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Orchid Ecotel: Leveraging Green

Hoteling as core competency

Harsh Masharu (19020841017)

Megana Ganapathiraju
Monika (19020841019)
Nandini Likhar (19020841020)
Neeraj Garg (19020841021)
Orchid Ecotel
 Ecotel is a new concept in hospitality that claims to work for
environment protection and preservation.
 One of the five verticals of Kamat Hotels India Ltd.
 Other four verticals are VITS, LOTUS, Heritage property, and
Kamat Chain of Properties.
 Philosophy – To add value by providing eco-friendly organic food
and service.
 The first hotel in India to achieve “ECOTEL” certification.
 Set itself apart from the then competitive luxury hotel segment.
Environmental Friendly Services In Construction/Renovation at
Orchid Hotel
 Design:
1. The plan configuration: Reduced heat load.
2. Natural Lighting in atrium: Skylight was the main source.
 Civil Work:
1. Use of PPC which contain 15-20% of fly ash contained in
OPC which is normally used.
2. Cisterns and Flushes: 6 litres of water per flush against 15-20
litres of water per flush.
 Electrical:
1. PL Lamps: Equal lights but lesser energy consumption.
 Mechanical:
1. Air Conditioners: The heat generated provided hot water in
washrooms, laundry etc.
Ecotel Certification
 First company in Indian to receive this Certification
 Comprehensive process which includes –
 Energy Management
 Solid waste management
 Water management
 Employment Generation and Community development
 It’s a 360 degree appraisals involving cost reduction and sustainable
initiatives having long term implications on the hotel’s day-to-day
 Hence Ecotel is the necessary core competency for The Orchid.
Building Core Competency:
Integrating Infrastructure with Human Resources
 Green Team:
1. Consisting of one member each from every operation division.
2. Organising programs and activities that promote eco-friendly solutions.
3. Every month one team member was awarded “Best eco green employee” for showing extra
concern towards the environment.
4. Not a single employee was fired at the time of economic slowdown instead focussed on cost
cutting practices through eco friendly means.
5. Regularly arranging training workshops to make them aware of the importance of eco-friendly
hotel service.
 Guest Participation:
1. Newspapers on request.
2. Eco Button
3. Linen reuse program
4. Giving up cards with seeds inside while customer’s departure: 60 lakhs trees planted
Marketing strategy of the firm
To encourage visitors to revisit The Orchid, Orchid has introduced its
Gold plan which gives discounts on :
 Food (50% discounts) and beverages (20% discounts)
 Free accommodation
 Membership referral program : Visitors get extra benefits as free
buffets and free night stays depending upon number of referrals
they suggest.
 Taking Care of every little detail right from brick to paper.
 Redefined Luxury as an “Experience” and not as a mere “Service”.
 Marketing The Orchid as a green hotel was based on the fact that
87% of international travelers patronized green hotels.
Strategic Dilemma
 Other verticals are not able to bring profit as much as Orchid.
 Dilemma is renaming the company after the Orchid.
 It should weigh the cost and benefits associated with all verticals.
 Renaming works only if core competency extend along with brand
 Limitations include:
 Basic infrastructure and Capital expenditure.
 Other verticals had their own brand personality and targeted different
customer segments
 Operational strategies also vary among different verticals
Expansion Alternatives:
1. Only the brand name and the logo of the Orchid is shared.
2. Orchid can lay down on specific standards and quality specifications while
taking charge of the operations.
3. Background Integration: Not only finding enough staff but making sure to hire the
right people and remain consistent to their existing culture and value systems
through educating them. Ex: Oberoi leaned heavily on its own hotel schools.
4. Orchid gets the higher ladder in the way of expansion only if expansion is done
by second mode of franchising by using the background integration.

Financial Aspect – If we wanted to expand The Orchid the initial expenditure will be
very but in long run we will get good returns.
Leveraging Core competencies
 The Orchid has a good reputation than other verticals so it should
leverage its core competencies of eco friendly so that it can use the
profitable income which comes from this vertical to use in the others
to improve them from their losses and brand value.
 So that operational changes can be made to strengthen up the
core competencies and brand value of the other verticals.
 VITS follow eco-friendly initiatives to a large extent but Heritage
properties to prosper in the eco-friendly domain is difficult since most
properties are taken over from the other owner. So instead of
renaming the entire company name they can go forward with
renaming just the VITS vertical.
 For other verticals like the LOTUS, HERITAGE properties it can go for
the concept of Budget Hotels in Tier I and Tier II cities rather than
additional capacity in premium and luxury hotels.
Thank You!