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Faiz Ahmed
Simpreet Singh Manik Mehra
CONTENT FLOW
Hotel Industry in India Introduction Approach to the case Product Mix Price Mix Place Mix Promotion Mix
INTRODUCTION
The hotel industry covers a wide range of establishments Provides hotel services in the form of:
Brick-n-Mortar
A traditional "street-side" business that deals with its customers face to face
Consumer Perspective
Consumers were targeted and asked the relevant questions through an online survey.
Owner Perspective
Hotel owners were approached and asked a few questions, the answers to which were recorded. The data so collected was organized and analyzed for the ways in which the move of industry from brick and mortar to click and mortar has affected the marketing mix of the industry primarily under:Product Price Place Promotion
PRODUCT MIX
Internet has again played a very major role in this department. Hotels depended upon tie-ups with travel agencies. Little information about the product offered by hotels. Limited to catalogues and booking agents advise.
Virtual hotel tours Customer engagement through mobile apps Special offers for online customers.
CHANGE IN PRICING
CUSTOMER P.O.V
-Dynamic Pricing -Differentiated and Promotional Pricing -Marginal increase in Price over last year
Concept of Dynamic, Differentiated, Promotional, price waterfalls were included 2005 onwards
Hotel booking over net is like booking an air ticket, who controls these prices Change in price over short period of time is amazing, at times it confuses Prices havent increased much, I believe at least I havent noticed it.
35 = Rs. 2900
CHANGE IN PRICING
Due to a shift of model to the click and mortar model, the price competition
Lower Margins Complex pricing strategies (i.e. more time devoted to price planning's) Dynamic and differentiated pricing models
This is what economists describe as a MARKET FAILURE: individuals making decisions that are in their own interests produce a result that is suboptimal, and possibly very damaging, for everyone.
PLACE MIX
Has changed drastically since the advent of the internet and travel websites Conventionally, it consisted of the following: - Direct Individual sales - Travel Agents Often required physical presence; choices to the customers were limited
Even
Power
Book hotel rooms round the world with the click of a mouse Choose from different available schemes Avail discounts from different websites Choose hotels on basis of services offered, price, etc.
PROMOTION MIX
Current trends Hotel Websites Digital Marketing Mobile Marketing Hotel Email Marketing Link Building Unconventional Marketing
HOTEL WEBSITES
Has become a PoP today in the hotel industry First point of contact with the modern age tech-savvy costumer Allowing or encouraging direct purchase from the web site Disintermediation from agents through loyalty programs and best price guarantees Significant use of the latest multimedia tools to present their facilities in the best light Integration into a hotel groups global distribution system
DIGITAL MARKETING
Establishing
a simple customer service and concierge platform via Facebook or Twitter Providing a vital online community for travel enthusiasts to share experiences Communicating the unique values of individual properties Offering direct reservations via Facebook using booking softwares Manage online reputation, responding immediately to positive & negative reviews.
MOBILE MARKETING
Reservations on the go via smartphones Check-in apps for travelers on the go Geo-location marketing methods i.e delivering real-time promotions to prospective customers in local proximity Text and email messaging for mobile advertising Client loyalty programs using location-based services like Foursquare and Facebook Places
HOTEL E-CRM
Intelligent E-mailing confirmation emails pre-arrival emails thank you emails guest satisfaction survey Efficient Reporting Campaign ROI Report Email Performance Report Profile Report Bounce Report
ANALYSIS
Preferred Means of Booking Hotels
Telephone Booking Online Booking Onsite Hotel Booking
30
20 10 0 Difficulty in Slow Irrelevant Misleading Payment Response Search & to Query Results Confusing offers Other
25
20 15 10 5 0 1 2 3 4 5
1 2 3 4 5
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