A Project Study Report

“Customer Relationship Management & Its application in Hotel Industry

Submitted in Partial fulfillment for the Award of degree of

Master of Business Administration

Submitted By:

Submitted To:

International School Of Informatics And Management


Today, businesses are facing an aggressive competition and they have to make Efforts to survive in a competitive and uncertain market place. People have realized that managing Customer relationships is a very important factor for their success. Customer relationship management (CRM) is a strategy that can help them to build long-lasting relationships with their customers and increase their profits through the right management system. Hotel industry in a primarily a service sector emphasis in given on the role played by relationship marketing. CRM in the hospitality industry has been impeded by a number of factors. These include the persistently fragmented nature of the industry, the disparate, proprietary and relatively immature nature of IT systems, and the additional complexity associated with managing a perishable product that is sold through a variety of distribution channels. However, more rapid progress is being made due in part to the continued consolidation between hospitality companies and hospitality IT vendors.


I acknowledge the sincere assistance provided to me from several rather unexpected quarters during the course of execution of this study. It would be a mammoth task to place on record my gratitude to each and every one of them but a whole hearted attempt would be made nevertheless, least I be branded ungrateful. Where the emotions are involved words cease to work. I am deeply indebt to for her encouragement, affections, valuable advice and guidance that helped me to complete this project successfully.


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Introduction………………………………………. Example of CRM Implementation……………….29-32 • ITC Welcomgroup Hotel • The Oberoi group of Hotel • Taj group of Hotel 4. Research Methodology ……………………………33-37 • Research Design • Steps in the Research Process • Limitation of study 5.58-62 5 .. 7.6-9 • • • • What is CRM Research Questions Scope of Study Objectives of study 2.TABLE OF CONTENTS 1. Findings/ Research……………………………….10-28 • Advantages of CRM • ROI of CRM • E-CRM components in hotel industry 3.. CRM – An Overview………………………….54-57 Conclusion and Recommendation………………. INDUSTRY/ COMPANY perspective…………………..38-53 • ITC group of Hotel • The TAJ group of Hotel • The OBEROI group of Hotel 6.

financial services.1.1 What is Customer Relationship Management (CRM)? CRM entails all aspects of interaction a company has with its customer. he is a part of it. to effectiveness. the impetus for CRM is shifting from an emphasis on efficiency. Today. People have realized that managing Customer relationships is a very important factor for their success. Introduction 1. i. This explosive growth of CRM reflects the intersection of genuine market need and enabling technology.. he is doing us a favour by giving us an opportunity to serve him (MAHATMA GANDHI) It has grown mainstream and is being implemented in a wide range of companies and organizations such as manufacturing. He is not an interruption to our work but the purpose of it. He is not an outsider. in this growth period.e. doing things better for increased revenue with a high "return on relationships (ROR)". medical services and products. doing more things faster with less cost.. whether it is sales or service related. It even uses technology to streamline processes that impact customer loyalty. businesses are facing an aggressive competition and they have to make Efforts to survive in a competitive and uncertain market place. i. 6 . We are not doing him a favour. Customer relationship management (CRM) is a strategy that can help them to build long-lasting relationships with their customers and increase their profits through the right management system. And. transportation and distribution. “Customer is the most important person for a business.e. consumer package goods and others. service delivery and quality management.

dependable and convenient encounter. Personalization and customization doesn’t mean maintaining only customer loyalty. CRM can especially boost superior service at a lower cost. But eventually. and the customers want to do business in 'their' way. In addition to this it helps to serve customer's unspoken needs. The task of getting and retaining customers requires even greater skill and effort. in order to leverage the data in a variety of business applications. not to be forced to do it in the enterprise's way. the companies use personalized service and customized products which make some customers feel special and others simply appreciate good behavior. CRM technologies focus on managing all interactions that an organization has with its customers. being customer focused means to have a consistent. It humanizes their purchase or service request or complaint. The business needs to ensure that the service works as the customer actually wants it to. 7 .OBJECTIVE OF CRM The objective of CRM (customer relationship management) is to recognize and treat each and every customer as an individual. Getting closer to customers and effectively responding to their needs is a great way to boost their loyalty and encourage deeper business relationship. Most companies consider them customer-focused and believe that in being so they are servicing the interaction with customers in every customer. but also driving purchases higher. Where a profitable relationship already exists. It is very essential for any business to know that how to differentiate customer treatment according to an individual preferences. For differentiate customer treatment.

