Hotel Industry in India

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ales and D
Member
aromik Das
onika Dey
Alok Kumar
aurav Tibrew
Arif Ali Biswa
handrima M
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aradindu Mo
Amit Agarwa
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Distributio
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Mukherjee
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Batch
Marketing
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Specialis

ct Report
oup 4
Hotels
iness, Kol
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sation
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itality Inddustry

Sheldon Group Of Hotels

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Contents:
1. Vision
2. Mission
3. Values & Principles
4. Goal
5. Corporate Strategy
6. Operations Strategy
7. Business Operating Model
8. Product
9. Customer Segment
10. Marketing Strategy
11. Sales Strategy
12. Planning of hotel Industry
13. Analysis of customer segment and products
14. Customer Buying behaviour
15. Market potential
16. Hotel dynamics
17. Power of suppliers
18. Power of customers
19. Demanding Customer
20. Competitive marketplace
21. Competitor Analysis
21.1 TAJ
21.2 GRAND
21.3 ITC
22. Market Demand
23. Sales Potential
24. Sales forecasting
25. Sales Channels
26. Sales Target
27. Sales organisation to support different sales channels
28. Compensation


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29. Motivation for all the sales channels
30. Expense plan

1. Vision:
To fill the Earth with the light and warmth of hospitality .
2. Mission:
To be the pre‐eminent global hospitality company – the first choice of guests, team
members and owners alike.
3. Values & principles:
1. Hospitality – we are passionate about delivering exceptional guests experiences.
2. Integrity – we do the right thing all the time.
3. Leadership – we are the leaders in our industry and in our community.
4. Team Work – we are team players in everything we do.
5. Ownership – we are the owners of our actions and decision.
6. Now – we operate with the sense of urgency and discipline.
4. Goal:
1. Build relationship with investors secure hotel management contracts and
successfully manage the hotel investment underpinning the asset values.
2. Achieve levels of profit sufficient to provide for re‐investment and suitable returns to
share holders and investors.
3. Adopt best commercial practice and ethical standards in dealing with client,
suppliers of goods and services and other contracts.
4. Within each hotel operation provide complete satisfaction to clients in terms of
facility and services standards, food and beverage and related products at a fair
price.
5. To start up with new hotels within the next 5 years.
5. Corporate Strategy
Parameters need to be looked before starting with the business in any region.


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• For setting up Hotel the primary point is location.
• Tie ups with websites like makemytrip.com, travelguru.com, etc.
• Tie ups with travel consultants like SOTC, COX & KINGS, etc.
• Tie ups with different MNC’s not only for corporate stay in rooms but also to rent
conference hall during conference and seminar.
• Tie ups with different event organisers.
• Focusing on customer feedbacks as being in the Service industry customer
satisfaction is the most vital point.
• Tie ups with insurance company.
6. OPERATIONS STRATEGY:
How should I start with my business?
1. Look at the industry background before starting the project
• The hotel industry in India is at $17 billion (Rs 87,601 crore) currently.
• Thirty per cent of the sector is organised.
• An additional 20 international brands are expected to come to India in the
next two years.
• About $12 billion (Rs 61,836 crore) is the expected investment in this sector
by 2011.
• Within the sector that is organised, the 5‐star hotel segment contributes 58%
2. Choose a proper location (urban/rural)  for setting up the hotel
3. Have a good hold on the strategy part(marketing/operation)
4. The whole operation depends on the interaction between the location and strategy
to get the performance. The hotel performance is based on various parameters.
• Cost of rooms
• Quality of food and service
• Multi‐cuisine restaurants  to attract foreign tourists
• Proper value added services
• Proper ambiance
• Proper location
• Transport facility of customers(tourists ,corporate clients) from airport
,railway station to hotel and back
5. For smoothening of the project and to run the business successfully it needs to be
backed by Technological support. So without hesitation the hotel invest for
technological up gradation.
LOCATION


