INTRODUCTION

The hospitality industry is one of the oldest businesses in history. People have always gone out to eat sometimes and traveled for work or leisure purposes. The hospitality industry is a 3.5 trillion dollar service sector within the global economy. It is an umbrella term for a broad variety of service industries including, but not limited to, hotels, food service, casinos, and tourism. Hospitality management involves the planning, organizing, directing and controlling of human and material resources within the lodging, restaurant, travel and tourism, recreational management and meeting and convention planning industries. All of these separate yet related segments of the hospitality industry are interrelated to deliver kind and generous services to guests. A hotel is an establishment that provides paid lodging, usually on a short-term basis. Hotels often provide a number of additional guest services such as a restaurant, a swimming pool or childcare. They also provide conference services and meeting rooms and encourage groups to hold conventions and meetings at their location Hotels are amongst the most visible and important aspects of a country's infrastructure. Hotel industry is a closely linked one to the tourism industry. A number of factors like promotion of tourism and rapid industrial progress have given a boost to hotelier. The recent liberalization of trade and opening up of economy will further lead to revolutionary growth in this sector.

STARWOOD
Starwood Hotels and Resorts was originally formed by the real estate investment firm Starwood Capital to take advantage of a tax break; at the time the company was known as Starwood Lodging. Initially, Starwood Lodging owned a number of hotels throughout North America, all under different brand names. The Westin Hotel Company was purchased in 1994 from Aoki Corporation of Japan. Starwood acquired the Sheraton, Four Points by Sheraton, and The Luxury Collection brands from ITT Sheraton in 1998. In 1999, Starwood launched "W" Hotels, a brand that has been described as a "fun, hip and exciting hotel collection that happily marries boutique hotel flair with the quality and functionality of larger brand hotels. In September 2005, Starwood announced the launch of aLoft, a new hotel brand based on W. aLoft Hotels cater toward business travelers. Starwood intends to have 500 aLoft hotels worldwide by 2012. In 2005, Starwood purchased the Le Mridien brand, whic greatly increased the company's operations in Europe. In 2004, Starwood's founder and CEO Barry Sternlicht stepped down as CEO to focus his attention on his other firm, Starwood Capital. He remained on the Board of Directors until 2005. He was succeeded as CEO by Steven J. Heyer, and Starwood began selling a number of its company-owned hotels, instead focusing on becoming a management company and franchisor for its current and future hotel brands. In April 2007, Steven J. Heyer left the company on the request of the Board of Directors because of an issue with Heyer's management style and after allegations of personal misconduct. Chairman of the Board Bruce Duncan served as interim CEO until September 2007, when the company announced Heyer's successor, Frits van Paasschen.

HISTORY OF SHERATON 2

The origins of Sheraton date back to 1937 when the company's founders, Ernest Henderson and Robert Moore, acquired their first hotel in Springfield, Massachusetts. Within two years, they purchased three hotels in Boston and soon expanded their holdings to include properties from Maine to Florida. At the end of its first decade, Sheraton had proven So popular and had become such a relied-upon brand that it was the first hotel chain to be listed on the New York StockExchange. Sheraton expanded internationally in 1949 with the purchase of two Canadian hotel chains and grew rapidly around the world. The 1960s saw the first Sheraton hotels in Latin America and the Middle East and, by 1965, the 100th Sheraton opened its doors. Sheraton reached a milestone in 1985 as the first international hotel chain to operate a hotel in the People's Republic of China. In April of 1995, Sheraton introduced Four Points by Sheraton Hotels, a new, mid-scale hotel brand offering a full-service hotel experience at a competitive price. In 1998, Starwood Hotels & Resorts Worldwide, Inc. acquired Sheraton. One of the leading hotel companies in the world, Starwood's other brands include Sheraton Hotels & Resorts, Four Points by Sheraton Hotels, St. Regis Hotels & Resorts, The Luxury Collection, Le Mridien, W Hotels, and Westin Hotels & Resorts.

