The Gateway Hotel Residency Road Banglore

EXECUTIVE SUMMARY

Differentiation is essential, as the presence of a variety of Hotel brands in India is limited, whereas consumer choices and patterns show a need for more brands. Taking this into account as well as branding a strategy of not wanting an omnibus known as Taj defining all its properties the company has rebranded its properties into Taj, Vivanta by Taj, The Gateway and Ginger. Gateway is positioned above the economy brand Ginger but placed below the Residency and the Taj brands. The Gateway Hotel caters to a pan-India network of hotels and resorts offering all the key services at competitive prices. The pricing starts from Rs 3,000 and to over Rs 6,000 depending on the location. The company plans to invest aggressively to promote the brand through owned and managed properties. The Gateway Hotels are to be set up in each of the country’s business districts and leisure locations, catering primarily to the contemporary traveller. STATEMENT OF THE PROBLEM The world has changed drastically over past one year and so has business and its trends. With the global melt down of the economy and its impact most of the corporate have resorted to drastic cost cutting measures. The effect is contagious- the meltdown is getting transmitted throughout the industries. Due to this The Gateway Hotel is experiencing a slowdown in its banquet sales.

OBJECTIVES OF THE STUDY

➢ To understand the effectiveness of the standard operating procedures of banquet sales department and determine the gaps that occur during implementation. ➢ To understand a corporate clients preferences while choosing a particular banquet facility ➢ To determine their perception of The Gateway Hotel’s banquet facilities and recommendways to make The Gateway Hotel a preferred banquet destination for the corporate customer. 1

CONTENTS

EXECUTIVE SUMMARY……………………......................................................6 THE HOSPATILITY INDUSTRY……………………........................................14 HOTEL INDUSTRY IN INDIA.......................................................................... 18 THE TATA GROUP……………….........................................…………………31 •

The Taj

•

Indian hotels company Ltd

THE GATEWAY HOTEL RESIDENCY ROAD…..............................…........36 DESIGN & ANALYSIS OF QUESTIONNAIRE……….................………….39 •

Introduction & objectives

•

Research Methodology

•

Analysis of the questionnaire

•

Observations

SUGESSTIONS………………………………………...............................….56 CONCLUSION…………………………………......…........................……...75 ANNEXTURE…………………………................................….....………….80

HOSPITALITY INDUSTRY – AN OVERVIEW 2

Hospitality is all about offering warmth to someone who looks for help at a strange or unfriendly place. It refers to the process of receiving and entertaining a guest with goodwill. Hospitality in the commercial context refers to the activity of hotels, restaurants, catering, inn, resorts or clubs who make a vocation of treating tourists. Helped With unique efforts by government and all other stakeholders, including hotel owners, resort managers, tour and travel operators and employees who work in the sector, Indian hospitality industry has gained a level of acceptance world over. It has yet to go miles for recognition as a world leader of hospitality. Many take Indian hospitality service not for its quality of service but India being a cheap destination for leisure tourism With unlimited tourism and untapped business prospects, in the coming years Indian hospitality is seeing green pastures of growth. Availability of qualified human resources and untapped geographical resources give great prospects to the hospitality industry. The number of tourists coming to India is growing year after year. Likewise, internal tourism is another area with great potentials. The hospitality industry is a 3.5 trillion dollar service sector within the global economy. It is an umbrella term for a broad variety of service industries including, but not limited to, hotels, food service, casinos, and tourism. The hospitality industry is very diverse and global. The industry is cyclical; dictated by the fluctuations that occur with an economy every year. Today hospitality sector is one of the fastest growing sectors in India. It is expected to grow at the rate of 8% between 2007 and 2016. Many international hotels including Sheraton, Hyatt, Radisson, Meridien, Four Seasons Regent, and Marriott International are already established in the Indian markets and are still expanding. Nowadays the travel and tourism industry is also included in hospitality sector. The boom in travel and tourism has led to the further development of hospitality industry. In 2003-04 the hospitality industry contributed only 2% of the GDP. However, it is projected to grow at a rate of 8.8% between 2007-16, which would place India as the second-fastest growing tourism market in the world. This year the number of tourists visiting India is estimated to have touched the figure of 4.4 million. With this huge figure, India is becoming the hottest tourist destination. The arrival of foreign tourists has shown a compounded annual growth of 6 per cent over the past 10 years. Besides, 3

travel and tourism is the second highest foreign exchange earner for India. Moreover, it is also estimated that the tourism sector will account for nearly 5.3 per cent of GDP and 5.4 per cent of total employment. GDP

Employment

Outlook for 7.80% 1.40% 2006 Outlook for 6.60% 1.00% 20072016

Visitor Export

Personal Capital Govt. T&T Investment Expenditure

10.90%

6.90 %

8.30%

7.70%

7.80%

6.70%

7.80%

6.60%

ATITHI DEVO BHAVO (guest is God)- we have all heard this phrase many times during our childhood from our parents and grand-parents. We can also find its presence in the earliest Vedas and religious epics. Hospitality is deep-rooted in our traditions and comes as an integral part of our heritage. In very simple terms, hospitality is the art of being warm to strangers and has been derived from the Latin word hospitalitem, which means "friendliness to guests". The hospitality industry covers a diverse range of establishments in the form of accommodation, food and drinks. It includes hotels, motels, restaurants, bars, ships, airlines and railways. The concept of hospitality business started when people started traveling away on business and they needed a place away from home which could cater to all their needs. Today hospitality has evolved from the basic food and accommodation industry and taken a very important position in almost all businesses. In fact, it has become a huge industry and drives economies across the globe. The scope of hospitality/ service industry today is far more than one could have ever imagined a few years back. Earlier people who graduated from a Hotel School could get employed either in Hotels, Cruises or Airlines. But service is the BUZZ word for all businesses today. Be it the Retail Sector, Banking Industry, BPO, Telecom world, Real Estate or any other sector having direct customer contact, a person with hospitality background has an edge above the rest, because of their sheer capability of understanding the needs of a customer better and handling difficult customers/ situations efficiently.

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Hotel industry depends largely upon the foreign tourist arrivals further classified into business travelers (around 65% of the total foreign tourists) and leisure travelers. The following figures show that business as well as the leisure travelers (both domestic and international) formed major clientele for hotels in 2007. Over the last two years, the hotel industry has seen higher growth rates due to greater number of tourist arrivals, higher occupancy rate (being around 75% in FY'06) and significant increase in average room rate (ARR). The major factors contributing to this growth include stable economic and political conditions, booming service industry, FDI inflow, infrastructure development, emphasis on tourism by the central as well as state governments and tax rationalization initiatives to bring down the tax rates in line with the international levels.

