INDEX

1. Hospitality Sector 2. History Origin 3. About Hotel Industry 4. The Market Trends 5. Types of Accommodation in India 6. Hotel Industry in Mumbai 7. The Taj Group 8. Hotel Taj Mahal Marketing Mix The Competitors SWOT Analysis 9. Conclusion 10.Bibliography

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HOSPITALITY SECTOR
Hospitality means kindness in welcoming strangers or guests. The word Hospitality is derives from the Latin word hospes, meaning guest, and developed into hospice, a place of shelter for travellers. These days, the services offered to the modern traveller by hospitality establishments can cater for every human comfort. The hospitality business is a massive industry encompassing all forms of transport, tourism, accommodation, dining, drinking, entertainment, recreation and games. It is the worlds largest employer of people and a vast consumer of physical resources. Some countries depend almost entirely on tourism and business travel and the consequent use the visitors make of the countrys hospitality facilities. The growth of hospitality has always been tied to the expansion of business, tourism and travel, and is arguably the oldest professional activity. Providing travellers with the place to stay and eat is mentioned in the earliest writings of people, and the concept of a hotel (public house and inn) pre-dates the Bible. In fact the Egyptians, Greeks and Romans built pleasure and tourist resorts that rivaled today are massive complexes in style and grandeur, if not in modern appliances. The hospitality industry consists of a large of different types of businesses with each one having its own means of producing income. The main types of businesses in the category of hospitality are hotels, motels, tourist centers, holiday homes, guest houses. We will be dealing with the Hotel Industry, which is the most important industry as far as Hospitality Industry is concerned.

HISTORY ORIGIN
The origin of the hotel/hospitality industry is obscure. However, the Christian bible cites Christ's birth in the manger of an early inn. Historians know that taverns (inns) serviced the travelers on the iters (the roads) of the Roman Empire. Providing service to the relatively large number of Crusaders between the 11th and 13th centuries was the responsibility of the Catholic Church, which relied on one of its orders, The Knights Hospitalers, to deliver those accommodations. Commercial travel in Europe was an outgrowth of British commerce, which carried over to the American colonies in the 1700's. Mass travel is a modern phenomenon that emerged after World War II. Mass tourism continues to grow as political freedom, economic wherewithal, and social equality spread across the globe. With the large powers at peace and the economic engine of development running at full steam, international travel and, consequently, the hotel industry are poised for decades of growth. Estimates abound as to the importance and size of hotel keeping. Certainly, its economic contribution is critical to the global economy whether as a service to the business community or as a destination for tourism development.

ABOUT HOTEL INDUSTRY

Prior to the 1980's, the Indian Hotel Industry was a nascent and slow growing industry primarily consisting of relatively static, single hotel companies. However, Asian games in 1982 and the subsequent partial liberalization of the Indian economy generated tourism interest in India with significant benefits accruing to the hotel and tourism sector in terms of improved demand patterns. Fortunes of the hotel industry are tied to the fortunes of tourism and the general business climate in the country, which is why the economic liberalization initiatives implemented since 1991, led to a soaring demand and supply gap in the hotel industry. This enabled Indian hotel companies to increase their Average Room Realisations by almost 50% between April 1994 and April 1997 and still enjoy extremely high occupancies of above 80% for most of this period. During this time Average Room Realizations of Indian 5 star hotels were comparable to those prevailing in Singapore and Hong Kong and were among the highest in the region. Also, during this time there was a noticeable shift in customer mix of 5 star hotels as the share of business revenues far outweighed revenues from any other segment. Room supply in the five-star segment has grown by only 3 per cent over the last five years and consequently this has not been an area of concern in the past as new capacity additions in the five-star segment in the metro cities have been slow. It is expected that in the metro cities, after three to four years, the hotel industry is expected to

face major problems on the supply side. However, we would regard these as a long-term concern. The slow growth in room supply in the past can be attributed to the high land costs, long gestation periods, license problems and the scarcity of good locations. The hotel sector boomed from 1992 to 1996. Led by the lure of easy money and missed perception that hotels can be a simple business, profitable (especially the five-star segment) and is easy to get a foreign tie-up prompted many companies in the construction and real estate business to enter the arena. As the growth in metro cities is getting saturated, hotel chains are looking on to this segment for future growth. However, since 1997 political uncertainty and a general economic slowdown coupled with slackened tourist arrivals have resulted in steadily falling occupancies and very marginal increases in ARRs. In fact the general trend among hotel companies in FY97 and FY98 has been to offer heavy discounts in order to attract customers. Thus the over reliance of Indian five star hotels on the business traveler during the last few years has come back to haunt the industry in the wake of depressed business sentiment in the country. The hotel industry has reported impressive earnings and revenue growth for the year ended March 2001. This was after a slack period in the financial year 2000, when net profits dipped on a negative sales growth. The industry is again headed for a hit, with the attacks on the world's largest financial centre in the US.

Perishability:
If the full capacity of the services is not utilized, the service becomes perishable. If a hotel having an accommodation facility of 100 rooms is able to lease out only 70 rooms on a particular day, then the remaining 30 rooms or 30% capacity gets perished and can never be reused. The product is perishable -- a room not sold tonight is lost forever. The location and product inventory (rooms) are fixed -- they cannot be moved as demand

patterns change. Entry into the business takes large amounts of capital -- creating huge fixed costs that necessitate high occupancies to achieve a break-even level of volume..

