marketing strategies of hotel
TRANSCRIPT
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MENTORING REPORT ON
MARKETING STRATEGIES
OF HOTEL INDUSTRY
Submitted in the Partial Fulfillment for the
Requirement of
Post Graduate Diploma in Management
JAGANNATH INTERNATIONAL MANAGEMENT SCHOOL
Kalkaji, New Delhi
Submitted to: Submitted by:
Dr. Neelam Tandon Neha Jaiswal
Associate Professor Roll No: 47
JIMS, Kalkaji Batch: 2012-14
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DECLARATION
We, here by, declare that this mentorship project report on
Marketing Strategies Of Hotel Industry has been written and prepared by meduring the academic year 2012-14. This project was done under the external
mentor Mr.Surinder Sharma (Training Manager) in Centaur Hotel Group and
internal mentorProf. Rakesh Panday In partial fulfillment of the requirement for
the MBA course of Sriram Institute of Management & Technology, knowledge
park 3, Greater Noida.
Rishi Kumar
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S.
No
TOPIC PAGENO.
1. Introduction of the project
What is Hotel? Hotel Industry Objective of the Project Limitation of the study
8
2. Industry Profile
Indian Tourism Industry Domestic & International Tourism Classification of Hotels Competition in hotel industry
11
3. Company Profile
Profile of Carlson Rezidor Ambition, Credo, Facts & Figures, Brands,
Careers, Benefits
Marketing practices & strategies
22
4. Research Methodology
Research Techniques Data collection instruments & techniques
42
5. Data Analysis, Interpretation & Results 45
6. Conclusion & Suggestions 55
7. Appendices
Bibliography Questionnaire
57
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ACKNOWLEDGEMENT
Gratitude is a way of acknowledging all the great and little efforts that people around us
have put into this project. It is also a way of ensuring that even the smallest contribution
does not go unnoticed. Therefore, we would like to express my heartfelt gratitude to
everyone being involved in this project one way or the other.
We express our thanks to Mr. Amit Gupta, Chairman, JIMS Kalkaji and Dr.(Cdr.) Satish
Seth, Director, JIMS Kalkaji for providing us the infrastructure to carry out the project.
We are extremely grateful to our faculty Dr.Neelam Tandon & external mentor
Mr. Tarun Bhaskar, for extending his whole hearted cooperation, support, valuable time
and information throughout our project development with attention and care.
Above all I sincerely thank the God almighty and my affectionate parents without whose
blessings I could not have completed this work.
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EXECUTIVE SUMMARY
The main object of this project is to show the marketing strategies and quality
management of hotels in order to improve its revenue and the research problem is, how
can Marketing Strategies and Quality Management improve future revenue with the
special reference to selected five star hotels in India? The methodology includes
primary data and obtaining access to secondary data like historical sales and revenue
data. The study is based on selected five star hotels in Delhi and I take Centaur Hotel
which belongs to HCI to explain my project. Objectives talks of types of data the
research project will generate and how these data is relevant.
Research approach gives a non technical description of the data collection method,
measurement instrument, sample and analytical techniques. I use experimental and
questionnaire methods for research methodology. Hotel industry which has been
underperforming on revenue targets in todays competitive market. Marketing strategies
is a key to improving hotels revenue. As advertising and promotional strategies affects
revenue faster and in a sustain manner compared to one time hotels promotions
depends on external factors besides advertising and promotional strategies can be
controlled by the hotel management to help retained loyal customers. It is thus an
important element of the marketing strategy to generate growth in sales revenue.
The stylishly designed hotel that made its way to the list of best hotels in the world,
promises a rich experience to any visitor and patron. Realizing the huge potential for
hospitality industry have to look back to their marketing strategies. The positive
response of the customers towards the hotel led to the new marketing strategies.
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Chapter- 1
INTRODUCTION
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What is a Hotel?
Hotel is an establishment that provides lodging and usually meals and other services for
travellers and other paying guests. The provision of basic accommodation, in times
past, consisting only of a room with a bed, a cupboard, a small table and a washstand
has largely been replaced by rooms with modern facilities, including en-suite bathrooms
and air conditioning or climate control. These days some more additional common
features are also found in hotel rooms like telephone, an alarm clock, a television, a
safe, a mini-bar with snack foods and drinks, ironing facilities and facilities for making
tea and coffee. Luxury features include bathrobes and slippers, a pillow menu, and
jacuzzi bathtubs. Larger hotels may provide additional guest facilities such as a
restaurant, swimming pool, fitness centre, business centre, childcare, conference
facilities and social function services.
Hotel rooms are usually numbered (or named in some smaller hotels) to allow guests to
identify their room. Some hotels offer meals as part of a room and board arrangement.
In the United Kingdom, a hotel is required by law to serve food and drinks to all guests
within certain stated hours. In Japan, capsule hotels provide a minimized amount of
room space and shared facilities. A capsule hotel is a type of hotel with a large number
of extremely small "rooms" (capsules) intended to provide cheap and basic overnight
accommodation for guests not requiring the services offered by more conventional
hotels.
HOTEL INDUSTRY
Hotel industry in India has witnessed tremendous boom in recent year.
Hotel industry is inextricably linked to the tourism industry and the growth in the Indian
tourism industry has fuelled the growth for Indian hotel industry. The thriving economy
and increased opportunities in India has 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 Indiadestination campaign and the recently launched
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Atith i Devo Bhavah campaign has also helped in the growth of domestic and
international tourism and consequently the hotel industry. The Indian hospitality industry
has emerged as one of the key industries driving growth of the services sector in India.
It has evolved into an industry that is sensitive to the needs and desires of people. The
fortunes of the hospitality industry have always been linked to the prospects of the
tourism industry and tourism is the foremost demand driver of the industry. The Indian
hospitality industry has recorded healthy growth fuelled by robust inflow of foreign
tourists as well as increased tourist movement within the country and it has become one
of the leading players in the global industry.
OBJECTIVES OF THE PROJECT
To study the various trends in Hotel Industry.
To find the future market potential of Hotels.
To find out the strategies of Hotel Industry.
To know the marketing practices of Hotels.
To know about loyalty programmes.
LIMITATIONS OF THE STUDY
No study is complete in itself, however good it may be and every study has some
limitations:
Time is the main constraint of my study.
