Chapter - 4 Taj Group of Hotels in India: An...

Taj Group of Hotels in India: An Overview

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Chapter - 4


In the previous chapter, the researcher has discussed the concept engagement,

nature and importance of employee engagement for an organization. Theories and

models of employee engagement along with its various drivers and barriers have been

discussed in the previous chapter. The chapter ends with antecedent and consequences

of employee engagement and measures to improve the level of engagement among the

employee for organizations.

The present chapter has been divided into two sections. The first section deals

with the historical background of hotel industry in India, major players of hotel

industry and challenges faced by the Indian hospitality industry. Second section

elucidates the history of Taj Group of Hotels, its hotels in New Delhi and human

resource policies of Taj Group of Hotels. The chapter concludes with information on

various training programmes organized by the Taj Group of Hotels.

Section (A)

Historical Background of Hotel Industry in India

4.1 Introduction

In India the concept of shelter for travellers is not new but it is a very old one.

The historical records are replete with mention of viharas, dharamsalas, sarais etc.

These establishments provided shelter to the travellers. The development of hotel

industry in India has also been continuous and satisfactory. The British introduced

hotels in India mainly for their own use or for foreign travellers (Zulfikar, 1998).

Indian hospitality industry has a great image since very early times in the history of

tourism. Hotel industry in India started very late as compared to hotel industry in

Europe and America. Hotel business in India at present is more or less in the western

style particularly in the American style in recent times. These hotels were first started

about 170 years ago mainly for princes, aristocrats and high dignitaries. First western

style hotel in India was named as “British Hotel” and started in Bombay in 1840.

After that Auckland hotel was started in 1843 and it was renamed in 1858 as the Great

Eastern Hotel (Sharma, 2004).


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Today there are a number of western style hotels in India. Twentieth century is

called as the turning point in the history of hotel industry in India because during this

period many hotels owners entered the market. In 1903, Jamsetji Tata opened the

hotel named as Taj Mahal Palace and Tower in Mumbai. It has been rated among top

ten hotels in the world and was the first hotel of international standard and repute,

built by an Indian. After that another owner entered in the field of hotel industry, i.e.

Rai Bahadur Mohan Singh Oberoi. He opened hotels not only in India but also

abroad. Later on the concept of heritage hotels developed in India. According to this

concept, the palaces and forts of Maharajas were converted into luxury hotels.

Kashmir was the first state in India to follow this concept, after that in Rajasthan,

many palaces were converted into luxury hotels (Zulfikar, 1998).

Indian Tobacco Company (ITC) entered in the hotel industry in 1957 and

opened its first hotel in Chennai and named as Chola. ITC has two types of hotels

such as Welcome Hotels and Indovilles. Indian Tourism Development Corporation

promotes largest hotel chain in India; the Ashoka Group. In 1971, Air India has set up

a wholly owned subsidiary called Hotel Corporation of India (HCIL) with a capital of

6.5 million dollars. The HCIL has opened Centaur Hotel at Mumbai airport in 1974.

In India, in the last few years, many hotels have been developed by Oberoi Group,

ITC, ITDC, Taj Group, Hotel Inn and Centaur Hotels.

In the hotel sector, a number of international players have strengthened their

presence (Sharma, 2004). Moreover, Indian hotel chains are also expanding

internationally. Prior to the 1980s, Indian hotel industry was a slow growing industry

(Anwar, 2014). After the liberalization of Indian economy 1992, many hotels were

constructed through the partnership of multinational companies in India. The last

decade has witnessed foray of almost all leading international hotel chains in India.

The presence of major international hotels like Radisson, Accor, Holiday Inn, Le

Meridian has boosted India’s prospects internationally and with the cooperation from

its government, hospitality industry of India will definitely look forward to inviting

more foreign investors in future (www.victoriaihm.com).

The Indian hospitality industry has emerged as one of the key driver of Indian

economy. This industry is a key member of the service sector and is linked directly to

domestic and international tourism. Hospitality comprises a wide range of services

such as accommodation, food and beverage, events and activities. The fortunes of the


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hospitality industry have always been linked to the prospects of the tourism industry.

The Indian hospitality industry has recorded healthy growth fuelled by healthy inflow

of foreign tourists as well as increased tourist movement within the country and it has

become one of the leading players in the global industry.

The tourism and hospitality industry is one of the largest segment under the

service sector of the Indian economy. It is one of the largest source of foreign

exchange earning in India. In India, the sector’s direct contribution to gross domestic

product (GDP) is expected to grow at 7.8 per cent per annum during the period 2013-

2023. The total market size of the tourism and hospitality industry in India stood at

US$ 117.7 billion in 2011 and is anticipated to touch US$ 418.9 billion by 2022.

Tourism and hospitality industry is a highly labour intensive industry and provides

employment to all categories of workers such as highly skilled, semi skilled and

unskilled employees (Ministry of External Affairs, Government of India, 2014).

The hotel industry comprises a major part of the tourism industry. Historically

viewed as an industry providing a luxury service valuable to the economy as a foreign

exchange earner, the industry today contributes directly to employment (directly

employing around 0.15 million people) and indirectly (Arunagiri, 2011). The

hospitality sector in India is expected to add 52,000 new hotel rooms in five years

(2012-17), according to a survey conducted by Cushman & Wakefield. This will lead

to a rise of over 65 per cent in total hotel inventory in India. The National Capital

Region (NCR) is expected to contribute around one third to the total expected hotel

rooms supply during the period (Ministry of External Affairs, Government of India,

2013-2014).

