OVERVIEW OF HOSPITALITY SECTOR

Today hospitality sector is one of the fastest

growing sectors in India

The Hospitality Industry is a 3.5 Trillion dollar

Service Sector within the Global Economy.

CAGR of 6% over the last 10 years

It is expected to grow at the rate of 8.8%

between 2007 and 2016
Travel and Tourism is the second highest
foreign exchange earner

Several intl. hotels expanding in India

Accounts for nearly 5.3% of GDP and 5.4% of

total employment
 Hotels

Self Catering Restaurants

Leisure
Other
&
Accommodation
THE Sports

HOSPITALITY
Caterers: INDUSTRY Gaming
Public / Private

Meetings Pubs
& &
Facilities Education Clubs
&
Training
Travel and Tourism is the second highest foreign exchange earner for India.
The tourism industry
contributed 6.1% to the GDP
in 2008/09 compared to 6.8%
in 2007/08.

According to estimates of the

World Travel and Tourism
Council (WTTC), GDP
growth for Travel & Tourism
economy is expected to
average 7.6% per annum over
the next ten years.
According to a report, Medical Tourism will grow at a CAGR of over 27 per cent in the period
2009–12 to generate revenues worth US$ 2.4 billion by 2012.
Categorization
Based on Location

Based on Size of Property

Based on the Level of Service

Based on the Length of Stay

Based on Theme

Based on Target Market

 Indian Hotel
- A New Phase of Growth . . .

Industry
 Currently supply of 110,000 rooms
Shortage of 150,000 rooms

 2010 Commonwealth Games

Hotel rates are likely to rise by 25% annually and

occupancy by 80%, over the next two years.**

**This will affect the competitiveness of India as a cost-effective tourist destination.

FEW PLAYERS IN THE HOSPITALITY INDUSTRY . . .

PRIVATE SECTOR
PLAYERS:
• Taj Group Of Hotels
• Oberoi Hotels
• Le Meridien Group
• Best Western Group

PUBLIC SECTOR
PLAYERS:
• HCI
• ITDC Hotels
PRODUCT LINE . . .

CONFERENCE RESTAURANTS
ROOMS & BAR

•
BANQUETS & RECREATION
ROOMS
HALLS FACILITY

STANDARD MODERATE SUPERIOR DELUXE

JUNIOR
STUDIO SUITE SUITE

* Substitute Products for the Hotel Industry

MARKET SEGMENTATION. . .
160000
140000
120000
100000
80000
60000
40000
20000
0
XE R AR AR R E D A L TS
U TA T T ST
A A G SE T N
EL - S -S -S I T RI O A
D 4 3 2 1- ER O T UR
A R H T EG T A
T A S
-S NC RE
5 U

*** Source: Ministry of Tourism, Government of India --- 2007 / 2008

PRICING STRATEGIES . . .

Rack Rates
Consortia Rates
Corporate Rates
Group Rates
Weekend Rates
Promotional Rates
 CONSUMER
GENERATED
MEDIA
PAY PER CLICK DIRECT MAIL

RADIO
HOTEL WEBSITE
ADVERTISING

LOYALTY CARD
PROMOTIONS
PROGRAM

MARKETING
STRATEGIES
PRINT
MERCHANDISING
ADVERTISING

VIRAL OTHER INTERNET

MARKETING SITE

OUTDOOR
TV ADVERTISING
ADVERTISING
TELEMARKETING
 STRENGTHS WEAKNESS
• RICH CULTURAL HERITAGE • HIGH COST OF LAND
• DEPT. OF TOURISM • HIGH TAX STRUCTURE
• COMMONWEALTH GAMES • DEMAND SUPPLY GAP
2010 • INADEQUATE RECOGNITION
• LOW MANPOWER COSTS • SECUTIRY SCENARIO & SOCIAL
UNREST

OPPORTUNITIES THREATS
• DEMAND EASILY MANAGED • SUBSTITUTE PRODUCTS
• POTENTIAL FOR GROWTH • POLITICAL TURBULENCE
• RISING INCOME LEVELS • CHANGING TRENDS IN THE WEST
• UNIQUE EXPERIENCE IN • ECONOMIC CONDITIONS
HERITAGE HOTELS • LACK OF SKILLED MANPOWER
• INCREASING COMPETITION
 POLITICAL ECOLOGICAL
• LABOUR LAWS • ENVIRONMENTAL
• FOOD AND SAFETEY CONCERNS
REGULATIONS • GLOBAL WARMING

SOCIO -
TECHNOLOGICAL
CULTURAL
• DIFFERENT BACK • INTERNET
GROUNDS • ENTERTAINMENT
BOX
Case Study
On
Taj -Hotels ,Resorts
& Palaces
 The Indian Hotels Company
Limited (IHCL) **

Founder of the Tata Group,

Mr. Jamsetji N. Tata

The Taj Mahal Palace Hotel,

Bombay in 1903

** also known asTaj Hotels Resorts and Palaces

Taj
(luxury full-service hotels, resorts
and palaces )
Taj Exotica
Taj Safaris
Upper Upscale Hotels
(full-service hotels and resorts)
The Gateway Hotel
(upscale/mid-market full service hotels and
resorts))
Ginger
(Economy Hotels)
Taj Air
Taj Sats Air Catering Ltd
 ac e
h al P al
aj M a
T he T
o w e r
& T
Sea Lounge

Aquarius

Starboard Bar

Harbour Bar

La Patisserie
 Restaurant
 Golden Dragon

 Shamiana
s
»Souk

»  Masala Kraft

»  The Zodiac Grill

Wasabi By Morimoto
Zodiac grill
at Taj Mahal
Palace &
Tower is the
most
Expensive
restaurant
in India
Facilities
Hotel Business Services
•Wireless Internet access
•Broadband Internet access
•Colour copier
•In-house video-conferencing

Hotel Leisure and Other Services

•Babysitting
•Currency exchange
•Express laundry / Dry cleaning
•Florist
•House doctor
•Laundry services

Yacht
Meeting Rooms & Banquet
Marketing
Strategies
PR
Sales Team
PR:
GSR

Alliance
- Leading Hotels of the World
Star :
Taj Stats,
Taj Exotica(Resorts)
 
Cash cows :
Luxury Hotels
 
Question mark (?) :
Taj Luxury Apartments, Ginger
Hotels
 
Dogs :
Taj Gateway Hotels (Business
Hotels), Taj Air
 
 
 
Competitive Rivalry within the industry
Threat of new entrants
Bargaining power of customers
Bargaining power of suppliers
Threat of substitute products
: Oberoi & Trident group
: Marriot, 4 seasons
: High, as competition is very intensive
: Medium
: video conference, telephonic conference,
Rent apartments.
 FUTURE OUTLOOK

• Investment in the hotels expected to increase

• Further growth in few cities

• RevPAR would be considered measurement to

performance
• Change in Pricing strategies followed by the players

• Increase in the FDI inflow in the industry

NEW FACE TO HOTEL INDUSTRY

SERVICED APARTMENTS – HOME AWAY

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