The word 'chai' basically means tea, however the chai growing in popularity here in Australia is 'masala chai', which is a spiced tea that is very popular in India - they drink it more obsessively than American's drink coffee.
For some reason, the packets I've bought have told you to make it with hot water... and drink it like black tea. If you're drinking chai with water, that could be a reason you don't like it. Masala Chai is a sweet drink and is meant to be made up with hot milk (I take it with soy) and honey. It's main ingredients are cinanomon, cardamon, nutmeg.... and sometimes vanilla and chocolate - generally things that go well with creamy milk, not water.
If it's a cold late night, I could recommend nothing better than a decaf chai made up with hot soy milk with honey mixed through. Mmm mmm, it's like drinking a cake.