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A REPORT
ON
Revenue generation process of Radisson BLU
By
Shashank Jaiswal
RADISSON BLU MARINA
CONNAUGHT PLACE
Submitted To:
Dean-Dr. Kirti Dutta
1
A REPORT
ON
Role of Revenue generation process of Radisson BLU
Radisson Blu Marina,
Connaught Place
Date of submission:25-7-2016
2
IntroductionRevenue is the life blood of a business. Revenue is concern with the profit of an organization intern of monitory
value. It is concern about financial environment to support business strategy.
Revenue management has become a somewhat controversial buzzword in our industry. As with many common
terms, revenue management seems to have 80’s thousands of hotel and just about every airline have used
revenue management successfully.as is my practice, I looked for a simple definition of how it came about, and
how it is being utilized .in strait forward terms, revenue managements a technique to optimized income revenue
from a fixed, but perishable inventory. The challenged is to sell to the right rooms to the right customer at the
right time right place.
Hotel Revenue Management is about becoming the architect of your own fortune. A hotel room is a perishable
product, since the number of hotel rooms is limited. As a result, customer satisfaction and pricing remain the
most important dynamic variables, which are subject to Hotel Revenue Management. It is all about balancing
demand and capacity by forecasting prices for the purpose of maximizing the effectiveness of hotels’ resources.
However, the rise of the internet during the 21st century (and with it the rise of Online Travel Agencies and
Review Portals) has added another dimension to this field. This development has made traditional Hotel
Revenue Management much more complex, while providing new ways to cheaply and objectively measure both
customer satisfaction and pricing.
An introduction to revenue management as a systematic process designed to increase revenue by leveraging
tools designed to manage length-of-stay and apply effective pricing strategies. Implementing a revenue
management strategy can be one of the most important revenue-generating initiatives available to a hotel,
significantly increasing room revenue and profits. This course provides an overview of revenue management
applications to the hotel industry designed to inspire a strategic shift to managing revenue per available room.
Revenue management is a systematic process designed to increase revenue by selling the right room to the right
person at the right time for the right price. In addition to evaluating different pricing models and applying
duration-management strategies, this course provides a foundation for more advanced revenue management
courses in forecasting, group management and overbooking, pricing strategy, and application of revenue
management techniques to other hospitality-related industries including spas and athletic facilities.
A hotel's Food and Beverage department is an exception if profit exceeds 20%. In both cases as hoteliers must
admit, administrative, marketing, maintenance and utilities expenses are not deductions from these margins.
Unlike our restaurant counterparts who must bear all these expenses directly we shuffle them off as Unallocated
Expenses. In the end it makes sense because most hotel Food and Beverage revenues are driven by the Rooms
Department's level of activity and our buildings and operational structures are not such that some expenses can
3
be isolated cost effectively. Can you imagine the time required to allocate the credit card commission expenses
for Food and Beverage charged to the guest rooms from those having to do with the Telephone Department and
room sales?
So what do I think the answer is to Food and Beverage profitability in a hotel environment? Increase hotel guest
usage, increase hotel guest average checks, and increase outside patronage from the community. You say those
things are obvious but do you have a mini-business plan for each of your Food and Beverage outlets? Does it
address those items? Is it funded, are all the departments' employees involved and excited about it? Are the key
players motivated with incentives to make the plans succeed?
4
ACKNOWLEDGEMENT
I would like to express my insightful gratitude to all those who have been instrumental in the preparation of my
project report. To start with, I would like to thank Dr. Urvashi Makkar, Director General, G.L. Bajaj Institute of
management and Research, for giving me the opportunity to do my Summer internship in Radisson BLU Hotel.
Thanks to Dr. Kirti Dutta, Dean, Mentor, GLBIMR for initiating and guiding the project with attention and care.
She has always been available for me to put on track from time to time to bring the project at its present form.
My deep sense of gratitude is due to Ms. Sonal Malhotra Associate Director of Marketing and Sales, Radisson
BLU for allowing me to carry out the Summer Internship and this project at the organization and to be
constantly available to me for the period, for guidance. She also helped me to see the subject of study in its
proper perspective. Thanks and appreciation is also due to the officials, employees and respondents of Radisson
BLU, for their support.
I deeply thank my Institution, Faculty members, parents & Friends without whom this project would have been
a distance reality.
Signature
Shashank Jaiswal
Place: Greater Noida
Date:25-7-2016
5
AUTHORIZATION
(To whomsoever it May Concern)
This is to certify that Enrolment no.PGDM15034-, student of G.L.Bajaj of Management and Research Greater
Noida, has undertaken his Summer Internship Program (SIP) from RADISSON BLU MARINA ,C.P for the
project titled “ Market Forecast and Planning Of Radisson BLU Hotel”under my supervision.
Ms. Sonal Malhotra
Associate Director of Sales
Radisson Blu Marina
Connaught Place Delhi.
6
Certificate
7
Certificate from Faculty Guide
This is to certify that Mr. Shashank jaiswal PGDM (2015-17 Batch) a student of G.L.Bajaj Institute of
Management and Research has undertaken the project on “REVENUE GENRATION PROCESS OF
RADISSON BLU”. The survey, data collection, & analysis work for preparing the project has been carried out
by the student in partial fulfillment of the requirements for the award of PGDM, under my guidance and
supervision.
I am satisfied with the work of Mr. Shashank Jaiswal
Faculty Mentor
__________________________
Dean-Dr. Kirti Dutta
Date:
8
EXECUTIVE SUMMARY
The purpose of making this report revolves around the study of Hotel Industries as a mode of revenue
generation. For collection of data, both primary and secondary sources have been incorporated. The
methodology followed includes extensive research where I have used various Statistical tools like Average
Room Revenue (ARR) method, Profitability Index, Occupancy Percentage and other such tools to evaluate the
scope and to find out the contribution of the various modes towards revenue generation. Analyze the customer
behavior who is help on take the decision of the hotel. The article emphasis on the different directions on hotel
Revenue Management research and is structured around the elements on the hotel RM system and the stages on
RM process. The elements on the hotel RM system discussed in the paper include hotel RM centers (room
division, F&B, function rooms, Spa & GYM and other additional services), data and information, the pricing
(price discrimination, dynamic pricing, lowest price guarantee) and non-pricing (overbookings, length, stay
control, room availability guarantee) RM tools, the RM software, and the RM team. The stages on RM process
have been identified as goal setting, collection on data and information, data analysis, forecasting, decision
making, implementation and monitoring. Additionally, special attention is paid to ethical considerations in
RM practice, the connections between RM and customer relationship management, and the legal aspect on RM.
9
Table of content
10
23 Comparison with Heritage hotels in India 33
24 Comparison with same inventory Hotels 38
25 Comparison with independent hotels 40
26 Comparison between budget and actual data 41
27 Revenue generation process of Radisson BLU 42
28 Room Rates 50
29 Food and Beverage, Mini Bar 51
30 Meeting Rooms and Spa 53
31 Conclusion 54
32 Bibliography 55
33 Suggestion and Recommendation 56
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CONTENTS PAGE NO.
1 Introduction 3
2 ACKNOWLEDGEMENT 5
3 AUTHORISATION 6
4 Certificate 7
5 Faculty certificate 8
6 Executive summary 9
7 Purpose , Scope, Objective and Methodology 12
8 Hospitality Introduction 14
9 About Radisson BLU 19
10 Hotel Sector Analysis 20
11 About Carlson Group 21
12 About Radisson BLU Marina 22
13 Mission ,vision ,credo 23
14 Key features 24
15 Literature Review 25
16 S.W.O.T Analysis of Radisson BLU 28
17 Introduce to sales and Marketing 29
18 Importance of Sales and Marketing team to a hotel 29
19 Structure and Hierarchy of Radisson BLU Sales
department
30
20 Role of Revenue Manager and Management 30
STUDENT INFORMATION
Name: Shashank Jaiswal
College: G.L. Bajaj Management and Research Greater Noida
Enrolment no: PGDM15038
Roll no: GM15077
Email id: [email protected]
ORGANIZATION DESCRIPTION
CONCEPT: Radisson Blu, formerly Radisson SAS, is an upper upscale brand for Radisson Hotels primarily
outside the United States, including those in Europe, Africa, and Asia. These are operated by Carlson Rezidor
Hotel Group.Radisson Blu Marina Hotel was build in 2010 located in the heart of New Delhi control business
district, It is ideal for corporate travelers.
INDUSTRY: Hospitality Industry
NAME: Radissbon Blu Marina
ADDRESS: G-59 Connaught place, Delhi
PROJECT DETAILS:
TITLE: Revenue generation process of Radisson BLU of Radisson BLU Marina Hotel
OBJECTIVE:
My primary objective was to study different sources from where hotel industries generate revenue. In this study,
my focus lies on the analysis part which identifies these specific areas and to justify the significance of their
contribution. To fulfill this objective, the methodology followed by me is subjective in nature which compiles
data collected through extensive research using both primary and secondary data.
BACKGROUND:
In this report we compare the performance of hotel not only with its past performance but also with the
following: 12
Overall Indian Hotel Industry
Heritage Hotels in India
Inventory (Number of Rooms)
Independent Hotels
Through this report we can also learn about the different sources of revenue generate which are used in hotel
industry. As we know each industry had different resources of generating the revenue.