Sample size availability was not large enough.
The views of the people are biased therefore it doesnt reflect true picture.
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Chapter-2
INDUSTRY PROFILE
INDIAN TOURISM INDUSTRY
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Tourism is the basic and the most desirable human activity
describing the praise and encouragement of all people and government. Hotel industry
is an essential part of tourism. The expansion of tourism is well inevitable bringing
out development of the hotel industry. Hotel industry is so closely linked with the
tourism industry that it is responsible for about 50% of the foreign exchange earningform tourism trade and enterprises. The rising volume of tourism influx brought into
light, the shortage of hotels in important tourists centers. Keeping in view the
changing standards in the international hotel keeping. The Indian industry to make a
number of improvements. Its not enough to have adequate hotel accommodations,
it is equally necessary to have at various levels, low priced, moderately priced, high
priced, and a few luxury hotels.
Hotels may be categorized depending upon factors such as
Locations
Categorization according to plan
Categorization according to number of rooms.
Categorization by type of clientele.
Categorization by the length of stay of guests.
Categorization by the facilities that the hotel offers
The devaluation of the Asian currencies, the Kargil issue and the parliamentary
elections had affected growth in the tourism industry. The situation is gradually moving
back to normal with the tourist arrival figure marginally increasing from 2.3mn to 2.5mn.
The industry is growing at a rate of 9%. With the political and economic stability being
more clearly visible, both tourists as well as business arrivals are likely to gather
momentum in the remaining part of the year.
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The Indian hotel business focuses largely on foreign tourists with only 30% of the
business coming from the domestic business and the leisure travels. The tourist arrivals
in India are seasonal in nature, with the best season being from September to
December followed by a steep fall till May. The period June to September gains
momentum once the monsoons are over. The slack season is generally used for
renovation work and the period is characterized by discounts to attract clients.
The studies says, "tourism is a traditional instrument, which enables culture to the
rehabilitated and made know to the rest of the world". It is said it's a smokeless industry
and has become second to the petroleum industry in world trade.
This great importance was formally acknowledged when the XXI U.N. General
assembly designated 1967 as international tourist year with a unanimous resolution
recognizing that "tourism is a basic and most desirable activity deserving the praise andencouragement of all peoples of government".
When traveling away from home, tourist comes in contact with the places they visit with
their inhabitants and social exchange takes place. Their presence and social
background affect the social structure and mode of life at the destination. Tourists are in
turn affected by the experience and often carry back home with them, new habits and
new outlook on life.
Tourist has great educational significance. Contact between people of different races
and nationalities widen ones outlook. Tourism, whether domestic or international has
common economies significance in the sense that money earned in places visited large
sums of transferred to the host economies where this money provided a source of
income, a means of livelihood and amenities for the resident population. Purchasing
power is generated in the receiving areas through the expenditure of visitors. Money
received is spent and resent and this multiplier process the host country is a beneficiary.
International tourism is of great importance in international trade in the sense that it
enters into the balance of payments of accounts of individual countries generating
tourist traffic and export for countries receiving tourist traffic. For many countries is a
major item in world trade. These countries exhibit faster growth in tourism than in trade
of goods.
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Domestic and International Tourism
Usually, a distention is drawn between domestic or internal and foreign of
international tourism. In domestic tourism people travel outside their normal domicile to
other areas within the country. Barriers like language, currency and documentation are
not in the domestic tourism. But in India, since difference estates have different
languages, ones own language may not serve a medium of communication. Domestic
tourism has no balance of payment implications.
When people travel to a country other than which they normally live in is known as
international tourism, the distinction between domestic and international tourism is now
diminishing. The reasons being:
Language barriers are reduced by improving language skills
Currency and customs unions are developing in many European countries.
With globalization the free movement of people is growing.
Considering the greater multiplier effect in domestic tourism, domestic tourism would
have received greater emphasis in India. Reliable data on the growth of domestic
tourists traffic are not available as not extensive survey has been conducted on a
national level by any agency, government or otherwise not given the numerous festivals
celebrated throughout out the year, the innumerable tourist's centers in the country, the
geographical expands and the resource constraints, estimates of documents tourists'
traffic through an executive survey is considered impossible.
Domestic tourism if considered separate from the travel for religious and commercial
purpose. It is a post-independence phenomenon. Industrial growth, improvement in the
standard of living, rise in disposable income and most importantly the improvement oftourist infrastructure search as hotels, air, train and road transport has contributed to the
impressive growth in tourist traffic.
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The definition of a domestic tourist is a person who travels within the country to a place
of residence and stays at hotels or other accommodations establishments run on
commercial basis or in dharmashalas, sarais, chaultries etc. for duration of not less than
24 hours.
The factors that govern the magnitude of domestic tourist traffic are the religious and
cultural importance of a place. The extent of manufacturing, business and trading
activity, the climatic conditions, the infrastructure facilities available and the
geographical location etc. the current rough estimate of domestic tourism in India is ten
million a year.
HOTEL INDUSTRY
According to the British laws a hotel is a place where a bonafied traveler can receive
food and shelter provided he is in a position to for it and is in a fit condition to receive.
Hotels have a very long history, but not as we know today, way back in the 6th century
BC when the first inn in and around the city of London began to develop. The first
catered to travelers and provided them with a mere roof to stay under. This condition of
the inns prevailed for a long time, until the industrial revolution in England, which
brought about new ideas and progress in the business at inn keeping.
The invention of the steam engine made traveling even more prominent. Which had to
more and more people traveling not only for business but also for leisure reasons. This
lead to the actual development of the hotel industry as we know it today.
Hotel today not only cater to the basic needs of the guest like food and shelter provide
much more than that, like personalized services etc.
Hotels today are a Home away from home.
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CLASSIFICATION OF HOTEL
Hotel can be classified into different categories or classes, based on their operational
criteria. For example the type of accommodation they provide, location of the property,
type of services provided, facilities given and the clientele they cater to can help
categories hotels today. Hotels today are basically classified into the following
categories:
MARKET SEGMENT
Economy hotel:
It provides efficient sanity private rooms with bath. The furnishing and decor areacceptable to majority of travelers. Food and beverage service may or may not be
available.
Mid market hotels:
They offer comfortable accommodation with private on premises bath. Food
and beverage services and uniformed bell staff. They offer above average luxury.
