MOS Project Group -11

8/8/2019 MOS Project Group -11

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PRESENTED BY:-

ABHISHEK ANAND

ABHISHEK UPADHYAY

AVIJIT DAS

NIKHIL RAJ

PRANAY VASHISTHA

SHAILENDRA TRIPATHI


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All major hotel chains have properties across India.

Hospitality sector has shown a promising upswing of over 2009-10in revenue terms.

Hospitality revenues are projected to grow over Rs 82,600 crore byend 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.


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According to the report by World Travel & Tourism Council,India currently ranks 18th in business travel & will be among top5 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 rateof 8.8 % between 2009-16 placing India as the 2nd fastestgrowing tourism market in the world.

According to the tourism ministry,4.4 million tourists visited India last yearand at current trend, demand will soar to 10million in 2010.


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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


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It was founded by Jamshedji N. Tata on December 3, 1903.Currently Taj Hotels Resorts & Palaces comprises 57 hotels at 40locations across India. Additional 18 hotels are also being operatedacross the globe. During the fiscal year 2006, the total no of hotels

owned or managed by the company was 75. The Taj Hotels arecategorized 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 Resortin Goa.

1984- Opens its first hotel outside India- the Taj Sheba Hotel inSana'a, Yemen


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The Indian Hotels Company Limited and its subsidiaries arecollectively 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 inthe Malaysia, United Kingdom, United States of America, Bhutan,Sri Lanka, Africa, the Middle East and Australia and has created aniche for itself in the hospitality sector.

Innovator in dining Taj was the first to introduce thai, italian,mexican into the country.


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IHCL signed a strategic marketing alliance in 2004 with RafflesInternational, which is a world renowned hotel group.

Recognising the importance of people in the service industry IHCLestablished 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 totaltravel management solutions under the brand name Inditravel.

Inditravel offers services like air & rail ticketing, hotel bookings, carrentals, visa and passport assistance, foreign exchange assistance,

global telecards and medical insurance.

IHCL also operates Taj Air, a luxury private jet operation with twoadvanced Falcon 2000 aircrafts


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It also operates Taj Yachts, two 3-bedroom luxury yachts which can beused by guests in Mumbai and Kochi (Kerala).

It also operates an airline catering service under the brand nameTajSATS Air Catering as a joint venture with Singapore Airport TerminalServices, which is a subsidiary of Singapore Airlines.

After entering into strategic marketing alliances with Silversea Cruisesand Korea's Shilla Hotels & Resorts, Taj Hotels Resorts and Palaceshas 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 operatesTaj Hotels, Resorts and Palaces, acquired the 100-room W Sydneyfrom the Harileela Group for A$36 million. The property was re-launched as BLUE Sydney, a Taj Hotel in February 2006.


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It operate in the luxury, premium, mid-market and value segments ofthe market through the following brands:Taj (luxury full-service hotels, resorts and palaces)is the flagshipbrand for the worlds most discerning travelers seeking authenticexperiences given that luxury is a way of life to which they areaccustomed. Spanning world-renowned landmarks, modernbusiness hotels, idyllic beach resorts, authentic Rajput palaces andrustic safari lodges.

Taj Exotica is a resort and spa brand found in the most exotic andrelaxing locales of the world. The properties are defined by theprivacy and intimacy they provide. The hotels are clearlydifferentiated by their product philosophy and service design.

Upper Upscale Hotels (full-service hotels and resorts

) provide anew generation of travelers a contemporary and creative hospitalityexperience that matches their work-hard play-hard lifestyles. Stylishinteriors, innovative cuisine, hip bars, and a focus on technology setthese properties apart.


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Taj Safaris are wildlife lodges that allow travelers to experience theunparalleled beauty of the Indian jungle amidst luxurious

surroundings. They offer Indias first and only wildlife luxury lodgecircuit.

The Gateway Hotel (upscale/mid-market full service hotels andresorts)is a pan-India network of hotels and resorts that offersbusiness and leisure travelers a hotel designed, keeping the modernnomad in mind. At the Gateway Hotel, we believe in keeping thingssimple. 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, consistencyand affordability are hallmarks of this brand targeted at travelerswho value simplicity and self-service


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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


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Bargaining Power ofBuyers: - MODERATE

1. STRONG :-FoodLuxury

2. WEAK :-

Brand Value :-Big Business ModelPreference of Corporates

Ambience : -

Guests First ChoiceExotic locations across the globe

Excellent Services : -

Pick up Drop Facilities

Early Bird Offers (In off Season)


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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 theirbargaining power to attract the customers.

` The Taj, ITC& Oberoi are having various rates and tariffs. Becausethey are having their own brand image.

` The hotel chains are operating different services like Spas, Boatels,Resorts, City Centers, Heritage HOTELS, etc.


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Threats to new Entrants: - MODERATE

Many global players are extending their services in the Indianmarket like The Rezidor Hotel Group, Accor Hospitality,

Intercontinental Hotels & Resorts etc.Brand loyalty of customers affects the new entrants.


