Taj Mahal Palace - An Introduction

1. Pricing of Services | The Taj Mahal Palace

2. Presented By
Maneet Kumar Arti Kumari
Mani Shankar Sonkushre Debarati Sen Gupta
Man Mohan Anand Monalisa Ghosh

3. Introduction – Hotel Taj Mahal Palace
 The Indian Hotels Company (IHC) is the
parent company of Taj Hotels Resorts
and Palaces.
 It was founded by Jamshed Ji N. Tata on
December16, 1903.
 Currently the Taj Hotels Resorts and
Palaces comprises 57 hotels at 40
locations across India
 Additional 18 hotels are also being
operated around the globe.
 During fiscal year 2006, the total number
of hotels owned or managed by the
Company was 75

4. Services at Taj Mahal Palace
• Wireless Internet Access
• Color Copier
• In-house Video-Conferencing
Business Services • Laptop Computers on Hire
• Translation / Interpretation Services
• Secretarial Services
• 24-hour in-Room Dining
• Baby Sitting
Leisure and Other • Car Hire Service
Services • Currency Exchange
• House Doctor
• Yacht

5. Reference Prices
It is a price point in memory for a good or services and generally consists of
price last paid , the price frequently paid or the average of all prices customer
have paid for similar offering.
It differs from actual price due to :
• Service Variability.
• Providers are unable to estimate the price.
• Individual customer needs vary.
• Collection of price is overwhelming.
• Prices are not visible

6. Nonmonetary Costs Considered in Pricing
• Time Cost
• Search Cost
• Convenience Cost
• Psychological Cost

7. Is Price an Indicator of Service Quality?

8. Approaches to Pricing of Services
Cost Based
Demand Competition
Based Based

9. Cost Based
Fixed Cost
Variable cost
All Real asset Cost In Room Amenities
Depreciation Cleaning and House keeping
Cost of Operation Distribution Cost
Cost of labour Travel Agent Commission Cost
Cost of Sales and marketing Special Application e.g. Spa

10. Competition Based
Competitive Pricing is the discipline that strategically and tactically defines
the price offered in comparison to the market. Competitors of Taj are Marriot
group ,The Oberoi group ,Grand Hyatt group, ITC group , The Lalit Hotel group,
Leela group.
Category Taj Oberoi Leela
Standard Room Rs. 13,500 Rs. 13,299 Rs. 12,978
Luxury Room Rs. 21,278 Rs. 21,675 Rs. 20,287

11. Top 10 Hotels in Terms of Business
 Taj Mahal Palace & Tower, Mumbai
 Leela Palace, Bangalore
 Trident Hilton, Gurgaon
 Oberoi Udaivilas, Udaipur
 Leela Kempinski, Mumbai
 Rambagh Palace Hotel, Jaipur
 The Four Seasons, Mumbai
 Imperial Hotel, New Delhi
 Taj Coromandel, Chennai
 Sheraton Maurya, New Delhi
Source - http://www.theindiastreet.com/2007/08/top-ten-10-business-hotels-in-
india.html

12. Demand Based Pricing
Demand Based pricing also known as Dynamic pricing is all about
tailoring their pricing according the current supply and demand
You expect to pay more for a hotel when a city is full of conventioneers
and to pay less at a resort during the off season.
Demand changes constantly based on economic conditions and other
external factors. They offer wide ranges of products and services that
customers may value or devalue according to whim and fashion.

13. Price Elasticity

14. Perceived Value
Low Price
All that I Everything
get for all Value I want in a
that I give service
Quality I
get for the
price I pay

15. Perceived Values (Contd.)
All I get for all
that I give
Quality I get for • Price Framing
the Price I pay • Price Bundling
Everything I want • Value Pricing • Complementary
in a service • Market Pricing
Value is Low Price • Prestige Pricing Segmentation • Result- Based
• Discounting • Skimming Pricing Pricing
• Odd Pricing Pricing
• Synchro-Pricing
• Penetrating
Pricing

16. Thank You