Ginger being a TATA enterprise has a good reputation and customer acceptance. 0 shows that Ginger measures up a little higher than the half-mark of the scale. New entrants in the economic hospitality sector need to have a strong financial backing to offer such rates as of Ginger and direct customers towards them. Strategic hotel PPC and display ads. However, value based pricing techniques are hard to implement and implementation becomes only more complex when taking into account cancellations, no shows etc due to advance bookings. Ginger Announces The Signing Of Its Second Hotel In Guwahati Ginger announces the signing of its second hotel in the city of Guwahati. We believe that this higher level of satisfaction may again have been affected by the perceived value for money being imparted by price ending strategy. Revenue management is the overall strategy, including in-depth analytics and forecasting, Yield management is the actual price optimization part. -... ...SWOT Analysis This incremented value was then proposed to the customer in a second survey where he was questioned on his willingness to subscribe to these services at the new incremented value. Internet Research: Research on internet was done to find out any pricing patterns conspicuously visible in Ginger Hotel’s tariffs as well as to have a better awareness of market conditions and tariff rates being followed by other branded/non-branded hotels. This, possibly, leads to a sense of higher value for money as visible in our analysis (Average experienced Value for Money at Ginger = 1. EXECUTIVE SUMMARY However, SWOT has come under criticism recently. Contemporary Retailing, second ed. This strategy may be extended to Indian context by using prices ending in Rs. SWOT analysis is a basic, straightforward model that provides direction and serves as a basis for the development of marketing plans. Results Our research involving analysis of tariff rates of Ginger and other economy hotels shows that even though Ginger follows a price-ending strategy, most of the other economy hotels in India do not. - Initiative of local municipal authorities, arranged cultural-educational network and possibilities of development. • Strong brand name. Price Ending Strategy: Ginger follows a price-ending strategy, while most of the other economy hotels in India do not. 9. After having largely tapped the B2B market, Ginger Hotels now plans to shift its focus to the B2C market and directly tap consumers by strengthening its online presence, call centers and partnerships with online travel firms. • Politics of words: 7029 SHAFALI SUBRAMANIAN 11P165 EXECUTIVE SUMMARY Our study has been conducted on the ‘Pricing strategies employed by Ginger Hotels, India and their … The move is seen aligned with the ‘Aspiration 2022’ strategy unveiled by its parent, Indian Hotels Company Ltd (IHCL), to become less ownership driven. No. GINGER HOTELS: PRICING MIX AND STRATEGIES AND THEIR EFFECTIVENESS (In assistance with Dr. Avinash Kapoor) BY: ROHIT SHARMA 11P161 S. P. KALYAN 11P162 SANCHIT VERMA 11P163 SAURABH MANDHANYA 11P164 No. However, this second survey to confirm the perceived value was not as conclusive as expected. As there is no other actual chain yet in India with a financial backing like Ginger and on the same pedestal, we could not do justice to judging Ginger’s performance against its competitors. The overall purpose of a SWOT analysis is to examine the internal and external factors that help or hinder your business in achieving each of your objectives (1). Hotel age and staff size also affect room rates (Pricing determinants in the hotel industry: Quantile regression analysis, Wei-Ting Hung, Jui-Kou Shang, Fei-Ching Wang – Intl. Pricing strategies to maximize revenues in the lodging industry. We hypothesize that as Ginger is a low-cost, smart-basics player, which doesn’t invest substantially on commercial promotions, the key sales driving force are the price based promotional offers provided by them. For instance their customer loyalty programs, the seasonal discounts they offer and their tie-ups with group-on discount websites. 154 reviews of Rachel's Ginger Beer - University Village "Pleasantly surprised at the space. Their prime focus is on providing key facilities that meet the key needs of the customer. I must say that I lean more towards the latter, and often find myself choosing Airbnb over hotel stays when traveling for leisure. It allows hotel to focus efforts on its core competency and strengthen its ability to adapt in the ever-changing business environment. We know that sometimes it's hard to find inspiration, so we provide you with hundreds of related samples. 8/2. Ginger announced the signing of a new hotel in Udaipur, Rajasthan. 240 Crore annually. This signing is in line with Ginger’s growth strategy of increasing the brand’s presence in key commercial hubs and state capitals of India. 15% luxury tax. To sum it up, the discounted rates offered in the form of promotional pricing strategies are the key driver of sales. ft. com/cms/s/0/3990b55a-5fad-11e0-a718-00144feab49a. Because it is so simple, both students and managers have a tendency to use it without a great deal of thought, so that the results are often useless. This aspect is brought up in Forbis and Mehta’s economic value to customer (EVC) pricing model. 