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PRESIDENCY UNIVERSITY

GEOGRAPHY DEPARTMENT

ASSIGNMENT
ON

“assessing potential of hotels


in the market analysis (KOLKATA)
using ‘Swot’ analysis technique”

Under Supervision of: Prof. Saurav Chakraborty

Date of Submission: 5th November, 2019

Submitted by –
ADITI BARDHAN
Geography Of Tourism
PG 3rd sem
GEOG-001
15121221013
INTRODUCTION
In today’s highly competitive market, every firm seeking for higher market share and profit
maximization has to be well aware of its own potentials as well as its competitors’ potential. In other
words, each competing business organizations have to have entire knowledge about the market and
how it can sustain itself in this intense competition. SWOT Analysis is a useful technique for these
firms to have a complete understanding and invigilation of market trend as well as their own
competitiveness. To define, as the name suggests, SWOT i.e; strengths, weaknesses, opportunities, and
threats analysis is a framework used to evaluate a company's competitive position and to develop
strategic planning for it. SWOT analysis assesses internal and external factors, as well as current and
future potentials. In managerial scope of any business content, followed by Vision (the image or
impression to be made in the market as in near future goal) and Objective, comes the internal &
external factor analysis, best through SWOT analysis, that ultimately lead to a well-defined future
business strategy for achieving the goals. Previously it was solely used by profit making business firms
but now its being used by governments, nonprofits, and individuals, including investors and
entrepreneurs as well for analyzing its potentials. The elements of SWOT analysis are-

 Internal Environment – a) Strengths: characteristics of the business or project that give it an


advantage over others. b) Weaknesses: characteristics of the business that place the business
or project at a disadvantage relative to others.

 External Environment – a) Opportunities: elements in the environment that the business or


project could exploit to its advantage. b) Threats: elements in the environment that could
cause trouble for the business or project.

OBJECTIVE
In this project, our objective is to assess the internal as well as external factors in the Accommodation
market and the competitiveness among the present firms on the basis of provision of some selected
facilities.
METHODOLOGY
Background: For this purpose, we have selected some 10
Facilities Ranks Weightage
facilities on the basis of randomly chosen customer view
Free WiFi in Room
and ranked them using Analytic Hierarchy Process (AHP). Lift 3 0.134751
The ranks and weightage of the selected facilities are given
in Table:1. This particular weightage is considered as its
Free Breakfast
Consistency Ratio i.e.; CR value is 0.050474 or 5.04% Restaurant
which is enough below 10 (since 10 factors considered, the Conference Room
Hotel Bar
Random Consistency Index or RI is 1.49, as per Satty’s
scale). As per the condition; if CR is lesser than equal to
10%, then the consistency is acceptable and the weightages
are correct; but if CR is greater than 10%, then the judgement needs to be revised. So here, clearly the
consistency is acceptable and hence applied further for SWOT analysis. While doing this SWOT
analysis for Hotels, we have done considered the Price and star ratings of all the hotels in the data set
and then done a qualitative analysis with help of the quantitative statistics.

Data: The study region is Kolkata. Source of Data if Secondary. Since in present days hotel booking is
mostly done through online booking sites hence the data is being collected from a widely used hotel
database handling site (www.trivago.in) for online hotel booking. The reported prices are mostly the
least offered price for online booking, compared from different sites, and the star ratings are by the
customers who booked hotel through this site. The presence and absence of the selected facilities are
recorded in binary form where, 1 denotes presence & 0 denotes absence of the particular facilities. The
price data is collected for one-night, Double room in Kolkata only for 4 booking dates within one
month of the current year, i.e.; 2nd to 3rd Dec., 9th to 10th Dec., 16th to 17th Dec. and 23rd to 24th Dec. of
2019. Out of roughly 150 shown hotels in of these search dates, only 64 Hotels were found common on
all these dates, hence other than these 64 hotels, remaining data were excluded from the dataset.

Method: First the prices of each hotel on the 4 search dates are
Table:2
averaged and the Mean, Q1, Median and Q3 of the averaged dataset Price Class Price Range
is deduced with which price range classes are formed and presented I BELOW 3000
II 3000-4865
III 4866-7765
IV More than 7765
NUMBER
NUMBER OF
OF HOTELS
HOTELS
in Table:2. Then the presence value 1 are being replaced by the respective weightages of the respective
facilities and a Mean Weightage of each hotel
IV is being deduced
IV
I by averaging the weightages of present
I 20%
20%
facilities in each hotel. On the basis of these respective Mean
25%Weightages of each hotel is crucial in
25%
determining its potential in respect to other competitors and are used in SWOT analysis of the prepared
dataset.

