KEY INITIATIVES
Update on Key Initiatives
Growth
In the coming years, IHCL will see growth through the addition of 80 Luxury Residences at the Taj Wellington Mews, Mumbai, as well as rooms added at Taj Lands End, Mumbai and Taj West End, Bangalore. The Taj Lands End is a hotel built with a capacity of 500 rooms with an additional 50,000 sq. ft. approximately that is yet to be built. We will aim to reach this capacity over the next two years, which will include adding rooms and developing high-end offices or retail space created in the new 50, 000 sq. ft. block. Taj West End will have approximately 175 rooms added to it over the next two years. IHCL continues to pursue management contracts in India as well as in South and South East Asia. Associate companies viz. Taj GVK Hotels & Resorts Limited and Oriental Hotels Limited are also in the process of setting up properties in Chandigarh and Bangalore respectively, which would add to the properties under the Taj group. IHCL has secured two management contracts for a high end luxury resort and an upmarket resort in Kovalam, Kerala. Both the hotels are under construction and will open in the current financial year.
In the coming years, IHCL will see growth through the addition of 80 Luxury Residences at the Taj Wellington Mews, Mumbai, as well as rooms added at Taj Lands End, Mumbai and Taj West End, Bangalore. The Taj Lands End is a hotel built with a capacity of 500 rooms with an additional 50,000 sq. ft. approximately that is yet to be built. We will aim to reach this capacity over the next two years, which will include adding rooms and developing high-end offices or retail space created in the new 50, 000 sq. ft. block. Taj West End will have approximately 175 rooms added to it over the next two years. IHCL continues to pursue management contracts in India as well as in South and South East Asia. Associate companies viz. Taj GVK Hotels & Resorts Limited and Oriental Hotels Limited are also in the process of setting up properties in Chandigarh and Bangalore respectively, which would add to the properties under the Taj group. IHCL has secured two management contracts for a high end luxury resort and an upmarket resort in Kovalam, Kerala. Both the hotels are under construction and will open in the current financial year.
Spas
IHCL successfully launched the Taj Spa in the Taj Mahal Palace & Tower, Mumbai and is in the process of launching Spas in a number of hotels. These will be a combination of Day and Destination Spas of international standards, with a unique treatment menu developed by the Taj. They will be the first and one of a kind - Indian Spa. Spas are being planned in Taj Wellington Mews, Mumbai and Taj Lands End, Mumbai. The Spas being rolled out in the key properties will be state-of-the-art, having areas in excess of 10,000-12,000 sq. feet.
IHCL successfully launched the Taj Spa in the Taj Mahal Palace & Tower, Mumbai and is in the process of launching Spas in a number of hotels. These will be a combination of Day and Destination Spas of international standards, with a unique treatment menu developed by the Taj. They will be the first and one of a kind - Indian Spa. Spas are being planned in Taj Wellington Mews, Mumbai and Taj Lands End, Mumbai. The Spas being rolled out in the key properties will be state-of-the-art, having areas in excess of 10,000-12,000 sq. feet.
Ginger Hotels
IHCL is in the process of rolling out its Smart Basics hotels, under the brand name "Ginger". The first prototype has been launched in June 2004 in Bangalore, with roll out being planned in a number of cities and towns subsequently. These hotels will cater to the economy or 'value for money' segment and being predominantly domestic clientele based, are far less prone to fluctuations than the luxury and upscale segments. In the long run, this segment will help in derisking the current revenue stream of the company.
IHCL is in the process of rolling out its Smart Basics hotels, under the brand name "Ginger". The first prototype has been launched in June 2004 in Bangalore, with roll out being planned in a number of cities and towns subsequently. These hotels will cater to the economy or 'value for money' segment and being predominantly domestic clientele based, are far less prone to fluctuations than the luxury and upscale segments. In the long run, this segment will help in derisking the current revenue stream of the company.
Brand Architecture
IHCL is in the process of clearly defining the product and service standards in order to have consistency across properties under each brand. This will help in further enhancing the brand value of Taj.
IHCL is in the process of clearly defining the product and service standards in order to have consistency across properties under each brand. This will help in further enhancing the brand value of Taj.
