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(A COMPARATIVE STUDY OF MAURYA SHERATON & PRIDE HOTELS)
SUBMITTED TO:- Ms. ANURUPA SINGH
SUBMITTED BY:-CRM GP-6 NANDITA NEGI NIDHI ANAND NIDHI RANI RANJANA PRIYA SEEMA KALKHANDA SUMEDHA KUMARI.
HOSPITALITY INDUSTRY – AN OVERVIEW
Hospitality is all about offering warmth to someone who looks for help at a strange or unfriendly place. It refers to the process of receiving and entertaining a guest with goodwill. Hospitality in the commercial context refers to the activity of hotels, restaurants, catering, inn, resorts or clubs who make a vocation of treating tourists. Helped With unique efforts by government and all other stakeholders, including hotel owners, resort managers, tour and travel operators and employees who work in the sector, Indian hospitality industry has gained a level of acceptance world over. It has yet to go miles for recognition as a world leader of hospitality. Many take Indian hospitality service not for its quality of service but India being a cheap destination for leisure tourism. With unlimited tourism and untapped business prospects, in the coming years Indian hospitality is seeing green pastures of growth. Availability of qualified human resources and untapped geographical resources give great prospects to the hospitality industry. The number of tourists coming to India is growing year after year. Likewise, internal tourism is another area with great potentials. The hospitality industry is a 3.5 trillion dollar service sector within the global economy. It is an umbrella term for a broad variety of service industries including, but not limited to, hotels , food service, casinos, and tourism. The hospitality industry is very diverse and global. The industry is cyclical; dictated by the fluctuations that occur with an economy every year. Today hospitality sector is one of the fastest growing sectors in India. It is expected to grow at the rate of 8% between 2007 and 2016. Many international hotels including Sheraton, Hyatt, Radisson, Meridien, Four Seasons Regent, and Marriott International are already established in the Indian markets and are still expanding. 3
Nowadays the travel and tourism industry is also included in hospitality sector. The boom in travel and tourism has led to the further development of hospitality industry. The hospitality industry consists of companies within the food services , accommodations , recreation and entertainment sectors. The hospitality industry is a several billion dollar industry that mostly depends on the availability of leisure time and disposable income. A hospitality unit is such a restaurant, hotel or even an amusement park consists of multiple groups such as facility maintainance, direct operations(servers, housekeepers, porters,kitchen workers, bartenders,etc.) management, marketing and human resources. Usage rate is an important variable for the hospitality industry. Just as a factory owner would wish to have his or her productive asset in use as much as possible ( as opposed to having to pay fixed costs while the factory isint producing), so do restaurants, hotels and theme aprks seek to maximize the number of customers they “process”. In viewing various industries, “barriers to entry” by new comers and competitive advantages between current players are very important. Among other things , hospitality industry players find advantage in old classics(location), initial and ongoing investment support (reflected in the material upkeep of facilities and the luxuries located there in) , and particular themes adopted by the marketing arm of the organization in question ( such as a restaurant called the 51st fighter group that has a WW2 theme in music and other environmental aspects). Very important is also the characterstics of the personnel workin in direct contact with the customers. The authenticity, professionalism and actual concern for the happiness and wellbeing of the customers that is communicated by successful organizations is a clear competitive advantage. In 2003-04 the hospitality industry contributed only 2% of the GDP. However, it is projected to grow at a rate of 8.8% between 2007-16, which would place India as the second-fastest growing tourism market in the world. This year the number of tourists visiting India is estimated to have touchedthe figure of 4.4 million. With this huge figure, India is becoming the hottest tourist destination. The arrival of foreign tourists has shown a compounded annual growth of 6 per cent over the past 10 years. 4
Besides, travel and tourism is the second highest foreign exchange earner for India. Moreover, it is also estimated that the tourism sector will account for nearly 5.3 per cent of GDP and 5.4 per cent of total employment. GDP Employment Visitor Export Personal T&T Capital Investment Govt. Expenditure Outlook for 2006 :- 7.80% 1.40% 10.90% 6.90 % 8.30% 7.70% Outlook for 2007-2016 :- 6.60% 1.00% 7.80% 6.70% 7.80% 6.60% ATITHI DEVO BHAVO (guest is God)- we have all heard this phrase many times during our childhood from our parents and grand-parents. We can also find its presence in the earliest Vedas and religious epics. Hospitality is deep-rooted in our traditions and comes as an integral part of our heritage. In very simple terms, hospitality is the art of being warm to strangers and has been derived from the Latin word hospitalitem, which means "friendliness to guests". The hospitality industry covers a diverse range of establishments in the form of accommodation, food and drinks. It includes hotels, motels, restaurants, bars, ships, airlines and railways. The concept of hospitality business started when people started traveling away on business and they needed a place away from home which could cater to all their needs. Today hospitality has evolved from the basic food and accommodation industry and taken a very important position in almost all businesses. In fact, it has become a huge industry and drives economies across the globe. The scope of hospitality/ service industry today is far more than one could have ever imagined a few years back. Earlier people who graduated from a Hotel School could get employed either in Hotels, Cruises or Airlines. But service is the BUZZ word for all businesses today. Be it the Retail Sector, Banking Industry, BPO, Telecom world, Real Estate or any other sector having direct customer contact, a person with hospitality background has an edge above the rest, because of their sheer capability of understanding the needs of a customer better and handling difficult customers/ situations efficiently. Hotel industry depends largely upon the foreign tourist arrivals further classified into business travellers (around 65% of the total foreign tourists) and leisure travellers. The following figures show that business as well as the leisure travellers (both domestic and international) formed major clientele for hotels in 2004.Over the last two years, the hotel industry has seen higher growth rates due to 5
greater number of tourist arrivals. emphasis on tourism by the central as well as state governments and tax rationalization initiatives to bring down the tax rates in line with the international levels. The major factors contributing to this growth include stable economic and political conditions. 6 . higher occupancy rate (being around 75% in FY'06) and significant increase in average room rate (ARR). infrastructure development. booming service industry. FDI inflow.
