Indepth Final 1IN Katha

7/30/2019 Indepth Final 1IN Katha

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INDEPTH STUDY OF HOTEL INDUSTRY 2012

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Objective of the study.

1) To know the hotel industry in India

2) To study the innovation in hotel industry.

3) To know about the services which the different hotels provide.

4) To know about the national perspective of hotel industry.

5) To know about the global perspective of hotel industry.


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NATURE AND SCOPE OF THE STUDY

1)The in-depth study on hotel industry is helpful to understand the role of this industry in

Indian economy.

2) Hotel industry plays important role in service industry and it is one of the major

contributors to Indian economy.

3) The study on hotel industry will explore the various hotel worldwide and the service which

they provide, also the structure of the industry.


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LITERATURE REVIEW

Introduction.According to the British laws a hotel is a place where a bonafied traveler can

receive food and shelter provided he is in a position to for it and is in a fit condition to

receive.

Hotels have a very long history, but not as we know today, way back in the 6th century BCwhen the first inn in and around the city of London began to develop. The first catered to

travelers and provided them with a mere roof to stay under. This condition of the inns

prevailed for a long time, until the industrial revolution in England, which brought about new

ideas and progress in the business at inn keeping.

The invention of the steam engine made traveling even more prominent. Which had to more

and more people traveling not only for business but also for leisure reasons. This lead to the

actual development of the hotel industry as we know it today.

Hotel today not only cater to the basic needs of the guest like food and shelter provide much

more than that, like personalized services etc.

Hotels today are a Home away from home.


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GLOBAL PERSPECTIVE

The current and future prospects of growth in the worldwide hotel industry. As a whole, the

industry is looking pretty bright in many parts of the world. There are some areas of the globe

that are expected to do very well, while other places will struggle to achieve positive growth.

A Better Economy Means Greater Demand for Lodging.

Growth rates depend on both current economic conditions and how well or poorly theeconomy is expected to perform in the future. While it is quite clear that Europe will be

dealing with deeply troubling economic issues for years and years, some countries will fare

better than others. China is emerging as a more important player in both domestic and

international travel and tourism. The United States, the most important market for hotels, has

bounced back from 2010 lows and is expenditure.

What Do Hotel Managers and Hotel Owners Think?

Trip Advisor, the worlds largest travel site, conducted a global survey of 9,441 hotel and

lodging facility owners and managers from December 21, 2011-January 4, 2012. The data

gathered from these insiders gave some valuable insight into the growth prospects of the hotel

and hospitality industry. The respondents gave answers comparing the year 2011 to what they

expected for 2012.

On the economy, 38% thought it would improve, 32% said it would remain

unchanged and 30% believed it would get worse.

On their hotels performance, 58% thought 2012 would be more profitable, 30%

thought profits would be about the same and 12% believed it would decline.

On direct bookings, 62% were looking for an increase, 32% expected no change and

only 7% believed that bookings would drop.


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Adding room inventory was not likely according to 83% of the respondents. Building new

properties or acquiring existing ones was not part of their 2012 plans.

Global Performance by RegionMay 2011 to May 2012 Comparison.

STR Global, a leading provider of key performance statistics for the hotel industry, defines

four key regions of the world as Asia Pacific, Americas, Europe and Middle East/Africa.

Following are the occupancy percentage, ADR and Rev PAR statistics by region.

All dollar amounts are expressed in US dollars. riencing solid growth.Occupancy Percentage

Rooms sold divided by rooms available

ADRRoom revenue divided by rooms sold

RevPARRoom revenue divided by rooms available

Asia Pacific

Occupancy Percentage: 64% (2011)65.5% (2012)

ADR: $134.56 (2011)$135.85 (2012)

RevPAR: $86.12 (2011)$88.94 (2012)

The region, which includes Asia, Australia and Oceania, added very little new supply of

hotels and guest rooms over this period. Growth came from higher demand by the traveling

public. In basic economic terms, a limited supply and a greater demand resulted in a higher

occupancy rate and a higher average daily room rate which led to higher revenue per

available room. According to the Global Business Travel Association, Chinese Business

Travel spending is predicted to increase 17% ($202 billion) in 2012 and another 25% ($245

billion) more in 2013. IHG has launched a new brand called Hualuxe Hotels which will add

some 170 hotel and 55,000 additional guest rooms to China by the year 2014.


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America

Occupancy Percentage: 61.4% (2011)63.4% (2012)

ADR: $104.38 (2011)$107.64 (2012)

RevPAR: $64.04 (2011)$68.30 (2012)

The region includes North America, the Caribbean, Central and South America. Boston and

Los Angeles did particularly well with the City of Angels occupancy rate up 5.8% to 75%

and a 10.8% increase in RevPAR to $94.53. Beantown had an ADR of $171.87 and an 11.6%

increase in RevPAR. On the downside, Panama City, Panama occupancy rates dropped

11.6% to 48.1% and their RevPAR rate dropped 19.4% to $59.33. Sao Paulo, Brazil was

occupancy rates declined 11.5% to 63.9% and their RevPAR also fell by 16.7% to $90.88.

