Chp 5+Hotel+Marketing

8/2/2019 Chp 5+Hotel+Marketing

http://slidepdf.com/reader/full/chp-5hotelmarketing 1/28

Chapter 5

Hotel / Hospitality Marketing



Overview• Introduction to Industry

• Marketing Mix (8 P’s)

1. Product (Product levels & Service Flower)

2. Price

3. Place (Channels of Distribution)4. Promotion

5. People (Employees & Customers i.e. marketsegmentation)

6. Physical Evidence

7. Process (Service Blueprint)

8. Productivity & Quality (Service Quality

Dimensions / RATER Analysis)



Overview

• SWOT Analysis

•

PEST Analysis

• Recent Developments

• University Questions



Introduction to Hotel Industry

• The trend is the industry in classification closely under thebasis of advancement in technology, marketing and sales,

financial and the development is food and cuisine trends.

• The hotel industry is now concentrating on segmentation as

the market contains various types of customers.• The concept of budget hotel is an upcoming one in India.

• The hotelier would like to offer a reasonable amount of good

facilities at an affordable price

• Today the hotel includes is making a reasonable program inboth public and private sectors.

• Independent chains are “The Taj”, the top has gives a new

look to the hotel ring in India.



Hotel – the concept

• A public place – where all possible facilities like accommodation,

entertainment, etc.

– are provided to people who stay

– for a temporary period



Classification of Hotels• Residential

• Commercial

• Resort

• International

• Floating

• On basis of standards and control (Approved,unapproved by Dept. of Tourism)

• On basis of stars (Facilities, quality, luxury aspects)



Marketing Mix of Tourism

Industry



Product

• All hotels of the same category – core services aresame – distinguished by peripheral services likehotel personnel

• Continuous change in the product mix – Eliminate outdated services – Incorporate latest developments as per changing likes

and dislikes of the customers

• Factors to be considered while formulating product

mix – Catering management

– Restaurant & Cafeteria management

– Management of bedrooms

– Management of buffet & convention halls

Characteristics



Product

Reception

Lodging

Boarding

Entertainment

Shopping

Personal care

Communication & Transport

Medical



Product

BENEFIT MEANINGWITH RESPECT TO THE TRAVEL AND

HOTEL INDUSTRY

1. CORE BENEFIT

The fundamental benefit or

service that the customer is

buying

Rest & Sleep

2 BASIC PRODUCT Basic, functional attributesHotel room with all amenities

3 EXPECTED

PRODUCT

Set of attributes/conditions the

buyer normally expects

A clean bed, fresh towels, working

lamps, and a relative degree of

quietness, etc.

4 AUGMENTED

PRODUCT

That meets the customers desires

beyond expectations

Prompt services, Remote controlled

AC & TV, 2 Telephone lines, etc

5 POTENTIAL

PRODUCT

The possible evolution to

distinguish the offer

Wi – Fi connections in hotel rooms,

home theatre systems, etc.

• Product Levels



Product

• Service Flower

CORE: SLEEP

& REST

Food – related

services

Lounge facilities

Reception

Leisure

facilities

Security

Medical

External

building and

design

Room

features

SUPPLEMENTARY

SERVICES



Price

• Includes

– For room tariffs

– For food and beverage

– For functions

• Pricing strategy for promotions:

–

Seasonal discounts – Trade discounts

– Special discounts



Place

• In hotel services, due to intangibility factor,the distribution systems and channels and notgiven importance

• What do we need to distribute whiledelivering hospitality services?

INFORMATION



Place - Channels of distribution

•

Zero level

Hotel Companies Users

• One level

Hotel Companies Travel Agents Users

• Two level

Hotel Companies Tour Operators Travel Agents

Users



Promotion

• Advertising & Publicity

• Sales promotion

• Word of mouth

• Personal selling

• Telemarketing



People

People

External Customers

Internal Employees

Receptionist

Porter

House – keeping

Waiter

Chef

Back - endemployees etc



Market Segmentation(External Customers)[Univ Q – May 05(5 marks)]

• Business Segment

– Includes corporate professionals, traders &

businessmen travelling on business purposes, each

category having different preferences

• Pleasure Segment

– People from different walks of life – leisure and

entertainment.• Demographic Segment

– Based on income, occupation, age, gender,

education.



