CAPSULE ROOMS ice Features

- USP
- Differentiation
-
- advantages

CONCEPT

A capsule hotel, also known in the Western world as a pod hotel, is a type of hotel
developed in Japan that features many small bed-sized rooms known as capsules.
Capsule hotels are accommodations that have thrown away the idea of a single private
room, and have instead focused on basic necessities such as sleep and bath to provide
the most accommodating stay at the lowest prices.

Capsule units that provide rest are shaped like the cockpits of aircrafts and are stacked
in two layers, continuing down the hallway. Capsule hotels provide cheap, basic
overnight accommodation for guests who do not require or who cannot afford larger,
more expensive rooms offered by more conventional hotels.

The first capsule hotel in the world opened in 1979 and was the Capsule Inn Osaka,
located in the Umeda district of Osaka, Japan and designed by Kisho Kurokawa. From
there, it spread to other cities within Japan. Since then, the concept has further spread
to various other territories, including Belgium, China, Hong Kong, Iceland, India,
Indonesia, and Poland.

FEATURES

1. The capsule’s dimensions are usually 1.2m wide, 2m long, and 1m high. So, they
are not exactly suitable for standing or squatting.
2. The additional facilities provided apart from bed are, a hanging TV, suitable to
watch in sleeping position, Wi-Fi, mirrors and small drawers.
3. There are no private bathrooms, only the communal shower room.
4. Capsules have no lockers attached. Individual lockers for guests to keep their
stuff are usually placed in a separate zone.
PRODUCT VARIATIONS & AMENITIES

Classic Pod
A pod with single capacity with amenities for both males and females.

● Fits 1 comfortably
● Full privacy within pod
● Baggage lockers outside the pod
● Complimentary breakfast
● Common bath facilities

Each pod comes with:

● Personal TV
● Complimentary wifi
● Power socket
● 2 USB ports
● Mood lighting
● Personal locker
 Suite Pod
Pod with double capacity with enhanced amenities.

● Fits 2 comfortably
● Queen size bed
● Window facing
● Complimentary breakfast
● Common bath facilities
Each pod comes with:
● Personal TV
● Complimentary wifi
● Marble top study table
● Cushioned seat
● Luggage storage space
● Personal locker
 Ladies only Pod
To enhance safety and privacy, we have a pod area exclusive to female guests
only.

● Fits 1 comfortably
● Full privacy within pod
● Baggage lockers outside the pod
● Complimentary breakfast
● Ladies only bath facilities
Each pod comes with:
● Personal TV
● Complimentary wifi
● Power socket
● 2 USB ports
● Mood lighting
● Personal locker
USP
1. Ladies only floor.
2. Pricing policy: hourly basis payment, more feasible for travellers.
3. The concept facilitates opportunities to network and socialise with other guests
staying at the hotel and encourages the whole aspect of community-building and
shared-living.

SUCCESSION PLAN
Future collaboration with IRCTC
Future expansion of business to other parts of mumbai and India.

GEOGRAPHICAL LOCATION

1. Expansion of capsule stay services near the Airport, commercial hubs, railway
stations.
2. Provision of this service around main railway stations of Mumbai like CSMT,
Mumbai Central.
Population of mumbai - 23 million
Foot fall of mumbai airport ( Lower Parel ) - 50 million ( 2018 - 2019)
Foot fall of mumbai CSMT - 4.6 million ( 2018 - 2019 )
Population of Mumbai​ -

Mumbai is one of the most populated cities in the world. The densely populated metro
city of India is home to over 23 million people. Like other metros of India, the population
of Mumbai has also grown rapidly in the last 20 years. It is one of the largest cities of
India in terms of population, business and trade activities. A large majority of the
population in Mumbai are migrants from other states of India. This migrant population
who come and stays here in search of better employment opportunities is one of the
significant factors in the rising population of Bombay.

DIFFERENTIATION

What capsule stay services provides :

When compared to the available hotel services :

1. Through our services, our mission is to provide our customers with the basic
amenities ( a complete package of stay, comfort and health related ) required for
a stay rather than renting out the complete space and amenities coming within it.
2. Our facilities provide the option of renting out on an hourly basis which is not
applicable among the general hotel room services.
3. In the affordable price points we are providing ( INR 149 - INR 1499 ) we provide
the basic requirements compared to the present hotel stay services.

WHAT MAKES CAPSULE ROOM DIFFERENT FROM HOTEL SERVICES :

1. It is feasible because of easy accessibility and customizable hours.

2. Registration process is easier.

TANGIBILITY

Our service is a combination of tangible and intangible. Tangible aspects of our service
quality include the exterior and interior design of the capsule rooms and the service
which we are providing to our customers is intangible.

ADVANTAGES OF CAPSULE ROOMS OVER GENERAL HOTEL MANAGEMENT

SERVICES

The biggest ​advantage of a ​capsule hotel is the same as with a hostel: price. For an
affordable price range you get a bed for the night and a clean shower in the morning.
One of the main ​advantages of a capsule hotel is you get to meet people, which is
rather difficult with a ​capsule hotel​ similar to Nine Hours.

The best way to think about a capsule hotel is distilling down the bare necessities of a
hotel room, and then stacking a bunch of that in a big room. Each capsule is roughly as
wide and as long as a single bed, and about that tall.
Attached facilities :

INTRODUCTION / UNDERSTANDING OF THE INDUSTRY

History of the business

Lifecycle of the business
Major players

HISTORY OF CAPSULE HOTELS

Capsule hotels are unlike any other hotels in the world. They originated in the city of
Osaka in the Kansai region of Japan and on the island of Honshu. First debuted in the
year 1979, capsule hotels were, at the time, considered to be the height of Japanese
practicality and efficiency. The word, capsule, first began to enter Japanese vocabulary
in the 1960s and has connotations of technological advancement, as well as compact
and futuristic design.

A capsule hotel is one of the most unique and ​compact hotel experiences that you can
have. Of course, this also makes it one of the most affordable. These hotels feature
rooms that are extremely small.

These long cube-like capsules are about six to seven feet long and perhaps three feet
high. The idea is to give people just enough space to feel comfortable and get a good
night’s rest, without all of the extra frills that take up space and could occupy your time
and money.

SIZE AND STRUCTURE OF THE BUSINESS

Capsule hotels are divided into two main types mainly side by side capsule and
separate capsule. At present side by side capsule hotels claim the majority of global
market share and lead the overall capsule hotel as a business.

Side by side capsule hotels are the most popular type of hotels in Japan and majority of
South East Asia are these are the most affordable and flexible accommodation to
tourists and corporate guests. The side by side capsule hotel is expected to remain
dominant over separate hotels throughout and beyond the forecast period from 2018 –
2026.

LIFE CYCLE OF THE BUSINESS

Considering capsule business itself exclusive of hotel service as a whole, according to

the analysis capsule hotels is a new industry in india. External environment analysis and
similar industry analysis through literature review shows that the capsule hotel industry
has a great opportunity and a large market. With new product designing and service
provider, good operation system, effective marketing strategy and sales strategy,
capsule hotel can be made into a customer a friendly and successful business.

