UNIVERSITY OF MUMBAI

PROJECT REPORT
ON
HOSPITALITY SECTOR

SUBMITTED BY
SRIDHAR G. DASARI

ROLL NO 16010
T.Y.B.M.S
ACADEMIC YEAR: 2014 2015

PROJECT GUIDE
Dr. VEENA PRASAD

S.I.W.S
N.R SWAMY COLLEGE OF COMMERCE & ECONOMICS
SMT. THIRUMALAI COLLEGE OF SCIENCE
337, SEWREE WADALA ESTATE,
WADALA, MUMBAI 400 031.
 PROJECT REPORT
ON
HOSPITALITY SECTOR

SUBMITTED
IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE
AWARD OF DEGREE OF BACHELOR OF MANAGEMENT
STUDIES (B.M.S)

BY
SRIDHAR G. DASARI
ROLL NO 16010
T.Y.B.M.S

S.I.W.S
N.R SWAMY COLLEGE OF COMMERCE & ECONOMICS
SMT. THIRUMALAI COLLEGE OF SCIENCE
337, SEWREE WADALA ESTATE,
WADALA, MUMBAI 400 031.
 DECLARATION

I Mr.___________________________________________ the student of

S.I.W.S N.R Swamy College of Commerce & Economics, studying in
T.Y.B.M.S hereby declare that I have completed the project report on
HOSPITALITY SECTOR in the academic year 2014 2015. The
information submitted is genuine and practical to the best of my
knowledge.

Date: ________________
__________________
SRIDHAR G. DASARI
Place: Mumbai (Signature of
Student)
Hospitality Sector

ACKNOWLEDGEMENT

I would like to express my gratitude and sincere thanks to my Project

Guide (Dr. VEENA PRASAD), S.I.W.S College,for instilling confidence
in me to carry out this study and extending valuable guidance and
encouragement from time to time, without which it would not have been
possible to undertake and complete this project.

I also wish to extend my appreciation to our Principal Dr. P. G.

GOPALAKRISHNAN and the Coordinator of BMS (Prof.VINOD
NAYAK), for their kind co-ordination and support.

I would like to thank my colleagues for their valuable comments and

suggestions for making this a cherishable experience for me.

I would also like to thank my parents and my friends, who have stood by
me when ever needed and without whose support this task would not have
been accomplished.

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Hospitality Sector

INDEX

SR. NO. TOPIC PAGE NO.

1 INTRODUCTION TO HOSPITALITY SECTOR 7

2 HISTORY AND ORIGIN 09

3 GLOBAL CONCEPTS 10

4 HOTEL MANAGEMENT STRUCTURE 12

5 TYPES OF SERVICES 22

6 ABOUT HOTEL INDUSTRY 26

7 MARKET TRENDS 33

8 TYPES OF ACCOMMODATION IN INDIA 34

9 TAJ GROUP OF HOTEL 45

10 SWOT ANALYSIS OF TAJ MAHAL HOTEL 66

11 CONCLUSION 70

12 BIBLOGRAPHY 71

13 REFERENCE 72

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Hospitality Sector

INTRODUCTION TO HOSPITALITY SECTOR

Hospitality means kindness in welcoming strangers or guests. The

word Hospitality is derives from the Latin word hospes, meaning guest,
and developed into hospice, a place of shelter for travellers. These days, the
services offered to the modern traveller by hospitality establishments can
cater for every human comfort. The hospitality business is a massive
industry encompassing all forms of transport, tourism, accommodation,
dining, drinking, entertainment, recreation and games. It is the worlds
largest employer of people and a vast consumer of physical resources.
Some countries depend almost entirely on tourism and business travel and
the consequent use the visitors make of the countrys hospitality facilities.

The growth of hospitality has always been tied to the expansion of

business, tourism and travel, and is arguably the oldest professional
activity. Providing travellers with the place to stay and eat is mentioned in
the earliest writings of people, and the concept of a hotel (public house and
inn) pre-dates the Bible. In fact the Egyptians, Greeks and Romans built
pleasure and tourist resorts that rivaled today are massive complexes in
style and grandeur, if not in modern appliances.

The hospitality industry consists of a large of different types of

businesses with each one having its own means of producing income. The
main types of businesses in the category of hospitality are hotels, motels,
tourist centers, holiday homes, guest houses.
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Hospitality Sector

We will be dealing with the Hotel Industry, which is the most

important industry as far as Hospitality Industry is concerned.
The hospitality industry is a broad category of fields within
the service industry that includes lodging, event planning, theme
parks, transportation, cruise line, and additional fields within the tourism
industry. The hospitality industry is a several billion dollar industry that
mostly depends on the availability of leisure time and disposable income. A
hospitality unit such as a restaurant, hotel, or even an amusement park
consists of multiple groups such as facility maintenance, direct operations
(servers, housekeepers, porters, kitchen workers, bartenders, management,
marketing, and human resources etc.).
Usage rate or its inverse "vacancy rate" is an important variable for
the hospitality industry. Just as a factory owner would wish a productive
asset to be in use as much as possible (as opposed to having to pay fixed
costs while the factory isn't producing), so do restaurants, hotels, and theme
parks seek to maximize the number of customers they "process" in all
sectors. This led to formation of services with the aim to increase usage
rate provided by hotel consolidators. Information about required or offered
products are brokered on business networks used by vendors as well as
purchasers.
In looking various industries, "barriers to entry" by newcomers and
competitive advantages between current players are very important. Among
other things, hospitality industry players find advantage in old classics
(location), initial and ongoing investment support (reflected in the material
upkeep of facilities and the luxuries located therein)

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Hospitality Sector

HISTORY ORIGIN

The origin of the hotel/hospitality industry is obscure. However, the

Christian bible cites Christ's birth in the manger of an early inn. Historians
know that taverns (inns) serviced the travelers on the iters (the roads) of the
Roman Empire. Providing service to the relatively large number of
Crusaders between the 11th and 13th centuries was the responsibility of the
Catholic Church, which relied on one of its orders, The Knights
Hospitalers, to deliver those accommodations. Commercial travel in
Europe was an outgrowth of British commerce, which carried over to the
American colonies in the 1700's.

Mass travel is a modern phenomenon that emerged after World War

II. Mass tourism continues to grow as political freedom, economic
wherewithal, and social equality spread across the globe. With the large
powers at peace and the economic engine of development running at full
steam, international travel and, consequently, the hotel industry are poised
for decades of growth.

Estimates abound as to the importance and size of hotel keeping.

Certainly, its economic contribution is critical to the global economy
whether as a service to the business community or as a destination for
tourism development.

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Hospitality Sector

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Hospitality Sector

Global concepts

Ancient Greece
To the ancient Greeks, hospitality was a right. The host was expected
to make sure the needs of his guests were met. The ancient Greek
term xenia, or theoxenia when a god was involved, expressed this ritualized
guest-friendship relation. In Greek society a person's ability to abide the
laws to hospitality determined nobility and social standing.

Celtic cultures
Celtic societies valued the concept of hospitality, especially in terms
of protection. A host who granted a person's request for refuge was
expected not only to provide food and shelter to his/her guest, but to make
sure they did not come to harm while under their care.

India
In India hospitality is based on the principle Atithi Devo Bhava,
meaning "the guest is God". This principle is shown in a number of stories
where a guest is revealed to be a god who rewards the provider of
hospitality. From this stems the Indian practice of graciousness towards
guests at home and in all social situations.

