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S E R V I C E M A R K E T I N G
INDIAS HOTEL INDUSTRY
By-
Abishek Chavan 09
Vihang Paranjape 39
Bhavesh Patel 42
Monish Belel 45
Sandip Salaskar 46
Sachin Singh 53
Jayesh Nimse 37
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Agenda
About Hotel Industry in India.
Trends in Indian Hotel Industry
Challenges that Indian hotel Industry needs to address.
Market segmentation
Marketing Strategy Based on challenges.
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Effects of Liberalisation
About Service Industry
Contribution of Tourism
About Hospitality Industry
Hotel Industry in India
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Consumers
Strong Brand Recognition
Demand Vs Supply
Technology
HR related Aspects
Trends in Hotel Industry
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Infrastructure Related Aspects Cost of Finance and Land The lack of adequate infrastructure
development.
Taxation
Comparative Cost structure
There is still need to improveair connectivity
42-3527-13Balance
11-2Telephone
15-1720-25Fuel/Energy
12.1515-18Manpower
28-3035-40Food costs
(% sales)(% sales)
IdealAverage in IndiaArea
The challenges to face
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The country has been flooded by some of the
world's leading hotel brands.New brandssuch as Amanda, Satinwoods, Banana Tree,Hampton Inns, Scandium By Hilt andMandarin Oriental are planning to enter the
Indian hospitality industry in joint ventureswith domestic hotel majors.
Unitech, which is setting up two hotels inDelhi,has already formed a joint venture withMarriott International to run its three new
The Competition
The world's leading hotel brands - joining the battle
hotels in India, which are expected to start operations by 2008. The three new hotelswill be located in Kolkata, Gurgaon and Noida. We are investing around 700 crorerupees to set up these hotels, says Unitech managing director Sanjay Chandra.
All other majors including Marriott, Hyatt, Hilton, Accor, Four Seasons etc arebriskly reinforcing their presence in India.
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Market segmentation in Indianhotel Industry
Guest profile in india
Market Segmentation
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Market segmentation in Indianhotel Industry
Guest profile in india
Market Segmentation
Area %
3.0Others
6.3Tour Groups-Foreign
5.8Tour Groups-Domestic
1.6Meeting Participants (>100)
4.8Meeting Participants (
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Market segmentation in Indianhotel Industry
Guest profile in india
Market Segmentation
Country %
3.0Others7.2France
9.1Germany
10.5Others European Countries
15US
15UK
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Sales Turnover
Finantial Parameters
Size of Hotels in India
Marketing Media used in
Indian Hotels (Table 13)
Strategic Analysis
59.58Mahindra Holiday & resort India Ltd.
96.58Jaypee Hotels Ltd.
106.66Asian Hotels Ltd.
134.42Hotel Leela Venture Ltd.
177.49ITC hotels Ltd.
227.8.India tourism Devp, Corpn. Ltd.
384.09E I H ltd
590.19Indian Hotels Co.Ltd.
SalesCompany Name
Sales turnover of some Indian Hotels / Rs(10Million)
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Sales Turnover
Finantial Parameters
Size of Hotels in India
Marketing Media used in
Indian Hotels
Strategic Analysis
Variables
Hotels minus
Indian hotels
Indian HotelsRs(10 Million)
Sales 2337.94 590.19
Advertising 49.48 25.97
Marketing 52.29 0
Distribution 0.07 0
Operating Income 1679.46 400.43
Cost-of-Sales 1800.75 429.94
Selling cost 121.16 29.51
Total Cost 2146.63 528.42
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Sales Turnover
Financial Parameters
Size of Hotels in India
Marketing Media used in
Indian Hotels
Strategic Analysis
32591742939Avg rate per hotel
(In Rs.)
61.7%56%52.9%Averageoccupancy perhotel
2348231Average total
rooms per hotels
32162223Total responses
>150rooms
50-150rooms
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Sales Turnover
Financial Parameters
Size of Hotels in India
Marketing Media used in
Indian Hotels
Strategic Analysis
35.130.123.5TV Marketing
59.549.235.7Telemarketing
24.39.35.2Radio Advertising
94.673.954.5Promotions
10091.588.7Print Advertising
54.166.560.3Outdoor Advertising
70.348.344.1Other internet site
29.719.915.3Merchandising
75.737.318.5Loyalty card program
91.975.958.9Hotel web sites
91.9%84.3%74.7%Direct mails
37236426Total responses
>150rooms
50-150rooms
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Tourist boom :The tourism traffic has been growing
between 20-28 % every year for the last four years and
this rate of growth is expected to continue for the next
few years.
The constant boom and the resultant demand-supply
mismatch has led to sharp increases in the average roomrates and thus pushing up revenues of industry players
(hotels, tour operators, airlines, shipping lines, etc)
The tourism sector is expected to perform very well in
futureand the industry offers an interesting investment
opportunity for long-term investors.
Most of the five-star hotels are seeing more than 80 %
occupancy and some of the lesser-known five-star hotels
are overbooked.
The Engine of Growth
Hotel Trident Hilton, Agra
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Hospitality experts believe that the Indian hotel industry will witness higher than usualgrowth in the coming peak season. The good times for the Indian hospitality industry arehere to stay, with top-end hotels experiencing high room occupancy rates even in the leanseason.
The lean season has been exceptionally good for us. Our room occupancy rate has beenaround 89 per cent and we are looking at over 95 per cent occupancy for the period
September to December,says Kapil Chopra, general manager, Trident Hilton, Gurgaon.
There was an increase of 15 % in the number of international tourist arrivals in India and14 % in the foreign exchange earnings in the first quarter of 2006 as compared to the sameperiod last year.
The non-luxury segment in particular has been perking up with more and more investorsspotting the demand supply imbalance, surge in domestic travel and growth in spendingamong middle-class Indians.
The Future Growth
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