PRATEEK KAUSHIK

INDIAN INSTITUTE OF FINANCE

GREATER NOIDA
prateekskaushik@indiatimes.com
 DESTINATION INDIA
 Service sector contributes about 55% to GDP
 Services Sector provides employment to 23% of the
total workforce
 “Hotel & Tourism” contributes to about 6% of total
FDI in service sector
 India is poised to emerge as the 2nd fastest
growing (8.8%) tourism economy in
the world over 2005-14 according to
the World Travel & Tourism
 India is now recognized as a year round
destination
 According to World Tourism
Organization estimates, India will
lead in South Asia with 8.9 million
arrivals by 2020
 'Visit India 2009' offering various
incentives to foreign tourists and
tourism industry. Open to tourists
visiting the country during the period
April 2009 - March 2010.
 India to host Commonwealth Games 2010



 INDIAN HOSPITALITY
 India is expected to see an influx of 10 Million
international tourists by 2010, up from just
5 Million in 2007
 The world's leading travel and tourism
journal, "Conde Nast Traveller",
ranked India as the numero uno travel
destination in the world.
 India's Taj Mahal continues to figure in
the seven wonders of the world.
 Leela Palace Kempinski, Bangalore rated
as the favourite business hotel in the
world & Udai vilas, Udaipur as the
best leisure property in the world, in a
Readers' Choice Awards by Conde
Nast Traveller.
 The domestic hospitality sector is expected to
see investments of over $11 billion with 40
international brands making their presence in
the country in the next two years
 28.71 % growth in Hotel & Restaurant Industry
from 05 to 07
 100% FDI is permitted in Hotels and Tourism,
through the automatic route
 Five Year tax holiday for UNESCO world
heritage site hotels for 2,3 & 4 star hotels
 Shortage of 150,000 hotel rooms nationwide
 INVESTMENT TREND -
TOURISM
40000
35000
30000
25000
20000
15000
10000
5000
0
Dec-- Dec-- Dec-- Dec-- Dec-- Dec--
97 99 01 03 05 07
INDIAN TOURISM – FIGURES 08
 No. of foreign tourists arrivals – 5.37 Mn
 annual growth rate _ 5.6 %
 No. of domestic tourists _ 562.92
Mn
 annual growth rate _ 6.9 %
 FOREX earnings from tourism _ US$
11.75 Bn
 annual growth rate _ 10 %
SN APSH OT
 INDIAN TOURISM DEVELOPMENT CORPORATION
 INDIAN TOURISM
DEVELOPMENT CORPORATION
ü ITDC came into existence in October 1966 and
has been the prime mover in the progressive
development, promotion and expansion of
tourism in the country.
ü ITDC is running hotels, restaurants, provides
transportation facilities for tourists. ITDC is
also engaged in production, distribution and
sale of tourist publicity literature and provides
entertainment and duty free shopping.
ü ITDC has committed itself to improve the state
of Indian tourism industry overall and to
facilitate the comfort an leisure of travelers,
all year round.

ITDC - CORPORATE ORGANISATION CHART


PARVEZ DEWAN
CHAIRMAN & MD

P P SINGH RAJIV MAKIN B L MEENA

DIRECTOR FINANCE DIRECTOR C&M CHIEF VIGIL O

N BACHKETI KULDEEP VERMA S K MAITRA V K JAIN

V.P (ENG) V.P (MKTG & HRD) V.P (LEGAL HR ADMN)CO. SECERATRY
 

 DIRECTOR FINANCE  DIRECTOR ( C&M )

 

ü P K AGARWAL ü M S GUPTA
 V.P BILLS & CREDIT  V.P(HOTLS OUT DEL)
ü A K BHATNAGAR ü I MAJUMDAR
 G M (IT)  V.P(ASHOK INT TRD)
ü A K JAIN ü N K BALAL
 G M (A/C’S &  V.P(ASHOK CREATIV)
FINANCE) ü S SIBBAL
 V.P(HOTELS)
 OBJECTIVES
 To construct, take over and manage existing
hotels and market hotels, Beach Resorts,
Travellers' Lodges/Restaurants
 To provide transport, entertainment, shopping
and conventional services
 To produce and distribute tourist publicity
material
 To render consultancy-cum-managerial services
 To carry on the business as Full-Fledged Money
Changers
 To provide innovating, dependable and value for
money solutions to the needs of tourism
development and engineering industry
 ITDC’S PRODUCT MIX
ü HOTEL BUSINESS
ü CATERING BUSINESS
ü DUTY FREE STORES
ü TRAVEL SOLUTIONS
ü ADVERTISING SOLUTIONS
ü ENGINEERING CONSULTANCY & INNOVATIONS
ü EDUCATIONAL INSTITUTES & TRAINING CELLS
ü SOUND AND LIGHT SHOWS



