Strategies and Service Design for a “real” Nature Resort – “Green Valley Nature Park”

1. 2009
Services Operations Management
Strategies and Service Design for a “real” Nature Resort
– “Green Valley Nature Park”
Submitted By:
Gopalakrishnan D - 0910021
Unus Ebrahim - 0910069
Vishal Sharma - 0910072
EPGP – Term 6

2. Services Operations Management
Table of Contents
Acknowledgement ................................................................................................................... 3
Chapter 1: Introduction ........................................................................................................... 4
Executive Summary ......................................................................................................... 4
Objective .......................................................................................................................... 4
Chapter 2: Service Strategy .................................................................................................. 4
Location Choice ............................................................................................................... 4
Strategic Positioning ........................................................................................................ 5
Generic Strategy............................................................................................................... 5
Target Segment and Unique Strategy .............................................................................. 6
Order Qualifiers ............................................................................................................... 8
Order Winners .................................................................................................................. 8
Cost implications of the strategy...................................................................................... 9
Sustainability of strategy................................................................................................ 10
Service Opportunity Matrix ........................................................................................... 10
Chapter 3: Service Quality ................................................................................................... 11
Satisfiers and Delighters ................................................................................................ 11
5 Gaps Model ................................................................................................................. 12
Integrated Customer Communication ............................................................................ 13
Chapter 4: Service Pricing and Demand & Capacity Mgmt. .......................................... 13
Pricing ............................................................................................................................ 13
Demand & Capacity Management ................................................................................. 14
Chapter 5: Service Positioning and Design ...................................................................... 15
Degree of labour intensity, customization and judgment by frontline staff .................. 15
Service Blue Printing ..................................................................................................... 17
Service Mix (7 Ps of Service) ........................................................................................ 18
References ............................................................................................................................. 19
Exhibits.................................................................................................................................... 20
Exhibit-01 : Location of Marayoor in Idukki district & Kerala state ............................ 20
Exhibit-02 : Tree-top stays in Kerala ............................................................................. 21
Exhibit-03 : Existing hotels and resorts in Marayoor .................................................... 25
Exhibit-04 : Existing tourist destinations (hill stations) as suggested by Kerala tourism28
Exhibit-05 : Foreign vs Domestic tourists arrivals in Kerala (1987 – 2007) ................. 29
Exhibit-06 : The expectation and satisfaction levels of foreign tourists in India .......... 30
Exhibit-07 : Various tourist spots in Marayoor ............................................................. 30
Page 2

3. Services Operations Management
Acknowledgement
We acknowledge with gratitude, the guidance and support provided by Prof. B Mahadevan
in preparing this project report.
Page 3

4. Services Operations Management
Chapter 1: Introduction
Executive Summary
India‟s services sector is growing at a fast pace, both in GDP share as well as absolute
terms. With 60% share in India‟s GDP, the share of service sector in Indian economy takes
it closer to the fundamentals of a developed economy. India‟s tourism industry contributes
6% of GDP and provides jobs to more than 40 million people (higher than the much hyped
IT). Professional planning, strategizing and management of the various firms operating in
the tourism space is essential to expedite the growth and to remain globally competitive in
this industry.
In this context, this term paper tries to combine the theories, frameworks and other insights
gotten from the services operations management course to come up with the strategy for a
hill station resort in Kerala.
Objective
The concept of tourist resort has gone a long way from the age old „Inns‟ which just
provided a place to rest by night and some standard food items for tired travelers. A resort is
a place for relaxation and enjoyment. It is a destination for travelers rather than an
intermediate stopover for resting. It is important to decide on the target customer segment
and design the resort to cater to the needs of the identified segment. At one time, people
used to decide on the tourist spot first and then search for hotels/resorts. Nowadays, tourists
go to a place just so that they can stay in their favorite resort!
As part of this term paper, we will present the unique service positioning and sustainable
service strategy for a hill station resort. Further we will elaborate on the service design
aspect of the resort. During the course of the paper, we will also briefly touch upon the
pricing and quality dimensions of the service proposition.
Chapter 2: Service Strategy
Location Choice
The resort will be located in Marayoor, 1 hour drive from Munnar and 2.5 hour drive from
Thekkady, which are 2 famous tourist spots in the region. Marayoor is 3 hour drive from
Kochi international airport.
The location of the place is shown in Exhibit-01. The exhibit shows the district map and
also a bigger map showing the location of the town with respect to the nearest airport and
railways station.
This location is chosen for the following reasons:
a) Located in the state of Kerala which is strongly promoted by the government for
tourism
b) Strategy match with the promotion campaign of the state i.e. “God‟s own country”
c) Close to famous tourist spots, yet away from crowds
d) Provides the right environment required for the intended positioning of the resort
e) No nature resorts in Marayoor, hence no direct competition i.e. unique positioning
f) Advantages of lower cost, lesser crowd and pollution, and availability of land near
water stream
Page 4

5. Services Operations Management
g) Convenient location: Nearest railway station: Aluva about 142 km; Nearest airport:
Cochin International Airport about 110 km
h) Long favourable time for tourist visit: Tourist Season: August to March; Best time
to visit: Almost throughout the year except September & October
i) Absence of serious competition: Presently there are only 4 “real” nature resorts in
Kerala and none are in Marayoor. Further details of the resorts are given in Exhibit-
02. The existing hotels and resorts in Marayoor are the conventional ones and that
too on the economy side. The details and the rates of the existing hotels and resorts
are given in Exhibit-03. The lack of serious competition is also evident from the
fact that Marayoor doesn‟t appear on the website of Kerala tourism as a place to stay
(among hill stations – Exhibit-04) for tourists even though it is a tourist destination.
This can definitely serve as an opportunity for gaining the first mover advantage.
In the entire country, this type of “real” nature resort is present only in the state of Kerala
and in some states in the north-east. But, Kerala has an advantage by having a balance
between accessibility/ development and virginity of nature as compared to the north-east
where accessibility is an issue and the rest of the country where development has had a
detrimental effect on the virginity and beauty of nature. This poses a convenient and
attractive option for tourists looking out for nature resorts.
Strategic Positioning
The resort will be positioned as a getaway from the hectic professional life – to live 3 to 4
days in the lap of mother nature. The guests could spend their days living in an easy going
way, gentle relaxed and care free, avoiding the hurry burry of modern living. They can
listen to the heartbeat of tropical rain forests and music of the gurgling streams. The
package includes stay in well secured tree houses and cave houses, and bathing/fishing in
fresh natural water streams. Food is prepared from vegetables and fruits grown in organic
farms. Electronic equipments such as TV, computer and phone and news paper will not be
available. With no TV, music system and other electronic devices to contribute to
cacophony, the evenings and nights are quiet and in total contrast to the urban chaos. Living
with the birds on treetops, this is the closest one can get to nature. Hurricane lamps with
kerosene oil and solar energy are used for lighting.
The resort will sell the „experience of staying closest to nature‟ without compromising on
safety. The name of the resort will be Green Valley Nature Park (GVNP) which enhances
the positioning envisaged.
Generic Strategy
As Kerala is an eco-tourism destination of the country, there are enough numbers of hotels
and resorts in different price ranges. Hence, it will be very difficult to compete on the basis
of price alone. So, it will be ideal to compete on some unique aspects and differentiate
clearly from the others especially the vast majority of conventional hotels and resorts.
GVNP will follow a differentiation focus strategy until the brand is established. The
customers will be charged a premium to enjoy the preserved virginity of nature. The
selected strategy innately helps reduce cost due to locational advantage, however cost
reduction is not an immediate priority of the management.
Page 5

