfare and
higher room rates may hit the leisure tourist segment going
forward.
Occupancy (%)
B.W.T.I.B.A 27
City FY07 FY08
North Mumbai 69 68
South Mumbai 76 76
Delhi 75 74
Bangalore 74 70
Chennai 73 71
Kolkatta 75 75
Goa 70 70
Hyderabad 71 69
[Source: - equity master research]
2.4 Scenario of hotel industry:-
B.W.T.I.B.A 28
India boasts of the world's highest mountains, miles of
coastline with excellent beaches, tropical forests and wildlife,
adventure tourism, desert safari, lagoon backwaters, ancient
monuments and World Heritage Sites, forts and palaces, and
of course, the Taj Mahal. The Indian tourism and hospitality
industry has thus emerged as one of the key sectors driving
the country's growth. The tourism sector is thriving, owing to a
huge surge in both business and leisure travel by foreign and
domestic tourists. The boom in India's tourism industry and
the surge in tourist inflow to the country have percolated to
other associated sectors like hospitality. The revenues for the
Indian hotel and restaurant industry in the year 2006-07
exceeded US$ 118.85 million, an increase of nearly 22 per
cent over the previous year. The industry is poised for rapid
growth and is projected to be well worth over US$ 158.49
million by the year 2010. And with the continuing surge in
tourist inflow, this sector is likely to offer tremendous
opportunity for investors. For example, while the estimated
number of required hotel rooms is around 240,000, the current
availability is just 90,000 rooms - leaving a shortfall of 150,000
rooms to be provided. India's hospitality sector is expected to
see an estimated US$ 11.41 billion in the next two years, and
around 40 international hotel brands by 2011, according to a
report by Ma Foi Management Consultants. Moreover, the
sector is expected to provide over 400,000 jobs.
Along with these large-scale expansion plans, international
hotel asset management companies are also likely to enter
India. Several global hotel chains see immense investment
B.W.T.I.B.A 29
opportunities in the sector with global chains like Hilton,
Marriott International, Berggruen Hotels, and Cabana Hotels,
Premier Travel Inn (PTI), InterContinental Hotels group and
Hampshire amongst others have announced major investment
plans in India with others likely to follow suit.
Latest Trends
Hotels are no longer satisfied with the plain-vanilla room
concept but are now getting ready for alternate hospitality
formats such as residential hotels, destination resorts, condo
hotels, vacation ownership and private residents' club.
Four Seasons is developing a destination resort in
Puthenkayal, Kerala, which will have 75 villas and also 20
branded, luxury private residences. The resort will be
operational by 2012.
Nearly 11 per cent of the hotel demand in the country is
from long stay guests. The Leela Group is looking at tapping
this market. Its property in Gurgaon will have 90
apartments called 'The Residence' aimed at the long stay
guests.
India's largest real estate player, DLF, is building India's
first residential hotel in Goa with the Hilton Group. DLF
plans to invest US$ 2 billion to have six hotels on a similar
format in the next five years.
2.5 Expansion Plans
B.W.T.I.B.A 30
With India being on the global tourist map and more and more
people coming to India for tourism or business, hotels are
looking at expansion in a major way.
The Taj Hotels Resorts and Palaces — in a joint venture
with CC Africa, a leading safari operator and ecotourism
company from Africa is opening two safari lodges in Madhya
Pradesh at Panna and Kanha National Parks. It already has
a safari lodge each at Bandhavgarh and Pench National
Parks.
Marriott, which manages six hotels in India at present, is
looking at a steady growth in the number in the next four
years. It expects to have 25 hotels by 2011 with room
strength of 8,000–10,000.
EIH, which owns the Oberoi and Trident group of hotels,
is looking at opening 10 hotels in India and abroad in the
next three years. These include a luxury Oberoi Hotel in
Gurgaon to be opened in 2009, a 320-room Trident hotel at
the Bangalore International Airport to be opened in 2010,
and two hotels to be opened in Hyderabad in 2010.
Hotels in Hyderabad are on an expansion spree and a
whooping 4,000 rooms will be added in the next couple of
years. Around 20 major properties including that of Park
Hyatt, Trident,
Marriott, Leela and Taj among others will effectively double
the current capacity of 4,000 rooms across all types of
hotels.
B.W.T.I.B.A 31
2.6 International Recognition
India's booming tourism sector has not only witnessed
international investments but also achieved international
accolades with its increasing appeal as the leading global
tourist destination. The government has been instrumental in
making tourism a priority sector. Its efforts have borne fruits
with a series of international recognition and awards.
B.W.T.I.B.A 32
India has been elected to head the UN World Tourism
Organization (UNWTO), the highest policy making world
tourism body represented by 150 countries.
The world's leading travel and tourism journal, Conde
Nast Traveler, has ranked India as the 'numero uno' travel
destination in the world.
India was adjudged Asia's leading destination at the
regional World Travel Awards (WTA).
India's Taj Mahal continues to figure in the Seven
Wonders of the World.
Bangalore-based Leela Palace Kempinski was voted the
favourite business hotel in the world in a Readers' Choice
Awards by Conde Nast Traveler in 2007.
India bagged the World's leading Destination Marketing
Award for the Incredible India campaign.
Chapter -3- segmentation of hotel
industry
Companies mentioned
B.W.T.I.B.A 33
Asian hotel limited, EIH limited, Hotel leela venture, Indian
Hotels company limited, Indian Tourism Department, royal
Orchid Hotel LTD, Taj Hotels, and Resorts Limited, Jaypee
Hotels LTD, ITC Hotels Limited.
The hotel industry can be further categorized into three
segments: hotels, restaurants and contract caterers.
The hotels in India can be broadly classified into the following
segments:
1.Star rated hotels
2.Heritage hotels
3.Budget hotels
4.Unclassified hotels
1) Star rated hotel
These are mainly situated in the business districts of metro
cities and cater to business travelers and foreign tourists.
These are considered to be very expensive. They are built
over an area of up to 18000 sq. meters. These account for
about 30% of the industry. The star hotels are further
classified into six segments.
a) Five star deluxe f ) one star
b) Five star
c) Four star
d) Three star
e) Two star
B.W.T.I.B.A 34
(a) Five Star Deluxe & Five Stars:
These are restricted to the four metros and some major
cities like Bangalore and Hyderabad. The customers of
these hotels are mostly foreign business and leisure
travelers, senior business executives and top government
officials.
services provided by five star hotel
facility facilityParking facilities 24 Hours Front DeskGymnasium Baby SittingLaundry Cleaning Service BarSwimming Pool Business CentreParking - Coach/Bus Car Rental / Car HireParking / Car Park Cocktail LoungeRestaurant(s) Conference FacilitiesTour Desk Currency ExchangeWakeup Service DoctorGymnasium Laundry Cleaning ServiceSwimming Pool Parking - Coach/BusParking / Car Park Restaurant(s)Tour Desk Wakeup Service
(b)Three Star & Four Star:
These are located in all major cities as well as tourist
destinations. Their customer group ranges from middle level
business executives to leisure travelers
Services provided by three star & four star hotel
Facility Facility24 Hours Front Desk Air ConditionBar Coffee / Tea Making FacilitiesTelephone / Direct Dial Business CentreCurrency Exchange Conference Facilities
B.W.T.I.B.A 35
Doctor Front Desk Safe Deposit BoxGymnasium Laundry Cleaning ServiceRestaurant(s) SecurityTour Desk Wakeup Service
(c) One Star & Two Star:
These are located in major cities as well as in small city and
other tourist destinations. Their customers include usually
the domestic tourists. Services provided by one star & two
star hotel.
Facility Facility Free Parking Accepts Credit CardsDoctor on call Travel Desk Tour Planner Money ExchangeA/C and Non A/C Rooms Conference HallRestaurant Bar/LoungeIn house laundry / dry cleaning
Complimentary newspaper in lobby
(2) Heritage Hotels.
These are characterized by lesser capital expenditure and
affordability and include hotels running in palaces, castles,
forts, hunting lodges etc. The heritage hotels are further
classified as:
Heritage classic
a) Heritage grand
b) Heritage
Heritage Classic:
These include hotels built between 1920 and 1935.
B.W.T.I.B.A 36
Heritage Grand:
These include hotels built prior to 1920.
Heritage:
These include hotels built between 1935 and 1950.
(3) Budget Hotels:
Budget hotels especially cater to domestic travelers who favor
reasonably priced accommodations with limited luxury. These
are characterized by special seasonal offers, low and good
services.
Services of budget hotel
Facility FacilityAirCondition&non airconditionfacilities
Refrigerator
Railway picking facilities Currency ExchangeLaundry Cleaning Service NewsstandParking / Car Park Restaurant(s)Wakeup Service Medical help
(4)Unclassified:
These are low-priced hotels spread throughout the country. A
low-pricing policy is their only selling point. It accounts for
about 19 % of the industry.
B.W.T.I.B.A 37
5) RESTAURANTS
These typically include fast food chains, ethnic restaurants,
fine dining and coffee bars. The major players include Barista,
Mc Donald’s, Ruby Tuesday, bercos, etc.
6) CONTRACT CATERING
This includes any catering business unit that is formally not a
part of the hotel industry but is closely allied to it. Some of the
major players in this category include Sodexho, Compass
Group,
3.1 How star is given to the hotel
The most popular hotel ratings are based on two companies
Mobil which rates properties in Stars, and AAA which rates
properties in Diamonds. Both of these companies publish
travel guides and use their annual ratings of properties across
the world to help members distinguish between low and high
end properties.
1) One diamond
These establishments typically appeal to the budget-minded
traveller. They provide essential, no-frills accommodations.
They meet the basic requirements pertaining to comfort,
cleanliness, and hospitality.
B.W.T.I.B.A 38
2) Two diamond
These establishments appeal to the traveller seeking more
than the basic accommodations. There are modest
enhancements to the overall physical attributes, design
elements, and amenities of the facility typically at a moderate
price.
3) Three diamond
These establishments appeal to the traveller with
comprehensive needs. Properties are multifaceted with a
distinguished style, including marked upgrades in the quality
of physical attributes, amenities, and level of comfort provided.
4) Four diamond
These establishments are upscale in all areas.
Accommodations are progressively more refined and stylish.
The physical attributes reflect an obvious enhanced level of
quality throughout. The fundamental hallmarks at this level
include an extensive array of amenities combined with a high
degree of hospitality, service, and attention to detail.
5) Five diamond
These establishments reflect the characteristics of the ultimate
in luxury and sophistication. Accommodations are first class.
The physical attributes are extraordinary in every manner. The
fundamental hallmarks at this level are to meticulously serve
and exceed all guest expectations while maintaining an
impeccable standard of excellence. Many personalized services
B.W.T.I.B.A 39
and amenities enhance an unmatched level of comfort.
The following is based on personal experience:
One thing to keep in mind is that a hotel can have everything it
needs to be a 5 star or 5 diamond property but unless it has
great customer service then it will never get past a 3 star
rating! The hotels and properties that get a four star or 4
diamonds rating (or higher) excel in customer service.
Now, the highest level of a rating is either 5 stars or 5
diamonds. The difference between a four diamond or star and
a 5 rated hotel is AGAIN the level of customer service. At a 5
star/diamond property you are pretty much treated like royalty
and well taken care of. For instance, things I remember from
the AAA guidelines are that at a five star property you
personally taken to your room by a host, they leave a gift (like
chocolate or?) on your pillow, and you receive a personal note
from management thanking you for your stay. Of course there
is a lot more.
There thing that based on the high level of customer service
that is required of 5 star/diamond properties, the sizes of the
hotels are generally small around 200 rooms or less.
You want to put all of this into context lets use Las Vegas as
an example. For the longest time (long before hotel ratings i.e.
customer service became a factor) Caesars Palace and the
Golden Nugget downtown were the most consistent 4 star
AND 4 diamond properties. Their level of customer service
was top notch. The only thing preventing them from getting a
B.W.T.I.B.A 40
5 star rating was that they were limited by their sheer size and
numerous rooms. For a long time, other properties found it
very hard to go from a 3 rating to a 4 rating. Remember, the 3
to 4 rating is the division where customer service comes in.
Properties such as the MGM Grand found this out. They got a
4 star rating one year by Mobil but were still rated by AAA as a
three diamond property. The following year, Mobil ranked
them back to a 3 star property
B.W.T.I.B.A 41
Chapter - 4- challenges to hotel industry
1. Shortage of skilled employees:
One of the greatest challenges plaguing the hospitality
industry is the unavailability of quality workforce in different
skill levels. The hospitality industry has failed to retain good
professionals.
2. Retaining quality workforce:
Retention of the workforce through training and development
in the hotel industry is a problem and attrition levels are too
high. One of the reasons for this is unattractive wage
packages. Though there is boom in the service sector, most of
the hotel management graduates are joining. Other sector like
retail and aviation.
3. Shortage of rooms:
The hotel industry is facing heavy shortage of rooms. It is
estimated that the current requirement is of 1, 50,000 rooms.
Though the new investment plan would add 53,000 rooms by
2011, the shortage will still persist.
4. Intense competition and image of India:
The industry is witnessing heightened competition with the
arrival of new players, new products and new systems. The
B.W.T.I.B.A 42
competition from neighboring countries and negative
perceptions about Indian tourism product constrains the
growth of tourism. The image of India as a country overrun by
poverty, political instability, safety concerns and diseases also
harms the tourism industry.
5. Customer expectations:
As India is emerging as a destination on the global travel map,
expectations of customers are rising. The companies have to
focus on Customer loyalty and repeat purchase.
6. Manual back-end:
Though most reputed chains have IT enabled systems for
property management, reservations, etc., almost all the data
which actually make the company work are filled in manual log
books or are
Simply not tracked.
7. Human resource development:
Some of the services required in the tourism and hotel
industries are highly personalized, and no amount of
automation can substitute for personal service providers. India
is focusing more on white collar jobs than blue collar jobs. The
B.W.T.I.B.A 43
shortage of blue collar employees will pose various threats to
the industry.
Chapter- 5-government policy
Government policy
To unlock the huge potential in this sector, the government
has taken various initiatives for the development of this sector.
Launch of Incredible India campaign to promote tourism
both in domestic and international markets.
Recognition of spare rooms available with various house
owners by classifying these facilities as "Incredible India
Bed and Breakfast Establishments"', under 'Gold' or 'Silver'
category.
B.W.T.I.B.A 44
A new category of visa, "Medical Visa" ('M'-Visa), has
been introduced which can be given to foreign tourists
coming into India for medical tourism.
Ministry of Tourism has tied up with United Nations
Development Programme (UNDP) to promote rural tourism.