KARCHI SHERATON HOTEL & TOWERS

Karachi, the cosmopolitan city of Pakistan

A business hotel in Karachi, the largest port city of Pakistan

Karachi Sheraton Hotel & Towers

Sheraton Hotels and Resorts are the largest and second oldest brand of Starwood Hotels & Resorts. The only internationally managed five-star hotel in Pakistan. Just 17 kilometers from Quaid-e-Azam International Airport, we are at the center of the business district of Karachi. Enjoy instant access to local shopping and sightseeing. Explore the nearby beaches or see Karachis well-known Kamari Harbor. The 407 guest rooms have been thoughtfully furnished with oversized beds and classic furniture. Wake up with a cup of tea and a complimentary newspaper each morning. Our new SMART rooms are designed for the business traveler, complete with amenities like an in-room fax, copier, printer, and scanner. Its philosophy revolves around high quality service and standards in the hospitality business. With comfortable rooms, all tastefully decorated and thoughtfully equipped, the Karachi Sheraton Hotel & Towers aims to make every travelers stay a memorable experience. Expect warm and friendly service from our doorman to the servers at our various onsite restaurants. Take a plunge in our outdoor pool or energize at our state-of-theart health club. An ideal destination for the majority of foreign travelers to Pakistan, the Karachi Sheraton Hotel & Towers boasts an earthquake-proof building and extensive firesafety system. Built in a Y shape, oriental style architecture, with a shopping arcade in the front, 18 kms from the airport. Ideally located in the 6 business district Karachi Sheraton enjoys the supremacy of being the only internationally managed five star hotel in the city.

8 Ps OF SERVICE MARKETING Following are the 8 Ps of service marketing: Product Elements Place & Time Price and User Outlays Promotion and Education Physical Environment People Process Positioning

ASSESSMENT OF 8 Ps OF SERVICE MARKETING PRODUCT

Following are the main products of Sheraton: Guest Rooms Food & Beverages (Outlets) Number of rooms and suites: 407 Number of floors: 9 Classic Floor Standard floor: 124 Preferred Floor: 96 Tower Floor: 48 Club Floor: 96 Shalimar Duplex Suites: 14 Other Suites: 29

ANALYSIS
Sheraton hotel has largest no of rooms in the town; it can accommodate more guests during busy seasons. A large number of guests coming into hotel come for business purposes for which high speed Internet, international dialing and fax facility is a must. Sheraton, realizing this need of their guests, provides same facilities all its rooms, but the other hotels dont have the same facilities in every room. Sheraton has tea/coffee maker in all rooms whereas competitor doesnt have the coffee/tea maker at all. This is quite convenient for the Sheraton guests as they can make tea/coffee for themselves at any hour they want, but for guests of competitors it is quite time consuming to order tea/coffee and that also at an extra cost. Guests, who come into these hotels for business purposes, need high speed Internet connection for communication. Sheraton in this regard provides its guests with a connection speed of 256 kbps whereas Marriott is a little behind with a speed of 128 kbps.

FOOD AND BEVEREAGES

FANOOS: A trendy caf for the casual moments in between serves everything from coffee to snacks to pasta. Musical entertainment, exhibitions and a large television screen add to the life of this happening place. AL-BUSTAN: The interior is designed to give a feeling of the garden Al-Bustan where you can dine in a relaxed setting, usable for lunch and dinner with 101 items at Breakfast, the tempting desert buffet, a great selection of Pakistani, Continental and Chinese dishes on the buffet and the exquisite salad bar.

COZMO: A casual yet intimate restaurant offering a combination of Chinese, Japanese and Italian cuisines.

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KABAB-JI: Authentic Lebanese restaurant in Karachi. THE PAKISTANI: The diverse cuisine ranges from specialties originating from Sindh, Punjab and Balochistan and NWFP and favorites from Kashmir. Local musicians set the final tone to a unique dinning experience. GOURMET SHOP: International standard sweets and confectioneries.

