HoTeL InDuStRy

Service Sector Management

DEFINATION
The tertiary sector of economy (also known as the service sector or the service industry) is one of the three economic sectors, the others being the secondary sector (approximately manufacturing) and the primary sector A service is any act or performance that one party can one party can offer to another that is essentially intangible and doesnt result in the ownership of anything. Its production may or may not be tied to a physical product

HOTELS
A commercial establishment providing lodging and, usually, meals and other services for the public, especially for travelers A hotel is an establishment that provides paid lodging, usually on a short-term basis. The provision of basic accommodation, in times past, consisting only of a room with a bed, a cupboard, a small table and a washstand has largely been replaced by rooms with modern facilities, including en-suite bathrooms and air conditioning or climate control.

TYPES OF HOTELS

There are five types of hotels

Residential Hotel Commercial Hotel Resort Hotel International Hotel Floating Hotel

HOTELS

The hospitality business encompasses all forms of transport, tourism, accommodation, eating, drinking, entertainment, recreation and other related activities. It is the worlds largest employer of people and a vast consumer of physical resources. In the well-developed countries like United States, hospitality is the third biggest income earning industry. The concept of hotel originated in the 6th century B.C in the form of Inns. These were run by couples and provided sleeping arrangements in big rooms, similar to dormitories in the youth hostel. Hence the Hotel Industry has its roots in the past in almost every country.

HOTELS IN INDIA

'Hotel Industry in India' seconds only to China in Asia Pacific. 'Hotels in India' have supply of 110,000 rooms. According to the tourism ministry, 4.4 million tourists visited India last year and at current trend, demand will soar to 10 million in 2010 to accommodate 350 million domestic travelers. India is now becoming an attractive centre for famous hotel chains. The World Travel and Tourism Council says, India ranks 18th in business travel and will be among the top 5 in this decade. 'Hotel Industry in India' is set to grow at 15% a year. This figure will skyrocket in 2010, when Delhi hosts the Commonwealth Games. It is estimated that the hospitality sector is likely to see US$ 11.41 billion rise in the next two years, with around 40 international hotel brands making their presence known in the country by 2011.

KEY PLAYERS

Hotel Grand Maratha Sheraton

Hotel Intercontinental-The Grand

Hotel J.W.Marriott

Hotel The Oberoi-Nariman Point

The Taj Mahal Hotel

Hotel The Leela Kempinski

HISTORY Established in the year 1972. In the year 1991, properties of Le Meridian increased to 58. Le Meridien in the year 1994 was acquired by Forte. In May 2001 meridien was bought for 1.9 billion pounds by Nomura International plc. In 2005 the brand and management fee was acquired by Starwood Hotel & Resorts worldwide Inc.

8 PS

Place: In services, the place decision depends on the location and use of distribution channel. Question: Why did Le Meridian choose this location?

People: The service provider reflects the organizational realities. It is through the interaction with the staff, that the customer form an opinion of the organization. A service may have the latest equipments and all the facilities but yet it may not be able to provide satisfactory customer service due to lack of interpersonal relationship between the service provider and customer. Question: What are the qualifications that you look for while recruiting your staff?

Price: Price is a significant element of the marketing mix because it is the only element that produce revenue whereas the other elements produce cost. Price reflects the value attached to the service by the service provider and it must correspond with the customers perception of value. Question: On what basis are the prices determined? Is there a USP for the price determining?

Product: A product is anything that can be offered to market for attention, acquisition use or consumption that satisfy a want or need. Question: what are the other services provided by your hotel apart from providing accomodation?

Physical evidence: It is the environment in which the service is delivered and where the firm and customer interact, and any tangible commodities that facilitate performance communication of the service. What is the effect of physical evidence of the physical evidence of your hotel on your business?

Promotion: It is one of the key elements of the marketing mix which is used for the purpose of encouraging sales and conveys to the customer the position of the services. It helps to create awareness among the customers. How is the name promoted?

APUDI

Process: The service process refers to how a service is provided Process is the way of undertaking transaction , supplying information and providing services in a way which is acceptable to the customer and effective to the organization. What is the sequence of events of the customer from its checking to check out?

APUDI

Productivity: Productivity= Average Room Rate (ARR) Average Room Sold (ARS) Assuming ARR is 10,000 Assuming ARS is 10 Therefore, 10,000 = 1000 10

RECOMMENDATIONS

Le Meridian does not advertise much in the television media to promote the hotel.( So we recommend it should use television media to attract their target audience.) Le Meridian appearance from outside is not that attractive. Since Tiffin kitchen caters to both Tiffin restaurant as well as Room Service the order sometime gets delayed. Therefore there should be a separate kitchen for room service. There should be a separate route for taking the orders up to the room. Since the route is same as for the staff, it causes delay. The amount of cutlery and crockery should be increased. There should be a proper system for taking the feed back of the guests.

CONCLUSION

Mumbai is known to be the commercial city and henceforth people from different parts of the country and abroad come to Mumbai for various purposes. So accommodation becomes very essential. The booming tourism industry of India, a top world tourist destination, has also led to the growth of the Indian hospitality industry. The huge number of tourists, both international and domestic, are catered to and taken care of by the 5 star hotels in India, who offer warmth, comfort and contemporary facilities to the guests The hotels in India maintain very high standards of service quality and this is evident from the hospitality offered by the 5 star hotels of the country. Accredited across the world for their sophistication, style, grandeur and superior services, the five star category hotels are the ideal place to lodge for a truly rewarding vacation

So, expect good value for your money and enjoy a relaxed and luxurious holiday by lodging in any of the 5 star hotels in India. The warm hospitality offered amidst royal comfort will surely leave you mesmerized.