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. Shortage of skilled employees
2. Retaining quality workforce
3. Shortage of rooms
4. Intense competition and image of India
5. Customer expectations
6. Manual back-end
  
 STAR 5 DELUXE
RATED
HOTELS 5

4
HERITAGE HERITAGE CLASSIC
HOTELS 3
HERITAGE GRAND
2
BUDGET HERITAGE 1
HOTELS
HOTELS
BUSINESS HOTELS
FACILITY
HOTELS AIRPORT HOTELS LUXURY

HONEYMOON BUSINESS
HOTELS
RESORTS LEISURE

MOTELS

UNCLASSI- GUEST HOUSES

FIED
LODGE
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)

Ra y mond Bicks o n
(C EO & MD)

Abhijeet mukherji
Anil Goel
(Executive dir.-hotel
Ajoy misra(Sales & Prakah Shukla(Technology & Sumit guha(Development (Executive dir.-Finance)
H N Srinivas(Human
Sankar parmeswaram(legal &
marketing) chief info officer) & projects) company secretary )
resource) operations)
 Market Share(Approx)
Others
8%
Hotel Leela Taj Hotels
9% 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.
 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

‘Inner 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.