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Name: Shivani Burman
Shashank Pandey
SMS ID: Shivani -101258
Shashank-101255
Name of the center: Cunningham Road, Bangalore
Name of the Course: Market Research
Faculty Name: Dr. D Israel
Marketing Research project for Hotels at Bangalore
Executive Summary
The survey of hotels in Bangalore was done to get an understanding of the
characteristics of hotels and Dharamshalas in the area. The survey was done to study
the feasibility of setting up a hotel within the station premises and to get an
understanding of the characteristics of such a hotel for it to be successful.
The main characteristics that were surveyed were hotel category, location, facilities
offered, average and peak occupancy, average stay time of the customers and the peak
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time of occupancy for the hotels in the region. In addition opinion was also gathered
with regard to whether the current hotel owners would be interested in setting up and
operating a hotel on the land available with the railway authorities.
The sample for the survey was confined to hotels in the vicinity of Bangalore and the
Dharamshalas at Majestic. All in all 13 hotels and 7 Dharamshalas were included in
the sample for the survey.
Background
1. Hotel categories: As can be seen from the graph below, about 7% of the hotels in
the Bangalore micromarket belong to the three star categories, in comparison to
the 93% that fall in to the unranked group.
De amarcation by hote l cate gory
7%
93%
three star unranked
Facilities offered in hotels
3
80
70
60
50
40
30
20
10
0
2 4 hr a/c ho t carp eted TV laund ry
ro o m ro o ms water
s ervice
2. Facilities offered in hotels: The survey findings with regard to the facilities
being offered in the hotels are as depicted in the graph. Hot water,
television,laundry and air conditioning facility are commonly provided by most
of the hotels surveyed.
3. Average and peak occupancy in hotels: Occupancy levels are an important
parameter for judging the demand levels in hotels. From the micromarket hotel
survey the following were the points that emerged.
Average occupancy: The average occupancy levels were in the range of 60-
80% for 73% of the hotels in Bangalore
Peak occupancy: The peak occupancy levels were in the range of 80-1005 for
72% of the hotels in Bangalore.
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4. Average stay time in hotels: From the survey it was found that the average stay
time of the customers was 2-3 days in almost 94% of the hotels under
consideration. This observation could have the following implications.
A majority of those who stay in the hotels at Bangalore are those who are
business travellers or on personal visits and have their work in the vicinity.
The customers who frequent these hotels are those who desire proximity to
the transportation links.
5. Time for peak occupancy: As a part of the survey the peak occupancy of the
hotels in Bangalore was also examined. The following points summarize the
observations.
As can be seen from the graph the months of November to January happen to
be the season in Bangalore for peak occupancy in hotels as per 46% of the
hotels surveyed.
31% of the hotels were in the vicinity of peak occupancy throughout the year
with slight fluctuations. This could be attributed to the presence of smaller
hotels and the fact that passenger traffic spans the entire year.
Pe ak time for occupancy
31%
46%
15%
8%
Nov-jan sept-oct summer through the year
Objectives of the survey
The survey points to the fact that though unranked hotels are in plenty, the number
of star properties is a very small percentage. Hence there could be a potential for
such properties to be developed in the micromarket.
It was found that a large majority of the hotels that exhibited average occupancy
levels between 60-80% offered hot water, television, air-conditioning and laundry
services. Any hotel property that is expected to be developed in the land available
would have to offer the following facilities to compete with the others that are
already doing business.
The average and peak occupancy levels seem to reflect a healthy scenario for the
hotel properties in the micromarket. This can again be attributed to the presence of
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a clientele that desires proximity to the transport links to serve their purpose in the
city
The survey also posed the question to the hotel property owners at Bangalore as to
whether they would be interested in setting up and operating a similar property
close to Bangalore station. The following were the points that emerged.
o 30% of those surveyed replied positively while 45% replied on the
negative.
o However it was noticed that a majority of the owners of those properties
that exhibited close to peak occupancy throughout the year (almost 75%),
replied in the affirmative that they would be interested in setting up a
hotel in the close vicinity of Bangalore ,if allowed to do so.
Want to set up a hotel next to Bangalore
25%
30%
45%
yes no no response
Methodology : End user survey report
Approach:
The end user survey was conducted at Bangalore railway station and was primarily
aimed at getting to know the following
Characteristics of passengers
Perceptions of passengers with regard to the facilities at Bangalore
Demand for retail and other developments in the station premises
The survey sample comprised both long distance as well as suburban passengers
because the survey was more or less general in nature with the primary purpose of
identifying target segment characteristics, and understanding the potential for
development of facilities in the station premises.
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Research Design:
Target segment characteristics
1) Purpose of visit to Bangalore: The following observations were obtained with
regard to the above context
It was found that for 38% of those surveyed Bangalore happened to
constitute the origin or destination nodes.
32% were in Bangalore on personal purpose and 13% had come on
official purpose.
