HOTEL INDUSTRY

OVERVIEW«.
Hospitality is all about offering warmth to someone who looks for help at a strange or unfriendly place. Hospitality in the commercial context refers to the activity of hotels,restaurants, catering, inn, resorts or clubs who make a vocation of treating tourists The hospitality industry is a 3.5 trillion dollar service sector within the global economy. Indian hospitality industry has gained a level of acceptance world over. It hasyet to go miles for recognition as a world leader of hospitality

In 2003-04 the hospitality industry contributed only 2% of the GDP. However, it is projected to grow at a rate of 8.8% between 2007-16. This year the number of tourists visiting India is estimated to have touched the figure of 4.4 million The arrival of foreign tourists has shown a compounded annual growth of 6 per cent over the past 10 years.

EVOLUTION
Hotel

Industry in India has witnessed tremendous boom in recent years due to # thriving economy # increased business opportunities Hotel Industry is inextricably linked to the tourism industry and the growth in the Indian tourism industry has fuelled the growth of Indian hotel industry The 'Incredible India' destination campaign and the recently launched 'Atithi Devo Bhavah' (ADB)campaign have also helped in the growth of domestic and international tourism and consequently the hotel industry

CONT..
According to a report, Hotel Industry in India currently has supply of 110,000 rooms and there is a shortage of 150,000 rooms fuelling hotel room rates across India. According to estimates demand is going to exceed supply by at least 100% over the next 2 years. To overcome, this shortage Indian hotel industry is adding about 60,000 quality rooms, currently in different stages of planning and development, which should be ready by 2012

SWOT ANALYSIS
STRENGTHS 1.Natural and cultural diversity 2.Demand-supply gap : 3.Government support: 4.Increase in the market share: WEAKNESSES 1.Poor support infrastructure: 2.Slow implementation: 3.Susceptible to political events:

OPPORTUNITIES 1. Rising income: 2. Open sky benefits: THREATS 1.Fluctuations in international tourist arrivals: 2.Increasing competition:

IMPACT OF RECESSION ON INDUSTRY
The

state of turmoil in global financial markets has generated new concerns for the hospitality industry. Existing hotels in India are also likely to benefit from the improved performance of the non-room sources of income, namely Food & Beverage (including banquet operations), Spa, Corporate Club memberships and other ancillary services. India is expected to see Asia's biggest drop in corporate travel spending, falling 25% this year compared to 2008.

Trends that will shape the future of hospitality sector are: 1. Low Cost Carriers 2. Budget Hotels 3. Service Apartments 4. Technology 5. Loyalty Travel

Challenges for the hospitality industry are:
1. 2. 3. 4. 5. 6.

Shortage of skilled employees Retaining quality workforce Shortage of rooms Intense competition and image of India Customer expectations Manual back-end

STAR RATED HOTELS HERITAGE CLASSIC

5 5 4

DELUXE

HERITAGE HOTELS

3
HERITAGE GRAND

2
BUDGET HOTELS HERITAGE

1

HOTELS
BUSINESS HOTELS FACILITY HOTELS AIRPORT HOTELS HONEYMOON HOTELS RESORTS MOTELS UNCLASSIFIED GUEST HOUSES LODGE LUXURY BUSINESS LEISURE

COMPANY TAJ HOTELS

The Taj Mahal Palace and Tower, built in 1903, stands on the shores of the Arabian Sea, a resplendent tribute to the vision of Jamsetji N Tata, founder of the Tata group, who wished to build the finest hotel that India had ever seen The Taj brand, deeply rooted in traditional Indian values of hospitality and graciousness, and committed to acquainting guests with India¶s living heritage With a total of 57 properties in 40 locations across India and 18 international hotels, the Taj family of hotels encompasses iconic city hotels, grand palaces, modern business hotels, beach resorts and rustic safari lodges.

Ratan Tata became the Chairman of the Tata Group in 1981 after serving as Chairman in charge of the Nelco division of the group.
Ratan Tata (Chairman)

Raymond Bickson (CEO & MD)

Anil Goel (Executive dir.Finance)

Abhijeet mukherji (Executive dir.-hotel operations)

Ajoy misra(Sales & marketing)

Prakah Shukla(Technol ogy & chief info officer)

Sumit guha(Developm ent & projects)

Sankar parmeswaram(l egal & company secretary)

HN Srinivas(Hu man resource)

Market Share(Approx)
Hotel Leela 9%

Others 8% Taj Hotels 39%

ITC Welcomgroup 17%

Oberoi Hotels 27%

Product Element Tower Wing Rooms Heritage Wing Rooms Taj Club Suites Broadband wireless Internet access at select Taj hotels Facilities and Services

Place

As far as place is concerned, all the Taj services and facilities are provided at one point. A total of 57 properties in 40 locations across India and 18 international hotels, the Taj family of hotels encompasses iconic city hotels, grand palaces, modern business hotels, beach resorts and rustic safari lodges.

PROCESS The hotel has formed certain set processes.
y y y

Tata Business Excellence Model (TBEM) Rollout of the Customer Feedback System (CFS) IT initiatives

Eg.When the room is being prepared for customer check-in , the house-keeping department make sure that all the room amenities are provided as per the check list. For e.g. certain room amenities like 3 embroidered laundry bags, 2 closed slippers with logo, 2 shoe bags, etc. are provided by The Taj Mahal Hotel

PEOPLE Customers employees, management and the society

PROMOTION

by the means of calendars,

monthly letter to their µInner Circle Customers¶, informing them about their upcoming events and offers. Taj has television advertisements on popular channels like CNBC, and print ads in magazines and newspapers.

PHYSICAL EVIDENCE
The Taj Mahal Hotel was built in 1903. The architect was Sitaram Vaidya. an Indian experience of warmth and hospitality. The entrance has splendidly carved bronze and glass doors Soaring onyx columns stretch to a luminous alabaster ceiling The Zodaic Grill provides a graceful setting for an intimate dining experience. Under a magnificent trompe l'oeil dome, they serve the finest gourmet cuisine complemented by an extensive wine list, as a classically trained pianist entertains patrons.

Price 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

Also 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, The Taj retain the exclusivity that it stands for.

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