. 5| 95. • High budget and enough money for business. Pricing and brand recall are two factors that affect customer choice. 999 at all locations, at all times during the year. • Provides the top players in the market with their market share, profitability, segments they focus which is required for business and competitor intelligence needs Essentially the philosophy of SmartBasics is to think of ‘intelligent’ facilities and services at ‘value’ pricing. 20 important things hoteliers should know to attract corporate guests and bookings. • ITC Welcome Group of Hotels /night)| Laundry| 50| 57. 1. Further, buyers are predisposed to perceive quality and value with brands they have had a prior reinforcing experience with (Herbig P. et al. • Economics Marketing Management: Analysis, Planning, Implementations, and Control, seventh ed. In particular, both in the mid-week and in the weekend date, last minute booking is characterized by a higher price differential between high star and low star hotels (Abrate G. et al. Customers are mostly in favour of customization and willing to pay extra for such value-add services. Also, the operating staff is minimal. 21. • Politics , 2006). International Journal of Contemporary Hospitality Management 6, 10–15. • Demographical situation becomes worse Effective revenue management strategies for hotels. 2) A proud/impressed employee so he may view the business trips as an added incentive of the job. 1 of 456 hotels in Madrid on TripAdvisor, outranking the city’s most luxurious hotels. As a hotel consulting firm, we focus on creating high performing hotels through unique hospitality experiences and delivering high quality and personal customer service. Journal of Hospitality Mgmt. Brand name is an important factor in attracting customers and attaining customer loyalty. What do we want to do? A stochastic EVA model to estimate prices that may yield minimum/maximum desired margins is also presented in the above citation. The generic strategy iii. Although customers seem satisfied with the prices and the services offered, there seems to be a certain level of dissatisfaction and they seem willing to spend more if more value added services are made available. KALYAN 11P162 AmbitionBox has 70 Ginger Hotels reviews submitted by Ginger Hotels employees. There was strong evidence that the online mode facilitated a higher RR(revenue per available room). Also, high star ratings are a quality signal supporting dynamic pricing and prices increase when fewer hotels with a similar star rating has availability (Abrate G. et al. Recommendations Introduction Ginger hotels are subsidiaries of the Indian Hotels Company Limited (IHCL). This will be driven by a deep commitment to service excellence as well as implementation of revenue and profit-driving initiatives. com (Groupon India) started offering Ginger hotel rooms as one of their daily discount offers, making Ginger hotel rooms available at rates 70% less than their standard rates. This strategy may require an overhaul of your normal marketing and sales approach. This incremented value was then proposed to the customer in a second survey where he was questioned on his willingness to subscribe to these services at the new incremented value. 4. Business travellers growing in number in India due to growing economy. Present in almost all tier 1 cities and quite a few tier 2 cities. 1/4. The Indian Hotels Company Limited (IHCL) and its subsidiaries, bring together a group of brands and businesses that offer a fusion of warm Indian hospitality and world-class service. Started in June 2004, Ginger Hotels is one of the largest hotels. com/money/2007/jul/24ginger. • Radisson hotels & Resorts The Taj Hotels brand consists of 90+ hotels and resorts in India and around the world as a part of its marketing mix product strategy. This would also lend support to the hypothesis that value add services fall short of customer expectations in economy segment. Thus, Ginger needn’t divert large resources at satisfying their customer delight need as there is no demand for that yet. J. Hospitality Management (2011), doi:10. • Too loose supervision Some other chains like Holiday Inn Express are in the pipeline towards setting up chain of economic hotels and Ginger’s performance could be better judged then. Instead of telling guests what they will experience when … After having largely tapped the B2B market, Ginger Hotels now plans to shift its focus to the B2C market and directly tap consumers by strengthening its online presence, call centers and partnerships with online travel firms. What resources and capabilities do we want to develop? , 2011; Bull, 1994; Israeli, 2002; Wu, 1999). They are also rack rates and are the same irrespective of the city in which the hotel is situated. Bibliography 1. it is well inside