Resorts And Palaces Of Taj Hotels Tourism Essay Example
Resorts And Palaces Of Taj Hotels Tourism Essay Example

Resorts And Palaces Of Taj Hotels Tourism Essay Example

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  • Pages: 12 (3251 words)
  • Published: November 5, 2017
  • Type: Case Study
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The marketing department is crucial in today's competitive market, serving as the backbone of any company. This is especially true for hotels, as the hospitality industry is rapidly growing and highly competitive. In order to stay ahead of the competition, effective marketing strategies are essential. Thus, this project focuses on exploring and analyzing Taj Palace, New Delhi hotel's marketing strategies with the goal of proposing necessary solutions and providing reasoning for these suggestions. Through this project, insights into the city and its hospitality trends will be gained, helping understand Taj Palace's competitors by providing substantial evidence to support recommended solutions. Ultimately, the aim of this project is to assist in competing with other hotels in New Delhi by understanding their strategies.

Marketing: An Introduction

"For a business not to advertise is like winking at a girl in the dark. You know what you are doing but

...

no one else does" - Stuart H. Britt, US advertising consultant.
Marketing is a social and managerial process that satisfies needs and wants by producing and exchanging valuable products. According to Kotler , marketing involves determining target market needs and wants , delivering desired satisfactions more effectively than competitors.Today , marketing helps understand customer psychology for innovative product development.In the Hospitality Industry, Taj Hotels Resorts ;The leaders in the hospitality industry, such as Palaces, Marriott International, Hilton, and Hyatt, achieve market dominance over smaller chains by possessing a comprehensive understanding of marketing. Marketing encompasses various aspects including identifying customers, differentiating products, and reducing customer acquisition costs while also encompassing acquiring clients and maintaining relationships with them. Both Kotler and McKenna agree that marketing plays a role in developing and

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delivering products/services to customers. Additionally, McKenna emphasizes that marketing is pervasive in every job. While marketing practices are crucial across all industries, there are slight differences within the hospitality sector. In hotels specifically, the focus is on providing excellent service to guests rather than solely emphasizing the product itself. The marketing of goods and services share similarities in terms of identifying and designing the product but differ when it comes to production and sale processes. Goods are typically produced before being sold while services are usually sold before being produced. Compared to other industries, the influence of the service industry may be slower due to individuals forming opinions without experiencing the product firsthand. Effective sellers can guide potential clients towards favoring a particular brand through various strategies such as packaging, advertising, pricing, and distribution methodsHowever, this approach is not typically applicable to sellers of services such as hotels. Hotel services are intangible and more challenging to describe to customers who cannot experience them before making a purchase decision. Unlike purchasing a new car, where customers can test drive it beforehand, service sellers in the hotel industry can only create brand awareness and induce trial after the sale has been made. They excel at showcasing benefits and building brand preference since superior service cannot be physically packaged or given; it can only be felt through firsthand experience.

Tourism facts and figures

- Number of Foreign Tourist Arrivals in India: 5.37 Million (P)
- Annual Growth Rate: 5.6%
- Number of Indian National Departures from India: 10.65 Million (P)
- Annual Growth Rate: 8.8%
- Number of Domestic Tourist Visits to all States/UTs: 562.92 Million (P)
- Annual Growth Rate: 6.9%

Foreign Exchange

Earnings from Tourism (In INR terms): Rs.[missing information]

In terms of Indian rupees (INR), Taj Hotels Resorts and Palaces have an annual growth rate of 14.4%, with a total value of INR 50730 crore.In terms of US dollars (USD), the annual growth rate is 9.5%, with a total value of USD 11.75 billion.Taj Hotels Resorts and Palaces hold a share of international tourist arrivals at 0.58% globally, ranking at number 41.
India holds a 1.24% share of international tourism receipts, ranking at number 23 among all countries worldwide. The Indian Hotels Company Limited (IHCL) is a subsidiary of Taj Hotels Resorts ; Palaces, which belongs to the TATA Group, Asia's largest group and one of India's oldest and finest companies. Founded in 1903 as a response to Indians being denied access to prestigious hotels and clubs during British rule, Taj built its first hotel - the Taj Mahal Palace. This event led to the establishment of the Tata Group by Mr. Jamsetji Nusserwanji Tata. Since the 1970s, under the leadership of Mr. Ajit Kerkar, the Taj Mahal Palace has played a vital role in driving the group's development. Their unique selling point (USP) involves converting old castles into hotels, with properties like Taj Coromandel, Fisherman's Cove, and Fort Aguada Beach Resort joining their portfolio over time.Their expansion continued in the 1980s with two new hotels in Delhi and Bangalore.As an international hospitality group,Taj Hotels Palaces and Resorts values cultural diversity while upholding high international standards.The renowned Taj brand is synonymous with hospitality in India and celebrated its centenary in 2003.Taj Hotels Palaces and Resorts is globally recognized,having deep roots in India,and currently operates78 hotels including resorts and