5.1 Government support: (as per 2008 data)
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 government seems to have
realized the importance of tourism and is willing to spend
towards the development of the industry. The ‘Incredible
India’ campaign is a product of this realization. The focus on
infrastructure,
modernization 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 proactive ness shown by the
government.
Federation of Hotel & Restaurant Associations of India, often
known by the acronym, FHRAI, is the Apex Body of the four
Regional Associations representing the Hospitality Industry.
FHRAI provides an interface between the Hospitality Industry,
Political Leadership, Academics, International Associations
and other Stake Holders.
B.W.T.I.B.A 45
FHRAI is committed to promote and protect the interests of
the Hospitality Industry by actively seeking better privileges
and more concessions for the Industry. FHRAI members are
always kept abreast with the latest trade information and
trends, statistical analysis and reports on various topics that
have a direct impact on the Industry, government notifications
and circulars.
FHRAI helps the Hospitality Industry to grow, prosper and
keep in pace with the developments in the International
scenario.
With more than 3300 members comprising of approximately
2052 hotels, 1016 restaurants, 150 associate members and the
4 regional associations, FHRAI is truly the voice of the
Hospitality Industry that brings several million dollars to the
exchequer and employs more than 15 million direct workers.
Secure for the hotel industry its due place in India’s economy;
project its role as a contributor to employment generation, and
sustainable economic and social development; highlight its
crucial role in the service to tourism industry as the largest net
foreign exchange earner; help raise the standards of
hoteliering and to build an image for this industry both within
and outside the country.”
5.2 Step taken by hotel association of India to grow hotel
industry
Having established itself in 1996, with the objective of
securing for the Hotel Industry its rightful place in the Indian
Economy, Hotel Association of India in a short period of time
B.W.T.I.B.A 46
has succeeded in creating a strong platform to voice the
concerns and the aspirations of the Indian Hoteliers.
In less than a decade of its existence, the Association has
several notables to its credit. Some landmark achievements
are enumerated as follows:
1. Export house status for tourism and hospitality industry
2. Tourism export promotion council.
3. SARRC Hotel Association established international code
of conduct to govern relations between hoteliers, travel
agents and tour operators
4. Legal 'first' for hotel industry.
5. Surveys on the impact of travel advisories in hospitality
industry
6. Setting up of confederation of Indian travel and tourism
industry
7. Making Indian hotels disabled friendly.
8. Fiscal benefits to the hospitality industry.
9. Re-structuring in hospitality business
10. World tourism day celebration.
September 27 is recognized as the World Tourism Day.
While all hotels celebrate it,
11. member service
HAI provides various professional services to its member
hotels.
These services include but are not limited to:
B.W.T.I.B.A 47
Information bulletins.
Directory of Hotels - the first hospitality industry
magazine of its kind in India;
Hai directory of hotels
5.3 Recession
In the wake of global recession, the Federation of Hotel &
Restaurant Associations of India (FHRAI) has advised its
member hotels to slash the room tariffs by 15 to 20 per cent.
This move will also portray India as a cheaper destination
compared to other South-East Asian countries. The decision is
expected to be announced at the World Travel Market (WTM)
which is presently taking place in London. The decision was
taken on the suggestion made by Sujit Banerjee, Secretary,
Ministry of Tourism, and Government of India to FHRAI
delegates at a meeting held in the first week of November to
assess the impact of global meltdown in the tourism sector in
India.
FHRAI is in the process of sending a circular to the member
hotels requesting them to slash the room tariffs by 15 to 20
per cent. Confirming the same, Dr Sunil Gulati, Honorary
Secretary, FHRAI said, “The Ministry of Tourism is helping us
in many ways and we should consider their suggestion in order
to maintain a cordial relationship.
B.W.T.I.B.A 48
Chapter:- 6 Hotels in Ahmedabad
Ahmedabad, the city of Ahmed Shah (Medieval ruler of
Gujarat), is known for its rich past and its association with the
Mahatma (Great Soul), also known as Mohandas Karamchand
Gandhi. The city offers the traveler a unique style of
architecture, which is a blend of Hindu and Islamic styles
(Indo-Saracenic style of architecture). The monuments of
Ahmedabad mainly date back to the 15th century. Ahmedabad
has been known for its industry since medieval times.
Presently it is famous for its textile mills and is often referred
to as the 'Manchester of the East'
5star hotel
4star hotel
3star hotel
2star hotel
Business hotel
Budget hotel
taj residency ummed
Cama park plaza
Hotel neelkanth
Hotel ambassador
Taj residency ummed
Hotel ambassador
Holiday inn hotel
Comfort inn
Hotel kllassic gold
Hotel host inn
Inder residency
Hotel kllassic gold
B.W.T.I.B.A 49
Inder residency
Sunset Silver oak hotel &resort
Silver oak hotel &resort
Le-merridien
Hotel westend
Hotel fortune landmark
Sarovar portico
Hotel fortune landmark
Hotel host inn
Hotel nest
Hotel nest
Hotel president
Quality inn
Quality inn Rivera hotel
Hotel president
Rivera hotelHotel neelkanth
Chapter:- 7 Up coming Hotels in
Ahmedabad
The Grand, Ahmedabad
The Grand Ahmedabad is a Greenfield project of Bharat
Hotels which will open starting 2008-09. Set in the splendid
historical city of Ahmedabad, the resort will offer 5 star luxury
& comforts.
B.W.T.I.B.A 50
Hotel Radisson, Ahmedabad
Radisson Hotel in Ahmedabad, which is due to open in May
2008. Radisson Hotel Ahmedabad will join a growing number
of hotels in the Radisson portfolio across India
Ista Hotels, Ahmedabad
Ista Hotels is a hospitality brand owned by IHHR Hospitality
Pvt. Ltd. Ista Hotels launched their first luxury Business City-
Hotel and Spa in Bangalore in 2006.
Courtyard Marriott , Ahmedabad
Marriott International is a leading lodging company with more
than 2,800 lodging properties in 68 countries and territories.
Lemon Tree Hotel , Ahmedabad
Ahmedabad, the bustling business and industrial capital of
Gujarat is getting ready to change with the construction of a
Lemon Tree Hotel in the central business district of
Navrangpura.
Hotel Citymax, Ahmedabad
After establishing its footprints in the Indian retail sector with
Lifestyle, Max and Home Centre brands, Dubai-based
Landmark Group is eyeing the hospitality pie.
B.W.T.I.B.A 51
Cambay Grand Hotel, Ahmedabad
A five star deluxe hotel at Ahmedabad is at initial construction
stage. The hotel will target the booming MICE market in
Ahmedabad city.
Ginger Hotel , Ahmedabad
Ginger hotels plan to tap the niche markets and target
customers, who were looking for a branded product at a viable
price.
B.W.T.I.B.A 52
Chapter:- 8 Brief about Hotels
8.1 Brief about Taj Hotel in Ahmedabad
Taj Hotels, Resorts and Palaces, today a global hospitality
chain with over 75 properties in over 60 locations, has been a
steward of social responsibility since its founding in Mumbai,
India, in 1903. As part of India’s premier business house, the
Tata Group, Taj Hotels and its holding company, the Indian
Hotel Company Co Ltd, are committed to serving its many
local communities by furthering education and skills training,
particularly among rural populations; preserving Indian art,
culture and wildlife, and promoting sustainable,
environmentally sound operations.
In an endeavour to reinstate its vision and efforts to boost
sustainable tourism and integrate environment management in
all business areas, Taj Hotels Resorts and Palaces presents
EARTH (Environment Awareness & Renewal at Taj Hotels), a
project which reiterates the conscious effort of one of Asia’s
largest and finest group of hotels to commit to energy
conservation and environmental management. EARTH has
received certification from Green Globe, the only worldwide
environmental certification program for travel and tourism.
B.W.T.I.B.A 53
About Green Globe
Green Globe is the international benchmarking and
certification programme for the travel and tourism industry
based on the Agenda 21 principles for Sustainable
Development endorsed by 182 Heads of State at the United
Nations Rio Earth Summit in 1992. . Green Globe, is the only
worldwide environmental certification program for travel and
tourism with participants in more than 50 countries Green
Globe is managed by EC3 Global, a subsidiary of the
Sustainable Tourism Co-operative Research Centre.
Taj hotel started in Ahmedabad in 2001. it is the 8 years old
hotel in Ahmedabad. In India there are 67 hotels of taj.
In taj Ahmedabad employee
They have 170 employee.
1 G.M.
9 Accounting House Keeping Security G.M. (A.H.K.S.G.M.)
10 Top Level
15 middle level
135 are employee staff.
Staff facility
Canteen facility
B.W.T.I.B.A 54
Lunch & dinner
Morning tea
They deduct 5 Rs. Per day charge from the salary of
employee for the staff facility.
Training mgr. is sumit goyal
Employee Shift in taj hotel
Morni
ng
6:30 to
2:30
Noon 2:30 to
10:30
Night 10:30 to
6:30
Future plan of Taj hotel
The Indian Hotels Company Ltd (IHCL), of the Tata Group will
launch hotels in Vadodara, Ahmedabad, Rajkot, Surat and six
other cities in Gujarat to cope with the ever-increasing
demand in hospitality industry. Prabhat Pani, chief executive
officer anddirector of Roots Corporation Ltd, a subsidiary of
IHCL, said that one hotel has already been launched in
Vadodara while another Ginger hotel will be opened in
Ahmedabad followed by Surat and Rajkot. The 96-room hotel
in the city is the 11th hotel that Ginger has added to its
growing chain across the country which includes
B.W.T.I.B.A 55
hotels in Bangalore, Pune, Haridwar, Bhubaneshwar, Mysore,
Thiruvananthapuram, Durgapur, Nasik, Agartala and
Puducherry.
8.2 Brief About Ginger hotel
Gujarat's industrial city has a long and tenuous history behind
it, making it an attractive destination for both business
travellers and tourists. Ginger Ahmedabad is located 30
minutes from the airport and the railway station, right behind
the famous Himalaya mall. There are a variety of hangouts
nearby, with the Drive-In theatre being the most frequented.
Ginger is just a five-minute drive from the SG (Sarkhej
Gandhinagar) Highway, which houses other famous malls like
B.W.T.I.B.A 56
Iskon, Gallop, and Fun Republic. Yet another attraction, the
Vastrapur Lake, is only 5 minutes away from the hotel.
With 94 well-furnished rooms, Ginger Ahmedabad will have all
the special features of Smart Basics™ such as Smart space™,
Safe zone™, meeting and conference room, gymnasium and
self check-in kiosk, geared to make your stay comfortable and
pleasant.
Ginger hotel was started on 15th November 2008. This hotel is
also introduced by the TATA group. This is a three star hotel.
This hotel is specially targeted to the business client people
only. Ginger is tie-up with home inn hotel which is the china
hotel.
Ginger utility
Ginger brings you accurate weather forecasts for two
successive days for all our hotel destinations. And what's
more, you can walkthrough the city's streets and look up hang-
out and tourist spots with the new Google maps facility.
value added services
Taxi and traveller's van service
Doctor on call
Check-in, check-out
12 noon
Security
In keeping with our heightened security procedures we
request you to provide your photo-identity proof while
checking-in. Foreign nationals are required to present their
Passport and valid Visa. Indian nationals can present any one
B.W.T.I.B.A 57
of these, which is mandatory: Passport, Driving License, Voter
ID card, PAN card or Credit / Debit / ATM card bearing the
holder's photograph
Shifts in Ginger hotel
Mornin
g
7:00 to
11:00
General 9:00 to
6:00
Afterno
on
2:00 to
10:00
Night 10:00 to
7:00
There are approximately 40 to 45 employee in the hotel
Organization structure of Ginger hotel
B.W.T.I.B.A
G.S.A. Assistant Officer
Employee
Employee Employee
58
Things that make you go yum, yum!
Ginger has tied up with The Harbour Market, at Ginger
Puducherry and Sayagi at ginger vadodara
The Harbour Market at the square meal™ in Puducherry, a
multi-cuisine restaurant by Mohanlal’s Taste Buds Restaurant,
specialises in coastal cuisine. Sayaji’s Buffet Junction at the
square meal™ in Vadodara, the only all-day buffet venue in the
city, allows you to choose from an assortment of vegetarian
and non-vegetarian dishes for breakfast, lunch, evening snacks
and dinner.
Future plan of ginger
Currently in India there are 16 ginger hotels & they want to open open other 9 hotels in next coming future.
B.W.T.I.B.A 59
Ginger sees room for 10 more hotels
Part of the USD 62 billion Tata Group Roots Corporation
Limited , which owns the “Ginger” brsnd of budget hitels plan
to invest around Rs 100 crore in Gujarat over the next five
years. The company is riding on the growing opportunities for
budget hotels amidst current slowdown .
“Gujarat has a lot of business travel happening in cities like
Ahmedabad and Vadodara . Contrary to common perception,
corporates don’t stop travel completely but cut down on cost
and go for budget hotels . in such a scenario , our Ginger
hotels have huge scop and therefore we plan to widen its
reach in Gujarat,” said Prabhat pani , chief executive officer of
Roots Corporation Limited . According to pani ,the company
will be investing between Rs 10 crore and Rs 15 crore on an
average on a Ginger hotel and plans to have such 10 hotels in
Gujarat in the next five years .
In its efforts to gain firstmover’s advantage in the organised
budget hotels market , Roots Corporation Limited is planning
more such Ginger hotels in cities like Surat,Rajkot and
Jamnagar.
B.W.T.I.B.A 60
Having launched 16th hotel of the company in Ahmedabad and
plans to add three more by the end of the financial year 2008-
09. “We plan to tack the total number of hotels to 30 by 2010 .
The idea to increase our footprint as much as possible by 2010
as several events including commonwealth Games will be
taking place in the country,” said pani. The cumulative
investment on hotels by the company so far has brrn of around
Rs 300 crore.
With an average size of 100 rooms per hotel , Ginger hotels
carry 3-star category and offers competitive rates of Rs 1000-
2300 per room . “We ofer much better prices than our
contemporaries like Hometel , Ibis and lemon Tree,” added
pani .
8.3 Brief about Sarovar portico Hotel
hotels are full service international
quality 3 star hotel brands. The accent is clearly on a very high
level of functionality. Portico hotels comprise a 24 hour world
cuisine eatery, and a modern resto-bar, in addition to meetings
and functions facilities of moderate capacities. Sarovar Portico
hotels are clearly distinguished by superior levels of
manpower training, with people competencies vastly superior
to competition hotels. Sarovar Portico Hotels are currently
present in Ahmadabad, Lonavala, Indore, Hyderabad, and
B.W.T.I.B.A 61
Chennai. Kochi, Manali, Shirdi, Goa and Badrinath and under
development at Siliguri.
