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MARKETING APPLICATION AND PRACTICES

SERVICE MARKETING
HOTEL INDUSTRY
PRESENTED BY---------VIBHA ARORA SANDEEP KAUR BATH MEGHA BAVISHI MUGDHA BHATT NAINA HINGHER DISHA KACKER VIDHI MALHOTRA 07 11 12 15 32 40 53

SERVICE MARKETING

SERVICE MARKETING
INTRODUCTION TO SERVICE MARKETING
Services marketing is marketing based on relationship and value. It may be used to market a service or a product. 7 Ps Use is inseparable. Services do not possess material form.

INTRODUCTION TO HOTEL INDUSTRY

HOTEL INDUSTRY
Definition A hotel is an establishment that provides paid lodging on a short term basis
A hotel is defined by British law as the place where a bona fide traveler can receive food and shelter, provided he is in a position to pay for it and he is in a fit condition to be received. Hence, a hotel must provide food and shelter and has, in turn, the right to refuse if the traveler is drunk, disorderly, unkempt, or if he is not in a position to pay for the services.

Introduction
Linked to the tourism industry Helps to boost travel & tourism Business Travel is included Demand supply gap in star category hotels Opportunity for investment for Indian and over seas players

CLASSIFICATION

Hotel Industry

Hotels

Restaurants

Catering

Resorts

Clubs

MOTEL
Definition A motel (Motor Hotel) is a hotel which is for a short stay, usually for a night, for motorists on long journeys. It is built conveniently close to major roads and intersections.

DIFFERENCE BETWEEN HOTEL AND MOTEL


Definition Location Restraunts and eating Pricing Facilities Appearance Duration

CLASSIFICATION OF HOTEL
MARKET SEGMENT

Economy / limited services hotels Mid Market Hotels All suite Hotels Time share Hotels Executive Hotels Luxury / Deluxe Hotels

CLASSIFICATION
According to Size Small Hotels (150 rooms) Medium Hotels (up to 299 rooms) Large Hotels (up to 600 rooms) Extra Large Hotels (above 600 rooms)

CLASSIFICATION
Level of Services World Class Services Mid Range Services Economy / Limited Services Hotels

CLASSIFICATION
Ownership and Affiliation Independent Hotel Chain Hotels Franchisee Hotels

CLASSIFICATION
According to Star
One Star (*) Two Star (**) Three Star (***) Four Star (****) Five Star (*****) Five Star Deluxe (*****deluxe)

5 star hotel facilities ITC


24 hour Services : Business Centre Concierge Services Doctor on call Duty Manager

5 star hotel facilities ITC


In-Room Dining Laundry and Pressing 4 Restaurants, a Lounge and a Bar Art Gallery Baby Sitting Service Beauty Salon Boardrooms and Meeting rooms Broadband and Wi-Fi internet access (chargeable)

5 star hotel facilities ITC

Car and Limousine Hire Service Concierge Courier Service Daily Shuttle to South Mumbai Express Laundry Service Florist Foreign Currency Exchange Gymnasium

5 STAR HOTEL FACILITIESITC

In-Room electronic laptop compatible safes International Satellite television channels Night Club Outdoor Parking available Outdoor Swimming pool Power adapters upon request Private Bar ( Mini bar) Shopping Arcade The Spa Tour Guides

Future Potential & Growth


World Tourism Organisation (WTO) - International tourist inflow in India by 2020 would be 10 m Tourist influx to grow at a CAGR of 6.5% for the next 14 yrs Expected share of world tourism: 1.5% by 2010 Untapped domestic tourist potential Commonwealth Games in New Delhi in 2010 Medical Tourism Rural Tourism Wildlife Tourism