4.2 Concept of Hotel

Hotel or inn may be defined as the place where bonafide travellers can get

food and shelter at a cost and he/she is in a position to pay for it. Sharma (2004)

defines that “hotel is a place which supplies boarding and lodging or a place for the

entertainment of the travellers.” In other word, it may be said that a hotel is a home

away from home. A hotel is a place where the traveller or guest can be provided

accommodation, food and beverage and entertainment. Hotels provide

accommodation, meals and refreshments even at odd hours for those who reserve

their accommodation in advance (Kumari & Singh, 2012).


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4.3 Major Hotel Chains in India

4.3.1 The Ashok Group of Hotels

One of the largest hotel chains in India is known for its unique mix of Indian

ambience and hospitality with facilities that are of international levels. The Ashok

Group of Hotels are located in major cities of India and range varies from five star

deluxe to first class and to budget, depending on tourist needs. Ashok Group of Hotels

are run by Indian Tourism Development Corporation. It has 35 hotels with 3000

rooms (Kumari & Singh, 2012). The management of Ashok Group believes in

offering the best in the hospitality industry and the Ashok group runs by especially

trained workforce for the hospitality industry.

4.3.2 The Taj Group of Hotels

The Indian Hotel Company Limited is the parent company of Taj Group of

Hotels, India’s most successful hotel chain. In 1903, Jamsetji Tata opened the hotel

named as Taj Mahal Palace and Tower in Mumbai. It has been rated among top ten

hotels in the world and was the first hotel of international standard and repute, built by

an Indian. Today the Taj Group has won international acclaim for its quality hotels.

The Taj, a symbol of Indian hospitality, completed its centenary year in 2003. The Taj

Group has continued to open its new hotels through management contracts in the

domestic and international markets. The past year witnessed opening of four new

Gateway Hotels at Hubli, Chennai, Kolkata and Raipur. The Taj Group also opened

the Vivanta by Taj, Surajkund, NCR last year and also expanded Ginger Footprint by

opening three properties in Noida, Jaipur and Chandigarh. These new openings have

added a total 1100 rooms to the Taj Group of Hotels (Zulfikar, 1998). On March 30,

2015 the Taj Group launched the Vivanta by Taj - Dwarka, New Delhi. This is the

30th hotel of Vivanta by Taj and seventh hotel of Taj Group in National Capital

Region (www.vivantabytaj.com).

4.3.3 Oberoi Group of Hotels

Rai Bahadur Mohan Singh Oberoi had opened first hotel of Oberoi Group in

Shimla and put the name as Clarkes. Oberoi opened his second hotel named The

Maidens in New Delhi in 1934. He opened hotels not only in India but also abroad

and received many awards for tireless efforts in promoting Indian hospitality industry.


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Most prestigious of them is the “Man of the World” by the International Hotel

Convention in New York (Sharma, 2004).

4.3.4 Welcome Group of Hotels

Welcome Group of Hotels are managed by Indian Tobacco Company. It also

manages International Travel House which is one of India’s leading travel and tour

agencies and offers services for business and leisure travellers throughout India.

Welcome Group of Hotels, palaces and resorts in centres of tourists and business

interest across, offers visitors the widest spread of any private sector hotel chain in the

country (Sharma, 2004). Welcome Group has a marketing and reservation agreement

with Sheraton for its three hotels in New Delhi, Agra and Chennai. Welcome Group

of Hotels anywhere in India, understand the special needs of both for tourists and

business travellers. This group provides innovative business facilities and all the

amenities and assistance required to transact business in the most effective manner. It

has 21 hotels in India (Kumari & Singh, 2012).

4.3.5 Centaur Group of Hotels

The Hotel Corporation of India Limited (HCI) is a public limited company,

wholly owned by Air India Limited and was incorporated on July 8, 1971 under the

Companies Act, 1956 when Air India decided to enter in hospitality industry, but later

it became a corporation itself, named as Hotel Corporation of India (Zulfikar, 1998).

The objective was to offer better product, both at international airports and at other

places of tourist interest, thereby also increasing tourism in India.

4.4 Direct Contribution of Tourism and Hospitality to GDP

Tourism and hospitality sector has direct contribution to GDP about US$ 41.1

billion in 2014 and it grew to about US$ 44.2 billion in 2015 and estimated to

contribute US$ 88.6 billion in 2025.


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Figure 4.1. Tourism and Hospitality Contribution to GDP

Source: http://www.ibef.org/industry/indian-tourism-and-hospitality-industry-

analysis-presentation

4.5 Initiatives of the Government of India for the Development of Tourism and

Hospitality Industry

The Ministry of Tourism, Government of India has launched a web-based

public delivery system to make easy to the process of filling applications by the travel

trade service providers seeking recognition from the Ministry and also to bring

transparency in granting the approvals. All the applications will now be examined,

processed and approved within 45 days from the receipt of completed applications.

Government has launched the campaign “Clean India” to spread awareness in all

sections of the society on the importance of cleanliness and hygiene in public places,

particularly monuments and tourist destinations. The campaign is a combination of

persuasion, education, training, demonstration and sensitisation of all sections of the

society. Government has launched the “Clean Ganga” mission as well. The tourism

ministry has chalked out plans to develop 50 tourist circuits in the country.

Government is allocating funds to the Ministry in the upcoming budget to carry on

with such plans (Chitravanshi, 2014).


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The Government’s decision to introduce the electronic visa facility (E-Visa)

will give a much needed boost to inbound travel in India. Enforcing the electronic

travel authorisation (ETA) before the next tourism season, which starts in November,

will result in a clear jump of at least 15 percent and this is only the start, as per Mr

Madhavan Menon, Managing Director, Thomas Cook (India).

