BY Aditya Maheshwari Abhinav Tyagi Aditi Khanna

India's hotel industry is experiencing an unprecedented boom, driven by increasing numbers of business and tourist arrivals.

What is Hotel Industry? A place Where Travelers Can Pay for Lodging and Meals and

Other Services on a short-term basis.

Objectives of Hotel Industry

Customer Satisfaction Health Safety Environment To Promote Tourism

Some figures :

Hotel Imperial New Delhi: 99.57 % occupancy. Hotel Trident Hilton,Gurgaon (suburban Delhi): 98.3 % occupancy. Indian hotels are witnessing mindblowing occupancy rates. Increase in average room rent for the entire hotel industry over the last year: 35 %.

The boom has attracted several global players, ranging from Starwood and Mariott to Four Seasons and ShangriLa. The largest hotel company in the world,French chain Accor, has entered India and is now devising aggressive plans for expansion in the market. Several others are racing to increase their presence in India, including the Marriott group.
Currently Marriott has over 1,000 rooms spread across four properties in Mumbai and Goa.

The established hotel chains

A number of global players are already well established in India. These include Hilton, Shangri-La, Radisson, Mariott, Meridien, Sheraton, Hyatt, Holiday Inn, InterContinental and Crowne Plaza.

Investments

Now besides hotel companies, even the investment firms and private equity companies are beginning to get excited about India. Berggruen Holdings India, a subsidiary of New York-based investment company Berggruen Holdings,has announced that it is seed-funding a non-luxury hotel chain in India. Private equity firm Warburg Pincus has picked up around 27 % stake in Delhi-based mid-price hotel chain,Lemon Tree, for $ 60.2 million.

Tourist boom

The tourism traffic has been growing between 20-28 % every year for the last four years and this rate of growth is expected to continue for the next few years.

The constant boom and the resultant demandsupply mismatch has led to sharp increases in the average room rates and thus pushing up revenues of industry players (hotels, tour operators, airlines, shipping lines, etc)
The tourism sector is expected to perform very well in futureand the industry offers an interesting investment opportunity for longterm investors. Most of the five-star hotels are seeing more than 80 % occupancy and some of the lesserknown five-star hotels are overbooked.

Hospitality experts believe that the Indian hotel industry will witness higher than usual growth in the coming peak season. The good times for the Indian hospitality industry are here to stay, with top-end hotels experiencing high room occupancy rates even in the lean season.

The lean season has been exceptionally good for us. Our room occupancy rate has been around 89 per cent and we are looking at over 95 per cent occupancy for the period September to December, says Kapil Chopra, general manager,
Trident Hilton, Gurgaon.

There was an increase of 15 % in the number of international tourist arrivals in India and 14 % in the foreign exchange earnings in the first quarter of 2011 as compared to the same period last year.

The world's leading hotel brands joining the battle

The country has been flooded by some of the world's leading hotel brands. New brands such as Amanda, Satinwoods, Banana Tree, Hampton Inns, Scandium By Hilt and Mandarin Oriental are planning to enter the Indian hospitality industry in joint ventures with domestic hotel majors. Unitech, which is setting up two hotels in Delhi,has already formed a joint venture with Marriott International to run its three new hotels in India, which have already started its operations . The three new hotels will be located in Kolkata, Gurgaon and Noida. We are investing around 700 crore rupees to set up these hotels, says Unitech managing director Sanjay Chandra.

The movement is not one-way. Cash-rich Indian hotel companies have been acquiring properties overseas. The Tata group's Indian Hotels Company is in the process of acquiring Bostonbased luxury hotel the Ritz-Carlton for around $170 million dollars (around 765 crore rupees). Due diligence is likely to be completed soon. The hotel will be acquired through the companys New York-based subsidiary, says RK Krishna Kumar, vice chairman of Indian Hotels. Indian Hotels is looking to strengthen its presence in the United States with this acquisition. It has also set up properties in the Middle East, the United Kingdom and Africa. Its fierce rival, Oberoi group, has also been active overseas with properties in Saudi Arabia, Mauritius, Egypt, Australia and Indonesia, and elsewhere. With growing competition, hotels are under tremendous pressure to generate new lines of revenue with creative approaches. With newer players poised to enter the market one of the key factors that will drive future demand is alternate revenue streams.