A combination of all these factors could result in a strong emergence of budget hotels. ARR depends on location. ➢ The average room rate (ARR) and occupancy rate (OC) are the two most critical factors that determine profitability. quality of facilities and services offered. with Delhi and Mumbai being on top. which could potentially lower the cost of travel and related cost. The occupancy rate depends on other seasonal factors. a number of multinationals have strengthened their presence. Players like Four Seasons are also likely to enter the Indian market in the near future. ➢ In the hotel sector. 7 . Approximately 4.Top players of the industry The top players in hospitality sector include the following: ✔ ITC Hotels ✔ Indian Hotels Company Ltd. ➢ India is an ideal destination for tourists. ✔ Hotel corporation of India ✔ ITDC hotels Some of the main features of the Indian hotel industry include the following: ➢ The industry is more dependent on metropolitan cities as they account for 75% to 80% of the revenues. (The Taj Hotels Resorts & Palaces) ✔ Oberoi Hotels (East India Hotels) ✔ Hotel Leela Venture ✔ Asian Hotels Ltd. Indian hotel chains are also expanding internationally. brand image. star rating.4 million tourists visit India every year. Moreover. Thus the growth prospects are very high.
forts. what needs to be focussed on is the fact that opportunities are not missed. A lowpricing policy is their only selling point. Heritage Hotels. However. Thus. These are considered to be very expensive. These are characterized by special seasonal offers and good services. This segment accounts for about 19 % of the industry. etc. castles.Classification of Hospitality industry 5 Star and 5 Star Deluxe. These account for about 30% of the industry. the only direction left for the sector points upwards.both inbound and outbound. These are mainly situated in the business districts of metro cities and cater to business travelers and foreign tourists. hunting lodges. 8 . which presently include the large gaps in rooms supply as compared to demand. CONTRIBUTION TO INDIAN ECONOMY The Indian hospitality industry is going great guns presently. Budget Hotels: Budget hotels cater mainly to domestic travelers who favor reasonably priced accommodations with limited luxury. Unclassified: These are low-priced motels spread throughout the country. with high operating margins and increase in the number of travellers visiting India . These are characterized by less capital expenditure and greater affordability and include running hotels in palaces.
will be nothing less than perfection." he explains. The limited service hotels will require a complete shift in the perception of customer service. It is believed that if the country is able to sustain its economic growth specially in the service sector. the hospitality and tourism sector would be a major contributor to the Indian economy. "The same person will have different standards when he/she is on a business trip. ➢ In comparison to nations like China. South Asia is and will remain a must-visit destination and India is looking more and more lucrative.just 5. The driving force Being part of a real estate money management and services company. it will have a direct influence on the hotel industry. executive director of JLLM. etc." says Jain. there are various driving factors for growth opportunities. India's growth potential is boundless. Accordingly. versus an escape with his partner versus a leisure trip with the family.4 per cent says Sudeep Jain. Nevertheless. Guests will require higher levels of service in the full-service segments. which will warrant greater training requirements for hotel staff. they will be less forgiving of service deficiencies. major contribution as destinations will be from the growing tier I and II cities with a special emphasis on business hotels across categories as well as the prime leisure destinations like Goa. This is directly related to the incoming foreign investments. besides contributing to an insignificant portion of the GDP . Rajasthan. this is directly related to the travellers' travel persona. not just in 9 . the needs of the traveller." With an increase in choices available. Within the nation.000 rooms only in totality.➢ India has approximately 100. creating the aura for India as a leisure destination. ➢ "By 2020. "They will be more discerning and more value conscious. which will remain on the growth path. which is lesser than that in Las Vegas. Thailand and Malaysia where the hospitality share ranges between 12 and 15 per cent. Jain says.
Also equally important is the fact that India has now discovered the power of marketing and with campaigns like Incredible India. It is believed that there would be no stopping the growth in the industry if these measures were undertaken. 10 . it would prove very fruitful for the industry. The policies and incentives that will be provided over the next decade could further act as a catalyst to this industry. But the fact remains that half of these changes will only occur if the government begins to take some proactive measures and provide the much needed stimuli to further accelerate development. there are also the various large scale regional and global events like the upcoming Commonwealth Games." .the hotels but the economy as a whole. the process of getting approvals and licences to build and operate hotels are streamlined. "These are just external factors. together with strong infrastructure development and investment and more tax/levy incentives being provided to build hotels. For instance if land prices became more realistic. Asian Games and the recent Indian Premiere League that builds interest about the nation. Apart from these external factors there are other factors where the industry can be given a great boost.
political instability.000 rooms. reservations. The competition from neighboring countries and negative perceptions about Indian tourism product constrains the growth of tourism. 4. safety concerns and diseases also harms the tourism industry. 7. almost all the data which actually make the company work are filled in manual log books or are simply not tracked. Human resource development: Some of the services required in the tourism and hotel industries are highly personalized. etc. Shortage of skilled employees: One of the greatest challenges plaguing the hospitality industry is the unavailability of quality workforce in different skill levels.50. Though the new investment plan would add 53. The companies have to focus on customer loyalty and repeat purchases. Customer expectations: As India is emerging as a destination on the global travel map. new products and new systems. and no amount of automation can 12 . 3. Shortage of rooms: The hotel industry is facing heavy shortage of rooms.000 rooms by 2011. most of the hotel management graduates are joining other sectors like retail and aviation. expectations of customers are rising. Intense competition and image of India: The industry is witnessing heightened competition with the arrival of new players. 5. One of the reasons for this is unattractive wage packages. It is estimated that the current requirement is of 1. The hospitality industry has failed to retain good professionals. 6. 2. the shortage will still persist. Retaining quality workforce: Retention of the workforce through training and development in the hotel industry is a problem and attrition levels are too high.Challenges For Hospitality Industry 1.. Manual back-end: Though most reputed chains have IT enabled systems for property management. The image of India as a country overrun by poverty. Though there is boom in the service sector.
whether it is sales or service related. It even uses technology to streamline processes that impact customer loyalty. service delivery and quality management. especially by those in the service sector. For high quality hotel enterprises. In the future also.THE HOTEL INDUSTRY What Is Customer Relationship Management? CRM entails all aspects of interaction a company has with its customer. customer relationship management and knowledge management together will help businesses accumulate customer knowledge build up 13 . application of Customer Relationship Management (CRM) is a great opportunity to increase customer value and provides a way to systematically attract. The value of a customer relationship is well recognized by many leading companies. acquire and retain customers. one that puts the customer at the heart of the business. CRM is a business strategy.
