History Of Taj Hotel Tourism Essay

The Company was incorporated in 1902 and it opened its first hotel, The Taj Mahal Palace & Tower, Mumbai, in 1903. The Company then undertook major expansion of The Taj Mahal Palace & Tower, Mumbai by constructing an adjacent tower block and increasing the number of rooms from 225 to 565 rooms. From the 1970s to the present day, the Taj Group has played an important role in launching several of India’s key tourist destinations, working in close association with the Indian Government. The Taj Group has a philosophy of service excellence which entails providing consistently high levels of personalized service and innovative means of improving service quality.

The Taj Group has been active in converting former royal palaces in India into world class luxury hotels such as the Taj Lake Palace in Udaipur, the Rambagh Palace in Jaipur and Umaid Bhawan Palace in Jodhpur.

In 1974, the Taj Group opened India’s first international five star deluxe beach resort, the Fort Aguada Beach Resort in Goa.

In 1980, the Taj Group took its first step internationally by opening its first hotel outside India

In 1984, the Taj Group acquired under a license agreement each of The Taj West End, Bangalore.

During the 1990s, the Taj Group continued to expand its geographic and market coverage in India.

In 2000, the launch of the 56 acre Taj Exotica, Goa and the Taj Hari Mahal in Jodhpur were completed.

In 2003, the Company celebrated the centenary of the opening of its Flagship hotel, the Taj Mahal Palace & Tower, Mumbai.

In 2005 the Company acquired on lease The Pierre, a renowned hotel in New York City, to enter the luxury end of the developed hotel markets internationally

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Introduction Of Taj Hotel

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 Resort and Palaces comprises more than 60 hotels in 45 locations across India with an additional 15 international hotels in the Malaysia, United Kingdom, United States of America, Bhutan, Sri Lanka, Africa, the Middle East and Australia.

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.

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Service Segmentation By Taj Hotel

IHCL operate in the luxury, premium, mid-market and value segments of the market through the following:

Taj (luxury full-service hotels, resorts and palaces) is our flagship brand for the world’s most discerning travelers 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 to create unique experiences and lifelong memories.

Taj also encompasses a unique set of iconic properties rooted in history and tradition that deliver truly unforgettable experiences

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.

Taj Safaris are wildlife lodges that allow travelers to experience the unparalleled beauty of the Indian jungle amidst luxurious surroundings. They offer India’s 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.

Upper Upscale Hotels (full-service hotels and resorts) provide a new generation of travelers 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 travelers 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.

Ginger (economy hotels) is IHCL’s revolutionary concept in hospitality for the value segment. Intelligently designed facilities, consistency and affordability are hallmarks of this brand targeted at travelers who value simplicity and self-service.

Taj Hotels also promise a whole new experience of tranquillity and total ‘wellness’, through

Jiva Spas a unique concept, which brings together the wisdom and heritage of the Asian and Indian Philosophy of Wellness and Well-being. Rooted in ancient Indian healing knowledge, Jiva Spas derive inspiration and spirit from the holistic concept of living. There is a rich basket of fresh and unique experiences under the Jiva Spa umbrella of offering, Yoga and Meditation, mastered and disseminated by accomplished practitioners, authentic Ayurveda, and unique Taj signature treatments. Royal traditions of wellness in service experiences, holistic treatments involving body therapies, enlivening and meaningful rituals and ceremonies and unique natural products blended by hand, come together to offer a truly calming experience.

Taj Air, a luxury private jet operation with state-of-the-art Falcon 2000 aircrafts designed by Dassault Aviation, France; and Taj Yachts, two 3-bedroom luxury yachts which can be used by guests in Mumbai and Kochi, in Kerala.

Taj Sats Air Catering Ltd., the largest airline catering service in South Asia, as a joint venture with Singapore Airport Terminal Services, a subsidiary of Singapore Airlines.

CORPORATE SUSTAINABILITY AND SOCIAL RESPONSBILITY

As a part of Tatas; India’s premier business house; we; at Taj Hotels, have always believed in society and environment being integral stakeholders in our business along with our shareholders, customers, vendors and others.

