Documente Academic
Documente Profesional
Documente Cultură
B2B PARAMETERS
B2B live project
ACKNOWLEDGEMENT
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Great experiences aren’t attained in isolation, I would like to acknowledge and thank all the
people involved for making the entire experience of live project so enriching.
I would like to thank Prof Abdul Aziz Seyid for assigning this project and giving me a
chance to learn the various parameters of b2b in an organized hotel industry.
I am thankful to everybody who helped me directly or indirectly by contributing their valuable
time, energy and knowledge to execute the project. Their support can’t be overlooked.
Priyanshi Agarwal
18BSP1851
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Indian Hotel Industry – Review & Prospects
The Indian hospitality industry has emerged as one of the key Industries driving the growth of
the services sector and, thereby,
The Indian economy. According to IBEF, the tourism & hospitality Sector’s direct contribution
to GDP surged by 23.6% in 2017, Raising the share of the industry (direct & indirect) was Rs
5.9 Trillion (US$ 91.3 billion). Also, tourism in India accounts for 9.4% Of the GDP & is the
3rd largest foreign exchange earner for the Country and ranked 7th in terms of tourism total
contribution to GDP in 2017. At the close of 2018, the country saw macroeconomic stability
Owing to a decline in inflation, current account deficit etc. The Union Budget FY19 had
identified some major pillars that will Support economic growth for the country that includes
tax Reforms, fiscal discipline, investment in infrastructure, ease of Doing business, agriculture
and farmer welfare, rural sector, Social sector, education and job creation. This is said to have
Translated into an overall pick up in economic activities, thereby Having a positive impact on
the demand for hotels industry in the Country.
Going forward, CARE expects the industry to register an overall Healthy growth in revenue on
back of economic growth and Consistently growing middle class along with increasing
Disposable income. There are various other key factors that drive The market, including India’s
attractiveness as a medical tourism Destination; steadily growing Meetings, Incentives,
Conferences And Exhibitions (MICE) segment; and, an increasing fondness Among millennial
to travel.
Also, the expected future inventory in 11 major markets (across Categories - only branded) is
lower at around 49,400 rooms for The next 5 years (FY18 to FY23). Therefore, with increasing
Demand on back of improvement in economic activities and Lower room additions, we expect
the major markets in the Industry to sustain the average room rates (arrs) going forward And
grow at an average of 3.5-4.5% per annum. Also, we expect The occupancy to inch up to an
average of about 68-70% by the End of FY23 compared with 66.6% in FY18. Accordingly, the
Hotel industry is expected to see an increase in room revenue at The rate of about 10-12%
CAGR over the 5 years.
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Classification of Hotels The Indian Hotel Industry can be broadly
classified under 3 major heads:
The hospitality industry consists of companies within the food services, accommodations,
recreation, and entertainment sectors.
The hospitality industry is a several billion dollar industry that mostly depends on the
availability of leisure time and disposable income. A hospitality unit such as a restaurant, hotel,
or even an amusement park consists of multiple groups such as facility maintenance, direct
operations (servers, housekeepers, porters, kitchen workers, bartenders, etc.), management,
marketing, and human resources.
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Usage rate is an important variable for the hospitality industry. Just as a factory owner would
wish to have his or her productive asset in use as much as possible (as opposed to having to
pay fixed costs while the factory isn't producing), so do restaurants, hotels, and theme parks
seek to maximize the number of customers they "process".
This significant growth of the tourism industry is the direct result of changes in international
consumer behaviours as well as economic prosperity and political stability within the region.
Historically, the supply of lodging facilities within the region has proved to be both inadequate
in terms of product quality as well as insufficient in quantity for meeting the increasing levels
of demand.
These elements of supply and demand have created a favourable investment climate for
development within the region, resulting in a real estate boom in both tourism and residential
development. The growth in residential real estate development has been primarily driven by
foreign demand for vacation and retirement homes in both urban and resort destinations within
the region. Investment and development has been further supported by the variety of financial
incentives for investment in tourism projects offered by national governments as well as the
availability of local capital for the financing of large projects.
