Establish a Hotel To Target
Business Visitors To Calicut
N.S. Narayanan
Agenda
• Peer Group Analysis
• Hotel Taj Residency
• Hotel Fortune
• Hotel Hyson Heritage
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Customer Survey Analysis
Changing Face of Kerala Economy
Required Attributes & Gap Analysis
Estimations – Set-Up
Hotel Taj Residency
Taj Residency
• Belongs to the Taj Group
• 73 Hotels in India & Abroad
• Number of Brands across segments
• Location
• Airport
• Railway Station
• Bus Stand
• Restaurant
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Food & Wine
Cape Camorin
Coral Reef
Logan’s Lounge
26 km
02 km
02 km
Taj Residency
• Rooms & Facilities
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Spacious & Sophisticated
4 Suites, 74 Rooms
2 Banquet Halls
Unique Ayurveda Cuisine
Business services
Leisure services
• Training
• Demand
• Work overload on festive period
Service Blueprint
Taj Residency
• Key Function Analysis
• Marketing
• Centralized
• Special offers on Onam and other festives
• Supply Chain
• Good relationships with vendors
• Human Resource
• Emphasis on people, training, incentives in place
• Customer Service
• Financials
Hotel Fortune
Fortune
• 3 Star Hotel Situated off Kannur Road
• Economic class of ITC Welcome group
• Business travelers – Cochin, Mumbai, Bangalore and
Chennai
• Location
• Airport
• Railway Station
• Bus stand
26 km
04 km
03 km
• Restaurants
• Tharavad
• Malabar court
• Captain’s cabin Pub
Exotic cuisine
Coffee shop
Fortune
• Rooms
• 63 Rooms
• Services
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Complementary breakfast
24 hours room service
24 hours currency exchange
Safe deposit lockers
Direct Dialing
CCTV
In-house Laundry
Travel Assistance
Doctor on Call
• Conference Halls
• Chancery
• Senate
• Cabinet
250 seater
Small gatherings
Small Board meetings
Fortune
• Tariffs are higher than Hotel Hyson
• Focus on Service and not on Costs
• Training
– Rigorous training for 6 months
– Service stressed at all levels
– Continues to spend high on training
Fortune
• Key Function Analysis
• Marketing
• Centralized
• Special offers on Onam and other festives
• Supply Chain
• Good relationships with vendors
• Relationship with travel agents and tour operators
• Human Resource
• Believes training makes the Fortune difference in service
• Staff strength: 7 FO, 25 Service Members
• Incentives for going extra mile, best employee etc
• Operations
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No seasonality in demand
Healthy occupancy rate of 87%-90%
Services close to 600 companies/month of which 180 are repeat
No expansion plans currently
• Financials
Fortune
• Key Function Analysis
• Quality
• Conducts regular audits
• Telephone audits and Mystery Audits
• Financials
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Yet to Break-even
Annual growth of 5-8% in the last 5 years
Revenues of 4 Crores/per annum
Prices increased by 10% every year
• Service Design
• Services to cater to tourist as well as Business clientele
• Superior customer service is the USP
Hotel Hyson Heritage
Hyson Heritage
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3 Star Hotel Situated off Mavoor Road
Enjoys High visibility
Runs profitably thru the year
Frequented by Business travelers from Gulf
– Cost Advantage
– Central Location
• Location
– Airport
– Railway Station
– City Bus Stand
: 26 km
: 01 km
: Walking distance
• Restaurant
– Benhur: Multi cuisine
– Exotic menu of Arab/Chinese/Continental
Hyson Heritage
• Rooms
– 93 rooms
– Both Air conditioned and Non A/c
• Services
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Complementary breakfast buffet
24 hours room service
Newspaper
CCTV
Internet on request
Laundry Service
Travel Desk / Bookshop
Doctor on Call
Direct dial STD / ISD
Florist
• Ayurvedic Centre
Hyson Heritage
• Conference Hall
– Hyson Darbar
– Akbar Hall
– Mughal Hall
• Elegant setting for:
– Corporate functions/ Social gatherings/ Seminar
• Online Booking system in place
Customer Survey Analysis
Customer Survey
• Qualitative study was conducted by organizing
interviews with the customers who were
staying in all the three hotels
• Aim of the research
• Customer Segment and its needs
• Performance attributes and competitor
performance with respect to a performance
attribute?
• What are the individual strengths and weaknesses
of each competitor?
• Unmet needs of the target segment which is not
addressed by the competitors.
Business Customer Segment
Customer
Segment
Definition
Corporate 60%
Individual Business Travelers
who travel to the city and stay
for less than 10 nights at a
stretch
Conferences 6%
Events 6%
Unique/Critical
Requirements
Business center
facilities, high
speed internet
connectivity
Groups of individual travelers Superior
visiting the hotel for attending conferencing
a conference organized in the facilities
conference halls of the hotel
Groups of individual travelers
visiting the hotel and staying
together to attend together an
event in the city
Customers Wants
• Journal of Quality Assurance in Hospitality &
Tourism ranks the following factors
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Quality of Staff performance
Value for Money
Safety & Security
Business related services
• Other factors
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Location
Internet Access
Quick customer Service
Easy Transportation
110% Effort
Value Proposition
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Location
Luxurious and Comfortable rooms
Quality of Room Facilities/ Customer Service
High Speed Internet Connectivity
Business Centre / Conferencing facilities
Business Related Services / Business
Assistance
• Complete Travel Assistance
Changing Face Of Kerala Economy
Kerala Economy
• Government is pro-reforms, pro-programs which
alleviate unemployment & welfare schemes
• Proposals to open Industrial parks and Techno park
• Lot of encouragement provided for Information
Technology sectors
• Government has put in place a liberal and
transparent FDI policy
• Kozhikode has recently started the CITI Initiative
• Kozhikode witnessing rise of business community
and a boom in trade
Hotel Attributes & Gap Analysis
Peer Benchmark
• Scale of 1(Poor) – 5(Excellent)
• Survey respondents:
• Personnel at Hotel
• 30+ Customers
Action Plan
• USP:
– Budget Hotel
– Value for Money
• Travel Assistance
• Single Tariff System
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Tie-up with Travel Agents & LCC
Tie-up with Business Houses
‘Frequent Visitor’ Program
Room Set-up
Conference Halls
Services Not Offered
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Gym
Florist
Gift shops/Book shops
Swimming Pool
Services with a Difference
• Floor – Reading Rooms equipped with Tea & Coffee
Vending Machines
• Business Merchandise to be sold
» (Financial analysis spreadsheet removed, will be
provided upon request)
Discussion!