A Presentation on

Marketing of Hospitality services

Presenter:Ajit Rudrapal (Roll No. 51)

Tapa Dey (Roll No. 52)Dept. of Business Administration, Assam University: Silchar

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The hospitality industry consists of broad category of fields within the service industry that includes lodging, restaurants, event planning, theme parks, transportation, cruise line, and additional fields within the tourism industry.

Mostly depends on the availability of leisure time and disposable income.

Covers a wide range of organizations offering food service and accommodation.

Divided into sectors according to the skill-sets required for the work involved.

Sectors include accommodation, food and beverage, meeting and events, gaming, entertainment and recreation, tourism services, and visitor information.

Accommodations Hostels , Hotels, Motels

Restaurants & Bars Cafes, Nightclubs, Public houses Travel and Tourism, Airline Cabin Staff, Travel agents

Hospitality IndustryHOSPITALITY INDUSTRY -CONCEPT

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Marketing of Hospitality Services: Introduction

Marketing of hospitality services includes Designing the basic service package (Product), thePhysical Environment , Pricing, internal marketing, Distribution , promotion & interactive marketing(Process).

The Services offered are mostly market segment specific.

On what basis that segmentation will be done???

Largely based on the affordability of the customers . The other criteria used by the hotels includes the purpose, occasion, individual vs group, loyalty and so on.

LOGO04/10/2023 Hospitality Services by Ajit & Tapa4

Product Physical Environment

Placing or Distribution

Internal &Interactive Marketing

1 2

45 3

Marketing mix of Hospitality

Services

The basic dimensions of marketing mix of hospitality services

Pricing

3

External Marketing

6

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1. Basic Service package (Product)

Developing a appropriate mix of facilitating & supporting services to enhance the usage rate of core service keeping in mind the requirement of target groups is the key to achieve the desired objective in Hospitality Industry.

Study the expectation of the target market, quality level of the service,

analyse the demand & cost-effectiveness & accordingly take the product decision.

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Basic Service package cont….. (Product)

One product may have an independent market & may also act as support service for another service product.(e.g. A restaurant).

To lead the market value delivered to the customer should be high, hence effort ought o be directed to reducing customer cost & increasing the value of the offering.

Continuous research & feedback analysis is the fundamental base.

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2.Physical Environment These includes locations, exterior, interior & other physical features

which have strategic significance. Both the exterior & interior design should be capable of attracting the

attention of the prospective buyers of the services. The architectural values, lighting, air quality, wall hanging, specialized

furniture, layouts are parts of interior of hotels.

The management of the hotels should be flexible & innovative regarding designing to add value perception without causing much disturbance to the routine.

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3. Pricing

Prices are generally fixed for various services like room tariffs & for food items. The decisions on pricing is very crucial & complex because of the presence of the large no. of elements with individual features.

The problems also lies in case of communicating price to customer & influencing them to develop value perceptions of the rates.

Establish price-quality relationship to assess the impact of pricing of the competitive offers in the customers decision making process.

Cost plus pricing is not suitable rather value pricing is highly appropriate in case of Hospitality services.

During slack seasons, hotels may offer seasonal discounts. Special tariff may be offered to the customers from business and trade to promote loyalty.

LOGO

4. Placing or Distribution

Not a Very focused function in hospitality, since hotels follow zero level distribution. The focus is largely on attracting the market to the hotel through communication campaign. The prominent intermediaries are travel agents & tour operators.

5.Internal & Interactive marketing

• Three major dimensions..

• Recruitment & training• Motivation• Recovery from service

deficiency -a major challenge

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6. External Marketingpromotion mix

An effective communication campaign for creating awareness and persuading customer to visit & stay in the hotel is necessary in the light of severe competition. Advertising Sales promotion Personal selling Publicity Public relation & Direct marketing Special events Sponsoring events etc

External marketing effort should focus on the credibility & reliability of the hotel on such parameters.

CHALLENGES FOR HOSPITALITY INDUSTRY

1. SHORTAGE OF SKILLED EMPLOYEES 2. RETAINING QUALITY WORKFORCE 3. SHORTAGE OF ROOMS

4. INTENSE COMPETITION AND IMAGE OF INDIA 5. CUSTOMER EXPECTATIONS

6. MANUAL BACK-END

7. HUMAN RESOURCE DEVELOPMENT

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Thank You all….