1. IAM KOLKATA/ EDINBURGH UNIVERSITY
MANISH KUMAR- 40184135
HOSPITALITY BUSINESS DEVELPOMENT
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HOSPITALITY BUSINESS DEVELOPMENT: TSM09801
Evaluate the principles of business development within the context of
managing a successful and profitable hospitality operation. Base your
discussion upon a type or brand of hospitality business of your
choice and illustrate it with appropriate examples.

2. IAM KOLKATA/ EDINBURGH UNIVERSITY
MANISH KUMAR- 40184135
HOSPITALITY BUSINESS DEVELPOMENT
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To start with, the purpose of any business organization is to raise profit with customer
satisfaction being its core value. A business organization has its liabilities which needs
to be fulfilled within a particular time period failing which a company might land into
various complications that are uncalled for.
“Hospitality business development refers to the process by which an organisation uses internal,
external or joint resources in order to launch, improve, modify or extend its offerings in an
existing or new market” (Hassanien, Dale & Clarke, 2010, p. 2)
It focuses on the need of an organization to be at par with the competition, changing
trends and thus grow. It also analyses and evaluates the different aspects of business
growth routes and development processes in the international hospitality industry. It
considers the essentials features of strategic business context in which any hospitality
organization operates. In addition to that it explores all the essential requirements and
challenges of a business process and the implications which these present for
hospitality operators.
With the help of innovation and differentiation a firm can easily climb the ladder of
organizational success. it provides with all the skills and competences to implement
within a particular business development program. While the technology tends to
update and upgrade itself in many aspects, it also explains the shifting nature of
demand and the constant need to evaluate customers expectations as they change very
swiftly.
The parameters of the development program which falls under two important categories
Micro( the system whose variables could be controlled ) and Macro (system of
marketing with variables which are beyond the control of an organization )
environment.(Jones, 2012 a). Its very crucial that the firm has control over all the
variables which validate its proficiency and maintain its liquidity as a source of revenue.
The customers are the main focal point of any business for they not only give the
company revenue but play a vital role in spreading positive word of mouth. A lot of

3. IAM KOLKATA/ EDINBURGH UNIVERSITY
MANISH KUMAR- 40184135
HOSPITALITY BUSINESS DEVELPOMENT
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research from client’s side goes on these days before they tend to select which product
or service to choose out of the countless numbers. So it becomes very important from
a company’s viewpoint to focus all its resources and competences to a particular group
of clientele which is the major source of the revenue. For example a five star deluxe
property can not only depend on free individual travelers to have a full occupancy of
hundred percent. It largely relies on group check in, cabin crew or blanket reservations.
That is where hospitality business development comes to picture. It helps the firm
concentrate on its strengths and also work on the areas that need improvement by
modifying or enhancing the qualities of its current services and product, creating new
products by understanding the needs of the market; by approaching and entering new
markets and by forming management contracts or strategic alliances.
The chosen organization for study is Hyatt regency Kolkata. It is a five star deluxe
business class hotel situated at the heart of salt lake city. Its distinguished
characteristics separate this hotel from the rest of its competition.
There are certain quintessential elements with respect to a business development
paradigm taking a few fields into account which are otherwise discussed below:
Business environment Analysis & Competition analysis : When Asked, the Rooms
division Manager of Hyatt Regency Kolkata Mr. Vikram Kakroo explains that This” Acts
a tool for the feasibility study of the market and whether or not the company’s intentions
of making profit is feasible in the competitive atmosphere it is in.” While Hyatt Regency
has competitors like The Oberoi Grand, ITC Sonar and THE PARK, it has spaced its
clientele which is mostly business oriented. The hotel has developed policies which lure
its niche clients more effectively. for example introducing corporate stay packages
closer to the stay dates of conferences and exhibitions or sightseeing by “Stay a bit
longer” package.
Customer Satisfaction: it is needless to mention how important are customer
interactions and feedback for a company. At Hyatt it is taken to a next level by taking
into account the HYSATT(Hyatt Satisfaction) score given by the customers who have

