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To understand the business model for Service Apartments industry and evaluate the management and design decisions at various stages of business operations.
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National Institute of Design, Gandhinagar Strategic Design ManagementFeb 2012
Design Management Project 2B2C Business Systems Design
Faculty : _____________Akhil Sain, Jagdish Kohle, Vikram Borar
National Institute of Design | SDM | Akhil, Jagdish, Vikram | DMP - 2 | Feb 2012
Visioning & Ideation
To capture potential areas for growth in future and ap-plying design proctices to harness the market
Business Systems Design
Prototyping business mod-el to evaluate and validate its functioning
Research & Analysis
To prime ourselves into the context and anlyse the operat-ing system of the business. Identifying new oppurtunities and ineffective practices
Overview
To develop a brief and undersatand the rel-evance of the projects
National Institute of Design | SDM | Akhil, Jagdish, Vikram | DMP - 2 | Feb 2012
BriefTo understand the business model for Service Apartments industry and evaluate the management and design decisions at various stag-es of business operations.
To develop a potential model for business which can confront the challenges and embrace oppurtunities emerging in future business environment.
Overview
National Institute of Design | SDM | Akhil, Jagdish, Vikram | DMP - 2 | Feb 2012
Service Apartment ?A serviced apartment is a type of furnished apartment available for short-term or long-term stays, which provides amenities for daily use.
Why not Hotels ?Serviced apartments are less expensive than equivalent hotel rooms.They provide more space, privacy, convenience when traveling with a family or for business.It provides provision for cooking thereby reducing food bills.
Overview
National Institute of Design | SDM | Akhil, Jagdish, Vikram | DMP - 2 | Feb 2012
Secondary ResearchTo understand the size of the industry and various formats of busi-ness available, desktop study was initited. Various aricles and survey paper present online were reffered.
Primary ResearchFew interactions with the stake holders (Oriental Residency) in con-text were schduled to figure out the intensity of issues involved in operating such businesses.
Research & Analysis
National Institute of Design | SDM | Akhil, Jagdish, Vikram | DMP - 2 | Feb 2012
Research & Analysis
Industry Trends and ForecastsFor stays of a day, a week, a month or a year, serviced apartments (also known in the sector as Aparthotels, corporate housing or ex-tended stay housing) offer a spacious, flexible and cost effective alternative to restrictive hotel rooms, with an average saving of 15 - 30% on an equivalent standard hotel. Hospitality industry can be empirically divided into two parts:
entertainment areas like clubs and bars, and accommodation. Ac-commodation takes the form of public houses, resorts, inn, camp-grounds, hotels, hostels, serviced apartments, and motels.
National Institute of Design | SDM | Akhil, Jagdish, Vikram | DMP - 2 | Feb 2012
Hospitality
Accomodation
Entertainment Areas
Resorts
Hotels
Serviced Apartments
Bars
Clubs
Guest Houses
Motels
Dormitories
Industry Format
Restaurants
National Institute of Design | SDM | Akhil, Jagdish, Vikram | DMP - 2 | Feb 2012
Market Scale
Market Size and Share
National Institute of Design | SDM | Akhil, Jagdish, Vikram | DMP - 2 | Feb 2012
Leisure Hotels
DesignThese are also sometimes also refered as heritage hotels when old palaces are refur-bished and restored.
ServicesThese hotels cater to the peo-ple who look for Leisure and Rejuvanation. Spas and The-rarapy treatments are their main demonstrations. Privacy is atmost taken care off.
CostRs 35000 - 250000 Per Night
National Institute of Design | SDM | Akhil, Jagdish, Vikram | DMP - 2 | Feb 2012
Business Hotels
DesignThese are usually 5 star luxury hotels. They have atleast 150 rooms. They are located in large gateway cities.
ServicesThese hotels provide rich vari-ety of luxuries and dining expe-riences. They are ideal location for large business,diplomatic meetings and conferences.CostRs 18000 - 100000 Per Night
National Institute of Design | SDM | Akhil, Jagdish, Vikram | DMP - 2 | Feb 2012
4 Star Luxury Hotels
DesignThese are located in all ma-jor cities as well as tourist destinations. Their customer group ranges from middle level business executives to leisure travelers. These have anywhere between 50 - 200 rooms
ServicesWith ultra modern interiors, fashioned with exclusive in room features - Personalised services, these hotel aim to provide all the aminities to pro-vide comfort and satisfaction.
