Service sector

management: Hotel
industry
by
Riddhimaan Nandgaonkar
07B431
Shivam Trivedi
07B456
Sneha Meshram
07B465
Naresh Gedala
INTRODUCTION TO HOTEL
INDUSTRY
 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
Introduction
Introduction
 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
• Weakness
– Poor Infrastructure
– Slow Implementation
– Susceptible to political Events
 SWOT

• Opportunities
– Open Sky
– Rising Income

• Threats
– Fluctuation
– Increasing Competition
INTRODUCTION TO ITC
HOTELS
 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 - Pricing

• The hotels are classified under four different

categories for pricing:- (Grand Central,
Parel, Mumbai)
– Luxury - Rs.31500
– Upscale – Rs. 27500
– Mid-market – Rs. 23500
– Budget - Rs.12500
• The restaurants are also divided into such
categories
 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, Hornby’s Pavilion,
Shanghai Club, Dublin, Frederick’s 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 – treatment of guests

• Material attributes – food, toiletries,
complimentary goods etc
• Time management – efficiency in
service
• Communication
• Presentation
CONSUMER PERCEPTION
AND BEHAVIOUR
 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
• Feel good factor
 Consumer behaviour and
perception
Types(Who goes?)
• Business class
• Executives
• Tourists
• Local people using hotels for pleasure
• 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