rediff. Herbig Paul and Milewicz John, The relationship of reputation and credibility to brand success, Pricing Strategy and Practice, Vol. All single rooms were priced at Rs. - Inventory of environmental conditions is never made 5, Issue 2, 1997). Most of the responses were in affirmative. That being said, SWOT analysis of the hotel industry is, therefore, paramount. Journal of Business Venturing 14, 87–102. NEW DELHI: Budget hotel chain Ginger Hotels is looking at selling six properties in locations like Goa, Whitefield Bengaluru, Mysuru and Pondicherry, according to people aware of the development. 8. • Historical diligence. ... Ginger Hotels: Use of IT in Budget Hotels in India. Deepika Rao, Managing Director and Chief Executive Officer, Ginger said, “We are happy to partner with Alka Group of Hotels for the development of a hotel … NEW DELHI: Budget hotel chain Ginger Hotels is looking at selling six properties in locations like Goa, Whitefield Bengaluru, Mysuru and Pondicherry, according to people aware of the development. 1 of 456 hotels in Madrid on TripAdvisor, outranking the city’s most luxurious hotels. 5. Claim this company. 3 They endeavour to provide the class, comfort, style and warmth that a customer wants along with the luxury of affordability. 5 Threats: 1. 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. ,2011). Strengths and Weaknesses 5. Strategic Management in a Hotel, 50 pages, 1 appendix Saimaa University of Applied Sciences Business and Culture, Imatra Degree Programme in Tourism Bachelor’s Thesis 2012 Instructor: Samuli Nikkanen, Senior Lecturer, Saimaa University of Applied Sciences The aim of this research was to observe features and factors that affect a hospitality industry organization. BUDGET HOTELS :• It is India’s first of its kind chain of Smart Basics hotels.• Another 15% had doubts about whether they’d like to pay extra or not but only 10% displayed a clear negative response to a customization strategy. tajhotels. Business: (1) Good/lasting impression on client that may aid in seeing the deal through. • Le Meridien Group of... StudyMode - Premium and Free Essays, Term Papers & Book Notes. Locations of Taj Hotels in India Place 18. Hypothesis 3: Hypothesis three (H3) has neither been proven nor disproven by the research. • Oberoi Group of Hotels(East India Hotels) There’s a sad stillness that not only marks the sign of a quiet moment, but also the sign of a failing business strategy. . Read reviews on salaries, working hours, work culture, office environment, and more to know if Ginger Hotels is the right company for you. 8/2. VP=VS * (1 + IR/20) Where VP: Perceived value; VS: Stated Value; IR: Importance rating This hypothesis was arrived at keeping in mind that customer may always under-quote the price of a service he needs (Danziger et al. Results Our research involving analysis of tariff rates of Ginger and other economy hotels shows that even though Ginger follows a price-ending strategy, most of the other economy hotels in India do not. As a result, even if the delight needs are not being met by Ginger, it does not prevent them from being regular customers of Ginger’s service as their real needs of in-budget boarding and lodging are met beyond their expectations. - Geopolitical position is good for business. Instead of telling guests what they will experience when … • ITDC hotels They come from different countries, travel for different reasons and have a different budget. 2. These hotels have been launched with a new name – Ginger hotels – in sync with the fresh, simple-yet-stylish and warm world of Smart Basics™. It has been a part of healing strategies in Asia, India, Europe, and the Middle East for centuries for treatment of such disorders as arthritis, stomach upset, asthma, diabetes, and menstrual All these variables together can be used to price hotel room rates using regression techniques as illustrated in the paper cited. These include Taj – the hallmark of iconic hospitality, Vivanta with its collection of sophisticated upscale hotels, and Ginger which is revolutionizing the lean luxury segment. 1.1.2 Positive and normative economic statements, Effect of Remuneration and Rewards on Employee Motivation- a Study of Selected Hotels in West Bengal, An Interview with Hilton Hotels' Jim Vonderheide, What Factors Contribute to the High Employee Turnover Rate in the Budget Hotels in China, Taj hotels and resorts service marketing mix, Analysis of the Hilton Hotels Essay Sample, Analysis Of The Indian Hotel Company Limited Tourism, Free online plagiarism checker with percentage. It has 80+ of them in India and 10+ in countries outside India like Singapore, Malaysia, USA, UK, Maldives, etc. Ginger Hotels. We call the consumers or rather guests. 