Renaissance Hotels Marketing

1. - AMIT SEKHAR
Renaissance
Hotels

2. History & Introduction
• Incorporated in 1887, The Straits Trading
Company Limited is an investment company.
• It has its stakes in real estate, hospitality,
resources and investments that span the Asia
Pacific region.
• Into the hospitality industry since early 1993.
• Hospitality eventually grew to a network of
13 hotels strategically located in key
destinations across Asia Pacific.
• It has majorly 2 brands of Hotels i.e.
Renaissance Hotels and Resorts International
and The Marque .
• Renaissance Hotels and Resorts
International is the Subsidiary of The
Strait Trading Company Limited having
the base in Sydney, Australia.
“New hotel group committed to creating an
exceptional hotel environment equaled only
by a culture and philosophy centered on
service and genuine value.”
• Renaissance is at the forefront of Business
Class Hotel Brands.
• It includes 4 star and 5 star properties.

3. Background of the Case
• RHI worked out with XS Real Properties with the intention of
international expansion. JVCO known as Renaissance India Hospitality
Pvt. Ltd.
• XS Real has been prominent property developers in Chennai since 1995.
• RHI owns 51% of JVCO. XS Real Prop. support it in:
- Understanding Local market conditions
-Developing contacts
-Business and Brand building strategies and
-To ensure a secure and prosperous entry for RHI in dynamic Indian
market.

4. Reason for entering India
• As a strong regional player with an international hotel brand
Renaissance Hotels cannot afford not to have a presence in India.
• The demand from hotel segment is growing and Renaissance feel
there are huge opportunities to be exploited from Indian market.
• Both the brand targets at the business and luxury segments which
present the largest opportunities in India, where, for now,
company believes, the five-star segments seem to dominate.

5. Plot of the Market Expansion
• Industry analysis
• Analysis of past,
current and future
demand and supply
• Challenges
Phase 1
• Region Analysis
(Kerala)
• Site Analysis (Kochi)
• Industry Analysis of
Kochi
Phase 2
• Economic
Development
• Economic
Indicators
• Findings
Phase 3

6. Phase 1: Indian Hotel Industry Analysis

7. Number of Tourist Arrivals in India (in Millions)
Source: Ministry of Tourism India
5.44 5.16
6.71
8.36
9.95
11.74
13.26
14.38 14.37
17.85
0
2
4
6
8
10
12
14
16
18
20
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
No. of Tourists (In Million)

8. Average Occupancy & Rate Per Room (2005 – 2010)
0
1000
2000
3000
4000
5000
6000
7000
8000
2005 2006 2007 2008 2009 2010
5300
7000
8000 7800
6200
6800
Average Room Rate (in Rs.)
54%
56%
58%
60%
62%
64%
66%
68%
70%
72%
2005 2006 2007 2008 2009 2010
69%
71%
68.50%
60%
65%
67%
Occupancy % age
Source: CWT Travel Management
Institute , HVS International

9. Outcome of Phase 1:
• RevPAR (Revenue per available room), ARR and Occupancy Rate rising
due to lack of room availability and even due to increase in average room
rates by better pricing power in the hands of hoteliers.
• Demand is going to exceed supply by 100% over the next few years. Since
the tourism industry is in the boom phase having the record of 17.85
Million tourists in 2010.
• In next 10 years new hotel development will be high in cities like Delhi,
Mumbai, Bangalore, Hyderabad where as less focus on Kochi, Agra,
Ludhiana, Mysore and Coimbatore.
• Observed that occupancy rate declined by 10 to 15% in premium
segment in 2008, while budget hotel maintained their previous level.

10. Challenges in the Study
• The Mumbai Terror Attack in late 2008 had a direct impact
on the hospitality sector, since it had targeted premium
category hotels and foreigners.
• Global Economic crisis in 2008 , most of the domestic
companies drastically reduced their conferences/conventions
and business trips in order to reduce pressure on their
margins.

11. Remedy to the Challenges
• Since, the given challenges are Uncontrollable and External
in nature . It is suggestible that every company should
maintain a specific financial reserve to utilize it in such
uncertain situations of crisis.
• However, Issues like Terrorism is a safety issue for the
whole nation. The hotels should have intensive security
systems installed. Confidence building measures should
also be undertaken by way of organizing road shows to
ward off unnecessary fear of terrorism from a distance.