That means a lot of choice when selecting your technology . the term CRM was first coined in the mid1990s. Using the Microsoft suite of applications. 14 . productivity and also the staff. Microsoft partners have developed a number of leading CRM solutions based on the latest generation of Microsoft technology. In CRM the detailed attention is made which is unattended and which can really reduce the cost. Although this is certainly not an exhaustive list. HISTORY OF CRM Following on from Enterprise Resource Planning or ERP (the business strategy that promised to automate the “back-office”). The last couple of years have seen the term broaden to encompass a more strategic approach and the investment of billions of dollars worldwide into CRM solutions and services has followed Customer relationship management is more than the practice of collecting guest-centric data.from web-based solutions aimed at small businesses with less than 10 employees to solutions suitable for multi-national enterprises with millions of customers. The Right Technology It is estimated that the global market for CRM services and solutions is currently worth $148 billion. it will give you a good idea of what’s out there. I have taken at look at the most widely used solutions and services and listed them in our CRM Application Guide. personal.better relationships between them and their customers enhance customer satisfaction and achieve business excellence One of the greatest strength is to attention to details. It’s the art of using historical. Knowing a traveler is an avid sports fan creates the opportunity to market tickets to a game. knowing a guest had a less-than-memorable experience in the hotel restaurant gives you a chance to win them back the next time they are in town. these were the early foundations of CRM. devices. CRM in those days referred to the software used to help businesses manage their customer relationships. and technology. From sales force automation software (SFA) that focused on customer contact management to integrated knowledge management solutions. to focus on the bif abd small little things that make the difference when it comes to comfort. Microsoft partners can provide you with CRM solutions that personalize the guest experience and help you generate more revenue. and experiential information to personalize a guest’s stay while generating incremental revenue opportunities.
Exhibition. As more and more companies become customer-centric those that fail to do so will lose competitive advantage. harnessing the potential of people to create a greater customer experience. but the philosophy of putting customers at the heart of our business is definitely a step in the right direction. Automate the sales process. Send and receive fax from the application. keep you alert of all the important activities. Schedules appointments. Cold calls.The Future CRM has already made a big impact in the world of Customer Service and will continue to do so.) Real-time basis and leverage the most successful campaigns. CRM may or may not prove to be the answer to providing excellent customer care. Increase in customer acquisition. using the technology of CRM as the enabler. Empower sales team with real-time pipeline and forecasting to direct focus to most profitable opportunities. Document management saves time in searching the required document when online with the customer. Marketing activity reports are available on-line for analysis and immediate action 15 . calls. Reduce call-handling time by providing knowledge base that incorporates powerful search capability in order to quickly locate the relevant data and solve customer problems. As technology increases to develop at a startling rate the key emphasis will be how we can fully utilize it within our business. Set reminders. TV shows etc. retention. That’s where the real value of CRM lies. loyalty and profitability. E-mails. meetings. Achieve customer satisfaction by decreasing customer response time. Key Benefits • • • • • • • • • • • • • Maintain one set of customer information and make that accessible (role based) wherever and whenever it is needed. However let's not lose sight of the fact that Customer Relationship Management is about people first and technology second. Enable to have a 360-degree view of the customer and achieve excellence. Trade shows. Enable marketing professionals to quickly measure response to marketing initiatives (Advertisement. increase in number of opportunities through constant follow-ups. Quickly identify and provide response to your most profitable customer issues and prospects.
avoiding timeconsuming and costly traditional processes involving multiple verbal or written interactions. 2003) Now. Scripts remove the guess work from determining how to respond to a customer query or complaint. This model is founded on the principle of enabling customers. (Mohan Babu. The software tools being used in the call-centers also provide forecasting of call volumes to ensure adequate call centre staffing. 2. the paper based surveys are giving way to electronic surveys. This attempt to pull together the best of both personalization and advanced technology. 2002) 1. Call-scripting: Automatic scripts generated for customer service representatives. without having to repeat research. et al. these survey forms are even personalized to specific customers or customer groups. (Lemon. 3. guiding representatives through a dialogue with the customer and thus optimizing discrete customer interactions. Responses are input into customer databases and included as part of individual customer profiles. Customer satisfaction measurement: Survey mails are the major way for companies to monitor customer satisfaction. Cyber agents are 'lifelike representatives' normally depicted on a company’s web site as a real person. These are otherwise known as "Customer Care Centre" or "Contact Centre" indicating more technological sophistication and multichannel support. performance. partners and employees to obtain information’s or conduct transactions directly over the internet. 16 . Customer Service Representatives (CSRs) could look up similar calls and resolutions while a customer was on the phone. Such tracking of customer satisfaction over time enables a company to fine tune how it communicates with its customers according to their preferences. It is given a personality and is having facial expressions and volume. convenience and efficiency. Nowadays. It can draw from the wealth of detailed information to answer basic FAQs as well as guide a customer to the appropriate screen for a definite purpose/action. without the help of a live person can resolve their problems or find out answers to their queries using the web. Call centre technologies entered the market place to effectively alleviate some of the repeat work and increase efficiencies.Some Applications of Technology in CRM Call centers: These are organizations which deal directly to the customer interactions. Cyber agents: This is a kind of an improved or modified form of the concept of selfservice. based on an individual customer's segment and/or customer profile contents. Web based self-service: The customers themselves. 4. It provides control. 5. allowing companies to handle escalating call volumes. Usually a cyber agent addresses the web visitor with his/her first name.
Web site: It is the efficient and effective use of worldwide web for providing information to the customers. CRM applications can enable effective customer relationship management. each customer relationship has value and should be managed effectively. In the case of monetary transactions. sales and service processes. Tactically. Statistically valid customer satisfaction measurement: From the very top of the organization. With the latest offerings in CRM. Drive guest-centric data down to the transaction level. The main advantage of a web site is its 24 hours accessibility. 17 . hoteliers can: Develop comprehensive guest profiles from reservation information and demonstrate to guests that the property is in touch with their needs. In hospitality. strategy and culture. The administration of the information about this past guest and the effective integration of the information into frontline guest services programs is the challenge of CRM implementation. where does CRM start? The recommended implementation of customer relationship management typically looks like. there should be a commitment to CRM including customer satisfaction. in a hassle-free manner. 2003) 6. provided that an enterprise has the right leadership. CRM requires a customer-centric business philosophy and culture to support effective marketing. through the net. Usually gathering information from the site is a simple task and is cost-effective. allowing employees and guestfacing technology to deliver greater value to the guest. In the US and in the developed countries web is extensively used. if it is a high involvement activity most of the customers prefer the offline mode mainly due to their concern over security problems in monetary transactions. CRM IN HOTEL INDUSTRY Industry Definition CRM is a business strategy to select and manage the most valuable customer relationships. by a company who had created that site. employee satisfaction and a desire to have one voice to the customer. There is opportunity for repurchase and recommendation from each past customer. (Key Note .