6. Services Operations Management
Broad
Cost Differentia GVNP
Leadership tion positio
leadership
ned
Scope here
Cost Focus Differentia
Narrow (Niche) tion Focus
Low Cost High Differentiation
Cost / Uniqueness
Figure 1 : Generic Strategy of GVNP
However, the management will try to acquire land at various suitable locations across South
India for further expansion whenever the management is ready. Since the location is a
unique resource, competitors cannot replicate the strategy so easily.
Target Segment and Unique Strategy
The resort‟s target customers are nature loving tourists mainly from the western society,
who are looking for spending a few days close to nature. They are not price sensitive, but
will not compromise on safety and comfort. The resort also intends to target the domestic
corporate customers mainly during off season.
The reasons for choosing foreign tourists as “Target Customers” are:
1. They are less sensitive towards price i.e. their price sensitivity of demand is inelastic
as compared to the Indian tourists.
2. As these tourists are in an alien country hence they will value safety and comfort
more than the Indian tourists.
3. The CAGR of foreign tourists in Kerala is 17% over the last 5 years as compared to
4% for domestic tourists. Moreover, the CAGR has seen an increase over the last 5
years as compared to the period prior to that (Exhibit-05). Hence, this is the right
time to enter the market and tap the increasing potential.
GVNP’s strategy to cater to the above segment includes the following aspects:
 Unique Geographic Position: Location is 3.5 hrs drive from airport. There should be
good road connectivity up to a spot which is atleast 4-5 km away from resort. After that
there should be mud (kuchha) road connecting main road and the resort which will add to
the nature‟s experience and distance it from the urban chaos. This will result in low cost
of the land while adding to the experience factor. Nearby town will have a small office of
the resort which will act as the interface with the external world. The office will have
facility to send messages over satellite phone to the resort.
 Unique Secluded & Scenic Location: Should be near a water stream. Facilities for
taking bath in the water stream, for fishing etc. It would be ideal if land is taken over in
Page 6

7. Services Operations Management
both sides of the water stream. Hence, it will result in exclusive access to some portions
of the water stream which is otherwise public property.
 Unique Staying Arrangement: There won‟t be any concrete buildings in the resort.
Huts will be made from material available from nature like red bricks, bamboos, thatched
roof. Both tree-tops and cave houses will be available. Cave houses will primarily be for
children and elderly guests who will find it difficult to manage on tree-top houses. This
reduces cost and it is aligned with positioning of the resort.
 Unique Food Experience: Only vegetarian food will be cooked in the premises. Food
cooking and consumption will not be allowed on the tree-top houses or the cave houses.
Most of the food will be cooked from vegetables grown in the premises in a natural way
without pesticides or chemicals. Food will be cooked in front of the guests (open air
kitchen) by using firewood and earthen pots made and available locally. If interested,
guests can try cooking their own dish. The guests could catch the fish from the stream
and cook for themselves. The guests can also use the wood stoves arranged in the open
air.
 Unique Nature Experience:
o Pottery classes will be given to interested guests. This will be an interesting activity
even for children.
o Elephant bathing for guests who are interested in enjoying close proximity to the
magnanimous gentle creature.
o Wild-life watch can be arranged for wildlife outside the periphery of the resort visible
from high perched watch towers at strategic locations all around the compound.
o Guided nature walk through the forest will be interesting for the guests and
enthusiastic bird watchers.
o Ayurvedic massage facility will be provided on additional payment basis so that
guests can relax in the serene environment.
o Trekking will be arranged early morning on fixed nature tracks with proper guide.
o Jungle tour on elephant back will be attractive. It will also include continuous
explanation by guide in order to familiarize guests with what they experience during
the ride.
o Plant a tree program: Customer could plant a tree in the stipulated area of the resort.
A fee to be paid by the guest for resort to look after the tree. Customers name will be
displayed. They could come back after a few years to see how the tree has grown.
o Day activities: Tie up with forest department for forest camping, visit to nearby
sandalwood forest, visit to tea/coffee plantations, visit to the tribal colony etc.
o Ban on Electronic Equipments: No phone, TV, internet, newspaper, air conditioner,
electric heaters etc. will be available in the resort. It should preferably be in a place
where there is no mobile phone network. Wireless sets will be used by the employees
when they are out in any area of the resort. Any important messages could be passed
on to the city office through satellite phone (premium to be paid). Side benefit is low
electricity charges.
 Other Unique Activities:
o Library in the resort: A lot of people would like to spend some time with books when
they are not busy with other activities. The resort will provide facilities for those who
are interested in hobbies such as painting. There will be a gallery where the art work
of guests can be displayed.
Page 7

