Hospitality Industry

BY Group 12:
Amrita Singh
Anshuprabha Singh
Manash Verma
Mudit Mathur
Shuvendra Mohanty
 Contents…..
Introduction to Hospitality Industry

Major Players

Market Share

8 P’s Marketing for Hospitality Industry

STP for Hospitality Industry

 Hospitality Industry
Meaning :
Hospitality is the relationship between guest and
host, or the act or practice of being hospitable.

This includes the reception and entertainment of

guests, visitors, or stranger and other services for
travelers and tourists.

InIndia, hospitality is based on the principle Atithi

Devo Bhava, meaning "the guest is God." 
 Hospitality Industry

An Introduction…..
Today, travel and tourism has acquired a significant
place both economically and socially all over the
world.
In India, it has been an integral part of Indian
tradition and culture.
In India tourism was recognized as an industry by
1986.
Tourism includes transportation, accommodation,
food, catering, tourist attraction as well as organizers
like tour operators and travel agents. 
 Hospitality Industry In India
India is one of the biggest Tourism destination
in the world.
43.22 tourists visit India during Jan-Oct 2010.

Foreign exchange earnings from tourism during

January- October 2010 were Rs 51,334 crore
with a growth rate of 21.1%.
 Major Players
Public Sector Players:
ITDC
Hotel corporation of India

Private Sector Players:

ITC Hotels
The TAJ Hotels Resorts & Palaces
Oberoi Hotels
Hotel Leela Palace
Radisson Hotels
 Segmentation
Luxury Segment:
Top Service
Very Expensive
Top Quality Food
Premium Prices

Example : Oberoi Hotels

Continued…
Upscale Segment:
Expensive but cheap as compared to Luxury
segment
Excellent Service
Low standards as compared to Luxury Hotels

Example- ITC hotels

Moderate segment:
Targeting the upper middle class people.
Competes on price and quality
Reasonable price.
Delecate balancing of cost and quality.

Example- Intercontinental hotels

Budget Segment:
Basiclevel quality
Low price
Middle class people
Example- Ginger hotels by Taj Group
 Targeting
Businessmen, CEO & Corporate

Leisure travelers

Foreign tourists

Different income group

 Positioning
High end luxury hotels(Positioning by specific
product or service)

Business hotels(Positioning by product class)

Resorts or leisure hotels

Heritage hotels(Positioning by culture)

Budget or low cost hotels(Positioning by price and

quality)
 8 P’s OF Marketing….

1. PRODUCT: The products are designed to

meet customer and satisfy customer needs. Can
be intangible or tangible.

 Accommodation- Bed, Bedroom etc.

 Food & Beverage

 Business Services- Conference halls, Business

facilities
 Place
Depends upon the type of hotel.

Intermediates can be used to reach the new

customers.

Internet can be used to access the websites of

the hotels.
 Price
Based on the customers and service.
Based on the type of hotel.
Seasonal pricing-
1. Peak season
2. Off season
3. Shoulder season
 Type of hotel
 Value for money
 Competition based
 Promotion
Personal selling

Print Media

Public Relations

Sponsorship of events

Website design
 Physical Evidence
Tangible :
Exterior layout- Building structure, signage
Interior layout- Furniture, Décor
Staff uniform
Logos, Banners

Intangible:
Ambiance
Atmosphere
 Process
Processes through consumer buys and consumes the product or
service.

Customer plans a trip

Make booking- online or in personal

Physically goes to a hotel or resort

Checks in

Make a stay and checks out

Experiences he service and the quality offered which is intangible.

 People

Customers ( Guests, Tourists, Travellers)

Employees (Extensively labor intensive)

Intermediates- Travel agents, Guides

 SWOT Analysis
Strengths:

Wide range and variety of hotels

There are international players in the market such as Taj

and Oberoi & International Chains. Thus, the needs of
the international tourists travellers are met while they are
on a visit to India.

Manpower cost is cheap in India

Wide range of tourist destinations therefore, demand pull

strategy already exists.
 Weakness
Capital investment is huge.

The hotel industry in India is heavily staffed. This can

be gauged from the facts that while Indian hotel
companies have a staff to room ratio of 3:1, this ratio
is 1:1for international hotel companies.

High taxes rate

Rooms not sufficient to meet the overall demand.

Services offered are still limited.

 Opportunity
Demand between the national and the inbound
tourists can be easily managed due to difference in
the period of holidays. For international tourists
the peak season for arrival is between September
to March when the climatic conditions are suitable.

Big players entering the market so supply can be

increased.

Diversityin types of hotels which gives unique

experience.
 Threat
Guest houses replace the hotels. This is a
growing trend in the west and is now catching
up in India also, thus diverting the hotel
traffic.

Directimpact of any political, economic

changes in the world on the tourism industry.

Lackof political in stablity in many states is

hampering the hospitality industry.