3. Marketing mix – Here is the Marketing Mix of Hilton Hotels.. SWOT analysis – Here is the SWOT analysis of Hilton Hotels.. Mission – “To be the most hospitable company in the world – by creating heartfelt experiences for Guests, meaningful opportunities for Team Members, high value for Owners and a positive impact in our Communities.”. Restaurant is also outsourced to outside caterers and customers pay extra for breakfast and other meals. This would also help us know the facilities provided by Ginger and online booking process. 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. Brand encashment (whether Ginger may be overcharging with respect to avg. SWOT is a business management anagram that stands for strengths, weaknesses, opportunities and threats. /night)| Average Perceived Value, VP (Rs. 25/5. Scope of the Report - Initiative of local municipal authorities, arranged cultural-educational network and possibilities of development. Other entrants would require innovation to reduce costs in order to compete with the prevailing Ginger prices. They know great customer experience cannot be built in a day. • Tradition in industry and an availability of labour force. Whether you go on business travel or a leisure trip, booking a room on their website is quite easy. Even though the customer is only moderately satisfied with Ginger’s value add services, he is convinced that he is receiving value for money. Through our primary and secondary research findings we were able to conclude that for Ginger Hotels, price and pricing strategies employed were infact the key sales driver in comparison to the other P’s of the marketing mix. Ginger also follows weekend discount rates but so do other economy hotels and this strategy, does not seem to affect customers’ experienced value for money. 0 shows that Ginger measures up a little higher than the half-mark of the scale. A product of the two (rating of importance, 1 to 4, and satisfaction 1 to 5 converted to dissatisfaction 0-4) would help us calculate a “felt deficit” that may discourage customers from revisiting the hotel despite a possible fulfilment of real needs, thus firmly establishing whether or not importance of delight needs may overpower importance of real needs for an economy customer…………………………………………………………………………………………. | Bearing in mind the above categorizations, questions were asked of customers, in the online survey and personal visits (to Ginger), regarding their satisfaction level / value for money and their expectations in terms of value add services (delight needs) from Ginger or other similar economy hotels. The generic strategy iii. Dimelis, S. , Louri, H. , 2002. door pick up) * Personal Bar/Fridge * Wi-Fi access * Valet * Gymnasium * Spa| Secret Needs| Personal: Rise in status in the eyes of near and dear ones. REFERENCES i. Determine an organisation's weaknesses, not only... ...SWOT Analysis SWOT analysis is a basic, straightforward model that provides direction and serves as a basis for the development of marketing plans. 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. How to Generate Results in Hotels with Revenue Management. Excellence - We strive for perfection in everything we do! of words: 7029 SHAFALI SUBRAMANIAN 11P165 EXECUTIVE SUMMARY Our study has been conducted on the ‘Pricing strategies employed by Ginger Hotels, India and their … The use of yield management in the context of a central reservation system in a global hotel group has been discussed by Jean-Francois Sanchez and Ahmet Satir, Hotel yield management using different reservation modes, International Journal of Contemporary Hospitality Management, Vol. adopted strategy in the hotel industry is outsourcing, which managers use to squeeze operating costs in a tough business environment. Our strategy for high-quality growth focuses on strengthening our diverse portfolio of differentiated brands, building scale in key markets, creating lifetime guest relationships, and delivering revenue to hotels through the lowest-cost, direct channels. Internet Research: Research on internet was done to find out any pricing patterns conspicuously visible in Ginger Hotel’s tariffs as well as to have a better awareness of market conditions and tariff rates being followed by other branded/non-branded hotels. International Journal of Hospitality Management 21 (4), 405–424. The company’s strengths and weaknesses are the internal factors. Miguel Porras, manager of Artrip Hotel in Madrid, would agree. Dynamic price competition with fixed capacities. Weaknesses This study tries to look at one of the few branded hotels, Ginger (Tata) in India and explore what all pricing strategies it may have employed. The results provide an important reference for the managing strategies of international tourist hotels. A range of yield management methods can be employed such as discounting, repositioning, segmentation, packaging and overbooking depending on demand forecast(Anthony Ingold, Ian Yeoman, Una McMahon-Beattie, 2000, Yield management). H2: Loyalty programs, seasonal discounts and group-on discount strategies employed by Ginger Hotel’s are the key sales driver. Another problem is that SWOT, having been conceived in simpler times, does not cope very well with some of the subtler aspects of modern strategic theory, such as trade-offs (De Witt and Meyer, 1998). 