A Project On Hotel

In-depth study of the Hotel Industry and top Indian players in Mumbai.
A project on
In Partial fulfillment of the requirement for Post Graduate Diploma in Management (PGDM) 2010 2012
Submitted by:
Binny Smauel
Roll No. PG 04
Submitted to:
Dr V N Bedekar Institute of Management Studies Thane

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Statement by Candidate
I Binny Samuel wish to state that the work embodied in this project titled In-depth study of the Hotel Industry and top Indian players in Mumbai. Forms my own contribution to management. Wherever references have been made to intellectual properties of an Individuals/institution/government/private/public bodies/Universities, research paper, text book, reference books, research monographs, archives of newspapers, corporate, individuals, business/government and any other source of intellectual properties viz. Speeches ,quotations, conference proceedings extracts from the website, working paper , seminal work et al, they have been clearly indicated, duly acknowledged and included in the bibliography.
Signature of Guide __________________
Signature of the candidate ______________________
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Acknowledgement
Any accomplishment requires the effort and guidance of many people. This project was indeed possible due to efforts and guidance of many. I would like to express my sincere gratitude towards Ms Smita Jape , Faculty of Dr V N Bedekar Institute for her necessary guidance and sparing her valuable time. Finally yet importantly, I put across my gratitude to each and every individual who has helped me for preparing this project report. It is their support which helped me to complete this project report on time.
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Index
Sr. No 1 2 3 4 5 6 7 7.a 7.b 7.c 7.d 7.e 8 9 10 11 12
Subject Genesis of the report Introduction Indian Hotel Industry Government Initiatives Overview of hotel industry in Mumbai Mumbai Area wise Top Indian hotel players in Mumbai East India Hotel Limited Bharat Hotel Hotel Leela Venture Limited Indian hotel company Limited ITC Hotels Comparison of the ARR Marketing strategy and Marketing Mix of Hotels Conclusion Glossary Bibliography
Page Number 05 07 12 17 19 27 31 31 33 34 37 39 41 42 47 48 49
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Genesis of the Project

The Hotel Industry has been one of the most important industry for the Indian Economy. Hotel industry brings in huge amount of foreign exchange earning in India. The hotel industry in India can be divided into eight segments based on the norms set by the Ministry of Tourism. They are 5-Star Deluxe, 5-Star, 4-Star, 3-Star, 2-Star, 1-Star, Heritage and Unclassified India has a spread of small one star and unclassified hotels and they are highly fragmented in nature whereas, the upscale, mid-market and heritage categories are highly organized. The Hotel Industry is highly sensitive to the external factors such as economy, terrorism and political status. The demand for the hotel rooms depends on the rise of the domestic and well as the foreign tourists. The demand also depends on the GDP, the growth of Indian business with other nations, raising number of awareness of the tourist destination rise in trade and sporting events, marketing efforts taken by the Indian Government to increase tourism like Athithi Devo Bhava & Incredible India. Domestic tourist arrivals are the backbone of Indian Hotel Industry as the number of Domestic Tourists is far more than the Foreign Tourist. Domestic tourist are of two types
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Domestic Tourist Leasure travelers Business travelers
Growth in leisure travelers is because of the rising personal discretionary income, evolving lifestyle, growing number of multi earner families, weekend vacation culture, improvement in rail, air as well as road connectivity and rich cultural heritage. Drivers of domestic business traveling are rise in trade , increasing geographical spread of companies and increasing market. In this research top player in Mumbai as a specific region had been identified. Mumbai was chosen as a region because Mumbai represent a healthy mix of business and leisure destination with varied topography and culture. This location is expected to have high growth in the upscale category of Hotels. There is a total of 368 hotels in mumbai. This report deals with top 05 Indian players in mumbai, comparison between top players in mumbai and the steps taken by these companies to survive and have a good customer inflow and maintain a good ARR (average room rate).
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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. With the invention of steam engines people traveling for business and leisure started increasing. Globalization added to this and the amount of people traveling increased, this lead to the actual development of the Hotel industry. The Hotel Industry consist of a range of businesses that provide facilities and service such as accommodation, food and beverage, entertainment and other related products.
Classification of Hotels
The hotel industry in India can broadly be classified into 3 major types:
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Star hotels: This classification is done by the Ministry of Tourism. Hotels are classified into 5-Delux, 5 star, 4 star , 3 star, 2 star and 1 star. Heritage hotels include old palaces and heritage properties, which have been converted into hotels. The ministry re-classifies hotels every 5 years. Heritage and Heritage Classic hotels also include posh residences, havelis, hunting lodges, forts and palaces built prior to 1950 and 1935 respectively. Approved (Awaiting classification) hotels: these hotels are approved by the ministary of tourism but has not given any classification.
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Licensed Units: These hotels have obtained a license from local municipal authorities to conduct boarding and lodging facilities. Classification of hotels are also done on the type of location, the types of service they provide among others.
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Classification of Hotel as per the heritage categories
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Classification of Hotel as per the size of the room (per sq.ft.)
The above mentioned room size are calculated on per sq.ft. basis. The size mentioned above is the minimum requirements as per the size of the room to get the specific classification.
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Indian Hotel Industry