MAJOR PLAYERS

1. Qubestay Airport Capsule Hotel & Hostel

 2. Urban pod
3. Bedspace- Capsule AC Hotel
4. Hotel Orchid Inn (male only)

URBANPOD –

URBANPOD Next Generation Smart Hotel caters to both your business and leisure
needs. The first of its kind in India, it is conveniently located near the Domestic and
International Mumbai Airports & Chakala Metro Station. With its futuristic Concept and
catering to the new-age travelers, business & leisure, Urbanpod is modern, stylish &
minimalistic. It offers good-value without compromising on comfort, quality & feel while
offering a unique experience. The Pod design makes it a great place to network!
Urbanpod is the brainchild of young entrepreneurs who share common passion &
values - that of doing things differently, creating something new & innovative that 'adds
value' to the customers and the society at large. Urbanpod aims to fill the gap in the
hospitality industry by offering a unique Product that provides an alternate, practical &
SMART-accommodation (good value-for-money) without compromising on quality,
safety, comfort

QUBESTAY –

Qubestay Airport Capsule Hotel & Hostel is India's first budget capsule hotel. It consists
of capsule model independent cabins and hostel type bunk beds. Hotel consists of fully
air conditioned single bed business class capsules, 4 bed first class capsules, 6 bed
first class capsules and 10 bed economic class bunk beds.

Property is situated near to Mumbai International & Domestic Airports, in Mumbai

suburbs. Public transportation like metro and local trains are available within close
range, very near to sakinaka metro station.

BEDSPACE

Featuring free WiFi, bedspace offers accommodation in Mangalore, 2.3 km from

Gokarnanatheshwara Temple. Located around 2.4 km from Mangala Devi Temple, the
hostel is also 3.5 km away from Kadri Manjunath Temple. The tour desk is available to
assist guests in planning their days out. All guest rooms in the hostel are equipped with
a flat-screen TV with satellite channels. The rooms at bedspace include air conditioning
and a desk. Speaking English, Hindi and Kannada at the 24-hour front desk, staff will be
happy to provide guests with practical guidance on the area. Mangalore International
Airport is 17 km from the property.

HOTEL ORCHID INN ( MALES ONLY )

Offering free WiFi, Hotel Orchid Inn (male only) offers accommodations in Kolkata, 1.7
miles from New Market and 1.9 miles from Eden Gardens. The property is located 2.8
miles from Victoria Memorial, 3 miles from Indian Museum and 3.4 miles from Nandan.
The property has a 24-hour front desk and room service for guests. At the capsule hotel
rooms are equipped with air conditioning and a flat-screen TV. Guests at Hotel Orchid
Inn (male only) can enjoy a vegetarian breakfast. The nearest airport is Netaji Subhash
Chandra Bose International Airport, 9 miles from the accommodation.

INTRODUCTION / UNDERSTANDING of the CUSTOMERS

ANALYSIS ON :

Feasibility of the business

Customer profiling

1. analysis on the feasibility of this business

1. FEASIBILITY Extrapolation
ANALYSIS frequency % Final result
Definitely Yes 13 100% 13
 Probably Yes 23 75% 17.25
May be, may be
not 15 50% 7.5
Probably No 4 25% 1
Definitely No 2 0% 0
38.75

= 38.75 / 55 = 70.45%

Since, the value is above 66% therefore, it clears the feasibility test. Thus, the Capsule
Hotel is Definitely feasible in Mumbai.

2. Consumer profiling analysis

ON THE BASIS OF GENDER

Preference Female Male Grand Total

Definitely No 0 1 1
Definitely Yes 6 7 13
May be, may be
not 8 7 15
Probably No 0 4 4
Probably Yes 14 8 22
Grand Total 28 27 55

Calculation Female Male

Probably Yes 14 8
Conversion rate 75% 75%
Converted
Customers into
definitely Yes 11 6
 It can be observed that 17 females out of 28 (60.7%) and 13 males out of 27 (48.14%)
out of our sample size 55 respondents, are the customers which can be targeted.
Therefore, females are inclined towards definitely yes.

ON THE BASIS OF AGE

Preference 15 - 20 21 - 25 26 - 30 31 - 35 36 - 40 41 - 45 46 - 50 51 - 55
Definitely No 0 1 0 0 0 0 0 0
Definitely Yes 1 8 2 1 0 0 0 0
May be, may be no 1 7 4 2 0 1 0 0
Probably No 0 4 0 0 0 0 0 0
Probably Yes 0 17 3 1 0 0 0 1
ably Yes, Definitel 0 1 0 0 0 0 0 0
Grand Total 2 38 9 4 0 1 0 1

Calculation 15 - 20 21 - 25 26 - 30 31 - 35 36 - 40 41 - 45 46 - 50 51 - 55
Probably Yes 0 17 3 1 0 0 0 1

Conversion rate 75% 75% 75% 75% 75% 75% 75% 75%
Converted
Customers into
definitely Yes 0 13 2 1 0 0 0 1

It can be observed that respondents within the age group of 21 - 25 ( 21 respondents

out of 55 i.e. 38% ) are the customer segment to be targeted on.

ON THE BASIS OF OCCUPATION

 Professiona
Preference Business Homemaker l Student Grand Total
Definitely No 1 1
Definitely Yes 1 7 5 13
May be, may be
not 4 1 3 7 15
Probably No 1 2 1 4
Probably Yes 2 1 10 9 22
Grand Total 8 2 22 23 55

Calculation Business Home Maker Professional Student

Probably Yes 2 1 10 9
Conversion rate 75% 75% 75% 75%
Converted
Customers into
definitely Yes 1.5 0.75 7.5 6.75

It can be observed that 15 out of 22 professionals (68.1%) and 12 out of 23 students

(52.1%) are the customers which can be definitely tapped. Therefore, professionals are
definitely inclined yes.
ON THE BASIS OF OCCUPATION

Less than More than Rs. Rs.

Rs. Rs. No source 2,50,000- 5,00,000- Grand
Preference 2,50,000 10,00,000 of income 5,00,000 10,00,000 Total
Definitely No 1 1
Definitely Yes 1 5 4 2 12
May be, may
be not 1 2 8 3 2 16
Probably No 1 1 2 4
Probably Yes 2 1 7 6 6 22
Grand Total 4 5 21 13 12 55

More than Rs.

Less than Rs. No source of 2,50,000- Rs. 5,00,000-
Calculation Rs. 2,50,000 10,00,000 income 5,00,000 10,00,000
Probably Yes 2 1 7 6 6
Conversion rate 75% 75% 75% 75% 75%
Converted
Customers into
definitely Yes 1.5 0.75 5.25 4.5 4.5

It can be observed that 2 sets of income groups i.e. no source of income and
2,50,000-5,00,000 are the customers which can be definitely tapped. 10 out of 21
people (47.6%) who are dependent/ with no source of income and 9 out of 13 people
(69.2%) earning between Rs. 2,50,000-5,00,000 are inclined towards definitely yes.
OVERALL SUMMARY OF ANALYSIS OVER DEMOGRAPHICS :

OUR TARGET CUSTOMER PROFILING ARE :

With a business feasibility of 70.45% , the profile of our customers as per our pilot
survey with the sample size of 55 respondents our customer profile in terms of
demographics comprises of :

● earning between Rs. 2,50,000-5,00,000

● Age group - 21 to 25
● professionals are inclined definitely yes.
● females are inclined towards definitely yes.

SWOT

3C

Company

Machine

1. A/c
2. Generator
3. Laundry machines
4. TV
5. Cleaning Appliances
6. Kitchen Appliances
7. Spa Equipments
8. Computer/SAP Setup
Method

1. Online Booking
2. Customer service
3. Hourly stay facilities
4. Payment processing

Money

1. Initial investment
2. Profit

Material

1. Furnishing
2. Technological setup
3. Material for amenities
4. Toiletries

Manpower

1. Front end & back end

2. Housekeeping/Helpers
3. Masseuse
4. Managers/Executors/Supervisors
5. Electricians/Plumbers
6. Maintenance
7. Customer services
8. Chef and helpers

Consumer

1. Underemployed workers
2. Frequent travellers who are looking for cheap options to stay
 3. Young couples
4. People who do not have a place to stay.
5. Families
6. Tourists
7. Delegates
8. People who need a stay in emergency cases.