Judaism
Judaism believes in the principle of Hachnasat Orchim, or
"welcoming guests," based largely on the example of Abraham in the Book
of Genesis. Hosts provide nourishment, comfort, and entertainment to their
guests.
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Hospitality Sector

Pashtun
One of the main principles of Pashtunwali is Melmastia. This is the
display of hospitality and profound respect to all visitors.

Top 10 International Hospitality Management

Schools in the World

Taylor Nelson Sofres (TNS), in a broad industry survey of senior

managers from luxury hotels in 2013, conducted a market survey of
hospitality employers regarding their opinions of the top ten hospitality
management schools. The result appeared as follows:

1. cole htelire de Lausanne, Switzerland

2. Glion Institute of Higher Education, Glion & Bull - Switzerland
3. Les Roches International School of Hotel Management, Bluche -
Switzerland
4. Cornell University, USA
5. Hotelschool The Hague, Netherlands
6. Les Roches International School of Hotel Management, Marbella -
Spain
7. Oxford Brookes University, United Kingdom
8. Blue Mountains International Hotel Management School, Leura -
Australia
9. Hotel School Vatel, France
10.Cesar Ritz Colleges, Le Bouveret, Brig - Switzerland

Hospitality Management is the study of the hospitality industry. A

degree in the subject may be awarded either by a university college

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Hospitality Sector

dedicated to the studies of hospitality management or a business

school with a relevant department. Degrees in hospitality management may
also be referred to as hotel management, hotel and tourism management, or
hotel administration. Degrees conferred in this academic field
include BA, Bachelor of Business Administration, BS, MS, MBA,
and PhD.

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Hospitality Sector

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Hospitality Sector

Hotel management structure

The size and magnitude of a hotel management structure vary

significantly depending on the size,features, and function of the hotel. A
small hotel normally consists of a small core management team. This
consists of the General Manager and a few key department managers who
directly handle day-to-day operations. On the other hand, a large, full-
service hotel often operates as a large corporation with an executive board
headed by the General Manager and consisting of key directors serving as
heads of individual hotel departments. Each department normally consists
of subordinate line-level managers and supervisors who handle day-to-day
operations.

Large/Full service hotel

A typical organizational chart for a large resort hotel operation may often
resemble the following:

- General Manager reports to Regional Vice President and/or

Ownership/Investors

General Manager
Deputy General Manager or Director of Operations or Resident
Manager
o Executive Assistant Manager or Duty Manager or Assistant
General Manager
o Director of Rooms
Front Office Manager

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Hospitality Sector

Revenue Manager
Reservations Manager
Night Manager
Head Night Auditor
PBX Supervisor
Guest Services Manager
Chief Concierge
Bell Captain
Valet Captain
o Executive Housekeeper
Assistant Housekeeping Manager
Floor Supervisor
Laundry Supervisor
Public Area/Custodial Supervisor
Laundry Manager
Director of Sales & Marketing
Senior Sales Manager
Leisure Sales Manager
Business Travel Sales Manager
Social Group Sales Manager
Corporate Group Sales Manager
Wedding Sales Manager
Senior Marketing Manager
Social Media Manager
Public Relations Manager
o Director of Food & Beverage

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Hospitality Sector

Restaurant Manager
Restaurant Supervisor
Executive Chef
Room Service Manager
Room Service Captain
Bar & Lounge Manager
Staff Cafeteria Chef
o Director of Events and Catering
Convention Services Manager
Event Manager
Catering Manager
Banquets Captain
o Hotel Controller
Accounting Manager
Certified Accountant(s)
o Director of Engineering
Assistant Engineering Manager
Facilities Manager
o Director of Human Resources
Human Resources Manager
Recruiting Manager
Training Manager
Labor Relations Manager
o Chief of Security
o Shift Supervising Officer
o Recreation Manager

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Hospitality Sector

o Information Technology Manager

Additional Management Positions may exist for additional facilities such as

hotel-owned golf courses, casinos, or spas.

Example for Small/Limited service hotel

A typical organizational chart for a small low-rise hotel operation may

resemble the following:

General Manager reports to Regional Director and/or Ownership/Investors

General Manager
Front Office Manager
Housekeeping Manager
Head of Maintenance
Sales & Marketing Manager
Food & Beverage Manager

Administrative functions for a small-scale hotel such as Accounting,

Payroll, and Human Resources are normally handled by a centralized
corporate office or solely by the General Manager. Additional auxiliary
functions such as security may be handled by third-party vendor services
contracted by the hotel on an as-needed basis.

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Hospitality Sector

Typical qualifications

The background and training required varies by management

position and duties involved. Industry experience has proven to be an
essential qualification for nearly any management occupation within the
lodging industry. An AA degree or certificate in hotel management is
desirable.

Industry experience is the most basic qualification for a management

occupation in a hotel. A degree in Hospitality management studies, Human
Resources or an equivalentBusiness degree is often required or strongly
preferred. A graduate degree may be desired for a General
Manager position but is often not required with sufficient management
experience and tenure. A graduate degree may however be required for a
corporate executive position or above such as a Regional Vice President
who oversees multiple hotel properties and General Managers.

Working conditions

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Hospitality Sector

Hotel managers are generally exposed to long shifts that include late
hours, weekends, and holidays due to the 24 hour operation of a hotel. The
common workplace environment in hotels is fast-paced, with high levels of
interaction with guests, employees, investors, and other managers.

Upper management consisting of senior managers, department

heads, and General Managers may enjoy a more desirable work schedule
consisting of a more traditionalbusiness day and having weekends and
holidays off.

Depending on the size of the hotel, the hotel manager's day may
include scheduling breaks, covering a window for check in or check out,
handling cash, reconciling bank accounts, writing a review for an
employee, disciplining an employee or handling dissatisfied guests. These
duties may vary each day depending on the needs of the property. The
manager's responsibility also includes knowing about all current local
events as well as the events being held on the hotel property. Managers will
be required to attend regular department and company meetings. A
hotel/casino property may require additional duties regarding special events
being held on property for casino complimentary guests.

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Hospitality Sector

Salary expectations

The median annual wage in 2011 of the 50,400 lodging managers in the
United States was $46,810.

Destination marketing organization

A destination marketing organization or convention and visitor
bureau promotes a town, city, region, or country in order to increase the
number of visitors. It promotes the development and marketing of a
destination, focusing on convention sales, tourism marketing, and services.

Such organizations promote economic development of a destination by

increasing visits from tourists and business travelers, which generates
overnight lodging for a destination, visits to restaurants, and shopping
revenues. Convention and visitor bureaus are the most important tourism
marketing organizations in their respective tourist destinations, as they are
directly responsible for marketing the destination brand through travel and
tourism "product awareness" to visitors. DMOs produce billions of dollars
in direct and indirect revenue and taxes for their destinations' economies
with their marketing and sales expertise.

Destination marketing organizations are often called travel,

convention, visitors, or tourism bureaux, welcome centers, information
centers and more. Regardless of the name, these organizations offer many
services to the traveling public.

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Hospitality Sector

Organization
Although many government and chamber of commerce bodies also
market destinations to visitors and meeting planners, most U.S. convention
and visitors bureaus (CVBs) are independent non-profit organizations.