Dataset:
III
III IIII
FREE FREE CONFERE
PRICE lift
31%
31%
WIFI IN PARKING A/C 24%
RESTURA HOTEL
24% GYM POOL BREAKFA NCE MEAN
Hotel Name Star NT BAR CLASS
AVG. ROOM ST ROOM WEITAGE
2 1 4 3 6 8 9 10 5 7
BROADWAY HOTEL 2906 2 0 0.13683 0 0 0.09442 0 0 0 0 0I 0.023125
FAB EXPRESS SATAKSI GUEST
HOUSE BIDHANNAGAR 2359.25 3 0.134751 0.13683 0.128381 0.130581 0 0 0 0 0.10669 0I 0.063723
FAB EXPRESS NEST PARK STREET METRO
2498.5
STATION 3 0.134751 0.13683 0.128381 0.130581 0.09442 0 0 0 0.10669 0.08119 I 0.081284
FAB EXPRESS VINITA WELCOME HOWRAH996 3 0.134751 0.13683 0.128381 0.130581 0 0 0 0 0.10669 0I 0.063723
FAB HOOTEL A RETRO NEW TOWN 1700 3 0 0.13683 0.128381 0.130581 0 0 0 0 0.10669 0I 0.050248
FAB HOTEL ELEANORA NEW TOWN 979.5 3 0.134751 0.13683 0.128381 0.130581 0.09442 0 0 0 0.10669 0I 0.073165
FAB HOTEL KOLKATA RESIDENCY NEW TOWN
1897 3 0.134751 0.13683 0.128381 0.130581 0 0 0 0 0.10669 0I 0.063723
GOLDEN APPLE BOUTIQUE 2309.25 2 0 0.13683 0 0.130581 0 0 0 0 0.10669 0I 0.03741
HOTEL ASTON INTERNATIONAL 2403 4 0.134751 0.13683 0.128381 0.130581 0.09442 0.06443 0.06368 0 0 0.08119 I 0.083426
HOTEL CRESTWOOD 2323 3 0 0.13683 0.128381 0.130581 0.09442 0 0.06368 0 0 0.08119 I 0.063508
HOTEL GULSHANN INTERNATIONAL 2446.25 2 0.134751 0.13683 0.128381 0.130581 0.09442 0.06443 0 0 0.10669 0I 0.079608
HOTEL RUSHABH HOME 2377.25 3 0.134751 0.13683 0.128381 0.130581 0 0 0 0 0 0I 0.053054
RUPASI BANGLA 1262 3 0.134751 0.13683 0.128381 0.130581 0.09442 0 0 0 0 0.08119 I 0.070615
SAWOOD 2059 3 0.134751 0.13683 0.128381 0 0.09442 0 0 0 0 0I 0.049438
SIDD'S HOSPITALITY 1100 3 0 0.13683 0.128381 0.130581 0 0 0 0 0 0.08119 I 0.047698
STEP IN HOSPITALITIES 1544 3 0.134751 0 0 0 0 0 0 0 0.10669 0I 0.024144
FREE FREE CONFERE
RESTURA HOTEL
PRICE lift WIFI IN PARKING A/C GYM POOL BREAKFA NCE MEAN
Hotel Name Star NT BAR CLASS
AVG. ROOM ST ROOM WEITAGE
2 1 4 3 6 8 9 10 5 7
HOTEL KEMPTON 4963.75 3 0.134751 0.13683 0.128381 FREE 0 0 0 0 0 0.10669 0.08119 FREEII CONFERE
0.058784
RESTURA HOTEL
HOTEL RAJ PALACE PRICE 0 0.13683lift0.128381
WIFI 0.130581
IN PARKING A/C GYM POOL0.08119
BREAKFA NCE0.067809 MEAN
Hotel Name 3356 3 Star 0.09442 0NT 0
BAR 0 0.10669 II CLASS
HOTEL VIP INTERNATIONAL 3750.25 AVG.
3 0.134751 0.13683 0.128381 ROOM 0.130581 0.09442 0.06443 0 0 0 0STII ROOM 0.068939 WEITAGE
PALLAVI INTERNATIONAL HOTEL 3517.25 3 0.134751 0.136832 0.1283811 0.1305814 0.094423 06 08 09 010 05II 7 0.062496
DE SOVRANI
REGENTA INN LARICA 4712.25 311345 4 0.134751
0.134751 0.13683 0.13683