ANALYSIS
Sheraton has the Pakistani, which is quite appreciated by the foreigners who come to stay at Karachi, since it reflects the Pakistani culture of dining. It is a unique experience offered by Sheraton. Al-Bustan of Sheraton is the largest restaurant in Karachii It is most suited for large gatherings. Other products include: Meetings & conferences Outside catering Shopping arcade shops Health club

PLACE AND TIME

Sheraton, located right in the center of the city on Club Road, has a near connection to all the worth visiting places in Karachi which includes shopping, business centers, clubs, restaurants etc. The airport is easily accessible from the hotel.

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LOCAL AREA Karachi offers a remarkable variety of sights and activities - from sandy, sunny beaches, deep-sea fishing and yachting to a mouthwatering journey of Pakistani, Western and road-side delicacies, art exhibitions, shopping areas, clubs, discotheques, restaurants and cafs - the list goes on and on! Spend a romantic evening crabbing in Karachi's Kemari harbour - beginning at sunset and ending with a delightful crab and seafood feast under the stars. LOCAL ATTRACTION Frere Hall 1.0 km/0.6 miles National Museum 2.0 km/1.2 miles Mohatta Palace 5.0 km/3.1 miles Zoological Gardens 7.0 km/4.3 miles Wazir Mansion 8.0 km/5.0 miles Quaid's Mausoleum 9.0 km/5.6 miles Karachi Golf Course 11.0 km/6.8 miles Expo Centre 11.0 km/6.8 miles Beaches 18.0 km/11.2 miles Chaukundi Tombs 53.0 km/32.9 miles Thatta (Historical Place) 100.0 km/62.1 miles Haleji Lake 110.0 km/68.3 miles Mohenjodaro (Historical

ANALYSIS
Sheraton is located right in front of one of its competitors Sheraton gives the view of a busy city. The road, on which Sheraton is situated, has no security issues except for exceptions. But competitors are facing problem due to security.

PRICE
GUEST ROOMS Classic Floor @ Rs. 9,800 + taxes Fruit basket on request Complimentary welcome drink at the time of check-in

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Complimentary daily buffet breakfast served in the Al Bustan restaurant from 0630h-1030h Tea/Coffee maker in every room 02 small mineral water bottles in the room Courtesy airport transfers, by shuttle service, upon prior request and flight details EL-Safe in all rooms. 24-hour Complimentary Access to the Health Club

Preferred Floor @ Rs.13,000 + taxes Daily fruit basket EL SAFE in the room Upgraded bathroom amenities Tea/Coffee maker in every room High speed Internet facility on charge Courtesy airport transfers, by shuttle service, upon prior request and flight details. Complimentary mineral water bottles per day, per room.

Club Floor @ Rs. 15,700 + taxes A large working desk, individual fax copier Machine With connection for colour laser printing, Scanning and PC faxing, external modem and hands free phone. Personalized audio video system with DVD/VCD or VCR Reclining easy chairTea/Coffee maker in every room Complimentary mineral water, two large bottles per day, per room 24 hours butler service and morning bed tea, upon request Complimentary laundry or pressings of four pieces per stay, per room Wi Fi facility in Executive lounge on charge

Towers Floor @ 21,500 + taxes Free Free Free Free in room internet access. local telephone calls. mini bar. airport pick-up & drop by car

2pc of laundry of pressing per day. Wake-up coffee or tea. Butler service. Access to Lounge. Special fruit & turn down amenity on daily basis. Moulton Brown bathroom amenities. Every category has 1500 additional for double occupancy.

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ANALYSIS
Both the hotels offer their services at a high price keeping in mind their international standards. Since they are targeting high and business class of the society for whom quality and brand name is of more importance than high prices, therefore emphasis is given more on providing quality rather than competing in the market for prices. For guest rooms, Sheraton has high prices as compared to competitor hotels it is a part of Sheraton International. But this difference is too little for the added benefits which it provides. FOOD AND BEVEREAGES SHERATON Al-Bustan Breakfast 575+tax Lunch and Brunch 600+tax HI-Tea 250 + tax Cozmo Buffet Lunch Rs. 695+ tax Ala Carte Dinner