Services
Typically, a convention and visitors bureau provides information
about a destination's lodging, dining, attractions, events, museums, arts and
culture, history and recreation. Some even provide bus services, insider
tips, top ten attraction and activity lists, blogs, photos, forums, free things
to do, season-specific activity suggestions and more. The organization
works with tourists and meeting planners to provide valuable information
on their local area. Their goal is to help make a visitor's trip or a conference
attendees' meeting a much more enjoyable and rewarding experience. In
many locations, they work closely with a convention center that will offer
large spaces for larger meetings, trade shows, and conventions than can be
accommodated in a single hotel. Usually, these organizations also have a
local office where one can find maps, brochures, travel professionals, local
insight, visitors guides, souvenirs and more.

Marketing initiatives
A convention and visitor bureau's marketing initiatives are typically
achieved through the following: trade association marketplaces, web pages,
advertising, distribution of promotional and collateral material, direct sales,
hosting familiarization tours for journalists and travel industry personnel,
and sponsoring other hospitality functions. The target decision maker of

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Hospitality Sector

these marketing initiatives is not typically a resident in the community.

Most often, if visitors are going to spend the night in a hotel, they reside at
least 100 miles away. Thus, the marketing activity usually takes place or is
directed outside the convention and visitors bureau's community.
Convention and visitors bureaus in larger destinations often will market
nationally and globally, while smaller cities may focus just on their state,
region, or specific niche tourism markets.

Hotels in India' have supply of 110,000 rooms. According to the

tourism ministry, 4.4 million tourists visited India last year and at current
trend, demand will soar to 10 million in 2010 - to accommodate 350
million domestic travelers. 'Hotels in India' has a shortage of 150,000
rooms fueling hotel room rates across India. With tremendous pull of
opportunity, India is a destination for hotel chains looking for growth. The
World Travel and Tourism Council, India, data says, India ranks 18th in
business travel and will be among the top 5 in this decade. Sources
estimate, demand is going to exceed supply by at least 100% over the next
2 years. Five-star hotels in metro cities allot same room, more than once a
day to different guests, receiving almost 24-hour rates from both guests
against 6-8 hours usage. With demand-supply disparity, 'Hotel India' room
rates are most likely to rise 25% annually and occupancy to rise by 80%,
over the next two years. 'Hotel Industry in India' is eroding its
competitiveness as a cost effective destination.
'India Hotel Industry' is adding about 60,000 quality rooms, currently in
different stages of planning and development and should be ready by 2012.
MNC Hotel Industry giants are flocking India and forging Joint Ventures to
earn their share of pie in the race. Government has approved 300 hotel

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Hospitality Sector

projects, nearly half of which are in the luxury range.

With the USD 23 billion software services sector pushing the Indian
economy skywards, more and more IT professionals are flocking to Indian
metro cities. 'Hotel Industry in India' is set to grow at 15% a year. This
figure will skyrocket in 2010, when Delhi hosts the Commonwealth
Games. Already, more than 50 international budget hotel chains are moving
into India to stake their turf. Therefore, with opportunities galore the future
'Scenario of Indian Hotel Industry' looks rosy.

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Hospitality Sector

TYPES OF SERVICES

Hotel operations vary in size, function, and cost. Most hotels and
major hospitality companies that operate hotels have set widely accepted
industry standards to classify hotel types. General categories include the
following;

Upscale luxury
An upscale full service hotel facility that offers luxury amenities, full
service accommodations, on-site full service restaurant(s), and the highest
level of personalized and professional service. Luxury hotels are normally
classified with at least a Four Diamond or Five Diamondstatus or a Four
or Five Star rating depending on the country and local classification
standards.

Full service
Full service hotels often contain upscale full-service facilities with a
large volume of full service accommodations, on-site full
servicerestaurant(s), and a variety of on-site amenities such as swimming
pools, a health club, children's activities, ballrooms, on-site conference
facilities, and other amenities.

Historic inns and boutique hotels

Boutique hotels are smaller independent non-branded hotels that
often contain upscale facilities of varying size in unique or intimate settings
with full service accommodations. Some historic inns and boutique hotels
may be classified as luxury hotels.

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Hospitality Sector

Focused or select service

Small to medium-sized hotel establishments that offer a limited

amount of on-site amenities that only cater and market to a specific
demographic of travelers, such as the single business traveler. Most focused
or select service hotels may still offer full service accommodations but may
lack leisure amenities such as an on-site restaurant or a swimming pool.
Examples include Courtyard by Marriott and Hilton Garden Inn.

Economy and limited service

Small to medium-sized hotel establishments that offer a very limited
amount of on-site amenities and often only offer basic accommodations
with little to no services, these facilities normally only cater and market to
a specific demographic of travelers, such as the budget-minded traveler
seeking a "no frills" accommodation. Limited service hotels often lack an
on-site restaurant but in return may offer a limited complimentary food and
beverage amenity such as on-site continental breakfast service. Examples
include Hampton Inn,Aloft, Holiday Inn Express, Fairfield Inn, Four Points
by Sheraton, and Days Inn.

Extended stay
Extended stay hotels are small to medium-sized hotels that offer
longer term full service accommodations compared to a traditional hotel.
Extended stay hotels may offer non-traditional pricing methods such as a
weekly rate that cater towards travelers in need of short-term
accommodations for an extended period of time. Similar to limited and
select service hotels, on-site amenities are normally limited and most

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Hospitality Sector

extended stay hotels lack an on-site restaurant. Examples

include Staybridge Suites, Homewood Suites by Hilton, Residence Inn by
Marriott, Element, and Extended Stay Hotels.

Timeshare and destination clubs

Timeshare and Destination clubs are a form of property ownership
also referred to as a vacation ownership involving the purchase and
ownership of an individual unit of accommodation for seasonal usage
during a specified period of time. Timeshare resorts often offer amenities
similar that of a Full service hotel with on-site restaurant(s), swimming
pools, recreation grounds, and other leisure-oriented amenities. Destination
clubs on the other hand may offer more exclusive private accommodations
such as private houses in a neighborhood-style setting. Examples of
timeshare brands include Hilton Grand Vacations, Marriott Vacation Club
International, Westgate Resorts, Starwood Vacation Ownership, and Disney
Vacation Club.

MOTEL
A motel is a small-sized low-rise lodging establishment similar to
that of a limited service hotel, but with direct access to individual rooms
from the car park. Common during the 1950s and 1960s, motels were often
located adjacent to a major road, where they were built on inexpensive land
at the edge of towns or along stretches of highways .

New motel construction is rare as hotel chains have been building economy
limited service franchised properties at freeway exits which compete for
largely the same clientele, largely saturating the market by the 1990s.

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Hospitality Sector

ABOUT HOTEL INDUSTRY

Prior to the 1980's, the Indian Hotel Industry was a nascent and slow
growing industry primarily consisting of relatively static, single hotel
companies. However, Asian games in 1982 and the subsequent partial
liberalization of the Indian economy generated tourism interest in India
with significant benefits accruing to the hotel and tourism sector in terms of
improved demand patterns. Fortunes of the hotel industry are tied to the
fortunes of tourism and the general business climate in the country, which
is why the economic liberalization initiatives implemented since 1991, led
to a soaring demand and supply gap in the hotel industry. This enabled
Indian hotel companies to increase their Average Room Realisations by
almost 50% between April 1994 and April 1997 and still enjoy extremely
high occupancies of above 80% for most of this period. During this time
Average Room Realizations of Indian 5 star hotels were comparable to
those prevailing in Singapore and Hong Kong and were among the highest
in the region. Also, during this time there was a noticeable shift in customer
mix of 5 star hotels as the share of business revenues far outweighed
revenues from any other segment.
Room supply in the five-star segment has grown by only 3 per cent
over the last five years and consequently this has not been an area of
concern in the past as new capacity additions in the five-star segment in the
metro cities have been slow. It is expected that in the metro cities, after
three to four years, the hotel industry is expected to face major problems on
the supply side. However, we would regard these as a long-term concern.
The slow growth in room supply in the past can be attributed to the
high land costs, long gestation periods, license problems and the scarcity of
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Hospitality Sector

good locations. The hotel sector boomed from 1992 to 1996. Led by the
lure of easy money and missed perception that hotels can be a simple
business, profitable (especially the five-star segment) and is easy to get a
foreign tie-up prompted many companies in the construction and real estate
business to enter the arena.

