drishti: manthan 2010 · year 1990 hotel ruby royale established 1996 hotel renovated, added 2...
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The hospitality industry is basically characterized by the following services with their respective market
maturity and usage patterns:
The Lake Royale hospitality group is one of the oldest chains in Nashik, established around 1960. This
group consists of 3 star hotels, resorts, spas and restaurants in Nashik. The group is also looking to
expand its operations in neighbou
tourist intensive areas around Nashik.
Being a pioneer of hospitality services in
property spread across prime locations in the city.
Primary amongst these is its flagship 3 star hotel “The Ruby Royale” located in the heart of the city. It
offers the following services to customers:
- Room accommodation
- Restaurants
- Conference venues
- Banquets
- Weddings
- Outdoor Catering
The average occupancy rate at the hotel is 50
The client base for this hotel consists of Institutional customers
different services as needed. Also,
business institutions which also have a good potential to provide repeat business.
focusing on increasing its revenues coming from the business sector.
Fine Dining
Fragmented
Markets
Time of Day
Pattern
DRISHTI: MANTHAN
The hospitality industry is basically characterized by the following services with their respective market
The Lake Royale hospitality group is one of the oldest chains in Nashik, established around 1960. This
group consists of 3 star hotels, resorts, spas and restaurants in Nashik. The group is also looking to
uring cities like Mumbai and Pune besides coming with facilities in
tourist intensive areas around Nashik.
Being a pioneer of hospitality services in Nashik, the Lake Royale hospitality group has considerable
spread across prime locations in the city.
gst these is its flagship 3 star hotel “The Ruby Royale” located in the heart of the city. It
offers the following services to customers:
Room accommodation
Conference venues
hotel is 50-55% which is above the industry average of 42%.
el consists of Institutional customers, individuals and businessmen who avail
Also, Nashik being an industrial hub, a large chunk of cust
business institutions which also have a good potential to provide repeat business. The hotel is currently
focusing on increasing its revenues coming from the business sector.
Hospitality
Fine Dining
Fragmented
Markets
Time of Day
Pattern
Accommodation
Services
Very Fragmented
Day of Week
Pattern
Events
Consolidated
DRISHTI: MANTHAN 2010
The hospitality industry is basically characterized by the following services with their respective market
The Lake Royale hospitality group is one of the oldest chains in Nashik, established around 1960. This
group consists of 3 star hotels, resorts, spas and restaurants in Nashik. The group is also looking to
umbai and Pune besides coming with facilities in
, the Lake Royale hospitality group has considerable
gst these is its flagship 3 star hotel “The Ruby Royale” located in the heart of the city. It
industry average of 42%.
, individuals and businessmen who avail
chunk of customers are
The hotel is currently
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The challenges that the hospitality industry as a whole faces are
which is also the case with Ruby Royale hotel.
Ruby Royale has been innovating ways of retaining
schemes and offers like freebies at their midnight coffee shop, discount coupons, customer
loyalty rewards, etc. It also has a tie up with a local travel agent.
Ruby Royale is not involved in aggressive marketing and advertising activit
a print media advertisement campaign in a local newspaper, which was later discontinued due
to its returns being deemed inadequate for further sustenance. Currently, radio ad jingles
local radio stations is the only promotional me
With the changing face of Nashik and the existence of
is crucial to ensure profitable & sustainable use of it. This might be constraine
understanding of futuristic industry trend
complicated by the presence of a plethora of competitors catering to all the market segments of the
hospitality industry, from budget hotels right up to established 5 star rated hotels.
A recent market research project undertaken by an agency revealed the following perceptions of the
customers on various parameters considered crucial to the hospitality industry.
Listed below are a couple of critical
1. There has been a significant decrease in the business potential resulting from outbound tourists
stationed in Nashik, e.g., tourists to Shirdi who earlier stayed in Nashik and toured Shirdi, now prefer
staying in Shirdi itself due to availability of adequate hospitality se
2. A comparison of infrastructure of the hotel with its competitors
renovation to bring it at par with industry benchmarks.
for immediate renovation measures. H
quality available as compared to its competitors.
DRISHTI: MANTHAN
ity industry as a whole faces are acquisition, reacquisition and retention
Ruby Royale hotel.
Ruby Royale has been innovating ways of retaining existing customers by way of numerous
schemes and offers like freebies at their midnight coffee shop, discount coupons, customer
It also has a tie up with a local travel agent.
Ruby Royale is not involved in aggressive marketing and advertising activities. It had undertaken
a print media advertisement campaign in a local newspaper, which was later discontinued due
to its returns being deemed inadequate for further sustenance. Currently, radio ad jingles
local radio stations is the only promotional measure undertaken.
With the changing face of Nashik and the existence of property at prime locations
& sustainable use of it. This might be constraine
industry trends and prospective buying behavior
complicated by the presence of a plethora of competitors catering to all the market segments of the
hospitality industry, from budget hotels right up to established 5 star rated hotels.
project undertaken by an agency revealed the following perceptions of the
customers on various parameters considered crucial to the hospitality industry.
Listed below are a couple of critical research findings:
significant decrease in the business potential resulting from outbound tourists
stationed in Nashik, e.g., tourists to Shirdi who earlier stayed in Nashik and toured Shirdi, now prefer
staying in Shirdi itself due to availability of adequate hospitality services in Shirdi.