Europe


ADR: $149.19 (2011)$134.93 (2012)

RevPAR: $106.27 (2011)$95.11 (2012)

Europe as a whole has not done as well in May year-over-year performance. There is a lower

occupancy rate, a lower room rate and less revenue per available room. The primary reason is

the terrible economy in much of Europe. While Russia has bucked the trend and is actually

showing good growth, Greece saw their hotel occupancy rate drop 25.7% to 56.1%


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Middle East/Africa


ADR: $148.68 (2011)$146.32 (2012)

RevPAR: $79.30 (2011)$88.39 (2012)

Both occupancy rates and RevPAR increased by more than 10%, while the average daily

room rate declined slightly.

This was due in large part to the increase in tourism to areas that had been in political turmoil

in 2011. While the Arab Spring movement is still going on, danger for tourist travel has

declined and key regions are returning to their pre-revolution popularity as desirable tourist

destinations. Egypt has increased their occupancy rates by more than 40% and their RevPAR

by almost 35%. South Africa the United Arab Emirates (Dubai) and Saudi Arabia are also

doing nicely. The average daily room rate has skewed a bit lower. This can be attributed to

concentrated efforts by area tourist spots negatively impacted by the recent political proteststo entice travelers to come back and take another look at their new and improved country.


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The Future Expansion Plans of Three Major Hotel Groups

By taking a look at the number of new properties and guest rooms that are scheduled to be

built or acquired by some of the worlds biggest hoteliers, it shows the expected increase in

demand and growth of the hotel industry. Following are the current inventory of hotels and

rooms and those under development (in the pipeline) for the near future.

IHG (Intercontinental Hotel Group) currently has 4506 worldwide hotels and 661,159

rooms with 1098 more hotels in the pipeline.

Hilton Worldwide has 3,866 hotels and 636,931 rooms with another 906 hotels and 156,659

rooms in the pipeline.

Accor Hotels have 530,000 rooms and 4,426 hotels in current inventory and plans to

develop 609 hotels which will add 104,000 more guest rooms. By the end of 2012, they

expect 40,000 of those rooms will be open.


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Hotel Industry in India

Hotel Industry in India has witnessed tremendous boom in recent years. Hotel Industry is

inextricably linked to the tourism industry and the growth in the Indian tourism industry has

fuelled the growth of Indian hotel industry. The thriving economy and increased business

opportunities in India have acted as a boon for Indian hotel industry. The arrival of low cost

airlines and the associated price wars have given domestic tourists a host of options. The

'Incredible India' destination campaign and the recently launched 'Atithi Devo Bhavah'

(ADB) campaign have also helped in the growth of domestic and international tourism and

consequently the hotel industry.

In recent years government has taken several steps to boost travel & tourism which have

benefited hotel industry in India. These include the abolishment of the inland air travel tax of

15%; reduction in excise duty on aviation turbine fuel to 8%; and removal of a number of

restrictions on outbound chartered flights, including those relating to frequency and size of

aircraft. The government's recent decision to treat convention centres as part of core

infrastructure, allowing the government to provide critical funding for the large capital

investment that may be required has also fuelled the demand for hotel rooms.

The opening up of the aviation industry in India has exciting opportunities for hotel industry

as it relies on airlines to transport 80% of international arrivals. The government's decision to

substantially upgrade 28 regional airports in smaller towns and privatization & expansion of

Delhi and Mumbai airport will improve the business prospects of hotel industry in India.

Substantial investments in tourism infrastructure are essential for Indian hotel industry to

achieve its potential.

The upgrading of national highways connecting various parts of India has opened new

avenues for the development of budget hotels in India. Taking advantage of this opportunity

Tata group and another hotel chain called 'Homotel' have entered this business segment.


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SWOT ANALYSIS

According to recent estimates of the World Travel & Tourism Council, Indian tourism

demand will grow at 8.8% over the next ten years, which would place the country as the

second most rapidly growing tourism market in the world. With the Indian hotel industry

capturing the attention of the world, let us understand its strengths, weaknesses, opportunities

and threats.

StrengthsIndia's rich culture heritage: With a historical backdrop of 5,000 years, India is one big

package of culture and legend that never fails to captivate the imagination of the visitor.

Along with endless natural splendors like the mighty Himalayas, the vast Indo Gangetic

Plains, lush tropical jungles and a long coastline. A visit to the country is a changing

spectacle of religions, customs, festivals, sights and sounds.

Demandsupply gap: Indian hotel industry is currently facing a mismatch between thedemand and supply of rooms leading to higher room rates and occupancy levels. With 95,000

odd rooms in the country, the size of the hotel industry represents an abysmal figure for

India's size and growth prospects. Though new capacities are expected to come in the next

five years demand will outpace supply in the short to medium term. Over the last 24 months,

major cities in the country have witnessed impressive growth in average room rates, due to

strong demand and not much addition to supply.