Generally speaking, the five needs of customers are:(a) Service (b) Price (c) Quality (d) Action and (e) Appreciation. (By Raghunath & Shields 2001)

Apart from these, there would be needs, which even the customers have not taken care of, but which, if would have satisfied will lead to higher customer loyalty. CRM, if practiced properly might lead to cross-selling and up selling of products and services. Cross-selling means selling the right product to the right customer. One other relevant and important attribute of CRM is its ability to help in the ego-mending of customers. This, if practiced efficiently, soothes the customer's negative emotions he could have, due to the non-attainment of his expectations regarding the product or the service. The adoption of CRM in the hospitality industry has been impeded by a number of factors. These include the persistently fragmented nature of the industry, the disparate, proprietary and relatively immature nature of IT systems, and the additional complexity associated with managing a perishable product that is sold through a variety of distribution channels. However, more rapid progress is being made due in part to the continued consolidation between hospitality companies and hospitality IT vendors.


1.2 Research Questions
a) How will CRM help to retain customers in hotel industry? b) What are the new marketing approaches in hotel industry? c) How CRM can be effectively administered?

1.3 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. From the study, 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, leading to enhanced profits and brand image in the minds of the customers.

1.4 Objectives of the Study
The primary objective would be: • • • To study “Customer Relationship Management in the Hotel Industry” To study the programs and practices of CRM employed by the leading hotels in India. To study the measures to build a better relationship between the customer/guest and the hospitality unit.

CHAPTER 2 2.1 About Customer Relationship Management - CRM
The generally accepted purpose of Customer Relationship Management (CRM) is to enable organizations to better serve its customers through the introduction of reliable processes and procedures for interacting with those customers. In today's competitive business environment, a successful CRM strategy cannot be implemented by only installing and integrating a software package designed to support CRM processes. A holistic approach to CRM is vital for an effective and efficient CRM policy. This approach includes training of employees, a modification of business processes based on customers' needs and an adoption of relevant IT-systems (including soft- and maybe hardware) and/or usage of IT-Services that enable the organization or company to follow its CRM strategy. CRM-Services can even redundant the acquisition of additional hardware or CRM software-licenses. The term CRM is used to describe either the software or the whole business strategy oriented on customer needs. The second one is the description which is correct. The main misconception of CRM is that it is only software, instead of whole business strategy. Major areas of CRM focus on service automated processes, personal information gathering and processing, and self-service. It attempts to integrate and automate the various customer serving processes within a company.


industry trends. implements business intelligence alike technology Cooperational . web. fax.) 2.There are three parts of application architecture of CRM: 1. and demographics. Operational part of CRM typically involves three general areas of business. The customer service part automates some service requests. Operational . The marketing information part provides information about the business environment. and also keeping all information on a customer in one place.ensures the contact with customers (phone. complaints. The sales force management part automates some of the company's sales and sales force management functions. 11 . Many call centers use CRM software to store all of their customer's details. and information requests. sales. product returns. and macro environmental variables. and also encourage new customers CRM solutions can also be used to allow customers to perform their own service via a variety of communication channels. and also sales staff performance. service) Analytical .automation to the basic business processes (marketing. They are (according to Gartner Group) an Enterprise marketing automation (EMA). When a customer calls." This is because they deal directly with the customer. a company aims to make cost savings. the system can be used to retrieve and store information relevant to the customer. It keeps track of customer preferences. By serving the customer quickly and efficiently. buying habits. email.support to analyse customer behaviour. including competitors.. Integrated CRM software is often also known as "front office solutions.. Sales force automation (SFA) and a Customer service and support (CSS). 3.