In order to boost medical tourism in India, Medical Visa (“M” Visa) has been

introduced for the foreign tourists who wish to come to India for medical treatment.

Ministry of Tourism, Government of India has tied up with United Nations

Development Programme (UNDP) to promote rural tourism in India. According to

Dinodia (2014) 100 percent foreign direct investment has been declared for hotel

industry and to increase the numbers of rooms, the Government of India has allocated

huge amount for construction of new hotels. The hospitality sector in India expects

52,000 new hotel rooms to be added in five years (2012-17). Visa on arrival scheme

has been started and to make India as “A 365 Day Destination” that offers

destinations like beaches of Kerala and snow covered mountains and peaks of

Kashmir (Dinodia, 2014). The Ministry of Tourism has been making efforts to

develop quality tourism infrastructure at tourist destinations and circuits in the

country. It has sanctioned Rs 4,090.31 crore (US$ 680.52 million) for a total number

of 1,226 tourism projects, which includes projects related to Product/Infrastructure

Development for Destination and Circuits (PIDDC), Human Resource Development

(HRD), fairs and festivals and adventure and rural tourism for infrastructure

development (Ministry of External Affairs, Government of India, 2013-2014).

4.6 Challenges before Indian Hospitality Industry

4.6.1 Higher Employee Attrition

Attrition means the failure of a worker to report for work when he/she is

scheduled to work. A worker is considered as scheduled to work when the employer

has work available for him and the worker is aware of it. It is related with reduction in

the number of employees through resignation of the employees. Employees leaving

due to end of contract will not be considered as attrition. Today hotel industry in India

is facing the severe problem of attrition. Attrition rate in hotel industry is much higher

as compared to other industries in India. The attrition rate is increasing between 5-10

percent per annum. The industry is losing its professionals at the top management


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level too. Supporting this view, the Federation of Hotel and Restaurant Association of

India (FHRAI) has gone on record saying that the industry leaders are worried about

losing qualified trained professionals to outer shores (Manjunath & Kurian, 2011). A

study conducted by Anwar (2014) on attrition among the workers at star category of

hotels in Delhi has explained that hotel industry is facing the problem of attrition at

lower management level and identified the three reasons behind attrition i.e. financial,

nonfinancial and personal reasons of attrition.

4.6.2 Low Salary Packages

The main reason of attrition in hotel industry is related with the financial

aspect. The employees are getting low salary package as compared to other industries

in India. The employees of housekeeping and account departments get lower salary

packages, which creates dissatisfaction among the employees (Anwar, 2014).

4.6.3 Lack of Job Satisfaction among the Employees

Most of the lower level employees expressed their views that they are not

really satisfied with the kind of job what they do. There are various factors which are

responsible for the higher rate of dissatisfaction among the employees. Lack of

respect from others and superiors, inflexible working hours, lower pay scale, more

physical stress and lack of career growth opportunities are responsible for job

dissatisfaction among the hotel employees. Most of the catering institute students in

India are not interested to join the hotel industry at the entry level job positions,

because of the work culture and poor pay package. Further, most of the catering

institutes are charging high fees for their three year or four year degree course in hotel

management because of high investments required to operate the hotel management

programmes and high operating cost as compared to other degree programmes.

Therefore, students look at the rate of return after completion of the course

(Manjunath & Kurian, 2011).

4.6.4 Lack of Well Trained Staff

One of the major challenge before Indian hospitality industry is lack of

trained staff as per industry requirement. Hospitality industry is completely based on

the service provided by the employees to the guests and satisfaction level of the


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guests. Therefore in order to satisfy the guests, employees should be trained

effectively so that better services can be delivered (Manjunath & Kurian, 2011).

4.6.5 Lack of Infrastructural Facilities

The hospitality industry is also lacking behind in term of infrastructural

facilities such as effective mode of transportation, means of communication,

electricity supply, water supply and access of internet facilities.

4.6.6 Instability of Government

In India, the government changes after every five years. New

government develops new plans and policies. It requires a lot of time in implementing

new plans and policies. Inadequate financial support by the government, lack of

coordination between central and state government, safety and security are the major

challenges before Indian hospitality industry.

Section (B)

Taj Group of Hotels in India

4.7 Introduction

The Indian Hotels Company Limited (IHCL) and its subsidiary companies are

collectively known as Taj Group of Hotels. Taj Group is one of Asia's largest and

oldest group of Hotels with 128 hotels in 61 locations in India and 16 international

hotels in the Maldives, Malaysia, UK, USA, Bhutan, Sri Lanka, Africa and the

Middle East. Taj Group of Hotels have a range of luxury hotels to budget hotels and

offer a supreme combination of warm Indian hospitality, world-class service and

modern luxury to the guests (www.tajhotels.com).

India’s premier and top hotel chain, the Taj Group has become a household

name today. A symbol of quality and elegance, the brand offers all the facilities and

services that go in the making of a grand hotel stay. The Taj Group of Hotels is a part

of Tata Group of Companies. The company made its foray in the Indian hospitality

industry in the year 1903, when the first Taj Hotel, called Taj Mahal Palace and

Tower was started by Jamsetji Nusserwanji Tata in Mumbai. The Taj Group of


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Hotels, a symbol of Indian hospitality has completed its century year in 2003

(www.tajhotels.com).