The first goal is to find ways to operate the hotel according to the idea of a “triple bottom line,”
which embodies profitable operation combined with attention to the people who use and work
in the hotel and a focus on careful stewardship of resources. While that goal is important, even
more vital is to use the hotel’s position as an industry leader in the nation’s capital to
demonstrate to the hotel industry, customers, and vendors that sustainable operation is the best
strategy to ensure successful hotel operation. The sustainability initiative goes beyond such
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well-known ideas as reusing guest linens, recycling waste materials, and changing to compact
fluorescent lamps.
When it comes to hotel, the main difference is that B2B booking goes through other platforms
(e.g. Trivago sells to Hilton Hotels) while on B2C the hotel sells directly to their consumers.
B2B:
B2B stands for business-to-business and it is the exchange of products, services or information
between businesses, rather than between businesses and consumers.
B2B travel booking system, they can make their travel services visible to various travel agents
registered with them as their b2b. Registered travel agents will have the permission to access
online booking engine of travel companies.
B2C:
B2C booking system directly deals with the end consumers. Having such booking system
integrated for flights, hotel, cars, transfers etc. helps customer book rooms on b2c websites
around the clock.
Consumers buy your products or services for personal use. Business buyers purchase products
or services for use in their companies. In B2B-buying, the purchasing process is more complex.
Decision making groups include members from technical, business, financial and operational
departments, depending on the type of purchase.
The person selecting a product may not have authorization to purchase or may not have
responsibility for making the final purchasing decision. A large capital purchase, for example,
may require authorization at board level.
E.g. Corporate travel packages bought by a company for it’s employees through travel
agents. (b2b)
E.g. Jaypee selling its rooms to MMT, Trivago or to any other business (travel agency,
third party). (b2b)
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E.g. Person booking hotel for his/her stay, family stay or for any other purpose directly
from the website of the hotel or that of the third party.
In B2C, consumers who buy products from you pay the same price as other consumers. In B2B,
price may vary by customer. Customers who agree to place large orders or negotiate special
terms pay different prices to other customers. Payment mechanisms also differ.
In B2C transactions, consumers select products and pay for them at the point of sales using
payment mechanisms such as credit or debit cards, checks or cash. B2B transactions require a
more complex business system. Customers select products, place an order and arrange delivery
through an agreed logistics channel. Customers do not pay at the time of the order, but receive
an invoice which they settle within agreed payment terms.
B2C E-commerce Processes
B2C and B2B are also different forms of electronic commerce. B2C e-commerce is a process
for selling products directly to consumers from a website. Consumers browse product
information pages on your website, select products and pay for them before delivery at a
checkout, using a credit or debit card, or other electronic payment mechanism. Consumers enter
their address details and select one of the delivery options you offer.
The basic B2C business system is relatively simple. You need a method of displaying products
and prices on your website, a mechanism for recording customer details, and a checkout to
accept payment.
B2B E-commerce Processes
You can use a similar website-based business system if you sell low-value products to business
customers and you take payment with orders. However, B2B transactions normally require a
more complex business system. The system must be capable of accepting orders in different
formats such as email, documents or electronic orders. It must integrate order capture with your
other administrative systems such as invoicing, customer records and accounting.
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Nature of demand in the industry.
Domestic players
Hotel Chains
They comprise major players including Indian Hotels Company Limited (the Taj Group) and
associate companies, EIH Limited (the Oberoi Group), ITC Hotels Limited (the ITC Welcome
Group), Indian Tourism Development Corporation (ITDC) and Hotel Corporation of India
(HCI) (the latter two being under the Public Sector). Most of these chains had an established
presence in one or more metro cities prior to the tourism boom of the 1980s. Subsequent to the
tourism boom, these chains aggressively expanded their presence in other locations. The
private players among the hotel chains are industry leaders and have well-established brand
identities across the different industry segments.
Small Chains
They are companies that have come up after the tourism boom of the 1980s and 1990s. Due to
lack of prior experience in the hotel industry, these players have preferred to opt for
operating/management arrangements with international players of repute.
Some of the companies in this category are Hotel Leela Venture (with Kempinski), Asian
Hotels (Hyatt International Corporation), Bharat Hotels (formerly with Holiday Inn and Hilton
and now with Intercontinental). As late entrants, most of these hotel companies have fewer
properties, compared with the big chains. However most of these players have initiated
expansion plans during the late 1990s.
