Hotel Industry : Service Industry

Hotel Industry- Case Study
Presented by:
Aditya Pilkhane, Anurag, Sanjay, Simran, Smriti
and Shikhar
PGDM-B
3/4/2013

Aditya, Anurag, Sanjay, Simran, Shikhar & Smriti

1

Search Quality
The location of the service provider should be apt. A service provider
having high brand value/equity if present near slums, then the
customers might not go to that service provider for taking the service
• Close proximity to:
– Railway Stations/Airport/Bus Stops: Leisure & Business Travelers
– Business/IT Parks: Business Travelers
– Lush Green fields outside/away from the main city: Leisure Travelers
– Shopping Stores/Malls/Sight-Seeing places: Leisure & Adventure
Travelers
• Others:
– Spacious Entrance & Clean
– No street vendors near the hotel
– Strategic Location: Near the sea/hills(good scenery)
– Easily Visible: External Signage
– Reviews on Website, social media, Travel Magazines
3/4/2013


2

Experience Quality
It can be described as the physical evidence of the service provider. The
following are the necessary steps to provide a good first impression to
the consumers:
•
•
•
•
•
•

Good music/soothing music in lobby, lift etc.
Attractive paints on the walls/Painting on the wall
Leather sofas: business travelers
Couch/Bean bags: Adventure/Leisure travelers
Appoint Interior Designers for the rooms, lobby, spas, etc
Fresh/Soothing Air Fresheners

3/4/2013


3

Credence Quality
Aspects of services that cannot be evaluated by a consumer even after
'consumption' but have perceived value.
Just after consuming the service he may be satisfied with the service
however after sometime the consumer may be unsatisfied due to some
reason. So how to address the problem?

TAJ Hotels: National Awards

3/4/2013


4

Credence Quality- Continued
TAJ Hotels: Global Awards

•Reviews on Travel websites & Travel Magazines
•PR Agencies
3/4/2013


5

4 Levels of Product
Potential Service

• Arrangements for Long
Stay
• Complete Personalization

Augmented
Service

• Spa, Massage Center
• Swimming pool
• Meeting Room/Wedding
Arrangements

Expected Service

• 24 hour Room Service
• Cab Facility/Pick up Drop
• Wi-Fi facility

Core Service

3/4/2013

• Luxury Room
• Restaurant/ Various
cuisines


6

Demand & Supply- Problem
• Demand exceeds maximum available capacity: potential business may be
lost (e.g., overbooking of hotels)
• Demand exceeds the optimum capacity level: No customer is turned away,
but quality of delivered service is reduced for all customers (e.g.,
Unsatisfied customers, restaurant where every table is occupied).
• Demand is below optimum capacity and resources are under-utilised.
Hotel allocates a certain percentage of its rooms to different customer
segments during different seasons (charges multiple prices)

3/4/2013


7

Customer Satisfaction
•

•
•

•
•

Loyal Customers: Guest Preferences
Inform them before hand during the Peak season, ask them to pre-book
the rooms.
Loyalty Program: Points Systems, Ask the customers to visit and redeem
the points and get discounts.
Normal Customers: Satisfy them by giving good service whenever they
arrive in the hotel.
To lure them, ask normal customers to enroll for Loyalty Program.
Charge Premium Amount: For enrolling as loyal customers
Expansion: Then go ahead with expansion of the Hotel and increase
capacity.

3/4/2013


8

Product
● Room ● Restaurant and Bar ● Meeting room and Banquet facility
● Lounge

Special Service
● Courier● Child Care ● Laundry ● Travel Desk ● Baby Setting ● Wake up call
● Boutiques ● Spa & Massage Centre ● Currency exchange ● ATM ● Gift Shop

Price
● On basis of Segmentation
i.

Business Class

ii.

Executive Class

iii.

Leisure Travelers

3/4/2013


9

Place
● All Metro Cities ● Tourist Destinations ● Global Location

Promotion
● Promotional schemes are carried on regularly the hotel has many loyalty
programe, club, membership ,privilege.
● Social Media Sites: Facebook, You tube: Exclusive pages (quality)
● Offer Last minute special deals limiting the availability
● Promote through E-Mail
● Advert in Outlook Travel, GO Now and other travel magazines
● Reviews on online travel websites: Trip Advisor, Make my trip etc.
3/4/2013


10

Physical Evidence
● Good Interiors ● Proper Coloring ● Music in lobby & lifts ● Fresh Fragrance

Process
● Check – in ● Bell boy carrying Luggage ● Food ● Wake up Call ●Information
for the breakfast, lunch & dinner menu & timings and any customized menu
● Billing
● Check out

People

● Skilled & Experienced People ● Professionals ● Tech Savvy
● Travel Agents ● Issue of Attrition has to be addressed
● Proper Training time to time – Promotion for employees
3/4/2013


11

Positioning & IMC
Different Segments & Methods of IMC to be adopted:
 Business Travelers: In off peak season, tie up strategic alliances with
corporate for their meetings to be conducted in our hotel.
Promote via- Social Media, Websites, Corporate Seminars, Business &
Travel Magazines
 Wedding Season: Promote via: Matrimony sites, newspapers etc
 Sports Events: Promote via-Sports websites
 Religious Gatherings: Promote via-Word of mouth
 Environment Conscious: ECO Hotels; Promote via- Social Media,
Websites & Travel Magazines
 Value Driven packages: All groups of travelers (Include all the services);
Promote via- Website, strategic alliances with agents etc
 Affordable Positioning: During Peak Season; Promote via- Website, Word
of mouth
3/4/2013


12

Thank You!
3/4/2013


13

Hotel Industry : Service Industry

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