4.8 History of Taj Group of Hotels

After starting its first hotel i.e. The Taj Mahal Palace and Tower in Mumbai,

in 1903, the company then undertook major expansion of The Taj Mahal Palace and

Tower by constructing an adjacent tower block and increasing the number of rooms

from 225 to 565. After that the company started developing new hotels near tourist

destinations in different geographical areas. After that Taj Group of Hotels became

leading hotel chain in India. From the 1970s to the present day, the Taj Group has

played an important role in launching several of India's key tourist destinations with

the help of Government of India.

The Taj Group has started to convert former royal palaces and forts of India

into world class luxury hotels. These hotels are called heritage hotels. Most of the

palaces and forts of Rajasthan have been converted and named as Taj Lake Palace in

Udaipur, Rambagh Palace in Jaipur and Umaid Bhawan Palace in Jodhpur. In 1974,

the Taj Group started first international five star deluxe beach resort of India in Goa

and named as Fort Aguada Resort. The Taj Group has also expanded its business in

metropolitan areas and started five star deluxe hotel named as Taj Coromandel in

Chennai in 1974 and then Taj Mahal Hotel in Delhi in 1978 (www.tajhotels.com).

In 1980, Taj Group started its first international hotel, Taj Sheba Hotel in

Yemen and then opened Crown Plaza, James Court and 51 Buckingham Gate Luxury

Suites and Apartment in London.

In 1984, Taj Group launched Taj West End, Bangalore, Taj Connemara,

Chennai, with which Taj Group has made its entry in Bangalore. In 1989, Taj Group

started its five star deluxe hotel in Kolkata and named as Taj Bengal. By entering

Bengal, the Taj Group became the first hotel chain to have hotels in five metropolitan

cities of India. After the expansion of its luxury hotel chain in the major metropolitan

cities, the Taj Group expanded its business hotels division in the major metropolitans

and large secondary cities of India. During the 1990s, the Taj Group continued to

expand its geographic and market coverage and started developing wildlife lodges in

India. Taj Kerala Hotels and Resorts Limited was set up in the early 1990s along with


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the Kerala Tourism Development Corporation. In 1998, Taj Group opened the Taj

Exotica Bentota in Sri Lanka. After that Taj Exotica, Goa and Taj Hari Mahal in

Jodhpur were opened in 2002.

In 2000, Taj Group in association with GVK Reddy Group developed Taj

GVK Hotels and Resorts Limited and obtained a well-known position in the market of

Hyderabad, holding three hotels and a major share of the market. In 2001, Taj Group

took on the management contract of Taj Palace Hotel, Dubai and established its

market in Middle East region. Further, they launched The Taj Exotica Resort and Spa,

a luxury hotel in Maldives in July 2002 and won several international awards. The Taj

Group also obtained licenses to manage and operate two leisure hotels, that is Rawal-

Kot in Jaisalmer and Usha Kiran Palace in Gwalior in October 2002.

In September 2002, the Taj Group acquired an equity interest in the former

Regent Hotel in Bandra region, which gave the Taj Group to expand its hotels in

midtown and North part of Mumbai market. The hotel was named as Taj Lands End,

Mumbai. While in 2003, Taj Group celebrated the century year of the opening of its

flagship hotel, Taj Mahal Palace and Tower in Mumbai (113th Annual Report 2013-

14, The Indian Hotels Company Limited).

In 2004, Taj Group has launched its first luxury serviced apartment in

Mumbai. In the same year, they also launched the first of its "Value-for-Money"

hotels in Bangalore under the brand name of ‘Ginger’ which have 30 hotels in various

cities of India. In 2005, Taj Group acquired The Pierre, a renowned Hotel in New

York City on lease to enter the luxury end of the developed hotel markets

internationally. The Group entered into a management contract for Taj Exotica in

Palm Island Jumeirah in Dubai to expand its existing presence in the United Arab

Emirates.

The Group enhanced its position as an operator of converted palaces by

entering into a management contract for Umaid Bhawan Palace, Jodhpur in the state

of Rajasthan. The Taj Group has acquired “W” hotel in Sydney, Australia in 2006 and

renamed as “Blue Woolloomooloo Bay.” In order to expand its availability in the US

market, the Taj Group acquired in early 2007 Ritz Carlton in Boston and Taj Campton

Palace in San Francisco. Taj Group of hotels are located in US, Australia, Dubai,

Maldives, Malaysia, Sri Lanka, United Kingdom, South Africa, Bhutan and Zambia.


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In the year 2013-14, Taj Group continued its focus on consolidating past

commitments in terms of project completion, opening of new properties and growth

through management contracts in the domestic and international markets. The past

year witnessed opening of four new Gateway Hotels at Hubli, Chennai, Kolkata and

Raipur. The Taj Group also opened the Vivanta by Taj, Surajkund, in the year 2013

and also expanded Ginger footprint by opening three properties in Noida, Jaipur and

Chandigarh, respectively. These new openings have added a total inventory of over

1100 rooms to the Taj Group portfolio (113th Annual Report 2013-14, The Indian

Hotels Company Limited).

On March 29, 2015, Taj Group announced the opening of its highly

anticipated luxury hotel Taj Dubai, located in the prestigious Burj Khalifa downtown

area. Accommodation at Taj Dubai includes a total of 296 rooms which comprises Taj

Club Rooms, 16 Junior Suites and 15 Luxury Suites with panoramic views of Burj

Khalifa, dancing fountains and Dubai Mall. The hotel offers state of the art rooms

seamlessly blending contemporary elegance while paying homage to the local

environment (www.tajhotels.com).

