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    BY

    Aditya Maheshwari

    Abhinav Tyagi

    Aditi Khanna

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    India's hotel industry is experiencing an unprecedented boom, driven byincreasing numbers of business and tourist arrivals.

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    What is Hotel Industry?

    A place Where Travelers Can Pay for Lodging and Meals and

    Other Services on a short-term basis.

    Objectives of Hotel Industry Customer Satisfaction

    Health

    Safety Environment To Promote Tourism

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    Some figures : Hotel Imperial New Delhi: 99.57 % occupancy. Hotel Trident Hilton,Gurgaon

    (suburban Delhi): 98.3 % occupancy. Indian hotels are witnessingmindblowing occupancy rates.

    Increase in average room rent for the entire hotel industry over the last year:35 %.

    The boom has attracted several global players, ranging from Starwood andMariott to Four Seasons and ShangriLa. The largest hotel company in theworld,French chain Accor, has entered India and is now devising aggressiveplans for expansion in the market. Several others are racing to increase theirpresence in India, including the Marriott group.

    Currently Marriott has over 1,000 rooms spread across four properties inMumbai and Goa.

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    The established hotel chains

    A number of global players arealready well established in India.These include Hilton, Shangri-La,Radisson, Mariott, Meridien,Sheraton, Hyatt, Holiday Inn,InterContinental and Crowne Plaza.

    Investments

    Now besides hotel companies, eventhe investment firms and privateequity companies are beginning toget excited about India. BerggruenHoldings India, a subsidiary of NewYork-based investment companyBerggruen Holdings,has announcedthat it is seed-funding a non-luxury

    hotel chain in India. Private equity firm Warburg Pincus

    has picked up around 27 % stake inDelhi-based mid-price hotelchain,Lemon Tree, for$ 60.2million.

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    Tourist boom

    The tourism traffic has been growing between20-28 % every year for the last four years andthis rate of growth is expected to continue forthe next few years.

    The constant boom and the resultant demand-supply mismatch has led to sharp increases inthe average room rates and thus pushing up

    revenues of industry players (hotels, touroperators, airlines, shipping lines, etc)

    The tourism sector is expected to perform verywell in futureand the industry offers aninteresting investment opportunity for long-term investors.

    Most of the five-star hotels are seeing morethan 80 % occupancy and some of the lesser-known five-star hotels are overbooked.

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    Hospitality experts believe that the Indian hotel industry will witness higherthan usual growth in the coming peak season. The good times for the Indianhospitality industry are here to stay, with top-end hotels experiencing highroom occupancy rates even in the lean season.

    Thelean season has been exceptionally good for us. Our room occupancy ratehas been around 89 per cent and we are looking at over 95 per cent occupancyfor the period September to December,says Kapil Chopra, general manager,Trident Hilton, Gurgaon.

    There was an increase of15 % in the number of international tourist arrivals in

    India and 14 % in the foreign exchange earnings in the first quarter of 2011 ascompared to the same period last year.

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    The world's leading hotel brands -joining the battle The country has been flooded by some

    of the world's leading hotel brands. Newbrands such as Amanda, Satinwoods,Banana Tree, Hampton Inns, ScandiumBy Hilt and Mandarin Oriental areplanning to enter the Indian hospitalityindustry in joint ventures with domestichotel majors.

    Unitech, which is setting up two hotels inDelhi,has already formed a joint venturewith Marriott International to run itsthree new hotels in India, which havealready started its operations .The three new hotels will be located in

    Kolkata, Gurgaon and Noida. We areinvesting around 700 crore rupees to setup these hotels, says Unitech managingdirector Sanjay Chandra.

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    The movement is not one-way. Cash-rich Indianhotel companies have been acquiring propertiesoverseas. The Tata group's Indian HotelsCompany is in the process of acquiring Boston-based luxury hotel the Ritz-Carlton for around$170 million dollars (around 765 crore rupees).Due diligence is likely to be completed soon. Thehotel will be acquired through the companysNew York-based subsidiary, says RK KrishnaKumar, vice chairman of Indian Hotels.

    Indian Hotels is looking to strengthen itspresence in the United States with this

    acquisition. It has also set up properties in theMiddle East, the United Kingdom and Africa. Itsfierce rival, Oberoi group, has also been activeoverseas with properties in Saudi Arabia,Mauritius, Egypt, Australia and Indonesia, andelsewhere.

    With growing competition, hotels are under

    tremendous pressure to generate new lines ofrevenue with creative approaches. With newerplayers poised to enter the market one of the keyfactors that will drive future demand is alternaterevenue streams.

