Avari Lahore is a 5 star hotel It has in total 190 rooms, inclusive of – -15 suites, 12 junior suites, executive, brida..l and prudential suits. It’s clientele includes business executives, tour groups and Frequent Individual Travelers(FITs).

1. AVARI
By
Ajay Norman
Ankur Kislaya
Melissa Alex
Shivam Shukla
Saurabh Arora

2. Avari Lahore is a 5 star hotel
It has in total 190 rooms, inclusive of –
-15 suites, 12 junior suites, executive, brida..l
and prudential suits.
It’s clientele includes business executives, tour groups and Frequent
Individual Travelers(FITs).

3. SWOT Analysis
•New entrants like Sheraton
and Holiday Inn with good
international image
•Flights from Europe and US were
expected to start leading to increased
business activity
•Formation of tax free zone giving
boost to industrialization and
business travel.
• Rooms less spacious
• Relatively newer
management
• One of the few 5 star hotels
• Located in heart of the city
• Perceived Better services
S W
TO

4. 0
10
20
30
40
50
60
70
80
90
100
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
Occupancy(%) chart
Avari Pearl

5. Inferences from Occupancy chart -
Average occupancy rate is almost same for both, throughout the year.
Comparison of occupancy rate suggests that Pearl has been able to take
relatively greater advantage of it’s summer package.
Also in November, Pearl’s occupancy rate is more than Avari.

6. Pricing 1998
Room Rates
Single Room(Rs.) Double room(Rs.)
Pearl Avari Pearl Avari
Rack Rate 1786 1806 2086 1986
Commercial Rate 1680 1641 1980 1821
Preferential Rate 1350 1478 1650 1658
Executive Rate 1150 1165 1450 1345
Volume EBS 1000 1020 1300 1200
Suites
Junior Suite 3300 3300
Executive Suite 5500 5500
Presidential Suite 7150 7150
Bridal Suite Complimentry Complimentry

7. 0
200
400
600
800
1000
1200
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
Average room rate(Rs)
Pearl Avari

8. Inferences from Average Room Rate -
Almost through out the year, average room rate of Avari is more than
Pearl
In winters (Nov-Jan), Avg Rate of Pearl increases that of Avari due to
more business.
Tourists and business executives prefer Pearl due to it’s spacious rooms
and larger gardens.

9. Avari Clientele (%occupancy)
11%
61%
3%
9%
3%
2%
7%
4%
Avg of Oct(1987) to Nov (1988)
FIT Business Tours Special Summer Packages Conventions Airlines Others

10. Avari Clientele (%occupancy)
8%
30%
5%
45%
10%
2%
November (1998)
FIT Business Tours Special Summer Packages Conventions Airlines Others

11. Options available -
A – Increasing prices of all rooms by 10%
B – Increasing all rates except EBS and VEBS

12. Pricing Strategies
Option 1:Increasing prices of all rooms by 10%

13. Option 2:Increasing prices of all rooms except EBS & VBS by 10 percent

14. Best Pricing Strategy
It was found that option 2 is better than Option 1.
EBS and VEBS is an important source of income and
hence shouldn’t be increased by 10%, as it will
cause a negative impact on the revenue.
As the increase for EBS and VEBS is growing, if Avari
raises the prices, the companies may choose to go
for the competitor’s services instead.

15. Solution -
We saw that Avari’s occupancy rate decreased in November compared
to previous years.
With hospitality business likely to improve in Lahore due to –
◦ Direct flights expected from US and Europe and,
◦ Tax free zone will ensure industrialization giving boost to travelling.
In scenario like this it is not advisable to increase all rates without
planning.
Considering option 1, where rates for business executives will also
increase, we will be again in risk of loosing potential customers to
competitors.

16. SERVQUAL -
Reliability – Hotel should always abide by the standards in providing
services to customer and maintain their position in longer term.
Assurance – The hotel should ensure the customers that they offer what
they promise.
Tangibles – The hotel should make sure that they have the facilities as
required.
Empathy – The customers should each be made to feel like they are
being equally treated, even though they are paying different rates and
should feel like they’re getting their money’s worth.
Responsiveness – If in case of any concern the customers have, the
hotel must be ready to address such concern.

17. Future solutions
Bundling as a solution
Creating a strong brand image of themselves especially after their
disassociation with Hilton.
Can be done by conducting promotional events and sponsoring large
scale events.

18. Thankyou!