On March 30, 2015, after a successful presence in the National Capital Region

for over three decades, Taj Group announced the launching of Vivanta by Taj -

Dwarka, New Delhi. This launch is a significant milestone as it is the 30th Vivanta by

Taj Hotel in the Taj portfolio and seventh hotel for the Taj Group in the National

Capital Region (www.tajhotels.com).

4.9 Company Wise list of Taj Hotels in India

Table 4.1

The Indian Hotels Company Limited

Hotels Name No. of Rooms

Taj Mahal Palace, Mumbai 560

Taj Lands End, Mumbai 493

Taj Wellington Mews, Mumbai 80

Taj Mahal Hotel, New Delhi 294

Taj Palace Hotel, New Delhi 403


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Taj Bengal, Kolkata 229

Taj West End, Bangalore 117

Taj Lake Palace Hotel, Udaipur 83

Taj Falaknuma Palace, Hyderabad 60

Taj Exotica, Goa 140

Vivanta by Taj - Aurangabad, 63

Vivanta by Taj - Connemara, Chennai 150

Vivanta by Taj - Fort Aguada, Goa 145

Vivanta by Taj - Holiday Village, Goa 142

Vivanta by Taj - Hari Mahal, Jodhpur 93

Vivanta by Taj - Whitefield, Bangalore 199

Vivanta by Taj - Yeshwantpur, Bangalore 327

Jai Mahal Palace, Jaipur 100

Usha Kiran Palace, Gwalior 40

Gateway, Bangalore 98

Gateway, Jaisalmer 32

Gateway, Calicut 74

Hotel Chandela, Khajuraho 90

Hotel Savoy, Ooty 40

Kuteeram, Bangalore 9

Umaid Bhawan Palace, Jodhpur 64

Rambagh Palace, Jaipur 79

Vivanta by Taj - Kovalam, Kerala 59

Vivanta by Taj - Panaji, Goa 170

Vivanta by Taj - Dal View, Srinagar 84

Gateway, Surat 204

Gateway, Vijaywada 108

Gateway, Vadodara 86

Gateway, Ahmedabad 91

Gateway, Gir Forest 28

SMS Hotel, Jaipur 27

Gateway, Ramgarh Lodge, Jaipur 14


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Gateway, Hubli 92

Gateway, Chennai 200

Gateway, Kolkata 197

Source: 113th Annual Report 2013-14, The Indian Hotels Company Limited.

Table 4.2

Subsidiary Companies: Roots Corporation Limited

Name of Hotels No. of Room

Ginger, Agartala 101

Ginger, Ahmedabad 93

Ginger, Bangalore, Whitefield 99

Ginger, Bangalore,Inner Ring Road 67

Ginger, Bhubaneshwar 101

Ginger, Chennai, IIT 85

Ginger, Chennai, Vadapalanai 79

Ginger, Faridabad 91

Ginger, Goa 137

Ginger, Guwahati 70

Ginger, Indore 95

Ginger, Jamshedpur 94

Ginger, Jaipur 103

Ginger, Mangalore 79

Ginger, Mysore 98

Ginger, Mumbai, Andheri East 116

Ginger, Nashik 95

Ginger, Noida 83

Ginger, New Delhi 108

Ginger, Pantnagar 98

Ginger, Puducherry 97

Ginger, Pune 100

Ginger, Pune Wakad 128

Ginger, Surat 100


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Ginger, Trivandrum 101

Ginger, Vivek Vihar, New Delhi 85

Ginger, Manesar 100

Ginger, Tirupur 98

Ginger, Chandigarh 102

Ginger, Vadodara 99

Source: 113th Annual Report 2013- 14, The Indian Hotels Company Limited.

Table 4.3

Piem Hotels Limited

Name of Hotels No. of Rooms

Vivanta by Taj - President, Mumbai 292

Vivanta by Taj - Blue Diamond, Pune 110

Vivanta by Taj - Gomti Nagar, Lucknow 110

Vivanta by Taj - M G Road, Bangalore 167

Gateway, Nashik 70

Gateway, Agra 100

United Hotels Limited

Vivanta by Taj - Ambassador, New Delhi

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4.9.1 Joint Venture Companies:

Table 4.4

Taj GVK Hotels & Resorts Limited

Name of Hotels No of Rooms

Taj Krishna, Hyderabad 260

Vivanta by Taj - Begumpet, Hyderabad 181

Taj Banjara, Hyderabad 122

Taj Deccan, Hyderabad 151

Taj Club House, Chennai 220

Taj Chandigarh, Chandigarh 149



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Table 4.5

Taj Kerala Hotels & Resorts Limited

Name of Hotels No of Rooms

Vivanta by Taj, Kumarakom, Kerala 28

Gateway, Ernakulam 108

Gateway, Varkala 30


Table 4.6

Taj Safaris Limited

Name of Hotels No. of Rooms

Mahua Kothi, Bandhavgarh 12

Banjaar Tola, Kanha 18

Pashan Garh, Panna 12

Baghvan, Pench 12

Source: 113th Annual Report 2013- 14, The Indian Hotels Company Limited.

4.10 Taj Group of Hotels at New Delhi

Taj Group have six hotels at New Delhi in different locations and ranging

from luxury hotels to budget hotels. These hotels belong to Indian Hotel Company

Limited, Roots Corporation Limited and United Hotels Limited. Each hotel differs

from others in terms of number of rooms and facilities.

4.10.1 Taj Palace Hotel

Positioned in the diplomatic district, Taj Palace Hotel is India's largest

conference venues, located eight kilometres from the Parliament House. It is located

at Sardar Patel Marg, diplomatic enclave in New Delhi. An elite hotel, Taj Palace is

known as the convention centre of New Delhi, with corporate meeting space ranging

from a conference room that accommodates private screenings to expansive facilities

that serve up to 700 delegates. The hotel also boasts a grand reception hall that holds


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1,000 attendees. Prepared to accept international conventions and seminars, this

property offers translation services in five languages (www.tajhotels.com).