castles worldwideThe Taj Group operates 78 hotels worldwide, with 18 located in countries like Malaysia, the United Kingdom, the United States of America, Bhutan, Sri Lanka, Africa, the Middle East, and Australia. In India alone, Taj has 60 hotels across 45 different locations such as Delhi,Mumbai ,Calcutta ,Chennai ,and Goa. This extensive network showcases Indian hospitality within and beyond its borders. The Managing Director of the Taj Group,R.K. Krishnakumar envisions a global chain that combines Asian charm with international standards. While focusing on Western Europe, they ensure that every member of the Taj team passionately promotes the brand. They cater to various types of hotels including luxury accommodations for business travelers and have built a significant customer base of international travelers in metropolitan areas. Even Indian clients have evolved over time. Taj Hotels Palaces and Resorts is renowned for their legendary properties offering unique facilities and flawless service throughout their century-long history. Operating under different brands across luxury,mid-market,and value segments,Taj is their flagship brand catering to discerning travelers who embrace luxury as a lifestyle choice.Taj offers diverse range of hotels from modern business centers to beach resorts,Rajput castles,and rural lodges.These properties provide exceptional service and create unforgettable experiences beyond physical amenitiesTaj Exotica is a resort and spa brand that can be found in peaceful locations all around the world. These hotels are known for their emphasis on luxury, personalization, familiarity, unparalleled comfort, and privacy. They have an intimate design, a variety of dining experiences, exceptional service, and authentic Indian spa retreats. Taj Safaris are lodges situated in wildlife areas where guests can enjoy lavish accommodations while being immersed in the beauty of the Indian jungle.

It is India's first and only luxurious lodge circuit designed for wildlife enthusiasts. Taj campaigns also promote sustainable ecotourism practices to protect the environment. Premium Hotels cater to the modern traveler who seamlessly combines work and leisure by providing contemporary hospitality experiences tailored to their needs. The Gateway Hotel is a network of hotels and resorts located throughout the country that caters to both business and leisure travelers. These properties are renowned for their stylish interiors, innovative cuisine options, and trendy bars geared towards tech-savvy individuals. Designed with the contemporary nomad in mind, these upscale/mid-market service hotels offer simplicity and convenience. Taj hotels are divided into seven zones - stay, eat, meet, work, relax, and explore - to accommodate diverse guest preferences. They serve affluent individuals who value luxury and are willing to indulge themselves extravagantly during their stay. The specific requirements of these patrons are carefully evaluated to provide customized amenities that meet their expectationsThe Taj group, in addition to their exceptional hospitality, has a vision dedicated to improving the ecological environment for future generations. They aim to conserve, regenerate, and renew the environment through their Earth program. Taj hotels and resorts launched the Earth initiative (ENVIRONMENT AWARENESS AND RENEWAL AT TAJ HOTELS) alongside castles with a mission to achieve excellence in hospitality while expanding internationally. They also strive to enhance market dominance and create value for stakeholders. This initiative integrates sustainable tourism and environmental management practices across all business areas, showcasing conscious efforts by one of Asia's largest hotel groups to conserve energy and manage the environment. EARTH is certified by Green Globe, the global certification program for travel and tourism.

Taj values: The

Taj group upholds core values including PEOPLE DIVERSITY, INTEGRITY AND RESPECT, PASSION FOR EXCELLENCE, EXCEEDING EXPECTATIONS, INNOVATION, SENSE OF URGENCY AND ACCOUNTABILITY, and JOY AT WORK.

Taj promises: At the Taj group, their commitment to service excellence is based on two guiding principles - empowering employees to provide impeccable service.The philosophy of the Taj Palace, New Delhi includes four steps of service which involve warmly welcoming guests with sincerity, using their names whenever possible, proactively meeting their needs, and providing defect-free products and services. This philosophy reflects their beliefs and values towards employees.

Taj Palace is a renowned 5-star hotel located on Sardar Patel Marg in the Diplomatic Enclave near Dhaula Kuan area. It offers exceptional international facilities and world-class services to its guests. With 461 suites, it is a preferred choice for state and government officials as well as top business executives during their trips. Its convenient location just a 10-minute drive from the national and international airports adds to its appeal.

What sets Taj Palace apart from other hotels in the area is its unique design that embodies all the qualities associated with Taj hotels, resorts, and palaces. The hotel features 12 banquet halls capable of accommodating around 700-1000 guests. These halls provide excellent amenities for various events such as meetings, seminars, weddings, and casual parties.