Future Openings
Ahmedabad Park Plaza - Ahmedabad
111 Guest rooms and suites.
Multi-Cuisine Restaurant.
Meeting and Banquet Facilities
Business Centre
Laundry
Health Club
Wi-Fi Service
Chapter-9- Indian hotel sector: SWOT
analysis
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 the
world. With the Indian hotel industry capturing the attention
B.W.T.I.B.A 62
of the world, let us understand its strengths, weaknesses,
opportunities and threats.
(1) 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.
B.W.T.I.B.A 63
Along with endless natural splendors like the mighty
Himalayas, the vast Indo Gangetic Plains, lush tropical jungles
and a long coastline. A visit to the country 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 in average room rates, due to strong demand and not
much addition to supply.
ARRs: Average growth rate
B.W.T.I.B.A 64
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 government seems to have
realized the importance of tourism and is willing to spend
towards the development of the industry. The ‘Incredible
India’ campaign is a product of this realization. The focus on
infrastructure, modernization 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
B.W.T.I.B.A
city 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%
65
industry stands to gain from this proactive ness shown by the
government.
(2) 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.
Slow implementation
The lack of adequate recognition for the tourism industry has
been hampering its growth prospects. Whatever steps are
being taken by the government are implemented at a slower
pace.
Susceptible to political events
The internal security scenario and social unrest also hamper
the foreign tourist arrival rates.
(3) Opportunities
Rising Income:
B.W.T.I.B.A 66
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 last
three 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 aspiration products
and services.
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
B.W.T.I.B.A 67
will further lead to the development of new and improved
services. 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. Also the 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.
(4)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 can have serious impact the
performance. Events like 9/11, SARS outbreak and
Afghanistan and Iraq wars and the last was on 26th November
terrorist attack on taj hotel Mumbai that event seriously effect
B.W.T.I.B.A 68
eo the over all hotel industry. 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.
Increasing transportation facility:
It means suppose customer have only work of one or two hour in other
city or country than he can come because there increasing the
transportation facility. Earlier the transportation facility is not so much
develop that is why customer have stay there in the hotel but now a day if
customer want come than he can come by any time because of there are
many airways and railway facility develop so it the threats for hotel
industry.
Fluctuations in international tourist arrivals
The total dependency on foreign tourists can be risky, as there
are wide fluctuations in international tourism. Domestic
tourism needs to be given equal importance and measures
should be taken to promote it.
B.W.T.I.B.A 69
9.1 SWOT Analysis of visited hotels
SWOT Analysis of Taj Hotel
Strength:-
Strong brand image: Taj is the property of TATA so it
has a good brang image in the mind of customer.
High quality service: In taj hotel they are providing
different types of room service, swimming pool service, they
are providing laundry service, wi-fi internet service etc.
Motivated employee: taj hotel have skill & soft spoken
employee.
Good after sales service: taj hotel in not down the
regular customers name & birth date or marriage date of
that customer & they wish to the customer & they provide
discount to the customer.
B.W.T.I.B.A 70
Weakness:
Far from the city: this hotel is very far from the city so it
the weakness for this hotel.
They have not their own canteen department so it the
weakness for the hotel.
Opportunity:
Growth of population in Ahmedabad
Growing of consumer income
Govt. policy is to wards the hotel industry.
Threats
Strong competition in the hotel industry because there
are so many hotel in the Ahmedabad.
Threats of terrorism in the taj hotel because of in Mumbai
taj hotel attack of 11/26 it effect to specially to the taj hotel.
SWOT Analysis of Ginger Hotel
Strength:-
Strong brand image of parent company because parents
company of ginger hotel is TATA group.
Motivated employee in the ginger hotel they have good &
soft spoken employee over there.
B.W.T.I.B.A 71
Flexible mgt structure in ginger hotel the mgt structure
so simple & so easy that is why if hotel want to change it as
per situation than they can change the mgt. structure.
Weakness:-
Narrow product line they have just one type of room &
one gym. & one conference hall, restaurant so it has so
narrow product line.
They have not their own canteen dept.
Newly started
In corner area
Opportunity:-
Growing income of people
Govt. policy is to ward the hotel industry.
Growth of population in Ahmedabad
Threats:-
Strong competition
Threats of terrorism
SWOT Analysis of Neelkanth group of Hotel
Strength:-
High quality product
Good after sales service
Excellent product line
B.W.T.I.B.A 72
Motivated employee in the neelkanth hotel they have
good & soft spoken employee over there.
Weakness:-
Not so much reach brand image
Look of some hotel is not good like neelkanth palace,
neelkanth sahara etc.
In neelkanth sahara they have not a kitchen dept.
Opportunity:-
Growing income of people
Govt. policy is to ward the hotel industry.
Growth of population in Ahmedabad
They have there 8 hotel in Ahmedabad.
Threats:-
Strong competition
Threats of terrorism
SWOT analysis of Sarovar Portico Hotel
Strength:-
India’s fourth largest hotel chain
High quality product
Good after sales service
Excellent product line
B.W.T.I.B.A 73
Motivated employee in the Sarovar portico hotel they
have good & soft spoken employee over there.
Weakness:-
This hotel is in very slum area
Look of hotel is not so much attractive
Opportunity:-
Growing income of people
Govt. policy is to ward the hotel industry.
Growth of population in Ahmedabad
Threats:-
Strong competition
Threats of terrorism
Chapter –10 – PEST Analysis of Hotel
Industry
(1) Political factor:-
B.W.T.I.B.A 74
Govt. Policy affects the business in very deep.
The arrival of low-cost airlines and associated pries wars
have been given domestic tourist a host of option.
Government focus a tourism industry e.g.”ATITHI DEVO
BHAV” opening up opportunity for the hotel industry.
More over the government decision to substantially
upgrade 28 Regional airports in smaller tour and
privatization and expansion of Delhi and Mumbai airport
industry in India.
The upgrading of national highways connecting various
parts of India has opened new avenues for the development
of budget hotel.
In the govt of India’s” Incredible India’ destination
campaign have also helped the growth of domestic and
international tourism and consequently the hotel industry.
Removal of number of restriction in excise on outbound
charted fight including those relating to frequency and size
of aircraft.
The govt decision to treat convention centres as port of
core infrastructure has also fuelled the demand of hotel
room.
For past few years the boom in India’s hospitality
industry has been fuelled by favourable political situation.
In union budget 2007-08, the govt has also proposed a 5-
year holiday from income tax for, two, three or four star
B.W.T.I.B.A 75
hotel as well as convention centre with seating capacity of
more than 3,000 provided they be completed and begin
operation in the adjacent district of faridadaed, gurgour,
Ghaziabad or gautam buddhanagar during period of april1,
2007 to march 31 2010.
“The planning commission” high level group op services
sector has pegged the room shortage in the country at 1,
50,000 rooms by 2010 out of which 1, 00,000 more than it
budgeted in category.
Investment of US $11 bn over the next 2 year is expected
to be earmarked for hotel industry in India.
(2) Economical:-
In economical effect industry has to check out that what
the GDP of the industry is. The GDP of the hotel industry is
contributed to 13.21% in 2007
The hotel industry in India is going through an interesting
phase one of the major reason for the increasing in demand
for hotel room in the country seen till recently is the beam
in the overall economy and high graph in shelter like
information technology.
Now slowdown fear is now hovering on the sector.
In India form medium to long term the fundamental are
very perishing. The continued economic or with increased in
test in the India market and improved international access.
B.W.T.I.B.A 76
The leat of global economy melt down is being telt by
upcoming hotel project in India some of these venture are
like to be delayed or put a hold.
The hotel industry in India going though on interesting
phase one of the major reasons for the increase in demand
for hotel room in the country seen will recently boom in
overall economy and high in sector, like information
technology, telecom, retail and real estate.
A flowish economy helped boost demand for the industry
to encourage the tourism sector the govt is planning to
propose a conditional 10 year tax holiday for tourism.
(3) Socio-cultural factor:
Socio cultural factor includes two parts
(a) Socio
(b)Culture
If any industry are show to wards the society than you can
understand that society are developing the culture. If you
understand the socio factor than you can understand the
cultural factor.
(a) Socio factor: -
It include the demographical factor like
Population:-
B.W.T.I.B.A 77
India is the second largest population country of the
world more than 110 crore population is there. So
because of high population it is the positive effect to
wards the hotel industry because as population are more
hotel industry get more traffic & also occupancy rate is
increase at the time of marriage season.
Male-female ratio: -
In India male ratio is more than the female ratio so it
affects the marriage. And if there are only male people in
the society than it effect the marriage and if marriage is
not there than it is negative affect to wards the hotel
industry. And if there are female are not there than how
male enjoy the life with out life partner so it affect the
hotel industry so you have to check out the male & female
ratio in the society.
Domination of male & female: -
In India male are taking maximum decision than the
female but in European country the decision is taken by
the female so also it affects the hotel because if female
want to go for some enjoyment in outside with her life
partner & if life partner is not ready than how she go
outside so it affects the hotel industry.
Literacy level: -
Literacy level is law in India compare to western country
but literacy level is high compare to neighbor country like
B.W.T.I.B.A 78
shri-lanka, Pakistan, Bangladesh, Nepal, etc. so if
education level is high than students are go to study in
other state & or in other country also other country’s
students come to India so they have stay in hotel so it the
positive effects to the hotel industry so industry have to
show that what is the literacy level in country.
Income level: -
Now a days the income of a people increasing day by day
so if income will increase than people want more
enjoyment so it is the positive affect to the hotel industry.
Average age of society: -
In India there are teenagers & youngster are more than
the alder’s people & in America the mature people are
high than the youngster so in India teenagers &
youngster people want more enjoyment by going in hotel
& picnic etc so it is the positive affects to the hotel
industry.
Occupation are developing: -
Now a day in any country the business are developing at
a very faster rate so business people have go for do some
business deal in outside country or any other state so in
other country or outside state they have to stay in hotels
so it the positive affect to the hotel industry.
For example:-
B.W.T.I.B.A 79
Recent vibrant Gujarat was over at that time many
corporate people are came into ahmedabad at that time
the occupancy rate of every hotels are 100%. So it is
positive affects to the hotel industry.
(b) Cultural factor: -
Culture means it is the set of Norms, Value of ritual,
Philosophy of country is the highest important to any
industry. If you are not know the culture of any country
than you can not do the business in that country
For example: -
When Mc Donald newly came in to the India at that time
they sale the meat of cow all the Indian people were
angry because in Indian culture cow is a holiest animal of
the country
Neelkanth hotel also they are not providing any non
vegetarian food because they believe in swaminarayan
religion so before launching any product every industry
have to know the culture of that country.
In Gujarat also most of the people want Gujarati thali so
that you have to keep in mind.
In Italian country suppose any hotel want to launch the
product than they can not launch cone product because
they believe that cone is only food for peacock.
(c) Language: -
B.W.T.I.B.A 80
Language is also play an important role in any country.
Because whatever you communicate in your language it
may be some different meaning in other country.
For example:-
Suppose any people want to open hotel in any country
they have to the language of that country. Because he has
to work with other countries employee, customer so that
is also known by the any industry people.
Only verbal communication is not important but
nonverbal communication is also important
For example:-
Suppose in America you open your hotel but if you
communicate with the person or employee of that country
with eye to eye than he feel that you threaten from him.
But in Japan if want to communicate with eye to eye than
he feel that you are insulting that people. So language is
very important in any industry.
(4) Technological factor: -
B.W.T.I.B.A 81
Technological factors include following factor.
(a) Status of technology : -
Status of technology includes
Advance technology
Moderated technology
Suitable infrastructure for technology
Hear hotel industry have to check out that what technology
they are using right now whether it is advance, moderated,
or outdated technology. In hotel industry they are using
moderated technology
For example: -
In any in any of the hotel customer are checked when he
enter into the premises of hotel by electronic checker
machine. In neelkanth paradise they are using kitchen order
ticket for serving the customer. In every hotel they are keep
the C.C. T.V. Camera for watching the activity in the
campus, many hotel in India they have adopted the
technology of automatic car wash.
In taj hotel there are swimming pool is clean automatically.
So some how in Indian hotel industry have adopted the
technology but still they are far behind so we can call that
as moderated technology.
B.W.T.I.B.A 82
(b) Pace of technology: -
Pace of technology means how fast technology is changing
in the country. In the country like America, china, Japan,
India the technology is taking change at very fast rate as
compare to china, Japan, & American technology the Indian
is not fast growing as in that country so it is the backward
point to hotel industry in India.
(c) Cost of technology: -
Cost of technology means what is the cost of adopting
technology.
For example:-
In hotel industry if hotel want to adopt new technology like
underground swimming pool, underground hotel in the sea.
Technology of automatic cleaning of room so it is very costly
in India so it is backward point to the hotel industry in India.
(d) Suitable infrastructure for technology: -
Suitable infrastructure for technology means in this govt.
support & physical infrastructure availability is very
important.
B.W.T.I.B.A 83
Potential entrants
RIVALRY AMONG EXISTING FIRMS
BuyerSupplier
Substitutes
In India govt. support is good for hotel industry like build
the building and next coming years the more hotels also will
come so govt. support is in favor of hotel industry.
And also India have high no. of professional like M.B.A. so
there are a good infrastructure support by the govt. to the
hotel industry.
Chapter-11-porters 5 force analysis of
hotel industry
Entry barriers Threats of
new entry
Bargaining Bargaining
power power
constraints pricing
B.W.T.I.B.A 84
(1) Threats of new entry:-
Hotel industry the growing industry so growing industry
often faces the threats of new entry. Many new hotels are
coming in the near future so there are very tough
competitions in this industry.
Govt. policy:-
In many cases govt. policy & regulation are important for
entry barriers. Govt. policy is liberal to wards the hotel
industry few years ago govt. restricted for foreign
companies to enter into a India but now a days the govt.
become so liberal towards the entry of foreign companies.
Govt. has also give the appointment to unitech lines up to
B.W.T.I.B.A 85
develop 35 hotels in next 7 years. So it is the good news
towards the hotel industry.
Cost disadvantages independent of scale:-
It means that whatever cost advantage is enjoying by
already established hotel that cost advantage can not enjoy
by the next coming hotels. For example: - already establish
hotel have learning or experience, favorable raw materials,
advertisement expenses, favorable location etc.
In hotel industry cost of capital is so high& the return is law
so it is the negative point towards the hotel industry.
Product differentiation:-
It means that how your service is differing by brand image,
customer loyalty & product attributes etc.