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PERFORMANCE

STRATEGY
TECHNOLOGY INVESTMENT
7. BUSINESS OPERATING MODEL
5 building blocks of every business model
‐What’s your revenue model?
‐Your gross margin model?
‐Your operating model?
‐Your working capital model?
‐And your investment model
For hotels need to focus on operating model
Need to follow some basics for the operating model
• Find some analogs and antilogs
• Identify your most crucial leaps of faith and some hypothesis to examine them
• Build a dashboard to guide your journey
• Get out there and learn
8. PRODUCTS:
• ROOM(DELUX,LUXURY,PREMIER)
• SUITE(DELUX,LUXURY)
• RESTAURANTS(INDIAN,CHINESE,CONTINENTAL)
• SPA
• CONFERENCE HALL
9. COSTOMER SEGMENT:
• CORPORATE CLIENT
• BUISNESSMAN
• TOURIST(INDIAN)
• TOURIST(FOREIGNER)
• HONEYMOON COUPLES
• SPORTS TEAM,CELEBRITYS


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• LOCAL RESIDENTS

10. MARKETING STRATEGY
OBJECTIVE:
• To increase the awareness of the business
• To increase the customer base
• To identify additional opportunities of promotion

Open Promotion:‐ The next time the guest stay on the weekend they get 20% off their
rooms.
Closed promotion:‐The guest can get free breakfast or dinner for a certain amount.
Produce new product and services like boutique.
Reward a free night stay through lucky draw contest.
How to get the business noticed
• Advertising: Sending out email to future, present and past guests. Keeping current
customer list.
• Sending mails with coupons
• Personalise letters to privilege customers
• Handing out brochures to business corporate & MNCs.

11. SALES STRATEGY
To increase the sales the company needs to adopt some strategies which includes not only
promotion but also innovation in its products.
• Internet Advertisement cost is least compared to other modes of advertisement and
is the most effective mode of marketing now a days.
• Television Advertisement cost comes next as it approaches a huge mass of customer.
• Print Advertisement


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• Radio Advertisement as radio now days are also very effective.

Hotel sales department: The hotel sales department is Responsible for selling the entire
hotel .Product inclusive of rooms, food, beverage, catering and meetings rooms and all
other services of hotel.

• Group rooms: Group rooms are sold simultaneously in blocks of a minimum of ten
rooms or more (e.g. Group tours, domestic and international groups, association,
convention and Corporate groups)

• Corporate traveller: An individual or group of like travellers which sole purpose is to
travel on business and all travel is typically paid by the Company they represent.

• Leisure traveller: An individual or group that primary purpose to travel is non
business and for leisure, recreation or other.

Depending on all the parameters sales force need to be choose accordingly. Also
there are restaurants and value added services for which we need sales force.
Keeping in mind we also need receptionist and room service boys according to how
many rooms are there. For restaurants we need not only service boy but also chef
for different varieties of food. A lot of other employees are required for different
departments like finance, marketing, logistics, security, operations ,back office and
so on.
Role of Sales coordinator: Assists the director of sales and sales manager in sales operations
including reserving meetings and conferences, coordinating wedding groups, general
administrative functions. This position requires strong communication skills, both written
and verbal.

Direct sales: Face to face presentation demonstration and sale of products or services, by
staff hired to specifically present products and services by a company.

Sales increased with the help of Social media:

Primarily Internet or cellular phone based applications and tools to share information
among people. Social media includes popular networking websites, like Facebook and
Twitter; as well as bookmarking sites. It involves blogging and Forums and any aspect of an
interactive presence to engage in conversations with one another, often as a discussion over
a particular Blog Post, News Article, or Event.


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12. PLANNING OF HOTEL INDUSTRY:
Planning team
Objectives of Planning Team
Parameters for building a Hotel
• Water supply
• Electricity
• Transport
• Site Location
• Greenery
• Architects
• Availability of technology
Approval of Proposal/trust/committee
Finding details of the parameter and to take the necessary permissions
13. ANALYSIS OF CUSTOMER SEGMENT/PRODUCTS:
PRODUCTS/C
USTOMER
SEGMNET
ROOM SUITE RESTAURANTS SPA CONFER
ENCE
HALL
DEL
UXE
LUXU
RY
PREM
IER
DEL
UXE
LUXU
RY
INDI
AN
CHIN
ESE
CONTINE
NTAL
CORPORATE
CLIENT
Y Y y Y y
BUISNESSMA
N
Y y y y Y y Y y y
TOURIST(INDI
AN)
Y Y y
TOURIST(FOR
EIGNER)
Y Y Y Y Y Y Y Y Y
HONEYMOON
COUPLES
Y Y Y Y Y Y
SPORTS
TEAM,CELEBRI
TYS
Y Y Y Y Y Y
LOCAL
RESIDENTS
Y Y Y Y