0.128381 0.128381
0.130581 0.130581 0.09442
0.09442 0 0.06443
0 0.06368
0 0.106690.05904 0.10669
0 II 0.08119 IV
0.073165 0.099999
HOTEL MONOTEL 4668.25 15285.25 4 0.134751
4 0.134751 0.13683 0.13683
0.128381 0.128381
0.130581 0.130581
0.09442 0.09442
0.06443 0.06443
0.06368 0.06368 0.05904
0.05904 0 0.08119 0.10669
II 0.08119 IV
0.08933 0.099999
SENSES HOTEL
THE BIGBOSS HYATT REGENCY KOLKATA 3810 16886.5 5 0.134751
3 0.134751 0.13683 0.13683
0.128381 0.128381
0.130581 0.130581 0.09442
0.09442 0 0.06443
0 0.06368
0 0.106690.05904
0.08119 II 0 0.08119 IV
0.081284 0.08933
ITC SONAR,A LUXURY COLLECTION
THE MAJESTIC SUITES 4036 HOTEL,KOLKATA
12695.5 5 0.134751
4 0.134751 0.13683 0.13683
0.128381 0.128381
0.130581 0.130581 0.09442
0.09442 0 0.06443
0 0.06368
0 0.05904
0 0.08119 II 0 0.08119 IV
0.070615 0.08933
THE SAMILTON JW MARRIOTT KOLKATA4365 17068.25 5 0.134751
2 0.134751 0.13683 0.13683
0.128381 0.128381
0.130581 0.130581
0.09442 0.09442 0.06443
0.06443 0 0.06368
0 0.05904
0 0.10669
0 II 0.08119 IV
0.068939 0.099999
THE SONNET NOVOTEL KOLKATA HOTEL AND
4697 RESIDENCE
7865.5
4 5 0.134751 0.13683 0.128381 0.130581 0.09442 0.06443 0.06368
0 0.13683 0.128381 0.130581 0.09442 0.06443 0.06368 0.05904 0.10669 0.08119 II 0.05904 0.10669 0.08119 IV
0.086524 0.099999
OYO TOWNHOUSE 011 ESPLANADE 3 8867 4 0.134751 0.13683 0.128381 0.130581 0 0 0 0 0.10669 0.08119 IV 0.071842
THE STADEL 4715.25 0.134751 0.13683 0.128381 0.130581 0.09442 0.06443 0.06368 0.05904 0.10669 0.08119 II 0.099999
RADISSON
TREEBO TREND GLOBE KOLKATA3272.75
INTERNATIONALBALLYGUNGE 10388.25 5 0.134751 0.13683
3 0.134751 0.13683 0.128381 0.130581
0 0.130581 0 0.09442
0 0.06443
0 0.06368
0 0.106690.05904 0 II 0 0.08119 IV
0.050885 0.08933
SWISSOTEL
TREEBO TREND GREEN VIEW KOLKATA3515.25 10520.25 5 0 0.13683
3 0.134751 0.13683 0.128381 0.130581 0.128381 0.130581
0 0.064430.09442 0.06443
0 0.06368
0 0.106690.05904 0 II 0 0.08119 IV
0.070166 0.075855
The KENILWORTH KOLKATA
TREEBO TREND HOOPS 3911 9897.75 4 0.134751
3 0.134751 0.13683 0.13683
0.128381 0.128381
0.130581 0.130581 0.09442
0.09442 0 0.06443
0 0.06368 0
0 0.10669 0.08119 II 0 0.08119 IV
0.081284 0.083426
THE OBEREOI GRAND 4457.5
KOLKATA FREE FREE 0.05904
CONFERE
VICEROY 314791 5 0.134751
0.134751 0.13683 0.13683
0.128381 0.128381
0.130581 0.130581
RESTURA
0.09442 HOTEL0.09442
0 0.06443
0 0.06368
0 0.10669 0.10669
0.08119 II 0.08119 IV
0.081284 0.099999
HotelTHE
NamePARK KOLKATA PRICE Star10152.25
lift WIFI
5 IN PARKING