Government support: Till a few years ago, the Indian government had a total apathy

towards promotion of tourism. In fact, the industry did not find a place in the government's

fund allocation. Things have, however, witnessed a change. The government seems to have

realized the importance of tourism and is willing to spend towards the development of the

industry. The 'Incredible India' campaign is a product of this realization.


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The focus on infrastructure, modernisation of airports, open sky policy, development of new

tourist destinations and circuits, more fund allocation towards tourism are some of the

initiatives taken by the government to promote tourism. The Indian hotel industry stands to

gain from this proactiveness shown by the government.

Weaknesses

Poor support infrastructure: India is currently spending a miniscule amount compared with its

needs, on infrastructure. China is spending seven times as much as India on infrastructure

(excluding real estate) in absolute terms. Total capital spending on electricity, roads, airports,

seaports and telecom was US$150 in China (10.6% of GDP) compared with US$21 in India

(3.5% of GDP). However, over the past 2-3 years, the government has realized the

importance of infrastructure and has focused on improvements.

Opportunities

Rising Income: While there has been much talk about record number of foreign tourist

arrivals, very little has actually been said or done about domestic tourism, which, according

to our estimates, has registered a 40% annual growth in the last three years and is currently

estimated at 300 m travelers. Per capita income grew by an impressive 7.1% in 2005, while

Gross Domestic Savings touched an all time high of 28%. Significantly, the present-day

consumption boom in India has been influenced more by higher disposable income rather

than lower savings. This is good news, as income induced spending is likely to sustain itself

for a longer period. Higher disposable incomes are also expected to enhance the concept of

traveling for leisure.

Also, there has been an overall transformation in consumption pattern in the last five years.

The increase in number of young people, their rising aspiration levels, and an increase in their

spending power has led to a change in the consumption pattern. There is a marked shift from

spending on traditional categories like food and grocery, clothing and jewellery, to lifestyle

categories such as leisure, and aspirational products and services.


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Open sky benefits: The opening up of the aviation industry in India brings exciting

opportunities for the hotel industry (airlines transport around 80% of international tourists).

Increased airline activity has stimulated demand and has helped to improve India's troubled

infrastructure. Increased competition among airline companies will further lead to the

development of new and improved services. Also the open skies policy has benefited both

international and domestic travel.

New business opportunities: We believe that, over the next three to five years, the biggest

surge in accommodation demand is expected to come from commercial zones that are being

developed in metro suburbs and secondary markets. Mixed-use development projects that

include retail and commercial space have also gained momentum in the last 24 months and

will continue to be an attractive option. This provides a unique opportunity for hospitality

projects. Also the new concept, which is going to gain importance is that of budget hotels

(started by Indian HotelsGinger, the erstwhile Indi one). Due to their inherent nature of

operation, associated costs and flexibility, budget hotels will be better suited to withstand the

next economic downturn as and when it takes place.

Threats

Event risk: Dependency on foreign tourism can be a double-edged sword as travel decisions

are based on global patterns and events that happen elsewhere can have serious impact the

performance. Events like 9/11, SARS outbreak and Afghanistan and Iraq wars have severely

impacted the tourism industry in the past and the threat remains.

Increasing competition: Global hospitality majors like the Four Seasons, Shangri-La and

Aman Resorts are all making their entry into the Indian market. They are not the only ones

who are turning their attention to India. The Hilton Group is deciding on a comeback and has

tied up with the Oberoi Group.

Two other groups - the Carlson Group and the Marriott chain are furiously hunting for new

hotels in India's top cities. This will increase the competition for the existing Indian hotel

majors.


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INNOVATIONS IN HOTEL INDUSTRY.

Mobile apps

Making the move into the online application world makes sense for hotels - they make their

money off selling rooms, and the easier it is to book a room, the more money they'll make.

Many of the large hotel chains already offer mobile versions of their web site, but some have

commissioned their own mobile application.

Being able to open a mobile app, locate the closest hotel and book it right on your device

saves the hotel the cost of phone agents, and makes for happier guests.

Self service check-in kiosk

New self-service check-in terminals. can walk into the lobby, swipe the card, and get a room


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key. All without having to wait in line for the front desk. Can get a key with four taps on a

screen, when the front desk staff seem to require five minutes staring at their screen to

perform the same task, but I secretly hope more hotels introduce these new terminals as soon

as they can.

Internet phones and feature phones

VOIP and feature phones take the boring hotel phone way beyond its original purpose. At some

properties, these phones also offer the news and weather, assist with in-room dining choices and let

you read email.