CONTRIBUTION TO INDIAN ECONOMY The Indian hospitality industry is going great guns presently, with high operating margins and increase in the number of travellers visiting India - both inbound and 5

outbound. Thus, the only direction left for the sector points upwards. However, what needs to be focussed on is the fact that opportunities are not missed, which presently include the large gaps in rooms supply as compared to demand. India has approximately 100,000 rooms only in totality, which is lesser than that in Las Vegas, besides contributing to an insignificant portion of the GDP - just 5.4 per cent says Sudeep Jain, executive director of JLLM. In comparison to nations like China, Thailand and Malaysia where the hospitality share ranges between 12 and 15 per cent, India's growth potential is boundless. "By 2020, the hospitality and tourism sector would be a major contributor to the Indian economy," says Jain. South Asia is and will remain a must-visit destination and India is looking more and more lucrative. Within the nation, major contribution as destinations will be from the growing tier I and II cities with a special emphasis on business hotels across categories as well as the prime leisure destinations like Goa, Rajasthan, etc, which will remain on the growth path, creating the aura for India as a leisure destination. Accordingly, the needs of the traveller, will be nothing less than perfection. Jain says, "They will be more discerning and more value conscious." With an increase in choices available, they will be less forgiving of service deficiencies. Guests will require higher levels of service in the full-service segments, which will warrant greater training requirements for hotel staff. The limited service hotels will require a complete shift in the perception of customer service. Nevertheless, this is directly related to the travellers' travel persona. "The same person will have different standards when he/she is on a business trip, versus an escape with his partner versus a leisure trip with the family," he explains. Future-wise Hotels as a product will witness evolution, says Jain. According to him, "As the market becomes more segmented, especially in the mid-market and select service categories, more product types will appear." The driving force behind these will be global brand standards and therefore they will have standard specifications creating a degree of uniformity and standardisation in certain limited and mid-market hotel segments. Differentiations in product type will evolve more at the higher end of the market with boutique hotels, resorts, convention centres, etc. The need to differentiate design will play an important role. Various brands and operators will play a larger role in driving design standards, getting involved at early project planning stages. "As 6

hotel segments cater to specific demand segments, design typologies will be more customised to suit traveller's lifestyle," says Jain. Equal importance will also be given to green-building concepts in terms of development and operations, which will go beyond cost-saving, placating the demands from both investors and customers. "From the investment side, there will be enough environmentally-conscious investors, who will only invest in green buildings and will also pay a premium for such properties relative to other properties," predicts Jain. In addition, 'green-conscious' business and corporate groups will patronise hotels and brands that support green concepts," he further adds. Besides all this, the reliance on technology will move beyond Wi-Fi and internet requirements to tools to support sales and marketing as well as yield management. Even basic interiors will be upgraded with the use of technology like self check-in and information kiosks. This will also revamp sales and marketing as international brands will leverage their central reservation systems and will initiate networks with third party reservation agencies. In addition, systems will become more sophisticated and targeted, customising sales and marketing efforts for each targeted traveller. F&B, an area of immense importance within a hotel will also evolve, especially for the select-service hotel categories. Jain gives an example. "The standard two/threemeal restaurant could be replaced by limited service 24-hr cafés that occupy a smaller area and employ fewer staff and can provide limited room service." Similarly he speaks of grab-n-go concepts also that would make inroads in the select service segments. However when discussing service, which is the main play of this industry, it has to be understood that the growth phase is still on and the market is currently undersupplied in terms of trained hotel staff to cater to the large supply pipe-line. "A larger number of globally recognised training institutes are required in the country and this is a great opportunity for educational institutions," believes Jain. The driving force Being part of a real estate money management and services company, Jain discusses the various driving factors for growth opportunities, quoting research done by Jones Lang LaSalle Hotels. He believes that if the country is able to sustain its economic growth specially in the service sector, it will have a direct influence on the hotel industry. This is directly related to the incoming foreign investments, not just in the 7

hotels but the economy as a whole. Also equally important is the fact that India has now discovered the power of marketing and with campaigns like Incredible India, there are also the various large scale regional and global events like the upcoming Commonwealth Games, Asian Games and the recent Indian Premiere League that builds interest about the nation. "These are just external factors. The policies and incentives that will be provided over the next decade could further act as a catalyst to this industry," says Jain. Apart from these external factors there are other factors where the industry can be given a great boost. For instance if land prices became more realistic, the process of getting approvals and licences to build and operate hotels are streamlined, together with strong infrastructure development and investment and more tax/levy incentives being provided to build hotels, it would prove very fruitful for the industry. "Also, moving to a more 'international' FSI guideline will stimulate development. Today, FSI's for hotels in India are only a fraction of those that exist in other mature markets," says Jain. He believes that there would be no stopping the growth in the industry if these measures were undertaken. But the fact remains that half of these changes will only occur if the government begins to take some proactive measures and provide the much needed stimuli to further accelerate development.

SWOT ANALYSIS

STRENGTHS

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1. Natural and cultural diversity : India has a rich cultural heritage. The "unity in diversity" tag attracts most tourists. The coastlines, sunny beaches, backwaters of Kerala, snow capped Himalayas and the quiescent lakes are incredible. 2. Demand-supply gap : Indian hotel industry is facing a mismatch between the demand and supply of rooms leading to higher room rates and occupancy levels. With the privilege of hosting Commonwealth Games 2010 there is more demand of rooms in five star hotels. This has led to the rapid expansion of the sector

3. Government support: The government has realized the importance of tourism and has proposed a budget of Rs. 540 crore for the development of the industry. The priority is being given to the development of the infrastructure and of new tourist destinations and circuits. The Department of Tourism (DOT) has already started the "Incredible India" campaign for the promotion of tourism in India.

4. Increase in the market share: India's share in international tourism and hospitality market is expected to increase over the long-term. New budget and star hotels are being established. Moreover, foreign hospitality players are heading towards Indian markets.

WEAKNESSES

1.Poor support infrastructure: Though the government is taking necessary steps, many more things need to be done to improve the infrastructure. The total expenditure made in this regard was US $150 billion in China compared to US$ 21 billion in India.

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2.Slow implementation: The lack of adequate recognition for the tourism industry has been hampering its growth prospects. Whatever steps are being taken by the government are implemented at a slower pace.

3.Susceptible to political events: The internal security scenario and social unrest also hamper the foreign tourist arrival rates.

OPPORTUNITIES 1.Rising income: Owing to the rise in income levels, Indians have more spare money to spend, which is expected to enhance leisure tourism. 2.Open sky benefits: With the open sky policy, the travel and tourism industry has seen an increase in business. Increased airline activity has stimulated demand and has helped improve the infrastructure. It has benefited both international and domestic travels. THREATS

1. Fluctuations in international tourist arrivals: The total dependency on foreign tourists can be risky, as there are wide fluctuations in international tourism. Domestic tourism needs to be given equal importance and measures should be taken to promote it. 2.Increasing competition: Several international majors like the Four Seasons, Shangri-La and Aman Resorts are entering the Indian markets. Two other groups - the Carlson Group and the Marriott chain - are also looking forward to join this race. This will increase the competition for the existing Indian hotel majors

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THE HOTEL INDUSTRY

Hotel Industry in India has witnessed tremendous boom in recent years. Hotel Industry is inextricably linked to the tourism industry and the growth in the Indian tourism industry has fuelled the growth of Indian hotel industry. The thriving economy and increased business opportunities in India have acted as a boon for Indian hotel industry. The arrival of low cost airlines and the associated price wars have given domestic tourists a host of options. The 'Incredible India' destination campaign and the recently launched 'Atithi Devo Bhavah' (ADB) campaign have also helped in the growth of domestic and international tourism and consequently the hotel industry. In recent years government has taken several steps to boost travel & tourism which have benefited hotel industry in India. These include the abolishment of the inland air travel tax of 15%; reduction in excise duty on aviation turbine fuel ; and removal of a number of restrictions on outbound chartered flights, including those relating to frequency and size of aircraft. The government's recent decision to treat convention centres as part of core infrastructure, allowing the government to provide critical funding for the large capital investment that may be required has also fuelled the demand for hotel rooms. The opening up of the aviation industry in India has exciting opportunities for hotel industry as it relies on airlines to transport 80% of international arrivals. The government's decision to substantially upgrade 28 regional airports in smaller towns and privatization & expansion of Delhi and Mumbai airport will improve the business prospects of hotel industry in India. Substantial investments in tourism infrastructure are essential for Indian hotel industry to achieve its potential. The upgrading of national highways connecting various parts of India has opened new avenues for the development of budget hotels in India. Taking advantage of this opportunity Tata group and another hotel chain called 'Homotel' have entered this business segment. 11