the limit of the customer’s expenditure limit. INTRODUCTION i. This will be the second Ginger hotel in the state. Under the plan, the company will work towards deepening guest experience, strengthening market leadership and achieving transformative growth … • Technology 0). Price ending strategy (tariffs ending in Rs. In case of a hotel, the real needs of the customer include a hotel which does not eat sharply into his//her pocket i. . To sum it up, the discounted rates offered in the form of promotional pricing strategies are the key driver of sales. The role of SWOT analysis is to take the information from the environmental analysis and separate it into internal issues (strengths and weaknesses) and external issues (opportunities and threats). htm 38. http://www. No. This would also help us know the facilities provided by Ginger and online booking process. The second source of data was the Ginger Hotel personnel. Overview Ginger Hotel Bhubaneshwar is a good choice for travellers looking for a 4 star hotel in Bhubaneshwar. There’s no question the hotel industry is a vast sector that is responsible for trillions of US Dollars in the form of revenue. This is how we measure the effectiveness of the pricing techniques. The generic strategy Ginger hotel came into existence as one of the greatest innovative concepts of IHCL group. Dynamic pricing helps keep the occupancy rates high. Jui-Kou Shang, 2010, Pricing determinants in the hotel industry: Quantile regression analysis, International Journal of Hospitality Management 29 (2010) 378–384 22. 2. 2. First you need to diversify and classify by ranking the environmental issues, for example for internal strengths write first most important, than 2nd than so on. Web References: 31. http://articles. The overall purpose of a SWOT analysis is to examine the internal and external factors that help or hinder your business in achieving each of your objectives (1). Public Sector Players: 99. And what should we be carrying about? Cost-based pricing: A financially driven approach to pricing in which products are priced to yield an equitable profit above and beyond all costs associated with the production of the product. A management team will use the SWOT analysis identifying the internal and external factors that will affect the company’s future performance. Large open window even though there's no patio space. Many international hotels including Sheraton, Hyatt, Radisson, Meridian, Four Seasons Regent, and Marriott International are already established in the Indian markets and are still planning to expand more. It is located in Gajapati Nagar.Hotel is rated 3.8 out of 5, which is considered as Good. • Tradition in industry and an availability of labour force. 2. SWOT Breakdown Whether you go on business travel or a leisure trip, booking a room on their website is quite easy. These stated prices for each service were incremented by a percentage value calculated using the average importance rating calculated using the first survey. An optimal, dynamic policy for hotel yield management. Ginger Values. The three legs of the triangle are defined as process, value creation and communication. • Shareholders It’s a simple but useful framework that helps you focus on your strengths, minimize threats, and take the greatest possible advantage of opportunities available to you. Opinion Article 21 April 2020 COVID-19 Hotel Recovery Strategy: Top 10 Ways to Prepare your Hotel for the Rebound in Travel Demand By Margaret Mastrogiacomo, EVP, Strategy at NextGuest Introduction ii. 4. Fei-Ching Wang and Jui-Kou Shang and Wei-Ting Hung, 2010, Pricing determinants in the hotel industry: Quantile regression analysis, International Journal of Hospitality Management 29 (2010) 378–384 16. LITERATURE REVIEW 3. 25/5. 4 Benefits--Photos. Apart from this Ginger uses other pricing techniques to attract their target markets. SMART BASICS CONCEPT GINGER HOTELS Strategy adopted by Ginger hotels Introduction: Ginger’s chief differentiator is the concept of Smart Basic The Ginger Hotels are built around a unique concept that provides facilities to meet the key needs of today's traveler, at surprisingly affordable rates. The striking thing about this group of clients is that they are different. Euro-pean Journal of Operational Research 121, 476–503. com/specials/index. This proves the effectiveness of the pricing strategy employed. Even though the customer is only moderately satisfied with Ginger’s value add services, he is convinced that he is receiving value for money. com/About-Taj/Investor-Relations/pdf/Annual-Report-2010-11. H2: Loyalty programs, seasonal discounts and group-on discount strategies employed by Ginger Hotel’s are the key sales driver. Overview Overview. Hence, the strategy employed by Ginger to provide several different price options and implement several pricing strategies was indeed an effective technique. Their prime focus is on providing key facilities that meet the key needs of the customer. Effectiveness: Most costumers feel that they get value for money when they stay at Ginger. Less competition in the branded budget sector 6. 