8. Services Operations Management
o Update to friends and relatives: Provide facility for the tourists (through the resort
staff) for uploading their pictures, videos and a small day diary in the resort web site.
Once uploaded, a notification can be sent to all their friends. This will be a sort of
promotional activity for the resort. Also staff can capture different interesting
moments from guests‟ outdoor activities using digital camera and display the pictures
on the wall at the reception area.
o Celebrity list for each hut: There shall be a board in front of each hut on which the
names of celebrities who stayed in that hut will be displayed. Internationally
renowned Indian celebrities or movie stars could be given free trip to the resort so
that their photos can appear in the website and names can be displayed in the board.
These days a lot of Bollywood movies are shot in hill stations of Kerala. Such
opportunities could be used for this.
o Cultural programs: There will be a 30 minute gathering on every night (camp fire)
where interested people can perform art forms of their countries. The local tribes will
also perform their traditional art forms for the guests.
Order Qualifiers
 Security in the resort campus will be of prime importance. There would be enough
security staff and they would be deployed in such a way that they are always visible at
pre-decided locations in the resort area which are also known to guests. This is very
important for the guests to get the feeling that they are safe there. Security will be
available for people using the water stream, tree house/cave house, people going for
nature walk etc.
 Cleanliness of the rooms, kitchen, premises etc. will be of prime importance. Hence, the
areas where humans venture will be maintained properly by having a significant team of
housekeeping staff hired locally.
 Emergency healthcare facility will be available in the resort. Staff will be trained to
handle emergency health care. A doctor will visit the campus on a daily basis. Even a
doctor-on-call will be available in case a need arises to handle any on-the-spot
emergency.
 Basic comfort of the guests will be taken due care. Comfortable beds will be available
for sleeping, vehicles will be available for travelling longer distances, other facilities like
laundry facility, restaurant etc. will also be provided. Remaining comforts like phone,
TV etc. will not be available as it will not be in line with the strategy of offering the
“closest to nature” experience to guests.
 Ease of access will be ensured. The customer will be in a position to book his stay and
get best possible information about the resort through phone as well as through internet.
Order Winners
 “Closest to nature” experience will be the most important order winner as it will be the
differentiating factor compared to the nearby resorts and hotels. This will be delivered
through the unique location, staying arrangements, food consumption & cooking, nature
experience and other unique activities, and also lack of the usual comforts & luxuries of
the chaotic city life. GVNP will provide an environment which is absolutely close to
nature devoid of all those electronic gadgets which has become inseparable part of
modern lives. By design, this environment will compel the guests to spend more time
observing and appreciating the tranquility and intimacy of the pristine nature, which
Page 8

9. Services Operations Management
inculcate and augment the inner peace. Once a guest goes through the experience, he/she
is sure to recommend the place to his friends.
 24-hour in-house Ambulance will be available by keeping a dedicated ambulance van
in the resort. This will be required to make the guest reach the nearest hospital in the
shortest possible time (after receiving first aid) in the event of any untoward emergency.
 Far higher number of activities as compared to the other four nature resorts to indulge
the guests in the true nature‟s experience. This will enable to have a clear edge over its
competitors.
 Stickiness of customer will be ensured through loyalty or membership programmes.
This will help in inclining a customer‟s preference towards the resort thus reducing the
buyers‟ power.
 Pickup and drop facility from the nearest airport or railway station will be provided on
chargeable basis to the customer in order to make the entire trip convenient and hassle-
free.
As per the paper on foreign tourists in India by Prof.Manjula Chaudhary, the areas which
matter to foreign tourists are as follows (Exhibit-06):
1. Unsafe from petty crimes
2. Nuisance by beggars
3. Rich cultural heritage
4. Less exploited (close to nature)
5. Country of cheaters
As the resort will be in a reasonable inaccessible, secluded, serene location hence the
problems of beggars and petty crimes gets eliminated. As the guests will primarily be
interacting with the resort‟s employees hence there won‟t be a chance of petty crimes and
getting cheated. As far as the important issues of rich cultural heritage and closeness to nature
are concerned, this resort will fare much higher than any other hotel and resort in the entire
state. Thus we see that the resort in Marayoor takes care of the top 5 important aspects which
are critical for the target guests/ foreign customers.
All the order winners should be clearly listed on the resort website. Even the order qualifiers
must be communicated through pictures/photos though it may not be explicitly mentioned as
it will be of high importance to the foreigners for whom it may be very critical when making
a holidaying decision.
Cost implications of the strategy
One of the implications of such a strategy will be lower cost as compared to a similar priced
luxurious hotel:
 Low cost of land: due to the remote unexplored location. The location town does not
have any significant commercial activity hence the real estate prices are significantly
lower than comparable hill stations.
 Low cost of construction per square feet of area: due to the concept of staying on tree
houses or cave houses unlike plush luxurious hotel rooms.
 Low cost of manpower: as locals will be employed and trained in order to retain them
for a longer time, and the town is not much developed. This will also help in gaining the
goodwill of locals by generating employment opportunity for them.
 Low cost of power: as even the minimal power available in rooms will be generated
through solar energy. Backup generator will be available only for emergency purpose.
Page 9

10. Services Operations Management
Even the movement of people up and down the tree houses will be through a manually
operated rope and pulley system.
Sustainability of strategy
The chosen service strategy is sustainable due to the following reasons:
 Inimitability & Durability: Location of the resort is unique which is inimitable. The
resort will do better if it takes over suitable land in ideal locations in South India. Once
GVNP gets established, new resorts can be opened in the land already taken over.
Competitors will be at a disadvantage.
 Inappropriability: As the tourists will be staying for most of the time inside the resort,
hence most of the value generated by the tourism in the town will be captured by the
resort itself.
 Insubstitutability: The “closest” to nature experience is offered alongwith the order
winners which are unique features of the resort. The innovative new features of the resort
will enhance the „closest to nature‟ experience for the guests. Moreover, programs like
„plant a tree program‟, „guests club‟, „yearly mail program‟, „displaying guests‟ photos
on website‟ etc. will keep the guests engaged with the resort and will be an
encouragement for revisiting it.
 Cost advantage: over its competitors which will enable us to pass on the cost benefits in
terms of more and better services to customers at the same price. Thus the entire
experience will be more enriching than the other 4 nature resorts.
 Competitive superiority: We are positioning the resort as a get away from hectic
modern life, a place to immerse in the nature, which is a destination in itself. It is not
positioned as a lodging facility for visitors who visit the nearby tourist spot. In fact, it is
the other way round - people who come and stay in GVNP may also visit the nearby
tourist spots, but this will be the main purpose of their visit. The experience offered will
be unmatched.
Service Opportunity Matrix
Following table is indicative of the different business development opportunities which are
available for GVNP.
Temporal Expansion Spatial Expansion
- Arrange entire tour package right - Arrange package tours for foreigners
from air travel till road travel to the to other places also in India
resort and back to their home country - Impart soft skill training for
- Facilitate in sharing the experience corporates during lean months to
through websites, photo albums increase occupancy
- Can also provide travel insurance
Temporal Reconfiguration Spatial Reconfiguration
- This will be more relevant after the - This will be more relevant after the
resort is established resort is established
Page 10