bill boards etc. 1999). most of the companies concentrated mainly on higher productivity through higher levels of efficiency of employees as well as machines. without much thinking.. transport and information technology has made the business enterprises realize that the competition is just a mouse click away. Such a situation arises mainly because of the inability or reluctance of the management to accept the importance of customers and serving them to keep them satisfied and happy. This significant part is left to the technology alone (Schneider and Bowen. i. (Anton. Another interesting thing is that even those who have implemented highly technological installations for their CRM initiatives. new environment of business unveiled the importance of keeping the existing customers loyal so that they would not switch over to the competition. These changed. which otherwise may result in low sales and hence low profits. mass mailings. This led to the increased awareness of companies about the importance of serving the customer needs with a higher level of quality and in a way which is convenient and beneficial to both the companies and the customers. quite often can be seen to have forgotten the basis of this modern concept. 2002) Some decades ago. as was expected. unhappy customer tells eight other potential customers about his negative experience. et al.2. "One widely accepted marketing rule-of-thumb claims that the average. cheaper and more efficient systems of communication." (Lemon. But the sudden growth and expansion of services sector proved that these would not convert into profits. Moreover. the emergence of faster. 2005) 12 .e.2 Importance of Customers There exists a wide-spread mistaken notion that CRM is some kind of a manifestation of technology only. making profitable relationships with their customers. cost-reduction tactics and on attracting more customers through the classic marketing tactics such as TV advertisements.

b) Successful technology integration: The technology which has been used across different departments of an enterprise should be integrated to give a comprehensive and successful CRM application. This same rule is applicable to the technology used in the CRM also.com) 13 .2.3 Four Parameters to Measure CRM Success a) CRM's ability to impact corporate strategy: Without a corporate strategy. The failures of some CRM installations in some of the industries have given way to think about the Return on Investment (RoI) of CRM. there should be a co-ordinate effort among the different partners to the enterprise. 2. d) Assimilation of CRM related technologies: Those who are responsible for the CRM activities should thoroughly be conversant with the technological aspects of that particular technique.ascenantone. (www. misuse or under utilization of these technologies may take place resulting in partial or full failure of those activities. no CRM initiative can be made fully successful.4 Return on Investment (RoI) of CRM Rigorous financial scrutiny of all Information Technology IT) investments have now become the rule. giving emphasis to a customer-centric approach. Otherwise. c) Enhanced strategic partnerships: For a good CRM implementation.

2. 2004) Factors to be considered while calculating RoI:1. but also. the results far outweigh the challenges. enterprises need to build organizational intelligence. Several big organizations have failed to know what the customer really wants and several others.Now there are specific analytical tools which will help organizations to measure their return on investment of CRM. When the goal of cheaper. Savings in the form of reduced use of time to manage customers and customer transactions. Savings in the form of time needed to assemble and consolidate sales forecasts. 2003) To calculate RoI. 1983) CRM is an integration of contact management. e-commerce. after knowing. Additional revenue in terms of increased customer loyalty. (Mohan Babu. partner and channel management etc." (Dyche. customer service and support. According to George Varghese. Additional revenue in terms of increased lead generation. could not really translate these requirements into deliverance. 4. "Operational CRM can improve efficiency but it is difficult to calculate RoI. faster. sales due to increased 14 . 3. marketing automation. Good CRM is all about replicating the same experience with the use of technology. better service is considered. a set of skills and competencies that will enable a company to better leverage and profit from each and every customer relationships. (Berry. At the same time we are able to see small shop keepers doing CRM extremely well. sales automation. SAS India. customer intelligence and supplier intelligence to get a unified 360 degree view of customers. Head (Marketing). suppliers and organizations. It is not just a software solution.