The Pakistani Ala Carte Dinner Only

Kababji Buffet Lunch Rs. 695 + tax Ala Carte Dinner

Fanoos Lounge 24 Hrs Ala Carte

Gourmet Shop

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ANALYSIS
Pricing of food at Karachi Sheraton Hotel & Towers is cost-based. It is because the basic ingredients of the food are imported, chefs are hired from foreign countries; props required for creating the ambience of the theme nights are importedii. By providing fully security & covered car parking, Sheraton gives a feeling to their guests that they value their guests and their belongings. This is an extra revenue generating point of Sheraton. While competitors provide free car parking.

PROMOTION AND EDUCATION

At Sheraton hotel, promotional campaigns are very often run keeping in mind the seasons, the festivals, events that are to be held. To make such promotional campaigns successful, they make sure that all their customers are informed whether its through mailing the brochures or placing banners/posters at the exterior, email blast, word of mouth. Some of their promotional campaigns include: Sheraton Spa Package Enjoy some personal downtime. Welcome relaxation and reconnect with yourself with the Sheraton Spa Package, which includes a complimentary fruit plate, two bottles of

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water per day, and 20% off a standard massage or treatment of equal or lesser value.

Sheraton Romance Package Begin a love story for two. Get away together with our Sheraton Romance Package which includes chocolate or strawberries, champagne or an alternate beverage, daily breakfast in bed, and a 4pm late checkout based upon availability.

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Sheraton Free and Easy Package Take comfort in the convenience of the Sheraton Free & Easy Package and enjoy complimentary parking.

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Sheraton Weekend Breakfast Package Get away and enjoy carefree comfort with the Sheraton Weekend Breakfast Package. Package includes great weekend rates, breakfast daily in the restaurant, and a 4pm late checkout upon availability.

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Sheraton Family Package Enjoy a getaway your whole family will always remember with the Sheraton Family Package. Package includes a welcome treat for children, one in-room movie per night, a complimentary rollaway, and free kids meals*.

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Sheraton Weekend Breakfast Package Get away and enjoy carefree comfort with the Sheraton Weekend Breakfast Package. Package includes great weekend rates, breakfast daily in the restaurant, and a 4pm late checkout upon availability.

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Italian Promotion

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ANALYSIS
Karachi Sheraton Hotel takes every necessary step to promote his campaigns. At Sheraton, the employees, other than the concerned employees, were quite well informed about the packages, which resulted in their prompt replies to their customers.

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PHYSICAL ENVIRONMENT
The mesmerizing interior of Sheraton is visible from the road outside, which magnetizes the people into the hotel also exterior of Sheraton is more attractive to bring the guests inside. Its only the brand name of Sheraton which is a reason for the guests to enter into the hotel. The furnishing of Sheraton is according to the Starwood Group. Sheraton hotel has largest lobby in the town it has more sitting area for guest. Sheraton has an underground parking. The front of the desk employees of Sheraton hotel are well groomed and communicate well with the guests. The dressing of the employees of Sheraton is appreciated more because it is in line with the Pakistani culture and designed by one of the most famous designer.

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PEOPLE
Since in hotel industry the very first thing that attracts the guests is how they are treated. Therefore Sheraton hotel a lot of emphasis is given to the physical appearance of the front of the desk staff because they are the ones who make the first contact with the guests. The physical appearance, communication skills and the overall personality adds a lot of value to the overall service provided by the hotels therefore the front of the desk staff is provided with training which includes personality grooming, improvement of communication skills and telephone etiquettes etc. Both the hotels have a daily motto, which all the employees follow, to add value to their service.

ANALYSIS
Whenever any guest visit the hotel at the entrance guests are received by guest relation officers who make it convenient for the guests to get through the procedure whereas at other hotels no one to receives the guest when they enter and they have to walk down quite a distance to the reception desk for finding the procedure. Sheraton staff trainings are carried out according to the international standards of Starwood and a team has been formed to serve the purpose. This shows that at Sheraton training are taken more seriously than competitors. At Sheraton, the employees are very well informed which adds value to their overall service.

