Indian Hotels Company Attempting a broad competitive Niche without dil

Indian Hotels Company Ltd. : 

Indian Hotels Company Ltd. Attempting a Broad Competitive Niche Without Diluting Brand

Taj Hotels : 

Taj Hotels Recognized as Asia’s Largest and Finest Hotel Companies. International Presence like – UK, USA, SriLanka, Maldives, Middle East, Australia, Seychelles etc. Expanded with 73 Hotels in 15 countries on 5 continents, more than 9200 rooms. Grouped in Luxury, Leisure & Business Categories.

TAj Hotels & Resorts : 

TAj Hotels & Resorts Areas of Business Taj Hotels Resorts, Palaces, Luxury, Leisure & Business Taj Air Falcon 2000 Aircrafts and Taj yachts Taj Sats Air Catering Taj Wellington Mews Luxury Residences 80 Services Appts. Associates & JVs Budget Hotels Ginger in smaller towns and cities (Targeting Low & Middle Income Group Tourists) The Taj Spas Overseas Markets through JVs & Acquisitions.

Change in Business Model : 

Change in Business Model Tata group has seen major restructuring last 15 years and thus IHCL. Shift to Lower capital employment strategy Expanding through Management contracts & JVs. Reduced Manpower to emerge as a lean Organization Selling off Surplus Land and assets for increasing capital JV with GVK group in 25.5:74.5 ratio increased Market share to 74% and improved market share and bargaining power.

Key Initiatives : 

Key Initiatives Shifting towards ‘Assets-Light’ Model to focus more in hospitality Restructuring its Property portfolio to fit into premium image, which will release cash. Reduction in staff, selling surplus lands and renovating lead properties. Restructuring Global Operations to reduce debt.

IHCL VISION : 

IHCL VISION “ To Embrace talent and harness expertise to leverage standards of excellence in the art of Hospitality to grow our international presence, increase domestic dominance and create value for all stakeholders” Aims to have 20000 rooms, in 25 major destinations around the world, with a group turnover of USD 2 billion and 33% share from international operations by 2010.

CORE VALUES : 

CORE VALUES Integrity & Respect Passion for Excellence Exceed Expectations Innovation Sense of Urgency & Accountability Social Responsibility Joy at Work

INDIAN HOSPITALITY MARKET : 

INDIAN HOSPITALITY MARKET As per the TTCR-2009 by the World Economic Forum, India is ranked 11th in the Asia Pacific region and 62nd overall, moving up three places on the list of the world's attractive destinations The India travel and tourism industry ranked 5th in the long-term (10-year) growth and is expected to be the second largest employer in the world by 2019. 'Hotels in India' have supply of 100,000 rooms. 4.4 million tourists visited India last year and at current trend, demand will soar to 10 million in 2010 - to accommodate 350 million domestic travelers. 'Hotels in India' has a shortage of 150,000 rooms Room rates are most likely to rise 25% annually and occupancy to rise by 80%, over the next two years.

Entry Models for Hotels in India : 

Entry Models for Hotels in India Wholly Owned Subsidiaries Acquisitions Joint Ventures Licensing & Franchising

Other Aspects in Indian Scenario : 

Other Aspects in Indian Scenario Lack of Skilled labour Corruption Internal Security Performance of Competitors based on Key Success Factors Financial Strength Strong Brand Customer Relationship

Global Alliances & JVs : 

Global Alliances & JVs 2005 – The Pierre, NY, Manhattan (44 Storied Hotel + 52 Suites & full serviced Appts) Strategic Marketing Alliance with Shilla Hotels in Korea, Raffles Hotels & Resorts and CC Africa (now ‘&beyond Africa’). Secured Management Contracts in Dubai, Malaysia & Bhutan.

Global Acquisitions : 

Global Acquisitions 2006 – Ritz-Carlton Hotel, Boston (273 Rooms) ($107Mn) 2007 – Campton Place, San Francisco (110 Rooms) ($ 58Mn) 2005 – W- Bay, Sydney, (100 Rooms).

Vertical Alliances : 

Vertical Alliances Marketing Alliances – Silver sea Cruises Current Partnership – BMI (British Midland) Diamond Club British Airways (Exec. Club) Cathay Pacific Air (Asia Miles) Delta Airlines (Sky miles) Gulf Air (Frequent Flyer) Lufthansa (Miles & More) Singapore Air (Kris Flyers) Virgin Atlantic (Flying Club) Affiliates – Citibank & American Express

Vertical Internal Development : 

Vertical Internal Development Taj Air – A luxury Private jet operation with State-of-the-Art Falcon 2000 aircrafts designed by Dassault Aviation Fr. Taj Yachts – Two 3 bedroom luxury Yachts in Mumbai & Kochi. Taj Luxury Residents Taj SATS (air catering) Inditravels (Travel services)

Horizontal Acquisitions & JVs : 

Horizontal Acquisitions & JVs The Falaknuma Palace 80 rooms Heritage Hotel (on Lease for 99 years) Alliances with GVK group in Hyderabad.(Taj Krishna & Taj residency)

Horizontal Internal Developments : 

Horizontal Internal Developments Ginger Hotels Jiva Spas Luxury Residents All these Internal Developments are to de-risk its business by innovation

Is IHCL an Excelling Organization? : 

Is IHCL an Excelling Organization? Innovations & Entrepreneurship Consistency in performance Strong Value System Strong Customer Orientation Market Leadership Strong Growth – Domestically & Internationally Partnerships & Networking

Conclusion : 

Conclusion By the study we can conclude that IHCL, inspite of various downstream factors, has developed itself and by constantly reducing its weaknesses and threats has emerged as the market leader. Their Business strategy talks of their core values and ethics inculcated in their management.