an analysis on hotel industry in india

8/9/2019 an analysis on hotel industry in india

http://slidepdf.com/reader/full/an-analysis-on-hotel-industry-in-india 1/81

Introduction

Significant developments in the field of transportation, sophistication in communication,

growing importance of sophisticated information technologies in world business world,

emerging corporate culture, changing lifestyles etc. paved copious avenues for the

development of hotel industry world over. The officials on deputation, the business

magnets on trade promotion mission, the foreign representative on peace mission, the

domestic or foreign tourists interested in visiting a place for pleasure or for enriching the

knowledge bank, the international events etc. are some of the important reasons for the

development of hotel industry.

The growing significance of managerial proficiency in the hotel industry made possibleinnovations in the marketing decisions of the hotel industry. Today, the services are

planned, controlled, automated, audited for maintaining and controlling the quality. The

concept of total quality management is found to be getting an important place in

marketing management of hotels. Of late, the organizations engaged in the hotel business

are required to conceptualize modern marketing principles. This makes it essential that

they formulate a sound marketing mix that makes possible an optimal development of the

marketing recourses and makes the process of development cost effective. Like other

industries the hotel industry also needs to explore avenues for innovation, so that a fair

blending of core and peripheral services is made possible. The latest developments in the

field of promotion have paved avenues for the introduction of innovative and aggressive

promotional measures. The advertising, publicity, sales promotion, word of mouth

promotion, personal selling and even telemarketing have been found used in the process

of promoting the hotel business.



HOTEL -THE CONCEPT

At the outset, we go through the concept of hotel. The common law says that he hotel is

the place where all who conduct, themselves properly and who being able and ready to pay for their entertainment accommodation and other services including the boarding like

a temporary home. It is a home away from home where all modern amenities and

facilities are available on a payment basis.

The aforesaid viewpoints regarding the hotels clarify that a hotel is a public place

where all possible facilities are made available to a person or persons who stay. The

facilities like food, entertainment, accommodation, etc. thus are the core services of

hotels. It is also considered to be a large city house of distinction and a utility product for

tourists.

The American concept regarding the hotel considers it a place for business to

gather. Further it also considers to a place where tourists stop, ceases to be travelers and

become customers. The definition presented by hotel authorities to the National Recovery

Administration in Washington is found to be more comprehensive definition, presented

by Stuart Mc Namara. The definition says, “Primarily and fundamentally, a hotel is an

establishment which supplies boarding and lodging not engaged in inter state commerce

or in any intra state commerce, competitive with or affecting interstate commerce. It is

quasi domestic institution retaining from its ancient and origin certain traditions and

acquiring in its own modern development, certain statutory rights and obligations to the

public where all persons not qualified by conditions or conduct are prepared to pay for

their accommodation are to be received and furnished with a room or place to sleep or

occupy if such accommodations are available with such services and attention as are

incident to their use with or without contract as to duration of visit and which conducts

within the confines of its physical locations the business of supplying personal services of

individuals for profit”.



HOTEL MARKETING- THE CONCEPT

The key points of difference in the hotel marketing as against other consumer products

are that once customer has spent money in hotels, he/she has nothing substantial to showfor his/her money except the bills, as compared with buying a television or a refrigerator.

Effective marketing and dynamic selling become significant in the context of the hotel

marketing because once you have not sold a seat in a restaurant or a room in a hotel, the

income is lost and lost for ever. A hotel bedroom or restaurant seat has no shelf. For

marketing hotel services, it is essential that marketing be understood fully by the

executive at the top of a hotel group with total commitment on his part to the continuous

need to market. A number of experts have gone through the concept of hotel marketing as

summarized below:

Gerry Draper

“Ascertaining consumer needs, tailoring the product as closely as possible to meet

those needs, persuading the customers to satisfy his needs and finally ensuring that the

product is easily accessible when the customer wishes to purchase it.”

The definition of hotel marketing consists of almost all aspects, right from ascertainingcustomer needs to getting the customers satisfaction.

Anerson & Lembke

“We believe that the real meaning of marketing is listening to the demands of the

market and satisfying these demands at a profit, from that it follows that superior

marketing is listening to the market more intently than your competitors and satisfying

the demands more effectively.”

This definition concentrates on creating the demand and satisfying the customers.

Further, it emphasizes on the formulation of competitive strategies for excelling the

competition



MARKETING POLICY

The major difference in marketing hotel services as against other consumer products, is that after a customer has spent money in hotels, he/ she has nothing

substantial to show except bills for his/ her money as benefits as compared with buying

tangibles, such as television and refrigerator. But if the rooms of a hotel remain vacant, it

is unlikely that the same can be sold next day. While selling the hotel services, we cover

the limited areas but while marketing the hotel services, we find unlimited areas. If we

talk about marketing the hotel services, we include in its purview everything and almost

all the dimensions directly or indirectly helping in promoting the business and this

necessitates formulation of a sound marketing mix, such as an aggregation of different

submixes like product, promotion, pricing, place and people. We manage services, we

manage promotional activities, we manage pricing, we manage distribution process and

we manage people serving as hotel personnel.



USERS OF HOTELS IN GENERAL

In marketing hotel services, it is important to know about the different types of usersavailing the services with diverse aims and objectives. This would ease the task of

marketers specially while studying the behavioral profile. In figure we find classification

of different categories of domestic and foreign users.

USERS OF HOTEL SERVICES

DOMESTIC;PILIGRIMS,STUDENTS,OFFICIALS,FILM STARS,INTELLECTS,SPORTSMEN,BUSINESS EXECUTIVE,TOURISTS

FOREIGN;POLITICAL REPRESENTATIVES,TRADE REPRESENTATIVES,EDUCATIONISTS,TOURISTS,SPORTSMEN,PLIGRIMS,

BUSINESS EXECUTIVES,CULTURAL REPRESENTATIVES.



USERS OF HOTEL INDUSTRY

Domestic Users:

In the group of domestic users, the different categories are the pilgrims visiting the sacred

places, students on educational tours, officials on deputation, political representatives,

film stars on locational shooting, etc. The hotel users stay in hotels with different

motives. We find the change in domestic users. Generally the domestic customers pay

less attention on value and more on price. A majority of domestic users are found price

sensitive and therefore the hoteliers are suppose to make pricing decisions motivational.

Foreign Users:

In the group of foreign users we find political representatives on peace mission, trade

representatives on business promotion, educationists, sportsmen, cultural representatives,

film stars, etc. These categories of foreign tourists visit hotels with diverse aims and

objectives. They normally prefer to stay in the classified hotels where the services are

found standardized. We also find cases where foreigners stay even in unclassified hotels.

To be more specific the existing world wide economic depression has made even the

foreign users sensitive to price and this makes it significant that policy makers and the

senior executive assign due weightage to this new development.

The main thing in this process is to study the levels of expectations of both the categories

of users that the marketers find it convenient to undertake an in depth study of their

changing behavior profile, which would help them substantially in developing the

marketing resources and formulating a sound product folio. The formulation and

innovation of market decisions would be made easier when we are well aware of the

emerging trends in the behavioral profiles.



KEY CONSUMER SEGMENTS

The Business Traveler

He is the businessman or a corporate executive. This segment includes corporates, who

open offices in the hotel premises during start-ups; corporate executives who make

extended stay either for long duration projects or while waiting for permanent

accommodation (primarily expatriates) and convention arrivals. While the senior

executives usually stay in 5 star hotels, the middle level executives, who are much larger

in number, stay in the budget hotels. This segment offers better realizations as they

demand relatively smaller discounts on room rents (about 10-15%), use more of facilities

such as PCs, fax multi-media, conference halls and also the F&B revenues are better as

they usually eat in the hotel itself due to their busy schedules. This segment is highly

dependent upon the general economic scenario in the country.

The Leisure Traveler

He could either be a foreigner or a domestic traveller. Usually leisure travellers are part

of a package run by a tour operator. The margins offered by leisure travellers tend to be

lower because of two reasons. Firstly, they seek higher discounts (about 25%) and

also provide less F&B revenues as they usually eat out. The leisure travellers (especially

the domestic vacationers) generally stay in budget hotels rather than in 5 star hotels. The

business offered by this segment is highly seasonal and tends to peak in the September to

March period.



Airline Cabin Crews

They form another important segment because of the repetitive and guaranteed nature of

the business that they provide. Usually these are a part of an annual contract, whereby in

return for a fixed rate, a certain number of rooms are provided on demand for cabin

crews. The usual discount rates are 40-50%.

Luxury Travelers

According to senior officials in an international hotel chain, luxury travellers have

particular requirements and are people with time and money for their holidays. They are

not group travellers, seek qualitative experiences and demand personal and confidential

service

Special Travelers

This is the class of people who are in the hotel due to a special reason such as

government officers who need accommodations while traveling or celebrities such as

movie stars or models or sports people such as cricketers require accommodations when

they have some special international or domestic events taking place in the city or

country. These guest have to be accommodated with the best of services and securities.

The services are charged very high rates as the expected service by this segment is far

above the expectation of people coming under the luxury class. In this case the hotel gets

a lot of publicity and the payment is made by the person who is hosting the event



STAR CLASSIFICATION OF HOTELS

The department of Tourism classification functioning hotels under the star system, intofive categories from 1-star to 5-star for this purpose a permanent Committee. The Hotel

and Restaurant Approval and Classification Committee (HRACC) has been set up whichinspects the applicant hotels to assess their suitability or otherwise for award of the star category and are placed on the approved list of the Department. Approved hotels becomeeligible to various fiscal relief and benefits. The department intercedes on behalf of suchhotels whenever necessary to ensure that their needs get priority consideration fromvarious concerned authorities. These hotels also get worldwide publicity through touristliterature published by the Department of Tourism and distributed by the Government of India Tourist Offices in India and abroad. Approved hotels become eligible for foreignexchange for their import of essential equipment and provisions and for their advertising, publicity and promotion under the Hotel Incentive Quota Scheme.

To be eligible to apply for classification hotel must fulfill the following

minimum basic requirements:1. The Hotel must have at least 10 let table bedrooms.2. Carpet areas in respect of rooms and areas of bathroom should by and

large adhere to the following limits:-

Categories of Hotel Area standard for

bedrooms/bathrooms

• 5 Star/5 Star Deluxe HotelsSingle -Double -Bathrooms -

180 sq.ft.200 sq.ft.45 sq.ft.

• 4 Star & 3 Star HotelsSingle A/C andSingle Non A/C -

Double A/C andDouble Non A/C -

Bathrooms -

120 sq.ft.

140 sq.ft.(Extra area may be provided if twin beds are to be provided)

36 sq.ft.

• 2 Star & 1 Star Hotels

Single A/C andSingle Non A/C -

Double A/C andDouble Non A/C -

100 sq.ft.

120 sq.ft.(All rooms should have proper ventilation And ceiling fans)



Bathrooms - 30 sq.ft. Or subject to local bye-laws

Failure to satisfy these conditions will disqualify a hotel for consideration.

These general features,facilities and services expected of hotels in differentstar categories are broadly described below:

FIVE STAR CATEGORY

General features: The façade, architectural features and general construction of the hotel building should have distinctive qualities of a luxury hotel of thiscategory. The locality, including the immediate approach and environments,should be suitable for a luxury hotel of this category and there should beadequate parking space for the car. The hotel should have at least 25 le tablerooms, all with attached bathrooms with long bath or the most modern shower chambers. All public rooms and private rooms should be fully air-conditionedand should be well equipped with superior quality carpets, curtains, furniture,

fittings, etc. in good taste. It would be advisable to employ the services of professionally qualified and experienced interior designers of repute for this purpose. There should be an adequate number of efficient lifts in the building of more than two storeys (including the ground floor), with 24 hrs. service. Thereshould be a well-designed and properly equipped swimming pool.

Facilities: There should be a reception; cash and information counter attended byhighly qualified , trained and experienced personnel and conference facilities inthe form of one or more conference rooms, banquet hall and private dining

rooms. There should be a bookstall, a beauty parlor, barbershop, recognizedtravel agency, florist and a shop for toilet requisites and medicines on the premises. There should a telephone in each room and a facility of radio or relayedmusic in each room. There should be a well-equipped, well-furnished and a well-maintained dining room, restaurant on the premises and whenever permissible bylaw, there should be an elegant, well-equipped bar/permit room. The pantry andcold storage should be professionally designed to ensure efficiency of operationand should be well equipped.

Services: The hotel should offer both Indian and International cuisine and thefood and beverage service should be of high standard. There should be professionally qualified, efficient and courteous staff in smart, clean uniforms.The staff coming in contact with the guests should understand English. Thesupervisory staff knowing at least one continental language should be rotated onduty at all times. There should be 24 hrs services for reception, information andtelephones. There should be provision for laundry and dry cleaning services.Housekeeping at the Hotel should be of highest possible standard and there



should be plentiful supply of linen, blankets, towels, etc., which should be of thehighest quality available. Each bedroom should be provided with a good vacuum jug thermos flask with ice cold, boiled drinking water except where centrallychilled purified drinking water is provided. There should be special restaurant/dining room where facilities for dancing, orchestra are provided.

FOUR STAR CATEGORY:

General Features: The architectural features and general construction of the building should be distinctive and the locality including the immediate approachshould be suitable for a hotel of this category. There should be adequate parkingfacilities for cars

.

The hotel should have 25 let table rooms all with attached bathrooms. Atleast 50 % of bathroom must have long baths of the most modern shower chambers, with 24 hrs service of hot and cold running water. All public areas and private rooms should be well furnished with carpets, curtains, furniture, fittingsetc. in good state. It would be advisable to employ the services of professionallyqualified and experienced interior designer of repute of this purpose. Thereshould be an adequate number of efficient lifts in building of more than twostoreys (including ground floor). There should be well-appointed lobby andladies, gents cloak rooms equipped with fittings and furniture of the higheststandard.

Facilities: There should be a reception, cash and information counter attended by, trained and experienced personnel. There should be bookstall, recognizedtravel agency, money changing and safe deposits facilities and a left luggageroom on the premises. There should be a telephone in each room and provisionfor a radio or relayed music in each room. There should be a well-equipped, well-furnished and well-appointed dining room/restaurant on the premises and whereever permissible by law, there should be an elegant and well-equipped bar/permitroom. The kitchen, the pantry, cold storage should be professionally designed toensure efficiency of operation and should be well equipped.