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14. Customer Buying Behaviour
To increase sales the Consumer Buying Behaviour of the different customer segments is
done.
Customer buying behaviour is classified under 3 different categories
• Regular: ‐ These are those customers who regularly visit to the hotels like in
every one or two months. Like corporate clients. Special offers and discounts
are given to attract the segment and also tie ups with many MNCs.
• Occasional: ‐ These are those customers who comes in a blue moon like
honeymoon couples. Special packages which include all facilities and special
room service are provided to these couples. Specially Leisure traveller.
• Some segment of consumers doesn’t visit the hotel due to some specific
reason. Mainly the lower middle class people who cannot afford the rates.
15. Market potential:‐
India has declared the hotel industry as a “High Priority Industry” and various
incentives/concessions have been extended by the government.
However, India is one of the places where the economic system did not fail. One of the
sectors growing in a sustainable manner is the hotel industry in India. The figures show an
annual growth rate in the number of foreign tourists arrivals in India to be 5.6 percent and a
growth rate of 6.9 percent for domestic tourists’ visits. This shows equilibrium and the
existence of growing domestic travel market that stabilizes the industry against threats from
the foreign visitors.
The Indian government launched the “Incredible India” campaign in 2002 to promote
tourism. It adopted tourism and foreign investments as high priority, regulated tax
exemptions, and announced tax reductions to encourage investments.
India’s rich cultural heritage is one of the strengths that the Indian Hotel industry has,
coupled with the opportunity of higher interest subsidy by the government for hotel
projects that are set up in special areas and specified destinations. This reduces the regional
concentration in the hotel industry in India and now, the industry has started taking
advantage of this incredible cultural heritage, which was never exploited fully before. Influx
of MNCs in the country after liberalization has led to a flurry of industrial activity in the
country and thus an increased demand for the hotel. As the Indian economy is still growing,
it still needs investments in the hotels.


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Introduction of the Capital Subsidy scheme for the Heritage class of hotels reflects the old
glory and grandeur of India. Most of the havelis and mansions of ancient times have been
turned into Heritage Hotels, which provide the tourists with an opportunity to experience
royal pleasure in a traditional ambience. Most of the Heritage Hotels in India are
concentrated in the princely states of Rajasthan, Delhi, and Madhya Pradesh. You also have
the “Palace on Wheels,” which is rated as one of the top ten luxury train journeys in the
world. It offers you a heart‐rending trip to the splendid forts and palaces of Rajasthan in just
seven days. On board the Palace on Wheels, you can relish the lifestyles of the Kings of yore,
while listening to the silent tales of glory and valour told by the majestic forts and splendid
palaces of Rajasthan. They also provide Palace on wheels tours to various destinations.
Coming back to Hotels, the present occupancy rate is 70 percent, which is higher than that
of 50 percent, five years ago. Revenue per available room is $1.38 per room per night, with
a growth rate of 19 percent in five years. The budget and mid‐market segment have
experienced major growth. Historically, the mid‐market has been run by independent
owners with chains forming only 20 percent of the nearly 30,000 rooms’ inventory. These
facts demonstrate that there is no looking back for the Indian Hotel industry and they
marching towards expected growth.
Building middle class hotels that are more functional, i.e., they offer required
accommodation in times of need is more sustainable than building luxury hotels or low
budget hotels. This is keeping in mind the future and also the social, economic
environmental factors. They do not produce as much wastage as a luxury hotel, do not have
a large footprint and because of this, they do not cause much damage to the landscape.
They offer better conditions than low budget hotels, which sometimes offer very poor
staying conditions.
16. Hotel dynamics:‐
1) Hotel Dynamics represents the hospitality industry's top experts in asset
management, financing, owner's representation and construction management.
Hotel Dynamics will strive to maximize the value of your asset and capital through
extensive due diligence for acquisition, rebranding and repositioning, property
renovation, new construction and asset management.