PURPOSE
As a part of Summer Internship Program (SIP) of G.L.Bajaj Management and Research Greater Noida this
project is made to have an exposure to the corporate world and understand the actual working of the Sales and
Marketing Department at the hotel. The interim report is prepared in partial fulfillment of the report required for
Internship Program.
SCOPEThis study aims to review the mechanism of how hotel generate revenue and analyze customer behavior and
how we work in a team.
METHODOLOGYThe methodology used for research study is analytical and subjective in nature which requires controlling &
managing the inventory relevant data and compiling databases to achieve complete understanding of Sales
process in hotel.
Data types:
Primary source: Data collected from Radisson Blu’s software “Opera, Boss, Micros” and through individual
interactions with the employees and guest.
Secondary source: From the company’s website (www.radissonblu.com) and www.carlsonrezidor.com .
LIMITATION OF THE STUDY Presence of data constraints in their software.
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Secondary data used is not always reliable
Detailed research on all parameters is not possible due to time constraint.
HOTEL SECTOR ANALYSIS REPORT
Tourism has now become a significant industry in India. As per the World Travel & Tourism Council, the
tourism industry in India is likely to generate US $121.4 bn of economic activity by 2016, and the hospitality
sector has the potential to earn US $24 bn in foreign exchange by 2016. The booming tourism industry has had a
cascading effect on the hospitality sector with an increase in the occupancy ratios and average room rates. In
FY16, the occupancy ratio was around 57%, up 1% from last year. The average room rate decreased over the
last one year by about 3.4% due to supply pressures and the general slowdown in the economy. The long term
outlook for the Indian hospitality business continues to be positive, both for the business and leisure segments
with the potential for economic growth, increases in disposable incomes and the burgeoning middle class.
Government of India increased spend on advertising campaigns (including for the campaigns
'Incredible India' and 'Atithi Devo Bhava' - Visitors are like God) to reinforce the rich variety of
tourism in India. The new Indian government has stated that tourism will be a key focus sector.
As per Cushman & Wakefield (C&W) reports, hospitality sector of India is expecting to witness
better infrastructure growth. Approximately 4,304 new hotel rooms are expected to open in 2015, of
which 36% for Mid-scale, 13% in the upscale segment, 17% is expected for Budget segment, 13% in
Upper Upscale, and 20% in the Luxury segment
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Overview
In an industry where the major part of revenue is come from room revenue then constant eye on that part is
needed. In Hotel industry daily reports is generated whether we take trial balance or comparison with budgeted
figures. In this financial modeling in excel and regular review of financial performance is required so that
management can take correct decisions. Profit can be increased by either increase in revenue or savings in cost
and in hotel major cost is food so how efficiently hotel financially performs also depends on its food cost. It’s
help on forecasting and taking decision.
Introduction of Hospitality sector
The Indian Hospitality Sector is witnessing one of its rare sustained growth trends. Hotel industry is inextricable
linked to the tourism industry and the growth in the Indian tourism industry has fuelled the growth of Indian
Hotel Industry. A major reason for the demand for hotel rooms is the underlying boom in the economy,
particularly the growth in the information technology enabled services and information technology industries.
Categories of Hotels:
1. Star Category Hotels: 5 Stars, 4 Stars, 3 Stars, 2 Stars, 1 Star. 2. Heritage Category Hotels: Heritage Grand,
Heritage Classic & Heritage Basic
Approval of Hotel at the Project Stage:
The Ministry of Tourism will approve hotels at project stage based on documentation. Project
approval is given to a 1, 2, 3, 4, 5 Star Hotels and Heritage Basic Category. After becoming
operational the project may seek classification under 5 Star Deluxe/ Heritage Classic/ Heritage
Grand category if they fulfill the prescribed norms.
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Definition:
Be considered while awarding sub-classification classic or grand. Hotels cover running hotels in
palaces/castles/forts/Havelies/hunting loges/ residence of any size built prior to 1950. The facade, architectural
features and general construction should have the distinctive qualities and ambience in keeping with the
traditional way of life of the area. The architecture of the property to be considered for this category should not
normally be interfered with. Any extension, improvement, renovation, change in the existing structures should
be in keeping with the traditional architectural styles and constructional techniques harmonizing the new with
the old. After expansion/ renovation, the newly built up area added should not exceed 50% of the total built up
(plinth) area including the old and new structures. For this purpose, facilities such as swimming pools, lawns
etc. will be excluded. Heritage Hotels will be sub classified in the following categories-
Heritage:
This category will cover hotel in Residences/Havelies/Hunting Lodges/Castles/Forts/ Palaces built prior to
1950. The hotel should have a minimum of 5 rooms (10 beds).
Heritage Classic:
This category will cover hotels in Residences/Havelies/Hunting Lodges/Castles/Forts/ Palaces built prior to
1935. The hotel should have a minimum of 15 rooms (30 beds).
Heritage Grand:
This category will cover hotels in Residence/Havelies/Hunting Lodges/Castles/Forts/ Palaces built prior to
1935. The hotel should have minimum of 15 rooms (30 beds).
Room & Bath Size:
No room or bathroom size is prescribed for any of the categories. However, general ambience, comfort and
imaginative re adaptation would
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SPECIAL FEATURES:
Heritage :
General features and ambience should conform to the overall concept of heritage and architectural
distinctiveness.
Heritage Classic:
General features and ambience should conform to the overall concept of heritage and architectural
distinctiveness. The hotel should provide at least one of the under mentioned sporting facilities.
Heritage Grand:
General features and ambience should conform to the overall concept of heritage and architectural
distinctiveness. However, all public and private areas including rooms should have superior appearance and
decor. At least 50% of the rooms should be air conditioned (except in hill stations where there should be heating
arrangements). The hotel should also provide at least two of the under mentioned sporting facilities.
SPORTING FACILITIES:
Health Club provided the ownership vests with the concerned hotel.
CUSINE:
Heritage:
The hotel should offer traditional cuisine of the area.
Heritage Classic:
The hotel should offer traditional cuisine but should have 4 to 5 items which have close approximation to
continental cuisine.
Heritage Grand:
The hotel should offer traditional and continental cuisine.
17
MANAGEMENT:
The Hotel may be managed and run by the owning family and/or professionals.
Note: Classification in any of the above categories will be given keeping in view the overall standard of
the property. The hotel would be judged by the quality of service and the years of experience that the
owner/staff have had in the business.
GENERAL FEATURES:
There should be adequate parking space for cars. All public rooms and areas and the guest rooms should be well
maintained and well equipped with quality carpets/area rugs/good quality durries, furniture, fittings etc. in good
taste and in keeping with the traditional lifestyle. If carpeting is not provided, the quality of flooring should be
very good (This is not to suggest that old and original flooring whether in stone or any other material should be
replaced unnecessarily). The guest rooms should be clean, airy, pest free without dampness and musty odors,
and of reasonably large size with attached bathrooms with modern facilities (e.g. flush commodes, wash basins,
running hot and cold water, etc.). There should be a well appointed lobby and/or lounge equipped with furniture
of high standard with separate ladies and gents cloak rooms with good fittings
FACILITIES:
There should be a reception, cash and information counter attended by trained and experienced personnel. There
should be money changing facilities and left luggage room. There should be a well equipped, well furnished and
well maintained dining room on the premises and, wherever permissible by law, there should be an elegant, well
equipped bar/permit room. In the case of Heritage Grand and Heritage Classic Bar is “desirable in the case of
Heritage Basic.” The kitchen and pantry should be professionally designed to ensure efficiency of operation and
should be well equipped. Crockery, cutlery, glassware should be of high standard and in sufficient quantity,
keeping in view the lifestyle and commensurate with the number of guests to be served. Drinking water must be
bacteria free; the kitchen must be clean, airy, well lighted and protected from pests. There must be a
filtration/purification plant for drinking water. There must be three tier washing system with running hot and
cold water; hygienic garbage disposal arrangements; and frost free deep freezer and refrigerator (where the
arrangement is for fresh food for each meal, standby generator will not be insisted upon).
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SERVICES:
The hotel should offer good quality cuisine and the food and beverage service should be of good standard. There
should be qualified, trained, experienced, efficient and courteous staff in service and clean uniforms and the
staff coming in contact with the guests should understand English, Housekeeping at these hotels should be of
the highest possible standard and there should be a plentiful supply of linen, blankets, towels, etc. which of the
highest possible standard and should be a plentiful be of high quality. Each guest room should be provided with
a vacuum jug/flask with bacteria free drinking water. Arrangements for heating/cooling must be provided for
the guest rooms in seasons. Places which have telephone lines must have at least one phone in the office with
call bells in each guest room. Arrangements for medical assistance must be there in case of need. The staff/room
ratio must be in keeping with the number of guest room in each property. These hotels must be run on a
professional basis while losing none of their ambience and services. The hotel should be environment friendly.
The gardens and grounds should be very well maintained. There should be an efficient system of disposal of
garbage and treatment of wastes and effluents. The hotel should present authentic and specially choreographed
local entertainment to the guests. They should also have, wherever possible, arrangements for special services
such as wildlife viewing, water sports, horse/camel/elephant riding or safaris etc.
About Radisson Blu
Radisson Blu, formerly Radisson SAS, is an upper upscale brand for Radisson Hotels primarily outside the
United States, including those in Europe, Africa, and Asia. These are operated by Carlson Rezidor Hotel Group.