Guests can choose from seven categories of luxurious suites including superior suites, deluxe suites, Taj Club suites, Executive suite, Grand Luxury suite, and Grand Presidential suite. Among these options,the Grand Presidential suite stands out as particularly noteworthy compared to other hotels in the city.Guests at Taj Palace have the choice of selecting suites with different views, such as garden view or

pool view. The hotel is well-known for its excellent dining experiences offered at its four restaurants, including Oriental Express which is considered one of the city's finest. In addition to the exceptional culinary experience, Taj Palace also provides a wide range of recreational activities and impeccable service to ensure a luxurious stay while maintaining high standards.

Despite its good reputation, Taj Palace faces tough competition from other five-star properties in Delhi, including those within the Taj brand itself. One notable competitor is ITC Maurya Sheraton, located closest to Taj Palace. This Welcomgroup property boasts 440 rooms and world-class facilities. Its renowned restaurant BUKHARA specializes in North West frontier cuisine. Travelers are impressed by the hotel's luxurious accommodations, state-of-the-art amenities, and warm hospitality.

Another prominent hotel in Delhi is Hyatt Regency Hotel situated in Bikaji Cama Place in South Delhi. With 520 rooms, this renowned hotel offers outstanding services to its clients and competes fiercely with its rivals. It features various suites such as poolside, executive, and The Presidential Suite adorned with traditional art, elegant decor, and beautiful antiques while providing fabulous service from well-trained staff.
The text discusses different hotels in New Delhi and their features, while also highlighting their prestigious reputations. Le Meridien Hotel, located on Raisina Road near shopping centers, commercial hubs, and cultural attractions, is part of the esteemed Le Meridien group and offers 355 rooms and a variety of suites with amenities like an in-room safe and high-speed internet access. The Oberoi Hotel in New Delhi combines tradition with modern amenities. The Taj Mahal Hotel, a popular 5-star property situated in the city's Lutyenss residential area, is known for its food and drink options

at "cafe uno" and has received awards such as the "5 star diamond award" from the "American Academy of Hospitality." Another centrally located hotel is Shangri-la-Eros Hotel in Connaught Place, which caters to both business and leisure travelers with its 350 luxurious suites across 17 floors. In addition to these hotels, there are various dining options available at Golden Pheonix (Chinese cuisine), Pakwan (North Western Frontier Cuisine), The Pierre (French cuisine), Henri's bar, and Aloha bar - all contributing to this hotel's competitive advantage over Taj Castle.Furthermore, Delhi, India's capital metropolis, is a popular tourist destination. It is the largest city in India in terms of area and second largest in terms of population. Globally, it ranks eighth among the world's largest cities with over 12.25 million residents within its district boundaries and more than 15.9 million residents in its extended region known as NCR (National Capital Region), which includes areas like Noida, Faridabad, Gurgaon, and Ghaziabad.

Delhi offers a unique blend of history and modernity. It seamlessly integrates Mughal memorials with modern malls and traditional arts and crafts exhibitions alongside trendy fashion shows.

In terms of accommodation options, one notable property is located on Dr.Zakir Hussein Marg in New Delhi. This property boasts a renowned golf course on one side and Humayun's grave on the other side while being conveniently close to the city center, business areas, commercial areas, and shopping areas.

Another noteworthy option is Radisson Hotel located in the National Capital Region. The hotel is conveniently situated less than 5 kilometers away from both the Domestic and International airports of Delhi as well as being close to the business hub of Gurgaon. With luxury

accommodations featuring 29 rooms and five Food and Beverage services including the renowned restaurant "The Kabab Factory."Delhi, the second most visited place in India by foreign tourists in 2008, welcomed a total of 2.3 million visitors compared to 2.01 million in 2007 and 1.9 million in 2006. The city became the capital of India in 1911 during the country's colonial era under British rule. George V, head of the East India Company at that time, decided to relocate back to Delhi and establish it as the capital city. After gaining independence from Britain, New Delhi was officially declared as the capital and seat of government. It houses important federal government offices, including Parliament, and is Northern India's largest commercial center.

In terms of economic significance, New Delhi had an estimated net State Domestic Product of Rs.1.82 billion (US $24.5 billion) in nominal terms and Rs.3,364 billion (US $69.8 billion) in fiscal year 2007. The city also boasts a per capita income of Rs.66,728 (US $1,450), ranking third highest in India after Chandigarh and Goa. With its thriving retail industry, land values have skyrocketed making it one of the world's most expensive office hotspots at $145.16 per square foot.

