dipankar marketing mix assignment

7/31/2019 Dipankar Marketing Mix Assignment

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An

Assignment

onApplication of Marketing Mix

in

Hospitality Services

Submitted by: -

DIPANKAR SAIKIA (M.Com, Roll No.-12)


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INTRODUCTION

Hospitality is the relationship between a guest

and a host, or the act or practice of being hospitable.

that is, the reception and entertainment of guests,visitors, or strangers, resorts, membership clubs,

conventions, attractions, special events, and other

services for travelers and tourists.

"Hospitality" can also mean generously providing

care and kindness to whoever is in need.
http://en.wikipedia.org/wiki/Resorthttp://en.wikipedia.org/wiki/Touristhttp://en.wikipedia.org/wiki/Touristhttp://en.wikipedia.org/wiki/Resort


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It is one of the oldest profession practiced by

the humans and they involve making guest,

client, member and resident

Today, the hospitality industry is the worlds

fastest-growing, job-creating profession,employing one in ten people worldwide.

It is estimated that the industry will require30,000-35,000 trained people at management

and supervisory level year on year until 2010.


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To understand the nature of services rendered

and various facilities provided by HospitalityIndustry.

To know about the recent trends of Hospitalityservices in India.

To understand the future prospects andchallenges faced by Hospitality Industry

activity.


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CURRENT SCENARIO

Economic liberalization has given a newimpetus to the hospitality industry.

It costs an average of US$50-80 million to setup five-star hotels with 300 rentable rooms inIndia. The gestation period is usually between

three and four years. Movements in real estateprices have to be watched, though they havestabilized in the past three years or so.


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Non-five-star hotels are obviously cheaper and

have had smaller gestation periods, butinternational chains are expected to go into the

five-star category.

The Indian hospitality industry is growing at a

rate of 15 percent annually. The current gap

between supply (61,000 rooms) and demand(90,000 rooms) is expected to widen further as

the economy opens and grows.


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The government forecasts an additional

requirement of 200,000 rooms by the turn ofthe century.

A rapidly growing middle class, the advent of

corporate incentive travel and themultinational companies into India has boosted

prospects for tourism. India's easy visa rules,

public freedoms and its many attractions as anancient civilization makes tourism

development easier than in many other

countries.


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Trends that are shaping the Future

of Hospitality Sector are:

1. Low cost carriers:

Travelers in general are more price sensitiveto airfare than they are to hotel room rates.Often a low airfare will stimulate demand fortravel even if hotel prices are increasing. LCCs

are a good option for business travelers, asthey have advantages like low cost, moreoptions and connectivity.


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3. Service apartments:

The concept of service apartments, though a

recent phenomenon in India, is an established globalconcept. Villas in Spain, flats in the UK and

apartment complexes in the US have all created a

viable market for those who want more than just a

room in a hotel. Service apartments are the latesttrend in accommodation, offering the comfort and

convenience of a home without the hassles of having

to maintain or look after it. Ideally suited for

medium-to-long staying guests, service apartmentsare a natural choice for corporate


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4. Technology:

Travel and technology have becomeinseparable. Technology is making its own

advances with high-tech video conferencing

facilities, web cameras and virtual realitymode of conferencing. On-line bookings, e-

ticketing, Wi-Fi Internet connectivity, easy

access to information, etc. are just a few areaswhere technology has completely changed the

way we travel.


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5.Loyalty travel

:

Today, airline-credit card company tie-ups

have brought a whole range of benefits to thetravelers. These include insurance cover,

upgrades, free tickets, access to executive

lounges, and a host of other goodies.


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BENEFITS TO CUSTOMERS:

Since the economy opened up in 1991, several foreign chainshave entered the Indian market, including Hyatt, Four Seasons,Hilton, Regent, Radisson and Holiday Inn. The result is thatthe quality of service has improved. The overseas players have

brought in efficient systems and service standards from Europeand the US. Competition has forced Indian hotel groups toimprove their standards. The customer has benefited in manyways. The influx of foreign players has led to major price warsin the industry. In an attempt to woo customers, Indian hotels

have reduced their tariffs significantly. According to onehotelier, "India has become a normal market -like others inthe West or in Southeast Asiawith demand and supplydetermining the price".