2, 2005. The delight needs in the hospitality industry include offer of value added services like Bell boy, porter, personal bar/fridge available within the hotel room. Bolen, W. H. , 1982. Now this is a much more interesting topic. Introduction ii. The Indian hospitality sector encompasses many different services. Low operating cost, because all ginger properties use the same building structures/utilities saving up on bulk deals. • Experienced in two different kinds of distribution gingerhotels. Nearly three-quarters (72 percent) of all adults wish restaurants would offer breakfast items throughout the day, according to the NRA Forecast. Ginger An Overview of Health Benefits Keith Singletary, PhD Ginger (Zingiber officinale Roscoe) is a member of the Zingiberaceae family of plants. 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. Hence, the strategy employed by Ginger to provide several different price options and implement several pricing strategies was indeed an effective technique. indiatimes. SWOT identifies the internal and external factors that affect an organization. XXII, August, pp. 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. Special offers are offered by Ginger Hotels through the year in the form of seasonal packages (eg: Monsoon Package), Weekend Offers, Early Booking Offer, Daily Use Rates. What is SWOT Analysis? The then Managing Director of IHCL also said that a Ginger Hotel will opened in different cities every six weeks on an average. Customer-driven may be crippled by consumer’s unwillingness to reveal their reservation price (Danziger et al. Significance: 1. Dynamic pricing helps keep the occupancy rates high. When looking at the average felt deficit, the scale showed a low 7. Prentice-Hall, Englewood Cliffs, NJ. Ginger also has an additional feature of presenting the customer with the best available rate (BAR) for hotel rooms. 154 reviews of Rachel's Ginger Beer - University Village "Pleasantly surprised at the space. The point of a SWOT analysis is to have the best shot at... ...GINGER HOTELS: 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 WiFi| Respondents felt Wi-Fi should be a free service if present| | Primary and Secondary Surveys: Research (using Internet and by speaking with managers) was carried out to find any patterns with regards to the following pricing strategies that may be being followed by Ginger and other economy hotels: 1. ”The strategy for Ginger Hotels entails upgradation of its existing portfolio of hotels to the new lean luxe look and feel, and growing its network of hotels," said Deepika Rao, MD and CEO, Ginger Hotels in a response to ET’s queries. • Bad transport communication with the port (Organizational and context attributes). Ginger Hotels is a Tata Enterprise, which differentiates itself from the rest of the Tata Group Hotels by being a ‘Smart Basics Hotel’. Success story of budget hotels: a balancing act The shift in focus from luxury hotels to mid-market budget hotels in the last few years for delivering quality service, establishing themselves as a key market player, maintaining a loyal customer base has opened avenues for the hospitality industry. The Strategy and Tactics of Pricing: A Guide to Profitable Decision Making, second ed. Justification: The Indian low cost hospitality segment is expected to grow by 50% in the next four years. Identifying some common pricing strategies employed in the hospitality sector in the global and Indian context for middle income groups. This, possibly, leads to a sense of higher value for money as visible in our analysis (Average experienced Value for Money at Ginger = 1. SWOT is analysis of company. They have to spend more time on price decision making (Kim et al. Customers are mostly in favour of customization and willing to pay extra for such value-add services. Kotler, P. , 1991. It has features in strategy textbooks since at least 1972 and can now be found in textbooks on marketing and any other business disciplines. DATA COLLECTION AND ANALYSIS Primary Survey: This phase required us to segregate needs into its five core types (Marketing Planning, Philip Kotler) – (1) stated needs (2) real needs (3) unstated needs (4) delight needs (5) secret needs The following were identified under different categories. Research Implication: Insight into pricing strategy of Ginger; its foray into Indian Market and effectiveness of the same. Special last minute rates 5. Yield Management procedures are often employed by large hotel chains to determine pricing. • Politics Competition-driven pricing: A market-driven approach to pricing in which price sare determined by the pricing level at which a targeted market-share level is attained by the firm. KALYAN 11P162 SANCHIT VERMA 11P163 SAURABH MANDHANYA 11P164 No. Customer profiles provide a valuable source of information to develop strategies. 