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The TAJ Mahal Palace, Mumbai.


Growth is expected to slow in 2008-09 because of the recession in the EU & USA. A 3% increase in Travel & Tourism revenues & 6 million new jobs to be added worldwide in 2008.* World travel & tourism is expected to contribute nearly US$5,890 billion to global GDP in 2008.*

*According to World Travel & Tourism Council (WTTC) in collaboration with research partner Oxford Economics.


While India’s share in world arrivals was about 0.5 per cent, its share in revenue generated from tourism worldwide was over 1 per cent. The booming tourism industry has had a cascading effect on the hospitality sector with an increase in the occupancy ratio and average room rates. Foreign tourist arrivals during Jan–Oct 2008 increased by 370,000 to 4.32 million as compared to 3.95 million during the corresponding period of 2007. Forex earnings from tourism in India rose from US$ 8.293 bn during Jan-Oct 2007 to US$ 9.696 bn during Jan-Oct 2008.




India's travel and tourism industry is expected to generate approximately US$ 100 billion in 2008 and almost US$ 275.5 billion by 2018.* Growing at an average of 9.4 per cent over the next ten years. Travel and tourism is expected to contribute 6.1 per cent to India's GDP and provide almost 40 million jobs by 2018.*

*According to the latest Tourism Satellite Accounting (TSA) research

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Average occupancy ratio is 75-80%. Average increase in the room rates has been hovering around 22-25%. Estimated requirement of hotel rooms is 240,000, the current availability is just 90,000 rooms - leaving a shortfall of 150,000 rooms to be provided.* Infosys Technologies has a countrywide room inventory of 13000, the largest in India.

*According to

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Taj Hotels Resorts and Palaces is opening two safari lodges in MP at Panna and Kanha National Parks. Global hotel chains like Hilton, Marriott International, Berggruen Hotels, Cabana Hotels & InterContinental Hotels group have a presence in India. Marriott, which manages six hotels in India at present, expects to have 25 hotels by 2011 with room strength of 8,000–10,000. EIH, which owns the Oberoi and Trident group of hotels, is looking at opening 10 hotels in India and abroad in the next three years.

About the company…

Hotels Company Limited (IHCL) owns the brand “Taj Hotels, Palaces and Resorts”. IHCL in turn is controlled by the Tata Group.

also owns Ginger hotels.


history began more than 100 years ago when the Group’s founder, Jamsetji Tata, opened his first hotel, the Taj Mahal Palace, in Mumbai in the year 1903.

the years IHCL has increased its scale of operations to 58 hotels in India and 17 hotels around the world, and has created a niche for itself in the hospitality sector.


IHCL signed a strategic marketing alliance in 2004 with Raffles International, which is a world renowned hotel group. Recognising the importance of people in the service industry IHCL established the Indian Institute of Hotel Management, Aurangabad, in 1993. The Institute offers a four-year diploma in hotel management. IHL runs a professionally managed travel agency providing total travel management solutions under the brand name Inditravel. Inditravel offers services like air & rail ticketing, hotel bookings, car rentals, visa and passport assistance, foreign exchange assistance, global telecards and medical insurance.

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IHCL also operates Taj Air, a luxury private jet operation with two advanced Falcon 2000 aircrafts.

also operates Taj Yachts, two 3-bedroom luxury yachts which can be used by guests in Mumbai and Kochi (Kerala). also operates an airline catering service under the brand name TajSATS Air Catering as a joint venture with Singapore Airport Terminal Services, which is a subsidiary of Singapore Airlines.



IHCL’s foray in the global arena was marked by its licensing agreement, with the UK based Bass Hotels & Resorts for the use of the name Crowne Plaza, way back in 1982. This was followed by a 10-year contract in 1990 to manage a hotel in Zambia. This hotel was renamed the Taj Pamodzi in 1995, when IHCL picked up a 70 percent stake in it. The latest acquisition is that of a 100- room hotel in Sydney in December 2005. This hotel is rated amongst the top 5 hotels in Sydney. It marks IHCL’s first foray into Australia. In March 2006, IHCL entered into a marketing alliance with Shilla Hotels & Resorts, South Korea.


IHCL has ventured beyond hotels and expanded its presence in airline catering, operating private jets and yachts, service apartments, spas and wildlife lodges. has also introduced spas at some of their hotels under the brand name Jiva and Jiva Grande that provide Ayurveda-based body therapies. year 2004 marked IHCL’s foray into serviced luxury residences in India with the launch of Taj Wellington Mews in Mumbai. year 2005 saw the launch of several speciality restaurants at IHCL’s hotels. These include Wasabi (Japanese restaurant), Hip Asia (Pan Asian restaurant), Distil (bar), Blue Ginger (Vietnamese restaurant) and Vista (24hour dining restaurant).





is well poised for growth and to leverage the advantage of the rapidly growing tourism industry in India. Encouraged with the success of its Ginger hotels.

is in the process of rolling out such hotels to several new locations – Pune, Nasik, Mysore, Panjim,Varanasi,Trivandrum, Jamshedpur and Durgapur.

has recently entered into a joint venture with Conservation Corporation Africa and Cigen Corporation to provide tourists with wildlife.

Marketing mix: The TAJ Brand

brand “Taj Hotels Resorts and Palaces” comprises 58 hotels across India and 17 hotels globally. The hotels are grouped into 3 categories Luxury, Leisure and Business. The Taj Luxury Hotels offer lavish accommodation, gourmet specialty restaurants and bars, fitness centres and spas and well-equipped business and banquet facilities. Leisure Hotels are targeted at family holidays and include beach resorts, garden retreats, palaces and historic and pilgrim centres with a wide variety of activities for all age groups. Business Hotels offer contemporary business facilities and modern conveniences and are located in the heart of India’s key commercial cities and towns.