11. Services Operations Management
Chapter 3: Service Quality
In this case, the service experience lasts for 3 to 4 days. If there are any inconveniences for
the customer, the staff can resolve them immediately. This reduces the problem of
simultaneity to a certain extent. Through well defined, standardized processes and rules as
well as well-trained staff, the problem of heterogeneity can be overcome.
Materialization of the service: This is an important aspect in influencing the customer
perception of the service provided. Special care should be taken to ensure the services
provided are „visible‟ to the customer (wherever applicable). Some examples are given
below:
 Materializing cleanliness: Once the toilets are cleaned, use a paper tape to tie around
the closet. The housekeeping staff must be given separate uniform and must have
proper kit & caution signs so that it gives confidence to customers who see them.
 Materializing nature experience: If the guests are willing, resort staff can video tape
the various outdoor activities and photographs of guests. The photos can be copied to
a CD and handed over to customer at the time of check out. When they are
completing the checkout formalities, the TVs kept at the reception can be used for
playing those videos in front of the guests. The feedback form will be handed over to
the guests after the videos/photo albums have been played. Facilities like watch
towers will give an opportunity for the guests to verify for themselves how close are
they to the nature and wild life.
 Materializing security: Detailed information on the number and positioning of the
security personnel can be printed in a brochure (present it as a familiarization guide)
and handed over to guests at the time of check in. The brochure can also include a
map of the campus along with location of all the facilities / services etc. Include
phone numbers and location of service personnel quarters etc.
 Materializing orderliness: There will be a half an hour induction program for the
incoming guests wherein the staff will explain the services, facilities available, rules
and regulations, safety measures to be taken etc. It will include a campus walk
through etc. There should be sign boards everywhere in the campus. Display photos/
names of all the staff in the check in area / in front of the office.
Satisfiers and Delighters
Monovalent Dissatisfiers: Absence of these aspects causes dissatisfaction. Hence the resort
management needs to be very careful in ensuring these things are taken care of.
 Security in campus as well as during various activities such as trekking, bathing in
water stream, jungle tour etc.
 Clean water, premises, bathrooms will be ensured by having dedicated housekeeping
teams.
 Basic facilities like laundry facility, restaurant etc.
 Courteous staff through proper training.
 Availability of power throughout the day through solar energy and backup generators
for emergency use.
 Good quality food ensured through naturally grown food and spices and cooked in
traditional way.
 Sign boards within the campus as well as outside campus. Sign boards should be
placed every 500 meters starting from the main highway.
Page 11

12. Services Operations Management
Bivalent Satisfiers: Absence of this cause dissatisfaction and presence cause satisfaction.
 Immediate medical help if the need arises i.e. doctor-on-call.
 The employees who are hired locally must be trained in English so that they can
communicate properly with the foreign tourists.
 Respect the guests, respect their privacy etc.
 Half an hour induction at the beginning of the stay, which gives more details on
available services, location of different facilities etc.
 Engage with the guest to understand if they have any special needs on any day etc.
Monovalent Satisfiers: Absence of these aspects does not cause dissatisfaction. Hence these
will serve as delighters.
 Permanently positioned ambulance with basic emergency care facility to transport any
guest in the event of an emergency.
 Welcoming all guests with a grand traditional Indian local tribal ceremony.
 Gifts (mementoes – exclusively available in the locality etc.) can be given at the time
of leaving. Name of the resort will be printed on the gift and/or cover.
 A photograph (group photo or photo from one of the day activities) can be presented
to the guest at the time of checkout.
 One staff can be attached to each „guest group‟ (say a family) for any immediate
needs or enquiry etc.
 Staff will try to understand the customer preference regarding food, other special
needs etc. on the 1st day and try to provide the same on other days without getting
reminded.
 Staff will provide special attention for kids and elderly.
 Prize(s)/gift(s) can be sent to people who had given practical suggestions for
improvement.
 Arrange/ sponsor celebration for guests if their birthday, anniversary etc. coincides
with their stay at the resort.
 Ayurvedic massage facility on payment basis to experience Kerala‟s specialty in
nature‟s lap
5 Gaps Model
Gap 5 – Most important one. It is the gap between expected service and perceived service by
the customer. Closing gap 5 has 2 parts:
1. Setting the right expectations with the customer through integrated customer
communication, before their visit. The customer communication plan explained under
section „Integrated customer communication‟ explains how this can be done.
Customer communication plan mentioned in this section is also intended to close the
Gap 4 which the gap between service delivery and external communication.
2. Second part is materialization of the service which will improve the customers
perception of the service received during their visit.
Since Gap 5 is a function of Gaps 1, 2, 3 and 4, efforts will be taken to close other gaps
individually as well.
Gap 1 – This is the gap between the management‟s perception of customer expectations and
the actual customer expectations. The data required to close this gap will be collected through
2 means mainly:
3. Regular feedback through informal methods will be captured by the manager while
interacting with customers during their stay.
4. The feedback will be gathered from the customers during checkout checkout.
Page 12