With all this information at your fingertips, you also no longer need the in-room hotel guide, which

obviously saves the hotel a ton of money (and countless trees). Of course, as with all new technology,

there will be people


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CHALLANGES

INCREASE LAND COST:

Land costs have become increasingly important for any project, accounting for around 30.0-

50.0% of the total developmentcost,as opposed to to about15.0-20.0% internationally.

REGULARITY HURDLE:

Compliance with a number ofregulationsrelated to the preparation and sale of food and

beverages, and various laws and regulations governing employee relationships.

SHORTAGE OF SKILLED EMPLOYEES

The lack of a quality workforce and low retention levels of good professionals at different skill

levels is hampering the growth of the hospitalityindustry.

INTENSE COMPETITION:

The industryis witnessingheightenedcompetition with the arrival ofnew players, new productsand

new systems

CUSTOMER EXPECTATION:

With the emergence ofIndia on the global travel map, expectations ofcustomersare rising, making

companies focus on customer loyalty and repeatpurchases

IMAGE OF THE COUNTRY

The c o m p e t i t i o n from neighbouring countries and negative perceptions about the Indian

tourismproductconstrains the growth of tourism. The image of India as a country overrun by

poverty, political instability, safety concerns and diseases also harms the tourismindustry.

HUMAN RESOURCE DEVELOPMENT

The sector has been focusing on the development of white collarjobs as opposed to blue

collarjobs, leading to a shortage of blue collar employees, which mightpose various threats to the

industry


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INTER INDUSTRY

Company Profile

INDIAN HOTEL INDUSTRY PLAYERS...

1) OBEROIS.

2) ITC.

3) LEELAs.

4) Taj.


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THE OBEROI

Introduction.

The Oberoi Group, founded in 1934, operates 29 hotels across five countries, one Nile

Cruiser and one Backwater Vessel in Kerala under the luxury Oberoi and five-star Trident

brands. The Group is also engaged in flight catering, airport restaurants, travel and tour

services, car rentals, project management and corporate air charters.

Oberoi Hotels & Resorts is synonymous the world over with providing the right blend of

service, luxury and quiet efficiency. Internationally acclaimed for all-round excellence and

unparalleled levels of service, Oberoi hotels and resorts have received innumerable awards

and accolades.

A distinctive feature of The Groups hotels is their highly motivated and well trained staff

who provide exceptionally attentive, personalised and warm service. The Groups new luxury

hotels have established a reputation for redefining the paradigm of luxury and excellence in

service amongst leisure hotels around the world.

Trident hotels are five-star hotels that have established a reputation for excellence and are

acknowledged for offering quality and value. These hotels combine state of the art facilities

with dependable service in a caring environment, presenting the ideal choice for business and

leisure travellers.

At present there are nine Trident hotels in India. These are located in Mumbai at Bandra

Kurla and Nariman Point, Gurgaon (Delhi National Capital Region), Chennai,

Bhubaneshwar, Cochin, Agra, Jaipur and Udaipur. The Oberoi Group also operates a Trident

hotel in the Saudi Arabian city of Jeddah.

The last decade has witnessed the debut of new luxury Oberoi leisure hotels in India and

abroad. In India, these hotels include The Oberoi Rajvilas, Jaipur; The Oberoi Amarvilas,


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Agra; Wildflower Hall, Shimla in the Himalayas; The Oberoi Vanyavilas, Ranthambhore;

The Oberoi Cecil, Shimla and The Oberoi Udaivilas, Udaipur. Overseas, the new hotels

include The Oberoi, Lombok in Indonesia, The Oberoi, Mauritius and The Oberoi, Sahl

Hasheesh in Egypt. The Oberoi Zahra, Luxury Nile Cruiser, Egypt was launched in 2007.

The Groups commitment to excellence, attention to detail and personalised service has

ensured a loyal list of guests and accolades in the worldwide hospitality industry.

Recognising the importance of quality training in hospitality management, The Oberoi Group

established The Oberoi Centre of Learning and Development in New Delhi in 1966. Today,

this institution is considered amongst the best in Asia with approximately 100 students

graduating each year.

The Oberoi Group is committed to employing the best environmental and ecological practices

in technology, equipment and operational processes. The Group also supports philanthropic

activities that range from education to assistance for the mentally and physically challenged.

The Group is also a keen contributor to the conservation of nature and of cultural heritage.

Types of Hotels

1)Business Hotels


luxury, warm service and quiet efficiency. Internationally recognised for all-round excellence

and unparalleled levels of service, the business travellers acknowledge Oberoi Hotels &

Resorts as amongst the finest. This was reaffirmed recently in Cond Nast Traveller,

Business Travel Awards, a readers poll of business travellers, in which Oberoi Hotels &

Resorts was rated the best hotel chain in the world (outside the United States). The OberoiNew Delhi , The Oberoi Mumbai, The Oberoi Bangalore, The Oberoi Grand, Kolkata.

