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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
Occupancy Percentage: 71.2% (2011)70.5% (2012)
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
Occupancy Percentage: 53.3% (2011)60.4% (2012)
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
Oberoi Hotels & Resorts is synonymous the world over with providing the right blend of
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
Oberoi Hotels & Resorts is synonymous the world over with providing the right blend of
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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