12. Phase 2: Region Analysis and Site Analysis of
Kerala

13. Earnings from Tourism in Kerala
1 2 3 4 5 6 7 8 9 10 11 12 13
forex in crore 535 706 983 1267155219882641306728533797422245725561
total rev in crore 4500493159386829773891261143131313231734190320432292
0
5000
10000
15000
20000
25000
Rs(inCrore)
Source:
https://www.keralatourism.org/tourismstatistics/tourist_statistics_201320140503101627.pdf

14. Tourist Hot Spots of Kerala
1. Tea Gardens (Munnar)
2. Kerala Backwaters (Kumarakom)
3. Guruvayur Temple (Guruvayur)
4. Chottanikkara Bhagavathy Temple (Kochi)
5. Athirappilly Waterfalls (Thrissur)
6. Varkala Beach (Varkala)
7. Shri Padmanabhaswamy Temple (Trivandrum)
8. Wonderla Amusement Park (Kochi)
9. Kashi Art Gallery (Kochi)
10. Athirapally Falls (Athirapally)

15. Kochi
1. Intercontinental Hotel Group made two project :-
Crowne Plaza hotel with KGA group at Maradu.
Mall- Hotel development by the Marriott group.
2. Kochi is responsible for accommodating 60% of
the total tourists from the foreign leisure
segment.
3. Presently , the city has an inventory of 580 rooms
in the premium category.
4. Ayurveda Continues to fuel the growth of Medical
Tourism .
5. The Special Heritage Zone at Fort Kochi
continues to increase its room inventory with a
number of old structures being converted into
heritage hotels.
1. 5-star deluxe category : Hotel casino & hotel
Taj Malabar
2. 5-star category : Hotel Le Meridian,
Renaissance , Taj Residency, Trident Hilton.
3. 4-star category: Gokulam Park Inn, Hotel
Avenue Regent, Presidency Inn.
4. Budget Hotels: The Abad Group had three
hotels , with the ARR of Rs. 1975. And another
one was The Avenue Standard Hotel.
5. Heritage Hotels : Kerala Govt. Declared Fort
Kochi, Mattanchery, Fort Vypeen and Willingdon
Island as heritage zones .

16. Phase 3: Economic Indicators of Kochi
0 200000 400000 600000 800000 1000000 1200000 1400000 1600000
2001
2011
2021
2026
Projected population of Kochi city
Total Panchayaths-13 Municipalities-2 Cochin Corporation
Source: Center for Population Studies, Cusat

17. Per Capita Income Of Eranakulam District
Source: http://www.kerenvis.nic.in/Database/Economics_830.aspx.
Department of Economics & Statistics
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
2004-05 2005-06 2009-10 2010-11 2011-12 2012-13
36,800
40,364
78,351
85,070 86,572
94,392
Per Capital Income(in Rs)

18. SWOT Analysis of Renaissance Hotels
Strengths
- High Quality Development of Services
- Exceptional hotel environment equaled only by culture and genuine
value
Weaknesses
- Geographical Presence is not very strong
- Focuses more on Business Customers
Opportunities
- Huge potential to tap Middle level income group in India.
- Growth Opportunities in BRIC Countries
Threats
- Increasing Competitive Pressure
- Hotel Industry : Business Risk

19. PEST Analysis of Indian Hotel
Industry

20. Political Environment
1.Industry is getting huge incentives and the state
governments are supporting the development of the
hotels and their growth.
2. Government charges huge amount of tax from the
luxury category of hotels and thus has a huge impact
with the political changes that occurs.
3. The Terror attack in Mumbai on Taj and the Oberoi’s
had brought a concern on the faces of the hoteliers.
Economic Environment
1. Guests are willing to pay for the services they get
and the more the guests pay , the more the hotel and
the industry would prosper.
2. With the increase in the paying power of the guests
the need for the good and luxurious hotels has
become massive.
3. The per capita income in India has also rose to a
new extent enabling the common man to go
to luxurious hotels to have a lunch or a dinner.
Socio-Cultural Environment
1.The hotel markets its business with the help of the
local festivals and long trusted and cherished Indian
culture.
2. “War of meat- Beef and Pork.”
3. Indian customers are highly price sensitive.
Technological Environment
1. Everywhere web based platforms are used for
search and transactions.
2. India being an IT superpower is capable enough
for future development of fully technology enabled
hotels.
3.The transportation system is still not of
international standards.

