chapter 5 hotel / hospitality marketing. overview introduction to industry marketing mix (8 p’s)...
TRANSCRIPT
Chapter 5
Hotel / Hospitality Marketing
Overview• Introduction to Industry• Marketing Mix (8 P’s)
1. Product (Product levels & Service Flower)2. Price3. Place (Channels of Distribution)4. Promotion5. People (Employees & Customers i.e. market
segmentation)6. Physical Evidence7. Process (Service Blueprint)8. Productivity & Quality (Service Quality
Dimensions / RATER Analysis)
Overview
• SWOT Analysis
• PEST Analysis
• Recent Developments
• University Questions
Introduction to Hotel Industry• The trend is the industry in classification closely under the
basis of advancement in technology, marketing and sales, financial and the development is food and cuisine trends.
• The hotel industry is now concentrating on segmentation as the market contains various types of customers.
• The concept of budget hotel is an upcoming one in India.• The hotelier would like to offer a reasonable amount of good
facilities at an affordable price• Today the hotel includes is making a reasonable program in
both public and private sectors.• Independent chains are “The Taj”, the top has gives a new
look to the hotel ring in India.
Hotel – the concept
• A public place – where all possible facilities like accommodation,
entertainment, etc.
– are provided to people who stay
– for a temporary period
Classification of Hotels• Residential
• Commercial
• Resort
• International
• Floating
• On basis of standards and control (Approved, unapproved by Dept. of Tourism)
• On basis of stars (Facilities, quality, luxury aspects)
Marketing Mix of TourismIndustry
Product• All hotels of the same category – core services are
same – distinguished by peripheral services like hotel personnel
• Continuous change in the product mix– Eliminate outdated services– Incorporate latest developments as per changing likes
and dislikes of the customers• Factors to be considered while formulating product
mix– Catering management– Restaurant & Cafeteria management– Management of bedrooms– Management of buffet & convention halls
Characteristics
Product
Product
BENEFIT MEANINGWITH RESPECT TO THE TRAVEL AND
HOTEL INDUSTRY
1. CORE BENEFITThe fundamental benefit or service that the customer is
buying
Rest & Sleep
2 BASIC PRODUCT Basic, functional attributes Hotel room with all amenities
3 EXPECTED PRODUCT
Set of attributes/conditions the buyer normally expects
A clean bed, fresh towels, working lamps, and a relative degree of
quietness, etc.
4 AUGMENTED PRODUCT
That meets the customers desires beyond expectations
Prompt services, Remote controlled AC & TV, 2 Telephone lines, etc
5 POTENTIAL PRODUCT
The possible evolution to distinguish the offer
Wi – Fi connections in hotel rooms, home theatre systems, etc.
• Product Levels
Product• Service Flower
CORE: SLEEP & REST
Food – related services
Lounge facilities
Reception
Leisure facilities
Security
Medical
External building and design
Room features
SUPPLEMENTARY SERVICES
Price• Includes– For room tariffs– For food and beverage– For functions
• Pricing strategy for promotions:– Seasonal discounts– Trade discounts– Special discounts
Place
• In hotel services, due to intangibility factor, the distribution systems and channels and not given importance
• What do we need to distribute while delivering hospitality services?
INFORMATION
Place - Channels of distribution• Zero level
Hotel Companies Users
• One level
Hotel Companies Travel Agents Users
• Two level
Hotel Companies Tour Operators Travel Agents
Users
Promotion
• Advertising & Publicity
• Sales promotion
• Word of mouth
• Personal selling
• Telemarketing
People
Market Segmentation(External Customers)[Univ Q – May 05(5 marks)]
• Business Segment– Includes corporate professionals, traders &
businessmen travelling on business purposes, each category having different preferences
• Pleasure Segment– People from different walks of life – leisure and
entertainment.
• Demographic Segment– Based on income, occupation, age, gender,
education.
Market Segmentation(External Customers)
• Social Class Segment – Refers to different income groups
• Benefits Sought Segment– Different people seeking particular benefit such as
location, accommodation, types of meals, etc.
• Geographic Segment– Based on geographic location of hotels
• Frequency Segment– Such as light, medium and heavy users.
Physical Evidence• Location of the hotel
• Hotel building
• Hotel Bedrooms & other amenities
• Hotel function room
• Logo, Website, Brochures, etc
Registration System
Process Check out
Registration System
Process Registration
Process (Service Blueprint)
Line of Interaction
Line of Visibility
Line of Internal Interaction
Productivity & Quality(Service Quality Dimensions/RATER Analysis)
What are the determinants of quality in the hotel industry? [Univ Q – Nov 05(10 marks)]
PhysicalEvidence
Ability to perform promised service;
accurately & dependably
Security, Credibility &
Courtesy
Adaptability & Prompt
Service
Ease of access & Customer
Orientation
SWOT Analysis• Strengths:– Rich natural and cultural diversity of India– Demand-supply mismatch between the demand
and supply of rooms leading to higher room rates and occupancy levels.
– Government support for the development of the infrastructure and of new tourist destinations and circuits.• The Department of Tourism (DOT) - the "Incredible
India" campaign– Increase in India's share in international tourism
and hospitality market
SWOT Analysis
• Weaknesses:– Poor support infrastructure
– Slow implementation of Govt. measures
– Susceptible to political events• The internal security scenario and social unrest also
hamper the foreign tourist arrival rates.
SWOT Analysis
• Opportunities:– Rising income of Indians which is expected to
enhance leisure tourism.
– Increased airline activity has stimulated demand and has helped improve the infrastructure.• It has benefited both international and domestic
hotels.
SWOT Analysis
• Threats:– Fluctuations in international tourist arrivals• Domestic tourism needs to be given equal importance
and measures should be taken to promote it.
– Increasing competition by several international major for the existing Indian hotel majors.
– Guest houses replace the hotels
PEST Analysis• Political
– Tighter drink/drive laws may discourage local custom using restaurant– Disability Discrimination Act– Employment law (e.g. minimum wage, hours of work, etc)
• Economical– Possible recession– Unfavorable currency rates
• Social– Ageing population - more people with more leisure time – Countryside not as 'exciting' as a city break
• Technological– Teleconferencing / Web cams– Internet a key, fast growing avenue for advertising.
Recent DevelopmentsHotel Marketing from the Indian Perspective
• Application of the marketing concept – infant stage
• Major Indian players – Taj Hotels, Oberoi Group, ITC, etc
• Emphasis to improve managerial proficiency in the unclassified hotels
• Need to increase governmental support• Development of tourism would further boost
this industry
University Questions• Discuss the detail relevance of 8 P’s in hospitality
industry. [Univ Q – Nov 03(10 marks)]Answer includes the following:– Introduction in brief– Product mix– Pricing strategies– Distribution channels– Promotion tools– People mix (exclude market segmentation)– Physical evidence– Steps in the process (blueprint diagram excluded)– Rater analysis– Recent developments in brief