For example:-
Taj is having good brand image in the mind of customer &
also tata have new introduced a ginger hotel so that ginger
hotel not face so much problem to enter in the market but
some other new brand hotel want to come than they have to
spend lots of cost to attract customer in to this competitive
world.
Monopoly element:-
B.W.T.I.B.A 86
Monopoly in terms of product, technology, effective control
over raw materiel supplier, distribution channels etc. in
hotel industry now a days there are no monopoly power
enjoyed by any hotels because there are so many hotel in
Ahmedabad, some how taj hotel have some monopoly in 5
star segment in Ahmedabad but there are also other 5 star
hotel in Ahmedabad like holyday inn hotel so now a days
there are no monopoly in hotel industry.
Capital requirement:-
To open the hotel lots of capital is required & in hotel there
are high risk & law return situation so that is why to a new
hotel is very difficult task.
(2) Rivalry among existing firm:-
State of growth of technology:-
B.W.T.I.B.A 87
Hotel industry is growing round about 8% growth so growth
of hotel industry is high.
Fixed & storage cost:-
In terms of hotel industry the fixed cost is very high like cost
of buildings, salary of regular employee & executives. But in
case of storage cost in service industry service can not be
stored except like grain etc but vegetable can not be stored
long time so in case of hotel industry there are less storage
cost.
Product or service standardization & switching cost:-
In hotel service if service is standard & qualitative than
customer Go to that kind of hotel for example:-
Ginger & neelkanth is the 3 star hotels but only difference is
that ginger is only targeting business client people & hotel
neelkanth is targeting both business & normal customer.
Service is almost same in both hotels in neelkanth hotel
gym. Is not there but in ginger hotel gym. Is there but room
rate of ginger is high than the hotel neelkanth so because of
high price customer can divert to the neelkanth hotel.
Diverse competitors:-
Rivalry becomes more complex & unpredictable when
competitors are very diverse in there strategy, origins,
personalities, relationship to their parents etc.
B.W.T.I.B.A 88
For example:-
There are many competitors in the market there are many
hotels in Ahmedabad so to know the strategy of the hotels is
very difficult because every hotel have different-different
strategy to attract the customer. For example: - taj hotels
parent company is ‘TATA’ and it has a good brand image in
the mind of customer so it is very difficult to fight against taj
for other hotel.
Switching cost:-
In some cases a barrier to entry is created key switching
cost. It means that customer is not loyal to wards only one
hotel there are many hotel. And also taste & preferences of
the customer will change now & than for example :-in
Sarovar portico hotel swimming pool facility is not there &
customer go to the Sarovar and he want swimming pool but
swimming pool is not there than customer next time go to
the taj hotel so Sarovar portico hotel lost the customer. And
for Sarovar hotel cost of new ancillary equipment is very
high.
(3) Threats of substitutes:-
Threats of substitute means there are also some other small
hotel than the star rated hotel like
Resorts
B.W.T.I.B.A 89
Low price Dharmshalas
Short term paying guest house
In short term paying guest house hear some
customer don’t want to stay for the longer time
period so customer go to this kind of guest house at
very cheapest price. But in star rated hotel customer
have to pay rate of full day even he want to stay for
an hour so this guest house is best option for the
customer so this is a threats for star rated hotel.
(4) Bargaining power of buyers:-
In star rated hotel customer can not bargain for
price but they shows the same rated hotel price like
hotel ginger & hotel neelkanth in hotel ginger rate is
high compare to neelkanth & facility are also mostly
same so customer more prefer to the hotel
neelkanth.
Important determinants of the buyer power are
following
The extent of standardization or differentiation of the
product:-
Now a day customer are so literate & more aware about
price & quality of the service it means that customer
shows both standard service at less price so it shows the
high bargaining power of customer.
B.W.T.I.B.A 90
Switching cost:-
Switching cost means customer can switch to go the
hotel in which he can not get standard service so it also
shows the high bargaining power of customer.
Extent of buyer’s information:-
Now a days customer is became so much aware about
information given in the internet & newspapers so they
go in that hotel which charge less price and good service.
So in this also customers bargaining power is high.
(5) Bargaining power of suppliers:-
Importance of concentration & domination in the
supplier industry:-
It means that that in hotel industry suppose there are only
one supplier than bargaining power of supplier is high. For
example :- In vegetable there are lots of farmer in the
B.W.T.I.B.A 91
market so hotel can purchase from any one, in grain also
there are many supplier of grains so again there are bargain
power of the supplier is low. In milk there are only Amul is
selling the milk so hotel have to purchase from Amul only.
Importance of buyer to the supplier:-
It means that in eye of supplier the hotel is very important.
Suppose one hotel purchase the 30 to 40% of selling of the
supplier & if hotel switch to purchase from that supplier
than that supplier lost very important buyers because 30 to
40% selling is go to that hotel at that time bargaining power
of the supplier is low.
Importance of product to the buyer:-
It means that hear product of supplier is important for hotel
if hotel switch to purchase that product from that supplier
than hotel will loss heavily because only that suppliers
product customer want.
For example:-
For taj hotel havemore ice-cream company is very important
because at one time when Bill Clinton came to the taj at that
time he demand the havemore ice-cream so have more is
very important for the taj hotel so hear bargaining power of
buyer is low & bargain power of supplier is high.
Substitutability of product:-
B.W.T.I.B.A 92
If there is substitute product of havemore at same quality &
at fewer prices than taj can stop to purchase havemore so
hear bargain power of supplier will be low & bargain power
of buyers will be high.
Chapter -12-After Mumbai attack security position in ahmedabad
hotels.
Taj residency ummed
B.W.T.I.B.A 93
Security is very tight.
Armed anti-terrorist squad (ATS) police personnel in
addition to private security guard deployed.
No one can enter without identity proof .
Le-meridien
Car are checking trolley at the main entrance with
inverted mirror trolleys.
A physical check of dickey and bonnet is also carried out
but bags are not checking and people entering the hotel.
They have CCTV camera to monitor movement inside the
premises.
General manager have given strict instruction to their
staff keep an eye on people carrying any suspicious-looking
bulky bags.
Fortune landmark
Bags are checking at the gate, but there are no physical
frisking.
There are no lady cops to check female guest.
The pride
Cars are checking at the main gate.
B.W.T.I.B.A 94
They are strict at time of frisking physically but they are
not checking bags of the customer.
No female security guard to check female guest.
They have purchase certain security measures.
They are going to install CCTVs, mirror trolleys and door
metal detectors soon.
The Grand bhagvati.
One armed security guard and a metal detector is
deployed at the entrance.
Bags are checking thoroughly before allowing guest
inside.
They already have CCTVs in place and have tight
security.
If somebody refuse to check we explain that it’s for their
own security, being vigilant is the only way to stay safe.
The Metro pole
Zero security, though they have two watchman at the
entrance, but not bother to check the guest.
They are not even checking bulky bag of the guest.
They are planning to install metal detector at the
entrance.
B.W.T.I.B.A 95
12.1 Risk factor to hotels in Ahmedabad
Terrorists were in casual dress, carried heavy bags on
there backs and automatic rifles in there hands.
Modus operand was same-open indiscriminate fire on
target without warning.
Security personnel are keep guessing on the exact no of
terrorist and their intent.
Operation lasted all night where police personnel also
loss their lives.
Mostly terrorists are performing Wednesday for attack
and 26 date of any month.
Fewer escape routes for people inside making task more
difficult for police.
(Source:-TOI 10 th nov ’08)
B.W.T.I.B.A 96
Chapter-13
7 P’S
OF
B.W.T.I.B.A 97
SERVICE
MARKETING
Chapter -13.1- PRODUCT
"Product is anything which is offered to customer for attention,
acquisition and consumption which will satisfy the wants and
needs of the consumer." In hotel their main product is rooms,
food & basic facilities. We can classify this product in two
types.
1) Tangible Product
2) Intangible Product
1) Tangible:-
B.W.T.I.B.A 98
Tangible product means that which we can see or touch.
Which is last longer time period? In hotel there is room,
gymnasium, swimming pool, towel, bad, soap, shampoo this all
things are tangible goods. Which are provided by the hotels?
Tangible goods normally consumed in one or few uses. These
goods are consumed quickly & purchased frequently. Hotel
have their main product is room &food & basic facilities.
2) Intangible:-
In the intangible goods, it we can not see, touch but we can
feel it. This is not for last longer .services is also intangible in
nature .In hotel services are welcome, communication, respect
this all product is intangible. Services are intangible
insapreble, variable &perishable products.
Environment affect to the hotels in India:-
(1) Arrival of more foreigners: -
How environment affect to the hotel industries .which
type of environment India have & on which way hotel
industries will increase in India .India is developing
country. In India the places o for tour is now day
increases. So foreign people may come in big strength .so
B.W.T.I.B.A 99
hotel industries will grow up. They get maximum foreign
consumer. So environment is affect with the industries.
(2) Different-different type of customer: -
Consumer views are always changed or fluctuate. They
have their own view about hotel facilities. Which type of
customers & which type of facilities they get? So they
different views about hotel industries. Higher class
consumer wants higher class facilities from the hotel.
(3) Income is increasing: -
In India hotel industries will increase way because India
is developing country .It’s economy will increasing people
have increasing income? In India, people’s income is
increasing. So development is in positive way.
(4) More youngster: -
In India ‘the ratio of youngster is highest in the
world .their income is also increasing so economy is also
growing up so country also grow so hotel industries is
also grow up in India.
(5) DINKS (Double Income No Kids)
In India there is concept of “DINKS” means that double
income no kids. It means increase in income of people but
B.W.T.I.B.A 100
they don’t waste money or they don’t spend more in the
expenses .they believe in saving or increase their income.
(6) India people is also believe in life compensate: -
They have their own view for the income. So there will be
growth in economy .In this way hotel has positive way to
increase the services or services quality.
(7) More corporate are coming up: -
In India marketing is vary increasing way. Incorporate
world many people have connected. They have corporate
crowd about the industries.
Level of the product
B.W.T.I.B.A 101
(1) Basic product :-
Basic product means basic needs of consumer which is
satisfied by the product .In hotel basic product is rooms,
food, cleaning ness. The fundamental services that the
customers are really buying. Hotel guest is buying `rest
&sleep’. The second level, marketer has to give core
benefits into basic product. Thus a hotel room includes bed,
bathroom, towel, desk, dresser, and closet.
This all product is basic product which must be required
every customer expected basic product in hotel.
For example: -
In Sarovar portico
Their basic product is 6 types of room’s i.e. Standard,
superior, deluxe, studio suit, executive suit, ground suit.
They are providing food which is their own.
They have 69 rooms & suits .In every room clean bed, single
&double bed as per customer choice, fresh towels, working
lamps, and desk. This all are basic product is given by the
Sarovar portico.
In Neelkanth hotel
Their basic product is 5 types of rooms. That is A/C deluxe,
suite, non A/C suite a/c Maharaja, A/C honeymoon they are
provide food facility which in some hotel they gave in like in
neelkanth Sahara there are food facility is on contract base.
B.W.T.I.B.A 102
They have total 250 rooms with a/c &non a/c. In every room
consider clean & bad wase fresh towel, purity water, and
desk. This all basic product they have.
In Taj Hotel
In this hotel there basic product room’s types is 5types
rooms are available That is pool suite, executive, deluxe,
pool view & garden room .This is main basic types of rooms.
They are providing food facilities which are excellent
facilities. It is their own.
They have 91 rooms in this hotel their basic product is clean
bad, fresh towel, shampoo, soup, body lotion, mineral water
this all facilities are given by this hotel.
In Ginger hotel
In ginger hotel they have only one type of room that is
standard room. They have 93 rooms.
In host inn
In this hotel the basic product is executive room, deluxe
room, super deluxe room, they have 36 rooms in that hotel.
(2) Expected Product:-
Expected product means a set of attributes, features that
customer except when they get or purchase the product.
Hotel guests expect a clean bed, fresh towel, working
lamps, & a relative degree of quite because most hotels can
meet this minimum expectation. The traveller normally will
B.W.T.I.B.A 103
settle for whichever hotel is most convenient or least
expensive.
In expected product that will analyse that which type of
facilities &services are expected by customer in that
product.
For example:-
In neelkanth
They are providing basic facilities or which the customer
has expected according to that the hotel is providing
services. They are providing clean rooms, hospitality
services, food &also fresh water they are also providing
them a peaceful atmosphere for the consumer.
They have their own restaurant also that patang. The all
expected product is available by the all the branches of
Neelkanth Groups Of hotels.
In Sarovar portico
They are give them a clean bad, room, facilities, food or ma
other product which customer needs. They are also
providing reading, Desk lamp, fresh water, clean bathroom
with soap shampoo etc.
In Taj hotel
B.W.T.I.B.A 104
They are provide customer a better facility like fresh food ,
clean room , mineral water also basic product which is
expected by the customer .They are provide best facility to
the customer they have their own food or kitchen so every
customer have their own choice & view.
In Ginger hotel
They provide service for only the business client people
they provide good food as per the choice of customer veg.
& non veg. both. They have not there own kitchen. They
have gym. Facility, conference hall facility
In host inn hotel
They also provide good & clean room, mineral water
facility, food facility, they have there own kitchen.
(3)Augmented Product:-
Augmented product is a product which exceeds the
customer .Expectation to attract more & more customer &
to create on augmented product company should involve
into customer helps to prepare & provide superior customer
experience.
Product augmentation leads the marketer to look at the
user’s total consumption system. The way the user performs
the tasks of setting & using products & related services.
Each augmentation add cost augmented benefits soon
become expected benefits. In hotel guests expect a remote
B.W.T.I.B.A 105
control television set. This means competitors will have to
search for still other feachers & benefits.
As companies revise the price of their augmenter product
some competitors offer a “stripped –down” .Version at a
much lower price. Thus alongside the growth of fine hotels
like emergence of lower cost hotel & motels .catering to
clients who simply wants the basic product.
The augmented product of hotels is as follows.
For example: -
Sarovar portico hotel
It has their augmented product is travel desk, pick up &
drop facility, pink services, Airport transfers Shalimar
facilities in banquet & conference hall facilities. This all
facilities are augmented facilities for the hotel .All customer
B.W.T.I.B.A 106
want augmented product & they have to pay entry charges
for entering in the hotel.
Banquet & conference:
Venue Theatre seating
‘U’ shape
Class room
Reception/cocktails
Shamiana
500 120 150 1000
Mandap 175 60 80 500
Durbar – 1
100 50 70 350
Durbar – 2
90 30 50 250
Taj hotel
They have their augmented product is pick up facilities from
railway station &airport .They also provide vehicle for the
tourist. Banquet hall &conference room for meeting,
parking facilities. They have three types of banquet hall
which are gokul, dwarka, & Mathura hall. This all the
augmented product, they have to change &the customer
vary attract from this type of product.
