The management of India-based Taj Hotels Resorts and Palaces says it had planned and hoped for a stronger first year of operation at the new 5-star Taj Cape Town.
  "However, we are not too concerned, because these are overall market conditions. Forward booking from October and November are looking good. We are confident that (the hotel's) performance will improve," says Mumbai-based Senior Vp Sales & Marketing, Ajoy Misra. 
  He acknowledges the hotel - along with the rest of the hotel sector in Cape Town - didn't perform as well as expected during the recent soccer World Cup. A current post-World Cup slow-down in business coinciding with the traditional low season and an over-supply of hotel rooms is resulting in a soft market that has seen some 5-star hotels dramatically dropping their rates to attract business. 
  This, Misra says, is not a market strategy shared by Taj Hotels. "Pricing follows demand and supply. We'd like to hold on to our price line rather than discount, even if it means the hotel will be empty, because it is a high-quality product. If you discount too much over a long period, it affects your brand positioning."
  He says the Taj Cape Town's is banking on its location in the historical central business district and its superior service levels to be its key differentiators.
 "This will hold us in good stead. We are confident that we are the preferred choice for corporate travellers," he says. 
  Management of Taj Hotels Resort and Palaces, including Ratan Tata, Chairman of holding company Tata Sons, celebrated the official inauguration of the Taj Cape Town at a red-carpet event on August 28, attended by 35 international media representatives.