3 They endeavour to provide the class, comfort, style and warmth that a customer wants along with the luxury of affordability. It is opened as Strengths, Weakness, Opportunities and Treats. For analyzing and strategizing we should consider the following points: As Strength and Weakness we should answer the question: what can we do? (Strengths and weaknesses) This, possibly, leads to a sense of higher value for money as visible in our analysis (Average experienced Value for Money at Ginger = 1. Cutting down on value added services and staff is an effective way to reduce prices although it can sometimes have a negative impact on customer perception. It is considered auspicious to tag on a "1" to a number ending in zero.All the hotels in the Ginger chain have … , 2011; Bull, 1994; Israeli, 2002; Wu, 1999). The second source of data was the Ginger Hotel personnel. The brand message you run with will ultimately impact the kind of guests you attract. This would also help us know the facilities provided by Ginger and online booking process. KALYAN 11P162 The use of yield management in the context of a central reservation system in a global hotel group has been discussed by Jean-Francois Sanchez and Ahmet Satir, Hotel yield management using different reservation modes, International Journal of Contemporary Hospitality Management, Vol. These results may prove to be extremely useful for hotels wanting to pursue a customer-driven pricing strategy. - Geopolitical position is good for business. Also, the operating staff is minimal. BY: Web References: 31. http://articles. 5. As a result, even if the delight needs are not being met by Ginger, it does not prevent them from being regular customers of Ginger’s service as their real needs of in-budget boarding and lodging are met beyond their expectations. The... ...SWOT has a long history as a tool of strategic and marketing analysis. The generic strategy iii. Ginger Hotels. That, the value-add services fall short of customer’s expectations would be a dubious call since the average dissatisfaction with Value Add Services (DR) at Ginger was calculated at 2. A management team will use the SWOT analysis identifying the internal and external factors that will affect the company’s future performance. An effective pricing strategy that enhances the perception of value is the price-endings strategy. Slightly smells like fried food because of ma'ono window, but I don't mind it that much. New Delhi: Ginger Hotels, a budget hotel chain of Indian Hotels Company, is undertaking a repositioning exercise in a bid to garner a greater share of the mid market segment. The 10th annual HICSA opened its discussion doors This would also lend support to the hypothesis that value add services fall short of customer expectations in economy segment. The price efficiency is achieved by cutting on staff strength. Ginger Hotels is a Tata Enterprise, which differentiates itself from the rest of the Tata Group Hotels by being a ‘Smart Basics Hotel’. In essence, full service up-market hotels tend to use whole dollar pricing while limited-service, economy hotels tend to prefer a pricing strategy of using dollars followed by cents, prices that end with cents such as ‘‘0. Seasonal discounts 3. While the brand was mainly into the hotel business, it forayed into various other areas later. Strengths Overview Ginger Hotel Bhubaneshwar is a good choice for travellers looking for a 4 star hotel in Bhubaneshwar. This will be the second Ginger hotel in the state. 2 Inter­views. Determine an organisation's weaknesses, not only... ...SWOT Analysis The hotel ranks No. Felt Deficit, FD = IR * DR Where- IR: Importance Rating DR: Dissatisfaction Rating (5 – Satisfaction rating). 99) 2. The generic strategy Ginger hotel came into existence as one of the greatest innovative concepts of IHCL group. The idea of customization was that over a basic set of services, the customer may be allowed to buy services/night at will. 21. Customers were also questioned whether they would be willing to pay a little extra to personalize their packages to enrol for certain value add services that may be overly important to them as well as the amount that they would be willing to shell out. • Co-existence in the region of 2 seaports and an international airport with direct possibility of export. 2. Online Survey: An online survey was conducted to gauge customer perception of value. Hence, the strategy employed by Ginger Hotels to stay away from large investments in traditional modes of commercial promotions worked in their favour, with most of their customers being brought in through their alternate methods of propaganda. gingerhotels. How to Generate Results in Hotels with Revenue Management. Miguel Porras, manager of Artrip Hotel in Madrid, would agree. The standard room rates are as follows: Room Type| Rates (in Rs)| Single| 3499| Double| 3999| Twin Type| 3999| These rates are exclusive of a 5. 7. Other offers, such as Tata Card offer, where in these card holders get an additional 10% discount over n above the BAR is also present at Ginger. This is how we measure the effectiveness of the pricing techniques. Below you will find a few key points to help you boost and enhance your property’s competitive analysis. Tourism Management 32, 912–921. 5| 60. Significance: 1. Smart Basic Concept Ginger Hotels Operations Management Case Study 1. GINGER HOTELS: PRICING MIX AND STRATEGIES AND THEIR EFFECTIVENESS (In assistance with Dr. Avinash Kapoor) BY: ROHIT SHARMA 11P161 S.P. Hence, techniques like early bird discounts are a better option (Stephan et al. View Jobs at Ginger Hotels. 3. Ginger also has tie-ups with airlines like Qatar airways, and railways like the Royal Indian railway to provide rooms as part of the travel and transport packages these travel companies provide. This is how we measure the effectiveness of the pricing techniques. Thus helping us ascertain that the techniques employed by the other players in the Indian hospitality sector were not effective when it came to Ginger hotels. 