PROJECT BY-

Mitesh Kanbi - 17
Hiral Kantharia - 18
Sushila Kumbhar - 24
Sheetal Pandey - 32
ABOUT IHCL

Established
First Hotel opened in 1902

Founder
Jamsetji Tata
- Tata Group

Global Presence
11 Countries
260 Hotels
430+ Restaurants
73 under development
RECENT ACHEIVEMENTS
 RECENT
ACHEIVEMENTS
HICSA Hotels of the Year Awards World's Strongest Hotel Brand
2022 Taj ranked as World's Strongest Hotel Brand by
IHCL hotels won 3 Awards in multiple categories Brand Finance Hotels 50 Report 2022
at the HICSA Hotels of the Year Awards 2022

India Risk Management Awards Most Preferred Hospitality Brand

IHCL won 3 awards in multiple categories at the
India Risk Management Awards organised by Taj recognised as Most Preferred Hospitality
CNBC-TV18 and ICICI Lombard Brand by the Hurun India Wealth Report 2021

India's Strongest Brand Golden Peacock Award

Taj ranked as 'India's Strongest Brand' across IHCL won the prestigious Golden Peacock Award
sectors by Brand Finance India 100 Report 2022 for Risk Management for the year 2022
 BRANDS UNDER IHCL
IHCL has successfully transitioned from a branded house to a future-ready house of admired brands.
TOP 3 COUNTRIES

United Arab Emirates United States of America United Kingdom

3 2 Hotels 2 Hotels
 SWOT

Strengths Weakness Opportunity Threat

Strong Brand Portfolio Limited International Recognition Growing Demands Economic instability

Operational Excellence Regional Focus Emerging Markets Political & Regulatory Challenges

Global Presence Cultural Adaptation International Expansion & Intense Competition

Indian Cultural Heritage
Financial Resource
Diversification
Low Profitability Pandemics & Global Crisis
Strategic Partnerships & Alliances
Competition Changing Consumer Preferences
Niche Markets
TIMELINE OF INTERNATIONAL EXPANSION
• 1970: IHCL opened its first international hotel, Taj Samudra, in Colombo, Sri Lanka.

• 1982: IHCL acquired the iconic St. James’ Court Hotel in London, UK.

• 1983: IHCL opened its first hotel in the Middle East, Taj Palace Hotel, in Dubai, UAE.

• 1993: IHCL opened its first hotel in Africa, Taj Pamodzi Hotel, in Lusaka, Zambia.

• 1999: IHCL opened its first hotel in the USA, The Pierre, in New York City.

• 2001: IHCL opened its first hotel in Australia, Blue Sydney, in Sydney.

• 2004: IHCL opened its first hotel in South East Asia, Taj Exotica Resort & Spa, in Maldives.

• 2007: IHCL opened its first hotel in South America, Taj Campton Place, in San Francisco, USA.
TIMELINE OF INTERNATIONAL EXPANSION
• 2010: IHCL opened its first hotel in Bhutan, Taj Tashi, in Thimphu.

• 2011: IHCL opened its first hotel in Morocco, Taj Palace Marrakech, in Marrakech.

• 2013: IHCL opened its first hotel in Nepal, Vivanta Kathmandu, in Kathmandu.

• 2015: IHCL opened its first hotel in China, Taj Temple of Heaven Beijing, in Beijing.

• 2018: IHCL opened its first hotel in Saudi Arabia, Taj Jeddah Hotel & Convention Centre, in Jeddah.

• 2020: IHCL signed a management contract for its first hotel in Bangladesh, Vivanta Dhaka Gulshan Avenue,
in Dhaka.

• 2021: IHCL signed a management contract for its second hotel in Saudi Arabia, Taj Riyadh Olaya Hotel &
Residences, in Riyadh.
 IHCL’s Taj Hotels in United Kingdom

Taj 51 Buckingham Gate Suites and Residences St. James’ Court, A Taj Hotel

5 Star Hotel in London 4 Star Hotel in Central London

Why IHCL Should Expand in United Kingdom?
• “Besides all the uncertainty, the UK as a market has been doing extremely well,” - Digvijay Singh, area director UK

• Compared to USA and UAE, UK hospitality sector is less cluttered, thus we see more chances of business opportunities

• The growing RevPAR is helping the city attract more new projects and investors

• In 2023, the UK Hospitality Market size is expected to reach USD 24.20 billion

• Market size is expected to reach USD 24.20 billion in 2023 and grow at a CAGR of 2.53% to reach USD 27.42 billion by 2028

• IHCL has less recognition and popularity and does not make it to the list of top luxury hotels in London, thus IHCL should aim to be a
recognized as one of the esteemed names in the UK hospitality industry
Why IHCL Should Expand in United Kingdom?
Overview Of Competitors In United Kingdom
Why IHCL Should Expand in United
Kingdom?

