Pricing of Services | The Taj Mahal Palace
Pricing of Services | The Taj Mahal Palace
Presented By
Maneet Kumar
Mani Shankar Sonkushre
Man Mohan Anand
Arti Kumari
Debarati Sen Gupta
Monalisa Ghosh
The Indian Hotels Company (IHC) is the parent company of Taj Hotels Resorts and Palaces.
It was founded by Jamshed Ji N. Tata on December16, 1903.
Currently the Taj Hotels Resorts and Palaces comprises 57 hotels at 40 locations across India
Additional 18 hotels are also being operated around the globe.
During fiscal year 2006, the total number of hotels owned or managed by the Company was 75
Introduction – Hotel Taj Mahal Palace
Business Services
• Wireless Internet Access
• Color Copier
• In-house Video-Conferencing
• Laptop Computers on Hire
• Translation / Interpretation Services
• Secretarial Services
Leisure and Other Services
• 24-hour in-Room Dining
• Baby Sitting
• Car Hire Service
• Currency Exchange
• House Doctor
• Yacht
Services at Taj Mahal Palace
It is a price point in memory for a good or services and generally consists of price last paid , the price frequently paid or the average of all prices customer have paid for similar offering.
It differs from actual price due to :
• Service Variability.
• Providers are unable to estimate the price.
• Individual customer needs vary.
• Collection of price is overwhelming.
• Prices are not visible
Reference Prices
• Time Cost
• Search Cost
• Convenience Cost
• Psychological Cost
Nonmonetary Costs Considered in Pricing
Is Price an Indicator of Service Quality?
Cost Based
Competition Based
Demand Based
Approaches to Pricing of Services
Fixe
d C
ost
All Real asset Cost
Depreciation
Cost of Operation
Cost of labour
Cost of Sales and marketing
Var
iab
le c
ost
In Room Amenities
Cleaning and House keeping
Distribution Cost
Travel Agent Commission Cost
Special Application e.g. Spa
Cost Based
Competitive Pricing is the discipline that strategically and tactically defines the price offered in comparison to the market. Competitors of Taj are Marriot group ,The Oberoi group ,Grand Hyatt group, ITC group , The Lalit Hotel group, Leela group.
Category Taj Oberoi Leela
Standard Room
Rs. 13,500
Rs. 13,299
Rs. 12,978
Luxury Room
Rs. 21,278
Rs. 21,675
Rs. 20,287
Competition Based
Taj Mahal Palace & Tower, Mumbai
Leela Palace, Bangalore
Trident Hilton, Gurgaon
Oberoi Udaivilas, Udaipur
Leela Kempinski, Mumbai
Rambagh Palace Hotel, Jaipur
The Four Seasons, Mumbai
Imperial Hotel, New Delhi
Taj Coromandel, Chennai
Sheraton Maurya, New Delhi
Source - http://www.theindiastreet.com/2007/08/top-ten-10-business-hotels-in-
india.html
Top 10 Hotels in Terms of Business
Demand Based pricing also known as Dynamic pricing is all about tailoring their pricing according the current supply and demand
You expect to pay more for a hotel when a city is full of conventioneers and to pay less at a resort during the off season.
Demand changes constantly based on economic conditions and other external factors. They offer wide ranges of products and services that customers may value or devalue according to whim and fashion.
Demand Based Pricing
Price Elasticity
Value
Low Price
Everything I want in a
service
Quality I get for the price I pay
All that I get for all that I give
Perceived Value
Value is Low Price
• Discounting
• Odd Pricing
• Synchro-Pricing
• Penetrating Pricing
Everything I want in a service
• Prestige Pricing
• Skimming Pricing
Quality I get for the Price I pay
• Value Pricing
• Market Segmentation Pricing
All I get for all that I give
• Price Framing
• Price Bundling
• Complementary Pricing
• Result- Based Pricing
Perceived Values (Contd.)
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