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PROCESS
Bookings at the Sheraton are done prior to the arrival of the guests or some times on walking. At the guests arrival, they are greeted with warmth by the customer relations officers who are always informed about their arrival. The guests are then escorted to their rooms by the officer and are presented with a welcome drink of their own choice. VIP guests are also presented with bouquets. Sheraton uses database system named as Opera and this software is globally connected with all properties.

ANALYSIS
Opera, used by Sheraton, is a completely integrated database system. The other hotels in the Sheraton hotel chain can view the information entered on this database by any Sheraton hotel.

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POSITIONING: Product Quality Analysis- All Segments Rating Scale of 0 - 5: 0=Non existent, 1=Lowest, 2=Average, 3=Par with Property, Better than Property, 5=Superior Name Sheraton Marriott PC Grand Avari Regent 0 Mercure Plaza Guestroom 45 41 39 33 26 22 0 Guestroom 45 41 39 33 26 22 0 Room Dcor 3 3 3 3 2 2 Room Size 4 3 3 2 2 3 Bathroom Size 3 2 3 3 2 2 Cleanliness 4 4 3 3 2 1 Furniture 4 4 3 3 2 1 Condition Air Conditioning 4 4 3 3 2 2 Bathroom 4 4 4 3 2 2 Amenities Internet Access 3 4 4 3 3 2 Smart Rooms 5 4 4 3 3 2 In-room 3 3 3 2 3 2 Coffee/Tea Facility Windows that 4 3 3 2 2 2 open In-room Safe 4 3 3 3 1 1 Services Spa Facilities Spa Treatment Health Club Concierge Turn Down Childrens Facilities Swimming Pool Lobby Shops Sports/ Golf Facility Business Center Airport 36 0 0 3 4 3 0 3 3 1 4 4 35 0 0 4 4 3 0 4 3 0 3 4 26 31 0 0 3 4 3 0 0 3 0 3 4 30 0 0 1 4 3 0 4 2 0 3 3 28 0 0 3 3 2 0 4 2 0 3 3 24 0 0 3 3 2 0 3 2 0 2 3 0

transportation Reception Speed/ Service Telephone Service Res Service/ Standards F&B Food Quality/ Service Entertainment All Day Dining Speciality Restaurants Beverage Outlets Banquet Facilities Size/ Quality of Ballroom Number of Mtg Rooms Rooms Service Total # of F&B Outlets General Location Website Quality Lobby Corridors Ballroom Meeting Rooms Parking Emplyee Attitude Landscaping Frequent Guest Program Prive/ Value Conscious Brand Name Loyalty

4 3 4 32 4 0 3 4 0 4 5 5 3 4 41 5 3 3 3 5 5 4 4 0 4 0 5

4 3 3 24 3 0 3 3 0 3 4 2 3 3 33 1 3 4 4 4 3 3 4 0 3 0 4

4 3 4 27 3 0 3 4 0 3 3 3 3 5 33 5 3 3 3 3 3 3 4 0 3 0 3

4 3 3 21 3 0 3 3 0 2 3 2 3 2 29 3 3 3 2 2 3 4 3 0 2 0 4

3 3 2 25 3 0 3 4 0 3 3 2 3 4 26 5 3 3 2 1 3 2 3 0 2 0 2

2 2 2 24 2 0 2 2 0 5 5 4 2 2 23 5 2 3 2 2 3 2 2 0 1 0 1 0 0

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Grand Total

154

133

130

113

105

93

Market Strength
Hotel Room Occupied Chart

30,000 25,000 20,000

26,060 23,267 Sheratont 14,119 Marriott 8,574 PC Avari

15,000 10,000 5,000 0 1

Rooms Revenue

250,000,000 200,000,000

221,280,373

203,659,704

129,071,989 150,000,000 100,000,000 50,000,000 0 1 58,945,066

Sheraton Marriott PC Avari

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Average Rate

6,875 8,753 9,142 8,491 Avari PC Marriott Sheraton

2000

4000

6000

8000

10000

Market Share

Avari 21%

Sheraton 35%

Sheraton Marriott PC Avari

PC 25% Marriott 19%

SWOC ANALYSIS

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STRENGTHS
1. Classic Rooms (Maximum Room) 2. Shalimar Court DARBAR (Three Portion) Parking- underground parking Brand Name Starwood Preferred Guests