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Emaar MGF. Most of these chains have ambitious expansion plans especially with a strong
focus on the budget segment and tier II cities.
The Indian Hotels Company and its subsidiaries are collectively known as Taj Hotels Resorts
and Palaces, recognized as one of Asia's largest and finest hotel company. Incorporated by the
founder of the Tata Group, Jamsetji N Tata, the company opened its first property, The Taj
Mahal Palace Hotel, Bombay, in 1903. The Taj, a symbol of Indian hospitality, completed its
centenary year in 2003. Taj Hotels Resorts and Palaces comprises 59 hotels at 40 locations
across India with an additional 17 international hotels in the Maldives, Mauritius, Malaysia,
United Kingdom, United States of America, Bhutan, Sri Lanka, Africa, the Middle East and
Australia.
The company has had a long-standing commitment to the continued development of the Indian
tourism and hospitality industry. From the 1970s through the 1990s, the Taj played an
important role in launching several of India's key tourist destinations. Working in tandem with
the Indian government, the Taj developed resorts and retreats while the government developed
roads and railways to India's hidden treasures.
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ITC/ Sheraton Corporation
ITC's Hotel division was launched on October 18, 1975, with the opening of its first hotel -
Chola Sheraton in Chennai. ITC – Welcome group Hotels, Palaces and Resorts, is today one
of India's finest hotel chains, with its distinctive logo of hands folded in the traditional Namaste
is widely recognized as the ultimate in Indian hospitality.
Each of the chain's hotels pays architectural tribute to ancient dynasties, which ruled India from
time to time. The design concept and themes of these dynasties play an important part in their
respective style and decor. With more and more hotels being added at strategic destinations,
the group has joined hands with the Sheraton Corporation to strengthen its international
marketing base. A successful marketing franchise for almost 25 years now, there are currently
10 ITC – Welcome group Sheraton hotels, and more in the pipeline
The Leela Palace Kempinski, Bangalore is built in art deco style recreating the grandeur of The
Mysore Maharajas Palace. It is set amidst 8 acres of landscaped garden and waterfalls. It is a
palace with the heart of a modern hotel. Its 254Kovalam is Kerala’s largest resort, built on a
rock face cradled between two wide sweeping Beaches with a stunning view of the famous
Kovalam coastline.
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The Bharat Hotels Group
The Bharat Hotels group is a major player in India’s tourism and hotel sector. It operates its
hotels under ‘THE GRAND’ banner and its present portfolio of hotels incorporates 14 luxury
hotels in the five-star deluxe segment. These include Intercontinental ‘The Grand’ hotels in
New Delhi, Mumbai, Goa & Srinagar and The Grand Ashok Bangalore, The Grand Laxmi
Vilas Palace Udaipur and The Grand Temple View Khajuraho. Additionally, soon to open
hotels in 2008-09 are – The Grand Great Eastern Kolkata, The Grand Jaipur, The Grand Resort
Bekal, The Grand Ahmedabad, The Grand Chandigarh, The Grand Noida and The Grand Fort
Dubai. By 2009, the company plans to open hotels in Hyderabad, Amritsar and other key
locations.
The company in 2004 joined forces with Hilton International to rebrand most of its mid-range
hotels as Trident Hiltons (the former Oberoi Towers is now known as the Hilton Towers
Mumbai). The Oberoi Group also operates luxury cruises of the Nile River and India's Kerala
region.
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Nature of demand in the industry
The hospitality industry is cyclical in nature and faces high elasticity of demand depending
upon the economic scenario. The sector is on the upward trend backed by economic growth,
consistently growing middle class & working population and increasing levels of disposable
income This variation can take a number of forms:
Daily variation: The demand levels vary according to time of day: a hotel restaurant is busier
Weekly variation: A hotel located in a scenic area away from a city is busier over weekends
than
Seasonal variation: A resort hotel’s occupancy is higher during holidays than during out-
ofseason periods.
Cyclical variation: The demand for hotel accommodation varies according to the economic
Unpredictable variation: Demand for hotel accommodation can decrease sharply when a
1. Commercial Customer -
Various firms conduct their training sessions, seminars, business meetings in the hotels.
Various other companies like MakeMyTrip, Trivago, OYO are the customers of the hotel
industry as they purchase rooms to further sell it to their customers.