Many business hotels in India are integrating full-fledged spas on their premises, originally a main stay of resort properties.

However, in order to attract more visitors, India still needs to dramatically increase the number of rooms available.

1. 2. 3. 4. 5.

Shortage of skilled employees Retaining quality workforce Shortage of rooms Intense competition Customer expectations

According to Size Small Hotels (150 rooms) Medium Hotels (up to 299 rooms) Large Hotels (up to 600 rooms) Extra Large Hotels (above 600 rooms)

According to Star

One Star (*) Two Star (**) Three Star (***) Four Star (****) Five Star (*****)

FORMS 30% OF INDUSTRY ITC, TAJ GROUP, OBEROI GROUP, ITDC

Eg :

BUILT OVER 18000 sq.m AREA

STAR RATED HOTELS

DELUXE & 5 : LUXURY AT HIGH PRICE , 27 % GOVT. APPROVED ROOMS

&1 : AROUND TOURIST SPOT, PREFERRED BY DOMESTIC TOURIST

& 3 : FOR MIDDLE LEVEL BUSINESS EXECUTIVES/LEISURE TRAVELLERS

FACILITY HOTELS
BUSINESS HOTELS
SPECIALLY EQUIPED WITH CONFERENCE ROOMS, SEMINAR HALLS, INTERNET FACILITIES ETC. TO SUIT THE CORPORATE GUESTS. Eg: INTER-CONTINENTAL, CROWNE PLAZA LOCATED NEAR AIRPORTS AND SUITABLE FOR SHORT STAY TRAVELLERS. ARE FOUND NEAR ALL MAJOR CITY AIRPORTS. HONEYMOON HOTELS MOSTLY LOCATED AT HILL STATIONS AND SPECIALLY FASCILITATED TO SUIT THE COMFORTS OF HONEYMOON COUPLES. Eg. HOTEL WOODVILLE PALACE, CARLTON HOTEL, HOTEL HONEYMOON INN ETC.

AIRPORT HOTELS

3 STAR HOTELS

FORMAL AND SPACIOUS RECEPTION AREA AND LOUNGE THEIR RESTUARANTS CATER TO NON- RESIDENTS GUESTS TOO

EN-SUITE BATHS WITH GOOD STANDARD AND QUALITY OF EQUIPMENTS

COMFORTABLE STAY TARGETED 4 STAR HOTELS HIGH QUALITY FURNISHING, DCOR, AND EQUIPMENTS HIGH STAFF TO GUEST RATIO FOR BETTER SERVICES SERIOUS APPROACH TOWARDS CUISINES AND VARIETY

5 STAR HOTELS

THE ENTIRE HOTEL IS SPACIOUS AND LUXURIOUS EXQUISITE CUISINES THAT CATER TO TASTE BUDS FROM ALL OVER THE WORLD SERVICES ARE MORE, FLAWLESS AND PERSONAL ATTENTION TO THE GUESTS NEEDS SOME UNIQUE SERVICES PROVIDED IN THE 5 STAR HOTELS BUTLERS

CHAUFFER DRIVEN LUXURY CARS

PILLOW MENU CUSTOMISED SERVICES IN THE IN-HOUSE SPA AND SALOON 42 PLASMA TV, INTERNET, FAX, LAPTOPS ON RENT AND MUCH MORE

Product :- Hotels stay innovative in the peripheral services. Price :- The diverse nature and character of dishes, involvement of cost and spending power of customers.

Place :- Location of the hotel is the most important business decision for the hotel.
Promotion :- Advertisement, publicity, sales promotion, personal selling, word-of-mouth promotion and telemarketing are the components of a hotels marketing strategy.

People:- The hotel management should train its people regularly, especially the front line professionals. Physical Evidence:- Lobby- It being the first & the last part of the hotel that the guest sees, thus it should be well designed, also to ensure that the customer returns again the room should be comfortable and should have made his stay hassle free.