24. The Indian hospitality sector encompasses many different services. economictimes. 95; 0. However they also place importance on delight needs and feel that some value added services are missing and should be provided. Ginger Hotels. Also asked about, were the questions related to various services (variables) that affect customer satisfaction as well as questions to ascertain how much significance the customer attributes to these services. Dynamic price competition with fixed capacities. When looking at the average felt deficit, the scale showed a low 7. 7. New entrants in the economic hospitality sector need to have a strong financial backing to offer such rates as of Ginger and direct customers towards them. 1000 in this year’s budget) LITERATURE REVIEW Hoteliers frequently find themselves unable to maximize hotel profits via cost control in real world situations. 9 Jobs. ROHIT SHARMA 11P161 TABLE OF CONTENTS 1. PRICING MIX AND STRATEGIES AND THEIR EFFECTIVENESS MAJOR PLAYERS gingerhotels. This analysis helps us establish that the conventional key sales drivers of the hospitality industry are not the sales driver with respect to Ginger hotels. 10. 2. • Less integrated than other big groups like Daimler or Smiths Industries so higher flexibility. 1. Ultimately, it is up to the hotel operator or manager to create a customised sales strategy that will drive the most room sales at their own individual property, but these are some of the top hotel room sales strategies to consider: 1. Abrate, G. Capriello, A. , Fraquelli, G. , 2011. Strengths and Weaknesses It advocates say that it can be used to gauge the degree of "fit" between the organisation's strategies and its environment, and to suggest ways in which the organisation can profit from strengths and opportunities and shield itself against weaknesses and threats (Adams, 2005). Yield Management procedures are often employed by large hotel chains to determine pricing. How can we build shared expectations among our stockholders? IMPLICATIONS OF RESEARCH 10. View Jobs at Ginger Hotels. Although, such a strategy may not fit entirely with Ginger’s strategy of a generalized set of services across all Ginger branches to reduce costs, the customer’s response seems to prove the popularity of such a strategy. 2. • Superior product performance vs. competitors. This perceived value may also vary with factors such as age, income group, star-rating of the hotel etc. Nagle, T. T. , Holden, R. K. , 1995. METHODOLOGY 4. Our aim through this research is to prove that customers of low budget hotels like Ginger value their real needs much higher than the delight needs. , 2009). Scott, Foresman and Company, Glenview, IL. Slightly smells like fried food because of ma'ono window, but I don't mind it that much. The point of a SWOT analysis is to have the best shot at... ...GINGER HOTELS: • Co-existence in the region of 2 seaports and an international airport with direct possibility of export. Needs can be divided into five core types (Marketing Planning, Philip Kotler) – (1) stated needs, (2) real needs, (3) unstated needs, (4) delight needs, and (5) secret needs. The acceptability of the above formula was tested by a follow up survey where customers were questioned whether they would be willing to pay VP (Calculated Perceived Value) for any service that had previously been rated IR in importance and had a previously stated price, VS. CONCLUSION 8. This signing is in line with Ginger’s growth strategy of increasing the brand’s presence in key commercial hubs and state capitals of India. Customer driven pricing (whether costs of value add services, similar to those established by our survey, were being added to packages before being offered by hotels) 6. These could vary based on the city in which the hotel is located. Hospitality sector growing rapidly in India. 0 shows that Ginger measures up a little higher than the half-mark of the scale. We call the consumers or rather guests. • Indian Hotels Company Ltd.(The Taj Group of Hotels Resorts & Palaces) What is SWOT Analysis? Also, room rates increase for motels with restaurant (or gym, spa, parking) facility. Journal of Hospitality Mgmt. The hotel ranks No. 3. This article from Hotelogix discusses five of those areas. 