2. Among these three main functions. analyzing them and making relationships with the prospective customers based on the analyzed information. dynamic scripting capabilities for the customer service representatives or executives as well as the potential to record customer responses in a shared storehouse. (Chaudhuri & Shainesh 2001) 15 . tracking and resolution.5 CRM and Technology In CRM the important functions are collecting customer data. The Components of Operational CRM:1. the first and the last ones are making direct contact with customers. while analyzing data is not. Customer Service and Support (CSS): These applications basically automate the support and service functions. Call centers use operational CRM tools. They also integrate with computer telephony integration capabilities which allows automatic call routing with automatic screen pop-ups containing all customer and product information to the agent's work stations as the agents are answering or initiating calls. They also provide customizable. The operational CRM deals with those which make customer contacts or otherwise called as touch points. By using the new CRM techniques the companies are trying to provide a consistent but tailored customer experience across all contact points with the customers. including analysis and also provides workflow engines that facilitate efficient problem and inquiry escalation. Analytical CRM does the job of analyzing the accumulated data from the various touch points with the aid of business intelligence.

scheduling automatic or manual follow-up activities and receiving third-party lists for incorporation into the campaigns are all typical functions. or generation of specific cross-selling opportunities based on this behavior. Generating lists of customers to receive mailings or telemarketing calls. Calendar management.How It Functions? According to Hart et al. 3. lead distribution and tracking of sales contacts with customers and prospects are some of the capabilities offered within these solutions. (Key Note . Inbound and outbound e-mail management capabilities are also becoming popular components of the marketing automation suites. sales reporting and forecasting.2. Marketing Automation (MA): These applications provide the ability to create automated marketing campaigns and track the results. activity management. (2002) Analytical CRM involves the analysis and interpretation of large amounts of cross functional data collected from the customer activities occurred at the front-office. 2003) Analytical CRM . SEA allow for the design of sales teams based on particularly defined criteria. This data is regularly stored in a data warehouse. which is actually a storehouse of corporate data from various sources intended to facilitate business analysis. Internet personalization tools are offered here to track behavior on a web-site and allow tailoring of the contact experience. Sales Force Automation (SEA): These are tools which automate the collection and distribution of all types of sales or sales related information’s. The major types of analysis of data are the following: 1) OLAP: Online Analytical Processing is one of the most popular type of decision-support analysis. allowing the average business person 16 .

OLAP analysis requires the analyst to have a query or hypothesis in mind for clearly understanding the result. It can help a business to distill behavior from events captured from various operational systems around a company to determine patterns. The association algorithm is often applied to market-basket analysis to help business understand products which are usually being purchased together. It is commonly used to help data analysts search for information they don’t yet know to look for. The three types of data mining are(Dyche. 2) Data mining: Data mining tools identify patterns in data and deliver valuable new information’s that can increase a company's understanding of itself and its customers. The product affinity concept is the base. here. analyzing the results and submitting a detailed query in order to understand the result data. this means generating an online report. Sequence: Sequential analysis identifies combinations of o activities that occur in a particular order. 17 . More often. 2004): Prediction: The use of historical data to determine future o behaviors. Predictive modeling generates output that populates a model or structure to represent the results.to explore data online with the aim of focusing on detailed data at a lower and lower level of the data hierarchy. often involving no hypothesis. Association: Association analysis detects groups of similar items o or events. This is used to determine whether customers are doing things in a particular order.

5) Collaborative filtering: This is otherwise known as 'adaptive personalization. These data are stored either as part of company’s data warehouse or as separate click stream data store called "data web house: If examined regularly with consistent metrics. how long he stayed. Here the software makes recommendations based on the personalized/customized website of a customer. (Akhtar. Rules based personalization most often involves rules that have been hard-coded into software. These are otherwise known as "Customer Care Centre" or "Contact Centre" indicating more technological sophistication and multichannel support. 2002) 2. These tools are often more complex. For this reason it is often difficult to maintain and support. than rules-based personalization. Collaborative filtering uses the behavior of other 'like' visitors as the basis for its recommendations.6 Some Applications of Technology in CRM 1. The whole process is similar to a hidden camera recording the activities of a shopper in a store. what he did during his visit and when he returned. (Schneider and Bowen.' This gets smarter as it observes customer behaviors and applies them to new circumstances. and thus more expensive. Prashant & Pankaj. Call centre technologies entered the 18 market place to effectively alleviate some of the repeat work and .3) Click stream analysis: By analyzing the click streams of an internet user. 1999) 4) Rules based personalization analysis: These analytical tools are based on the concept of personalization. click streams reveal certain patterns of web-user behavior. Call centers: These are organizations which deal directly to the customer interactions. one can understand how the user arrived at the site.