Variability:
The fact that service quality is difficult to control compounds the marketer's task. Intangibility alone would not be such a problem in customers could be sure that the services they were to receive would be just like the successful experiences their neighbors were so pleased with. But in fact, customers know that services can vary greatly. Services are performances, often involving the cooperation and skill of several individuals, and are therefore unlikely to be same every time. This potential variability of service quality raises the risk faced by the consumer.

The service provider must find ways to reduce the perceived risk due to variability. One method is to design services to be as uniform as possible - by training personnel to follow closely defined procedures, or by automating as many aspects of the services as possible. The appeal of some service personnel - particularly, the hotel industry- lies in their spontaneity and flexibility to address individual customer needs. The danger with too much standardization is that these attributes may be designed right out of the services, therefore reducing much of their appeal. A second way to deal with

perceived risk from variability is to provide satisfaction guarantees or other assurances that the customer will not be stuck with a bad result.

Inseparability:
This characteristic is interpreted differently by different service marketing marketers, but all interpretations point out that special operation problems exist for the firm's managers. One interpretation of this term is the inseparability of customers from the service delivery process. In particular, many services require the participation of the customer in the production process. Unlike goods, which are often produced in a location far removed from the customer and totally under the control of the manufacturing firm, service production often requires the presence and active participation of the customer and of other customers. Depending upon the skill, attitude, cooperation and so on that customers bring to the service encounter, the results can be good or bad, but in any event are hard to standardize.

Intangibility:
Intangible services are difficult to sell because they cannot be produced and displayed ahead of time. They are therefore harder to communicate to prospective customers. Marketers of services can reduce these risks by stressing tangible cues that will convey reassurance and quality to the prospective customers. These tangible cues range from the firm's physical facilities to the appearance and demeanor of its staff to the letterhead on its stationery to its logo. In case of hotel industry, the core benefit is getting good food, good boarding and lodging facilities. The tangible services are those, which one can touch and taste. Thus hotel industry is tangible.

Profitability in the hotel Industry is dependent on many factors:

Tourism:

This is the primary factor for the hotel industry. India has great potential of becoming a major stop for tourists. However, lack of infrastructure has kept the foreign tourist at bay. The government has been actively participating in propagating India as an oasis for global travellers. India has always conjured up a fascinating image in the mind of foreign tourists. India has an advantage of having diverse cultures, languages and religions, which makes it an exciting tourist destination for people all over the world.

Business factor:

Liberalization has brought home a new class of MNCs, which has increased the number of corporate travellers visiting India. Other than metros, developing cities have also come into the limelight and hence there has been an increase in demand for hotels in various places. This class of business travellers has reduced their dependence on seasonal tourism. The industry is again headed for a hit, with the attacks on the world's largest financial centre in the US.

Room occupancy:

The ARR and occupancy are the other critical factors that determine profitability. These, in turn, depend on the location, star rating, amenities and quality of service. The occupancy of Indian hotels and the ARR has been on the decline for the past three to four years due to the turbulent socio-political environment in the nation and also because of the East Asian economic crisis. However, the hotel industry reported impressive earnings and revenue growth for the year ended March 2003.

Seasonality:

India being a tropical nation witnesses an inflow of leisure tourists, mainly during the winter months of October to March. Hence the hotel industry has a better second half. In the first half of the year, local tourists prefer April to May and October in the second half due to summer and Diwali vacations respectively. Other months being off-season periods, many hotels offer heavy discounts on room tariff to ensure repeat customers such as corporates, airline crewmembers and tour groups.

Political scenario:

In the past couple of years, the hotel industry has been going through a lean phase. Room occupancy has been on a decline, mainly due to a steep fall in both business and tourist arrivals. Though the exorbitant rates of five-star hotels as compared to the quality of services provided are one of the factors for the decline, the fluid political environment has also had a negative impact and foiled the dreams of the Indian hotel industry.

Tax structure:

This industry is one of the heavily taxed sectors of India. State governments have levied various taxes like expenditure tax, luxury tax and sales tax. This is apart from the income tax levied by the central government. These taxes are as high as 30 per cent in cities like Chennai, while other Asian countries have a tax structure of 4 to 5 per cent. As a result, Indian hotels are more expensive than their Asian counterparts.

Industry bottlenecks:

Progress of the industry is held hostage to various bottlenecks existing within the industry like high variable costs. The hotel industry is reeling under high variable expenses. A high wage bill, maintenance costs and overhead expenses mark the industry. Domestic hotel chains have a high man-room ratio as compared to their overseas counterpart.

Differential pricing:

Hotels in India typically offer discounts on published room tariffs to many clients. As a result, though the occupancy rate of these hotels increases, the ARR does not increase proportionally. However, the magnitude of discounts varies depending on the nature of the client location and size of the hotel. Furthermore, in the dual tariff rate system, there is a domestic currency rate for local travellers and a dollar rate applying to foreign travellers. Hence there is need of a common yardstick for tariff rates.

Market Trends

With the demand curve in the metros stagnating, smaller towns have emerged as potential growth areas. Thus, chain hotels like IHCL, EIH and ITCH are better placed than single-location hotels like BHL and AHL. Luxury, leisure and heritage hotels are concentrated in tourist circuits like DelhiAgra-Jaipur, Mysore-Bangalore, Bhubansehwar-Puri-Konark, Jaisalmer-Jodhpur-Bikaner and Mahabalipuram-Pondicherry. Various MNCs have started entering the Indian hotel industry. Le Meridian plans to set up 17 hotels in the country. It already has three five-star hotels at Delhi, Bangalore and Pune; the Mumbai branch was recently inaugurated. The company also is coming up with more hotels at Goa and Cochin in the next couple of years. Carlson Restaurant Worldwide, Accord Asia Pacific, Best Western International and Bass Hotels are the other leading multinational hotel groups in India. Most players, with the exception of IHCL and EIH, have entered into a marketing tie-up with major international hotel chains. For example, ITC-Sheraton, LeelaKempinski and AHL-Hyatt Regency are well-established collaborations. BHL, too, has a tie-up with the Inter-Continental Hotels Corporation. The Indian partners gain from the brand following of the worldwide international chain and get global exposure. International hotel chains do not stand to lose either. They get an opportunity to test Indian waters without setting up their own infrastructure.