Service: The hotel should offer both International and Indian cuisine and thefood and beverage service should be of highest standard. There should be professionally qualified, efficient and courteous staff in smart, clean uniforms,The staff coming in contact with the guests should understand English. It will bedesirable for some of the staff to possess the knowledge of foreign language and



staff knowing at least one continental language should be rotated on duty at alltimes. There should be 24 hrs services for reception, information and telephones.There should be provision for reliable laundry and dry cleaning services.Housekeeping at the hotel should be of the highest possible standard and thereshould be plentiful supply of linen, blankets, towels, etc., which should be of

highest quality available. Each bedroom should be provided with a good vacuum jug thermos flask with ice cold, boiled drinking water except where centrallychilled purified drinking water is provided. There should be specialrestaurant/dining room where facilities for dancing, orchestra are provided.

THREE STAR CATEGORIES:

General features: The architectural features and general construction of the building should be of a very good standard and the locality including theimmediate approach should be suitable for very good hotel of this category.There should be adequate parking facilities for cars. The hotel should have atleast 20 let table rooms all with attached bathrooms with bathtubs and/or showers. The bathrooms should be with hot and cold running water. At least 50% of the rooms should be air-conditioned and the furniture and furnishings suchas carpets, curtains, etc., should be of a very good standard and design. Thereshould be adequate number of lifts in the building more than two storeys

(including the ground floor). There should be a well appointed lounge andseparate ladies and gentlemen's cloak room equipped with fittings of a goodstandard.

Facilities: There should be a reception and information counter attended byqualified staff, and a bookstall, recognized travel agency, money changing andsafe deposit facilities on the premises. There should be a telephone in each roomexcept in seasonal hotels where there would be a call bell in each room and atelephone on each floor for the use of the hotel. There should be well equipped

and well-maintained Air- conditioned dining rooms/ restaurant and where permissible by law, there should be a bar/permit rooms. The kitchen, pantry andcold storage should be a clean organized for orderliness and efficiency.

Service: The hotel should offer good quality cuisine both Indian as well ascontinental and the food and beverage service should be of a good standard.



There should be a qualified, trained, experienced, efficient and courteous staff coming in contact with the guests should understand English. There should be a provision for laundry and dry cleaning service. Housekeeping at the hotel should be of a very good standard and there should be adequate supply of linen, blankets, towels, etc., of good quality. Similarly, cutlery, crockery, glassware

should be of a good quality. Each bedroom should be provided with vacuum jug/thermos flask with cold, boiled drinking water. The hotel should provideorchestra and hall room facilities and should attempt to present speciallychoreographed Indian Cabaret.

TWO STAR CATEGORIES

General features: The building should be well constructed and the locality andenvirons including the approach should be suitable for a good hotel. The hotelshould be at least 10 let table bedrooms of which at least 75 % should have

attached bathrooms with showers and a bathroom for every four of the remainingrooms and should be with modern sanitation and running cold water withadequate supply of hot water, soap and toilet papers. 25 % of the rooms should beair-conditioned (where there should be heating arrangements in all the rooms)and all rooms must be properly ventilated clean and comfortable with all thenecessary items if furniture. There should be a well-furnished lounge.

Facilities: There should be a reception counter with a telephone. There should bea telephone or call bell in each room and has a separate telephone. There should be a well maintained and well-equipped dining room/restaurant serving good,

clean wholesome food and a clean, hygienic and well-equipped kitchen and pantry.

Service: There should be experienced, courteous and efficient staff in smart andclean uniforms. The supervisory staff coming in contact with guests shouldunderstand English. There should be provision for laundry and dry cleaningservices. Housekeeping at the hotel should be of good standard and good qualitylinen, blankets, towels etc., should be provided. Similarly, crockery. Cutlery andglassware should be of a good quality.

ONE STAR CATEGORY:

General features: The general construction of the building should be good andthe locality and environs, including immediate approach should be suitable. The



hotel should have at least 10 let table bedrooms of which at least 25 % shouldhave attached bathrooms with a bathroom for every 4 of the remaining rooms. Atleast 25 % of the bathrooms should have western style WCs. All bathroomsshould have modern sanitation and running cold- water with adequate supply of hot water, soap and toilet paper. The rooms should be properly ventilated and

should have clean and comfortable bed and furniture.

Facilities: There should be a reception counter with a telephone and a telephonefor the use of the guests and visitors. There should be clean and wholesome foodand there should be a clean well equipped kitchen and pantry.

Services: There should be experienced, courteous and efficient staff in smart and

clean uniforms and senior staff coming in contact with guests should possessworking knowledge of English. Housekeeping at the hotel should be of a goodstandard and clean and good quality linen, blankets, towels etc., should besupplied. Similarly, crockery cutlery and glassware should be of good quality.

A classification fee at the following rate is payable by the hotels supplying for classification:

STAR CATEGORY Amount in Rs

One star 6000/-Two star 8000/-

Three star 10000/-

Four star 15000/-

Five star 20000/-

Five star deluxe 25000/-

Heritage 15000/-

The classification fee is payable by means of demand draft drawn in favour of thePay & Accounts Officer, Department of Tourism, New Delhi. For Re-classification, fee will be 50 % of the above fee.

The application of One, Two and Three star category of Hotels should be addresses to The Regional Director, Government of India Tourist Office, M.Karve road, Mumbai 400 020. Where as the applications for Four, Five and FiveDeluxe category hotels should be addressed to The Assistant Director (Hotels),Department of Tourism, Government of India C.I Hutments, Dalhousie Road, New Delhi, 110011.



For each of these categories of star classification the hotel have to fulfillthree classes of criteria, E-Essential, N-Necessary, D-Desirable. For each of thesecriteria there are maximum marks-alloted.

Guidelines of classifications of hotels.

Government of India,

Department of Tourism

(H & R Division)

Hotels are an integral part of a tourist's visit to a place and the services offered by themcan make or mar a visit completely. With the aim of providing standardized, world classservices to the tourists, the Government of India, Department of Tourism has a voluntaryscheme for classification of fully operational hotels in the following categories:-

1. Star Hotels:- 5 Star Deluxe, 5 Star, 4 Star, 3 Star, 2 Star & 1 Star

2. Heritage Hotels:- Heritage Grand, Heritage Classic & Heritage

The Hotel & Restaurant Approval & Classification Committee (HRACC) inspects andassesses the hotels based on facilities and services offered.

Project approvals are also given in all the above-mentioned categories at the projectimplementation stage.

Classified hotels/approved projects are eligible for various concessions and facilities thatare announced by the Government from time to time besides, getting worldwide publicitythrough the Indiatourism Offices located in India and abroad.

Details of the criteria set and the documents required are given in this document

For classification and project approvals in the 5 Star Deluxe, 5 Star, 4 Star and all thethree Heritage categories the applications along with the requisite fees may be sent to:-

Member Secretary (HRACC)/Hotel and Restaurants Division,

Department of Tourism, Government of India,

C-1 Hutments, Dalhousie Road, New Delhi 110011.

For classifications and project approvals in the 3 Star, 2 Star and 1 Star categories theapplications along with the requisite fees maybe sent to the Regional Director,Indiatourism Office in whose region the hotel/project is located:

1. Regional Director,Indiatourism,





3. Copy of Land Use Permit from local authorities

4. Distances from Railway station, airport, main shopping centers (inKms)

vii. Details of the project

1. Copy of feasibility report.2. Star category planned

3. Number of rooms and area for each type of room (in sq.ft.)

4. Number of attached baths and areas (in sq.ft.)

5. Details of public areas - Lobby/lounge, restaurants, bars, shopping, banquet/ conference halls, health club, swimming pool, parkingfacilities.

6. Facilities for the physically challenged persons.

7. Eco-friendly practices and any other additional facilities (pleaseindicate area in sq.ft for each facility mentioned above at 5,6 &7)

8. Date by which project is expected to be completed and operational.

viii. Blue prints/ sketch plans signed by owners and architect showing

1. Site plan

2. Front and side elevations

3. Floor plans for all floors

4. Detail of guest room and bath room with dimensions in sq.ft.

5. Details of Fire Fighting Measures/ Hydrants etc.

6. Details of measures for energy conservation and water harvesting.

ix. Air-conditioning details for guest rooms, public areas

x. Local approvals by

1. Municipal authorities

2. Concerned Police Authorities

3. Any other local authority as maybe required.

4. Approval /NOC from Airport Authority of India for projects locatednear Airports

The above mentioned approvals/NOCs are the responsibility of the promoters/concerned company as the case may be. The Department'sapproval is no substitute for any statutory approval and the

approval given is liable to be withdrawn in case of any violationswithout notice.

xi. Proposed capital structure

1. Total project costa. Equity component with details of paid up capitalb. Debt - with current and proposed sources of funding

xii. Letter of acceptance of regulatory conditions.



xiii. Please indicate whether the promoter intends to give a few rooms or allrooms on a time- share basis.

xiv. Application Fee

5. In the event of any changes in the project plans, the approval must be sought afresh.

6. Authorized officers of the Department of Tourism should be allowed free access toinspect the premises from time to time without prior notice

7. The hotel must immediately inform the Department of the date from which the hotel becomes operational and apply for classification within 3 months of this date.

8. The fees payable for the project approval and subsequent extension, if required areas follows. The demand draft maybe payable to "Pay & Accounts Officer,Department of Tourism, New Delhi".

Star Category Amount in Rs.

5- Star 15,0004- Star 12,000

3- Star 8,000

2 -Star 6,000

1- Star 5,000

Heritage Category 12,000

9. The promoters must forward regular progress reports for each quarter failing whichthe project approval would be considered withdrawn.

10. All documents must be valid at the time of application and a Gazette officer or

Notary must duly certify copies furnished to the Department. Documents in locallanguages should be accompanied by a translation in English/official language and be duly certified.

11. Projects, where it is proposed to let out part or whole of the hotel on time share basis will not be eligible for approval.

12. For any change in the category the promoters must apply afresh with a freshapplication form and requisite fees for the category applied for.

13. Any changes in the project plans or management should be informed to the,Department of Tourism/Regional Directors Office (For 3,2 &1 Star categories) (for 5-D, 5, 4 Star and Heritage categories) within 30 days otherwise the approval willstand withdrawn/terminated.

14. Applicants are requested to go through the checklist of facilities and servicescontained in this document before applying.

15. Incomplete applications will not be accepted.

16. The Govt. India Department of Tourism reserves the right to modify theguidelines/terms and conditions from time to time

Hotel Classification/Reclassification



1. Classification for newly operational hotels must be sought within 3 months of completion of approved hotel projects. Operating hotels may opt for classificationat any stage. However, hotels seeking re-classification should apply for reclassification one year prior to the expiry of the current period of classification.

2. If the hotel fails to reapply 1 year before the expiry of the classification order, the

application will be treated as a fresh classification case.3. Once a hotel applies for classification/ re-classification, it should be ready at all

times for inspection by the HRACC. No requests for deferment of inspection will be entertained.

4. Classification will be valid for 5 (Five) years from the date of issue of orders or incase of reclassification from the date of expiry of the last classification providedthat the application has been received within the stipulated time mentioned above,along with all valid documents. Incomplete applications will not be accepted.

5. Hotels which propose to let out part of or all its rooms on time-share basis are noteligible to be classified

6. Hotels applying for classification must provide the following documentation.Application Form detailing

i. Name of the hotel

ii. ii. Name and address of the promoters/owners with a note on their businessantecedents

iii. iii. Complete postal address of the hotel with tel. no/fax/email

iv. iv. Status of the owners/ promoters

1. If Public/ private limited company with copies of Memorandum andArticles of Association

2. If Partnership, a copy of partnership deed and certificate of registration

3. If proprietary concern, name and address of proprietor/certificate of registration.

v. Date on which the hotel became operational.

vi. Details of hotel site with postal address and distance from Airport/RailwayStation/City Center/Downtown shopping area (in kms)

vii. Details of the hotel

1. Area (in sq. meters) with title - owned/ leased with copies of sale/ leasedeed

2. Copy of Land Use Permit from local authorities

3. Star category being applied for 4. Number of rooms and area for each type of room in sq.ft.

(single/double/suites)

5. Number of attached baths

6. Details of public areas - Lobby/lounge, restaurants, bars, shopping area, banquet/ conference halls, health club, swimming pool, parkingfacilities, facilities for the physically challenged persons, Eco-friendly



practices and any other additional facilities. The area for each facilityshould be indicated in sq.ft

7. Detail of guestroom and bathroom with dimensions in sq.ft.

8. Details of Fire Fighting Measures/ Hydrants etc.

9. Details of measures for energy conservation and water harvesting andother Eco- friendly measures and initiatives.

10. Air-conditioning details for guest rooms, public areas

viii. Certificates/No Objection Certificate's (attested copies)

1. Certificate/ licence from Municipality/ Corporation to show that your establishment is registered as a hotel

2. Certificate/ licence from concerned Police Department authorizing therunning of a hotel

3. Clearance Certificate from Municipal Health Officer/ SanitaryInspector giving clearance to your establishment from

sanitary/hygienic point of view4. No Objection Certificate with respect to fire fighting arrangements

from the Fire Service Department (Local Fire Brigade Authorities)

5. Public liability insurance

6. Bar Licence (necessary for 4*, 5* & 5*-D only)

7. Money Changers Licence (necessary for 4*,5*& 5*-D only)

8. Sanctioned building plans/occupancy certificate

9. If classified earlier, a copy of the earlier "Certificate of Classificationissued by Department of Tourism

10 For Heritage property, certificate from the local authority stating age of the property and showing new and old built up areas separately.

11. Any other local authority as maybe required.

12. Approval /NOC from AAI for projects located near Airports

13. Please indicate whether a few rooms or all rooms are to be let out on atime-share basis.

14. Application fees

The above-mentioned approvals/No Objection Certificates are theresponsibility of the Owners/promoters/concerned Company as the case may be. The Department's approval is no substitute for any statutory approval and

the approval given is liable to be withdrawn without notice in case of anyviolations or misrepresentation of facts.

7. All applications for classification or re-classification must be complete in allrespects - application form, application fee, prescribed clearances, NOCs,certificates etc. - incomplete application is liable to be rejected.

