DRISHTI: MANTHAN 2010 · Year 1990 Hotel Ruby Royale established 1996 Hotel renovated, added 2 conference rooms 1999 Converted from one-star to three 2001 Expansion of hotel: Added

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The hospitality industry is basically characterized by the following services with their respective market

maturity and usage patterns:

The Lake Royale hospitality group is one of the oldest chains in Nashik, established around 1960. This

group consists of 3 star hotels, resorts, spas and restaurants in Nashik. The group is also looking to

expand its operations in neighbou

tourist intensive areas around Nashik.

Being a pioneer of hospitality services in

property spread across prime locations in the city.

Primary amongst these is its flagship 3 star hotel “The Ruby Royale” located in the heart of the city. It

offers the following services to customers:

- Room accommodation

- Restaurants

- Conference venues

- Banquets

- Weddings

- Outdoor Catering

The average occupancy rate at the hotel is 50

The client base for this hotel consists of Institutional customers

different services as needed. Also,

business institutions which also have a good potential to provide repeat business.

focusing on increasing its revenues coming from the business sector.

Fine Dining

Fragmented

Markets

Time of Day

Pattern

DRISHTI: MANTHAN




uring cities like Mumbai and Pune besides coming with facilities in

tourist intensive areas around Nashik.

Being a pioneer of hospitality services in Nashik, the Lake Royale hospitality group has considerable

spread across prime locations in the city.

gst these is its flagship 3 star hotel “The Ruby Royale” located in the heart of the city. It

offers the following services to customers:

Room accommodation

Conference venues

hotel is 50-55% which is above the industry average of 42%.

el consists of Institutional customers, individuals and businessmen who avail

Also, Nashik being an industrial hub, a large chunk of cust

business institutions which also have a good potential to provide repeat business. The hotel is currently

focusing on increasing its revenues coming from the business sector.

Hospitality

Fine Dining

Fragmented

Markets

Time of Day

Pattern

Accommodation

Services

Very Fragmented

Day of Week

Pattern

Events

Consolidated

DRISHTI: MANTHAN 2010




umbai and Pune besides coming with facilities in

, the Lake Royale hospitality group has considerable

gst these is its flagship 3 star hotel “The Ruby Royale” located in the heart of the city. It

industry average of 42%.

, individuals and businessmen who avail

chunk of customers are

The hotel is currently

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The challenges that the hospitality industry as a whole faces are

which is also the case with Ruby Royale hotel.

Ruby Royale has been innovating ways of retaining

schemes and offers like freebies at their midnight coffee shop, discount coupons, customer

loyalty rewards, etc. It also has a tie up with a local travel agent.

Ruby Royale is not involved in aggressive marketing and advertising activit

a print media advertisement campaign in a local newspaper, which was later discontinued due

to its returns being deemed inadequate for further sustenance. Currently, radio ad jingles

local radio stations is the only promotional me

With the changing face of Nashik and the existence of

is crucial to ensure profitable & sustainable use of it. This might be constraine

understanding of futuristic industry trend

complicated by the presence of a plethora of competitors catering to all the market segments of the

hospitality industry, from budget hotels right up to established 5 star rated hotels.

A recent market research project undertaken by an agency revealed the following perceptions of the

customers on various parameters considered crucial to the hospitality industry.

Listed below are a couple of critical

1. There has been a significant decrease in the business potential resulting from outbound tourists

stationed in Nashik, e.g., tourists to Shirdi who earlier stayed in Nashik and toured Shirdi, now prefer

staying in Shirdi itself due to availability of adequate hospitality se

2. A comparison of infrastructure of the hotel with its competitors

renovation to bring it at par with industry benchmarks.

for immediate renovation measures. H

quality available as compared to its competitors.

DRISHTI: MANTHAN

ity industry as a whole faces are acquisition, reacquisition and retention

Ruby Royale hotel.

Ruby Royale has been innovating ways of retaining existing customers by way of numerous


It also has a tie up with a local travel agent.

Ruby Royale is not involved in aggressive marketing and advertising activities. It had undertaken


to its returns being deemed inadequate for further sustenance. Currently, radio ad jingles

local radio stations is the only promotional measure undertaken.

With the changing face of Nashik and the existence of property at prime locations

& sustainable use of it. This might be constraine

industry trends and prospective buying behavior


hospitality industry, from budget hotels right up to established 5 star rated hotels.

project undertaken by an agency revealed the following perceptions of the

customers on various parameters considered crucial to the hospitality industry.

Listed below are a couple of critical research findings:

significant decrease in the business potential resulting from outbound tourists


staying in Shirdi itself due to availability of adequate hospitality services in Shirdi.

