Tourism is one of the major contributors in the growth of a country, it not only adds to the GDP but also create employment for different sections of society. The Indian tourism has contributed enormously to GDP; around 6.2% in 2013 this includes both foreign and domestic tourists. The Foreign tourist arrivals (FTAs) increased by 9.1% in June 2014 over June 2013. India is still ranked 14th among Asian countries in terms of FTA, and has a huge scope for growth in the industry. With new investments in tourism industry of Rs. 82 billion in 2014 – 2016 through projects by central and state government and private sector the industry is looking to grow enormously.
Mahindra Holidays & Resorts India Ltd is one of the leading companies in leisure hospitality …show more content…
That has repeatedly invited a lot of criticism from its member since it is not feasible for a family to plan a domestic holiday in 6 months in advance. Also the membership fees promises a lifetime membership but has validity of 25 years. Also due to the very long membership term, the membership fees is also very high ranging between 1.6 lakhs to 8.5 lakhs which cannot be afforded by the middle income group of India which has a population of almost 265 million and is expected to grow further in the next 5 years. Club Mahindra also charges maintenance. If we assume they charge 3.5L as the initial amount plus they charge 11000 annually for maintenance. Putting 3.5L at 10% interest a customer can earn 35000 as interest + 11000 as annual charge for 7 night = 46k / 7 = 6.5k / night roughly. Apart from this customer get 25 years membership i.e. 3.5L / 25 years = 14k annual depreciation. So a customer pays almost Rupees 60000 for 7 nights which is even higher than the charges of a 5 star hotel on those …show more content…
The package be charged anywhere around Rupees 30000 to 70,000. The package can be marketed as a membership plan specifically for the Middle Income group of India as well for the Generation Xers and Yers. Taking into mind that both these customer bases hesitate from getting into long plans and are also looking out for a vacation that is cheap but at the same time they are also looking out for hospitality which is at-par with 5 star hotels. Information needed:
1. Competitors Analysis – To determine the existing market players and barriers to entry in the segment. Competitor’s information will help in judging the price and quality of service to be provided.
2. Market Analysis – The market size data and consumer behavior analysis to know how much they are willing to pay for the provided service.
3. Technology – At what extent new and innovative technology can be used to exploit the customer base more and provide better experience and easy
Mahindra Holidays & Resorts India Ltd is one of the leading companies in leisure hospitality …show more content…
That has repeatedly invited a lot of criticism from its member since it is not feasible for a family to plan a domestic holiday in 6 months in advance. Also the membership fees promises a lifetime membership but has validity of 25 years. Also due to the very long membership term, the membership fees is also very high ranging between 1.6 lakhs to 8.5 lakhs which cannot be afforded by the middle income group of India which has a population of almost 265 million and is expected to grow further in the next 5 years. Club Mahindra also charges maintenance. If we assume they charge 3.5L as the initial amount plus they charge 11000 annually for maintenance. Putting 3.5L at 10% interest a customer can earn 35000 as interest + 11000 as annual charge for 7 night = 46k / 7 = 6.5k / night roughly. Apart from this customer get 25 years membership i.e. 3.5L / 25 years = 14k annual depreciation. So a customer pays almost Rupees 60000 for 7 nights which is even higher than the charges of a 5 star hotel on those …show more content…
The package be charged anywhere around Rupees 30000 to 70,000. The package can be marketed as a membership plan specifically for the Middle Income group of India as well for the Generation Xers and Yers. Taking into mind that both these customer bases hesitate from getting into long plans and are also looking out for a vacation that is cheap but at the same time they are also looking out for hospitality which is at-par with 5 star hotels. Information needed:
1. Competitors Analysis – To determine the existing market players and barriers to entry in the segment. Competitor’s information will help in judging the price and quality of service to be provided.
2. Market Analysis – The market size data and consumer behavior analysis to know how much they are willing to pay for the provided service.
3. Technology – At what extent new and innovative technology can be used to exploit the customer base more and provide better experience and easy