8. Hotels will qualify for classification as Heritage hotels provided a minimum 50% of the floor area was built before 1935 and no substantial change has been made in thefacade. Hotels, which have been classified/, re-classified under Heritage categories



prior to issue of these Guidelines will continue under Heritage categories even if they were built between 1935-1950.

9. The application fees payable for classification/reclassification are as follows. Thedemand draft maybe payable to "Pay & Accounts Officer, Department of Tourism, New Delhi".

Star Category Classification/Reclassificationfees in Rs.

1-Star 6,000

2-Star 8,000

3-Star 10,000

4-Star 15,000

5- Star 20,000

5-Star Deluxe 25,000

Heritage

(Grand, Classic & Heritage categories)

15,000

10. The classification committee will consist as follows

i. For 4*, 5* and 5*Deluxe and Heritage category - Chaired by Chairman(HRACC) or his representative. Representatives from FHRAI/ HAI/ IATO/TAAI/ IHM /RD/local India tourism office/Director(T) of the concerned StateGovt. or his representative (who should be a Gazetted officer) /Member Secretary will constitute the other members of the Committee. In case of Heritage category, a representative of IHHA will be a member of thecommittee.

ii. For 1*, 2* & 3*, the committee will be Chaired by Secretary (T) of the

concerned State Govt. or his nominee who should not be below the rank of aDeputy Secretary to the Government of India. In his absence the RegionalDirector, India tourism who is also Member Secretary, Regional HRACC willchair the committee. The recommendations will be sent to HRACC Division(Department of Tourism, Government of India) within 3 weeks. Other members will be representatives from FHRAI/ IATO/ TAAI/ IHM.

iii. The Chairman and any 3 members will constitute a quorum

iv. The minutes will be approved by the Chairman (HRACC).

v. In case of any dissatisfaction with the decision of HRACC the hotels mayappeal to Secretary (T), Government of India for review and reconsiderationwithin 30 days of receiving the communication regarding classification/

reclassification. No requests will be entertained beyond this period.

11. Hotels will be classified following a two stage procedure

i. The presence of facilities and services will be evaluated against the enclosedchecklist.

1. New projects will be required to adopt environment friendly practicesand facilities for physically challenged persons.



2. Existing hotels being classified will need to conform to a phased planfor adding Eco-friendly practices and facilities for physicallychallenged persons, which should be completed by 31st December,2003.

ii. The quality of facilities and services will be evaluated against the mark sheet

12. The hotel is expected to maintain required standards at all times. The ClassificationCommittee may inspect a hotel at any time without previous notice. The Committeemay request that its members be accommodated overnight to inspect the level of services.

13. Any deficiencies/ rectification pointed out by the HRACC must be complied withwithin the stipulated time, which has been allotted in consultation with the hotelrepresentatives during inspection. Failure to do so will result in rejection of theapplication.

14. The committee may assign a star category lower but not higher than that appliedfor.

15. The hotel must be able to convince the committee that they are taking sufficientsteps to conserve energy and harvest water, garbage segregation, anddisposal/recycling as per Pollution Control Board (PCB) norms and following other Eco-friendly measures.

16. For any change in the star category/heritage category the promoters must applyafresh with a fresh application form and requisite fees for the category applied for.

17. Any changes in the plans or management of the hotel should be informed to theHRACC, Govt. of India, Department of Tourism within 30 days otherwise theclassification will stand withdrawn/terminated.

18. Applicants are requested to go through the checklist of facilities and services

contained in this document before applying.19. Incomplete applications will not be considered. All cases of classification would be

finalised within three months of the application being made.

20. The Govt. India Department of Tourism reserves the right to modify theguidelines/terms and conditions from time to time

Format for Undertaking

To,The Secretary (T)Govt. of India,



Department of Tourism New Delhi.

UNDERTAKING

I have read and understood all the terms and conditions mentioned above with respect to project approval/classification/reclassification in 1/2/3/4/5/5-D/Heritage category andhereby agree to abide by them. The information and documents provided are correct andauthentic to the best of my knowledge.

Signature and name in block lettersSeal of the applicantPlace:Date:

GOVERNMENT OF INDIA

DEPARTMENT OF TOURISM

(H & R Division)

C-1, Hutments,Dalhousie Road, NEW DELHI

Tel: 011-3014581Fax: 011-3011518 No.6-HRACC (1)/20006th February, 2003

To1. Secretary General, FHRAI2. President, HAI



3. President, IHHA

Sir,

With a view of improving standards and creating awareness, the Govt. of India,

Department of Tourism has decided to include some measures to encourage eco-friendly practices and facilities for the physically challenged persons as a necessary requirementfor all approved projects and classified hotels. These have been included in the revisedguidelines, which would come into effect shortly. The details of these are as follows:-

I. Eco-Friendly Practices

Energy Conservation: It is necessary that all star category hotels should haveenergy conservation lamps. The use of solar energy, timers etc. is desirable.

Water Conservation: Water saving taps and showers are necessary for 5-star and5-star deluxe hotels and desirable for 1-star to 4-star category and Heritage

hotels. Waste Management: Solid waste management and recycling of garbage should

be undertaken. Garbage should be segregated into wet and dry separating thatwhich can be re-cycled or re-used. It is necessary that the wet garbage areasshould be airconditioned for 3 to 5 Star deluxe categories and desirable for 1 and2 star hotels.The aim should be to achieve a "zero garbage policy" by utilizing allthe organic waste.

Other Desiarable Measures:

The use of plastic should be discouraged. Efforts for water conservation should be made by incorporating dual system

flushing options for liquid and solid wastes, etc. Efforts to harvest rainwater should be made. Pollution control methods for air, water, sound & light should be incorporated.

Sewerage Treatment Plants (STP)'s should be installed. Non CFC refrigeration and Air-conditioning. Efforts should be made for greening of the hotel's surroundings. Installing timers in areas where lights tend to be left on. Guest key linked light and A/C activation Thermostat regulators in rooms General awareness about Eco-friendly practices should be made by training the

staff. Hotels may refer to the PATA handbook on Eco-tourism & Environment or other

similar publications for details.



II. Facilities for physically challenged persons

At least one room should be equipped for physically challenged persons. This isnecessary for all 4, 5 and 5 -Deluxe category hotels and desirable for 1 to 4 star category hotels.

At least one telephone in the lounge or seating area in the lobby should be placedat no higher than 24" from the floor. This is necessary for 5-Star and 5-Star deluxe hotels, it would be desirable for all classified hotels to have this facility.

The public rest rooms for ladies and gents should have facilities for physicallychallenged person's i.e. low height urinals as per international specifications. Thisis a necessary requirement for all classified hotels.

Ramps with anti-slip floors and handrails are a necessary requirement for 4, 5 and

5 star deluxe hotels and desirable for all others. Wheelchair access with suitable table at least one multi-cuisine restaurant. The entrance doors should have a minimum width of 32" to allow free access for

wheelchairs. Fire and emergency alarms should be visible and audible signals. Exclusively earmarked, clearly sign-posted and accessible parking space may be

allocated nearest to the entrance. Suitably equipped elevators i.e. minimum 32" width, handrails, audio-

announcement of floors and accessible buttons for the physically challenged persons.

These measures maybe incorporated in a phased manner by

31.12.2003. The presence of these facilities will be taken into consideration whileinspecting hotels for classification/reclassification. Hence, you are requested tokindly inform all the members of your association accordingly.

Yours faithfully,

(Mrs. T. Kumar)Member Secretary(HRACC)



Government of India

Department of Tourism (H&R Cell)

Hotel Classification

Mark sheet for quality

Criteria Max Marks Score Comments

Exterior & Grounds 8 Exteriors, Approach 2/ Landscaping

2/ Exterior lighting 2/ Parking 2Guest Rooms 10 Furniture 2/ Furnishings 2/ Decor 2/

Room facilities & amenities 2/ Linen2

Bathrooms 8 Facilities 2/ Fittings 2/ Linen 2/Toiletries 2

Public Areas 8 Furniture 2/ Furnishings 2/ Decor 2/



Restrooms 2

Food & Beverage 8 Choice of cuisine, menu 3/ decor 2/food quality 3

Kitchens 8 Equipment 3/ State of repair 2/ foodstorage 3

Cleanliness 8 Overall impression

Hygiene 8 Pot & Dish Washing 2/ drinkingwater 2/ staff facilities 1/ pestcontrol 2/ garbage disposal 1

Safety & Security 8 Fire fighting equipment 2/ signage 2/awareness of procedures 2/ publicarea and room security 2

Communications 6 Phone service 2/ e-mail access 2/internet access 1/ PC and other equipment 1

Guest Services 5 Overall impression

Eco-friendly practices 5 Waste management, recycling, no plastics 1/Water conservation,Harvesting 1/pollution control-air,water, sound, light 2/ Alternativeenergy usage 1/

Facilities for Physicallychallenged persons

5 At least a room for physicallychallenged persons 1/ public toilet inlobby1/telephone in public places 1/ramps etc 1/facilities for aurally or

visually handicapped 1Staff quality 5 Overall impression

TOTAL 100

Qualifying Score

5*D 90 %

5* 80 %

4* 75 %

3* 65 %

2* 55 %



1* 50 %

LOCATION OF 5 STAR HOTELS IN INDIA

MARKET SEGMENTATION FOR HOTEL

To make the marketing decision effective, it is essential that the hotel professionals

segment the market in such a way that the task of identifying the changing needs and

requirements of different segments is made easier. Segmentation proves to be an



important commandment of marketing since this helps in making and innovating the

marketing decisions. All the users, of course have their own likes and dislikes because the

food habits are different and the drinking habits are different, the expectations are

different. The kids, teens, youths, men, women, married and unmarried, youth and grey,

technocrats and bureaucrats, business executives and political representatives stay in

hotels with diverse motives. Segmentation makes the ways for knowing their uniqueness

and formulating the sub mixes in such a way that an optimal development of marketing

resources is made possible. It is against this background that we go through segmentation

for the hotel organizations.

The ultimate motto of segmentation is to cater to the changing needs and

requirement of the users. It is done with the motto of grouping and sub-grouping the users

so that, their response to the marketing inputs are similar. The success in marketing

efforts lies in anatomizing the needs and requirement of diverse segments.

Normally the companies are found located at places of demand and therefore it is

not realistic that the distribution is equal. The federation of Hotel and Restaurant

Association of India has divided the country into four geographic regions, viz. Northern

region covering Delhi, UP, Rajasthan and other northern states; Calcutta Region covering

Orissa, West Bengal and other eastern states; and Eastern Union Territories including

Andaman and Nicobar island; Western Region covering Maharashtra, Gujarat, MP,

Karnataka, Tamil Nadu, Kerala and the Union Territory of Pondichery. It is natural that

the distribution is lop-sided since all the regions are not conducive to rich infrastructure

facilities and the profitable marketing opportunities. The demand for accommodation is

not uniform either due to non-accessibility or due to the non-availability of basic

transport facilities. Some of the regions are better placed whereas some of the regions

face a crisis like situation.

In addition to the geographic consideration, we also find psycho-graphic

considerations important to segment the market. This is on the basis of psycho-graphic

variables, which refer to life cycle, buying motives and knowledge of prospects regarding



the services. The psycho-graphic variables vary from segment to segment. The psycho-

graphical considerations are found instrumental because the hotel professionals come to

know about the behavioral profile of different users living in different segments.

FORMULATION OF MARKETING MIX

The term marketing mix is the combination of what market offers and which studies help

in identifying the actual point where marketing action can be taken to improve the

acceptability of the hotel product and stimulate demand. With the view point of

marketing a hotel product, the combination of different submixes is found significant.

The combination of core and peripheral services, the creative promotional decision, the

pricing strategy helping hotels in maintaining the commercial viability, the official hotel

personnel instrumental in minimissing the gap between the services promised and

services offered, the educational and training program for the development of the hotel

personnel efficacious I enriching their excellence as high performers are important

decision making areas which gravitate our attention on formulation of a sound mix for the

hotel industry. It is against this background that we go through the different submixes of

the marketing mix.

PRODUCT MIX

In any organization, we find product the focal point. The hotel services also

require a fair combination of core and peripheral services. It is right to mention that in

almost all the hotels of same category by and large the core services are found identical

and therefore the peripheral services divert a close attention where the hotel personnel

need professional excellence. More innovative the peripheral services, more attractionswe add to our product mix. This makes it essential that hotels and hotel companies assign

due weightage to the formulation of an optimal product mix in which peripheral services

prove to be the point of attraction.

With the passage of time, it is quite natural that some of the services become

outdated and therefore, we need to eliminate them. At the same time it is essential that we



keep our minds open and come to know the latest developments in the likes and dislikes

of the customers, and while including new services in the product mix, assign due

weighage to their preferences. Modifications in the existing services by adding a few

outstanding properties are found to be a suitable strategy for the hotel development. The

generation of idea, the formulation of concept, the analysis of product cost and the testing

of the services before their final commercial launch become significant in this very

context. While formulating the product mix for the hotel services, it is essential that

catering management, restaurant and cafeteria management, management of bedrooms,

convention halls are given due weightage. The boarding services are considered to be an

important part of the product mix. In addition, the lodging services are also significant.

The information regarding the facilities made available by the competitor regarding

profile of potential customers, such as age bracket, sex, type of group, place of residence,

new guest, length of stay and who made booking. Besides we also need information

relating to hotel activities such as occupancy statistics, number of empty days, and

pattern of sales in restaurant and bar or so. While formulating strategies it is important

that we include in our product all the new services offered by our competitors not only

the primary and or core and peripheral but even the supportive services offered by allied

industries divert our attention. Image is the way in which a hotel portrays itself. The

factors like atmosphere, brand name, the status, type of people would be instrumental in

building up a fair image. And the most important thing in the projection of a fair image is

the quality of services and the behavior of front line staff.

PRICE MIX

Pricing decisions are found critical, challenging and chaotic. Of course no marketing mix

is found so much critical as pricing. Pricing is not only the outcome of the marketing

forces. It conveys something to customers even about the quality of the product. We also

use pricing as a tool to manage demand. How to use this important tool of the marketing

is found important to the survival and prosperity of an organization. There are the

numbers of variables influencing the pricing decision of an organization. Like other



organizations the hotels and hotel companies need to make pricing decisions. In this

context that we go through he problem of pricing in the hotel industry.

