Yesterday, Today

& Tomorrow
By:
Group No. 16
Context
 IHCL – a 115 years young legacy
165+
HOTELS  IHCL is South Asia’s largest hospitality company that was
founded in 1899 by Jamsetji Tata.

 It is one of the first companies to bring hospitality services to

20,000+ India.

ROOMS  With a legacy of 115 years, IHCL has built a reputation of

unrivalled leadership in the Indian hospitality industry.

 Brands such as Taj, Vivanta, The Gateway and Ginger hotels

come under its umbrella.
32,242
EMPLOYEES
Hotel Industry & IHCL throughout the years
 Changes
in Business Model
& Leadership
ULTRA PREMIUM Changes in Business Model
Taj Hotels Resorts &
Palaces
• Asset Light Growth – leased properties, joint ventures and
management contracts

• Alliances & Partnerships Route - Japan(Okura hotel) and

Vivanta by Taj
(Upper upscale) Victoria Jungfrau in Switzerland

• Loyalty programs & tie-ups - leading cruise lines, Silversea

Cruises and ‘Taj Inner Circle’
Gateway by Taj
(Quality comfort) • Guest satisfaction tracking and external audits through
mystery guests

Ginger • Future strategy - Restructure Re-engineer Reimagine

(Budget comfort)
 New Leadership Strategy
MORE FOCUS ON
WOMEN SECURITY  Youngsters are being bred to become managers.
Average age group being 25-27

 Employees feel more connected and approachable

FLEXIBLE HOTEL to the management
POLICIES
 Independent initiatives are welcomed and the
management has become less strict
UNAMBIGUOUS  The approach has shifted from customer-centric to
OBJECTIVE
SURVEY associate centric
Reinventing & Coping
with the changing
business environment
HR Policies
Values driven recruitment system

• Recruiting from Tier 2 and 3 cities and not metropolitan

cities

• Hiring young graduates with traits like respect for elders,

cheerful and are not financially well off

• They assess sense of values, integrity and desire to

contribute while recruiting supervisors and junior
managers

• Employees are taught to act as customers’ ambassadors

and not company’
 Systems & Processes
Coping up and reinventing due to change in business environment

 Voice of customer : pre, during and post-use phases

 Online Reputation Management processes: reviews and feedback
on social media sites
 CSMM and Brand Equity Track (BET) survey scores : to monitor
competitor's customer delight performance
 Safety management systems : safety audit score by Tata
Consulting Engineers, assessment by external agency for security
risks and mitigation planning.
 Crisis management Manuals: for emergencies, natural disaster,
health risks
 Coping up with 26/11
 Supported the education of children whose parents had been killed

 Offered jobs to relatives who had lost a key breadwinner - assistance to

230 affected families with disbursement/commitments of Rs. 2.27 crores.

 Making contact with and supporting souvenir sellers who worked in the
vicinity of the hotel and had seen earnings dry up as tourist numbers
plummeted

 Formal risk assessment carried out and specialized security training

arranged for the security staff. Continuous training for security
awareness of all hotel; installation of new security hardware

 Slowdown in the tourism sector - stringent cost control measures with no

compromise in quality were implemented.

 Property damage and Loss of Products claim was led with the insurance
Company. An “On A/c” payment of Rs. 180 crores had been received from
the insurers to date.
Key Challenges
KEY CHALLENGES

• Increasing domestic competition

• Merger of two major competitors (Marriott and

Starwood)

• Expensive overseas acquisitions

• Integrating the Taj experience at Ginger

• Personal issues between top management

Learnings from
YTT
 Learnings from YTT
• “Leadership is not defined by the exercise of power but by the
capacity to increase the sense of power among those led”-Mary
Parker Follett- They promote giving power to each employee
than power over the employees

• The recruitment process of Taj focuses on learning from values,

intentions and humility

• Mary Parker Follett’s principles of coordination-

“Leader and
1. Direct Contact
followers are both
following the 2. Early Stages

invisible leader- the 3. Reciprocal relationship

common purpose” 4. Continuous process
 Recommendations
 In line with the Taj group’s vision to showcase their iconic and legendary
hospitality, IHCL should expand their reach by venturing into areas like
branded residence space.

 There is a lot of latent demand for budget stay for travelers which is still
idle in Indian market. IHCL should try and venture into this domain
ensuring that it is not associated with Taj and remains an independent
identity.
Thank You