Types of Accommodation in India

(On The Basis Of Standards)

Like most of the countries in world, India also has hotels divided in different categories depending on their location, facilities, infrastructure, and amenities provided. All the star hotels in India are government approved with continuous control on the quality of services offered.

Five star hotels

The most luxurious and

conveniently located hotels in India are grouped under Five Star Deluxe Hotel Category. Five Star Deluxe hotels in India are globally competitive in the quality of service provided, facilities offered, and accommodation options. These hotels are located primarily in metropolitan cities like New Delhi and Mumbai and major tourist destinations like Jaipur, Agra, and Goa. These are top of the line hotels located mostly in the big cities. These hotels provide all the modern facilities for accommodation and recreation matching international standards in hospitality. Many of these hotels are situated in the Central Business Districts of the metropolitan cities or near the centers of transportation providing exceptional value for the business travelers.

Four Star Hotels

A rung below five star hotels, these hotels provide all the modern amenities to the travelers with a limited budget. Quality of the services is almost as high as the five stars and above categories. These kinds of hotels are there for the travelers with a limited budget or for the places, which might not get the tourist traffic associated with larger cities.

Three Star Hotels

These are mainly economy class hotels located in the bigger and smaller cities and catering to the needs of budget travelers. Lesser in amenities and facilities, these hotels are value for money and gives good accommodation and related services on the reduced price. Services would be the stripped down version of higher categories of hotels but sufficient to fulfill your basic needs.

Two Star Hotels

These hotels are most available in the small cities and in particular areas of larger cities. Catering to the backpacker tourist traffic, these hotels provide all the basic facilities needed for general accommodation and offers lowest prices.

One Star Hotels

The hotels with most basic facilities, small number of rooms, and location in the far-flung areas are grouped under One Star Hotel category. These hotels are best when you are looking for cheapest available accommodation option (apart from camps and hostels).

(On The Basis Of Nature)

Heritage Hotels
Heritage hotels in India are best if you are looking for sheer elegance, luxury, and royal treatment. They are not just another accommodation options but tourist attractions

in themselves. Exquisitely designed and decorated, meticulously preserved, high standards of service, and ethnic cultural motifs helps the tourists get the complete experience of an India that otherwise exists only in the history books. E.g. The Lake Palace Hotel, Udaipur

Beach Resorts Hotels

Peninsular India bounded by Arabian Sea, Bay of Bengal, Indian Ocean and the two emerald archipelagos of Lakshwadeep and Andaman and Nicobar have a long coastline of around 7500 km, offering an amazing array of beaches, some popular, some not so well known.

Wildlife Resort Hotels

A wildlife tour is incomplete if you dont actually live in a forest for a few days. Imagine living in a rest house or a tent the midst of the dense wilderness, and waking up to the twittering of birds, or maybe the roar of a lion! Day trips alone are certainly not enough to show you the true majesty of the wild, so why not try this too?

Government Approved Hotels

These are the hotels, which might not have applied for star categorization or small enough to find them in the list. Many of the wildlife resorts, lodges, and hostels are government approved providing a minimum level of accommodation facilities at far off places.

Guesthouses

These provide the minimum facility of food & beverages along with accommodation. The standard of accommodation is not as good as a hotel. The menu offered is not as elaborate as a hotel or similar establishments. Services are not very professional or specialized. Expenses are very much less in comparison to the above mentioned other establishments. Generally people who cant afford the expenses or the luxuries of higherclass establishments make use of these facilities.

Dormitories
Dormitories mean a building containing one or more accommodation units and may contain shared kitchen facilities, for use by students enrolled at a post-secondary institution. Dormitories are set up to offer a good environment for studying, and to experience independent citizen life. The dormitory rooms are furnished with beds, study tables, chairs, washstands, and telephones. Further, dormitories are equipped with lounges, laundry rooms, and kitchenettes. Students, therefore, can start studying only if they bring their personal belongings.

Holiday Villages
Holiday villages are usually large, self-contained resorts and ideal people who want a lively holiday with children's clubs, organized activities and evening entertainments laid on. Many holiday villages offer for

children's clubs, run by qualified English speaking staff, for babies through to late teens. These are invaluable for families, as they not only give children a chance to meet new friends and have fun, but also give adults some time off too. However, though standards are improving markedly, somehow this is never a really smart option. Accommodation, unless rated at least four or five stars, can be cramped for example.