As the growth in metro cities is getting saturated, hotel chains are

looking on to this segment for future growth. However, since 1997 political
uncertainty and a general economic slowdown coupled with slackened
tourist arrivals have resulted in steadily falling
occupancies and very marginal increases in
ARRs. In fact the general trend among hotel
companies in FY97 and FY98 has been to offer
heavy discounts in order to attract customers.
Thus the over reliance of Indian five star hotels
on the business traveler during the last few years has come back to haunt
the industry in the wake of depressed business sentiment in the country.

The hotel industry has reported impressive earnings and revenue

growth for the year ended March 2001. This was after a slack period in the
financial year 2000, when net profits dipped on a negative sales growth.
The industry is again headed for a hit, with the attacks on the world's
largest financial centre in the US.

Perishability:
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Hospitality Sector

If the full capacity of the services is not utilized, the service becomes
perishable. If a hotel having an accommodation facility of 100 rooms is
able to lease out only 70 rooms on a particular day, then the remaining 30
rooms or 30% capacity gets perished and can never be reused. The product
is perishable -- a room not sold tonight is lost forever. The location and
product inventory (rooms) are fixed -- they cannot be moved as demand
patterns change. Entry into the business takes large amounts of capital --
creating huge fixed costs that necessitate high occupancies to achieve a
break-even level of volume.

Variability:
The fact that service quality is difficult to control compounds the
marketer's task. Intangibility alone would not be such a problem in
customers could be sure that the services they were to receive would be just
like the successful experiences their neighbors were so pleased with. But in
fact, customers know that services can vary greatly. Services are
performances, often involving the cooperation and skill of several

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Hospitality Sector

individuals, and are therefore unlikely to be same every time. This potential
variability of service quality raises the risk faced by the consumer.

The service provider must find ways to reduce the perceived risk due
to variability. One method is to design services to be as uniform as possible
- by training personnel to follow closely defined procedures, or by
automating as many aspects of the services as possible. The appeal of some
service personnel - particularly, the hotel industry- lies in their spontaneity
and flexibility to address individual customer needs. The danger with too
much standardization is that these attributes may be designed right out of
the services, therefore reducing much of their appeal. A second way to deal
with perceived risk from variability is to provide satisfaction guarantees or
other assurances that the customer will not be stuck with a bad result.

Inseparability:
This characteristic is interpreted differently by different service
marketing marketers, but all interpretations point out that special operation
problems exist for the firm's managers. One interpretation of this term is
the inseparability of customers from the service delivery process. In
particular, many services require the participation of the customer in the
production process. Unlike goods, which are often produced in a location
far removed from the customer and totally under the control of the
manufacturing firm, service production often requires the presence and
active participation of the customer - and of other customers. Depending
upon the skill, attitude, cooperation and so on that customers bring to the
service encounter, the results can be good or bad, but in any event are hard
to standardize.
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Hospitality Sector

Intangibility:
Intangible services are difficult to sell because they cannot be
produced and displayed ahead of time. They are therefore harder to
communicate to prospective customers. Marketers of services can reduce
these risks by stressing tangible cues that will convey reassurance and
quality to the prospective customers. These tangible cues range from the
firm's physical facilities to the appearance and demeanor of its staff to the
letterhead on its stationery to its logo.

In case of hotel industry, the core benefit is getting good food, good
boarding and lodging facilities. The tangible services are those, which one
can touch and taste. Thus hotel industry is tangible.

Profitability in the hotel Industry is dependent on many

factors:
Tourism:
This is the primary factor for the hotel industry. India has great
potential of becoming a major stop for tourists. However, lack of
infrastructure has kept the foreign tourist at bay. The government has
been actively participating in propagating India as an oasis for global
travellers. India has always conjured up a fascinating image in the mind
of foreign tourists. India has an advantage of having diverse cultures,
languages and religions, which makes it an exciting tourist destination
for people all over the world.

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Hospitality Sector

Business factor:
Liberalization has brought home a new class of MNCs, which has
increased the number of corporate travellers visiting India. Other than
metros, developing cities have also come into the limelight and hence
there has been an increase in demand for hotels in various places. This
class of business travellers has reduced their dependence on seasonal
tourism. The industry is again headed for a hit, with the attacks on the
world's largest financial centre in the US.

Room occupancy:
The ARR and occupancy are the other critical factors that determine
profitability. These, in turn, depend on the location, star rating,
amenities and quality of service. The occupancy of Indian hotels and the
ARR has been on the decline for the past three to four years due to the
turbulent socio-political environment in the nation and also because of
the East Asian economic crisis. However, the hotel industry reported
impressive earnings and revenue growth for the year ended March 2003.

Seasonality:
India being a tropical nation witnesses an inflow of leisure tourists,
mainly during the winter months of October to March. Hence the hotel
industry has a better second half. In the first half of the year, local
tourists prefer April to May and October in the second half due to
summer and Diwali vacations respectively. Other months being off-
season periods, many hotels offer heavy discounts on room tariff to

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Hospitality Sector

ensure repeat customers such as corporates, airline crewmembers and

tour groups.

Political scenario:
In the past couple of years, the hotel industry has been going through
a lean phase. Room occupancy has been on a decline, mainly due to a
steep fall in both business and tourist arrivals. Though the exorbitant
rates of five-star hotels as compared to the quality of services provided
are one of the factors for the decline, the fluid political environment has
also had a negative impact and foiled the dreams of the Indian hotel
industry.

Tax structure:
This industry is one of the heavily
taxed sectors of India. State
governments have levied various taxes
like expenditure tax, luxury tax and
sales tax. This is apart from the income
tax levied by the central government. These taxes are as high as 30 per
cent in cities like Chennai, while other Asian countries have a tax
structure of 4 to 5 per cent. As a result, Indian hotels are more expensive
than their Asian counterparts.

Industry bottlenecks:
Progress of the industry is held hostage to various bottlenecks
existing within the industry like high variable costs. The hotel industry

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Hospitality Sector

is reeling under high variable expenses. A high wage bill, maintenance

costs and overhead expenses mark the industry. Domestic hotel chains
have a high man-room ratio as compared to their overseas counterpart.

Differential pricing:
Hotels in India typically offer discounts on published room tariffs to
many clients. As a result, though the occupancy rate of these hotels
increases, the ARR does not increase proportionally. However, the
magnitude of discounts varies depending on the nature of the client
location and size of the hotel. Furthermore, in the dual tariff rate system,
there is a domestic currency rate for local travellers and a dollar rate
applying to foreign travellers. Hence there is need of a common
yardstick for tariff rates.

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Hospitality Sector

Market Trends

With the demand curve in the metros stagnating, smaller towns have
emerged as potential growth areas. Thus, chain hotels like IHCL, EIH and
ITCH are better placed than single-location hotels like BHL and AHL.