All Suite hotels:
It offers separate sleeping and living areas along with a kitchenette and a stocked bar,
and offer class service.
First class hotels:
They are luxury hotels with exceptional decor better than average food and
beverage service, uniformed bell services. They often have 2 or 3 dining rooms,
swimming pool, spas etc.
Deluxe hotels:
They are better and offer more specialized services than first class hotels. They also
provide limousine services.
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PROPERTY TYPE
Traditional hotels:
They have the basic concept of rooms with break fast, bell desk services and
the other usual services.
Motels:
They are located on highways. Guest is given parking right outside their
rooms. The usually have a gas station / workshop attached to them.
Resorts:
They are usually situated in tourist locations like on rivers, mountains, jungles, or thesea. They give more privilege to sports activities leisure and re-creation activities like
manages, sightseeing, adventure sports, etc.
Resident hotels:
Where guest stay for longer duration, stay like weeks, months even years.
Casino hotels:
They are hotels usually in tourist spots and mainly cater to people who are on holidays.
Casino hotels like the name suggest offer gambling facilities along with
accommodations.
ACCORDING TO SIZE
Small hotel up to 150 rooms
Medium hotels150 to 299 rooms
Large hotels 299 to 600 rooms
Extra large hotels above 600 rooms
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OWNERSHIP AND AFFILIATION:
Independent hotels:
They have no application with other properties. They have their own management and
are single properties with one owner.
Chain hotels:
They impose certain minimum standards, levels of service, policies and procedures to
be followed by their entire establishment. Chain hotels usually have corporate offices
that monitor all their properties and one management runs these properties. That is all
the hotels under the chain are completely owned and run by the chain itself.
Franchisee hotels:
The franchisee grants the entities, the right to conduct business provided they follow the
established pattern of the franchisee, maintains their standards, levels of service,
practice their policies and procedures.
STAR CATEGORY OF HOTEL [INDIA]
One star [*]
Two star [**]
Three star [***]
Four star [****]
Five star [*****]
Five star deluxe [***** deluxe]
THREE STAR CATEGORIES:
For a hotel to be recognized as a three star property the architectural features and
general features of the building should be very good there should be adequate parking
facilities. At least 50% of the rooms must be air-conditioned. Also the ambience and
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decor of the place must be ecstatic. They should provide reservation and information
facility apart from reception, information, bell service at least two gourmet dining facility
should be available. The establishment may or may not have banqueting facility. They
should provide high levels of personalized services. The staff must be well-trained and
proper standards for hygiene and sanitation must be followed. Also all properties have
to keep in mind that proper waste management is done.
FIVE STAR CATEGORIES:
Five star category is only allotted to properties, which have all the qualities of a three
star property and a few additional. Like the entire property must be centrally air-
conditioned. The building of the property must be an attractive one. All the rooms must
be spacious. The property must have proper banqueting facility, business center.
Proper and well-maintained pool and health club a spa is optional. The property must
have 24 hour coffee shop, round the clock room service, a bar, and a minimum of 1
gourmet restaurant. The staff must be highly trained and a degree of specialization must
be shown. State of art Equipments must be used and the facility provided in the rooms
must be sophisticated.
FIVE STAR DELUXE CATEGORIES:
They are more or less like five star properties with the only difference is that they are on
a larger scale. Five star deluxe properties maintain a very high staff to guest ratio and
very high levels of service is maintained. They in addition to five star properties have 5
to 7 dining rooms, a bar, 24-hour coffee shop, banqueting facility. Spas, fitness centers,
business centers etc.
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COMPETITION IN HOTEL INDUSTRY
After witnessing good times for 3 years, the hotel sector had a tough 2009 due to the
Global Economic slowdown and terror attacks. The travel & tourism growth in 2009
slowed down to just 1%. The global economic downturn impacted the Indian tourism
and hospitality industry which saw a decline in the foreign tourist arrivals to India from
5.13 m in FY 2009 to 5.5 m in FY2010, thereby resulting in a increase of 7% . India
occupies the sixty-second position among the top tourist destinations in the world for
2009. To encourage the tourism sector, the government in recent times, has taken
some measures which will benefit the sector. In FY2009, Rs. 5.2 bn for development of
tourism infrastructure was allocated. This figure is higher by Rs 970m as compared
what was allocated in the previous year. However, it is only 1% of the total government
spending. RBI has allowed ECB upto US$ 100 m in January 2009, which would help in
raising funds. The Centre and States are also working out a PPP (Public-Private-
Partnership) model to increase hotel capacity. Government of India increased spend on
advertising campaigns (including for the campaigns 'Incredible India' and 'Athithi Devo
Bhava' - Visitors are like God) to reinforce the rich variety of tourism in India. The
ministry promoted India as a sate tourist destination and undertook various measures,
such as stepping up vigilance in key cities and at historically important tourist sites.
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Supply
We have a shortage of 100,000 guest rooms short in the
country. Thisis expected to keep ARRs high for the next few years.
Demand
Largely depends on business travelers but tourist traffic is
also on the
rise. Demand normally spurts in the peak season between
November
and March.
Barriers to entry
High capital costs, poor infrastructure facilities and scarcity
of land
especially in the metros.
Bargaining power of supplires
Limited due to higher competition, especially in the metros.
Bargaining power of customers
Higher in metro cities due to increasing room supply.
Competition
Intense in metro cities, slowly picking up in secondary
cities.
Competition has picked up due to the entry of foreign hotel
chains
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Chapter-3
COMPANY PROFILE
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PROFILE OF THE HOTEL
TOGETHER WE DELIVER MORE
The Centaur Hotel Group began in 2012 when two great companies joined forces to
leverage their significant synergies and go to market to do business together:
Carlson Hotels, a division of Carlson a vibrant, family-owned, U.S.-based global
hospitality and travel company with a strong portfolio of ambitious brands and ambitious
goals, and The Rezidor Hotel Group one of the world's most dynamic, innovative and
fastest growing hotel companies; operating and developing the Carlson brands
Radisson Blu and Park Inn by Radisson across Europe, the Middle East and Africa, and
Hotel Missoni under a worldwide licence agreement. Rezidor is a publicly listed
company at Stockholm Stock Exchange. The company's legal status and ownership
structure remain; Carlson is Rezidor's majority shareholder (50.3%).