4.10.1.1 Rooms and Suites

The hotel has 403 rooms, 41 of them are lavish suites including the signature

Tata Suite and Presidential Suite and recently renovated Taj Club Rooms, Luxury and

Deluxe rooms. With 40,000 square feet of superlative banquet and conference

facilities, Taj Palace is one of the New Delhi’s top luxury hotels.

4.10.1.2 Hotel Amenities

· 403 Guestrooms

· 3 Restaurants

· Outdoor pool

· Nightclub

· Breakfast available

· Internet in the lobby

· Health club

· Spa services

· Business centre

· Airport shuttle

· In-room childcare

· 24-hour front desk

4.10.1.3 Room Facilities

· Pool or city views

· Wifi services for resident guests (terms and conditions apply)

· Sony LCD TV and DVD player

· 2 bottles of mineral water

· Complimentary usage of the fitness centre and massage on payable basis

· Complimentary usage of swimming pool

· Daily housekeeping / turndown service

· Tea / coffee maker

· Forest essential bath amenities


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· Bathrobes and slippers

· Lighted make-up mirror, hair dryer and scale

· Suit, skirt and padded hangers

· Complimentary newspaper

· Dual line telephones with voicemail and data capabilities

· Minibar

· In-room safe

· Sewing kit

· 24-hour in-room dining

Source: (www.tajhotels.com)

4.10.2 The Taj Mahal Hotel

At the heart of New Delhi, lies the most distinguished address in India's

capital, that stands as a tribute to timeless hospitality and service. Central to The Taj

Mahal Hotel prominence is its old-world grace and charm, blended effortlessly with

contemporary comforts and amenities. In its unique blend of warmth and welcome

and assiduous attention to service, The Taj Mahal Hotel is a true ambassador of the

Taj hospitality experience (www.tajhotels.com).

4.10.2.1 Rooms and Suites

The Taj Mahal Hotel has 294 rooms including 27 suites that are luxuriously

appointed with latest in-room comforts. The hotel offers The Taj Club, Executive

Suites, Luxury Suites and the Grand Presidential Suite.


· Choice of pool view or city view

· Wifi services for resident guests (terms and conditions apply)

· Bottled mineral water provided

· Colour television with satellite programming

· Private bar

· In-room electronic safe

· Channel music

· Laundry services available


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· Writing desk with stationery

· Access to business centre and fitness centre

· Air conditioning controls

· 24-hour in-room dining

· Selection of complimentary newspapers

· Babysitting services available

Source: (www.tajhotels.com).

4.10.3 Vivanta by Taj - Ambassador

The Taj Group of Hotels continued with its branding strategy with the launch

of the Vivanta by Taj brand in September 2010. The launch witnessed the

introduction of 19 hotels within the portfolio of Taj Group of Hotels (hotel-rn.com).

Vivanta by Taj - Ambassador is a luxurious 4-star hotel conveniently located only 6.9

km from the centre of New Delhi, at Sujan Singh Park, New Delhi (Norohna, 2013).

It is an INTACH listed heritage building, built in 1945 by the colonial architect

Walter George. It is a poetic medley of British and Art Deco style

(www.vivantabytaj.com). There are 88 well-appointed, air-conditioned rooms at

Vivanta by Taj - Ambassador New Delhi.


The guests staying in this hotel enjoys the room facilities like voice mail,

clock radio, climate control, coffee/tea maker, in-room safe and multi-line phone.

Desk and ceiling fans, satellite television service and internet facilities are available in

the rooms. Extra towels and bedding items can also be found in the rooms (hotel-

rn.com).

4.10.3.2 Hotel Facilities

Vivanta by Taj - Ambassador, New Delhi has a restaurant and a cafeteria.

Breakfast is provided on extra payment. Front office desk is opened 24 hours. The

public area of hotel is comfortable and air conditioned. Gift shop and hair salon

facilities are available in the hotel. Swimming pool makes the hotel more attractive.

Vivanta by Taj - Ambassador, New Delhi can make use of a well-equipped business


119

centre and conference/meeting rooms. High speed internet connection is also

available.

4.10.4 Vivanta by Taj - Dwarka

On March 30, 2015 the Taj Group launched the Vivanta by Taj - Dwarka,

New Delhi. This is the 30th hotel of Vivanta by Taj and seventh hotel of Taj Group of

Hotels in National Capital Region. It is located at Sector 21 Metro station, Dwarka,

New Delhi. The hotel is well connected to the heart of the city. A short 15 minutes

drive westwards leads to the domestic and international airport terminals

(www.vivantabytaj.com).

Commenting on the opening of this much awaited hotel, Mr. Veer Vijay

Singh, Chief Operating Officer, Vivanta by Taj Hotels & Resorts, said, “The Indian

hospitality industry is at an interesting stage where demand is growing across the

country. Vivanta by Taj is well poised to capture this growing demand with its broad

set of offerings and its culture of service excellence. We are happy to bring the

Vivanta by Taj hospitality to these new emerging hot spots like Dwarka." While Mr.

Anil Malhotra, General Manager, Vivanta by Taj - Dwarka, New Delhi said that "We

are eagerly looking forward to welcoming guests to Vivanta by Taj - Dwarka, New

Delhi. The hotel is an ideal option for both business and leisure travellers as well as

guests looking for memorable weddings and successful conferences."

