MARKETING OF SERVICES

HOTEL MARKETING

INDRANIL MUTSUDDI
FACULTY MBA DEPARTMENT
 Core Issue
• The demand for hotel facilities has a
variety which a few manufactured products
have.
 Basic Assumptions

• Hotel customers are referred to as “guests” as they

receive hospitality.

• A hotel is “immovable” in contrast to a manufactured

product or service which is “mobile”.

• The capital investment in a hotel industry is generally

high & the gestation period for adequate returns on the
investment is normally long.
 Basic Assumptions
• The demand for hotel facilities has a variety which a few
manufactured products have.

• Some hotel facilities are quickly perishable just as empty

airline seats.

• Hotels are not only in competition with other hotels, but

also with the products & services of other industries.
 Hotel Market Segments
• The market for the hotel will be served according
to what is provided, how it is provided, and for
how much is it provided.
 Hotel Market Segments
Independent Guests:
– Holiday-tourism oriented
– Business traveller oriented
– Conference oriented
– Foreign vs domestic traffic oriented

Groups:
– Customers travelling in groups comprise another
segment ( eg Touring groups, conference groups).
 Hotel Market Segments
Special Groups:
– Like those of vegetarian & Non-vegetarian
Customers
 Primary & Secondary levels of Demand

Primary
Level  Basic demand which exists for hotel
facilities but not being served at present.

 Displacement demand rising from the

clients of other hotels where customer
needs are not fully met.
 Primary & Secondary levels of Demand

Secondary
Level  Created demand which does not exist so
far, & arising from people who do not
normally use hotel facilities, or from
people who do not use them in a particular
area.

 Futuristic demand which may occur at

sometime in the near future.
 Potential Buyers for Accommodation

Accommodation
 Transit tourists
 Terminal tourists
 Traveling businessmen
 Visiting personnel (businessmen)
 Organized tours
 Conventions, seminars, workshops,
conferences, meetings etc
 Social visitors (wedding or other social
functions)
 Potential Buyers for Catering Services

Catering
Services  Occupant customers staying in the hotel
 Transit or change customers
 Organization & societies
 Local business customers
 Meetings & conferences
 People on tour
The Taj Group's first hotel, The Taj Mahal Palace &
Tower, Mumbai was created by Mr.Jamshetji
Nusserwanji Tata, and opened on December 16, 1903.
TAJ brands have been classified as

 Luxury

 Business

 Leisure.

www.tajhotels.com
The Oberoi Group, founded in 1934, owns and
manages thirty hotels and five luxury cruisers
across six countries under the 'Oberoi' &
'Trident' brands. The activities of the Group
include airline catering, management of
restaurants and airport bars, travel and tour
services, car rental, project management and
corporate air charters .
The Oberoi, New Delhi
The Oberoi, Mumbai
The Oberoi Towers, Mumbai
The Oberoi, Bangalore
The Oberoi Grand, Kolkatta
The Oberoi Amarvilas, Agra
The Oberoi Rajvillas, Jaipur www. oberoihotels.com
The Oberoi Udaivillas, Udaipur
ITC Ltd entered the hotels business in 1975 with the acquisition of a hotel
in Chennai, which was rechristened Welcomgroup Chola Sheraton.
Today amongst India's finest and fastest growing hotel chains, it
consists of over 55 hotels across more than 45 destinations in India.
These include super deluxe and five star hotels, heritage palaces, havelis
and resorts and full service budget hotels. These hotels are managed by
ITC's subsidiary, ITC Hotels Limited.

 ITC Hotel Grand Maratha Sheraton & Towers, Mumbai

 ITC Hotel Sonar Bangla Sheraton & Towers , Kolkatta

 ITC Grand Central & Towers, Mumbai

www.welcomgroup.com
 The Hotel Product

Components of the hotel product include

those of:
– Accommodation
– Food & beverages
– Recreation
– Health
– Shops
– Car Rental Services

F&B component offers greater scope of flexibility for a hotel

 Product Line: Royal suites, Bars, Thai restuarant,
Sauna, Ayurvedic Spa centre, Steam bathing pools

