INDIAN HOTEL INDUSTRY-TAJ

GROUP OF HOTELS
PRESENTED BY:-
ABHISHEK ANAND
ABHISHEK UPADHYAY
AVIJIT DAS
NIKHIL RAJ
PRANAY VASHISTHA
SHAILENDRA TRIPATHI
INDIA HOTEL INDUSTRY
 All major hotel chains have properties across India.

 Hospitality sector has shown a promising upswing of over

2009-10 in revenue terms.

 Hospitality revenues are projected to grow over Rs 82,600

crore by end of 2010.

 An additional 70,000-80,000 rooms are slated to come

online across categories countrywide.

 More than 40 international brands are trying to make inroads.

 According to the report by World Travel & Tourism Council,
India currently ranks 18th in business travel & will be among top
5 nations by the end of 2012.

 India is now emerging as one of the hot destinations for medical

tourism after Singapore, Thailand, Hongkong, Malaysia .

 The Indian Hospitality Industry is projected to grow at the rate

of 8.8 % between 2009-16 placing India as the 2nd fastest
growing tourism market in the world.

According to the tourism ministry,4.4 million tourists visited India last

year and at current trend, demand will soar to 10million in 2010.
 MAJOR PLAYERS
 Public sector players:
 Hotel Corporation Of India

 ITDC Hotels

 Private sector players:

 ITC Hotels

 Indian Hotels Company Ltd.(The TAJ Hotels Resorts &

Palaces)

 Oberoi Hotels (East India Hotels)

 Hotel Leela Venture

 Asian Hotels Ltd.

 Radisson Hotels & Resorts

TAJ GROUP OF HOTELS

 It was founded by Jamshedji N. Tata on December 3, 1903.

Currently Taj Hotels Resorts & Palaces comprises 57 hotels at
40 locations across India. Additional 18 hotels are also being
operated across the globe. During the fiscal year 2006, the total
no of hotels owned or managed by the company was 75. The Taj
Hotels are categorized as luxury, leisure & business hotels.

 1903- Opens its first hotel – the Taj Mahal Palace in Mumbai,
India.

 1974- First 5 star Deluxe Beach resort “ Fort Aguada Beach

Resort” in Goa.

 1984- Opens its first hotel outside India- the “Taj Sheba Hotel”
in Sana'a, Yemen
 The Indian Hotels Company Limited and its subsidiaries are
collectively known as Taj Hotels Resorts and Palaces.

 Taj Hotels Resort and Palaces comprises more than 60 hotels

in 45 locations across India with an additional 15
international hotels in the Malaysia, United Kingdom, United
States of America, Bhutan, Sri Lanka, Africa, the Middle East
and Australia and has created a niche for itself in the
hospitality sector.

 Innovator in dining – Taj was the first to introduce thai,

italian, mexican into the country.
 IHCL’s TIE-UPS
 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.

 IHCL also operates Taj Air, a luxury private jet operation with
two advanced Falcon 2000 aircrafts
Italso operates Taj Yachts, two 3-bedroom luxury yachts
which can be used by guests in Mumbai and Kochi (Kerala).

It 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.

After entering into strategic marketing alliances with Silversea

Cruises and Korea's Shilla Hotels & Resorts, Taj Hotels Resorts
and Palaces has entered into a strategic marketing alliance with
Okura Hotels & Resorts, one of the largest international hotel
groups in Japan

The Indian Hotels Company Limited (IHCL), which owns and

operates Taj Hotels, Resorts and Palaces, acquired the 100-
room W Sydney from the Harileela Group for A$36 million. The
property was re-launched as BLUE Sydney, a Taj Hotel in
February 2006.
TAJ HOTEL MARKET SEGMENTATION
It operate in the luxury, premium, mid-market and value
segments of the market through the following brands:
Taj (luxury full-service hotels, resorts and palaces ) is the
flagship brand for the world’s most discerning travelers seeking
authentic experiences given that luxury is a way of life to which
they are accustomed. Spanning world-renowned landmarks,
modern business hotels, idyllic beach resorts, authentic Rajput
palaces and rustic safari lodges.
Taj Exotica is a resort and spa brand found in the most exotic
and relaxing locales of the world. The properties are defined by
the privacy and intimacy they provide. The hotels are clearly
differentiated by their product philosophy and service design.
Upper Upscale Hotels (full-service hotels and resorts ) provide a
new generation of travelers a contemporary and creative
hospitality experience that matches their work-hard play-hard
lifestyles. Stylish interiors, innovative cuisine, hip bars, and a
focus on technology set these properties apart.
Taj Safaris  are wildlife lodges that allow travelers to experience
the unparalleled beauty of the Indian jungle amidst luxurious
surroundings. They offer India’s first and only wildlife luxury
lodge circuit.

The Gateway Hotel (upscale/mid-market full service hotels and

resorts) is a pan-India network of hotels and resorts that offers
business and leisure travelers a hotel designed, keeping the
modern nomad in mind. At the Gateway Hotel, we believe in
keeping things simple. This is why, the hotels are divided into 7
simple zones- Stay, Hangout, Meet, Work, Workout, Unwind and
Explore.