The Indian Hotel Industry has emerged as one of the largest growing industry in India and it has been able to drive the growth of the service industry and there by the Indian Economy. India has the potential to become the number one tourist destination in the world with the demand growing at 10.1 per cent per annum (Source: World Travel and Tourism Council (WTTC)). India currently has over 2,00,000 hotel rooms spread across hotel categories and guest-houses and is still facing a shortfall of over 1,00,000 rooms (Source: FHRAI). The country is witnessing an unprecedented growth in hotel constructions and will be adding almost 114,000 hotel rooms in the next five years (source: HVS) The department of tourism has strengthened its promotion for Indias tourism because of the earlier setback in global tourism. The Department of tourism is positioning India as a global brand to take advantages of the global travel and the trade and the vast untapped potential of India as a destination. As the government is taking so much pain to increase the tourism factor of India many players in the Hotel Industry are eying India as a hot spot. Many Indian and International Hotel chain are coming up with new hotels and new hospitality concepts in India.
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For eg: Hotels like Hyatt, Taj, Oberoi, Leela, ITC are coming up with new hotels in Mumbai even though they have Hotels existing already in mumbai. Gatway hotels and IBIS hotels are coming up with new Hospitality concept in Pune. Tourism industry helps in contributing significantly for the Indian economy and contributes to the countrys Gross domestic product (GDP) and foreign exchange earnings (FEE). India currently holds the 12th position in Asia and its carry 68th position in the list of the worlds most attractive tourist destination (Source: Travel and Tourism Competitiveness Report 2011 by the World Economic Forum) The increasing number of international as well as domestic tourists has encouraged the Indian travel and hospitality sector which has nearly doubled during the last three years. The tourism and hospitality industry experienced a healthy growth trend of 24.6 per cent during 2009-2010 as compared to 2008-2009. The total number of foreign tourists in the country in 2010 was 5.58 million as compared to 5.17 million in 2009, registering a rise of 8.1 per cent, according to the Market Research Division of the Ministry of Tourism. There has been an improvement in foreign tourist arrivals and business-related travel expenditure, post the economic slowdown. There was a significant improvement in room demand in 2010-11 which led to a growth of 3 per cent yearon-year growth in average room rates (ARRs) and occupancy rates (ORs) increased by 2 per cent to 62 per cent. While demand is expected to maintain a strong growth momentum during the next 5 years, but where there is growth and
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success there is intense competition. New Indian companies and other big international companies are showing interest in the Indian market. This Intense competition is hampering ability of hotel companies to increase ARRs. The Indian Hotel Industry is getting a lot of attention because of the hotels adopting the Indian culture, the Indian Hotel has become a Harvard case study. It is estimated that the room demand for five star and five star deluxe hotels would increase at a rate of 10% over the next five years mainly because of the increase of business travelers and foreign tourist arrivals. In the below chart we can see that the room demand is increasing but because of more and more hotel rooms coming up the revenue per available rooms are decreasing.
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After the economic slowdown in 2009 and the terrorist attack in 2008 where the Average ARR showed a decline of a percentage of 10.3% , in the year 2010 and 2011 average ARR showed a growth of 2.8%. It can be seen that the ARR is not only being affected by economic slowdown and the terrorist attack but also because of the increasing competition and new hotels coming up, but still the 2.8% raise shows that there is increase in the demand of hotels in India. The below figure shows the yearly details of the ARR
Business as well as leisure destinations registered a strong recovery in room demand in 2010-11. Among the business destinations, demand in Bengaluru, Kolkata, Chennai and Hyderabad grew by 23-37 per cent whereas that in Mumbai, the National Capital Region (NCR) and Ahmedabad increased by 10-13 per cent. Because of the rise in FTAs, demand in leisure destinations such as Goa, Agra, Jaipur and Kerala rose by 14-26 per cent. The demand for foreign tourist arrivals in India is shown below
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From the above chart it can be seen that the number of foreign tourist arrival is showing a positive growth this is a very good sign for the Indian Hospitality Industry. Even after the terror attacks in 2010 and 2011 and countries like U.S and U.K. warning their citizens about going to India because of the terror attack and bomb blast the foreign tourist numbers are increasing. This can be because of the increase in business travellers in India also because of the initiatives taken by the Indian Government to promote Indian tourism.
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Government Initiatives to increase the number of Foreign tourist and domestic tourist in India
The Government has allowed 100 per cent foreign investment under the automatic route in the hotel and tourism related industry, according to the Consolidated FDI Policy, released by DIPP, Ministry of Commerce and Industry, Government of India. The Government of India has also announced to grand Tourist visa on arrival for the citizens of Japan, Finland, New Zealand and Singapore. It is valid for only single entries in India strictly for the purpose of tourism and for a short period of up to a maximum of 30 days. The Government has taken a lot of initiatives to enhance the tourism and hospitality sector performance. The Uttarakhand State Government has launched 100 per cent tax exemption program to build tourist facilities for a period of five years under the Vision 2020 document. On the same lines, Rajasthan has reduced the luxury tax level to 8 per cent from the existing 10 per cent levels. Kerala, Madhya Pradesh, Orissa and Gujarat have entered into Private Public Partnerships (PPP) to promote travel and tourism to attract tourists. (Source: http://www.ibef.org) Road Ahead The tourism and hospitality sector report by the Ministry of Tourism suggests that the demands are expected to increase up to US$ 34.7 billion by the end of 2020. In order to promote this target, the Ministry has already sanctioned the development
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of 169 rural sites across the country. These sites have been selected based upon their competencies for craft and handloom skills. Statistics suggest a triple fold increase in the number of tourists visiting the country. The sector has witnessed a steady growth from four million travelers in 1998 to 11 million in 2008. As expected, the figure in intended to reach a mark of 29 million visitors by 2018. There is an opportunity in the inbound MICE sector (meetings, incentives, conventions and events) which has already registered a growth of 15 per cent to 20 per cent during the last five years.(Source: report by the Ministry of Tourism).
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An overview of the Hotel industry in Mumbai.

