Você está na página 1de 71

Supply Creates Its

Own Demand: A Study


of Hotel Industry in
Kolkata


A strategy delineates a territory in which a company seeks to be
unique. Appropriate changes in strategies are mandatory to sustain
in marketplace. This depends on the present situation and future
predications. However, till now very little research has been carried
out for hotel industry in Kolkata, India. This study is focused on point -
of-differentiation; present marketing strategies and demand-supply
gap of luxury hotels in Kolkata. This study also concentrated to find
out gap between guests expectations Vis--vis hoteliers perception
about expectation of guests.






ITC, The Sonar
The Luxury Collection

2010
Vivek Kumar
Kolkata ,India
A REPORT
ON
SUPPLY CREATES ITS OWN DEMAND: A STUDY OF
KOLKATA HOTEL INDUSTRY


By
Vivek Kumar (09BS0002756)
ITC, The Sonar
The Luxury Collection

A report submitted in partial fulfillment of the requirements of
MBA Program of
The ICFAI University, Dehradun



Distribution list:
Ms. Snigdha Majumdar (Six Sigma Manager, ITC Sonar)
Mr. Anupam Ghosh (Faculty, IBS Kolkata)


Date of Submission: 14
th
May, 2010
Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


Authorization:

The report is submitted as partial fulfillment of the requirements of
MBA Program of ICFAI University, Dehradun

Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


Acknowledgement

I would like to thank Mr. Ranveer Bhandari , General Manger ,ITC Sonar for giving me
permission to carry out this project.
With immense pleasure and deep sense of gratitude, I wish to express my sincere
thanks to company guide Ms. Snigdha Majumdar ,Six Sigma Manager, ITC Sonar and
faculty guide Mr. Anupam Ghosh , Lecturer, IBS, Kolkata for his constant interest,
encouragement and expert guidance throughout the course of this project, which
provide the necessary driven force that enabled me to pursue our work with vigor and
keen interest.
I would like to extend a deep sense of heartfelt thank to my friend Harshit sethi, Richa
Ranjan and Sujan Chakarobarty for their guidance and suggestions because without
them this project wouldnt have been possible.
At last, I express my sincere gratitude to my peers and family for their moral support
and the love rendered during the course of my dissertation work.

Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


Contents

Authorization: .......................................................................................................................................... i
Acknowledgement................................................................................................................................... ii
Abstract................................................................................................................................................... v
List of Illustration.................................................................................................................................... vi
1. Introduction..................................................................................................................................... 1
1.1. Background .............................................................................................................................. 2
2. Overview of Hotel Industry .............................................................................................................. 4
2.1. Overview: Indian Economics..................................................................................................... 4
2.2. Overview: Hotel Industry in India ............................................................................................. 7
2.3. Overview: Hotel Industry In Kolkata ....................................................................................... 11
3. Research Design............................................................................................................................. 13
3.1. Sampling Frame ..................................................................................................................... 13
3.2. Sample Size ............................................................................................................................ 13
3.3. Methodology ......................................................................................................................... 14
4. Discussion ...................................................................................................................................... 15
4.1. Positioning of Hotel industry in Kolkata .................................................................................. 15
4.1.1. Convenient location:....................................................................................................... 17
4.1.2. Service quality ................................................................................................................ 18
4.1.3. Food and Beverage ......................................................................................................... 18
4.1.4. Brand ............................................................................................................................. 19
4.1.5. Other Variables .............................................................................................................. 19
4.1.6. Combining all Variables .................................................................................................. 20
4.2. GAP between customers expectation and hoteliers perception about customers need ....... 22
4.2.1. GAP Analysis with Guests................................................................................................ 22
4.2.2. GAP Analysis with IT & ITES industry ............................................................................... 24
4.2.3. GAP Analysis Model for Hotel Industry ........................................................................... 26
4.2.4. FMEA for largest GAP area: Room Service ....................................................................... 31
4.3. Present Market Strategies of Hotel Industry in Kolkata ........................................................... 35
4.4. Prediction of Demand and supply in Kolkata in future ............................................................ 36
Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


5. Recommendation .......................................................................................................................... 39
6. Conclusion ..................................................................................................................................... 41
Annexure I: About ITC Ltd. ........................................................................................................................ i
Annexure II: About ITC WelcomGroup .................................................................................................... iii
Annexure III: About ITC ,The Sonar (Kolkata,India) ................................................................................... v
Annexure IV: List of Company in Salt Lake..............................................................................................viii
Annexure V: Questionnaire for Guest ..................................................................................................... xi
Annexure VI: Questionnaire for Hotelier ................................................................................................ xiii
Annexure VII: Questionnaire for IT Industry ........................................................................................... xvi
Annexure VIII: Calculation for Area for Perceptual Map ....................................................................... xviii
Bibliography: .......................................................................................................................................... xx
Glossary ............................................................................................................................................... xxii



Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


Abstract

A strategy delineates a territory in which a company seeks to be unique. Appropriate
changes in strategies are mandatory to sustain in marketplace. This depends on the
present situation and future predications. However, little research has been carried out
for hotel industry in Kolkata, India. This study is focused on point-of-differentiation;
present marketing strategies and demand-supply gap of luxury hotels in Kolkata. This
study also concentrated to find out gap between guests expectations Vis--vis hoteliers
perception about expectation of guests. A survey has been conducted on hoteliers,
guests and IT industry to get to collect the data. Data has been interpreted by
perceptual map, GAP analysis and FMEA (Failure mode and effects analysis).It is found
that guests perceive ITC, The sonar as best hotel in the city (Kolkata, India). This study
also reveals that there is a huge gap in customers expectation and hoteliers perception
regarding room services and restaurants. Hence hotelier should improve service quality
in these two areas to minimize the customers complain. The implication of this study
will be to improve marketing strategies for hotel industry in future. Also this article will
contribute for new entrants to develop proper strategies against different threats.


Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


List of Illustration
List of Figure
Figure 1 : RevPAR and GDP Trend for the Hospitality Industry.................................................................. 6
Figure 2 : Trend of changing Number of Room and hotel throughout decades ........................................ 7
Figure 3: Perceptual map of Different Hotels in Kolkata ......................................................................... 16
Figure 4 : GAP between Guests expectation and Hoteliers Perception about Guest ............................... 23
Figure 5 : GAP between IT & ITES Company's expectation and Hoteliers Perception about Guest .......... 25
Figure 6 : GAP analysis Model for a Hotel from a Hotel Chain ................................................................ 27
Figure 7 : Parato Graph for Complain in Room services .......................................................................... 33
Figure 8 : Area Calculation for Perceptual Map .................................................................................... xviii

List of Tables
Table 1 : ARR of Different Category of Hotel ............................................................................................ 8
Table 2 : Occupancy Level of Different Category of Hotels ....................................................................... 9
Table 3 : Number of Rooms and Hotels in Kolkata.................................................................................. 11
Table 4: Average of Rating corresponding to Hotels and different Factors ............................................. 16
Table 5 : Area under the curve for a Perceptual Map ............................................................................. 21
Table 6 : GAP between guests expectation and Hoteliers Perception about Guest ................................ 23
Table 7 : GAP between IT & ITES Company's expectation and Hoteliers Perception about Guest ........... 25
Table 8 : Name of GAPs for Hotel Industry ............................................................................................. 27
Table 9 : Calculation of Risk priority numbers (RPN) For Room Services ................................................. 32
Table 10 : Arrangement of RPN in Descending Order ............................................................................. 33


Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


1. Introduction
Service sector industry is growing in India and it contributes 57 % of total GDP (Central
Statistical Organization,India). Hospitality is one of the service sector industry which is
booming.
Hotel or hospitality is being used as synonyms of each other and throughout the report
these two terms will be used as alternative of each other. Hotel is commercial
establishment providing lodging, meal and other guest services
(BusinessDirectory.com). This is a basic need of hotels but now in a competitive
marketplace it is highly needed to retain the guest
1
. To get WOW from guest all player
in this industry are providing services more than guests expectations. This war, of
getting more and more WOW develops tough competition among rivals and ultimately
it increases the bargaining power of customer.
Presently, in all category of hotels in India around 1, 10,000 rooms are available which
is expected to increase by 100 percent by year 2015 ( HVS, 2007).

All global players
had planned to tap Indian market and big player like Starwood, Hilton Group, Westin
and Accor had already either directly invested in India or they made collaboration with
any Indian company. Also IT & ITES
2
and low cost domestic airline fueled hotel industry
in India.

1
Customer of Hotel Industry is called guest in hospitality industry
2
ITES stand for IT enabled services
Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


Now, due to continuous and rapid changes in hospitality industry in India, it is need to
do in-depth study of hotel for future strategies. This report includes in-depth analysis of
hotel which covers following objectives:
To understand position strategies of five star deluxe hotels in city.
To estimate customer expectation while selecting a luxury hotel.
Present marketing strategies of Hotel industry.
To understand demand supply GAP in Future.
1.1. Background
Kolkata is a metro city in India where development in term of technology from last three
decades is comparatively lesser than other metro cities in India. Now Government is
emphasizing in IT and ITES services to invest inside the city. In term of providing
appropriate infrastructure, Government developed IT park in Kolkata which is known as
Salt Lake. After looking positive impact on economy of state (West Bengal),
government has decided to come up with new IT Park called Rajarhat which is three
times bigger than Salt Lake in area. After development of this ITPark it is expected to
grow per head income and also it will increase number of consumers for hotel industry.
Hotel rooms demand is very income elastic. It dips or increases faster than the
increase or decrease in income growth. As of now, for hotel industry, Kolkata market is
mostly occupied by business traveler and less by tourist.
In Kolkata, by year 2015, number of domestic and foreign tourism is expected to
increase by 15.63 % and 17.18 % (Ministry Of Tourism, 2008) respectively. It will create
Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


more demand of room for each category of hotels and to meet demand supply gap few
new hotels will be coming in this industry.
Now it is a need to analyze what will be the demand-supply statistics in coming year.
Also it is highly required to understand the impact of above scenario on different
category of hotels.

Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


2. Overview of Hotel Industry
According to an estimate, international tourist inflow in India by 2020 would be 10 million
(World Trade Organization, 2002). This makes the country one of the fastest growing
tourist destinations in the world. India accounts for 0.5% of world tourism ( HVS, 2007).
Strong GDP growth, improving infrastructure, confidence in the country's economic
prospects, open sky policy and the 'Incredible India' campaign has improved the outlook
for India. This positive outlook would increase the tourist arrival in the country. Hence
hotel industry is expected to be the major beneficiary. Even domestic tourism is gaining
momentum. Rising disposable incomes, cheaper airfares and better connectivity would
continue to increase the demand for rooms. Many international hotel chains either have
or are on the lookout for setting up shop in the country. This clearly shows that India is
on the international tourism radar. The five star hotel segments have grown the fastest
during the last five years clocking a CAGR
3
of 12% (World Trade Organization, 2002).
Economic liberalization has given a new impetus to the hospitality industry. The current
gap between supply and demand expected to widen further as the economy opens and
grows (DATAMONITOR, 2009). The country is ranked fourth among the worlds must
see countries ( HVS, 2007).
2.1. Overview: Indian Economics
Indias GDP
4
recorded a growth rate of 6.7% for the financial year 2008-09 (Central
Statistical Organization,India) after recording growth above 9% for three consecutive
years. The economic recovery of the country can be further kept on course by a stable

3
CAGR Cumulative Average Growth rate
4
GDP stands for Gross Domestic Product of India
Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


political environment provided by the Congress-led United Progressive Alliance (UPA)
returning to power through a comfortable majority in the general elections last year.
Policies of the newly elected government of leaning towards disinvestment and
infrastructure development have helped sustain economic growth. The increased
spending on infrastructure development will boost the tourism industry and
backbone of tourism i.e. Hospitality will also grow.

Although the last year began under high inflationary pressures, there were concerns
about negative inflation towards the year end. This financial year saw low inflation levels
and even fears of deflation due to the dropping of the WPI
5
. In its downward slide from
the previous year's all-time high of 12.38 % (August 2008), WPI for June 2009 turned
negative (-1.3%) The drop in commodity prices can benefit hotel developers, who can
take advantage of cheaper construction materials. This weak period is probably the
best time to make investments into the hotel sector
After the globalization in India, Hospitality industry has seen two cycles for the economy
downturn (Figure 1). The first cycle peaked in 1997, after which it started a downward
trend hitting the bottom in the year 2001/02.The second cycle started with the recovery
of the economy in 2002/03, peaking in 2007/08 after a period of continuous growth.
Figure 1 shows the RevPAR
6
trend for fourteen years, from 1995/96 to 2008/09 along
with the GDP growth rate for the same years. Leading macroeconomic indicators GDP
are correlated to the performance of the hotel industry. However, though the hotel
industry is amongst the first to be hit by a downturn, it is amongst the slowest to

5
WPI stands as Wholesale Price Index of India.
6
RevPAR stand as Revenue Per Available room ,Which is commonly used in hospitality to major the performance
Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


recover since the spending on travel is considered as discretionary for most leisure
travelers and some business ones as well.
Figure 1 : RevPAR and GDP Trend for the Hospitality Industry
Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


2.2. Overview: Hotel Industry in India
The financial year 2008/09 was an unforgettable one for the Indian tourism industry
with the Mumbai terror attacks and the global economic downturn affecting the
industry's performance. The hotel industry, too, observed an overall decline in
occupancy and RevPAR
7
in most cities in India. To analyze the trend of number of
rooms, number of hotels and average number of room per hotel from 1995 till year
2009 in India we can refer the Figure 2.The growth rate in number of room in last
fifteen year is around 132% observed.
Source: HVS Hotel in India Trend and opportunity 2009


7
RevPAR stand for Revenue Per Available room Which is common terminology in hospitality industry
Figure 2 : Trend of changing Number of Room and hotel throughout decades
Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


2.2.1. Luxury hotels and low cost hotels
Throughout this report the term Luxury hotel is used for five star deluxe, five star and
four star hotels where as Low cost hotel means three star hotels. From the Error!
Reference source not found. we can analyze that there is rapid growth in RevPAR during
year 2002/03 to 2007/08. During this period Indian economy was booming .during these
years where we can see growth rate is very high, GDP at factor cost was touching at
nine percent. After year 2007/08 there is a sharp decline in RevPAR due to global melt
down and Mumbai terror strike. We can see the occupancy level of different category of
hotel in the table below. Important fact can be interpreted from this table that there are
decline in occupancy rate and Average room Rate (ARR) of luxury hotel but occupancy
level and ARR in low cost hotel had increased

Table 1 : ARR of Different Category of Hotel
Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata



2.2.2. SWOT Analysis of Indian Hotel Industry
From the survey, SWOT
8
analysis can be concluded as below:
2.2.2.1. Strength
i. Indias rich culture heritage: With a historical backdrop of 5,000 years, India is
one big package of culture
ii. Demandsupply gap: Indian hotel industry is currently facing a mismatch
between the demand and supply of rooms leading to higher room rates and
occupancy levels.
iii. Government support: The government has realized the importance of tourism
and is willing to spend towards the development of the industry. The Incredible
India campaign is a product of this realization.
2.2.2.2. Weakness
I. Poor support infrastructure: India is concentrating to improve infrastructure
and India has planned to invest huge amount on infrastructure in 13 plan
compare to 12 plans .China is spending seven times as much as India on
infrastructure (excluding real estate) in absolute terms.


8
SWOT stands for Strength, Weakness, Opportunity and threat
Table 2 : Occupancy Level of Different Category of Hotels
Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


2.2.2.3. Opportunity
I. Rising Income: Income for domestic tourist is continuously increasing. Six pay
commissions made government job more attractive and therefore private sector
also changing their compensation structure.
II. Open sky benefits: The opening up of the aviation industry in India brings
exciting opportunities for the hotel industry .Increased airline activity has
stimulated demand and has helped to improve India's troubled infrastructure.
Also the open skies policy has benefited both international and domestic travel.
III. New business opportunities: It is expected that over the next three to five
years, the biggest surge in accommodation demand is expected to come from
commercial zones that are being developed in metro suburbs and secondary
markets. Mixed-use development projects that include retail and commercial
space have also gained momentum. Also the new concept, which is going to gain
importance, is that of budget hotels to make start category of hotels for more
people.
2.2.2.4. Threat
I. Event risk: Events like Mumbai Terror attack, 9/11, SARS outbreak and
Afghanistan and Iraq wars have severely impacted the tourism industry in the
past and the threat remains.
II. Increasing competition: Global hospitality majors like the Four Seasons,
Shangri-La and Aman Resorts are all making their entry into the Indian market.

Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


2.3. Overview: Hotel Industry In Kolkata
Kolkata is business hub for east India and it is only metro city in this region. Total
number of hotel available under different category in east India is 734 out of which 173
hotels are in Kolkata itself. Total number of room available under different category in
eastern India is 9928 out of that 3373 is situated in Kolkata. When we talk about luxury
hotels we can see most of the hotel is situated in Kolkata from this region of country
(Table 3)
Category of
Hotels
Number of Hotel Number of Rooms
In East India In Kolkata In East India In Kolkata
5 Star Deluxe 4 4 852 852
5 Star 4 2 332 466
4 Star 12 2 176 755
3 Star 33 5 263 1455
Table 3 : Number of Rooms and Hotels in Kolkata
Source: MINISTRY OF TOURISM, 2008. Assessment of requirement of Hotel Room / Accommodation in Metro Cities and
50 major tourist cities in India, p.42
Over the last year, Kolkata witnessed a drop in room nights demand and the
occupancies fell by approximately 3% (HVS research on the market pegs this decline at
7%). The slump was a byproduct of the overall dampening of room nights demand
across most major Indian cities, following the November 2008 terrorist attacks in
Mumbai and the overall depressed sentiment from the global recession. The average
rates, however, did not see any movement owing primarily to the lack of new supply
entering the market. Additionally, unlike other major cities, Kolkata hotels had not seen
an exponential jump in average rates in the past few years and thus the immediate
Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


need for rate correction was not warranted. Future supply is expected to be absorbed
as room nights demand grows from the central city as well as the new business area of
Salt Lake and Rajarhat. A few hotel projects are under construction and the city is
expected to have an additional thousand branded rooms across various positioning in
the next five years. That being said, while some of these hotel projects are finally seeing
active development, there are several announced projects on EM Bypass and in
Rajarhat that are suffering delays for a variety of reasons. The overall development of
Rajarhat as the new commercial hub of Kolkata has been painstakingly slow and even
stagnant in recent months.

Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


3. Research Design
3.1. Sampling Frame
This research has been started with secondary data collection from several research
journal followed by the questionnaire survey. Questionnaire survey is divided in to three
parts.
First set of questionnaire is designed for guests (Annexure V: Questionnaire for Guest).
This questionnaire helped us to understand customer expectation while they select the
hotels.
Second set of questionnaire is designed for the hoteliers (Annexure VI: Questionnaire
for Hotelier) which helped to understand the strategies adopted by the hotelier for
customer satisfaction and retention of customer. It was an personal interview of different
hoteliers in Kolkata.
Finally, we selected IT & ITES services to interview (Annexure VII: Questionnaire for IT
Industry) since this is the industry which pulls maximum demand of rooms among any
other industry, we tried to understand their requirements.
3.2. Sample Size
During research forty one guests has been interviewed. People, who usually stay in star
category of hotels, were part of this interview as guests. Also we have targeted only
those guests who enjoyed almost all five star deluxe hotels in Kolkata, India.
For the study at random twenty eight IT and ITES industry personnel has been selected.
We have selected those personnel from these companies who usually book hotel rooms
for their employee. During interviewed it was focus to understand why they select
particular hotel for their employee.
To know the strategies of hotel industry seventeen hoteliers were interviewed in
Kolkata, India. This interviewed was done to understand the present strategies and
future opportunity in hotel industry.
Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


3.3. Methodology
This research is started with secondary data collection with several research papers on
hotel industry .After secondary data collection three set of questionnaire were prepared
for guests, for IT industry and for hoteliers.
Guests have been asked to fill a standard set of questionnaire (Annexure V:
Questionnaire for Guest ) Where as, for hoteliers and IT industry, it was a personal
interview (Annexure VI: Questionnaire for Hotelier and Annexure VII: Questionnaire for IT Industry ).
Complete data has been analyzed in MS Excel 2007, with the help of different Radar
chart, bar Chart and line chart.

Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


4. Discussion
4.1. Positioning of Hotel industry in Kolkata
Positioning is the act of designing the companys offering and image to occupy and
distinctive place in the mind of target customer (Kotler, Kevin, Koshy, & Mithileshwar,
2009). In hotel industry positioning strategies for existing properties and for new venture
is entirely different (Bowie & Francis, 2004). For existing properties some of the factors
are fixed, those are location, geo-demographic area, and properties current facilities
and properties historic image.
Indian Hotel co., I T C Welcomgroup and EIH are top three hotel chain in India with
market share of 14.35 %, 9.49 % and 8.31 % (Centre for Monitoring Indian Economy,
2010).We have selected three hotels of Kolkata from these three hotel chain to
understand their positioning in the city. Taj Bengal, ITC The Sonar and Oberoi Grand
are the three hotels in Kolkata from Indian Hotel co., I T C Welcomgroup and EIH
respectively. Hyatt regency is also part of this survey since this hotel is the only hotel in
five star deluxe hotels
9
categories in Kolkata which is operated by a global player.
A Perceptual map (Figure 3) has been drawn as per the survey conducted by the
guests
10
. While studying the perception of customer we selected eleven attributes. After
a pilot survey it is found that two attribute was confusing to the respondent. Hence
survey to understand the perception of customer is done with nine attributes .Those
nine attributes are Convenient location, Service quality, Food and Beverage, Brand,
Technological advancement, Warmth and courtesy, Safety & Security, Value for money
and Other facilities like spa and business centre (Annexure V: Questionnaire for
Guest).These attribute is rated by guest on five point likert scale from 1-Very Good to 5
Very Bad. Hence while analyzing the data, smaller the rating is better for particular
attributes. All nine attribute can be explained with the reference of perceptual map
(Figure 3).Explanation of how these nine factors affects to create perception in
customers mind is illustrated below:

9
Five star deluxe is the category of hotel in India which is provided by Federation of Hotel and Restaurant
association of India (FHRAI)
10
In Hospitality industry, Customer of Hotel is usually called Guest.
Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata



Figure 3: Perceptual map of Different Hotels in Kolkata

ITC, The
Sonar
TAJ
Bengal
Hyatt
Regency
Oberoi
Grand
Average
Convenient location 1.89 2.77 2.45 1.91 2.26
Service quality 1.72 1.54 2.00 2.18 1.86
Food and Beverage 1.67 1.85 2.55 2.55 2.15
Brand 1.61 1.54 2.00 2.18 1.83
Technological advancement 1.78 1.62 1.45 1.82 1.67
Warmth and courtesy 1.61 1.54 1.73 2.18 1.76
Safety & Security 1.50 1.62 1.82 1.73 1.67
Value for money 2.00 2.23 2.09 2.27 2.15
Other facilities like spa and
business centre
1.83 1.62 2.00 2.00 1.86
Table 4: Average of Rating corresponding to Hotels and different Factors


0.00
0.50
1.00
1.50
2.00
2.50
3.00
Convenient
location
Service quality
Food and
Beverage
Brand
Technological
advancement
Warmth and
courtesy
Safety & Security
Value for money
Other facilities
like spa and
business centre
ITC,The
Sonar
TAJ Bangal
Hyatt
Regency
Oberoi
Grand
Average
Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata



4.1.1. Convenient location:

Location of ITC, The sonar and Oberoi Grand is rated as most convenient by the
guest. Average rating
11
given by guest for ITC, The sonar and Oberoi was 1.89
and 1.91(Table 4) respectively. With a long gap of 0.54 units (i.e. 2.45-1.91) Hyatt
Regency is being rated as 2.45 and being at last position and Taj Bengal is rated
as 2.77.
ITC, The sonar is situated at EM bypass which is in the middle of city (Park
Street) and salt lake area is rated as highest compare to any other location. It
shows convenient location from customer perception as it is convenient from
their workplace and city as well. Second most convenient location for guest was
Oberoi grand which is situated near to esplanade. This esplanade is located in
the heart of the city and is one of the busiest portions (Wikipedia).Esplanade is
near to Dalhousie Square which is filled with several government offices. This
place is accessible for work. We can analyze both the hotels rated at top
because of same factors. But in the Case of Hyatt Regency, this place is near to
Salt lake and Rajarhat which is IT hub for the city but city proximity is not as good
as ITC Sonar or Oberoi. And at last, Taj Bengal is situated in Alipur which is posh
area in Kolkata and its accessibility in business area is comparatively less. Salt
lake, Rajarhat, Park Street, Dalhousie etc are far away from Taj Bengal.
Remember in Kolkata most of the traveler are business traveler and hence for
them Taj Bengal is not convenient place.

Location is the very important for new entrants, since location cannot be changed
unlike other attributes. Most of the traveler in Kolkata are the business traveler
and hence site selection for new entrants in this industry should be in such a way
that business travelers can be targeted.


11
All nine attribute is rated by guest on five point likert scales from 1-Very Good to 5 Very Bad. Here Average
rating terminology is used for the average of all respondent for particular attribute of respective hotels.
Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


4.1.2. Service quality

Guests perceive the service quality of Taj Bengal is best among these four hotels
followed by ITC, The Sonar (Figure 3).Average rating given by guests for Taj
Bengal is 1.54 where as being at second position ITC, The Sonar has scored
1.72 with a small gap of 0.18 (i.e. 1.71 1.54). Service quality of Hyatt and
Oberoi is far away from origin of the graph and customers perceive service
quality of these hotels is not recommended compare to previous two.
ITC, The Sonar can fill this small gap with Taj Bengal by putting little more effort
to improve service quality. During discussion with hotelier it is found that
important reason behind lake of service quality in ITC, The sonar is:
Attrition rate is very high
Training of Taj Bengal is better
4.1.3. Food and Beverage

ITC, The Sonar has rated best by the guest for F&B
12
which is followed by Taj
Bengal. Again for this attribute Oberoi grand and Hyatt regency is rated very
poorly (Figure 3).ITC, the sonar and Taj Bengal has scored average rating 1.67
and 1.85 respectively with gap of 0.18 (i.e. 1.85 1.67) .Poorly rated hotel
Oberoi grand and Hyatt regency has achieved same average rating of 2.55
where as Average of all four hotels under this category was 2.15.
In F&B, ITC Sonar has expertise in Indian food. Peshawari and Dumpukhat
13
is
their specialty restaurant which gives the feel of India. Also ITC chain of hotel
gives test of local food and hence ITC sonar has Bengali food also. This
customization for the food creates Point of differentiation (POD) for the ITC,The
Sonar.


12
F&B is the terminology used in hotel industry for food and beverages
13
Peshawari and Dumpukhat is the restaurant in ITC, The Sonar
Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


4.1.4. Brand

Taj Bengal (Indian Hotel co.) topped in Brand name and it scored 1.54 followed by ITC,
The Sonar (I T C Welcomgroup) scored 1.61.There are very small gap of 0.07 (i.e. 1.61
1.54 ) in Brand name shows both the brand is almost equally known by the guests.
For this parameter again Oberoi Grand (EIH co.) and Hyatt Regency is rated very poor
(Figure 3)
Being as oldest hotel chain Indian hotel co. is well known by most of the guest. This
brand name is associated with the name of TATA Group, which is considered as one
of the most faithful company in India. It might be the reason of scoring highest for Taj
Bengal.
I T C Welcomgroup is almost equally known as Indian Hotel co. I T C welcomgroup
(Annexure II: About ITC WelcomGroup) is associated with one of the premier brand
name I T C which is well known company in India. I T C became famous by selling
tobacco product in 1950s and still most of the citizen think I T C stands for Indian
Tobacco Company .I T C Diversified (Annexure I: About ITC Ltd.) their business in
several areas and to remove negative image of Tobacco, company is involve is several
social work. Every division of I T C including ITC Welcomgroup has show some part of
corporate social responsibility (CSR). In Recent year, these actions modified their brand
image which is needed still to improve.
4.1.5. Other Variables

Other Variables like Technological advancement, Warmth and courtesy, Safety &
Security, Value for money and Other facilities like spa and business centre are almost
equally rated for all the hotels. It shows this all are mandatory services which every
guests are needed and hence all the hotels are emphasizing almost equally on it. Still
discussion can be extended by taking each and every parameter separately one by one.
The Term Technological advancement refer to computerized reservation system,
development of global distribution network, commercial use of internet, development in
Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


hotel computerized system which has improved in room comfort and security of guest.
The current rate of change in technology is fast and new technologies are constantly
altering the technological environment (Bowie & Francis, 2004). Hyatt regency is rated
best with minute difference with Taj Bengal. Hyatt regency scored 1.45 where as Taj
Bengal scored 1.62 which shows Hyatt regency is more likely then Taj Bengal with a
minute difference of 0.16 (i.e. 1.62 1.45).Guest perceives, Hyatt has adopted
advanced technologies since it is having a global experience. ITC, The sonar is also
closer to Taj Bengal with Average rating of 1.78, which is lower then overall average
value of 1.67. Oberoi Grand ranked last by scoring average rating 1.82 which far away
from overall average of 1.67.
When we discuss about Warmth and courtesy, Taj Bengal and ITC Sonar both topped
with almost equal score of 1.54 and 1.61 respectively (Table 4).In ITC Sonar, attrition rate
is comparatively higher then Taj Bengal. Because of this employee cannot give
personalized service as per previous experience of particular guests. It is the important
reason for ITC, The Sonar to score slightly lesser score compare to Taj Bengal. Service
of Hyatt Regency is also acceptable by guest after Taj and ITC Sonar Whereas Warmth
and courtesy of Oberoi Grand is much inferior from the same of other three hotels (Figure
3).
For other three variable like Safety & Security, Value for money and other facilities like
spa and business centre almost all the hotel is perceived equally by the guests (Figure
3).and hence these variable cannot be treated as positioning difference among all four
hotels in Kolkata.
4.1.6. Combining all Variables

With reference of the positioning map (Error! Reference source not found.), we need to
understand overall position of four hotels in Kolkata. To understand this we calculated
the area under the perceptual map (Annexure VIII: Calculation for Area for Perceptual Map).
Areas for each hotel are shown in Table 5.Also comparison of each hotel is illustrated
below.
Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


