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Overview of Brand Extension
ITC Hotels
Brand Management Project
Parvez Jesani (PGP30157)
ITC’s extension to Luxury Hotels
ITC entered the hotel industry in 1975
Luxury Hotel Industry in India
Luxury hotels have witnessed a 8x growth from FY96 to FY14
ITC’s share in the pie
18%
82%
ITC hotels
Other hotels
Out of 52,000 luxury rooms in India, ITC owns 9,200 rooms
ITC’s growth over the years
ITC has added 8,000 rooms in the last 2 years
8000
9000
10000
11000
12000
FY09 FY10 FY11 FY12 FY13 FY14 FY15
Revenue (INR Mn)
Product
Luxurious Hotels
Price
Room rentals are very high
Rent for Basic Rooms are ~8-10k/
room/ night
Service charges are exorbitantly high
Place
ITC has its presence in Tier 1 and few Tier 2 cities in India
New Delhi Mumbai
Chennai Bengaluru
Hyderabad Kolkata
Jaipur Agra
Vadodara Aurangabad
Vizag Chandigarh
Jodhpur Kerala
Promotion
Loyalty Program for Customers
Tie up with Wills Lifestyle stores
Schemes (one night stay free in the hotel for
spending Rs. 60,000 in its properties
Competitive Frame of Reference
Target Group
High end tourists
Business Travelers
Higher income group
Brand management   itc hotels

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