1. Hotel / Hospitality Marketing
Chapter 5
Hotel / Hospitality Marketing

2. Overview Introduction to Industry Marketing Mix (8 P’s)
Product (Product levels & Service Flower)
Price
Place (Channels of Distribution)
Promotion
People (Employees & Customers i.e. market segmentation)
Physical Evidence
Process (Service Blueprint)
Productivity & Quality (Service Quality Dimensions / RATER Analysis)

3. Overview SWOT Analysis PEST Analysis Recent Developments
University Questions

4. Introduction to Hotel Industry
The trend is the industry in classification closely under the basis of advancement in technology, marketing and sales, financial and the development is food and cuisine trends.
The hotel industry is now concentrating on segmentation as the market contains various types of customers.
The concept of budget hotel is an upcoming one in India.
The hotelier would like to offer a reasonable amount of good facilities at an affordable price
Today the hotel includes is making a reasonable program in both public and private sectors.
Independent chains are “The Taj”, the top has gives a new look to the hotel ring in India.

5. Hotel – the concept A public place
where all possible facilities like accommodation, entertainment, etc.
are provided to people who stay
for a temporary period

6. Classification of Hotels
Residential
Commercial
Resort
International
Floating
On basis of standards and control (Approved, unapproved by Dept. of Tourism)
On basis of stars (Facilities, quality, luxury aspects)

7. Marketing Mix of Tourism Industry

8. Product Characteristics
All hotels of the same category – core services are same – distinguished by peripheral services like hotel personnel
Continuous change in the product mix
Eliminate outdated services
Incorporate latest developments as per changing likes and dislikes of the customers
Factors to be considered while formulating product mix
Catering management
Restaurant & Cafeteria management
Management of bedrooms
Management of buffet & convention halls

9. Communication & Transport
Product
Reception
Lodging
Boarding
Entertainment
Shopping
Personal care
Communication & Transport
Medical

10. Product Product Levels BENEFIT MEANING
WITH RESPECT TO THE TRAVEL AND HOTEL INDUSTRY
1. CORE BENEFIT
The fundamental benefit or service that the customer is buying
Rest & Sleep
2 BASIC PRODUCT
Basic, functional attributes
Hotel room with all amenities
3 EXPECTED PRODUCT
Set of attributes/conditions the buyer normally expects
A clean bed, fresh towels, working lamps, and a relative degree of quietness, etc.
4 AUGMENTED PRODUCT
That meets the customers desires beyond expectations
Prompt services, Remote controlled AC & TV, 2 Telephone lines, etc
5 POTENTIAL PRODUCT
The possible evolution to distinguish the offer
Wi – Fi connections in hotel rooms, home theatre systems, etc.

11. Product Room features Food – related services
CORE: SLEEP & REST
Food – related services
Lounge facilities
Reception
Leisure facilities
Security
Medical
External building and design
Room features
SUPPLEMENTARY SERVICES
Service Flower

12. Price Includes For room tariffs For food and beverage For functions
Pricing strategy for promotions:
Seasonal discounts
Trade discounts
Special discounts

13. Place
In hotel services, due to intangibility factor, the distribution systems and channels and not given importance
What do we need to distribute while delivering hospitality services?
INFORMATION

14. Place - Channels of distribution
Zero level
Hotel Companies Users
One level
Hotel Companies Travel Agents Users
Two level
Hotel Companies Tour Operators Travel Agents
Users

15. Promotion Advertising & Publicity Sales promotion Word of mouth
Personal selling
Telemarketing

16. Back - end employees etc
People
People
External
Customers
Internal
Employees
Receptionist
Porter
House – keeping
Waiter
Chef
Back - end employees etc

17. Market Segmentation(External Customers) [Univ Q – May 05(5 marks)]
Business Segment
Includes corporate professionals, traders & businessmen travelling on business purposes, each category having different preferences
Pleasure Segment
People from different walks of life – leisure and entertainment.
Demographic Segment
Based on income, occupation, age, gender, education.

18. Market Segmentation (External Customers)
Social Class Segment
Refers to different income groups
Benefits Sought Segment
Different people seeking particular benefit such as location, accommodation, types of meals, etc.
Geographic Segment
Based on geographic location of hotels
Frequency Segment
Such as light, medium and heavy users.

19. Physical Evidence Location of the hotel Hotel building
Hotel Bedrooms & other amenities
Hotel function room
Logo, Website, Brochures, etc

20. Process (Service Blueprint)
Hotel exterior parking
Desk, Reg. papers, Lobby keys
Elevators,
Hallways rooms
Room Amenities
Food
Bills Desk, Exterior Parking
Line of Interaction
Arrive at Hotel
Check in
Go to Room
Sleep, Shower
Eat
Check out and leave
Registration System
Process Check out
Process Registration
Line of Visibility
Line of Internal Interaction

21. Productivity & Quality (Service Quality Dimensions/RATER Analysis) What are the determinants of quality in the hotel industry? [Univ Q – Nov 05(10 marks)]
Reliability
Assurance
Tangibility
Empathy
Responsiveness
Ability to perform promised service; accurately & dependably
Adaptability & Prompt Service
Security, Credibility & Courtesy
Ease of access & Customer Orientation
Physical
Evidence

22. SWOT Analysis Strengths: Rich natural and cultural diversity of India
Demand-supply mismatch between the demand and supply of rooms leading to higher room rates and occupancy levels.
Government support for the development of the infrastructure and of new tourist destinations and circuits.
The Department of Tourism (DOT) - the "Incredible India" campaign
Increase in India's share in international tourism and hospitality market

23. SWOT Analysis Weaknesses: Poor support infrastructure
Slow implementation of Govt. measures
Susceptible to political events
The internal security scenario and social unrest also hamper the foreign tourist arrival rates.

24. SWOT Analysis Opportunities:
Rising income of Indians which is expected to enhance leisure tourism.
Increased airline activity has stimulated demand and has helped improve the infrastructure.
It has benefited both international and domestic hotels.

25. SWOT Analysis Threats: Fluctuations in international tourist arrivals
Domestic tourism needs to be given equal importance and measures should be taken to promote it.
Increasing competition by several international major for the existing Indian hotel majors.
Guest houses replace the hotels

26. PEST Analysis Political Economical Social Technological
Tighter drink/drive laws may discourage local custom using restaurant
Disability Discrimination Act
Employment law (e.g. minimum wage, hours of work, etc)
Economical
Possible recession
Unfavorable currency rates
Social
Ageing population - more people with more leisure time
Countryside not as 'exciting' as a city break
Technological
Teleconferencing / Web cams
Internet a key, fast growing avenue for advertising.

27. Recent Developments Hotel Marketing from the Indian Perspective
Application of the marketing concept – infant stage
Major Indian players – Taj Hotels, Oberoi Group, ITC, etc
Emphasis to improve managerial proficiency in the unclassified hotels
Need to increase governmental support
Development of tourism would further boost this industry

28. University Questions
Discuss the detail relevance of 8 P’s in hospitality industry. [Univ Q – Nov 03(10 marks)]
Answer includes the following:
Introduction in brief
Product mix
Pricing strategies
Distribution channels
Promotion tools
People mix (exclude market segmentation)
Physical evidence
Steps in the process (blueprint diagram excluded)
Rater analysis
Recent developments in brief