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Examples of Service Industries Health Care hospital, medical practice, dentistry, eye care

Professional Services accounting, legal, architectural

Financial Services banking, investment advising, insurance

Hospitality restaurant, hotel/motel, bed & breakfast,

ski resort, rafting Travel

airlines, travel agencies, theme park

Others: hair styling, pest control, plumbing, lawn maintenance,

counseling services, health club

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Hotel Industry Indian hospitality industry is in the midst of a strong cyclical

upturn on the back of a buoyant economy, with a growth inbusiness and leisure tourists @ 25% p.a. and an existingshortage in room supply of about 100,000 guest rooms

The Premium end of the market (5 Star Deluxe) in which theCompany operates, generates around 65-70% of industryrevenue

Very few projects are under implementation in Bangalore,Chennai, Hyderabad & Pune. Hence, the next few years arelikely to witness a limited capacity addition with strongincrease in annual demand of about 15%.

There are strong barriers to entry viz., scarcity of suitableplots of land at good locations, excessive land prices in

metropolitan cities

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Hotel Industry - Demand Growth in business-tourist

traffic to India remains strongin the double digits

The trends for ARR growth

and room demand remainencouraging.

Recent rupee appreciation of7-9% could have a near-termimpact on revenues

Most hotel chains are lookingto either increase dollar tariffsor subsequently move torupee tariffs for domestic as

well as internationalcustomers

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Hotel Leela, Mumbai Located near Mumbai International Airport

Customers: predominantly business travellers and airline crew

Largest Ballroom in the City

Average ROOM RATE during 2006-07 has been Rs 9,375 compared toRs. 6,745 for the previous year

Market Information:

Average room rate in North Mumbai grew by 42% in FY2007

No additional supply expected in 2007 / 2008

Future positive developments: Modernisation of International Airportwith Flyover connectivity to Highway/ Rapid improvement in localinfrastructure : Roads, Airports, Seaports / Mushrooming of IT, ITES,BPO Units in the North Mumbai area.

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7 Ps Of Hotel Industry Product

Price

Place Promotion

People

Process

Physical Evidence

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PRODUCT PLACE PROMOTION PRICEPhysical goodfeatures

Channel type Promotionblend

Flexibility

Quality level Exposure Salespeople Price level

Accessories Intermediaries Advertising Terms

Packaging Outlet location Salespromotion

Differentiation

Warranties Transportation Publicity Allowances

Product lines StorageBranding

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PEOPLE PHYSICAL

EVIDENCE

PROCESS

Employees Facility design Flow of activities

Customers Equipment Number of steps

Communicatingculture and values

Signage Level of customerinvolvement

Employee research Employee dress

Other tangibles

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The Services Marketing Triangle

InternalMarketing

Interactive Marketing

ExternalMarketing

Company(Management)

CustomersEmployees

enabling thepromise

delivering the promise

setting thepromise

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