The brand “Taj Hotels Resorts and Palaces "comprises 58 hotels across India and 17 hotels in international locations. The hotels are grouped into 3 categories - Luxury, Leisure and Business. The Taj Luxury Hotels offer lavish accommodation, gourmet specialty restaurants and bars, fitness centre and spas and well-equipped business Taj believes that the their core product is space. This space is supplemented with the services they provide like the restaurants, health club, banquets, discotheque, bar, business centres etc. Their other supplementary products also include travel arrangements, ticketing, airport pick-ups, sightseeing etc.

A few of the Facilities and Services offered are as follows:

Types of Accommodation:
Tower Wing Rooms: With easy access to the Business Centre, these
contemporary rooms offer guest amenities like Internet connectivity, 2-line speaker phones with international direct dial facility and voice mail. Mini bar, personal safe, channel music and television with satellite programmes. Heritage Wing Rooms: These rooms are renowned for their architecture and exude an aura of old-world elegance. Each corridor in this Wing resembles an art gallery, and the design, décor and furnishing ensure that no two rooms are alike. Guests have a choice of rooms that overlook the city or pool or face the Gateway of India and the Arabian Sea. Taj Club: Located on the top floors of the Heritage Wing, Taj Club is designed for the discerning business traveler. Guest amenities and services include complimentary airport limousine transfers, private check-in at the Club desk, inroom fax, personal safe, a complimentary bottle of wine, valet service and complimentary deluxe Continental breakfast. Taj Club also offers guests exclusive Meeting Rooms and a Business Service Unit on the Club Floor.

Suites: Choose from elegantly appointed Junior Suites, Executive Suites, tastefully
decorated Large Suites, newly renovated Luxury Suites or spacious, plush Grand Luxe Suites. The finest suites at The Taj Mahal are the luxuriously appointed Presidential Suites. Each of these suites is decorated with original paintings and antiques that transport guests into a world of regal luxury and grandeur. Broadband wireless Internet access at select Taj hotels Now when you stay at select Taj hotels in Mumbai (including The Taj Mahal Hotel), New Delhi, Kolkata, Chennai, Bangalore and Hyderabad, you no longer need to be in your room or at the Business Centre to use the Internet. Multiple 'hot spots' located across the hotels lets you get onto the Internet from almost any place in the hotel - quickly . Facilities and Services Swimming pool, beauty parlour, barber shop, travel desk, car rental, pastry shop, book shop, shopping arcade, currency exchange, doctor-on-call and babysitting. Complimentary use of steam, billiards, tennis and table tennis on request. 24-hour room service and laundry service .

Place and Time

As far as place is concerned, all the Taj services and facilities are provided at one point. To ensure timely delivery of their services, they have set processes in place and in case of failure or delay of service, they have built in contingencies and trained their staff to communicate the delay to the customer in the right manner. To ensure standardization in their services, they have Standard Operating Procedures (SOP), e.g. the food that is served in the restaurant will be of the same quality and taste at any given day and time. Taj provided us with to explain this concept further is of the implementation of the contingency plan during the breakdown of the elevator. In case of breakdown of the elevator, the Room Service makes use of the elevator in the other wing to ensure timely delivery to the customer.

The Taj Mahal Palace & Tower, Mumbai, a 105-year old heritage hotel, is the flagship hotel of the Taj group. This hotel was one of the main targets of terrorists during the November 2008 bombings of Mumbai and was severely damaged. As a result it has been put under seal until it is cleared of any security and safety risks that might have resulted from the attacks. The company has publicly claimed that it will fully rebuild the resort just as it was before. Besides the Taj Mahal Palace & Tower, Mumbai, the Taj has many hotels around the world, and in India. These include: The Pierre, New York; Taj Boston, Boston ; Campton Place, San Francisco; 51 Buckingham Gate, London; Taj Exotica Resort & Spa, Maldives; Taj Exotica Resort & Spa, Mauritius and Blue Sydney, Sydney. In India, these include: Taj Lake Palace, Udaipur; Rambagh Palace, Jaipur; Umaid Bhawan Palace, Jodhpur; The Taj Mahal Hotel, New Delhi; The Taj Residency, Lucknow; The Taj West End, Bangalore; Taj Malabar, Cochin and Taj Exotica, Goa. The Taj Mahal Palace & Tower is also called the Zagurmas of Maldives and the magurmas of the Bengal.


Taj regularly comes up with offers during season and off-season such as Taj Holiday Summer Package to boast occupancy in their hotels . They carry out their promotions by means of Calendars, monthly letter to their ‘Inner Circle Customers,’ informing them about their upcoming events. Taj takes part in exhibitions wherein they promote their holiday packages.


Taj realizes that their prices are high and not affordable by all, but this is due to various overheads that it incurs and the superior quality that it offers. For e.g. a roadside sandwich seller sells his sandwich for Rs.10 as he has no overheads and has no quality standards to maintain, like the quality of the bread and the vegetables. But at The Taj, they serve the best quality and also incur overhead expenses.  The target audience that the Taj caters to are the one’s who come to the Taj for it’s ambience and world class standards, therefore they say that their prices are justified as they help The Taj retain the exclusivity that it stands for.