In Ginger hotel
They have pick-up facility, good parking facility, they
provide bath kits to the customer, they provide LCD T.V.
facility, the square meal restaurant, laundry facility etc
Neelkanth group hotel
B.W.T.I.B.A 107
They have their augmented product is good staff, television
facilities, telephone, banquet hall &conference room also
provided by them. They are providing also water, towel,
soap, shampoo, bathroom freshener, etc. This is augmented
product is to attract the customer.
In host inn hotel
They have television facility, banquet hall facility of 160
people capacity, they also providing bath kits to the
customer.
(4) Potential product:-
Potential product is a product which is combines all the
possible up gradation &transformation into the product
might launch in future. In this companies search for new
ways to satisfy the customer with new variety of product.
Users create their own cereal blend from ingredients that
meet their specific testes, health needs; one woman receive
her cereal packages with cornflukes, and slice almonds,
bread &fruits etc.
Hotel remembers guest preferences and assigned rooms
with those preferences in the mind .they empower to make
employees to take decisions. &provide training to tackle
with customers problems and provide the best solution to
them. They review the services delivery process to imagine
everything that would go wrong and then take preventive
steps.
B.W.T.I.B.A 108
Sarovar portico
It has their own potential product like multycuisine
restaurant, meeting hall &banquet hall. They are doing
outdoor catering & indoor also. They have fitness centre &
doctor facilities in the hotel.
They are changing entrance facilities .This facilities are vary
alternative to customer. Customer is satisfied with their
higher
facility of the facilities. They have one travel agency that is
coxed &king.
Riverview view Restaurant Restaurant
Suite room Guest room
B.W.T.I.B.A 109
Neelkanth hotel
In this hotel they are provide entire ordinary things is
conference hall ,travel home service ,E-mail ,net service ,
computer, torrent pharmaceutical company for Neelkanth for
that their rate is high. They give the assurance of safety to
customer. They provide to the customer for outdoor catering,
they also provide laundry facility to the customer etc.
This all types of potential product are provided by the
Neelkanth group of hotel.
In Taj hotel
They are provide a potential product is coffee shop, Narmada
restaurant for dinner, banquet hall, indoor catering, parking
areas, swimming pool, health centre, beauty parlour for ladies
& gents, garden facility this all are potential product is
provided by the hotel Taj. Customer has much choice for the
potential facility which is given by the hotels.
In Ginger hotel
B.W.T.I.B.A 110
They provide mini fridge, wi-fi net service, conference hall
facility, soft spoken employee etc.
Twin room
In host inn hotel
They provide the service of wifi internet facility, laundry
facility, doctor on call service, safe deposit lockers, money
exchange facility etc
They have two travel agency
IMG: -Imaginative Group of travel. It is international
company
ITP: - it is national level
B.W.T.I.B.A
Restaurant
111
'RELISH' The Multi Cuisine Restaurant offering delicious gourmets delight Serving Indian, Punjabi, and Continental & Chinese delicacies.
Product Mix Decisions of Hotels
Product mix:-
The set of all lines and items that and particulars sellers for
sale.
B.W.T.I.B.A 112
Four important dimensions: - Width, length, Depth, and
consistency.
(1) Product mix width
It refers to the total no of different product line the company
carries.
(2) Product mix length
It refers to the total no of items the company carries within
its product line.
Product Line Length:-
Neelkanth hotel
Rooms Conference hall RestaurantA/C & non A/C room 1 in paradise In paradiseA/C honey moon 1 in neelkanth inn In other they
have contract base
A/C deluxe 1 in neelkanth pansicura
A/C executive 1 in neelkanth blues
A/C suiteMaharaja suite
Taj hotel
Rooms Entertainment product
Conference hall
Restaurant
Executive suite 1 swimming pool
1 conference hall
1 restaurant “narmada”
Deluxe suite 1 gymnasium Coffee shop “Jacaranda
B.W.T.I.B.A 113
”Pool viewGarden view
Ginger hotel
Rooms Entertainment product
Restaurant
Standard room 1 conference hall 1 restaurant “ The Square meal”
1 gymnasium
Sarovar portico hotel
Rooms Entertainment product
Conference hall/banquet hall
Restaurant
Standard room 1 swimming pool
Shamiana Riverview the multicuisine
Deluxe suite 1 gymnasium ManadpSuperior room Durbar 1Studio suite Durbar-2Executive suiteGrand suite
Host inn hotel
Rooms Conference hall/banquet hall
Restaurant
Executive room Durbar 1 One restaurant
Deluxe room Durbar-2Superior deluxe room room
(3) Product mix depth
B.W.T.I.B.A 114
It refers to the no of version offered of each product in the
lines.
Product depth:-
Neelkanth hotel
Rooms No.A/C & non A/C room 65A/C honey moon 33A/C deluxe 43A/C executive 45A/C suite 43Maharaja suite 21Ginger hotel
Rooms No.Standard room 93Restaurant 1Conference hall 1
Taj hotel
Rooms No.Deluxe 02Executive room 02Pool view room 33Garden view room 54Restaurant 01Coffee shop 01Gymnasium 01Swimming pool 01Conference hall 01Sarovar portico hotel
Rooms No.Standard room 02Deluxe suite 03Superior room 20
B.W.T.I.B.A 115
Studio suite 18Executive suite 10Grand suite 16Restaurant 01Banquet hall 02
Host inn hotel
Rooms No.Executive room 12Deluxe room 15Superior deluxe room room
09
Conference hall 01Restaurant 01
(4) Consistencies
Consistency of product mix referees to how closely related
The various product lines are in a use, production
requirement, channel or some way. Product consistency
refers that the product is perform same function
&distribution channel is also same.
For example
In all this hotel room is performing same function that is
give comfort level to the customer.
B.W.T.I.B.A 116
Chapter –13.2 - Pricing
Introduction
In the determine the price of the product marketing it is very
easy to decide price because in product marketing marketer
can decide the cost but in case of service marketing marketer
can not decide the price easily.
So in hotel industry it is difficult for a hotel to exercise
differential pricing except for certain specific purposes. These
may typically be differentials in tariffs and prices during the
peak and lean season; group rates; contracts rates for airline
crew; special conference rates or special concession to attract
customer ; tourism year syndrome, etc. however’ by and large
‘hotel pricing tends to follow or conform to pricing standards
applicable to the particular city area or resort ; to competitive
B.W.T.I.B.A 117
hotels; to the amount of traffic being generated in the hotel
location; tourist location; international or national conference
venue; and soon. Nevertheless, hotel pricing also suffers from
a degree of lack of flexibility, although to a lesser extent than
that of the hotel product. The depreciated valuation of the
hotel property, its financial management efficiencies, credit
policies and other factor, specially cost of empty room nights
on fixed overheads, also have a bearing on tariffs and Manu
prices.
Tariff Of hotels
Tariff rate of neelkanth group of hotel
Neelkanth Sahara
Category Single Double
Non a/c room 750/- 900/-
a/c deluxe room 1000/- 1200/-
Royal deluxe room 1200/- 1400/-
B.W.T.I.B.A 118
Honey moon suite room - 2000/-
Maharaja suite room - 2200/-
Neelkanth paradise
Category Single Double
Non a/c room 850/- 1000/-
Deluxe room 1200/- 1400/-
Prime suite room 1800/- 2000/-
Extra bed 500/- -
Tariff rate of taj hotel
Category RatesExecutive room 18500/-
Deluxe suite room 25000/-Pool view 10000/-
Garden view 9500/-
They are paying 6% luxurious tax.
They are paying sales tax 15%.
Tariff rate of Sarovar portico hotel
Category Single DoubleStandard room 3500/- -Superior room 4600/- 5100/-Deluxe room 5100/- 5800/-`studio suite 5800/- 6400/-
Executive suite 6500/- 6500/-Grand suite 8000/- 8000/-
B.W.T.I.B.A 119
They are paying 6 % luxurious tax
On food vat in 4 %
Tariff of host inn hotel
Category Single DoubleExecutive room 1500/- 1800/-
Deluxe room 1700/- 2000/-Super deluxe room 2100/- 2500/-
Extra bed 400/- -
They rare paying tax 4% unto 2000Rs. And above 2000Rs.
6%.
Tariff of Ginger hotel
Category Single DoubleStandard room 2799/- 3299/-
Approaches of prices
(1) Cost based pricing
Hear the price is decided according to the cost of hotel.
There are two types of cost
B.W.T.I.B.A 120
Variable cost & fixed cost
Total cost =fixed cost + variable cost
Fixed cost in the hotel
o Cost of buildings
o Salary of employee & executive
o Room maintenance
o Infrastructural facility cost
Variable cost in hotel
o Doctor service
o Car cost
o Raw material cost
(2) Competition based cost
It means as per the competition they charge the rates.
There are many hotels in Ahmedabad so there is a very
tough competition in the hotel industry so hear in hotel
industry according to the competition they charge the rate
of rooms.
(3) Value based pricing
It means what value of your hotel in the mind of customer.
According to that base they decide the price.
For example
Hotel taj
B.W.T.I.B.A 121
It has a good brand image in the mind of customer so they
higher the high price.
Ginger hotel
This hotel is a newly started hotel this is a 3 star hotel &
ginger is the introduced by the TaTa group so it has a brand
image of tata. So they are charge the high price than
neelkanth hotel.
Hotel Sarovar portico
It is the four star category property & it has less brand
image as compare to the hotel taj that is why they higher
less rate than the hotel taj.
Hotel neelkanth
It is the 2 or 3 star property hotel & it has a law brand
image as compare to hotel taj & hotel Sarovar portico that is
why they higher less rate compare to other hotel.
Hotel host inn
It is a 2 star property hotel so it higher less rate as compare
to other hotel.
B.W.T.I.B.A 122
There are two parts of pricing
(1) Monetary aspects
Monetary aspect is related with the quality of the service
monetary aspect is related with
(a) Price quality relationship
Price & quality you can judge in the product but in the
service marketing marketer can not judge the price &
quality
Why customer can not judge because
Hotel service is highly variable
Because when customer first time go to any hotel taj,
Sarovar, or any hotel He get good service but when he go
to another time at that time he may not get good service
as compare to earlier service because service is not
provided by the machine but it is provided by the
employee.
For example:-
Sarovar portico hotel
At one time they people give chips of fruit to the customer
at that time there is a chips of orange in the dish. But
when another time customer is go to the hotel at that
B.W.T.I.B.A 123
time he not get the chips of orange so it is varies of
service.
Tailor made package will involve differential
price:-
Tailor made service means according to the exact need of
customer.
For example: -
In Sarovar portico
Hotel they have banquet hall
Of mandup up to 500 people capacity
Durbar 1 up to 350 people capacity
Durbar 2 up to 250 people capacity
They have different type of room according to the requirement of customer.
In Taj hotel
They also provide service of conference hall, coffee bar, marriage party, small business meet service. Etc.
In Ginger hotel
They have conference hall up to 14 people capacity. They have one restaurant etc.
In Neelkanth hotel
They also provide service of conference hall, marriage party, and birthday party.
B.W.T.I.B.A 124
In Host inn hotel
They provide “grand durbar” 1 & 2 , state of the art
banquet/conference/meeting hall for the business %
contemporary world to meet their needs for holding
meetings, seminars, workshop, get-together &reception.
Mechanization of services
Mechanization means technology of the services.
Neelkanth, Taj, Ginger, Sarovar, & host inn they have
some how do the mechanization of service.
Like internet facility, car wash facility, automatic clean of
swimming pool in taj hotel, computer through booking
facility, computer through ordering facility from the room
by customer. In ginger hotel they have one automatic
machine in that when customer make a coin than
chocolates or whatever demand by customer that will
come.
(2) Non monatory aspects
Certain cost is non monetary cost.
Comfort level to the the customer
B.W.T.I.B.A 125
Comfort level to the customer means according to the
requirement of customer they provide room.
For example
A/c room, non a/c room, deluxe suite room, maharaja
suite room, honey moon suit room, garden view room. So
hear according to the requirement of customer they
provide comfort level to the customer.
Physical effort for providing services :-
Hear customer is come to your hotel but if hotel people
are not putting physical effort to provide service to the
customer than customer will not satisfy.
For example:-
If hotel people don’t give one glass of water to the
customer & do not response to the customer’s problem
than customer will not satisfy.
Psychological
B.W.T.I.B.A 126
It means some times customer except some thing extra in
the room.
For example:-
Taj hotel provide
o Pool view room
o Garden View room
Sarovar portico hotel provide
o Studio suite room
o Grand suite room
Neelkanth hotel provide
o a/c room, non a/c room
o maharaja suite room
Suppose customer want garden view room & he go to
Sarovar portico hotel than he can not get that type of
room from Sarovar portico hotel. So for garden view room
he has to go taj hotel.
Chapter -13.3 - Place
INTRODUCTION
Services are inseparable. We can not touch it, we can not test
it etc. services should be provided where customer are
located. In the hotel industry there many different services to
B.W.T.I.B.A 127
provide to the customer like pick up, same day laundry facility,
doctor on call, parking, internet, spa, swimming pool, gym, etc.
In the services there are three different parts:
1) Distribution channel
2) Location
3) Focus
(1) Distribution channel
When distribution channel are proper than services are
good & better to provide the customer. So that customer
will be satisfied with services.
(A) Intensive distribution
Intensive distribution means creating maximum service
outlets in the different place which is not applicable in the
hotel.
But in neelkanth hotel there are 8 hotels in Ahmedabad.
Neelkanth Sahara, neelkanth inn, neelkanth paradise,
neelkanth palace, neelkanth panshikura, neelkanth crystal,
neelkanth bliss, which provide different service to the
customer.
Tata have also introduce two hotel in Ahmedabad first is taj
hotel & second is ginger hotel.
(b) Limited outlets
B.W.T.I.B.A 128
Limited outlet means there are limited location selected
for hotel. Like that host inn there is only one hotel in
Ahmedabad in khanpur.
(2) Service distribution strategy
In the hotel industry there is different service distribution
strategy in different hotel. Service distribution strategy
means how to provide service to the customer &which type
of customer. There is different part in service distribution
strategy.
(A) Multi site strategy
Multi site strategy means standardize operation &
procedure & main objective of cost efficiency.
(B) Multi services strategy
In multi service strategy we can define that different sight
&different service & different offer to the regular
customer. They use multi service strategy for better
segmentation.
IN NEELKANTH SAHARA
Comfort for customer
Well Furnished Rooms Non A/C., A/C. Rooms, A/C Deluxe
Category and prime suites beautiful design with modern
amenities.