Hotel Industry in Mumbai

The market of hotels in Mumbai is very big. There are almost every type of hotel in India to various income groups. The hotels are classified according to the stars and then graded. The main types of hotels are:

5 Star Deluxe Hotels

These hotels are a step ahead of normal 5 star hotels. They have some facilities, which the 5 star hotels may not have. Most of the bigger hotels in Mumbai are 5 star deluxe hotels. Some of the examples of 5 star deluxe hotels are Hotel Grand Hyatt, Hotel Hilton Towers, Hotel Hyatt Regency and Hotel Taj Mahal

 5 Star Hotels
These hotels are more or less same as 5 star deluxe hotels, but they may not have the facilities and the features that 5 star deluxe hotels may have. Some of the important 5 star hotels in Mumbai are Hotel Holiday Inn, Hotel Orchid, Hotel Sea Princess and Hotel Ramada Plaza Palm

4 Star hotels
These hotels dont have facilities as good as compared to that of 5 star deluxe and 5 star hotels. Some of the important hotels in Mumbai are Hotel Best Western Emerald, Hotel Bawa International, Hotel Fariyas and Hotel Juhu Plaza. The other types of hotels are 3 star and 2 star hotels. Some examples of 3 star hotels are Hotel Ajanta, Hotel Atithi Mumbai, Hotel The Ambassador whereas as far 2 star hotels are concerned these are some of the important ones: Hotel Bawa Continental, Hotel Chateau Windsor and Hotel Diplomat Mumbai.

Total Product Concept

CORE PRODUCT
At the very center is the core product, which satisfies the basic need of the consumer. The core product in the hotel industry is ACCOMODATION. The role of Hotel International is to provide basic accommodation facilities. Like a bed for the night and a room with a bathroom.

FORMAL PRODUCT
When consumers expectations grow synchronized with increased competition, the marketer offers some tangibility to the existing core product, that is, some more features. Consumers prefer to pay more for these additions and the marketers have more to offer than the competition. International Hotels have to provide some additional features like:

Hygiene: It comes next to the basic

function of accommodation. Hygiene plays a very important role in the status of a hotel. An unhygienic hotel will never be able to attract lot of people, especially if it has to attract a lot of people from foreign countries where the hygiene conditions are top notch.

Room Service: When people go to hotels,

they would expect good and prompt room service. This means, when they order food or ask for any service, a hotel that provides it promptly will have a great edge over the other hotels.

Price: The price of the rooms should be such that both the rich and the middle class
people can afford them. Not everyone can afford a very expensive room and also not everyone will like to stay in a room that does not have some luxurious facilities.

Etiquettes: The people who come in contact with the customers, that is, the reception
people, room service people, and waiters, all have to be trained well to behave in a manner that pleases the customer. They should be civilized, cultured and polite.

Food and Wine: The food should be of good quality and

should be prepared in hygienic conditions.

AUGMENTED PRODUCTS
With further higher expectations of the customer- again synchronized with intense competition- marketers offer more and more intangible features. All the extra things provided are service oriented. In the case of Hotels the augmented products include:

Services Provided:
Ayurvedic Massage Centre & Steam bath Beauty Parlour Florist

24 HRS Room Service 24 HRS Coffee Shop Ample Car Park Travel Assistance Same Day Laundry Cable TV Banquet Halls 24 hrs Check Out Airport Transfer Safe Deposit Lockers Currency Exchange Direct Dialing Health Club Back Water Cruises and Package Tours

Facilities In Room:
CTV Satellite channels International direct dial Refrigerator (deluxe rooms and suites)

Bathtub (executive rooms and above) Running hot and cold water.

Restaurant/Bar:
1. Variety Restaurant (Indian, Tandoor, Kerala, Continental and Chinese dishes.) 2. 24 hour Specialty Coffee Shop. 3. Family Bar (daily happy hours.)

Promotional Activities:
Regularly conducting Food festivals. Official host for Motor shows, Fun Carnivals, Fashion shows and other Fairs.

THE TAJ GROUP OF HOTELS

The Taj Group of hotels was started on April 1, 1902, by Mr.Jamshetji Nusserwanji Tata. The first hotel in the chain was the Taj Mahal, Mumbai. This grand building is recognized worldwide and is a welcome sight to anyone who visits the city. The Taj has had a significant innings spanning the last three decades both in India and overseas and has established itself as the premier hospitality body in this country. Indeed the Taj group of hotels has spanned the length and breadth of the country, gracing

important industrial towns and cities, beautiful beaches, hill stations, pilgrim and historical centers and wildlife destinations. Over the years the Taj group has won international acclaim for its quality hotels and its excellence in business facilities, services, cuisine and interiors. The Taj groups operations cover over 60 hotels in India and abroad, and encompass a number of brands across various price segments. The company has a dominant position in most areas it is present in. Providing world-class personalized service to guests while authentically reproducing the traditions and heritage of India has made the Taj brand a symbol of luxury and service the world over. The Taj group of hotels is grouped into strategic business units to get consistency across the different units in the same brand and standardize the product and service across the brands, making them distinct and identifiable. These brands have been classified as Luxury, Business and Leisure.

TAJ LUXURY HOTELS The Taj Luxury hotels capture the essence of the Taj experience. Located in the main political and commercial cities of India they maintain the highest standards in all the services they offer. With exquisitely appointed rooms and modern comforts, these hotels offer the finest standards of hospitality and service. Standing testimony to the quality of service, a number of the luxury hotels of the Taj group are members of the leading hotels of the world. These include: The Taj Mahal Hotel (Mumbai), Taj Palace Hotel (New Delhi), The Taj Mahal Hotel (New Delhi), Taj

Bengal (Calcutta), The Taj West End (Bangalore) and the Taj Coromandel Hotel (Chennai).

TAJ BUSINESS HOTELS Located in the heart of Indias key commercial cities and towns, the Taj business hotels provide every modern facility at particularly attractive room rates. These international style hotels meet the growing needs of business travelers visiting cities, which are rapidly industrializing and expanding. The best hotels in their environment, the Taj business hotels offer multi cuisine restaurants and the best business facilities in the city. The company anticipates that a significant portion of its long-term growth will come from the expansion of this brand and is actively seeking ways of strengthening and expanding this brand.