13. Services Operations Management
5. Recorded conversations with prospective customers. Prospective customers will
definitely ask about the things which they expect from such a resort. That will be a
good input.
Gap 2 and 3 – Gap 2 and 3 need to be closed by way of excellence in implementation of the
processes. Two means which can be employed to close these 2 gaps are listed below:
1. External trained professionals‟ service can be sought to observe the operation of the
resort and make recommendations as to how it is performing with respect to gap 2 &
3.
2. Careful selection of the staff and periodic training for them will help excellence in
execution.
Integrated Customer Communication
Well developed professional looking website will provide the tariff details, facilities, photos
of resort, photos of guests who stayed there in the past, their feedback etc. A video on the
resort facilities, customer activities and customers‟ feedback can be prepared and uploaded in
the website. Once the customer books the resort, he/she will be given access to other
exclusive sites in the web page which give details and videos about the activities and daily
routine in the resort. It will also include the weather forecast, menu for the week, explanation
of each item in the menu etc. This will set the right expectations with the customers. After
going through this, if the customer wants to cancel the reservation in 24 hours, 90% refund
can be made.
Chapter 4: Service Pricing and Demand & Capacity Mgmt.
Pricing
The prices of the competitors in the “real” nature resort business are as shown in Exhibit-02.
The daily rates for a double room are as follows:
1. Green Magic Nature Resort, Wayanad - Rs 9,500
2. Carmelia Havens Resort, Vandanmedu - Rs 4,000
3. Jungle Park Resort and Tree Houses, Wayanad - Rs.6,500
4. B-Six Holiday Resort - Tree House, Munnar - Rs.2,000
In order to compete effectively in the initial phase, the resort will be priced at Rs.9,000 for a
double-bed room per night. As for foreigners, price will also be a cue for quality, hence
premium pricing is essential. The same will also hold true for premium domestic customers
and top corporates. A set of auxiliary services provides room for both differential pricing and
bundling of services.
Pricing will be done based on the following:
 Differential targeting: Special discounted rates will be not be promoted during the
off-season period to improve the capacity utilization. Rather during the off-peak
season for foreign tourists (Apr-Jul), the Indian tourists will be targeted as then it will
be peak summer season and holidaying season in India and hence Indian tourists will
be looking out for such escapades. This will help in managing demand and promoting
off-peak consumption.
 Bundling of services: Different set of auxiliary services in different package priced
differently. Customer gets choice. Package will be made for 2 nights-3 days and 3
nights-4 days in order to bundle the different services like massage, trekking, jungle
Page 13

14. Services Operations Management
tour etc. in the package and hence increase occupancy without reducing the prices.
The package will include visit to various tourist spots in Marayoor as mentioned in
Exhibit-07.
 Bundling across time: If guests only want to enjoy the stay then longer stay will be
encouraged by ensuring that the price for 4-day trip is lesser than twice that of 2-day
price.
 Bundling across geography: Tie up with resorts in other nearby tourist spots like
Kumarakom, Alappuzha. Customer gets discounted price if they choose more than
one resort.
 Temporal expansion: In 4-day or 5-day package, visit to nearby tourist spots can be
arranged by the resort itself. This helps the resort to generate revenue from the
additional stay and other related services. Without this arrangement, tourists might opt
to stay in the resort for 2 days before shifting base to another resort in the other tourist
spot.
Demand & Capacity Management
Demand will be managed by:
 Segmenting demand: The promotion to tourists will be done during their winter
season (September to March) and the promotion during remaining times will be done
to the domestic travelers (April to July). The domestic traveler will prefer these
months due to school holidays and peak summer season. This will also help in
maintaining relatively fixed number of resources like manpower.
 Reservation systems: this will be emphasized in order to avoid walk-in customers
and have pre-planned demand so that the manpower and facility can be better
prepared for receiving customers.
Capacity will be managed by:
 Increasing customer participation: This will be done by activities such as
encouraging customers for cooking food so that it adds to the experience while
reducing strain on capacity even in peak times.
 Makeshift facility: Tent facility can be provided if a big group comes in for training.
Pricing will be adjusted if tent is used. However, „staying in tent‟ will be projected as
a part of training and a part of the wholesome experience, rather than an adjustment
due to lack of space.
 Cross-training of employees: The employees can perform multiple roles like room
attendants, trekking guides etc so that their utilization is high. Attaching one
employee per family will also require such an arrangement. This will help in creating
an adjustable capacity.
Page 14

15. Services Operations Management
Chapter 5: Service Positioning and Design
Degree of labour intensity, customization and judgment by frontline
staff
Labour intensity: The resort will be less intensive in labour as the ratio of the manpower
involved to the infrastructure will be lower. The bookings will be handled online alongwith
telephonic facility. During the stay, for the guests, the experience of ambience will be much
more important. Hence, the labour intensity will be between medium to low.
Customization: The customization done for the guests will be lower as it will be critical to
make them experience a fixed set of activities. Most of the activities in which the guests will
be involved will not be something which they come across in the daily urban lives. Hence, it
will be necessary that each guest undergoes the special experience. Only the peripheral
services like pickup and drop, booking will be customized.
Judgment by frontline staff (Interaction): The degree of interaction will have to be higher
as the staff will form an important link in ensuring that the guests are exposed to each and
every unique aspect of the resort. Only then will the guests be able to appreciate the entire
experience and value it much more than staying in a conventional premium hotel or resort.
Thus the training and communication of staff will be a crucial aspect for the success of the
model.
Figure 2: Comparison of GVNP with competitors - Customization vs Interaction
High
Conventional
Luxury Hotels
Customization GVNP
Nature camps
by Kerala Pvt. Nature
Low forest deptt. Resorts
Hotels &
Resorts in Conventional
Marayoor Resorts
Low High
Interaction
The positioning diagram has been made comparing customization vs interaction as labour
intensity will be low across all the hotels and hence, only this diagram is the most relevant.
The above 3 aspects are such because the execution and design has to match the service
strategy. Thus eventually it will be a high touch service factory as per the article in
Reference-08.
Page 15

16. Services Operations Management
The other positioning diagrams comparing GVNP with its competitors on different aspects is
given below.
Figure 3: Comparison of GVNP with competitors - Price vs Features
Conventional
Luxury Hotels
GVNP
High
Pvt. Nature
Resorts
Price
Conventional
Resorts
Nature camps
by Kerala
Low forest deptt.
Hotels &
Resorts in
Marayoor
Low High
Features
Figure 4: Comparison of GVNP with competitors - Price vs Closeness to Nature
Conventional
Luxury Hotels
GVNP
High
Pvt. Nature
Conventional Resorts
Resorts
Price
Nature camps
by Kerala
Low forest deptt.
Hotels &
Resorts in
Marayoor
Low High
Closeness to nature
As we can see from the above diagrams that the positioning of the GVNP will be quite
unique which will help it differentiate itself clearly from the competitors and especially when
it comes to nature, GVNP will clearly stand apart from its competitors.
Such positioning will be in line with the laid out service strategy and hence have a coherent
goal. This will enable the resort to have a clear competitive advantage which will also be
sustainable.
Page 16