B.W.T.I.B.A 129
Specially arranged spacious seeking arrangement and
refrigerator in all prime suite
Direct dialing on Telephone for Local calls and STD on
request.
Color TV in each room With In-House Video Movies,
Satellite Programmes.
Round the clock room service.
Parking faculties.
All major credit cards accepted.
Airport & Railway Station Pick-up & Drop with Nominal
Fare
On customer call service
Air, Rly. & travel booking facilities.
Taxi & sights-seating arrangement on request.
Same day laundry services.
Doctor on call services.
Postal & courier services.
IN NEELKANTH PARADISE
Comfort for customer
Well Furnished Rooms Non A/C., A/C Deluxe Category
and prime suite beautiful designed with modern amenities.
Specially arranged spacious seeking arrangement and
refrigerator in all prime suites.
B.W.T.I.B.A 130
Direct dialing on Telephone for Local calls and STD on
request.
Color TV in each room With In-House Video Movies,
Satellite Programmes.
Parking facility.
All major credit cards accepted.
Airport & Railway Station Pick-up & Drop with Nominal
Fare
On your call service
Air, Rly. & travel booking facilities. Taxi & Sight-seeing
arrangements on request.
Same day laundry service.
Doctor on call.
Postal & Courier Services.
IN SAROVER PORTICO
Parking facility
Daily laundry facility
Pick up facility
Wine provided to the customer
Wifai, television, sofa, water, etc.
Garden provided to the customer for celebrate birthday
party, marriage.
Direct dialing from room
24 hours room service
B.W.T.I.B.A 131
Doctor on call
IN HOST INN
Direct dialing from room
24 hours room service
Same day laundry service
Travel desk
All major credit cards accepted
Doctor on call
Money exchange facility
Safe deposit locker
Wifai zone
TAJ HOTEL
Television
Wi-fi internet facility
King or queen size beds
Study table
Safe deposit locker Bath kits in bathroom
Direct dialing facility
A/C control to regulate room temperature
Voice mail
Electronic safe
Safe deposit locker on request
GINGER HOTEL
Smart sleep
Tea/coffee maker
LCD T.V.
B.W.T.I.B.A 132
Mini fridge
The Square Mealtm Restaurant
Give ‘N’ Take Laundry
Wi-Fi /net zone
Meeting room
(C) Multi segment strategy
Multi segment strategy means different customer to
provide to different services that means different segment
wise provided service to the customer. This strategy use
for new target customer only.
(3) Location
Location is the main part of the hotel industry. Location is
the heart of the whole hotel industry. If location is wrong
than hotel is not running very well. All profit of the hotel is
depending upon the location. In the hotel main problem is
that the cost of the hotel.
Taj residency ummed
International airport circle,
Hansol, Ahmedabad.
Hotel Host inn
B.W.T.I.B.A 133
Opp, Le Meridian, khanpur,
Ahemedabad-380001.India
Sarovar portico
Bhawn’’s college road, Ahmedabad.
Neelkanth Sahara
2nd floor iscon square,
Opp, kothawala flat, paldi, Ahmedabad.
Neelkanth Paradise
Ellisbridge cross road,
Opp, town hall, Ellisbridge, Ahmedabad.
Ginger hotel
Behind Himalaya mall,
Drive in road,
Ahmedabad 380015.
(4) Focus
In the service marketing we saw that which need of the
customer& wants of the customer & than service provided
to the customer. In the hotel industry main focus in the
service provided to the customer. They saw service keeping
B.W.T.I.B.A 134
in view the needs & wants of specific group or specific
customer in a specific location.
Important consideration in location.
(1) Access: -
Access means near to any railway station or near to air port
or nears to bus station.
For example: -
Neelkanth hotel
Hotel Neelkanth Sahara
Airport (13k.m.)
Railway Station (5 k.m.)
Private Luxury Bus Station on Walking Distance.
Hotel Neelkanth Paradise
Airport (13k.m.)
Railway Station (5 k.m.)
Private Luxury Bus Station on Walking Distance.
Sarovar portico hotel
This hotel is 3 k.m. from the railway station
8 k.m. from the airports.
Host inn hotel
3 k.m. from the railway station
8 k.m. from the airports.
B.W.T.I.B.A 135
Taj hotel
1 k.m. from the airport.
10 k.m. from the railway station.
Ginger hotel
12 k.m. from air port.
12 k.m. from railway station.
(2) Parking facility: -
There should be proper parking facility in the hotel if there
is no proper parking facility & there is no security of
vehicle than customer not comes again to your hotel
Parking facility in neelkanth paradise: -12 car capacity
Parking facility in neelkanth Sahara: -7 to 8 car
Parking facility in Sarovar portico: - 15 to 17 car
Taj hotel: - 25 to 30 car
In Ginger hotel:- 10 to 12 car
B.W.T.I.B.A 136
(3) Traffic problem: -
If there are traffic problem to reach to the hotel than
customer feel dissatisfaction.
For example:-
Hotel neelkanth is situated at the area of paldi where the
traffic so much that customer can face lot of problem of
reach over there from the airports.
Sarovar portico hotel is in khanpur area where customer
can easily reach because it is very near to the railway
station & some how it is far from the airport but there is
not so much traffic face by the customer.
Host inn also situated at the khanpur.
Taj hotel is situated very near to the air port & far from
the railway station so customer of airport can not face the
problem to reach the taj hotel but the customer of railway
station face the problem of traffic. So hotel taj can loss the
customer of railway station.
Ginger hotel is also very long from the airport railway
station but it is in the area of west zone & it the near to the
S.G. Highway & from Himalaya mall customer can go
directly to the hotel.
(5) Surrounding:-
B.W.T.I.B.A 137
In neelkanth paradise & in neelkanth Sahara there are look
of building is good but the surrounding area is very crowdie
& there are also very slum area surrounding this hotel so
surrounding area of this hotel is not good.
Surrounding area of taj hotel is beautiful there are very
charm environment.
Surrounding area of ginger is also not good because in
behind of the hotel there are very slum area is there.
In Sarovar portico & host in hotel also the surrounding area
is not good.
(6) Tite competition:-
Tite competition means there are many hotels in that area.
In taj hotel area there many competitors are there in paldi
area also there are many hotels are there in khanpur area
also there are many hotels.
B.W.T.I.B.A 138
Advantages & disadvantages to the hotels
Hotel Advantage Disadvantage
Taj hotel Expansion opportunity
Far from the city
Near to airport Many competitors
Green environment
Ginger hotel near to the himalaya mall, C.G. Road
Far from the air port.
west zone area In the corner place.
Host inn Area of the hotel. Very slum area.
near to air port & railway station
Many competitors.
Sarovar portico Area of the hotel. Very slum area.near to air port & railway station
Many competitors.Sarovar portico hotel
Neelkanth hotel Near to railway station
Very crowdie area
Business area of paldi
Many competitors.
B.W.T.I.B.A 139
Chapter-13.4 -Promotion
Introduction
Perhaps this element of the hotel marketing mix is most
important as it is directly responsible for bringing customers
to the hotel. Hotel marketing communications are either direct
or indirect. The direct communication is through personal
selling, advertising, sales promotion and direct mail.
Appropriate messages are conveyed to those who directly
influence decision to buy the hotel product. Personnel selling
of the hotel product are effective when long-term relationship
between the hotel and the customer is sought. It is also
required where the level of business per customer is likely to
be significant. Indirect marketing communications for hotels
include public relations and publicity, both of which may and
may not form a part of the hotel’s marketing communication
programme but may function independently. The major
elements of the hotel communication mix are mass media
advertising, direct mail, sales promotion, public relation, and
publicity.
B.W.T.I.B.A 140
Promotion elements
(1) Advertisement : -
There is a big difference in advertisement of product and
service because product are tangible in nature so customer
can judge the product and he can touch the product but in
case of service or hotel customer can not judge product
until he use so hotel industry is depend upon following
factor like
Message of advertising:-
Message in terms of punch line, in terms of logo, in term of
jingle etc.
For example:-
In taj hotel symbol is
B.W.T.I.B.A 141
In taj hotel they give advertisement in
Hoarding
They tie-up with Pepsi
As a brand they do the advertisement
In internet
Some time they give advertisement in the news paper
They do not provide any magazine
As a brand they do the advertisement
In Ginger hotel logo
They also providing virtual tour in the internet that how
hotel look. They also give advertising in the TV &
hoarding.
Punch line of ginger hotel
“Stay for less. Shop for more.”
In neelkanth hotel
B.W.T.I.B.A 142
They have two agency for advertisement
Ford development
Challenge agency
Yellow pages
Websites
By telephone
Hoardings
The neelkanth hotel is not providing any virtual tour so if
customer want see how that hotel look in the internet
than
customer can not see that so they may loss the customer
because of this tangible clues.
In Sarovar portico
Hoardings
Website
By telephone
In host inn
B.W.T.I.B.A 143
Banner
Venus agency
Just dial
In kem chho serial at 7 p.m.
(2) sales promotion : -
It means to promote sales for the shorter time period. Again
it is different from product because the reason of
parishability and intangibility. In product marketing you
give the physical product but in case of service marketing
you can not give product in terms of physical.
For example:-
In all four hotels they do not give any discount in the pick
season but they are giving discount in only lean season. The
discount is only for shorter time period after lean season
they do not provide any discount to the customer. October
to march there is a peak season in the hotel industry
because in that days there are many festivals comes like
diwali, navratri, Christmas etc.
B.W.T.I.B.A 144
(3) personnel selling : -
personnel selling is very important factor in the service
marketing because in case of product customer can himself
go and judge the product but in case of hotel product until
the use of product you can not judge because hotel person
can not go to customer and tell the customer that use our
product it is better than other so hear who are selling the
product that employee should be trained better.
For example:-
In case of hotel the room boy and employee are serve the
customer so that employee should be very polite in language
and he can solve the all the problem of customer so
employee should be properly trained.
(4) Direct marketing : -
Direct marketing means service are provide direct to the
customer there are no any advertisement, personnel selling,
sales promotion etc. but hear company give browser to the
customer , with the help of internet this direct marketing is
growing very rapidly.
For example:-
B.W.T.I.B.A 145
These all hotel provide the browser to the customer and
they also have the internet booking facility.
(5) publicity & public relation : -
It means it is the paid form of product exposer to the target
customer. Publicity includes social activity, press
conference.
For example:-
These all four hotels are not doing any social activity but
they only list down the regular customers name & they wish
them on their birthday or marriage day and offer them
attractive discount.
B.W.T.I.B.A 146
There are two parts in the promotion
(1) Marketing communication : -
(a) Pre-purchase stage: -
perception of the consumer regarding price : -
Promotion activity establishes the symbolic values
associated with purchase. Consumer have certain
perception some promotional activities more directly add
the value.
For example:-
Taj hotel
The perception of consumer towards taj is high because it
is well known brand in India as well in ahmedabad also
finally it is very costly in nature as compare to sarovar
portico hotel , neelkanth hotel & host inn hotel. So high
class people perception is more on taj hotel but middle
class & lower class people perception is more on
neelkanth hotel & sarovar portico hotel.
In ginger hotel
They have only targeted to the business client people so
business client people have more perception about ginger
hotel.
B.W.T.I.B.A 147
Performance : -
Performance is depends upon the service. Performance is
important factor because how you attract more customers
because it is highly depend on your performance weather
service is good or not good.
For example:-
Performance of taj hotel is better than sarovar portico
hotel & neelkanth hotel & host inn hotel. And the
performance of ginger hotel is better than the neelkanth.
The established services and image increases the
consumer consumption confidence & reduces consumer’s
risk of buying services like taj group. But neelkanth &
sarovar portico hotel is the economic hotel so they have
opportunity.
Psychological consequences: -
Psychological consequences are also important because it
affects the service also. Now a day the terrarium attack is
effects the whole hotel industry especially to taj group of
hotel.
B.W.T.I.B.A 148
For example:-
` There is a threat of consumer to visit taj hotel so other
hotel like neelkanth and sarovar portico can take the
opportunity to attract customer of taj hotel.
(b) Communication and consumption stage
The medium of communication will based on the decision
on how to create most favorable awareness amongst the
target audience
The role of communication mix within the promotion and
communication plan comprise following steps.
Identify the target audience
Determine & setting objectives
Message development for right communication
effects.
Selection of communication mix.
The role of provider will make the consumer perception
clear.
For example:-
B.W.T.I.B.A 149
Hotel sarovar portico they are targeted most business
working people
Hotel taj is targeting high income group people &
executives.
Ginger hotel is targeting only business client people.
Hotel neelkanth & host inn hotel is targeting middle
class people & lower class people.
(c) Post communication stage: -
Promotion post purchase ensures continuous satisfaction
and retention of the customer. Performance of services is
matches with customer’s perception.
For example:-
In each visited hotel they people told us that every time
we get the complain about service and they try to
improve the quality of service, and try to improve the
employee’s skill to provide best service.
Compare to other hotel perception about taj hotel service
is good in the mind of customer.
(2) service communication: -
B.W.T.I.B.A 150
(a) Provide tangible clues: -
Marketer can make consumer perceive the service as
tangible with the help of tangible elements within the
product surround and use them to provide clues.
For example:-
In host inn
In Sarovar portico hotel
In neelkanth hotel
B.W.T.I.B.A 151
Hotel Ginger
Single room Double room
Taj hotel
(b) Focus on employee development: -
B.W.T.I.B.A 152
It means that in hotel the employee are the people who
serve the customer so employee should be proper trained
so they can serve better to the customer.
Encourage word of mouth communication employee
It means that if the language of employee is very polite to
the problem of customer than customer will more satisfy
and they also tell to the other that service of this hotel is
good.
For example:-
In neelkanth hotel the manager of that hotel is learn to
his employee that do not angry in any situation occur with
customer.
In taj hotel also they encourage people to serve better to
the customer by giving training & some extra benefit as
we can see that in taj Mumbai when there were
terrarisum attack the employee of that hotel are with the
customer & save the most of customer with own life make
in danger.
B.W.T.I.B.A 153
(c) Focus on benefit: -
Hotel are mainly target to the high level people , tourist,
and business working people because they are more
using the service of hotel.
For example:-
In taj hotel they are more targeted to the high income
people and V.I.P. people, business people, N.R.I. people &
this hotel is very near to the airport.
In neelkanth they more target to the middle level people
& this hotel is more targeting Indian people hear more
N.R.I. is not come.
In Sarovar portico it is targeting more business people
& middle level people & N.R.I. people but there are less
customer of N.R.I. are coming.
In host inn they are more targeting the middle level &
Indian customer.