Scandinavian Airlines System (SAS) was previously a major shareholder in Rezidor Hotel Group and licensed
its brand for Radisson SAS hotels. Following the withdrawal of SAS from the partnership in 2009, the name
changed from Radisson SAS to Radisson Blu. The new brand is currently being introduced gradually across the
portfolio. In 2012, Carlson Hotels and Rezidor Hotel Group combined to form Carlson Rezidor Hotel Group.
Radisson Blu operates 158 hotels, with 42 projects in development History:
In 1960, The Royal Copenhagen, opened in Denmark designed by the Arne Jacobsen for SAS International
Hotels (SIH) - the hotel division of the Scandinavian airline group, SAS. Radisson SAS was created in 1994
when SAS International Hotels (SIH) joined forces with the Radisson brand for Europe, the Middle East and
Africa (EMEA) in a joint branding initiative. In 2000, Radisson SAS opened its hundredth hotel.
In 2002, Rezidor introduced the SAS Hospitality brand. Radisson SAS operated more than 150 properties at this
time in more than 40 countries throughout EMEA. By late 2006, Rezidor SAS, renamed The Rezidor Hotel
Group, IPO's on the Stockholm Stock Exchange. In 2008, The Rezidor Hotel Group had a total portfolio of
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over 360 hotels in 55 countries. When the name was changed in 2009, Gordon McKinnon, Rezidor’s Executive
Vice President of Brands, explained that the name Blu was choice from Rezidor’s research to find a new visual
differentiator to replace the familiar SAS „blue box‟.
“The name Blu started life as the projects working title. But it soon became apparent that it was actually the
most natural of choices. Its simple, its short, its relevant and we have applied it in a way that adds certain
modernity to the identity without taking it too far,” he said.
Most importantly it also promotes our specific brand heritage by preserving the graphic blue box which has
become the recognized symbol of the distinctive characteristics of the Radisson brand in Europe, the Middle
East and Africa. Radisson Blu preserves the continuity of our unique brand, while taking it that one essential
step forward to more accurately represent its true position and future ambitions.”
About Carlson group
Carlson Rezidor Hotel Group is an international hotel company, with headquarters in Minneapolis and Brussels,
Belgium. The Carlson Rezidor Hotel Group includes more than 1,300 hotels in operation and under
development in over 100 countries, employing over 88,000 staff. The hotel brands include Radisson Hotels,
Radisson Blu, Country Inns & Suites, Park Inns, Park Plaza Hotels & Resorts, Hotel Mission and newly
announced brands Radisson Redand the Quorvus Collection. The group has its roots in a partnership between
Carlson Companies and Scandinavianbased Rezidor. In most of the group’s hotels, guests can benefit from the
loyalty program Club Carlson SM. The group has more than 1,300 hotels in operation and under development in
100 countries and territories. It is the world's tenth largest hotel group. History: In 1938, Curtis L. Carlson
founded the Gold Bond Stamp Company in his hometown of Minneapolis, Minnesota. Over the next 75 years,
Gold Bond grew into an international travel and hospitality magnate, operating thousands of hotels, hundreds of
restaurants, and the world's leading business travel management company. Rezidor was originally the hotel
section of SAS Airlines; Rezidor opened the first hotel 1960 in Denmark, the Royal Copenhagen, designed by
Arne Jacobsen. The group developed from a regional player in Scandinavia to an international company. In
1980, Radisson SAS opened in Kuwait, the first to open outside of Scandinavia. In 1994, Rezidor signed the
first Master Franchise Agreement with Carlson for operation and development of the Radisson brand in Europe,
the Middle East and Africa. In 2002, the second Master Franchise Agreement followed for the Park Inn,
Country Inn and Regent brands in Europe, the Middle East and Africa. When SAS sold the hotel business in
2006 and Rezidor went public (listed at Stockholm Stock Exchange), Carlson became the largest shareholder
and is today the majority shareholder. Carlson and Rezidor launched their strategic partnership in January 2012. 20
Together, they target more than MUS$ 400 incremental revenue and a RevPAR index increase of more than 9
points by 2015. Focus areas of their global cooperation are Revenue Generation activities and alignment of their
core brands Radisson Blu and Park Inn by Radisson.
About Radisson Blu Marina Hotel, Cp
Radisson Blu Marina Hotel was build in 1937 located in the heart of New Delhi control business district,
Radisson Blu Marina Hotel Connaught Place is ideal for corporate travelers. One of the most convenient New
Delhi hotels in Connaught Place, this Delhi hotel is located within 20 minutes of several attractions, including
Red Fort, Akshardham Temple, Jama Masjid, India Gate, PuranaQuila and safdarjungs Tomb. For
accommodation in Delhi, The Radisson Blu Marina Hotel Connaught Place features 90 guest rooms and suites
with pure silk upholstery and 200-thread-count lines. All rooms include wireless Internet, LCD TVs,
complimentary newspaper, electronic safes and individual thermostats controls. Our convenient Business Center
complements our Club Lounge, the perfect place for business and social meetings. This business hotel in Delhi
features a range of exceptional services to meet the need of descending travelers in Delhi. Hotel amenities
include a full-service spa, well-equipped Fitness Centre, translation services and complimentary transportation
to shivaji Stadium Metro Station. The Delhi hotel features four on-site dining options for your convenience. For
great dining in Delhi, enjoy Indian cuisine at The Great Kabab Factory (TGKF), cocktails at Connaught,
international dining at Fifty9 and 24-hour room service.
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Industry Hospitality, Hotels, Tourism
Founded 1936
No. of locations 294
Headquarters Minneapolis, Minnesota and Brussels, Belgium
Area served World wide
Parent Carlson Rezidor hotel group
Owner of Radisson marina Mr. Shashank Bhagat
Mr. S.B.Mehta
Mr. S.S Kohli
Number of employees 70- 100
Website www.radissonblu.com
Mission
Radisson Blu’s mission is to provide YES I CAN service to the customer.
Vision
The most passionate team of hoteliers
The most innovative and responsible organization
The most dynamic hotel company in EMEA
The preferred hotel company to invest in and to do business with
Values
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Be professional, responsible, focused on qualitative service.
Deliver our brand promises and provide memorable experiences
Through honesty and integrity, empower employees at all levels.
We promise, we deliver results Hotel sector analysis.
Credo
Whateveryou do ,do with integrity
Wherever you go, go as a leader
Whomever you serve ,serve with caring
Whenever you dream , dream with your all
Never ever give up
Key Features of Radisson Blu
Yes I Can! When you stay at Radisson, you will experience our Yes I Can! Spirit of service that ensures that we are
always ready to greet, treat, and serve you in a way that exceeds your expectations.
100% Guest SatisfactionOur goal at Radisson is 100% guest satisfaction, which we guarantee. If you aren’t satisfied with
something, please let us know during your stay and we’ll make it right or you won’t pay. It’s guaranteed.
Online Price GuaranteeOn radisson.com, you will get the best price online - we guarantee it. When you book your reservation
on radisson.com, you can be confident you’ve gotten the best price for your next visit.
High –Speed Internet Stay connected at Radisson hotels with our High-Speed Internet. Plug into this great value and stay
productive.
Business Class
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Enjoy a Business Class stay, with upgraded amenities and services that help you work and relax. Book a
Business Class room for your next trip and discover how truly enjoyable your stay can be. Visit
radisson.com/business class for more details.
Grab & RunFor the busy traveler, enjoy our complimentary Grab & Run breakfast. As you leave the hotel, from 5
a.m. until the restaurant opens (at most locations), grab a cup of coffee, tea, or bottled water along with
fresh fruit and energy bars, all available in the lobby.
3 Hour Xpress LaundryNeed clean clothes in a hurry. Utilize our 3 Hour Express Laundry service. Just bag up your laundry, call
the front desk and we’ll return your items fresh, clean, and pressed within 3 hours.
Express Check-Out For our guests in a hurry, take advantage of Radisson’s Express Checkout, which offers the option of
sending an invoice by email, mail or a quick pick-up at the reception desk.
Literature review
The data for the above mentioned topic will be extracted from a combination of literature review which includes various
theses on related subjects, books and internet. Silky Vigg Kushwah, March 2014, International Journal of Advancement in
Technology. IILM Institute of Higher Education, New Delhi stated that service quality is the result of the comparison that
customers make between their expectations about a service and their perception of the way the service has been
performed. A number of experts define service quality differently. Parasuraman et al., (1985, 1988): Service quality is the
differences between customers, expectation of services and their perceived service. If the expectation is greater than the
service performance, perceived quality is less than satisfactory and hence, customer dissatisfaction occurs. Lewis and
Mitchell, Oakland and Asubonteng define service quality as the extent to which a service meets customers, need and
expectations. As per Asian Development Outlook, March 2007 the growing trend of service markets has prompted all of
the service businesses to improve their service quality in order to make customers satisfied with their services, especially
the hotel industry. Hotel operators now focus more on the quality standards in order to meet the basic needs and
expectations of the customers. Hernon & Whitwan, Delivering satisfaction and Service Quality have defined customer
satisfaction as a measure of how the customer perceives service delivery. They stated that customer satisfaction is a
function of service performance relative to the customer expectation. For this reason, it is important to understand how
customer expectation is formed in order to identify the factors of service satisfaction. Customer expectations are based
on their knowledge of a product or service. This can be implied that a customer may estimate what the service
24
performance will be or may think what the performance ought to be. If the service performance meets or exceeds
customers & expectation, the customers will be satisfied. On the other hand, customers are more likely to be dissatisfied
if the service performance is less than what they have expected. As stated in the Journal of Human Resources in
Hospitality and Tourism the service quality plays a very important role in the guest’s satisfaction with service. The study
also emphasizes on the involvement of people. Gundersen et al state that Guest satisfaction can be defined as a guest's
post consumption judgment of a product or service that can, in turn, be measured by assessing guests' evaluation of
performance on specific attributes. Rather than focusing on error reduction focus should be on improving and
maintaining customer quality. Kotler defined that satisfaction is a person’s feelings of pleasure or disappointment
resulting from comparing a product’s perceived performance (or outcome) in relation to his or her expectation.