4. IAM KOLKATA/ EDINBURGH UNIVERSITY
MANISH KUMAR- 40184135
HOSPITALITY BUSINESS DEVELPOMENT
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availed the accommodation services at least once. It grades the services on one to ten
based on the satisfaction he/she has during the stay.
Concept and product design: A concept in hospitality is “an idea or possibility with
definition or identity that defines an image” (Ransley & Ingram, 2004, p.4) It is the
tangible aspect of what is offered to a valued customer. The actual product may vary
from the customer’s preconceived notion of what the product may look like or feel like or
how efficient it is in fulfilling its purpose. Whether or not the product matches all the
criterions based on the variables such as value for money and customer satisfaction.
The Hotel has clearly defined objectives in terms of concept or project design as it has
its clientele defined.
Market research and coverage: Evaluation of various factors affecting the financial
health of the firm is important and since every organization has a niche group of
clientele, each one should make a specific move to attract their set of customers. A
mixed bag of clients is a tough challenge for every organizations these days so a
conclusive effort in this area is a major deal breaker in terms of business. After a year
long research by the DLF hotel managers corporation, headed by Mr. Radheshyam
Saraf, the hotel came into operation on 1st August’ 2000 and it proved to be quite
efficient .
Project Development and Management: It is the responsibility of the hotel management
company in this case DLF hotel managers corporation to take care of all the matters
related to construction and marketing of the upcoming property. It also manages various
concerns with the employees during construction. A development company is important
because it has specific solutions to the specific problems as it specializes with the
same. Moreover it also helps to diversify owners attention towards of importance.
Competitors base: Taking into account the contemporaries statically manifested data
into account could help the business in long run. To an organization which is very new
in its existence industry standards and a little data from the competition could be huge
advantage. There is a theory that suggests that hotels exchange their important and

5. IAM KOLKATA/ EDINBURGH UNIVERSITY
MANISH KUMAR- 40184135
HOSPITALITY BUSINESS DEVELPOMENT
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non confidential data every morning which is very helpful to all the parties. Feedback
from all the customers whether staying at a competitors property is equally important.
Positioning customer relationship and Expectations: While the sole purpose of a
commercially viable organization is to make profit at the end of the day, A lot of effort
could be minimized while laying stress on what the customer might want at any given
point of financial period where he /she avails the firm’s services.. The expectation of a
customer keeps on changing from time to time so hotels need to constantly update their
standard operating procedures with respect to the need of the hour and Hyatt does that
based on the feedback received.
Operating Models: Every hotel has their own set of operating models which
distinguishes them from others. Contrary to the fact that identical services in a two
different hotels are no different, they have their own standard operating procedures
which is unique in every property and is constantly under review. For every task there is
a set of processes which helps the person following them up.
For instance the SOP to complete the checkin and registration process requires to be in
room, within five minutes and asking the guest how his/her day was. Every one follows
that. Additionally photo ID, business card and credit card is asked at once , that too is
followed.
Affiliation arrangements: The hotel is owned by a Mumbai based businessman and is
franchised under a multinational property Hyatt hotels having 496 properties in 47
countries. The name of the company is of competitive advantage when a hotel is in the
chain of properties and helps attract customers and thus developing its growth and
business.
Maintenance and renovation: The hotel is maintained and managed by an outsourced
company called Dynamic. This company takes care of glass cleaning, carpet
shampooing, upholstery cleaning and many other responsibilities including the stores.

6. IAM KOLKATA/ EDINBURGH UNIVERSITY
MANISH KUMAR- 40184135
HOSPITALITY BUSINESS DEVELPOMENT
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Sharing the Hyatt values with these employees with be very advantageous from hotel’s
point of view as they will be gaining interest in it and that is very good for customer
satisfaction.
To conclude , A lot of what an organisation will do to develop its business depends on
its capability which is the adequacy and suitability of the resources and competences of
an organisation for it to survive and prosper” (Johnson, Scholes & Whittington, 2005, p.
117). The firm has to change its business strategies with the changing times and as the
competition moves on. No one would like to pay an outdated product and therefore to
develop any business one has to depend upon changing trends and use technological
advancements to their advantage.
Moreover understanding the market is very crucial for a business to develop as it helps
identify the objective of the firm and the sooner it is the better.
Reference
Books
 Hassanien, A., Dale, C. & Clarke, A. (2010), Hospitality Business Development ,
Oxford: Elsevier. Chs 1
 Ransley, J. & Ingram, H. (Eds), (2004), Developing Hospitality Properties &
Facilities, (2nd
Ed), p.4)
 (Johnson, Scholes & Whittington, 2005, p. 117)
Journal
 Jones and Merricks, Market research society (1992)
 Johnson, G., Scholes, K. & Whittington, R., (2005), Exploring Corporate Strategy,
(7th Ed). Harlow: Pearson. Part 1.
Web-sites

7. IAM KOLKATA/ EDINBURGH UNIVERSITY
MANISH KUMAR- 40184135
HOSPITALITY BUSINESS DEVELPOMENT
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