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MARKETING MIX IN THE

HOTEL INDUSTRY THE PRODUCT:

The core product of the hospitality industry whichsatisfies the basic needs of the customer are accommodation

facilities and the services along with it, the food of a restaurantand drinks in pubs/bars etc are also the key products. Apartfrom this there are other tangible elements that are added likeroom service, laundry etc the other services that can be addedare childcare, barber, babysitting, boutiques, currency

exchange, in room telephone service, express check in, expresscheck out, florist, front desk24 etc in case of a hotel.


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PROMOTION:

Promotion schemes should be carried on

regularly. It . is because of its peculiar characteristics

i.e., inseparability, variability, perishability,

intangibility, ownership, etc. While promoting theservices, the advertising should be done through

attractive pictures, travel agents, hoardings,

pamphlets etc. advertisements can also be given on

travel guides which are published by the govtagencies. Some other examples are publicity,

personal selling, word-of-mouth, etc.


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PLACE :

The place in case of hospitality industry

must provide easy accessibility, safe and

convenient in terms of proximity to railway

stations, airports, bus stand, tourist spots,

shopping areas, stations, etc. As we also know

that the closer the places to such importantplaces, the greater are the chances of business.


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PEOPLE:

The people in case of hospitality industry are theemployees like the Chefs, Hostesses, Waiters,Bartenders and Receptionists government, travelagent, tourist, waiters, drivers, etc., who are involved

in real time production of service. Service firms mustfind ways in which they can effectively manage thecontact employees to ensure that their attitudes andbehaviors are conducive to the delivery of servicequality. This is especially important in services

because employees tend to be variable in theirperformance, which can lead to variable quality i.e.heterogeneity in the performance of services.


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SWOT ANALYSIS:-

STRENGHTS

Indias Rich Culture Heritage: With a historical backdrop of 5,000 years,

India is one big package of culture and legend

that ever fails to captivate the imagination of

the visitor.


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Demandsupply gap:

Indian hotel industry is currently facing a mismatch

between the demand and supply of rooms andoccupancy levels. Though new capacities are

expected to come in the next five years demand will

outpace supply in the short to medium term.

Government support: Till a few years ago, the Indian government had a

total negligence towards promotion of tourism. Now

the government seems to have realized theimportance of tourism and is willing to spend towards

the development of the industry. The Incredible

India campaign is a product of this realization.


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WEAKNESSES:-

Poor support infrastructure:

India is currently spending a little amountcompared with its needs, on infrastructure.

China is spending seven times as much as

India. However, over the past 2-3 years, the Government has realized the importance of

infrastructure and has focused on improving it.


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OPPORTUNITIES:

Open sky benefits:

The opening up of the aviation industry in

India brings exciting opportunities for the hotel

industry. Increased competition among airline

companies will further lead to the

development of new and improved services.

Also the open skies policy has benefited both

international and domestic travel.


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THREATS:

Increasing competition:

Global hospitality majors like the FourSeasons, Shangri-La and Amman Resorts are

all making their entry into the Indian market.The Hilton Group is deciding on a comebackand has tied up with the Oberoi Group. Twoother groups - the Carlson Group and theMarriott chain are furiously hunting for newhotels in India's top cities.


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Regulations

The projects have to be approved by

Department of Tourism, New Delhi. They

have to fulfill the required conditions

prescribed by Tourism ministry.


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Conclusion

In the conclusion it can be said that ,

hospitality industry is probably the worlds

fastest-growing, job-creating profession,

employing one in ten people worldwide.Therefore, there is an enormous scope for

those who want to pursue a career in the

industry, plus a huge range of employmentopportunities across the varied sub sectors.


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dipankar marketing mix assignment

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