2. A comparison of infrastructure of the hotel with its competitors pointed at the urgent need for
renovation to bring it at par with industry benchmarks. Also data of lost customers supported the need
for immediate renovation measures. However the hotel scored well on aspects of cuisine and food
quality available as compared to its competitors.
DRISHTI: MANTHAN 2010
, reacquisition and retention
by way of numerous
schemes and offers like freebies at their midnight coffee shop, discount coupons, customer
ies. It had undertaken
a print media advertisement campaign in a local newspaper, which was later discontinued due
to its returns being deemed inadequate for further sustenance. Currently, radio ad jingles on
locations in the city, it
& sustainable use of it. This might be constrained by the lack of
s and prospective buying behavior. This is further
complicated by the presence of a plethora of competitors catering to all the market segments of the
project undertaken by an agency revealed the following perceptions of the
significant decrease in the business potential resulting from outbound tourists
stationed in Nashik, e.g., tourists to Shirdi who earlier stayed in Nashik and toured Shirdi, now prefer
pointed at the urgent need for
of lost customers supported the need
owever the hotel scored well on aspects of cuisine and food
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• Growth trends of hospitality industry in Nashik
2005
Budget
1-
star
No. of hotels 45 33
No. of rooms 675 660 110
Occupancy rate(%) 57 54
Make appropriate assumptions in extrapolation from above data
• Growth of hotel over the years
Year
1990 Hotel Ruby Royale established
1996 Hotel renovated, added 2 conference rooms
1999 Converted from one-star to three
2001 Expansion of hotel: Added 15 rooms in a new wing
2007 Added a new continental
Given this background, the management is faced with the dilemma of whether to make capital
investments for expansion activities or focus on strengthening existing business in the coming few years.
Prepare a roadmap which you think would be best for this group to undertake as its business strategy
for the next 5 years. The business strategy should be comprehensive and cover appropriate aspects of
marketing, finance, operations and enable the Lake Royale group
necessary assumptions, wherever necessary.
DRISHTI: MANTHAN
Growth trends of hospitality industry in Nashik – Exhibit I
2006 2007
3-
star Budget
1-
star
3-
star Budget 1-star
3-
star
2 53 45 3 71 59 5
110 901 870 160 1349 1165 272
50 55 52 46 53.2 49 43
Make appropriate assumptions in extrapolation from above data
Growth of hotel over the years- Exhibit II
Activity
established with 20 rooms, started as a one star rated hotel
Hotel renovated, added 2 conference rooms
star to three-star rated hotel
Expansion of hotel: Added 15 rooms in a new wing
Added a new continental restaurant to the hotel and 10 additional rooms
Given this background, the management is faced with the dilemma of whether to make capital
investments for expansion activities or focus on strengthening existing business in the coming few years.
roadmap which you think would be best for this group to undertake as its business strategy
for the next 5 years. The business strategy should be comprehensive and cover appropriate aspects of
marketing, finance, operations and enable the Lake Royale group to regain market leadership.
necessary assumptions, wherever necessary.
DRISHTI: MANTHAN 2010
2008
Budget 1-star 3-star
99 70 10
2079 1320 473
50.7 46 42
with 20 rooms, started as a one star rated hotel
Given this background, the management is faced with the dilemma of whether to make capital
investments for expansion activities or focus on strengthening existing business in the coming few years.
roadmap which you think would be best for this group to undertake as its business strategy
for the next 5 years. The business strategy should be comprehensive and cover appropriate aspects of
regain market leadership. Make
DRISHTI: MANTHAN 2010
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MANTHAN: THE CASE STUDY COMPETITION – RULES for participation
This competition is open to all B-school students across the country.
The team should comprise two members and both of them should be from the same institute.
Any number of teams can participate from the same institute. A participant cannot be a part of more
than one team.
Contacts:
Rajesh Bagrecha
Email id: ([email protected])
Cell no: 91 9767841283
Shubhajit Roy
Email id: ([email protected])
Cell no: 91 9860318044
Harika Y
Email id: ([email protected])
Cell no: 91 9579183938
Disclaimer: The case study is based on a live business case. The data supplied in the case study is a mix
of business data of the hospitality group and current industry figures. All case analysis received would be
a copyright of SIOM, Nashik.
Sr. no. Qualifier Deliverable Format Location Deadline
1 Open for all Case synopsis
MS Word document- Max 1000 words, Times
New Roman font size 11. The submission
should have a cover page mentioning: Team
Name, Names of Team Members, Name of
the Institute, Phone Numbers and Email-Ids
of the participants.
Deliverables to be mailed to:
[email protected] with
the following subject:
MANTHAN_COLLEGE NAME_TEAM
NAME
Time
23:59:59
hrs, 22nd
Jan, 2010
2Shortlisted
teams
Presentation and
detailed case report
Presentation to be in MS Powerpoint and
contain a maximum of 10 slides. Teams
would be required to present this to judges
in 20 minute time slots. Detailed case report
should be a MS Word document- Max 2000
words, Times New Roman font size 11.
SIOM, Nashik30th Jan,
2010
Results for first round to be declared on 24th Jan, 2010 by 20:00:00 hrs
Final results to be declared on the same day