Corporations realize that the true values of their customers in down turn are the ones that will be equipped. It’s All about Technology – Technology certainly plays an important role in the implementation of a successful CRM project. The first thing you find when looking into the world of Customer Relationship Management is the number of different definitions in use today. effective communication. e-CRM projects are no longer viewed as stand-alone implementations but are now being increasingly pursued in context of larger business objectives and core strategic agendas. However. allowing the property to create guest-centric marketing for increased loyalty and spending. e-CRM Components in Hotel Industry • Sales functionality: Contact management profiles and history.Generate a realistic profile on the spending and stay patterns of guests. Telemarketing/Telesales functionality: call list assembly. All the technology in the world is cool. 18 • • . temporary alignment and assignment. your company will be added to the statistics of failed CRM implementations. order taking. Adequate planning. auto dialing. order entry. it is not a silver bullet that will solve all problems or open all doors. It is important to remember that all technology decisions are only relevant in a business context. i.e. integrating all aspects of business process and systems by keeping the customers as the core. but if your business processes aren’t set up to effectively utilize these resources. Implementing an effective CRM solution is not complex. account management including activities. eCRM or Web based CRM e-CRM application in hotel industry are straddling across business functions to retain. scripting. consolidate and thrive. stakeholder involvement and mistake avoidance will ensure that your initiative gets off the ground easily. capture and capitalize on customer data. sales cycle analysis. proposal generation Sales management functionality: pipeline analysis (forecasting. roll up and drill down reporting). tied over the slump and jump start. and places you squarely in the exalted ranks of successful CRM implementers.
web-based encyclopedia. e-mail single user and group • Customer service and support functionality: incident assignment. dispatching. tracking/reporting. escalation. enterprise synchronization with multiple databases/application servers E-commerce functionality: manages procurement through EDI link and web-server and includes B2B and B2C applications Service support functionality: Worker orders.• Time management functionality: calendar/scheduling. third party external information Data synchronization functionality: mobile synchronization with multiple field devices. configuration. order management/promising. Executive information functionality: extensive and easy-to-use reporting ERP integration functionality: legacy systems. warranty/contract management Marketing functionality: campaign management. problem management/resolution. real time information transfer to field personnel via mobile technologies • • • • • • 19 . opportunity management. the web. market segmentation. lead generations/enhancement/tracking.
Listen to your Customers Customer survey on restaurant or an extensive questionnaire of guests. Star wood and many independent hotels and resorts.com) Guest Ware is installed in over seven hundred hotels and resorts worldwide.Implement Process Improvement Industry surveys show that guests are less likely to return if they experience a problem during their stay. Hyatt Hotels. Leading hotel management companies use Guest Ware to improve guest satisfaction. the GuestWare Comment Card Tracking system assists to manage customer feedback. Experts agree targeted marketing to existing customers is the best way to increase marketing ROI. and increase revenues. Comment Card Tracking .The CRM Approach Now more than ever. so to lower operating costs and increase guest satisfaction at the same time. Most industry consultants estimate the cost of finding a new customer is between 5 and 10 times the cost of retaining an existing customer. build guest loyalty.Customer Relationship Management Software for the Hotel Industry Guest Ware is a unique Customer Relationship Management System (CRMS) designed specifically for the lodging industry to provide personalized guest recognition and exceptional service quality. Improvement Analysis . Guest Ware will improve productivity in the follow-up process and provide valuable management reports to maximize the benefits of your surveys. lower operating costs. including Marriott International.guestware. Kimpton Hotel Group. it is critical for hospitality sales and marketing professionals to maximize their return on investment (ROI) in marketing. Guest Ware’s Improvement Analysis tools provides with the information to eliminate recurring problems and keep guests coming back. Marketing Solution . (www. 20 .
2002): 21 . Developing special promotions and employing direct mail to promote these campaigns is another major use of database marketing. brands and management companies. Generate a realistic profile on the spending and stay patterns of guests. Agra had completed a review of an upcoming weekend.Guest ware Enterprise Solution – For Effective Means Intended for hotel chains. The software helps streamline service delivery and uses existing e-mail systems or a modem to communicate with most two-way messaging devices. Communications Server . Reservation systems. The sales team then enveloped special promotion packing to encourage bookings for weekends. allowing the property to create guest-centric marketing for increased loyalty and spending. Loyalty programs. With the latest offerings in CRM. The hotel has 35. Using the Database: Product and service improvement is just one result of tapping into a database. Enterprise Guest Ware enhances property management systems (PMS) and central reservations systems (CRS). It allows hotel companies to implement enterprise CRM while leapfrogging existing hotel technology investments. This review revealed that bookings to date were some what below forecast and that a special promotion may be done in order to speed up the business. They regard this management of their database as an asset because it enables a superior customer understanding. For example: A sales team of Mughal Sheraton.Field selling. Hoteliers can: • • • Develop comprehensive guest profiles from reservation information and demonstrate to guests/customers that the property is in touch with their needs Drive guest-centric data down to the transaction level. It allows staff to receive and close requests and maintenance issues from a pager or cell phone.000 members in its database. ITC Maurya Sheraton . They searched their welcome break holiday package database and scratched it to identify and segment the customers who tend to (Sheth. Web & Call centers are the major sources of database development. allowing employees and guest-facing technology to deliver greater value to the guest/customers.Two-way Messaging The Guest Ware Communication Server integrates two-way messaging (or other types of text-based messaging) with Guest Ware’s Rapid Response. the Enterprise Guest Ware database maintains a single view of the customer essentials for CRM.