According to a report, Hotel Industry in India currently has supply of 110,000 rooms and there is a shortage of 150,000 rooms fuelling hotel room rates across India. According to estimates demand is going to exceed supply by at least 100% over the next 2 years. Five-star hotels in metro cities allot same room, more than once a day to different guests, receiving almost 24-hour rates from both guests against 6-8 hours usage. With demand-supply disparity, hotel rates in India are likely to rise by 25% annually and occupancy by 80%, over the next two years. This will affect the competitiveness of India as a cost-effective tourist destination. To overcome, this shortage Indian hotel industry is adding about 60,000 quality rooms, currently in different stages of planning and development, which should be ready by 2012. Hotel Industry in India is also set to get a fillip with Delhi hosting 2010 Commonwealth Games. Government has approved 300 hotel projects, nearly half of which are in the luxury range. The future scenario of Indian hotel industry looks extremely rosy. It is expected that the budget and mid-market hotel segment will witness huge growth and expansion while the luxury segment will continue to perform extremely well over the next few years.

Over the last decade and half the mad rush to India for business opportunities has intensified and elevated room rates and occupancy levels in India. Even budget hotels are charging USD 250 per day. The successful growth story of 'Hotel Industry in India' seconds only to China in Asia Pacific. 'Hotel Industry in India' has supply of 110,000 rooms. According to the tourism ministry, 4.4 million tourists visited India last year and at current trend, demand will soar to 10 million in 2010 – to accommodate 350 million domestic travellers. 'Hotels in India' has a shortage of 150,000 rooms fuelling hotel room rates across India. With tremendous pull of opportunity, India is a destination for hotel chains looking for growth. The World Travel and Tourism Council, India, data says, India ranks 18th in business travel and will be among the top 5 in this decade. Sources estimate, demand is going to exceed supply by at least 100% over the next 2 years. Five-star hotels in metro cities allot same room, more than once a day to different guests, receiving 12

almost 24-hour rates from both guests against 6-8 hours usage. With demand-supply disparity, 'Hotel India' room rates are most likely to rise 25% annually and occupancy to rise by 80%, over the next two years. 'Hotel Industry in India' is eroding its competitiveness as a cost effective destination.

‘India Hotel Industry' is adding about 60,000 quality rooms, currently in different stages of planning and development and should be ready by 2012. MNC Hotel Industry giants are flocking India and forging Joint Ventures to earn their share of pie in the race. Government has approved 300 hotel projects, nearly half of which are in the luxury range. Sources said, the manpower requirements of the hotel industry will increase from 7 million in 2002 to 15 million by 2010. With the USD 23 billion software services sector pushing the Indian economy skywards, more and more IT professionals are flocking to Indian metro cities. 'Hotel Industry in India' is set to grow at 15% a year. This figure will skyrocket in 2010, when Delhi hosts the Commonwealth Games. Already, more than 50 international budget hotel chains are moving into India to stake their turf. Therefore, with opportunities galore the future 'Scenario of Indian Hotel Industry' looks rosy. Sky hitting property prices in metros are forcing the players of the hotel industry to expand their horizons to tier-II and tier-III cities. Now the focus is shifted on tier II and III cities, after the top metros of India, as these cities would drive the investment and growth phase of the country owing to the huge unexplored potential capabilities. A survey was conducted on Tier II cities of India. The cities like Chandigarh, Guwahati, Bhubaneswar, Jaipur, Ludhiana, Lucknow, Nagpur, Ahmedabad, Indore, Surat, Goa, Mysore, Coimbatore, Kochi and Vishakhapatnam were selected and surveyed. During that survey, the parameters studied were investment scenario, physical and social infrastructure, business environment, real estate, decadal growth, purchasing power, literacy and so on and these cities were declared as the fastest growing cities after the metros.

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One of the main reasons for the big players in hotel industry to venture in these cities is the ever increasing land prices in metros. The land prices in tier two and three cities are far lesser compared to metros. So it leads to lower costs in setting up a hotel. The middle segment people mainly look for basic criteria like hygiene, affordability, safe and secure accommodation and also good food. They don’t want too much of hifi facilities with exhorbent prices. People prefer a hotel which is affordable and meets the necessary requirements to have a pleasant stay. The mid-sized segment is the fastest growing one in the hotel industry. Increasing demand for affordable holiday stay has triggered for growth. So all the key players are eying on tier-II and tier -III cities for their new projects to gain profits.

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THE TATA GROUP

The Tata Group is India’s best-known conglomerate in the private sector with a turnover crossing US$ 11 billion. Long known for its adherence to business ethics, with 230,000 employees across 95 companies, is also India’s most respected private business Group.

Founded by Jamsetji Nusserwanji Tata in the 1868, the Group’s early years were inspired by the spirit of nationalism. The group pioneered several firsts in the Indian industry. India’s first private sector steel mill, India’s first private sector hydro electric power plant, the Indian luxury hotel chain 91903) and India’s first international airline (Air India) are among the few. The Group’s pioneering spirit has continued in more recent times when in 1958. Tata Consultancy Services (TCS Ltd) was founded which stands as India largest software and services companies today. In 1999, the Groups automobile company, Tata motors became the first to develop a car designed, manufactured, and produced indigenously. Tata Tea, after the takeover of the British Tea company Tetley, became the largest manufacturer of tea in the world.

The business operations of the Group currently encompass the Engineering, Materials, Energy, Chemicals, Consumer products, Services, Communications and information systems sectors. The Group has the largest footprint in India’s largest private sector telecom service provider. Today, the scale of the Group’s operations is increasingly turning global. Tata Tea is the first Indian MNC in the global tea industry and India’s largest integrated tea company; Tata chemicals is Asia’s largest manufacturer of soda ash; Titan is one of the worlds top six manufacturer brands in the watch segment; Tata Engineering is amongst the top ten commercial vehicle manufacturers in the world and Tata Indicom with the takeover of VSNL became India’s largest ILD services provider and one of the largest players in the internet service market.

To leverage the value of the Tata brand, the thrust of the Group’s business has shifted from a product-driven to a brand driven portfolio. The Group’s array of brands and 15

services includes Tata Tea, Tetley, Titan, Taj Group of Hotels, Tata Indica, Tata Safari, Tanishq, Westside, Tata Indicom and Tata salt.Today the Tata group accounts for 5.1 % of the country’s total exports. The Group has always believed in giving back more to the society than what is has received. Thus, nearly tow thirds of the equity of Tata sons, the Group’s premier promoter company, is held by philanthropic trusts, which have created a host of national institutions in natural sciences, medical care, energy and the arts. By combining ethical values with business acumen, globalization with national interests and core strengths with flexibility, the Tata group aims to be the largest and most respected global brand from India; a long-standing commitment to improving the quality of life of its stakeholders.

Five core values

The Tata Group has always sought to be a value driven organisation. These values continue to direct the growth and business. The five core Tata values underpinning the way business is done are

Integrity: We must conduct our business fairly , with honesty and transparency. Everything we do must stand the test of public scrutiny

Understanding: We must be caring, show respect, compassion and humanity for our colleagues and customers around the world and always work for the benefit of India

Excellence: We must constantly try to achieve the highest standards in our day to day work and in the quality of goods and services we provide

Unity: we must work cohesively with our colleagues across the group and with our customers and partners around the world, building strong relationships based on tolerance , understanding and mutual cooperation 16

Responsibility: We must be responsible , sensitive to the countries , communities and environments in which we work, always ensuring what comes from the people goes back to the people many times over

THE TATA BUSINESS EXCELLENCE MODEL (TBEM)

The Tata Business Excellence Model has been instituted in memory of late Mr.JRD Tata as a tribute to his eternal quest for perfection and quality. This model forms the basis of the JRD QV (“JRD’ for JRD Tata and “QV” for Quality values) award. The award aims to promote customer driven quality in the products and services offered by Tata companies by recognizing those Tata Companies which excel in instilling Quality as an organization wide value, articulated throughout every aspect of business.

