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Hotel industry in India & the Taj group

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Hotel industry in India & the Taj group

  1. 1. Hospitality Industry INDIAN HOTELS COMPANY LIMITED (IHCL) Presented by: Group 5-Indian Institute of Management Rohtak,PGP06 © 2016 Anant Kumar, Abhay Kulkarni, Saurabh Kapoor, Shivansh Dahiya, Bhargav Kumar. All rights reserved.
  2. 2. Our Team Abhay Kulkarni Anant Kumar Bhargav Maddila Saurabh Kapoor Shivansh Dahiya © 2016 Anant Kumar, Abhay Kulkarni, Saurabh Kapoor, Shivansh Dahiya, Bhargav Kumar. All rights reserved.
  3. 3. Industry Analysis Hospitality industry Food & Beverage Accommodation Travel & Tourism • Hospitality industry is a broad industry comprising of sub industries like tourism industry, accommodation/lodging, restaurant, travel industry etc • All these sub industries are highly intertwined. © 2016 Anant Kumar, Abhay Kulkarni, Saurabh Kapoor, Shivansh Dahiya, Bhargav Kumar. All rights reserved.
  4. 4. Characteristics of the industry Fragmented • Large number of organized as well as small unorganized players • Taj, Oberoi, ITC, Oyo etc. Seasonal demand • Encounter huge seasonality in demands like demand is generally low in monsoon months • Gradually the trend is changing Diversity in prices and services offered • Like our country this industry also has huge diversity, in prices as well as services offered • From Rs.500 to rs. 1,00,000 tariff hotels © 2016 Anant Kumar, Abhay Kulkarni, Saurabh Kapoor, Shivansh Dahiya, Bhargav Kumar. All rights reserved.
  5. 5. Classification of hotels • Hotels in India are classified according to a scheme for classification of operational hotels by the Ministry of Tourism • Classified hotels enjoy some benefits like tax incentives, interest subsidies etc. • Getting classified is a hectic task with a lot of paper work involved, regulations to follow etc., thus a huge chunk of the industry is still not classified © 2016 Anant Kumar, Abhay Kulkarni, Saurabh Kapoor, Shivansh Dahiya, Bhargav Kumar. All rights reserved.
  6. 6. Porter’s 5 forces analysis © 2016 Anant Kumar, Abhay Kulkarni, Saurabh Kapoor, Shivansh Dahiya, Bhargav Kumar. All rights reserved.
  7. 7. PESTEL Analysis Political Factors • Political instability can effect tourism as well as Hotel industry e.g. Jammu & Kashmir, North-Eastern states • Frequent change of governments at state or central level affect policies and regulations Economical Factors • GDP growth of the country attracts foreign investments as well as tourists boosting the industry • Rise in Disposable Income due to rise in per capita income of the country Social Factors • Language is one crucial factor and with huge English speaking population, Indian hospitality industry has an edge • Festivals & other cultural celebrations generate huge revenues for this industry e.g. Holi, Kumbh mela etc. © 2016 Anant Kumar, Abhay Kulkarni, Saurabh Kapoor, Shivansh Dahiya, Bhargav Kumar. All rights reserved.
  8. 8. PESTEL (Cont.) Technological Factors • IT has enabled people to book their hotels without travel agents, they can even have a virtual tour • Medical tourism: India is becoming more and more popular for being an cheap but world class quality destination for medical treatments Ecological Factors • Government initiatives like ‘Project tiger’, ‘Go Green’ creates a positive image of the country and promotes wildlife tourism and hotels industry • Wildlife and National parks Legal Factors • Legal clearances required are a barrier for new entrants • Tax benefits: Sometimes government gives tax exemptions at a certain location to develop the tourism in that area/state which helps in the development of the industry. © 2016 Anant Kumar, Abhay Kulkarni, Saurabh Kapoor, Shivansh Dahiya, Bhargav Kumar. All rights reserved.
  9. 9. Strategic segmentation & positioning Segmentation Targeting Positioning Taj Hotels  high end luxury hotel  Tariff starts Rs. 10000 to rs. 102000 per day  Demographic (on the basis of occupation and income)  Geographic  Psychographic  High end, ultra rich individuals  Diplomats, celebrities, top level executives  A luxury brand with heritage Vivanta  upscale premium hotel  Tariff from Rs. 5000 to rs. 33500 per day  Demographic (on the basis of occupation and income)  Geographic  Psychographic  Comparatively younger but rich individuals  Positioning as very upscale brand  “Discover”  Positioning through print ads Gateway  medium range hotel  Tariffs go from Rs.5000 to Rs.16000 for one day  Demographic (on the basis of income)  Geographic  Higher middle class income group  “Smart & informal”  Positioned as smart mid market Ginger  budget hotel  Tariff starts from Rs. 1700 for one day  Demographic (Income based)  Geographic  Middle class youth  Economical with comfort and technology © 2016 Anant Kumar, Abhay Kulkarni, Saurabh Kapoor, Shivansh Dahiya, Bhargav Kumar. All rights reserved.