From the point of view of the internal customers also. Therefore. The systems analysis tools allow users to profile their most profitable customers. (2006) points out that Database mining is the process to distill the target customers groups out of the massive data files typically found in hospitality operations.• Book on long weekends • Book on a short term basis • Respond to promotional campaigns • The direct mailing was used as a principal means to reach out to these customers. Activities like these are today referred to as database marketing. and so forth). It is aggressive selling to the potential customers who have particular needs and wants and building a match or “fit” the needs of the noted. personal information such as spouse’s name and hobbies are 22 . certain amenity preferences. It enables users to easily integrate company/ property management reservations and point of sale systems. only a few but almost some customers were contacted by direct mailing which resulted in sizeable sale during the otherwise lean weekend at Mughal Sheraton Agra. goes beyond simple short term awards and involves all the elements of a firm’s and services to encourage a personal relationship with each customer. The biggest advantage of database mining is that it helps to focus the efforts and available resources into one direction which is most profitable and out-base mining helps to eliminate the nonprofitable customers and hence reduces the costs and enhances the profits. Relationship marketing depends on the goodwill generated by frequentbuying programs as well as on the information provided from database marketing efforts. In addition to knowing the purchase habits of members (room selection. The profits enhanced are not only in monetary terms but also in terms of customer loyalty and long term retention. out of the database of 35.” Form the initial personal contact and then serve as the foundation for nurturing this brief encounter into a friendly and accommodation relationship by focusing on personal guest information.000 members. do it internally. a new profession is emerging in the hospitality industry of getting and keeping a customer. Database Mining Starkov. Relationship marketing is “knowing the customer and using that information to bond with them. Relationship Marketing Rama (2005) suggests that frequent customer programs and database marketing efforts contribute to a more comprehensive approach to satisfying customers called relationship marketing. In other words. Companies in hospitality that are adopting the database marketing approach to enhance sales are seeing increased customer satisfaction which further results in increased revenues. develop & assess the performance of targeted marketing campaigns. automatically extracting operating data from legacy databases for use in the marketing database. these are systematic ways to distill through a database of a multitude of databases to get the information for which one is reaching. analyze their buying habits. Some hotels outsource these tasks to companies that specialize in this field or at best.
On a personal level we all know what our faults are but we get defensive way they’re re pointed out. In case of hotels customer/guest is more likely to switch if the provided service is not satisfactory to their expectation. But reacting to criticism is difficult. What is important to one customer however. and a young female executive considers a security a priority. 1999) The astonishing news is that those people who do complaint and have their problem taken care of. We tend to respond in a guarded and defensive way. hotels can target promotions to capitalize on known characteristics and individualize the presentation. Hotels should break down their services and ask customers what is important to them. It is important that hotels involve their guests and stay in touch with customer perceptions of current services. especially if the criticism is well founded. This approach can field very valuable insight about changing customer preferences. Likewise. Consider the varying demand placed on a hotel: An airline stewardess may find the 24 hour room-service extremely valuable. problems in our organization and imperfections in its products and services. Complaint Handling Few companies.added to a member database The company uses this information to tailor special events and products to small segments of the membership. companies tend to let themselves off the hook too easily: “We never could have satisfied that customer. World-Class companies see complaints as opportunities to improve. to impress customers and to turn complaining customers into loyal ones. a retired couple may need dietary menu options. a tour wholesaler may favor low prices. Priority Marketing Priority Marketing focuses on what’s important to the customer. Who wants to hear what they’re doing wrong. may not be as important to another. We’re also aware of weaknesses in our job performance. 23 .” (Schneider and Bowen. It is estimated that 90 percent of dissatisfied customers whose problems were not solved will never do business with the retailers that sold them the product nor will they again buy the product that caused the problem. tend to be more loyal to the company than the people who were satisfied in the first place. Identifying groups of customers who have similar preferences or even similar tastes (such as sharing common perceptions of quality or states). which may avoid squarely confronting the real problem. use or pay attention to complaints.
.). 25 .VALUE CHAIN OF CUSTOMER INTERACTION IN HOTEL INDUSTRY AND POSSIBLE BENEFITS OF e-crm Customer Research Consumer Buying behavior Payment patterns Consumer Profiles Pre-sale Interaction Comparison of Hotel products Customizatio n of products Clarification of FACs and specific queries Sale Transactio n Order placing Payment Order processing Payment Processing Routine Postsale Interaction Routine information sharing (new products/servi ces. CRM – Emerging concepts. Tata McGraw Hill. advisory services etc.) Investment specific information sharing Short-term payments/ redemptions Speed Transparency Non-routine Post-sale interaction On time/ End time settlement Claims processing in times Accuracy Comprehensiveness Decision Making Customizatio n Scrutiny Speed Accuracy Delivery Accuracy Fairness Speed Transparency Source : Raghunath S. Joseph Shields (2001. "Introduction of e-CRM in Indian Hotel Industry.
These touch points are considered important as there is direct interaction with the customer and they provide valuable input to the hotel. They aim at managing each “Moment Of Truth” that is experienced by the customer.CRM OF ITC MAURYA SHERATON “Customer Relationship Management is a process of managing customer relations in an organized way”. The input provided by the customer has to be captured in such a way that it becomes information and can be used by various 26 . There are various contact points where the hotel comes in direct contact with the customer which are known as ‘Touch points’ in the CRM language.
Identification of all Customer Relationship management ‘vehicles’ 2. They also provide Leads and referrals. Field 27 . Integration of these Customer Relationship management ‘vehicles’ DATA CAPTURE VEHICLES Maurya Sheraton has identified 5 such vehicles (from marketing point of view) which are also the touch points for the hotel in the process of managing its Customer Relationship. Field Selling includes Prospecting which means searching and seeking for new customers.processes within the hotel. CRM is a vast subject where the concept of one to one marketing is supported by Database Marketing. These vehicles are:○ ○ ○ ○ ○ Field selling Loyalty Programs Distribution Points Web Call Centers Field Selling When a sales group or a marketing executive of the hotel makes a sales call to a corporate. Leads are potential customers with whom no contact has yet been made and learning of potential customers from current customers is called Referral. then it is called Field Selling. The concept of Customer Relationship Management has a broader focus of not only serving the customer but also creating the customer and retaining him for measurable and substantial returns. ITC Maurya Sheraton has been following an unstructured form of CRM with a narrow focus of serving the customer well and in a most efficient manner. Current Accounts are one of the best sources to uncover new business that is within these current accounts. CRM process at ITC Maurya Sheraton has been divided in 2 steps:1. Customer Service is now more fashionably called Customer Relationship Management. as they harbor many sources of untapped business potential. This can be done with the help of technology and the aim is that whenever there is a customer interface with any of those processes they are able to use that information in servicing the guest in a most efficient manner.
