SERVICE MARKETING CASE STUDY

PRESENTED BY

FEROZ.M-113 MAHESH.G-223 PRAVEEN.R-333 KOTESWARARAO.S-243

Executive Summary:
The Hospitality Industry in India, hotel industry, is a significant stake holder of the Indian Tourism

Sector. Renaissance Hotels and Resorts International (RHI) is a subsidiary of the listed Singapore Company, the Straits Trading Company Limited The company worked out a joint venture agreement with Chennai based Indian developer XS Real Properties, which is known as Renaissance India Hospitality Private Limited, manages hotels and resorts in India.

Brief of Hotel Industry:

The Hospitality Industry in India, hotel industry, is a significant stake holder of the Indian Tourism

Sector. The Government of India has approved 300 hotel projects, nearly half of which are in the luxury range and also estimated that 50 international budget hotel chains are moving to India to stake their turf. Already 281 new hotels are under development and due to open over the next 10 years.

Hospitality Industry in Kerala:

Kerala tourism industry expects to clock 11.6% annual

growth in tourism industry, which is the highest growth rate for any tourist destination in the whole world. The Kerala government has redefined its role to encourage entrepreneurship. Today; it is a catalyst rather than a regulator and promotes a conductive atmosphere for tourism to flourish by organizing. The government supported the entrepreneurs by its smart marketing strategy. It is the only state in India that practiced the ancient health science with dedication, and positioned itself to assure tourists that the rainy season is the best time for rejuvenation.

Identification of Problem:
The major problem facing the RHI is to whether to

open a new hotel in Kochi or not .If opened what are the advantages and disadvantages it will have, and how it can face the competition in the market from the existing ones. The recommended plan from us is that as there is an estimation of developing 5 0r 6 New hotels in Cochin or in Kerala It can develop a new 5-star Deluxe, 5 star &4-star hotels as the total number of rooms available in this category are 2384 and the no of tourists visiting Kerala are increasing at a rate of 10% per year.

Continuation..
The increase in number of hotels and restaurants

has amplified the competition ,and each player is trying to create better brand visibility with their own USPs. Increasing consumer awareness on quality, process, and taste is also making hotels and restaurants to focus more on bets practices and quality standards. Kerala has an acute shortage of rooms in the season, and the shortage is being met by the home stay facilities developed throughout the state.

Recommended Strategies:
Renaissance Hotels and Resorts International

(RHI) can develop its new hotel in Cochin as it has the highest area(94.88 Sq.km)with a population of 12,52,025 by 2011 and estimated population of 13,69,539.Kochi being the industrial and commercial capital of Kerala, the population alone is expected to be 10% per decade.

Departmental Expenses:
We note that the departmental expenses continue to increase as a

percentage of departmental revenue as we go from Five-Star Deluxe to One-Star hotels. The food and beverage expenses are as high as 67% and 69% respectively, for Two and One-Star hotels, as compared to 50-54% for Five-Star Deluxe and Five-Star hotels. The smaller inventories of the lower rated hotels do not permit them to achieve efficiencies of scale in food and beverage operations. As guests use portable phones and even portable internet devices, the use of hotel phones and internet is reducing, making it expensive to provide these facilities. However, these facilities are an important consideration when choosing a hotel, and hence it is necessary to have them in the property.

Market Segmentation:
Distinct

differences are observed in market segmentation across various star categories. The contribution of the domestic business traveller segment increases in the Three-Star hotels as compared to the Five-Star and Five-Star Deluxe, and forms the major constituent of demand for the TwoStar and One-Star hotels, therefore re-affirming the price sensitivity of the domestic traveller, along with its major contribution to hotel demand. Airline and MICE segments contribute largely to the demand for Five-Star and Five-Star Deluxe hotels.

Country of Origin:
The overall constitution of the country of

origin of guests continues to mirror that of the previous years; the UK and USA continue to dominate the overall visitations. This year witnessed increased visitation from Europe.

Statistics:

Foreign Tourist Arrivals

Domestic Tourist Visits:

Cont..

Foreign Tourist Visits:

Cont..

Top 10 states of FTV-2011

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