  10. 10. Company overview Organized into 6 Brands Headquartered at Oxford House in Mumbai Revenue ~ Rs 2000 Cr 13000 employees Opened its first Five Star Hotel in 1974 108 hotels in India 17 Hotels outside India TATA Group Subsidiary Founded in 1903 Founder: Jamshetji Tata © 2016 Anant Kumar, Abhay Kulkarni, Saurabh Kapoor, Shivansh Dahiya, Bhargav Kumar. All rights reserved.
  11. 11. SWOT ANALYSIS © 2016 Anant Kumar, Abhay Kulkarni, Saurabh Kapoor, Shivansh Dahiya, Bhargav Kumar. All rights reserved.
  12. 12. DIVERSIFICATION STRATEGIES  Gone for both related and unrelated diversification  Expanded into Air catering, Spa Operations, Yachts and Yachts  Taj Air  Taj SATS  Spas  Taj Safari  Taj Khazana © 2016 Anant Kumar, Abhay Kulkarni, Saurabh Kapoor, Shivansh Dahiya, Bhargav Kumar. All rights reserved.
  13. 13. FINANCIALS  Revenue currently stands at 2135 Cr.  Revenue has been consistently increasing at around 7%  Suffered loss of 82.02 Cr in the last financial year  Market leader in Hospitality Industry with market capitalization of 9,318.96 crore. © 2016 Anant Kumar, Abhay Kulkarni, Saurabh Kapoor, Shivansh Dahiya, Bhargav Kumar. All rights reserved.
  14. 14. Competencies Endeavour to select, retain and compensate the best talent in the industry Reward and recognize quality customer care based upon individual and team performance Commit to provide opportunities for continuous learning and development Abide by fair and just policies that ensure your well-being Commit to regular and formal channels of communication Strongly believe that you are the Taj Fulfil guest needs and provide anticipatory service Defect free products and services Fond farewell using the guest name, whenever possible © 2016 Anant Kumar, Abhay Kulkarni, Saurabh Kapoor, Shivansh Dahiya, Bhargav Kumar. All rights reserved.
  15. 15. Competencies & Resources Resources Competencies Competencies • Brand image in India • Diverse business models • Financially strong parent group • Global reach • Strong loyalty programs to retain customers • strong corporate purchase chain- less raw material cost • Asset light policy- Revenue Stability © 2016 Anant Kumar, Abhay Kulkarni, Saurabh Kapoor, Shivansh Dahiya, Bhargav Kumar. All rights reserved.
  16. 16. Competencies & Resources Advantage of alliances and joint ventures Superior guest servicing Tangible Resources- Site and Location Managerial vision and Judgement Intangible Resources- Positioning and Brand Strength © 2016 Anant Kumar, Abhay Kulkarni, Saurabh Kapoor, Shivansh Dahiya, Bhargav Kumar. All rights reserved.
  17. 17. SKILls An amazing customer relationship management Strict compliance to SOPs A timely acquisition of major competitors like Starwood group and The Pierre Arrangements made for golf and tennis: Recreational Advantage “No room for the Ordinary” Full equipped business centre and safe deposit lockers Affiliation from international accreditation body, making it certified for foreign visitors Use of all modes of communication Provide in house baby sitting and wake up calls A very Hospitable stay to All © 2016 Anant Kumar, Abhay Kulkarni, Saurabh Kapoor, Shivansh Dahiya, Bhargav Kumar. All rights reserved.
  18. 18. The Indian Hotels Impetus 4S SWAGAT SUVIDHA SAFAI SARAL © 2016 Anant Kumar, Abhay Kulkarni, Saurabh Kapoor, Shivansh Dahiya, Bhargav Kumar. All rights reserved.
  19. 19. Opportunity Horizon Future Markets Growth • Hotel Industry is expecting 9-11% revenue growth in 2015-2016 Expansion • Planning to move from “Mono Brand” to “Sun and Planets Model” to better serve different segments Tie Ups • Conscious in purchases after stumbling in high value properties • Tied up with American Express in loyalty program © 2016 Anant Kumar, Abhay Kulkarni, Saurabh Kapoor, Shivansh Dahiya, Bhargav Kumar. All rights reserved.
  20. 20. Opportunity Horizon(Cont.) Mergers and Expansion Plans Tie ups with airlines and cruise lines Keen about huge new launches in India Hosting renowned guests- MarketingContinue with “room for more” campaign Concentrating more on “Taj Holidays”- resort destinations for domestic travellers Concentrate more on Ginger Hotels © 2016 Anant Kumar, Abhay Kulkarni, Saurabh Kapoor, Shivansh Dahiya, Bhargav Kumar. All rights reserved.
  21. 21. Opportunity Horizon(Cont.) Plan to have 200 hotels globally by the end of five years Looking for 450 crore expenditure on 33 new hotels in near future Continue to invest in West Bengal To raise 1000 cr by issuing debentures Corporate Ambitions © 2016 Anant Kumar, Abhay Kulkarni, Saurabh Kapoor, Shivansh Dahiya, Bhargav Kumar. All rights reserved.
  22. 22. Sense of purpose CULTURE OF SERVING GUESTS: Following the traditional Indian Approach Shared sense of purpose : Ownership to the Employees What never change is – “relationship with the guest” © 2016 Anant Kumar, Abhay Kulkarni, Saurabh Kapoor, Shivansh Dahiya, Bhargav Kumar. All rights reserved.
  23. 23. Direct from the leaders Committed to improving the quality of life of the communities we serve by striving for leadership and global competitiveness in the business sectors © 2016 Anant Kumar, Abhay Kulkarni, Saurabh Kapoor, Shivansh Dahiya, Bhargav Kumar. All rights reserved.
  24. 24. THANK-YOU!

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