While, formulating the pricing strategy, the hotel professionals are required to

take into account a number of factors, specially the diverse nature and character of dishes,

involvement of cost and spending power of customers. We also need to consider the

economic criteria, target average spends, target covers per meal period and, current menu

and drink prices.

Pricing decisions are found important in both tactical and strategic sense. In tactical sense

it plays an outstanding role. This is due to the inseparability and perishability of hotel

products. This is also due to inability of the service engineering organizations to carry

over the unsold stocks as a buffer to cope up with the future demand as found in the

goods manufacturing organizations. Also known as price deregulation, tactical pricing is

found instrumental in promoting the hotel business. Experiences show that in hotel

business. Experiences show that in hotel industry, it is found to be a major selling tool.

There are number of ways for practicing and benefiting from this tool:

• Seasonal Discounts Found applicable in hotel industry.

Customary to charge lower prices, especially

during the off-season.

• Trade Discounts Found applicable in the hotel industry as tour

Operators and travel agent are offered

. discounts

• Special Discounts In the hotel industry we find special function

room rates for overnight convention.



• Strategic Pricing

Here we go through the guideline of fixing reasonable room tariffs. While fixing room

tariffs, it is essential that we assign due weightage to the pricing structure to be adopted.

The average room rate should not be higher than the competitive hotels otherwise the

market will not welcome it. There are some common factors considered by the hotel

management and the public:

Current prices prior to a review

The established inflationary effect on cost

The general economic situation

The emerging trends in currency exchange and

The intensity of competition.

In the last few decades when the rate of inflation was not so high a majority of our

customers only looked at the current charges & the inflationary impact on cost. But now

the situation is much more complex & therefore the customers consider all the aforesaid

factors. In addition, it is also to be answered as to what tariff increase will the market bear. Right averages & average room rates are the two important aspects to be taken into

consideration while fixing hotel tariffs. The following are the economic criteria on room

tariffs:

The total amount of net operating costs (after contribution from the food & beverage

departments). Net operating costs, net operating cost plus rent (if payable) net operating

cost plus interest & net operating cost plus a target return on capital.

This helps in calculating the total room sales & to achieve various levels of profits with

the assumption that room department cost ratios, staff numbers & staff standards are

known.



On the basis of the above, a schedule should be produced as per the average room rates

required in order to break even and/or to achieve the profit targets at various occupancy

levels.

Budgets on room sales are to be planned based on sales mix taking into account the

different sources of business.

After this, based on the current quoted tariffs, it is possible to calculate the different

sources of business, must not be exceeded if the average rate required is to be achieved.

• Pricing For Food And Beverage

We can’t deny the fact that pricing food and beverage is much more complicated

.In a majority of hotels, there are three or four types of room but so far as the menus are

concerned we can have dozen of dishes. There are some of the important points to be

considered in the process:

Do you find that your guests are eating in the hotel restaurant or coffee shop where the

competitive restaurants are very close to the hotel. Generally proportions do eat in but

significant proportions go out

Where a hotel has two or more restaurants, they compete with each other & help splitting

the market down the middle rather than offering a true price.The business in the function room.

• Pricing For Function

Restaurants can get more business because the food, services or atmosphere is

unique or just a little better than the competitors. But this aspect is found more

complicated for function room services. Most of the functions are fairly routine which

makes it difficult to produce a gastronomic experience. Payroll is found to be a major

cost on functions. Unless we move to the self-service (buffet style) functions, the payroll

would remain an important dimension. A number of hotels are found fixing a staff

standard for functions based on their style of hotel or one waiter to a table of ten people

or one waiter of two tables. Yet, we find payroll more expensive.



In view of the above, it is right to mention that the intensity of competition,

emerging trends in economy & changing lifestyles are the important factors drawing due

attention of the hotel management, specially while making the pricing

PLACE MIX

It is only not sufficient that we have a product mix of world class; it is not only

significant that we promise the best, it is much more impact-generating that we bridge

over the gap between the services-promised and the services-offered. The hotel and the

hotel companies have been found innovating their service mix but they also bear the

responsibility of making it sure that the promised services reach to the ultimate users in a

right fashion. It is against this background that we focus on the place mix of hotel

management.

A sound distribution system is found significant to the development of almost all

the organizations either producing goods or generating services. In the hotel industry, the

related persons to the ultimate users mainly relate the distribution of services to the

transmission of information . As an when the bookings are made of a bedroom or a

function room or a restaurant, the confirmation is found essential. The transmission of

information related to cancellation is also found important. We can’t deny the fact thatwith the introduction of sophisticated information technologies, the task is made easier

but the professionals operating & maintaining the technologies have also been found

generating the gap.

The choice of location is, of course the most important business decision

especially for proprietor-owned restaurants, guesthouse and small tourist attractions. This

is due to the fact that a well-located small business can often be sure of an adequate flow

of customers to its catchments area. In this case, the consumers come to the producer

directly and therefore, we find the distribution channels less significant. However the

fundamental attraction of well located sites does not diminish. The selection of tour

operators and travel agents is an important decision-making area for hotel & hotel

companies. If the hotel& hotel companies are well connected with the offices of travel



agents & tour operators, the occupancy ratio can be increased. The tour operators buy a

range of tourist products in bulk. This also includes accommodation facilities, which is

found relevant to the hotel industry. They also buy function rooms, specially for the

organization of conferences, seminars, exhibition, sales contests or so. After buying a

number of services & making them a lucrative package, the tour operators sell them to

the travel agents. Here, the tour operators play a decisive role in promoting the hotel

business.

The distribution chain denotes the methods by which a product or services is

processed from producers to the ultimate users. The middlemen are the link and if the

link is strong, the services generating organizations find it convenient to increase the

occupancy ratio. The middlemen are wholesalers buying hotel rooms in bulk and then

them to the retailers known as the travel agents. The tour operators are called producers

of services. The travel agents buy the services at the request of their clients and provide a

convenient network of sales outlets which caters to the needs of the catchment area. The

below given figures presents the three systems of distribution thus need due care of hotel

industry.

INSIDE SELLING

ZERO LEVEL DISTRIBUTION

This is a process of direct distribution without any middlemen. The hotels book, confirm

and cancel with the help of their own system.

HOTELCOMPANIES

USERS



ONE-LEVEL DISTRIBUTION SYSTEM

In the above figure we find one level distribution system where between the hotel

companies and their users, we find the travel agents responsible for distributing or

processing the services.

OUTSIDE SELLING

TWO-LEVEL DISTRIBUTION SYSTEM

In the above figure we find two level distribution system in which the tour operators act

as a wholesaler and travel agent acts as retailer.

USERS

HOTELCOMPANIES

TRAVEL AGENTS

USERS

TOUROPERATORS



The aforesaid facts and figures make it clear that all the three systems of distribution are

found important to the hotel companies. They are suppose to seek the co-operation of

channels failing which the task of increasing the occupancy ratio would be much more

difficult.

PROMOTION MIX

For successful marketing, it is only not sufficient that we concentrate on the quality of

services but it is also impact generating that we promote our business in such a way that

our prospects come to know about the quality to be offered to them as hotel customers.

This focuses our attention on innovative promotional measures. There are a number of

components for promoting the business and it is hoped that a professionally sound

employee would blend the different constituents in such a way that effects are proactive

but the process of persuasion is cost-effective. The components like advertisement,

publicity, sales promotion, personal selling, word-of-mouth promotion and telemarketing

need due attention of hotel professionals.

ADVERTISEMENT

We are well aware of the fact that advertisement is a paid form of communication, whichhelps in informing, sensing and persuading the prospects or users. While advertising, it is

significant that the hotel professionals make possible a productive use of print media,

broadcast media and telecast media. In the face of potentials, requirements and the

intensity of competition, we need to select media for promoting our massage and slogans.

Of late, we find significant developments in the print media since sophistication in the

printing technologies has made way for offset printing, screen printing and laser printing.

These devices are found efficacious in attracting the prospects. We find a number of plus

points in the print media. It is possible to be descriptive while advertising. We are in a

position to attract the attention of prospects by displaying attractive scenes, events,

landscape, comforts, costs etc. To be more specific when we have advanced print devices

we find enough scope for using print media for advertising.



Another plus point that we find in the print media is related to economy. We find it

economic and therefore the promotion budget is not to be non-optimal. We have a big

circulation of different newspapers, magazines and keeping in view the target market /

audience to be covered, we can take a decision in the every context.

The broadcast media can also be used for advertising the hotel services but if we make a

comparative analysis of this media with others, the effects are found of low intensity. Of

course, with the advancements in communication technologies we have almost 100 per

cent air network, which may be used, specially for low class hotels where financial

constraint stands as a barrier while advertising through expensive media.

Of late, we find telecast media considered to be the most sensitive but expensive media of

advertisement. In the world of marketing communication, we assign top position to the

telecast media because scope for audio-visual exposure makes ways for sensitising the

prospects in a right fashion. It is against this background that we find hotels advertising

through TV. Here,it is important to mention that the telecast media while advertising

assign due weightage to the sensitive hours when a majority of the viewers are found

before their TV sets. The advertising professionals are required to consider the quality

vis-à-vis reception capacity of audience and are supposed to compose the messages

accordingly. The scenes of hotel location, the swimming pool, the shopping complex, the

personal care centers, the arranged bed rooms, the restaurants and convention hall, the

aesthetic management are required to be telecast in such a way that attractions are added

in the events. The target prospects can take a decision regarding a particular hotel, if they

are found satisfied. With the availability of a number of TV channels, we now find

enough scope for maintaining economy provided the hotel professionals manage things

properly.

PUBLICITY



Another dimension of promotion known as an unpaid form of persuasive communication

also plays an incremental role in promoting the hotel business. While publicising, the

hotel professionals play a significant role by managing the media personnel for

publishing news items related to the hotel. Public relations activities thus become

instrumental in the process of publicising. The British Institute of Public Relations has

defined it as the deliberate, planned and sustained effort to establish and maintain mutual

understanding between an organization and the public. Public relations cover a wide

range of activities. It is the art and science of planning and implementing a two-way

communication and understanding between hotel companies and potential users of the

services. It is also known as the reflection of the organizational programs and activities.

In the hotel industry, we find public relations activities more instrumental in informing

the clients the outstanding merits of different services offered. The specialties of hotel are

presented in such a way that the prospects are motivated to avail of the facilities offered

by a particular hotel. It also helps in creating an atmosphere where the users at large are

convinced. Besides, it also helps in collecting the information on the preferences of the

prospects. It is right to mention that we find a few or even a very few consumer industries

to be benefited substantially by public relations as the hotel industry. The vast majority of

hoteliers welcome publicity not only because it is free but because they know that most

people buy a magazine or newspaper to read the articles, news and editorials, rather than

the advertisements unless they are looking for a product or are interested in booking a

holiday or a restaurant or a convention hall or a weeding hall.

Journalists always prefer to visit a hotel as they get their full enjoyment free of cost. You

can give journalists a write-up of your story and preferably a story with a photograph. Of

course, the photograph cover a lot of space but if media use it, we find this the finest eye-

catching free publicity. Sometimes a stunt is also thought to obtain a write-up.

There are a number of media sources available for publicity. Illustration, copy and the

spoken word are the primary publicity to media, which are grouped into the following

heads:

Printed Publicity



Advertising Publicity

Projected Publicity

Structural Publicity

Personal Publicity

Thus it is right to say that public relations activities occupy a significant place in the

promotion mix of hotel companies. In the hotel companies, the tour operators, travel

agents explore opportunities for educating the masses. In this context, it is important that

hotel companies are getting the best co-operation from media and for which the Public

Relations Officers or the marketers or the contact personnel bear the responsibility of

developing rapport with them, organizing for them lunch or dinner, offering to them

small gifts and influencing them to write in favor. You spend nominal amount but get big

coverage, which help you substantially, if not at present of course in future.

SALES PROMOTION

In almost all the organizations, we feel the need of offering incentives for promoting the

business. Like other organizations, the hotels and hotel companies also offer incentives to

the user vis-à-vis to the personnel and organizations evincing interest in promoting the

business. We consider sales promotion a temporary device to increase the business with

certain objectives. It is a short-term activity seeking to boost sales during peak demanded

periods to make it sure that the firm obtains its market share and helps launch a new

product or support ailing or modified services. These facts make it clear that sales

promotion is complimentary to advertising. Sales promotion and advertising objectives

do nit conflict but reinforce one another. This tool of promotion is designed to appeal

particularly to those customer who are found sensitive to price. It is quite natural that the

tool of sales promotion attracts buyers even having little grand loyalty.

We find repeated advertising and competitive market conditions too important reasons

for the growing significance of sale promotion in the hotel industry. The techniques may



be directed the hotel staff, tour operator and the travel agents including the users of the

services.

TOOLS OF SALES PROMOTION

Fig. 9. TOOLS OF SALES PROMOTION

Brochure:

It is a device to stimulate customers and motivate them to visit a hotel and avail of

the benefits offered by the management of the hotel. It is a detailed publication helping

hotel companies in promoting their business. We also call it a pamphlet bound in the

form of a booklet.

Folder:

Directed at Hotel Staff Travel, Concessionalaccommodation for close relations, use of

wedding halls for staff, contests, and gifts

Directed at tour operators and travel agents,giveaways, concessional accommodations,Contest

Directed at guests off-reason discount, point of sale, sales, gifts, contests



We find folder the most commonly used sales promotions tool. In this respect, it

is essential that folders have an impressive appearance in totality. The particulars are

required to be in brief but clear. We find it is single piece of illustrated paper, which is

found less voluminous than the brochure. The folders are usually printed on a single sheet

of paper and then folded. The quality of paper and printing used for publication are

found significant to make folders more attractive. The hotels can use folders for

promoting the business.

Packaging:

We call packaging an attractive wrapper of product. When we talk about

packaging in the hotel industry, our emphasis is on the outer cover and internal layout of

brochures and leaflets. We find it a final persuasive move on the part of hotels and hotel

companies. The materials used for packaging are required to be attractive.

Attraction leaflets:

This is exclusively meant for presenting a view of the different theme parks,

museums, amusement parks, outstanding points of attraction in the hotels or so.

Merchandising:

It is found helpful in promoting mass-market. This tool is found significant to

restaurants and bars. The merchandising involves displaying of foodstuffs and drinks in

the right location. The restaurants and bars are required to place their important items at

such point where the guest/clients get an opportunity to have a close view of special

drinks or special menu.