Ginger (economy hotels) is a revolutionary concept in hospitality

for the value segment. Intelligently designed facilities,
consistency and affordability are hallmarks of this brand targeted
at travelers who value simplicity and self-service
PORTER’S FIVE FORCES MODEL
 FIRST FORCE

 COMPETITIVE RIVALS : - HIGH

The competitors of Taj Hotels are

1. Marriott International (MAR)

2. Oberoi Group of Hotels

3. Hilton Hotels

4. Le Meridian

5. Marine Plaza

6. ITC Group of Hotels

 SECOND FORCE
Bargaining Power of Buyers: - MODERATE

1. STRONG :-
Food
Luxury
2. WEAK :-

Brand Value :-
Big Business Model
Preference of Corporates
 
Ambience : -
“Guests First Choice”
Exotic locations across the globe
 
Excellent Services : -
 
Pick up – Drop Facilities
Early Bird Offers (In off Season)
 THIRD FORCE
 Bargaining Power of Suppliers: - MODERATE

 The high class hotels are operating by few hotel chains like-
TAJ,EIH,ITC, so they have a control over the industry.

 There are no substitutes for spas and five star hotels.

 The hotels customers are fragmented, so they have to reduce

their bargaining power to attract the customers.

 The Taj, ITC& Oberoi are having various rates and tariffs.
Because they are having their own brand image.

 The hotel chains are operating different services like Spas,

Boatels, Resorts, City Centers, Heritage HOTELS, etc.
 FOURTH FORCE
 Threats to new Entrants: - MODERATE
 
Many global players are extending their services in the Indian
market like The Rezidor Hotel Group, Accor Hospitality,
Intercontinental Hotels & Resorts etc.
Brand loyalty of customers affects the new entrants.
FIFTH FORCE
Threats of Substitutes: - HIGH
 
1.Fluctuations in International Tourists Travel :- The total
dependency on foreign tourists can be risky as there are
wide fluctuations in international tourism. Domestic tourism
needs to be given equal importance & measures should be
taken to improve it.

2.Increasing Competition :- Several International majors like

Four Seasons , Shangri – La & Aman Resorts are entering
Indian markets.
3.The price variation of same class hotel services from various
brands is one of the reasons to choose a substitute.
 PEST ANALYSIS
 POLITICAL :-
 political factor in the hotel industry is the laws regarding
labor , there are laws that govern minimum wages.

 Another law that can be quite costly is treatment of employees

For example, there are laws that prevent discrimination, and
sexual harassment. If a hotel company violates these laws, it
can lead to severe lawsuits, and at the same time the hotel will
be slicing their revenues.

 Imapct of terrorism.

 Tourist friendly visa regime.

 In a Foreign Trade Policy, Hotels and Restaurants are allowed to

import duty free equipment and other items
including liquor, against their foreign exchange earnings under
the Served from India Scheme.
 ENVIRONMENTAL :-
 Environment is one aspect the government will always have
their eye on, and they will introduce laws that will protect the
environment. Such laws will need to be looked at as a player
in the hotel industry. Hotels are could be liable for clean up
of contamination and other corrective action under various
laws, ordinances and regulations relating to environmental
matters. Such laws referring to keeping the environment in
good shape can be quite costly to hotels in the industry.

 Social Cultural :-
Social cultural factors are a big issue to look into for hotel
industry because it deals with a lot of consumers who have
different demographic, ethnic, cultural backgrounds. By
satisfying each consumers or generalizing the way to
hospitalize, hotel industry can have chance to expand more.

Work place health and safety.

 Technological : -
 In order for a hotel to prevent obsolescence and remain
technologically advanced, the hotel must be up to date with
all the latest technological changes that are taking place that
might have an impact on the industry.. Today, the Internet is
increasingly being used. Consumers are shopping on the
Internet, from music to travel and anything one can think of.
For the hotel industry, they need to take this into
consideration. The reason is that if hotels don’t have a well
developed website, they will possibly loose potential
consumers. Not only do they need to alternate their
distribution channels of information, they also need to
advertise aggressively on the Internet.

 The other technological factor that needs to be looked at is

the rising costs of energy. so, the hotel industry must look
for alternate source of energy like solar energy.
 SWOT ANALYSIS
STRENGTHS
 :-
Manpower cost in the Indian Hotel Industry is one of the lowest in

the world.
India offers a readymade tourist destination with the resources.
Natural & Cultural diversity
Increase in market share.
Government support.
Its stylish variety of hotels like; Taj exotica, Taj safari, The gateway

hotels, Ginger hotels, Jivas spa etc.

Its effective and efficient management techniques and staff.

WEAKNESS
 : -
Cost of land is high at 50 % of total project cost as against 15 %

abroad.
High tax structure in the industry makes the industry worse off

than its international.

Only limited value added services.
Susceptible to political events.
CONTD.
 OPPORTUNITIES : -
 Demand between the national & the inbound tourists can be
easily managed due to difference in the period of holidays.
 In the long run Indian Hotel Industry has latent potential
growth.
 Rising Income.
 Open sky benefits.
 