0.134751 A/C0.128381 0.130581 0.09442
0.13683 NT BAR
GYM0.06443POOL0.06368
BREAKFA0.05904NCE 0 0.08119
CLASS
MEAN
IV 0.08933
AVG.
THE PRIDE PLAZA KOLKATA 12212.75 ROOM
5 0.134751 0.13683 0.128381 0.130581 0.09442 0.06443 0.06368ST 0.05904 ROOM WEITAGE
0 0.08119 IV 0.08933
2 1 4 3 6 8 9 10 5 7
CAPITAL O 11617 THE GRACE 5561.75 3 0 0.13683 0.128381 0.130581 0.09442 0 0 0 0.10669 0.08119 III 0.067809
CASA FORTUNA 5543.25 3 0.134751 0.13683 0.128381 0.130581 0.09442 0.06443 0 0 0 0 III 0.068939
CELESTA KOLKATA 5391.5 3 0 0.13683 0.128381 0.130581 0.09442 0.06443 0 0 0.10669 0.08119 III 0.074252
DEE EMPRESA 4592 3 0.134751 0.13683 0.128381 0.130581 0.09442 0 0 0 0.10669 0.08119 III 0.081284
EMIRATES 3255 3 0 0.13683 0.128381 0.130581 0 0 0 0 0 0.08119 III 0.047698
FAB HOTEL DE SIVALIKA HOWRAH 5010.25 3 0.134751 0.13683 0.128381 0 0 0 0 0 0.10669 0 III 0.050665
HOLIDAY INN KOLKATA AIRPORT 7756 5 0.134751 0.13683 0.128381 0.130581 0.09442 0.06443 0.06368 0.05904 0 0.08119 III 0.08933
HOTEL INDISMART 3300.25 3 0.134751 0.13683 0.128381 0.130581 0.09442 0.06443 0.06368 0 0 0.08119 III 0.083426
HOTEL THE FLOATEL 6624 4 0.134751 0.13683 0.128381 0.130581 0.09442 0.06443 0.06368 0 0.10669 0.08119 III 0.094095
JAMESON INN SHIRAZ
LEE INTERNATIONAL
Representation
Representation of
7341.75
5619.5 of MEAN
MEAN WEITAGE
WEITAGEby
by CLASS
CLASS
3 0.134751 0.13683 0.128381 0.130581 0.09442 0.06443 0.06368
3 0.134751 0.13683 0.128381 0.130581 0.09442 0 0
0 0.10669 0.08119 III
0 0 0.08119 III
0.094095
0.070615
LYTTON HOTEL 6961.25 3 0.134751 0.13683 0.128381 0.130581 0.09442 0 0 0 0.10669 0.08119 III 0.081284
MAYUR RESIDENCY0.1
0.1 6141 3 0.134751 0.13683 0.128381 0.130581 0.09442 0 0 0 0.10669 0.08119 III 0.081284
MIDDELTON INN 6487.25 2 0.134751 0.13683 0.128381 0.130581 0.09442 0.06443 0 0 0.10669 0.08119 III 0.087727
OYO 9181 AAKASH GANGA 2 5234.75 3 0 0.13683 0.128381 0.130581 0 0 0 0 0.10669 0 III 0.050248
0.08
SAPPHIRE SUITES 0.08 4877.75 3 0.134751 0.13683 0.128381 0.130581 0.09442 0 0.06368 0 0 0 III 0.068864
THE CORPORATE 5018.5 3 0 0.13683 0.128381 0.130581 0.09442 0.06443 0.06368 0.05904 0.10669 0.08119 III 0.086524
THE ELGIN FAIRLAWN
0.06 KOLKATA 6305.5 4 0.134751 0.13683 0.128381 0.130581 0.09442 0 0 0 0.10669 0 III 0.073165
THE LINDSAY
0.06 5436.75 3 0.134751 0.13683 0 0.130581 0.09442 0.06443 0.06368 0 0.10669 0.08119 III 0.081257
THE PEERLESS INN KOLKATA 7222.75 4 0.134751 0.13683 0.128381 0.130581 0.09442 0.06443 0.06368 0 0 0.08119 III 0.083426
0.02
0.02