2) Leisure Hotels


luxury, warm service and quiet efficiency. Luxury as a unique, memorable and personal

experience is core to the Oberoiphilosophy. It encompasses every element of a guests stay at

the Oberoi hotels that creatively combine breathtaking locations, luxurious environs and the

best of modern amenities with personalised and warm service delivered with genuine care.


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The design and architecture of the hotels, is inspired by the historical style of the region. This

coupled with luxurious interiors that replete with local arts and crafts, to menus that offer an

extensive selection of local specialties and classical and folk dance and music performances.

The Oberoi Amarvilas Agra, The Oberoi Rajvilas Jaipur, The Oberoi Udaivilas Udaipur,

The Oberoi Vanyavilas Ranthambhore Wildflower Hall, Shimla in the Himalayas The Oberoi

Cecil, Shimla Mena House Oberoi, Cairo.The Oberoi.


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SWOT ANALYSIS OF OBEROI GROUP OF

HOTELS

Strengths

Cost advantage

growth

Weaknesses

company

presence

Opportunities

debt, etc)

abroad

Threats

taxes, etc)

services


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ITC HOTELS

INTRODUCTION

In 1975, the Company launched its Hotels business with the acquisition of a hotel in Chennai

which was rechristened 'ITC-Welcome group Hotel Chola' (now renamed My Fortune,

Chennai).

The objective of ITC's entry into the hotels business was rooted in the concept of

creating value for the nation. ITC chose the Hotels business for its potential to earn high

levels of foreign exchange, create tourism infrastructure and generate large scale direct and

indirect employment.

Since then ITC's Hotels business has grown to occupy a position of leadership, with over 100

owned and managed properties spread across India under four brands namely, ITC Hotels -Luxury Collection,

Welcome Hotels, Fortune Hotels and Welcome Heritage.

History of ITC hotels.

ITCH was originally incorporated as Rama Hotels Pvt Ltd in 1972. In 1974, the Company

acquired a 4-acre plot of land from Karnataka board. The Company was renamed as

Vishwarama hotels in 1973. The Vazir Sultan Tobacco Co Ltd. (VST) acquired this company

in 1980-81. A luxury hotel in Bangalore commenced operations in 1982. The hotel was

accorded 5 star status by the government in 1985. ITC Ltd. And its associates bought the

entire equity capital from VST in 1984. The Company's name was changed to the existing

name in 1986. ITCH acquired rights in Welcome Group Rajputana Palace Sheraton Hotel at

Jaipur in 1992 for a consideration of Rs418.2m. The company came with a rights issue of

partly convertible debentures in April 1993 (to raise Rs500m) to fund the acquisition of


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Jaipur hotel from ITC and expansion of Bangalore hotel with an addition of up market 100

room tower block.

As a part of restructuring, in FY95, all the licensed hotels were transferred from the hotel

division of ITC Ltd. to ITCH. The transfer was on the basis of operating license agreement

under which fee linked to turnover was paid to ITC Ltd. The management team of hotel

division of ITC Ltd. was also transferred to ITCH. In the same year, the company opened

`Grand Kakatiya Hotel' at Hyderabad. The company also acquired plots of land at Calcutta

and Mumbai for setting up new hotels. The company made a Rights issue at a premium of

Rs 110) in the ratio of 3:10. In 1996 , the company entered into an operating services

agreement to manage the Grand Bay Hotel at Visakhapatnam. During 2000, the company

acquired controlling equity stake of Ansal Hotels Ltd.,representing 54.65 per cent of its

subscribed capital. Hence, Ansal Hotels Ltd. became a subsidiary of the company and that of

ITC Ltd. (the holding company of the company) with effect from 12th July. It undertook re-

branding exercise to enable the customers identify the products offered by the company. Mr.

S S H Rehman resigned as Managing Director of the company with effect from 30th July

2003 and Mr. Nakul Anand was appointed as Managing Director with effect from 30th July

2003.

-Appoints Mr Serajul Haq Khan and Mr K JayaBharath Reddy as the Additional Directors

of the company.

-Board approves the elevation of Mr Nakul Anand as Executive Director and Chief

Operating Officer from his current position.

-Mr S S Rehman ceases to be the Managing Director of the company.

-Company's joint venture Welcome Heritage signs a franchise and management agreementwith the Maharaja of Mysore Mr Srikanta Wodiyar to foray into South India.

- Fortune Park Hotels, a wholly-owned subsidiary of ITC Hotels Ltd with hotels catering to

the mid-price segment, has added one more property in the south. The chain which already

has a strong presence in the southern part of India , now announces its 18th property that is

strategically located at the industrially important city of Vijaywada.

2007


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- ITC Hotels will soon be increasing the value chain, on the back of its new association with

its old partner Starwood Hotels and Resorts,by bringing the Luxury Collection of hotels toIndia.

Upcoming hotels of ITC.


