SUMMER INTERNSHIP PROJECT

ON
INDIAN HOTELS COMPANY LIMITED

SUBMITTED TO SUBMITTED BY

NAME: Mr. Zahid Masroor STUDENT NAME: Vasu Goyal

DESIGNATION: Chandigarh University UID: 19BBA1434
LOCATION: Gharuan, Mohali BATCH: 2019 – 2022
 INDIAN HOTELS COMPANY LIMITED

• The Indian Hotels Company Limited (IHCL) is an Indian hospitality company that manages
a portfolio of hotels, resorts, jungle safaris, palaces, spas and in-flight catering services.
• IHCL was founded in 1868 by Jamsetji Tata and is headquartered in Mumbai,
Maharashtra.
• BRANDS
1. TAJ
2. Vivanta
3. Ginger
4. SeleQtions
5. The Gateway
 Key Financials
• The Indian Hotels Company Limited (IHCL) and its subsidiaries,
collectively known as Taj Group, is one of Asia's largest and finest hotel
groups. The company was incorporated by the founder of the Tata
group, Jamsetji Tata and launched its first property, the Taj Mahal
Palace, in Bombay in 1903.
Particulars (INR Cr.) FY2017A FY2018E FY2019E FY2020E

Net Sales 2391 2642 2933 3285

Net Profit 142 199 284 366

EBITDA 574 654 774 897

ROE (%) 5.43 4.67 6.31 7.60

 HOSPITALITY INDUSTRY
• The hospitality industry is generally recognized as a section of the wider service industry, with a
focus on leisure, rather than more basic needs. In this article, you will learn more about the
nature of the hospitality industry, the various sectors contained within it, and its connections to
the hotel industry and travel industry.
• The goal of the hospitality industry is to provide customers with an enjoyable experience.
Whether that enjoyment comes from eating a good meal, relaxing in a luxurious spa, or getting a
good night’s rest away from home, making sure each individual guest is taken care of is
paramount.
• The 4 Segments of the Hospitality Industry
1. Food and Beverages
2. Travel and Tourism
3. Lodging
4. Recreation
 TOP LEADERS IN HOSPITALITY
INDUSTRY
The market size of the hospitality industry reached 1.21 trillion U.S. dollars in 2019,
reflecting a decrease over the previous year's size of 1.24 trillion U.S dollars. The sector was
forecast to reach 1.22 trillion U.S. dollars in 2021.The Hospitality market is expected to grow
at a CAGR of around 8% to nearly $5,891 billion by 2022.

1. Indian hotels company ltd. (IHCL)

2. The Oberoi Group
3. Marriott International India Pvt Ltd
4. Hyatt Hotels Corporation
5. The Lalit Hotels
6. The Park Hotels
7. HLV Ltd (Hotel Leela Venture)
 Competitor Analysis
The Indian Hotels Company Ltd (IHCL) is an international leisure and hotel service
company. It operates hotels under the brand names of SeleQtions, Vivanta, The
Gateway, Ginger, Expressions, TajSATS and Taj. The company also operates luxury
residences Taj Wellington Mews in Mumbai, India. The hotels are facilitated with
restaurants and lounge bars including Bombay Brassiere, Wasabi, Golden Dragon,
Thai Pavilion and House of Ming.
IHCL’S major competitors are:-
Name of the company Market Cap Sales Turnover Total Assets
(Rs Cr) (Rs Cr) (Rs Cr)
Oberoi Hotels & Resorts 7103.98 1417.6 2925.66

The Leela Palaces 651 853.5 3950

Pestana Hotel Group 8503.5 3147.1 9746

Capella Hotel Group 4309.61 1855.6 5430

Hyatt Hotels Corporation 825.29 1558.6 6776

 Marketing Strategy of Indian Hotels
Company Limited
• Product

Taj Hotels is a chain of resorts and hotels for leisure, events and business and operates under three brand names Vivanta, Gateway and Taj. It
includes Beach hotels, Hill resorts, City Hotels, Residential Hotel, Palaces and Wilderness Retreats.

• Place

Taj Hotels started its operations through The Taj Mahal Palace from Mumbai in India in the year 1903 and with time extended its presence to
one hundred and one hotels in sixty-four destinations.

• Price

Taj Hotels is one of the leading hospitality chains and has

targeted business and leisure travellers from an upper-class
section of society. Its hotels are established at prime locations to
depict luxury living and extravagant facilities to its esteemed
clients.