In this analysis also, lower the area under the curve is better (since guest has relied on
five point likert scale from 1-Very Good to 5 Very Bad).
Area
under the
curve
(Unit
2
)
Comparison
ITC, The
Sonar
TAJ
Bengal
Hyatt
Regency
Oberoi
Grand
Average
ITC The Sonar 10.45 0.00
TAJ Bengal 11.22 0.77 0.00
Hyatt Regency 14.10 3.65 2.88 0.00
Oberoi Grand 15.15 4.70 3.93 1.05 0.00
Average 12.68 2.23 1.46 -1.42 -2.47 0.00
Table 5 : Area under the curve for a Perceptual Map

Area under the curve for ITC sonar is 10.45 Unit
2
, shows this hotel is most favorable
hotel in city. For comparison of ITC Sonar with other hotel is illustrated in Column
ITC,The sonar under comparison sub heading in Table 5 . Being at the second position
with minute difference of 0.77 unit
2
, Area under the curve of Taj Bengal was 11.22 unit
2
.
whereas with large difference of 3.65 unit
2
and 4.70 unit
2
with ITC sonar Hyatt Regency
and Oberoi Grand scores 14.10 unit
2
and 15.15 Unit
2
.
Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


4.2. GAP between customers expectation and hoteliers perception about
customers need

Guest, hotelier and IT
14
industry personnel are interviewed to understand their
perception. Guest, hotelier and IT industry are interviewed on seventeen parameter
(Annexure V: Questionnaire for Guest , Annexure VI: Questionnaire for Hotelier
,Annexure VII: Questionnaire for IT Industry). Those seventeen parameter are efficient
check In, Efficient check Out, Concierge, Room service, Dry Cleaning & Laundry,
Choice of Cuisine, Size of Room and Bathrooms, Cleanness, Internet Connectivity,
Business Centre & Conference facilities, Health club & Spa, Sports and Recreational
activity, Distance from Airport, City proximity, Environment & Ambiance, Brand Loyalty
and Value for Money. Guest and IT company is asked how important these parameter
for him/her. Similarly hoteliers are asked which parameter they think more important for
customer.
Both Guest and hotelier ranked their importance in 1 to 5 likert scale in which 1 is very
important whereas 5 is least important. Hence, Smaller the number shows more
important for particular attribute.
After collecting the data, Average for each attribute is calculated for all three set of
questionnaire .Difference between guests expectation and hotelier perception shows
gap for each attribute. Positive Numerical value of these gaps shows hoteliers are
giving more importance to particular attribute compare to Guests or IT industry and vice-
versa. Now let us discuss GAP with Guests and IT industry individually
4.2.1. GAP Analysis with Guests
In this section of discussion, GAP means gap between Guest expectation and hotelier
perception about their (Guest) expectations. In this analysis, maximum GAP found with
attribute Value for money (Figure 4). Guests ranked Value for money as 1.19 whereas
hotelier ranked as 1.42 with a huge negative value (-0.24) of GAP (Table 6)

14
IT industry include IT & ITES (IT enabled Services) services.
Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata



Figure 4 : GAP between Guests expectation and Hoteliers Perception about Guest
Sl.No Parameter Average of
Guest
( I )
Average of
Hoteliers
( II )
GAP (III)=
( I ) (II)
1 Efficient check In 2.08 1.00 1.08
2 Efficient check Out 1.92 1.00 0.92
3 Concierge 2.19 2.14 0.05
4 Room service 1.42 1.57 -0.15
5 Dry Cleaning & Laundry 2.27 2.14 0.13
6 Choice of Cuisine 1.85 1.86 -0.01
7 Size of Room and Bathrooms 1.58 1.71 -0.14
8 Cleanness 1.12 1.14 -0.03
9 Internet Connectivity 2.38 1.14 1.24
10 Bus. Centre & Conf. Facilities 2.85 1.71 1.13
11 Health club & Spa 2.81 1.57 1.24
12 Sports and Recreational activity 3.15 2.43 0.73
13 Distance from Airport 2.19 2.29 -0.09
14 City proximity 2.08 1.43 0.65
15 Environment & Ambiance 1.46 1.57 -0.11
16 Brand Loyalty 2.12 2.14 -0.03
17 Value for Money 1.19 1.43 -0.24
Table 6 : GAP between guests expectation and Hoteliers Perception about Guest
Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


Being at second position, GAP in Room service is 0.14 units which is a large GAP. It
shows most of the consumer gets unsatisfied by the room service since important
given by hotelier is much lesser then customer expectation.
Some of the variable likes Environment & Ambiance, Size of Room and Bathrooms, City
proximity, Brand Loyalty and Distance from Airport are the attribute which either can not
be changed or there are several barriers while changing them. For new entrance, these
are the important attribute to focus on so that they can attract their target customer
easily. Refer Table 6 for the GAP for these attribute.
GAP with the attribute of Choice of Cuisine is another factor which is most vulnerable
attribute for a hotel industry since guests expectation for this attribute is higher then
hoteliers perception for same attribute. Hence GAP in F & B
15
needs to be filled by
the by Hotelier to minimize the guests complain.
4.2.2. GAP Analysis with IT & ITES industry

In this section of discussion, GAP means gap between IT companys
16
perception and
hoteliers perception about their (IT companies) expectations. In this analysis,
maximum GAP found with attribute Distance from Airport (Figure 5). IT industry ranked
Distance from Airport as 1.67 whereas hotelier ranked as 2.28 with a huge negative
value (-0.62) of GAP (Table 7).It shows most of the business travelers are concern about
the distance from airport which is not given equally priority by hotelier.
GAP of room service again came at second rank similar as it was in GAP analysis with
Guest. This should again a focus point for hotelier to give more important to this
attribute to minimize the complain for IRD
17
.
Being at the third position, Negative GAP for dry cleaning and laundry is more
business traveler
18
which may be a less focused attribute by the hotelier and they need
to focus on this. Detail of all seventeen GAPs can be referred in Table 7 and Figure 5

15
Food and Beverage is usually used as F&B in Hotel industry
16
IT stands for IT and ITES company
17
IRD stand for In room drawing which is usually used in hotel industry
Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata



Figure 5 : GAP between IT & ITES Company's expectation and Hoteliers Perception about Guest
Sl.No Parameter Average of
IT Industry
( I )
Average of
Hoteliers
( II )
GAP ( III ) =
(I) - (II)
1 Efficient check In 2.17 1.00 1.17
2 Efficient check Out 2.17 1.00 1.17
3 Concierge 1.83 2.14 -0.31
4 Room service 1.00 1.57 -0.57
5 Dry Cleaning & Laundry 1.67 2.14 -0.48
6 Choice of Cuisine 1.83 1.86 -0.02
7 Size of Room and Bathrooms 2.00 1.71 0.29
8 Cleanness 1.00 1.14 -0.14
9 Internet Connectivity 1.67 1.14 0.52
10 Bus. Centre & Conf. Facilities 2.50 1.71 0.79
11 Health club & Spa 3.67 1.57 2.10
12 Sports and Recreational activity 3.83 2.43 1.40
13 Distance from Airport 1.67 2.29 -0.62
14 City proximity 2.17 1.43 0.74
15 Environment & Ambiance 1.17 1.57 -0.40
16 Brand Loyalty 2.17 2.14 0.02
17 Value for Money 1.33 1.43 -0.10
Table 7 : GAP between IT & ITES Company's expectation and Hoteliers Perception about Guest

18
Business traveler is the word used for the guest coming for business purpose. But survey is conducted only in IT
and ITES industry
Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


4.2.3. GAP Analysis Model for Hotel Industry

GAP in hotel industry can be illustrated by eight GAPs (Figure 6 and Table 8).Most of the
five star deluxe hotels in India are from a chain of hotels. Hence the illustrated model is
designed to focus GAPs in any one hotel from a hotel chain.
The difference between an individual hotel and a chain of hotel is, in chain of hotels
several factors are decided by their corporate office. And a particular hotel of that chain
cannot change those things unlike to individual hotels.
Some time Hoteliers may not understand the need of guest and they anticipate guests
expectation wrongly. This creates dissatisfaction for guest which might be an important
cause for losing the market share. Customer generation is much more expensive rather
customer retention and hence wowing from guest is always mandatory.
With reference to the GAP Model for hotel industry (Table 6), Different parameters have
been evaluated as discussed in section 4.2.1 and 4.2.2. In this model, all the seventeen
parameter have been plotted as a satisfaction parameter and that parameter have been
evaluated to find out the GAP. If Hotel industry can reduce these GAPS, They can
increase their market share.
GAP 1: GAP between Guest perception and management perception
about distance from Airport or City to hotel affects the hotels business
This GAP arises because of location of Hotels. While a guest is picked up at
the airport how much time will it take from him to reach to the gate of hotel .A
city like Tokyo or London where average speed of four wheeler is much higher
than same of India .And hence this parameter is not much effective. But a city
like Kolkata (India) where road maintenance and traffic jam is a huge problem
this parameter is very effective. Same case applied for a person if he/she wants
to come from their home or offices to restaurant of any hotel. They may select
those hotels which are near to their place. This GAP is named as Proximity
GAP (Table 8).
Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata





Figure 6 : GAP analysis Model for a Hotel from a Hotel Chain
GAP Number GAP Name
GAP 1 Proximity GAP
GAP 2 Welcome GAP
GAP 3 IRD GAP
GAP 4 F&B GAP
GAP 5 Standard GAP
GAP 6 Recreational GAP
GAP 7 Perception GAP
GAP 8 Expectation GAP
Table 8 : Name of GAPs for Hotel Industry
Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


GAP 2: GAP between Guest perception and their expectation from
particular brand during Check in and checkout facilities.
Check in is first impression where as check out is last impression for a guest
in hotel. There is a saying You will never get second chance to make a first
impression .Importance on First impression is always important. Check in of a
particular guest gives an overall perception to the guest about hotel. If check in
is more than their expectation then even in case of any service failure later on
during his experience in hotel he/she can take it lightly and vice versa is also
true.
Check out is last impression and also this is last chance to do a service
recovery. If guest is happy during check out, it shows customer retention for
particular hotel will be more. This GAP is named as Welcome GAP (Table 8)
GAP 3: GAP between Guest perception and their expectation from
particular brand during Room service.
During survey it is found that GAP in room service is negative with large
magnitude and hotelier needs to improve in this area to meet guests
expectations (Table 6 and Table 7). In this area customer spend his maximum
time and for every moment they have expectation for good services. From
hotelier point-of-view several constrain are there. Like restaurant may be bit far
from room and since temperature of food is not as hot as it should be and
hence customer is not proper test. Similar kind of several problem arises in
room service which hoteliers are already aware but because of several
constrain they are not able to improve it. This GAP is named as IRD
19
GAP
(Table 8)
GAP 4: GAP between Guest perception and their expectation from
particular brand in restaurants.
There is GAP in restaurant with Guests expectations and perception after
experience when they compare with the brand of hotel. For example ,ITC