THE OBJECTIVE

To recognize Tata companies for the emphasis that they lay on quality values in every sphere of their functioning. Only when the quest for the highest level of Quality is an ongoing and continuous process within the company, will the company reach world class standards.

Towards this end the Tata Business Excellence Model provides a framework for improvement and assessment of quality on the following dimensions, which the model terms as “Categories”

Category 1

Leadership

Category 2

Strategic Planning

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Category 3

Customer & Market focus

Category 4

Information & Analysis

Category 5

Human Resource Focus

Category 6

Process Management

Category 7

Business Results. TATA BUSINESS EXCELLENCE MODEL

Framework and interface with current group. Initiatives launched till date.

CUSTOMER FOCUSED STRATEGY AND ACTION PLANS

HUMAN STRATEGIC

RESOURCE

PLANNING

FOCUS

BUSINESS REVIEW

GROUP

COMMITTEES

HR 18

BUSINESS LEADERSHIP

RESULT

GROUP

GROUP

EXECUTVE

FINANCE

OFFICE PROCESS CUSTOMER AND

MANAGEMENT

MARKET FOCUS

INFORMATION & ANALYSIS THE HISTORY OF THE TAJ GROUP OF HOTELS

The true story of our beginning starts in the last decade of the 19thcentury (1868) with the founder of the House of Tata’s. Mr.Jamshetji Nusserwanji Tata. The story goes that Mr.Tata decided he would build a hotel in Mumbai, the likes of which would never have been dreamt of anywhere in the British Raj to contribute to the city of Mumbai formerly known as Bombay which supported him and his endeavours. He formed a company – the Indian Hotels Company in 1897, raised finances, invested his own money, hired the best of architects and craftsman and he began constructing the Taj Mahal Hotel in 1902 on a prime reclaimed site at Apollo Bounder, with the rooms looking out to brilliant sunrise on the horizon of the Arabian sea, against the backdrop of the hills that lay beyond the city. The hotel was opened to the guest on 1903.

In those days, The Taj Mahal Hotel was built around two or three great walls, which ran the full height of the building, the straits were of stone and the railing of iron, and 19

around the great walls wan galleried, likewise with stone floors and iron railings. The corridors were as much an exchange place of gossip as any market place. The bearers from one end to the other of the vast hotel knew everything about the guest of the hotel, his vices and his peculiarities, his meanness or generosities It was as if each room were walled with glass for the entire world to look inside.

In those days, Bombay was a wide-open town. The Taj Mahal was a famous rendezvous for men and women from all over the East. They came from Sumatra and Madagascar and the Malay States, from Medan, Delhi and Semarang and Borneo and Ceylon and Sourabya. There is a legend that the hotel was designed to face the bay but the Indian Contractors who built it put the wrong was round and that the English architect who designed it look one look at the on his arrival in Bombay and seeing what they had done, hanged himself. Although this is and amusing tale, there is no truth in it the reason hotels gardens are located at the back is so that they could offer guest a safe haven from the noise and filth of Bombay.

From 1903 till the end of the ‘06s the Indian Hotels Company was synonymous with the Taj Mahal Hotel, for our Company restricted itself to the sunning of this one hotel pnly. In the early 60’s when it was becoming apparent that India’s future and here ability to earn foreign exchange was crucially dependent on fostering the Tourism Industry, the company began to take in more professional men and women with proven abilities and great potential.

Mr.Jehangir Ratanji Dababhoy Tata took over as the Chairman of the Tata sons in the year 1938 and remained the chairman of the company until 1991 when the current chairman Mr.Ratan Naval Tata took over. Mr.J.R.D. Tata passed away after a brief illness on November 29, 1993 at the age of 89.

While in 70s Taj group was expanding at rapid race, it was content with its achievements in India alone. The group’s success in India had now become known all over the globe and the company started receiving offers to promote technical knowhow and supply success recipe to hotels and restaurants abroad. 20

Billed by the Times, London as the finest hotel in the East, the Taj’s first hotel, the Taj Mahal palace & Tower, Mumbai was perhaps the only place in the world where a British Viceroy could rub shoulders with an Indian Maharajah, where the Congress could debate with right wing leaders, and where sailors on shore leave could flirt with Pompadour Follies. Built at the cost of a quarter of million pounds, the hotel introduced a series of firsts that set new benchmarks in Indian hospitality. Over the years, the Taj brought into Bombay, “Professors of Dance” Mademoiselle Singy to raise temperatures and a few eyebrows with the Tango, the first air-conditioned ball room to cool things down, the first cold storage, the first licensed bar, and more.

The changing decades ushered in new tastes and newer guests including Mick Jagger, Steven spielberg, and David Rockefeller, to name a few. From Nobel laureates to rock stars, fashion divas, to oil-rich sheiks, Taj represented a global village long before the term was to become a cliché. Even today, a hundred years on, guests will find Taj talking luxury to greater heights in all its hotels around the world including business capitals, fairy-tale palaces, on secluded islands, in private yachts, abroad executive jets, and amidst spas and resorts. Still, as the discerning traveller will note, a little ahead of its time.

VISION

Embrace Talent and harness Expertise to leverage standards of Excellence in the Art of Hospitality to grow our International presence, Increase domestic Dominance and Crate value for all stakeholders.

MISSION

Product, Service and Profit Leadership. 21

TAJ PEOPLE PHILOSOPHY

You are and important member of the Taj family.

We endeavour to select, retain and compensate the best talent in the industry

We reward and recognize quality customer care based individual and team performance.

We commit to providing you with opportunities for continuous learning and development.

We abide by fair and just policies that ensure your well being and that of your family, the community and the environment.

We commit to regular and formal channels of communication, which nurture openness and transparency.

We strongly believe that you are the Taj.

THE INDIAN HOTELS COMPANY The Indian Hotels Company (IHCL) and its subsidiaries are collectively known as Taj Hotels Resorts and Palaces, which is recognized as one of Asia's largest and finest hotel companies. Incorporated by the founder of the Tata group, Jamsetji Tata, the company opened its first property, the Taj Mahal Palace hotel, Bombay in 1903. The Taj, a symbol of Indian hospitality, completed its centenary year in 2003. 22

