Avari Lahore Ramada

Renaissance Hotel

Submitted by: Martina Dubey (MS18A018)

Smriti Vohra (MS18A045)
Mahak Nuwal (MS18A017)
Priya Ramrakhiani (MS18A032)
Kumari Neha (MS18A014)
Current status of the hotel
● Assistant Sales & Marketing Manager - Mr. Tahir Raza Mian.

● Main Competitors - Pearl Continental Hotel, The Nishat Hotel, Heritage Luxury
Suites.

● Current Problem - Average room rate has fallen below that of its competitors.

● After the assessment of the solution, Tahir felt the need to re-evaluate Avari’s
current pricing policy in order to develop a plan to remedy the situation before the
beginning of the new year.
Location - Lahore
● Second largest metropolitan area in Pakistan with population over 10 million.

● It has rich architectural heritage, with a number of old monuments and tombs.

● Shahrah-e-Quaid-i-Azam (the mall) is the primary & most famous road in Lahore.

● Major banks, commercial centres and government offices are located on this road.

● Avari Hotel & Pearl Continental are the only 5 star hotels situated on this street.

● Formation of tax free industrial zone in Chunnian (30 miles from Lahore), has
increased business travel to the city.
Location - Lahore
● Projected GDP growth rate of Lahore is 5.6%.

● It has one international airport - Allama Iqbal International Airport.

● No incoming flights from US & Europe (except London).

● Flights arrive mainly from Asia or the Persian Gulf region.

● Direct flights from Europe & US expected to start soon.

Avari Lahore Hotel
● Owner – Mr. Byram Avari. He has rich experience in hotel business.
● In 1978, he constructed a hotel in Lahore and gave its on-premises contract to the
Hilton chain for 20 years.
● 1984, Avari opened a new hotel in Karachi called Avari Towers which was run under
franchise of Hotel Ramada Renaissance.
● After this, Avari regained the control over the hotel in Lahore and took over its
management after a lawsuit against Hilton.
● He entered a franchise agreement with Ramada Renaissance Hotels.
● Until the end of the agreement in 1994, the hotel was operated under Avari Lahore
Ramada Renaissance hotel and after 1994, it has been operated under Avari Lahore
Hotel.
Avari Lahore Hotel - Features

Location
The Mall, facing the zoological gardens, between the Alhamra Arts council and WAPDA house. It is within
walking distance of the Provincial Assembly, Pakistan Arts Council, and commercial and shopping zones.

Rooms
It has 190 rooms - including 15 suites, 12 junior suites, executive, bridal and presidential suites, studio
& twin rooms.

Room All bedrooms have attached bathrooms, Ac, movie channels, coffee & tea maker, electronic safe
Facilities deposit box, minibar or wi-fi.

Food 6 Restaurants – Japanese, Chinese, Mughal & Persian, BBQ, 24 hrs open buffet & pastry shop.

Other
Functional & Conference rooms for business conventions, large dinners or social occasions. Lawn, mini spa,
gymnasium, jogging track and outdoor pool.
Clientele

Business Walk-in Tour Groups Others

• Constitutes 61% • Frequent • Seasonal. • Non-seasonal
business. Individual • Due to Lahore’s guests.
• Have company travellers (FITs). extreme • Airline crew.
accounts. • Inflow is temperature • Government
• Eligible for seasonal & Arrive in winters officials.
quantity decreases & spring. • Journalists.
discounts. significantly in
summer.
Room Rates & Pricing Policies
● Avari prices its rooms on the basis of demand and competition.

● Rates are revised and adjusted twice a year according to inflation rate.

● Numerous types of rates prevails with its policy of not turning away guests that
come to Hotel.

● There are two types of rates – Individual Rate and Contract Rate.
Individual Rate

Rack Rate Commercial Rate Preferential Rate

• Highest rate offered to • Second highest rate for • Lowest individual rate.
FITs. business clients. • Single room – Rs. 1478
• Single room – Rs. 1806 • Single room – Rs. 1641 • Double room – Rs. 1658
• Double room – Rs. 1986 • Double room – Rs. 1821
• Management tries to
rent rooms at this price
as this raises revenues.
Contract Rate
● A firm can enter into a contract with the hotel & negotiate room prices according to
the number of room nights it is willing to provide the hotel within a given year.

● Interested firm can register with EBS (Executive Business Service) or a VEBS (Volume
Executive Business Service) rate.

● Generally, only multinational & foreign companies enter this category.

● Contract with the company is renewable every year.

● Hotel makes evaluation of the client company every 3-6 months.

● To evaluate whether the client supplied the hotel with promised number of room
nights. The rates are then re-evaluated & adjusted accordingly.
Contract Rate

EBS & Group Rate VEBS Rate Special Rate

• For companies that • For companies that • For Large companies &
provide 75-100 room- ensure at least 200 organizations like United
nights/year and are from room-nights per year. States & Agency for
large conventions. • Single room – Rs. 1020 International
• 30% lower than rack • Double room – Rs. 1200 Development (USAID).
rates. • 45-60% off the rack rate.
• Single room – Rs. 1165 • Few rooms are given at
• Double room – Rs.1345 these rates.
• 250-300 accounts • Only 10-20 such rates.