2. Institutional Customers
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Schools, colleges, universities, healthcare, art galleries, clinics
Universities, schools buy the services of the hotels for their staff (Students, teachers), various
hospitals also take the space from the hotels to reside their patients, staff.
3. Government Customers
e.g. ShivSena or various parties conduct their meetings or stay in the hotels.
Hotel supplies and accessory equipment’s include products such as furniture, appliances,
utensils, and other equipment that are used at bars, restaurants, hotels, resorts, pubs, and cafes.
Product categories such as catering equipment, food service equipment, kitchen equipment,
stainless steel equipment, food processing equipment, bakery equipment, and refrigeration
equipment are some of the hotel supplies products used in the kitchen area.
Cleaning equipment, housekeeping supplies, laundry equipment, lobby supplies, luggage
trolleys, room service equipment, and hotel towels and linens are some of the hotel supplies
that are used for the infrastructure maintenance of a hotel. Audio-visual equipment,
telecommunication equipment, hotel security equipment, hotel technology, health club
equipment, hotel automation equipment, hotel furniture, decorations, bars and coffee ware, and
tableware are some of the supplies used to hotel’s infrastructure design.
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Hotel manufactured products include food produced etc.
Hotel Services include Cleaning, housekeeping, laundry equipment, lobby, luggage trolleys
and room services etc.
Hotel Installations include headboards, artwork, mirrors, window treatments) and product
simply needing to be set in place (i.e., seating, lighting, mattress sets)
Placement as per the floor plan, including electrical, glassware, kitchen and linen packs,
Furniture assembly/delivery, set up of beds and mattresses, Mounting of artwork televisions
and other hanging items.
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Cultural Influences
It is defined as a complex sum total of knowledge, belief, traditions, customs, art, moral law or
any other habit acquired by people as members of society. Our consumer behaviour, that is the
things we buy are influenced by our background or culture. Different emphasis is given by
different cultures for the buying, use, and disposing of products. People in South India have a
certain style of consumption of food, clothing, savings, etc. This differs from the people in the
North of India. Different cultures and habits are predominant in different parts of the world.
Japanese have a different culture from that of USA, England or Arabian countries. Therefore,
in consumer behaviour culture plays a very important part.
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Sub-cultural Influences
Within a culture, there are many groups or segments of people with distinct customs, traditions
and behaviour. In the Indian culture itself, we have many subcultures, the culture of the South,
the North, East and the West. Hindu culture, Muslim culture, Hindus of the South differ in
culture from the Hindus of the North and so on. Products are designed to suit a target group of
customers which have similar cultural background and are homogeneous in many respects.
Social Class
By social class we refer to the group of people who share equal positions in a society. Social
class is defined by parameters like income, education, occupation, etc. Within a social class,
people share the same values and beliefs and tend to purchase similar kinds of products. Their
choice of residence, type of holiday, entertainment, leisure all seem to be alike. The knowledge
of social class and their consumer behaviour is of great value to a marketeer.
These could be political groups, work group and study groups, service organisations like the
Lions, Rotary, etc. The behaviour of a group is influenced by other member of the group. An
individual can be a member of various groups and can have varied influences by different
members of groups in his consumption behaviour. An individual can be an executive in a
company, can be a member of a political party. He may be a member of a service organisation
and of entertainment clubs and study circles. These exert different influences on his
consumption.
Family Influence
As has already been said, the family is the most important of the primary group and is the
strongest source of influence on consumer behaviour. The family tradition and customs are
learnt by children, and they imbibe many behavioural patterns from their family members, both
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consciously and unconsciously. These behaviour patterns become a part of children’s lives. In
a joint family, many decisions are jointly made which also leave an impression on the members
of the family.
These days the structure of the family is changing and people are going in more for nucleus
families which consists of parent, and dependent children. The other type of family is the joint
family where mother, father, grandparents and relatives also living together.
Personal Influences
Each individual processes the information received in different ways and evaluates the products
in his own personal way. This is irrespective of the influence of the family, social class, cultural
heritage, etc. His own personality ultimately influences his decision. He can have his personal
reasons for likes, dislikes, price, convenience or status. Some individuals may lay greater
emphasis on price, others on quality, still others on status, symbol, convenience of the product,
etc. Personal influences go a long way in the purchase of a product.