Demand Supply Gap

Demand Supply Gap for 2012 1,50,000 rooms


Supply 1,10,000 rooms Demand 2,60,000 rooms

Demand Supply Gap 60,000


Supply - 90,000 rooms Demand 1,50,ooo rooms

Ample scope for Indian and global players to set up new projects

Perceptual brand mapping of Indian hotels

SWOT
Strengths

Diversity Demand-Supply gap Government Support Market Share

SWOT
Opportunities
Open Sky Rising Income

SWOT
Weakness

Poor Infrastructure Slow Implementation Susceptible to political Events

SWOT
Threats
Fluctuation Increasing Competition

INTRODUCTION TO ITC HOTEL

Introduction to ITC hotels


ITC Limited entered the hotels business in 1975 ITC hotels currently owns and operates 100 hotels in 75 destinations India's second largest hotel chain They show our heritage The group today operates under different brands:

ITC Luxury Collection Hotels WelcomHotel Sheraton Hotels Fortune Hotels WelcomHeritage Hotels WelcomeEnviron

ITC Hotel Properties

ITC Hotel Maurya Sheraton & Towers, New Delhi ITC Hotel Grand Maratha Sheraton & Towers, Mumbai ITC Hotel Sonar Bangla Sheraton, Kolkata ITC Hotel Grand Central, Mumbai ITC Hotel Windsor Sheraton & Towers, Bangalore ITC Hotel Kakatiya Sheraton & Towers, Hyderabad ITC Hotel Park Sheraton & Towers , Chennai WelcomHotel Rajputana Palace Sheraton, Jaipur WelcomHotel Chola Sheraton, Chennai WelcomHotel Mughal Sheraton, Agra WelcomHotel, New Delhi WelcomHotel Rama International , Aurangabad WelcomHotel , Vadodara (through associate company) WelcomHotel , New Delhi WelcomHotel Grand Bay, Visakhapatnam

MARKETING MIX

Marketing mix Product(services offered)

Room bookings Eva, business, executives, disabled

Butler service
Wi-Fi internet SPA & Swimming pool Meeting rooms/ Conference rooms/ Board rooms Restaurants & Bars Meetings and Events/ Luxury events

Marketing mix - Promotion


Promotion through FMCG goods Internet Media reports and media releases Concept promotion Customers Social service projects Travel assistants Hotel directories

Marketing mix - People


Receptionists Bell boys Laundry servicemen Butlers Room service Chauffers Managers Cleaners Assistants for guests Chefs Waiters etc

Marketing mix - Place


Strategic Locations Metropolitan cities Business hubs Tourist places Heritage areas Upcoming areas

CAPACITY AND DEMAND

Capacity and demand


Capacity(ITC Grand central, Parel, Mumbai) 242 guest rooms and suites Arranging tours for guests(Around 400 people in a day) 24-hour Butler service for all 242 rooms(optimum capacity 30 rooms at a time) Grand ballroom 400 to 750 guests at a time 5 conference halls 6 restaurants which can cater roughly 430-500 people at a time viz Kebabs and Kurries, Hornbys Pavilion, Shanghai Club, Dublin, Fredericks Lounge and The Point of View.

Capacity and demand

The flow of customers is stable but it dips a bit in the rainy season Generally if the customers exceed the capacity then they are given suggestions to go to other ITC properties If the customers want the same area then other hotels nearby are indirectly suggested(eg. Oberoi trident, Taj, Grand hyatt eyc)

SERVICE QUALITY

Service quality
Hospitality Material attributes food, toiletries, complimentary goods etc Time management efficiency in service Communication Presentation

CONSUMER BEHAVIOUR AND PERCEPTION

CONSUMER BEHAVIOUR AND PERCEPTION


Behaviour(Why customers go?) Disposable money Class/ Status Image of ITC as an excellent brand Luxury expectations References received Personal liking

CONSUMER BEHAVIOUR AND PERCEPTION


Types(Who goes?) Business class Executives Tourists Local people Party goers Study groups Work groups

CONSUMER BEHAVIOUR AND PERCEPTION


Perception(What do consumers expect/feel?) Excellent conditions High class treatment Effective time management Value for money Rise in social status Safety & Security Hygiene

Thank You