These accounts having the loyalty points are unique to every guest. this link. There are certain points attached to the number of rupees spent by the guest. Every time a guest checks in the hotel at his every touch point or interface with the hotel. he would spend on the supporting services like laundry. Therefore higher the amount of the bill. they essentially “gross self” the other services which would be used & paid by the guest. the person who uses the hotel is a consumer (guest) and the person who helps him make this choice is the customer (link). Since the representative of the hotel meets the customer personally.selling is considered the most important vehicle for the CRM function as the initiative is on the part of the hotel to contact the prospective guest. the higher will be the number of points attained by the guest. more loyal is the guest. These points are credited to the account of each guest with the help of technology.). and the revenue generated from these could be earned by the hotel. the executive is able to make a direct contact with the ‘link’. in most cases. the guest history also affects the loyalty points. The objective of having a loyalty programme is not only to make the guest feel rewarded for his stay but also providing a chance to the guest to reduce them at the hotel. Telephones etc. is the administration personnel who are responsible for making reservations. the hotel is the most obvious alternative for the customer to consider. instead of loss of revenue by providing free stay. Therefore. The points can be redeemed by the guest for either free stays at the hotel or free gifts as listed by the hotel or free meals depending upon the number of points accumulated. Laundry. Restaurant. The main objective of this is to maintain ‘one to one’ contact with the customer on a regular basis and also to maintain reasonable visibility so that whenever there is a requirement. he is able to strike a chord instantly and has a fair chance of representing the hotel. These programs are designed to reward the loyal guests of the hotel. The difference between the customer and consumer is apparent at this stage as. every time he spends on a service provided by the hotel (use of Room. restaurants etc. Loyalty Programs Second vehicle for CRM identified by Maurya Sheraton are the Loyalty Programs. In case he redeemed (for example) his points for a free stay. telephones. whenever after the first time that guest checks into the hotels. These are called Loyalty points. So with the help of field selling. the administration person and is able to take the feedback on a continuous basis and helps to customize the offering. the transaction is recorded at each individual point and is added to the final bill presented to the guest at the end of the stay. The Loyalty Program is called 28 . they actually gain the revenue as well as certain customers for life with the help of the loyalty. Therefore. The higher the number of points.
Therefore. Distribution Points/ Central Reservation System A customer can simply make a call at the reservation centre to make a booking with the hotel. T 29 . It sounds simple but it could get complex in case he does not receive the expected or the desired response. when a customer make calls to query about a reservation. therefore. This is seen as an important way to keep the source of business motivated towards a long term relationship. the more the number of bookings the links gives to the hotel.welcome avail which is for the consumer. the more number of points are credited to his accounts which are again redeemable at the hotel either by way of free stay or gifts. They have another loyalty programme for the link. is motivated to provide more business to the hotel. The information regarding all guest reservations is managed through computer software. Therefore. who is called welcome link. The administration personnel. Maurya Sheraton sees this distribution point as an opportunity to establish CRM as the respondents at the reservation centre could turn a prospective customer into a ‘sale’ or could let go off the opportunity to do so by not being polite enough or not giving out the information as desired by the guest. all his hotel usage history pops up in the system which gives a chance to the executive at the reservations to instantly recognize the customer and address him by his name.
it is more personalized and customized because the customer puts in his preferences when requesting a booking. This is a touch point of customer relationship because a speedy and accurate response could win you a customer. there are several avenues that one can take up to set up a web site to share information and do business with a potential customer. World Wide Web The World Wide Web is part of the internet. Though Maurya recognizes the potential of this system and is in the process of evolving a filing automated system where the reservations can be made by the customers on time and also the confirmation is received back on a real time basis. And since it is on an individual basis. It is used for both personal and business purposes. It is a computerized. In hospitality. interactive. 30 . Therefore the wheel does not get reinvented every time a standard instruction is to be followed. Therefore.his moment of truth is experienced by the customer with a feeling of recognition and feels it as good service at the first touch point itself. This leads to removal of an irritant and that ultimately leads to a satisfied customer willing to return. Presently they have an information portal which only allows the customer to request a reservation which has to be checked manually by the hotel reservations and then only the confirmations are given. But ITC Maurya’s focus is on the business side of using the web. once it is entered in to the hotel’s data base the customer does not have to repeat his preference as they are automatically suggested by the reservation form on the net. The input or instruction received from the customer at the stage is recorded in the reservation system for further reference by the hotel operations. it is considered as one of the vehicles for CRM. Since the web gives a convenience and allows the access to information at any time. multimedia system to import and/or access information world wide.
it is a world-class five star hotel. social events. ROOMS: The rooms are of three types and when we asked them about the rooms they replied as below: Suite These rooms are designed with a royal finesse. They provide finest amenities and accommodation. state-of-the-art conference hall and banquet hall to host any occasion. customer can unwind themselves lavishly. this exquisite Royal Suite is to pamper customer completely.CRM OF THE GLORIOUS GROUP OF HOTELS THE PRIDE HOTEL OVER VIEW: The Pride Hotel is one of the best luxury hotels which possesses unparallel elegance and grace. Blending sophisticated urban flamboyance with a relaxed attitude. 31 . Whether customer is on a social visit or on a holiday. or indulgent escape from the chaos of the city. exotic cuisine at restaurant with bar. hotel is ideal for an enthused business trip. Have a look at the suite and customer would not like to go for an alternative”.