2) Our hotel Team will bring unmatched expertise to all phases of the asset's lifecycle
for a wide array of clients. The process starts with conducting due diligence that will
enable asset owners to make the right acquisition or development decisions. We
then transition our skills to managing the asset and formulating a plan to reposition
the asset for long‐term profitability. In the event that the repositioning decision
includes any form of construction or brand PIP, we can seamlessly plan and
implement the construction and renovations.

3) Our Hotel Dynamics will deliver quantifiable results to its clients. With asset
valuations being driven down, bid‐ask spreads remaining wide and general


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uncertainty in the market place, we will rebuild asset value with long‐term strategies
that creatively focus on the fundamentals.

17. Power of suppliers:‐
While this is not a substantial threat in the hotel industry it can have impact especially in the
area of labour. With an aging population, there are fewer people to fill service industry jobs
and hotels which can attract excellent staff have a greater chance of providing excellent and
exceptional experiences to their clientele. As part of their internet strategy all hotel chains
should have a section on recruitment for employment.

The other supplies that are needed by hotels are also easier to attain through internet
channels whether originated by the supplier or by the hotel chain. With their products in
greater demand by greater numbers of hoteliers suppliers gain some measure of power by
competition for their offerings.
18. Power of customer:‐
Business persons choosing a hotel for business travel are savvy consumers and they are
comfortable with computer technology. It has become very simple for them to go online
and book a hotel. They no longer need travel agents, corporate travel consultants or middle
men of any kind to determine where they will stay.
Tourists are more and more capable of using the internet; they are more often bonding
together in a novel way. They are finding internet businesses like cheaphotels.com which
will negotiate or discover bargains for them. Both of these processes shift the bargaining
power to the end user and these same freedoms reduce the cost of switching so that loyalty
is a thing of the past unless a particular hotel uses its one time opportunity when a
customer stays at the hotel to deeply impress the customer with a unique and valuable
differentiator.

19. Demanding consumer:‐
Consumer demand for hotel information, rates and availability has reached an all time high
level. We expect demand and usage to continue to grow. Consumer access to hotel
information and reservations is a 24/7 reality for all hotels. Detailed hotel information,
specials, photo galleries and mapping are all included in mobile solutions. We will built and
maintain all of the software needed for mobile use. That means no third‐party outsourcing
which keeps the hotel cost low."
In addition to mobile website design and hosting services, Open Hospitality offers innovative
approaches to hotel reservation distribution including partnerships with Trip Advisor and
the TRUE direct booking travel agent program.


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20. Competitive marketplace:‐
INDIA is a market with a large number of buyers and a large number of sellers, such that no
single buyer or seller is able to influence the price or any other aspect of the market. This is
very much true in hospitality industry. Here no sellers and buyers have direct impact on
price. When potential customers can learn about a hotel on line, the internet reduces the
differences among competitors. People tend to seek the best price for the best experience
and the tendency is to reduce price to be competitive. The internet covers wide
geographical areas so the market is widened increasing the number of competitors.
21. Competitor Analysis:
3 major competitors for setting up the hotel in KOLKATA are:
21.1. TAJ
21.2. GRAND
21.3. ITC
21.1. TAJ BENGAL, KOLKATA
Pricing:
o Deluxe room‐Rs 8500
o Luxury room‐Rs 9500
o Taj Club Room‐Rs 11500
o Junior suites‐Rs 13000
o Executive Suites‐RS 18500
o Grand Luxury Suites‐Rs 43000
o Presidential suite‐Rs 51000
These rates include:
• Transfer from airport to hotel
• Welcome drink on arrival
• Complementary breakfast
• Hot & Soft beverages during the day
• Daily evening cocktail
• Ironing of 2 pieces of laundry
• Gym
• Steam & sauna


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• Jaccuzi Facility
• Round the clock valet service
Fine dining (Restaurants):
1. The Hub
2. Sonargaon
3. Chinoserie
4. The Chambers
5. The Junction
6. The prominent Lounge
7. La patisserie & deli
8. Grill by the pool
9. Soule
SPA‐JIVA
Boutique:
TAJ KHAZANA
Taj Khazana is a luxury lifestyle boutique that showcases artefacts and collectables created
by master craftsmen of INDIA.
TAJ has an official website.
Other than that it is linked with expedia, agoda, yatra, makemytrip, tripadvisor, and many
more.