 THREATS : -
 Guest houses replace hotels.
 Political turbulence in an area reduces tourist traffic.
 Fluctuations in international tourist arrivals & terrorism.
 Changing trends in the west demand similar changes in India
 Increasing competition.
 STP ANALYSIS
 SEGMENTATION : -

 Geographic
 Demographic
 Psychographic
 Behavioural

 TARGETING : -
 
 Business Class
 Upper Class
 Tourists
CONTD.
 POSITIONING :-

Positions itself as a high-end luxury hotel chain giving its

consumers a taste of “ROYALTY” in modern times.
 
 Rooms offer a refreshing mix of European style & Indian
Elegance.
 Currently operating with an inventory of 298 rooms including
9 suites.
Through print media
Electronic Media
Magazines
Online advertising
 MARKETING MIX
7 P’S
 PRODUCT : -
 Rooms
 Restaurant & Bar
 Meeting Room & Banquet Facility
 Amenities
 Services
 Safe Deposit Box

 PLACE : -
 Present in metro and other cities( Udaipur, Jaipur, Jodhpur,
Lucknow, Cochin, Goa, Mumbai, Bangalore ,New delhi).
 Global Presence ( Maldives, London, Dubai, Colombo, New
york, Boston, mauritius, san francisco, sydney ).
 PRICE : -
 TAJ Hotels have set its price based on Business, Leisure &
Luxury Class.
Deluxe Room Queen Bed- Various - INR 11200
Deluxe Room Twin Beds Various – INR 11200
Luxury Room King/Queen - INR 12400
TAJ club room King Bed /Airport - INR 14400
Executive Suite King Bed Club - INR 28800
Executive Suite King Bed 1 – INR 17600
Luxury Suite King Bed Pool - INR 52000

 PEOPLE : -
 Skilled Person
 Professional Person
 Personal Agents
 Technological Persons
 Travel Agents
 

PROMOTION :-
Promotional Schemes are carried on regularly the hotel has many loyalty

programmes, clubs, memberships etc.

  Some of them are :
  The Taj Inner Circle, The Taj Junior League, The Taj Club

Taj also offers Taj surprise including weekend savers, value vouchers,
book early get more etc.
 
Advertisement :

1. Business Newspapers like ET, Financial Express)

2. TV Channels like Star News, CNN, CNBC.
3. Magazines like The Outlook Traveller, Go Now &
travels.
‣Taj takes part in exhibitions wherein they promote their holiday
packages.

‣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.
 PHISICAL EVIDENCE : -

 Lobby- It being the first & the last part of the hotel that the
guest visualizes, thus it is well designed, also ensures that
the customer returns again. The rooms exhibit elegance &
class, comfortable and most suitable for a hassle free stay.

 PROCESS : -

Major service encounters that are extremely delighted:

 Check in.
 Bell person carrying luggage to the room.
 Food.
 Wake up call.
 Check out.
FUTURE SUSTAINABLE STRATEGIES
 Instead of treating domestic tourists as an alternate to
the foreign tourists during summer, TAJ should treat
them as a separate market with distinct needs. "Indians
should be urged or induced to take more short holidays
through uniquely priced packages." Taj should convince
the Indian tourist that its properties were, despite the
luxury tag attached to it, affordable.

 More focus on Niche programmes should be given such

as offers aimed at senior citizens, survivors (couples
who have been married 10 years or more), and children.
CONTD.
 Plan activities that combine education and
entertainment, such as theatre workshops, art-of-living
exercises, treks and camps because a high percentage
of Indian customers travel with their kids, and if the
children are happily occupied, then their parents can
spend more time enjoying themselves.

 Rewarding Travel Agents- Tata Group of Hotels can gain

a competitive advantage over its competitors by
offering a patented online loyalty program such as
“Look to Book". Travel agents can automatically earn
points towards valuable merchandise & incentive
rewards for booking Taj Group of Hotels.
 Introduction of Projects for better communication with
Customers :-
 Guest engagement : Creation of a guest advisory board with
atleast 2meetings per year E-newsletters to all clients.

 Client Communication : Creation of sustainable website

where clients can login & share their experiences ,griefs &
suggestions regarding the services of TAJ.

 Professional Development Program :-

 
 Study & share experiences with peers around the globe in
intense hospitality courses led by global Hospitality industry
leaders.
 Implementation of more eviornment friendly projects :-
 Improve environmentally friendly hotel room concept in a city
hotel.
 Reduction of paper consumption.
 Increase green products purchasing.
 Create funds to support National Park Foundation planting of
Cherry trees in major metros.
 Introduction of genetically engineered food.
 Create a water conservation fund and develop local,national
and international initiatives (cleaning Ganga River and water
wells in Indian sub-continent).
 Solar cells as an alternative source of energy.
 Partner with a sustainable local mineral water company to
increase water conservation fund.
 CONCLUSION
 The outlook for the hospitality market in India is optimistic
The thriving economy and increased business opportunities
have acted as a boon for Indian hotel industry.
The Hotel Industry in India is having a tremendous
opportunity in future because of the promotions by the
government like “Incredible India”. As the industry is opening
gates for foreign investments, TAJ must capitalize the
upcoming opportunity & minimize the demand-supply gap
THANK YOU