TAJ LEISURE HOTELS At the Taj leisure hotels, pleasure seekers, the curious and those simply wanting to get away from it all can do just that. These properties include idyllic beach resorts, genuine palaces, turn of the century garden retreats, hotels located close to historic monuments, pilgrim centers and some of Indias best wildlife sanctuaries.

THE 8PS WITH REFERENCE TO THE TAJ MAHAL HOTEL

Product Element
This gracious turn-of-the

century hotel is located 32 km from the airport and minutes away from Mumbai's commercial, shopping and banking districts. The Taj Mahal Hotel has an old-world Heritage Wing and a contemporary Tower Wing. The hotel's premium suites have been used by royalty and Heads of State.

Taj believes that their core product is space. This space is supplemented with the services they provide like the restaurants, health club, banquets, discotheque, bar, business centers etc. Their other supplementary products also include travel arrangements, ticketing, airport pick-ups, sightseeing etc. The hotels various other departments like the house keeping, front office, food and beverage, room service and maintenance, all provide the supplementary services to the customer.

Tower Wing Rooms: With easy access to the Business Centre, these contemporary
rooms offer guest amenities like Internet connectivity, 2-line speaker phones with international direct dial facility and voice mail. Mini bar, personal safe, channel music and television with satellite programmes. A complimentary in-room fax can be provided on request. Guests have a choice of rooms that overlook the city or face the Gateway of India and the Arabian Sea.

Heritage Wing Rooms: These rooms are renowned for their architecture and exude
an aura of old-world elegance. Each corridor in this Wing resembles an art gallery, and the design, dcor and furnishing ensure that no two rooms are alike. Guests have a choice of rooms that overlook the city or pool or face the Gateway of India and the Arabian Sea.

Taj Club: Located on the top floors of the Heritage Wing, Taj Club is designed for the
discerning business traveler. Guest amenities and services include complimentary airport limousine transfers, private check-in at the Club desk, in-room fax, personal safe, a complimentary bottle of wine, valet service and complimentary deluxe Continental breakfast. Taj Club guests can also enjoy complimentary tea/coffee throughout the day and cocktails during the Cocktail Hour at the Club Lounge. Taj Club also offers guests exclusive Meeting Rooms and a Business Service Unit on the Club Floor.

Suites: Choose from elegantly appointed Junior Suites, Executive Suites, tastefully
decorated Large Suites, newly renovated Luxury Suites or spacious, plush Grand Luxe Suites. The finest suites at The Taj Mahal are the luxuriously appointed Presidential Suites. Each of these suites is decorated with original paintings and antiques that transport guests into a world of regal luxury and grandeur. Grand Luxe and Presidential Suite guests can also avail of a personal Valet Service.

Broadband wireless Internet access at select Taj hotels

Now when you stay at select Taj hotels in Mumbai (including The Taj Mahal Hotel), New Delhi, Kolkata, Chennai, Bangalore and Hyderabad, you no longer need to be in your room or at the Business Centre to use the Internet. Multiple 'hot spots' located across the hotels lets you get onto the Internet from almost any place in the hotel - quickly and without plugging in! What's more, there is a Cyber Butler on call, should you need any assistance with getting connected.

Facilities and Services

Swimming pool, fitness centre and spa, beauty parlour, barber shop, travel desk, car rental, pastry shop, book shop, shopping arcade, currency exchange, doctor-on-call and babysitting. Complimentary use of steam, Jacuzzi and gymnasium at the fitness centre for all guests. Arrangements for golf, badminton, squash, billiards, tennis and table tennis on request. 24-hour room service and laundry service

Place and Time

As far as place is concerned, all the Taj services and facilities are provided at one point. To ensure timely delivery of their services, they have set processes in place and incase of failure or delay of service, they have built in contingencies and trained their staff to communicate the delay to the customer in the right manner. In case of breakdown of the elevator, the Room Service makes use of the elevator in the other wing to ensure timely delivery to the customer. They also have complaint management systems where they encourage customer feedback. Each of their feedback form is numbered and hence if any feedback form is missing, the staff is held liable for it. This is to ensure that the management views every feedback form. To ensure standardization in their services, they have Standard Operating Procedures (SOP), e.g. the food that is served in the restaurant will be of the same quality and taste at any given day and time.

Process
In order to ensure that the core product and the supplementary product is developed and delivered in the right manner and at the right time, the hotel has formed

certain set processes. When the room is being prepared for customer check-in, the housekeeping department makes sure that all the room amenities are provided as per the checklist. For e.g. certain room amenities like 3 embroidered laundry bags, 2 closed slippers with logo, 2 shoe bags, etc. are provided by The Taj Mahal Hotel. Infact the processes are so specifically laid down that hotel staff is even advised on what to say and what words to use while talking to a customer. The following example will illustrate this better. When a customer asks for something to be done instead of saying no problem, the staff is taught to say most certainly.

Productivity
The Taj as a hotel does not compare itself to only Indian hotels, but even with the hotels internationally as it claims to have World Class Quality. In order to ensure that its inputs are transformed into desired outputs, they provide extensive training to their employees irrespective of the field they come from. The Taj Mahal hotel has various quality tools to enhance quality. This involves every department, as they have to make sure that the raw material as well as the finished product is of top quality. At The Taj, it is the responsibility of the purchase department to make sure that the raw materials are purchased at the Right Time, Right Place, Right Cost and from the Right Source, in order to avoid any hindrances in their productivity and quality. Taj has developed enormous credibility in terms of trustworthiness being the oldest brand of hotels, with the reputation of being World class and honest service provider. Security, Communication and understanding the customer psychology are special assets the Taj management has mastered with time.