CostRs 8000 - 25000 Per Night
National Institute of Design | SDM | Akhil, Jagdish, Vikram | DMP - 2 | Feb 2012
Budget Hotels
DesignThese are located in all cities and other tourist destinations. Their customers include usu-ally the domestic tourists and mid level business executives
ServicesThese hotels provide reason-ably priced accommodations with limited luxury. These are characterized by special sea-sonal offers and good services.
CostRs 3000 - 10000 Per Night
National Institute of Design | SDM | Akhil, Jagdish, Vikram | DMP - 2 | Feb 2012
Motels
DesignThese are low-priced hotels spread throughout the country. A low-pricing policy is their only selling point.
ServicesThese hotels provide reason-ably priced accommodations with limited luxury. These are characterized by special sea-sonal offers and good services.
CostRs 800 - 5000 Per Night
National Institute of Design | SDM | Akhil, Jagdish, Vikram | DMP - 2 | Feb 2012
Serviced Apartments
A serviced apartment is a type of furnished apartment availa-ble for short-term or long-term stays, which provides ameni-ties for daily use.
These are modest in size but lavish in amenities
National Institute of Design | SDM | Akhil, Jagdish, Vikram | DMP - 2 | Feb 2012
Serviced Apartments
It has emerged form the concept of studio apartment, also known as a studio flat, efficiency apart-ment or bachelor apartment, which combines living room, bed-room, and kitchenette into a sin-gle room.
Apartment hotels were first cre-ated in holiday destinations as accommodation for families that needed to “live” in rather than “stay” as they would in a hotel. The apartments would provide a “holiday home” but generally be serviced.
Later on these apartments evolved like homes allowing oc-cupants to do everything such as cleaning, washing and cooking.
National Institute of Design | SDM | Akhil, Jagdish, Vikram | DMP - 2 | Feb 2012
Serviced Apartments
DesignThese apartments are well-ac-cessorized according to global lifestyle. They flaunt a contem-porary décor with elegant fur-niture.
Rooms are equipped with a kitchenette, which has hot plate, dishwasher, washing machine and a microwave
National Institute of Design | SDM | Akhil, Jagdish, Vikram | DMP - 2 | Feb 2012
Serviced Apartments
DesignA serviced apartment is a type of furnished apartment with area ranging between 300 - 5000 sq feet. Primarily classi-fied in three categories:-
1. One Room Studio Apartment2. Two Bedroom Residence3. Penthouses
National Institute of Design | SDM | Akhil, Jagdish, Vikram | DMP - 2 | Feb 2012
One Room Studio Apartments
DesignThese have a floor area be-tween 200 - 400 sq feet.
These studio apartments offer a king-size bed, a home thea-tre system, a plasma televi-sion and a prudently designed wardrobe.
Rooms are equipped with a kitchenette, which has hot plate and a microwave.
National Institute of Design | SDM | Akhil, Jagdish, Vikram | DMP - 2 | Feb 2012
Two Room Residence
DesignThese residences have a spa-cious drawing area along with balcony sit-out and an open, yet private kitchen that seam-lessly moves into the dining area. The master bedroom combined with both a bathtub and shower cubicle.
The utility area accommodates a washing machine, dryer, iron and ironing board.
These apartments measure any where between 500 - 1500 sq feet.
National Institute of Design | SDM | Akhil, Jagdish, Vikram | DMP - 2 | Feb 2012
Pethouses
DesignPenthouses provide a separate living area, an informal sitting lounge and multiple balconies.
Some pethouses have two bed rooms and some have four. It includes a include a child’s room with a twin bed for pri-vacy, separate dining area and a large well-set kitchen.
Few luxury penthouses also provide maid’s rooms, a utility room, and a storage area com-plete this luxurious.
Its are ranges between 1500 - 5000 sq feet.