Mumbai previously known as Bombay is a metropolitan city of India. Mumbai is the state capital of Maharashtra. The city is known as the business capital of India, it is the countrys principal financial and communication center. Mumbai has the largest and busiest port in Fort handling most of Indias foreign trade and a major International airport in Sahar, Andheri. The city also has Indias largest Stock Exchange which ranks as the third largest in the world, here a stock trade of billions of rupees is carried out everyday. Mumbai can not be complete without the mention of Bollywood, the biggest Indian film industry which brings hundreds of Hindi block-busters every year. Mumbai also have a wide range of tourist destination like the Gate of India, Mani Bhavan, Juhu Beach, Elephanta Caves and many more also Mumbai is the dream city for lot of Indians, because of all this reason there is a lot of Foreign tourist and domestic tourist visiting Mumbai. The Hotel industry in mumbai is a rapid growing industry with hotel players bringing in new hotels with unique concepts to attract customers. For example: - Western Hotels brought is the new trendy luxury concept with a unique extra comfortable bed. Other hotels like W Hotels, Four Points, Hyatt, Taj, Leela all are coming up with properties in Mumbai. There are a total of 365 hotels in Mumbai out of which there are 21 five star property, 21 four star and so on.
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Mumbai - Review and outlook
The period of 2008-2010 was a period of severe stress for the Mumbai hotels. The city experienced a rapid growth in RevPARs of 25 per cent 2002-03 and 2007-08. Mumbai has always been amongst the top three destinations in terms of RevPAR. The increase in the hotel revenue in mumbai is because of the combination of rapidly increasing room demand and relatively low availability of high quality rooms, but the hotel industry from the year 2008 saw a huge amount of stress because of the economic slowdown and the Terrorist attacks on 26, 2008. There is a graph shown below that gives an Impact of the terror attacks on Mumbai room demand.
The impact of the terrorist attack showed immediately in the form of a sharp decline in room demand. On an year-on-year basis, the room demand in the city fell by around 30%. The average ORs for the December 2008-March 2009 period fell to 54% from 74% during the same period in 2007-08. Because of the economic slowdown there was a significant reduction in corporate spending on travel. Impact of terrorist attack on Taj Mahal Palace & Towers and Oberoi Hotel
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(A part of Taj Hotel that was destroyed in the Mumbai terror attack) Out of the four location targeted by the terrorist during the Mumbai attack on 24 th November 2008, the two areas were Taj Hotel and Oberoi Hotel . There were a total of six explosions at the Taj hotel and one at the Oberoi Hotel. The Luxury and fame of both the hotels may be the reason why terrorist targeted these hotels; also the terrorist had kept the hotel staffs and guests as hostages which included foreigners. 32 hostages were killed at the Oberoi Trident. A number of delegates from the European Parliament and Committee of International Trade were staying in Taj Mahal hotel when it was attacked but none of them were injured. Both the hotels had suffered devastating damage. A portion of the Tajs Heratage hotel was totally damaged and the first floor of the Oberoi hotel was totally damaged. The Oberoi was closed down for 06 months and the Taj Heritage was closed for a year and for the renewal of the heritage property Rs. 500 crores was spend.
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Impact of the terror attacks on Mumbai room demand
Source: CRISIL Research
We can see in the above chart that the room demand during December-Jan 2008-09 decreased to 2,466 numbers as compared to 4464 almost the double in DecemberJan 2007-08 In addition to the reduce in room demand, the city also witnessed an additional supply in this period a round 850 rooms were added between March 2008 and March 2010. The increased competition forced players to lower ARRs, thereby showing the effect on RevPARs, which were already suffering due to the reduction in occupancy levels. Below Graph shows the room demand and revenue per available room during the period from 2008 to 2010.
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Mumbai Room demand and RevPARs
Source Crisil Research.
The graph shows the decline in room demand and RevPar during the period of December to November 2010 but from December 2010 the condition is getting better and once again the demand for rooms is increasing.
Hotel industry in the coming years (Mumbai)

