4. SERVICE MARKETING
INTRODUCTION TO SERVICE
MARKETING
Services marketing is marketing based
on relationship and value. It may be used
to market a service or a product.
7 P’s
Use is inseparable.
Services do not possess material form.
6. HOTEL INDUSTRY
Definition
A hotel is an establishment that provides
paid lodging on a short term basis
A hotel is defined by British law as the place where a bona
fide traveler can receive food and shelter, provided he is
in a position to pay for it and he is in a fit condition to be
received. Hence, a hotel must provide food and shelter
and has, in turn, the right to refuse if the traveler is
drunk, disorderly, unkempt, or if he is not in a position to
pay for the services.
7. Introduction
Linked to the tourism industry
Helps to boost travel & tourism
Business Travel is included
• Demand –supply gap in star category
hotels
• Opportunity for investment for Indian and
over seas players
9. MOTEL
Definition
A motel (Motor Hotel) is a hotel which is for
a short stay, usually for a night, for
motorists on long journeys. It is built
conveniently close to major roads and
intersections.
10. DIFFERENCE BETWEEN HOTEL
AND MOTEL
Definition
Location
Restraunts and eating
Pricing
Facilities
Appearance
Duration
11. CLASSIFICATION OF HOTEL
MARKET SEGMENT
• Economy / limited services hotels
• Mid Market Hotels
• All suite Hotels
• Time share Hotels
• Executive Hotels
• Luxury / Deluxe Hotels
12. CLASSIFICATION
According to Size
Small Hotels (150 rooms)
Medium Hotels (up to 299 rooms)
Large Hotels (up to 600 rooms)
Extra Large Hotels (above 600 rooms)
13. CLASSIFICATION
Level of Services
World Class Services
Mid Range Services
Economy / Limited Services Hotels
14. CLASSIFICATION
Ownership and Affiliation
Independent Hotel
Chain Hotels
Franchisee Hotels
15. CLASSIFICATION
According to Star
One Star (*)
Two Star (**)
Three Star (***)
Four Star (****)
Five Star (*****)
Five Star Deluxe (*****deluxe)
16. 5 star hotel facilities – ITC
24 hour Services :
Business Centre
Concierge Services
Doctor on call
Duty Manager
17. 5 star hotel facilities – ITC
In-Room Dining
Laundry and Pressing
4 Restaurants, a Lounge and a Bar
Art Gallery
Baby Sitting Service
Beauty Salon
Boardrooms and Meeting rooms
Broadband and Wi-Fi internet access
(chargeable)
18. 5 star hotel facilities – ITC
Car and Limousine Hire Service
Concierge
Courier Service
Daily Shuttle to South Mumbai
Express Laundry Service
Florist
Foreign Currency Exchange
Gymnasium
19. 5 STAR HOTEL FACILITIES-
ITC
In-Room electronic laptop compatible
safes
International Satellite television channels
Night Club
Outdoor Parking available
Outdoor Swimming pool
Power adapters upon request
Private Bar ( Mini bar)
Shopping Arcade
The Spa
Tour Guides
20. Future Potential & Growth
World Tourism Organisation (WTO) - International tourist
inflow in India by 2020 would be 10 m
Tourist influx to grow at a CAGR of 6.5% for the next 14 yrs
Expected share of world tourism: 1.5% by 2010
Untapped domestic tourist potential
Commonwealth Games in New Delhi in 2010
Medical Tourism
Rural Tourism
Wildlife Tourism
21. Demand Supply Gap
Demand Supply Gap for 2012– 1,50,000 rooms
Supply – 1,10,000 rooms
Demand – 2,60,000 rooms
Demand Supply Gap – 60,000
Supply - 90,000 rooms
Demand – 1,50,ooo rooms
Ample scope for Indian and global players to set up new projects
28. Introduction to ITC hotels
ITC Limited entered the hotels business in 1975
ITC hotels currently owns and operates 100 hotels in 75
destinations
India's second largest hotel chain
They show our heritage
The group today operates under different brands:
ITC Luxury Collection Hotels
WelcomHotel Sheraton Hotels
Fortune Hotels
WelcomHeritage Hotels
WelcomeEnviron
29. ITC Hotel Properties
ITC Hotel Maurya Sheraton & Towers, New Delhi
ITC Hotel Grand Maratha Sheraton & Towers , Mumbai
ITC Hotel Sonar Bangla Sheraton, Kolkata
ITC Hotel Grand Central, Mumbai
ITC Hotel Windsor Sheraton & Towers, Bangalore
ITC Hotel Kakatiya Sheraton & Towers, Hyderabad
ITC Hotel Park Sheraton & Towers , Chennai
WelcomHotel Rajputana Palace Sheraton , Jaipur
WelcomHotel Chola Sheraton, Chennai
WelcomHotel Mughal Sheraton, Agra
WelcomHotel, New Delhi
WelcomHotel Rama International , Aurangabad
WelcomHotel , Vadodara (through associate company)
WelcomHotel , New Delhi
WelcomHotel Grand Bay, Visakhapatnam
32. Marketing mix - Promotion
Promotion through FMCG goods
Internet
Media reports and media releases
Concept promotion
Customers
Social service projects
Travel assistants
Hotel directories
33. Marketing mix - People
Receptionists
Bell boys
Laundry servicemen
Butlers
Room service
Chauffers
Managers
Cleaners
Assistants for guests
Chefs
Waiters etc
34. Marketing mix - Place
Strategic Locations
Metropolitan cities
Business hubs
Tourist places
Heritage areas
Upcoming areas
36. Capacity and demand
Capacity(ITC Grand central, Parel, Mumbai)
242 guest rooms and suites
Arranging tours for guests(Around 400 people in a day)
24-hour Butler service for all 242 rooms(optimum capacity –
30 rooms at a time)
Grand ballroom – 400 to 750 guests at a time
5 conference halls
6 restaurants which can cater roughly 430-500 people at a
time viz Kebabs and Kurries, Hornby’s Pavilion, Shanghai
Club, Dublin, Frederick’s Lounge and The Point of View.
37. Capacity and demand
The flow of customers is stable but it dips a
bit in the rainy season
Generally if the customers exceed the
capacity then they are given suggestions to
go to other ITC properties
If the customers want the same area then
other hotels nearby are indirectly
suggested(eg. Oberoi trident, Taj, Grand
hyatt eyc)
39. Service quality
Hospitality
Materialattributes – food, toiletries,
complimentary goods etc
Time management – efficiency in service
Communication
Presentation
41. CONSUMER BEHAVIOUR AND
PERCEPTION
Behaviour(Why customers go?)
Disposable money
Class/ Status
Image of ITC as an excellent brand
Luxury expectations
References received
Personal liking
42. CONSUMER BEHAVIOUR AND
PERCEPTION
Types(Who goes?)
Business class
Executives
Tourists
Local people
Party goers
Study groups
Work groups
43. CONSUMER BEHAVIOUR AND
PERCEPTION
Perception(What do consumers expect/feel?)
Excellent conditions
High class treatment
Effective time management
Value for money
Rise in social status
Safety & Security
Hygiene