• Promotion

Taj Hotels has adopted several marketing strategies to promote its brand name in the international and domestic arena.
 SWOT ANALYSIS OF IHCL
• Strengths
IHCL has a very dominant position in Indian hospitality industry with largest distribution of hotels around the country. Its
key advantage is the established ‘Taj’ brand name. It has got a much diversified hotel and brand portfolio catering to
different market segments which helps in capturing wider customer base. The company has got sales and marketing reach
globally. The parent company being Tata sons limited which is one of the largest companies in India is an added advantage.
Their presence in every segment namely luxury, upper upscale, upscale and budget allows more flexibility and stability.
They have a well-diversified business model of subsidiaries, associates, joint ventures and management contracts which
help in reducing risk and fuels faster growth.
The company has introduced a strong loyalty programmed which helps in retaining customers. The company’s alliances and
partnerships have helped it in entering into new markets such as wildlife lodges and air catering.
• Weakness
The less established brand name of the company in international scene can be viewed as a weakness. Nearly 75% of the
company’s income is generated by domestic operation resulting greater dependency on Indian market. In domestic market
even though company has its presence in more than 15 states; 66% of their revenue and nearly 90% of profits come from
top six hotels in four cities.
Even slight fluctuation in the country’s economy can affect profitability. The high dependency on higher-end luxury market
• Opportunities
Rapid growth in inbound and domestic tourism is a great opportunity for the company. Domestic tourism is
growing at a phenomenal rate of 15.5% annually. Growing demand for budget and mid-segment hotels due to
the growth of Indian middle class can be viewed as an opportunity. Healthy salary increases in corporate
world is expected to create demand for leisure tourism. Launch of incredible India in both domestic and
international market to promote destinations can be a boost in business.
The introduction of medical visa may promote more volume and extended stay in all key destinations. The
company’s entry into new markets such as wildlife lodges, luxury residences, and spas will create new growth
prospectus. Budget airlines now have connectivity across the country with competitive rates and attractive
offers which will inspire domestic tourism. Increased business opportunities in India again have paved path for
growth of conference and event tourism.

• Threats
Growing presence of international hotel chains such as Marriot international, The Four seasons, Accor group,
Shangri-La, Dreams resorts and spas etc. can be considered as growing threat to the company. The expansion
plans of Indian hotel chains like ITC India limited, The Leela group, The East India Hotel Company and The Lalit
may affect the market share of the company. Due to the arrival of international airline operators and
affordable international travel, there has been massive growth of outbound tourism mainly to south East Asia,
Europe and Australia. This has increased risk for domestic leisure segment.
Due the company’s portfolio of foreign currency debts, it is vulnerable to fluctuations in currency and interest
rate risks. The debt equity ratio of the company shows drastic hike from the previous years which can really
be a threat.
 PEST ANALYSIS
POLITICAL ECONOMIC

 Foreign direct investment -100%  Recent economic Slowdown effect

 Disinvestment  High growth in tourism industry expected- Africa, Asia Pacific &
 Taxes Middle East above global average
 Eco-tourism thrust industry" Foreign collaboration  Export Promotion Capital Goods Scheme (EPCG)
 Government pressures to increase the security level, add  Not given Infrastructure Industry Status
sewage treatment plant etc.  Interest rates
 Government Promoting Tourism  Exchange rates Inflation rate
 Government permission is no longer required for hiring foreign
technicians

SOCIAL TECHNOLOGICAL

 Increased Extremism  Computerization

 Increasing disposable income  Global Distribution System (GDS)
 Changing life styles due to exposure to global environment.  Provide LCD, Laptop & conference facilities
 Urban middle class forms 40 per cent of the total population  Real-time access to inventory, transparency across multiple
channels.
 IHCL Core Values
The Core Values contained in the IHCL for its workers and the company.
• Joy
•Trust
 
Fairness with all stakeholders Derive joy and happiness from what we do and how we do it
Openness and transparency in what we do Serve all stakeholders with joy and utmost dedication
Free flow of information Create and maintain an environment where there is joy and
happiness, where people are respected and diversity is
Alignment of all stakeholders celebrated
Build and strengthen long-term relationships

•Awareness
Enhance awareness around our plans, strategies, tactics, and processes
Work together to create greater enterprise value
Participative in our decision making
Imbibe a sense of belonging across all stakeholders
 Digital Marketing Analysis of IHCL
IHCL Buyers’ Journey can be divided into 3 parts:

1. Cold audience: consist of people looking for a

luxury hotel or restaurant but are not aware of Taj
Hotels.

2. Warm Audience: A part of a cold audience

becomes a warm audience when they get to know
about Taj Hotels. These are the people who are
considering the Taj Hotel but are still not sure
about it.

3. Hot Audience: A part of a warm audience

becomes a hot audience when they decide to go for
Taj Hotels. However, these people might still be
looking for the best prices before booking.
 CONCLUSION
• So, this is how IHCL Hotels use Google Ads and Facebook Ads to attract their
target audience. We hope that you learn a lot about Taj Hotels’ Digital
Marketing strategy from this post.
• Digital marketing is the promotion of products or brands through online. In
recent days the demand of digital marketing in hotels has become
increasingly high with Social Media Marketing (SMM) which works with social
networking sites and Search Engine Optimization (SEO) making the website to
appear in search results with advertisement on Google and online magazines
by search engine marketing (SEM), video marketing through you tube and
websites are types of digital marketing. Searching hotels through online by
computers and mobile with the hotel websites is the new trend of digital
marketing and it makes the possibilities to enhance the local search on hotels
by giving required content, User profiles, managing citations and in search
results.