Mumbai, as the commercial capital become the center of all economic activity in the country. With the Indian economy projected to grow at around 9-10 per cent over the next 5 years; room demand in the city is likely to witness an increase
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because of business such as banking, financial services, infrastructure and manufacture. Because of the recovery in the global economic scenario there will be an expected increase in business related travel expenditure according to the Tourism forecast. According to the Maharashtra tourism the room demand in mumbai will grow at a rate of 10% over the next 05 years. Average ORs(occupancy rate) for properties across Mumbai are expected to increase to above 65 per cent levels over the next 5 years. in 2014-15, the improvement in ORs will drive RevPAR growth; which is expected to be around 6 per cent . We believe that RevPARs will increase to Rs. 7,400 by 2014-15. (Source: CRISIL Research) Supply for the rooms are also expected to grow during the same period with new properties coming up in Mumbai. While ARR growth is likely to be around 3 per cent and reach Rs 10,400 in 201415. If all the above forecast are to happen the mumbai will retain its status as one of the top destination in the country in terms of RevPAR.
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Outlook: 2009-10 to 2014-15 in the form of a graph is shown below Mumbai - Room demand, availability and ORs
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A forecast on Mumbais ARR,OR AND RevPARS is shown in the below graph Mumbai - ARRs, ORs and RevPARs
Source: CRISIL Research Tax on Hotel charges in Mumbai In mumbai the Luxury tax on rooms are 10% on the room and the central tax rates are given below in the chart
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Mumbai Area-wise analysis Below an area wise analysis is done on the demand-supply scenario of hotels in five key market in mumbai. The areas considered are namely: Central Mumbai (Parel and Lower Parel), Bandra (Bandra-Kurla Complex), Andheri (near the International Airport), Northern Suburbs (Powai, Goregaon and Malad) and Navi Mumbai. Mumbai - City map
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Mumbai area wise