21.2 OBEROI GRAND HOTEL, KOLKATA
Pricing:
o Deluxe Room‐Rs 8500
o Luxury Room‐Rs 9000
o Premier Room‐Rs 11250
o Premier Room (with balcony)‐ Rs 12250
o Deluxe Suite‐Rs45000
o Luxury Suite‐Rs65000


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• Complimentary breakfast
• Gym, steam & sauna
Restaurants:
1. Baan Thai
2. Chowringhee Bar
3. La terraces
4. Wine and Dine
SPA‐The Oberoi SPA
21.3 ITC SONAR BANGLA, KOLKATA
Pricing:
Room pricing through internet (fully prepaid , non‐refundable if cancelled)
1. Executive club‐Rs 7125
2. The Towers‐Rs9025
3. ITC one‐Rs10925
If with spa:
The towers‐Rs10499
Welcome rate:
1. Executive club‐Rs7500
2. The Towers‐Rs9500
3. ITC one‐Rs11500
• Complementary breakfast
• Gym, steam & sauna


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Luxury Multicuisine Restaurants:
1. Pan Asian
2. Dum Pukht (Indian Restaurant)
3. West View (International Grill room)
4. Eden Pavilion (Indian & International Cuisine)
5. Peshwari (North West Frontier)
6. Gourmet Shop (Confectionary)
7. Bay of Bengal (Bengali cuisine)
SPA: KAYA KALP SPA
22. Market Demand:‐
At a time when the government is working ‘proactively’ to achieve the target of 1.1 crore
tourist footfalls every year in country, hospitality industry in India is largely showing way to
increased development in the mid‐market and budget space in the sector .
It is estimated that in year 2011, just 1 percent of the tourists were foreigners, rest all the
growth momentum was maintained by 80 crore domestic tourists. Hospitality experts say as
the domestic middle‐class will make the bulk of tourist population, more branded mid‐scale
and budget hotels will see brisk business.
“As it is estimated that the total number of travellers in India is set to hit 170 crore by the
year 2021. So, there is a need to increase the number of hotel rooms available from the
current 1.63 lakh, to over 3.4 lakh rooms,” he added. InterContinental Hotels Group — the
largest in the world by number of rooms — is planning to open 47 in India.
As per Federation of Hotels and Restaurants’ Association of India (FHRAI), Foreign Tourist
Arrivals (FTAs) during the period January‐March 2012 were 19.81 lakh with a growth of 9.5
percent.
A white paper released by global hospitality consulting and services firm HVS in
collaboration with World Travel & Tourism Council recently said India will need overall
investment of $25.5 billion for constructing 1.8 lakh additional hotel rooms over the next 10
years.
“A recent report refers that the fastest growing segments in the Indian hotel industry today
are the budget and mid‐segment hotels which is very good for the long term for the Indian
hotel industry. Since the domestic market is huge the highest demand also is for this
segment of hotels,” said Manav Thadani, chair, HVS, South Asia.
The current total supply of approximately 71,500 rooms in the country is significantly lower
than that for other countries. Therefore, even with the addition of 61,396 branded/quality
rooms across India in the next five years, we believe that India offers huge potential to
investors and operators across all segments.


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23. Sales Potential:
It is the best possible (or maximum) estimated sales of a given product or service for a
company in a given geographic area for a specific period of time. Sales potential is also
defined as the maximum share (or percentage) of market potential that is expected to be
achieved by a company.
For the hotel industry:
An annual growth rate in the number of foreign tourists arrivals in India to be 5.6 percent
and a growth rate of 6.9 percent for domestic tourist visits.
A growth rate of 19 percent in five years is speculated.
So considering the growth rate of 19% in Hotel industry the sales potential of Sheldon group
of Hotels can be fixed.
24. Sales forecasting:
With the sales forecasting done it will be easy for the company in many aspects:
• For setting up the Hotel
• Choosing a proper location
• Finance or raising cash for investment and operations as well as for profit planning
• Planning their purchases
• Human resource management for manpower planning
Sales forecast depends on 3 basic factors:
• Product level
• Time period
• Geographic area
Sales forecast also leads to the targeting of customer segments for individual product.
For all the various customer segments we have chosen the footfall is maximum for the
different restaurants so special attention must be provided to the restaurant segment.
The Luxury suite is preferred by 4 different customer segments for their stay so special
packages must be provide.
Different methods that should be carried on for the Sheldon Group of hotels:
• Moving Average for tracking corporate clients about their usage of Deluxe room
& Conference hall. It is of low cost & has good accuracy.