Here is what customer can look forward. a live band would be playing your favorite numbers. Thai or Continental. Work. A spacious contemporary suite to rejuvenate customer senses along with giving them the best of business amenities. Bandhani Savor the essence of royalty at Bandhani. The display kitchen is a visual treat to see the exotic specialties created by the experts themselves. Whether you are looking for Indian. it has to be here. Having essential business aids. Deluxe Room Have frequent business visits & desiring the solace of your home? Check out this Deluxe Room.the suite can surmount all your needs graciously. this room is expediently designed to make your business trip full of leisure TARIFF ROOM CATEGORY INR DELUXE SUPERIOR SUITES 8000 9000 12000 SINGLE US$ 220 250 325 RESTAURANTS: Seasons The 24 hrs Coffee shops serve delectable cuisines from across the globe and are the perfect place for a quiet rendezvous or dining out with family and friends. Chinese. our fine dining multi-cuisine restaurant. ZING: 32 . we have it all there for you.Superior Room Traveling on business trips can be clumsy & tiresome. Relax . If it is celebrations. To add to the excitement. Culinary traditions of most exotic and exciting cuisines of the world are characterized by subtle spices and delicate flavors.
FACILITIES: Swimming pool and health club. seminars. 1) Airport transfers 2) Welcome drink on arrival 3) Fruit basket on arrival 4) Buffet breakfast 5)24 hour room service 6) Refrigerators in all rooms 7) hair-driers in all rooms 8)24 hours in house satellite TV channels 9) Direct dial STD/ISD 10) Internet connectivity in all rooms 11) Tea and Coffee maker Majority of the customer are for business purpose because there are very few places to visit in Ahmedabad so mostly people come for the business purpose. business center. weddings or parties . travel desk. Majestic. The Imperial. It is the only place where there is karaoke. 33 .It is the mocktail lounge bar. Royal. hookahs and exotic mocktails. in house laundry. Chancery Halls & Board Room offer exclusive layouts & latest gadgets to give you truly memorable conferences. And a DJ is also there to play customers favorite tracks BANQUETS: There are 6halls in all which can in all conveniently accommodate up to 1200 people for wedding receptions or from 25 to 800 people theatre style from seminars and conferences.
3) Free usage of swimming pool and 50% discount on health club 4) They will send a cake on the day of wedding anniversary or birthday if they are in the any of the cities where pride is located. 500 in the meal at Bandhani restaurant in Ahmedabad 20% discount at all the pride hotel of India for accommodation on week days and 30% discount on weekends 5) Complementary room for night stay at pride hotel for one person and 40% discount for two. 6) By paying the rack rate they will be allowed to shift or upgrade the superior category of the room 7) Free usage of swimming pool. There are in all 2000 members which are day by day increasing and front that 1100 holds gold card and 900 holds silver card IF YOU ARE A MEMBER OF THE HOTEL THAN………. These all will be provided in the form of vouchers of Rs. 1) 2) 3) 4) The member would get the discount on food if he goes with 2 more members. Complementary cake on your birthday or wedding if u celebrate in pride A reduction of Rs. 34 . 29999. 900 for meal at Bandhani restaurant in Ahmedabad 6) 40% discount at all the pride hotel of India for accommodation on week days and 50% discount on weekdays 7) Complementary room of your choice for night stay at pride for 1 person and 50% discount for 2. 1) You are entitled to special holiday at 3700 RCI affiliated resorts across the world for 2 days and 3 nights. 5) They will get a voucher of Rs. IF THE MEMBER IS A GOLD CARD HOLDER……. 49999. You will get various discounts which are as follows if u are a silver member of the hotel.MEMBERSHIP THE VALUE DIFFERENTIATION IS THROUGH MEMBERSHIP CARDS Pride hotel provide membership to all those who visit their hotel frequently or vise versa u can say that those who become the member of the hotel become its loyal customers. 20%discount in health club. There are basically 2 types of membership silver and golden and different offers are there for different types of members. 2) 50% discount on food and beverages. He becomes the gold card holder if he pays the amount of Rs.
2) Birthday and wedding anniversary wishing through calls and e-mails. 1) Pride hotel has its own small call center at satellite from where they call and invite the customer to visit their hotel. This is offer especially for the foreign loyal customers. Even though pride is far from that of the airport more foreign visitors are there in pride as compare to the comfort inn and the main reason is its location which is in the middle of the city an other important reason is its quality relation they have kept with their customers. 8) And also at the time of Navratri they give the passes to the foreign customers. MINORITIES ARE NOT NEGLECTED LOOK HOW???????? 1) Information regarding the customers are taken at the time of checkout because they think that in the beginning customer must be tired. They can enter the room after showing the card. 7) Also they have a children’s room for the Childers of the member person. 10) CUSTOMIZED SERVICE: One person of the staff is always there on every floor and the moment they need the person is there in front of the customer’s door. 3) Free airport facilities are provided specially to the loyal customers at their prior report 4) Greet the customer with name 5) There are 2 rooms which are kept specially for the card holders if they come without any prior intimation 6) If the customer every time prefer the same room and his visits are also at certain period of time then at that time they call them and ask for their visit and keep that room block for them. A receptionist is given training of 40 days while 15 days to the house keeping person 35 .REAL RELATIONS THROUGH…. 2) all the staff is given training before joining the hotel. Some time they also give tickets of movies also 9) They also have a travel agent who is available 12 hours every day of year to provide knowledge regarding the places of the city and take them there if necessary.
Software THE SOFTWARES WHICH ARE USED BY THE HOTELS ARE: 36 .
Customer Profiling An Overview of the Software used in Hotel Industry for Customer Relationship Management: 37 .
RESEARCH 38 .
of which 12 were females and 18 were males. From the study. OCCUPATION 39 . The other objectives would be: • To study the programs and practices of CRM employed by the leading hotels in India. leading to enhanced profits and brand image in the minds of the customers. • To study the measures to build a better relationship between the customer/guest and the hospitality unit. Findings A survey was conducted with a sample size of 30. The age of all the candidates was between 20-35.Objectives of the Study The primary objective would be: • To study “Customer Relationship Management in the Hotel Industry”. one can infer the present scenario of the practices and programs being followed by the leading players in this sector and the steps being followed by them to enhance customer retention. customer satisfaction and in turn. the statistics of their occupation and annual income is as follows. Scope of the Study This study will provide an insight into the hotel industry and the steps being taken by them to improve their relationship with their guests/customers.
Your support in filling this Questionnaire will be highly appreciated and the data or information obtained herewith will be used for academics purpose only. 40 . Thank you for your support in our research. Gurgaon are conducting a survey on the “Customer Profiling “Customer Profiling process for Hotel Industry in NCR”. We the students of IILM.ANNUAL INCOME QUESTIONNAIRE Dear Sir/Madam.