00
II IIII III
III IV
IV

INTERPRETATION
Out of all these 64 hotels, each with their list of facilities and some uniqueness, should have some
advantage over other and till it can retain this uniqueness, it will be able to draw customers, otherwise
it will lose and that will become a threat for a particular hotel and opportunity for others serving the
same market. We have not considered the Location factor assuming the high transportation network
and facilities already existent, that already has provided an opportunity to all the competing hotels in
Kolkata.

Analysis: Here, we have outlined some of the basic overall Strength-Weakness-Opportunity-Threat


components in Fig:1 within the SWOT framework for hotel industry. And on the basis of these
identified components the following analysis of the hotels on the basis of their Price range categorized
classes have been done.

Out of 64 hotels from our dataset, 16 hotels fall in Class I price range (Below 3k) with most of
them roughly having the first five ranked facilities in them. Among this Class I category hotels,
most of them are 3-star hotels, as it is the basic reliance level of a customer to opt for the hotel when
booking online after going through its reviews. Among them the two extremes are the
BROADWAY HOTEL & the HOTEL ASTON INTERNATIONAL. The former has the lowest
weightage of only 0.023125 and the latter’s is as high as 0.083426. The performance level as
calculated in Mean weightage is directly reflected in their star ratings, where Broadway has 2-star
and Aston has 4-star. The weakness of Broadway is the absence of almost all the high ranking
facilities except for WiFi in Room(rank-1) and Restaurant(rank-6) with a price of nearly 3k, where
the Chain hotels of FAB are providing more facilities on a price range of below 1k to nearly 2.5k
with a star rating of 3. These advantages of the medium ranged higher star rating FAB hotels are
major threats to the Broadway Hotel and it might face a major loss in future if not checked its
weaknesses. On the contrary, the Aston has almost all the enlisted facilities except for medium
ranking Free Breakfast(rank-5) and very low-ranking Pool facility(rank-10) which are much below
in the preference list of Customers’ requirements and can be considered as very minor weaknesses
as compared to its strengths. Along with them, the Price of the hotel being medium ranged among
Class I hotels i.e, 2.4k, the strength components can be well utilized to grab the opportunity of
drawing more customers from other and even in future, it can promote itself to higher price range
class by polishing its existing strengths that will help to maximize profit by increasing its Price to
some sustainable level, so that it doesn’t loose its major customer market that it previously had and
yet draw some upper class sophisticated customers as well, serving a wider section of the market.
The STEP IN HOSPITALITES has a poor weightage(0.024144) as well but its low price range
along with lift(rank-2) facility and Free breakfast(rank-5) and also some other probable presence of
services, not enlisted here, has provided it a 3-star and hence addressing both potential strengths in
low price and presence of majorly preferred lift as well as potential weakness in the absence of all,
except lift, highly preferred services thus providing it the opportunity to recover from its
weaknesses and hence draw customers from the market served by the FAB chain and such medium
ranged 3-star hotels otherwise it has the threat to loose its star rating as well as the existing
customer flow to the competing neighbors. This kind of hotels are basically suitable for short stays
or are demanded by the customers with minimum needs.

In the Class II price range (3k-4.865k), 15 hotels out of 64 are present which are, like Class I,
mostly 3-star hotels and the standard mean weightage of the Hotels is around 0.07, where TREEBO
TREND GLOBE INTERNATIONAL has a low value of 0.0508852 and a very high value of
0.0999993(also one of the highest scoring) possessed by THE STADLE are two extremes. As for
Stadle, it’s a fancy Hotel with all the enlisted facilities but has a low star rating of 3 because of its
weakness of rigid cancellation policy. So inspite of so many strengths, the rigidity of cancellation
policy poses a major threat and it is providing opportunity to other medium ranged hotels of around
3k to 4k, with lesser weightage, to draw its customers by providing more fluid and customer
friendly policies. The Globe International under TREEBO chain of hotels, inspite of low weightage,
is not so threatened as its low price and medium 3-star rating compensate the lack of many enlisted
facilities also implying the fact that it serves a very restricted section of customers with basic needs,
mostly the short term spot-chasing tourists, who spend less time in hotels. But for HOTEL
KEMPTON, the comparative high price and lack of many highly preferred facilities are a its
weaknesses which poses a future threat induced by itself or surrounding efficiently competing
hotels. The SENSES HOTEL & THE SONNET with an impressively high weightage of around
0.08 and high star rating of 4 and appreciable price around 4.6k have the opportunity to expel other
close competitors by maintaining its strengths in a short run, whereas, in long run they have to
overcome their minimal weaknesses to avoid the future threat of growing improvement of other
hotels. Hotel VICEROY is also doing good as well, but it has more weaknesses to overcome, not
get outrunned by others in near future.