We promote corporate citizenship through our strategic public-private partnerships which encourage building livelihoods of less-advantaged youth and women. The causes we promote include reducing malnutrition, promoting indigenous artisans and craftsmen and enhancing employability of identified target groups by sharing our core competencies as a leading hospitality company. We encourage training and development of differently able youth.

We at Taj have the unique scope and opportunity to develop raw potential into a skilled workforce that is immediately employable by various players in the industry. A majority of our community projects are focused around extending our key strengths in food production, kitchen management, housekeeping, customer service and spas to promote economic empowerment of candidates from vulnerable socio-economic backgrounds. We are fully committed to the cause of building a sustainable environment by reducing the impact of our daily operations on the environment and improving operational efficiencies, resource conservation, reuse and recycling of key resources.

Vision

The Taj Group of Hotels commits itself to the overall improvement of the ecological environment, which we are all a part of. We recognize that we are not owners but caretakers of the Planet and owe it to our children and future generations of humankind. It is our endeavour not only to conserve and protect but also to renew and regenerate the environment in which we live and operate.Our commitment encompasses all actions related to our products, services, associates, partners, vendors and communities.We will partner and engage with our environment through EARTH: Environmental Awareness and Renewal at Taj Hotels. For us EARTH is not a program, nor a process; it is a way of life.

EARTH( Enviornment Activities)

In an endeavour to reinstate its vision and efforts to boost sustainable tourism, Taj Hotels Resorts and Palaces presented EARTH (Environment Awareness & Renewal at Taj Hotels) this year. Implementing schemes such as the Gangroti Glacier Clean-Up Expedition, as well as designated Earth rooms, which minimise environmental impact, Taj is one of Asia’s largest group of hotels to commit to energy conservation and environmental management. EARTH has received certification from Green Globe, the only worldwide environmental certification program for travel and tourism.

The Taj began a century ago with a single landmark – The Taj Mahal Palace Hotel, Mumbai. Today, the various Taj hotels, in all their variety and historical richness, are recognised internationally as the symbols of true Indian hospitality. The Company’s history is integral to India’s emergence into the global business and leisure travel community; and looking to the future, Taj Hotels Resorts and Palaces is well positioned to meet the increase in travel activity with the rapid expansion of the Indian economy.

Taj Hotels has joined the internationally-recognised Green Globe benchmarking and certification system as an extension of its existing environmental policies. Taj Hotels has long recognised that as a leader it has an important contribution to make and a responsibility to demonstrate to others how they can be part of the fight against climate change.

Corporate Governance

Taj has been practicing good Corporate Governance even before Securities Exchange Board of India (SEBI) made it a mandatory requirement from 2001.

Out of more than 5000 companies listed with the Bombay Stock Exchange the Company is categorized as an “A Group” Company which group comprises only 200 companies and the criteria for selection is based on Market Capitalisation, Liquidity, Industry Representation, Listed History and track record of Compliance.

Being a TATA group Company, the Company goes beyond the mandatory requirements of Corporate Governance and conducts business in a fair and transparent manner. It maintains good investor relationships and endeavors to deliver to investor consistent quality services.

Customer facilities

Taj Hotel Exotica Resort & Spa Maldives, is an exclusive, private and romantic island resort lush with tropical plants and encircled by clear blue waters of one of the largest lagoons of the Maldives. Taj Hotel Exotica Resort & Spa Maldives spreads idyllically along a pristine beach and the serene lagoon. The award-winning resort, now re-launched, seamlessly extends the magic of the island’s blessed natural beauty in its design even as it offers the finest contemporary luxuries and services.

Taj Hotel Exotica Resort & Spa Maldives offers 59 Rooms and 3 Suites. All the rooms are completely refurbished and redesigned. 90% of the accommodation is built over water and 10% is on the beach front. The rooms offer infinite views of the Indian Ocean. Taj Spa, an authentic Indian spa, offers a range of signature wellness experiences. A choice of gourmet cuisine, water sports, and recreation make for a complete and exclusive destination.