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    Many business hotels in India areintegrating full-fledged spas ontheir premises, originally a mainstay of resort properties.

    However, in order to attract morevisitors, India still needs todramatically increase the numberof rooms available.

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    1. Shortage of skilled employees2. Retaining quality workforce3. Shortage of rooms

    4. Intense competition5. Customer expectations

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    According to Size Small Hotels (150 rooms)

    Medium Hotels (up to 299 rooms)

    Large Hotels (up to 600 rooms)

    Extra Large Hotels (above 600 rooms)

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    According to Star One Star (*) Two Star (**)

    Three Star (***) Four Star (****) Five Star (*****)

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    STAR RATED

    HOTELS

    5 DELUXE & 5: LUXURY AT HIGH

    PRICE , 27 % GOVT.APPROVED ROOMS

    FORMS 30% OFINDUSTRY

    BUILT OVER

    18000 sq.m AREA

    2 & 1 :AROUND TOURIST

    SPOT, PREFERRED

    BY DOMESTIC

    TOURIST

    4 & 3 :FOR MIDDLE LEVEL

    BUSINESS

    EXECUTIVES/LEISURE

    TRAVELLERS

    Eg : ITC,TAJ GROUP,

    OBEROI GROUP,

    ITDC

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    SPECIALLY EQUIPED WITH CONFERENCE

    ROOMS, SEMINAR HALLS, INTERNET

    FACILITIES ETC. TO SUIT THE CORPORATE

    GUESTS.

    Eg: INTER-CONTINENTAL, CROWNE PLAZA

    BUSINESS

    HOTELS

    AIRPORT

    HOTELS

    LOCATED NEAR AIRPORTS AND SUITABLE

    FOR SHORT STAY TRAVELLERS.

    ARE FOUND NEAR ALL MAJOR CITY

    AIRPORTS.

    HONEYMOON

    HOTELS

    MOSTLY LOCATED AT HILL STATIONS AND

    SPECIALLY FASCILITATED TO SUIT THE

    COMFORTS OF HONEYMOON COUPLES.

    Eg. HOTEL WOODVILLE PALACE, CARLTON

    HOTEL, HOTEL HONEYMOON INN ETC.

    FACILITY HOTELS

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    3 STAR HOTELS FORMAL AND SPACIOUS RECEPTION AREA AND LOUNGE

    THEIR RESTUARANTS CATER TO NON- RESIDENTS GUESTSTOO

    EN-SUITE BATHS WITH GOOD STANDARD AND QUALITY OFEQUIPMENTS

    COMFORTABLE STAY TARGETED

    4 STAR HOTELS HIGH QUALITY FURNISHING, DCOR, AND EQUIPMENTS

    HIGH STAFF TO GUEST RATIO FOR BETTER SERVICES

    SERIOUS APPROACH TOWARDS CUISINES AND VARIETY

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    5 STAR HOTELS THE ENTIRE HOTEL IS SPACIOUS AND LUXURIOUS

    EXQUISITE CUISINES THAT CATER TO TASTE BUDS FROM ALL OVERTHE WORLD

    SERVICES ARE MORE, FLAWLESS AND PERSONAL ATTENTION TO THE

    GUESTS NEEDSSOME UNIQUE SERVICES PROVIDED IN THE 5 STAR HOTELS

    BUTLERS

    CHAUFFER DRIVEN LUXURY CARS

    PILLOW MENU CUSTOMISED SERVICES IN THE IN-HOUSE SPA AND SALOON

    42 PLASMA TV, INTERNET, FAX, LAPTOPS ON RENT AND MUCHMORE

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    Product :- Hotels stay innovative in the peripheralservices. Price :- The diverse nature and character of dishes,

    involvement of cost and spending power of

    customers. Place :- Location of the hotel is the most important

    business decision for the hotel.

    Promotion :- Advertisement, publicity, salespromotion, personal selling, word-of-mouthpromotion and telemarketing are the componentsof a hotels marketing strategy.

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    People:- The hotel management shouldtrain its people regularly, especially thefront line professionals.

    Physical Evidence:- Lobby- It being thefirst & the last part of the hotel that theguest sees, thus it should be welldesigned, also to ensure that the customerreturns again the room should becomfortable and should have made his stayhassle free.

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    The Indian Hotels Company (IHC) is theparent company of Taj Hotels Resorts andPalaces.

    It was founded by Jamshetji N. Tata onDecember16, 1903.

    Currently the Taj Hotels Resorts and Palacescomprises 76 hotels, 7 palaces at 52

    locations in 12 countries and employ over13000 people.