21. Marketing Mix

22. • Service Mix (Services and Amenities)
1. The Hotel and Resort provides
wide Array of services according to
the guest’s needs and demands. The
Service Basket includes :
Concierge Service, 24*7 Room
Service, Mini Bars, Valet/ Laundry
Service, Business Centre, Wi-fi
Services, Fitness Centre, Pools,
Meeting Lounges, Conference
Rooms, Sauna and Spa, Outdoor
Services, Multi Cuisine Restaurants
and Cafe.
• Price Mix
1. The Hotel Charges the price
according to the BTC as well as
according to the rooms availed.
2. Generally the rate ranges
average from $AUD164 to
$AUD284* per night per person.
Depending upon the Room type.
3. The Hotel also have strategy to
charge group rates . If there are
five or more rooms availed.
* Because rates may vary outside of
the range

23. • Place Mix
80 properties with over 13,000
rooms under management across
25 locations.
Prime Locations in Asia Pacific
regions like:
 Hong Kong
 Australia
 Singapore
 Thailand
 China
 New Zealand
• Promotion Mix
1. Free! All children under 12
years stay free of charge when
using existing beds.
2. International and Regional
Trade shows and events- access to
leisure and corporate
accommodation programs.
3. Different slab rates while
booking from different portals like
Booking.com, Expedia.com
4. The Hotel Promotes itself under
the title
“Stay Like a Local” 

24. Segmentation ,Targeting and Positioning
Geographic
Demographic
Psychographic
Asia Pacific Region
High Income Group
Outdoor and Culture
Oriented Customers
Positions itself as a property
with high Global Standards
along with pro-standardizations
and certifications.
Exceptional hotel environment
induced only by culture and
philosophy centered on service
and genuine value.

25. Demand Estimation of Tourism Market in Kerala
for the benefit of RHI
Year
Foreign Tourist Arrivals
(5% Annual Growth)
Domestic Tourist Arrivals
(3.5 % Annual Growth)
2010 309000 6900000
2011 324000 7141000
2012 340000 7391000
2013 357000 7650000
2014 375000 7918000
2015 394000 8195000
2016 413000 8481000
2017 434000 8778000
2018 456000 9086000
2019 479000 9404000
2020 503000 9733000
2021 528000 10073000
2022 554000 10426000
Tourist Traffic Projection (2010-2022)
Source: http://tourism.gov.in/CMSPagePicture/file/marketresearch/statewise20yrsplan/Kerala.pdf

26. Growth Strategy for Renaissance
(Model of Growth)
1. EXPANDING THE
TOTAL MARKET
2. DEFENDING THE
MARKET SHARE
3. EXPANDING THE
MARKET SHARE
•The company should
expand its business in the
BRIC countries where there
is still huge potential to
explore the markets and the
customers.
•Enhancing Branding Skills,
Hospitality Skills and
Positioning in the market.
•Designing Room Booking
Packages and giving
promotional offers to the
business class.
•Focus on the Occupancy
Rate so as to increase the
more number of guests in
the property.
•The more the services
consumed- the more will be
market share.

27. Findings of the Study
• Tourism Affected due to Economic Slowdown and Mumbai Attacks.
• Cochin expected the 0.2 million Volvo Ocean Race tourists but terror
attacks reduced inbound foreign tourists. Owing to this hotels reduced tariff
rated by 10-15% during its peak.
• India, Hot Destination for hotel chains is looking for growth. WTTC of
India ranked INDIA on 18th in business travel and estimated it will be in
top 5 in next decade.
• Indian Hotel Industry adding 60,000 quality rooms by next coming 2 years.
• Government approved 300 hotel projects , half of it were of luxury range.
• More than 50 international budget hotel chains moving to India.

28. • Kochi had the most number of new hotel developments .By 2012, Kochi was
estimated to have 4% of the overall supply of rooms in 5-star deluxe, 5-star and 4-
star category.
• Kochi is constantly developing city. Kochi Corporation will have population
increase of 10% per decade. Ernakulam district had highest per capita income in
Kerala of Rs. 40,364.
• Ernakulam district is among leading in terms of tourist arrivals, transport
system(only city connected by roadways, airways and a seaport. Hence it’s a
Gateway to Kerala.
• Kochi has witnessed a shift from being a transit and a leisure destination to a
business destination. MICE segment is becoming major source of revenues
generation.
• The Hotels in the Premium segment had an average occupancy of 54% over the
year.
• International Players were adding 1,081 rooms in the premier category.

29. Conclusion
Since Kochi is considered as a Business destination , it has a
huge potential of tourists. The demand and supply vividly
shows the need for more rooms in 5 star deluxe, 5 star and 4
star category. It has huge opportunity for the Renaissance to
open up its operations along with the competitive
environment.
Within the limit of study it is possible conclude that
Renaissance India with its years of experience can carve out its
portion of hospitality in Kochi Market.