Carlson and Rezidor have enjoyed a long, common history of successful growth. And
so, the decision to join forces as a strategic partnership and go to market as The
Carlson Rezidor Hotel Group was a natural, next step in leveraging the strengths of two
great companies to create additional value for all stakeholders.
CREATING VALUE
The impressive size of the Carlson Rezidor Hotel Group's worldwide footprint unlocks
significant value creation opportunities related to:
The global management and development of its brands
The ambitious development of its revenue generation engines
The leveraging of global purchasing opportunities
People development on a global basis
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The goals of the Carlson Rezidor Hotel Group partnership are to:
Generate attractive financial returns for owners
Create value for all shareholders
Be advantageously perceived by business partners around the world as one global
hotel company
Offer compelling and consistent value propositions to the guests
Offer global career and development opportunities to the staff
Through a number of concrete revenue generation initiatives, the Carlson Rezidor Hotel
Group aims to generate more than USD 400 million in additional revenue and a
RevPAR Index increase of more than nine points by 2015.
These initiatives include:
A reinforced global sales team
The growth of the companys brand website
Unique revenue optimization tools
Partnership projects with travel intermediaries, including Carlson Wagonlit Travel
A global steering committee has been established to oversee the value creation areas
and the development of the Carlson Rezidor Hotel Group. It is co-chaired by Hubert
Joly, president and chief executive officer of Carlson, and Kurt Ritter, president and
chief executive officer of Rezidor.
The chosen logo of the Carlson Rezidor Hotel Group symbolizes several key elements
of the company: the combination of the Carlson name and the Rezidor name highlights
the partnering nature of the relationship; and the Carlson symbol on top of the logo
represents important values such as relationships, heritage, innovation and service.
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AMBITION 2015 / ROUTE 2015
The Carlson Rezidor Hotel Group has ambitious goals: to be the number one hotel
company to work for and invest with, and to have segment leading, global brands. We
intend to grow the company's hotel portfolio by at least 50 percent, reaching at least
1,500 hotels in operation by 2015.
Underpinning these key principles, the group will also maintain a strong focus on the
four priority growth initiatives:
Expanding Radisson Blu and Radisson as strong, globally consistent, first class brands
Accelerating the growth of Country Inns & Suites By Carlson in key markets
Growing Park Inn by Radisson as a winning midscale brand across theaters in key
countries
Continuing the push in key emerging economies, with added emphasis on midscale
These will be achieved by:
Establishing clear, compelling positioning for each brand
Operationalizing the brand promises
Accelerating development resources and commitment
Winning the revenue battle
Building a global team and organization
Rezidor, as a publicly listed company, is leveraging the relationship with its main
shareholder, Carlson. The partnership with Carlson can help Rezidor capture revenue
generation and purchasing opportunities, in support of its Route 2015 plan. Carlson has
invested significantly in the last few years in revenue generation capabilities, especially
in the areas of the web, its industry leading loyalty program Club Carlson, global sales
capabilities, relationship with key intermediaries and revenue optimization tools. These
investments can and will be leveraged by Rezidor.
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OURCREDO
For the Carlson Rezidor Hotel Group, hospitality is more than a market: it represents theessence of what we do for our guests. We simply like to take care of them and bring
them extraordinary service.
Whatever you do,
do with Integrity.
Wherever you go,
go as a Leader.
Whomever you serve,
serve with Caring.
Whenever you dream,
dream with your All.
And never, ever give up.
FACT & FIGURE
1,319 Hotels
209,000 rooms80,000 employees
80 Countries
USD 7 billion system-wide revenues
9 largest hotel company in the world
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OUR BRANDS
The Carlson Rezidor Hotel Group's brands, which include:-
Radisson Blu
Radisson
Park Plaza
Park Inn by Radisson
Country Inns & Suites By Carlson
Hotel Missoni,
are among the most recognized and respected in the industry.
CAREERS
We are a people business. As one of the worlds largest hotel companies, operating in
80 countries with more than 80,000 inspiring people, we are always looking for great
people to join our team. We aspire to be the number one hospitality company to work
for:
Americas
Asia Pacific
Europe, Middle East, Africa
The Rezidor Hotel Group
PPHE Hotel Group
Radisson Edwardian Hotels
https://careers.peopleclick.com/careerscp/client_carlson/external_chw/search.dohttps://careers.carlsonhotelsasiapacific.com/carlson/Employment_Listings.htmlhttp://investor.rezidor.com/phoenix.zhtml?c=205430&p=careershttp://www.parkplazahotels.net/careers/http://www.radissonedwardiancareers.com/http://www.radissonedwardiancareers.com/http://www.parkplazahotels.net/careers/http://investor.rezidor.com/phoenix.zhtml?c=205430&p=careershttps://careers.carlsonhotelsasiapacific.com/carlson/Employment_Listings.htmlhttps://careers.peopleclick.com/careerscp/client_carlson/external_chw/search.do -
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BENEFITS WITH CLUB CARLSON
Enjoy more points, more partners and more places with Club Carlson - the global hotel
rewards program from the Carlson Rezidor Hotel Group. Join today to access a
collection of exceptional benefits, service and privileges at any of our more than 1,000
hotels worldwide.
Club Carlson offers you:
20 Gold Points per U.S. dollar spent on eligible hotel nights, as well as meals and
beverages charged to your room, at participating hotels
Free nights faster starting at 9,000 Gold Points
No blackout dates for award nights on standard rooms
Free Internet for Club Carlson members at Carlson Rezidor hotels worldwide
A collection of first-class redemption options
Elite status starting at 15 nights or 10 stays per year
EARNING POINTS
When you become a member of Club Carlson for Business you will be issued a
company ID. You will earn Gold Points for every eligible reservation that includes yourcompany ID.
Earn 8 Gold Points per U.S. dollar spent on eligible hotel nights at Radisson, Country
Inns & Suites By Carlson, Park Innand Park Plazahotels worldwide.