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    It provides exciting activities ranging from

    sports, culture, environment, adventure,music, and entertainment.

    The Taj Business Hotels provide the fineststandards of hospitality, which helps the

    business trips to be productive. They offer well-appointed rooms,

    telecommunication facilities, efficient service,specialty restaurants and lively bars, well-equipped business centres, and otherconference facilities

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    THE TAJ GROUP OF HOTELSSEGMENTATION

    TAJ LUXURY

    HOTELS

    TAJ PALACE,

    TAJ MAHAL,

    TAJ BENGAL,

    TAJ WEST END

    OFFER FINEST

    STANDARD OF

    HOSPITALITY &

    SERVICE

    TAJ BUSINESS

    HOTELS:TAJ PRESIDENT,

    TAJ RESIDENCY,

    TAJ CONNEMARA,

    TAJ BLUE

    DIAMOND

    OFFER

    MULTICUISINE

    RESTAURANTS &

    BEST BUSINESS

    FASCILITIES

    TAJ LEISURE

    HOTELS:

    TAJ BEACH

    RESORT,

    TAJ CULTURAL

    CENTRE,

    TAJ GARDEN

    RETREATS

    LOCATED AT

    BEACH RESORTS,

    PALACES, PILGRIM

    CENTRES ETC.

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    The Taj Group of Hotels commits itself tothe overall improvement of the ecologicalenvironment, which we are all a part of.

    We recognize that we are not owners but

    caretakers of the Planet and owe it to ourchildren and future generations ofhumankind.

    It is our endeavor not only to conserve and

    protect but also to renew and regeneratethe environment in which we live andoperate

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    ProductsCore Services :- Room

    Restaurant and Bar

    Meeting room Banquet facility

    Amenities

    Services

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    Courier Child care, Laundry, Pet Taj Sats Air Catering Ltd. Wi-Fi Access

    Express check -in and out Taj Air and Taj Yachts Babysitting Wake-up call

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    Barber shop, Boutiques,Florist

    Currency exchange In room telephone service Front desk 24 hour Gift shop

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    Taj hotel has set its price of the room on thebasis of Business, Leisure and Luxury class.

    RateRoom Tariff of all TAJ Palaces, Resorts,And Hotels.pdf

    http://localhost/var/www/apps/conversion/tmp/scratch_3/NewTariff.pdfhttp://localhost/var/www/apps/conversion/tmp/scratch_3/NewTariff.pdfhttp://localhost/var/www/apps/conversion/tmp/scratch_3/NewTariff.pdfhttp://localhost/var/www/apps/conversion/tmp/scratch_3/NewTariff.pdf
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    Location of the hotel is the most important business decisionfor the hotel.

    Present in metro cities in India Global presence (Maldives, London, Dubai, Cape Town and

    many other countries)

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    PROMOTION STRATEGYPromotional schemes are carried on regularly the hotel has many

    loyalty programe,clubes,membership,previlage etc some of them are1. Taj Inner Circle2. Taj advantage plus3. TAPP MeTaj also offer Taj surprisesincluding weekend savers,

    value vouchers, book earlyget more.

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    Major service encounter that extremelydelighted or disappointed are:

    1.Check in.2.

    Bell person carrying luggage to the room.3.Food.4.Wake up call5.Check out.

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    Skilled person Professional person Personal Agents

    Technological person Travel agents

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    The hotel has many competitors1. The Oberai towers.2. The Leela.3.

    ITC Hotels.4. Le Meridian.

    Acquisition - hotel blue diamond, pune.

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    Amanresorts, Alwar- Best Desert Retreat Oberoi Udaivilas, Udaipur- Best Place to Feel Like Royalty Taj Mahal Palace, Mumbai- Best Dining Oberoi Rajvilas, Jaipur- Best Tent Accommodations Oberoi Amarvials, Agra- Best Views of The Taj Mahal Taj Lake Palace, Udaipur- Best Place For Romance The Four Seasons, Mumbai- Best Car Services The Imperial, New Delhi- Best Common Spaces The Leela Palace, Bangalore- Best Business Hotel

    Devi Garh, Udaipur- Lovable Design

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    STRENGTHS Faster GDP growth Industrialization. Natural heritage India as a global player

    WEAKNESS lake of connectivity. Lake of publicity. Hectic rules Influence of politicians Marketing gap.

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    OPPORTUNITIES Health tourism. Strong in cultural and nature aspects. Commercialization of sports and games. FDI policy. Mismatch of supply and demand.THREATS Poor domestic tourism infra structure Political conditions Terrorism Increase in pollution Entry of new competitors

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    ENJOY THE STAY