19
IRD Stands for In Room Drawing which is commonly used in hotel industry
Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


welcomgroup is known for Indianess .if a guest comes to restaurant if he/she
will not get the test of Indian food then that creates a GAP and causes un-
satisfaction. This GAP is named as F&B
20
GAP (Table 8)
GAP 5: GAP between Guest perception and their expectation from
particular brand about environment and ambiance.
When guest go to the hotel they does not pay only for the services but also they
pay for environment and ambiance. For example if they goes to Oberoi Grand,
Kolkata they may want to feel the boutique experience. Similar every brand
name has their point of differentiation in environment and ambiance. This is an
experience which is applied everywhere in the hotel unlike previous GAPs
which is applied only in particular area. This GAP is named as standard GAP
(Table 8)
GAP 6: GAP between Guest perception and their expectation from
particular brand about sports and recreational activities.
Now a day, it is an added feature that most of the luxury hotel gives for Spa,
meditation, squash, sports and recreational activity. When guests choose a
particular hotel he/she perceive something from particular brand. There is a
GAP exist if customer expectation does not meet with their perception with
particular brand. This GAP is named as recreational GAP (Table 8)
GAP 7: GAP between Guest perception and their expectation while they
compare each and every service with Value of Money
When guest experience all the service, they evaluate every parameter with
amount they spent. This GAP is a function of all previous GAPs as shown
below:



20
F&B stands for Food and Beverage which is commonly used in hotel industry

Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


During survey it is found that this is the largest GAP (Table 6) if hotelier want to
minimize this GAP they need to minimize all previous GAPs. This GAP is
named as perception GAP (Table 8)
GAP 8: GAP between Guest expectations for Value of Money and their
expectation with the same.
After Calculating the value of money guest need to compare it with his
expectation. This GAP can be named as expectation GAP (Table 8). This GAP is
the function GAP 7.

Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


4.2.4. FMEA for largest GAP area: Room Service

Negative GAP for room service is found the second largest GAP in both, GAP
with guests and GAP with IT firms. Largest GAP for Guest were the Value for
money Which is a function of all the six GAPs (Figure 6) and largest GAP for IT
firms is found the distance from airport. This deliver un-satisfaction in guests
and hence they complain most in room services.

Now Value for money will automatically increase if customer will be satisfied in
room service (Which is largest after Value for money) where as Distance from
airport cannot be changed for existing hotels and hence it is a need to
understand the usual complains , analysis of Complains and resolution for the
same in room services.
4.2.4.1. Usual Complains in Room Services:

Hoteliers are interviews to understand the problematic area in room services.
Sixteen attributes were extracted from this interview .Those sixteen attributes are
order taking, delivery time, preparation time, compliance with guest, specification,
menu knowledge, clearance, quality Of food & beverage, service skill, tone of
voice, listening skill, repeating and confirming the order, suggestive selling,
trolley Setup, warmth & courtesy, portion Size and feed back

4.2.4.2. Analysis of Complains
FMEA
21
(Failure mode and effects analysis Table 9 ) has been done followed by
Parato
22
graph ( Figure 7 and Table 10) for all sixteen attributes. For the FMEA a
ordinal scale of 1, 3 and 9 has been selected which is explained below:
For Severe 1 means less severe and 9 means most severe

21
Failure modes are any errors or defects in a process, design, or item, especially those that affect the customer,
and can be potential or actual. (Wikipedia, 2008)
22
Parato is a graphical representation which is used to prioritize some of the important attributes among several
attributes
Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


For Occurrences 1 means frequency of occurrence is less and 9 means
frequency of occurrences is more.
For Detection 1 means easily detectable and 9 means tough to detect.
All sixteen parameter is tabulated by understanding their degree of severity, frequency
of occurrences and possibility of detection in Table 9 and risk priority number (RPN) has
been calculated. This RPN is shorted in Table 10 and a Parato is drawn in Figure 7 to
prioritize some of the attribute on which hotelier can focus to increase customer
satisfaction.

Parameter Severe
( I )
Occurrence
( II)
Detection
( III )
RPN
23

(IV) = (I) x (II) x (III)
Order Taking 9 9 9 729
Menu Knowledge 9 1 9 81
Listening Skill 9 1 1 9
Tone of Voice 3 3 3 27
Suggestive Selling 3 1 3 9
Repeating and confirming the order 9 1 1 9
Compliance with Guest
specification
9 9 1 81
Trolley Setup 3 3 1 9
Preparation Time 9 9 3 243
Delivery Time 9 9 3 243
Clearance 9 3 1 27
Quality Of F & B 9 3 1 27
Service Skill 3 1 9 27
Warmth & Courtesy 9 1 1 9
Portion Size 3 1 1 3
Feed back 1 1 1 1
Table 9 : Calculation of Risk priority numbers (RPN) For Room Services
From the Parato Graph (Figure 7), It is identified that almost 20 percent of problem (20
% of number of attributes i.e. 16 = 3.2), Contribute 80 percent of total RPN (Figure 7 and
Table 10).

23
RPN is a risk priority number which is a multiplication of degree of severe, frequency of occurrences and
possibility of detection in FMEA analysis.
Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


Parameters RPN Percentage Cumulative Percentage

Order Taking 729 47.52% 47.52%
Delivery Time 243 15.84% 63.36%
Preparation Time 243 15.84% 79.20%
Compliance with Guest specification 81 5.28% 84.49%
Menu Knowledge 81 5.28% 89.77%
Clearance 27 1.76% 91.53%
Quality Of F & B 27 1.76% 93.29%
Service Skill 27 1.76% 95.05%
Tone of Voice 27 1.76% 96.81%
Listening Skill 9 0.59% 97.39%
Repeating and confirming the order 9 0.59% 97.98%
Suggestive Selling 9 0.59% 98.57%
Trolley Setup 9 0.59% 99.15%
Warmth & Courtesy 9 0.59% 99.74%
Portion Size 3 0.20% 99.93%
Feed back 1 0.07% 100.00%
Total 1534 100%
Table 10 : Arrangement of RPN in Descending Order


Figure 7 : Parato Graph for Complain in Room services
Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


4.2.4.3. Resolution Of Complain
Hotelier can maximize the customer satisfaction by focusing on only three attributes
order taking, delivery time and preparation time. Order taking itself is combination of
several parameters like communication skill, listening skill, menu knowledge etc. Hence
hotelier should give proper training to order taker to minimize the error or customer
dissatisfaction in this area.
Delivery time which scores second most RPN, can be improved by putting more
resources to deliver the food to the guest. Also hotelier can think to minimizing distance
of room from their delivery center to minimize turn-around-time (TAT).
There are some Hands-on-time (HOT) which will always take to cook food. But still
hotelier can do a market research to know the latest technology for cooking which may
reduce the time.

Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


4.3. Present Market Strategies of Hotel Industry in Kolkata

As discussed in earlier section, Kolkata is business hub and most of the traveler in city
is the business traveler. In Kolkata, Movement because of Business purpose pulls the
demand of room. Unlike a Tourist place usually seasonality for traveler does not vary. In
Kolkata, demand of room and banquets shows seasonality only because of
Marwadis
24
weddings. Most of the Marwaris wedding usually happen in month of
November-December and May-June. This is a peak period for hotel industry in
Kolkata and Hotel industry generate good amount of revenue because of raised
demand. Also some of the events like medical conferences; cricket machetes etc.
raised the demand of hotels which is not seasonal. But these kinds of big events are
preplanned since long. And Hence hotelier keep ready them self to in cash this
opportunity.
Presently in luxury hotels, very less amount of people who pay room chargers from their
own pocket instead there organization pay for them and hence hotelier target the
different organizations to make their employee stay in particular hotels. Specifically
different companys has contract with one or few hotels in the city.
Presently most of the Luxury hotels
25
in Kolkata are the chain of hotels and for customer
retention they have some loyalty program (member ship plan).After taking member ship
customer will get extra benefits out of that in whole chain of hotels. So that if one has
taken the member ship of one hotel chain they cannot move to another chain since for
him hotel where they have member ship will be more convenient.
Most of the budget class
26
of hotel tries to attract the business traveler of public sectors
or small companies. Budget class of hotel targeted the employee of public sectors since
during travelling they do not get enough allowances to stay in luxury hotels. Also in
Kolkata leather firm is very active which does not pay enough allowances to middle
class employee to go in luxury hotels.