Direct Mail Materials:



The sales letters are found to be a direct mail material, which can either be used alone or

in combination with brochures and folders.

Display Materials:

In the materials to be displayed at sensitive points are posters, dispensers, exhibits etc.

We can use these materials in the offices of the travel agents, tour operators or at the

places where tourists come, such as tourists spots, resorts, airports, railway and bus

stations.

Competition and Exhibition:

We find a provision for special offer for all, such as users, travel agents, tour operators,

hotel personnel.

The aforesaid tools of sales promotion help hotels and hotel companies in increasing the

business. The hotel personnel need professional excellence to make the tools of sales

promotion productive.

WORD -OF- MOUTH PROMOTION

We consider word-of-mouth promotion very much instrumental in sensitising the

prospects. In the hotel industry, it is much more significant that the satisfaction of users

is give top priority. Of course, there are a number of components to promote sale but it is

right to mention that other constituents may be ineffective but the word-of-mouth can’t.

The word-of-mouth promoters are those who are satisfied with the services of hotels or

are motivated to motivate the prospects. We can’t deny the fact that one bad meal would

often do more damage by word-of-mouth would often do more damage than fifty good

meals. Out guests take a good meal for granted but don’t forget to narrate to their friends

and relatives about a bad meal or the bitter experiences of menu-fatigue. This speaks of



the fact that word-of-mouth promotion can show more negative effects and therefore the

hotels and hotel companies need to assign due weightage to this component of the

promotion mix.

PERSONEL SELLING

Nothing happens unless anyone sells something and nothing is sold unless the buyers are

motivated to purchase things of their choice. The oral representation in conversation

bears the efficiency of transforming the motivation into persuasion. Thus we find

persuasion the main thing in energizing the process of marketing. We can’t deny the fact

that the personal selling has proved to be an important constituent of promotion. There is

no doubt in it that the goods or services are found half sold when their properties are well

told. Every business house be its insurance, travel and tourism and hotel, we found

professionally sound sales force or employees playing a decisive role in promoting the

business. It is against this background that we talk about this constituent of promotion

mix.

Personal selling substantially influences the hotel business. The personal selling brings

considerable momentum to the process of boosting the hotel business. The feedback

received from the sales force engaged in the process helps marketers in designing the

plan.

PERSONAL SKILL

At the initial stage when the hotel receptionists, housekeepers, waiters, travel clerks

encounter their clients or guests, the first impression presented by them would have a far

reaching impact. The appearance and proper grooming of personnel dealing with the

guests play a significant role. We find a number of tourist organizations and hotel

companies paying attention to regulate the same. Presenting a good show by the

personnel goes a long way in influencing the image of the hotelthe hotel personnel need

to realize that their way of dealing with the customers would influence the business.



SOCIAL SKILLS

It is significant that the hotel personnel approach customers in a friendly and confident

manner. It is meant welcome smile, eye-contact, attractive deposition, and willingness to

listen. While shaking hands we convey a sense of confidence and responsibility

considered essential for opening the negotiations and transforming them into good

business.. The waiters, housekeepers, porters, receptionists’ work in close association

with the guests. They can ask a customer – attitude browsing through the brochures – is

there any particular holiday you have in mind. This helps in generating the sales

sequence.

TELE MARKETING

In an age of information explosion, we find frequent use of sophisticated information

technologies for promoting the business. The telemarketing, of late has found gravitating

the attention of number of organizations where we find use of telephonic services for

promoting the business. We can’t negate the fact that even in hotel industry, the

telemarketing can play an incremental role.

We accept the fact that the instrumentality of telemarketing is substantially influenced by

the skill of telemarketers vis-à-vis the instruments used in the process. A person with

high communicating ability is to perform as a telemarketer who bears the responsibility

of answering to the questions and queries of customers, prospects regarding the business

transactions. In the hotel industry the tele marketing can be helpful in promoting the

business since the tour operators, transport operators, travel agents and the users develop

a number of confusions and misunderstanding about booking, confirmation, cancellation,

availability of package tour, a change in hotel tariff and so. The telemarketing thus



simplifies the task of hotel professionals since the prospects think about the deal after

getting the confusion removed.

PEOPLE

In an age of sophisticated information technologies when we have been making

superhighway for communications, we find a basic change in the expectations of users.

The personnel serving the hotel companies no doubt depend substantially on the

instrumentality of information technologies but here it is also important that hotels and

hotel companies assign due weightage to the development of personnel. Sky is the limit

for perfection. This phrase is meaningful not only for the technologies but even for the

people who manage them. It is against this background that the marketing experts the

world over has been found making a strong advocacy in favour of an ongoing training

programme for the personnel servicing the hotel companies.

In this context, our prime focus is on the front-line-personnel working in hotels in

different capacities. The receptionists, the porters, the housekeepers, the waiters and

waitresses and even the doormen play an incremental role in promoting the business. The

sales executives, the marketing managers, the senior executives bear the responsibility of

managing the front-line-personnel in such a way that the promised services reach to the

ultimate users without making any distortion. Of course, they are supposed to have

proper education and knowledge regarding the services they need to offer but here, it is

also important that we organise for them an ongoing training programme, refresher

courses, capsule courses, lecture programmes, specially related to the behavioral profile.

We find several cases to quote that even the five star hotels where the users stay with

high expectations, a minor mistake committed by the receptionists or the housekeepers

has resulted in a big loss. The front-line-staff in particular need to identify the changing

levels of expectations of users and in a majority of the cases they virtually fail in doing

such. A gap is generated between the quality promised and the quality-offered. If the

hotel personnel pave to be high-performers, personally committed, professionally sound,



value-oriented, aware of the behavioral management; familiar with the aesthetic

management; they can satisfy the users even if the sophisticated technologies develop a

fault. This makes it essential that the hotel personnel are made available an ongoing

training facility efficacious in enriching their professional excellence. The cases of menu

fatigue, power interruption, mismanaged bedrooms, function rooms and restaurants,

indecent behavior of doormen, poor information to the receptionists and enquires can be

minimised considerably if we assign due weightage to performance-orientation.

We can't negate the fact that employee-orientation makes the ways for performance-

orientation. This gravitates our attention on -the multi-dimensional incentives to be

offered to the hotel personnel. Incentives pave the avenues for the generation of

efficiency vis-à-vis their personal involvement. But efficiency based incentives need an

overriding priority, which on the one hand would induce efficient while on the other

hand, would also energies inefficient to perform their best. If we keep on moving the

process of efficiency-generation by offering incentives, a strong foundation would be

engineered for generating the efficiency albeit by the low-performers. It is against this

background that we find it significant to make possible a fair synchronization of

performance-orientation and employee-orientation. We should not forget that the

technologies in no case can replace the high-performers.

PHYSICAL EVIDENCE

It’s the front of the hotel that the guest sees; so must be designed in such a manner that it

- sells the hotel to the potential customer. This includes the space, colour, light & such

other element; as these affect guest impression about the hotel. Lobby- It being the first &

the last part of the hotel that the guest sees; its designing plays a very important role. It

must be designed with fine art, elegant finishing & comfortable furnishing. And also the

lobby must be functional with receptionist area apparent to the incoming guests. Though,

the architect of the lobby grabs the customers interest but it’s the guest room that keeps

them coming back. Guest room with conformable furnishing, space, colour is a must.



The intangible nature of services makes consumers more concerned about the service

providers. In order to create trust, marketers have to provide tangible evidence. The less

tangible a service, the less the service marketing resembles goods marketing.

Performance here can be judged only after the service is completed and consistent service

level is difficult to maintain.

A hotels promotional effort must show the benefits to be derived from the service, rather

than emphasizing on the service itself. The promotional strategies usually used to portray

the strength of the service are.

Visualization – It promotes the tangible element of a service. For example, a hotel

depicts the benefits of dining at its restaurant with its ads, which shows beautiful

interiors, well laid facilities, etc.

Association- While promoting the hotel, the service is associated with a tangible person,

object or place. For example: Mc Donald’s has associated itself with Ronald, the clown in

order to appeal to children.

Physical representation – Services when represented by some physical representation

help in building the trust of the customers for example: restaurants dress their service

providers in uniforms to emphasize visibility, reliability and cleanliness, attractive menu

cards also help.

Documentation- Documentation is sued by service providers to tangibles their

intangibles. Hotel orchid advertises the awards received by it in the recent past and

emphasis its hotel as an environmentally sensitive hotel.

Branding- Also adds tangibility to intangibles. Brand help in differentiating the service

from that of its competitors in terms of name, logo, mascot and other identifying features

and forms an important component of the communication mix



PROCESS

It’s the manner in which service is delivered. Since, in hotel industry service are rendered

by hotel & experience by the customer simultaneously, because of the inseparability

nature, the process in which these services are delivered becomes very important. This is

because every process is carefully by the customer & the customer is judging the quality

of the service on this basis.

Service Encounter: Acc. to FHRAI report, there are around 250 moments of truth in a

hotel industry where the customer comes in direct contact with the service provider,

equipment, and physical asset.

Critical incidents: Out of these 250 service encounters, there is certain encounter which

makes the customer extremely delighted or extremely disappointed. These are:

1)Check-in -If the customer who had booked the hotel in the room arrives & to his

surprise finds that no room is vacant for him. Another hand, If in an festival season when

there no hotel rooms available in the city, a hotel makes arrangement for accommodation

for a customer who has not booked his room in any hotel.

2) Bell person carrying the luggage to the room- When the bag arrives in the room, its

in extremely bad condition. This leaves negative impression in the mind of the customer.

3) Food - Quality of food, time taken for food to arrive

4) Wake up call- As wake call not made by the receptionist, the customer misses his

flight)



5) Check out- Too much time taken, procedural failure.

SERVICE TRIANGLE OF 5 STAR HOTEL

External Marketing Internal Marketing

(Making promises) (Enabling

promises)

Interactive Mktg.

(Keeping promises)

EXTERNAL MARKETING: External marketing functions means anything that is

communicated to the customer before the service is delivered. In case of the Hotels,

external marketing means the promotional activities and advertisements done by the hotel

ConsumersEmployees/Waiters/

Managers

Hotel Owners/Admn

HQ.



in newspapers, travel magazines, television etc. since there is direct customer contact in

an Hotel, their advertisements are centered around their employees whereby they try to

reflect customer care, attitude and other aspects of the employees and their hospitality.

INTERNAL MARKETING: In the hotel industry, the employees, who are the internal

customers of the company have different positions ranging from the doormen, the

bellboy, the receptionist to the chef, the waiter, etc. the basic principle of internal

marketing is ‘ every individual in a service organization should recognize that they have

customers to serve’. The main thrust in this is that it is not just the customer contact

employee who need to concerned about satisfying customer but also all the service

employees. In order to ensure that the final consumer receives quality service, every

individual employee and every department within the organization must receive and

provide a quality service. In fact each functional department should be treated as the

customer of another functional department. Further, all employees must be convinced

about the quality o the service being provided.

For example, the quality received by an ultimate customer of restaurant will depend upon

the quality of the service provided b each individual in the supply chain. The chef needs

quality ingredient from the stores and well-trained waiter to give a quality service to the

ultimate customer. The following model explains the impact of functional departments

quality delivery on the overall quality received by the final customer.

Service 100% 100% 100% 100%

Quality

Delivered

91% 81% 73%

STOREINCHARGE

CHEF WAITER CUSTOMER



The above model shows that every employee connected with service organization need to

recognize that there is someone whom he or she must serve.

INTERACTIVE MARKETING: Interactive marketing takes place between the Customer

and the front line managers, receptionists, employees etc. all the individuals must

successfully complete all interactions that add value to the service encounter. The

employee- customer encounter plays a major role in the hotel industry, where relationship

management is a vital factor so that the customer loyalty is maintained.

Apart from these three marketing concepts, there is another concept of Relationship

Marketing that needs to be considered.

Relationship marketing aims at developing and maintaining relationships with the

customers, the employees, the suppliers, distributors (the tour operators and travel agents

in case of the hotel industry) and other parties in the marketing environment.

Towards Customers: In case of hotels the receptionists and in case of Restaurants, the

Supervisor of the dining areas should always try to recognize their regular customers and

maintain healthy relationship with them. They can do so by providing such customers

with discounts, membership cards, etc so that the customer gets easy recognition from the

employees of the Hotel/ Restaurant.

Towards Intermediaries: the hotel must try and maintain good relationships with

intermediaries like tour operators, travel agents, etc as they are the one who escort

travelers to the hotels by advertising and recommending our hotels. Hence they must be

given fair and timely compensation to maintain the good relationships.

Towards Employees: Hotels also have to maintain healthy relationships with employees

as its HR department spend a lot on training and development of the employees. It has to

train the employees in various aspects like table communication, order taking, food

service techniques, hospitality, etiquettes, etc. hence the hotel cannot afford to have a

high amount of employee turnover as hotel will not just loose a precious trained

employee but it will have to incur additional cost on selection, recruitment and training

the new employees.



PEST ANALYSIS

Organizations operate within an environment. There are many variables that operate

within an organizations environment that have a direct or indirect influence on their

strategy. A successful organization is one which understands and which can anticipate

and take advantage of changes within their environment .The organization's marketing

environment is made up from:

The internal environment e.g. staff (or internal customers), The microenvironment e.g.

our external customers, agents and distributors, suppliers, our competitors, etc. The

macro-environment e.g. Political (and legal) forces, Economic forces, Sociocultural

forces, and Technological forces. These are known as PEST factors. The purpose of

carrying out a PEST analysis is to analyze the external environment in which the

organizations operate and to identify how these factors influence the organizations

marketing decisions.

POLITICAL FACTORS

The political arena has a huge influence upon the regulation of businesses, and the

spending power of consumers and other businesses. They include:

Taxation:

50% of profits derived by hotels, travel agents and tour operators in foreign exchange are

exempt from income tax.

Hotels located in locations other than the four major metro cities are entitled to 30%

deduction from profit, for a ten-year period.



Hotel Expenditure Tax has been abolished. Waiving HET means total hotel billing of

customers will now become 10 per cent cheaper. And here goes the reality byte – almost

75 per cent of travellers do not access hotels that come under the purview of HET. Hence,

the benefit will accrue to a select few and not all tourists.

Tax benefits are also given to the financial institutions lending to hotel companies. The

incentive to finance hotel projects is likely to boost investment as projects would now

cost around 30-40 per cent less.