(d) Build image
Marketer use advertising to build favorable image for
services and especially for the corporate behind the
services. A significant benefit of the advertising is its role
in influencing and motivates employees of services
employers also.
B.W.T.I.B.A 154
For example:-
The building an image by taj hotel by using this image
many corporate companies are tie-up with taj hotel like
Pepsi.
Chapter -13.5- People/internal
marketing
What is internal marketing?
“All the techniques that are used for external customer with an
end goal in mind to create a satisfied employee. This is called
internal marketing.”
Introduction
Generally in the product marketing customer are divorced
from factories. There may be a difference of space & time.
Intermediation is created by marketing function & distribution
system, the customer are rarely comes in contact with the
B.W.T.I.B.A 155
marketer. This happens only in exception cases when
customers are involve in marketing activity.
But in case of hotel industry or any other service industry
customer have to come in contact with the service provider.
This physical proximity and interaction is often the key to the
service experience. A service firm may possess all necessary
competencies and resources to provide the right kind of
service, but in the absence of appropriate interpersonal
experience, the customer would develop negative perception
of overall service quality. It is therefore, critical that a great
amount of attention is paid to personnel dimension of the
service business.
Importance of people in service marketing
The importance people or participants of people are very
important in both service and product with out people any
service or product organization can not produce any thing.
But importance of people is more in service than the product
because people perform their task and operation in factories
B.W.T.I.B.A 156
insulted from direct customer influence. What happens in the
factories is hidden from the customer direct interface between
the customer and the marketer people are rare. On the other
hand, people also work in hotel industry but with a significant
difference the key to marketing of hotel service is the direct
interaction between hotel employee and customer. The
customer and service provider interaction is the moment of
truth when the service is either marketed pr de-marketed. The
customer provider interaction is one of the important aspects
of hotel or any service organization. So important of people in
service marketing is very important.
Types of service person
There are two types of service person
B.W.T.I.B.A 157
(1) High contact employee
High contact employee means that employee who is coming
in very frequent contact with the customer for the longer
time period.
For example:-
In hotel industry
Room boy
Employee of providing food
Receptionist
(2) Low contact employee
Low contact employee means the employee who is not come
in to the interaction on regular basis or on rare cases that is
called low contact employee.
For example:-
Manager
Kitchen department employee
This people only in interaction with customer when
customer & high contact employee quarrel or arise some
difficult situation with the customer.
B.W.T.I.B.A 158
Strategy for internal marketing
This is the strategy for internal marketing while managing
the people. Hear human resource manager of any hotel they
have to train to the high contact employee to how to deal
with customer & how to talk with customer etc.
(1) Staffing: -
“Staffing means selection of right person, at right place, at
right time in the organization is called staffing”
(a) Recruitment: -
Hotel h.r. manager have to recruit the employee from the
proper source.
For example:-
In neelkanth hotel
For executive: - they recruit person from M.B.A. or hotel
management institute.
For employee: - I.T.I. or 10th or 12th pass.
In taj hotel
Top level: - M.B.A. institute & hotel mgt. cource
institute.
Middle level: - graduate & hotel mgt.
Lower level: - 10th or 12th attempt & I.T.I. people.
B.W.T.I.B.A 159
In ginger hotel
For top level M.B.A. or hotel mgt. is require.
For lower level 10th or 12th pass is require.
In sarovar portico hotel
Top level: - diploma hotel mgt & 5yrs. Experience
people.
Middle level :- graduate people
Lower level:-10th or 12th pass.
Host inn hotel
Top level: - hotel mgt. or M.B.A.
Middle level: - hotel mgt or graduate is enough.
Lower level: - 10th or 12th pass.
(b) Selection:-
In internal marketing you have to decide proper criteria
for selection of employee by written exam or by practical
exam.
For example: -
In taj hotel: -
They take first written exam and than take practical exam
and than after take personnel interview & group
discussion.
B.W.T.I.B.A 160
In Ginger hotel
They takes two round of interview & than after they
select appropriate employee.
In neelkanth hotel: -
They are taking both exams written and practical.
In sarovar portico hotel: -
They select the employee by written test & than after
they take practical exam for kitchen department people.
In host inn: -
They only show qualification & take personnel interview.
(c) Training: -
Training is the heart or core function of internal
marketing for selecting right people.
There are two type of training
on the job :-
It means when employee is working at that time
giving the training.
Off the job training :-
B.W.T.I.B.A 161
It means employee is specially called at one place
and gives them training.
For example:-
In taj hotel: -
They provide training on monthly basis on the job & off
the job both.
They give the target to the employee to achievement and
if the employee can not achieve it than they give the
training as per requirement to that employee.
In Ginger hotel
They provide on the job training to the employee they
sent the employee to goa for training on companies
expenses. They also provide software training to the
customer it is the first asian hotel who is providing
software training in software training they made one
software of training in that software every thing is shown.
In neelkanth hotel: -
They give the training some times on weekly basis &
some times on monthly basis on the job & off the job both.
In sarovar portico: -
Hotel they provide training on the job & off the job both
and according to the performance they give the training
that perform less they give training to that employee.
B.W.T.I.B.A 162
In host inn hotel: - They only provide off the job
training to the employee.
(2) Organizing:-
“Organizing means listing down of the closely related
activity and delegate the authority and responsibility to the
perform the job.”
(a) Empowerment :-
“It means delegate the power to the employee when
manager delegating the authority and responsibility to
the employee to perform the job.”
For example:-
In taj hotel: -
They give authority according to the qualification and
experience and practical exam and performance.
In neelkanth hotel: -
According to the experience and qualification and
performance of employee they give authority to the
employee.
In sarovar portico hotel: -
B.W.T.I.B.A 163
According to the experience & performance they give the
authority to employee.
In host inn: -
They give authority according to the performance.
(b) culture :-
It means belief system and norms & team spirit develop
in the organization.
For example:-
Belief system of taj hotel serves the customer in any
situation
In taj hotel Mumbai they save the customer when
terrorist attack was there.
Belief system of neelkanth hotel
“Atithi devo bhavah”
(c) motivation
“Motivation means inspire the employee to achieve the
goal.”
here are two way to motivate the employee.
promotion:-
B.W.T.I.B.A 164
means promotion to employee on the basis of his
knowledge, ability, skill, achievement.
For example:-
In taj hotel
They decide the criteria for promotion
Scaling is “0 TO 5”
If some one get five rank they give promotion to that
employee.
treating employee as customer :-
It means equal treatment to employee as we treat to
employee.
For example:-
In taj hotel
o Separate rest room
o Carrem playing room
o Separate kitchen for employee for their own choice
of food.
In Ginger hotel
o They have only rest room for the employee
In neelkanth hotel
B.W.T.I.B.A 165
o Separate rest room
In sarovar portico hotel
o Education to the employee
o Family gathering
o Best employee of the month
Host inn
o Separate rest room for the employee
(d) support
It means hotel manager have to provide continuous
support in terms of mental support.
Technical support :-
It is only applicable in insurance sector.
Process support :-
It means when one employee is busy during pick
season to one customer at that time other employee
will help him to provide service.
For example:-
In all four hotels they recruit the extra employee when
there is pick season.
B.W.T.I.B.A 166
(d)Rewarding:-
It means provided compensation reward to your employee
extra than the salary. Reward must be competent enough
than the other organization is providing.
For example:-
Taj hotel providing enough reward to their employee than
other hotel provides like as under
o Fringe benefit like insurance, providend fund.
o Bonus.
Other three hotels are providing only bonus to the
employee. No any extra than the bonus.
B.W.T.I.B.A 167
Chapter -13.6- Process
Introduction
Process is a starting to end point of any service activity. In
service participation of customer is important but in the
product there is no customer participation. So in case of
service marketing it is very difficult to decide the way of
process. If there is a mistake in the entire service process than
customer feels dissatisfied.
The service process that creates the service experience may
involve processing of people, information and material hence,
three types of service processes can be distinguished.
(1) People processing:-
People process makes the people or customer pass through
a sequence of activity in order to create a service
experience.
For instant, process of transferring customer from airport to
hotel and security check is people processing process.
For example:-
People process in taj hotel
The people pick-up the customer from the airport & railway
station and they check all the information about the
B.W.T.I.B.A 168
customer and check the identity consumer for the security.
They also keep the C.C.Camera in the airport & railway
station.
People process in neelkanth hotel
They keep the C.C. Camera in the air port and railway
station and they keep attention on customer and they pick-
up the customer from the airport & railway station.
Neelkanth hotel also provide one ‘C’ form to the foreigner
he has to fill that form. In that form every details of that
foreigner should be there like
From which country he comes ?
Where he want go after this ?
Which-which place he want to go ?
People process in sarovar portico
They also pick-up the customer from the airport & railway
station
And check the information about that customer for the
security.
People process in host inn
B.W.T.I.B.A 169
They also follow the same process as all hotel follow only
they have no any C.C. Camera in the airport & railway
station.
Ginger hotel
They pick-up the customer from the airport they checkout
the identity & they give one ‘C’ form to the customer to
know all the details about the customer.
(2) Processing of information:-
Processing of information means the booking process of
consumer at the receptionist department and they provide
Manu card for inform the customer that which type of room
are provided by hotel.
For example:-
In taj, ginger, neelkanth, sarovar portico, & host inn provide
information to the customer about services.
(3) Material processing:-
Finally the room is provided to the customer according to
the requirement of customer and provides all needed things
to the customer.
B.W.T.I.B.A 170
Types of process
(1) Continuous production:-
It includes process start from one hand & continuous to
end without any interruption and logical manner it is
called as continuous production. In hotel this continuous
production is not applicable.
(2) job-shop production:-
It means there are different department in the
organization hear process is not continuous there are
separate department for each activity.
B.W.T.I.B.A 171
They provide service according to the need of customer.
In every hotel there are different department for provide
services like
Receptionist department
Kitchen department
(3) Intermittent:-
It means service is providing according to the need of
customer, hear when customer need service you provide
service & when customer don’t need service than it is
stop.
For example:-
In hotel they provide facility of car for out side catering,
they provide wi-fi internet facility according to the need
of customer.
Service process matrix
In the service process matrix service are categorized in
two basic parameters.
1. labour intensive / capital intensive
2. level of customization
B.W.T.I.B.A 172
Certain service are highly labour intensive and certain
service are exactly the need of customer it is also called
as tailor made service.
Service process matrix chart:-
Labourintensive
High low
Level of High
Customization
L ow
(1) Professional service: -
It is high in labour and high in customization.
For example-
C.A., lawyer, legal consultancy services. Because this
service is not requiring more capital and it is more exactly
the need of customer it means it high on customization.
(2) Mass services:-
This service high on labour and law on customization it
means it is require more labour and it is not exactly to the
need of customer.
B.W.T.I.B.A
Profession
al service
Service
shop
Mass
service
Service
factory
173
For example:-
Retailing & Educational services
(3) Services shop:-
It is law of labour and more of capital and high of
customization.
For example:-
In hotel industry this service is applicable because hotel
industry requires huge capital investment and it provide
service exact the need of customer.
(4) Service factory:-
It is law of labour and law of customization it is not
applicable in the hotel industry.
Value addition in the process
B.W.T.I.B.A 174
(1) check-up
B.W.T.I.B.A
Pick-up
Reception
Service within room
Service outside room
Exit
Customer relation
ship mgt. afterSales
service
175
For example:-
In taj hotel, in neelkanth hotel, sarovar portico hotel & host
inn they pick-up the customer from air port & railway
station in car
In car they provide facility of
Television
A/C car
Music system
(2) reception
In this hotel people is check the customer’s identity and
book the room for customer. If receptionist not provide
proper information about the customer’s problem than it is
not add value in the process experience of customer. If
customer not gets one glass water than he feel
unsatisfaction.
B.W.T.I.B.A 176
(3) service within room
After reception customer left the customer into the room.
Taj hotel Ginger hotel
Neelkanth hotel
Sarovar portico hotel
Host inn hotel
Television Smart sleep
Television Television Television
Wi-fi internet facility
Tea/coffee maker
Refrigerator in prime suite room
Wi-fi internet facility
Wi-fi internet facility
King or queen size beds
LCD T.V.
Running hot & cold water
River view 24 hours room facility
Study table Mini fringe
In house video mpves
Study desk Direct dialing facility
Safe deposit locker Bath kits in bathroom
Meeting room
Satellite programmes
Direct dialing facility
Safe deposit locker
Direct dialing facility
Wi-fi net zone
Safe deposit lockeron request
hot & cold waterfacility
A/C control to regulate room temperature
Laundry Wi-fi internet facility
Safe deposit locker
Voice mailElectronic safe
B.W.T.I.B.A 177
(4) service outside room
Taj hotel Neelkanth hotel
Sarovar portico hotel
Host inn
Swimming pool
Live guzzle during
Banquet hall facility
Banquet hall facility
Health club Outdoor catering
Live guzzle during
Out door catering
Live guzzle during dinner
Laundry Money exchange
Travel desk
Outdoor catering
Doctor on call
Outdoor catering at navaratri time in c.m. ground
All major credit card are accepted
Laundry Pick-up & draw facility in car
Dog show in June
Doctor on call
Doctor on call
Parking facility
Package during marriage season
Money exchange
Banquet facility
All major card acceptable
Laundry Laundry
Pick-up & draw facility
Banquet hall facility
Doctor on call
B.W.T.I.B.A 178
in carParking facility
All major card acceptable
(5) Exit:-
Hear customers are left the hotel. In all four hotels they left
the customer to airport & railway station by car.
(6) Customer relationship management after sales
service:-
In this all the four hotel note down the customers list that
who are regular customer & who are irregular customer and
note down the birthday date and marriage date of the
customer and they wish to the customer and they provide
discount offer to that customer.
Chapter 13.7:- Physical evidence
Introduction
Physical evidence plays an important role in the hotel industry
because customer enters into the service organization. What
surrounds the service often becomes the intervening variable
that mediates between what really the service is and what is
actually perceived by the customer. Evidence management is
another area of strategic importance to the service marketer.
B.W.T.I.B.A 179
It can both add and destroy value depending upon how it is
managed.
Importance of physical evidence
Goods marketer have discovered the potential of packaging
the fifth p’s of marketing if packaging is attractive than
customer are more attract to wards the product.
As packaging is important in product marketing. Physical
evidence is important in service marketing. In service product
itself being intangible,
Like in hotel service until you use you can not judge the
service how the service is. Therefore physical evidence is the
tangible part of the hotel industry like building of hotels’
lighting in the hotel, music system, receptionist area,
surrounding area of hotel buildings if these all things are
excellent than more customer are attract to wards this kinds
of hotels.
So physical evidence is very important part of entire
experience of customer in the hotel.