Central Mumbai The closeness to South Mumbai and the increasing demand of the corporate travellers because of the rapid development of commercial real estates would increase the demand of rooms in Central Mumbai Bandra-Kurla Complex BKC has emerged out as a key business hub of the city and because of this the room demand would increase as a result new hotel are built in the area like the Trident BKC. The emerging business will increase the occupancy rate of hotels in the area. 28% of room supply in mumbai is scheduled to come up in this area. Andheri (International airport area) Andheri has the maximum existing room supply compared to all the areas in the city. The main reason for this is the International Airport and the increasing number of air traffic and corporate demand. Northern suburbs (Powai, Malad and Goregaon) There is a low available supply of rooms in this area and because of the small business growth in these areas the room demand would increase in the future Navi Mumbai It is believes that there would be a huge amount of room demand in the area because of increase in industries located in the Navi Mumbai area and also to some extent by events at the D.Y. Patil Stadium such as the IPL Mumbai- Summary of the key 05 area in mumbai
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In the above table location, the key characteristic of the location, current room supply percentage and the upcoming room supply percentage is mentioned.
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In the table it can be seen that the occupancy rate for the year 2009=10 is about 60% for four major areas which is considered as a good occupancy rate. In Navi Mumbai area the occupancy has been low but in future the occupancy percentage would rise because of the increase in corporate houses.
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Top Indian hotel players in mumbai