17. Services Operations Management
Service Blue Printing
The various activities involved in the entire experience of a tourist to the resort will comprise
mainly of the following 3 broad categories:
1. Booking
2. Pickup from airport
3. Stay at resort
4. Drop to airport
5. Post-holiday period
A small portion of the various activities are mapped in the Service Blueprint depicted below.
Other activities will also be conceived and mapped on similar lines.
Customer calls for Guest is received Guest welcomed at Elephant bathing Guest taken for Other morning
booking or books by driver for the resort done by guest in other tourist place activities
thru internet pickup & driven presence of visit & then involving guests
to resort mahout brought back
Guest checked in,
briefed for 30
minutes about
campus & Customer
Guest arrives at allotted the prepares for
Guest taken on Some part of
the airport chosen stay house checkout after 4-5
early morning trek lunch prepared by days of stay
guest like
barbeque items
Guest settles the
Customer goes to bill
the restaurant and
Guest experiences
orders food
the tribal dance in
the evening & also
participates
Guest is thanked
& dropped back to
Guest pays the Other evening the airport
restaurant bill activities involving
guests
Line of interaction
Guests taken for
campus tour to
familiarize them
with campus &
security measures Guest is sent a
Vegetables grown Food prepared in feedback form
naturally within visibility of the thru email to
the premises customer allow him the
time to reflect
Customer also
experiences
cleanliness &
hygiene levels of
premises
Line of visibility
Bill prepared by
cashier for
Customer record settlement
checked if he has
Bill is prepared by
stayed earlier with
the cashier
the resort
Feedback is
Booking center or analyzed & shared
server allots with departments
booking
Line of internal interaction
Page 17

18. Services Operations Management
As we can see that there will be high focus on keeping activities above the line of interaction
in order to make the customer experience enriching.
Line of Interaction
 Customer calls to enquire about the facilities
 Check In and Check Out
 Welcoming guests in traditional manner
 Ordering for food
 Guided tours, trekking, dance with tribals, elephant bathing etc.
 Activities such as plant a tree program, fishing, cooking etc.
 Self cooking in the open kitchen
 Local sight-seeing at tourist spots
 Pickup and drop facility from airport
 Familiarizing guests thru orientation program on 1st day and campus tour
Line of Visibility
 Open Kitchen (very important) to convey hygienic food preparation
 Security / safety measures adopted within campus
 The resort campus itself in terms of cleanliness and natural beauty
 Taking feedback after few days thru internet to demonstrate commitment towards
customer care
Line of Internal Interaction
 Booking over telephone or internet depending on availability & customer preference
 Ensuring 24 hr power supply/ water supply
 Ordering/supplying grocery
 Cleaning of house when the guests are out
 Bill preparation and processing
 Analysis of customer feedback & thanking customer for feedback
Service Mix (7 Ps of Service)
 Product/Service: Real experience of being “closest” to nature
 Price: Premium pricing due to uniqueness and to serve as cue for quality
 Place: Made accessible thru internet and telephone only to avoid brand dilution
 Promotion: The resort will be promoted as “Experience what Adam would have”.
The resort will have a professionally designed website with photos/videos/ feedback.
A video with noises/sounds from the forests, the water stream etc. will be uploaded on
the website. It will be promoted through Kerala tourism website and also through
advertisements in print media (airline & holidaying magazines) and TV only. Cheap
modes of advertising will be avoided to prevent brand degradation and reach the
target customers.
 Process: Divergence will be minimal. The whole service will be through standardized
processes so that the problem of heterogeneity is avoided.
 People: Careful selection of people and periodic training will be imparted for the
customer facing staff. Locals will be preferred to have higher retention which is
necessary for building relationships with customers.
 Physical Evidence: This aspect is covered earlier under “materialization” section.
Page 18

19. Services Operations Management
References
1. Information on tree top houses: http://www.aadityatours.com/TreeTopHouses.htm and
http://www.gatewayforindia.com/articles/treetop.htm
2. Information on one of the best genuine nature resorts in Kerala which has tree-tops:
http://www.vythiriresort.com/kerala-resorts-packages.htm
3. About Kerala tourism: http://www.keralatourism.org/
4. Information about Marayoor town: http://en.wikipedia.org/wiki/Marayoor,
http://www.marayoor.com/ and http://www.marayoortourism.com/pages/3district.htm
5. Statistics of the foreign and domestic tourists in India: http://www.indiastat.com/
tourism/29/stats.aspx
6. Map of Marayoor with respect to other in Kerala: http://maps.google.co.in/maps?q=
marayoor%20map&hl=en&um=1&ie=UTF-8&sa=N&tab=wl
7. India's image as a tourist destination – a perspective of foreign tourists, Manjula
Chaudhary, Department of Tourism Management, Kurukshetra University, Kurukshetra
(Haryana), India - Tourism Management 21 (2000) 293-297, Elsevier Science Ltd.
8. A 3-Dimensional Model for Strategic Positioning and Benchmarking of Services,
Vaikalathur S Mahesh Course Director (Service Management), The School of Business,
The University of Buckingham, UK - Service Management: New Perspectives, New
Initiatives, Ed.: C. Armistead and R. Teare, Cassell, 1995
Page 19