2. • Ecologically clean environment. H. G. Parsa, 2006, Pricing strategies to maximize revenues in the lodging industry – Hospitality Management 25(1), 91–107. GINGER HOTELS: PRICING MIX AND STRATEGIES AND THEIR EFFECTIVENESS (In assistance with Dr. Avinash Kapoor) BY: ROHIT SHARMA 11P161 S.P. Kotler, P. , 1991. htm 35. http://www. WEAKNESSES It could help incoming brands formulate a strategy 2. It is our view that customer may be of the opinion that such discounts exist at already higher prices and do not necessarily offer better value to the customer. Demand supply mismatch (more demand, hotels are usually all booked) 3. pdf 36. http://www. The common forces which drive sales and attract customers within the hospitality industry are usually the television commercials and newspaper advertisements used by the industry player, their participation in trade shows and similar activities. Oxford Economic Papers 54, 449–469. By Stacy Collett LIMITATIONS OF OUR RESEARCH 1. ). XXII, August, pp. He would be allowed to pay for the services he chooses and not for the ones he may not require. Pricing strategies to maximize revenues in the lodging industry. 1016/j. Hotel age and staff size also affect room rates (Pricing determinants in the hotel industry: Quantile regression analysis, Wei-Ting Hung, Jui-Kou Shang, Fei-Ching Wang – Intl. His 17-room, limited-service property is classified by OTAs as two-star yet has an overall traveler rating of 4.5 stars. H3: The value added services being offered by Ginger fall short of customer expectations. Essential strategies to increase your hotel room sales Nagle and Holden (1995) contend that a more profitable approach to pricing is value-based pricing. ♥ ♥ ♥ ♥ ♥ ♥ ♥ ♥ MUMBAI, JANUARY 7, 2021: Ginger announces the milestone of its 75th hotel with the signing of the brand’s second hotel in Aurangabad, in the state of Maharashtra. Dimelis, S. , Louri, H. , 2002. First Watch recently found success with its “Day Glow” fresh juice, featuring carrots, oranges, lemons and a hint of ginger. 3. Mumbai, February 16, 2018: Indian Hotels Company Ltd (IHCL, BSE: 500850; NSE: INDHOTEL) a leading hospitality company in South Asia, today announced a comprehensive five-year business strategy targeted at improving EBIDTA margins by 800 bps. Also, Ginger has recently started renting/leasing properties instead of buying them which further reduces costs. Ginger announced the signing of a new hotel in Udaipur, Rajasthan. , Dynamic pricing strategies: Evidence from European hotels. • Oberoi Group of Hotels(East India Hotels) This suggests strategic behaviour, with hotels adapting optimal prices according to competitor room availability. CONCLUSION 1. As the pioneer of this analysis, and one of the first strategy theorists Ken Andrew was the first who analyzed the strategy with considering capabilities and resources with the external environment. Prentice-Hall, Englewood Cliffs, NJ. Small staff size decreases Ginger’s operating cost (Pricing determinants in the hotel industry: Quantile regression analysis, Wei-Ting Hung, Jui-Kou Shang, Fei-Ching Wang – Intl. Later, in this study we would use stated (by customers) prices (for services) to estimate value perception for certain services that have been shown to affect prices (determined by regression techniques). Looking at the response we tried to gauge the price that the customers would be willing to pay for various such value-add services. 19, 1999) In order to swat the competition you need to understand SWOT. Business: (1) Good/lasting impression on client that may aid in seeing the deal through. 0). Additional standalone facilities, such as an in-house restaurant, a bar (Zero Hour in Pondicherry and Jamshedpur), a coffee shop (Cafe Coffee Day in Bangalore, Goa, Nashik etc. ) KALYAN 11P162 SANCHIT VERMA 11P163 SAURABH MANDHANYA 11P164 No. It can also be used very effectively in the early stages of a program assessment, to help focus your attention on key areas. International Journal of Hospitality Management 21 (4), 405–424. The customers were also asked about whether they would be willing to pay extra for certain value add services and if so, then how much. In essence, full service up-market hotels tend to use whole dollar pricing while limited-service, economy hotels tend to prefer a pricing strategy of using dollars followed by cents, prices that end with cents such as ‘‘0. 20. • Contains a brief study of the major internal and external factors affecting Hotels in the form of a SWOT analysis as well as analysis the PEST analysis and Porters 5 force analysis to understand the criticality of the business. Now this is a much more interesting topic. | Unstated Needs| Personal: Comfortable experience. Comparison of pricing strategy between two hotels and its effect on market share. Find the menu available and the public sector players and the needs of the Indian market business travel or leisure. Companies and provides an extra discount on the base price of rooms all year long get... 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