Competitor

1. Urbanpod
a. Very first to Bring in the concept of sleeping pods for budget travellers
b. Mix travelling on a budget with futuristic design and expensive real estate
c. Separate stay facilities for ladies
d. Location - busiest part of the city ( near airport)
e. Urbanpod considers hygiene and discipline as its biggest USP
f. These pods also have a locking system.

Qubestay

a. Designs based on an Indian culture adapts to a perfect Indian needs.

b. Meets both budget and luxury under one roof.
c. Targets business travellers, students, backpacker’s and digital nomads
where they provide nice cozy bed space and full privacy.

Competitor Analysis
Supplier

1. Equipment (furniture, fixtures, equipments, furnishings, toiletries, display support,

hotel fragrance system, cooking stations,
2. Services (catering, transportation, customer services, advertising,
3. Technology (software system, electrical system,
4. Design (contract flooring planning, signages, interior designing
5. Contractors (construction, food suppliers, maintenance/ security services

Intermediaries

Financial intermediaries ( bank and financial institutions)

Marketing intermediaries ( market analyst, advertising consultancies, bloggers, PR

agencies)

Retailing intermediaries ( booking applications- make my trip, etc, travel agencies-

thomas cook, etc, private brokers)
Public

Stakeholders

Unions

Social publicists

Media

Social activity (placing dust bins in the radius of 1 km- advances in 5S strategy)

PESTEL

POLITICAL

ENVIRONMENTAL

SOCIAL

TECHNOLOGICAL

ECONOMICAL

LEGAL

POLITICAL FACTORS:

1. Hotel services and management come under Ministry of Tourism

They contribute to the overall tourism experience through the standards of

facilities and services offered by them. With the aim of providing
contemporary standards of facilities and services available in the hotels,
support from these bodies to create further awareness, promotion,
expansion and also to improve household penetration
LEGAL FACTORS:

Issues in licensing from the hospitality bodies of India:

1. HRACC - ​Hotel & Restaurant Approval & Classification Committee (​HRACC​)

2. HOSPITALITY DEVELOPMENT AND PROMOTIONAL BOARD

ENVIRONMENTAL FACTORS:

Environmental factors have a direct impact on the hotel industry.Most of the

environmental factors which affect the hotel industry are severe weather conditions
and natural calamities like floods, earthquakes, storms etc. ​Sustainability is a key
concern too. The focus has now shifted to ecotourism. From managing ecological
impact to waste management, all these concerns are important .

ECONOMIC FACTORS

Economic factors have remained a major factor behind the high demand in the Hotel
industry globally in 2018. The labor market has continued to grow stronger and with
it consumer spending. Not just this, disposable personal income as well as average
hourly incomes have also risen in India. So, overall these are positive signs for the
hospitality industry. The economic situation is a signal that the industry will continue
to flourish in 2020. Inflation and changes in tax rates also affect the hotel industry.
Because of the implementation of GST, there has been a problem of availability of
working capital also.

SWOT ANALYSIS - summarization

STRENGTH

1. Advance technology
2. Affordable price
3. Hygienic environment
4. Amenities

WEAKNESS

1. Lower spaced rooms

2. Awareness among people
 3. Difficulty in household penetration

OPPORTUNITIES

1. Expansion of business in future by increasing branches in various locations and

cities
2. Growing market demand for pod hotels.
3. Most preferred stay among students and travellers

THREATS

1. Competition by existing competitors.

2. Big hotel chains (ITC, Radisson, etc) might enter this business.

CUSTOMER EXPERIENCE

Clicking their photograph in the pod and giving them, will help in our promotion also.

OBJECTIVE OF THE QUESTIONNAIRE:

To understand the feasibility of the business

To analyse the customers requirements ( amenities ) to make the business more
profitable
To the study our target customer segment
To study the overall customer behaviour towards renting out rooms
To identify the feasibility of various services to improve customer experience.

20 slides

Slide 1: Cover slide

Slide 2-3 : Identification and understanding of Product/service

Slide 4-5: Identification and understanding of Industry

Slide 6-7: Identification and understanding of Customers and consumer buying

behaviour

Slide 8: SWOT

Slide 9-11: Identification for the store: Brand/Vision / Mission / Objectives / Policy/

Slide 12-15: Marketing Plan (Merchandise mix, price, place, promotion, people,
process, physical environment)

Slide 16-20: Sales strategies

I. Identification for the store:

Brand

Brand Name: SleepBox

Tagline: Simple made perfect!

Logo:

“Hospitality brands often opt for classic ​colors like black, gold, and blue to create a
mature, trustworthy and sophisticated impression on potential customers.
SleepBox caters to both your business and leisure needs. The first of its kind in India, it
is conveniently located near the Domestic and International Mumbai Airports & Bandra
Kurla Complex (BKC). With its futuristic Concept and catering to the new-age travelers,
business & leisure, SleepBox is modern, stylish & minimalistic.

It offers good-value without compromising on comfort, quality & feel while offering a
unique experience! What more? The Pod design makes it a great place to network!
SleepBox is the brainchild of young entrepreneurs who share common passion & values
- that of doing things differently.

Vision

To develop SleepBox’s Position as one of India's most valuable corporations

through world class performance, creating growing value for the Indian economy.
20 years down the line, we see ourselves as the premier leader in the low-budget
hotel industry/ capsule hotel.

The ideology of our vision is to continue to apply and set the highest standards of
service quality and in that way justify and uphold the reputation that we will have among
the guests, partners, competitors and the wider community. We use and constantly
introduce ​eco-friendly practices ​and processes in order to remain in balance with
nature and also meet the needs of contemporary society. ​Tradition is a testament to our
success but in the future we also want to embrace the changes that modern time brings
and become more attractive in the market and more interesting to our guests and
partners.
The hotel strives to use ​eco-friendly practices in its day to day functioning. The
concept of shared bathrooms and rest-rooms is one such example. Shared bathrooms
allow for more water conservation. Also, leaving the shoes outside pods prevents the
dirt and pests from entering the pods, thereby reducing the need for unwanted use of
housekeeping cleaning agents consequently reducing the costs as well. The compact
spacing allows for saving the fuel and electricity which takes this hotel a step further
from orthodox hotels.

Mission

Our mission is to target business professionals, frequent travellers and students

looking for budget friendly alternatives. Our short term goal is to have successful
branches in Mumbai with a scope of expansion in other metro cities.

Through authenticity and innovation, we create unique memorable experiences. Our

aim is to make the capsule rooms a place for encounters, business success, pleasant
meetings and spontaneity.

Objectives

The main ​objective of capsule hotels is providing ​cheap ​accommodation for

clients who do not need all the services offered by more conventional, star-rated
hotels​.

● Marketing: Increasing sales turnover and market share in the hotel industry.
● Financial: Increase in footfall and maximization of profit by providing budget
friendly accommodation and other amenities.
● Social: Providing employment and planting 200 dustbins around all our branches
as our CSR activity.
● Personal: Recognition of “SleepBox” as the best accommodation option for
businessmen, travellers and students.