Taj Hotels Resorts and Palaces comprises 64 hotels in 45 locations across India with an additional 15 international hotels. The most significant additions to the Taj portfolio have been The Pierre, the iconic landmark hotel on New York's Fifth Avenue, the Taj Boston and the Blue, Sydney. In 1993, the company established the Indian Institute of Hotel Management in Aurangabad in Maharashtra in western India. AREAS OF BUSINESS IHCL operates in the luxury, premium, mid-market and value segments of the market through the following: ➢ Taj is the flagship brand for the world’s most discerning travellers seeking authentic experiences in luxury. Besides luxurious living and fine dining, Taj Hotels also promise a whole new experience of tranquility and total ‘wellness’, through Jiva Spas, a unique concept, which brings together the wisdom and heritage of the Asian and Indian philosophy of wellness and well-being. ➢ Taj Exotica is a resort and spa brand found in the most exotic and relaxing locales of the world. ➢ Taj Safaris are India's first and only wildlife lodges circuit, that allow travellers to experience the unparalleled beauty of the Indian jungle amidst luxurious surroundings ➢ Premium Hotels provide the new generation of travellers a contemporary and creative hospitality experience that matches their work-hard, play-hard lifestyles. ➢ The Gateway Hotel is a pan-India network of hotels and resorts that offers business and leisure travellers a contemporary hotel experience. ➢ Ginger is IHCL’s revolutionary concept in hospitality for the value segment. The other areas of business include: Taj Air, a luxury private jet operation and Taj Yachts, which can be used by guests in Mumbai and Kochi, in Kerala. It also operates airline catering services. JOINT VENTURES, SUBSIDIARIES, ASSOCIATES Taj Sats Air Catering: a joint venture with Singapore Airport Terminal Services, a 23

subsidiary of Singapore Airlines, Taj Sats Air Catering is the largest airline catering service in South Asia Roots Corporation: a wholly-owned subsidiary that operates the Ginger chain of budget hotels in India. LOCATION IHCL’s head office is in Mumbai, India. Taj properties are located in Asia, the UK, the US, Australia and Africa.

IMPORTANT MILESTONES IN THE HISTORY OF TAJ 1903: Created history with the opening of The Taj Mahal Palace Hotel, Bombay (Mumbai) – India’s first Luxury hotel 1971-72: Pioneered the concept of authentic Palace Hotels in the country with sthe Rambagh Palace in Jaipur, the Palace of the Maharajah of the Esrtswhile state of Jaipore. 1974: Conceptualized the unique beach resort at u built within the walls of a Portuguese fort overlooking the Arabian Sea 1978-82: Taj launched in Delhi with its luxury hotel - Taj Mahal Hotel on No. 1 Man Singh Road and then prepared India for the Asian Games by setting up Taj Palace, Delhi with the largest convention centre in the country 1982: Taj established a presence in the Western Hemisphere with the historic St. James Court Hotel near Buckingham Palace, London 24

1984-92: Well before these destinations became world renown for their beauty, Taj expanded to Kerala and Sri Lanka 1992-97: Rolled out Business Hotels in key cities and towns across the country, branded as Taj Residency hotels 2000: Consolidated its position as the largest chain in India with hotels in Ahmedabad and Hyderabad, the latter city being a joint venture with GVK Hotels resulting in a dominant position in the market for premium and luxury hotel rooms 2002: The new Taj Exotica Resort & Spa, Maldives, within six months of its launch, was awarded "The Best Resort in the World" - Harpers and Queen Travel Awards . TAJ PROPERTIES The Taj Hotels are broadly classified under three SBU’s (Strategic Business Units)

Luxury SBU

Business SBU

Leisure SBU

Palace Hotels

ITPL Residency Gateway Hotels

Cultural Heritage Garden Retreats Resorts

City Hotels

TAJSATS Taj also offers innovative flight catering and related services, TajSATS. TajSATS Air Catering Ltd., is a joint venture of the India Hotels Company, popularly known as the Taj Hotels Resorts and Palaces and SATS (Singapore Airport Terminal Services). TajSATS is the market leader in airline catering. TajSATS operates out of the 4 major 25

metros in India, viz. Mumbai, Delhi, Chennai and Kolkata. Currently TajSATS caters to over 26 international and domestic airlines, and is the leader in the India flight catering market.

The Taj Madras Flight Kitchen operates airport restaurants in Chennai. The Company is a joint venture of the Indian Hotels, SATS and Malaysian Airlines. All these facilities are equipped with state-of-the-art technology and advanced kitchen equipment for efficient and hygiene food production and handling. At the heart of out offering is a commitment to be ‘One with the Customer’. We are focused on creating affinity with our customers every single day. We believe in strengthening this relationship by delighting the customer in every interaction. TajSATS is expanding its operations in the following cities in India – Amritsar, Ahmedabad, Bangalore, and Hyderabad & Pune. Amritsar is first on the list and construction has been initiated already. All the other cities would have commenced operations with the next 12 months. INDITRAVEL Inditravel was formed in 2002; Post the acquisition of the 18 year old agency stallion Travel

services Pvt. Ltd

by the India Hotels company Limited.

Headquartered in Mumbai, with branches in 34 locations across India, Inditravel is a professionally managed travel agency providing total travel management solutions. Affliated to IATA, UFTAA, PATA, TAAI and the Department of Tourism, India. Inditravel offers the following services:

 International Air ticketing  Domestic air ticketing  Rail ticketing  Hotel Bookings  Car Rentals  Visas  Passport Assistance  Foreign Exchange Assistance 26

 Global Telecards  Medical Insurance.

CORE VALUES

PEOPLE DIVERSITY, INTEGRITY & RESPECT

People are our greatest asset and the key to our success. We respect diversity of people, ideas and cultures and honour the value of individuals in a team

PASSION FOR EXCELLENCE

We believe the perfection to achieve excellence. We continuously improve processes to surpass global benchmarks 27

EXCEED EXPECTATIONS

We succeed by exceeding expectations of all stakeholders and protecting the interest of our shareholders and playing by the rules.

INNOVATION We encourage innovation, embrace change and support growth through knowledge and learning

SENCE OF URGENCY & ACCOUNTABILITY

We accept responsibility and deliver on promises with a sense of urgency and agility

SOCIAL RESPONSIBILITY

We commit to improve the quality of life of the communities we serve and our concern for the environment by returning to society what we earn

We recognize and respect each others in all interactions and set the example for our guests, business associates and colleagues. JOB AT WORK

We encourage a fair environment that supports equal opportunity to attract, develop and retain the best talent and Endeavour to have fun too.

THE GATEWAY HOTELS Differentiation is essential, as the presence of a variety of brands in India is limited, whereas consumer choices and patterns show a need for more brands. For instance, the margins of luxury hotels have taken a beating in recent times, but budget hotels and above are doing brisk business. Taking advantage of such gaps, global hotel chain majors like the Wyndham group, MGM Mirage Hospitality, Langham Hotels, Movenpick, Accor Hospitality and Jumeriah are launching a variety of brands that will operate at different levels. Taking into accountas well as branding a strategy of not not wanting an omnibus known as the Taj defining all its properties the company has rebranded all its 28

properties into Taj , Vivanta by Taj , The Gateway and Ginger. The Gateway is positioned above the brand Ginger but placed below the Residency and Taj Brand. “We think the star game in hotels is outdated and, therefore, we have not defined this brand as any star. It remains an upscale option whereas Ginger would be our economy segment,’’ said Ajoi Misra, senior V-P (sales and marketing), IHCL. The Gateway Hotel caters ss to a pan-India network of hotels and resorts offering all the key services at competitive prices. The pricing starts from Rs 3,000 and to over Rs 6,000 depending on the location. The group is looking at smaller cities as they are growing and also plans to expand in places such as Varanasi and Agra which attract a lot of leisure travelers. The brand will be present in all business districts and leisure locations across India to offset the growing competition in the Indian hospitality market in the future .16 existing hotels have migrated to this brand and another 10 new hotels have already been signed up to be incorporated within the Gateway chain. The hotels that are rebranded as Gateway are at Agra, Bangalore, Calicut, Chikmagalur, Conoor, Jaipur, Jaisalmer, Madurai, Mangalore, Nasik, Sasan Gir, Surat, Vadodara, Varanasi, Vijaywada and Visakhapatnam.The group has also signed up in all key metros – Mumbai, Bangalore, Chennai, Pune. Other locations signed up are Jalandhar, Mysore, Navi Mumbai, Raipur and Gondia. The existing 16 hotels have been refurbished to maintain consistency across the Gateway brand.The company plans to invest aggressively to promote the brand through owned and managed properties. The Gateway Hotels are to be set up in each of the country’s business districts and leisure locations, catering primarily to the contemporary traveller.