East India Hotels (EIH) Limited
East India Hotels (EIH) Limited is the third-largest hotel chain in India after Indian Hotels Company Limited and ITC Limited. in terms of room inventory. East India Hotels have Hotels under the brand name of the Oberoi and Trident. The Oberoi hotels are premium luxury hotels serving business and leisure travelers across 11 cities in India as well as other countries while the Trident hotels are premium business hotels which operate domestically. The EIH has a total of 4,513 rooms under them as on March 2011. The company also operates 3 cruise liners, airport restaurants, flight catering services, travel and tour services and corporate air charters and a printing press. The oberoi hotel mumbai is ranked among the 100 best hotels in the world. It is also ranked among the top city hotels in Asia by the readers of Travel+Leasure. U.S.A in the year 2011.
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Properties in mumbai
The company, which reported a 21.53 percent, drop in its net profit to Rs.170.44 crore in 2008-09, because of the economic slowdown and the Terror attack. The company also has spent around 100 crores for the renovation of Trident Hotel in Mumbai where the operations had been closed down because of the terror attack. The hotel again reopened in the first quarter of 2010
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Revenue break up for the year 2010-11
Source :CRISIL Research
Bharat Hotels
The Bharat hotels is a New Delhi-based hotel currently having eight hotels in India with over 1.500 rooms and is coming up with ten more properties in the next 05 years. In 2008 the Bharat Hotels renamed itself as The Grand because of its association with the InterContinental Hotel Group.
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The Bharat Hotel group has 02 properties in mumbai the InterContinental The LaLiT and the Residency, the room break-up is shown below.
Hotels under operation in Mumbai (As of March 2011)
Source: Company reports, CRISIL Research
Hotel Leela venture Limited
Hotel Leelaventure Limited operates luxury hotels and resorts in India. Leela Lace Private Limited is the key promoter and its holding in the company is 55 per cent in 2010-11. The Leela Hotel in mumbai is the first Leela property. The Leela hotel
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has 1,457 rooms spread across seven deluxe hotels in Mumbai, Goa, Bengaluru, Kovalam, Udaipur and New Delhi. Leela Hotel has alliance with Kempinski hotels under which the latter provides technical and pre-opening services along with IT, personnel and operational support services. Hotels under operation (As on March 2011)
Revenue break up by city
Source: Leela Company Website.
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Revenue break up by operations
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Indian Hotels Company Limited
Started in 1902 by Jamshedji Tata, Indian Hotels Company Ltd (IHCL) is the largest hotel company in India, the company operates their hotel chain under the brand name Taj , Ginger and Gateway. The company is the leader in India in terms of the revenue generated by any hotel group as well as room inventory in till now the company has 12,795 rooms, As of March 2011, IHCL operated 107 hotels (domestic as well as international) through its subsidiaries, joint ventures (JVs) and associate companies. IHCL has an international presence in locations such as the US, Australia, Maldives, Mauritius, Malaysia, UK, Sri Lanka, Africa and the Middle East. The group also derives a portion of its revenues from airline catering through 2 jointlycontrolled subsidiaries. Growth In the coming years, IHCL will see growth through the addition of 80 Luxury Residences at the Taj Wellington Mews, Mumbai, as well as rooms added at Taj Lands End, Mumbai
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Taj Mahal Palace
Taj Wellington Mews
Taj President
Taj Lands-end
Hotels under operation in Mumbai (As of March 2011)
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Revenue break up by operations (2010-11)
ITC Ltd
ITC the Indian tobacco Company was established in 1910. ITC is into cigarettes, hotels, paperboards, personal care, FMCG products and other services. In the Hotel segment after Indian Hotels, ITC hotels are the second-largest hotel chain in India, with 100 properties spread across the country. The company operates in the premium, budget and heritage hotel segments, either directly or through subsidiaries and joint ventures.
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The hotels are branded under four main categories ITC prefixed hotels in the super deluxe category, The Welcome Hotel brand for 5-star hotels, Fortune Hotels for the mid-market segment, and Welcome Heritage for palaces, forts, havelis and resorts at leisure tourist destinations. ITC has a franchise agreement with US-based Starwood Hotels & Resorts for its premium brand it also has properties under the brand name Sheraton. operation in mumbai (As of March 2011)
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Comparison on the ARR on the above hotels in mumbai

