HOSPITALITY INDUSTRY Group 11

M DILEEP

RAJASHEKAR REDDY

SANTOSHI

SAUMYA

MANIKA

KEERTHI KUMAR

OVERVIEW OF GROWTH IN HOTEL

INDUSTRY

Hotels

ITC Maurya (Delhi), ITC Maratha (Mumbai), ITC Grand Central (Mumbai),

ITC Sonar (Kolkata), ITC Windsor (Bengaluru), ITC Kakatiya (Hyderabad), ITC Mughal (Agra).

‘Bukhara’ Restaurant named as Best Indian Restaurant in the World.

Taj hotels Presented by-

Group-11

Introduction• Taj Hotel established on December16, 1903

• Taj Hotels resorts &places comprises 57 hotels in 40 location across india.

• 18 International Hotels in the Malaysia,Australia.UK,USA,Sri lanka, Africa.

• Taj is recognised as the premier Hospitality provider.

• Innovator in dining:- Taj was the first to introduce thai,Italian ,Mexican into the country.

vis

ion

Apart from strengthing our position in the domestic market. We have adopted a vision to make Taj brand more popular in the International. The only way to do it is to either acquire premium hotels or enter into management contracts.

Mis

sio

n Embrace talent and

harness expertise to leverage standards of excellence in the art of hospitality to grow our international presence.increase domestic dominance and create value for all stakeholders.

I T C

I

C

intr

oduct

ion

ITC Welcome group is India's second largest hotel chain with over 100 hotels.

ITC Green Centre in Gurgaon.

ITC Limited entered the hotel business on October 18, 1975, with the opening of a hotel in Chennai.

ITC-Welcome group has one of the most extensive art collections in India

VIS

ION

WOW AT EVERY MOMENT OF TRUTH

A COMMITMENT BEYOND THE MARKET

FULFILLMENT OF THE SOCIETY NEEDS

MIS

SIO

N PROMOTE THE NATURE

TO BE A BEST BRAND IN HOTEL INDUSTRIES

NO COMPROMISE WITH THE QUALITY AT ANY COST

TO PROVIDE THE BEST SERVICES TO CUSTOMERS

I T C

I

C

Marketing

strategies of ITC

As one of India's most dynamic hospitality chains, ITC-Welcomgroup has set standards for excellence in the hotel industry by pioneering the concept of branded accommodation.

The chain has developed three brands of accommodation ITC One', 'Towers' and the 'Executive Club' to differentiate between the needs of various travelers and provide high levels of service.

ITC-Welcomgroup has strategically customized its hotels and appropriately categorized them to fulfill the service and budgetary needs of travellers.

With its exclusive strategic tie up with starwood for its top of the line premium brand the 'Luxury Collection', the group is strengthening its international marketing stance.

ITC-Welcomgroup was also instrumental in bringing the 'Sheraton' brand to India, with which it enjoyed a three-decade exclusive partnership.

The seven hotels which are part of this luxury collection are: ITC Maurya in Delhi, ITC Maratha in Mumbai, ITC Sonar in Kolkata, ITC Grand Central in Mumbai, ITC Windsor & ITC Royal Gardenia in Bengaluru, ITC Kakatiya in Hyderabad and ITC Mughal in Agra.

WelcomEnviron is ITC-Welcomgroup's vision for a green world.With the guiding principle of 'Reduce, Reuse and Recycle', each hotel has its own programme, encompassing local participation, creating awareness among employees and internal conservation.

I T C

I

C

Suppliers• Many available suppliers•THREAT: LOW

Buyers• Global tourists • Medical tourists• Industrialist people

THREAT: MODERATESubstitutes

• Small lodges• Middle class hotels• Palace in wheels•THREAT: HIGH (because of new class, Low otherwise)

Industry Competitors

• Taj group of hotels• Oberoi groups• Leela group of hotels• THREAT: HIGH

Potential Entrants

Global hotel groups entry

•THREAT : MODERATE

Porter’sFive ForcesAnalysis

Customer Need• Good Hospitality• Hygiene food and environment

Overall Threat Level

Moderate

SWOT ANALYISIS OF ITCStrengthBrand ManagementSales and Marketing Group ranks No.2 Excellence of its cuisine.

Weakness• Naive in Global Arena.