29

30

THE GATEWAY PROPERTIES

The Gateway Hotel Residency Road Bangalore The Gateway Hotel Beach Road Calicut The Gateway Hotel Fatehabad Road Agra The Gateway Hotel KM road Chikmanglur The Gateway Hotel Church road Conoor The Gateway Hotel Marian Drive Ernakulam The Gateway Hotel Ramgarh Lodge Jaipur The Gateway Hotel Rawalkot Jaisalmer The Gateway Hotel Pasumalai Madurai The Gateway Hotel Old Port Road Manglore The Gateway Hotel Ambad Nashik The Gateway Hotel Athwalines Surat The Gateway Hotel Akota Gardens Vadodara The Gateway Hotel Ganges Varanasi The Gateway Hotel Anardhanapuram Varkala The Gateway Hotel MG road Vijayawada The Gateway Hotel MG road Visakhapatnam

31

DEPARTMENTS AT THE GATEWAY HOTEL

1. FRONT OFFICE •

Customer contact point

•

Counters - Reception Cash counter Bell desk Travel desk

•

Reservations, operator’s cabin

•

Business centre

2. ENGINEERING •

Maintenance of buildings, equipments

•

Suggestions and installation of new machines

•

Plumbing and air conditioning

•

Ensures smooth flow of operations

3. LEARNING & DEVELOPMENT •

Provides training for staff

•

Ensures that staff are well equipped with perfect knowledge

4. SYSTEMS 32

•

Implementation of IT

•

Connects all the departments with IT

•

Ensures proper communication within and outside the company

5. HUMAN RESOURCES •

Responsible for the overall productivity of the organisation

•

Recruitment, selection, staffing

•

Takes care of problems, grievances, progress, development and welfare of the staff

6. FINANCE •

Accounts

•

Credits

•

Stores

7. FOOD PRODUCTION (KITCHEN) •

Kitchen work (cooking)

•

Deep freezer, butchery area

•

Bakery, salads

•

Ensures proper hygiene

8. SECURITY •

Crisis management

•

Responsible for sensitive situations (guests and outsiders)

•

Deal with public unrest, strike, terrorist attacks, bomb scares, etc.

9. SALES AND MARKETING 33

•

Responsible for sale of rooms and banquets

•

Generate revenue, attract customers

•

Advertisement and promotion

•

Public relation

RESEARCH METHODOLOGY 34

INTRODUCTION As a part of my endeavour, I interacted with the various corporate customers availing the banquet facilities of The Gateway Hotel , Residency Road Bangalore as well as corporate who didn’t use the hotels banquet facilities These interactions gave an insight into the various factors that influence a customer’s choice of banquet facilities and how they perceived the hotels banquet facilities. On the basis of the various criterions that would enable me to meet the objectives of the study, a questionnaire was designed. The questionnaire was administered by me rather being filled by the customers. This was due to two reasons:

1. The customer would not be restricted by choices

35

2. The survey was conducted over the telephone

OBJECTIVES OF THE STUDY

➢ To understand effectiveness of internal standard operating procedures and the deviation from the S.O.P’s

➢ To determine the factors that influence a customers choice of banquet facilities

➢ To evaluate customer perception of The Gateway Hotel, Residency Road banquet facilities

➢ Recommend ways to make The Gateway Hotel, Residency road the preferred banquet destination for the corporate customer.

RESEARCH METHODOLOGY Data Collection: Primary Data: •

Direct Interaction.

•

Observations

•

Questionnaire Method

Secondary Data 36

•

Reports, Journals

•

Newspapers

•

Internet

Data Analysis: •

Percentage Method

•

Bar graphs

•

Comparative charts

TOTAL NUMBER OF RESPONDENTS: 100 •

84 Clients

•

16 Non clients

37

DATA ANALYSIS AND INTEPRETATION

1. How often do you use The Gateway Hotel?

Usage

Frequency

Percentage

Always

6

6

Frequently

20

20

Occasionally

38

38

38

Rarely

20

20

Never

16

16

INTERPRETATION In course of the study , it was found that only 6 % of the corporate customers use the Gateway hotel whenever there was a function where as a substantial 38% used it occasionally. • • • •

Always being 100% of all the company’s events being held at The Gateway Frequently being more than 80% of the company’s events being held at The Gateway Occasionally being 40%- 80% of the company’s events being held at The Gateway Rarely being less than 40% of the company’s events being held at The Gateway

2. Does The Gateway Hotel’s Banquet service provide you with complete and accurate information in good time?

Response

Frequency 39

Percentage

Yes

80

95

No

4

4.7

Response accuracy No

Yes No

Yes

INTERPRETATION

Around 95% of the respondents felt that they were provided with complete and accurate information about the banquets in good time and all the respondents recall their banqueting experience with The Gateway as good. This suggests that the performance of the banquet sales team highly satisfactory. This also indicates that current SOP are effective and they are being adhered to.

3. How did you come to know about The Gateway Hotel banqueting facilities?

40

Source

Frequency

Percentage

Word of mouth

34

34

Advertisements

0

0

Sales Calling

12

12

Internet

6

6

Brand Recall

42

42

Company List

6

6

Source

Li st pa ny

om C

Br

an d

R

ec al l

te rn et In

Ca llin g

Sa le s

en ts se m

Ad ve rti

W or

d

of m ou th

45 40 35 30 25 20 15 10 5 0

INTERPRETATION

42% of the customers had the brand in mind when they came to avail the banquet facility where as 34% came to know about the services through word of mouth. Whereas only 12 % came to know about the facility through sales calling, which suggests that the frequency of sales calls should be increased. The effectiveness of advertisements showed to be nil

41

4. Grade the following parameters, which drives or influences you to choose a banquet facility of a particular brand?

PRICE Opinion Strongly Disagree Disagree Disagree Somewhat Neutral Agree somewhat Agree Strongly Agree

Frequency Percentage 0 0 14 14 2 2 8 8 34 34 24 24 18 18

42

Level Of Agreement

Ag re e

ng ly

ha t

Ag re e St ro

e

so m ew

eu t ra l N

Ag re

ha t ew

D

St ro

is ag re

e

So m

is ag re e

D

ng ly

D

is ag re e

40 35 30 25 20 15 10 5 0

INTERPRETATION

In various degrees of agreement 76% agree that pricing was one of the factors that influenced their choice of banquet facility ,with 34% agreeing that price influenced their choice only to an extent. It was also observed that overseas clients didn’t consider price as a major determining factor

CUSTOMER SERVICE

Opinion Frequency Percentage Strongly Disagree 0 0 Disagree 0 0 Disagree Somewhat 2 2 Neutral 16 16 Agree somewhat 20 20 Agree 36 36 Strongly Agree 26 26

43

Level Of Agreement

re e Ag

gr ee isa

ly

Ag re e

re e Ag

D

St ro ng

l so m ew ha t

eu tra N

ha t

So

m ew

gr ee isa

D

St ro ng

ly

D

isa

gr ee

40 35 30 25 20 15 10 5 0

INTERPRETATION

Out of the total sample size of 100 respondents 36% agreed and 26% strongly agreed that good customer service was one of the factors that promted them to use a particular banquet facility.