 Service Line: Online booking, Laundry, Yoga, Internet

Services, First aid, Barber shop & beauty salon. In-
room Electronic Safe, Baby sitting, Doctor on call
service
 Product Line: Deluxe rooms, Bars,
Thai restuarant, Sauna, Massaging
centers. Cocktail bars, Sweet &
Snacks shops
 Service Line: Online booking,
Laundry, Yoga, Internet Services,
First aid, Barber shop & beauty salon,
Baby sitting
 Product Line: Suites, Mini-Bars, Chinese
restuarant, Sauna, Massaging centers.
 Service Line: Online booking, Laundry, Yoga,
Internet Services, First aid, Barber shop &
beauty salon, CCTV, CNN, Star TV, BBC,
channel music, In-room Electronic Safe, Baby
sitting, Doctor on call service
 TAJ - Vision
“To lead and become the global benchmark in the
industry, in India and key regions of the world. To
dazzle and delight the customer with the highest
quality hotel products, food and beverage
experiences, and above all, exceptional service
standards."
 OBEROI
Vision: “See
the world dotted with hotels of The
Oberoi Group, in strategic commercial and resort
locations”

Mission: An organization which aims at leadership in

the hospitality industry by understanding its guests,
and designing and delivering products and services
which enable it to exceed their expectations. We will
always demonstrate care for our customers through
anticipation of their needs, attention to detail,
distinctive excellence, warmth and concern.  
 ITC Hotels
Vision: Sustain ITC’s position as one of India's
most valuable corporations through world class
performance creating growing value for the
Indian economy and the company shareholders.

Mission: To enhance the wealth generating

capability of the enterprise in a globalising
environment delivering superior and sustainable
stake holder value.
trategies…
 Strategies-Product
The Taj Mahal Palace & Tower has an old-world Heritage
Wing and a contemporary Tower Wing, offering a total of
582 rooms, including a Club Floor and 49 suites. The
hotel's premium suites have been used by royalty and
Heads of State.

Bollywood Night. Maharaja's Welcome. Nawabi

Evening. Thali Dinner. Boat Cruise. Fishing Village.

Taj Shopping, Taj Ayurveda, Taj Club, Taj Ghazana

(Fashion, Crafts, Jewellery)

Reception, Area, Rooms, Entertainment, Shopping, Personal Care, Medical,

Restaurants, Bars, Lounges, Swimming pools, Parks
  Suites, Mini-Bars, Chinese restuarant,
Sauna, Massaging centers.
 Semi deluxe and deluxe rooms, Suites

Reception, Area, Rooms, Entertainment, Shopping, Personal Care, Medical,

Restaurants, Bars, Lounges, Swimming pools, Parks
 Strategies-Place

Kala Ghoda Art District , Victoria Terminus, Gateway of India,

Marine Drive, Flora fountain, Chowpatty Beach, Malabar hill,
ElephantIsland, Juhu Beach

Near Airports, Bus stands, Stations, Ports, Tourist spots, Shoppings areas, Places
of worship
  ITC Hotel Grand Maratha Sheraton & Towers,
Mumbai

 ITC Hotel Sonar Bangla Sheraton & Towers ,

Kolkatta

 ITC Grand Central & Towers, Mumbai

Near Airports, Bus stands, Stations, Ports, Tourist spots, Shoppings areas, Places of
worship
 Pricing
• It is difficult for a hotel to exercise differential pricing
except for certain specific purposes.

• Hotel pricing tends to follow or conform to pricing

standards applicable to
– the particular city area or resort
– Competitive hotels
– Amount of traffic generated in the hotel location
– Tourist locations
– Venue of National/International conference

• These may typically be differentials in tariffs & prices

– during the peak & lean seasons;
– group rates
– Contact rates for airline crews
– Tourism year syndrome
 Strategies-Price
5 star, 4 star, 3 star

If you are expected at the hotel after midnight or in the early hours
of the morning, your room will be held from the night previous to
the date of arrival and will be charged for accordingly. E.g. For
Check-ins at 0100 hrs on 14th July, the room will be held from the
night of 13th July and be charged for accordingly.