Earn 2 additional Gold Points per U.S. dollar spent on eligible hotel nights worldwide
booked online at clubcarlson.com, Radisson.com, CountryInns.com, ParkInn.com and
ParkPlaza.com or booked using any of the mobile versions of our web sites.
http://www.clubcarlson.com/specialoffers/offerdetail.jsp?offerId=6041087http://www.clubcarlson.com/specialoffers/offerdetail.jsp?offerId=6041087 -
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Whenever you arrange hotel stays for your employees, vendors, or business partners,
be sure to include your company ID to earn Gold Points for your company. And your
travelers may also continue to earn Gold Points through their individual Club Carlson
memberships for the same hotel stays.
REWARDS
You decide how to use the points you earn: Reward employees, save your rewards to
offset future travel expenses, or stock up on office supplies. Our flexible rewards let you
tailor the benefits to meet the needs of your business.
Club Carlson for Business customers may redeem points for Club Carlson rewards,
including:-
Hotel nights, using either Gold Points or Points + Cash
Prepaid Cards and Retail Gift Cards (Retail gift cards only available to US members)
Vacation savings through CWT Vacations (U.S. members only) and Club
Med (U.S./Canadian members only)
Airline miles (when transferred to an individual)
Charitable donations to the World Childhood Foundation
CO2 Emissions offsets
http://www.clubcarlson.com/freenightshttps://www.clubcarlson.com/fgp/redeem/storedvaluecards/home.dohttp://www.clubcarlson.com/fgp/redeem/retailcards/home.dohttp://clubcarlson.cwtvacations.com/http://www.clubcarlson.com/clubmedhttp://www.clubcarlson.com/clubmedhttp://www.clubcarlson.com/fgp/redeem/airlinemiles/home.dohttp://www.clubcarlson.com/offers/1768290http://www.clubcarlson.com/offers/3330757http://www.clubcarlson.com/offers/3330757http://www.clubcarlson.com/offers/1768290http://www.clubcarlson.com/fgp/redeem/airlinemiles/home.dohttp://www.clubcarlson.com/clubmedhttp://www.clubcarlson.com/clubmedhttp://clubcarlson.cwtvacations.com/http://www.clubcarlson.com/fgp/redeem/retailcards/home.dohttps://www.clubcarlson.com/fgp/redeem/storedvaluecards/home.dohttp://www.clubcarlson.com/freenights -
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BenefitsRed
Not a member?
Sign up
Silver
15 Nights/10 Stays Per
Year
Gold
35 Nights/20 Stays Per
Year
Concierge
75 Nights/30 Stays Per
Year
Earn 20 Gold Points per
U.S. dollar spent on Room
Revenue
Earn 20 Gold Points per
U.S. dollar spent on Food
and Beverage charged to
your room
Hotel Redemption Offers(Standard, Points + Cash)
Partner Redemption Offers
(Airlines, Prepaid Cards)
Free Internet*
Online Booking Points
Bonus1,000 points 2,000 points 2,000 points 3,000 points
Complimentary RoomUpgrade
Point Bonus 25% 50% 75%
Elite Roll Over Nights
Early Check-In/Late
Checkout
Elite Customer Service Line
In-Room Welcome Gift
Room Availability Guarantee 72 hrs 48 hrs
Free Continental Breakfast
(Restaurant only)
Global Concierge
https://www.clubcarlson.com/profiles/secure/joinRouter.dohttps://www.clubcarlson.com/profiles/secure/joinRouter.dohttp://www.clubcarlson.com/specialoffers/offerdetail.jsp?offerId=3227894http://www.clubcarlson.com/specialoffers/offerdetail.jsp?offerId=3227984http://www.clubcarlson.com/specialoffers/offerdetail.jsp?offerId=4095904http://www.clubcarlson.com/specialoffers/offerdetail.jsp?offerId=4095904http://www.clubcarlson.com/specialoffers/offerdetail.jsp?offerId=3227984http://www.clubcarlson.com/specialoffers/offerdetail.jsp?offerId=3227894http://www.clubcarlson.com/specialoffers/offerdetail.jsp?offerId=4095904http://www.clubcarlson.com/specialoffers/offerdetail.jsp?offerId=3227984http://www.clubcarlson.com/specialoffers/offerdetail.jsp?offerId=3227894http://www.clubcarlson.com/specialoffers/offerdetail.jsp?offerId=4095904http://www.clubcarlson.com/specialoffers/offerdetail.jsp?offerId=3227984http://www.clubcarlson.com/specialoffers/offerdetail.jsp?offerId=3227894http://www.clubcarlson.com/specialoffers/offerdetail.jsp?offerId=4095904http://www.clubcarlson.com/specialoffers/offerdetail.jsp?offerId=3227984http://www.clubcarlson.com/specialoffers/offerdetail.jsp?offerId=3227894http://www.clubcarlson.com/specialoffers/offerdetail.jsp?offerId=4095904http://www.clubcarlson.com/specialoffers/offerdetail.jsp?offerId=3227984http://www.clubcarlson.com/specialoffers/offerdetail.jsp?offerId=3227894https://www.clubcarlson.com/profiles/secure/joinRouter.dohttps://www.clubcarlson.com/profiles/secure/joinRouter.do -
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MARKETING PRACTICE
Marketing Funda : Above The Line & Below The Line
Above the Line (ATL) and Below The Line (BTL) are the two most commonly used
terms in marketing. Both these refer to the nature of promotional activities done by
companies.
The simple and most common definition for Above the Line promotions is that ATL
refers to all promotional activities done by companies through mass media. In common,
Advertising is the major ATL activity and all other form of promotions except direct
marketing falls below the line.
Both ATL and BTL jargons does not form a part of the core marketing concepts hence
you will not find a clear academic definition in marketing text book.
According to Mr .Michael John Baker (, the term came into forefront in 1954 through the
practice of Proctor and Gamble, where the advertising agencies were paid differently
from those who undertook promotional activities other than advertising. Marketers
began to delineate activities other than advertising as a separate marketing practice
called Below the Line Promotion.
Below The Line promotions include sales promotions, consumer promotions, PR,
events , point of purchase promotions and all those unconventional tools that marketers
adopt. Direct Marketing how ever could not be fitted into both these jargons and henceis kept stand alone.
Frankly there is no need for such a hypothetical boundary and classifications like ATL
and BTL. The current developments that are happening in the media space makes such
jargons highly irrelevant. Because boundaries are blurring. Now we see consumer
promotions heavily advertised in mass media. Events are highly publicized using
advertising, so the LINE is actually non-existent.