(Lemon. Such tracking of customer satisfaction over time enables a company to fine tune how it communicates with its customers according to their preferences. This model is founded on the principle of enabling customers. performance. (Chaudhuri & Shainesh 2001) 3. 2002) 2. these survey forms are even personalized to specific customers or customer groups.increase efficiencies. It provides control. Customer Service Representatives (CSRs) could look up similar calls and resolutions while a customer was on the phone. avoiding timeconsuming and costly traditional processes involving multiple verbal or written interactions. Call-scripting: Automatic scripts generated for customer service representatives. (Mohan Babu. The software tools being adequate call centre staffing. allowing companies to handle escalating call volumes. 2003) Now. the paper based surveys are giving way to electronic surveys. Nowadays. Customer satisfaction measurement: Survey mails are the major way for companies to monitor customer satisfaction. without the help of a live person can resolve their problems or find out answers to their queries using the web. based on an individual customer's segment and/or customer profile contents. partners and employees to obtain information’s or conduct transactions directly over the internet. guiding representatives through a dialogue with the customer and thus optimizing discrete customer interactions. convenience and efficiency. without having to repeat research. 4. Responses are input into customer databases and included as part of individual customer profiles. Scripts determining how to respond remove the guess work from to a customer query or complaint. 19 . et al. used in the call-centers also provide forecasting of call volumes to ensure Web based self-service: The customers themselves.

The main advantage of a web site is its 24 hours accessibility. through the net.7 Industry Definition Abbey (1999) proposes a hotel industry in a primarily a service sector emphasis in given on the role played by relationship marketing.5. Cyber agents are 'lifelike representatives' normally depicted on a company’s web site as a real person. Cyber agents: This is a kind of an improved or modified form of the concept of self-service. Usually gathering information from the site is a simple task and is cost-effective. This attempt to pull together the best of both personalization and advanced technology. In the case of monetary transactions. in a hassle-free manner. 20 . (Key Note . In the US and in the developed countries web is extensively used. 2003) 2. by a company who had created that site. It is given a personality and is having facial expressions and volume. just look behind you at the long queue off competitors lined up and waiting for the opportunities to prove you wrong. 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. If you believe other wise. Usually a cyber agent addresses the web visitor with his/her first name. You are nothing without our customers understanding that your organization exists for no other reasons than to meet customer needs and expectations. 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. Web site: It is the efficient and effective use of worldwide web for providing information to the customers. Its imperative is to develop proactive methods for understanding what customers like and dislike. (Raghunath & Shields 2001) 6.

(Anton. Advantages of CRM Using CRM. each customer relationship has value and should be managed effectively.CRM is a business strategy to select and manage the most valuable customer relationships. There is opportunity for repurchase and recommendation from each past customer. CRM requires a customer-centric business philosophy and culture to support effective marketing. provided that an enterprise has the right leadership. et al. sales and service processes. 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. following are the type of data a CRM project includes (Lemon. a business can: Provide better customer service  Increase customer revenues  Discover new customers  Cross sell/Up Sell products more effectively  Help sales staff close deals faster  Make call centers more efficient  Simplify marketing and sales processes Generally. strategy and culture. 2005) In hospitality. CRM applications can enable effective customer relationship management. 2002):  Responses to campaigns  Shipping and fulfillment dates  Sales and purchase data 21 .

