Indian Hotels Company Limited (IHCL) by Bidhu B Mishra

Presented by-
BidhuB Mishra
Indian HotelsCompany Limited (IHCL)
IndianInstituteof Tourism
and Travel Management
Noida

Briefly introduce
Taj Group of Hotels

• Indian Hotels Company Limited, branded as Taj Group, is a
chain of hotels and resorts.
• IHCL + its subsidiaries =Taj Hotels Resorts and Palaces and is
recognized as one of Asia's largest and finest hotel company.
• Headquartered - Oxford House in Mumbai,
• Incorporated by - The founder of the Tata Group, Mr. Jamsetji
N. Tata
• Founded- 1903
Introduction

Introduction
• Company opened its first property, The Taj Mahal Palace
Hotel, Bombay in 1903
• 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.

Introduction
• IHCL operate in the luxury, premium, mid-market and value
segments of the market through-:
• Taj - (Luxury full-service hotels, resorts and palaces)
• Taj Exotica – (Resort and Spa brand)
• Taj Safaris - (Wildlife lodges)
• Vivanta by Taj Hotels & Resorts
• The Gateway Hotels & Resorts
• Ginger - (Economy hotels)

• Taj Hotels also promise a whole new experience of tranquillity
and total 'wellness', through Jiva Spas
• IHCL operates Taj Air, a luxury private jet operation with state-
of-the-art Falcon 2000 aircrafts designed by Dassault Aviation,
France
• IHCL also operates Taj SATS Air Catering Ltd., the largest
airline catering service in South Asia
• Additionally, it operates the Indian Institute of Hotel
Management, Aurangabad since 1993

Explain to Discuss How IHCL has Positioned
Itself in The Budget Category Without
Diluting the Image Of its Flagship Taj Brand ?

IndiOne ?
Roots Corporation Limited (RCL) is a wholly owned subsidiary
of the Indian Hotels Company Limited (IHCL). Incorporated in
December 2003, RCL operates IndiOne, a first-of-its-kind
Smart Basics hotels across the country.
The Smart Basics hotels from the Indian Hotels Company
Limited (IHCL) have been named Ginger. The first of the Smart
Basics hotels was launched in Whitefield Bangalore and was
called indiOne

Why IndiOne ?
The primary objective behind the launch of indiOne is to
provide a superior product offering and consistent experience
to travellers, far beyond the present offerings in the industry.
indiOne caters to corporate executives, traders and self-
employed professionals, tourists, pilgrims and leisure
travellers who are looking for a clean, secure, convenient
hotel, without having to pay premium prices.

Developed in association with renowned
corporate strategy thinker, Dr CK Prahalad, the
indiOne hotels are designed to be functional,
while providing an extremely comfortable,
clean and safe stay at an affordable cost.
'Smart Basics' a new category of hotels,
signifies simplicity, convenience, informality,
style, warmth, modernity, and affordability.

• Strong sales and marketing
• Innovative product ideas
• Maintaining high service standards
• Creating a talent pool of people
Initial Problems
• The venture was not under the Brand name of Taj.
• After stripping features in the services and cutting cost, they
cannot go below Rs. 2500.
• It was not a competitive price for the Budget Segment.

Strategic Move
• They took the assistance of Dr. Prahalad.
He suggested the bottom – up approach to arrive at a price
and the service offering
• They surveyed managers, salespersons and business travelers
of mid-sized companies
• This gave them a fair idea of price range i.e. Rs. 1000/room

Strategic Move
• Each hotel was built in the area of 1 acre with 100 rooms.
• They budget of each hotel was marked at Rs. 100 millions
which means Rs. 1 million/ room.
• This was comparatively far lower than the investment of Rs. 5
millions – 15 millions / room in developing five star hotels.

Strategic Move
• Size of the room was kept small- around 180 sq. ft. as
compared to 250- 400 sq. ft. of premium segment hotel.
• The company cut down room service and applied the concept
of “Help Yourself”.
• This concept helped in operating the hotel with 25 people as
compared to 250 people in premium category hotel.

Pricing
• Single Room Charges- Rs. 900
• Double Room Charges- Rs. 950.
• The customers were entitled to a discount of Rs. 50 if booking
is made through internet.
• This practice helped to cut their marketing costs which
contributes to 10% -15 % of room costs.

Special Offers
• Early Booking Offer:- “SAVE NOW” Book Early and Pay Less.
• Last Minutes Rates:- Sensational last minutes rates in their top
destinations.
• Day Use Rates:- Introducing special day use rates for travelers
to freshen up or relax before heading to work.
• Coolest Offer Packages:- Visit most popular destination
starting at just Rs. 2799/- onwards.