Policy
Terms and conditions (T&C)
These Terms and Conditions set out the basis on which SleepBox will provide
accommodation and other products and services at its hotel to Customers and guests .
By making a Booking the Customer agrees to comply with these Conditions.

● Confirmation
The contract shall come into force upon SleepBox acceptance of the customer’s
application. At its discretion, the hotel may confirm the room reservation in writing.
The parties to the contract are SleepBox and the customer. If a third party placed the
order on behalf of the customer, then that party shall be liable instead of SleepBox for
all obligations arising from the hotel accommodation contract as joint and several
debtors together with the customer, insofar as the hotel has a corresponding statement
by the third party.
There is no capacity for extra beds in the capsules. There is only one Person per
capsule allowed.

● Booking
SleepBox will use its reasonable endeavours to accommodate any request from the
Customer to change the Booking Details but any request to change the dates or length
of stay or add products and/or services will be subject to availability and the Customer
paying for such increased length of stay and/or products and/or services at SleepBox`s
standard rates from time to time.
When booking capsules in a shared room, SleepBox will attempt to put people on the
same booking in the same room, however this cannot be guaranteed.
The maximal duration of stay is 14 days at a stretch, SleepBox may extend this

● Cancellation Policies
The Customer may cancel the Booking without charge if notice is given to SleepBox at
least 72 hours prior to 12.00 AM (local time) on the Arrival Date. In which case
SleepBox will refund to the Customer all sums paid by the Customer in advance.
Where the Customer has been offered a discounted rate on condition that the Booking
becomes non-refundable upon cancellation then, provided the Customer has been
informed of such Condition, in the event of cancellation of the Booking, all Charges
applicable to that Booking remain payable in full.
Where the Customer fails to give sufficient notice of cancellation or fails to arrive (no
show) at the Hostel, the Booking will be deemed cancelled and the Customer must pay
the Hostel the full amount of the whole booking.
SleepBox may at any time cancel a Booking if the Hotel becomes unavailable due to
circumstances outside SleepBox`s control in which case SleepBox will pay the
Customer a full refund of any Charges and any booking fee paid.

● Payments
Payment can only be made by credit card when booking. You will be charged 100% of
the total amount. If you choose a Non-Refundable price you will be charged 100% of the
total amount. All reservations will be charged in local currency INR and based on the
international exchange rate at the time of booking.
Supplements are not calculated automatically in the total costs and will have to be paid
for separately during your stay.

● Check in and Check out

Check-in time at the Hotel booked is from 12 PM. Check-in prior to 12 PM may be
available by prior arrangement with an additional charge and subject to availability.
Check-out time at the Hotel booked is 2:00 PM. Later check-out times may be possible
by prior arrangement with an additional charge and subject to availability. In the
absence of such prior arrangement, failure to check-out by 2;00 PM may result in the
Customer being charged for an additional night’s accommodation at the standard
applicable rate.

● Damage clause
By clicking the box which signifies that you accept SleepBox`s terms and conditions,
you acknowledge and accept responsibility for any damage caused to SleepBox by you,
other members of your party, or anyone invited to SleepBox by you or anyone in your
party. Further, you hereby authorize SleepBox to charge your credit card (the same
credit card that is used to secure this reservation) for the entire amount required to
restore the damaged area back to the condition it was prior to your arrival.

● Effectiveness
The invalidity of one or more provisions, the validity of the remaining provisions shall not
be affect-ed. The invalid provision shall be replaced by a content closest regulation.

Product

● Pod booking: Classic Pod, Suite Pod, Ladies Pod

● Wi-fi
● Spa and Massage
 ● Restaurants & bar
● Laundry & cleaning
● Parking facilities
● Physiological Satisfactions – comfortable bed, warm and subdued environment. 
● Economic Satisfactions – good value for money, rapid service, convenient location, and 
credit facilities. 
● Social Satisfactions – enjoyable company, attentive service  
● Psychological Satisfactions – enhancement of self-esteem, status and security.

Price

Strategy used: Competitive pricing- the prices are kept on the basis of the prices of
competitors.

Pod Variations Per hour basis Per day basis

Classic Pod 149/- 799/-

Suite Pod 299/- 1499/-

Ladies Pod 199/- 899/-

Room rates can be defined based on the below seasons :

1. PEAK SEASON/IN SEASON- ​This is the period when demand for a hotel and its services is highest and
the hotel can ​charge​ the highest prices to the guest.

2. VALLEY SEASON/OFF SEASON- time of the year where there is low demand for rooms. Can work
things out by provisions on ​package deals​.

3. SHOULDER SEASON- ​This period falls between peak season and off season, And this time is considered
as the best time to attract new business as the rooms are available and a medium or highest rates can be
charged.
Place

Mumbai, Maharashtra

Mumbai is the largest metropolitan city in India. It is densely populated and a financial
powerhouse. It is one of the most expensive cities in India to live and work in. The city
has a lot to offer, all you need to do is explore, and you’ll find out about its beautiful
temples, one of a kind bazaar, hippie scene, mouth-watering restaurants and its
dynamic nightlife.

● BKC (Business hub)

We chose Bandra Kurla Complex because it is a business and residential district

in Bandra, Mumbai. It is a prominent commercial hub in India.

● Near the airport: Andheri

Andheri is a locality in the western part of the city of Mumbai in India.

Promotion

● Flyers near the airport and BKC

● Social media (Facebook, Twitter, Instagram)
● Media mix (Newspaper, radio, television, websites, mails)
● Public relations (Dustbins)
● Customers (word of mouth)
● Travel assistants / hotel directories
● Concept promotion
● Brand ambassador
● Initial discount and gold membership

Direct methods

● Sales through the hotel sales team

● Personal telephone calls
● Online pay per click or Banner Advertisements (Google ​ads​, Facebook ads
etc.)
● Printed media Advertisements
● Other Media Advertisements
 ● Hotel ​Website Booking​ System (WBS)
● Global distribution system​ (​GDS​)
Indirect methods

● Travel Agents
● Independent Travel agents
● Event Planners
● Online Travel Agents​ (Expeida, booking.com, Agoda etc.)
● Online Travel portals ( Trip Advisor, HotelIQ etc.)
● Independent ​hotel representative​.
****

People

PEOPLE refer to the customers, employees, management and everybody else involved
in it. The people involved are-

● Receptionist
● Security
● Chef & helpers
● Cleaners
● Front end & back end
● Housekeeping/Helpers
● Managers/Executors/Supervisors
● Electricians/Plumbers
● Maintenance
● Customer services
● Waiters

Process

The procedure to stay at SleepBox may seem intimidating at first, but it is essentially the
same at most capsule hotels and only differs slightly from other types of
accommodations​ in India. It typically goes as follows:

● Guest booking
● Check in
● Stay in hotel
● Consuming services
 ● Payment
● Checkout

Physical evidence

● Capsule hotel lobby

● Phone
● Soothing & relaxing music
● Restaurant
● Before & after sale service

Marketing Plan

Our marketing should largely revolve around:

● Spreading a brand message
● Adopting a unique voice
● Making contact with your key target markets
● Being active on social media to build an audience
● Having an email marketing strategy
● Utilising a search engine optimisation strategy
● Being mobile friendly
● Improvisions with better customer experience

Marketing Plan for our service - future follow up measures

An effective ​marketing ​plan for ​hotel can take a number of ways, below are some of the
key steps in a ​marketing plan​.