Market Segmentation

(External Customers)

• Social Class Segment

– Refers to different income groups

• Benefits Sought Segment

– Different people seeking particular benefit such as

location, accommodation, types of meals, etc.

• Geographic Segment

– Based on geographic location of hotels

• Frequency Segment

– Such as light, medium and heavy users.



Physical Evidence

• Location of the hotel

• Hotel building

• Hotel Bedrooms & other amenities

• Hotel function room

• Logo, Website, Brochures, etc



Arrive atHotel

Check inGo toRoom

Sleep,Shower

EatCheck

out andleave

Registration

System

ProcessCheck out

Registration

System

ProcessRegistration

Process (Service Blueprint)

Hotelexteriorparking

Desk, Reg.papers,

Lobby keys

Elevators,

Hallwaysrooms

RoomAmenities

FoodBills Desk,ExteriorParking

Line of Interaction

Line of Visibility

Line of Internal

Interaction



Productivity & Quality(Service Quality Dimensions/RATER Analysis)

What are the determinants of quality in the hotel industry? [Univ Q – Nov 05(10 marks)]

Reliability

Assurance

TangibilityEmpathy

Responsiveness

Physical

Evidence

Ability to performpromised service;

accurately &

dependably

Security,

Credibility &

Courtesy

Adaptability

& Prompt

Service

Ease of

access &

Customer

Orientation



SWOT Analysis

• Strengths: – Rich natural and cultural diversity of India

– Demand-supply mismatch between the demandand supply of rooms leading to higher room rates

and occupancy levels.

– Government support for the development of theinfrastructure and of new tourist destinations andcircuits.

• The Department of Tourism (DOT) - the "IncredibleIndia" campaign

– Increase in India's share in international tourismand hospitality market



SWOT Analysis

• Weaknesses:

– Poor support infrastructure

– Slow implementation of Govt. measures

– Susceptible to political events

• The internal security scenario and social unrest alsohamper the foreign tourist arrival rates.



SWOT Analysis

• Opportunities:

– Rising income of Indians which is expected to

enhance leisure tourism.

– Increased airline activity has stimulated demand

and has helped improve the infrastructure.

•It has benefited both international and domestic hotels.



SWOT Analysis

• Threats:

– Fluctuations in international tourist arrivals

• Domestic tourism needs to be given equal importance

and measures should be taken to promote it.

– Increasing competition by several international

major for the existing Indian hotel majors.

– Guest houses replace the hotels



PEST Analysis• Political

– Tighter drink/drive laws may discourage local custom using restaurant – Disability Discrimination Act

– Employment law (e.g. minimum wage, hours of work, etc)

• Economical – Possible recession

– Unfavorable currency rates

• Social –

Ageing population - more people with more leisure time – Countryside not as 'exciting' as a city break

• Technological – Teleconferencing / Web cams

– Internet a key, fast growing avenue for advertising.



Recent DevelopmentsHotel Marketing from the Indian Perspective

• Application of the marketing concept – infant

stage

• Major Indian players – Taj Hotels, Oberoi

Group, ITC, etc

• Emphasis to improve managerial proficiency in

the unclassified hotels

• Need to increase governmental support

• Development of tourism would further boost

this industry



University Questions

• Discuss the detail relevance of 8 P’s in hospitalityindustry. [Univ Q – Nov 03(10 marks)]Answer includes the following:

– Introduction in brief

–Product mix

– Pricing strategies

– Distribution channels

– Promotion tools

– People mix (exclude market segmentation)

– Physical evidence

– Steps in the process (blueprint diagram excluded)

– Rater analysis

– Recent developments in brief

Documents

Chp 5+Hotel+Marketing