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• Sales force composite for the Branch office(separately for different Tier1 cities)
sales force.
• Survey of Buyer’s intention’s to be done for new products /services for
manufacturing the tie ups with the corporate clients.
• Econometric Analysis for the simulation of economy & accuracy of casual
relationships. By this analysis the sales forecast can be done.
• Executive Opinion is a very quick forecast & is less expensive. By this new
product development like ayurvedic spa, boutique can be done.
• Regression Analysis needs to be done for company sales forecast for the
upcoming years. It is very easily done & also has a good accuracy level with
minimum cost.
25. Sales Channels –
Direct‐ This is most important type of selling process because a person visits directly to the
hotel and book the room according to their requirement.
Global Distribution System (GDS) ‐ Global Distribution System (GDS) is a network operated
by a company that enables automated transactions between Vendors and booking agents in
order to provision travel related services to the end consumers. A GDS can link services,
rates and bookings consolidating products and services across all three travel sectors: i.e.
Airline reservations, Hotel reservations, Car rentals, and Activities.
GDS is different from a Computer Reservation System which is a reservation system used by
the respective vendors. Primary customers of GDS are travel agents (both online and office
based) to make reservation on various reservations systems run by the vendors. It is
important to note that GDS holds no inventory, the inventory is held on vendor’s
reservation system itself. A GDS system will have real‐time link to the vendor’s database. For
example, when a travel agency requests a reservation on the service of a particular airline,
the GDS system routes the request to the appropriate airline Computer Reservation System.
This enables a travel agent with a connection to a single GDS to choose and book various
flights, hotels, activities and associated services on all the vendors in the world who are part
of that GDS
Travel agents access one or more of these systems to search hotel listings and make
reservations. This is a commissionable model where the online player charges a commission
of around 8‐15% to the hotels after the stay of guest.

Internet Distribution System (IDS) – These are portals where people intending to travel can
make the hotel reservation himself. Often search engines like Yahoo Travel section, MSN etc
are powered by these IDSs to reach out to a maximum audience. Today internet plays
important role lots of people book their room online so we create our website and give
some other advertisement on other website.


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Booking centre‐ In all tier 1 cities of INDIA except Kolkata a booking centre is to be there to
help customers for booking rooms in advance or tapping the local travel agents to push
sales. The centres will be located in prime locations of Delhi, Mumbai, Bangalore, and
Chennai & Hyderabad.
Online Hotel reservations are a popular method for booking hotel rooms. Travellers can
book rooms on a computer by using online security to protect their privacy and financial
information and by using several online travel agents to compare prices and facilities at
different hotels.
Prior to the Internet, travellers could write, telephone the hotel directly, or use a travel
agent to make a reservation. Nowadays, online travel agents have pictures of hotels and
rooms, information on prices and deals, and even information on local resorts. Many also
allow reviews of the traveller to be recorded with the online travel agent.
Online hotel reservations are also helpful for making last minute travel arrangements.
Hotels may drop the price of a room if some rooms are still available. There are several
websites that specialize in searches for deals on rooms.


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26. Sales Targets ‐ We can give sale target to our agents and salespersons so they can
push to our hotels for that we give better incentive to our agents and salespersons. The
sales targets for each channel are different. The target for mainly the Booking Centre,
Direct, Online hotel reservations (via travel agent) vary from season. In Kolkata the peak
season is during Durga puja & also small special targets are given for holiday packages of
Holi, Christmas, 15th August (Independence Day), and so on.