Room Facilities

Air Conditioned

Satellite Television

International Direct Dial Telephone

Private Bathroom

Hairdryers

Mini Bar

Safe Deposit Box

24 Hour Room Service

Coffee/Tea Making Fac

High Speed Internet Access

Coffee/Tea Making Facilities

Hotel Facilities

Travel Desk

Doctor On Call

Laundry Service

Concierge Desk

Luggage Storage

24 Hour Front Desk

Postal/Parcel Service

Currency Exchange Counter

Baby Sitting Service(On Request)

Airport Shuttle Service(On Request)

Dining & Entertainment

24 Degress

Equator Bar

In Villa Dining

The Deep End

Sports & Leisure

Spa

Water Sports

Fitness Centre

Billiards/Snooker Tables

Meeting Facilities

Business Centre

SWOT Analysis

Strengths:-

The group has enormous power and strengths, which ma kes it the best and competitive, some of them are:

It consists of 57 properties in 40 locations across India and 18 international hotels.

Its stylish variety of hotels like; Taj exotica, Taj safari, The gateway hotels, Ginger hotels, Jivas spa etc.

Its effective and efficient management techniques and staff.

Its brand name.

The presence of Taj Hotels, Resorts and Palaces in various countries like United Kingdom, France, Germany, Italy, Dubai, Singapore, Australia, Japan, Russia and the United States of America.

Securing management contracts at Palm Island, Jumeirah in Dubai,Saraya Islands in Ras Al Khaimah, Aldar Group in Abu Dhabi, UAE Langkawi in Malaysia and Thimpu in Bhutan.

The various initiatives taken like; rollout of CustomerFeedback System, Tata Business Excellence Model, IT initiatives, Ginger hotels etc.

Weakness

Taj hotels being such a big brand, has a lot of advantages but every big company faces some odds and so does Taj. Some of its weakness;

Its hard to maintain such a huge chain of subsidiaries and there are more chances of mishaps in management.

Its huge competitors like Oberoi, Leela, Oriental, ITC etc are also providing same facilities and thus it becomes a weakness for Taj hotels.

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.

They need a lot of investment.

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.

Opportunities

The Group is poised strategically to take advantage of the following situation:

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.

Rapid expansion in both International and Domestic destinations, with top-of-the-line Luxury, Leisure and Business properties.

Meeting growing demand in the budget and mid-market segments.

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:

Cheaper international airfares, increasing affordability of travel to International

destinations, especially South East Asia, Europe and Australia.

Growing presence of international hospitality chains competing in the Luxury and

Business segments, to meet excess demand situation.

Appreciating Indian Rupee vis-à-vis the US Dollar, resulting in lower realisation on

foreign exchange earnings.

Slowdown of international demand resulting in reduction of revenues.

Future Strategies

Urban Sanctuaries – Luxury Weekends from the Taj

City Escapes

Island Escapes

Rejuvenate with Jiva

Christmas and New Year breaks

Some more developments in progress are:

TAJ opens its 5th hotel in Bangalore

Taj Coromandel presents ‘ANISE’

‘No Room for the Ordinary’ advertising campaign

Taj Residency Bangalore unveils ‘Jiva’ Spa

‘Heritage & Nature Walk’ At The Taj West End, Bangalore

Bhairo’,The Stunning New Rooftop Restaurant At Taj Lake Palace,

Udaipur

Intoxicating Bhutanese Bath’ At Taj Tashi, Thimphu, Bhutan

Two More Taj Safari Lodges Will Open In 2009

Taj Values

PEOPLE DIVERSITY, INTEGRITY &

RESPECT

PASSION FOR EXCELLENCE

EXCEED EXPECTATIONS

INNOVATION

SENSE OF URGENCY &

ACCOUNTABILITY

SOCIAL RESPONSIBILITY

JOY AT WORK

People are our greatest asset and the key to our success.

We respect diversity of people, ideas, cultures and honor the value of individuals in a team.

We believe in perfection to achieve excellence.

We continuously improve processes to surpass global benchmarks.

We succeed by exceeding expectations of all stakeholders and protecting the interest of our shareholders and playing by the rules.

We encourage innovation, embrace change and support growth through knowledge and learning.

We accept responsibility and deliver on promises with a sense of urgency and agility.

We commit to improve the quality of life of the communities we serve and our concern for the environment by returning to society what we earn

We recognize and respect each other in all interactions and set the example for our guests, business associates and colleagues.

We encourage a fair environment that supports equal opportunity to attract, develop and retain the best talent and endeavor to have fun too.