London’s image as a tourist destination is

driving the market

Online bookings making it easier for all

Huge Scope for Technology

Millennials are the new key target segment

for hotels
 KEY INSIGHTS
United Kingdom’s Hospitality Sector
 UNITED KINGDOM
Economy

IHCL has leveraged its strong brand presence and network to expand its
operations in UK

The UK economy shrank by a record 11% in 2020 due to the COVID-

19 pandemic, but rebounded to 7.4% in 2021

The UK is also a leader in information technology, outsourcing, and

innovation, with a vibrant startup ecosystem and a skilled workforce
 UNITED KINGDOM
Political

IHCL has maintained good relations with the UK government and

the regulators

The UK left the European Union on January 31, 2020, this has also created
uncertainty and complexity for businesses

IHCL has faced challenges in adapting to the new regulatory

environment and ensuring smooth operations across its four hotels in
the UK.
UNITED KINGDOM
Regulatory
The UK has no significant trade or investment barriers and no restrictions
on the transfer of capital or repatriation of profits

However, since leaving the EU, the UK has the ability to change its laws
and regulations independent of the EU

The UK is also negotiating free trade agreements with several countries

IHCL has faced challenges in keeping up with the changing regulatory

landscape and ensuring compliance with various laws and regulations
 SOCIAL AND CONSUMER
BEHAVIOUR

The UK is a diverse and multicultural country, with

different languages, religions, cultures, and traditions

The UK has a rich heritage of art, music, literature, cuisine, and

architecture

IHCL has adapted to the changing consumer behavior by

offering various products and services across different
segments and price points
SOCIAL AND CONSUMER
BEHAVIOUR

British consumers are also becoming more conscious

of their health, wellness and environment

IHCL has faced challenges in meeting the changing consumer

expectations and preferences amid the pandemic

IHCL has also faced challenges in ensuring the safety and

well-being of its guests and employees amid the health
crisis
 COMPETITIVE
INTELLIGENCE
No. 1 & No. 2 Countries
 Marriott International Hilton Worldwide
The largest hotel chain in the world, with over 8,000 The second largest hotel chain in the world, with over 6,900
properties in over 130 countries properties in over 120 countries

The company's brands include Marriott Hotels, Ritz-Carlton, The company's brands include Hilton Hotels, Waldorf Astoria,
JW Marriott, Sheraton, and Westin. Marriott's market share is DoubleTree, and Hampton Inn. Hilton's market share is
estimated to be around 22% estimated to be around 9%
 COMPETITIVE ANALYSIS

In Q2 2023, Marriott International had a 18.46% revenue

market share, while Hilton Worldwide had 7.86%. So, Marriott
generated over twice Hilton's revenue

Both lost market share due to competition from Loews Corp,

MGM Resorts International, Caesars Entertainment Inc, and Las
Vegas Sands Corp
 COMPETITIVE ANALYSIS

In terms of net income, Marriott's margin was 11.95%, and

Hilton's was 12.64% in Q2 2023. So, Hilton was more
profitable despite lower revenue

In 2014, Marriott and Hilton each had ~10% market share in the
global hotel industry. Wyndham had ~9%, Choice Hotel and
International Hotels Group had ~8% each, and Best Western
Company and Starwood had ~3% each
MARKETING MIX
STRATEGY
United Kingdom
 PRODUCT
Diversify hotel portfolio
(luxury, boutique, mid-range, budget)

Promote Indian culture

(cuisine, wellness, hospitality)

Prioritize sustainability and eco-friendly practices

PLACE
Invest in strategic locations.

Optimize online presence (website, app, OTAs)

Expand distribution through agents and tour operators.

Incentivize direct bookings
 PRICE
Competitive pricing with local market analysis

Dynamic pricing based on seasonality and demand

Offer inclusive package deals

PROMOTION
Digital marketing

Content marketing (culture, attractions, tips)

Partnerships with local businesses, airlines

influencers

Cultural events and promotions

Public relations with travel journalists and bloggers

 People
Staff training for exceptional service

Local hiring for market understanding

PHYSICAL EVIDENCE
Consistent hotel ambiance with the brand

Showcase positive guest reviews

PROCESS
Streamline booking process (online/offline)

Enhance guest experience (personalization, efficiency)

 Suggested Entry Mode
PARTNERSHIP
This involves IHCL partnering with a local
company to set up a hotel in the UK.
This can be a good way to reduce the risks
and costs of entry, and to gain access to local
knowledge and contacts.
However, it can also be challenging to manage
a joint venture.
ACQUISITION
IHCL can invest in the construction of new
properties in strategic UK locations
. These could be luxury, mid-scale, or budget
hotels depending on market demand.
IHCL can leverage its design and operational
expertise to create unique offerings that cater
to local and international travelers.
IMPROVISATIONS FOR UK MARKET

Focus on high-end hotels in major cities, such as London

Partner with local tour operators and travel agents

Offer competitive rates and special packages to attract guests

Make efforts to be environmentally friendly

Train staff on British culture and customs

Build relationships with key stakeholders in the UK market

IMPROVISATIONS FOR UK MARKET
THANK YOU