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SWOT ANALYSIS OF ITC :

STRENGTHS

1. Flagship hotels division of ITC Hotels

2. Awarded best employer in Asia in hospitality sector

3. Association with hospitality giant Starwood Hotels

4. High brand recall and popularity

5. Exclusivity and innovation in services with over 100 hotels pan India

6. Business as well as leisure hotel chains like ITC - Luxury Collection Hotels, Welcome

Hotel Sheraton Hotels, Fortune Hotels & Welcome Heritage Hotels

7. Increasing bottom line and an Aspirational brand

WEAKNESSES

1.Limited global presence as compared to some other leading hotel chains

2. Huge number of competitors means limited market share

OPPURTUNITIES

1.Growing market and tourism industry

2. Foreign Tourists Arrival constantly growing

3. Novel travelling concepts like Ecotourism, Medical Tourism

THREATS

1. International chains like Ritz Carlton, Novotel are entering India

2. Economy fluctuations affect tourism


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LEELAs

The Leela Palaces, Hotels and Resorts is owned and managed by Hotel Leela venture

Limit which was established in 1987 in Mumbai. The company is part of The Leela Group

whose portfolio includes luxury hotel and resort properties, IT and business parks, as well as

real estate development.

Spearheading the group is chairman, Captain C. P. Krishnan Nair, whose vision has been

inspired by his strong belief in Indias ability to compete with the worlds premier travel

destinations. Captain C. P. Krishnan Nair has led a fulfilling life of hard work and dedication.

From starting the first Students Union while at school to joining the army during World War

II and later taking the reins of his father-in-laws handloom business - only to grow it into the

countrys largest garment exporting house - Nair is a singular leader who has worked hard,

relentlessly, towards a focused goal.

His many business trips to Europe and America exposed him to hotels with high service

standards, inspiring him to enter the world of luxury hospitality. At the age of 65, he started

to build The Leela Palaces, Hotels and Resorts which today His many business trips to

Europe and America exposed him to hotels with high service standards, inspiring him to enter

the world of luxury hospitality. At the age of 65, he started to build The Leela Palaces, Hotels

and Resorts which today has evolved into one of the most celebrated indigenous hospitality

6groups in the luxury segment.

The Leela Palaces, Hotels and Resorts comprise a collection of luxury hotels and resorts in

New Delhi, Mumbai, Bangalore, Gurgaon, Udaipur, Goa and Kovalam. New hotel will soon

open in Chennai with plans to develop hotels in Agra, Lake Ashtamudi (Kerala) and Jaipur.

The group has marketing alliances with Germany-based Kempinski, US-based Preferred

Hotel & Resorts and is a member of the Global Hotel Alliance based in Geneva, Switzerland.


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The authentic Indian experience found across the hotels and resorts exemplifies the groups

underlying philosophy to delight and exceed guest expectations through gracious Indian

hospitality, known in the ancient Indian scriptures as Atithi Devo Bhava orGuest is God.

Hotels under operation.

Upcoming hotels.

MARKETING STRATEGIES

Stay more save more

Exclusive offer for the business or leisure traveller on long stays. Stay for a week or more and

enjoy discounts on spa treatments, laundry, meals and more. The longer you stay, the more

you save.

FESTIVE OFFERS :

They provide special rates during the below periods:

US Independence (29th June to 7th July)

Dussehra (18th to 27th October )


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Diwali and Thanksgiving week (9th to 24th Nov)

Christmas and New Year (21st Dec 2012 to 5th Jan)

BUSINESS OFFER

The Leela Palace Bangalore ensures the most conducive atmosphere and ambience with the

comforts of a royal and stately charm making it a perfect location for discerning businessmen

to conduct some serious business meetings.

SWOT ANALYSIS OF LEELAs

Strengths :

Location :All the hotels of Leela group are located in strategic place, in terms of scenic

beauties, transport ,historical importance.

Architecture :Most of the hotels architecture of Leela represents the traditional Indian

culture. Leela Bengaluru &Udaipur was transformed palaces into hotel, Bengaluru & Goas

main building architecture @ambience showcases the inspiration of vijaynagar dynasty.

Standards :It offers it guests the leisure of international standards. Every details of guests

luxury is being looked after.

Status :It only operates luxury hotels in India, no other categories of hotels are not in its

product line, thus brand Leela offers a status to their guests.

Alliances :Hotels have marketing alliances with Germany base Hotels, the oldest luxury

hotel group ,US-based Preferred Hotel Group andare members of Global Hotel Alliance

based in Geneva, Switzerland.

WEAKNESSES:

Only operates as luxury chain: Leela group of hotels only operates in luxury hotel market, sothe revenue remain untouched which could have earned from other categories of hotels.


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Operates only in particular parts of India:

Hotels of Leela group are basically located in southern or western part of India ,northwestern, eastern, north eastern part of India is still to explore.

Absence in international market: Leela group of hotels only operates in India, it will take long

time to consider as a international brand.