Taj Promises

At the Taj Group, our commitment to service excellence is rooted in our two guiding principles called the Four Steps of Service and the Taj People Philosophy. One of our key priorities is to empower our people to deliver on our legacy of impeccable service.

Four Steps of Service:

1. A warm and sincere welcome. Use the guest name, whenever possible.

2. Fulfill guest needs and provide anticipatory service.

3. Defect free products and services.

4. Fond farewell using the guest name, whenever possible.

Taj People Philosophy

The Taj People Philosophy displays our commitment to and belief in our people. We see Talent Management as the most important sustainable competitive advantage in the future.

You are an important member of the Taj family.

We endeavor to select, retain and compensate the best talent in the industry.

We reward and recognize quality customer care based upon individual and team performance.

We commit to providing you with opportunities for continuous learning and development.

We abide by fair and just policies that ensure your well-being and that of your family, the community and the environment.

We commit to regular and formal channels of communication, which nurture openness and transparency.

We strongly believe that you are the Taj.

Key Initiatives

Ginger Hotels

IHCL is in the process of rolling out its Smart Basics hotels, under the brand name “Ginger”. The first prototype has been launched in June 2004 in Bangalore, with roll out being planned in a number of cities and towns subsequently. These hotels will cater to the economy or ‘value for money’segment and being predominantly domestic clientele based, are far less prone to fluctuations than the luxury and upscale segments. In the long run, this

segment will help in derisking the current revenue stream of the company.

Brand Architecture

IHCL is in the process of clearly defining the 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.

Product Upgradation

IHCL continues to invest in renovation and relaunch of key / brand defining properties. In the last financial year IHCL upgraded rooms at the Taj Mahal Palace & Tower, Mumbai and Taj West End, Bangalore The lobby and public areas of Taj Lake Palace, Udaipur and Rambagh Palace, Jaipur were also renovated to provide a luxurious sense of arrival. The Sea Lounge and Harbour Bar at Taj Mahal Palace & Tower, Mumbai was relaunched, while a new Vietnamese restaurant ‘Blue Ginger’ was opened in Taj West End, Bangalore The renovated products and the new outlets were very well received in the market. The renovated rooms at Taj Mahal Palace & Tower, Mumbai and Taj West End, Bangalore have emerged as the price leaders in the respective cities. In the coming year IHCL intends to open a number of F&B outlets by celebrity Chefs with international cuisine. In the upscale segment, the properties are being relaunched to be at par with international level upscale hotels. The rooms at Taj President, Mumbai, Taj Residency, Bangalore, Jai Mahal Palace, Jaipur and Taj Holiday Village, Goa are being renovated and relaunched.

Service Excellence

In the last few years IHCL has undertaken a number of steps to significantly enhance service levels to be in line with the best in class. IHCL has constantly benchmarked itself with the key international luxury chains and strived to raise the bar. IHCL’s service excellence philosophy, has at its core, delivery through our people, processes and culture.

IHCL has taken a number of steps to provide highly personalized service to the discerning customer, including butler services in its luxury properties. In order to take care of the entire stay experience, IHCL has also completely revamped its Concierge services. The Centers of Excellence have been strengthened considerably to train staff to meet the exacting standards of a truly luxury hotel. Tata Business Excellence Model (TBEM) will play a significant role in raising the bar of service provided. The TBEM has been rolled out in all the three hotel divisions and will be rolled out to the international properties also.

Tata Business Excellence Model (TBEM)

In order to intensify the drive for Business Excellence, IHCL conducted Internal Assessments based on the Tata Business Excellence Model for Luxury, Leisure, Business SBUs as well as for Taj SATS Air Catering Limited. The Luxury Division has also applied for External Assessment, which is to be facilitated by Tata Quality Management Services. Based on the External Assessment (2003) feedback report and the feedback from the Internal Assessment, action plans to improve processes which finally impact the overall organizational effectiveness, have been drawn out and worked upon. Some of the key initiatives deployed across key hotels of the Taj group in the year 2003-04 are:

Rollout of the Customer Feedback System

The CFS was launched in November 2003 and has taken root in 30 hotels across Taj group. It is the primary and sole customer feedback system of the group. Till date, the system has clocked around 12,000 pieces of customer feedback. The feedback from all sources gets recorded and aggregated and analyzed to improve the service quality in areas of concern at each of the hotels. Feedback is not restricted to only guest difficulties (complaints) but also consists of compliments and suggestions. The feedback would ultimately be used for product planning as well.