Luxury, leisure and heritage hotels are concentrated in tourist circuits

like Delhi-Agra-Jaipur, Mysore-Bangalore, Bhubansehwar-Puri-Konark,
Jaisalmer-Jodhpur-Bikaner and Mahabalipuram-Pondicherry.

Various MNCs have started entering the Indian hotel industry. Le

Meridian plans to set up 17 hotels in the country. It already has three five-
star hotels at Delhi, Bangalore and Pune; the Mumbai branch was recently
inaugurated. The company also is coming up with more hotels at Goa and
Cochin in the next couple of years. Carlson Restaurant Worldwide, Accord
Asia Pacific, Best Western International and Bass Hotels are the other
leading multinational hotel groups in India.

Most players, with the exception of IHCL and EIH, have entered into
a marketing tie-up with major international hotel chains. For example, ITC-
Sheraton, Leela-Kempinski and AHL-Hyatt Regency are well-established
collaborations. BHL, too, has a tie-up with the Inter-Continental Hotels
Corporation. The Indian partners gain from the brand following of the
worldwide international chain and get global exposure. International hotel
chains do not stand to lose either. They get an opportunity to test Indian
waters without setting up their own infrastructure.

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Hospitality Sector

Types of Accommodation in India

(On The Basis Of Standards)

Like most of the countries in world, India also has hotels divided in
different categories depending on their location, facilities, infrastructure,
and amenities provided. All the star hotels in India are government
approved with continuous control on the quality of services offered.

Five star hotels

The most luxurious and conveniently located hotels in India are

grouped under Five Star Deluxe Hotel Category. Five Star Deluxe hotels in
India are globally competitive in the quality of service provided, facilities
offered, and accommodation options. These hotels are located primarily in
metropolitan cities like New Delhi and Mumbai and major tourist
destinations like Jaipur, Agra, and Goa. These are top of the line hotels
located mostly in the big cities. These hotels provide all the modern
facilities for accommodation and recreation matching international
standards in hospitality. Many of these hotels are situated in the Central
Business Districts of the metropolitan cities or near the centers of
transportation providing exceptional value for the business travelers.

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Hospitality Sector

Four Star Hotels

A rung below five star hotels, these hotels provide all the modern
amenities to the travelers with a limited budget. Quality of the services is
almost as high as the five stars and above categories. These kinds of hotels
are there for the travelers with a limited budget or for the places, which
might not get the tourist traffic associated with larger cities.

Three Star Hotels

These are mainly economy class hotels located in the bigger and
smaller cities and catering to the needs of budget travelers. Lesser in
amenities and facilities, these hotels are value for money and gives good
accommodation and related services on the reduced price. Services would
be the stripped down version of higher categories of hotels but sufficient to
fulfill your basic needs.

Two Star Hotels

These hotels are most available in the small cities and in particular
areas of larger cities. Catering to the backpacker tourist traffic, these hotels
provide all the basic facilities needed for general accommodation and
offers lowest prices.

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Hospitality Sector

One Star Hotels

The hotels with most basic facilities, small number of rooms, and
location in the far-flung areas are grouped under One Star Hotel category.
These hotels are best when you are looking for cheapest available
accommodation option (apart from camps and hostels).
(On The Basis Of Nature)

Heritage Hotels

Heritage hotels in India are best if you are looking for sheer
elegance, luxury, and royal treatment. They are not just another
accommodation options but tourist attractions in themselves. Exquisitely
designed and decorated, meticulously preserved, high standards of service,
and ethnic cultural motifs helps the tourists get the complete experience of
an India that otherwise exists only in the history books.
E.g. The Lake Palace Hotel, Udaipur

Beach Resorts Hotels

Peninsular India bounded by Arabian Sea, Bay of Bengal, Indian

Ocean and the two emerald archipelagos of Lakshwadeep and Andaman
and Nicobar have a long coastline of around 7500 km, offering an amazing
array of beaches, some popular, some not so well known.

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Hospitality Sector

Wildlife Resort Hotels

A wildlife tour is incomplete if you dont actually live in a forest for

a few days. Imagine living in a rest house or a tent the midst of the dense
wilderness, and waking up to the twittering of birds, or maybe the roar of a
lion! Day trips alone are certainly not enough to show you the true majesty
of the wild, so why not try this too?

Government Approved Hotels

These are the hotels, which might not have applied for star
categorization or small enough to find them in the list. Many of the wildlife
resorts, lodges, and hostels are government approved providing a minimum
level of accommodation facilities at far off places.

Guesthouses

These provide the minimum facility of food & beverages along with
accommodation. The standard of accommodation is not as good as a hotel.
The menu offered is not as elaborate as a hotel or similar establishments.
Services are not very professional or specialized. Expenses are very much
less in comparison to the above mentioned other establishments. Generally
people who cant afford the expenses or the luxuries of higher-class
establishments make use of these facilities.

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Hospitality Sector

Dormitories

Dormitories mean a building containing one or more

accommodation units and may contain shared kitchen facilities, for use by
students enrolled at a post-secondary institution. Dormitories are set up to
offer a good environment for studying, and to experience independent
citizen life. The dormitory rooms are furnished with beds, study tables,
chairs, washstands, and telephones. Further, dormitories are equipped with
lounges, laundry rooms, and kitchenettes. Students, therefore, can start
studying only if they bring their personal belongings.

Holiday Villages

Holiday villages are usually large, self-contained resorts and ideal

for people who want a lively holiday with children's clubs, organized
activities and evening entertainments laid on. Many holiday villages offer
children's clubs, run by qualified English speaking staff, for babies through
to late teens. These are invaluable for families, as they not only give
children a chance to meet new friends and have fun, but also give adults
some time off too. However, though standards are improving markedly,
somehow this is never a really smart option.

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Hospitality Sector

Hotel Industry in Mumbai

The market of hotels in Mumbai is very big. There are almost every
type of hotel in India to various income groups. The hotels are classified
according to the stars and then graded. The main types of hotels are:

5 Star Deluxe Hotels

These hotels are a step ahead of normal 5 star hotels. They have
some facilities, which the 5 star hotels may not have. Most of the
bigger hotels in Mumbai are 5 star deluxe hotels. Some of the
examples of 5 star deluxe hotels are Hotel Grand Hyatt, Hotel Hilton
Towers, Hotel Hyatt Regency and Hotel Taj Mahal

5 Star Hotels
These hotels are more or less same as 5 star deluxe hotels, but
they may not have the facilities and the features that 5 star deluxe
hotels may have. Some of the important 5 star hotels in Mumbai are
Hotel Holiday Inn, Hotel Orchid, Hotel Sea Princess and Hotel
Ramada Plaza Palm

4 Star hotels
These hotels dont have facilities as good as compared to that
of 5 star deluxe and 5 star hotels. Some of the important hotels in
Mumbai are Hotel Best Western Emerald, Hotel Bawa International,
Hotel Fariyas and Hotel Juhu Plaza.

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Hospitality Sector

The other types of hotels are 3 star and 2 star hotels. Some examples of 3
star hotels are Hotel Ajanta, Hotel Atithi Mumbai, Hotel The Ambassador
whereas as far 2 star hotels are concerned these are some of the important
ones: Hotel Bawa Continental, Hotel Chateau Windsor and Hotel Diplomat
Mumbai
.

Total Product Concept

CORE PRODUCT

At the very center is the core product, which satisfies the basic need
of the consumer. The core product in the hotel industry is
ACCOMODATION. The role of Hotel International is to provide basic
accommodation facilities. Like a bed for the night and a room with a
bathroom.