17. Room service is missing and seems to be a key service that is desired by customers and they are willing to pay extra for it. aspx 33. http://www. Cutting down on value added services and staff is an effective way to reduce prices although it can sometimes have a negative impact on customer perception. Badinelli, R. , 2000. KALYAN 11P162 SANCHIT VERMA 11P163 SAURABH MANDHANYA 11P164 No. With this study we intend to find out, to what extent pricing strategy affects value perception and provide a loose set of services that new entrants (of the sector) should bear in mind when formulating a pricing strategy for the budget segment. Objectives ii. 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). Under the plan, the company will work towards deepening guest experience, strengthening market leadership and achieving transformative growth … Foreign ownership and production efficiency: a quantile regression analysis. Michael Collins, Pricing strategies to maximize revenues in the lodging industry – Hospitality Management 25, 2006 26. However they also place importance on delight needs and feel that some value added services are missing and should be provided. Their prime focus is on providing key facilities that meet the key needs of the customer. BY: The idea of customization was that over a basic set of services, the customer may be allowed to buy services/night at will. LIMITATIONS OF RESEARCH 9. Stated Needs| Economical per night tariffs|, Real Needs| Personal trip: Not only tariffs but overall expenses of stay should be economical. In Ginger Hotels SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors. This, possibly, leads to a sense of higher value for money as visible in our analysis (Average experienced Value for Money at Ginger = 1. Strengths iv. Also, Wi-Fi, Gymnasium and TV are provided for free at all locations. TABLE OF CONTENTS 1. The striking thing about this group of clients is that they are different. Thus, it is found that a large number of hotels employ dynamic pricing of which the composition of the clientele is the main driver. International Journal of Contemporary Hospitality Management 6, 10–15. Bibliography 1. Kenneth N. Thompson, 1997, Gaining sustainable competitive advantage through strategic pricing: selecting a perceived value price – Pricing strategy and Practice, Vol. Some of these are : 1. CONCLUSION 1. 2. Contemporary Retailing, second ed. com/AboutUs/smart_basics. Ginger Hotels makes the most number of posts in a day, with an average of 3-4 posts which tend to be spread out over the course of the day. Having started its first hotel in the year 2004, it has already gained a foothold in the market thus becoming a strong candidate for our research on pricing strategy and its effect on the market share. Signs the 2nd Ginger hotel in Aurangabad Celebrate this milestone with Ginger here Celebrating 75 Ginger hotels! These reduced rates go down to values as low as Rs. 999. As external Opportunities and Threats we should answer the question: what might we do? Pricing a motel’s location. • High budget and enough money for business. Hypothesis 1: Through the data analysis and surveys it was found that customers indeed seem satisfied with the services that satisfy real needs. The null hypotheses have been stated below: H1: Customers rank real needs higher than delight needs. The major players in the Indian hotel industry can be broadly divided into private sector players and the public sector players. From an academic point of view, it will aid in better understanding of the Marketing Mix for a firm and in innovations in the Market Strategies to gain better control of the market. 25. Perceived value pricing models work on the idea that more than the hotelier’s cost it should be the customer’s perception of the value of service that should drive the price. However, the scales could tip soon. It is considered auspicious to tag on a "1" to a number ending in zero.All the hotels in the Ginger chain have … 3. Customers were also asked to rate the importance of these services as well as their satisfaction level with these services at Ginger, and whether they would be willing to revisit Ginger. "The purpose of strategy is to be really clear before you take the direction. • Society - > 100 km of virgin beach. 