People
People here mean the customers, employees, management and the society. It is the final customer who is to be satisfied and this can be done only with the help of the employees, who are directed and guided by the management. In the end the final motive of Taj is to provide consistently and relentlessly an Indian experience of warmth and

hospitality by anticipating and exceeding guest expectations. They also provide various customer services such as The Taj Inner Circle Group, Taj Advantage and Taj Epicure. In order to ensure the productivity of their employees they provide them with various facilities such as medical help, consultation, traveling facilities, perks and bonuses. The employers here each have their own lockers in which they keep their uniforms and other belongings, they also have bunkers with small beds so that the employees working in shifts can catch some sleep if need be. In spite of the fact that human resources management is such an integral part of the service industry of which hotels form a major part, its role has begun to be acknowledged only recently. The Taj Group of Hotels is probably one of the first Indian hotel chains to have recognised and respected the significance of HR in the hospitality industry. Says K S Srinivasan, GM-corporate human resources, The Taj Mahal Hotel, Mumbai, Functions like sales, marketing and HR are not hotel-specific, unlike those of chefs, housekeepers, bartenders, stewards and the like. They are, in fact, common to all businesses. He asserts that HR, as a function, is like a partner in the business in any organisation and not a stand-alone function. It is the key to effective utilisation of the manpower that the hotel industry is so dependent on. And the Indian hotel industry is among the most labour intensive since the number of people serving guests is the maximum here. It is precisely for this reason that the significance of HR requires to be appreciated. It is not merely monetary rewards that employees seek today; the intriguing aspect is the learning experience that the job promises. It is precisely with this very thought in mind that the Taj Group of Hotels, a Tata enterprise and one of the oldest hotel chains in the country, decided on a training programme for the operations trainees, explains Srinivasan.

Interactive sessions between the Taj management and the director of the Tata Institute of Social Sciences (TISS), a Tata educational and research institution, led to an interesting and comprehensive tailor-made course curriculum being chalked out. Thus was born the Taj TISS HR Associate Programme, a one-year course comprising four modules that are designed to give equal importance to and impart balanced knowledge of both the theoretical and the practical aspects of all HR-related functions of the hotel industry. After finalising the course details, the Taj made announcements about the course, offering interested trainees with two to three years of work experience an opportunity to apply. The response was encouraging and five trainees were shortlisted for the first batch of the training programme.

Each of the four modules have four sections. The first stage consists of theoretical lessons, providing a sound background to the practical application of the knowledge required of them in the second stage. In the third stage, the students return to the Institute and their performance is evaluated by professors of TISS. In the fourth and final stage, grades are awarded. While practical training sessions for the first three modules have been organised at the Taj hotels across the country, the fourth modules practical sessions had students of the first batch working in Tata companies such as TISCO and Tata Consultancy Services (TCS). This gave them a wider scope and more exposure, besides making them realise that HR skills in a service-specific industry like the hotels are much more challenging than their application in the manufacturing or any other industry, observed Srinivasan. He said he himself had started off in the manufacturing industry and only later did he move over to the service industry. I have been in the industry for over a decade now and am well-set here, he added.

The key to retaining staff and ensuring the success of any business organisation lies with the HR department and its effective functioning. Any organisation, including hotels, incurs heavy expenditure on their employees, especially between the time of recruitment and the employees acquisition of the skills imparted during their training. It can be inferred, therefore, that a high employee turnover rate lowers the efficiency of the staff as a whole owing to their constant on-the-job training and skill enhancement. An organisation must be able to create for itself a unique place and image in the minds of the employees, both present and prospective. This enables the employees to aspire to be a part of the organisation, giving it their very best, says Srinivasan. Though the training programme has and will continue to cost us money, we believe that it is truly worthy investment, he added.

The Taj group, says Srinivasan, is an expanding organisation and we are a people-oriented company. What we need are people who can match our organisational standards. We are also looking to create and ensure a constant supply of good quality HR professionals, which is why we decided to impart training of an extremely specialised nature to our management trainees. I have observed them at the end of the programme and must say that they appear all charged up and raring to go, he remarked. The Taj-TISS joint programme is expected to create a demonstration effect in the industry with more hotel groups placing additional emphasis on the HR training programmes. To be a successful HR professional, what is required most is the aspirants ability to challenge themselves as well as their colleagues. Only then can they get the very best

from themselves and their team. Challenges in the HR field are immense and since it is so people-centric, it is only obvious that professionals should have strong peoplemanagement skills, explains Srinivasan. Besides this, a right attitude towards the job and life in general is extremely essential. As a manager myself, what I would look for in an applicant would be the ability to fit into my organisation perfectly and be emotionally balanced, competent and above all, be a cultural fit, fulfiling the basic values that the Taj is known for, concludes Srinivasan.

Promotion and Education

They carry out their promotions by the means of calendars, monthly letter to their Inner Circle Customers, informing them about their upcoming events and offers. Taj has television advertisements on popular channels like CNBC, and print ads in magazines and newspapers. Taj takes part in exhibitions like wherein they promote their holiday packages. They also have special offers during the off-season etc. Also The Taj is the only hotel chain to personify itself and in promotion campaigns and advertisements the Taj is often referred to as She

Physical Evidence
The Taj Mahal Hotel was built in 1903. The architect was Sitaram Vaidya. It had a very ethnic look to it, which kept up their image of providing an Indian experience of warmth and hospitality. They realized that modernization is the name of the game and had The Taj redesigned by Mr. Chambers, Mr. Wilkes and Mr. Bernard from Singapore. Some of the recent renovations that have been carried out at the Taj are: a. The exterior has been given a new and modern look while still retaining the old world charm of the building. b. The entrance has splendidly carved bronze and glass doors Soaring onyx columns stretch to a luminous alabaster ceiling; while underfoot, rich hand-woven carpets set off a magnificent floor painstakingly inlaid with semiprecious stones. The eclectic mix of western contemporary style and traditional Indian motifs creates a veritable feast for the sense.

c.