 ASHOK GROUP OFHOTELS
ü A network of eight Ashok Group of Hotels,
 six Joint Venture Hotels,
 2 Restaurants (including one
Airport Restaurant)


ü ITDC is also managing a hotel at Bharatpur and

a restaurant at Kosi on behalf of the
Department of Tourism.
ü Managing catering services at Western Court,
Vigyan Bhawan, Hyderabad House and
National Media Press Centre at Shastri
Bhawan, New Delhi.

 Hotel Ashok , Delhi
 In the yr 1955 Pt Jawaharlal Nehru decided to hold a
UNESCO meeting of 1956 in India, but India didn't
have a hotel so ashok was built at a cost of Rs. 3
crore, constructed in 15 months. Rose pink kota
stone walls, mogul style arches, natraj suites,
kashmiri suites and presidential suites. 
 Lalitha palace, Mysore

On a low hill, just outside the royal city of Mysore,



stand a shimmering white palace - a splendid

Italianate palazzo, double-columned and domed
built by the erstwhile Maharaja of Mysore to host his
most important guest, the Viceroy of India.
 Hotel Patliputra Ashok, Patna

Unique low-tariff day-rooms especially designed



for those making a brief stop-over in this capital

city of Bihar. The hotel is a good base for those
on a Buddhist pilgrimage to Rajgir, Gaya,
Bodhgaya and Vaishali.
 Lake view Ashok, Bhopal
The new four-storeyed Hotel Lake View Ashok,


situated atop Shamla Hills, overlooks the main

lake. With its extensive landscaped area &
unique architectural design, it stands with two
floors above and two floors below the lobby
level.
 ASHOKA INTERNATIONAL
TRADE DIVISION

ü ITDC offers products only from reputed Cos. and

that too at cheapest prices
ü 38 Duty free shops till 2006 across India
ü Now operating 2 stores. Goa & Coimbatore
ü ITDC aiming to recapture its lost ground by
getting into a JV with a potential retail player

 WHAT DO THE DUTY FREE
SHOPS OFFER ?
ü LIQUOR – Premium scotch, Regular scotch,
Cognac, Malts, Sparklin water, Gin, Rum,
Vodka, Beer and IMFL
ü Chocolates, confectioneries & teas
ü Perfumes and cosmetics
ü Cigarettes
ü Fashion and other acessories
ü Indian products – Teas & handicrafts
 ASHOKA TOURS AND
TRAVELS
 Ashok Travels & Tours (ATT), the in-house travel
agency of ITDC, is one of the largest travel and
tour operators in India providing a host of
unparalleled travel-related services and attractive
packages. ATT is an IATA approved agency
 SPECTRUM OF SERVICES BY
ATT
ü Meet and Greet Services
ü Airline Ticketing/ Travel Documentation
ü Airport Facilitation
ü Limousine/Coach Rentals
ü City Sightseeing/ Overland Coach Tours
ü Hotel Reservation
ü Destination Representation Services
ü India Inbound/Ground Handling

ü ACCESS Conference and Exhibition Management
ü Tourist Train Packages
ü NRI/ Youth Packages
ü Lakshadweep Cruises
ü Money Changer
ü Souvenir Shop
ü Ashok Tourist Service Station
ü Royal Weddings

 ASHOK CREATIVES
 Provides as an complete tourism communication
agent
 Right from the planning stage to its execution
and the evaluation of the end results


ü Annual publicity plans

ü Budget proposals
ü Designing publicity material
ü Advertising
ü Production of films, audio visuals and sound
& light shows
 ü Setting up of exhibitions from designing to
fabrication on turnkey basis
ü Public Relations, including media relations
ü Print production of tourist literature
ü Sales promotions, including organization
of cultural and food festivals and
participation in trade events in India and
abroad.
ü Monitoring the impact of these efforts in
terms of actual sales and increase in
tourism business.



