18 May 2008
Ever Thriving Hospitality Enterprises
India since time immemorial has been attracting people from all parts of the world for her material well-being, art & culture, liberal outlook and spirituality besides her charming landscape and beautiful flora and fauna. The key factors spawning India’s hospitality industry growth are a booming economy, steady political scene, soaring service industry, FDI inflow, infrastructural growth and a boost for the tourism sector due to govt funding. A 200 bedroom hotel with wildlife park, tennis and squash courts, multi-cuisine dining, a bar, meeting rooms, state-of-the-art conference halls, a swimming pool, fitness gym, sauna, health studio, sports therapy etc., are the most comprehensive facilities in the complex of a star hotel. And the tariff suiting the traveller’s pocket, the popularity of the hotels will be growing. Demand of hotel rooms in the metro is often greater than the supply of rooms. It is difficult to draw a dividing line between hospitality and tourism. Hospitality industry can not rest on the laurels of its success and assume that their existing clientele will remain loyal for long. Customers may be tempted to switch their allegiance after trying a new competitor or move to another area. Purposeful promotional measures should be taken not only to maintain the level of sales but also to increase it.
The major difference in marketing hospitality enterprises as against marketing other consumer products is that there is no tangible evidence of the business transaction compared with the purchase of a material product. For example, after a customer has spent money on a meal, a room or a drink, there is nothing to show for it. Hotels are prime examples of hospitality operation and marketing with their variety of products and market segments. A function room is single product but is sold for many different purposes such as interview room, sales meeting, social get together and celebratory event. Credit cards, smart cards, ultra cards speak volume of services. Hard copy brochures, leaflets, menu are going to vanish by touch screen menus, featuring a hotel’s facilities describing bedrooms, conference facilities, menu dishes, wine lists and the facility to translate that information instantly to the native language of the customer eradicating the misunderstanding. The location of hospitality enterprises is often the key to success. When deciding where to build, one may have many options of consideration in order of priority such as location, distribution channels and geographical coverage. Influences on the physical location of the business relate to the number of customers in the catchments area, the presence or otherwise of competitors, the cost etc.,
The hospitality industry is faced with a heterogeneous market, i.e. customers who are seeking differently priced accommodation according to their budget, different meal experiences from self service to silver service, different styles of cuisine from creole to Thai, alternative take-away meals from burgers to sandwiches. Effective marketing and dynamic selling are most important in the hospitality industry. Because if a seat in a restaurant or a room in a hotel remains unsold that day, that income is lost forever. This is why, many consider the most perishable item in a hotel to be a bedroom. As the economy takes a major stride, fashion, lifestyle and consumer behaviour patterns are changing. This indirectly leads to consumers now opting to go on short vacations and staying in starred hotels. This change in mindset and desire to go out and spend some time in hotels is driving the growth of this industry. In places like Bangalore, an entire floor of a multistoried star hotel is earmarked for single lady guests. The hotel management provides tight security measures like CCTV, additional security guards, room double locking, escort services and screening of calls, lady butler service etc., Improved technology, more affluence, greater sophistication, foreign travel, intensive competition, all play their part in increasing customer’s expectations of level of service. Hotel chains of international players have begun to realize the potential of this ever thriving but yet untapped markets. A large number of construction activities are going on for hospitality sectors with 300 rooms, 400 rooms etc., on the suburb particularly in the ECR route. The hospitality is another boom to the real estate enterprise in India.