Government Rules & Regulations:

Approvals for Technology agreements in the hotel industry are available on an automatic

basis, subject to the fulfilment of certain specified parameters.

Approved hotels are entitled to import essential goods relating to the hotel and tourism

industry up to the value of 25% of the foreign exchange earned by them in the preceding

licensing year.

The industry has received boost from the open sky policy of the government, entry of low

cost airlines, government’s thrust on infrastructure development and increasing domestic

as well as international travel.

The CRZ Act or Coastal Regulation Zone Act prohibits the development of any structure

within 500 metres from the sea. This is limiting the growth of the hotel and tourism

industry as foreign tourists want to stay near beaches and there are no facilities like

resorts and hotels to cater to them near the beaches due to this Act.

The Visa regime needs to be liberalized to allow tourists to obtain a tourist visa on arrival

at the airport, as is the practice in many important tourist destinations

CORRUPTION:

As we all know politicians in India are the most corrupted. Though they have

realized the importance & potential of the tourism industry & have come up with lots of

benefits & incentives. But to avail these benefits & incentives,bribes have to be paid for

every permit & license required. When it comes to getting work services from the

government officials even after bribing them, the work is delayed.you are never sure of

time that wil be taken complete the procedures bythe officers. Therefore constant

liasoning with the minister & other government official is necessary.



Internal stability

The issues of safety and security are paramount in the minds of travelers and the

travel industry. If incidents like Godhra riots & attack on parliament keep happening,

then, confidences of the tourist regarding their safety will be hampered. It was also

observed that after these incidents the tourist arrivals showed a steady decrease, which

has affected the turnover of hotel industry.

Environmental law

Now a days protecting the environment has become one of the major issues for

most of the government. Government in this respect has taken a lot of steps. Recently the

Maharashtra government has banned constructions of new hotels in Mahabaleshwar.

There is a lot of illegal construction taking place in the hill station. According to the state

govt. many of these upcoming hotels would be causing a lot of harm to the environment.

Also many of the existing hotels have been asked to shut down because they are not

following the guidelines laid down by the court/law to protect the environment.

ECONOMIC FACTORS

BUSINESS CYCLE:

Business cycles have a wide reaching impact on hotel industry. All businesses are

affected by economical factors nationally and globally. Whether an economy is in a boom

(prosperity), recession, depression or recovery, the consumer behaviour is greatly

affected. An economy, which is booming, will have high overall ARR and occupancy

rates. If an economy in recession the overall ARR & occupancy rated will decrease. This

factor has to be taken into account by the hotel industry because it will directly affect

their profits.

EMPLOYMENT:



At present, about 6.8million persons are directly employed by hotel industry. This

is about 2.1% of the total work force of the country. In addition, the industry provides

indirect employment to about 25 million persons. Though they are providing employment

to a massive number of people but retaining them in the organization has been seen as a

major threat in hotel industry. Hospitality business leaders have long recognized the

difficulty of retaining quality employees as a continuous threat to the health of the

industry. Attrition affects the profits & it increases the recruitment & other cost. The

quality delivered is also affected. The current bad situation is worsening.

ECONOMIC GROWTH:

The Indian hospitality industry is cyclical and largely contingent on economic

growth and international trade. These factors have turned favorable, and have translated

into improved tourist inflows and have pushed up occupancy rates. India is being seen as

a developing country with a great potential. Hence a number of MNCs are coming to the

country. Executives & representatives are having constant visits to India to finalize the

agreements & other documents. This is increasing the business travel section of hotel

industry.

Over the last few years, while FDI inflows and approvals have been improving

steadily, FII inflows too have surged during the last few quarters. This indicates the rising

foreign interest in India, which will result in higher tourist arrivals. This will in turn

increase the hotels turnover. Strong Economic Recovery And Favourable Macro-

economic Indicators To Boost Arrivals.

Infrastructure

Keeping in mind the future demand, Hotels are all ready to increase their room

capacity by 20-25% everything seems to be finalized. But one thing, which needs to be

taken care of, is that of infrastructure. Development of infrastructure is essential for the

hotel industry & in that case for any economy. In India first the industry is developed &

then the infrastructure. For India, infrastructure has been always a hindrance in



development of the hotel industry. The airports across the country are nowhere close to

world standards. With stress now being laid on improving the facilities at the airports and

developing road infrastructure across the country, the tourism & hotel industry is all set

to gain.

SOCIAL FACTORS

CONSUMER TASTES & PREFERENCES:

Especially, since India is a land of extremes there are people from various

religions and castes and hence their preferences & taste also vary. In society, most people

want to achieve the highest possible standard of living and as such, consumers are

becoming even more demanding as living standards rise.hotels also have to keep in mind

the demand by various group. For e.g. A Jain would be satisfied with the service only if

he is served jain food and it should be kept in mind that the customers next to him are

also jain or at least vegetarian.

CHANGING LIFESTYLE:

Lifestyles are becoming less predictable, more fragmented, and we have more active but

riskier lives. People are working most of the time & due to this changing lifestyle,

changing habits, they prefer going on a short trip to reduce the level of stress. Earlier

people used to go on a vacation only during the summertime & at the most twice. But

now you find people going for a trip say to Matheran or Lonavala to reduce the level of

stress & spend some quality time with their family or friends. Thus this in boosting the

domestic travel & the hotels industry is benefited the most.

CONSUMER BELIEFS:



Most hotels generate large quantities of solid waste including bottles and food

packaging, Kitchen and garden waste, old furniture and equipment and potentially

hazardous wastes such as asbestos and solvents. The solution is recycling and reusing

waste materials wherever possible, and by safely disposing of residual wastes. The

Orchid Hotel in Mumbai, India, provides a particularly good example of innovative

recycling and waste disposal. Virtually all in-room products are reusable or recyclable;

paper usage is kept to a minimum.

Many tourists feel good knowing that they have spent a low-impact holiday and

used the services of environment conscious operators. The feel-good factor is not limited

to tourists – it can also extend to employees. In fact, good environmental stewardship has

been found to reduce employee turnover, and motivate employees to become

environment-conscious citizens. Many hotels are even trying to position themselves as

eco friendly hotels. Hotel Maurya Sheraton and Towers is the first hotel in India to be

awarded the Golden Peacock Environment Management Award for 2001 by the World

Environment Foundation. It won this award again in 2004.

TECHNOLOGY FACTORS

In days gone by it was said that in order to succeed, all a hotel needed was a

scenic location and good cuisine. But in today’s competitive environment, a mistake as

trivial as not taking down a customer’s order can prove disastrous. As the hospitality

industry started looking for ways to improve efficiencies, efforts and investments in the

field of information technology intensified. One of the first deployments of IT began at

the front desk when receptionists began checking the name of the customer and then

allotted a room to him. Big hotels also started putting in place accounting systems and

back office software to improve processes. The industry has moved from the traditional

transaction-based processes such as check-in and reservations to features that are built

and designed specifically for the customer. Services like providing wireless Internet

access to guests will only increase in the future.



CRM:

While IT initiatives like centralised management and automating daily operations

are important, the key part of retaining a customer is critical to the hospitality industry.

CRM is also being adopted in a big way by almost all the big hotel chains in India. At

present, every major hotel chain in India is investing in comprehensive systems that store

complete profiles of their customers. The moment a guest checks in, he fills a form

indicating his various preferences. If he is a regular client, the hotel immediately knows

of his preferences and serves him accordingly. Every hotel has a major chunk of its

revenue coming from its regular clientele. We too recognize this and have deployed

customer information systems (CIS) to service the customer in a better way.” The same

CIS can be accessed through any of the group’s properties. A CIS enables the hotel to

keep a record of the exact profile of the customer and keep a tab on his preferences

during his subsequent visits. CIS creates guest-centric processes that are essential for

CRM. And since it focuses on preferences, requests and problems of different customers,

it is a boon to the hotel management.

Earlier, data management systems contained only static information, which was

used only to enhance efficiency of the hotel staff. But today, with the help of analytical

tools, we can provide consistent service quality. CRM and software tools for front line

staff have enhanced successful one-to-one relationships.

Wireless technologies

One of the best examples of the use of wireless technologies is the hotel industry. Major

hotels are betting on wireless services as a new lure for business travellers who rely on

high-speed Internet connectivity and wireless services to conduct day-to-day business.

Initially, wireless technology in big hotels was traditionally confined to the guest room,

the business centre or conference rooms. Hotels have started looking at using wireless

Internet services throughout the hotel.



Another significant use of this technology is seen in wireless-equipped handheld phones

called digitally enhanced cordless phones, which serve the purpose of tracking a person

anywhere in the hotel premises. This phone is especially useful for mobile staff who can

attend to a complaint immediately.

INTERNET:

This is one of the technology that every company is using in this world. It can

help a company either to gain advantage over its competitors. Companies are using

Internet for advertising their services. Through this they are able to reach thousands of

people at long distances. Hotels have their own web sites which can be used for getting

information about rooms, services offered by them & also for online reservation.

Customer is also benefited as he can get the prices of different rooms & different hotels

and accordingly make a choice.

But the sad part of the story is that Websites of most hotels serve only as

information outlets, and almost no bookings take place through the Web.One obvious

reason is security, which makes customers reluctant to reveal their credit card details on

the Web. Hence, Proper security systems are a must to avoid fraud in non face-to-face

transaction.

Thus several forces are driving the service sector today. The four important

environmental variables are forcing rapid changes in the hotel industry. People have

started thinking differently & marketers have to understand the new definition of

customer & their perception in context of these variables.

GLIMPES ON INDIAN ECONOMY



In India, agriculture still remains a predominant activity and any fluctuation in it has

serious repercussions on the whole of the economy. However, the importance of

agriculture appears to be slowly declining. In early years of 1970s its share in the net

domestic product used to be around 50 per cent. It has now come down to 26 per cent.

The country not only has gradually moved towards industrialization, but the industrial

sector has also undergone a structural change. At the time of independence not only in

terms of employment, but also in terms of its contribution to the net domestic product, the

small sector had a slight edge over the organized sector. However, during the past five

decades the rapid growth of modern industries has undermined the relative importance of

the unorganized sector.

Lastly the share of service sector has also increased in Indian economy. The given below

statistics clearly shows the dominance of service sector in the Indian economy.

GDP’s SECTORIAL SHARE

GDP’s SECTORIAL SHARE

0

10

20

30

40

50

60

AGRICULTURE MANUFACTURING SERVICES

Sectors

P e r c e n t a g e

Percentage

The given below table clearly indicates the increasing rate of service sector and its

dominance in the Indian economy.

SECTOR Percentage

AGRICULTURE 30.8

MANUFACTURING 8.04

SERVICES 51.16



It also indicates the increasing share of hotel industry in the service sector.

TABLE OF SHARE OF SERVICE SECTOR IN INDIA’S GDP

Share of the service sector in India's GDP (in Rs. crore).

Figures in brackets indicate percentage share of different sectors and subsectors.

Figures for 1994-95 onwards are on a changed base (1993-94=100), so they show huge increases com

preceding period.

1998-99 1997-981996-

97

1995-

96

1994-

95*

1993-

94

1992-

93

1991-

92

1990-

91

1985

86

Services569005

(51.16)

537642

(51.24)

498572

(49.91)

463980

(50.08)

423200

(49.15)

108974

(45.62)

102142

(45.34)

97045

(45.35)

92733

(43.69)

6630

(42.2

of which

Construction50328

(4.53)

49313

(4.70)

47382

(4.74)

46054

(4.97)

42560

(4.94)

10517

(4.40)

10386

(4.61)

10047

(4.70)

9833

(4.63)

7183

(4.59

Trade, hotels &

restaurants

....164355

(15.68)

155954

(15.61)

143858

(15.53)

127532

(14.81)

31057

(13.00)

28650

(12.72)

26827

(12.54)

26580

(12.52)

1964

(12.5of which

i) Trade ....155120

(14.78)

147305

(14.75)

136087

(14.69)

121546

(14.12)

29082

(12.18)

26866

(11.93)

25147

(11.75)

24933

(11.75)

1849

(11.8

ii) Hotels &

restaurants....

9235

(0.88)

8649

(0.87)

7771

(0.84)

5986

(0.70)

1975

(0.83)

1784

(0.79)

1680

(0.79)

1647

(0.78)

1151

(0.74

Transport, storage

& communications....

79819

(7.61)

74956

(7.50)

68788

(7.43)

63118

(7.33)

13057

(5.47)

12398

(5.50)

11785

(5.51)

11164

(5.26)

7951

(5.08

of which

i) Railways ....11521

(1.10)

11189

(1.12)

10647

(1.15)

9846

(1.14)

1746

(0.73)

1758

(0.78)

1778

(0.83)

1677

(0.79)

1404

(0.90

ii) Transport by

other means....

50144

(4.78)

47895

(4.79)

44513

(4.80)

41706

(4.84)

9209

(3.86)

8735

(3.88)

8275

(3.87)

7853

(3.70)

5309

(3.39

iii) Storage ....655

(0.06)

646

(0.06)

652

(0.07)

621

(0.07)

188

(0.08)

180

(0.08)

175

(0.08)

177

(0.08)

163

(0.10



iv)Communication ....17499

(1.67)

15226

(1.52)

12976

(1.40)

10945

(1.27)

1914

(0.80)

1725

(0.77)

1557

(0.73)

1457

(0.69)

1075

(0.69

Financing,

insurance, real

estate

127205

(11.44)

119814

(11.42)

110575

(11.07)

102438

(11.06)

94609

(10.99)

27711

(11.06)

25084

(11.14)

23972

(11.20)

21700

(10.22)

1470

(9.39

of which

i) Banking &

insurance....

65814

(6.27)

58034

(5.81)

51343

(5.54)

45190

(5.25)

16111

(6.74)

13861

(6.15)

13107

(6.13)

11169

(5.26)

5828

(3.72

ii) Real estate,

dwelling business....

54000

(5.15)

52481

(5.25)

51095

(5.52)

49419

(5.74)

11600

(4.86)

11223

(4.98)

10865

(5.08)

10531

(4.96)

8880

(5.67

Community, social,

personal

131047

(11.78)

124341

(11.85)

109705

(10.98)

102842

(11.10)

95381

(11.08)

26632

(11.15)

25624

(11.37)

24414

(11.41)

23456

(11.05)

1681

(10.7

of whichi) Public admin. &

defence....

