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: Dr. Neelam Tandon Associate Professor JIMS, Kalkaji

Submitted by: Neha Jaiswal Roll No: 47 Batch: 2012-14

DECLARATION

We, here by, declare that this mentorship project report on Marketing Strategies Of Hotel Industry has been written and prepared by me during the academic year 2012-14. This project was done under the external mentor Mr.Tarun Bhaskar (Assistant Manager) in Carlson Rezidor Hotel Group and internal mentor Dr. Neelam Tandon. In partial fulfillment of the requirement for the Post Graduate Diploma in Management course of Jagannath International Management School, Kalkaji (New Delhi).

Neha Jaiswal

S. No 1. 2. 3. 4.

TOPIC
Introduction of the project What is Hotel? Hotel Industry Objective of the Project Limitation of the study Industry Profile Indian Tourism Industry Domestic & International Tourism Classification of Hotels Competition in hotel industry Company Profile Profile of Carlson Rezidor Ambition, Credo, Facts & Figures, Brands, Careers, Benefits Marketing practices & strategies Research Methodology Research Techniques Data collection instruments & techniques

PAGE NO.

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5. 6. 7.

Data Analysis, Interpretation & Results Conclusion & Suggestions Appendices Bibliography Questionnaire

45 55 57

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.

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 Radisson Hotel which belongs to Carlson Group 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.

Chapter- 1 INTRODUCTION

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 India destination campaign and the recently launched

Atithi 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 brin ging 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 earning form tourism trade and enterprises. The rising volume of tourism influx brought i nto 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 and encouragement 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 of tourist 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 are acceptable 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 the sea. 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 hotels 150 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 airconditioned. 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-PrivatePartnership) 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. This is 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 Carlson Rezidor 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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OUR CREDO
For the Carlson Rezidor Hotel Group, hospitality is more than a market: it represents the essence 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 rooms 80,000 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

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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 your company ID.

Earn 8 Gold Points per U.S. dollar spent on eligible hotel nights at Radisson, Country Inns & Suites By Carlson, Park Inn and Park Plaza hotels 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.
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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

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Benefits

Red

Silver

Gold

Concierge

Not a member? Sign up

15 Nights/10 Stays Per Year

35 Nights/20 Stays Per Year

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 Bonus

1,000 points

2,000 points

2,000 points

3,000 points

Complimentary Room Upgrade

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

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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 hence is 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-ofsale, 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
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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 of communication, 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

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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 be paid 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, the company 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 can control 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

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

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Number of rooms

22,039

13,244

7,937

858

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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 a percentage 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.

very good

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 Very Good Good

Percentage 80% 20%

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90 80 70 60 50 40 30 20 10 0 Good Very Good percentage

Interpretation:
80% of the respondents think that the hotel staffs have very good excellence. And the rest 20% saying the excellence of the staff is good.

3. Physical facilities Feedback Good Very Good Percentage 26.7 73.3

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80 70 60 50 40 30 20 10 0 Good Very Good percentage

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 Good Very good Percentage 33.4 66.6

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70 60 50 40 30 20 10 0 Good Very Good percentage

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 Good Very Good Percentage 80 20

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90 80 70 60 50 40 30 20 10 0 good very good percetage

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 Good Very Good Percentage 40 60

50

70 60 50 40 30 20 10 0 Good Very Good percentage

Interpretation:
60% of the respondents are satisfied in the services provided by the hotel. And the rest 40% feels that the services provided by the hotel is good.

7. Value for money Feedback Not upto the mark Good Very good percentage 20 26.7 53.3

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60

50

40

30

20

10

0 not upto the mark good Very good

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 News paper Magazine internet Percentage 26.6 26.6 46.8

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50 45 40 35 30 25 20 15 10 5 0 News Paper magazine Internet Column1

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 Good Very good Percentage 40 60

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70 60 50 40 30 20 10 0 Good Very Good perentage

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.

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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, hospitality industry 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 surely help 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 c) Good b) Average d) Very Good

2) How do you rate the Excellence of the staff? a) Not up to the mark c) Good b) Average 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 c) Good b) Average d) Very Good

4) How do you rate the safety facilities in the hotel? a) Not up to the mark c) Good b) Average d) Very good

5) How do you rate the cleanness and comfort ability of rooms? a) Not up to the mark c) Good b) Average d) Very good

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6) How do you rate the services of the hotel? a) Not up to the mark c) Good b) Average d) Very good

7) How do you rate the value for money in hotel? a) Not up to the mark c) Good b) Average d) Very good

8) How do you come to know about this hotel? a) News paper c) Internet b) Magazine d) television

9) How do you rate the accessibility of reservation system? a) Not up to the mark c) Good b) Average d) Very good

10) What suggestions do you want to make?

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