Hospitality Industry
BY Group 12:
Amrita Singh
Anshuprabha Singh
Manash Verma
Mudit Mathur
Shuvendra Mohanty
Contents…..
Introduction to Hospitality Industry
Major Players
Market Share
8 P’s Marketing for Hospitality Industry
STP for Hospitality Industry
Hospitality Industry
Meaning :
Hospitality is the relationship between guest and
host, or the act or practice of being hospitable.
This includes the reception and entertainment of
guests, visitors, or stranger and other services for
travelers and tourists.
InIndia, hospitality is based on the principle Atithi
Devo Bhava, meaning "the guest is God."
Hospitality Industry
An Introduction…..
Today, travel and tourism has acquired a significant
place both economically and socially all over the
world.
In India, it has been an integral part of Indian
tradition and culture.
In India tourism was recognized as an industry by
1986.
Tourism includes transportation, accommodation,
food, catering, tourist attraction as well as organizers
like tour operators and travel agents.
Hospitality Industry In India
India is one of the biggest Tourism destination
in the world.
43.22 tourists visit India during Jan-Oct 2010.
Foreign exchange earnings from tourism during
January- October 2010 were Rs 51,334 crore
with a growth rate of 21.1%.
Major Players
Public Sector Players:
ITDC
Hotel corporation of India
Private Sector Players:
ITC Hotels
The TAJ Hotels Resorts & Palaces
Oberoi Hotels
Hotel Leela Palace
Radisson Hotels
Segmentation
Luxury Segment:
Top Service
Very Expensive
Top Quality Food
Premium Prices
Example : Oberoi Hotels
Continued…
Upscale Segment:
Expensive but cheap as compared to Luxury
segment
Excellent Service
Low standards as compared to Luxury Hotels
Example- ITC hotels
Moderate segment:
Targeting the upper middle class people.
Competes on price and quality
Reasonable price.
Delecate balancing of cost and quality.
Example- Intercontinental hotels
Budget Segment:
Basiclevel quality
Low price
Middle class people
Example- Ginger hotels by Taj Group
Targeting
Businessmen, CEO & Corporate
Leisure travelers
Foreign tourists
Different income group
Positioning
High end luxury hotels(Positioning by specific
product or service)
Business hotels(Positioning by product class)
Resorts or leisure hotels
Heritage hotels(Positioning by culture)
Budget or low cost hotels(Positioning by price and
quality)
8 P’s OF Marketing….
1. PRODUCT: The products are designed to
meet customer and satisfy customer needs. Can
be intangible or tangible.
Accommodation- Bed, Bedroom etc.
Food & Beverage
Business Services- Conference halls, Business
facilities
Place
Depends upon the type of hotel.
Intermediates can be used to reach the new
customers.
Internet can be used to access the websites of
the hotels.
Price
Based on the customers and service.
Based on the type of hotel.
Seasonal pricing-
1. Peak season
2. Off season
3. Shoulder season
Type of hotel
Value for money
Competition based
Promotion
Personal selling
Print Media
Public Relations
Sponsorship of events
Website design
Physical Evidence
Tangible :
Exterior layout- Building structure, signage
Interior layout- Furniture, Décor
Staff uniform
Logos, Banners
Intangible:
Ambiance
Atmosphere
Process
Processes through consumer buys and consumes the product or
service.
Customer plans a trip
Make booking- online or in personal
Physically goes to a hotel or resort
Checks in
Make a stay and checks out
Experiences he service and the quality offered which is intangible.
People
Customers ( Guests, Tourists, Travellers)
Employees (Extensively labor intensive)
Intermediates- Travel agents, Guides
SWOT Analysis
Strengths:
Wide range and variety of hotels
There are international players in the market such as Taj
and Oberoi & International Chains. Thus, the needs of
the international tourists travellers are met while they are
on a visit to India.
Manpower cost is cheap in India
Wide range of tourist destinations therefore, demand pull
strategy already exists.
Weakness
Capital investment is huge.
The hotel industry in India is heavily staffed. This can
be gauged from the facts that while Indian hotel
companies have a staff to room ratio of 3:1, this ratio
is 1:1for international hotel companies.
High taxes rate
Rooms not sufficient to meet the overall demand.
Services offered are still limited.
Opportunity
Demand between the national and the inbound
tourists can be easily managed due to difference in
the period of holidays. For international tourists
the peak season for arrival is between September
to March when the climatic conditions are suitable.
Big players entering the market so supply can be
increased.
Diversityin types of hotels which gives unique
experience.
Threat
Guest houses replace the hotels. This is a
growing trend in the west and is now catching
up in India also, thus diverting the hotel
traffic.
Directimpact of any political, economic
changes in the world on the tourism industry.
Lackof political in stablity in many states is
hampering the hospitality industry.