OPPORTUNITIES
Capitalizing of revenue. 2. Duplex rooms specially designed for long staying guests. 3. Competitive edge over other hotels, high selling, DARBAR ideal for high profiled functions convenient and spacious. 4. Provide more security to customer. 5. To attract frequent traffic, highly rated by customers. 6. To attract frequent traffic

Six Sigma

7. A program that increase profits by eliminating variability, defects and waste that undermine customer loyalty. 8. Bookers reward program 9. A key feature to satisfy security concerns. 10. A world wide interconnected software 11. One window shop.

Star Choice Sprinkling Security System Opera Guest Services

STRENGTHS
GDS Maximum Number of Rooms Opera

CHALLENGES
1. Increased productivity to 3% to 7 % for 2006/2007 2. Difficult to sell 3. Efficiency and affectivity.

WEAKNESSES

OPPORTUNITIES

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1. Paid parking 2. Odd Lobby 3. Outside catering 4. Sales Kit

1. Covered car parking. 2. Very huge lobby. 3. Better rapport with top Executives in the company for increased Out Side Catering business. 4. Better presentation of hotel facilities.

WEAKNESSES
5. Extra paper work 6. Outside catering 7. One swimming pool 8. Only one property

CHALLENGES
4. Decreases the market coverage of sales personnel. 5. Effective Market coverage. 6. Sane pool for male / female 7. Nationwide presence

CONCLUSION
Sheraton being the only dive five star hotel in Pakistan has covered a long way since its inception. Sheraton hotel has resources to provide their customers with maximum

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satisfaction and carry out the process efficiently, satisfying guests needs in the best possible way. Although the hotel has same reasons for his existence, Sheraton is also competing against its competitor heavily. Any one of the hotels could not stand out in this competition as Sheraton has certain advantages over its competitor. Pakistan has great opportunities as far as tourism is concerned and being a developing country, heavily relies on foreign investments. Thus, Sheraton hotel is playing an important role in attracting tourism and foreign investments.

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ii

SWOC ANALYSIS - Sheraton

STRENGTHSOPPORTUNITIES 1. Classic Rooms (Maximum Room) 2. Shalimar Court 3. DARBAR (Three Portion) 3. Parking- underground parking 4. Brand Name 5. Starwood Preferred Guests 6. Six Sigma

7. Star Choice 8. Sprinkling Security System 9. Opera 10. Guest Services 1. Capitalizing of revenue. 2. Duplex rooms specially designed for long staying guests.

3. Competitive edge over other hotels, high selling, DARBAR ideal for high profiled functions. 3. Convenient and spacious. 4. To attract frequent traffic, highly rated by customers. 5. To attract frequent travelers. 6. A program that increase profits by eliminating variability, defects and waste that undermine customer loyalty. 7. Bookers reward program 8. A key feature to satisfy security concerns. 9. A world wide interconnected software 10. One window shop.

STRENGTHSCHALLENGES 1. Maximum Number of Rooms 2. GDS 3. Opera 1. Difficult to sell. 2. Increased productivity to 3% to 7 % for 2006/2007 Efficiency and affectivity.

WEAKNESSESOPPORTUNITIES 1. Paid parking 2. Odd Lobby 3. Outside catering

4. Sales Kit 1. Covered car parking. 2. Very huge lobby.

3. Better rapport with top Executives in the company for increased Out Side Catering business. 4. Better presentation of hotel facilities. WEAKNESSESCHALLENGES 1. Extra paper work 2. Outside catering 3. One swimming pool 4. Only one property

1. Decreases the market coverage of sales personnel. 2. Effective Market coverage. 3. Sane pool for male / female Nationwide presence