Higher attrition rate of employees: Employees of Leela group of Hotels are not satisfied

with their jobs, resulting the attrition rate very high, thus it is leaving a drawback towards the

commitment of making Leela as a world class hotel

OPPURTUNITIES :

Presence in international market: Opening up some hotels in the international market would

give it a opportunity to become an international brand along with a huge sum of foreign

revenue.

Opening hotels in some parts of India: It has got the opportunity to earn more revenue by

opening new property in the places which is tourists hot destination but still unexplored by

other chains of hotels.

Explore in other categories of hotels: Opening up the other categories of hotels other than

luxury hotel will make it as acceptable brand by the all categories of guests


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THREATS :

Foreign brands opening up: Most of the international hotel brand had taken their entrance into

the Indian market ,making the Indian leisure market very competitive.

Recession: Global recession had also effected the leisure market, which reduces the number

of tourist from foreign countries


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INTRODUCTION

The Indian Hotels Company Limited (IHCL) and its subsidiaries are collectively known as

Taj Hotels Resorts and Palaces and is recognised as one of Asia's largest and finest hotel

company. Incorporated by the founder of the Tata Group, Mr. Jamsetji N. Tata, the company

opened its first property, The Taj Mahal Palace Hotel, Bombay in 1903. The Taj, a symbol of

Indian hospitality, completed its centenary year in 2003.

Taj Hotels Resorts and Palaces comprises 93 hotels in 55 locations across India with an

additional 16 international hotels in the Maldives, Malaysia, Australia, UK, USA, Bhutan, Sri

Lanka, Africa and the Middle East.

Spanning the length and breadth of the country, gracing important industrial towns and cities,

beaches, hill stations, historical and pilgrim centres and wildlife destinations, each Taj hotel

offers the luxury of service, the apogee of Indian hospitality, vantage locations, modern

amenities and business facilities.

UN IQUE SELLING PROPOSITIONS OF THE TAJ HOTELS :

Taj Hotels, Resorts and Palaces covers a wider market in the hotel industry than the other

luxury hotels in the race. They have a better product profile than the rest: i.e. They have great

management, hospitality and facilities provided by them to their customers.

Some of them are:

Launch of Knowledge Management Site

Systems and Technology

Electronic Signage

Guest Wireless Internet access

In Room Guest Entertainment Systems


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The Taj Contact Centre

Project Orion, the Integrated Back Office System

Self service Kiosks

Taj Website

Outlook

Global Reach and 24 x 7 x 365 Access for our customers across the world.

Four Steps of Service:

1. A warm and sincere welcome. Use the guest name, whenever possible.

2. Fulfil guest needs and provide anticipatory service.

3. Defect free products and services.

4. Fond farewell using the guest name, whenever possible.

CATEGORIES OF TAJ HOTELS

Taj Hotels, Resorts and Palaces is an international hospitality group with strong roots in

India. For over 100 years, we have built our reputation on legendary properties, unparalleled

facilities and impeccable service. We operate in the luxury, premium, mid-market and value

segments of the market through our following

BRANDS :

Taj (luxury full-service hotels, resorts and palaces ) is our flagship

brand for the worlds most discerning travellers seeking authentic experiences given that

luxury is a way of life to which they are accustomed. Spanning world-renowned landmarks,

modern business hotels, idyllic beach resorts, authentic Rajput palaces and rustic safari

lodges, each Taj hotel reinterprets the tradition of hospitality in a refreshingly modern way tocreate unique experiences and lifelong memories.


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Taj also encompasses a unique set of iconic properties rooted in history and tradition that

deliver truly unforgettable experiences.

A collection of outstanding properties with strong heritage as hotels or palaces which offer

something more than great physical product and exceptional service. This group is defined by

the emotional and unique equity of its iconic properties that are authentic, non- replicable

with great potential to create memories and stories.

Taj Exotica is our resort and spa brand found in the most exotic and relaxing locales of

the world. The properties are defined by the privacy and intimacy they provide. The hotels

are clearly differentiated by their product philosophy and service design. They are centered

around high end accommodation, intimacy and an environment that allows its guest

unrivalled comfort and privacy. They are defined by a sensibility of intimate design and by

their varied and eclectic culinary experiences, impeccable service and authentic Indian Spa

sanctuaries.

Taj Safaris are wildlife lodges that allow travelers to experience the unparalleled beauty

ofthe Indian jungle amidst luxurious surroundings. They offer Indias first and only wildlife

luxury lodge circuit. Taj Safaris provide guests with the ultimate, interpretive, wild life

experience based on a proven sustainable ecotourism model.

Premium Hotels ( premium full-service hotels and resorts ) provide a new generation

of travellers a contemporary and creative hospitality experience that matches their work-hard

play-hard lifestyles. Stylish interiors, innovative cuisine, hip bars, and a focus on technology

set these properties apart.