CONVINENCE

Opinion Frequency Percentage Strongly Disagree 0 0 Disagree 0 0 Disagree Somewhat 0 0 Neutral 10 10 Agree somewhat 22 22 44

Agree Strongly Agree

24 44

24 44

Level Of Agreement

re e Ag y

gl

ha t

re e Ag St ro n

so

m ew

ra l eu t re e Ag

gr ee D

isa

St ro n

N

ha t

So

y gl

m ew

gr ee isa

D

D

isa g

re e

50 45 40 35 30 25 20 15 10 5 0

INTERPRETATION

The research revealed that convenience is of paramount importance as 44% of the respondents strongly agreed that it influences their choice of banquets andan overall 90% agreeing at varying levels . It was also noted that none of the respondents disagreed to the fact at any level.

DECOR & AMBIENCE

Opinion Strongly Disagree

Frequency Percentage 0 0 45

Disagree Disagree Somewhat Neutral Agree somewhat Agree Strongly Agree

0 2 14 44 30 6

0 2 14 44 30 6

Level Of Agreement

Ag re e

ng ly

ha t

Ag re e St ro

e

so m ew

eu t ra l

ha t ew

N

Ag re

e

So m

is ag re e

D

is ag re D

St ro

ng ly

D

is ag re e

50 45 40 35 30 25 20 15 10 5 0

INTERPRETATION

Out of the 100 respondents 44% said that decor and ambience somewhat influenced their choice while selecting banqueting facilities which reveals ambience and decor was not a major determining factor.30% respondents agreed to it though 14% remained neutral.

46

QUALITY OF FOOD

Opinion Frequency Percentage Strongly Disagree 0 0 Disagree 0 0 Disagree Somewhat 0 0 Neutral 14 14 Agree somewhat 24 24 Agree 34 34 Strongly Agree 28 28

Level Of Agreement

Ag re e

e

ng ly

Ag re St ro

ha t

so m ew

eu t ra l N

Ag re e

ha t ew

e D

is ag re

e

So m

is ag re D

St ro

ng ly

D

is ag re

e

40 35 30 25 20 15 10 5 0

INTERPRETATION

It was found that 86% of the respondents agreed in varying levels that Quality of food will affect their decision while selecting banqueting facilities out of which 28% strongly agreed and 34%agreed.

47

VALUE FOR MONEY

Opinion Frequency Percentage Strongly Disagree 0 0 Disagree 0 0 Disagree Somewhat 0 0 Neutral 0 0 Agree somewhat 24 24 Agree 32 32 Strongly Agree 44 44

Level Of Agreement 50 45 40 35 30 25 20 15 10 5 0

e Ag re

ng ly

Ag re e St ro

ha t

so m ew

eu t ra l N

Ag re e

ha t ew

e is ag re

e

So m

is ag re D D

St ro ng ly

D

is ag re

e

c

INTERPRETATION

Value of money emerged as a very important parameter with 44% strongly agreeing, 32% agreeing and 24% somewhat agreeing to it as a decisive factor moreover as compared to price the level of agreement was stronger . This suggests that the banquet offerings should be such that the customer perceives it as value for money 48

GOOD DELIVERY

Opinion

Frequency Percentage

Strongly Disagree Disagree Disagree Somewhat Neutral Agree somewhat Agree Strongly Agree

0 0 0 20 18 32 30

0 0 0 20 18 32 30

Level Of Agreement

49

Ag re e

ng ly

Ag re e St ro

ha t

so m ew

eu t ra l N

Ag re e

ha t ew

e is ag re

e

So m

is ag re D D

St

ro ng ly

D

is ag re

e

35 30 25 20 15 10 5 0

INTERPRETATION

When 30% of the sample strongly agreed and 32% agreed that good delivery of service was a decisive factor, as compared to other decisive factors 20% maintained that it had nothing to do with their choice of a banquet facility

RECOGINIZED BRAND NAME

Opinion Frequency Percentage Strongly Disagree 0 0 Disagree 0 0 Disagree Somewhat 0 0 Neutral 12 12 Agree somewhat 20 20 Agree 18 18 Strongly Agree 50 50

INTERPRETATION

The major reason effecting the corporate’s choice of a banquet facility emerged to be a recognised brand name with 50% of the sample strongly agreeing that a recognised brand name followed by 20% who agreed somewhat and 18% agreeing was brand was important while choosing a particular banquet facility while no one disagreed to the fact at any level 50

QUALITY OF SERVICE

Opinion Frequency Percentage Strongly Disagree 0 0 Disagree 0 0 Disagree Somewhat 0 0 Neutral 12 12 Agree somewhat 18 18 Agree 30 30 Strongly Agree 40 40

Level Of Agreement

51

Ag re e

e

ng ly

ha t

Ag re St ro

e

so m ew

eu t ra l N

Ag re

ha t ew

e is ag re

e

So m

is ag re D D

St ro ng ly

D

is ag re

e

45 40 35 30 25 20 15 10 5 0

INTERPRETATION

40% strongly and 30% agreed that Qualityof service as a decisive factor while selecting Banqueting facilities while no one disagreed to it at any level

EASE OF ACCESS

Opinion Frequency Percentage Strongly Disagree 0 0 Disagree 0 0 Disagree Somewhat 10 10 Neutral 14 14 Agree somewhat 20 20 Agree 30 30 Strongly Agree 28 28

52

Level Of Agreement

e

ng ly

A

gr e

ee Ag r St ro

ee

so

m

ew ha t

l tra N eu Ag r

ha t

D

isa

St ro

gr

ee

So m

ew

ag D is

ng ly

D is

ag r

ee

re e

35 30 25 20 15 10 5 0

INTERPRETATION

With 28%strongly agreeing and 30% agreeing, ease of access is a factor kept in mind while corporates select the banquet. The location of the Banquet, hence, is an important decisive factor.

GOOD SALES REPRESENTATIVE

Opinion Strongly Disagree Disagree

Frequency Percentage 0 0 0 0 53

Disagree Somewhat Neutral Agree somewhat Agree Strongly Agree

22 22 20 26 10

22 22 20 26 10

Level Of Agreement

e

ng ly

A

gr e

ee Ag r St ro

ha t ew

l so m

tra ee

N eu Ag r

ew ha t

ee

So m

gr re e

D is a D is ag

St ro

ng ly

D is

ag r

ee

30 25 20 15 10 5 0

INTERPRETATION

The research revealed that a good sales representative was essential but did not to a great extent influence the choice while selecting a banquet facility with 22% disagreeing some what and 22% neutral to the variable

5. Rate The Gateway Hotel banquet service on the following attributes…

54

GOOD FOOD

Opinion Frequency Percentage Strongly Disagree 0 0 Disagree 0 0 Disagree Somewhat 4 5 Neutral 4 5 Agree somewhat 30 36 Agree 40 48 Strongly Agree 6 7

e

ng ly

A

gr e

ee Ag r St ro

gr

ee

So m

ew ha t N Ag eu tra re e l so m ew ha t

ee gr

Di sa D is a

St ro

ng ly

Di s

ag r

ee

45 40 35 30 25 20 15 10 5 0

INTERPRETATION

Out of a total sample of 84 respondents 48% agreed that the food provided by The Gateway Hotel was good and 36% felt that it was satisfactory. Taking this into

55

account it can be inferred that the quality of food provided by the hotel is to the liking of the customer

EXPENSIVE or VALUE FOR MONEY

Opinion Strongly Disagree Disagree Disagree Somewhat Neutral Agree somewhat Agree Strongly Agree

EXPENSIVE VALUE FOR MONEY Frequency Percentage Frequency Percentage

0 44 14 14 4 4 4

0 52 17 17 5 5 5

0 0 8 10 12 32 22

0 0 10 12 14 38 26

INTERPRETATION

With 52% disagreeing and 17% disagreeing somewhat it can be deduced that the customers did not find the banquet offerings of the hotel expensive. With 38% agreeing and 26% strongly agreeing it can be inferred that the customer perceived the services as good value for money

THE GATEWAY HOTEL AS A BRAND YOU CAN TRUST 56

Opinion

Frequency Percentage

Strongly Disagree Disagree Disagree Somewhat Neutral Agree somewhat Agree Strongly Agree

0 0 0 6 6 36 36

0 0 0 7 7 42 42

e Ag re

ng ly

Ag re e St ro

ha t

so m ew

eu t ra l N

Ag re e

ha t ew

e is ag re

e

So m

is ag re D D

St

ro ng ly

D

is ag re

e

45 40 35 30 25 20 15 10 5 0

INTERPRETATION

Further, among the customers who had used the banquet facilities of the hotel 84% fell in the category who agreed that The Gateway was a brand that could be trusted. It was noted that the customers preferred to refer to the brand as The Taj Gateway.