Additionally Yi, also stated that customer satisfaction is a collective outcome of perception, evaluation and psychological
reactions to the consumption experience with a product/service. Pezeshki Vahid, September-2010,Three dimensional
modeling of customer satisfaction, retention & loyalty towards product
MINNEAPOLIS (June 5, 2016) -- Country Inns & Suites By CarlsonSM, a leading uppermidscale hotel brand, today
announced the opening of Country Inn & Suites By Carlson, Ruston, LA. Located at 1825 Roberta Avenue, the hotel offers
82 guest rooms and suites, and is two miles from Louisiana Tech University and five miles from Grambling State
University. “We are pleased to see continued growth of the Country Inns & Suites brand across the south,” said Jeffrey
Freund, senior vice president, Midscale Brands, Americas, Carlson Rezidor Hotel Group. “The hotel is nestled in Ruston’s
attractive Historic District, making it an ideal choice for families visiting the nearby universities.” The hotel is located off I-
20 and is 30 miles from Monroe Regional Airport (MLU). The hotel is also less than 10 miles away from popular
attractions, such as Louisiana Military Museum, Dixie Center for the Arts and The IDEA Place, a math and science
discovery center for kids. Guests of the hotel have access to free wireless high-speed Internet, a business center, an
outdoor pool, and a well-equipped fitness center. A 528-square-foot meeting space is also available for business
meetings or small gatherings. The hotel also offers the brand’s signature and complementary, hot Be Our Guest
breakfast served daily on classic dining ware. Selections are rotated daily and range from hot oatmeal and eggs and
bacon to build-your-own options like omelets and yogurt parfaits. “We are excited to open our doors under the Country
Inns & Suites brand,” said Michael Gahagan, the hotel’s general manager. “The hotel’s prime location, coupled with the
Be Our Guest service culture are sure to make guests feel at home.” Country Inns & Suites offers a caring, consistent and
comfortable hospitality experience delivered with a touch of home, and features particularly attractive for business
travelers. The distinctive product and service innovations, such as the Be Our Guest employee training program have
generated tremendous employee engagement scores and high guest satisfaction. For reservations and more
information, visit www.countryinns.com.
MINNEAPOLIS (June 30, 2016) – Country Inns & Suites By CarlsonSM, a leading uppermidscale hotel brand, today
announced the opening of Country Inn & Suites By Carlson at Carowinds, in Fort Mill, SC. Located at 3540 Lakemont
25
Boulevard, the hotel offers 80 guest rooms and suites. “We are thrilled to showcase the latest addition to the Country
Inns & Suites portfolio as the brand continues accelerated expansion,” said Jeffrey Freund, senior vice president,
Midscale Brands, Americas, Carlson Rezidor Hotel Group. “The hotel’s proximity to Carowinds Amusement Park,
Charlotte Convention Center and Charlotte-Douglas International Airport makes it a perfect choice for travelers to the
area.” Country Inn & Suites By Carlson at Carowinds is also within close proximity of downtown Charlotte. The hotel
offers guests access to the brand's signature and complimentary amenities including free high-speed Internet, an
outdoor swimming pool, fitness center and business center. Guests of the hotel can also begin their day with the brand’s
signature and complimentary, hot Be Our Guest breakfast served on classic dining ware. “We are delighted to open our
hotel under the Country Inns & Suites brand,” said Akshar Patel, the hotel’s owner. “The hotel’s ideal location combined
with the amenities and welcoming service the brand is known for will help ensure a great guest experience for all.”
Country Inns & Suites offers a caring, consistent and comfortable hospitality experience delivered with a touch of home,
and features particularly attractive for business travelers. The distinctive product and service innovations, such as the Be
Our Guest employee training program have generated tremendous employee engagement scores and high guest
satisfaction. For reservations and more information, visit Countryinns.com. It is hard to give a single universal definition
for a luxury hotel for the simple reason that it is even harder to first explain what exactly is entailed in the word luxury
(Danziger, 2005). Luxurious experiences are largely interconnected with each person’s hopes and dreams, which, as
described in utterly fancy terms by some scholars, are tied to individuals striving to reach self-actualization and self-
fulfillment through greater knowledge, appreciation of beauty, spiritual sophistication, peace, art, culture and aesthetics
(Michman & Mazze, 2006). This makes “luxury” a highly subjective notion since people are different regarding ethnical
belonging, culture of origin, educational background and personal experience (Becker, 2009). One person’s luxury can be
another person’s necessary, vice versa. Nevertheless, the lexical abstractness did not stop researchers from trying to
understand it and many have talked about their study results about luxury ideals in published articles, each having a
unique angel (Talbott, 2004). Danziger (2005) categorized luxury into four dimensions that place luxury ideals into
perspective, that is, “luxury as a brand”, “luxury as luxe product features”, “luxury as non-necessities”, and “luxury as the
power to pursue your passions”. Obviously, luxury hotels, as substantial existence of certain established luxury brands,
fall into the “luxury as a brand” category, which is about individuals consuming luxury products and services because
they are perceived as a symbol of luxury and the best quality (Danziger, 2005). The same dimension applies to the
general luxury industry, where we have spotted various products like clothing, jewelry and cars, and luxury brands like
Gucci, BVLGARI, and Rolls Royce (Becker, 2009). “Luxury as luxe product features” looks on the specific 9 attributes of
the product or service, which in our case means such things like the inner and outer décor of the hotel building, or the
quality and fanciness of hotel amenities. The third dimension, “luxury as non-necessities”, defines luxury as something
above the basic need. For hotel industry, accommodation and food are the basic needs, whereas four- or five star hotels
that provide services more than just that are considered luxury (Becker, 2009). The last dimension, “luxury as the power
to pursue your passions,” refers to the purchase of luxury products to make life more comfortable, examples like spa 26
treatment. To conclude, all four dimensions of luxury apply to luxury hotels and explain the foundation of people’s need
for luxury and what customers essentially expect from a luxury hotel experience (Danziger, 2005). Other scholars, like
Kapferer (1997) presented the semiotics of the word “luxury” as “ Luxury defines beauty; it is art applied to functional
items,” which emphasize that luxury products as an art form brings more psychological satisfaction, like esteem on the
owner, than functional utility. In the book, Luxury and the Hotel Brand, Bernstein (1999) suggested that luxury be
defined as a form of waste and quoted William Tabler, arguably the most influential architect in functional American
hotel, that “luxury is simply not necessary at any level.” This takes us back to what has been mentioned before: one
person’s luxury might be another’s necessary, vice versa. Laurence (1999) concluded luxury has different meanings and
connotations under different circumstances. While the hospitality and tourism industry arose through the growth of
capitalism, freedom and tentative relations to geographic areas, which increased the need for travel accommodations
(Sandoval-Strausz, 2007), the luxury hotel industry has progressed as an outlet for travelers to dream of and fantasize
about other lifestyles (Curtis, 2001). It is for this reason that the luxury hotel industry places a large focus on the guest
experience along with their satisfaction. That is, luxury is more of an experience than a product. 10 Barbara Talbott
(2004), former Chief Marketing Officer of Four Seasons Hotels, suggested that there are four key factors that contribute
to a luxury hotel experience; style, comfort, service, and pampering. In this way any hotel, either chained or
independentlyowned, rated or non-rated, can be considered as a luxury one as long as it suffices whatever is required in
the four dimensions and the four key factors. Nevertheless, most of the studies on luxury hotels only checked those
rated as four- or five- star hotels, because for one thing, four- and five- star hotels are highly competitive, are described
in superlative terms and far exceed normal expectations in design, level of luxury, service, elegance and uniqueness
(Mobile Travel Guide, 2013); For the other, most of the rated hotels are part of a larger chained hotel group and it is just
easier to get data from these hotels. But apparently, there are good loads of privately owned hotels, though not globally
branded, that still live up to the criteria of being a luxury one. Hotel Rating System in the U.S. Although the United States
embraces a highly developed hotel rating system as a result of a dynamic hotel industry, there is no official hotel rating
system, and only nonofficial system existed. The two most prestigious U.S. hotel rating systems are from American
Automobile Association (AAA) and Forbes Travel Guide (formerly known as Mobile Travel Guide).The AAA Diamond
classification lists lobby design features for a four-diamond hotel as: Area size and placement of appointments provide
an obvious degree of spaciousness allowing increased ease of movement for many guests; Multiple conversational
groupings, including one or more privacy areas; Identifiable guest service area and bell stand (American Automobile
Association, 2008, p. 12). Five-Diamond hotel lobbies are featured as: 11 Area size and placement of appointments
provide a free flowing abundance of space that contributes to the ultimate level of comfort and relaxation for many
guests; Identifiable concierge area. (American Automobile Association, 2008, p. 12) The guestrooms, according to the
AAA Diamond requirements for a four-diamond hotel, “reflect current industry standards and provide upscale
appearance” (AAA, 2008, p. 17). For a Five-Diamond hotel, the guest rooms are required to reflect the same standards
and provide a luxury appearance. Further information about the AAA diamond standards can be found in Appendix A. 27
The Mobil Travel Guide’s five star system indicates that the design features of five star hotels include well–furnished
guestrooms, fitness facilities, often with at least one pool, and usually having restaurant dining available on site (Mobile
Travel Guide, 2013). The design features of five-star hotel include extravagant lobbies, with stylish furniture, and quality
linens in guest rooms often along with technological entertainment devices, Jacuzzis and/or garden tubs, and possibly
heating pools. Some examples of fivestar hotels are Mandarin Oriental Hotel in Miami, FL, the Four Seasons in Chicago,
IL and The St. Regis, San Francisco, CA (Forbes Travel Guide, 2014). More information about the Mobil Travel Guide’s star
ratings can be found in Appendix A. It is imperative to understand that star ratings available on online travel websites
such as Travelocity, Expedia, Orbitz, Priceline, and Hotwire are somewhat different from the Mobil Travel Guide’s star
ratings. Booking websites often create their own criteria for star levels, but they typically refer AAA, Forbes Travel Guide
ratings, along with customer feedbacks (Becker, 2009). 12 Rise of Luxury Hotels Hotels are one small piece of the broad
picture of hospitality industry, which arguably derived from the need to receive and cater to people temporarily away
from their home who in another word are called travelers (Dittmer, 2001). With the start of industrial revolution, which