4.10.4.1 Guestrooms

Vivanta by Taj - Dwarka, New Delhi has 250 spacious rooms including 17

uniquely designed suites and a luxurious Presidential Nirvana suite. The rooms are

designed to look like modern day abodes with jagged angles in the roof and walls,

complemented with geometric patterns on the carpet. Vivanta by Taj - Dwarka, New

Delhi offers wide range of authentic cuisines ranging from Indian and Italian to Sushi

bar.

4.10.4.2 Meetings and Events

Vivanta by Taj - Dwarka, New Delhi offers more than 17000 sq. ft. of flexible

meeting and event facilities. The nine meeting rooms accommodate anything from

discrete board meetings and small, intimate social occasions to elegant cocktail


120

receptions, sophisticated weddings and stylish conferences. The high tech video-

conferencing facilities, integrated digital audio systems and soundproofing ensure that

every conference is special (www.tajhotels.com).

4.10.5 Ginger Hotels

Roots Corporation Limited (RCL), the wholly-owned subsidiary of Indian

Hotels Company Limited (IHCL) operates the Ginger Chain of Hotels. A leading

name in branded budget hotels, Ginger Hotels is an excellent choice for leisure and

business travellers for the unique blend of comfort and efficiency that it provides.

Ginger is India’s only branded budget chain with a national footprint. Launched in

2004 and having 28 hotels at different locations, Roots Corporation intends to

increase its brand. It is only branded budget chain of hotels in India presence in

metros, large cities and popular holiday and pilgrimage spots (Norohna, 2013).

4.10.5.1 Ginger Hotel: East Delhi

It is located close to Anand Vihar railway station, Ginger East Delhi provides

the comfort, safest and best class facilities to the guests staying in the hotel

(www.gingerhotels.com).

4.10.5.1.1 Hotel Facilities

The hotel has 85 stylishly designed smart space rooms in the single and twin

and electronic door locks, 24/7 security, CCTV monitoring and secured parking. The

other features of hotel are a well-equipped gymnasium, laundry services, in-room

dining and high speed internet. While guest may enjoy breakfast, lunch and dinner, at

the multi-cuisine restaurant that is open between 7 am to 11 pm, guests can also make

use of the in-room dining services. Medical facilities and meeting/conference room

are also available in the hotel.

4.10.5.2 Ginger Hotel: Delhi (Rail Yatri Niwas - IRCTC)

Ginger IRCTC provides facilities and comfort at nominal rate. It promises a

warm ambience with all the necessary features offering guests a pleasant and

memorable stay.


121

4.10.5.2.1 Hotel Facilities

The hotel is having 108 elegantly designed smart space rooms. The room are

categories as standard, twin, family and dormitory rooms. The other features of hotel

are a well-equipped gymnasium, laundry services, in-room dining and high speed

internet. The Square Meal Restaurant serves a wholesome fare of Indian and Chinese

cuisine. Guests can also use the in-room dining services (www.gingerhotels.com).

4.11 Employee Engagement at Taj Group of Hotels

Employee engagement is very important for the survival of Indian hospitality

industry and without engagement better hospitality cannot be provided at any cost. If

the employees working in hospitality sector are engaged towards their job, definitely

they will provide better hospitality to the guests. Taj Group is most preferred brand

employer in hospitality industry of India. The employees of Taj Group of Hotels are

highly satisfied and engaged than any other hotel chains in India. According to

Shrinivas (2013) Senior Vice-President of human resources at Taj Hotels, “78% of

our employees are in touch with customers 24/7, 365 days in a year, thinking on their

feet, delivering a wide variety of services, anticipating and understanding the needs

and requirements of guests and customers.” The guests who are coming in the hotels

are not only satisfied but also delighted and extremely happy and feel like coming

back and using Taj Hotel services again.

Employee engagement is a central business agenda of Taj Group of Hotels and

there is clear correlation between highly engaged employees and customer satisfaction

scores. Engagement of employees and delivery of services to the guests gives a strong

enough reason for customers to remain with Taj Group of Hotels and reject the offers

of competitors. The Taj Group of Hotels hires the suitable candidate and provides

training so that they should understand the needs and requirements of the guests and

provide services accordingly. Shetty (2010) has explained that the hospitality sector is

one of the fastest growing sectors of Indian economy and Taj Group of Hotels is the

oldest hotel chain in India. This brand of hotel provides every facilities to its

employees, that is why they are actively engaged towards their jobs.

Koshal (2012) has highlighted that Taj Group of Hotels has strong human

resource policies like sound recruitment, well planned training programmes, emphasis


122

on practical application than the theoretical knowledge and healthy working

environment. Hence these policies make the employees engaged towards their

services and reduce the problem of turnover of the employees. Employees of Taj

Group of Hotels are highly satisfied with the plans and policies of hotels than any

other hotel chain in India. Such a strong human resource policy is hard to find in any

other organization. Due to strong human resource policies, the employees are well

motivated towards their job and every employee wants to join and be retained in this

international brand. The Taj Group of Hotels has the most productive and engaged

workforce in the world. Due to high level of employee engagement, Taj Group of

Hotels has been awarded 2013-14, Gallup Great Workplace Award (113th Annual

Report 2013-14, The Indian Hotels Company Limited).

4.12 Human Resource Policies at Taj Group of Hotels

The studies on human resource policies of Taj Group of Hotels revealed that

this group has sound recruitment policies, well planned training programmes and

emphasis on practical application than the theoretical knowledge. Taj Group considers

every employee as an important member of the organization. Its aims is to acquire,

retain and reward the talented people from the industry (Koshal, 2012). The Human

resource practices followed by the Taj Group of Hotels have a great impact on

employee engagement and organizational performance. Employee retention rate of

Taj Group of Hotels is highest amongst all its competitors.