ARR of hotels in Mumbai as on 16/11/2011 Hotel Group Hotel ARR per night in INR Taj Taj Mahal 10,264 - 19,011 Taj Lands End 10,365 - 19,162 Taj President 8,140 - 14,460 Oberoi Oberoi Mumbai Trident, Bandra Kurla Trident Nariman Point The Leela Mumbai ITC Grand Central Lalit the Grand 11,123 - 38,837 9,354 - 19,466 9,505 - 29,628 9,101 - 16,634 9,606 - 15,623 9,000 - 25,628
Leela Hotel ITC Hotels Bharat Hotels
With the ARR it is very difficult to find out which hotel is having greater profits and revenue. According to FHRAI : The Federation of Hotel & Restaurant Associations of India, Taj group is the biggest hotel group in mumbai having the greatest revenue followed by Oberoi and then ITC. All the five major Indian players in mumbai are having a tough competition with the foreign hotel groups in mumbai like the Hyatt Group which has 02 Hotels in Mumbai. Grand Hyatt and Hyatt regency. The J W Marriot which has 03 properties in mumbai, Western Hotels, W Hotels among other hotels. Because of the intense competition faced by Indian hotels in mumbai these hotels do a lot of marketing to attract customer.
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Marketing
All the hotels do their customer segmentation according to the prospects of the hotel hotels like the Taj, Oberoi among others have segmented their customers into corporate, travel agents, Airlines and leisure seeking customers. Personal selling is one of the most important marketing tool for the Hotel industry.
Marketing Mix of Hotels.
Product Mix:- In Hotels innovation is the key. Hotels stay innovative in providing different and special services to the Guest for eg: - Baby care facility, Play rooms, Butler service. Price Mix:- The type of rooms, the luxury, diverse nature and character of room and food and beverages, involvement of cost and spending power of customers all this factors are considered before the price is fixed. Place Mix:- Location of the hotel is the most important business decision for the hotel. The hotel is of which category and who are the prospective customers depends on the location of the Hotel. Promotion Mix:- Advertisement, publicity, sales promotion, personal selling, word-of-mouth promotion and telemarketing are the components of a hotels marketing strategy. People:- As in any service industry, in Hotels also people are the biggest asset a company can have. People are the only point of contact and they represent the hotel, so the hotels have trained staffs especially for the front office employees.
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Physical Evidence:- . Lobby- It being the first & the last part of the hotel that the guest sees, the comfort of the room and the experience the customer have are the physical evidence and hotels are coming up with new creative ideas to make the Guest feel special in the hotel property. Process:- Major service encounter that makes the customer delighted or disappointed are: 1. Check in. 2. Bell person carrying luggage to the room. 3. Food. 4. Wake up call 5. Check out. The hoteliers plan their processes in such a way that there are minimum errors and that can dilate the customer and encourage them to visit the hotel again and again.
Following are the special marketing steps taken by the hotels Indian Hotel Company Limited Promotional schemes are carried on regular basis, the hotel has many loyalty program, clubs, membership, previlage to retain its customer some of them are 1. The Taj Inner Circle. 2. The Taj Junior League.
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3. The Taj Club. Taj also offer Taj surprises including weekend savers, value vouchers, book early get more offers to increase the occupancy of the Hotel
IHCL is in the process of clearly defining their product and service standards in order to have consistency across properties under each brand. This will help in further enhancing the brand value of Taj.
Leela Hotel Mumbai Continue to focus on high-end premium market catering to business travellers and tourists. Leela hotel maintain high standards of quality for guest facilities and services Some of the steps taken by Leela hotel for customer acquisition and retention are regular follow up of long stayers, meet travellers and get feedback, to conduct Trade fairs and events in metropolitan cities, loyalties for the guest. The Leela Hotel also does a huge amount of Bill-board adds on current offers and special promotion. Leela Hotels does advertising in bbusiness newspaper (E.T, Financial Express, Bombay Times) as it is a business hotel it runs adds in news channels like STAR NEWS,CNN and CNBC and print ads in The OUTLOOK, Travelar, GO NOWAND TRAVEL.
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Lalit The Grand (Bharat Hotels) The Lalit Intercont. Hotel properties are renowned for their convenient and strategic locations within major cities. Also synonymous with the brand are the high level of personal service guests receive, and the extensive range of comprehensive business facilities available in luxurious settings. The Lalit Mumbai has the Largest Lobby in Asia. The Hotel targets corporate guests with a requirement of two to three night stay. Targeted business segment include the business travelers and the customers from the international airport. Differentiating the types of business offered from that of its competitors in mumbai the Lalit Hotel attracts business travelers. The hotel had tie-ups with different Airlines to accommodate Lay-over passengers from the airlines thus increasing the sales of rooms in the hotel. Oberoi Group Their primary focus remains mass communication like print ads in trade publications and on the Internet. The Oberoi hotel has a Public relation agency who look after the direct marketing of the hotel. The Oberoi hotel has partnership with certified airlines to increase the customer satisfaction. Here the customers are offered points on their travel which will help them to have some offers on the stay. Oberoi hotels also have loyalties program for the guests and have membership for regular customers that gives the customer special offers and discounts.
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ITC Hotels The ITC hotel has set a new standard in the hotel industry by developing three types of accommodation brand ITC One, Towers and Executive Club the differentiate between the needs of the customer and the type of services that would be provided in the hotels. ITC to have a good global name had tied up with Starwood hotel group which has more than 2500 hotels under them. ITC Hotels does advertising in bbusiness newspaper and other newspapers (Times of India, E.T, Financial Express, Bombay Times) it runs adds in news channels like STAR NEWS,CNN and CNBC and print ads in The OUTLOOK, Travelar, GO NOWAND TRAVEL also in entertainment magazines like Filmfare, Cinestar among others .
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Conclusion Hospitality Industry is the second largest Growing industry only after the I.T industry in India and because of the growing economic factors the future for the hotel industry in bright. The hotel industry in India has a tremendous opportunity in the future because of increasing trends in the tourism industry and government promoting the Incredible India campaign and other tourism promotion measures taken by the government. The hotel industry in India is mix of five top Indian players and other internationally established hotels. The mumbai region which is one of the top region in India which attracts hotels because of the perfect mix of business as well and leisure opportunity, but because of the economic slowdown and the terrorist attack on 24th November 2008 the hotels Revenue had dipped, hotels are recovering from this but continuous terror attacks in mumbai is a threat for the industry. In the report an effort is made to include important aspect of the hotel industry. A detailed study of Mumbai as a region and the top Indian players in mumbai. Marketing plays a very important role in any business same is the care of hotel industry and important marketing steps taken by the five players are mentioned in the report.
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Glossary ARR Average room rate is the total Hotel revenue divided by the number of rooms sold. Hotels use this measure to calculate the average price at which they are booking hotels each night. So, if a hotel made 50,0000 and sold 200 rooms, its ARR would be 50000 / 200 = 2500. ARR is also known as Average daily rate (ADR). RevPAR - Revenue per available room, it is calculated by multiplying a hotel's average daily room rate (ADR) by its occupancy rate. OR Occupancy Rate the percentage of rooms occupied at a given time.
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Bibliography Marketing Management by Philip Kotler 12th edition. Travel and Tourism Competitiveness Report 2011 by the World Economic Forum Hotel Marketing S.M. Jha Marketing For Hospitality and Tourism Philip Kotler John Bowen James Makens
WeblioGraphy World Travel and Tourism Council (WTTC) - www.wttc.org Wikipedia www.crisilresearch.com/ - for the Graphs and information about the players in Mumbai www.aboutmumbai.com/mumbaiab.asp Google Image for images http://www.ttkn.com/world/terror-attacks-army-stormed-taj-hotel-mumbai217.html/
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In-depth study of the Hotel Industry and top Indian players in Mumbai.