58631

(5.59)

48736

(4.88)

46635

(5.03)

43620

(5.07)

12483

(5.23)

12170

(5.40)

11570

(5.41)

11328

(5.34)

8016

(5.12

ii) Other services ....65710

(6.26)

60969

(6.10)

56207

(6.07)

51761

(6.01)

14149

(5.92)

13454

(5.97)

12844

(6.00)

12128

(5.71)

8799

(5.62

Total GDP: 1112206 1049191 998978 926412 861064 238864 225268 213983 212253 1565

5 STAR HOTEL MARKETING IN INDIA



The British made the plantation of a western concept in the eastern environment initially.

The Taj Mahal Hotel built by Jameshedji Nauroji Tata in Bombay in 1903 is the only

exception since till dawn of the independence by and large almost all the hotels in India

were owned and managed by British or Swiss. After the attainment of independence and

to be more specific with the beginning of the planned concept of economic development,

the contours of development underwent radical changes. The policy makers realised the

significance of hotel and tourism services in the emancipation of economy and gradually

we find. a change in the development processes. UNESCO Conference organized in

Delhi made the ways for the establishment of the Ashok Hotel in 1956, specially to

accommodate the delegates attending the conference. Since then, we find a change in the

development philosophy which encouraged albeit the private sector to . Participate in the

development process.

The hotel industry particularly in the Indian perspective has often considered marketing

as a tantamount of selling. We need to perceive that the marketing transplants the seeds

and sales harvest the crops. We can't think of harvesting unless we think seriously about

transplanting. The retarded development of hotel industry in the Indian environment is

also due to the delayed application of modern marketing principles. Of late, the policy

makers, the hoteliers, the tour and 'transport operators, the travel agents realise. That to

activate the process of development and to make” the services internationally competitive

vis-à-vis commercially viable; they have no option but to perceive and practice modern

marketing principles in a right fashion. Such an attitudinal change has opened new vistas

of the development of hotel industry.

Hotel marketing studies in its purview almost all the components directly or indirectly

influencing the maintaining of commercial viability along with the generation of

customer satisfaction. 14 We are aware of the fact that marketing is a process of

engineering users' satisfaction and practicing marketing in right perspective would make

possible multi-dimensional qualitative improvements. The task before the hotels and

hotel companies is to conceptualise marketing in the face of changing business

conditions. Of late we find the intensity of competition at its peak, the business



environment highly volatile and the domination of sophisticated information technologies

increasing very fast. The leading hotel chains have been found evincing their interests in

the development of hotel industry in the face of new emerging trends, which have been

helping them in increasing the market share and establishing the leadership.

We have high potentials for the development of tourism industry, which may be

considered to be a positive sign for the development of hotel industry. In addition, we

have also been successful in increasing the domination of corporate sector in the national

economic transformation processes, which has been opening new fronts for the

development of hotel culture. Significant developments in the field of transportation,

sophisticated communication technologies due to satellite communication have been

found influencing our lifestyles fantastically. The kids, teens, women are now found

crossing the threshold barriers. The professional education has been gaining popularity

specially among the women and now we find them working as business executives.

Women have also proved to be successful technocrats and bureaucrats. In almost all the

areas we find women contributing and sharing substantially.

These developments have made the business environment for the hotel industry more

conducive. The opportunities are not available and we need professional excellence to

capitalise on the same profitably.

The contribution of India Tourism Development Corporation (ITDC) to the development

of hotel industry is found positive. The Ashok Chain is the largest hotel chain in India

which is run by the ITDC, the public sector undertaking. Originally, the name of the

chain was Ashoka but now it is Ashok. The Oberoi Chain is also found gaining

popularity. The Taj Group of hotels are managed and controlled by the Indian Hotels

Company Ltd. Besides, the Welcome Group is one of the fastest growing hotel chain in

the Indian perspective. The Hotel Corporation of India a subsidiary of Air India started

with one” hotel Centaur at Bombay airport, presently have a number of hotels in different

parts of the county try. The Clark group, Eastern Hotel International and Traveler are also

emerging as important groups.



It is high time that particularly in the Indian perspective the public as well as the private

sector realises the relevance of economic hotels for burgeoning Middle Class. In addition,

it is also important that the big hotel chains think about hotel accommodation facilities

albeit for the low-income group of the Indian society. This is essential because the urban

population is increasing fast. We find a profitable opportunity there which focuses on

development of new economic hotels.

The intensity of competition is found mounting which makes it essential that the hotels

and hotel companies think about innovative marketing. They need to blend core and

peripheral services in such a way that the product uniqueness is made possible. Since we

find least scope for innovating the core services, the hotel professionals need to think in

favour of innovative peripheral services. Enriching the peripheral services is the first and

foremost task before the hotel professionals. We can't deny the fact that a majority of the

Indian hotels have been facing image problem, which has been complicating their task of

in creasing the market share. Of late we have sophisticated technologies and a big team of

professionals having world-class excellence, which simplify the task of innovating the

promotional measure so that projection of a positive image is made possible. We need to

make possible creativity in the promotional measures with the motto of sensitising the

prospects and stimulating the demand. Of course we find luxury hotels symbolising status

but at the same time economic hotels or say inexpensive hotels need due attention of

hotel planners. The hotel personnel need an ongoing training programme. With the

sophistication in the process of inform action technologies frequently used by the hotel

companies, we need to redesign our personnel development programmes. We are living

in an age of high performers where the human resources are supposed to be personally

committed and professionally sound. This draws our attention on the motivational

schemes for the hotel personnel.

In view of the above', it is right to mention that innovation in developing and using the

marketing resources is felt urgent and the hotels and hotel companies have no option but

to make it possible so that the process of quality up gradation keeps on moving.

Perceiving right perception of marketing in a right fashion is crying need of the hour,



which is to be publicized and practiced by the world-class hotel professionals on a

priority basis

The Taj Mahal Palace

For more than 100 years, we have acquainted guests with the living heritage of India -and a legendary experience in hospitality.

It began on December 16, 1903, when Jamshetji Nusserwanji Tata opened Taj’s firsthotel, the Taj Mahal Palace & Tower, Mumbai. This grand hotel epitomized a philosophythat still holds true today: provide impeccable service and unparalleled facilities so everystay is a memorable one.

A part of the Tata Group of companies www.tata.com, India's premier business house,Taj Hotels Resorts and Palaces comprises 57 hotels in 40 locations across India with anadditional 18 international hotels in the Maldives, Mauritius, Malaysia, Seychelles,Australia, UK, USA, Bhutan, Sri Lanka, Africa, and the Middle East. Over the years, Tajhas won international acclaim for its quality hotels and its excellence in dining, businessfacilities, interiors, and world-class, personalized service.

In India, Taj is recognized as the premier hospitality provider, spanning the length and breadth of the country, and gracing important industrial towns and cities, beautiful beaches, historical and pilgrim centres, and wildlife destinations.

An innovator in dining, Taj was the first to introduce Sichuan, Thai, Italian, Mexican, andCalifornian cuisine into the country. In 1972, it was the first to open a 24-hour coffeeshop in India at Taj Mahal Palace & Tower, Mumbai. Today, each restaurant is reflectiveof that tradition, setting benchmarks for an outstanding culinary experience

History

Billed by the Times, London as the finest hotel in the East, the Taj’s first hotel, the Taj

Mahal Palace & Tower, Mumbai was perhaps the only place in the world where a British

Viceroy could rub shoulders with an Indian Maharajah, where the Congress could debate

with right wing leaders, and where sailors on shore leave could flirt with the Pompadour

Follies. Built at the cost of a quarter of a million pounds, the hotel introduced a series of

firsts that set new benchmarks in Indian hospitality. Over the years, the Taj brought into

Bombay, “Professors of Dance’ Mademoiselle Singy to raise temperatures and a few

eyebrows with the Tango, the first air-conditioned ballroom to cool things down, the first

cold storage, the first licensed bar, and more.

http://www.tajhotels.com/Palace/The%20Taj%20Mahal%20Palace%20&%20Tower,MUMBAI/default.htm

http://www.tata.com/





http://www.tata.com/






The changing decades ushered in new tastes and newer guests including Mick Jagger,

Steven Spielberg, and David Rockefeller, to name a few. From Nobel laureates to rock

stars, fashion divas, to oil-rich sheiks, Taj represented a global village long before the

term was to become a cliché. Even today, a hundred years on, guests will find Taj taking

luxury to greater heights in all its hotels around the world including business capitals,

fairy-tale palaces, on secluded islands, in private yachts, aboard executive jets, and

amidst spas and resorts. Still, as the discerning traveller will note, a little ahead of its

time.

important milestones achieved by Taj grp of hotels

1903: Created history with the opening of The Taj Mahal Palace Hotel, Bombay

(Mumbai) – India’s first Luxury hotel

1971-72: Pioneered the concept of authentic Palace Hotels in the country with the

Rambagh Palace in Jaipur , the Palace of the Maharajah of the esrtswhile state of Jaipore.

1974: Conceptualized the unique beach resort at Fort Aguada, Goa built within the walls

of a Portuguese fort overlooking the Arabian Sea

1978-82: Taj launched in Delhi with its luxury hotel - Taj Mahal Hotel on No. 1 Man

Singh Road and then prepared India for the Asian Games by setting up Taj Palace, Delhi

with the largest convention centre in the country

1982: Taj established a presence in the Western Hemisphere with the historic St. James

Court Hotel near Buckingham Palace, London

1984-92: Well before these destinations became world renown for their beauty, Taj

expanded to Kerala and Sri Lanka

1992-97: Rolled out Business Hotels in key cities and towns across the country, branded

as Taj Residency hotels



http://www.tajhotels.com/Palace/Rambagh%20Palace,JAIPUR/default.htm

http://www.tajhotels.com/Leisure/The%20Aguada%20Hermitage,GOA/default.htm

http://www.tajhotels.com/Luxury/The%20Taj%20Mahal%20Hotel,NEW%20DELHI/default.htm

http://www.tajhotels.com/Luxury/Taj%20%20Palace%20Hotel,NEW%20DELHI/default.htm

http://www.tajhotels.com/Luxury/Crowne%20Plaza%20London%20St.%20James,LONDON/default.htm




http://www.tajhotels.com/Palace/Rambagh%20Palace,JAIPUR/default.htm

http://www.tajhotels.com/Leisure/The%20Aguada%20Hermitage,GOA/default.htm

http://www.tajhotels.com/Luxury/The%20Taj%20Mahal%20Hotel,NEW%20DELHI/default.htm

http://www.tajhotels.com/Luxury/Taj%20%20Palace%20Hotel,NEW%20DELHI/default.htm





2000: Consolidated its position as the largest chain in India with hotels in Ahmedabad

and Hyderabad, the latter city being a joint venture with GVK Hotels resulting in a

dominant position in the market for premium and luxury hotel rooms

2002: The new Taj Exotica Resort & Spa, Maldives, within six months of its launch, was

awarded the title of "The Best Resort in the World" in the first ever Harpers and Queen

Travel Awards

The Taj Mahal Palace & Tower

Apollo Bunder

Mumbai 400 001

India

Tel No. : (91-22) 6665 3366

Fax No : (91-22) 66650323 /24

Email: [email protected]

Rooms & Suites

The Taj Mahal Palace & Tower, Mumbai offers generously appointed suites

and rooms, each adorned with original paintings and period furniture that

exude an aura of old-world charm and elegance. These unforgettable rooms and

suites live up to the fantasy of royal splendor

The Taj Mahal Tower Rooms

The renowned American architect Melton Bekker, conceived the Tower wing in

1973. With its arched balconies topped by a jagged diadem, The Taj Mahal

Tower stands in harmonious contrast to The Taj Mahal Palace. The rooms offer

a refreshing mix of European style and Indian elegance. Guests have a choice of

rooms that overlook the city or face the Gateway of India and the Arabian Sea.

Superior Rooms

Well equipped with 2-line speakerphones, international direct dial facility,wireless Internet connectivity, mini bar, personal safe, channel music and

colour television with satellite programmes, interactive TV, and safe deposit

boxes for laptops.

Deluxe Rooms

Contemporary rooms exemplifying the ultimate in lavish comfort and style.

Well equipped with all the above guest amenities. All rooms have been

http://www.tajhotels.com/Luxury/Taj%20Exotica%20Resort%20&%20Spa,MALDIVES/default.htm

mailto:[email protected]

http://www.tajhotels.com/Luxury/Taj%20Exotica%20Resort%20&%20Spa,MALDIVES/default.htm

mailto:[email protected]



refurbished and include all superior room guest amenities.

The Taj Mahal Palace Rooms

The corridors stand testimony to a century old heritage, with genuine artifacts

and antiques gracing the aisles. Guests have a choice of rooms that overlook the

city or pool or face the Gateway of India and the Arabian Sea. The Taj MahalPalace guests enjoy a private sit down check in on arrival, in the lobby lounge

with a selection of welcome drinks, prior to being escorted to their rooms.

Luxury Grande Rooms

Renowned for their architecture exuding an aura of old-world charm and

elegance. Each room is equipped with a 42” Plasma TV, surround sound with

ultra fast internet access (via an infra red keyboard), a DVD player and NEOS

(an interactive TV network through which you can access our library of films

and music). The luxurious four feature Italian marbled bathrooms, offer Retro

style bathtubs with hydro massage hand-showers, as well as separate cubicles

with overhead Rain showerheads, a vestibule and a dressing area. Other

amenities include 2-line speakerphones with international direct dial facility,

wireless Internet connectivity, in–room tea/coffee maker, minibar and personal

safe (with inbuilt laptop chargers).

Taj Club Room

Offering a panoramic view of the city, the Taj Club rooms are located on the

top floors of The Palace Wing. The rooms are perfectly in tune with the needs of

today’s global business and leisure traveler. The value additions include

limousine airport transfers, personalized butler service, complimentary bottle

of wine, buffet breakfast. To unwind, we offer tea/coffee throughout the day

and a cocktail hour at the exclusive Taj Club Lounge. The buffet breakfast and

High tea are also served at the Taj Club lounge. The Taj Club also offersbusiness services and an exclusive meeting room.

