Examples of Service Industries

Health Care hospital, medical practice, dentistry, eye care Professional Services accounting, legal, architectural Financial Services banking, investment advising, insurance Hospitality restaurant, hotel/motel, bed & breakfast, ski resort, rafting Travel airlines, travel agencies, theme park Others: hair styling, pest control, plumbing, lawn maintenance, counseling services, health club

Hotel Industry
Indian hospitality industry is in the midst of a strong cyclical

upturn on the back of a buoyant economy, with a growth in business and leisure tourists @ 25% p.a. and an existing shortage in room supply of about 100,000 guest rooms The Premium end of the market (5 Star Deluxe) in which the Company operates, generates around 65-70% of industry revenue Very few projects are under implementation in Bangalore, Chennai, Hyderabad & Pune. Hence, the next few years are likely to witness a limited capacity addition with strong increase in annual demand of about 15%. There are strong barriers to entry viz., scarcity of suitable plots of land at good locations, excessive land prices in metropolitan cities

Hotel Industry - Demand

Growth in business-tourist

traffic to India remains strong in the double digits The trends for ARR growth and room demand remain encouraging. Recent rupee appreciation of 7-9% could have a near-term impact on revenues Most hotel chains are looking to either increase dollar tariffs or subsequently move to rupee tariffs for domestic as well as international customers

Hotel Leela, Mumbai

Located near Mumbai International Airport
Customers: predominantly business travellers and airline crew Largest Ballroom in the City Average ROOM RATE during 2006-07 has been Rs 9,375 compared to

Rs. 6,745 for the previous year Market Information: Average room rate in North Mumbai grew by 42% in FY2007 No additional supply expected in 2007 / 2008 Future positive developments: Modernisation of International Airport with Flyover connectivity to Highway/ Rapid improvement in local infrastructure : Roads, Airports, Seaports / Mushrooming of IT, ITES, BPO Units in the North Mumbai area.

7 Ps Of Hotel Industry
Product
Price Place

Promotion People Process Physical Evidence

PRODUCT

PLACE

PROMOTION PRICE
Promotion blend Salespeople Flexibility

Physical good Channel type features Quality level Accessories Packaging Warranties Product lines Branding Exposure

Price level Terms Differentiation Allowances

Intermediaries Advertising Outlet location Sales promotion Transportation Publicity Storage

PEOPLE
Employees Customers Communicating culture and values Employee research

PHYSICAL EVIDENCE
Facility design Equipment Signage Employee dress Other tangibles

PROCESS
Flow of activities Number of steps Level of customer involvement

The Services Marketing Triangle

Company (Management)
Internal Marketing External Marketing

enabling the promise

setting the promise

Employees

Interactive Marketing

Customers

delivering the promise