000 □ 6.Personal Detail:Name:-_____________________________ Age:.□ Business □ House wife Annual Income (in Rs.00.000 □ 2.00. 00.______________________________ State:.000 □ Above 10.):- □ Below 2.______________________________ Country:-___________________________ (1) In which hotel of NCR do you prefer to stay? (a) Hotel ITC (b) Crowne Plaza (c) Park Plaza (d) Bristol Hotel (e) Others__________________________ (2) What are the facilities provided by the hotel? (a) Choice of Room (b) Choice of Food (c) Transportation Facility (d) Online Registration (e) Conference Room (f) All of them 3) How frequently you visit this hotel in a year? (a) Less than 3 time 41 .□ 20 – 35 □ 50 -65 Gender: □ □ 36-50 □ Above 65 Male □ Female □ □ Professional Other_______________ Occupation: .000 City:. 00. 00.000 -10.000 to 5.00.
(b) 3 to 5 times (c) More than 5 times 4) The purpose of visiting NCR? a) Business b) Holidays c) Professional commitment 5) What are the reasons that lead you to stay in particular hotel? (Rank it from 1 to 7 where 1 is for least relevant reason and 7 is for more relevant reason) a. Employee’s Behavior __ d. Ambience __ e. Convenience __ 6) How they recognized you as a loyal customer? ____________________________________________________________________ ____________________________________________________________________ __ 7) What are the extra services you get in your preferred hotel? __________________________________________________________________ ____________________________________________________________________ ____ 8) Do you get any kind of discount? (a) Yes (b) No (9) How satisfied are you by the overall hospitality of your preferred hotel? a) Highly satisfied b) Satisfactory 42 . Quality of service __ c. Tariff __ f. On time service _ b. Facility __ g.
(10) Being a loyal customer have you been given preference over the other customers? a) Yes b) No 43 .
ANALYSIS Q1) PREFERENCE OF HOTEL: Q2) FACILITIES PROVIDED BY THE HOTEL: Q3) FREQUENCY OF VISITING A PARTICULAR HOTEL: Q4) PURPOSE OF VISITING NCR: CHOICE OF ROOM CHOICE OF FOOD CONFERENCE ROOM ONLINE REGISTRATIO N TRANSPORTATION Q5) REASON TO STAY IN A PARTICULAR HOTEL: BUSINESS HOLIDAYS PROFESSIONAL COMMITTMENT Q6) HOW THEY RECOGNIZED YOU AS A LOYAL CUSTOMER? 44 .
To this question most of the people mentioned that it is through their guest records and recognition software that they identify a regular guest and depending upon the number of times of your visit and potential of a future revisit they tag you as a loyal customer. Q7) WHAT ARE THE EXTRA SERVICES YOU GET IN YOUR PREFERRED HOTEL? • • • • • • • • • • Free safe deposit lockers Full-equipped Business Centre Knight Rider on-line service Arrangements made for golf and tennis Beauty shop 24-hour fax/ telex facilities Secretarial service Currency Exchange Doctor on call High speed internet facility. Q8) POSSIBILTY OF GETTING DISCOUNT: Q9) OVERALL SATISFACTION FROM THE HOSPITALITY OFFERED: Q10) PREFERENCE TO LOYAL CUSTOMERS OVER OTHER CUSTOMERS: 45 .
All in all facilities provided by HOTEL PRIDE (GLORIOUS GROUP) is highly satisfactory as compared to MAURYA SHERATON (ITC GROUP) 46 . • Customers visiting NCR prefer this hotel for a perfect Holiday stay. • Frequency of customers visiting this hotel is also higher. • The preference is given to loyal customer over other customers. • Customers prefer it for the choice of food over others. • The extra services such as 24*7 high speed broadband service and provided by the Pride Hotel are also superior to others. • The quality of service provided by The Pride Hotel is also highly satisfactory.CONCLUSION From the data collected we have reached a conclusion which states that Hotel Pride (GLORIOUS GROUP) has a better CRM system over the Hotel Maurya Sheraton( ITC GROUP).
1. Customer Relationship Management is one of the key tools to fight this cut throat competition and stand out as a superior brand. As the product is becoming generic in nature. 2. 47 . On the basis of the study. room comment cards. the employees.e.. Maintaining suggestion boxes at every touch point/point of interaction with the customers. club surveys. say by employing Mystery Customers. Taking feedback not only from external customers but also the internal customers i. toll free guest assistance centers can help in getting customer feedback and to improve in the areas where there is a lag as suggested by the feedback. Proper check on the hotel staff’s and processes’ efficiency by the management.Recommendations In this era of globalization where ‘Customer is the King’. I would like to recommend some suggestions which could be implemented profitably by the industry. the hotel industry can no longer rely on the traditional marketing strategies to retain the customers. customer expectations are going up which is making the situation more and more competitive. Surveys: Conducting monthly guest/customer surveys. 3. 4.
Employing effective CRM software to improve guest satisfaction. 8. amenities preferred. 7. and increase revenues. Having Guest History programs. Employing an efficient system of complaints handling as complaints are the opportunities to improve.keeping a databank of customer profiles along with such details as room preferences. 48 . 10. Keeping regular track of the sales data for further leads and follow-up 6. Giving recognition awards to attract old customers. wallet services. special requests. Giving the customers a more personalized and empathic services as building good rapport with the customers goes along way in having satisfied and return customers. to impress the customers and to turn complaining customers into loyal ones. lower operating costs. build guest loyalty.5. 9. meal preferences. sending birthday cards to the loyal guests and even their spouses and giving them a hassle-free check-in procedure-like sending them pick-up and drop facilities.
com www. Pearson Education www.html www.customermarketing.REFERNCES Jay Curry (2006) .itchotels.researchandmarkets.com www.guestware.com/columnists/shareef/5249.com Rama Mohana Rao.expresscomputeronline.com www.gloriousgroup.com www.asp?cat_id=53&report_id=3929 www2.com www. crmguru.com/reportinfo.crmdaily.shtml.com/perl/story/22438.com/CRM.asp www. (2005). Services Marketing.html www. from www.tajhotels.Key to CRM Success for Small and Medium-size Enterprises.visiglobe.ascenantone.com/20030623/newsan1.com 49 .roanoke. K. www.
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