Purpose of visit to Bangalore
5%
5%
15%
32%
13%
25% 5%
Pick up Personal Trading Origin
Destination Official Other
2) Frequency of visit to Bangalore: The following observations were obtained with
regard to the frequency of passenger visits to Bangalore
From the survey it was inferred that a majority of the population that came to
Bangalore was comprised of those who had reason to travel frequently. 18%
of those surveyed travelled to Bangalore on a daily basis.
Almost 20%of those surveyed replied that they were in Bangalore as
frequently as once a week.
10% of those surveyed responded that they travelled to Bangalore once a
fortnight.
15% of the passengers surveyed responded that they travelled to Bangalore
once a month
De marcation by fre que ncy of trave l
18% 21%
10%
26%
15%
10%
once a week once a fortnight once a month
once in 2 months a quarter everyday
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3) Age characteristics of passengers: It was found that 45% of the commuters
were in the age group greater than 36, while 25% were between 25 and 30 years
of age.
Constitution of passengers by age
3%
13%
45%
21%
18%
15-18 19-24 25-30 31-36 >36
4) Demarcation of passengers by co-travellers: The survey indicated that 50 % of
the passengers were travelling alone followed by those who were with friends or
family.
Demarcation of passengers by co-
travellers
21% 21%
8%
50%
family alone couple friends
5) Average waiting time of passengers: The following observations were noted
with regard to the average waiting time of the passengers at Bangalore.
55% said that they had to wait for 15-30 minutes in transit at Bangalore
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40% replied that they had to wait for half an hour to 2 hours, while in transit.
.
Average waiting time of passengers
3% 3%
39%
55%
2hrs
Main Findings:
Perceptions of Passengers
This survey was done with the objective of getting to know the facilities to be
developed within the station premises. The perceptions of passengers in combination
with a study is the foundation upon which the developments are in proposed to be
made
1) Problems faced by passengers at Bangalore: The following are the points of
importance that emerge with regard to the problems that passengers face at
Bangalore
As can be seen from the graph below almost 85% of the passengers replied
that the crowded environment was a major problem witnessed at the station.
The traffic congestion and accessibility troubles also received substantial
attention from the passenger's side. Hence for improvement of the station
premises these problems need to be addressed in a suitable manner.
Problems faced by passengers at Bangalore
90
80
70
60
50
40
30
20
10
0
Crowdedplatforms
Traffic accessibility Platform
Parking Waiting food onAny other
Ticketing
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2) Suggestions of passengers: One of the queries in the survey questionnaire was
aimed at getting to know the suggestions of passengers with regard to the facilities
to be provided for improvement of Bangalore station. Waiting lounges and better
information systems at the station received the maximum rankings from the
passengers.
S uggestions of passengers
25
20
15
10
5
0
trolleys
waiting lounges
better boards
announcements
3) Type of retail preferred: The passengers were queried with regard to their
preference for retail type and the survey ranked medicine stores, the highest.
Restaurants and daily use stores followed with an almost similar ranking.
Type of re tail pre fe rre d
50
40
30
20
10
0
daily use
restaurants
gift shops
luggage
medicine
travel
stores
store
4) Passengers’ preference for entertainment: The survey put across a question to
the passengers as to whether they would like to watch a movie for 2 hours, while
in transit. The replies showed that an equal percentage favoured the option as
those opposing it. However shorter forms of entertainment were preferred.
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Re sponse of passe nge rs to a movie
Cant say
17%
Yes
41%
No
42%
Yes No Cant say
Inferences from the survey
A large majority of the passengers surveyed had Bangalore as their origin or
destination node and their frequency of travel was also high. This could have
the following implications
o There could be a demand for boarding and lodging facilities to cater to
the needs of those who intend to stay in Bangalore for various reasons.
o Simultaneously there could also be a demand generated for retail and
other developments within the station premises
Almost half of those surveyed were travelling alone and the remaining were
travelling with family or friends. This inference can have relevance with
regard to the following
o The facilities to be provided within the station premises.
o The nature of properties for boarding and lodging that can work
successfully.
Dormitories and affordable accomodation in the vicinity can cater to the
segment of the population, travelling alone and on a frequent basis. Such a
facility would cater to the segment of low budget traveller.
The target segment for the hotels would primarily be those in the age group of
25-36 and those above 36. This inference is based on the fact that a majority
of those travelling on business or trading and who generally stay for 2-3 days
at Bangalore fall in to this age group
The passengers’ perceptions bring out that there could be a demand for
waiting lounges and better information systems at Bangalore. This demand
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could be on account of the fact that the waiting time for passengers in transit,
in 39% of the cases ranges between 30 minutes to 2 hours.
The survey shows that there is a substantial demand for medical stores within
the station premises. This is on account of a shortage of such retail facility at
Bangalore as of now. Restaurants and daily use stores also qualify for
attention when it comes to development of retail.
{Detailed Charts and data of the findings enclosed in the other excel
sheet}.