an enterprise might build a database about its customers that describes relationships in sufficient detail. remind customers of service requirements.e. i. capture and capitalize on customer data.  With CRM software tools. Account information  Web registration data  Service and support records  Demographic data  Web sales data Key Features of CRM Tools  CRM includes all business processes in sales. E-CRM or Web based CRM E-CRM application in hotel industry are straddling across business functions to retain. salespeople. people providing service to the customer can access information. and service that touch the customer. integrating all aspects of business process and systems by keeping the customers as the core. match customer needs with product plans and offerings.  The management. and so on. check payment histories. e-CRM 22 . marketing.

temporary alignment and assignment. • Telemarketing/Telesales functionality: call list assembly. scripting.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. order entry. order taking. tied over the slump and jump start. e-mail 23 . • Time management functionality: single user and group calendar/scheduling. roll up and drill down reporting). proposal generation • Sales management functionality: pipeline analysis (forecasting. consolidate and thrive. sales cycle analysis. e-CRM Components in Hotel Industry • Sales functionality: Contact management profiles and history. Corporations realize that the true values of their customers in down turn are the ones that will be equipped. auto dialing. account management including activities.

escalation. the web. opportunity market management. segmentation. tracking/reporting. 2005) 2.8 Customer Relationship Management Software for the Hotel Industry 24 . problem management/resolution. encyclopedia. configuration. dispatching. 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. order management/promising. • Executive information functionality: extensive and easy-to-use reporting • ERP integration functionality: legacy systems. warranty/contract management • Marketing functionality: web-based campaign management. lead generations/enhancement/tracking. real time information transfer to field personnel via mobile technologies (Rmana & Somayajulu.• Customer service and support functionality: incident assignment. third party external information • Data synchronization functionality: mobile synchronization with multiple field devices.

lower operating costs. Guest Ware’s Improvement Analysis tools provides with the information to eliminate recurring problems and keep guests coming back.The CRM Approach Now more than ever. Marketing Solution . 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. Star wood and many independent hotels and resorts.Implement Process Improvement Industry surveys show that guests are less likely to return if they experience a problem during their stay. and increase revenues. Experts agree targeted marketing to existing customers is the best way to increase marketing ROI.com) Guest Ware is installed in over seven hundred hotels and resorts worldwide.Listen to your Customers Customer survey on restaurant or an extensive questionnaire of guests. build guest loyalty. Kimpton Hotel Group. the GuestWare Comment Card Tracking system assists to manage customer feedback. Guest Ware will improve productivity in the follow-up process and 25 . (www. Leading hotel management companies use Guest Ware to improve guest satisfaction. Hyatt Hotels. including Marriott International. it is critical for hospitality sales and marketing professionals to maximize their return on investment (ROI) in marketing.guestware. Improvement Analysis . (Raghunath & Shields 2001) Comment Card Tracking .EXAMPLE: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.

Communications Server .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. With the latest offerings in CRM. brands and management companies.provide valuable management reports to maximize the benefits of your surveys. allowing the property to create guest-centric marketing for increased loyalty and spending. It allows hotel companies to implement enterprise CRM while leapfrogging existing hotel technology investments. 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. The software helps streamline service delivery and uses existing e-mail systems or a modem to communicate with most two-way messaging devices. Enterprise Guest Ware enhances property management systems (PMS) and central reservations systems (CRS). • Generate a realistic profile on the spending and stay patterns of guests. It allows staff to receive and close requests and maintenance issues from a pager or cell phone. allowing employees and guest-facing technology to deliver greater value to the guest/customers. Guest ware Enterprise Solution – For Effective Means Intended for hotel chains. the Enterprise Guest Ware database maintains a single view of the customer essentials for CRM. 26 .

