Hospitality Services

Services Marketing

Presented by Arun Krishna Einstein E V

Talk about:
About Hospitality Service. Hospitality Services in the global perspective. Contribution to the Indian Economy. SWOT Analysis Emerging trends in Hospitality sector Challenges for Hospitality Industry Hotel Industry

About Hospitality Services

The word meaning of Hospitality is Kindness in welcoming guests or strangers (Cordial Reception). Hospitality is all about offering warmth to someone who looks for help at a strange or unfriendly place. It refers to the process of receiving and entertaining a guest with goodwill. Hospitality in the commercial context refers to the activity of hotels, restaurants, catering, inn, resorts or clubs who make a vocation of treating tourists.

Hospitality Service is essentially an intangible service which is as important to the customer as the product itself.

Attention to the customer Courtesy An atmosphere of hospitality Helpfulness / assistance to customers an interest in customers' opinions and feedback.

Complaints Resolution. Company policies that work for customers and not against them. Order and cleanliness. In very simple terms, hospitality is the art of being warm to strangers and has been derived from the Latin word hospitalitem, which means "friendliness to guests".

Hospitality Services in the global perspective

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.

 The hospitality industry is very diverse and global. The industry is cyclical; dictated by the fluctuations that occur with an economy every year. The concept of hospitality business started when people started traveling away on business and they needed a place away from home which could cater to all their needs.

Contribution to the Indian Economy.

Hospitality sector is one of the fastest growing sectors in India. It is expected to grow at the rate of 8% between 2007 and 2016. ATITHI DEVO BHAVA (guest is God) - we have all heard this phrase many times during our childhood from our parents and grand-parents.

Hospitality is deep-rooted in our traditions and comes as an integral part of our heritage. The Indian hospitality industry is expanding presently, with high operating margins and increase in the number of travelers visiting India - both inbound and outbound.

SWOT Analysis
STRENGTHS

Natural and cultural diversity Demand-supply gap

Government support
Increase in the market share

WEAKNESSES Poor Support Infrastructure

Slow Implementation
Susceptible to Political Events

THREATS Fluctuations in international tourist arrivals. Increasing Competition.

 OPPORTUNITIES Rising income.

Open sky benefits.

TRENDS IN HOSPITALITY SECTOR

Low Cost Carriers Budget Hotels Service Apartments

Technology
Loyalty Travel

Challenges for Hospitality Industry

Shortage of skilled employees Retaining quality workforce Shortage of rooms

Intense competition and image of India

Customer expectations Manual back-end

Human resource development

HOTEL INDUSTRY
A hotel is an establishment that provides paid lodging, usually on a short-term basis. Some of the main features of the Indian hotel industry include the following.

The industry is more dependent on metropolitan cities as they account for 75% to 80% of the revenues, with Delhi and Mumbai being on top.

The average room rate (ARR) and occupancy rate (OC) are the two most critical factors that determine profitability. ARR depends on location, brand image, star rating, quality of facilities and services offered.

India is an ideal destination for tourists. Approximately 4.4 million tourists visit India every year. Thus the growth prospects are very high. The hotel industry can be further categorized into three segments: hotels, restaurants and contract caterers.

The hotels in India can be broadly classified into the following segments: 1.Star rated hotels 2.Heritage hotels 3.Budget hotels 4.Unclassified hotels

The first 2 types are usually located in business areas of metro cities and cater to foreign tourists, business travelers, top government officials and political brass, offering luxury at a high price. The next 2 types in tier II cities and tourist destinations, preferred by mid-level executives and leisure tourists. The last 2 types are found in smaller cities and around tourist spots, preferred by domestic tourists.

Heritage Hotels. These are characterized by lesser capital expenditure and affordability and include hotels running in palaces, castles, forts, hunting lodges etc.

The Hospitality Service Marketing System

Hospitality industry is a macro-system set up to meet all types of customers awayfrom home needs. The purpose of a business is to create and maintain profitable customers. Customer satisfaction leading to profit is the central goal of hospitality and tourism marketing.

Four Fundamentals of Hospitality Marketing System.

1. Strategic marketing planning 2. Marketing orientation 3. Services marketing different 4. Understanding customer behavior

The Hospitality Marketing System

1. Where are we now? 2. Where would we like to be? 3. How do we get there? 4. How do we make sure we get there? 5. How do we know if we got there?

Marketing Tasks
Planning & Research
1. Where are we now?

Analysis & Strategy

2. Where would we like to be?

Implementation
3. How do we get there?

Control
4. How do we make sure we get there?

Evaluation
5. How do we know if we got there?

The PRICE of Marketing

P R I C E

Planning Research Implementation Control Evaluation

Benefits of Using the Hospitality Marketing System

1. 2. 3. Puts a priority on planning to: identify alternative approaches maintain uniqueness create desirable situations avoid undesirable situations adapt to the unexpected Results in a logical flow of effort Creates a better balance of marketing activities

Long-and Short-Term Marketing Planning

Short-term = two years or less Long-term = 3 to 5 years or more

Strategic Market Plan and Marketing Plan

Strategic Market Plan

A written plan for marketing a hospitality and travel organization covering a period of three to five years in the future.
Marketing Plan A written, short-term plan for a period of two years or less which details how a hospitality or travel organization will use its marketing mix to achieve its marketing objectives.

Thank you