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For example a viral video in You tube which is watched by millions can be theoretically
put as a BTL but it is reaching even more people than the traditional media like TV and
print. The recent ZooZoo campaign of Vodafone cannot be bracketed along ATL and
BTL because the campaign has already become viral with many blogs writing about it.
The campaign was designed to be viral.
Above the line sales promotion
ATL is a type of advertising through media such as television, cinema, radio, print,
and Out-of-home to promote brands or convey a specific offer. This type of
communication is conventional in its nature and is considered impersonal to customers.
It differs from BTL advertising, which uses unconventional brand-building and
promotional strategies, such as direct mail, sales promotions, flyers, point-of-
sale, telemarketing and printed media (for example brochures) and usually involves
no motion graphics.[1]It is much more effective than when the target group is very large
and difficult to define.
The term comes from top business managers and involves the way in which Procter &
Gamble, one of the worlds biggest advertising clients, was charged for its media in the
1950s and 1960s.
Advertising agencies made commission from booking media (Television, cinema, radio,
press, out-of-home and magazines). As below the line had no media involvement there
was no commission to be made for the advertising agencies. The accountants thus
labeled the different media ATL and BTL depending on where it would sit in the balance
sheet and profit and loss accounts (ATL where they made a profit and BTL where they
did not) Since then, models have changed and clients are no longer charged for their
media in that way.
Below the line sales promotion
BTL sales promotion is an immediate or delayed incentive to purchase, expressed in
cash or in kind, and having short duration. It is efficient and cost-effective for targeting a
http://en.wikipedia.org/wiki/Advertising#Mediahttp://en.wikipedia.org/wiki/Televisionhttp://en.wikipedia.org/wiki/Filmhttp://en.wikipedia.org/wiki/Radio_broadcastinghttp://en.wikipedia.org/wiki/Print_mediahttp://en.wikipedia.org/wiki/Out-of-home_advertisinghttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Point_of_sale_displayhttp://en.wikipedia.org/wiki/Point_of_sale_displayhttp://en.wikipedia.org/wiki/Telemarketinghttp://en.wikipedia.org/wiki/Below_the_line_(advertising)#cite_note-1http://en.wikipedia.org/wiki/Below_the_line_(advertising)#cite_note-1http://en.wikipedia.org/wiki/Below_the_line_(advertising)#cite_note-1http://en.wikipedia.org/wiki/Target_grouphttp://en.wikipedia.org/wiki/Procter_%26_Gamblehttp://en.wikipedia.org/wiki/Procter_%26_Gamblehttp://en.wikipedia.org/wiki/Procter_%26_Gamblehttp://en.wikipedia.org/wiki/Procter_%26_Gamblehttp://en.wikipedia.org/wiki/Procter_%26_Gamblehttp://en.wikipedia.org/wiki/Target_grouphttp://en.wikipedia.org/wiki/Below_the_line_(advertising)#cite_note-1http://en.wikipedia.org/wiki/Telemarketinghttp://en.wikipedia.org/wiki/Point_of_sale_displayhttp://en.wikipedia.org/wiki/Point_of_sale_displayhttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Out-of-home_advertisinghttp://en.wikipedia.org/wiki/Print_mediahttp://en.wikipedia.org/wiki/Radio_broadcastinghttp://en.wikipedia.org/wiki/Filmhttp://en.wikipedia.org/wiki/Televisionhttp://en.wikipedia.org/wiki/Advertising#Media -
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limited and specific group. It uses less conventional methods than the usual ATL
channels of advertising, typically focusing on direct means ofcommunication, most
commonly direct mail and e-mail, often using highly targeted lists of names to maximize
response rates. BTL services may include those for which a fee is agreed upon and
charged up front.
BTL is a common technique used for "touch and feel" products (consumer items where
the customer will rely on immediate information rather than previously researched
items).
BTL techniques ensures recall of the brand while at the same time highlighting the
features of the product.
Another BTL technique involves sales personnel deployed at retail stores near targeted
products. This technique may be used to generate trials of newly launched products. It
helps marketers establish one-to-one relationship with consumers while mass
promotions, by definition, make it difficult to gauge consumer-response, except at the
time of sales. Examples include tele-marketing, road shows, promotions, in- shop and
shop-front activities, display units.
The terms "below the line" promotion or communications, refers to forms of non-media
communication, even non-media advertising. Below the line promotions are becoming
increasingly important within the communications mix of many companies, not only
those involved in FMCG products, but also for industrial goods. Below the line sales
promotions are short-term incentives, largely aimed at consumers. With the increasing
pressure on the marketing team to achieve communication objectives more efficiently in
a limited budget, there has been a need to find out more effective and cost efficient
ways to communicate with the target markets. This has led to a shift from the regular
media based advertising. In other words, below-the-line sales promotion is an
immediate or delayed incentive to purchase, expressed in cash or in kind, and having
only a short term or temporary duration.
Below the Line uses less conventional methods than the usual specific channels of
advertising to promote products, services, etc. than Above the Line strategies. These
may include activities such as direct mail, public relations and sales promotions for
which a fee is agreed upon and charged up front. Below the line advertising typically
http://en.wikipedia.org/wiki/Communicationhttp://en.wikipedia.org/wiki/Communication -
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focuses on direct means of communication often using highly targeted lists of names to
maximize response rates.
Trained sales personnel, often young women, are deployed at Retail Stores, near the
shelves of targeted products. These young women convince customers visiting these
shelves about the better aspects of their brand compared with others. This is ideal for
new launches as it generates trials, which if successful result in repeat sales. In
addition, above the line is much more effective when the target group is very large and
difficult to define. But if the target group is limited and specific, it is always advisable to
use BTL promotions for efficiency and cost-effectiveness.
Say, for example, if a pen manufacturer is going to promote its product, it may take the
ATL route, but if a company manufactures computer UPS, it will certainly take the BTL
route, as the target group is very limited and specific.
More recently, agencies and clients have switched to an 'Integrated Communication
Approach.' BTL is a common technique used for "touch and feel" products ,consumer
items where the customer will rely on immediate information rather than previously
researched items. BTL techniques ensures recall of the brand while at the same time
highlighting the features of the product.