The city's most exclusive restaurant, The Zodiac Grill provides a

graceful setting for an intimate dining experience. Under a magnificent trompe l'oeil dome, they serve the finest gourmet cuisine complemented by an extensive wine list, as a classically trained pianist entertains patrons.

Price and Other User Costs

Taj realizes that their prices are high and not affordable by all, but this is due to various overheads that it incurs and the superior quality that it offers. For e.g. a roadside sandwich seller sells his sandwich for Rs.10 as he has no overheads and has no quality standards to maintain, like the quality of the bread and the vegetables. But at The Taj, they serve the best quality and also incur overhead expenses. Also the target audience that the Taj caters to are the ones who come to the Taj for its ambience and world class standards, therefore they say that their prices is justified as they help The Taj retain the exclusivity that it stands for.

The Taj Blueprint

When the service provider comes in contact with the customer, he needs to surpass the customers expectations, for which a blue print is made and followed by the service provider, in this case the Taj Mahal Hotel.

Dinner Service Sequence

Procedure
1Greet Guests Smile using appropriate salutation, correct posture, eyecontact and guest name where 2 possible. Smoking/Non-smoking 3 preference to be confirmed. 4Assist guests to their seats. 5Unfold the napkins, ladies first Entrance Host(ess) / Manager

Entrance Entrance Restaurant Restaurant

Host(ess) / Manager Host(ess) / Manager Host(ess) / Manager Captain

Suggest the Dinner buffet, and describe the buffet highlights 6 specials etc.

Table

Captain / Manager

Present the food menu along with the beverage list/ wine menu, if A La Carte is desired by the guest. Suggest daily specials and advice non availabilitys, 7 prior to food orders. Table Suggest bottled water and offer 8 wine by glass. Table For wine service, appropriate glassware to be present on the 9 table. 10For all orders, serve ladies first

Captain / Manager Captain

Table Table

Captain / Server Captain / Server

Clear plates accordingly before guests return after second 11 helping from buffet. Table For A La Carte orders, plates to be cleared only after all complete 12 their meal. Table Replenish the cutlery 13 accordingly. Table Napkins to be folded neatly in half and placed on the left armchair, when guests leave for 14 second helping. Table For A La Carte orders, offer dessert menu and describle 15 items. Table Offer tea / coffee after entre and 16 side plates are cleared. Table Always maintain table top clean, 17 before resetting the table Table Place bill folder with cheque on table for signature, as per guest 18 convenience Table Thank all guests using their 19 names respectively. Table 20Bid farewell. Upon guest departure, clear 21 table immediately. Restaurant Table

Captain / Server

Captain / Server Captain / Server

Captain / Server

Captain / Server Captain / Server Captain / Server

Captain / Server Captain / Server / Host(ess) / Manager Captain / Server / Host(ess) / Manager Captain / Server

The Competitors
The hotel being the one of the best hotels in Mumbai, it faces a tough competition from many other hotels in Mumbai. Some of the main competitors for this hotel are as follows: Hotel Grand Hyatt Offering luxurious hotel accommodation, Grand Hyatt Mumbai's 547 guest rooms and suites are amongst the most spacious in the city providing classic comfort and a host of amenities. For long-stay guests who are staying in Mumbai for more than 30 days, the hotel's Grand Hyatt Residences enable visitors to enjoy all the conveniences of a hotel with the warmth and comfort of home. Comprising one, two and three bedroom apartments, the hotel's serviced apartments are unique in Mumbai.

Hotel Hilton Towers

Total Number of rooms: 547 503 Air Conditioned Rooms 44 Air Conditioned Suites. Hotel Hyatt Regency Featuring 397 elegantly designed guest rooms, including two rooms for the physically challenged, 18 suites and one Presidential Suite, Hyatt Regency Mumbai provides a multi-purpose environment in which hotel guests can attend to business and relax. ITC Grand Maratha Sheraton 386 elegantly appointed, spacious guest rooms including exquisite Suites with hand crafted furnishings. Dual line phones with data port and voice mail, interactive television with satellite services, in-room fax, hi-speed internet access, well appointed work desk, four feature marble bathroom, with separate shower cubicle. 32 ITC One rooms - The new wing unveils a whole new world of exclusivity for up-market business travellers with spacious and elegantly-furnished rooms. 77 Sheraton Towers rooms - The exclusive Towers Club comes with its own restaurant, library, bar, 24-hour tea/coffee service and Club Hour. 246 Executive Club rooms - Executive Club pioneers a tradition of corporate hospitality, setting a premium on discreet efficiency and business-related services. Hotel JW Marriott Total number of rooms: 358 274 Air Conditioned Standard Rooms 48 Air Conditioned Deluxe Rooms 36 Air Conditioned Suites. Hotel Le Royal Meridien Each of the 171 rooms is a statement in unparalleled luxury. Tastefully furnished with amenities comparable to the finest European hotels, the rooms set unmatched standards of sheer unadulterated luxury. The elite Royal Club floor provides exclusive privileges for the discerning. Guests at the Royal Club are entitled to additional benefits. Butler services, a range of International luxury amenities and personalised service all contribute

in

making

for

truly

momentous

experience.