Opportunity• Increase in tourism

Threats• Luxury hotels competing on the home turf.•Economic Downturn• Terrorism

ITC

GR

OU

P O

F C

OM

PAN

Y-A

NA

LYSI

S

Market attractiveness & Competitive strength is also important.

Act 2

MARKET SHARE

GROWTH

Star Question mark

DogCash Cow

•FMCG-Cigarettes •ITC Infotech

•FMCG-Foods•Agri Business•Hotels•Paperboards & Packaging

Taj hotels Presented by-

Group-11

Mark

eti

ng m

ix

stra

tegy

of

Taj h

ote

ls Products

Rooms

Restaurant’s and Bar

Meeting room and Banquet facility

Amenities

Services

Safe deposit box

PRICE

Taj hotel has set its price of the room on the basis of business ,leisure and luxury class.

RATE

The Taj Suite – US$-175

Executive suite – US$-125

Standard sea view double – US$-75

The Taj lady – US$-90

PLA

CE

Location of the hotel is the most important business decision for the hotel.

Present in metro cities in India.

Global presence(Maldives, London, Dubai, Colombo)

PR

OM

OTIO

N

STRATEG

Y

Promotion schemes are carried on regularly the hotels has many loyalty programme, clubs, membership, previlage etc.

Some of them are:

The Taj inner circle

The taj junior league

The taj club

Taj also offer taj surprises including weekend savers,value vouchers,book early get more etc.

STP A

NA

LYSIS

SEGMENTATION

Geographical segmentation

Demographical segmentation

Psychographic segmentation

Behavioral segmentation

POSITONING

Through print media

Electronic media

Magazine

Online advertising

TARGETING

Targeting is a group of people who have common need and behavior.

Business class

Upper class

Tourists

Suppliers• Many available suppliers•THREAT: LOW

Buyers• Global tourists •Medical tourists•Industrialist people

THREAT: MODERATE

Substitutes• Small lodges•THREAT: HIGH (because of new class, Low otherwise)

Industry Competitors

• Oberoi groups• Leela group of hotels• THREAT: HIGH

Potential Entrants

Global hotel groups entry

•THREAT : MODERATE

Porter’sFive ForcesAnalysis

Customer Need• Good Hospitality• Hygiene food and environment

SWOT Analysis

Strength :- Brand loyalty Credibility Huge Reputation Patent protection

Weakness :- High cost service Not proper network in semi- urban Lack of safety measure

Opportunity :- Rising incomeGlobalizationNew Geographical location

Threats :- Fluctuations in international tourist arrivalsIncreasing competitionTerrorism

Invest 9000 crore in hotels.Planning to devolop 60 new hotels in next 3 years out

of which 10-25 are to be completed next year according to Nakul Nandan,director of

hotels division.

FUTURE STRATAGIES OF ITC HOTELS

Fortune park hotels, a wholly owned subsidary of ITC is planning to open 25 new hotels.

Planning to launch 2 more luxury hotels in country for next 2 years in chennai and kolkatta.Senior Vice President V.P.Pavan Varma said 20-25% revenue growth is expected from hotel business next fiscal

Expressed keen interest in making investments for setting up luxury hotels and food parks in Orissa,C.M Navven Patnaik promised necessary cooperation.

Tata’s controlled Taj group of hotels has appointed U.S based Landor Associates the WPP’s pre-eminent and design consultancy firm to undertake brand restructuring of the group.

The luxury division is the largest unit of group accounting for close to half of group’s revenue,business hotels will be its next focus over next 3 years.FU

TU

RE S

TRATEG

IES

OF

TAJ H

OTELS

Group is planning a major presence in the budget hotel category,will also have a separate brand identity.

Planning another 12 hotels in next 3 years as part of expansion plans in business hotels category.

Plan is to up the group presence in metros,mini-metros and smaller towns.this would lead to an increase of about 50.

Taj group plans Rs 100 crore investment in kerala.Plans to have luxury hotels at munnar and Bekal.

Planning new additions to its Hyderabad portfolio.

The group is open to creating new properties on the lands of its JV partner,GVK group.

With the Indian travel and tourism industry expected to grow at an annual rate of 8.8% to US $ 90.4 billion in 2015,taj is looking forward in order to manouvere new challenges.

Thank u