Facilities
 Ginger’s facilities and services are intelligently designed for
customers comfort and convenience.
It provides:-
 Choice of single, twin, and queen-sized rooms
 Individually air-conditioned
 Electronic locks,
 Wood laminate flooring
 Comfortable beds
 A work area,
 A 17-inch flat screen colour television with
satellite channels,

Facilities
 Direct-dial telephone including STD facility
 Mini-fridge, tea / coffee maker
 24 hours hot / cold water and toiletries
 The indiOne hotel also has a restaurant
 Meeting room
 Gymnasium facilities
 A cyber cafe,
 24-hour reception
 ATM, digital safe deposit boxes
 100 per cent power back up
Wi-Fi connectivity

Booking System
• It provides a toll- free number
1860-266-3333 to book over phone
• Payment Options-:
 American Express Card.
 Master Card / Debit Card.
 Visa credit/ Debit Card.
 Net Banking.
• Facility of group booking is also available

Corporate Advantages
• Optimizes costs:- Enjoy special customized rates
• Enjoy exciting facilities
• Convenience and peace of mind:- suitable location, rooms are
hygienic, peaceful & comfortable.
• Consistency:- Uniform standard in services
• Hassle free reservations
• Transparency in booking process
• National Contract

Global Trends
• Enjoy unmatched blend of comfort and economy &
convenience in India
• According to global study, international travelers are
increasingly concerned about their safety while choosing
hotels, so Ginger ensures stringent checks
• The Ease of the internet for booking solutions and customer
can also get SMS and e-mail updates of every transaction

Strategies Adopted By Ginger Hotels
Meeting room for Corporate
Banquet halls
Gymnasium facilities with Certified Trainers
Hotels in Malls
PPP models - Yatri Niwas

State What The Potential Opportunities That
Companies Have in Serving The Population at
‘The Bottom Of The Pyramid’.
Explain The Concept Also ?

‘The Bottom of The Pyramid’
• “Bottom of the Pyramid” (BoP) was first used by
U.S. President Franklin D. Roosevelt in 1932 while he was
talking about « the forgotten man at the bottom of the
economic pyramid .
• In economics, the bottom of the pyramid is the largest, but
poorest socio-economic group. In global terms, this is the 4
billion people who live on less than US$2.50 per day

Technically, a member of the BOP is part of the largest but
poorest groups of the world's population(4 billion people ),
who live with less than $2.50 a day and are excluded from the
modernity of our globalised civilized societies, including
consumption and choice as well as access to organised
financial services.

The phrase “bottom of the pyramid” is used in particular by
people developing new models of doing business that
deliberately target that demographic, often using new
technology. This field is also often referred to as the
"Base of the Pyramid" or just the "BoP".

PRINCIPLES OF INNOVATION FOR BOTTOM OF THE PYRAMID
MARKETS
 Focus on price performance.
 Hybrid solutions, blending old and new technology.
 Scalable and transportable operations
 Eco-friendly products.
 Build logistical and manufacturing infrastructure.
 Educate customers in product usage.
 Products must work in hostile environments: noise, dust,
unsanitary conditions, abuse, electric blackouts, water
pollution.
 Adaptable user interface to heterogeneous consumer bases.
 Distribution methods
 Focus on broad architecture,

Strengths of Bottom of The Pyramid
Thinking, Benefits
• There is money at the Bottom of the Pyramid: it is a viable
market.
• Access to Bottom of the Pyramid markets is not necessarily
difficult. Unconventional approaches such as the Avon ladies
approach may work.
• The poor are very brand-conscious.
• The Bottom of the Pyramid market has been connected
(mobile phones, TV, Internet).
• Bottom of the Pyramid consumers are very much open
towards advanced technology.

BoP economic potential may be
underestimated because of four main
misperceptions of poverty
• Income is too low, the poor can’t buy MNCs’ products.
• Goods sold in developing markets are so cheap that MNCs
can’t make reasonable profit.
• The poor don’t waste money on luxury products, they only
fulfill basic needs.
• The poor don’t have the required skills for the use of
advanced technology.

• To influence its‟ brand to grow inside the same business
focusing on another and so far undiscovered section or
extend in the neighbouring administration commercial
enterprises where it can power its impressive aptitude and
wide contrasting features.
• Taj into the top of the line restaurant business make an
extraordinary vital fit

Advantage and Opportunities
• The WTO (World Travel Organization) predicts that India will
receive 25 million tourists by year 2015.
• Stable and consistent growth projected
• India currently has over 200,000 hotel rooms spread across
hotel categories and guest-houses and is still facing a shortfall
of over 100,000 rooms
• India to become a major hub for medical tourism, with
revenues from the industry estimated to grow to US$ 2.2
billion by 2012,
• India will add almost 114,000 hotel guest rooms to its
inventory over the next five years.
• There are 41% middle affluent class in India. It is predicted
that Luxury market is to expand in India so the company
should target this segment

• The emerging market – Budget & Business Hotels
• Better infrastructure and air connectivity
• More international brands and large domestic players
entering the fray
• Shift of focus away from the metros into Tier I and Tier II cities
• 29 Mega Tourism projects across 22 Indian states

• Investment in smaller cities
• Hospitality chains looking upcountry
• Emerging need for a suitable project mix
• International hospitality chains are expected to acquire local
players to increase their presence in the country.
• More room for strategic alliances and partnerships
• All players are looking at faster turn around times
Advantages & Opportunities

• GREEN Technology is the in thing
• Diversification into new segments
• All hospitality chains local and international are now
diversifying into new product segments
• IHCL has already launched budget hotels in India, while Accor
has announced similar plans
• High quality expectations and need for more innovation and
eco-friendly solutions are also driving hotel operators to look
for options elsewhere

Indian Hotels Company Limited (IHCL) by Bidhu B Mishra

Indian Hotels Company Limited (IHCL) by Bidhu B Mishra

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