Majority of the hotels, i.e.; 20 out of 64, considered in the dataset, fall in this Class III price
range (4.866k-7.765k) with a mixture of both 4-star and 3-star hotels. Among them Hotel THE
FLOATEL & JAMESON INN SHIRAZ have similar high weightages around 0.094 with the
former having a high 4-star rating has the opportunity to increase its market and price level and
enter the next higher class in the hierarchy, whereas the latter still have to work on its service and
customer satisfaction level to increase its star rating from 3-star to grab the opportunity of greater
market extension. On contrary, FAB HOTEL DE SIVALIKA HOWRAH & CAPITAL O 11617
THE GRACE have to work out on their weaknesses in absence of some of the highly preferred
and other enlisted facilities to cope up with their comparatively higher prices. As for others, they
are doing well, some being as the sustenance level in this class whereas some are efficiently
grabbing the opportunities and might improve themselves to the extent to enter the next upper
class. Even in this category, the facility of Pool is an extreme preference of luxury with only two
hotels providing the facility.

In this Class IV price range (More than 7.766k) lie the most sophisticated top class hotels, all
being either 4 or 5-star hotels, majority being the latter. The Price range is very high, not
affordable by people other than from upper and elite class of the society. These places are
suitable for hosting parties and conferences of large MNCs and keeping VIP and VVIP guests.
Out of the 13 hotels found in this category almost all of them provide almost all the enlisted
facilities excepting the free breakfast. The fact behind this is the customers are so high class and
sophisticated people with high economic capacity that they merely or rather do not prefer Free
Breakfast. They can afford any service by paying for it and hence no need of anything for “free”.
Among all these high performing hotels, DE SOVRANI, HOTEL MONOTEL, JW MARRIOTT
KOLKATA, NOVOTEL KOLKATA HOTEL & RESIDENCE and THE OBEROI GRAND
KOLKATA are those with the highest mean weightage of .0.999993 with the highest star rating
of 5-star. These hotels are less in number and have highest opportunity of their long time brand
loyal customers and long-term high impression image in the market. They face least threat
because they serve a particular section of the market with high price affordability and to reach
this level, the lower group hotels have to run a marathon to compete with them.

Proposal: We have done here a pilot analysis of


the market scenario of Hotels in Kolkata through
SWOT but there is a future scope of applying
the same framework for each of these hotels to
have an in-depth idea of each hotels in respect of
the entire dataset helping to provide individual
level management strategies. But for now, here,
by using SWOT matrix, we will propose some
overall strategy implications.
Inspite of these strategy proposals, there’s always the need to frequently revisit the market i.e;
external and internal potentials from time to time to keep updated with changing market nature
and demand.

CONCLUSION
To conclude, it must be stated that each of the hotels must foremost address their internal factors where
I should analyze how to harvest opportunity out of its strengths and improve and revisit its weaknesses
so that they are safe from future Threats. Also, a constant market invigilation in basic to the
management strategy to keep an eye of the External factors of future Opportunities and Threats a hotel
might face. On the basis of these strategies, Plans should be made and thoroughly implemented with
periodic revisit of the entire analysis and strategy planning procedures. SWOT analysis being a Mixed
method provides the greatest scope of transforming qualitative data into quantitative scale and after
statistical processing, the technique helps in deducing a qualitative analysis based on quantitative
statistical data.

BIBLIOGRAPHY
 https://www.investopedia.com/terms/s/swot.asp
 https://en.wikipedia.org/wiki/SWOT_analysis
 Gürel, Emet, and Merba Tat. "SWOT analysis: A theoretical review." Journal of International Social
Research 10.51 (2017).
 Sammut‐Bonnici, Tanya, and David Galea. "SWOT analysis." Wiley Encyclopedia of
Management (2015): 1-8.
 www.trivago.in

THANK YOU

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