Taj Mahal Palace - An Introduction

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Taj Mahal Palace - An Introduction

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Taj Mahal Palace - An Introduction

  1. 1. Pricing of Services | The Taj Mahal Palace
  2. 2. Presented By Maneet Kumar Arti Kumari Mani Shankar Sonkushre Debarati Sen Gupta Man Mohan Anand Monalisa Ghosh
  3. 3. Introduction – Hotel Taj Mahal Palace  The Indian Hotels Company (IHC) is the parent company of Taj Hotels Resorts and Palaces.  It was founded by Jamshed Ji N. Tata on December16, 1903.  Currently the Taj Hotels Resorts and Palaces comprises 57 hotels at 40 locations across India  Additional 18 hotels are also being operated around the globe.  During fiscal year 2006, the total number of hotels owned or managed by the Company was 75
  4. 4. Services at Taj Mahal Palace • Wireless Internet Access • Color Copier • In-house Video-Conferencing Business Services • Laptop Computers on Hire • Translation / Interpretation Services • Secretarial Services • 24-hour in-Room Dining • Baby Sitting Leisure and Other • Car Hire Service Services • Currency Exchange • House Doctor • Yacht
  5. 5. Reference Prices It is a price point in memory for a good or services and generally consists of price last paid , the price frequently paid or the average of all prices customer have paid for similar offering. It differs from actual price due to : • Service Variability. • Providers are unable to estimate the price. • Individual customer needs vary. • Collection of price is overwhelming. • Prices are not visible
  6. 6. Nonmonetary Costs Considered in Pricing • Time Cost • Search Cost • Convenience Cost • Psychological Cost
  7. 7. Is Price an Indicator of Service Quality?
  8. 8. Approaches to Pricing of Services Cost Based Demand Competition Based Based
  9. 9. Cost Based Fixed Cost Variable cost All Real asset Cost In Room Amenities Depreciation Cleaning and House keeping Cost of Operation Distribution Cost Cost of labour Travel Agent Commission Cost Cost of Sales and marketing Special Application e.g. Spa
  10. 10. Competition Based Competitive Pricing is the discipline that strategically and tactically defines the price offered in comparison to the market. Competitors of Taj are Marriot group ,The Oberoi group ,Grand Hyatt group, ITC group , The Lalit Hotel group, Leela group. Category Taj Oberoi Leela Standard Room Rs. 13,500 Rs. 13,299 Rs. 12,978 Luxury Room Rs. 21,278 Rs. 21,675 Rs. 20,287
  11. 11. Top 10 Hotels in Terms of Business  Taj Mahal Palace & Tower, Mumbai  Leela Palace, Bangalore  Trident Hilton, Gurgaon  Oberoi Udaivilas, Udaipur  Leela Kempinski, Mumbai  Rambagh Palace Hotel, Jaipur  The Four Seasons, Mumbai  Imperial Hotel, New Delhi  Taj Coromandel, Chennai  Sheraton Maurya, New Delhi Source - http://www.theindiastreet.com/2007/08/top-ten-10-business-hotels-in- india.html
  12. 12. Demand Based Pricing Demand Based pricing also known as Dynamic pricing is all about tailoring their pricing according the current supply and demand You expect to pay more for a hotel when a city is full of conventioneers and to pay less at a resort during the off season. Demand changes constantly based on economic conditions and other external factors. They offer wide ranges of products and services that customers may value or devalue according to whim and fashion.
  13. 13. Price Elasticity
  14. 14. Perceived Value Low Price All that I Everything get for all Value I want in a that I give service Quality I get for the price I pay
  15. 15. Perceived Values (Contd.) All I get for all that I give Quality I get for • Price Framing the Price I pay • Price Bundling Everything I want • Value Pricing • Complementary in a service • Market Pricing Value is Low Price • Prestige Pricing Segmentation • Result- Based • Discounting • Skimming Pricing Pricing • Odd Pricing Pricing • Synchro-Pricing • Penetrating Pricing
  16. 16. Thank You

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