Occupancy period, Star Category, Air-conditioning, Location, Room Services

  Rates in USD/Rates in INR
 Single Occupancy (Room Type)
 Double Occupancy
 Superior City View
Room230/255(USD)/7500/8500(INR)
 Harbour View Deluxe
 Ocean View Room
 Executive Suite
 Deluxe Suite
 Presidential Suite
 Rates are subject to 06% State Tax

Occupancy period, Star Category, Air-conditioning, Location, Room Services

 • Rates in USD/Rates in INR
• Single Occupancy (Room
Type)
• Double Occupancy
• Superior City View
Room230/255(USD)/7500/850
0(INR)
• Harbour View Deluxe
• Ocean View Room
• Executive Suite
• Deluxe Suite
• Presidential Suite
• Rates are subject to 06% State
Tax

Occupancy period, Star Category, Air-conditioning, Location, Room Services

 Distribution
• The hotel does not journey to its customers to
consummate its services..

• Hotel distribution depends on interdependence

with other industries serving travellers & tourists
which include,
– Travel agents & tour operators,
– National & state tourism organizations,
– Shopping & entertainment providers.
Front stage

Make Reservation

Arrive Valet Parking

Bell boys carries bags to Use guest room facilities

Check-in at Reception room

Room service delivers breakfast

Cocktail served in Bar Make Phone Calls Meal Served in

Restuarant

Retire for night Watch Pay TV, Movies in

room

Checkout pay Cashier Retrieve car, Depart

Customer Management
 Customer Management
 We, as members of the Oberoi Organization are committed to display
through our behaviour and actions the following conduct, which applies to all
aspects of our business.
 

 Conduct which is of the highest ethical standards - intellectual, financial and

moral and reflects the highest levels of courtesy and consideration to others.
 

 Conduct which builds and maintains teamwork, with mutual trust as the
basis of all working relationships.
 
 Conduct which puts the customer first, the Company second and the self
last.

 
 Communications
• Hotel marketing communications are either
direct or indirect.

• Direct communications take place through

personal selling, advertising , sales promotion
and direct mail.

• Indirect communications for hotels include public

relations and publicity.
 Advertising
• It is an effective and long term effort to inform the
customer about the existence of the property, giving
details about the location & types of facilities offered.

• It is aimed at influencing the attitude of the customer to

bring about his acceptance of the particular service
offered.

• It aims to inform & persuade the consumer or the travel

trade to change, to influence their attitude towards the
advertiser’s products or organization.
 Advertising
• Informative Advertising: It is necessary for a
new hotel or a hotel offering new facilities or
services which are different from the past.

• Persuasive Advertising: It is aimed at a more

competitive situation where desired business
from all departments of the hotel is not achieved.
 Objectives for Hotel Advertising
• To increase sales
• To create awareness w.r.t. facilities services available.
• To create awareness or interest in benefits to be gained
by patronising hotel.
• To create awareness of interest in versatile advantages
of the hotel.
• To create awareness of interest in resources behind the
hotel
• To create awareness of interest in endorsement from
satisfied guest customers.
 Objectives for Hotel Advertising
• To effectively counter wrong impression created
by competitors, media, public opinion.
• To educate guests/customers on conveniences,
atmosphere & general finesse, new
facilities/services provided.
• To create a favourable image of the hotel.
 Advertisable Hotel Products &
Services
• Conventions, conferences and meetings
• Room occupancies
• Reservation for various hotel facilities
• Good eating & top class food.
• Family dinner
• Dining, dancing and disco theques
• Bar & permit rooms
• Buffets, special dinners and lunches
• Sophisticated entertainment
• Social functions & festival parties
 Sales Promotion
• Three groups of activities under sales
promotion in hotels include:
– Trade promotions
– Consumer promotions
– Display
 Strategies-Promotion
TV commercial
Print ads
Event Sponsorship
Public Relations
Special Holiday Packages

Advertising, Publicity, Sales promotion, Word-of-mouth promotion, PR

 TV commercial
 Print ads
 Event Sponsorship
 Public Relations
 Special Holiday Packages

Advertising, Publicity, Sales promotion, Word-of-mouth promotion, PR

 cars parking facility
 Banquet halls which depicts Indian culture
 Special Gift Delivery Vans for festival seasons
 Ex-service Security personnel
 Beautiful Landscapes

Letters, Packets, Parcels, Documents, Receipts, Post box, Mail Van, Stamps, Seals,
Pin code, Addresses, Proof of Delivery.
 Strategies-Physical Evidence
250 cars parking facility

Banquet halls which depicts Indian culture

Special Gift Delivery Vans for festival seasons

Ex-service Security personnel

Mumbai (Bombay)
Tel: (91-22) 2202 2626, Fax: (91-22) 2287 2719
Email: [email protected]

Letters, Packets, Parcels, Documents, Receipts, Post box, Mail Van, Stamps,
Seals, Pin code, Addresses, Proof of Delivery.
 TV commercial
 Print ads
 Event Sponsorship
 Public Relations
 Special Holiday Packages

A holiday at Oberoi resorts is truly an unforgettable experience!!