FORMAL PRODUCT

When consumers expectations grow synchronized with increased

competition, the marketer offers some tangibility to the existing core
product, that is, some more features. Consumers prefer to pay more for
these additions and the marketers have more to offer than the competition.

International Hotels have to provide some additional features like:

Hygiene: It comes next to the basic function of accommodation. Hygiene

plays a very important role in the status of a hotel. An unhygienic hotel will

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Hospitality Sector

never be able to attract lot of people, especially if it has to attract a lot of

people from foreign countries where the hygiene conditions are top notch.

Room Service: When people go to hotels, they would expect good and
prompt room service. This means, when they order food or ask for any
service, a hotel that provides it promptly will have a great edge over the
other hotels.

Price: The price of the rooms should be such that both the rich and the
middle class people can afford them. Not everyone can afford a very
expensive room and also not everyone will like to stay in a room that does
not have some luxurious facilities.

Etiquettes: The people who come in contact with the customers, that is,
the reception people, room service people, and waiters, all have to be
trained well to behave in a manner that pleases the customer. They should
be civilized, cultured and polite.

AUGMENTED PRODUCTS

With further higher expectations of the customer- again synchronized

with intense competition- marketers offer more and more intangible
features. All the extra things provided are service oriented. In the case of
Hotels the augmented products include:

the traditions and heritage of India has made the Taj brand a symbol of
luxury and service the world over. The Taj group of hotels is grouped into

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Hospitality Sector

strategic business units to get consistency across the different units in the
same brand and standardize the product and service across the brands,
making them distinct and identifiable. These brands have been classified as
Luxury, Business and Leisure.

TAJ LUXURY HOTELS

The Taj Luxury hotels capture the essence of the Taj experience.
Located in the main political and commercial cities of India they maintain
the highest standards in all the services they offer. With exquisitely
appointed rooms and modern comforts, these hotels offer the finest
standards of hospitality and service.

Standing testimony to the quality of service, a number of the luxury

hotels of the Taj group are members of the leading hotels of the world.
These include: The Taj Mahal Hotel (Mumbai), Taj Palace Hotel (New
Delhi), The Taj Mahal Hotel (New Delhi), Taj Bengal (Calcutta), The Taj
West End (Bangalore) and the Taj Coromandel Hotel (Chennai).

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Hospitality Sector

TAJ BUSINESS HOTELS

Located in the heart of Indias key commercial cities and towns, the
Taj business hotels provide every modern facility at particularly attractive
room rates. These international style hotels meet the growing needs of
business travelers visiting cities, which are rapidly industrializing and
expanding. The best hotels in their environment, the Taj business hotels
offer multi cuisine restaurants and the best business facilities in the city.
The company anticipates that a significant portion of its long-term growth
will come from the expansion of this brand and is actively seeking ways of
strengthening and expanding this brand.

TAJ LEISURE HOTELS

At the Taj leisure hotels, pleasure seekers, the curious and those
simply wanting to get away from it all can do just that. These properties
include idyllic beach resorts, genuine palaces, turn of the century garden
retreats, hotels located close to historic monuments, pilgrim centers and
some of Indias best wildlife sanctuaries.

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Hospitality Sector

THE 8PS WITH REFERENCE TO THE TAJ MAHAL

HOTEL

Product Element

This gracious turn-of-the century hotel is located 32 km from the

airport and minutes away from Mumbai's commercial, shopping and
banking districts. The Taj Mahal Hotel has an old-world Heritage Wing and
a contemporary Tower Wing. The hotel's premium suites have been used by
royalty and Heads of State.

Taj believes that their core product is space. This space is

supplemented with the services they provide like the restaurants, health
club, banquets, discotheque, bar, business centers etc. Their other
supplementary products also include travel arrangements, ticketing, airport
pick-ups, sightseeing etc. The hotels various other departments like the
house keeping, front office, food and beverage, room service and
maintenance, all provide the supplementary services to the customer.

Tower Wing Rooms: With easy access to the Business Centre, these
contemporary rooms offer guest amenities like Internet connectivity, 2-line
speaker phones with international direct dial facility and voice mail. Mini
bar, personal safe, channel music and television with satellite programmes.
A complimentary in-room fax can be provided on request. Guests have a
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Hospitality Sector

choice of rooms that overlook the city or face the Gateway of India and the
Arabian Sea.

Heritage Wing Rooms: These rooms are renowned for their architecture
and exude an aura of old-world elegance. Each corridor in this Wing
resembles an art gallery, and the design, dcor and furnishing ensure that
no two rooms are alike. Guests have a choice of rooms that overlook the
city or pool or face the Gateway of India and the Arabian Sea.

Taj Club:
Located on the top floors of the Heritage Wing, Taj Club is designed
for the discerning business traveler. Guest amenities and services include
complimentary airport limousine transfers, private check-in at the Club
desk, in-room fax, personal safe, a complimentary bottle of wine, valet
service and complimentary deluxe Continental breakfast. Taj Club guests
can also enjoy complimentary tea/coffee throughout the day and cocktails
during the Cocktail Hour at the Club Lounge. Taj Club also offers guests
exclusive Meeting Rooms and a Business Service Unit on the Club Floor.

Suites:
Choose from elegantly appointed Junior Suites, Executive Suites,
tastefully decorated Large Suites, newly renovated Luxury Suites or
spacious, plush Grand Luxe Suites. The finest suites at The Taj Mahal are
the luxuriously appointed Presidential Suites. Each of these suites is
decorated with original paintings and antiques that transport guests into a
world of regal luxury and grandeur. Grand Luxe and Presidential Suite
guests can also avail of a personal Valet Service.
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Hospitality Sector

Broadband wireless Internet access at select Taj hotels

Now when you stay at select Taj hotels in Mumbai (including The Taj
Mahal Hotel), New Delhi, Kolkata, Chennai, Bangalore and Hyderabad,
you no longer need to be in your room or at the Business Centre to use the
Internet. Multiple 'hot spots' located across the hotels lets you get onto the
Internet from almost any place in the hotel - quickly and without plugging
in!
Facilities and Services
Swimming pool, fitness centre and spa, beauty parlour, barber shop,
travel desk, car rental, pastry shop, book shop, shopping arcade, currency
exchange, doctor-on-call and babysitting. Complimentary use of steam,
Jacuzzi and gymnasium at the fitness centre for all guests. Arrangements
for golf, badminton, squash, billiards, tennis and table tennis on request.
24-hour room service and laundry service

Place and Time:

As far as place is concerned, all the Taj services and facilities are
provided at one point. To ensure timely delivery of their services, they have
set processes in place and incase of failure or delay of service, they have
built in contingencies and trained their staff to communicate the delay to
the customer in the right manner.

In case of breakdown of the elevator, the Room Service makes use of

the elevator in the other wing to ensure timely delivery to the customer.
They also have complaint management systems where they encourage
customer feedback. Each of their feedback form is numbered and hence if

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Hospitality Sector

any feedback form is missing, the staff is held liable for it. This is to ensure
that the management views every feedback form.

To ensure standardization in their services, they have Standard

Operating Procedures (SOP), e.g. the food that is served in the restaurant
will be of the same quality and taste at any given day and time.

Process:
In order to ensure that the core product and the supplementary
product is developed and delivered in the right manner and at the right
time, the hotel has formed certain set processes. When the room is being
prepared for customer check-in, the housekeeping department makes sure
that all the room amenities are provided as per the checklist. For e.g.
certain room amenities like 3 embroidered laundry bags, 2 closed slippers
with logo, 2 shoe bags, etc. are provided by The Taj Mahal Hotel.
Infact the processes are so specifically laid down that hotel staff is even
advised on what to say and what words to use while talking to a customer.
The following example will illustrate this better. When a customer asks for
something to be done instead of saying no problem, the staff is taught to
say most certainly.