HOTEL TARIFF PLANS
The various tariff patterns followed by hotels have come to be identified with the areas
where such patterns originated .hotels charge their guests according to the European
plan, Continental plan, American plan, Bed and Breakfast meal plans ,etc.
EUROPEAN PLAN: The tariff consists of room rate only .all other expenses would bepaid by the guest as per the actual use or consumption.
CONTINENTAL PLAN: The room tariff includes continental breakfast along with the
room rent .A continental breakfast includes a choice of fresh or canned juices, breads
like toast, croissant, etc. with butter or preserves like jam, jellies and marmalade,
beverages like tea or coffee with or without milk.
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AMERICAN PLAN: It is also known as en-pension or full board. The tariff includes all
meals(b/f, lunch and dinner)along with room rent. The menu for the food and beverage
is fixed.
MODIFIED AMERICAN PLAN: It is also known as half board. The tariff consists of
breakfast and one major meal (lunch or dinner) along with the room rent.
BED AND BREAKFAST PLAN (B&B) OR BERMUDA PLAN:The room tariff includes
American breakfast along with the room rent. American breakfast generally includes
most or all of the following :two eggs (fried or poached),sliced bacon or sausages, sliced
bread or toast with jam /jelly/butter, pancakes with syrup, cornflakes or other cereal,
coffee/tea or orange/grapefruit juice.
STRATEGY
Rezidor announces Route 2015 Strategy plan to expand margins by 6-8 points.
At the Rezidor Hotel Group's Capital Market Day in London in December 2011, thecompany announced their "Route 2015 Strategy" a number of initiatives to improve
the group's EBITDA margin. Rezidor's plan will focus on several targeted areas which
combined are expected to push the
margins by 6 to 8 percentage points by 2015; assuming that market RevPAR growth will
be in line with inflation.
Our main focus is improving profitability both in absolute terms and relative to the
industry. In the current macroeconomic situation, we have to focus on what we cancontrol ourselves, and I feel confident we will be able to improve our underlying margins
over the next few years while continuing to pursue our asset-light growth strategy.
One important element is to put stronger emphasis on Revenue Generation, partly
through achieving more synergies with our partner and brand owner Carlson.
Besides different revenue initiatives, the targeted approach includes growing the
group's fee-based hotel portfolio and cost savings. The company has also established a
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separate Asset Management function in order to optimize the existing portfolio of leased
assets, to increase profitability and to reduce the leverage of the company.
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KEY PERFORMANCE INDICATORS
We use a number of key performance indicators (KPIs) to measure the performance of
our business and report on them quarterly.
Hotels/rooms in operation
The number of hotels/rooms operating under any of our brands.
In operation as of
31 Dec 2011
Rezidor Totals Radisson Blu Park Inn by
Radisson
Hotel Missoni Other
Number of hotels 325 209 109 2 5
Number of rooms 70,766 49,590 20,540 305 331
Hotels/rooms under development (pipeline)
The number of hotels/rooms officially signed with no condition precedent due to open
within the next three to four years.
Under
development as
of
31 Dec 2011
Rezidor
Totals
Radisson Blu Park Inn by
Radisson
Hotel Missoni Other
Number of hotels 100 52 43 5 0
Number of
rooms
22,039 13,244 7,937 858 0
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Occupancy
Number of rooms sold in relation to the number of rooms available for sale.
RevPAR
Revenue Per Available Room: Rooms revenue in relation to rooms available.
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Revenue
All related business revenue (including rooms revenue, food & beverage revenue, other
hotel revenue, fee revenue and other non-hotel revenue from administration units).
EBITDAR and EBITDAR Margin
Operating profit before rental expense and share of income in associates and before
depreciation and amortisation and gain on sale of shares and of fixed assets and net
financial items and tax. The EBITDAR margin is EBITDAR as a percentage of Revenue.
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EBITDA and EBITDA margin
Operating profit before depreciation and amortization and gain on sale of shares and
fixed assets and net financial items and tax. The EBITDA margin is EBITDA as apercentage of Revenue.
MARKETING STRATEGY
Direct Marketing
The direct marketing is handling by their PR agency. They will buy select targeted list of
corporate companies and send them information about Good Hotels.
Website Marketing Strategy
The main website marketing strategy hinges upon making sure all major travel sites list
hotels which comes under Carlson Rezidor when customers search for hotels in our
area.
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Sales Plan
Our sales plan hinges upon our sales strategy, sales process and, prospecting plan. As
long as we follow the plans laid below we should be in good shape.
Sales Strategy
Loyalty Programme sales strategy hinges upon repeat visits. We need to develop a
relationship with the companies listed in our Sales Account Plan, as well as actively
generate new accounts by soliciting first time corporate visitors.
It will be important to remain competitive on price, as well as amenities. When you
become a member in Club Carlson for Business, you will be issued a Company ID. Just
make sure you give us that ID when you make a qualifying reservation and youll earn
Gold Points for every eligible reservation that includes your company ID. Whenever you
arrange hotel stays for your employees, vendors, or business partners, be sure to
include your company ID to earn Gold Points for your company. And your travelers may
also continue to earn Gold Points through their individual Club Carlson memberships for
the same hotel stays.
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Chapter-4
RESEARCH METHODOLOGY
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RESEARCH METHODOLOGY
When conducting a research there are two ways of approaching; qualitative and
quantitative research method.
I use Quantitative research method as it emphasizes on quantification in the collection and
analysis of the information. The aim is to gather numerical evidence where conclusions can
be drawn from or they can be used to test hypotheses. In order to get reliable results it is
necessary to study relatively large sample group and use a computer to analyze the
collected information. The information is derived from questionnaire surveys, secondary
sources and from observation involving counts.
DATA COLLECTION TECHNIQUES
The sources of data includes primary and secondary data sources.
Primary Sources:
Primary data is collected by survey.
Secondary Sources:
The secondary data is data, which is collected and compiled from different sources and
are used in research for this study.
The secondary data include material collected from:
Newspaper
Magazine
Internet
Friends
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DATA COLLECTION INSTRUMENTS
The various method of data gathering involves the use of appropriate recording forms.
These are called 'tools' or 'instruments of data collection.
Collection Instruments
Questionnaire
Observation
Questionnaire surveys can be done in two different ways; interviewer-completed or
respondent-completed.