Suites

The Taj Mahal Palace houses 46 generously appointed suites, each adorned

with original paintings and period furniture to transport guests into a world of

regal luxury and grandeur .Personal butlers can be summoned at a touch of a

button to attend to every request from the moment of check in to the time of

departure. Guests can choose from Junior Suites, Executive Suites, Luxury

Suites Grand Luxury Suites and Presidential Suites. Combining contemporary

and classic styles, the richly – hued interiors of the suites exemplify luxurious

living. Complimentary services include breakfast, high tea and cocktails at thelounge and airport transfers. Each suite is equipped with a 42” Plasma TV,

surround sound with ultra fast internet access (via an infra red keyboard), a

DVD player and NEOS (an interactive TV network through which you can

access our library of films and music).

Executive Suites

Bright, airy, and stunning, these two room units offer spacious comfort with a



living room, bedroom and attached dressing area. Guests will enjoy stunning

views overlooking the pool, lawns and the city. The privileges of the Taj Club

are also included.

Luxury Suites

Offers a spacious living room, bedroom and dining room and are well equippedwith all the above guest amenities.. The privileges of the Taj Club are also

included.

Grand Luxury Suites

Transcending time, these picturesque suites are designed around a central

theme such as the Sunrise Suite, the Moonlight Suite and the Bell Tower Suite.

The artwork and antiques recreate old world charm with a blend of modern

amenities and gracious personalized service. The suites offer stunning views of

the Arabian Sea and The Gateway of India. The privileges of the Taj Club are

also included.

Presidential SuitesThe Presidential Suite and the Rajput Suite have been home to many Heads of

State, Celebrities and CEO’s . The suites feature a grand living room, a private

patio with port harbor and city view, a master bedroom and a private balcony

overlooking The Gateway of India. Opulent old-world design including precious

original paintings and antiques, artwork and antiques that recreate old world

charm with a blend of modern amenities and gracious personalized service. The

privileges of the Taj Club are also included.

565 rooms including 46 suites.

12 rooms with a capacity ranging from 25 to 500 persons auditorium style or 18 to

2000 persons for cocktails / receptions. The hotel can also provide state-of-the-artconference facilities for conferences and seminars.

Facilities & Services

The warm and friendly staff takes care of all meetings with great attention. The Taj

Mahal Palace & Tower, Mumbai also offers personalized Butler Service on its Taj

Club rooms and suites, where the butler plays the all important role of guide and

assistant.

The hotel has a well-equipped business center with five conference rooms, offering

the latest in hi-tech broadband wireless internet connectivity, PC workstations,multimedia computers, laptops, portable printers and cell phones, colour copying

and secretarial facilities are available for the convenience of the business executive.

Hotel Business Services

include:

Wireless Internet access

Broadband Internet access

Yacht:

Take to the sea with all the modern comforts you

need including three-air-conditioned bedrooms, a

salon complete with a Bar and entertainment



Colour copier

In-house video-conferencing

Laptop computers on hire

Mobile phones on hire

Portable printers on hire

Secretarial servicesTranslation / interpretation

services

Workstations with Multimedia

computers

Hotel Leisure and Other

Services include:

24-hour in-room dining

Babysitting

Beauty & hair care salonPatisserie

Car hire service

Concierge service

Currency exchange

Express laundry / Dry cleaning

Florist

House doctor

Laundry services

Travel services

system. The cruise takes you on a longer

rendezvous across to the periphery of the

Elephanta Island to view medieval period caves,

and more.

Recreation at The Taj Mahal Palace & Tower, Mumbai

Guest can take advantage of our recreation activities for irresistible fun and

relaxation.

Fitness and Fun include:

Bookshop

Fitness Centre with steam and sauna

Shopping arcade featuring brands likeMontblanc , Ravissant , Regent that

offer exclusive writing instruments,

leather goods, accessories and scarves.

Souvenir shop

Swimming pool

Arrangements for Golf

Gift Shop

Spa and Relaxation include:

JIVA Spa – a wellness spa to revitalize,

relax, and refresh the body, featuring

classic, oriental and aromatherapytreatments and massages. Day packages

also available.Yoga sessions.

Recreation outside the Hotel include:

City Site Seeing options (4 hours and 8



» Sea Lounge:

This elegant lounge offers an impressive selection of delicious snack and finger

foods.

Attire: Semi Formal

» Shamiana:

From shawarma to sandwiches, and rotis to rotisserie chicken, this restaurant serves

an array of Indian and International favourites

Attire: Casual

» Souk:

This award-winning, rooftop restaurant offers spectacular views of Mumbai and the

Arabian Sea along with sumptuous East Mediterranean cuisine.

Attire: Semi Formal

» Starboard Bar:

This lively young bar offers first-rate entertainment

Attire: No Dress Code

» The Zodiac Grill:

Voted the best in the city, this restaurant offers European cuisine and a selection of

vintage wines in an unforgettable setting

Attire: Formal

» Wasabi By Morimoto:

Mumbai’s first contemporary Japanese restaurant, Wasabi showcases food by the

legendary chef Masaharu Morimoto, known to many as the Japanese Iron Chef.

Attire: Formal

Meeting Rooms & Banquet Facilities include:

F20,000 square feet of conference space spread throughout 8 rooms

Seating capacities for 30 to 550, auditorium-style and 30 to 750 for cocktails and

receptions

http://www.tajhotels.com/FoodandWine/The%20Taj%20Mahal%20Palace%20&%20Tower,MUMBAI/SEA%20LOUNGE/default.htm

http://www.tajhotels.com/FoodandWine/The%20Taj%20Mahal%20Palace%20&%20Tower,MUMBAI/SHAMIANA/default.htm

http://www.tajhotels.com/FoodandWine/The%20Taj%20Mahal%20Palace%20&%20Tower,MUMBAI/SOUK/default.htm

http://www.tajhotels.com/FoodandWine/The%20Taj%20Mahal%20Palace%20&%20Tower,MUMBAI/STARBOARD%20BAR/default.htm

http://www.tajhotels.com/FoodandWine/The%20Taj%20Mahal%20Palace%20&%20Tower,MUMBAI/THE%20ZODIAC%20GRILL/default.htm

http://www.tajhotels.com/FoodandWine/The%20Taj%20Mahal%20Palace%20&%20Tower,MUMBAI/WASABI%20BY%20MORIMOTO/default.htm

http://www.tajhotels.com/FoodandWine/The%20Taj%20Mahal%20Palace%20&%20Tower,MUMBAI/SEA%20LOUNGE/default.htm

http://www.tajhotels.com/FoodandWine/The%20Taj%20Mahal%20Palace%20&%20Tower,MUMBAI/SHAMIANA/default.htm

http://www.tajhotels.com/FoodandWine/The%20Taj%20Mahal%20Palace%20&%20Tower,MUMBAI/SOUK/default.htm

http://www.tajhotels.com/FoodandWine/The%20Taj%20Mahal%20Palace%20&%20Tower,MUMBAI/STARBOARD%20BAR/default.htm

http://www.tajhotels.com/FoodandWine/The%20Taj%20Mahal%20Palace%20&%20Tower,MUMBAI/THE%20ZODIAC%20GRILL/default.htm

http://www.tajhotels.com/FoodandWine/The%20Taj%20Mahal%20Palace%20&%20Tower,MUMBAI/WASABI%20BY%20MORIMOTO/default.htm



Boardroom seatingfor 12 persons

Catering is available for breakfast, lunch, dinner, meeting breaks and cocktail

parties. The hotel is renowned for its award winning restaurants

Incentives available at this Hotel:

Mumbai Roadside Yatra, a festival of Mumbai’s celebrated street food

Bollywood Night

Tour to Elephanta Island

The Jiva Spa

Dimensions & Seating Capacities

Venue Area(Sq. ft)

Dimensions(Feet)

Ceiling Height

U Shaped

Rectangle Class-room

Theatre Round Table

Ballroom 5335 97’55’ 16 75 80 (Hollow box) 200 450 300

Crystal Central 4608 96’48 16 75 80 (Hollow Box) 120 400 220

Crystal North 1392 48’29’ 16 35 38 45 60 80

Crystal South 1392 48’29’ 16 35 38 45 60 80

Emerald & Jade 1125 45’25’ 16 16 18 20 30 40

Gateway Room 2304 48’48’ 16 35 33 35 70 80

Golden Room 700 28’25 16 17 20 15 30 30

Golden – II 375 15’25’ 16 - 12 12 16 -

Princes Room 1200 48’25’ 16 18 20 15 30 30

Rendezvous 2470 65’38’ 14.3 45 48 60 120 80

Ruby Room 420 21’20’ 16 7 9 - - -

Sapphire Room 450 22.5’20’ 16 14 16 18 24 20

Place



The Taj Mahal Palace & Tower completed a hundred years of welcoming guests and

being a pioneer in the hospitality sphere in the East, in 2003. This imposing edifice is a

gracious landmark of the city of Mumbai and alongside the Gateway of India (which was

built years after the hotel was constructed) is the most memorable image of the city.

It is 32 km away from the airport. A short drive away from Nariman Point and Ballard

Estate, the key commercial districts in this, the financial capital of India. It is within

minutes of the shopping and entertainment hubs of the city.

Distribution: The Taj Mahal Palace & Tower uses various Distribution channels to come

in contact and provide service to its customers. It also provides information about the

various links that the customer comes in touch with before contacting the hotel. The

following are the various distribution channels:

Direct Distribution: Because of better marketing strategies by the Hotel and increasing

awareness of the hotel among its customers, they do the booking directly themselves.

Distribution through intermediaries: The customer always has the option of booking

through tour operators and travel agents who act as middlemen in the distribution

channel.

Co-operative Distribution:

Price:

Room type

Single

US$

Double

US$

Single

Rs

Double

Rs

Tower Rooms

Superior city view room 230 255

Superior sea view room 245 270

Deluxe city view room 250 275

Deluxe sea view room 265 290

Palace Rooms

Luxury pool view room 290 315

Luxury sea view room 315 340

Luxury Grande pool view room 325 350

Luxury Grande sea view room 350 375

Taj Club pool view room* 350 380

Taj Club sea view room* 375 405



Suites US$ Rs

Junior Suite* 500

Executive Suite* 650

Luxury Suite* 850

Grand Luxury Suite* 1200

Presidential Suite* 1500

Government taxes extra.

*Includes complimentary airport limousine transfers, continental breakfast and cocktail

hour in the Club lounge.

Promotion

For successful marketing, it is only not sufficient that the hotel concentrate on the quality

of services but it is also necessary that it promotes its business in such a way that the

prospects come to know about the quality offered to them as hotel customers. This

focuses on the importance of innovative promotional measures. It is against this

background that the promotional measures like advertisement, publicity, sales promotion,

personal selling, word –of- mouth promotion and telemarketing need due attention of

hotel professionals.

Promotional activities are of the utmost importance in a Hotel. Effective communicationis required for any marketing program. New customers generally require information.

Individuals, such as sales people, can deliver communications, e.g. a sales person can talk

about the supplementary services like the casinos, bars, and etc. provided by the hotel or

it can be delivered through media such as TV, radio, newspapers, magazines, posters,

brochures and websites.

The Taj Mahal Palace & Tower has tie up with_________________________-where the

customers can earn Bonus miles on the money spent in the hotel. Promotion schemes are

carried on regularly to promote the hotel. The company has many loyalty programs, club

memberships, privileges etc.



Advertisement

The Hotel advertises in the newspapers like The Economic Times, The Financial Express

and the Mid-day. It also advertises in business periodicals such as ‘Business World’,

‘India Today’, ‘The Outlook’ and airline journals. This helps The Taj Mahal Palace &

Tower in promoting its services to the target consumers. On Television it prefers

channels like Star News, CNN, CNBC as they are considered to be business channels.

PEOPLE

In Hotels, People include the customers, employees, management and the society. The

management has to train their employees effectively to satisfy the customers and at the

same time provide a service to the society. The end motive of The Taj Mahal Palace &

Tower is to provide consistently and relentlessly an Indian experience of warmth and

hospitality by anticipating and exceeding customers expectations.

The key to retaining staff and ensuring the success of any business organization lies with

the HR department and its effective functioning. The Taj Mahal Palace & Tower incurs

heavy expenditure on their employees, especially from the time of their recruitment to

imparting skills through training. The Taj Mahal Palace & Tower, in order to retain its

employees, provide them with various facilities such as training, bonuses, medical help

and traveling facilities.

Most of the services in the Hotel depend on the direct, personal interaction between the

customers and firm’s employees, e.g. eating at a restaurant. Customers will often judge

the quality of service they receive based on their assessment of the people providing that

service.

Hotels often involve higher level of customer interaction, employees assist the customers

in providing them the services, e.g. a receptionist helping the customer by telling him

what are the different kinds of rooms available in the hotel. Also, a waiter who serves

food to the customers should be well behaved and should possess good communication

skills.

Hence. People play a very important role in hotels. The employees should be well trained

and motivated to satisfy customer’s needs.



The hotel targets mainly at the business class i.e. the corporate and the international

tourists. Their customers form people who come for the business purposes, stay for a few

nights and checkout. They expect quality and speedy delivery of their requests.

PROCESS

Process involves the entire flow and progress of the service. The Taj Mahal Palace &

Tower have effectively trained their staff so that the service encounter and the whole

process move smoothly. In order to ensure that the core product and the supplementary

product is developed and delivered in the right time, the hotel has formed certain set

processes.

Every moment from the point the customer enter the hotel to the point he leaves the hotel

is a ‘Moment Of Truth’ for The Taj Mahal Palace & Tower. Thus the hotel takes utmost

care of all these ‘Moment Of Truth’ and converts them into ‘Moments Of Success’. The

Taj Mahal Palace & Tower claim to have nearly 250 moments of truth in their hotel

e.g. when the customer reaches the hotel the surrounding around the hotel, parking

availability, watch guard saluting the customer, opening the door for him, his contact

with front desk people, his stay, the room, the toilets, room service offered, time taken,

extra amenities available, programs held in the hotel itself etc.

PHYSICAL EVIDENCE

The appearance of buildings, landscaping, vehicles, interior furnishing, equipment, staff

members, signs, printed materials provide tangible evidence of The Taj Mahal Palace &

Tower service quality.

Amenities

Bar, Restaurant, Safe Deposit Box, Coffee Shop, Room Service, Room-Service 24 Hours,

Wheel Chair Access, Bus Parking, Outdoor Parking, Conference Facilities, Meeting

Facilities, Secretarial Service,