The Indian Hotels Company Limited (IHCL) launched its first hotel, The Taj Mahal Palace and Tower Hotel at Mumbai on the 16th of December, 1903. For over 100 years the Taj Group of Hotels has strived to lay the foundation of luxurious hospitality gracefully intertwined the heritage of India (http://www.tajhotels.com/abouttaj/companyinformation/default.htm). The current situation of the Taj Hotels, Resorts and Palaces, a part of the premier brand Indian Hotels Company Limited, shows that it is an upscale luxury brand which caters to the upper segment in society. They provide a legendary experience in the hospitality industry, a class above its competitors with all the services of a luxury hotel. The Taj Hotels, Resorts and Palaces operate 57 hotels all over India with further 18 international hotels worldwide. The segment on which the Taj Group focuses is a highly competitive segment with quite a number of competitors. The brand primarily caters to the needs of the price insensitive customers. Most of the Taj Hotels are five star or five star deluxe hotels, offering approximately 60-520 high quality rooms. The Taj Group is constantly venturing into new avenues of business such as TajAir and TajSATS. TajAir offers luxury travel to more than 100 destinations. The company owns two Falcon 2000 aircrafts customized to seat eight passengers with the highest level of comfort and luxury. (http://www.tajaironline.com/about.htm) TajSATS is the market leader in airline catering. The company provides in-flight catering at Mumbai, Delhi, Chennai, Kolkata, Amritsar, Goa and Bangalore and manages Airport Lounges in Mumbai and Chennai. (http://www.tajsats.com/abt_profile.htm) The gross revenue generated for nine months ended on 31st December, 2008 was Rs. 120135 lakhs. Its profit after the payment of taxes for the same period is Rs. 19578 lakhs (Refer Appendix ). In the following report, the Indian Hospitality market has been scrutinized considering the rate of market growth and budding opportunities that have been identified. The report mainly focuses on the internal and external situation of the Taj Hotels, Resorts and Palaces along with its SWOT Analysis. Internal situational audit
The purpose of an internal analysis is to evaluate the company’s performance so that its efforts can be directed in the most effective and efficient manner. It consists of an in-depth examination and assessment of the company’s performance and competitive position in each of the key functional areas of marketing, operations, human resources and finance (Reich, A.Z, 1997). Thus, in this report we are including a detailed analysis of the above mentioned four critical departments. Operations:
India is a very famous holiday destination, and provides ample facilities as far as lodging is concerned. It has state of the art hotels to cater to its ever booming travel and tourism industry. International as well as domestic customers have now experienced comfort and are willing to pay exorbitant prices for luxurious hotels, which has generated a rather extensive demand in the tourism industry. In such a scenario the Taj Group of Hotels emerges as a strong market player for this segment. Equipped with world class infrastructural amenities, the Luxury Hotels in India offer the tourists with a fine lodging and dining experience. Catering to its target market, (Refer Appendix – ) this chain of luxury hotels extends a warm welcome to all its customers. The Taj Group has 11 luxury hotels in India and the average room rate for a day at any Taj hotel is above Rs.10000. There are two hotels each in Mumbai and Delhi where surprisingly the ARR is between Rs. 13000-28000 which is lower as compared to the ones in Rajasthan where the rates are ranging from Rs. 31000-50000 per room per night. All Taj properties are located near the domestic or international airports which is thus, a plus point for increasing business...