Furthermore, Delhi is a popular tourist destination due to its rich historical landmarks alongside its economic prominenceDelhi has a total of 1200 heritage buildings and 175 monuments recognized by the Archaeological Survey of India, including three UNESCO World Heritage sites: the Red Fort, Qutub Minar, and Humayun's Tomb. The city also boasts impressive architectural wonders like Jama Masjid - India's largest mosque- and India Gate, which attract tourists. The focus of this SWOT analysis is on Taj Palace hotel

in New Delhi, which can be divided into Strengths, Failings, Opportunities, and Menaces.

Strengths:

Taj Palace hotel has several strengths that contribute to its success. Firstly, it has the largest convention center in the area with a capacity of accommodating 700 individuals at once. Moreover, its renowned Orient Express restaurant generates additional revenue for the hotel. Taj Palace's convenient location near the airport and central positioning provide easy access for travelers. The hotel offers various room types with different views such as pool view, garden view, and city view. Additionally,Taj Palace provides guests with luxurious pick-up and drop-off services using vehicles like JAGUAR. It also features 12 banquet halls that are capable of hosting multiple functions simultaneously, generating substantial revenue. Furthermore,Taj Palace ensures a fully luxurious experience through spacious suites and lavish options for guest comfortTaj Palace offers a wide range of amenities and features, making it an excellent choice for travelers. However, there are some areas where the hotel falls short. The anteroom lacks adequate lighting, creating an uninviting atmosphere for guests. Limited parking spaces cause problems during peak occupancy and events. Staffing levels are insufficient during busy periods. The hotel's location on Sardar Patel Marg causes traffic congestion and results in delays and less interest from potential visitors.

Furthermore, the hotel's promotional activities are ineffective, leading to a decrease in customers. Additionally, compared to competitors, the food and drink options at Taj Palace are more expensive. Specifically, the Oriental Express restaurant primarily serves invited guests rather than walk-ins.

Despite these challenges, there are opportunities for improvement at Taj Palace. To increase revenue and attract more guests, it is recommended that the hotel adopts a more aggressive promotion

strategy. Hosting events like food festivals and exhibitions can be beneficial for promoting the hotel as well.

Improving the food and drink establishments at Taj Palace is also important in order to effectively compete with rivals in this aspect. In particular, efforts should be made to promote the Oriental Express restaurant as it has great potential to rival Bukhara from ITC Maurya Sheraton Hotel and generate additional revenue.
Furthermore, the implementation of different strategies like increasing contractual staff during peak seasons can significantly enhance guest service quality and boost overall room occupancy rates. Furthermore, improving the parking area will provide added convenience for guests, a problem faced by food and drink establishments. Additionally, allowing walk-in guests in main restaurants such as Oriental Express will contribute to an increase in hotel revenue.

Nevertheless, Taj Palace faces tough competition from well-known 5-star hotels in the city as well as upcoming hotels in the NCR region, which poses a significant threat. To overcome this challenge, it is crucial for the hotel to be more proactive in promoting its food and drink offerings and aim to capture market share from competing hotels. Insufficient staffing in the food and drink department leads to customer dissatisfaction and lower revenue.

The current trend observed within the hotel industry is to have specialized eating houses within hotels, similar to competitor hotels like Bukhara by ITC Maurya Sheraton and Dakshin by Sheraton New Delhi Hotel. Although this trend caters to market demand, it indirectly decreases overall revenue for Taj Palace. Additionally, ITC Welcomgroup's neighboring property, ITC Maurya Sheraton also seeks to gain market share from Taj Palace New Delhi.

To effectively promote the hotel and generate maximum revenue, Taj

Palace has implemented various marketing strategies that are divided into three parts: segmentation targeting positioning.The Taj Palace New Delhi hotel targets both leisure and business guests, offering facilities like meeting rooms and conferences. It caters to upper and upper-middle-class customers visiting the city for tourism or work purposes. The hotel provides seasonal packages and promotions to entice customers, and it has four restaurants and twelve banquet halls that can accommodate up to 700 guests. The primary objective of the Taj Palace Hotel is to meet company standards while ensuring customer satisfaction and generating maximum revenue. They have successfully achieved these goals over the years by focusing on guest satisfaction and maximizing profits. With attractions like "Varq" restaurant and "Masala Art", the brand name of Taj has gained widespread recognition among people in India. Overall, the hotels in India's capital city elevate the experience for local and international guests through their association with the prestigious Taj brand.The inclusion of the name "Taj Palace" lends an air of magnificence to the hotel, enticing customers to select this particular establishment. Ultimately, the hotel's amenities and affiliation with Taj result in heightened revenue and customer appeal.

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