Establish a Hotel To Target Business Visitors To

CalicutN.S. Narayanan

Agenda

• Peer Group Analysis• Hotel Taj Residency• Hotel Fortune• Hotel Hyson Heritage

• Customer Survey Analysis• Changing Face of Kerala Economy• Required Attributes & Gap Analysis• Estimations – Set-Up

Hotel Taj Residency

Taj Residency• Belongs to the Taj Group

• 73 Hotels in India & Abroad• Number of Brands across segments

• Location• Airport 26 km• Railway Station 02 km• Bus Stand 02 km

• Restaurant• Food & Wine• Cape Camorin• Coral Reef• Logan’s Lounge

Taj Residency• Rooms & Facilities

• Spacious & Sophisticated• 4 Suites, 74 Rooms• 2 Banquet Halls• Unique Ayurveda Cuisine• Business services• Leisure services

• Training• Demand

• Work overload on festive period

Service Blueprint

Taj Residency• Key Function Analysis

• Marketing• Centralized• Special offers on Onam and other festives

• Supply Chain• Good relationships with vendors

• Human Resource• Emphasis on people, training, incentives in

place

• Customer Service• Financials

Hotel Fortune

Fortune• 3 Star Hotel Situated off Kannur Road• Economic class of ITC Welcome group• Business travelers – Cochin, Mumbai,

Bangalore and Chennai• Location

• Airport 26 km• Railway Station 04 km• Bus stand 03 km

• Restaurants• Tharavad Exotic cuisine• Malabar court Coffee shop• Captain’s cabin Pub

Fortune• Rooms

• 63 Rooms

• Services• Complementary breakfast• 24 hours room service• 24 hours currency exchange• Safe deposit lockers• Direct Dialing• CCTV• In-house Laundry• Travel Assistance • Doctor on Call

• Conference Halls• Chancery 250 seater• Senate Small gatherings• Cabinet Small Board meetings

Fortune

• Tariffs are higher than Hotel Hyson• Focus on Service and not on Costs• Training

– Rigorous training for 6 months– Service stressed at all levels– Continues to spend high on training

Fortune• Key Function Analysis

• Marketing• Centralized• Special offers on Onam and other festives

• Supply Chain• Good relationships with vendors• Relationship with travel agents and tour operators

• Human Resource• Believes training makes the Fortune difference in service• Staff strength: 7 FO, 25 Service Members• Incentives for going extra mile, best employee etc

• Operations• No seasonality in demand• Healthy occupancy rate of 87%-90%• Services close to 600 companies/month of which 180 are

repeat• No expansion plans currently

• Financials

Fortune• Key Function Analysis

• Quality• Conducts regular audits• Telephone audits and Mystery Audits

• Financials• Yet to Break-even• Annual growth of 5-8% in the last 5 years• Revenues of 4 Crores/per annum• Prices increased by 10% every year

• Service Design• Services to cater to tourist as well as Business

clientele• Superior customer service is the USP

Hotel Hyson Heritage

Hyson Heritage• 3 Star Hotel Situated off Mavoor Road• Enjoys High visibility• Runs profitably thru the year• Frequented by Business travelers from Gulf

– Cost Advantage– Central Location

• Location– Airport : 26 km– Railway Station : 01 km– City Bus Stand : Walking distance

• Restaurant– Benhur: Multi cuisine– Exotic menu of Arab/Chinese/Continental

Hyson Heritage• Rooms

– 93 rooms– Both Air conditioned and Non A/c

• Services– Complementary breakfast buffet– 24 hours room service– Newspaper– CCTV– Internet on request– Laundry Service– Travel Desk / Bookshop – Doctor on Call– Direct dial STD / ISD– Florist

• Ayurvedic Centre

Hyson Heritage• Conference Hall

– Hyson Darbar– Akbar Hall– Mughal Hall

• Elegant setting for:– Corporate functions/ Social gatherings/ Seminar

• Online Booking system in place

Customer Survey Analysis

Customer Survey• Qualitative study was conducted by

organizing interviews with the customers who were staying in all the three hotels

• Aim of the research• Customer Segment and its needs• Performance attributes and competitor

performance with respect to a performance attribute?

• What are the individual strengths and weaknesses of each competitor?

• Unmet needs of the target segment which is not addressed by the competitors.

Business Customer Segment

Customer Segment

Definition Unique/Critical Requirements

Corporate 60% Individual Business Travelers who travel to the city and stay for less than 10 nights at a stretch

Business center facilities, high speed internet connectivity

Conferences 6% Groups of individual travelers visiting the hotel for attending a conference organized in the conference halls of the hotel

Superior conferencing facilities

Events 6% Groups of individual travelers visiting the hotel and staying together to attend together an event in the city

Customers Wants• Journal of Quality Assurance in Hospitality

& Tourism ranks the following factors• Quality of Staff performance• Value for Money• Safety & Security• Business related services

• Other factors• Location• Internet Access• Quick customer Service• Easy Transportation• 110% Effort

Value Proposition

• Location• Luxurious and Comfortable rooms• Quality of Room Facilities/ Customer

Service• High Speed Internet Connectivity• Business Centre / Conferencing facilities• Business Related Services / Business

Assistance• Complete Travel Assistance

Changing Face Of Kerala Economy

Kerala Economy• Government is pro-reforms, pro-programs

which alleviate unemployment & welfare schemes

• Proposals to open Industrial parks and Techno park

• Lot of encouragement provided for Information Technology sectors

• Government has put in place a liberal and transparent FDI policy

• Kozhikode has recently started the CITI Initiative

• Kozhikode witnessing rise of business community and a boom in trade

Hotel Attributes & Gap Analysis

Peer Benchmark

• Scale of 1(Poor) – 5(Excellent)• Survey respondents:

• Personnel at Hotel • 30+ Customers

Action Plan

• Tie-up with Travel Agents & LCC• Tie-up with Business Houses• ‘Frequent Visitor’ Program• Room Set-up• Conference Halls

• USP: – Budget Hotel– Value for Money

• Travel Assistance• Single Tariff System

Services Not Offered• Gym• Florist• Gift shops/Book shops• Swimming Pool

Services with a Difference• Floor – Reading Rooms equipped with Tea & Coffee Vending

Machines• Business Merchandise to be sold

» (Financial analysis spreadsheet removed, will be provided upon request)

Discussion!