Establish a Hotel To Target Business Visitors To Calicut N.S. Narayanan Agenda • Peer Group Analysis • Hotel Taj Residency • Hotel Fortune • Hotel Hyson Heritage • • • • 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 • • • • Food & Wine Cape Camorin Coral Reef Logan’s Lounge 26 km 02 km 02 km Taj Residency • Rooms & Facilities • • • • • • 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 • • • • • • • • • 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 • • • • 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 • • • • 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 • • • • 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 – – – – – – – – – – 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 • • • • Quality of Staff performance Value for Money Safety & Security Business related services • Other factors • • • • • Location Internet Access Quick customer Service Easy Transportation 110% Effort Value Proposition • • • • • • 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 • • • • • Tie-up with Travel Agents & LCC Tie-up with Business Houses ‘Frequent Visitor’ Program Room Set-up Conference Halls Services Not Offered • • • • 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!