I used respondent-completed method for filling the questionnaire. When the
questionnaire is being completed by the respondent, the questions are read by the
respondents themselves and they also answer the question by filling the answer on to
the questionnaire. Ideally these questionnaire surveys consist primarily of closed
questions that can be answered easily by only ticking a box. The aim of the
questionnaire is to research and gather information from the people on how well they
think marketing is being done in the hotel and how they would improve it. Open ended
questions should be avoided in respondent-completed questionnaires for they usually
receive a low response. Respondent-completed questionnaires are often used in
surveys done for example through the Internet or by mail. They are ideal when a large
sample group is needed.
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Chapter- 5
DATA ANALYSIS, INTERPRETATION
AND RESULTS
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Data Analysis and Interpretation
1. Location of the all hotels under Carlson Group.
Interpretation:
100% of the respondents saying that location is the main advantage of the hotel under
Carlson Group. For ex, The Radisson Blu is the closest hotel to Delhi International
Airport and is 10 minutes from the domestic airport. The main shopping areas like
shopping malls in Gurgaon, South Extension market and Vasant Kunj are located
nearby. The hotel is located next to the Gurgaon toll on the National Highway, giving
easy access to both Gurgaon and Delhi.
2. Excellence of staff
Feedback Percentage
Very Good 80%
Good 20%
very good
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Interpretation:
80% of the respondents think that the hotel staffs have very good excellence. And therest 20% saying the excellence of the staff is good.
3. Physical facilities
Feedback Percentage
Good 26.7
Very Good 73.3
0
10
20
30
40
50
60
70
80
90
Good Very Good
percentage
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Interpretation:
The 73.3% of the respondents feels that the physical facilities of the hotel is very good.
And the rest 26.7% feels its good
4. Safety Facilities
Feedback Percentage
Good 33.4
Very good 66.6
0
10
20
30
40
50
60
70
80
Good Very Good
percentage
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Interpretation:
66.6% of the respondents are satisfied with the safety facilities in the hotel. The rest
33.4% feels that the safety facilities are good in the hotel.
5. Cleanness & Comfort ability of rooms
Feedback Percentage
Good 80
Very Good 20
0
10
20
30
40
50
60
70
Good Very Good
percentage
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Interpretation:
The 80% of the respondents are satisfied with the cleanness and comfort ability of the
rooms. The rest 20% feels that the cleanness and comfort ability.
6. Services of the hotel
Feedback Percentage
Good 40
Very Good 60
0
10
20
30
40
50
60
70
80
90
good very good
percetage
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Interpretation:
60% of the respondents are satisfied in the services provided by the hotel. And the rest40% feels that the services provided by the hotel is good.
7. Value for money
Feedback percentage
Not upto the mark 20
Good 26.7
Very good 53.3
0
10
20
30
40
50
60
70
Good Very Good
percentage
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Interpretation:
The 20% of the respondents are not satisfied with the value provided their money. And
53.3% are satisfied, and the rest 26.7% of the respondents feels the value given for
their money is good.
8. Reference for the hotel
Feedback Percentage
News paper 26.6
Magazine 26.6
internet 46.8
0
10
20
30
40
50
60
not upto the mark good Very good
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Interpretation:
26.6% of the respondents come to about the hotel from news paper, other 26.6% from
magazine, and the rest 46.8% from internet.
9. Accessibility of reservation system
Feedback Percentage
Good 40
Very good 60
0
5
10
15
20
25
30
35
40
45
50
News Paper magazine Internet
Column1
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Interpretation:
60% of the respondents says they are satisfied with the reservation system. And the
rest 40% feels its good.
RESULTS
1. The hotel industry is in boom.
2. The location of the hotel is the main advantage for the hotel.
3. The customer survey says that most of the customers are happy.4. There must be an innovation in marketing strategy.
5. Effective marketing can raise the business of the hotel.
6. Event conducting have an important role in profit generation.
0
10
20
30
40
50
60
70
Good Very Good
perentage
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Chapter - 6
CONCLUSION AND SUGGESTIONS
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CONCLUSION
On the basis of overall study on Hotel Industry it s found out that the hotel, hospitalityindustry is in a booming stage. The income has generally generated from tourism and
from Corporates as the business meetings is generally fixed in top hotels so in this way
Hotel Industry is growing.
I was really surprised to see during my study that the hotel industry is really growing
even if it has some challenges like any other industry.
The hotel can more concentrate on direct marketing and web marketing. It will surelyhelp to increase the business of the hotel. And it should concentrate to give more value
for the customers money as some of the customers feels that value for money is not
upto the mark.
No doubt that Hotel Industry growth towards the progress of economy is positive. But
the challenges confronting the industry segment are giving it a low customer base.
These problems could be overcome easily by revising marketing strategies and also
there should be effective direct marketing
SUGGESTIONS
1. Prices should be rescheduled
2. Direct marketing must be more efficient.
3. Marketing strategy should be revised.
4. Tour Packages should be introduced.
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APPENDICES
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BIBLIOGRAPHY
1. MAGAZINES (For Tourists)
2. NEWSPAPER
3. INTERNET SITES
www.clubcarlson.com
www.carlsonrezidor.com
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QUESTIONNAIRE
1) How do you rate the location of all hotels under Carlson group?
a) Not up to the mark b) Average
c) Good d) Very Good
2) How do you rate the Excellence of the staff?
a) Not up to the mark b) Average
c) Good d) Very Good
3) How do you rate the physical facilities in the hotel (eg. building, signs, furnishing of
room, lighting, etc)?
a) Not up to the mark b) Average
c) Good d) Very Good
4) How do you rate the safety facilities in the hotel?
a) Not up to the mark b) Average
c) Good d) Very good
5) How do you rate the cleanness and comfort ability of rooms?
a) Not up to the mark b) Average
c) Good d) Very good
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6) How do you rate the services of the hotel?
a) Not up to the mark b) Average
c) Good d) Very good
7) How do you rate the value for money in hotel?
a) Not up to the mark b) Average
c) Good d) Very good
8) How do you come to know about this hotel?
a) News paper b) Magazine
c) Internet d) television
9) How do you rate the accessibility of reservation system?
a) Not up to the mark b) Average
c) Good d) Very good
10) What suggestions do you want to make?