The Gateway Hotel ( upscale/mid-market full service hotels and resorts ) is a pan-India network of hotels and resorts that offers business and leisure travellers a hotel designed,

keeping the modern nomad in mind. At the Gateway Hotel, we believe in keeping things

simple. This is why, our hotels are divided into 7 simple zones- Stay, Hangout, Meet, Work,

Workout, Unwind and Explore.


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As travel often means more hassle than harmony, more stress than satisfaction, modern

travellers are looking for smarter choices. Driven by our passion for perfection, we welcome

our customers to a refreshingly enjoyable and hassle-free experience, anytime, everywhere.

Offering the highest consistency in quality, service and style we set new standards and take

the unwanted surprises out of travelling. Our warm welcomes make our guests feel at home,

away from home and our crisp and courteous service empowers them to get more done with

greater effectiveness and control. And through our unrivalled network we provide service that

is effortless, simple, never overwhelming, always warm.

Ginger ( economy hotels ) is their revolutionary concept in hospitality for the valuesegment. Intelligently designed facilities, consistency and affordability are hallmarks of this

brand targeted at travellers who value simplicity and self-service.

UPCOMMING HOTELS


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SWOT ANALYSIS

Strengths

The group has enormous power and strengths, which makes it the best and competitive, some

of them are:

1) It consists of 57 properties in 40 locations across India and 18 international hotels.

2) Its stylish variety of hotels like; Taj exotica, Taj safari, The gateway hotels, Ginger hotels,

Jivas spa etc.

3) Its effective and efficient management techniques and staff.

4) Its brand name

5) The presence of Taj Hotels, Resorts and Palaces in various countries like United Kingdom,

France, Germany, Italy, Dubai, Singapore, Australia.

Weakness

Taj hotels being such a big brand, has a lot of advantages but every big company faces some

odds and so does Taj.

1) Its hard to maintain such a huge chain of subsidiaries and there are more chances of

mishaps in management.

2) Its huge competitors like Oberoi, Leela, Oriental, ITC etc are also providing same facilities

and thus it becomes a weakness for Taj hotels.

3) Its very costly for the Indians to afford the tariffs and service charges set by Taj hotels.

Thus, they loose a major part of their market share.

4) They need a lot of investment.

5) As Taj hotels is a popular group, it is always in the eyes of the terrorists, as taj has already

faced such an incident. Therefore, it proves to be a weakness some times, to be so popular.


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Opportunities

The Group is poised strategically to take advantage of the following situation :

1) In the backdrop of a healthy economy having its positive fallouts on the Tourism Sector

leading to rapid growth in markets in India, South Asia and key gateway cities in source-

market destinations.

2) Rapid expansion in both International and Domestic destinations, with top-of-the-line

Luxury, Leisure and Business properties.

3) Meeting growing demand in the budget and mid-market segments.

4) Extending the product portfolio into related offerings viz. luxury residences, wildlife

lodges and health spas.

Threats

The threats identified by the Group are related mainly to the markets in which the Group

operates and general factors related to the tourism industry. Significant among these are:

1) Cheaper international airfares, increasing affordability of travel to International

destinations, especially South East Asia, Europe and Australia.

2) Growing presence of international hospitality chains competing in the Luxury and

Business segments, to meet excess demand situation.

3) Appreciating Indian Rupee vis--vis the US Dollar, resulting in lower realisation on

foreign exchange earnings.

4) Slowdown of international demand resulting in reduction of revenues.


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Comparison of hotels

As per company

The OberoisRevenue Break up (2010-2011)

ITC Hotels

Revenue break up (2010-2011)

18

37

45

Other income

Food & beverage

Room income

11

48

41

Other income

Food &beverage

Room income


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The Leela Hotels

Revenue Breakup (2010-2011)

Cost revenue (2010-2012).


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Taj Hotels.

Revenue break up.

Cost Structure


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Learnings from the project

In-depth study of Hotel industry, by taking the major players of Indian hotel industry like

Oberois, ITC hotels, Leelas, Taj. After studying the global perspective and national

perspective it come to know that the there is an tremendous growth in the upcoming year.

The hotel industry is doing very well in some areas of the world and not as well in others.

The economy and political climate play are key elements in determining future growth rates.Overall, industry insiders and major hotel groups have a positive and optimistic outlook for

the future growth of the worldwide hotel industry.


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CONCLUSION

After studying the overall hotel Industry by doing the swot analysis of overall industry, also

the global perspective and national perspective it is clear that the hotel industry plays an

important role in the Indian economy and is growing leaps and bounds and is also one of the

leading industry .

Four major players like The Oberois, Leelas, ITC, Taj are the giants of the Hotel Industry

in India. It shows that the Hotel Leela is a leading company among these four after

comparing the revenue income of rooms, food & beverage and other income.

So as the revenue income percentage is more than others, room generate more revenue as

considering food and beverage, and other income.

All these hotels follow their own marketing strategies in order to attract more consumers.


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