Hotel Sun N Sand 120 rooms including 10 theme based suites, overlooking the cool blue waters of the Arabian Sea, with all modern amenities, which cater to the needs of businessmen and tourists. Hotel Taj Lands End Spacious and sophisticated, 368 rooms, including 15 Suites at Taj Lands End, offer luxurious style and comfort.

Hotel Taj President 292 tastefully appointed rooms including 20 executive suites, all offering spacious comfort and quality.

Hotel The Retreat The Retreat has 144 spacious well-appointed rooms of international standards fitted with finest modern amenities. These 144 rooms include: 3 Presidential Suites (2 of them being Duplex) each having 2 Bedrooms, Living Room, Dining Area and a Private Bar. 2 Deluxe Suites (with attached terraces offering views of unparalleled beauty). 2 Regular Suites 9 Executive Hotel The Resort The Resort boasts of 88 luxurious Rooms, 3 exquisite Suites and 2 independent Cottages. Rooms. 128 Deluxe Rooms.

SWOT Analysis of Taj Mahal Hotel

SWOT Analysis is the basis on which you analyse some thing. The term SWOT refers to Strength, Weakness, Opportunities and Threats. The following is the SWOT Analysis of Hotel Taj Mahal.

Strengths: Strengths are basically the assets of the company or service. It is that
important factor which differentiates it from other products or services. The main strengths of Hotel Taj Mahal are as follows: 1. The age old trust and fame backed by the TATA Group who are considered one of the best companies in the world. 2. The history associated with the hotel and the changes it has gone through maintaining the same aura. 3. The advantages of being close to the airport and situated close to the famous landmark of Mumbai, the Gateway of India. 4. The quality service assured by the staff and the hospitality given by the hotel. The clientele serves by the hotel. 5. The pioneer hotel being an example to other hotels around Mumbai.

Weakness: Weakness refers to the weaknesses the Hotel is facing. Some of the
weaknesses of Hotel Taj Mahal are: 1. The competition it is facing from various hotels. 2. The age-old building and the structure. 3. Competition from its twin Taj Mahal Hotel which is newly constructed close to it. 4. The Pricing (there are hotels which offer lower prices compared to that of Taj Mahal hotel).

Opportunities: These are basically the chances to obtain maximum advantages from
the products or services offered. The opportunities of Taj Mahal hotel are: 1. The number of hotels, which the Taj Group has under its belt. 2. The ever-growing tourism industry in India. 3. The legacy associated with the hotel, which will ensure the Taj Group to initiate more hotels in the near future.

Threats: Threats are basically the dangers which any product or service faces either by
competition or any other situations. Some of the main threats associated to Hotel Taj Mahal are: 1. The ever growing competition from other hotels 2. Natural Calamities i.e. proximity to the Sea will harm the hotel in big way. Any natural incident like Tsunami may harm the hotel in a big way. 3. Any Political or Terrorist activities such as Bomb Blast or killings will affect the sales and the occupancy levels. For example the bombings near the Gateway of India will also affect the hotel in a very disturbing way. As it is in the prime location in the city it is always susceptible to various activities by terrorists.

WHY THE TAJ IS REGARDED AMONG THE BEST IN THE INDUSTRY??

Taj Mahal Hotel, Mumbai wins "Best Business Hotel in India" award for year 2000
October 9, 2000 The Taj Mahal Hotel, Mumbai has won the coveted award of the Best Business Hotel in India for a second consecutive time. The award was announced last week at a glittering ceremony at Singapore during the 3rd Annual Best Business Hotels in Asia Awards 2000. The award is instituted jointly by Bloomberg TV and Business Asia with the aim to recognize excellence in hotel industry and encourage better standards for the crucial business travel sector. Readers of the Business Asia and viewers of the Bloomberg were invited to vote for their preferred Hotel in each country through a coupon that appeared in every issue of Business Asia from July to September. Approximately 20,000 votes were received for the award from readers of Business Asia and Bloomberg TV viewers. The award was judged by a panel of eminent business leaders including Mr. Ken Cowley, Director of News Corp, Mr. Pater Charlton, Publisher of Business Asia, Mr. Cameron Cooper, Editor of Business Asia and Mr. Robert Stiles, Managing Director Asia Pacific of

Sonnenblick-Goldman and board member of "Hotels" magazine. The judging panel met in Sydney in February 2000 and selected a list of 85 hotels from 14 countries. The nominated hotels were judged on a range of criteria from special business services to business clubs and lounge facilities, conferences and convention facilities and guest reward and incentive programmes. The votes were counted and tallied by a leading firm Gould Ralph and Company Chartered Accountants in Sydney. Says Mr Subir Bhowmick, Chief Operating Officer, Luxury Hotels of the Taj Group "We are honoured to receive this prestigious award. Last year the readers of Business Asia voted the Taj Mahal, Mumbai as the best Business Hotel in India and in 1998; it was Taj Palace, New Delhi that received the award. We are glad that the legendary standards of impeccable service and warm hospitality set by the Taj Group of Hotels have once again earned us this distinction."

Conclusion
At last we would like to conclude by saying the hotel industry is the biggest hospitality service in the world. The hotels serve as the best medium to help and cater people. As said before it is the biggest money-spinner sector among the Hospitality Services sector. It had been an wonderful experience to work on a very exciting sector. The Hotel Industry is here to stay for long.

Bibliography
1. Hospitality Marketing by Neil Wearne. 2. Service Sector Management by Romeo Masceranhas. 3. www.indianhotels.com 4. Economic Times and Business Standard.