Hotel Industry : Service Industry


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Search Quality
Experience Quality
Credence Quality
Levels of Product
Demand & Supply Problem
Customer Satisfaction
7 P's
Positioning & IMC

Published in: Business, Travel

Hotel Industry : Service Industry

  1. 1. Hotel Industry- Case Study Presented by: Aditya Pilkhane, Anurag, Sanjay, Simran, Smriti and Shikhar PGDM-B 3/4/2013 Aditya, Anurag, Sanjay, Simran, Shikhar & Smriti 1
  2. 2. Search Quality The location of the service provider should be apt. A service provider having high brand value/equity if present near slums, then the customers might not go to that service provider for taking the service • Close proximity to: – Railway Stations/Airport/Bus Stops: Leisure & Business Travelers – Business/IT Parks: Business Travelers – Lush Green fields outside/away from the main city: Leisure Travelers – Shopping Stores/Malls/Sight-Seeing places: Leisure & Adventure Travelers • Others: – Spacious Entrance & Clean – No street vendors near the hotel – Strategic Location: Near the sea/hills(good scenery) – Easily Visible: External Signage – Reviews on Website, social media, Travel Magazines 3/4/2013 Aditya, Anurag, Sanjay, Simran, Shikhar & Smriti 2
  3. 3. Experience Quality It can be described as the physical evidence of the service provider. The following are the necessary steps to provide a good first impression to the consumers: • • • • • • Good music/soothing music in lobby, lift etc. Attractive paints on the walls/Painting on the wall Leather sofas: business travelers Couch/Bean bags: Adventure/Leisure travelers Appoint Interior Designers for the rooms, lobby, spas, etc Fresh/Soothing Air Fresheners 3/4/2013 Aditya, Anurag, Sanjay, Simran, Shikhar & Smriti 3
  4. 4. Credence Quality Aspects of services that cannot be evaluated by a consumer even after 'consumption' but have perceived value. Just after consuming the service he may be satisfied with the service however after sometime the consumer may be unsatisfied due to some reason. So how to address the problem? TAJ Hotels: National Awards 3/4/2013 Aditya, Anurag, Sanjay, Simran, Shikhar & Smriti 4
  5. 5. Credence Quality- Continued TAJ Hotels: Global Awards •Reviews on Travel websites & Travel Magazines •PR Agencies 3/4/2013 Aditya, Anurag, Sanjay, Simran, Shikhar & Smriti 5
  6. 6. 4 Levels of Product Potential Service • Arrangements for Long Stay • Complete Personalization Augmented Service • Spa, Massage Center • Swimming pool • Meeting Room/Wedding Arrangements Expected Service • 24 hour Room Service • Cab Facility/Pick up Drop • Wi-Fi facility Core Service 3/4/2013 • Luxury Room • Restaurant/ Various cuisines Aditya, Anurag, Sanjay, Simran, Shikhar & Smriti 6
  7. 7. Demand & Supply- Problem • Demand exceeds maximum available capacity: potential business may be lost (e.g., overbooking of hotels) • Demand exceeds the optimum capacity level: No customer is turned away, but quality of delivered service is reduced for all customers (e.g., Unsatisfied customers, restaurant where every table is occupied). • Demand is below optimum capacity and resources are under-utilised. Hotel allocates a certain percentage of its rooms to different customer segments during different seasons (charges multiple prices) 3/4/2013 Aditya, Anurag, Sanjay, Simran, Shikhar & Smriti 7
  8. 8. Customer Satisfaction • • • • • Loyal Customers: Guest Preferences Inform them before hand during the Peak season, ask them to pre-book the rooms. Loyalty Program: Points Systems, Ask the customers to visit and redeem the points and get discounts. Normal Customers: Satisfy them by giving good service whenever they arrive in the hotel. To lure them, ask normal customers to enroll for Loyalty Program. Charge Premium Amount: For enrolling as loyal customers Expansion: Then go ahead with expansion of the Hotel and increase capacity. 3/4/2013 Aditya, Anurag, Sanjay, Simran, Shikhar & Smriti 8
  9. 9. Product ● Room ● Restaurant and Bar ● Meeting room and Banquet facility ● Lounge Special Service ● Courier● Child Care ● Laundry ● Travel Desk ● Baby Setting ● Wake up call ● Boutiques ● Spa & Massage Centre ● Currency exchange ● ATM ● Gift Shop Price ● On basis of Segmentation i. Business Class ii. Executive Class iii. Leisure Travelers 3/4/2013 Aditya, Anurag, Sanjay, Simran, Shikhar & Smriti 9
  10. 10. Place ● All Metro Cities ● Tourist Destinations ● Global Location Promotion ● Promotional schemes are carried on regularly the hotel has many loyalty programe, club, membership ,privilege. ● Social Media Sites: Facebook, You tube: Exclusive pages (quality) ● Offer Last minute special deals limiting the availability ● Promote through E-Mail ● Advert in Outlook Travel, GO Now and other travel magazines ● Reviews on online travel websites: Trip Advisor, Make my trip etc. 3/4/2013 Aditya, Anurag, Sanjay, Simran, Shikhar & Smriti 10
  11. 11. Physical Evidence ● Good Interiors ● Proper Coloring ● Music in lobby & lifts ● Fresh Fragrance Process ● Check – in ● Bell boy carrying Luggage ● Food ● Wake up Call ●Information for the breakfast, lunch & dinner menu & timings and any customized menu ● Billing ● Check out People ● Skilled & Experienced People ● Professionals ● Tech Savvy ● Travel Agents ● Issue of Attrition has to be addressed ● Proper Training time to time – Promotion for employees 3/4/2013 Aditya, Anurag, Sanjay, Simran, Shikhar & Smriti 11
  12. 12. Positioning & IMC Different Segments & Methods of IMC to be adopted:  Business Travelers: In off peak season, tie up strategic alliances with corporate for their meetings to be conducted in our hotel. Promote via- Social Media, Websites, Corporate Seminars, Business & Travel Magazines  Wedding Season: Promote via: Matrimony sites, newspapers etc  Sports Events: Promote via-Sports websites  Religious Gatherings: Promote via-Word of mouth  Environment Conscious: ECO Hotels; Promote via- Social Media, Websites & Travel Magazines  Value Driven packages: All groups of travelers (Include all the services); Promote via- Website, strategic alliances with agents etc  Affordable Positioning: During Peak Season; Promote via- Website, Word of mouth 3/4/2013 Aditya, Anurag, Sanjay, Simran, Shikhar & Smriti 12
  13. 13. Thank You! 3/4/2013 Aditya, Anurag, Sanjay, Simran, Shikhar & Smriti 13