IT initiatives

From a situation in 1999 where there was limited IT application, Taj group has today achieved domestic leadership in deploying IT to leverage its competencies and is rapidly approaching benchmarks set by international highly regarded chains. The first three phases of implementation of the IT strategy included putting in place the physical infrastructure across the Taj Group and getting customer relationship applications to ride on this physical infrastructure, with a view to enhancing customer services through customer information and recognition systems and better inventory management. Some of the key IT initiatives being under taken by IHCL are Orion, a comprehensive back office system, implementing Revenue Management system, Interactive TV Systems and National Call Center.

Competition

A Tata company shall fully strive for the establishment and support of a competitive, open market economy in India and abroad, and shall cooperate in efforts to promote the progressive and judicious liberalisation of trade and investment by a country. Specifically, a Tata company shall not engage in activities that generate or support the formation of monopolies, dominant market positions, cartels and similar unfair trade practices. A Tata company shall market its products and services on its own merits and shall not make unfair and misleading statements about competitors’ products and services. Any collection of competitive information shall be made only in the normal course of business and shall be obtained only through legally permitted sources and means.

Direct Competitors:

1. Oberoi Hotels

2. Oriental Hotels

3. ITC Welcomgroup

4. Hotel Leela etc.

Potential Target market : The upper class of the society is targeted. i.e. the richer people in the society. Their fares or tariffs are high as the luxuries provided by them are also standard and 5-star. Thus, this is in context to the Indian branches of Taj Hotels.

STRATEGY:

Taj group has used the Taj name for all its operations to leverage the brand equity commanded by the name Taj.

Taj brand is playing an increasing role of driving revenues

Taj group plans to add around 12 Hotels in the next 3 years .

Taj facilitates the expansion to other segment by endorsing the sub-brands with their parents’ brand names.

MARKETING STRATEGY

A higher emphasis was placed on the business segment as the profits are higher (this market being less price-sensitive) as compared to the luxury segment.

There was a proliferation of the Taj Presidency hotels not only in new cities, but also smaller towns.

The action plan is more opportunities, adding to and complementing the brand.

INNOVATIVE MARKETING SERVICES:

“STAY A BIT LONGER”- If a customer book 2 nights or 3 with Taj hotels, then they surprise to customer with a complimentary night’s stay at select hotels.

“EARLY BIRD OFFER”- Say at any of Taj properties ranging from modern business hotels to idyllic beach resorts to authentic Rajput palaces, 10 days in advance and avail the Early Bird Rate to enjoy savings of 20% over our Best Available Rate (BAR).

“SUITE SURPRISES” – Book between 1-4 nights in Taj Suites and enjoy a free night’s stay. Luxury at the Taj isn’t only about indulgences, but advantages. Book 1, 2, 3 or 4 nights in our majestic Suites, featuring impeccable interiors and classic style, and enjoy a complimentary night’s stay.

TAJ SAFARIS are wildlife lodges that allow travelers to experience the unparalleled beauty of the Indian jungle amidst luxurious surroundings. They offer India’s 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.

TAJ AIR, a luxury private jet operation with state-of-the-art Falcon 2000 aircrafts designed by Dassault Aviation, France; and Taj Yachts, two 3-bedroom luxury yachts which can be used by guests in Mumbai and Kochi, in Kerala.

“BUSINESS EDGE” – At the Taj, business is not just unconventional, but valuable. Alongside the quintessential fusion of business and pleasure, you will also enjoy unbelievable savings and benefits on our traditional hospitality and exceptional service that are sure to leave you pleasantly surprised. 

Breakfast for two (single/double same rate)

Hotel Credit of Rs 2000/- per stay against F&B, laundry, or spa (where spa services are available)

KEY SUCCESS FACTORS

Technology related:-Used of advance technology in hotel premises.

Manufacturing- related: – High utilization of fixed assets.

– Quality control know-how.

– Serving customer according to their specification.

Distribution-related: – Presence of hotel chain at various places.

– A strong network.

Marketing related: – Breadth of product line and product selection.

– Personalized customer services.

– A well-known and well-respected brand name.