ROLE OF TECHNOLOGY IN SERVICES INDUSTRY

HOTELS & MOTELS

Presented by: Apurva Agarwal| Dheeraj Arora| Gagandeep| Harish Kumar

Group #16

IM-17, Sec A Service Operations Management

Hotel Industry

The modern era of the hotel industry saw its beginnings in 1794 New York where the first ever hotel was built. History has proven that the success of this industry has largely to do with two factors, location and innovative integration, the combination of these two has created a margin between the larger chains and those who operate on a smaller scale. Soap and locks on doors were the innovation for their day. Strategic placement and product differentiation once again guide the success of this industry. Hotels in India are broadly classified into 7 categories(five star deluxe, five-star, four star, three star, two star, and onestar and heritage hotels) by the Ministry of Tourism, Government of India, based on the general features and

Products

Rooms : The rooms in hotels are based on the Category of the hotel. The facilities in the rooms are based on the type of hotel and price of the rooms are based on the type and facilities provided in the room. Conference Rooms: The conference rooms are provided by hotels for the meetings and other requirements as per the request by the customers. The price depends on the facilities, space and time utilized. Banquets & Halls: Banquet halls are provided by hotels for parties and functions. These halls provide extra revenue for the hotels. Restaurants & Bar : Along with the rooms hotels provide restaurants and bars which are charged separately. This adds revenue as well as a facility for the customers who are

MARKET SEGMENTATION
Mid Market Segment Heritage Hotels Budget Segments Others 3 and 4 star hotels 1 and 2 stars Forts and Palaces

Pricing Strategy
Rack Rates Consortia Rates Corporate Rates Group Rates

Weekend Rates
Promotional Rates

IT Contribution to the hotel Industry

In the hospitality industry, technology represents one of the strongest forces for change, while having had a significant impact on brand marketing. Hotel reservation systems have been shifting from voice to electronic Global Distribution Systems and are now on the verge of consumer access via the Internet. The increasing role played by the Internet should slowly affect booking patterns in the future as inexpensive consumer access to hotel product becomes available. This, of course, has potential implications for the benefits associated with the branding of hospitality products.

1. Property Management System

Complete Reservation Module Comprehensive guest history and mail merge Dynamic rooms and availability chart Complete folio control Unlimited number of folios per guest Concierge and information Sophisticated user defined packages and plans Group reservations with flexible number of room types, room guests, plans and status Unlimited no. of tariffs and daily rates tables in any currency Dynamic tape chart Housekeeping and room maintenance Automatic or semi-automatic night auditing procedures Thousands of report plus and advanced report generator Multi-currency payments, charges and invoices Full management of VAT and other taxes suitable to any countrys laws Fully interfaced with all leading PABXs, E-locks and Pay-TV systems

2. YIELD MANAGEMENT APPLICATION

Most deluxe hotels deploy Revenue enhancement\Yield Management application. Keeping the manual track of a bulk room inventory, looking at the future booking trends and calculating the potential room rate manually is too tedious a task. This job is eased by Revenue enhancement\Yield Management application as systems looks into current bookings, past history, future booking trends and various events (repetitive and non repetitive in nature) to calculate the best possible rate at which a guest room can be sold. It also prompts the best choice to be picked up from the bucket of market segments to maximizing revenue i.e.-whether to accept a group reservation or accept FIT-Free Individual Traveler booking in a given scenario.

2. YIELD MANAGEMENT
APPLICATION

"Yield Management" objective is to manage the product inventory (seats on a given flight, rooms for a given night) in such a way as to maximize revenue. Yield management (or revenue management) is an economic discipline appropriate to many service industries in which market segment pricing (price differentiation) is combined with statistical analysis to expand the market for the service and increase the revenue "yield" per unit of capacity.

It is the set of demand forecasting techniques, optimization models, and implementation procedures which collectively determine which reservation requests to accept and which to reject in order to maximize revenue.

Need for Yield Management Application

Market Segmentation: Demand can be segmented into business and pleasure segments using discount rate restrictions. Fixed Capacity: Hotels have a fixed number of rooms and cannot add 100 rooms when a major convention is in town. Perishable Inventory: Hotels cannot sell last night's unsold rooms today. Low Marginal Cost of Sale: The marginal cost of cleaning and making up a room plus incremental supplies and utilities is low relative to the additional revenue, generated by a unit sale.

Need for Yield Management Application

Advanced Sales: Reservations for rooms are accepted days, weeks and months in advance (even years for major conventions). Uncertainty of demand: The demand for hotel rooms exhibits regular seasonal and day-of-week patterns, but cannot be forecasted precisely for any particular night. Rate Differentiation: Different, demand driven inventory controlled rates, combined with segment-specific booking restrictions (fencing), are at the core of modern Yield Management applications

3. E-butler

The guests are given a wireless handheld device to e-mail their wishes to their very own personal butler from any location. Now, E-butler application has been developed for iPads, iPhones, Blackberry, etc. The application sent to guests via a link, after they make a reservation, allows access to hotels butlers and concierge team.

4. Business and recreational needs

Plasma interactive televisions have though helped hotels in marketing their services.

Guests business and recreational needs Additional services like express check out, details about city, tourist spots, shopping venues etc. Various applications loaded on a common server which connects to set-top of box - additional multifunctional entertainment functions like Games, Music on demand, FM Guests who dont carry laptop and like to browse Internet from their respective room can browse on these interactive TV with the help of cordless (infrared) keyboard.

Thank You !!