The Indian Hotels Company (IHC) is the parent company of Taj Hotels Resorts and Palaces. It was founded by Jamshetji N. Tata on December16, 1903. Currently the Taj Hotels Resorts and Palaces comprises 76 hotels, 7 palaces at 52 locations in 12 countries and employ over 13000 people.

It provides exciting activities ranging from sports, culture, environment, adventure, music, and entertainment. The Taj Business Hotels provide the finest standards of hospitality, which helps the business trips to be productive. They offer well-appointed rooms, telecommunication facilities, efficient service, specialty restaurants and lively bars, wellequipped business centres, and other conference facilities

THE TAJ GROUP OF HOTELS SEGMENTATION

TAJ LUXURY HOTELS

TAJ PALACE, TAJ MAHAL, TAJ BENGAL, TAJ WEST END OFFER FINEST STANDARD OF HOSPITALITY & SERVICE

TAJ BUSINESS HOTELS:

TAJ PRESIDENT, TAJ RESIDENCY, TAJ CONNEMARA, TAJ BLUE DIAMOND OFFER MULTI CUISINE RESTAURANTS & BEST BUSINESS FASCILITIES

TAJ LEISURE HOTELS:

TAJ BEACH RESORT, TAJ CULTURAL CENTRE, TAJ GARDEN RETREATS
LOCATED AT BEACH RESORTS, PALACES, PILGRIM CENTRES ETC.

The Taj Group of Hotels commits itself to the overall improvement of the ecological environment, which we are all a part of. We recognize that we are not owners but caretakers of the Planet and owe it to our children and future generations of humankind. It is our endeavor not only to conserve and protect but also to renew and regenerate the environment in which we live and operate

Products
Core Services :

Room Restaurant and Bar Meeting room

Banquet facility
Amenities Services

Courier Child care, Laundry, Pet Taj Sats Air Catering Ltd. Wi-Fi Access Express check -in and out Taj Air and Taj Yachts Babysitting Wake-up call

Barber shop, Boutiques, Florist Currency exchange In room telephone service Front desk 24 hour Gift shop

Taj hotel has set its price of the room on the basis of Business, Leisure and Luxury class.

Rate
Room Tariff of all TAJ Palaces, Resorts, And Hotels.pdf

Location of the hotel is the most important business decision for the hotel. Present in metro cities in India Global presence (Maldives, London, Dubai, Cape Town and many other countries)

PROMOTION STRATEGY
Promotional schemes are carried on regularly the hotel has many loyalty programe,clubes,membership,previlage etc some of them are 1. Taj Inner Circle 2. Taj advantage plus 3. TAPP Me Taj also offer Taj surprises including weekend savers, value vouchers, book early get more.

Major service encounter that extremely delighted or disappointed are: 1. Check in. 2. Bell person carrying luggage to the room. 3. Food. 4. Wake up call 5. Check out.

Skilled person Professional person Personal Agents Technological person Travel agents

The hotel has many competitors 1. The Oberai towers. 2. The Leela. 3. ITC Hotels. 4. Le Meridian. Acquisition - hotel blue diamond, pune.

Amanresorts, Alwar- Best Desert Retreat Oberoi Udaivilas, Udaipur- Best Place to Feel Like Royalty Taj Mahal Palace, Mumbai- Best Dining Oberoi Rajvilas, Jaipur- Best Tent Accommodations Oberoi Amarvials, Agra- Best Views of The Taj Mahal Taj Lake Palace, Udaipur- Best Place For Romance The Four Seasons, Mumbai- Best Car Services The Imperial, New Delhi- Best Common Spaces The Leela Palace, Bangalore- Best Business Hotel Devi Garh, Udaipur- Lovable Design

STRENGTHS Faster GDP growth Industrialization. Natural heritage India as a global player WEAKNESS lake of connectivity. Lake of publicity. Hectic rules Influence of politicians Marketing gap.

OPPORTUNITIES Health tourism. Strong in cultural and nature aspects. Commercialization of sports and games. FDI policy. Mismatch of supply and demand. THREATS Poor domestic tourism infra structure Political conditions Terrorism Increase in pollution Entry of new competitors

ENJOY THE STAY