2. A comparison of infrastructure of the hotel with its competitors pointed at the urgent need for

renovation to bring it at par with industry benchmarks. Also data of lost customers supported the need

for immediate renovation measures. However the hotel scored well on aspects of cuisine and food

quality available as compared to its competitors.


, reacquisition and retention

by way of numerous


ies. It had undertaken


to its returns being deemed inadequate for further sustenance. Currently, radio ad jingles on

locations in the city, it

& sustainable use of it. This might be constrained by the lack of

s and prospective buying behavior. This is further


project undertaken by an agency revealed the following perceptions of the

significant decrease in the business potential resulting from outbound tourists


pointed at the urgent need for

of lost customers supported the need

owever the hotel scored well on aspects of cuisine and food

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• Growth trends of hospitality industry in Nashik

2005

Budget

1-

star

No. of hotels 45 33

No. of rooms 675 660 110

Occupancy rate(%) 57 54

Make appropriate assumptions in extrapolation from above data

• Growth of hotel over the years

Year

1990 Hotel Ruby Royale established

1996 Hotel renovated, added 2 conference rooms

1999 Converted from one-star to three

2001 Expansion of hotel: Added 15 rooms in a new wing

2007 Added a new continental

Given this background, the management is faced with the dilemma of whether to make capital

investments for expansion activities or focus on strengthening existing business in the coming few years.

Prepare a roadmap which you think would be best for this group to undertake as its business strategy

for the next 5 years. The business strategy should be comprehensive and cover appropriate aspects of

marketing, finance, operations and enable the Lake Royale group

necessary assumptions, wherever necessary.

DRISHTI: MANTHAN

Growth trends of hospitality industry in Nashik – Exhibit I

2006 2007

3-

star Budget

1-

star

3-

star Budget 1-star

3-

star

2 53 45 3 71 59 5

110 901 870 160 1349 1165 272

50 55 52 46 53.2 49 43

Make appropriate assumptions in extrapolation from above data

Growth of hotel over the years- Exhibit II

Activity

established with 20 rooms, started as a one star rated hotel

Hotel renovated, added 2 conference rooms

star to three-star rated hotel

Expansion of hotel: Added 15 rooms in a new wing

Added a new continental restaurant to the hotel and 10 additional rooms



roadmap which you think would be best for this group to undertake as its business strategy


marketing, finance, operations and enable the Lake Royale group to regain market leadership.

necessary assumptions, wherever necessary.


2008

Budget 1-star 3-star

99 70 10

2079 1320 473

50.7 46 42

with 20 rooms, started as a one star rated hotel



roadmap which you think would be best for this group to undertake as its business strategy


regain market leadership. Make


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MANTHAN: THE CASE STUDY COMPETITION – RULES for participation

This competition is open to all B-school students across the country.

The team should comprise two members and both of them should be from the same institute.

Any number of teams can participate from the same institute. A participant cannot be a part of more

than one team.

Contacts:

Rajesh Bagrecha

Email id: ([email protected])

Cell no: 91 9767841283

Shubhajit Roy


Cell no: 91 9860318044

Harika Y


Cell no: 91 9579183938

Disclaimer: The case study is based on a live business case. The data supplied in the case study is a mix

of business data of the hospitality group and current industry figures. All case analysis received would be

a copyright of SIOM, Nashik.

Sr. no. Qualifier Deliverable Format Location Deadline

1 Open for all Case synopsis

MS Word document- Max 1000 words, Times

New Roman font size 11. The submission

should have a cover page mentioning: Team

Name, Names of Team Members, Name of

the Institute, Phone Numbers and Email-Ids

of the participants.

Deliverables to be mailed to:

[email protected] with

the following subject:

MANTHAN_COLLEGE NAME_TEAM

NAME

Time

23:59:59

hrs, 22nd

Jan, 2010

2Shortlisted

teams

Presentation and

detailed case report

Presentation to be in MS Powerpoint and

contain a maximum of 10 slides. Teams

would be required to present this to judges

in 20 minute time slots. Detailed case report

should be a MS Word document- Max 2000

words, Times New Roman font size 11.

SIOM, Nashik30th Jan,

2010

Results for first round to be declared on 24th Jan, 2010 by 20:00:00 hrs

Final results to be declared on the same day

Documents

DRISHTI: MANTHAN 2010 · Year 1990 Hotel Ruby Royale established 1996 Hotel renovated, added 2 conference rooms 1999 Converted from one-star to three 2001 Expansion of hotel: Added