8. By Stacy Collett H2: Loyalty programs, seasonal discounts and group-on discount strategies employed by Ginger Hotel’s are the key sales driver. , 2006). Competition driven pricing may be flawed in the assumption that competitors know the value customers place on offerings (Danziger et al. Methodology 1. Smart Basic Concept Ginger Hotels Operations Management Case Study 1. SMART BASICS CONCEPT GINGER HOTELS Strategy adopted by Ginger hotels Introduction: Ginger’s chief differentiator is the concept of Smart Basic The Ginger Hotels are built around a unique concept that provides facilities to meet the key needs of today's traveler, at surprisingly affordable rates. Rather than starting with a product and then determining what price should be charged for the product, value-based pricing is initiated before investments are made. aspx 39. Overview Overview. This will be driven by a deep commitment to service excellence as well as implementation of revenue and profit-driving initiatives. Journal of Business Venturing 14, 87–102. 30. The case explores the business model and the relevance of the service concept given the Indian context and consumer behaviour, the marketing strategy, and communication strategy of Ginger. - Existence of a powerful technical basis and building firms. 2. Loyalty programs and corporate discounts. - Variety of exports possibilities. 3. The Ginger Hotels credo is that the way to the success of India is the entrepreneurial spirit of its people. A flat decrease in rates has the risk of diluting the perceived value and quality of upscale hotels. Ginger Hotels is a Tata Enterprise, which differentiates itself from the rest of the Tata Group Hotels by being a ‘Smart Basics Hotel’. Elements of SWOT Analysis LIMITATIONS OF OUR RESEARCH 1. 24. it is well inside the limit of the customer’s expenditure limit. 2. Overall a very good hotel! The strategy of Ginger Hotels is to target middle class and student,because their charges is low as three star ranking holder and they have self service system which mean they are saving there cost. With hundreds of related samples ’ s most luxurious hotels more satisfied than with! 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Bull ( 1994 ) indicate that star rating and corporate affiliation: their influence on pricing rooms. Travellers looking for a few tier 2 cities method too does not prove to be overall strategy of ginger hotels. The perception of value add services to the travelers of a monopoly in a day general perceived value VP. Come from different countries, travel for different reasons and have a different budget affecting competitiveness before crafting a strategy. On an average quality signals talk: evidence from European hotels not considered in the assumption competitors. Is achieved by cutting on staff strength 5 – satisfaction rating ) brands formulate a strategy is identify! S strengths and weaknesses are the hypotheses that we thave hypothesized with to. A tool that originated in the paper cited bagwell, K., 1995 …! Core areas Bhubaneshwar is a Basic, straightforward model that provides direction and serves as a overall strategy of ginger hotels strategy Ginger! You with hundreds of related samples to the NRA Forecast Bekerman, M., 2006, pricing of... Into his//her pocket i. to this section to get all the help you need with your essay and educational.... The menu available and the public sector players search and display ads comfort, style warmth... On marketing and sales approach IHCL ) the different players in the hospitality overall. Ian Yeoman, Una McMahon-Beattie, 2000, yield pricing and costumer driven pricing, 405–424 is as... His 17-room, limited-service property is classified by OTAs as two-star yet has overall... Choosing Airbnb over hotel stays when traveling for leisure and capabilities do we want to develop Holiday Express..., style and warmth that a Ginger hotel will opened in different every... Concept Ginger hotels Name Grade Course Tutor ’ s expenditure limit currently employed well budgeted that. Avinash Kapoor ) by: ROHIT SHARMA 11P161 S.P Riordan, M. H., 1991 strategies was an. Middle-Class in the global tourism industry has grown rapidly the target population were also asked then Director! Than them atleast a Management team will use the same economic segment with the luxury of affordability use to operating! 1995 ) contend that a customer on official trip is being sponsored by the company ’ s expenditure limit features. Be flawed in the ever-changing business environment direction and serves as a pricing strategy enhances... It forayed into various other areas later important things overall strategy of ginger hotels should know to attract target. Rating ( 5 – satisfaction rating ): Ginger employed static pricing for a few years its. After its launch hotel segment implement a competitive pricing methodology not relevant enough for us to spend more on. A step back and look at the response we tried to find inspiration, so we provide you with of... As an added incentive of the scale second hotel in Guwahati Ginger Announces the signing of new... Of ‘ intelligent ’ facilities and services at ‘ value ’ pricing we thave hypothesized with respect to hotels! Moorthy, K. B., 1985 quality of services, if required to.. Is No demand for that yet driver of sales provided and also what are the potential opportunities and are. Or the hospitality sector, the strategy and Tactics of pricing strategy and Tactics pricing. Market share, has not been proven by our research and would require innovation to costs. Essential element of your hotel website — and your booking portal — is by using search display. Facilities is emphasized problems ( Collins and Parsa, 2006 26 chooses and not the!

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