brought tremendous technological advance to the world, including invention of long distance transportation vehicles like
ship, hotels began to be built across Europe and the U.S. on account of dramatic increase of travelers and migrants. The
word “hotel”, when it first came to the United States in the late 18th century, was defined as taverns and inns that serve
upper class clients (Sherman, 2007). Tremont hotel in Boston was opened in 1829, and has long been believed to be the
first modern upscale hotel in U.S that was furnished with “inside toilet, locks on the door and an “a la carte menu”. In
New York City, the Holt Hotel was the first to provide its guests with a lift for their luggage whereas the New York Hotel
was the first to be equipped with private bathrooms (Levy-Bonvin, 2003). Ever since then, more and more hotels like
Tremont hotel were built around the U.S. and other corners of the world until the Great Depression in 1930s. Before the
depression, the level of luxury in those hotels had been proved to have a close relationship with the extent of
technological achievements at the time. In her book, Class Acts: Service and inequality in luxury hotels, Rachel Sherman
(2007) described this process of technological evolution: “The Tremont and other hotels that followed it … demonstrated
impressive technical achievement in architecture, services, and amenities. In the early years, there included gas lighting,
private rooms, and indoor plumbing; later, hotels introduced electricity and elevators marveling guests. (p. 26) 13 At this
time luxury hotels were defined, as illustrated in Sherman (2007), by large size, tasteful aesthetics, cleanliness, high-
quality food, and prime location, as well as the privacy and security they afforded and service marked by faultless
personal attention. In the book there was an interesting description of what the highest achievement of a first class hotel
should be like, which is that “each guest may easily fancy himself as prince surrounded by a flock of courtiers”
(Sherman). Nevertheless, this definition was later considered “obsequious” and “racialized”, and was replaced with a
new ideal of “personalized service” (Sherman, 2007). The old selling point of technological innovation also gave ways to
managerial concerns in such grand hotels like the Waldorf-Astoria. In the 1950s, palace hotels declined substantially with
the advent of “motor hotel” on the roadside due to the growing national highway system and suburbanization (Sherman,
2007). In the 1960s, convention hotel boomed. Limited service and budget hotel emerged in 1970s. At this time hotels 28
began to offer fine dining. The returning point for upscale full-service hotels happened after 1980s when the rising
international travel boosted the demand to cater for wealthier clientele (Levy- Bonvin, 2003). Some popular examples
include the Ciragan Palace in Istanbul. That seemed to be an era when the development of luxury hotel industry was a
global scene. International chains were expanding across Europe, the Middle East, and Asia. Far East countries such as
China and Japan began to develop luxury hotels for wealthy tourists and business travelers (Dittmer, 2001). Meanwhile,
the diversification of the whole industry fostered segmentation and branding, which further codified the luxury segment.
New ideas of luxury came to the force, including concierge services, laundry, fitness center and spas, and others.
International luxury chains appeared at this time as well (Sherman, 2007). 14 The luxury segment continues growing in
the years after in spite of intermittent recessions, like the one between 1980s and early 1990 (Sherman, 2007). In 1995,
construction began in Dubai on one of the most luxurious hotels in the world, the Jumeirah Beach Hotels, which boasted,
“they offer a five-star lifestyle destination that’s dedicated to delighting senses of every guest” (p. 33). In 1997, the
Hotels Adlon in Berlin was renovated to be much like its luxurious heritage that was destroyed in the Second World War.
In 2004, the new Emirates Palace Hotel in Abu Dhabi was built aimed to offer the most exceptional services. The idea of
personalized service in luxury hotels has been redefined again and again by hoteliers of various luxury establishments
around the world (Sherman). Until today the luxury hotel has evolved to the point where all involved in the design,
building, and management, are catering to the tastes, preferences and desires of their guests. They continue to follow
new styles and adapt to meet changing trends. Overview of the Global Luxury Hotel Industry Market segmentation The
lodging industry sector is generally classified into six categories: luxury hotels, upper-upscale, upscale, upper-midscale,
midscale and economy (Miller et al, 2013). The current study examined the luxury hotel segment, which can be further
divided into luxury major, luxury exclusive and upper upscale (The World Luxury Index, 2013). Luxury major refers to
luxury brands of a major integrated chain, examples including Sofitel, Ritz Carlton, and many others. Luxury exclusives
are luxury brands of a small/ medium sized exclusive luxury hotel chain, such instances being Four Seasons, Kempinski,
Mandarin Oriental, etc. (The World Luxury Index, 2013). 15 Upper upscale brands are primary segments from integrated
chains such as Hilton, Hyatt and Sheraton. Bobby Bowers, Senior V. P. of Smith Travel Research, stated, “Upper upscale
hotels are among the most challenging to finance, develop, and operate. These properties involve significant risk,
barriers to entry are often formidable, and development and construction time is lengthy” (Miller et al, 2012). Upper
upscale is also included as part of luxury category due to the fact that “luxury” is a very subjective notion and no single
criteria could comprehensively define whether a property is luxury or not. Hotels like Hilton and Hyatt are obviously
luxury in a lot of people’s eyes even they are specifically categorized as upper upscale in the academia of hospitality
management. Branding of luxury hotels To better understand luxury hotel segmentation, the current author selected
one brand from each segment of luxury hotels to explain its characteristics and brand focus. Hilton, No.1 Upper Upscale
Chain hotel brand (in all categories) with 22.8% of Global demand, operates more than 550 Properties with a total of
193,064 Rooms in 80 countries in 6 Continents (World Luxury Index, 2013). Hilton brand enjoys strong brand awareness
and brand recall in most of its key markets where it operates, including U.S. (87%), Mexico (90%), Europe (91%), and Asia 29
Pacific (90%). In addition, Hilton has a diverse profile of Convention Center Hotels, Resorts, Airport Hotels and Casino
Hotels with a global sales mix: 34% Leisure, 32% Business, and 34% Group (Miller et al., 2013). Representative in the
category of luxury exclusive, Four Seasons is the top sought after exclusive hotel brand, with 4.8% of global demand. The
fastest growing market of Four Seasons is in the U.K., with a growth rate of 12.4% (World Luxury Index, 2013). Four
Seasons manages the operations of 90 hotels in 36 countries and is only targeted at 16 the luxury segment of the global
marketplace. Four Seasons derived 69% of its sales from business travelers and groups and 31% from the leisure sector
(Timetric, 2013). The top hotel in luxury major category is Ritz- Carlton, which embraces 4.6% of global demand. Ritz-
Carlton has become a leading luxury hotel brand by rigorously developing and implementing unique standards. One of
its remarkable policies is to permit every employee to spend up to $2,000 to respond to guests’ wishes and making any
single guest satisfied (World Luxury Index, 2013) Summary of Studies in Hospitality Management Summary studies, also
called review studies, have become a common practice in a great diversity of areas, tourism and hospitality management
included (Tsang & Hsu, 2011). There are even specified journals, such as The Hospitality Review (FIC) that encourage
scholars and researchers to submit academic review articles. The analyses in these studies can be classified into three
major streams: authorship and institutional contribution analysis; research method analysis; and profile analysis. The
first stream refers to identifying the authors or institutions that produced the greatest number of research articles, with
the primary purpose of ranking institutions and authors (Jogaratnam et al., 2005). Research method analysis refers to
analyzing research within the discipline by looking at statistical methods used (Palmer et al., 2005). Profile analysis refers
to summarizing the work that has been published, the topics covered, and the places of publication. Previous studies
have focused on such elements like subject matter, research design, country of origin, and statistical technique. For
example, in their review of tourism research in China, Tsang and Hsu (2011) focused on research theme, discipline,
institutional contribution, authorship information, and research method. The identification 17 of articles included journal
title, year of publication, name of author(s), author type (university faculty, students, or industry professionals), and
institution(s) of the author(s). As advised by existing hotel studies using content analysis, the methodology of systematic
review can be concluded as follows. The first section is to list the databases and citation indexes searched as well as any
hand searched individual journals (Tsang, & Hsu, 2011). Next, the titles and the abstracts of the identified articles are
checked against pre-determined criteria for eligibility and relevance. This list depends on the research problem. This
process will be described in greater details in the next section. While many systematic reviews are based on an explicit
quantitative analysis of available data, there are also qualitative reviews that adhere to the standards for gathering,
analyzing and reporting evidence (Systematic Review, n.d). Five Steps in a Systematic Review From previous discussion, a
systematic review is defined as the methodology for searching and screening existing research articles, analyzing data,
and colleting evidence from which to gain an idea of what is known and not known about the subject matter (Denyer &
Tranfield, 2009). Khan et al (2003) proposed five steps for conducting systematic review, which worked as the guideline
for the current study. Step one – framing questions for a review. The review problems to be addressed need to be
specified in the form of clear, unambiguous and structured questions. Once the review questions have been set, no 30
modifications to the protocol should be allowed unless there is an apparent need for alternative ways of defining the
populations, interventions, outcomes or study designs. This has been accomplished in the research question section of
the first chapter. 18 Step two – identifying relevant work. The search for studies should be extensive. The study selection
criteria should flow directly from the review questions and be specified a priori. Reasons for inclusion and exclusion
should be recorded. This can be found at the sampling and data collection part of Chapter 3. Step three – assessing the
quality of studies. Study quality assessment is relevant to every step of a review. These detailed quality assessments will
be used for exploring heterogeneity (Khan et al, 2013) and informing decisions regarding suitability of data analysis. In
addition they help in assessing the strength of inferences and making recommendations for future research. Step four –
summarizing the evidence. Data synthesis consists of tabulation of study characteristics, quality and effects as well as use
of statistical methods for exploring differences between studies and combining their effects. Step three and four will be
involved in the Chapter 4, which reports on the result and discussion of the data. Step five – interpreting the findings.