1. Conducting Marketing Audit.

2. Identifying Market segments.
3. Marketing objectives and medium.
 4. Analyzing and evaluating the marketing plan.

Conducting Marketing Audit:

Marketing audit is considered as the foundation in any hotel marketing plan. It mainly
consists of three core parts such as 1) Property Analysis, 2) Compset or Competition
Analysis and 3) Market place analysis.

Property Analysis helps to identify the strengths and weaknesses of your hotel. A check
list is made by the sales team which consists of the strengths and weakness of revenue
generating and non-revenue generating areas. The checklist should also consider the
location, brand value and reputation of the hotel.

Competition Analysis helps to ​position your property and also to identify profitable
market segments like Groups, ​FIT​, Corporate etc. with your hotel and competitors.

Market place analysis helps the hotel to establish hotels current position in the market
and also to identify the potential opportunity to promote the hotel.

Identifying Target Market Segments:

Sales team should not concentrate on one ​single market segment, because a hotel is a
series of business which caters to different markets. Eg: ​Guests rooms are primarily
sold to business customers during weekdays but the same rooms can be also in
demand to leisure guests during weekend.

The key point is to identify the most profitable and satisfiyable market segments and
then target on the same. The best way to identify the correct ​marketing mix for the hotel
is to prepare a ​marketing mix chart​.

Establish objectives and Marketing Plans:

Once the marketing objectives are completed the next step is to define specific
marketing objectives. Marketing objectives must be easily understandable, realistic,
challenging and also measurable.

Identify the best mediums to reach the targeted market segments eg: Online
promotions​, Social media, Billboards, direct sales calls etc.
Clear marketing budgets to be defined for advertising, consulting and promotional
expenses.

Monitor Analyse and Evaluate:

The Marketing plans need to be reviews periodically so that if required corrective

measures can be taken immediately. These data also helps future marketing activities
and programs.

Control is and essential part of any marketing cycle, periodic evaluation should be
designed into the plan. This will help to ​reduce the cost by stopping non productive
marketing efforts or channels.

II. Sales strategies

Things that can really help drive sales include:

● Videos
● Amazing visual advertisements
● Well-crafted copy
● Celebrated feedback
● User-generated content (driven by great experiences)
● Value-rich offers
● Unique selling points
● Let people take virtual tours of your hotel
● Use fresh, interesting, content to answer travellers’ questions
● Keep your website updated with local events
● Have conversations with followers on social media
● Link with local businesses to create lucrative partnerships
● Let guests sell more you with reviews and user generated content
● Go behind the scenes to humanise your brand
● Connect with influencers

AFFILIATION WITH BOOKING SITES.

Hotel direct sales strategy

With this sales strategy, the priority is to earn ​direct bookings online from as many
guests as possible. Direct bookings are the most beneficial booking for hotel operators
because these bookings generate the most revenue. There are no agents or other
distribution partners that must be paid a commission when a guest books directly online.
In order to implement a direct booking strategy, hotel managers should invest in an
online booking system that syncs with their existing ​website and property management
system. Hotel operators should also prioritise their social media strategy when focusing
on increasing direct bookings.

Guest rewards sales strategy

Many travellers today, particularly the powerful millennial generation, value the
opportunity to earn rewards with the companies that they do business with. Hotels, in
particular, have great success with rewards programs. In a guest rewards sales
strategy, the manager or operator should develop a system that rewards guests for
staying frequently, for purchasing upgrades, and for referring friends and family
members. A rewards sales strategy often generates repeat bookings, which are
particularly lucrative for hotel operators.

Hotel group sales strategy - tie up with travel / destination tour planners 

This strategy may require an overhaul of your normal marketing and sales approach.
The idea is to sell rooms to large group of travellers involved; The most cost effective
way to secure group bookings is by connecting directly to planners. We can list the
property on venue marketplaces where planners can view floorplans, photos, and
unique differentiators. It’s also important to segment your target audience so you can
make compelling offers to the right kind of groups for your property.
 
Partnership promotions with IRCTC 
Combining with other businesses will reduce the cost of promotion and marketing, and
give you wider coverage as long as your partner holds up their end of the bargain. And
with future collaboration with one of the biggest organizations like IRCTC can improve
the household penetration and foot fall for our service. 

Other room selling techniques in hotels

Large, overarching, strategies are vital to drive a consistent level of business at your hotel but
there are other smaller tactics you can use to sell your rooms or generate more revenue from each
guest:

● Upselling – Upselling is the process of selling a more expensive version of the service or
product your customer is buying. The methods you use to upsell need to be handled with
a degree of delicacy. The timing, tone, and regularity with which you upsell is the key to
the success of your efforts. You don’t want to seem pushy so treat it as an exercise in
awareness rather than a sales pitch. Make sure guests know what options are available to
them but let them initiate any further interest.
● Remarketing –​ Remarketing allows you to reach out to potential guests who have visited
your site without finalising their booking. Many travellers will visit a variety of different
websites to explore their options during the research phase of their online booking
journey. With re-marketing strategies, you can access these customers again at different
points during their online booking experience and remind them to visit your site again to
book with you.
● Incentives or cross-selling –​ Cross-selling is the process of selling an additional,
supplementary product or service to complement the product or service your customer is
buying. Offering incentives in the form of additional products or services may just be the
thing that gets your guest to confirm a booking. Think added-value items like a free
massage, or a local tour.
 ● Build local partnerships –​ Unless your hotel is located in a remote or isolated
destination, there should be plenty of other businesses and attractions you can form a
mutually beneficial partnership with. Co-promoting with restaurants, specialty shops like
ski hire, adventure companies, theme parks, or museums can help lead to easy and
effective marketing. And these kind of partnerships can work no matter how the guest is
planning their trip – be it to book accommodation first, or create their itinerary before
looking for a hotel.

● Make booking easy on your website –​ The importance of a good website experience for
travellers can’t be overstated. Nothing will drain their excitement quicker than a slow,
confusing, or convoluted website. Make sure yours is clean, intuitive, mobile-friendly,
and has clear action buttons such as ‘book now’ for potential guests to click. When direct
bookings are so valuable, your website has to be a priority.
● Collaboration / offer plan with renown online booking service providers (eg:- oyo /
trivago / makemytrip / IRCTC - future prospect )

Tools of consumer behaviour

TRI- COMPONENT ATTITUDE MODEL

1. Cognitive

Our advertisement will reach the target audience through the following
sources: ​TV, social media, mobile phones & billboards involved in their
day today activities.

Our brand image created: ‘easily available and affordable’. The tagline of
our brand is ‘Simple made Perfect!’ through which we can connect with
our audience

2. Conative

Consumers find the purpose of the SleepBox more of a necessity due to

the unforeseen situations. Generally, the customers who are trying to find
a cheaper alternative to the hotel room bend towards SleepBox.

3. Affective

Our brand SleepBox aims to connect with the consumers by providing

them with essential amenities like laundry, spa and massage. Our aim is
 to make them feel at home with a safe environment. Moreover, all of this
will be provided at affordable prices.

MULTI ATTRIBUTE ATTITUDE MODEL

● OBJECT MODEL
1. Low Price
2. Comfort
3. Location
4. Accessibility
5. Privacy
6. Convenient
7. Confined Space
8. Cheap replacement for hotel rooms

● BEHAVIOUR MODEL
1. Easy Availability
2. Affordable
3. Safety
4. Address to every class of population
5. Booked in emergency & immediate situations

● REASONED ACTION MODEL

4. Cognitive

Sources: ​TV, internet, mobile phones & billboards involved in their day
today activities.

Our brand image created: ‘easily available and affordable’.

5. Conative

Consumers find the purpose of the SleepBox more of a necessity due to

the unforeseen situations.