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27. Sales Organisation to support different sales channels:
SERIAL
NO.
SALES
CHANNELS
HOW DOES
IT WORK
SALES SUPPORT
TO THE DIFFERENT
CHANNELS
KRA’S FOR THE
SALES SUPPORT
REPORT
TO
1 Direct Customer
comes
directly to
Hotel(24*7)
3 Shifts.
Per shift 3 sales
people.
To greet the
customer and
convince
customer with an
appropriate
package
All sales
people will
report to
the Hotel
Manager
daily after
completion
of shift.
2 GDS(Global
Distribution
System)
Vendors‐‐‐
Booking
agents
No personal sales
people
Travel agents
(online & office
based)

3 IDS(Internet
Distribution
System)
Customer
by himself
books
online
No salespeople but
company must
have technical
persons
The technical
persons must
update about the
schemes and
packages
Reports to
the Hotel
Operation
Manager
4 Online Hotel
Reservations
Via travel
agent
Single Salespeople
for each Tier 1
cities
Their main
objective is to tap
all the travel
agents and
convince them to
push their hotel.
Like SOTC, COX &
KINGS.
Reports to
the Sales
Manager
of the
Hotel with
their
report on a
weekly
basis.
5 Booking
centre
Opening
centres at
all Tier 1
Cities
except
Kolkata
1assistant sales
manager &
1salespeople for
each city .Total 10
salespeople.
Timing 10am‐6pm
Objective is to tie
up local travel
agents. Also help
customers for pre
booking. Tie up
with MNC’s for
corporate visits
and stay also.
Report to
the Hotel
Sales
manager
on a
regular
basis.


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28. Compensation:‐
In the beginning joining hotels, as a fresher can earn around 10k‐15k and it can go up to 50k
per month in this Industry. If the initial joining is at entry level the salary in hotel industry is
around 10‐15K per month and if you join as Management Trainee starting salary would be
around 20K and once the training is done you can work as managers with handsome
amount of salary. Even if you join as entry level, you have to start with basic salary and
within a year or so (according to the work performance) the employee may get promoted to
supervisory level with an increment in their salary. After gaining some experience, one gets
the managerial post where your salary can go up to Rs. 50k per month as per your
knowledge and experience in a particular field of hotel management.
The salaries in hotel industry in India basically depend on the size and type of sections one
gets in this Industry. There are some other health benefits, allowances apart for the basic
salary. Large corporate organizations give a good amount of medical benefits to their
employs. Experience makes more money and after having a long experience one can look
for a much higher salary so it keep on increasing from time to time.


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29. Motivation for all the sales channel:
Benefits are indirect pay or payment for “time not worked” such as health care, retirement
account, and insurance.
Financial incentives are defined as variable pay .Some examples of financial incentives are
pay for performance, bonuses, commissions, profit sharing and gain‐sharing .They generally
apply to managers. Hotels could reduce turnover if they gave incentive pay to non‐
managerial employees.

Communicate better on incentive programs.  Incentive plans for hourly workers. Incentives
increased production and reduced turnover.  Have better training.
Pay: Money or wages in exchange for work. It can be paid out hourly or an annual salary.


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30. EXPENSE PLAN:
For controlling the selling expenses, there are 4 types of expense plans:
1. The sales person pays all expenses
2. The company pays all expenses (also called unlimited payment plan)
3. The company partially pays expenses (or limited payment‐plan)
4. Combination plan
The Sheldon Group of hotels to maintain the expense plan of the sales force will follow the
unlimited payment plan.
The company reimburses salespeople all the legitimate business and travel costs they incur
while on company business. There is no limit on total expenses or on individual items.
However salespeople are required to submit itemised expenses to the company.
ADVANTAGE:
1. Good control over the sales person's activities.
2. There are no problems due to geographical differences in costs of travel or food.
3. Freedom to the salesperson from the psychological anxiety about the money spent on
travel or customer entertainment for making the sale.
4. Salesperson may effectively carryout non‐selling activities like obtaining market
information (checking competitor strategies).
DISADVANTAGE:
1. Allows salespeople to spend more than what is reasonable.
2. Allows them to make money by padding expenses.
So this is

Hotel Industry in India

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