20. Services Operations Management
Exhibits
Exhibit-01 : Location of Marayoor in Idukki district & Kerala state
Page 20

21. Services Operations Management
Exhibit-02 : Tree-top stays in Kerala
Green Magic Nature Resort
Thalipuzha, Vythiri, Wayanad, Kerala
Tree House: Rs 9,500 (per double room per day)
Carmelia Havens Resort
Vandanmedu, Idukki district, Kerala
Tree house: Rs 4000/-
Apart from the tree houses, this resort has a multi-cuisine restaurant, swimming pool, watch
tower, Ayurvedic body massage center, open-air barbeque and facilities for various games. It
also has cave houses and attractions like boating, trekking, fishing, visit to tea factory and
cardamom curing center.
Jungle Park Resort and Tree Houses
Vythiri, Wayanad, Kerala
Tree house: Rs.6,500
B-Six Holiday Resort - Tree House
Near Lechmi Estate, Mankulam Road, Munnar, Kerala.
Tree house (Double): Rs.2000
Tree house (Single): Rs.1,600
ENCHANTING VYTHIRI (2 Nights)
Serenity Cottages/ Vythiri Vythiri Haven
PARTICULARS Habitat/ Planters Retreat (Available from Nov
09)
Rate for a couple for 2 nights and 3 days 13000 20000
Package include
Welcome drink on arrival
All meals: Bed tea/coffee, 2 Breakfast, 2 Lunch & 2 Dinner.
Two children below 5 years sharing with parents - complementary.
Yoga and Meditation in the morning
Guided trekking inside the resort: - to the natural waterfalls, streams, natural pools etc.
Relaxation Head Massage for two pax in Vythiri Spa- 15 Minutes each.
Bonfire in the evening – Subject to the climatic conditions.
Usage of indoor & outdoor games facilities at the resort.
All taxes are included in the above rates.
Check in 12noon & Check out 11am.
Validity: 1st Sept 09- 20th Dec 09 and 1st Jan 2010 till 15th June 2010.
ENCHANTING VYTHIRI (3 Nights)
Page 21

22. Services Operations Management
Serenity Cottages/ Vythiri Haven
PARTICULARS Vythiri Habitat (Available from Nov
/Planters Retreat 09)
Rate for a couple for 3 nights and 4 days 19500 30000
Package include
Welcome drink on arrival
All meals: Bed tea/coffee, 3 Breakfast, 3 Lunch &3 Dinner.
Two children below 5 years sharing with parents – complementary.
Yoga and Meditation in the morning
Guided trekking inside the resort: - to the natural waterfalls, streams, natural pools etc.
Relaxation Head Neck and Shoulder Massage for a couple in Vythiri Spa- 15 Minutes each (For Serenity
Cottages/ Vythiri Habitat/ Planters Retreat guests)
Relaxation Full Body Aroma Massage (for a couple in the Spa 1 Hr each (for guests staying in Vythiri Haven)
Usage of indoor & outdoor games facilities at the resort.
All taxes are included in the above rates.
Check in 12noon & Check out 11am.
Validity: 1st Sept 09- 20th Dec 09 and 1st Jan 2010 till 15th June 2010.
HONEYMOON PACKAGE - SILVER (2 nights and 3 days)
Serenity Cottages/ Vythiri
Vythiri Haven
PARTICULARS Habitat/
(Available from Nov 09)
Planters Retreat
Rate for a couple for 2 nights and 3 days 16000 23000
Package include
Welcome drink on arrival
Accommodation for a couple at Vythiri Resort
Simple decoration and fruit basket in the room on arrival day.
All meals: Bed tea/coffee, 2 Breakfast, 2 Lunch & 2 Dinner .
Half Day sightseeing to Pookot Lake and View Point (by Non AC Jeep. Entry and boating charges extra).
One session of candle light dinner with chef’s special dish, Honeymoon cake and a glass of Wine
Guided trekking inside the resort to the natural waterfalls, streams, natural pools.etc.
Bonfire in the evening (subject to climatic conditions)
ADAM and EVE MASSAGE at VYTHIRI SPA for a couple (One session only)
Complementary usage of Steam Room & plunge pool (15 minutes) on Day 2 at Vythiri Spa
There are no additional rates and taxes.
Check in 12noon & Check out 11am.
Page 22

23. Services Operations Management
Validity : 1st Sept 09- 20th Dec 09 and 1st Jan 2010 till 15th June 2010
TOP
HONEYMOON PACKAGE - PLATINUM( 3 nights and 4 days)
Serenity Cottages/ Vythiri Haven
PARTICULARS Vythiri Habitat/ (Available from Nov
Planters Retreat 09)
Rate for a couple for 3 nights and 4 days 22500 33000
Package include
Welcome drink on arrival.
Accommodation for a couple at Vythiri Resort
Simple decoration and fruit basket in the room on arrival day.
All meals: Bed tea/coffee, 3 Breakfast, 3 Lunch & 3 Dinner
Half day sightseeing to Soochippara Waterfalls / Edakkal Caves / Padinjarathara Earth Dam (one location)
by Non AC Jeep (Entry charges + Boating charges if any to be paid extra).
One session of candle light dinner with chef’s special dish, Honeymoon cake and a glass of Wine
Guided trekking inside the resort to the natural waterfalls, streams, natural pools.etc.
Bonfire in the evening (subject to climatic conditions)
ADAM and EVE MASSAGE at VYTHIRI SPA for a couple (One session only)
Complementary usage of Steam Room & plunge pool (15 minutes) on Day 2 at Vythiri Spa.
There are no additional rates and taxes.
Check in 12noon and Check out 11am.
Validity: 1st Sept 09- 20th Dec 09 and 1st Jan 2010 till 15th June 2010
TOP
VYTHIRI EXCLUSIVE HONEYMOON PACKAGE - (2 Nights and 3 Days)
Serenity Cottages/ Vythiri Habitat/
PARTICULARS Planters Retreat +
1 Night Tree House
Rate for a couple for 2 nights and 3 days 21500
Package include
Welcome drink on arrival.
Accommodation for a couple at Vythiri Resort as mentioned above
Simple decoration and fruit basket in the room on arrival day.
All meals: Bed tea/coffee, 2 Breakfast, 2 Lunch & 2 Dinner.
Half Day sightseeing to Pookot Lake and View Point (by Non AC Jeep. Entry and boating charges extra).
One session of candle light dinner with chef’s special dish, Honeymoon cake and a glass of Wine.
Guided trekking inside the resort to the natural waterfalls, streams, natural pool etc.
Page 23

24. Services Operations Management
Bonfire in the evening (subject to climatic conditions)
ADAM and EVE MASSAGE at VYTHIRI SPA for a couple (One session only)
Complementary usage of Steam Room & plunge pool (15 minutes) on Day 2 at Vythiri Spa.
There are no additional rates and taxes.
Check in 12noon & Check out 11am.
Validity: 1st Sept 09- 20th Dec 09 and 1st Jan 2010 till 15th June 2010
Page 24