Other Influences
Consumers are also influenced by national or regional events which could be like the Asiad,
the Olympics, cricket test matches, World Cup, the war or a calamity. These leave permanent
or temporary impressions on the mind of the consumer and affect his behaviour. In these events,
products are advertised and sometimes the use of a product like drugs, etc. is discouraged.
People are urged to adopt family planning methods. Situation variables such as product display,
price reduction, free gifts and attractive offers also influence consumer behaviour.
In Figure: A simplified framework for studying consumer behaviour, the broken lines indicate
that these factors influence and in turn are influenced by each other. The various factors
percolate from the external to the individual determinant, to finally influence the decision
process.
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External factors Influencing Consumer Behaviour
Among demographic factors which influence decision-making, are age, gender, education,
lifestyle, personality and income. The key activities of hotel marketing communication may
prove relevant in the consumer decision-making process.
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Important Macro and Micro segmentation variables in the
industry
Demographics:
1. Industry:
Consider the example offers a product Cummins power which offer Gensets that is used by
companies when there is a power cut. This product is targeted at various industries like
hospitals, banking hospitality, entertainment, SSI, Telcom, and IT. They have decided to target
their generators to different and dissimilar industries.
On the other hand, significant differences may be present in the industry due to which it may
not be possible to target a large chunk of the industries and hence choose one or a part of that
industry.
2. Company Size:
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Larger organisations have different purchasing requirements and will respond differently to
marketing programmes compared to small firms which purchase in smaller quantities. Thus,
when companies are segmented on the basis of size, larger producers may want to avoid small
firms because their low volume needs cannot be served profitably. On the other hand, smaller
producers may want to avoid large companies because their volume requirements exceed
production capacities.
3. Location:
Customer location can also be an important segmentation variable. In the industrial market, for
example, on-time delivery is an important factor in servicing customers. Thus due to effects on
inventory, transportation and warehousing, marketers may want to avoid those customer’s
markets that are located too far away or are too dispersed. Location also affects sales I force
organisation and deployments.
4. Plant Characteristics:
Quality improvement programmes of the organisations have led to new policies and processes
to be adapted. Just-in-time, and Robotics, are two such which are adapted to satisfy certain
standards. JIT determines the inventory of the organisation and revotics, the degree of
automation.
These also form a basis of segmentation. Does the organisation have the capability to supply
the registered amount of materials at the appropriate time? Based on this, the customers are
chosen. Size and age of the plant determine the capacity and utilisation and in turn the output
of the organisation.
5. Buying Policies:
variable due to the influence it can have on the purchasing decision. When purchasing is
centralised, the purchasing manager’s power and specialisation, and the composition of the
buying centre are strongly affected.
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Thus buying policies provide a good base for isolating specific needs and marketing
Operating Variables:
1. Technology:
In industrial marketing there can be many areas of technology to which the product can be
applied. The customers’ technology can be a determining factor for choosing the market
segment: High precision and high end products for high technology companies versus low end
and lower technology products for others.
2. End-user Markets:
Market segmentation by the end-use of products variable is also used by many firms which
market products or services to several end- use markets. For example, an aluminum company
had different market segments based on the end-users.
The major market segments was for aluminum doors, windows and partitions used for factories
etc. The other end user market segments were for electrical control panels, electronic sinks,
bus-body builders etc.
Situational Variables:
1. Product Applications:
Many products can be used in several ways, or have different “product applications”. The
pricing and customer needs for these segments are different. For example, Nortel Networks has
a product called Voice over IP which can be used for varied applications, one such being online
customer management system.
2. Competitive Forces:
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There exist markets, especially in India, where entry was difficult some years back before
deregulation and the beginning of liberalisation. Some industries like telecommunication and
insurance were under the control of the government and difficult or impossible to enter.
Today, the markets have been opened but due to heavy competition it is difficult to enter and
sustain growth. As an industrial marketer, he must be aware of the company’s strengths and
weakness so as to choose the segment where they can sustain and grow.
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Bibliography
http://www.careratings.com/upload/NewsFiles/Studies/Indian%20Hotels%20Industry
%20Dec%202018.pdf
https://fivehotel.co/special-features-of-hotel-marketing/
www.ibef.org
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