6. Affective

Our brand SleepBox aims to connect with the consumers by providing

them with a homely and safe environment at affordable prices.
Key takeaways

● Our capsule room sales strategies should reflect your commitment to the guest
experience while emphasising the importance of booking as many rooms as
possible.
● Even during the slow travel season you need to implement sales strategies that
will improve business and continually bring in more guests.
● Essential sales strategies are: group bookings, direct bookings, destination
marketing, cross promotional sales, guest rewards strategies, revenue
management strategies.
● Other room selling techniques might include upselling, cross-selling, packages,
promotions, re-marketing, and local partnerships.
● There’s no right or wrong sales idea before you’ve seen the results. Getting
creative means you have to experiment and take actions you haven’t taken
before.
● Our capsule sales tools include anything that enable you to bring a guest into
your hotel.
● Three key pieces of software that could help you are a channel manager, online
booking engine, and website builder.
CB in Hospitality business

Hospitality is a unique industry providing a range of substantial products as well as insubstantial

services, for example accommodation, atmosphere, food and drink and spa service. Thus,
consumer behaviour is predominantly complicated and significant towards the hotel industry.
Prominently, the hotel industry is highlighted on customer experience and customer experience
to a great extent straight influence customers’ feelings, attitudes, and buying intentions.

Changes in the macro environment in terms of technology, economic situation, cultural and
generational differences, political uncertainty, etc. cause shifts in the hotel industry cycle.

Nowadays consumer segment is interested in utilizing technology to do things that many others
have become adopted to doing manually:checking in at hotels, make up their restaurant and bar
bills and looking up places to eat, shop and play to name a few.

Innovative technology -New Trends in the Hospitality Sector

Online travel agencies (OTA’S)

Real time marketing

INTRODUCTION

Customer experiences have attracted considerable attention in recent years. Creating and
managing experiences are still amongst major challenges for the tourism and hospitality industry.
The Indian tourism and hospitality industry has emerged as one of the key drivers of growth and
is one of the largest segments under the services sector of the Indian economy. Customer
experience has particular importance to the tourism and hospitality industry because travellers
are highly involved in tourism products and services. It is considered to be one of the important
precursors of customer loyalty and essential for understanding and managing loyalty concepts.
Creating consistent customer experience becomes synonymous with the brand and as a result
drives loyalty. In the hospitality industry, the experience of the customers play an important role
in the success of the hotels.

Experiences create a unique value for customers, hard to be imitated by competition and strongly
affect satisfaction, loyalty, and recommendation behaviours of customers (Berry, Carbone &
Haeckel, 2002; Pine & Gilmore, 1999). Despite the vital significance of the customer experience,
scholars like Ali et al. (2014), Johnston and Kong (2011), Verhoef et al. (2009), Frow and Payne
(2007) have mentioned scarce research on customer experience and that too is integrated with
satisfaction and loyalty in the literature. Additionally, a number of scholars highlighted the
importance of memorable experiences in tourist activities. Hospitality industries should deliver a
compelling customer experience and this compelling customer experience is the key driver of
their memories and loyalty. The fact remains that customer experience inuences service
providers as an effective tool for competitive advantage, differentiation, and creates valuable
customer relationships. Providing customers with memorable experiences, and to make them
loyal, is important for achieving success in the highly competitive hospitality market.

Therefore, our aim is to (1) examine the influence of customer experience on memories, (2)
examine the influence of customer experience on loyalty, and (3) investigate the influence of
memories on loyalty in the tourism and hospitality industry, which can contribute towards
deriving a comprehensive framework.

LITERATURE REVIEW

Concept of Customer Experience

The concept of customer experience was first recognized in the mid-1980s when the notion of
consumption experience and hedonic consumption were discussed by Holbrook and Hirschman
(1982) and became popularized in marketing literature by Pine and Gilmore (1998) and Carbone
and Haeckel (1994). Gentile, Spiller, and Noci (2007) stated customer experience originated
from a set of interactions between customer and product, or part of its organization, which
provoked a reaction. They further added that it was strictly a personal experience with
customer’s involvement at different levels including rational, emotional, sensorial, physical, and
emotional. Tourism and hospitality experiences are created through a process of visiting,
learning, and enjoying activities in an environment away from home especially in the hospitality
Industry (Stramboulis & Skayannis, 2003). Experiences are generally internally produced and it
is rightly said that the person creates his/her own experience based on his/her backgrounds,
values, attitudes and beliefs brought to the situation (Knutson et al., 2006). Particularly, in the
tourism and hospitality industry, customers look for various multiple sub environments that can
trigger their memories and emotions and shape their overall experience (Xu & Chan, 2010). For
instance, Hemmington (2007) elucidated that in modern hospitality services, customers looked
for experiences that could cater for their multiple needs simultaneously; such as expecting a
sense of escapism, entertainment whilst desiring a memorable and relaxed experience. Therefore,
this study accepts the operational definition of guest/customer experience in hospitality as
memorable events, which engage customers in an emotional and personal way during their stay
in the hotel and thus influence loyalty. Hence, customer experiences are multidimensional
outcomes that occur in response to some interaction with service providers.
Factors Influencing Customer Experiences in Tourism and Hospitality Industry

1. Esthetics:

The first dimension is esthetic where the customer has a passive participation and
immersion in the experience. It refers to the customer's interpretation of the physical
environment around them (Hosany & Witham, 2010). A number of studies recognize the
role of esthetics in consumer behaviour, decision-making, and service evaluations (Turley
& Milliman, 2000). In tourism and hospitality literature, Bonn et al. (2007) note that the
physical environment of hotel/heritage attractions play an important role in determining
visitors attitudes, future patronage intentions, and willingness to recommend. Luxury
hotels offer their guests rich physical environments and professional service to support
their high prices (Titz, 2007).

2. Entertainment

The second dimension is entertainment, which is developed when passive absorption is observed
by the customer such as watching a theatre performance (Oh, Fiore & Jeong 2007). In essence,
entertainment remains an essential component of the tourism product (Hughes & Benn, 1995),
with some tourist destinations famous for the level, variety, and quality of their entertainment.
Most cruise liners provide a variety of entertainment, such as nightly shows, performances by
comedians, live music bands, and casino-style gaming amongst others. Entertainment schedules
are carefully designed to appeal to various age groups, from young children to senior travellers
(Hosany & Witham, 2010).

3. Loyalty & Memories

 4. Escapism

The fourth and the last dimension is escapism. An escapist experience can be defined as the
extent to which an individual is completely engrossed and absorbed in the activity
(Csikszentmihalyi, 1990). Escapist experiences are highly immersive and require active
participation. Typical examples include theme parks, adventure lands, simulated destinations,
and themed attractions amongst others (Hosany & Witham, 2010). Pine and Gilmore (1998)
identified the rise of motion-simulator rides as the ultimate form of escapist experiences. Hence,
one or more of the above dimensions determine the intensity of the customer experience. Schmitt
(2003) has explored how companies create experiential marketing by having customers sense,
feel, think, act, and relate to a company and its brands. Therefore, the concept of customer
experiences involves not only cognitive evaluations, but also affective elements (Verhoef et al.,
2009). Verhoef et al. (2007) suggest assortment, price and promotions, social environment,
atmosphere, and service interface as determinants of customer experience in a retail
environment. It is obvious that none of the above dimensions are mutually exclusive.

