SERVICE SECTOR MANAGEMENT

HOTEL INDUSTRY

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Webster defines a hotel as, “A building of institution providing lodging, meals and

service for the people.”

DEFINITION

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Oxford defines a hotel as, “An establishment providing rooms & meals

for the travellers & tourist.”

HISTORY OF HOTEL INDUSTRY

Concept of hotel originated in the 6th century B.C in the form of inns

Development of hotel & motel on an organized basis

Significance of management practices in hotel industry

Change in traditional concept3

CHARACTERISTICSHigh initial investment

Immovability

Competition

Supporting services

Perishability4

Customers as guest Intangibility Inseparability

Variability

SWOT ANALYSIS

STRENGTHS WEAKNESS

OPPORTUNITIES THREATS

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Types of Hotels

Budget Hotel

Business Hotel

Luxury Hotel6

CLASSIFICATION OF HOTELS

On the basis of standard

s and control

On the basis of nature

On the basis of

star

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ON THE BASIS OF NATURE

Residential

Commercial

ResortInternatio

nal

Floating

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ON THE BASIS OF STANDARDS & CONTROL

Approved Unapproved

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ON THE BASIS OF STAR RATING

7 STARS6 STARS

5 STAR DELUX5 STAR4 STAR3 STAR2 STAR

HERITAGE HOTELS

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USERS OF HOTEL SERVICESDomestic

Educationists

Sportsmen

Medical representatives

Trade representatives

Officials

Pilgrims

Students

ForeignFilm stars

Cultural representatives

Sportsmen

Educationists

Political representatives

Trade representatives

Pilgrims11

HOTEL MARKETING IN INDIAN ENVIRONMENT

Hotel business is at an infant stage The hotel industry needs to revamp the product

mix Users of the services expect economy and sellers

look to cost + profit The promotional strategies are also required to be

restructured Requires increased governmental support

The main way for the development of this industry is to encourage tourism 12

BENEFITS OF HOTEL INDUSTRY TO OTHER INDUSTRIES

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Tourism IndustryBanking Industry

Food Industry

Transport industry

CHAINS OF INDIAN HOTELS The Oberoi chain (Now

Hilton Hotels)

The Ashoka chain of hotels

The Taj group

The Kamath hotel

The Tunga Hotels

The Ritz chain14

MARKETING MIX

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PHYSICAL EVIDENCE

PROMOTION

PRODUCT

PEOPLE

PROCESS

PLACE

PRICE

ProductCOREBASIC

EXPECTEDAUGMENTEDPOTENTIAL

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Price

PRICING STRATEGIES

Differential pricing

Demand based

Competition based

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Tactical pricing

SEASONAL DISCOUNTS

TRADE DISCOUNTS

SPECIAL DISCOUNTS

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Place

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Distribution Chain

0 level 1 level 2 level 3 level 4 level

People“First impression is the last

impression”

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Physical Evidence• It addresses the ‘tangible’ components of the

service experience

• The “services cape” includes the ambience, the background music, the comfort of seating and the physical layout of a service facility

• The appearance of the staff, including clothes and grooming, may be used as important clues

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PromotionADVERTISING

SALES PROMOTION

WORD OF MOUTH PROMOTION

PUBLICITY AND PUBLIC RELATIONS

PERSONAL SELLING22

ProcessIt includes the flow and progress of

the production process

E.g. the service of providing a meal at the fine dining restaurant of the hotel

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Case study

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Comparison of HotelsTaj Orchid Regale

ProductDeluxe rooms, luxury suite, Taj club rooms, Palace wing rooms

Deluxe, executive, club prive, orchid suite, presidential suite

Star, icon, legend

Price ` 11,000 – 95,000 ` 5000 -27000 ` 6,500 –

18000

Place High Society or sea side. Near airports.

Near to Tourist sites as well as airports

Promotion

Calendars, print, exhibitions, TV.

Ads, cinema, TV, print media.

Brochures, exhibitions, media

Process Online or on the desk

Online or on the desk

Online or on the desk

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Taj Orchid RegalePerformance 6 stars 5 star eco

friendly 4.5 stars

Packages Yatch services

Business, spa

Nila blue waters. Sparta fitness

PeoplePorters, chef, manger receptionist,

Porters, chef, manger receptionist

Receptionist manager,

Physical Evidence

Built in in 1903

It was built in 1997

It opened up in 2008

Positioning High class Corporate

travelersTourists & normal public

Purpose High class enjoyment Eco friendly Encourage

tourism

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Ateeb Ansari – 01Steffi Biswas – 03Thomas J.K. – 15Ali Rizvi – 34

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Presented by

Junaid Gandhi – 10Shahil Mithani – 26Shoeb Syed – 41

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