National Institute of Design | SDM | Akhil, Jagdish, Vikram | DMP - 2 | Feb 2012
Designand Layout These room are lit with white colored lams instead
of yellow colored lams which are often found in hotel rooms. Guest are more comfortable when their stay is long as it provides a sense of natural light
Bread toaster were also seen on the kitchen desk
Various dishes and pan were present in cup-boards for guests, if they wish to cook
It has been observed that even in budget apartments, beds were bigger than usual size for the guest to be more comfortable and have luxury feel. They refer it as king size bed.
National Institute of Design | SDM | Akhil, Jagdish, Vikram | DMP - 2 | Feb 2012
Water heating kettle and tea bags and cof-fee sachets are provid-ed for any time refresh-ment
An iron box was seen in all the rooms. It is of-ten required by tenants when they are staying for longer period
Tenants are free to or-der foods from outside. Microwave in the room is very convenient for business travellers
Tenants who stay for long durations use re-frigerator to keep food and grocery items
Every room has pass-word coded safe to keep valuable. It has become a standard fea-ture is all apartments
Even in smaller rooms, windows were found to be bigger than usual.
Designand Layout
National Institute of Design | SDM | Akhil, Jagdish, Vikram | DMP - 2 | Feb 2012
List of Amenities
Home theatre system Plasma/LCD TVWi-Fi Internet accessFloor to ceiling glass windowsBathtub and shower cubicleDishwasherDay care centre for children from 2-8 years MicrowaveToasterWashing machine & dryerWater purifierCrockery & CutleryPersonal safeMaid’s room Marlock locking systemSmoke detectorsClosed circuit televisionGymnasiumConference Room
National Institute of Design | SDM | Akhil, Jagdish, Vikram | DMP - 2 | Feb 2012
Services
The size and magnitude of a hotel management structure varies significantly depending on the size and function of the hotel.
A small serviced apartment normally consists of a small core management team con-sisting of a Manager and a few subordinates that directly han-dle day-to-day operations.
Whereas, a large apartment operates with a board headed by GM and few deparment heads. Each department nor-mally consists of subordinate and supervisors that handle day to day operations.
National Institute of Design | SDM | Akhil, Jagdish, Vikram | DMP - 2 | Feb 2012
Services
The deparments are usually divided four broad heads :- 1. Guest Services and Sales2. Housekeeping3. Restaurant 4. Event and Catering
National Institute of Design | SDM | Akhil, Jagdish, Vikram | DMP - 2 | Feb 2012
Guest Services and Sales
Serviced Apartments target corporate houses which are often located in various cities and which require employees to work on fields.
Though Serviced Apartment-salways prefer to accomodate guest who desire to stay for atleast a week and with ad-vance bookings but they also allow cutomers who want to stay their for one or two days.
National Institute of Design | SDM | Akhil, Jagdish, Vikram | DMP - 2 | Feb 2012
Restaurant
Though the restaurant be-comes the most important part of hospitality business and customers always patron-ize it, in serviced apartment restaurant and food are not something guests look for.
The kitchen are usually small-er than similar sized hotels.
Also restaurants just cater to guest and their guest and not every one.
These apartments have tie-ups with few restaurants and they allow guest to order food from outside.
National Institute of Design | SDM | Akhil, Jagdish, Vikram | DMP - 2 | Feb 2012
House Keeping
House keeping plays a larger role in serviced apartments. Because the guests stay for longer periods this depart-ment has to adjust acoording to guest comfort and convin-ience.
Sometimes guests come up with their families who stay in apartment through out the day. Guests are being serviced as if they have personal maids.
They have to cater all the demands while adhering to guests’ privacy and comfort.
National Institute of Design | SDM | Akhil, Jagdish, Vikram | DMP - 2 | Feb 2012
Events and Catering
Serviced apartment also host variety of events according the requirements of guest and facilities available at the apart-ment.
Guest often request to cele-nerate birthday parties and other events which happens during their stay. These apart-ments have contrats with event management companies to organize sucg celeberations.
Guest often NRI held their con-ferences and meeting in the hotel.