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QUESTION

Write 7 pages thesis on the topic hotel and hospitality industry: the angelus hotel.

Write 7 pages thesis on the topic hotel and hospitality industry: the angelus hotel. Angelus Hotel started its operations since September 1999. It is part of an International hotel group called Saint Emilton Hotel Group (SEHG). Since the hotel is having 40 hotels in its portfolio in Europe and the Far East, therefore it can be safely assumed that the group is experienced enough in the business. It is being felt that hotel facilities are not being used to its fullest potential, therefore the General Manager, Robert Herr as asked Kati Mertens, the Front Office Manager to examine and prioritize the pricing strategy. Some of the key issues that Kati needs to look into are.

a. What type of visitor is coming to the Angelus Hotel? Is he a tourist or a business visitor?

b.Tourist visitors to fall into two categories. One from an affluent class, for whom price is no consideration, and he is on the lookout for comfort and pleasure. On the other hand, less affluent and middle-income group customers always desire reasonable pricing for a decent comfort. This sort of data can be gathered from feedback forms (for return customers) and by judging them through correspondence or at the front office. Accordingly, the differential pricing strategy can be prepared depending upon their economic background. The visitor who’s here on a tourism spree has the requirements for sight-seeing etc. Therefore, it is equally important the Hotel has a tie-up with some tour operators for such sight-seeing tours, etc. must be c. The business visitor on the hand requires a host of facilities like meeting rooms, conference facilities, Fax, Wi-Fi, Internet, PC, printer, projectors, flip charts, etc. Therefore rooms adjacent to conference rooms/ meeting rooms etc. can be priced accordingly. Moreover, the business visitors might be coming in groups for seminars or conferences and such groups expect group discounts.

d.During the lean period like January and February, the prices of hotels may be attractively discounted to accommodate as many visitors as possible. Initially, it may not look like that profitable but gradually as the customer base is widened, more and more customers start experiencing the world-class facilities, the prices can be accordingly revised. The gains in customer loyalty will be an immense gain for the hotel. To maintain certain standards and quality, the discounts be structured accordingly.

e.In line with the international systems prevalent in the hotel industry, the Angelus hotel should also devise the prices accommodative of breakfasts as well.

f.For frequent customers like Airline crew, event organizers, the hotel can offer special rates and facilities as well. During peak season these discounts can be reduced as well. This marginal hike will be well understood by such customers as they too are professionals in the field.

g.Existing figures show that the ‘Corporate’ market segment is the one giving maximum business to the hotel. But this segment happens to be very vulnerable and requires a lot of pampering. The moment they get a better rate and deal in some other hotel, they’ll all go in hordes to that rival hotel. Therefore it is equally important that the managers remain in touch with the market scenario as well, to get a feel of any such competition building up, and adequate plans of action must be readied as soon as possible to take care of such ‘threat’

Yield Management: Also known as ‘Revenue Management’ or ‘Real-time pricing’ is a scientific technique which involves managing the economics by calculating the best pricing and profits optimizing strategies. This technique was popularized by the US airlines industry in particular in the early 1980s when they started comparing the supply and demand scenarios and accordingly offered differential pricing. This all started with the introduction of low-cost airlines like ‘People’s Express and the liberalization programs.

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