The good times that began for the hotel industry, with the opening up of the economy at the start of the decade, seem to have ended. The industry has had its ups and downs and come a full circle in the last ten years. As with the broad economy (until this fiscal), the hotel industry has over the last three years been wilting under pressure from low occupancy rates and deteriorating profit margins. Though the economy has picked up in the last 10 months or so, the fortunes of the hotel industry are yet to look up. But, of late, there are some feeble signs of an improvement in the fundamentals. Occupancy rates in the last few months have been improving, but the earnings outlook may continue to be affected by operating rates and overcapacity. The profitability of the hotel industry is a function of two factors: Occupancy rates and average room rates (ARR). After recording a phenomenal jump in the mid-1990s, the ARR tapered off towards the end of the decade. This can be attributed mainly to the arbitrary pricing methods followed by hoteliers earlier in the decade. During the peak period, room rates were hiked by as much as 30 per cent. This project is just an attempt to make the marketing of hotels easier to understand to the common person. Placing a hotel in a particular grouping is not easy. Because of the industry's diversity, many hotels do not fit into any single well-defined category. Therefore, several general classifications do exist. There are numerous variations and permutations. The various categories are based on hotel size, target markets, level of service, and level of control.
[...] The term marketing mix is the combination of what market offers and studies, which help in identifying the actual point, where marketing action can be taken to improve the acceptability of hotel product and stimulate demand. With the viewpoint of marketing the hotel product, the combination of several sub mixes is necessary. It is the application of the marketing principles in the hotel industry, so that hotel services are made internationally competitive vis-à-vis commercially viable. IT can be very useful to the hotel industry in the future. [...]
[...] Target market One of the most important marketing questions facing a hotel industry is: stays in the hotel and whom can we attract.' Through marketing research, tools, and strategies, lodging properties seek to identify target markets. Target markets are distinctly defined groups of people that the hotels hope to retain or attract as guests. A recent trend in the hotel industry is to define and identify smaller, distinct groups or “segments” within larger target markets, and to develop product and services aimed specifically at satisfying these groups or segments. [...]
[...] Promotion mix For successful marketing, it is only not sufficient to concentrate on the quality of services but it is also impact generating that we promote our business in such a way that the prospects come to know about the quality to be offered to them as hotel customers. This focuses the attention on innovative promotional measures. The components like advertisement, publicity, sales promotion, personal selling, word-of-mouth promotion and telemarketing need due attention of hotel professionals. Advertisement Advertisement is a paid form of communication that helps in informing, sensing and persuading the prospects or users. [...]
[...] Thus, the needs of the international tourists travelers are seen to while they are on a visit to India Manpower costs in the Indian hotel industry is one of the lowest in the world. This provides better margins for Indian hotel industry India offers a readymade tourist destination with the resources it has. Thus the magnet to pull customers already exists. Weaknesses 1. The cost of land in India is high at 50% of total project cost as against 15% abroad. [...]
[...] Users of hotel industry Users of hotel industry It is natural that we fined a difference in the intensity of both the categories of uses. Domestic Users In the group of domestic users, the different categories are pilgrims visiting the sacred places, students on educational tours, official on deputation, political representatives, film stars on location shooting. Knowledge seekers on developing their credentials, sportsmen playing national games. The domestic users stay in hotels with a different motive. We find a change in the level of domestic users. [...]
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