Final Hotel Industry Presentation[1]

8/3/2019 Final Hotel Industry Presentation[1]

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S E R V I C E M A R K E T I N G

INDIAS HOTEL INDUSTRY

By-

Abishek Chavan 09

Vihang Paranjape 39

Bhavesh Patel 42

Monish Belel 45

Sandip Salaskar 46

Sachin Singh 53

Jayesh Nimse 37


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Agenda

About Hotel Industry in India.

Trends in Indian Hotel Industry

Challenges that Indian hotel Industry needs to address.

Market segmentation

Marketing Strategy Based on challenges.


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Effects of Liberalisation

About Service Industry

Contribution of Tourism

About Hospitality Industry

Hotel Industry in India


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Consumers

Strong Brand Recognition

Demand Vs Supply

Technology

HR related Aspects

Trends in Hotel Industry


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Infrastructure Related Aspects Cost of Finance and Land The lack of adequate infrastructure

development.

Taxation

Comparative Cost structure

There is still need to improveair connectivity

42-3527-13Balance

11-2Telephone

15-1720-25Fuel/Energy

12.1515-18Manpower

28-3035-40Food costs

(% sales)(% sales)

IdealAverage in IndiaArea

The challenges to face


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The country has been flooded by some of the

world's leading hotel brands.New brandssuch as Amanda, Satinwoods, Banana Tree,Hampton Inns, Scandium By Hilt andMandarin Oriental are planning to enter the

Indian hospitality industry in joint ventureswith domestic hotel majors.

Unitech, which is setting up two hotels inDelhi,has already formed a joint venture withMarriott International to run its three new

The Competition

The world's leading hotel brands - joining the battle

hotels in India, which are expected to start operations by 2008. The three new hotelswill be located in Kolkata, Gurgaon and Noida. We are investing around 700 crorerupees to set up these hotels, says Unitech managing director Sanjay Chandra.

All other majors including Marriott, Hyatt, Hilton, Accor, Four Seasons etc arebriskly reinforcing their presence in India.


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Market segmentation in Indianhotel Industry

Guest profile in india

Market Segmentation


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Market Segmentation

Area %

3.0Others

6.3Tour Groups-Foreign

5.8Tour Groups-Domestic

1.6Meeting Participants (>100)

4.8Meeting Participants (


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Market Segmentation

Country %

3.0Others7.2France

9.1Germany

10.5Others European Countries

15US

15UK


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Sales Turnover

Finantial Parameters

Size of Hotels in India

Marketing Media used in

Indian Hotels (Table 13)

Strategic Analysis

59.58Mahindra Holiday & resort India Ltd.

96.58Jaypee Hotels Ltd.

106.66Asian Hotels Ltd.

134.42Hotel Leela Venture Ltd.

177.49ITC hotels Ltd.

227.8.India tourism Devp, Corpn. Ltd.

384.09E I H ltd

590.19Indian Hotels Co.Ltd.

SalesCompany Name

Sales turnover of some Indian Hotels / Rs(10Million)


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Sales Turnover

Finantial Parameters



Indian Hotels

Strategic Analysis

Variables

Hotels minus

Indian hotels

Indian HotelsRs(10 Million)

Sales 2337.94 590.19

Advertising 49.48 25.97

Marketing 52.29 0

Distribution 0.07 0

Operating Income 1679.46 400.43

Cost-of-Sales 1800.75 429.94

Selling cost 121.16 29.51

Total Cost 2146.63 528.42


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Sales Turnover

Financial Parameters



Indian Hotels

Strategic Analysis

32591742939Avg rate per hotel

(In Rs.)

61.7%56%52.9%Averageoccupancy perhotel

2348231Average total

rooms per hotels

32162223Total responses

>150rooms

50-150rooms


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Sales Turnover

Financial Parameters



Indian Hotels

Strategic Analysis

35.130.123.5TV Marketing

59.549.235.7Telemarketing

24.39.35.2Radio Advertising

94.673.954.5Promotions

10091.588.7Print Advertising

54.166.560.3Outdoor Advertising

70.348.344.1Other internet site

29.719.915.3Merchandising

75.737.318.5Loyalty card program

91.975.958.9Hotel web sites

91.9%84.3%74.7%Direct mails

37236426Total responses

>150rooms

50-150rooms


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Tourist boom :The tourism traffic has been growing

between 20-28 % every year for the last four years and

this rate of growth is expected to continue for the next

few years.

The constant boom and the resultant demand-supply

mismatch has led to sharp increases in the average roomrates and thus pushing up revenues of industry players

(hotels, tour operators, airlines, shipping lines, etc)

The tourism sector is expected to perform very well in

futureand the industry offers an interesting investment

opportunity for long-term investors.

Most of the five-star hotels are seeing more than 80 %

occupancy and some of the lesser-known five-star hotels

are overbooked.

The Engine of Growth

Hotel Trident Hilton, Agra


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Hospitality experts believe that the Indian hotel industry will witness higher than usualgrowth in the coming peak season. The good times for the Indian hospitality industry arehere to stay, with top-end hotels experiencing high room occupancy rates even in the leanseason.

The lean season has been exceptionally good for us. Our room occupancy rate has beenaround 89 per cent and we are looking at over 95 per cent occupancy for the period

September to December,says Kapil Chopra, general manager, Trident Hilton, Gurgaon.

There was an increase of 15 % in the number of international tourist arrivals in India and14 % in the foreign exchange earnings in the first quarter of 2006 as compared to the sameperiod last year.

The non-luxury segment in particular has been perking up with more and more investorsspotting the demand supply imbalance, surge in domestic travel and growth in spendingamong middle-class Indians.

The Future Growth


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Documents

Final Hotel Industry Presentation[1]