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Hospitality Sector

Productivity:
The Taj as a hotel does not compare itself to only Indian hotels, but
even with the hotels internationally as it claims to have World Class
Quality. In order to ensure that its inputs are transformed into desired
outputs, they provide extensive training to their employees irrespective of
the field they come from.
The Taj Mahal hotel has various quality tools to enhance quality.
This involves every department, as they have to make sure that the raw
material as well as the finished product is of top quality. At The Taj, it is the
responsibility of the purchase department to make sure that the raw
materials are purchased at the Right Time, Right Place, Right Cost and
from the Right Source, in order to avoid any hindrances in their
productivity and quality.
Taj has developed enormous credibility in terms of trustworthiness
being the oldest brand of hotels, with the reputation of being World class
and honest service provider. Security, Communication and understanding
the customer psychology are special assets the Taj management has
mastered with time.

People

People here mean the customers, employees, management and the

society. It is the final customer who is to be satisfied and this can be done
only with the help of the employees, who are directed and guided by the
management. In the end the final motive of Taj is to provide consistently
and relentlessly an Indian experience of warmth and hospitality by
anticipating and exceeding guest expectations. They also provide various
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Hospitality Sector

customer services such as The Taj Inner Circle Group, Taj Advantage
and Taj Epicure.

In order to ensure the productivity of their employees they provide

them with various facilities such as medical help, consultation, traveling
facilities, perks and bonuses. The employers here each have their own
lockers in which they keep their uniforms and other belongings, they also
have bunkers with small beds so that the employees working in shifts can
catch some sleep if need be.

In spite of the fact that human resources management is such an

integral part of the service industry of which hotels form a major part, its
role has begun to be acknowledged only recently. The Taj Group of Hotels
is probably one of the first Indian hotel chains to have recognised and
respected the significance of HR in the hospitality industry. Says K S
Srinivasan, GM-corporate human resources, The Taj Mahal Hotel,
Mumbai, Functions like sales, marketing and HR are not hotel-specific,
unlike those of chefs, housekeepers, bartenders, stewards and the like. They
are, in fact, common to all businesses.

He asserts that HR, as a function, is like a partner in the business in

any organisation and not a stand-alone function. It is the key to effective
utilisation of the manpower that the hotel industry is so dependent on. And
the Indian hotel industry is among the most labour intensive since the
number of people serving guests is the maximum here. It is precisely for
this reason that the significance of HR requires to be appreciated.

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Hospitality Sector

It is not merely monetary rewards that employees seek today; the

intriguing aspect is the learning experience that the job promises. It is
precisely with this very thought in mind that the Taj Group of Hotels, a
Tata enterprise and one of the oldest hotel chains in the country, decided on
a training programme for the operations trainees, explains Srinivasan.

Interactive sessions between the Taj management and the director of

the Tata Institute of Social Sciences (TISS), a Tata educational and research
institution, led to an interesting and comprehensive tailor-made course
curriculum being chalked out. Thus was born the Taj TISS HR Associate
Programme, a one-year course comprising four modules that are designed
to give equal importance to and impart balanced knowledge of both the
theoretical and the practical aspects of all HR-related functions of the hotel
industry.

After finalising the course details, the Taj made announcements

about the course, offering interested trainees with two to three years of
work experience an opportunity to apply. The response was encouraging
and five trainees were shortlisted for the first batch of the training
programme.

Each of the four modules have four sections. The first stage consists
of theoretical lessons, providing a sound background to the practical
application of the knowledge required of them in the second stage. In the
third stage, the students return to the Institute and their performance is
evaluated by professors of TISS. In the fourth and final stage, grades are
awarded. While practical training sessions for the first three modules have
been organised at the Taj hotels across the country, the fourth modules

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Hospitality Sector

practical sessions had students of the first batch working in Tata companies
such as TISCO and Tata Consultancy Services (TCS). This gave them a
wider scope and more exposure, besides making them realise that HR skills
in a service-specific industry like the hotels are much more challenging
than their application in the manufacturing or any other industry, observed
Srinivasan. He said he himself had started off in the manufacturing industry
and only later did he move over to the service industry. I have been in the
industry for over a decade now and am well-set here, he added.

The key to retaining staff and ensuring the success of any business
organisation lies with the HR department and its effective functioning. Any
organisation, including hotels, incurs heavy expenditure on their
employees, especially between the time of recruitment and the employees
acquisition of the skills imparted during their training. It can be inferred,
therefore, that a high employee turnover rate lowers the efficiency of the
staff as a whole owing to their constant on-the-job training and skill
enhancement.
An organisation must be able to create for itself a unique place and
image in the minds of the employees, both present and prospective. This
enables the employees to aspire to be a part of the organisation, giving it
their very best, says Srinivasan. Though the training programme has and
will continue to cost us money, we believe that it is truly worthy
investment, he added.

The Taj group, says Srinivasan, is an expanding organisation and

we are a people-oriented company. What we need are people who can
match our organisational standards. We are also looking to create and
ensure a constant supply of good quality HR professionals, which is why
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Hospitality Sector

we decided to impart training of an extremely specialised nature to our

management trainees. I have observed them at the end of the programme
and must say that they appear all charged up and raring to go, he
remarked.

The Taj-TISS joint programme is expected to create a demonstration

effect in the industry with more hotel groups placing additional emphasis
on the HR training programmes.

To be a successful HR professional, what is required most is the

aspirants ability to challenge themselves as well as their colleagues. Only
then can they get the very best from themselves and their team.
Challenges in the HR field are immense and since it is so people-centric, it
is only obvious that professionals should have strong people-management
skills, explains Srinivasan. Besides this, a right attitude towards the job
and life in general is extremely essential. As a manager myself, what I
would look for in an applicant would be the ability to fit into my
organisation perfectly and be emotionally balanced, competent and above
all, be a cultural fit, fulfiling the basic values that the Taj is known for,
concludes Srinivasan.

Promotion and Education

They carry out their promotions by the means of calendars, monthly

letter to their Inner Circle Customers, informing them about their
upcoming events and offers. Taj has television advertisements on popular
channels like CNBC, and print ads in magazines and newspapers. Taj takes
part in exhibitions like wherein they promote their holiday packages. They

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Hospitality Sector

also have special offers during the off-season etc. Also The Taj is the
only hotel chain to personify itself and in promotion campaigns and
advertisements the Taj is often referred to as She

Physical Evidence

The Taj Mahal Hotel was built in 1903. The architect was Sitaram
Vaidya. It had a very ethnic look to it, which kept up their image of
providing an Indian experience of warmth and hospitality. They realized
that modernization is the name of the game and had The Taj redesigned by
Mr. Chambers, Mr. Wilkes and Mr. Bernard from Singapore.
Some of the recent renovations that have been carried out at the Taj are:
a. The exterior has been given a new and modern look while still
retaining the old world charm of the building.
b. The entrance has splendidly carved bronze and glass doors
Soaring onyx columns stretch to a luminous alabaster ceiling;
while underfoot, rich hand-woven carpets set off a magnificent
floor painstakingly inlaid with semi-precious stones. The eclectic
mix of western contemporary style and traditional Indian motifs
creates a veritable feast for the sense.
c. The city's most exclusive restaurant, The Zodiac Grill
provides a graceful setting for an intimate dining experience.
Under a magnificent trompe l'oeil dome, they serve the finest
gourmet cuisine complemented by an extensive wine list, as a
classically trained pianist entertains patrons.