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Threats of Substitutes: - HIGH

1.Fluctuations in International Tourists Travel :- The totaldependency on foreign tourists can be risky as there are widefluctuations 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 FourSeasons , Shangri La & Aman Resorts are entering Indianmarkets.

3.The price variation of same class hotel services from various brandsis one of the reasons to choose a substitute.


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POLITICAL :-

` political factor in the hotel industry is the laws regarding labor , thereare laws that govern minimum wages.

` Another law that can be quite costly is treatment of employees Forexample, there are laws that prevent discrimination, and sexualharassment. If a hotel company violates these laws, it can lead to

severe lawsuits, and at the same time the hotel will be slicing theirrevenues.

` Imapct of terrorism.

` Tourist friendly visa regime.

` In a Foreign Trade Policy, Hotels and Restaurants are allowed toimport duty free equipment and other items

including liquor, against their foreign exchange earnings under theServed from India Scheme.


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ENVIRONMENTAL :-

` Environment is one aspect the government will always have theireye on, and they will introduce laws that will protect theenvironment. Such laws will need to be looked at as a player in thehotel industry. Hotels are could be liable for clean up ofcontamination and other corrective action under various laws,ordinances and regulations relating to environmental matters. Suchlaws referring to keeping the environment in good shape can bequite 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 differentdemographic, ethnic, cultural backgrounds. By satisfying eachconsumers or generalizing the way to hospitalize, hotel industry canhave chance to expand more.

Work place health and safety.


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Technological : -

` In order for a hotel to prevent obsolescence and remain

technologically advanced, the hotel must be up to date with all thelatest technological changes that are taking place that might havean impact on the industry.. Today, the Internet is increasingly beingused. Consumers are shopping on the Internet, from music to traveland anything one can think of. For the hotel industry, they need totake this into consideration. The reason is that if hotels dont have awell developed website, they will possibly loose potentialconsumers. Not only do they need to alternate their distributionchannels of information, they also need to advertise aggressively onthe Internet.

` The other technological factor that needs to be looked at is therising costs of energy. so, the hotel industry must look for alternatesource of energy like solar energy.


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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 gatewayhotels, 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.


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OPPORTUNITIES : -

` Demand between the national & the inbound tourists can be easilymanaged 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.


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SEGMENTATION : -

` Geographic

` Demographic

` Psychographic` Behavioural

TARGETING : -

` Business Class` Upper Class

` Tourists


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POSITIONING :-

Positions itself as a high-end luxury hotel chain giving its consumersa 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 9suites.

Through print media

Electronic Media

MagazinesOnline advertising


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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 ).


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PRICE : -

` TAJ Hotels have set its price based on Business, Leisure & LuxuryClass.

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 28800Executive Suite King Bed 1 INR 17600

Luxury Suite King Bed Pool - INR 52000

PEOPLE : -

` Skilled Person` Professional Person

` Personal Agents

` Technological Persons

` Travel Agents


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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, valuevouchers, 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-seasonsuch as Taj Holiday Summer Package to boast occupancy in theirhotels .

They carry out their promotions by means of Calendars, monthlyletter to their Inner Circle Customers, informing them about their

upcoming events.


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PHISICAL EVIDENCE : -

`

Lobby- It being the first & the last part of the hotel that the guestvisualizes, thus it is well designed, also ensures that the customerreturns again. The rooms exhibit elegance & class, comfortable andmost 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.


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Instead of treating domestic tourists as an alternate to theforeign tourists during summer, TAJ should treat them as aseparate market with distinct needs. "Indians should be urgedor induced to take more short holidays through uniquelypriced 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 asoffers aimed at senior citizens, survivors (couples who havebeen married 10 years or more), and children.


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Plan activities that combine education and entertainment,such as theatre workshops, art-of-living exercises, treks andcamps because a high percentage of Indian customers travelwith their kids, and if the children are happily occupied, thentheir parents can spend more time enjoying themselves.

Rewarding Travel Agents- Tata Group of Hotels can gain acompetitive advantage over its competitors by offering apatented online loyalty program such as Look to Book".Travel agents can automatically earn points towards valuable

merchandise & incentive rewards for booking Taj Group ofHotels.


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Introduction of Projects for better communication with

Customers :-

` Guest engagement : Creation of a guest advisory board with atleast2meetings per year E-newsletters to all clients.

` Client Communication : Creation of sustainable website whereclients can login & share their experiences ,griefs & suggestions

regarding the services of TAJ.

` ProfessionalDevelopment Program :-

` Study & share experiences with peers around the globe in intensehospitality courses led by global Hospitality industry leaders.


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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 Cherrytrees in major metros.

` Introduction of genetically engineered food.

` Create a water conservation fund and develop local,national andinternational 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 increasewater conservation fund.


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The outlook for the hospitality market in India is optimistic Thethriving economy and increased business opportunities have actedas a boon for Indian hotel industry.

The Hotel Industry in India is having a tremendous opportunity infuture because of the promotions by the government like IncredibleIndia. As the industry is opening gates for foreign investments, TAJmust capitalize the upcoming opportunity & minimize the demand-supply gap


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THANK YOU

Documents

MOS Project Group -11