Market Entry into India Essay

The company 's vision is to become the world 's benchmark not just in the hotel industry but in the global business field. With our desire to exceed expectations, and our

Nations Hotel Corporation is one of the reputed USA based hotel company, with an international presence in 15 countries worldwide. Hospitality industries are quiet competitive in nature and today’s success rule of hospitality includes knowledge, customer satisfaction and operational efficiency which provides pleasure of stay and departure to their guests. Any addition or subtraction in these components can increase or decrease the rating of any organization. Nations Hotel with 98% brand awareness and 72% as customer satisfaction ratio were still far from the race of preferred choice amongst the customers. Hence there, arose a need to

Hilton Hotels is one of the biggest players in the US lodging industry. It contributes to about 9% of the total rooms in US lodging market. It has presence in over 78 countries with more than 2500 hotels. Lodging industry is highly capital intensive industry, so to reduce capital expenditure Hilton Hotels opted for self-owned Hotels as well as franchising model with the real estate owners. One of the key features of lodging industry is low switching costs for customers. There is very little margin to differentiate from the major competitors in the industry which include Marriott international, IHG, Accor etc.

In the case of Astor Lodges, the company has not been making a profit for five consecutive years and a marketing strategy needs to be put in place. The hotel industry saw $16.7 billion pre-tax profit in 2004 along with 4.4 million hotel room available in the country. The competition of 213 affiliated hotels with a brand company is going to be a challenge but attainable. From 2004, objectives are completed but still turning over unprofitable years with marketing plans put in place.

1. Think about size, growth, locational aspects and segmentation 2. Market Structure 3. Performance metrics used 4. Trends

No amount of process re-definition could have saved Schindler the pains associated with attempting to move into India with a low-cost strategy. Fundamental assumptions about India just wanting low-cost elevators where customization wasn't a requirement took the effort of creating a subsidiary to learn from.

Within the luxury tier, many of the players do not actually own the hotels themselves, but instead manage the operation of the business, similar to that of FSH. In the luxury segment, competition for acquiring new management agreements becomes very high as hotel owners make their choices based on the quality and value of a company's management service and most importantly, its brand name. Moreover, guests who choose to stay in luxury hotels are commonly not very price sensitive, and thus it is essential that a hotel distinguish itself amongst its competition by providing value added services as well as maintaining an untarnished, reputable brand name and image.

With the development of tourism, hotel industry competes sharply.A hotel using the different strategy to increase their competitive advantage.Cliff Bowman advance a theory which is Strategy clock, is a tool to analysis enterprise's strategic choice with 8 different type of competitive strategy options including 'No fills', Low price, Hybrid, Differentiation, Focused differentiation, increased price with standard value, increased price with low value and low value with standard price.In the price based strategy( 'No fills', Low price etc) is the most common strategy used in the hotel industry.A low-price strategy reflects to seek to achieve a lower price than competitors whilst trying to maintain similar perceived product or service benefits to those offered by competitors.(Johnson & Scholes, 2008)'No frills' means combine a low price, low perceive product or service benefits and focus on the price-sensitive market segment. Nowadays, there have a lot of argument and discussion about the impact of price-based strategy.In this essay will explain two side arguments of price-based strategy which including pros and cons, needs and risk, also my opinions.

(Touryalai, 2015)The competitors in the market come from the large and small hotel competition, including self-supporting hotel; the market in various modes of fragmentation, and about 800 million rooms is the franchise mode to operate, which occupy the 45% of the capacity of the market, and intercontinental hotels occupy the franchise market share with 3% of the market share of 8%. Although the proportion of franchise market share in the number of rooms only 45%, but in the past few years, the average annual growth rate of franchise mode is about 3.8 percent. Its growth rate of the number of rooms’ speed is 2 times. (Fox, 2015)This means a client to begin a preference gradually franchise the right to operate the business model, that is, brand oriented. Inter Continental Hotel is undoubtedly one of the biggest beneficiaries in this process. In addition, we can not ignore a chain effect is in the changing process of the market structure, self-supporting hotel owners awareness to them in the inferior position in the competition, so they began to give self-supporting Hotel similar to intercontinental hotel that specializes in providing management services to the company management, which undoubtedly increases the competitiveness of Inter Continental

The majority of the five-star hotels are controlled by foreign hotel management group while the one, two, three, and four-star hotels are mostly controlled domestically without any strong chain brand. By August 2017, the profit of five-star hotels stands at 64.83 billion yuan, four-star hotels at 2.09 billion yuan, three-star hotels at 6.13 billion yuan, two-star hotels at 0.54 billion yuan, and one-star hotels are at 0.11 billion yuan. This shows that the majority of the profit share is earned by five-star hotels. Besides the starred hotel, there are 95000 individual hotels in China market, which occupies 27% of the market share; and economy hotel for around 7000, occupies 1.9% of the market share; social inn, hostel for about 234,000, which occupies 67% of the market share. In China, the main body market is filled with non-brand individual hotels, social inn, and hostels, but their competitive power and profitability indexes are relatively weak. Economy hotels, on the other hand, in terms of economic perspective, are lying in the ascendant mode with lots of domestic brands appearing having strong competitive power and profitability indexes.

The Ritz-Carlton Hotel Company operates within the upscale & luxury hotel industry. While it could be argued that Ritz-Carlton operates in the more broad and inclusive lodging industry, they offer a highly differentiated product and service and therefore find themselves operating in an exclusive industry alongside very few direct competitors, such as Four Seasons Hotels, HongKong and Shanghai Hotels, and Starwood Hotels & Resorts. Therefore when analyzing this industry I will not be including cheap hotels, motels, lodges, or inns, unless to offer potential substitutes to luxury hotels. In order to assess the attractiveness of the upscale & luxury hotel industry, an analysis of the general environment surrounding the industry must be

These past few years, the lodging industry has been growing very significantly. “The global hospitality sector witnessed a strong appetite for growth in 2013, a trend that is set to continue and pick up pace in 2014” (Strong Performance Predicted for Global Lodging Industry in 2014, 2014). A decade before, there were no many options of the lodging accommodation. But with the massive growth of hospitality industry, lodging accommodations are now varied. Full-serviced hotels, hostels or dormitories and Bed & Breakfast are some of the examples.

The hotel industry is one of the most prolific industries in Australia due to its presence in society and, the impact it has on the nation’s economy. Advances in technology since the end of the 20th Century have allowed the service market of a hotel to develop rapidly (Hilton Melbourne South Wharf

“The capital of the world is in 23 different places”- this was the tagline used by the General Electric Company when it expanded its business in 1995. It is very valid for India as well. India is emerging as one of the leading economies of the world and the rate of growth in every sector of the economy is immense. The hotel industry is very sensitive to economic cycles and is therefore intrinsically linked to the state of the economy. At present, there are over 462 hotels in the country and the total number of rooms is around 58612. Hotel room supply has increased in 2010-11 by 15% while the nationwide occupancy has increased by 1.7%. Although the growth in supply is a double digit figure but the growth in occupancy signals the fact there

The arrival of low cost airlines and the associated price wars have given domestic tourists a host of options. The 'Incredible India' destination campaign and the recently launched 'Atithi Devo Bhavah' (ADB) campaign have also helped in the growth of domestic and international tourism and consequently the hotel industry.