Hotel Industry Overview

Service sector management: Hotel industry by Riddhimaan Nandgaonkar 07B431 Shivam Trivedi 07B456 Sneha Meshram 07B465 Naresh Gedala

INTRODUCTION TO HOTEL INDUSTRY

Introduction • Linked to the tourism industry • Helps to boost travel & tourism • Business Travel is included • Demand –supply gap in star category hotels • Opportunity for investment for Indian and over seas players

Introduction

Introduction

Future Potential & Growth • World Tourism Organisation (WTO) - International tourist inflow in India by 2020 would be 10 m • Tourist influx to grow at a CAGR of 6.5% for the next 14 yrs • Expected share of world tourism: 1.5% by 2010 • Untapped domestic tourist potential • Commonwealth Games in New Delhi in 2010 • Medical Tourism • Rural Tourism • Wildlife Tourism

Demand Supply Gap • Demand Supply Gap for 2012– 1,50,000 rooms  Supply – 1,10,000 rooms  Demand – 2,60,000 rooms

• Demand Supply Gap – 60,000  Supply - 90,000 rooms  Demand – 1,50,ooo rooms

Ample scope for Indian and global players to set up new projects

Perceptual brand mapping of Indian hotels

SWOT • Strengths – – – –

Diversity Demand-Supply gap Government Support Market Share

• Weakness – Poor Infrastructure – Slow Implementation – Susceptible to political Events

SWOT • Opportunities – Open Sky – Rising Income

• Threats – Fluctuation – Increasing Competition

INTRODUCTION TO ITC HOTELS

Introduction to ITC hotels • ITC Limited entered the hotels business in 1975 • ITC hotels currently owns and operates 100 hotels in 75 destinations • India's second largest hotel chain • They show our heritage • The group today operates under different brands: – – – – –

ITC Luxury Collection Hotels WelcomHotel Sheraton Hotels Fortune Hotels WelcomHeritage Hotels WelcomeEnviron

ITC Hotel Properties • • • • • • • • • • • • • • •

ITC Hotel Maurya Sheraton & Towers, New Delhi ITC Hotel Grand Maratha Sheraton & Towers, Mumbai ITC Hotel Sonar Bangla Sheraton, Kolkata ITC Hotel Grand Central, Mumbai ITC Hotel Windsor Sheraton & Towers, Bangalore ITC Hotel Kakatiya Sheraton & Towers, Hyderabad ITC Hotel Park Sheraton & Towers , Chennai WelcomHotel Rajputana Palace Sheraton, Jaipur WelcomHotel Chola Sheraton, Chennai WelcomHotel Mughal Sheraton, Agra WelcomHotel, New Delhi WelcomHotel Rama International , Aurangabad WelcomHotel , Vadodara (through associate company) WelcomHotel , New Delhi WelcomHotel Grand Bay, Visakhapatnam

MARKETING MIX

Marketing mix – Product(services offered) • Room bookings – Eva, business, executives, disabled • Butler service • Wi-Fi internet • SPA & Swimming pool • Meeting rooms/ Conference rooms/ Board rooms • Restaurants & Bars • Meetings and Events/ Luxury events

Marketing mix - Pricing • The hotels are classified under four different categories for pricing:- (Grand Central, Parel, Mumbai) – – – –

Luxury - Rs.31500 Upscale – Rs. 27500 Mid-market – Rs. 23500 Budget - Rs.12500

• The restaurants are also divided into such categories

Marketing mix - Promotion • • • • • • • •

Promotion through FMCG goods Internet Media reports and media releases Concept promotion Customers Social service projects Travel assistants Hotel directories

Marketing mix - People • • • • • • • • • • •

Receptionists Bell boys Laundry servicemen Butlers Room service Chauffers Managers Cleaners Assistants for guests Chefs Waiters etc

Marketing mix - Place • • • • • •

Strategic Locations Metropolitan cities Business hubs Tourist places Heritage areas Upcoming areas

CAPACITY AND DEMAND

Capacity and demand Capacity(ITC Grand central, Parel, Mumbai) • 242 guest rooms and suites • Arranging tours for guests(Around 400 people in a day) • 24-hour Butler service for all 242 rooms(optimum capacity – 30 rooms at a time) • Grand ballroom – 400 to 750 guests at a time • 5 conference halls • 6 restaurants which can cater roughly 430-500 people at a time viz Kebabs and Kurries, Hornby’s Pavilion, Shanghai Club, Dublin, Frederick’s Lounge and The Point of View.

Capacity and demand • The flow of customers is stable but it dips a bit in the rainy season • Generally if the customers exceed the capacity then they are given suggestions to go to other ITC properties • If the customers want the same area then other hotels nearby are indirectly suggested(eg. Oberoi trident, Taj, Grand hyatt eyc)

SERVICE QUALITY

Service quality • Hospitality – treatment of guests • Material attributes – food, toiletries, complimentary goods etc • Time management – efficiency in service • Communication • Presentation

CONSUMER PERCEPTION AND BEHAVIOUR

Consumer behaviour and perception Behaviour(Why customers go?) • Disposable money • Class/ Status • Image of ITC as an excellent brand • Luxury expectations • References received • Personal liking • Feel good factor

Consumer behaviour and perception Types(Who goes?) • Business class • Executives • Tourists • Local people using hotels for pleasure • Party goers • Study groups • Work groups

Consumer behaviour and perception Perception(What do consumers expect/feel?) • Excellent conditions • High class treatment • Effective time management • Value for money • Rise in social status • Safety & Security • Hygiene

Thank You