5. Education
Conclusion:
Consumer Behaviour is influenced by three factors Cultural, social and
Personal. Research into all these factors can provide marketers with clues to
reach and serve consumers more effectively. To understand how consumer
actually makes buying decisions marketers must identify who makes and has
influenced the buying decision. Different marketing campaigns might be
targeted to each type of person. The typical buying process consists of the
sequence of events that is problem reorganization, information search, and
evaluation of alternatives, purchase decision and post purchase behaviour.
The marketer job is to understand the behaviour at every stage. The attitude
of others and other unanticipated situational factors also affects the decision
to buy. As will consumers level of post purchase product satisfaction.
Towards the end we can say that consumers are constructive decision makers
and are subjective to many descent developments and change in technology.

CONSUMER BEHAVIOUR - STRATEGIES OF ATTITUDE

CHANGE

1.​ ​Changing the Basic Motivational Function

· Offer the best booking and check-in experience. First impressions last.

· Know your audience. Knowing who your customers are is the first step in
knowing how to talk to them

· Personalize the experience.

· Be savvy on social media.

· Focus on service.

· Make training an everyday priority and not just a one-time event

· Take measure of your customer service performance

 · Technology updation

2.​ ​Associating our service with an Admired Group or Event

· Majorly focusing on collaboration with major bodies of travelling agencies

who function with efficient travel plans targeting our location which are
mainly customer oriented.

· Future collaboration with IRCTC business can attract a lot of customers to

achieve a sense of confidence and loyalty growth for our brand.

· Provision of festival / vacation package offers which can be focused mainly

on larger units like families / working organizations etc which can increase the
foot print for our business and a relationship which can be built on a
professional level.

3.​ ​Resolving Two Conflicting Attitudes

To break the barrier between the customer preference over normal hotels and capsule
room services.

· Can be done through convincing customers on the facilities proved will be

as comfortable as the one of a custom room. And more on other factors like :

o​ Ease of stay

o​ Ease of accessibility

o​ Price range variations

o​ Accessibility during any time of day

o​ Hourly basis payment

4.​ ​Altering Components of the Multi-attribute Model

 By working on improving the value of the business in terms of OBJECT, BEHAVIOUR
AND REASONED ACTION.

This can be achieved by tacking the present customers of our niche market and expanding
to the unknown mass through effective household penetration

5.​ ​Changing Beliefs about Competitors’ Brands

· Us entering into the business can be a challenge since there are still a type
of customers who don’t prefer sudden change in the way of living or their
attitude towards the business of capsule rooms, a comparatively small
segment of the hospitality business.

· Our USP mainly focuses on being one step ahead of our main competitors
like Qubestay or Urbanpod.

· We have mainly focused on collaboration with those platforms which are

gives easy access to a wider range of customers. This shows that its not just
about a single unit but a larger entity of a group of organizations

​NEUROMARKETING

LITERATURE REVIEW

APPLICATION OF NEUROMARKETING IN THE HOSPITALITY BUSINESS

More than almost any other industry, travel and hospitality has the ability to create memories and instil
joy that can last a lifetime. Emotions are often charged during travel, with anticipation, excitement, and at
times, anxiety and frustration. Just one experience can create a lifelong memory, with stories recounted
again and again. Of course, the opposite can happen for the traveller who has a trip spoiled due to
unforeseen circumstances or ineffectively managed problems during the time of time of travelling or stay
arrangements with a hotel.
And unlike most purchases, travel often involves an extended period between "purchase" and
"consumption." For many leisure destinations, a booking window of 60-90 days or more is not unusual.
This window is a challenge as the excitement surrounding the purchase comes under attack by daily
realities, distractions, and the inevitable hassles of travel preparation. The stakes in this emotional
tug-of-war can be quite high -- for many hospitality companies, cancellations represent a substantial loss.

The opportunity for Travel and Hospitality marketers is to understand and influence these emotions in a
way that help maximize the guest experience – from planning and booking through departure.

·​ ​What kind of experience are they looking for?

·​ ​Why did they book and what are they hoping to get out of their time away?

·​ ​What will keep them excited and motivated?

·​ ​How can you help make their stay as memorable and fulfilling as possible?

Tailoring customer communications based on these emotional insights can build stronger engagement,
resulting in fewer shopping cart abandonments and cancellations, and greater guest satisfaction, repeat
visits, and word-of-mouth advertising.

We see frequently that consumer decisions and feedback aren't always rational -- many times they are
based on emotions -- and often aren't even fully understood by the customer. Responses to guest
satisfaction surveys, for example, tend to skew high or low, with few "in the middle." Guests are inclined
to complete a survey if they had a particularly good or particularly unfavourable experience, and their
responses generally reflect their overall emotional bias regardless of the nature of the question.

Of course, demonstrated customer behaviour has far more significance to a marketer than customer
surveys or expressed interests on a preference centre. The simple reason is that people often say one thing
and do another. A person may rank price low on the drivers of their travel purchase, but if they always
book a "special deal" promotional package, their demonstrated behaviour is much more relevant to future
marketing communications.
Marketing the Happy
According to Wikipedia, neuromarketing is: … ​A new field of marketing that studies consumers'
sensorimotor, cognitive, and affective response to marketing stimuli.​

Simply put, there are numerous factors that determine why someone responds to certain marketing
messages, makes a decision, and ultimately takes action. One factor that can't be overlooked is emotional
resonance.

We see frequently that consumer decisions and feedback aren't always rational -- many times they are
based on emotions -- and often aren't even fully understood by the customer. ​Responses to guest
satisfaction surveys, for example, tend to skew high or low, with few "in the middle." Guests are
inclined to complete a survey if they had a particularly good or particularly unfavorable
experience, and their responses generally reflect their overall emotional bias regardless of the
nature of the question.

Of course demonstrated customer behavior has far more significance to a marketer than customer surveys
or expressed interests on a preference center. The simple reason is that people often say one thing and do
another. A person may rank price low on the drivers of their travel purchase, but if they always book a
"special deal" promotional package, their demonstrated behavior is much more relevant to future
marketing communications.

Web Analytics and Consumer Emotion

One highly effective way of capturing a consumer's decision-making process and potential motivators is
through advanced web analytics. Many organizations tag each and every page of their website, and extract
volumes of data that enable macro statistical analysis and trending.

Too often however, little if any of this data is associated with an individual web site visitor, or used to
glean insights about that individual. But innovative organizations are now fully embracing an approach
that tracks a consumer's activity on their site: everything from hotel locations, room or suite types, pricing
packages and amenities, and recency and frequency of visits -- then consolidates this information to create
a behaviour profile for the individual guest.
These marketers use this information to create personalized web pages -- and where the guest is
known, personalized email and direct mail --based on the inferred behavioural or motivational
characteristics of that specific guest. It takes personalization – and relevancy-- to a whole new level.

Using this type of insight allows you to extend our personalized, relevant, email messaging to a
personalized, relevant online web experience. Pre-determined business rules (who's looking at what,
exiting from which page and when, abandoning check-out and at what point, etc.) help to determine what
content is most appropriate for each visitor.

This information is also helpful to prevent cancellations​. Each time the identified visitor returns to the
site, one can personalize a reminder of upcoming events near the hotel based on that visitor's
demonstrated interests. Rather than focus on cross-selling and up-selling (which also have their place),
focus on what is likely to keep the customer excited about their upcoming visit. Personalized web
content can also be an effective way to re-engage a guest who previously cancelled – display
packages that she's previously shown interest, or additional packages that are complementary with
those expressed interests.

