TO STUDY PRICE SENSITIVITY

IN SERVICE SECTOR

HOTELS AND
RESTAURANT SECTOR

INTRODUCTION

Objectives
To Study Price efficiency to change consumer

preference.
To study service satisfaction among consumer at
available price.
To study cause and effect relationship between
Consumer Behavior and Price.

Scope & Significance

Age group between 16 years and above.
All types of income level.
No Location specific.
Survey made to collect raw data for analyzing and

interpretative the objectives.

Hypothesis
H0 - Price Sensitivity Hotel Industry affects the

Services offered by them and Consumer behavior

towards it.
H1 - Price Sensitivity Hotel Industry does not affect

the Services offered by them and Consumer behavior

towards it.

Secondary Data Analysis and Interpretation

Age Analysis
Age

30%

20%

50%

16 - 25
26 - 35
36 and Above

Gender Analysis

Gender

45%

55%

Male
Female

Annual Income Analysis

In INR

30%

10%
15%

45%

Below 1.50 Lac 3.00

Lac
1.50 Lac 3.00 Lac
3.00 Lac 5.00 Lac
5.00 Lac and above

Annual Spending on Vacation Analysis

Sales

5%
45%

20%
30%

NIL
1.00 Lac - 3.00 Lac
3.00 Lac 5.00
Lac
5.00 Lac and above

Primary Data Analysis for Hospitality Aspect

Type of Hotel Chosen
Star
5%
30%
45%
20%

2
3
4
5

Attributes looked for

Attributes

20%
35%

15%
30%

Ambiance
Reviews
Per Room Cost
All of the Above

Price matter when it comes to Hospitality Services

Price

40%
60%

Yes
No

 As per recent changes in Service Tax which is leading to

changes in Prices, still will you go for Better Hospitality

option?
Price

45%

55%

Yes
No

Primary Data Analysis for Restaurant Aspect

Do you look for particular Cuisines while visiting

Hotels?
Yes/No

25%
Yes
No
75%

Why do you prefer outside food?

Sales

30%

25%

30%
15%

Tasty Food
Bachelor
Student
Party

How much you spend in the hotel on an Average per

visit?
in INR

30%

2%

40%

6% 22%

Less than 100

100 200
200 - 300
300 - 500
More than 500

How you rate the Food Quality against Price?

Food Quality

15%
40%
45%

Unsatisfactory
Satisfactory
Very Satisfactory

Opinion about the Price

Price

25%

25%

50%

Inexpensive
Moderate
Costly

Conclusion
Inverse Relationship with Consumer Behavior.
Direct relationship with Services provided.
Visit to Hotels on vacation depends on Hospitality

provided by the Hotels and not by the price. Whereas

in exceptional cases its vice-a-versa.
Visit to Restaurants is depends on Taste, ambience
irrespective of Prices.

Recommendation
Price Stabilization.
Uniformity for prices at different type and graded

Hotels and Restaurants respectively.

New Generation Applications like Just Dial (JD),
Zomato etc. are offering rating to Hotels and
Restaurants which is good but should be given for all
grades of Restaurants.