Advertising, Publicity, Sales promotion, Word-of-mouth promotion, PR

• 500 cars parking facility
• Banquet halls which depicts Indian culture
• Special Gift Delivery Vans for festival
seasons
• Ex-service Security personnel

Letters, Packets, Parcels, Documents, Receipts, Post box, Mail Van, Stamps, Seals,
Pin code, Addresses, Proof of Delivery.
 Forms of Travel & Tourism Consumer and Trade
Promotion Schemes

• Price off promotions

• Premium offers
• Couponing
• Contests (consumer/trade)
• Loyalty schemes
• Trade incentives/ discounts
• Guarantees
• Credit schemes
• Cooperative advertising
• Training schemes
 Forms of Travel & Tourism Consumer and Trade
Promotion Schemes

• Merchandising support
• Quiet weekend offers
• Welcome cocktail
• Honeymoon trip offers /package
• Discounts for agents & Airlines crew
• Free ticket for sound & light shows
• Sun-n-shine guarantees
• Consumer contests
 Specific Ongoing Sales promotion
activities in hotels
• Classical sales calls
• Travel workshops
• Sales seminars
• Trade & consumer fairs & exhibitions
• Travel Trade conventions and conferences
• Familiarization/educational tours
• Direct mail promotions
 Strategies-People
Hotel Management professionals

Staffs with good communicative skills

House-keeping staff and bell boys with good

mannerism and hostile in service

Reception staff, Housekeeping staff, Banquet staff, Bell boys, Waiters,

Administrator staff
 • Hotel Management professionals

• Staffs with good communicative skills

• House-keeping staff and bell boys with

good mannerism and hostile in service

Reception staff, Housekeeping staff, Banquet staff, Bell boys, Waiters, Administrator
staff
 Strategies-Process
Online Booking, Travel agency, Spot booking

24 hours room service, 16 hours bar service

Online database access to privileged customers

Enquires, Booking, Transportation, Delivery, Documentation

 To provide for our valued and frequent guests and
customers we offer benefits and privileges that fulfill their
travel needs and offer an enhanced level of service.
 Connections
A programme uniquely designed for travel planners and
frequent bookers, resident in India, with exclusive
privileges and benefits..
 Airline partners
At all Oberoi Hotels in India frequent travelers have the
opportunity to earn mileage points.

 We are proud to be active participants in the Frequent

Traveler Programs of the airlines listed here.

Enquires, Booking, Transportation, Delivery, Documentation

 Public Relations
• Guest Relations
• Media Relations
• Relations with Government Agencies
• Community Relations
• Employee relations
Market Segmentation
 Geographic Segmentation

 Psychographic segmentation
Market Segmentation
 Usage
(Heavy,Medium,Vocational)

 Geographic

 Psychographic
 Marketing Plan
 Brain storming among the staffs

 Continuous surveys in the corporate world for

analyzing the changes and their demand

 Evaluating and

 Continious Follow up

 Training for sales force and marketing team

 Marketing Plan
 Ensure that each of its businesses meets the three criteria of
sustainability, namely Market Standing, Profitability and Internal
Vitality.

  Ensure that each business is internationally competitive in the

Indian global market.

 Create distributed leadership within the organisation by nurturing

talented and focused top management teams for each of the
businesses.

 Institute and practise a system of corporate governance appropriate

to ITC's character and constitution.

  Secure the future growth of the Company by creating new

businesses which leverage the strength of íts core competencies,
residing in various businesses.
Tie-up with Jet airways

Executive Gold Card

Close rapport with customers

Room Discounts

Business Packages for Corporates

Tie-up with Jet Airways & Air France

Executive Gold Card

Close rapport with customers

Room Discounts

Business Packages for Corporates

Tie-up with Sahara & Deccan Airlines

Premium Privilege Cards

Room Discounts

Business Packages for Corporates