25. Services Operations Management
Exhibit-03 : Existing hotels and resorts in Marayoor
Page 25

26. Services Operations Management
Page 26

27. Services Operations Management
Page 27

28. Services Operations Management
Exhibit-04 : Existing tourist destinations (hill stations) as
suggested by Kerala tourism
Page 28

29. Services Operations Management
Exhibit-05 : Foreign vs Domestic tourists arrivals in Kerala (1987 –
2007)
Month-wise Foreign Tourists Arrivals in Kerala
(1987 to 2007)
Year Jan. Feb. M arch April M ay June July Aug. Sep. Oct. Nov. Dec. Total
1987 7881 5797 4365 3325 1583 1091 1343 31 1
1 4391 5409 6602 6918 51816
1988 7781 5745 3970 2157 1 94
1 857 1734 3244 2132 6542 8072 8655 52083 1%
1989 9696 7713 5905 3257 1798 1401 2683 3849 3200 6320 8209 8921 62952 21%
1990 9139 7625 61 1
1 3719 3232 2502 3244 4476 4286 6384 6814 8607 66139 5%
1991 9341 7287 5904 4243 3124 2532 3729 4338 4906 6220 7701 9984 69309 5%
1992 1 037
1 9472 6975 6097 4911 4873 4304 7062 6829 8582 9948 10545 90635 31%
1993 1 9
081 9667 8199 6696 5229 4814 5760 7627 7189 8326 9443 1 440
1 95209 5%
1994 13544 10941 8232 5847 4341 4875 4383 5030 16598 16346 5662 8769 104568 10%
1995 20313 17942 15938 9019 6183 3894 7331 1 662
1 1 524
1 1 061
1 13431 14674 142972 37%
1996 21859 20294 20149 1 467
1 6758 5490 8019 12751 13767 1 85
21 20422 23694 176855 24%
1997 24773 20354 1 34
91 1 852
1 8751 7643 1 47
01 1 896
1 10003 1 91
1 7 19542 2641 182427
5 3%
1998 27709 23075 19877 16493 1 355
1 5755 5535 10024 12385 12531 19208 25994 189941 4%
1999 31541 25624 20816 14277 10398 8040 10656 14487 1 806
1 13367 19007 22154 202173 6%
2000 24388 23268 17499 13964 12923 8306 8514 17764 18222 17344 22592 25149 209933 4%
2001 31625 30862 21957 17868 10653 6571 7747 1 1
361 12391 1 91
1 3 1 0
931 24322 208830 -1%
2002 29440 29105 19246 18028 10794 6610 8581 14226 17808 20744 26190 31792 232564 11%
2003 41845 36163 25261 20106 12675 10820 14824 19240 20253 24702 32165 36567 294621 27%
2004 45630 43418 35006 23546 14870 12734 17228 27341 21 03
1 22160 381 8
1 44392 345546 17%
2005 43345 41 4
31 33479 20191 1 9
491 13239 17593 24398 20064 28068 42324 47565 346499 0%
2006 58858 56530 39584 32377 20470 16209 23578 28821 21888 28681 44421 571 7 428534
1 24%
2007 72814 66131 56151 34487 21098 18262 25199 35563 24708 33534 55647 7221 515808
4 20%
17% 11% 12%
Source : Department of Tourism, Govt. of Kerala. CAGR for 5 yrs 10 yrs 20 yrs
Month-wise Domestic Tourists Arrivals in Kerala
(1987 to 2007)
Year Jan. Feb. M arch April M ay June July Aug. Sep. Oct. Nov. Dec. Total
1987 61837 52158 53228 41786 37860 35536 36922 37658 31568 40517 40925 40624 510619
1988 54627 48751 51825 40758 44632 44536 45643 43317 46514 47551 53140 60756 58205014%
1989 56948 59252 55777 42410 48560 43322 51 5
71 49890 52931 55294 55899 62250 634248 9%
1990 66255 55930 72108 66794 77815 71600 72862 69754 73794 77264 79320 83029 866525 37%
1991 77962 69944 78039 75666 77336 73706 74121 74214 78500 85620 90974 92909 948991 10%
1992 93010 81487 76611 79973 92422 78701 76787 79617 81809 83000 85265 85458 994140 5%
1993 99472 83201 81297 80422 93458 80001 77469 85268 84524 85561 88176 88387 1027236 3%
1994 1 338
21 104687 1 95
061 102916 104075 106673 96783 86554 99724 105405 85978 106394 1226722 19%
1995 329248 283452 300534 321449 355890 235655 370480 362669 364752 368217 324953 298357 3915656 219%
1996 334179 307909 306910 350525 484802 250424 400327 402125 448715 435763 359192 3221 4403002
31 12%
1997 484975 408933 341863 398367 524497 31 6
451 412655 387696 461 66
1 479543 377800 361390 4953401 13%
1998 354406 312576 308514 330395 347725 296525 287957 367812 441951 421477 429204 583172 4481714 -10%
1999 453729 402718 41 1 456629
991 441644 351733 356893 367486 382841 403944 41 233
1 439526 4888287 9%
2000 454330 382657 369231 453194 486006 356260 361034 373599 386123 435426 476877 478484 5013221 3%
2001 472377 399215 396320 498856 479515 383196 396805 428291 432608 427181 442386 482942 5239692 5%
2002 471608 387550 382452 499217 537429 406500 406622 488050 466928 472056 494481 555363 5568256 6%
2003 51 396
1 4271 6
1 400503 51 3
421 566603 450537 421346 469920 496977 513082 526578 572957 5871228 5%
2004 523145 451420 422727 503583 561503 440469 508893 489182 457398 516386 544746 552730 5972182 2%
2005 499698 432673 428235 500005 562616 445652 467532 483490 485205 519239 552523 569555 5946423 0%
2006 532748 469363 457435 522408 610241 467879 478701 51 1
1 98 517659 543876 556297 60391 6271724
9 5%
2007 588620 501204 485722 557785 639712 502224 478781 525309 529847 555721 618908 659108 6642941 6%
4% 3% 14%
Source: Department of Tourism, Govt. of Kerala. CAGR for 5 yrs 10 yrs 20 yrs
Page 29

30. Services Operations Management
Exhibit-06 : The expectation and satisfaction levels of foreign
tourists in India
Exhibit-07 : Various tourist spots in Marayoor
Page 30