Presented by :Group 4

Abhinav Kumar – 30NMP01

Mehul Kukreti – 30NMP27
Pawan Kumar – 30NMP33
Piyush Kumar – 30NMP34
Umang – 30NMP46
Jimmy Xavier – 30NMP
 THE YOUREKA GROUP
• Youreka Hotel is International luxury chain of
hotels
• Total rooms – 658000
• Presence in 80 countries with 3800 hotels.
• Its first hotel was opened in Delhi in 1968
• In 2014 it had 2267 rooms in 10 cities in India
 YOUREKA Amritsar
ROOMS
• Hotel Rooms contributes for 55% revenue of hotel
• Of 150 rooms divided categorically

Category No. of rooms Room rent

Standard 60 4000
delux 50 6000
Suite 40 8000
F&B
• F&B contributes for 45% revenue of hotel and 60% costs for
department.
• Revenue contributes 2000 per occupied room
 YOUREKA Amritsar
Banquets & Conference rooms:
• One banquet hall with capacity of 300 people
• 03 conference rooms with modern facilities
Restaurants:
• BARN : 250 guests
• BERTA: 130 guests (Italian)
• Barre: 25 guests (hard drinks & high tea)
Other sources of revenue:
• Spa services, telecommunication , laundry, & Transportation
services,
 Fixed Expenses
• 2.3 million (FC for electcity)
• 1.0 million (diesel expenses for generator)
• Property Tax
• Insurance
• Rent
• Franchise cost
• Salaries for staff:
1. Top level employees (heads and GM )
2. Second level employees (engineers, head chefs, etc.)
3. Third level employees (waiters, staff, cooks, etc)
 Variable Expenses
• Marketing expenses
• Variable cost of 700 per occupancy
• Operation & Maintenance
• Departmental Expenses
• Food items:
Dairy products (locally procured)
Vegetables & fruits (within 500 km )
Chicken & Mutton (locally procured)
Seafood (constituted of 50% of items purchased)
Problem ???

•Youreka , Amritsar was unable to achieve

operating breakeven after two years of
operations.

•Average occupancy 31.5% only, losing

rs600000/- per day.
 Findings
• Supplier selection criteria
• Break even point comes to occupancy of 52
rooms per day (On average )
• Is there anything that he could do to make a
difference in the bottom line of the hotel?
• As compared to industry standards admin cost
and energy cost are really high for youreka
group
• Aneesha was hiring level 2 people from metro
cities and increased incentives and provided
accommodation to stop attrition. They should
train local people in their own institute and
employ them in hotel. This will reduce fixed
cost and attrition rate.
• Finding local supplier base for procurement of
vegetables and fixtures
• Comment on Girish’s statement about the location of
the hotel.
• 5-star room ocupants were mainly
• Tourists
• NRI’s
• Industrialist
• Airline crews
• Case says 100000 people per day visits Golden
temple. They have to put effort in marketing
against two competitor only,to convert average
occupancy of 62%(Industry Average) i.e. 93
rooms every day.
 Attributes Disadvantage Opportunity Actions
Target 2% of tourist
Low corporate promotion and
1 Place footfall for 167
footfall advertisement
rooms
Direct - Direct
team, tele, social
network, print,
Conceptualise media, web
Local people not
restaurants into booking,Indirect -
2 Promotion prone to 5-star
foodie spots e.g. Travel
culture
Murthal Agents(direct,
indirect, online),
travel portals,
event planner
5-star material
sourcing costs - Finding local
3 Sourcing
furniture,vegetable supplier base
s and fixtures
Outsource/Contrac
Sea-food
4 Sea food t to cold supply Supplier selection
availability
chain vendors
Incentives + Training of local
5 Human resource Talented workforce Accomodation for people in their own
employees institute
Thank You