the indian hotels company limited - IBEF

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of traditional medicine.

IHCL recently forayed into the service apartment category with the opening of Taj Wellington Mews Luxury Residences, a complex of 80 luxurious serviced apartments in South Mumbai.

Indian Hotels

in the United States of America

Mode of Operation

IHCL marks its presence in the USA through two hotels,The Pierre in New York and the recently acquired Ritz-Carlton Hotel in Boston.

Overview

The company first started its operations in the USA in 1982 with Hotel Lexington in New York.

It added four more hotels in Washington D.C – The Canterbury Hotel,The Hampshire Hotel,The Kwality Down Town, Ramada Inn Central. However, due to an internal restructuring,Taj divested from all its properties in the US, as it wanted to cater to only the luxury portfolio internationally.

In July 2005,Taj Hotels Resorts and Palaces re- entered the US market with a 30-year management contract agreement with The Pierre, New York, a luxury hotel in Manhattan that was established in 1930.The 44-storied hotel, apart from having 52 suites, offers full-service apartments as well as guestrooms. In November 2006, the company entered into an agreement to buy the Ritz-Carlton hotel in Boston for US$ 170 million.The hotel,

Company Background

Incorporated over a century ago, the Indian Hotels Company (IHCL) opened its first Hotel,The Taj Mahal Palace Hotel, Bombay, in 1903. Part of the TATA Group, IHCL is the largest company in the hospitality business in India.The Indian Hotels Company Limited and its subsidiaries are collectively known as Taj Hotels Resorts and Palaces (Taj).

Global Footprint

of Indian Hotels Company

The Taj brand comprises of 76 hotels, of which 59 are located in India and 17 at key international destinations across the globe in Maldives, Mauritius, Malaysia, Australia, the UK, the USA, Bhutan, Sri Lanka, Africa, and the Middle East. In order to provide consistent and standardised services to the customers, the company’s hotels are structured into four different Strategic Business Units (SBUs) – Luxury India, Luxury International, Business and Leisure.

As a support to its hospitality business, IHCL also runs a travel agency, Inditravel, headquartered in Mumbai.Through its joint venture with Singapore Airport Terminal Services, a subsidiary of Singapore Airlines, it is also engaged in the business of air catering under the brand name – TajSATS.The company also operates Taj Air – a luxury private jet operation with two Falcon 2000 aircrafts and Taj Yachts – two 3-bedroom luxury yachts. Its Taj Spas in select properties, provide rejuvenation and

THE INDIAN

HOTELS COMPANY LIMITED

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Leadership through Innovation

The company has been known for incorporating creative ideas and has been a trendsetter of sorts in the industry.The company was the first in India to acquire old palaces and convert them into luxury hotels, an idea which has been a

revolutionary success. It has also pioneered the luxury apartment services in India, which has now been extended to its properties in Dubai and London. Breaking new ground in the Indian tourism industry,Taj Hotels Resorts and Palaces has entered into a joint venture with Conservation Corporation Africa (CC Africa), a leading eco- tourism company and Africa’s most comprehensive safari operator, to be the first to launch luxury wilderness lodges in India.The Taj Safaris will provide wildlife enthusiasts and high-end travelers with distinctive, interpretive wildlife experiences based on a proven and sustainable eco-tourism model in India.

Strategic Alliances

IHCL has expanded its presence and services through some strategic tie-ups that have been beneficial for the company. Apart from having tie- ups with many companies in the domestic market, IHCL also has marketing alliances in the

international market for cross exposure and promotion of its services. For example,Taj Hotels has a strategic marketing alliance with Shilla Hotels and Resorts, Korea.The marketing alliance enables both the hotel groups to harness each other’s strengths in their respective stronghold markets, through cross promotion of Taj Luxury hotels and Shilla Hotels. Similarly, IHCL also has an alliance with Silversea Cruises, an Italian company with generations of maritime and travel expertise.This alliance will help in building and strengthening brand exposure for both Taj Hotels and Silversea Cruises, in their respective markets.

which has been renamed Taj Boston, started its operations under Taj management on January 11, 2007.The hotel has 273 rooms and blends classic grandeur with contemporary luxury.These

acquisitions have provided the company a foothold in one of the largest luxury markets in the world.

The Taj also opened its first sales office in the US in 1999 in New York. In early 2006,Taj established another sales office in Los Angeles.

Success Factors

Leveraging the ‘Taj’ Brand

The Taj brand, which is more than hundred years old, has become synonymous with the highest standards of hospitality in the Indian hotel industry.

Over a period of time, the ‘Taj’ brand has become a symbol of luxury and excellent service.The company has utilised its remarkable image and brand building experience in the Indian markets, and leveraged it to make a name for itself in the international market also.The Taj Group is present at key gateway cities across the globe and has become the preferred option for Indian travelers traveling abroad as well as international tourists and business travelers coming into India.

Strong Sales and Marketing Network One of the major reasons for the Taj Group’s successful foray into the international markets is its strong network of sales and marketing offices.The company’s international presence has been well supported by a network of Taj regional sales and PR offices in the UK, France, Germany, Dubai, Singapore, Sydney,Tokyo, and the USA (New York and Los Angeles). Its innovative website has been awarded the Best Travel Online Campaign

worldwide in the Web Marketing Association’s 2005 Internet Advertising Competition, a premier event for web developers and marketers each year.The website was also short-listed for the prestigious Clio Awards in the Internet category.

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Future Plans

The company is planning to leverage the booming travel industry and is all set for increasing its services to a bigger market.The company has followed the acquisition route in the past and plans to continue with it in the future with a view to increase its presence in the American market.

It is looking at establishing its excellence standards through the Tata Quality Management Services under the Tata Business Excellence Model (TBEM) in its new markets.