SERVICE MARKETINGINTRODUCTION TO SERVICE MARKETING Services marketing is marketing based on relationship and value. It may be used to market a service or a product. 7 P’s Use is inseparable. Services do not possess material form.
HOTEL INDUSTRY DefinitionA hotel is an establishment that providespaid lodging on a short term basisA hotel is defined by British law as the place where a bona fide traveler can receive food and shelter, provided he is in a position to pay for it and he is in a fit condition to be received. Hence, a hotel must provide food and shelter and has, in turn, the right to refuse if the traveler is drunk, disorderly, unkempt, or if he is not in a position to pay for the services.
Introduction Linked to the tourism industry Helps to boost travel & tourism Business Travel is included• Demand –supply gap in star category hotels• Opportunity for investment for Indian and over seas players
CLASSIFICATION According to Star One Star (*) Two Star (**) Three Star (***) Four Star (****) Five Star (*****) Five Star Deluxe (*****deluxe)
5 star hotel facilities – ITC 24 hour Services : Business Centre Concierge Services Doctor on call Duty Manager
5 star hotel facilities – ITC In-Room Dining Laundry and Pressing 4 Restaurants, a Lounge and a Bar Art Gallery Baby Sitting Service Beauty Salon Boardrooms and Meeting rooms Broadband and Wi-Fi internet access (chargeable)
5 star hotel facilities – ITC Car and Limousine Hire Service Concierge Courier Service Daily Shuttle to South Mumbai Express Laundry Service Florist Foreign Currency Exchange Gymnasium
5 STAR HOTEL FACILITIES- ITC In-Room electronic laptop compatible safes International Satellite television channels Night Club Outdoor Parking available Outdoor Swimming pool Power adapters upon request Private Bar ( Mini bar) Shopping Arcade The Spa Tour Guides
Future Potential & Growth World Tourism Organisation (WTO) - International tourist inflow in India by 2020 would be 10 m Tourist influx to grow at a CAGR of 6.5% for the next 14 yrs Expected share of world tourism: 1.5% by 2010 Untapped domestic tourist potential Commonwealth Games in New Delhi in 2010 Medical Tourism Rural Tourism Wildlife Tourism
Demand Supply Gap Demand Supply Gap for 2012– 1,50,000 rooms Supply – 1,10,000 rooms Demand – 2,60,000 rooms Demand Supply Gap – 60,000 Supply - 90,000 rooms Demand – 1,50,ooo roomsAmple scope for Indian and global players to set up new projects
Introduction to ITC hotels ITC Limited entered the hotels business in 1975 ITC hotels currently owns and operates 100 hotels in 75 destinations Indias second largest hotel chain They show our heritage The group today operates under different brands: ITC Luxury Collection Hotels WelcomHotel Sheraton Hotels Fortune Hotels WelcomHeritage Hotels WelcomeEnviron
ITC Hotel Properties ITC Hotel Maurya Sheraton & Towers, New Delhi ITC Hotel Grand Maratha Sheraton & Towers , Mumbai ITC Hotel Sonar Bangla Sheraton, Kolkata ITC Hotel Grand Central, Mumbai ITC Hotel Windsor Sheraton & Towers, Bangalore ITC Hotel Kakatiya Sheraton & Towers, Hyderabad ITC Hotel Park Sheraton & Towers , Chennai WelcomHotel Rajputana Palace Sheraton , Jaipur WelcomHotel Chola Sheraton, Chennai WelcomHotel Mughal Sheraton, Agra WelcomHotel, New Delhi WelcomHotel Rama International , Aurangabad WelcomHotel , Vadodara (through associate company) WelcomHotel , New Delhi WelcomHotel Grand Bay, Visakhapatnam
Capacity and demandCapacity(ITC Grand central, Parel, Mumbai) 242 guest rooms and suites Arranging tours for guests(Around 400 people in a day) 24-hour Butler service for all 242 rooms(optimum capacity – 30 rooms at a time) Grand ballroom – 400 to 750 guests at a time 5 conference halls 6 restaurants which can cater roughly 430-500 people at a time viz Kebabs and Kurries, Hornby’s Pavilion, Shanghai Club, Dublin, Frederick’s Lounge and The Point of View.
Capacity and demand The flow of customers is stable but it dips a bit in the rainy season Generally if the customers exceed the capacity then they are given suggestions to go to other ITC properties If the customers want the same area then other hotels nearby are indirectly suggested(eg. Oberoi trident, Taj, Grand hyatt eyc)
CONSUMER BEHAVIOUR AND PERCEPTIONBehaviour(Why customers go?) Disposable money Class/ Status Image of ITC as an excellent brand Luxury expectations References received Personal liking
CONSUMER BEHAVIOUR AND PERCEPTIONTypes(Who goes?) Business class Executives Tourists Local people Party goers Study groups Work groups
CONSUMER BEHAVIOUR AND PERCEPTIONPerception(What do consumers expect/feel?) Excellent conditions High class treatment Effective time management Value for money Rise in social status Safety & Security Hygiene