Types of physical evidence
There are two type of physical evidence
B.W.T.I.B.A 180
(1) dominant evidence
(2) peripheral evidence
(1) dominant evidence :-
Dominant evidence constitutes a dominant part of service
facility
For example:-
buildings of hotel
hotel room
receptionist area
parking area
furniture of hotel
(2) peripheral evidence :-
It is not very visible in relation to the dominant but no
matter hoe small and trivial, they do have an impact on
customer perception.
Peripheral evidence includes
Entry gate :-
In all four hotels the gate was open by the employee.
Water try
In all the hotel employee gave the water to any customer.
B.W.T.I.B.A 181
Telephone
In all hotel telephone is properly arranged.
Bath kits
In all four hotel they provides bath kits to the customer
Study table
In all four hotel there are study table.
Children & aldure people facility.
All hotels not charge the extra charge for the children
with out extra bed.
Dimension of service environment
It means what is the key evidence in service environment.
(1) Architectural style: -
It mean how the look of the hotel
Taj Mumbai: - heritage look
Taj Ahmedabad: - modern look
Ginger hotel:-modern look
Sarovar portico hotel: - modern look
Neelkanth hotel: - modern look
Host inn: - modern look
B.W.T.I.B.A 182
(2) Service layout: -
It is called as systematic arrangement of service
For example:-
First of gatekeeper
Than receptionist area
Table arrangement is proper or not
In taj, neelkanth, & sarovar portico the arrangement of
table service layout so beautiful but in host inn hotel the
place was very small & table arrangement is in very
haphazard manner.
(3) Lighting:-
It means lighting should be properly and in plant manner
In taj hotel, in sarovar portico hotel they arrange proper
lighting during festival like during Christmas they arrange
one Christmas trees. And at the time of diwali, navratri they
arrange beautiful light.
In neelkanth also they arrange light according to the festival
like diwali, navratri, Christmas etc. in host inn they only
arrange simple light during festival.
(4) Music: -
Music should be as per time & as per mood.
B.W.T.I.B.A 183
For example:-
Except host inn hotel all other three hotel provide music
facility during dinner time. The music is not fixed or as per
time.
(5) Fixture: -
The fixture it is fixed it is not movable like study table, wash
tub, etc.
The fixture should be properly installed. If the fixture is
installed in very haphazard manner than customer feel
uncomfortable. In ginger hotel the fixture is mostly red
colored so it looks very beautiful.
(6) wall decoration: -
For example:-
Wall color wall color is very important in hotel room hotel
room color should not be dark. We have observed in all
hotels that wall color is light. In ginger hotel in floor they
have patex & room colour is light .
In ginger hotels lobby
B.W.T.I.B.A 184
(7) scents:-
It means perfume for freshness of room. There are different
type of scent use by hotel & restaurant like
sandal
rose
lavender
These all hotel are using scent for the room freshness. They
are not using fixed perfume they are using different -
different type perfume.
(8) symbols: -
To informed the customer. In hotel there are symbol of male
& female in the bathroom.
To reflect the brand in the brand in the mind of customer.
B.W.T.I.B.A 185
Chapter -14- 5 Gaps model of service
quality
B.W.T.I.B.A 186
Gap-1: - Expected service & mgt. perception of
consumer Expectation.
B.W.T.I.B.A
Word of mouth communication
Personal need
ds
Past experience
Expected service
ds
Perceived service
ds
Service delivery
Transition of Perception intoService qualitySpecification
Mgt. perception of consumerExpectation
ExternalCommunication
To customer.
Gap- 4
Gap- 5
Gap- 3
Gap- 2
Gap- 1
Consumer part
Marketer part
187
The first gap shows that customer expectation is some
thing different & mgt perception to wards the consumer
expectation is different.
For example:-
In Taj hotel
Prompt pickup at the airport
by courteous person from the hotel. The car was clean,
and the driver was also very courteous. The persons
identified themselves, and told us about the services
expected in the hotel, and radioed .The lady at the check-
in was very courteous and helpful. Like any other 5 star
hotel, the person at the check in walked us up to our
room and explained us the services available. Luggage
was promptly delivered to the room. Room was very
neatly organized. Rooms seemed a bit old though,
probably can help with some renovating the interiors.
Breakfast was included in our package, and breakfast was
a lot of fun. There was a lot of different food available for
every taste. Kids just went nuts at all the choices they
had. Funnily though,
B.W.T.I.B.A
Detailed Rating
Location: 9/10
Rooms: 9/10
Food: 9/10Facilities: 8/10
Service: 9/10
Value: 7/10
188
Customer in taj hotel tells that every thing is good in the
taj hotel but they didn’t have orange juice or mango juice
or even coconut water. Food otherwise was excellent in
taste. So taj hotel perception is only is that customer
want only tasty food but they also want some juice so it is
the gap-1 in the hotel taj. And also customer tells that
they are not providing service according to the value of
money so they rated 7/10.
Facility also is not so much expected than customer so
customer rated facility as 8/10.
In hotel host inn: -
Review of customer
Hotel Good Very Home
Home feel stay
Value for money
Decent experience
Extremely disappointing
It is very disappointing to see that Yatra. Com.has
mention this kind of hotel in their list. It is just like a
lodge, and trust me, from no where does it look good
hotel.
Nice & cozy hotel
B.W.T.I.B.A 189
Nice hotel. Facility & customer service is very good.
Recommended for families. Hear in this hotel customer
like every room service, it gives the value for money but
some customer don’t like this hotel, hear customer want
the looking of hotel but they are only concentrate on the
room service.
In NeelKanth hotel
Neelkanth Inn
“Decent Hotel for the Price”
In neelkanth hotel people have expectation that customer
are just want to stay & rest in the hotel but customer
want something enjoyment over there like gymnasium
playing game etc. so it is the gap first in hotel neelkanth.
In Sarovar portico hotel: -
Customers review
Detailed Rating
Rank = 9/10
B.W.T.I.B.A 190
Close
Location: 6/10
Rooms: 10/10
Food: 10/10
Facilities: 10/10
Service: 10/10
Value: 10/10
It was a good hotel and had a nice comfortable stay.
Plus point is Warm cooperative staff.
Minus point is Location was a bit letdown but close
enough to all important destinations.
Plus point is Clean rooms, good food, and nice
professional and warm welcoming staff.
Minus point is the room smelled very odd.
As above mention customer told that the room is good,
warm welcome staffs are there but hotel people don’t know
that customer want good outlook of the hotel & not very
smelling odd so it is the gap 1 in the hotel.
Gap:-2:-Transition of perception into service
quality into service specification & mgt.
perception of consumers expectation.
It means that hotel knows every need of customers want but
they are not in position to translate or design that kind of
service to the customer.
For example:-
In Sarovar portico hotel
In Sarovar portico hotel they people know that customer
want the swimming pool over there but they are not in the
position to provide swimming pool in the hotel so it the gap
2 in the hotel of Sarovar.
In host inn hotel
B.W.T.I.B.A 191
They people know that customer want music over there
during the dinner time but they are not in position to
provide music over there.
In ginger hotel
Ginger people know that there are except business people
will also come but they are not in position to serve the
normal customer because they only provide the service of
business client.
Gap-3- service delivery & transition of perception
into service quality specification.
In this gap hotel have already design the service according
to the need of customer but there is a problem in providing
service delivery.
For example:-
In neelkanth hotel
In neelkanth hotel & in host inn hotel problem is that the
table is so beautifully designed but space is so small then
entire family member can not adjust.
B.W.T.I.B.A 192
In ginger hotel
There are good communicated employee, lighting is so
good, service are so good but they are not providing one
glass water to the customer when customer come to the
hotel so in entire experience of the customer this is only
lacking.
In taj hotel
In taj hotel also they are not providing service according to
the money pay by the customer so it is again a problem of
service providing. So in this customer only rate value for
money is 7/10.
Gap-4-service delivery & external communication
to customer
Hear hotel is advertising so beautifully in the internet by
providing virtual tour, good accommodation & good service
in the advertising but when employee actually goes there
than they not find any thing which is mention in the
advertising.
B.W.T.I.B.A 193
For example:-
In taj hotel also from customer review they find less
service than the whatever service shown in the internet so
hear customer only give 8 rank out of 10 in facility.
In ginger hotel also they are showing good virtual tour in
the internet but when customer actually goes there than
they find less service.
In Sarovar portico hotel also they shown good room in the
internet but when actually customer go there than they find
very odd smelling room, and also they shown building in
beautiful manner but looking of building actually it is not
good because in some part of the hotel there are no
painting.
Gap-5-Perceived service & expected service
B.W.T.I.B.A 194
In this gap is related with the psychological because
marketer can not do any thing in this gap because it is
comes from the mind of the customer.
For example:-
Customer expecting past good service at the second time. It
means that customer have already visit first time any hotel
at that time he got the satisfactory & excellent service from
that hotel but when customer second time go to that hotel &
he get a good service from that hotel but there is a tendency
of customer to tell that service is not good as he get earlier.
Every hotel faces this problem because hotel can’t change
the mind of customer.
B.W.T.I.B.A 195
Chapter-15-Questionnaire
Q:- Name of hotel.
A-
Name of hotel Date of visit Star category
Taj hotel 3rd oct., 2008 5 star
Sarovar portico
hotel
18th dec., 2008 4 star
Hotel neelkanth
sahara
23rd sep., 2008 3 star
Hotelneelkanth
paradise
7th Jan., 2009 3 star
Hotel ginger 24th Jan., 2009 3 star
Hotel host inn 7th Jan., 2009 2 star
Q:-Name of person & designation.
A-
Name of hotel
Name of person
Designations
Hotel taj Mr. vergies curien
H.R. Manager
Neelkanth sahara
Miss. Tulsi mam
Assintant general manager
Neelkanth paradise
Mr. Harsant shah
Front office manager
Hotel host inn
Mr. parikshit Side partner
Sarovar portico
Mr. rishove halder
Training manager
B.W.T.I.B.A 196
Ginger hotel Mr. kaushal G.A.M.
Q-How many rooms are there in the hotel?A- Hotel Taj
Hotel Ginger
Neelkanth Sahara
Neelkanth Paradise
Hotel Host Inn
Sarovar Portico
91 93 250 78 38 69
Q- How many banquet hall the hotels have?A-Hotel Taj
Hotel Ginger
Neelkanth Sahara
Neelkanth Palace
Hotel Host Inn
Sarovar Portico
2 1 2 3 1 4
Q- How many categories of rooms in the hotels?A-Hotel Taj
Hotel Ginger
Neelkanth Sahara
Neelkanth Paradise
Hotel Host Inn
Sarovar Portico
Deluxe room
Standard room
Non A/C room
Non A/C room
Deluxe room
Standard room
Executive room
Deluxe A/C room
A/C Deluxe room
Executive room
Superior room
Pool view room
Sahara Deluxe room
A/C prime suit room
Non A/C room
Deluxe room
Garden room
Honey moon suite room
Standard room
Studio suite
Maharaja suite room
Executive suite
Extra bad /Person
Grand suite
B.W.T.I.B.A 197
Q - Facilities provided by the hotels.A- Hotel Taj
Hotel Ginger
Neelkanth Sahara
Neelkanth paradise
Hotel host Inn
Sarover portico
Banquet facility
Tea / Coffee maker
Banquet facility
Banquet facility
Travel desk
Restaurant facility
Car parking
LCD TV 24 hour coffee shop
Car parking
Money exchange
Banquet facility
Airport pickup
Gym Car parking
Car facility
Wi-Fi service
Fitness center
Restaurant facility
Airport pickup
Computer facility
Doctor on call
Safe deposit lockers
Wi-Fi service
B.W.T.I.B.A 198
Swimming pool
Car facility
Car facility
Airport pickup
Laundry facility
Travel Desk
Safe deposit lockers
Restaurant facility
Airport pickup
Fax & Internet facility
Airport pickup
Doctor on call
Computer facility
Safe deposit lockers
Safe deposit lockers
Computer facility
Restaurant facility
Permit shop
Gym Mini fridge
Doctor on call
Safe deposit lockers
Car facility
Airport pickup
Car facility
Sky way facility
Postal & courier service
Postal & courier service
Banquet facility
Car facility
Q-location of hotelsA-Hotel Taj
Ginger hotel
Neelkanth Sahara
Neelkanth Paradise
Hotel Host inn
Sarovar portico
International airportcircle, Hansol, Ahmadabad.
Behind Himalaya mall, Drive in road, Ahmadabad 380015.
2nd floor icon square, Opp, kothawala flat, paldi, Ahmadabad.
Ellis bridge cross road, Opp,town hall,Ellisbridge, Ahmadabad.
Opp,Le -Meridian,khanpur,Ahemedabad-380001.India
Bhawn’’s college road, Ahmadabad
Chapter-16-conclusion
After preparing report on hotel industry, our group have
conclude that the current situation of the hotel industry is
B.W.T.I.B.A 199
very tough because of the Mumbai terror attack in the taj hotel
so foreign customers arenot coming in India so there are need
to improve the very tiet security.
And our overall experience after preparing this report is very
good but in some hotel we did not get good response from the
H.R. Manager of the hotel like in le-meredien hotel we did not
get good response so did not include that hotel in our report.
But in other hotel like taj hotel, neelkanth sahara hotel,
neelkanth paradise hotel, hoet inn hotel, saravar portico,
ginger hotel hotel our experience was good & very fantastic as
specially to ginger hotel & taj hotel & Sarovar portico hotel.
From the customers point of view & review of the customer all
these hotel have to improve a lot like in taj hotel customer are
not getting value for money, in neelkanth group of hotel, &
Sarovar portico hotel look of building is not good, In host inn
hotel customer view is it look like lodge & from no where it
looks like hotel so they have to improve the look of hotel.
After preparing report & visiting to the hotel our suggestion to
taj hotel is they have to improve there the hospitality service to
the customer, In neelkanth hotel they need to improve their
employee skill in speak in English, in host inn hotel they need
to improve their restaurant & employee skill in speak in
English, in ginger hotel they have to improve the security
because when we were go at there at that time there are no
any checking process of visitors, in Sarovar portico hotel they
need to improve the look of the hotel. So finally our over all
experience was fantastic.
B.W.T.I.B.A 200
Chapter-17-Bibliography
News paper
The Times of India
Business Standard
Websites
WWW. Hotel Industry. Com
WWW. Equity master. Com
WWW. Indian equity fund. Com
WWW. Neelkanth group of hotel. Com
WWW. Taj hotel. Com.
WWW. Ginger hotel. Com
WWW. Sarovar portico hotel. Com
WWW. Host inn hotel. Com
B.W.T.I.B.A 201