 Ashok consultancy &
engineering services
ü Preparation of Techno-Economic Feasibility
Reports


 Market surveys
 Analysis of the marketing fields
 Identification of potential market segments
Determination of the product profile
 Preparation of preliminary cost estimates and
financial projections.
 ü Engineering Technical Services
ü
 Architectural interior designing
 Engineering consultancy services in the
field of civil, structure, plumbing, air-
conditioning and mechanical disciplines.
 Designing of industrial kitchens, including
preparation of layouts and kitchen
equipment.
 


 ü Management Consultancy and Advisory
Services


 Assistance in project management,

recruitment of personnel, imparting in-house
on-the-job-training of hotel staff.
 Group-marketing services through its
network of Ashok Reservation and Marketing
Services
 Cost-benefit analysis and budgetary support
 Operation of hotels, business centres,
convention halls, banqueting, etc.
 Preparation of Master Plans for development
of tourism.

  Consultancy for Adventure Tourism


 Unique consultancy services to develop

camping tourism and adventure tourism.


 The corporation has already run

successfully tourist camps at Narwar,
Jaisalmer, Bir, Diu, Andamans and Coorg.
 ASHOK INSTITUTE OF
HOSPITALITY & TOURISM
MANAGEMENT
 Set up in N Delhi in 1971 to take care of in-house
training needs and also to provide a 4 year
bachelor’s degree course in hospitality
management
 During 2002-2003, after the disinvestment of 18
ITDC Hotels, the Centre was declared a
‘Strategic Business Unit‘
 In 2003, the Centre was upgraded to ISO 9001 -
2000 Certification

 In 2003-2004, the Centre was converted as a
full-fledged Institute: “ Ashok Institute of
Hospitality & Tourism Mgt” (AIH&TM) taking
care of the following:


ü Management Training Schemes

ü Degree/ Trade Diploma Courses
ü Air Hostess, Travel & Hospitality
Management Course
ü Hotel Trade Apprenticeship Training
ü Industrial Training related to Hospitality
Industry
ü Executive & Non-Executive Development
Programmes
ü On-the-job Training to Trainees/ Students
ü Culinary Courses

 ITDC - COMPETITORS
 Radisson • The Grand
 Hyatt • Bristol
 Hilton • Marriott
 Sheraton • Kempinski
 Shangrila • Nikko
 Taj Group
• Clarks
 Park Group of Hotels
 Oberoi • Banyan Tree
 Crown Plaza • Lemon Tree
 Intercontinental • Fortune Global
 Claridges 

 
 COMPANY FINANCIALS

ü Authorized capital - Rs 75 crores

ü Paid up capital as on 31.3.2005 - Rs 67.52
crores.  
ü 89.9748% of the paid up equity capital of the
Corporation is held in the name of President of
India.



FUTURE GROW TH
D RIV ERS
 INDIAN TOURISM DEVELOPMENT CORPORATION
 GROWTH OF ITDC
 Huge growth potential of Indian tourism
industry in coming years
 ITDC’s strongly backed by the Govt. of
India and can cash in the advantages
significantly
 Prime location of ITDC’s hotel properties
 Revised foray into Duty free stores
 Strengthening of service industry in India

 ITDC would bring in 35 new hotels under
Ashok brand by next year.
 ITDC is planning to make small pvt. Hotel
companies & real estate players, its
franchisee partners
 Tapping the tourists conveyance segment
 ITDC plans to run more buses between
top tourist destinations across the
country.
 ITDC has still not forayed in international
waters and is looking to take over some
properties abroad to strengthen its hold
in industry.
 ITDC is revamping its properties ahead of
commonwealth games.
 Ashok hotel, Samrat hotel, Hotel janpath
Delhi are playing hosts to the VIP’s for
the commonwealth games 2010.
 ITDC can lease out shops and stores to
international brands in its hotels which
hasn’t been done so far.
 ITDC’s JVs with retailers to open duty free
shops at airports & seaports
QUEST ? IONS
SOME FOOD FOR THOUGHT
 Is ITDC exploiting the unambiguous status
that it enjoys as a public sector entity ?
 From 38 duty free stores to 2 stores ..
Main reasons ?
 Movements in the stock prices of the
company?
 Why no attempts have been made to
overhaul the organisation structure?
 When competitors are earning healthy
revenues, why is ITDC making losses ?
 Today, internet media is a very important
option to gather information. Why is
ITDC’S website so incomplete ?
TH AN K YOU