24
Mardwari is a community in India who usually belongs from a area called Marwad in Rajsthan
25
Luxury hotels stands for 5 star deluxe,5 star and 4 star hotels
26
Budget class of hotels means three star hotels
Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


4.4. Prediction of Demand and supply in Kolkata in future

Kolkata is only business hub in eastern India and hence development in business in
east India will increase the demand of room in Kolkata. Kolkata port is also only port in
this part of country. Demand and supply of room may affected by several factor apart
form room demand by local business of Kolkata. People who usually go to the Assam
for Tea or timber business they usually take a night stay in Kolkata. Also export of tea
(Assam) is being done from Kolkata port. So Movement because of surrounding area
is an important parameter for the demand of room.
Also Fishery board and tourism department of west Bengal is developing different
tourism sites and bitches to attract the tourism (FHRAI, 2008-09) industry which may
increase the demand in future. Development of Henry Island (near to Bekhali) is a very
good example of an attempt to make it a tourist sport by fishery department of west
Bengal. Similar several developments are going on which may attract tourist in future.
Supply of Room:
Present supply of room available in eastern India is illustrated below:
Location Category wise number of rooms
Heritage 5 Star
Deluxe
5 Star 4
Star
3 Star 2 Star 1
Star
Approved Licensed Total
Kolkata
269 852 332 176 263 246 110 45 1080 3373
Puri / Bhubneshwar
34 0 59 285 327 32 0 12 1040 1789
Darjeeling
81 0 0 0 76 36 0 23 712 975
Siliguri
0 0 0 0 76 36 0 45 112 269
Digha
0 0 0 0 0 0 0 56 96 152
Guwahati
0 0 0 144 134 0 0 56 464 798
Patna
0 0 75 39 102 32 0 12 448 708
Ranchi
0 0 0 25 106 35 0 27 433 626
Shillong
0 0 0 40 49 0 0 45 272 406
Gangtok
25 0 0 46 63 0 0 87 240 461
Gaya / Bodhgaya
0 0 0 0 169 0 0 34 168 371
Total
409 852 0 755 1422 407 110 442 5065 9928
Source: MI NISTRY OF TOURISM, 2008. Assessment of requirement of Hotel Room / Accommodation in Metro Cities and 50 major tourist cities in
India, p.41
Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


In latest economic downturn Occupancy level, ARR and RevPAR (Revenue per
available room) of every city has fallen down in India but Kolkata is able to reach slight
growth of 1.7 % in ARR (Crisil, 2010). Showing Positive growth show there is need
of more and more number of rooms in the city.
Demand of Room:
Projected demand of room in Kolkata is 16919 by year 2011 under all categories of
hotels. Which can be further divided in different category like luxury hotel (3753 rooms),
Budget class hotel (6720 rooms), Classified hotels (10473 rooms) and others (6444
rooms) (Ministry Of Tourism, 2008).
By year 2011, expected number domestic travelers and foreign travelers are 5841090
and 1058840 respectively (Ministry Of Tourism, 2008) in Kolkata.
Projected demand of room in Kolkata is 35887 by year 2015 under all categories of
hotels. Which can be further divided in different category like luxury hotel (8218 rooms),
Budget class hotel (14028 rooms), Classified hotels (22246 rooms) and others (13643
rooms) (Ministry Of Tourism, 2008).
By year 2015, expected number domestic travelers and foreign travelers are 12073871
and 2339365 respectively (Ministry Of Tourism, 2008) in Kolkata.
A major reason for the growing demand for hotel rooms is the underlying boom in the
economy, particularly the growth in the IT and ITES industries. The overall growth
outlook appears buoyant and much of this growth will be driven by the BPO explosion,
IT, Telecom and energy sectors (Tuteja, 2009)
Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


In Kolkata some of the project has been withdrawn like Marriot Courtyard Hotels to open
new hotel by 2009 (256 rooms), Intercontinental Hotels to open new hotel by 2008 (264
rooms), Hilton Group to open new hotel (2106 rooms), Bengal Ambuja to open new
hotel by 2008 (140 rooms) (Ministry Of Tourism, 2008). Also several other company
could not come here because of political environment like Tata Nano and Infosys shifted
from west Bengal. Now it can be expected from government to make an business
friendly environment to attract more hospitality company to meet hotel demands

Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


5. Recommendation
Positioning:
Convenient location is an important attribute which is a point-of-differentiation for the
hotels in Kolkata. Therefore the new entrants should search for location in the
vicinity of both the dynamism of the business area and the hustle of the city. The
existing hotels which are not at convenient locations should provide full time free-of-
cost transportation facilities which could bridge the gap between the hotel and
various locations of the city.
Existing hotels should improve their service quality, food & beverage, and brand
name to capture more market share. They should also continuously upgrade
themselves to overcome the threat of latest technology from the new entrants.
Customer Satisfaction:
Hotelier should emphasize on improving room and restaurants services to retain
existing and attract new customers. Since hoteliers are not able to meet guests
expectations in the two areas mentioned above. Hoteliers should understand order
taking, delivery time and preparation time are most dominated complaint area which
should be improved for both room and restaurant services.
Hotelier should also think of minimizing their expenditure in some areas which
does not add values for customer satisfaction .It was found in some cases the
hoteliers overestimated customers expectations which actually erodes profitability of the
hotels (Figure 5, Figure 6, Table 6 Table 7). Those areas are Efficient check in,
Efficient check out, Concierge, Room service and Dry Cleaning & Laundry where
Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


customer satisfaction will not decrease even by minimizing some degree of service
quality.
Strategies:
Demand for rooms in Kolkata is far above the supply level and hence possibility of new
entrants is very high in the coming years. Since all the premium brands of hotel industry
provide almost similar services so the major point-of-difference will be the price factor.
Therefore, Hoteliers will have to adopt better pricing strategy in near future.
Affordability should be induced by detaching few facilities from the original package.
With more number of hotels being lined up in the city, HR executives of existing
hotels should gear up to retain skilled labor. Since, during survey it was found that
huge numbers of hotel management students are switching their stream in mid way,
because of the notion that other fields are more attractive for them. Hotelier should be
also ready for the threat of the guest houses which is being developed by
different organizations (like Wipro has already developed Star categories of guest
houses in different cities).

Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


6. Conclusion
This study focused on present and future marketing strategies and demand-supply gap
of luxury hotels in Kolkata, India. Another aspect of the project was to find out the
various gaps between guests expectations Vis--vis hotelier perception about the
same.
A survey has been conducted on hoteliers, guests and IT industry personnel to collect
the data. Data has been interpreted by perceptual map, gap analysis and FMEA
(Failure mode and effects analysis).
It was found that most of the customers perceived ITC, The sonar as the best hotel in
the city (Kolkata, India). This study also revealed that there is a huge gap in customer
expectation and hotelier perception regarding several parameters. Room services and
restaurants are most dominating parameters from which majority of the complaints
arises in a hotel. This study also revealed the emergence of several potential threats to
the hotel industry which includes service apartment and guest houses.
During interview it is found that several hoteliers were not happy to share their
strategies for this interview.
This article will contribute for existing hoteliers to improve their marketing strategies. On
the other hand this will facilitate the new entrants to develop proper strategies against
different present and probable threats.


Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


Annexure I: About ITC Ltd.

ITC is one of India's foremost private sector companies in India. It has a diversified
presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-
Business, Branded Apparel, Packaged Foods & Confectionery, Greeting Cards and
other FMCG products. While ITC is an outstanding market leader in its traditional
businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it is rapidly
gaining market share even in its nascent businesses of Branded Apparel, Greeting
Cards and Packaged Foods & Confectionery.
ITC's diversified status originates from its corporate strategy aimed at creating multiple
drivers of growth anchored on its time-tested core competencies: unmatched
distribution reach, superior brand-building capabilities, effective supply chain
management and acknowledged service skills. Over time, the strategic forays into new
businesses are expected to garner a significant share of the emerging high-growth
markets in India.
ITC's Agri-Business is one of India's largest exporters of agricultural products. ITC is
one of the country's biggest foreign exchange earners (US $ 2 billion in the last
decade). The Company's 'e-Choupal' initiative is enabling Indian agriculture significantly
enhance its competitiveness by empowering Indian farmers through the power of the
Internet. ITC employs over 15,000 people at more than 60 locations across India. ITC is
ranked among India's most valuable companies by the 'Business Today' magazine. ITC
continuously endeavors to enhance its wealth generating capabilities in a global
environment to consistently reward more than 137916 shareholders, fulfill the
Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


aspirations of its stakeholders and meet societal expectations. This over-arching vision
of the company is expressively captured in its corporate positioning statement:
"Enduring Value. For the nation. For the Shareholder."
ITC Limited: Mission

ITC Limited: Vision


Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


Annexure II: About ITC WelcomGroup
ITC Limited entered the hotel business on October 18, 1975, with the opening of a hotel
in Chennai, which was rechristened Hotel Chola. ITC hotels currently own and operate
100 hotels in 75 destinations. Its restaurants Bukhara , Peshawari, Dakshin, DumPukht
and Kebabs & Kurries are well known cuisine brands today.
ITC-Welcomgroup has one of the most extensive art collections in India. A museum of
their collection is being planned in Kolkata.
The group today operates under several distinct brands:
ITC - Luxury Collection Hotels
WelcomHotel Sheraton Hotels
Fortune Hotels, which has 54 hotels with 4446 rooms in 41 cities across India.
WelcomHeritage Hotels
List of ITC Hotels by Brand

ITC Hotel Luxury Collection WelcomHotel / Sheraton properties
ITC Maurya, New Delhi Sheraton Chola, Chennai
ITC Mughal, Agra Sheraton Park Hotel & Towers, Chennai
ITC Maratha, Mumbai Sheraton Rajputana, Jaipur
ITC Grand Central, Mumbai Sheraton New Delhi, New Delhi
ITC Sonar, Kolkata WelcomHotel Rama International, Aurangabad
ITC Kakatiya, Hyderabad WelcomHotel Vadodara, Vadodara
ITC Windsor, Bangalore
ITC Royal gardenia, Bangalore

Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


List of Fortune Hotels:

Fortune Global Select Gurgaon Fortune Park Galaxy Vapi
Fortune Select Palms Chennai Fortune Murali Park Vijaywada
Fortune Select Trinity Bangalore Fortune Park Klassik Ludhiana
Fortune Select Exotica Navi Mumbai Fortune Pandiyan Hotel Madhurai
Fortune Select Manohar Hyderabad Fortune Park Panchwati Kolkata
Fortune Select JP Cosmos Bengaluru Fortune Fences Tirupati Tirupati
Fortune Park Bella Casa Jaipur Fortune Resort Bay Island Port Blair
Fortune Landmark Ahmedabad Fortune Resort Sullivan Court Ooty
Fortune Landmark Indore Fortune Chariot Resort Mahabalipuram
Fortune Park Centre Point Jamshedpur Fortune Resort Central Darjeeling
Fortune Hotel The South Park Trivandrum Fortune Inn Riviera Jammu
Fortune Park Calicut Calicut Fortune Inn Jukaso Pune
Fortune Inn Sree Kanya Vishakapatnam

THE ITC WELCOMGROUP MISSION
To be recognized as the premier professional organization providing the finest tourism,
hospitality and travel related consumer services in the country and thereby contributing
to the achievement of the following Corporate and National priorities
CORPORATE
Generating Adequate economic surpluses to meet the expectations of all
stakeholders
NATIONAL
Maximizing Foreign exchange earnings
Employment Generation
Development of Human Resources
SLOGAN: Nobody gives you India like we do

Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


Annexure III: About ITC ,The Sonar (Kolkata,India)

ITC Sonar, Kolkata, a part of the Luxury Collection, epitomizes the beauty of Bengal.
Spread over 16 acres of prime property makes Sonar the ultimate business getaway.
Exemplifying this term, this is a place that has all the trappings of a business hotel,
along with the feet-up-feel of a resort. While offering travelers every possible modern
convenience, it simultaneously gives them the opportunity to break away from the
monotony of work and savor the varied pleasures of life .Designed by awarded
Architects Kerry Hill of Singapore, The Sonar represents the Symphony of Earth and
Water of its 16 acres, over 4 acres comprise of water bodies, consisting of water lili es
and reflection pools. It is in route from the airport and a 10 minute drive from Sector V,
Salt Lake-silicon hub of Kolkata as well as the citys shopping, entertainment, cultural
and business districts.
An array of award-winning culinary experiences range from the northwest frontier to
traditional Indian delicacies, continental grills, and an Irish pub.
Amidst the ambience of seclusion and luxury lies Kaya Kalp-The Spa, offering a
delightful retreat from the pressures of the modern world. The architecture of its indoor
and outdoor pavilions, spread over 13000 sq. ft., draws on local inspiration to blend
harmoniously with the natural environment. It is the largest tropical hotel spa in
Kolkata. The fully-equipped Wellness Centre features a Jacuzzi, sauna, steam room,
state-of-the-art gym, as well as a unique outdoor swimming pool. In addition, it is
also home to a beauty parlour, a salon, and a yoga room.

Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


Eight meeting and conference rooms with state-of-the-art facilities including WI-FI and
outstanding services create an inspiring setting for grand international conferences, as
well as corporate and social events. Different restaurant at ITC sonar and their specialty
is explained below:-

Eden Pavilion: Eden Pavilion, the 24 -hour restaurant at ITC Sonar, Kolkata, offers a
delectable variety of buffet fare throughout the week, for lunch as well as dinner. The
spread has the flavor of our entire signature outlets packed into one. West View,
Gourmet Shop, Pan Asian (oriental), Dakshin, Dum Pukht, Peshawri and Maroush.
Peshawari:Serving authentic cuisine from the rugged North West Frontier (Indian
Barbeque), the restaurant recreates a rustic ambience where you tie on checked aprons
and are encouraged to eat with your fingers!

Dum Pukht: A celebration of the rich diversity of traditional Indian cuisines and the 200
year old culinary tradition of cooking food in sealed deghs. This Indian fine dine
restaurant with a show kitchen serves a mix of Awadhi, Luckhnawi and traditional Indian
cuisines.

Pan Asian: Pan Asian invites gourmands to a journey across the Pan Pacific belt. At
Pan Asian you can explore diverse culinary traditions: from the hearty fare of Mongolia
to the fiery taste of Malaysia, Korea, Indonesia and Thailand. And, the delicate flavours
of China and Japan. A food-lovers foray into the subtle flavours that have created
famous culinary traditions such asJapanese, Chinese, Thai, Korean and Mongolian.
Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata



West View Bar & Grill: A distinctive medley of "Western Bar cum Grill" offering a
cornucopia of choicest wines along with the finest Single Malts, Cognacs and Cigars.
The novel outlet seeks to be a culinary journey for the discerning dinner, complete with,
the interactive charcoal grill with a widest selection of imported meats, crepe suzettes
cooked right on your table.

Dublin: The new bar code. A distinctive pub cum Discotheque representing the Gaelic
Raj Irish Pub and the Indian Colonial era offering the widest and finest choice of wines
and spirits.


Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


Annexure IV: List of Company in Salt Lake

S
l
.
N
o
.

Name of the applicant for
land
Area
allotted
(acres)
Plot No of allotted
land
1 Systron Electronics (P) Ltd 0.2965 ( J-5)
2 Delta Electro Polymer (P) Ltd 0.2687 (J1-8)
3 Dhanashree Electronics (P) Ltd 1.0749 (X1-16)
4 Biptronics 0.2687 (J1-16)
5 Jain Link (P) Ltd 0.2965 (J-2)
6 Simoco Telecommunication (South
Asia) Ltd
4.2996 (X1-9,10,13,14)
7 Stesalit Infotect Ltd 0.5 (J1-1)
8 Metalogic Systems 0.2356 J1-1
9 Institute of Engineering &
Management
0.2525 (Y-12)
0.2514 (Y-11)
0.2514 (Y-24)
0.94 (D-1)
10 Pekon Electronics Ltd 0.269 J1-9
11 Eldyne Electronics Ltd 0.2687 J1-13
12 Electron Combine 0.2514 Y-15
13 RDH Technologies (P) Ltd 0.344 F-1
14 RPG Netcom Ltd 1.0773 X1-4
14A Webel Bhavan 2.67 B-2
15 Swamina International (P) Ltd 0.2514 Y-20
16 The Supreme Industries Ltd 1 X1-1
17 Bengal Intelligent Parks (P) Ltd 5.0637 A2,M2,N2
18 SAMEER 0.6232 L-2
19 Plasto Chem (P) Ltd 0.2965 J-1
20 Cimsys Research (I) Pvt Ltd 0.2514 Y-13
21 Globsyn Tehnologies Ltd 2.1498 X1-11,12
22 Siemens Ltd 7.8614 G
23 ECE Technologies India Ltd 0.2514 Y-4
24 Controlla Electrotech (P) Ltd 0.2521 Y-10
25 Tata Consultancy Services 3.5158 B-1,C
26 Superintendence Co. of India (P) Ltd 0.2514 Y-23
27 Bansal Electronics 0.2687 J1-2
Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


28 Filter Manufacturing Industries (P)
Ltd
0.4618 F-3
29 Exide Industries Ltd 0.4926 X-1
30 R.S. Software (I) Ltd 0.2687 J1-11
0.2687 J1-3
31 Chemicals & Laquer (Indra
Eloctronics)
0.2835 F-5
32 Quality Assurance Circle 2.1498 X1-5,6
33 Dynamic Digital technology (P) Ltd 0.2514 Y-3
34 Non Destructive Test Appliances (P)
Ltd
0.4033 F-2
35 Germinda (P) Ltd 1.0749 X1-15
36 Webel Sl Energy System Ltd. 1.06 N-1
37 Hamilton Research & Technology (P)
Ltd.
0.2514 Y-19
38 RDB Two Thousand Plus Ltd. 0.8377 K-1
39 Electronics Research & Development
Centre, Calcutta
1 E2-1
40 Ontrack Systems Ltd. 0.2514 Y-18
41 Megatherm Electronics (P) Ltd. 0.6232 L-1
42 Megatherm International 0.2211 A-3/2
43 Dishergarh Power Supply Company
Ltd
2.1498 X1-2,3
44 Kheria Industries (P) Ltd. 0.2687 J1-15
45 Gestetner (I) Ltd. (Ricoh India) 2 A1-1,2
46 Data Electronics (P) Ltd. 0.2304 Y-5
47 Asok Electronics 0.1816 Y-6
48 Sinter Keramos & Composites (P)
Ltd.
0.2514 Y-16
49 Limton Electro Optics (P) Ltd. 0.5159 F-4
50 PriceWaterhouseCoopers (P) Ltd 0.2514 Y-14
0.2514 Y-2
51 IBM Business Consultancy Services
(P) Ltd
1.0749 X1-7
52 West Bengal Fire Services 0.9118 K-2
53 Atlas Software Tech (I) Pvt.Ltd 0.5 A1-4
54 State Bank of India 0.2737 Part of X1-8
55 West Bengal Renewable Energy
Development Agency
0.2687 J1-10
56 Calcutta Investment Casting
Company (P) Ltd
0.0.2514 Y-1
Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


57 Ishaani Electronics (P) Ltd 0.2514 Y-22
58 The Institute of Electronics &
Telecommunication Engineers
0.2687 J1-7
59 Control Techniques India (P) Ltd. 0.4862 X-2
60 Delta PV (P) Ltd. 1 A1-3
61 Signotron (I) Pvt. Ltd. 0.2687 J1-6
62 Indo Japan Horologicals (P) Ltd 0.2687 J1-12
63 ARB Software India (P) Ltd. 0.2514 Y-7
64 Ceco Electronics (P) Ltd. 0.2687 J1-4
65 Oxford University Press 0.5 A1-5
66 Simca Management Co. (P) Ltd. 0.2965 J-6
67 Window Technologies Ltd. 0.2514 Y-9
68 Zoom Enterprises Ltd 0.7123 X1-8/3
69 EOAN Electro Devices Pvt. Ltd. 0.4 E2-2/2
70 BNK eSolutions Pvt. Ltd 1.12 E2-2/1
71 Software Conglomerate (P) Ltd. 0.2687 J1-14
72 Research Engineers (P) Ltd. 0.5084 E2-4,E2-5
73 Infinity Infotech Parks Ltd.
(Benchmark Project)
1.92 Part of A3
1 G-1
73A SDF Building 2.397 Part of A3
74 Caldyne Automatics (P) Ltd. 0.2514 Y-21
75 G.P. Tronics 0.2514 Y-17
76 Brainware Consultancy Services 0.2514 Y-8
77 Web Development Co. (P) Ltd 0.2965 J-3
78 Vishnu Webtech Pvt. Ltd 0.2965 J-4
79 Kariwala Industries Ltd. 0.2687 J1-5
80 Convergence Contact Center (P) Ltd 0.23 D-2/2
81 J.D.S. Technologies Pvt. Ltd. 0.23 D-2/1
82 Satyam Computer Services Ltd. 2.77 G-2
83 Development Consultancy Ltd 4.0268

Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


Annexure V: Questionnaire for Guest

Part A (About Customer Choice and Preferences)


1. How important do you think the following parameters, when you choose a particular hotel in any
city?

Factors 1
(Most Important)
2 3 4 5
(Least Important)
Efficient check In
Efficient check Out
Concierge
Room service
Dry Cleaning & Laundry
Choice of Cuisine
Size of Room and Bathrooms
Cleanness
Internet Connectivity
Business Centre & Conference
Facilities

Health club & Spa
Sports and Recreational
activity (Meditation, squash,
Golf etc.)

