HOTEL INDUSTRY

• HOTEL INDUTRY IS A PART OF HOSPITALITY . IT IS

LINKED WITH TRAVEL,TOURISM—ANY CHANGE IN
THSE INDUSTRIES WILL AFFECT HOTEL INDUSTRY
• DEMAND FOR HOTEL WILL CHANGE ACCORDING
TO CHANGES IN GOVT.POLICIES,BUSINESS
CYCLE,FESTIVALS, WEATHER
CHANGES,SECURITY,TOURISM DEVELOPMENT
• HOTEL INDUSTRY NEEDS A PROFESSIONAL
APPROACH TO EMERGE SUCCESSFULLY FROM
ANYOF THE ABOVE MENTIONED SITUATIONS.
 MAJOR CHARACTERISTICS OF HOTEL
INDUSTRY
• PERISHABILITY
• LOCATION
• FIXED SUPPLY—NUMBER OF ROOMS FIXED.
• SEASONALITY
• HIGH FIXED COST AND LOW VARIABLE COSTS.
• COMPETITION INTENSIFIED.
• VALUE ADDED SERVICES.
 MARKET SEGMENTATION
• GEOGRAPHIC SEGMENTATION
*Tourist resorts
• *Commercial cernters.
• DEMOGRAPHIC SEGMENTATION
• Premium segment
• Leisure segment
• Budget segment
 Marketing strategy
• The competition has intensified
• Indian customer exposed to services abroad—
has become more demanding
• Fluctuations in hotel industry\
• Many companies have their guest houses
• Indian hotels facing competition from
international chain
 Marketing mix
• Product—consist of accomodation,food,shops, car rental,
recreation, health. Hotel can choose product line considering
segment
• Pricing– A very important and sensitive element..
Competition.,season, govt.policy,economic cycle all affect
pricing.. Multiple taxation has adverse effect…Special discounts
for group booking.
• Place– Business depends upon other industries like
travels,tourism,,transportation. Many hotels enter into
agreements with tour operators, shopping malls,entertainment
providers.
• Promotion– Hotels can communicate and promote directly or
indirectly.– Direct promotion includes sales promotion,direct
mail,,personal selling,advertisement while indirect promotion is
possible through publicity and public relations
 Marketing mix for hotels
• People– It is employees who offer hospitality and care to
the customers.Overseas exposures can be very useful to
understand cross cultures.
Training,motivation,empowerment are some important
issues
• Phjysical evidence –plays very .significant part in
sales..Surrounding well mantained, rooms well
decorated..Brand name can create confidence in the
minds of the customers.
• Process- Hotels must develop processes to give timely
services, reduce idle time..Complete automation not
advisable, some human touch is also necessary
 Recent trends in hotel industry
• Increasing us of MIS—sharing common
database to provide customised
services..Websites are used for online
reservations
• Hotels are targeting female business traveler
class—special health services, extra security
etc.
• Promotional activities to induce travel habits
into domestic travel segments.
 PEOPLE IN SERVICE ORG.
• MACHINES CANNOT REPLACE EMPLOYEES
COMPLETELY.
• PEOPLE CAN BE TRAINED TO HANDLE
DIFFICULT CUSTOMERS/SITUATIONS
• IT IS NOT EASY TO GET & RETAIN GOOD
EMPLOYEES
• SERVICE PERSONNEL CAN BE CLASSIFIED
DIN DIFFERENT WAYS DEPENDING UPON
NATURE AND LVEL OF INTERACTION WITH
CUSTOMERS.—SKILLED,PROFESSIONAL…
LOW-CONTACT-HIGH CONTACT….
FRONTLINE-BACK OFFICE (SERVUCTION ).
• PROBLEMS FACED BY PEOPLE-
--- LACK OF CLARITY OF ROLE/RESPONSIBILITY
-- LACK OF EMPOWERMENT
-- STRESS
-- LACK OF MOTIVATION/RECOGNITION
-- LACK OF FIXED BREAKS/INTERVALS FOR
RELAXATIONS.
• CUSTOMER/EMPLOYEE CONFLICT.
• INTER-EMPLOYEE CONFLICT
• CONFLICTS NEED TO BE HANDLED SKILLFULLY
• PEOPLE STRATEGIES
--- ATTRACTING BEST TALNTS
--- TRAINING (TECHNICAL AND HRM)
--- REMUNERATION
--- MOTIVATION– RECOGNITION—AWARDS
--- EMPOWERMENT

--- IMPROVING QUALITY OF WORK LIFE

-- RETENTION– MINIMUM TURBOVER.