Product Upgradation
IHCL continues to invest in renovation and relaunch of key / brand defining properties. In the last financial year IHCL upgraded rooms at the Taj Mahal Palace & Tower, Mumbai and Taj West End, Bangalore The lobby and public areas of Taj Lake Palace, Udaipur and Rambagh Palace, Jaipur were also renovated to provide a luxurious sense of arrival. The Sea Lounge and Harbour Bar at Taj Mahal Palace & Tower, Mumbai was relaunched, while a new Vietnamese restaurant 'Blue Ginger' was opened in Taj West End, Bangalore The renovated products and the new outlets were very well received in the market. The renovated rooms at Taj Mahal Palace & Tower, Mumbai and Taj West End, Bangalore have emerged as the price leaders in the respective cities. In the coming year IHCL intends to open a number of F&B outlets by celebrity Chefs with international cuisine. In the upscale segment, the properties are being relaunched to be at par with international level upscale hotels. The rooms at Taj President, Mumbai, Taj Residency, Bangalore, Jai Mahal Palace, Jaipur and Taj Holiday Village, Goa are being renovated and relaunched.
IHCL continues to invest in renovation and relaunch of key / brand defining properties. In the last financial year IHCL upgraded rooms at the Taj Mahal Palace & Tower, Mumbai and Taj West End, Bangalore The lobby and public areas of Taj Lake Palace, Udaipur and Rambagh Palace, Jaipur were also renovated to provide a luxurious sense of arrival. The Sea Lounge and Harbour Bar at Taj Mahal Palace & Tower, Mumbai was relaunched, while a new Vietnamese restaurant 'Blue Ginger' was opened in Taj West End, Bangalore The renovated products and the new outlets were very well received in the market. The renovated rooms at Taj Mahal Palace & Tower, Mumbai and Taj West End, Bangalore have emerged as the price leaders in the respective cities. In the coming year IHCL intends to open a number of F&B outlets by celebrity Chefs with international cuisine. In the upscale segment, the properties are being relaunched to be at par with international level upscale hotels. The rooms at Taj President, Mumbai, Taj Residency, Bangalore, Jai Mahal Palace, Jaipur and Taj Holiday Village, Goa are being renovated and relaunched.
Service Excellence
In the last few years IHCL has undertaken a number of steps to significantly enhance service levels to be in line with the best in class. IHCL has constantly benchmarked itself with the key international luxury chains and strived to raise the bar. IHCL's service excellence philosophy, has at its core, delivery through our people, processes and culture.
IHCL has taken a number of steps to provide highly personalized service to the discerning customer, including butler services in its luxury properties. In order to take care of the entire stay experience, IHCL has also completely revamped its Concierge services. The Centers of Excellence have been strengthened considerably to train staff to meet the exacting standards of a truly luxury hotel. Tata Business Excellence Model (TBEM) will play a significant role in raising the bar of service provided. The TBEM has been rolled out in all the three hotel divisions and will be rolled out to the international properties also.
In the last few years IHCL has undertaken a number of steps to significantly enhance service levels to be in line with the best in class. IHCL has constantly benchmarked itself with the key international luxury chains and strived to raise the bar. IHCL's service excellence philosophy, has at its core, delivery through our people, processes and culture.
IHCL has taken a number of steps to provide highly personalized service to the discerning customer, including butler services in its luxury properties. In order to take care of the entire stay experience, IHCL has also completely revamped its Concierge services. The Centers of Excellence have been strengthened considerably to train staff to meet the exacting standards of a truly luxury hotel. Tata Business Excellence Model (TBEM) will play a significant role in raising the bar of service provided. The TBEM has been rolled out in all the three hotel divisions and will be rolled out to the international properties also.
Tata Business Excellence Model (TBEM)
In order to intensify the drive for Business Excellence, IHCL conducted Internal Assessments based on the Tata Business Excellence Model for Luxury, Leisure, Business SBUs as well as for Taj SATS Air Catering Limited. The Luxury Division has also applied for External Assessment, which is to be facilitated by Tata Quality Management Services.
Based on the External Assessment (2003) feedback report and the feedback from the Internal Assessment, action plans to improve processes which finally impact the overall organizational effectiveness, have been drawn out and worked upon.
Some of the key initiatives deployed across key hotels of the Taj group in the year 2003-04 are:
In order to intensify the drive for Business Excellence, IHCL conducted Internal Assessments based on the Tata Business Excellence Model for Luxury, Leisure, Business SBUs as well as for Taj SATS Air Catering Limited. The Luxury Division has also applied for External Assessment, which is to be facilitated by Tata Quality Management Services.
Based on the External Assessment (2003) feedback report and the feedback from the Internal Assessment, action plans to improve processes which finally impact the overall organizational effectiveness, have been drawn out and worked upon.
Some of the key initiatives deployed across key hotels of the Taj group in the year 2003-04 are:
Raising the bar in terms of product & service quality:
In order to raise the standards of service & product quality to international levels, we
have re-introduced Richey Audits. We are thus able to benchmark & gauge our performance
against international luxury and super-luxury hotels and upgrade our standards.