Figure 4.2. Role of Human Resource Policy on Organization Source: Based on literature review Below are the distinguished policies of Taj Group of Hotels:


123

4.12.1 Hiring Policies

The candidates are gauged on their value system and trained for eighteen

months which is six months more than the industry standard. The hiring process

particularly looks for employees on their values and whether the employee would be

able to adapt to the culture of the organization. It is believed that the employees can

be trained to be better chefs or waiters, but they cannot be taught to be good

individuals. So the organization expects an individual to possess good values to

become a part of the Taj family (Koshal, 2012).

4.12.2 Leadership Skills

Apart from the normal training sessions to inculcate leadership skills in the

employees, each employee is given an authority to take the decisions pertaining to his

work and this empowers them and helps in building a leader in all. This was primarily

the reason why each one of them could spontaneously take the decision during 26/11

terrorist attack, when none of them had been trained for such a situation.

4.12.3 Strong Talent Management

To upgrade the “Taj standards” to an international level, the company ensures

that the employees are trained not just in the area of expertise but all the related

functions also, it keeps track of their performance for their future career planning.

This helps to embed belongingness amongst the workforce as they understand that

their careers are safe with their employers (Koshal, 2012).

4.12.4 Individualism of Human Resource Department

Unlike many organizations, who consider human resource as a support

function, Taj amalgamates the human resource practices with all the other activities

taking place within it. This helps to make human resource as an integral part of the

organization. This department make the plans and policies and these are implemented

by the employees spread across all the departments.

4.12.5 360 Degree Feedback System

360 degree feedback is a system where an employee receives feedback from

all the people around him/her whom he/she has interacted with in the course of


124

executing job responsibilities. The feedback is solicited from peers, teammates,

subordinates, direct reports and even external parties like suppliers and vendors. This

feedback may be used as an input to the performance appraisal process

(www.mbaskool.com).

It may also be used to identify competency gaps to administer relevant training

to the employees. This 360 degree feedback/assessment is also known as a multi-rate

or multi source feedback because feedback about the employee is gathered from

multiple sources and not just the reporting manager as in the case of a traditional

performance appraisal system.

Figure 4.3. 360 Degree Feedback System

Source: http://www.mbaskool.com/business-concepts/human-resources-hr-

terms/1758-360-degree-assessment-or-feedback.html

4.13 Training Programmes Organized by Taj Group of Hotels

4.13.1 Taj Hospitality Training Programme

The Taj Hospitality Training Programme has been designed to train the

trainees to the level of supervisor in any of their operational department. This


125

programme includes induction, theory classes, on the job training, evaluation,

appraisals and assessment (CR Patna, 2011).

4.13.2 Taj Management Training Programme (Food Production)

The Taj Management Training Programme, food production, is the premier

hospitality management training programme for culinary education in the country.

This training focuses on culinary skills and the managerial abilities to run kitchen

operations.

4.13.3 Housekeeping Executive Development Programme

This is a one year intensive housekeeping training programme, which prepares

trainee for a career in housekeeping and accommodation in the Taj Group. During the

first 6 months of this programme, the management trainees undergoes technical

training in classroom accompanied by on the job exposure. The next 6 months include

on the job training in a Taj Hotel as an understudy to a mentoring executive

housekeeper (CR Patna, 2011).

4.14 Summary

The present chapter has been drafted to describe the present scenario of hotel

industry in India and particularly Taj Group of Hotels, New Delhi. The tourism and

hospitality industry is one of the largest source of foreign exchange earning in India

and also provides employment to all categories of peoples such as highly skilled, semi

skilled and unskilled employees. Taj Group is one of Asia's largest and oldest group

of hotels and having 128 hotels in 61 locations in India and 16 international hotels in

the Maldives, Malaysia, UK, USA, Bhutan, Sri Lanka, Africa and Middle East. Taj

Group has a range of luxury hotels to budget hotels and offers a supreme combination

of warm Indian hospitality, world class service and modern luxury to the guests. The

company made its foray in the Indian hospitality industry in the year 1903, when the

first Taj Hotel, called Taj Mahal Palace and Tower was opened by Jamsetji

Nusserwanji Tata in Mumbai. The Taj Group of Hotels, a symbol of Indian hospitality

has completed its century year in 2003. The employees of Taj Group of Hotels are

highly satisfied and engaged than any other hotel groups in India. It has strong human

resource policies like sound recruitment, well planned training programmes, emphasis

on practical application than the theoretical knowledge and healthy working


126

environment. Hence these policies make the employees engaged towards their

services and reduce the problem of turnover of the employees.

The discussion may be concluded that Taj Group of Hotels have strong human

resource policy and well planned organizational structure. Each and every employee

of the organization is considered as a member of Taj family. They actively participate

in decision making process and have the authority to put his/her views and

suggestions before the top management. This group acquires, retains and rewards the

talented people from their hotel on their extraordinary performance. Promotional

activities in Taj Group of Hotels are fair and strictly according to seniority basis.

These are valuable activities that differentiate the Taj Group of Hotels from the other

groups of hotels in India. The employees of the Taj Group of Hotels are highly

satisfied with the plans and policies of the organization. The satisfaction with the

plans and policies leads to engagement and motivation of the employees towards their

job and provides better services to the customers. Hence image of the organization

and organizational performance are improved.


127

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