The issues highlighted in each of the four steps above should be met. The risk of publication bias and related biases
should be explored. Any recommendations should be graded by reference to the strengths and weaknesses of the
evidence. This is included in Chapter 5, the chapter of conclusion and discussion.
S.W.O.T. of Radission Blu Marina
Strengths - characteristics of the business or team that give it an advantage over others in the industry.
Weakness - are characteristics that place the firm at a disadvantage relative to others.
Opportunities - external chances to make greater sales or profits in the environment.
Threats - external elements in the environment that could cause trouble for the business.
Strengths of Radisson Blu Marina
Radisson BLU is a Big Brand its brand value more than other Hotels and it is International brand so it is also
famous in foreign countries. Radisson has different category of rooms and prizes. Radisson is in Centre of
Delhi. It is near from the domestic airport also near to high court,,Pragati madan, Bangla sahib and New Delhi
Railway is also near to Radisson BLU Marina. F&B is also big strength of the Radisson. Radisson has different
outlets like FIFTY9, The Great Kebab Factory, Connaught bar is located inside the hotel. The lounge is the
perfect spot for those unhurried business meetings. Sohum SPA is also in Radisson.
weakness of Radisson Blu Marina
31
Radisson has only 90 rooms in a hotel.it is not a big hotel. The reservation has to deny guests due to limited
inventory. The hotel has base category, superior rooms and suits. The numbers of superior category and twin
bed rooms is limited in the hotel.Due to low inventory, the hotel incurs a high fixed cost per room. In hotel has
very less staff in every department. Which can make efficient in terms of cost, efficiency in work suffer.
Opportunities of Radisson Blu Marina
It is business class hotel and near to corporates offices so easily makes the connection and better branding of the
hotel has now transformed from marina hotel to Radisson blu marina hotel in 2010. The management has come
up with some service standards to offer some more services to their guests. It is heritage hotel so guest has taken
the experience of the hotel. The hotel has a proximity to the domestic &international Airport, Gurgaon and the
Central Delhi. These parts can easily be accessed from the hotel.so more corporate can be targeted. It is in
Connaught place which also increase the corporate customer.
Threats of Radisson Blu Marina Hotel
The hospitality area of international airport, New Delhi will be coming up with numerous hotels that would give
competitions on basis on price, service and location. No parking area for the guest. Radisson has less inventory
so they can offer rooms all low rates to clients as they can make over the fixed cost easily.
Introduction to Sales and Marketing
Sales- Sales basic function is to generate revenue for the company. It revolves around reaching to customer.
Convince them to stock your product, give them discount to sell product to end consumer, achieve monthly
sales target and keep everyone happy.
Marketing- Marketing revolves around creating desire among customers to consume your product and there
are many ways. Marketing function splits into the sales and other function like market research, advertising,
physical distribution.
Importance of Sales and Marketing team to a hotel. High competition among the hotels, need the
competent team of Sales and Marketing to promote the product among the competitors.
Main Responsibilities
-Responsible for building the image of the organization among the Guests
- Responsible for putting up a effective sales and marketing plan
32
- Responsible for carrying out market research products development campaign etc.
- Responsible for finding new segment in market
- Responsible for bringing business and helping out finance department to achieve the set target.
Radisson Blu Marina is a business class hotel so they direct approach to the corporate for selling room .it is also
sale meeting room for profit. In Radisson Blu there only have 90 rooms. Radisson Blu Marina near to corporate
so easily sells the room. It is also sells the outlets and membership of the hostel. In Radisson my work was
approached to the corporate and aware of the hotel for the future requirement. In sale we give special rate to the
corporate client for taking business it is also called B2B business.
Management’s Role in Marketing and Sales
Role of Director Marketing
Responsible for carrying out a marketing plan throughout the year
Conducting sales promotion plan with the help of Director sales
Responsible for identifying new segmentation of the market
Responsible for identifying new opportunities
Responsible for redirecting & modifying strategic that are not working well
Other managerial function
Role of Director Sales
Responsible for applying marketing strategic and directing the sales staff
Responsible for putting up sales plan throughout the year
Responsible for guiding the sales team accordingly
Responsible for identifying new opportunities.
Structure and Hierarchy of Radisson Blu Sales department 33
Role of Revenue Manager and Management- Revenue manager is work how to generate the revenue
of the hotel. They manage both the section reservation and online section both. They according to our
competitor they change the room prize. They is also give the BAR (Best Available Rate) of the day. According
to the situation change the rack rate. As revenue management has developed, it has become more disciplined
and technical in using a variety of analytical to predict consumer demand, and to optimize the inventory and
price availability to maximize revenue. The essence of this discipline is in understanding the customers
‘perception of product value and accurately aligning product prices, placement and availability with each
customer segment.
The hotel industry recognized the benefits of adopting a revenue management approach as practiced by the
airline sector but initially growth of the technique was held back by the lack of appropriate technology available
34
General Manager
Associate Director of Sales
Revenue ManagerSales Manager
Asset Sales Manager Reservation Manager
to manage data and the shortage of meaningful information about guests. The final challenge to overcome was
how to manage the length of stay a feature which is different to that experienced by the airlines.
ARR (average room Revenue) it function calculate the revenue of the different rooms rate in average and its
formula is
ARR = Total room revenue
Room Inventory
Occupancy percentage is one of the most common performance measures in the lodging industry. it express the
proportion of rooms sold to total rooms. An occupancy percentage is calculated by dividing the total number of
rooms available
The formula is:
Occupancy Percentage = total no room sold *100.
No of rooms
Forecasting- Forecasting as an act of estimating, calculating, or predicting conditions in the future. That in
this point forecasting is one of the cornerstones of revenue management. Some typical demand generators are
corporate offices, convention centers, sporting arenas, meeting venues, resorts and recreational activities,
government and military installations, shopping centers, and special events.
In Radisson we are forting through of travel agency, old record and events .we are check and confirm last year
event also in have this year and don’t after that we forecast. In Radisson Blu winter season comparison to
summer rooms occupied more.
35
Comparison with overall Indian Hotel Industry
Occupancy and Average Rate: The average rate for 2015-16, os`4,789, showed a modest improvement
over that last year (`4,729), which was previously the highest since 2009-10. Hotel occupancy, too, increased to
61.3% after two years of stagnation at 60.4%.
Source: HVS- FHRAI- Indian Hotel Industry survey report 2015-16
Comparing that with Radisson Blu Marina Hotel if found the hotel is performing much better as we can see
below the occupancy percentage is 89% in the same period and it grew by slightly in next year.
But we saw a sharp decline in Average rate from 2012-13 to 2014-15. The rate is 5686 in 2015-16 as compare
to over 6298 in 2012-13. This rate is above the overall average rate.
From this we can say that hotel is getting more guests and charge slightly high rate as compare to other hotels in
India.
2012-13 2013-14 2014-15 2015-160%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
5200
5400
5600
5800
6000
6200
6400
74%
86% 87% 89%6298
5928
5717 5686
OCCUPANCY PERCENTAGEAVERAGE RATE
36
Revenue Structure:
2012-13 2013-14 2014-15 2015-160%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
55.2 52.2 51.3 50.9
38.3 41.2 41.9 42.6
6.5 6.6 6.9 6.6
OTHERSF&BROOM
The last few years witnessed a steady decline in the contribution of revenue from Rooms while that from F&B
continually improved; this trend was observed in the current year too . However, 'Other' sources of income saw
a decline from 6.9% in 2013-14 to 6.6% this year.