Introduction of international best practices:
Taj group is using the expertise of international consultants and domain experts who work with
us in different functional and operational areas in order to introduce world-class practices.
We have launched the concierge service, butler service, and car hire service in key hotels of
the group. This has resulted in a steep change in service levels.
Rollout of the Customer Feedback System (CFS):
The CFS was launched in November 2003 and has taken root in 30 hotels across Taj group. It is the
primary and sole customer feedback system of the group. Till date, the system has clocked around 12,000
pieces of customer feedback. The feedback from all sources gets recorded and aggregated and analyzed to
improve the service quality in areas of concern at each of the hotels. Feedback is not restricted to only
guest difficulties (complaints) but also consists of compliments and suggestions. The feedback would
ultimately be used for product planning as well.
Reinforcement of the use of the Balanced Scorecard:
The use of the Balanced Scorecard (BSC) has been strengthened across the organization. It is used as the
key strategy deployment tool. The key strategic objectives are captured in the BSC and cascaded across the
units & departments. All the SBU scorecards are aligned with the corporate scorecard, as well as the HR &
Sales & Marketing scorecard.
Corporate Restructuring
In order to make IHCL leaner and carry brand standards across domestic and international properties, the International division was merged with the Luxury, Business and Leisure divisions, so as to make the corporate setup leaner and more agile. We also continue to restructure our balance sheet and reduce the number of under performing / non-performing assets. Such restructuring, in the previous year, resulted in a net inflow of Rs. 37.25 crores. In the last financial year, IHCL sold the Gateway Riverview Lodge, Chiplun, which did not meet brand standards. IHCL would continue to convert to cash / productive use the idle and non-performing assets as well as restructure under performing properties.
In order to make IHCL leaner and carry brand standards across domestic and international properties, the International division was merged with the Luxury, Business and Leisure divisions, so as to make the corporate setup leaner and more agile. We also continue to restructure our balance sheet and reduce the number of under performing / non-performing assets. Such restructuring, in the previous year, resulted in a net inflow of Rs. 37.25 crores. In the last financial year, IHCL sold the Gateway Riverview Lodge, Chiplun, which did not meet brand standards. IHCL would continue to convert to cash / productive use the idle and non-performing assets as well as restructure under performing properties.
TOP
IHCL's operational improvement programme, TOP (Total Overdrive for Profits), being managed jointly with McKinsey & Company, has made significant progress since its inception in July 2002. The programme has identified improvement ideas across areas like Rooms, Banquets, Purchase, Engineering, Wines, Mini-bar, In-room dining, Chambers and several other operational areas. In addition, the TOP team has been working with a cross functional team to develop a strategy for maximising revenues from key corporate accounts. The focus of the TOP team for the next few months will be in ensuring that all identified improvement ideas are fully implemented. In addition, the team will continue to focus on cost areas and address new areas like restaurant revenues and capital expenditures.
IHCL's operational improvement programme, TOP (Total Overdrive for Profits), being managed jointly with McKinsey & Company, has made significant progress since its inception in July 2002. The programme has identified improvement ideas across areas like Rooms, Banquets, Purchase, Engineering, Wines, Mini-bar, In-room dining, Chambers and several other operational areas. In addition, the TOP team has been working with a cross functional team to develop a strategy for maximising revenues from key corporate accounts. The focus of the TOP team for the next few months will be in ensuring that all identified improvement ideas are fully implemented. In addition, the team will continue to focus on cost areas and address new areas like restaurant revenues and capital expenditures.
IT initiatives
From a situation in 1999 where there was limited IT application, Taj group has today achieved domestic leadership in deploying IT to leverage its competencies and is rapidly approaching benchmarks set by international highly regarded chains. The first three phases of implementation of the IT strategy included putting in place the physical infrastructure across the Taj Group and getting customer relationship applications to ride on this physical infrastructure, with a view to enhancing customer services through customer information and recognition systems and better inventory management.
Some of the key IT initiatives being under taken by IHCL are Orion, a comprehensive back office system, implementing Revenue Management system, Interactive TV Systems and National Call Center.
From a situation in 1999 where there was limited IT application, Taj group has today achieved domestic leadership in deploying IT to leverage its competencies and is rapidly approaching benchmarks set by international highly regarded chains. The first three phases of implementation of the IT strategy included putting in place the physical infrastructure across the Taj Group and getting customer relationship applications to ride on this physical infrastructure, with a view to enhancing customer services through customer information and recognition systems and better inventory management.
Some of the key IT initiatives being under taken by IHCL are Orion, a comprehensive back office system, implementing Revenue Management system, Interactive TV Systems and National Call Center.