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The Hotel Corporation of India Story

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Case Details:

Case Code : BSTR015
Case Length : 7 Pages
Period : 1975-2001
Organization : Hotel Corporation of India
Pub Date : 2002
Teaching Note : Available
Countries : India
Industry : Hospitality

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Background Note

HCI was set up in July 1971 as a wholly owned subsidiary of AI, following the latter's decision to enter the hotel business.

AI wanted to offer its passengers better hotels, both at the international airports and at other places of tourist interest.

Thus, HCI's main objectives were identified as carrying on the business of hotels, motels and flight kitchens as well as other activities to assist AI's business. In April 1973, HCI was handed over the assets of two flight kitchen units1 at the Mumbai (Chefair Flight Catering Bombay - CFCB) and Delhi (Chefair Flight Catering Delhi - CFCD) airports. These units, originally owned by AI, were set up in 1969 and 1970, respectively, for catering to AI's requirements.

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Later, they began offering services to Indian Airlines (IA) and some international airlines like Air France, Lufthansa, Singapore Airlines and Aeroflot.

The first hotel of the company, the Centaur Hotel at Bombay Airport (CHBA), was commissioned in May 1975. The hotel was well received by the airlines, travel agents and business travelers.

The Centaur Hotel at Delhi Airport (CHDA) was commissioned in November 1982 and soon became popular with airline transit passengers and airlines crew. The Centaur Lake View Hotel at Srinagar (CLVH) was commissioned in December 1983. The last addition to the Centaur Hotel Chain was the Centaur Hotel at Juhu Beach, Mumbai, (CHJB) which was commissioned in October 1986. Situated on the Juhu Beach, the hotel became extremely popular for its food and theme parties...

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1] Catering units offering services to airlines.


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