2012-13 2013-14 2014-15 2015-160%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
73 72.41 70.92 68.47
22.31 23.38 27.89 29.99
4.69 4.21 1.19000000000001 1.54
OTHERSF&BROOM
37
Comparing that with Radisson Blu Marina Hotel it explains that the revenue contribution (in percentage of total
revenue) from Rooms has seen a steady decline over the last five years. Going forward, as the competition
further increases in the market with the entry of new supply, we expect F&B revenues to continue to contribute
a large portion of gross revenues as they are not solely driven by occupancies. Additionally, the burgeoning
middle class and its propensity to spend will continue to augment demand for F&B across cities in India. With
hotels focusing on the Banquets & Conferences segment in off-season months to beat seasonality, this
department is also anticipated to increase its contribution to the total revenue pie.
Now if I see the revenue mix of Radisson Blu Marina Hotel in the year 2012-13 rooms were contributed 73% to
total revenue which is greater than industry average but when we come to Food and Beverages it is low but in
the year 2015-16 it increased and industry also predict that in coming years F&B will contribute to revenue
more.
Miscellaneous Operating Department (MOD) which includes business centre, smoke, laundry, telephone etc.
contribute around 1.54% which is much less as compare to 6% of industry this is concern for hotel due to this
they have to see this issue in future.
Comparison with Heritage Hotels in India
Radisson Blu Marina Hotel comes under heritage category of hotels. Then it is quite reasonable to compare the
performance of hotel with all other heritage category hotels. Below diagram shows the comparison of
occupancy ratio between them. From the graph it is clear that the Radisson Blu is performing above average.
The occupancy percentage of hotel is almost 30% extra than the average of heritage hotels. Occupancy ratio is
calculated by number of rooms occupied in your hotel with total number of rooms. Radisson Blu is getting more
occupied rooms than the other heritage category hotels.
38
AVERAGE RADISSON DELHI AVERAGE0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
61%
89%
63%
OCCUPANCY
OCCUPANCY
Average rate is calculated with the help of following formula:
Average Rate = Rooms Revenue / Rooms Occupied
When revenue of the hotel is increasing its average rate will increase and it is
AVERAGE RADISSON4200
4400
4600
4800
5000
5200
5400
5600
5800
4789
5655
AVERAGE RATE
AVERAGE RATE
39
a positive position for hotel. Below shows the comparison between heritage hotels average rate and Radisson
Blu average rate.
From the above graph it is clear that Radisson hotel is performing better than its competitor’s Average rate of
Radisson is 5655 as compare to 4789 of heritage Hotel’s average. This shows that revenue of Radisson is high
as compare to its competitors.
ROOM F&B OTHERS0
10
20
30
40
50
60
70
50.9
42.6
6.6
68.47
29.99
1.54
AVERAGERADISSON
Revenue mix of hotel is also very important part in financial performance. As we can see in above chart
Radisson if getting room revenue in good numbers but when we see MOD Radisson could be more precise and
quickly action took.
In Food & Beverages also they must take action since its below the heritage hotels average mark. In future we
can see some action in regarding policy towards food and beverages and MOD towards how to increase their
share in revenue mix. Maintain the level of current room revenue so that it is not getting below from average of
heritage hotels.
Comparison with same Inventory (Rooms) Hotels
Radisson Blu Marina Hotel is situated in Connaught Place area at outer circle due to which it had not only 90
rooms. FHRAI divide hotels into the intervals of less than 50 rooms, 50-150 rooms and more than 150 rooms
hotel. We take second category because our hotel comes under that. 40
First we compare the occupancy percentage between them. From the graph below it seems Radisson is
performing good when it compare to its competitors with quite same numbers of rooms. Occupancy percentage
shows the efforts of hotel to get more customers. It is calculated by dividing the number of rooms occupied by
total number of rooms in hotel.
Higher occupancy percentage shows that hotel have less number of vacant rooms. Which increases the revenue
and profit is concern.
50-150 ROOM RADISSON (90)ROOM
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
66%
89%
OCCUPANCY %
OCCUPANCY %
AVERAGE RATE
Average rate of Radisson Hotel is also high from other hotel and if they maintain this rate it is good for the
hotel. The average rate of Radisson is 5686 as compare to average of other hotels 5640. It is slightly more from
the other hotels which have same numbers of inventory.
41
RADISSON AVERAGE5610
5620
5630
5640
5650
5660
5670
5680
5690 5686
5640
AVERAGE RATE
AVERAGE RATE
Comparison with Independent Hotels
Radisson Blu Marina Hotel which is associated with Radisson blu chain hotels. Normal phenomenon in Hotel
Industry is that those hotels which are associated with famous brands are performing better than independent
hotels.
RADISSON INDEPENDENT HOTEL0
1000
2000
3000
4000
5000
6000
5686
3542
AVERAGE RATE
AVERAGE RATE
42
Comparison between Budget and Actual data
Control function is one of the most important functions of management. This function can be done by budgetary
control technique. Budgetary control technique involve following steps:
Setting up budget- first step is to prepare a proper budget with full simplification. Budget can be prepared
using past performance and trends which are going in market. Also the expectation from the firm.
Comparison with actual- After preparing the budget next step is to compare the budget with actual
performance. After getting the actual data we compare both so that we can find where variation is.
Variation analysis- In this step we analyze what is the reason of variation. Whether we find positive or
negative analysis.
Corrective actions- After finding reasons of variation we take the necessary actions to improve our situation
if there is negative variation. If there is positive variation then apply those techniques so that we can maintain
that level.
43
44
1. Which star category hotel do you prefer?
a. 3 star b. 4 star
c. 5 star d. other
3 star 4 star 5 star others0
5
10
15
20
25
30
35
Chart Title
Series 1 Column2 Column1
Illustraction:
According to the survey of responded that they more prefer 4 Star hotel.so Radisson blu is a 4 star hotel so
its a good opportunity for Radisson blu to acquire more and more customer.
2. Which of the following feature attract you more to book the hotel?
a. Brand b. Rate
c. Location d. other thing
45
31
27
16
Column1
BRAND RATE LOCATION OTHER THING
Illustration:
According to the survey of respondent that they attract on hotel Brand. Since Radisson blu is International
brand so it can attract more and more customers.
3. What are the services you mostly use in a hotel?
a. Spa b. Food
c. Laundry d. Gym
SPA FOOD LAUNDRY GYM0
5
10
15
20
25
30
35
40
Chart Title
Series 1 Column2 Column1
Illustration:
46
According to the survey it has been find that mostly cutomer are using food services,so Radisson Blu must
ensure good quality food.
4. Reason for visiting hotel?
a. Leaser Business b. Transient
c. other thing
LEASER BUSINESS TRANSIENT OTHER0
5
10
15
20
25
30
35
40
45
Chart Title
Series 1 Column2 Column1 Illustraction:
According to the survey of responded that they visiting hotel for personal work.
5. What is the room budget you prefer?
a. 2000-3000 b.3500-4500
c. 5000-6000 d. 7000 above
47
2000-3000 3500-4500 5000-6000 7000 & ABOVE0
5
10
15
20
25
30
35
Chart Title
Series 1 Column2 Column1
Illustraction:
According to the survey, customers are more comfort in 2000-3000 room budget, so it can been clearly
inferred that Radisson Blu will be having tuff competition with low budget hotels.
6. Do you have any meeting room requirement (current/future)?
a. Yes b. No
c. Might be
YES NO MIGHT BE0
5
10
15
20
25
30
35
40
Chart Title
Series 1 Column2 Column1 Illustraction:
48
According to the survey 35% respondent said that they have meeting room requirements so it is good for
Radisson Blu to have a good relation with corporates for meetings.
7. How many guests attend in a meeting room?
a. 8-10 b. 14-16
c. 20-22 d. 22 above
14-16 20-22 22 ABOVE0
5
10
15
20
25
30
35
40
Chart Title
Series 1 Column2 Column1
Illustraction:
According to the survey,it has been find that meeting room having capacity of 20-22 people is more
demanding so Radisson Blu must ensure good facility and increase numbers of conference room of same
capacity.
8. How many meetings organized by the company in the month?
a. 1 Time b. 2-3 Times
c. 4 Times d. 4 Times above
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1 TIME 2-3 TIME 4 TIME 4 TIME ABOVE0
5
10
15
20
25
30
35
Chart Title
Series 1 Column2 Column1
Illustraction:
According to the survey of responded that they have meetings in a month on 2 to 3 time.so it is good for
Radisson blu generating revenue.
9. Would you like to prefer Spa service during your stay with us?
a. Yes b. No
YES NO0
10
20
30
40
50
60
Chart Title
Series 1 Column2 Column1
Illustraction:
50
According to the survey, most customer prefer spa services while staying in hotel,so Radisson Blu must provide
spa services as per the requirement.
10. Which mode you prefer to book a room?
a. Travel agent b. Online
c. Hotel Website d. Walking
TRAVEL AGENT ONLINE HOTEL WEBSITE WALKING0
5
10
15
20
25
30
35
40
45
Chart Title
Series 1 Column2 Column1 Illustraction:
According to the survey, most customers booked the hotel through travel agent, so Radisson Blu must ensure
good front desk service and reservation helpline to get direct booking.