Distance from Airport
City proximity
Environment & Ambiance
Brand Loyalty
Value for Money


2. Have you ever shifted your star category? If Yes, Why?








3. What is the difference you perceive between a three star and five star hotels?




Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


Part B (Answer this question as per your experience)


4. Then how would you rate the hotels you have experienced:




Factors
ITC,The
Sonar
Taj Bangal Hyatt Regency Oberoi Grand
Convenient location
Service quality
Food and Beverage
Brand
Technological
advancement

Warmth and courtesy
Safety & Security
Value for money
Other facilities like spa
and business centre



Part C (Personal Details)

5. What is your age (in years)?

< 20 20 30 30 40 40 60 > 60


6. What is the average annual income of your family (in Rs.)?

< 2.4L 2.4L-4.8L 4.8L-7.0L 7.0L-12L

>12 L

7. Gender

Male Female

8. How frequent business traveler you are (Number of Time you visit as business traveler in a year)
_______


9. How frequent tourist you are (Number of Time you visit as tourist in a year) _______

For very good = 1, good=2, neither good nor bad=3, bad=4, Very bad=5
Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


Annexure VI: Questionnaire for Hotelier

Part A (General Questions)


1. How do you see as Infrastructural development in Kolkata? How do you think that will impact
Hotel industry in city? (Demand Supply Gap)




2. To whom do you consider your competitor?



3. How do you see these hotels compare to your hotel.

ITC , The Sonar


Taj Bangal



Oberoi Grand



Hyatt Regency



The Park



4. Strategies for F & B (Bar, Restaurant, Room services, banquette and Night club).






5. When several new players will be in the market then what will be modification in your
strategies?


Sl. No.
Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


6. Target Customer
a. Age group




b. Income group




c. Free individual traveler, Tourist from travel agency or Business traveler





d. Any particular industry sector




7. How do you perceive the effect of new entrance on your hotel? How will you strategies yourself.
a. Effect of 3 star and 4 Star (Low Cost Hotel)




b. Effect of 5 star (Luxury class)




8. How do you think Environmental factor affected your hotel like

a. Global Recession

b. Taj Attack

c. Swine Flue

9. What will be Challenges for tomorrows hotel industry?

Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


Part B (To understand Guest expectation from Hoteliers Frame of Reference)


1. Name of Hotel :


2. Name of Person :


3. Designation of Person :


4. Email ID


5. How important do you think the following parameters when Guest chooses your hotel.


Factors 1
(Most Important)
2 3 4 5
(Least Important)
Efficient check In
Efficient check Out
Concierge
Room service
Dry Cleaning & Laundry
Choice of Cuisine
Size of Room and Bathrooms
Cleanness
Internet Connectivity
Business Centre & Conference
Facilities

Health club & Spa
Sports and Recreational
activity (Meditation, squash,
Golf etc.)

Distance from Airport
City proximity
Environment & Ambiance
Brand Loyalty
Value for Money












Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


Annexure VII: Questionnaire for IT Industry

Part A (General Questions)

1. Name of Organization

2. Address


3. Name and Designation of Person

4. From when are you operating /expected to operate



5. What is the frequency of seminar or conference takes place in a year

6. What is the number of employee in your organization(In Kolkata Office)

7. How many number of room required for your delegates in a year

8. Where do you place the seminar or conferences





9. Which hotel do you choose when your employee fly in Kolkata





10. Reason for choosing specific hotel

Price Location Service Amenities


Part B (About your choice)

1. How do you book hotel for a particular employee.


















Your organization have contract
with particular hotel
Employee selects their
choice of hotel



Guest House
Any other, Please specify


Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


2. How important do you think the following parameters are in choosing a particular hotel?

Factors 1
(Most Important)
2 3 4 5
(Least Important)
Efficient check In
Efficient check Out
Concierge
Room service
Dry Cleaning & Laundry
Choice of Cuisine
Size of Room and Bathrooms
Cleanness
Internet Connectivity
Business Centre & Conference
Facilities

Health club & Spa
Sports and Recreational
activity (Meditation, squash,
Golf etc.)

Distance from Airport
City proximity
Environment & Ambiance
Brand Loyalty
Value for Money


3. How would you rate the hotel you have experienced:



Factors
ITC,The
Sonar
Taj
Bangal
Hyatt
Regency
Oberoi Grand The Park
Convenient location
Service quality
Food and Beverage
Brand
Technological advancement
Warmness and courteous
Safety & Security
Value for money
Other facilities like spa and
business centre



For very good = 1, good=2, neither good nor bad=3, bad=4, Very bad=5
Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


Annexure VIII: Calculation for Area for Perceptual Map

Perceptual map for each hotel is divided by nine Triangles by different parameters. To
find out the complete area, first we need to find out the area of each triangle of
particular hotel and sum up those areas
Les us calculate the area of Triangle OAB (i.e. for ITC, The Sonar )

Angle = = 40
O



Figure 8 : Area Calculation for Perceptual Map

Now, if area for ITC Sonar will be calculated then distance of OA and OB will be known
by Table 4.For ITC Sonar, OA = 1.89unit and OB = 1.79 unit. So the Side AB will be
calculated as below:


360
O

9
Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


AB = = 1.55 unit
After knowing the all three sides by heros formula


Where, S =

So, S = = 2.52
Area = = 1.26 unit
2


Now, similarly area for all nine triangles needs to be calculated for one particular hotel
and add all nine areas to find out total area inside a particular hotel. Similarly it need to
be done for other hotel also. Area for all hotel is shown in Table 5 : Area under the
curve for a Perceptual Map
a + b + c
2
1.89 + 1.79+1.55
2
Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


Bibliography:

HVS. (2007). HOTELS IN INDIA - TRENDS & OPPORTUNITIES. 6.
Bezbaruah, M. (2009, October). Waiting for the Tide to Turn...
Blum, S. C. (1996). Organizational trend analysis of the hospitality industry: preparing for change.
Emeraldinsight.
(2004). In D. Bowie, & B. Francis, Hospitality marketing: an introduction (First ed., Vol. 1, p. 106). Elsevier
Butterworth-Heinemann.
BusinessDirectory.com. (n.d.). Hotel Defination. Retrieved 4 12, 2010, from Hotel Defination:
http://www.businessdictionary.com/definition/hotel.html
Central Statistical Organization,India. (n.d.). Central Statistical Organization,India. Retrieved 4 18, 2010,
from Central Statistical Organization,India: http://www.mospi.nic.in/cso.htm
Centre for Monitoring Indian Economy. (2010, April). Hotel & Resturent Services. Industry : Market Size
and Share , p. 389.
DATAMONITOR. (2009). Hotel and Motel in Asia Pacific.
Ginger Hotel,A Tata Enterprise. (n.d.). Ginger Hotel. Retrieved March 2010, 2010, from
http://www.gingerhotels.com
Government of India. (n.d.). Consumer Price Index 2009. Retrieved May 12, 2010, from Consumer Price
Index 2009: http://www.mospi.nic.in/stat_act_t2.htm
Government Of India. (n.d.). INDEX OF INDUSTRIAL PRODUCTION BY SECTORS: WEST BENGAL. Retrieved
5 2010, 12, from http://mospi.nic.in/state_iip_wb.htm
HVS. (2009). Trend of Indian Hospitality Industry. 45.
Incredible India. (n.d.). Retrieved March 6, 2010, from Incredible India:
http://www.incredibleindia.org/index.html
ITC WelcomGroup. (n.d.). ITC WelcomGroup. Retrieved March 16, 2010, from Our Brand: 5.
http://www.itcwelcomgroup.in/OurBrands/OurBrandsITCHotel-LuxuryCollection.aspx
(2009). Crafting the Brand Positioning. In P. Kotler, L. k. Kevin, A. Koshy, & J. Mithileshwar, Marketing
Managment (Vol. 13, p. 282). Pearson Education.
Ministry Of Tourism. (2008). Assessment of requirement of Hotel Room / Accommodation in Metro Cities
and 50 major tourist cities in India.
MINISTRY OF TOURISM. (2010). Guidelines for Classification of Hotels.
Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


Parasuraman, A., Zeithaml, V. A., & Bery, L. L. (1988). SERVQUAL: A Multiple Item Scale for Measuring
consumer perceptions of service quality.Journal of Retailing. I.
Porter, M. E. (2008). The Five competitive forces that Shape strategies. HBR.
Tourism Department of India. (n.d.). Fedration Of Hotel and Restaurent autority of India. Retrieved
March 12, 2010, from FHRAI: http://www.fhrai.com
Tourism department of India. (n.d.). Tourism department of India. Retrieved March 6, 2010, from
Tourism department of India: http://www.tourism.gov.in
Tuteja, A. (2009). CURRENT TRENDS IN MANAGEMENT:The Hotel In India. Symbiosis Institute of
Management Studies , Pune, Pune.
Wikipedia. (n.d.). Retrieved May 04, 2010, from Wikipedia-Esplanade, Kolkata:
http://en.wikipedia.org/wiki/Esplanade,_Kolkata
Wikipedia. (n.d.). Retrieved March 11, 2010, from Wikipedia-Giner Hotel:
http://en.wikipedia.org/wiki/ginger_hotels
World Trade Organization. (2002). Estimation of Tourists : Asia pacific.



Supply Creates Its Own Demand: A Study of Hotel Industry in Kolkata


Glossary
Average Room Rate (ARR): ARR Also referred to as average daily rate (ADR), it is the total of
room revenues for a particular period divided by the number of rooms occupied for the same
period. Often used as an economic indicator in the hotel industry.
RevPAR: RevPAR, in hotel industry, refers to revenue (generated by rooms sales) per available
room (number of rooms available for sale in the given period). It is an important indicator of
financial performance of a hotel.
Occupancy Rate: A percentage indicating the number of bed nights sold (compared to number
available) in a hotel, resort, motel or destination.
Luxury hotel: In this report we have used Luxury hotel for five star deluxe, five star and four star
hotels in India.
Low Cost Hotels: The term low cost hotels are used for star category of hotels which is lower
than four stars.
FHRAI: Federation of Hotel and Restaurant association of India.
FIT (Free Individual traveler): Individual travel in which a tour operator has previously arranged
blocks of rooms at various destinations in advance for use by individual travelers. These
travelers travel independently, not in a group, usually by rental car or public transportation
GIT (Groups Independent Travel) - Group travel in which individuals purchase a group package
in which they will travel with others along a pre-set itinerary.
Leisure Travel - Travel for recreational, educational, sightseeing, relaxing and other experiential
purposes.
Market Share - The percentage of business within a market category.
Market Volume - The total number of travelers within a market category.

Você também pode gostar