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Hospitality Sector

Price and Other User Costs

Taj realizes that their prices are high and not affordable by all, but
this is due to various overheads that it incurs and the superior quality that it
offers. For e.g. a roadside sandwich seller sells his sandwich for Rs.10 as
he has no overheads and has no quality standards to maintain, like the
quality of the bread and the vegetables. But at The Taj, they serve the best
quality and also incur overhead expenses.

Also the target audience that the Taj caters to are the ones who come
to the Taj for its ambience and world class standards, therefore they say
that their prices is justified as they help The Taj retain the exclusivity that it
stands for.

The Taj Blueprint

When the service provider comes in contact with the customer, he

needs to surpass the customers expectations, for which a blue print is made
and followed by the service provider, in this case the Taj Mahal Hotel.

The Competitors

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Hospitality Sector

The hotel being the one of the best hotels in Mumbai, it faces a tough
competition from many other hotels in Mumbai. Some of the main
competitors for this hotel are as follows:

Hotel Grand Hyatt

Offering luxurious hotel accommodation, Grand Hyatt Mumbai's 547

guest rooms and suites are amongst the most spacious in the city providing
classic comfort and a host of amenities. For long-stay guests who are
staying in Mumbai for more than 30 days, the hotel's Grand Hyatt
Residences enable visitors to enjoy all the conveniences of a hotel with the
warmth and comfort of home. Comprising one, two and three bedroom
apartments, the hotel's serviced apartments are unique in Mumbai.

32 ITC One rooms - The new wing unveils a whole new world of
exclusivity for up-market business travellers with spacious and elegantly-
furnished rooms. 77 Sheraton Towers rooms - The exclusive Towers Club
comes with its own restaurant, library, bar, 24-hour tea/coffee service and
Club Hour.

Hotel JW Marriott

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Hospitality Sector

Total number of rooms: 358 274 Air Conditioned Standard Rooms

48 Air Conditioned Deluxe Rooms 36 Air Conditioned Suites.

Hotel Le Royal Meridien

Each of the 171 rooms is a statement in unparalleled luxury.
Tastefully furnished with amenities comparable to the finest European
hotels, the rooms set unmatched standards of sheer unadulterated luxury.
The elite Royal Club floor provides exclusive privileges for the discerning.
Guests at the Royal Club are entitled to additional benefits. Butler services,
a range of International luxury amenities and personalised service all
contribute in making for a truly momentous experience.

Hotel Sun N Sand

120 rooms including 10 theme based suites, overlooking the cool
blue waters of the Arabian Sea, with all modern amenities, which cater to
the needs of business.

SWOT Analysis of Taj Mahal Hotel

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Hospitality Sector

SWOT Analysis is the basis on which you analyse some thing. The
term SWOT refers to Strength, Weakness, Opportunities and Threats. The
following is the SWOT Analysis of Hotel Taj Mahal.

Strengths:
Strengths are basically the assets of the company or service. It is
that important factor which differentiates it from other products or services.
The main strengths of Hotel Taj Mahal are as follows:
1. The age old trust and fame backed by the TATA Group who are
considered one of the best companies in the world.
2. The history associated with the hotel and the changes it has gone
through maintaining the same aura.
3. The advantages of being close to the airport and situated close to
the famous landmark of Mumbai, the Gateway of India.
4. The quality service assured by the staff and the hospitality given
by the hotel. The clientele serves by the hotel.
5. The pioneer hotel being an example to other hotels around
Mumbai.

Weakness:
Weakness refers to the weaknesses the Hotel is facing. Some of the
weaknesses of Hotel Taj Mahal are:
1. The competition it is facing from various hotels.
2. The age-old building and the structure.
3. Competition from its twin Taj Mahal Hotel which is newly
constructed close to it.
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Hospitality Sector

4. The Pricing (there are hotels which offer lower prices compared
to that of Taj Mahal hotel).

Opportunities:
These are basically the chances to obtain maximum advantages from
the products or services offered. The opportunities of Taj Mahal hotel are:
1. The number of hotels, which the Taj Group has under its belt.
2. The ever-growing tourism industry in India.
3. The legacy associated with the hotel, which will ensure the
Taj Group to initiate more hotels in the near future.

Threats:
Threats are basically the dangers which any product or service faces
either by competition or any other situations. Some of the main threats
associated to Hotel Taj Mahal are:
1. The ever growing competition from other hotels
2. Natural Calamities i.e. proximity to the Sea will harm the
hotel in big way. Any natural incident like Tsunami may
harm the hotel in a big way.
3. Any Political or Terrorist activities such as Bomb Blast or
killings will affect the sales and the occupancy levels. For
example the bombings near the Gateway of India will also
affect the hotel in a very disturbing way. As it is in the prime
location in the city it is always susceptible to various
activities by terrorists.

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WHY THE TAJ IS REGARDED AMONG THE BEST IN

THE INDUSTRY??

The Taj Mahal Hotel, Mumbai has won the coveted award of the
Best Business Hotel in India for a second consecutive time. The award
was announced last week at a glittering ceremony at Singapore during the
3rd Annual Best Business Hotels in Asia Awards 2000.

The award is instituted jointly by Bloomberg TV and Business Asia

with the aim to recognize excellence in hotel industry and encourage better
standards for the crucial business travel sector.

Readers of the Business Asia and viewers of the Bloomberg were

invited to vote for their preferred Hotel in each country through a coupon
that appeared in every issue of Business Asia from July to September.
Approximately 20,000 votes were received for the award from readers of
Business Asia and Bloomberg TV viewers.

The award was judged by a panel of eminent business leaders

including Mr. Ken Cowley, Director of News Corp, Mr. Pater Charlton,
Publisher of Business Asia, Mr. Cameron Cooper, Editor of Business Asia
and Mr. Robert Stiles, Managing Director Asia Pacific of Sonnenblick-
Goldman and board member of "Hotels" magazine. The judging panel met
in Sydney in February 2000 and selected a list of 85 hotels from 14
countries.

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The nominated hotels were judged on a range of criteria from special

business services to business clubs and lounge facilities, conferences and
convention facilities and guest reward and incentive programmes. The
votes were counted and tallied by a leading firm Gould Ralph and
Company Chartered Accountants in Sydney.

Says Mr Subir Bhowmick, Chief Operating Officer, Luxury Hotels

of the Taj Group "We are honoured to receive this prestigious award. Last
year the readers of Business Asia voted the Taj Mahal, Mumbai as the best
Business Hotel in India and in 1998; it was Taj Palace, New Delhi that
received the award. We are glad that the legendary standards of impeccable
service and warm hospitality set by the Taj Group of Hotels have once
again earned us this distinction."

Conclusion
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Atlast we would like to conclude by saying the hotel industry is the biggest
hospitality service in the world. The hotels serve as the best medium to
help and cater people. As said before it is the biggest money-spinner sector
among the Hospitality Services sector. It had been an wonderful experience
to work on a very exciting sector. The Hotel Industry is here to stay for
long.

Bibliography

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Hospitality Sector

1. Hospitality Marketing by Neil Wearne.

2. Service Sector Management by Romeo Masceranhas.

3. www.indianhotels.com

4. Economic Times and Business Standard.

5. http://en.wikipedia.org/wiki/Hotel

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