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Services Marketing in Hotels



 To incorporate the 7P·s perfectly

 Addressing the issue of perishability is one of the
major challenges in the hotel industry
 Hotels lie on 50:50 mark of Theodore Levitt·s
Product- Service Continuum
 Though there is a lot of automation, the service
element remains important
 There is a boom in the budget hotel industry
D P·s Of Service Marketing
 vlectronic locks on doors
 [ !"
 17-inch wall-mounted flat-screen TV
 24-hour cable TV with all major channels
 =ell-appointed rooms,  Internet connectivity: =i-fi
with all the facilities a  Mini-fridge
guest would expect at  Tea / coffee maker with complementary
any hotel sachets of Tea/Coffee
 A work area, a 20-inch  STD and local direct dial, voice mail and self
LCD television with programmed alarm on phone
satellite channels, a mini-  Full-length mirror
fridge and tea/coffee  vrgonomic work area
maker  =ardrobe and luggage rack
 Self controlled AC
D P·s Of Service Marketing
 [ "
 us 2,099-us 6,099 per night (Tax vxcl.)
The segmentation is on the basis of budget business
travellers in Tier-1 and Tier-2 cities
Pricing on the basis of comfort, safety and
reputation provided
Pricing is done on the basis of basic comfort and
safety and not luxury
Increased levels of automation will lower the levels
of expertise and hence the pricing
D P·s Of Service Marketing
 [ ":- Tier 1 & Tier 2 Cities
Identification of locations after detailed studies
across various parameters such as current and
near-term potential of the market, clusters of
clientele, seasonality in demand, current presence
and anticipated increase in competition.
Many hotels (such as Bhubaneswar and Nashik)
are based in locations which support both
business and leisure travellers
D P·s Of Service Marketing
 [  :-
Sales Promotion Offer (HDFC Offer, Surat
Diamonds Offer, Last Minute uates, Ginger Festive
Advertisings done locally and focus on word of
mouth and viral marketing
Direct marketing and search engine optimization
Publicity in the form of advertorials and articles
placed in magazines for maximum exposure to TG
D P·s Of Service Marketing
 [  :-
 =ell Trained, Courteous employees that are ever-present to assist
the guest for a comfortable stay
 Staff trained in the ´Business vxcellence Methodologyµ of parent
group Indian Hotel Company

 [ " :-
 Superior IT support for efficient booking process
 Automated check-in machines supported by courteous staff for
easy check-in
 Clean and orderly room promise on arrival
 vasy check out from within the room for express check out
D P·s Of Service
 [ " #!":-
Service strategy
1. Target Market ² Budget business traveller
looking for a comfortable stay at affordable
rates in tier I and tier II cities
2. Service Concept ² providing basics (to
complete a comfortable stay) of the highest
quality and other ¶frills· may or may not be
available, at reasonable charges
Service strategy
O. Operating Strategy ² regular training and
appraisals, accomodation provided, uniforms
provided with one time meal per day, job
rotation, job enrichment, strict 8 hour shifts
with compensation for overtime, trusted and
dedicated vendors, outsourcing of non some
components of the value chain
4. Service delivery system ² people, process,
physical evidence
Service strategy
$ # 
1. Positioning ² 'Smart Basics' concept offer fundamental comforts at affordable

2. Value & cost leveraging - It is a unique philosophy of providing intelligent,

thought-out facilities and services at a ¶value· pricing. It reflects the new
spirit in which people live and work today

O. Strategy & systems integration ²

 ´=e provide smart, clean and safe hospitality offerings by adopting Gen
next-practices that constantly enhance value for our patrons. =e are driven by
respect for people and nature and passion for our stakeholdersµ
 Customer-driven excellence: Anticipation of expectations and delight
patrons with convenient and modern facilities at an unsurpassed value
 vntrepreneurship: Take ownership of the tasks performed and to
create an environment that encourages and supports initiative and
appropriate risk-taking
 Innovation: Making meaningful changes to improve products, services
and processes to create value for all stakeholders is an integral part of
the daily work of the organisation
 Valuing employees, partners and communities: Nurturing and
developing internal and external partnerships, balancing the growth
of the core business while preserving natural resources and
contributing to society
 Speed and agility: Deliver on promises with a sense of urgency and
short response time
 Fun, joy and zing: A happy employee leads to a delighted guest
Marketing strategy
 Innovator in the space of budget hotels, hence enjoyed the first
mover advantage
 Sell the concept in addition to building brand awareness
 Young and small company with limited resources
 Not spend much on TV and press
 Internet provides a wonderful cost-effective platform not only to
build brand awareness but also to give customer direct booking
 Direct marketing and search engine optimisation help in getting
more than a third of non-corporate customers to book rooms
directly on-line
 Supplemented with the business to garner in partnership with
web-based travel portals
2ells & Whistles
 Bottled water  Digital safes located at the Give
 Posturepedic mattress 'n' Take counter at the lobby
 Duvets  On-site ATM: From a selected
set of approved banks
 Turn Down Service in the
evening  Net Zone: For high speed
internet connectivity
 Branded toiletries: Body & hair
wash, and hand wash  Laundry facility: vxpress
delivery (same day delivery)
 Swipe card locks that offer the
latest in security  Doctor on call
 Secure parking: 24*7 security
on-site: monitoring by CC TV
 Hand and Bath Towels provided