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. How to increase your hotel’s occupancy rate. That, the value-add services fall short of customer’s expectations would be a dubious call since the average dissatisfaction with Value Add Services (DR) at Ginger was calculated at 2. Wu, L. , 1999. 3 / 4. This would help us in figuring out the importance of the lack / presence of the various value added services in the eyes of the customer. Search and compare Long Beach, WA hotels and accomomodations using our interactive hotel finder. Pricing Decisions. HYPOTHESIS The following are the hypotheses that we thave hypothesized with respect to Ginger Hotels. External factors Many researchers have hypothesized that price endings may be utilized by retailers to communicate whether a product is low-priced (Dodds and Monroe, 1985; Berman and Evans, 1986; Kotler, 1991, Nagle and Holden, 1995) or to communicate about the quality of a product (Alpert, 1971; Whalen, 1980; Bolen, 1982; Bagwell and Riordan, 1991). The Indian hospitality sector encompasses many different services. It also aims to explore the value for money as experienced by customers of Ginger as well as to ascertain what key services make up for a satisfying experience in a budget hotel. 1. 8 / 2. • ITC Welcome Group of Hotels Strengths - Launched 12 hotels pan India. 3. 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. Some services like meeting rooms and personal lockers are also available which were not considered in the surveys. However, absence of certain basic services such as bell boy/porter and twenty-four hrs’ room service owing to small staff size is bound to leave the customer dissatisfied. The different players in this budget hotel segment implement a competitive pricing methodology. Also, room rates increase for motels with restaurant (or gym, spa, parking) facility. Red Ginger Chic Resort: strategic location & nice hotel - See 864 traveler reviews, 760 candid photos, and great deals for Red Ginger Chic Resort at Tripadvisor. How can we build shared expectations among our stockholders? - Variety of exports possibilities. The hotel will be designed around the brand's lean luxe philosophy of offering a vibrant, contemporary and seamless hospitality experience to its guests. The hotels' modernized design was first introduced at the Goa location. , 2004). 3. It allows hotel to focus efforts on its core competency and strengthen its ability to adapt in the ever-changing business environment. EXECUTIVE SUMMARY This is because Ginger enjoys kind of a monopoly in a branded economic hotel segment. It is a distinctive competence when it gives the firm a comparative advantage in the marketplace. 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. The case study traces the journey of Ginger Hotels which in 2012 has a pan India presence and has maintained its positioning by understanding and implementing the correct marketing mix. METHODOLOGY 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. 4. . 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. Darren Lee-Ross ; Nick Johns, 1997, Yield management in hospitality SMEs, International Journal of Contemporary Hospitality Management, 9/2 13. Some of the popular transit points from the hotel are Biju Patnaik International Airport (5.6 kms) and Biju Patnaik International Airport (5.6 kms). But let’s take a step back and look at the people who have to pay these prices. This is environmental analysis, which include external and internal issues. We believe that this higher level of satisfaction may again have been affected by the perceived value for money being imparted by price ending strategy. Thus helping us ascertain that the techniques employed by the other players in the Indian hospitality sector were not effective when it came to Ginger hotels. 95 or Rs. He would be allowed to pay for the services he chooses and not for the ones he may not require. We know that sometimes it's hard to find inspiration, so we provide you with hundreds of related samples. However, whatever be the perceived value, the results – that the customer would be willing to pay extra for such services, have been conclusive. Alpert, M. I. , 1971. 5| 60. The Reimagined GINGER experience brings together attractive public areas as well as spots designed for solitude, allowing the smooth transition from one to the other. Scott, Foresman and Company, Glenview, IL. GINGER HOTELS: PRICING MIX AND STRATEGIES AND THEIR EFFECTIVENESS (In assistance with Dr. Avinash Kapoor) BY: ROHIT SHARMA 11P161 S. P. KALYAN 11P162 SANCHIT VERMA 11P163 SAURABH MANDHANYA 11P164 No. 29. Pioneering in the hospitality sector, the company is well-known for its efficiency and caring outlook.