57

GOOD AMBIENCE

Opinion

Frequency Percentage

Strongly Disagree Disagree Disagree Somewhat Neutral Agree somewhat Agree Strongly Agree

0 1 10 24 12 30 6

0 2 12 29 14 36 7

e

ng ly

A

gr e

ee Ag r St ro

ee

so

m

ew ha t

l N

eu

tra

ha t

Ag r

re e

So m

ew

ag Di s D is ag

St ro

ng ly

D is

ag r

ee

re e

40 35 30 25 20 15 10 5 0

INTERPRETATION 36% of the respondents agreed that the hotel’s decor and ambience was good With 28% disagreeing and 28% neutral to the idea it leaves the hotel with a scope for improvement 58

SUGGESTIONS

RECOMENDATIONS

•

Most of the customers came to know about the banquet facility through word of mouth or through brand recall where as only a few claimed to have been 59

approached through sales calling and through company lists .So i would recommend the hotel to increase the frequency of sales calls which would also increase its chances of being on the corporate lists •

A good majority of the clients used the services of the hotel only occasionally (40%- 80% of the company’s events) and some who used the services rarely (less than 40%) . To tap this market the hotel would have to differentiate its product offerings from that of its competitors. Keeping this in mind a suggestion that I would like to make is to enliven the Meetings, Conferences Inductions and other corporate events by first understanding the nature of the event and by offering appropriate themes and making them more interesting

•

In course of interaction with the clients it was found that most of them still were not comfortable accepting the gateway as a standalone brand they preferred to associate it to the Taj . The gateway being a start-up brand should focus on building itself as brand

•

Foreign clients who used the banquet facility cared less about the price factor and more about the delivery of service which suggests that the hotel can up sell its banquet offerings to overseas clients

•

Another important suggestion that i would like to make is to revise the existing corporate rates and to also set a limitation period for such rates

•

As per the research convenience is one of the major factors that that influences the customer’s choice of a particular banquet facility keeping this in mind an improvement that can be made is to incorporate state of the art technology rather than outsource it .

•

Another suggestion in this regard would be that one operations staff should be always present as far as corporate functions such as meetings, inductions,

60

conferences, seminars; trainings etc are concerned as it would be more convenient for the client to have a person on call. •

ATTENTION TO DETAIL! The hotel needs to focus more on detailing its offerings. A suggestion in this regard would be to give more importance to presentation in terms of food and venue presentation.

•

The analysis also suggests that there is scope for improvement of the hotels decor and ambience

•

Most of the corporate customers were looking for value for money rather than a cheaper price therefore I would like to suggest that the banquets should increase its offerings in terms of the standard menu which would be perceived by the customer as value for money rather than negotiate on the price

•

Rack rates need to be fixed and the pricing should be more structured , rates should be quoted keeping a fixed profit margin because compromising heavily on the rates would dilute the brand perception

RECOMENDATIONS FOR IMPROVING THE S.O.P’S •

The banquet staff need to be given training on negotiating skills as negotiation was one of the prime factors that influenced banquet profits

•

More emphasis should be given to handling enquiries and a foolproof and paperless operating procedure should be incorporated to keep track of enquiries as the existing SOP for tracking enquiries is ineffective

•

Weekly and monthly forecasts need to be made mandatory as this would give a more clear picture.

61

•

In my opinion the hotel can do away with banquet procedures as it would be more convenient and smart to do the same digitally.

•

PAPER LESS OFFICE!!Some of the SOP’s such as maintaining a trace file, present file, past file , future file and menu briefing register have become redundant and needs updation.

62

CONCLUSION

The corporate clients of The Gateway hotel were satisfied with the hotel in terms of food and felt that the hotels offerings was worth the money they spent. However some of them felt that the ambience needed improvement. The customers were also satisfied with the quality of the food provided by the hotel

The analysis also revealed that the customers were not very price conscious but were on the lookout for value for money. The corporate clients mainly looked out for convenience a good brand name. They were also interested in the prospect of having a wider spread of menu..

During the course of the research not much deviation from the SOP’s were observed which is supported by the fact the customers were happy with the quality of service provided by the hotel .How ever

most of the clients still were not

comfortable accepting the gateway as standalone brand they preferred to associate it to the Taj . The gateway being a start-up brand should focus on building itself as brand. The other hotels that the customers frequented for their banquets were The Leele Palace , Royal Orchid and The Taj Residency.

Through the implementation of the suggestions made through the analysis and observations of this project, I believe that corporate clients of The gateway Hotel Residency Road can be increased in terms of banqueting and also deliver a better experience 63

ANNEXTURE

64

QUESTIONNAIRE

THE GATEWAY HOTEL Sir/Madam, This is a general study on customer perception of banquet facilities in hotels. I seek only your general views about banquet facilities. I would like to thank you for your 65

co-operation and information that you have shared with me

1. How often do you use The Gateway Hotel?

•

Always

•

Frequently

•

Occasionally

•

Never

2. When was the last time you used The Gateway services and do you recall your experience? ………………………………………………………………………………… ………………………………………………………………………………… ………………………………………………………………………………… ………………

3. Does a The Gateway Hotels banquet service provide you with complete and accurate information in good time?

•

Yes

•

No

4. What is your source of information about banqueting facilities? •

Word of mouth

•

Advertisements

•

Sales calling 66

•

Internet

6. Please Grade the following parameters, which drives or influences you to use a banquet facility of a particular brand? ( 1- Least importance , 7- Most important ) 1. Economy 2. Customer service 3. Convenience 4. Décor and ambience 5. Quality of food 6. Value 7. Good delivery 8. Recognized brand name 9. High quality 10. Ease of access 11. Easy/fast service 12. Good sales representative

7. Please tell us how The Gateway Hotels banquet services would rate on the following attributes ( 1- Least importance , 7- Most important ) 1. Quality 2. Expensive 3. A brand I can trust 4. Good value 5. Good ambience

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7. Which other Hotel services have you used / are using? •

The Leela Palace

•

Royal Orchid

•

Capitol

•

Artria

•

Chancery Pavilion

•

Ista

•

St Marks

•

Others

Company Information Name Person in authority

Phone number

I sincerely thank you for sparing your valuable time and parting very useful information which will help me a great deal in my research project Truly yours, Ann Mary Joseph ( 1st year MBA , Christ University ) 68

BIBLIOGRAPHY

www.tajhotels.com

www.thegatewayhotels.com

www.knightfrank.com

www.indiamart.com

The Gateway newsletter

Business and management chronicle

Understanding and managing customer perception – Dagmar Recklies

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