HOTEL INDUSTRY-INTRODUCTION

The Hotel Industry originated in the 6th century

B.C. It is one of the oldest endeavor. The earliest inns where just large halls where travelers slept on the floor along with the animals on which they travelled. These conditions prevailed for hundreds of years until the mode of travel changed.

Indian Market Overview

High annual growth rates The Indian hotel industry - Direct beneficiary of the

growth in the economy and the tourism industry Companies moving up the value chain to management contracts and co-branding of properties Reforms in aviation sector have helped fuel growth Increased visibility of India due to business and sporting events

DIFFERENCES FROM OTHER INDUSTRIES

Measure security oriented
Human work force :equipments (Approx 90:10 ) Personal touch with the customers.

Always going extra steps ahead to satisfy customer

demands. Spends a lot to rectify mistakes to all its customers.

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

24 hour Services : Business Centre Concierge Services Doctor on call Duty Manager In-Room Dining Laundry and Pressing

Perceptual brand mapping of Indian hotels

CHALENGES
Internal Intercultural differences (negotiation, foreigners are different) Work standards and ethics (attitude, follow up, time and task

management etc) Infrastructure (roads, traffic) Safety and Security Skilled manpower shortage, quality of final product Planning and execution, (lack of co-ordination, sequence of work) Availability of products and cost associate (need to import materials V. local brands) .

INTRODUCTION TO ITC HOTEL

 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
Welcome Hotel Sheraton Hotels Fortune Hotels Welcome Heritage Hotels

Welcome Environ

7 PS of Service Marketing Mix (Hotel industry)

Product Price Promotion Place People Physical evidence Process

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

Promotion
Promotion through FMCG goods
Internet Media reports and media releases

Concept promotion
Customers Social service projects Travel assistants Hotel directories

People

Receptionists Bell boys Laundry servicemen Butlers

Room service
Managers Cleaners Assistants for guests Chefs Waiters etc

Place
Strategic Locations
Metropolitan cities Business hubs Tourist places Heritage areas

Physical evidence
Hotel lobby
Phone Nice music Restaurant Before &after sale service

Price

The prices are being charged according to facilities. The charges vary from Hotel to hotel. Pricing is the only mix which generates a turnover for the organization.

Process
Service process is the way in which a service is

delivered to the end customer.

Guest booking Check in Stay in hotel Consuming services Payment Check out

SERVICE DEPARTMENTS
MAJOR REVENUE PRODUCING DEPARTMENTS ROOM DIVISION : (a)Front Office (b)Reservation (c)House keeping (d)Uniform (e)Telephone

FRONT OFFICE
The Front office department in a hotel is

responsible for the room sale through systematic way of reservation followed by registration and assigning rooms to the guest.
Revenue collected from the room sales constitutes

to 70 of the total sales of the hotel.

 Thus the role of Front Office is to reserve

receive register assign room to guest and act as a continuous source of Information to the guest during their stay in the hotel. Image Building
Room tariff

FOOD & BEVERAGE

F&B Department constitutes the second largest revenue generator

of a typical hotel with an average of 23.1 for Food sales, and 8.6 % for Beverage sales. In a five-star hotel, Food and Beverage outlets might have the following forms: Quick Service Table Service Specialty Restaurants Coffee Shops Bars Lounges Clubs Banquets Catering Functions Wedding, Birthdays

Sales & Marketing Division

A typical Sales & Marketing Division is composed of

four different departments: Sales Convention Services Advertising Public Relations

 Security Division
Human Resources Division Retail Outlets

Recreation Facilities (ex: Fitness Center, Tennis

Courts, and Cinema Saloons) Conference Centers Casinos Travel agents Health club

MEASUREMENT
Feedback by customers
Online suggestion portals eg.burrp.com Trip advisor

Restaurant magazines
Luxury travel magazine Websites Slm Wlh

SWOT ANALYSIS
Strengths
fulfill the demand of the tourists international tourists travelers

Manpower costs in the Indian hotel industry is one of

the lowest After sale service High Quality Service Entertainment

 Weaknesses

The cost of land in India is high

Focus On Foreigners more High tax structure in the industry

limited value added services

Lack of safety

Opportunities
Demand between the national and the inbound tourists can

be easily managed due to difference in the period of holidays Growing consumer income

Threats Guesthouses replace the hotels Strong Competition

Potential to downturns to travel

Terrorist attack

Thank You