On another front, behavioural insights derived from web activity are very useful when creating
email campaigns. Knowing which web site visitor clicked on what link, and visited which pages, is
extremely valuable to help create an even more personalized, relevant email dialog. Are they clicking on
travel packages? Then this guest should be flagged in your database as someone interested in golf,
regardless of what they may or may not have told you about their interests. Follow-up communications
can then be selected (or even created) as indicated. On the other hand, are your customers searching for a
vacation for two adults and two children in India? ​A family-focused follow-up email (rather than, say,
a romantic getaway) would be a behavioural-based response that is much more likely to tap that
consumer's emotions.

REVIEW OF CASE STUDY

APPLICATION OF NEUROMARKETING FOR HOSPITALITY BUSINESS

EXPERIMENT BRIEF
A test environment has been established in an environment refined from stimulants without
providing prior information to the subjects. EEG device has been used in this study. Rational and
irrational criteria have been shown to volunteers for ten-second slides. Then volunteers have
been asked to order the first 5 criteria that they saw in the slides in order of their importance
within ten seconds. EEG results will be compared with this ranking and the most important
criteria will be determined for the volunteers. This study was conducted with 15 volunteers from
a random sample of 18- 55 years old people living in Ankara. When the results were analyzed, it
was determined that the volunteers did not only give importance to the rational criteria but also
to their hotel preferences were important in their irrational criteria. Preferences of volunteers
were determined by considering the brain waves using EEG method. sample group was
composed of persons having grown up in different cities, therefore, this can be generalized to the
groups in this age range.

Keywords: Neuroscience, consumer behavior, experimental study, neuro-tourism, hospitality

management.

SUMMARY

In the stage of the experiment, the participants were asked ‘List 5 criteria the most important for
you when you select a hotel enterprise’. The participants were asked to response within 10
seconds. The main themes were categorized based on these answers. Subsequently, sub themes
of these main themes were generated. The most important criterion was price for the selection of
a hotel enterprise according to the participants’ opinions. Price was the most important criterion
according to 14 of the 15 participants. The most important sub theme was promotions in the
price main theme. The most important impressive element for the selection of price was the
promotions of the hotel enterprises according to 9 participants. The second most important
criterion for hotel selection was the service criterion. 13 opinions were provided within this main
theme. 3 criteria were indicated in the service main theme. These criteria were cleanness, healthy
food and smiling personnel or a warm welcome. The most important criterion was the cleanness
of the hotel. The 3rd important criterion was the quality. 11 opinions were received. The most
stated sub theme under this main theme was the suitability for a family. It is inevitable for this
criterion to come into prominence when the structure of Turkish society is considered. The 4th
most important criterion was safety, in other words feeling safe. When the recent events were
considered, this criterion was the most important one for the people. The 5th most important
criterion was comfort. The participants expressed 9 opinions for this criterion. The last most
important criterion was location when the participants considered when selecting a hotel
enterprise.

Figure: The Results of the Analysis Obtained with Nvivo

NOTE :
NVivo is a qualitative data analysis (QDA) computer software package produced by QSR
International. NVivo helps qualitative researchers to organize, analyze and find insights in
unstructured or qualitative data like interviews, open-ended survey responses, journal articles,
social media and web content, where deep levels of analysis on small or large volumes of data
are required. NVivo is used predominantly by academic, government, health and commercial
researchers across a diverse range of fields, including social sciences such as anthropology,
psychology, communication, sociology, as well as fields such as forensics, tourism, criminology
and marketing.

( EEG - Electroencephalogram (EEG in neuromarketing)

The electroencephalogram (EEG) is a very used technique in neuromarketing, and besides being
portable and relatively economical, provides valuable information on brain activity. With this
technique, the brain’s electrical activity is analyzed and registered by a headband or helmet that
has small sensors, which are placed on the scalp. This method detects changes in the electrical
currents of brain waves.

EEGs are usually distinguished by their applications. There are ​versatile EEGs ​that can be
employed in scientific research, characterized by utilizing headgear that resembles a shower cap
with numerous sensors around the head that can be repositioned. And there are EEGs oriented to
a final application, that are comfortable and easy to use, with fewer sensors placed strategically
on areas of the brain that need to be registered.
Table : EEG and Quantitative Comparison of the Results According to the Percentages

When EEG data and oral responses of the participants were compared, the importance rankings
were similar for a hotel enterprise selection. The most important criterion was service according
to EEG measurements, and price was the most important criterion in the oral statements. There
were not significant differences between these statements and EEG results. A small rate of
difference was determined. The 1st most important criterion and 2nd most important criterion
changed places. The importance ranks were almost the same indicated by the persons. The data
are given in the table according to the results. The most important criteria were price and service
for hotel selection. These were the criteria most considered by people for hotel selection. The
safety criterion was included among the most important criteria when the persons were not
restricted in their criteria selections. Experienced social events and perceptions of the people
vary from time to time. Human beings, as social creatures, are affected by variables existing in
their surroundings including economic, political, cultural, etc. Preferences vary as well as a result
of these interactions.
SUGGESTIONS

Business intelligence tools that take potential motivators and consumer behavior into account are
increasingly available -- and are a key tool in many marketers' arsenals.

However, a more comprehensive generalization can be reached by conducting this study in accordance
with social status and other demographic features.

Privacy Please

Organizations that are doing this wisely have several different consumer protection processes in place.

They make it clear that this is not data which will be shared with third parties without the guest's
permission. Every piece of information a website owner collects about a guest should support a simple
goal: to develop offers and services to enhance each guest's stay.

This analysis can be achieved by studying the body language the emotions involved in the feedback of
customers to enhance the efficiency of our business.

APPLICATION OF TOOLS :

1) Eye Tracking: Look through your consumer’s eyes

As the name itself indicates, ​eye-tracking consists in following the eye movement of people
participating in a study. In other words, it is a tool that allows your brand to see through your
potential clients’ eyes, not only in labs, but in real purchasing scenarios as well.
As modern eye-tracking devices are very small and light, the participants in the study can wear them
while entering the area. With this, we can ​answer a series of questions:

·​ How much attention to consumers pay to items promoted near the lobby / entrance?
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· Do clients really read posters and billboards, or do they just glance at them without
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reading?

· How do they distribute their attention during decision making on types of rooms
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available?

· Do they pay attention to the amenities proved and movement within the premises and
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usage of other provisions?

2) Facial coding: a smile is worth a thousand words

neuromarketing converted the art of interpreting facial expressions into somewhat of a science.

Just as we use neuromarketing techniques to measure eye movement and brain activity, this science is

also used to “read faces” with unprecedented precision. The way it works is very simple: when we

smile, display anger or assemble any other kind of facial expression, we use our muscles to do it.

By using sensors, these minute muscle movements can be accurately measured to detect

expressions and emotions we aren't even aware we are feeling.

Of course, a small smile or a grin don't show the absolute truth of what a person is feeling at that given

moment, but facial coding help marketers by reading and interpreting subtle reactions that offer insights

on our opinions. They are sometimes even able to predict the behavior that will follow these expressions.
Real Data Means Real Relevance

What all of this exemplifies is that insights gleaned from thoughtful data analysis can enable us to be far
more relevant with our guest communications. By gathering and analysing this data, and creating a full
view of your guest from multiple touch points, we can gain a more comprehensive sense of individual
wants and desires. That equips us to market more effectively: consistently speaking to guests as
individuals, in a manner that is always focused on enhancing their personal stay experience. In turn, this
investment in relevance pays dividends in terms of satisfied and loyal guests, and ultimately future
promoters and brand advocates. Happy returns indeed.