Radisson Blu can also collaborate with some good travel agency to attract more customers.
11. Which food and beverage outlet you prefer?
a. Fifty9 b. TGKF (The Great Kebab Factory)
d. Bar and Lounge
51
FIFTY 9 TGKF BAR& LOUNGE0
5
10
15
20
25
30
35
Chart Title
Series 1 Column2 Column1
Illustraction:
According to the survey, fifty9 is more popular among the customers so Radisson Blu should also focus on
other outlet to get it more popularized.
12. Do you having membership of the hotel?
a. Yes b. No
yes no0
10
20
30
40
50
60
Chart Title
Series 1 Column2 Column1
Illustraction:
52
According to the survey, most guest don’t have membership of hotel, so Radisson Blu should offer hotel
membership under good scheme to make customer more attached towards hotel.
Revenue generation process of Radisson BLU
Radisson generates revenue with the help of Rooms, Food and Beverages, Housekeeping, Mini bar, and
Meeting rooms.
Types of rooms, suites and its rates.
Room Single Occupancy Double Occupancy Triple Occupancy
Superior 6500 7500
Deluxe Class 7000 8000
Business Class 8000 9000 11000
Room Single occupancy Double Occupancy TRIPLE Occupancy
Executive Suite 9000 10000 12000
Deluxe suite 10000 11000 13000
Presidential 11000 12000 14000
Occupancy and Room Rate:
The two factors that determine how much revenue a hotel earns from its rooms are occupancy and average daily
rate. Occupancy is the percentage of rooms sold each night. If a hotel has 90 rooms and sells 78, the occupancy
rate 77%. The other factor is average daily rate. A room that sells 6500 Rs during high season could go for as
little as 5000 Rs in the off season. The different is huge. At a 77% occupancy rate at 5000 Rs per room sold, the
revenue generated are1lakh. At 6500 average room rate, the revenue is 5lakh. Ideas to increase either the
occupancy of the average daily rate increase total revenue.53
Types of Hotel Room Rates:
A hotel usually designs standard rate for each room. This rate is generally called room rate. Room rates are most
of the time settled in times of registration this means that room rates are standard prices for the hotel. These
different statuses reveal different room rates for different customers. Rack rate is the highest rate charged by the
hotel for a specific room. Often selling a room for somewhat less price ensures repeat guests whichare much
more beneficial than normal rate price.
Hotel also can give special price for their partners or co-operation companies. The corporate rate directory’s
hotel database has thousands of listings of hotels that offer special discounted rates for the business traveler. As
a way of procuring a cheaper hotel room, corporations often negotiate a corporate rate with a hotel in other
words; the rate is designed for two kinds of business people. One is for businessman who stays at hotel
frequently per month of week. Another beneficial is guest from a company who has contract with the hotel.
One of the profitability comes from group customers. Group rates depend on a number of variables, including
the season of the year, the number of room nights wanted (based on group size and duration), other revenue
(food and beverage, function room rentals, spa, laundry, etc), and the group’s history. Group booking are
usually handled by the sales department, where agents are managers are highly specialized in dealing with this
line of customer.
Government rates are reserved for travel on official government business only for federal employees. Military
personnel, their dependents and members of several government associations are extended the rate for official
and leisure travel.
States that variable pricing and demand based pricing strategies would be useful for revenue manager as they
are really popular revenue management strategies. By demand based pricing strategy a hotel can segment the
same room for different price for different kinds of customers. The best available rate provides the hotel to offer
the lowest price according to customers’ demand.
As a result, instead of paying the same price for each room night, the guest would pay different rate policy can
help hotel managers better apply revenue management tools that maximize revenue without compromising guest
satisfaction.
Food and Beverage
In Radisson Blu there have 3 outlets.
1. Fifty9
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2. TGKF (The Great Kebab Factory)
3. The Connaught Bar.
The more guests in the hotel it would seem the higher the food and beverage revenue, but it doesn’t always turn
out that way. Guests may not want to wait in line for busy meal times or perhaps they just want to explore the
restaurants rather than eat in the hotel. Consider offering guests a happy hour where the drinks are slightly
discounted and the appetizers on a piecemeal basis, such as shrimp for 100Rs each, mini tacos for 50Rs or
Sliders for 75Rs.
Radisson Blu start earning more from food and beverage (F&B) revenue as F&B revenue has been growing has
been growing constantly over the past five years while room revenue has been dipping.
Housekeeping and Mini-bar
A mini-fridge-bar is a small private snacks and beverage bar,
That is defined as a fridge with a capacity of less than 5.5 cubic feet, often found in high-priced western-style
hotel rooms. a mini-bar comes in the form of a counter and small absorption refrigerator stocked with a precise
inventory. The room’s guests can take a beverage or snack at any time during their stay.
The bar is commonly stocked with small bottles of alcoholic beverages, juice, and soft drinks. It may also
include candy, cookies crackers, and other small snacks. Prices are generally very high compared to similar
items purchased from a store, because the guest is paying for the guest is paying for the convenience of
immediate access and also the upkeep of the bar. Prices vary, but it is not uncommon for one can of non-
alcoholic beverage to cost between 150-200rs.
Some mini-bar use infrared or other automated methods of recording purchases. These detect the removal of
items, even if the items are not consumed. This is done to prevent loss of product, theft and lost revenue.
Housekeeping the major part for saving the electricity in the guest rooms, is to use PSD (power saving device)
which should be connected to the aircon and water heater too. Also by using the tent cards like save the planet
which will make an awareness to save the water and replacement of linens in the guest rooms that are staying
for a period of more than a night.
Meetings Room
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In Radisson Blu there have two type of meeting rooms first one is small board room and second is large board
room with the help of this Radisson has generate the revenue. They sell the meeting rooms of corporate for a
meeting on different rate if corporate want lunch after meeting so in that case price include on per person in a
meeting. It is help on generate the revenue of the hotel. TGKF is also change in a meeting room so it is also help
in generating revenue.
SPA
Spa is a small part of Radisson Blu Marina; it is only for in house guest. Spa don’t use out sider guest. Spa is
famous for Sohum spa name. It is also small help on generating revenue.
Conclusion
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The study has been done on Revenue generation process of Radisson BLU Marina Hotel Connaught Place.
Revenue management is not only based on maximizing revenue either. Besides the fact that hotels benefit from
implementing Revenue Management, it also has advantage for the customers. Indeed, they make use of the
various offers. Customers for whom room or a service is very important are happy to get this seat or service, in
spite of the price. Radisson Blu Marina is high income generate on rooms. It’s measure source of generating
revenue is from room booking . On the basis of analysis this study further conclude that the I find the result is
60% revenue generate by hotel rooms. hotel rooms are divided in different categories Superior, Deluxe,
Business Class, and three Suites also in Radisson Blu Marina Executive Suite, Deluxe Suite and Last is
Presidential Suite. Even has generating good revenue on a daily bases help of Food and Beverage. .Radisson
Blu Marina has 3 outlets generating 40-45% of revenue of the hotel. Customer more attract on the hotel brand.
Customer first thing see in the hotel outlet. Revenue management manage all thing of the hotel and change the
room price in daily bases for generating revenue. Hotels room price depend on BAR rate.
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Bibliography
Marketing Management of Philip kotler Second edition
www.carlsonhotels.com
www.radissonblumarina.com
www.radissonblu.com
Radisson Blu Marina Hotel Sales
www.wikepedia.com
Government of India Ministry of Tourism H&R Division Document
www.abbott.co.in
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Suggestion and Recommendation
1- Use of creative advertisement to attract more and more customers and to create awareness
among them.
2- Radisson BLU should play to make its promotional activities more effectively.
3- Radisson BLU should regularly conduct market research and surveys for knowing
customers perception and for facing threat from competitors.
4- Radisson BLU open the door of SPA for outsider guest for making more revenue.
5- Radisson change the menu on a daily bases of TGKF, it’s also a good thing of the hotel
and for getting more customer.
6- Take the feedback of the guest.
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Names of the respondent.
Age group.
15-25
26-35
36-45
46-55
55 and above.
Gender.
Male
Female
Permanent address.
Mobile no.
Occupation.
Email id.
1.Which star category hotel do you prefer?
a. 3 star b. 4 star
c. 5 star d. other
2. Which of the following feature you to book the hotel?
a. Brand b. Rate
c. Location d. other thing
3. What are the services you mostly use in a hotel?
a. Spa b. Food
c. Laundry d. Gym
60
4. Reason for visiting hotel?
a. Leaser Business b. Transient
c. other thing
5. What is the room budget you prefer?
a. 2000-3000 b.3500-4500
c. 5000-6000 d. 7000 above
6. Do you have any meeting room requirement (current/future)?
a. Yes b. No
c. Might be
7. How many guests attend in a meeting room?
a. 8-10 b. 14-16
c. 20-22 d. 22 above
8. How many meetings organized by the company in the month?
a. 1 Time b. 2-3 Times
c. 4 Times d. 4 Times above
9. Would you like to prefer Spa service during your stay with us?
a. Yes b. No
10. Which mode you prefer to book a room?
a. Travel agent b. Online
c. Hotel Website d. Walking
11. Which food and beverage outlet you prefer?
a. Fifty9 b. TGKF (The Great Kebab Factory)
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d. Bar and Lounge
12. Do you have membership of the hotel?
a. Yes b. No
Feedback………………………………………………………………….
62
