The Webster’s dictionary defines leisure as "time free from work or duties", but that’s not quite the way the leisure division at the Taj Group of Hotels interprets the word — and with good reason. Tourism is being heralded as the ‘next big thing’ for the Indian economy and the Taj, specifically its leisure division, is poised to help turn that projection into reality. In the circumstances, taking it easy is hardly an option.

The Taj’s leisure division caters, as do most major luxury hotel chains, to two distinct customer segments: the foreign tourist in the winter months and the domestic traveller in summer, traditionally considered the non-peak season. With the foreign visitor going missing in the aftermath of the September 11 attacks on the United States, the Taj was hard pressed to beat the blues that engulfed the hotel and tourism industry in 2001. That it did, and the manner of its doing, is a minor marvel.

The industry was being forced to cope with diminishing foreign tourist traffic due to the recession when September 11 pushed matters to rock bottom. Inundated with cancellations in the prime winter season, the country’s hotels needed to come up with innovative and aggressive strategies to counter the dire state of affairs. The Taj did precisely that, turning the threat of bad tidings into an opportunity to expand its business. And it was going native that did the trick.

"The Taj was perhaps positioned better than others [to respond to the crisis]," says Ajoy Misra, the group’s senior vice president, sales and marketing. "Foreseeing the impending economic slowdown, we had already begun to react, in mid-2001, with a whole lot of innovative measures. When September 11 happened we went into overdrive with our promotions and niche programmes to stimulate the domestic market, and recover some of the revenue lost due to the fall in foreign visitors."

By concentrating on the domestic tourist more than it had ever done before, the Taj’s leisure division came out significantly ahead of the competition. The division’s offers were as tempting as they were novel: the ‘three nights for two’ package, the ‘best of Sri Lanka’ vacation, ‘romantic holidays’, the ‘singles programme’ and even a ‘bare bones’ bargain-basement deal.

The offers aside, it was the decision to focus on the domestic traveller that worked for the Taj. It helps that the mindset of the local tourist has been changing over the years. There’s a new generation of Indian travellers out there: young, financially well-off and, unlike their parents, interested in taking many small holidays in a year rather than the one big vacation.

According to Jamshed Daboo, the chief operating officer of Taj’s leisure hotels, India’s domestic tourism market is huge and under tapped. "Instead of treating them as an alternate to the foreign tourists during summer, we decided to treat them as a separate market with distinct needs," he says. "Indians were urged or induced to take more short holidays through our uniquely priced packages."

To make the inducements work, the Taj had to convince the Indian tourist that its properties were, despite the luxury tag attached to it, affordable. "We had to retain the exclusivity of the Taj while making it sound affordable," adds Mr Daboo. "And we did this not through discounts but by giving more value for the same amount."

The strategy paid off in spades in the months following September 11. The two-for-three offer (stay two nights and get the third night free) was successfully tried out in Goa before being extended to all of the Taj’s leisure hotels in India. The Delhi habit of travelling in groups to nearby destinations on long weekends inspired the second-room-free offer.

"These offerings changed the attitude of our domestic travellers," says Sandhya Kunjoor, the general manager (marketing) of the leisure division. "They could actually think of staying at a luxury hotel like the Taj. We pulled in many first timers who are now loyal customers." The figures back up Ms Kunjoor’s words. Pre-September 11, the domestic market grew by around 20 per cent for the Taj. Post-September 11, in the October to December stretch, it grew an incredible 100 per cent over the same period the previous year.

Best received was the Sri Lanka promotion, a four-night holiday for two at the Taj Samudra in Colombo and the Taj Exotica in Bentota. Priced at just Rs 24,500 (hotel, airfare and taxes included), this scheme — part of an initiative by the Sri Lanka government to bring in tourists — was seized by the Taj, which boosted it with a huge marketing blitz aimed at the Indian traveller.

"The response was fantastic," says Mr Misra. "We are the only hotel chain that has a city hotel and a beach hotel there, and we registered the highest number of tourists coming from India to Sri Lanka for any single hotel."

The Taj has also pulled out all stops on the marketing front. This has meant alliances with credit card companies, cell-phone operators, airlines and, of course, its valued customers. "The business downturn resulted in cuts in our advertising budget, but we turned it around by focusing on direct marketing and public relations," says Mr Misra.

One area that got plenty of attention was the ‘Inner Circle’, a 33,000-strong club of members created by the Taj from among its customers. The group worked hard to retain existing members and went out aggressively to enrol more people through various incentives. The alliances with credit card companies, airlines and others were another bonus, and international tourists were targeted through tie-ups with Virgin Atlantic and Emirates.

So what does the future hold? The Taj is looking at making the Indian tourism industry pie bigger, since this will automatically increase revenues. Because of the way the competition is structured, the fight in the domestic sector is not for market share but for revenue. Market share is an important factor in the cities, where there are other hotels in the same segment, but in other places the focus is on increasing the flow of people and, consequently, revenues.

"Our marketing strategy revolves around offering the finest and most unique leisure experience," says Mr Daboo. "Within the umbrella brand of Taj holidays, there is a cascade of experiences. Each hotel is different, and each offers a variety of activities."

The focus on niche programmes will continue. Ms Kunjoor, who successfully tapped an emerging audience of single people with the ‘singles offer’ last year, is looking at more such programmes. These are different from your regular holiday packages, so get ready for offers aimed at senior citizens, ‘survivors’ (couples who have been married 10 years or more), and children.

In April this year, the Taj launched a loyalty programme for kids called the ‘inner circle junior league. "Children are extremely savvy and well informed, and they are active participants in major household buying decisions, not to mention holiday plans," says Ms Kunjoor. "Unlike in earlier days, when they just went along with their parents, today’s kids express their choices very strongly."

Activity managers at key Taj leisure hotels have planned activities that combine education and entertainment, such as theatre workshops, art-of-living exercises, treks and camps. "A high percentage of our Indian customers travel with their kids," says Mr Daboo, "and our theory is that if the children are happily occupied then their parents can spend more time enjoying themselves."

Mr Daboo is also excited about the various other attractions on the Taj menu: the new spas at the Taj Malabar, Kochi, and the Taj Exotica, Goa; the air-conditioned houseboat for the Kerala backwater cruise; and Epicure, the recently launched ‘dining loyalty’ programme for Inner Circle members.

Individuals aside, the Taj is also laying emphasis on the leisure conference circuit. "It contributes about 40 per cent to our domestic business and is, therefore, an important focus area for us," says Mr Daboo. "We have established ourselves in this segment and we are able to bring in a ‘wow factor’ that appeals to companies." Pirate-theme parties and a desert experience at night seem an ideal way to end a day of business presentations and strategy overdose.

The Taj group is optimistic about taking its business to a higher plane in the months ahead. Given that it has emerged unscathed from what has been a difficult period for the hotel and tourism industry, that is an eminently achievable objective. One thing’s for sure, though — the pace at which that happens will be far from leisurely.