Dr V N Bedekar Institute of Management Studies Thane

Signature of Guide __________________

Signature of the candidate ______________________

Sr. No 1 2 3 4 5 6 7 7.a 7.b 7.c 7.d 7.e 8 9 10 11 12

Genesis of the Project

Domestic Tourist Leasure travelers Business travelers

Classification of Hotel as per the heritage categories

Classification of Hotel as per the size of the room (per sq.ft.)

Indian Hotel Industry

An overview of the Hotel industry in Mumbai.

Mumbai - Review and outlook

Impact of the terror attacks on Mumbai room demand

Source: CRISIL Research

Mumbai Room demand and RevPARs

Source Crisil Research.

Hotel industry in the coming years (Mumbai)

Source: CRISIL Research

Source Crisil Research.

Source Crisil Research.

Mumbai area wise

Top Indian hotel players in mumbai

Source Crisil Research.

Revenue break up for the year 2010-11

Source :CRISIL Research

Hotels under operation in Mumbai (As of March 2011)

Source: Company reports, CRISIL Research

Hotel Leela venture Limited

Source: CRISIL Research

Revenue break up by city

Source: Leela Company Website.

Revenue break up by operations

Source: Company reports, CRISIL Research

Indian Hotels Company Limited

Taj Mahal Palace

Taj Wellington Mews

Hotels under operation in Mumbai (As of March 2011)

Source Crisil Research.

Revenue break up by operations (2010-11)

Source: Company reports, CRISIL Research

Source: Company reports, CRISIL Research

Comparison on the ARR on the above hotels in mumbai

Leela Hotel ITC Hotels Bharat Hotels

Marketing Mix of Hotels.

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