This one-to-one relationship is the catalyst that sparks both lifetime customer loyalty and revenue increase. Gradually. through dedicated and smart planning. It’s not a “flip-the. businesses should see markedly increased profits. However. Web & Call centers are the major sources of database development.9 CRM Success Seeing CRM initiatives take hold and begin to pay off is often a waiting game. 2. 27 . Reservation systems. Loyalty programs. They regard this management of their database as an asset because it enables a superior customer understanding. The hotel has 35. as businesses get to know their customers. and a closely aligned partnership is formed.000 members in its database. as satisfied customers will continually re-visit them.switch” product that automatically spits out results or something that will take affect overnight and cause profits to skyrocket while you sleep. their customers get to know them.Field selling. The puzzle must be completed and time must play its part before true success will be seen.ITC Maurya Sheraton .

what satisfies them.In the true spirit of thinking outside of the box. The ability to get an accurate gut feeling about the marketing campaigns. through innovation and focus on business effectiveness rather than merely efficiency. And over time. customers change. manage to break the mold of traditional business thinking”. and the type of policies customers will respond to is invaluable. key players will soon see patterns emerge among customers. and what keeps them loyal. This is the essence of a successful CRM project: being able to really know what will work for your customers. The end goal of better serving customers and enabling a high percentage of customer retention cannot be met with out creative thinking and effective planning and actions. and business must be able to respond to that. new products. experts at the Gartner Group believe “the most successful organizations will be those who. Being effective is paramount. Being on the cusp of the industry and always having a hand on the pulse of the customer is the key for success. as does their behavior and needs. As the CRM initiative begins to take hold. This kind of customer 28 . will discover what a productive strategy is and what is not. The task of perfecting the relationship between business and customer is always on going and requires special dedication and innovation as the commerce markets continually change and fluctuate.

knowledge only comes from really digging in and being savvy about how you go about understanding the people that you hope will continuously call on the services and products of your business. The ROI in this case would be compelling indeed. 29 .

this group underwent a drastic change when their occurred a paradigm make over in the entire Hospitality Industry. “In the year 1984. WelcomHotels – Five Star first class hospitality for business and leisure travelers. They were the first ones to adopt this exclusive logo which has not been thought or taken by anyone to match this – The “Namaste-Nobody gives you India like we do”. We feel that the hotels in the city fulfill the leisure needs well. 30 . havelis.Chapter # 3 Industry/Company Perspectives ITC WELCOMGROUP HOTELS ITC hotels stepped into the hospitality industry in 1975 and are one of the most upcoming hotel chains in its class. namely: • • • • ITC Hotels – Super deluxe and premium hotels in strategic business location. forts. It was at this point when there focus shifted from catering the Leisure Travelers to Business Clientele in order to provide a feel of a working environment while traveling all over the country. which is a part of Starwood hotels and resorts and is a well-known global hospitality chain. They started their first hotel in Chennai and now they have 66 hotels across more than 50 destinations in India. ITC collaborated with Sheraton hotels. Fortune Hotels and Resorts – Full service hospitality at mid-level prices for business travelers and leisure travelers. but there are very few to think out of the box”. Welcome Heritage – Palaces. It is represented by four distinctive brands serving the needs of the travelers. resorts and homes that bring alive the history and romance of India’s heritage.

The parent Hotel-The Taj Mahal Hotel.Mansheti Nuser wanji Tata. Oberoi hotels today operate the largest chain of luxury hotels with 30 hotels in 9 countries and are rapidly expanding into new destinations around the world. Mr. New Delhi was India's first modern. in 1894 formed the Indian Hotels company and built the exquisitely beautiful Taj Mahal Hotel in Bombay. The founder of the house of Tatas. The Oberoi Chain currently runs 18 hotels in India and 12 hotels abroad. CONCEPTION The Oberoi. As the founder chairman Rai Bahadur Mohan Singh Oberoi started off with a single hotel in Shimla in 1934. TAJ GROUP OF HOTELS Taj group of hotels is the largest chain in India.THE OBEROI GROUP OF HOTEL The Oberoi Group of Hotel has played a leading role in the growth of the hotel industry in India. luxury hotel. when it was opened in 1965. A member of the internationally prestigious leading hotels of the world.with several Hotels abroad also. The Oberoi group has the distinction of having listed as members of the leading hotels of the world. the group has diversified business interests relating to the hospitality industry. today the Oberoi has undergone a multimillion dollar redesign and offers every comfort and convenience to the international corporate travelers. Bombay is rated among the 10 best hotels in the world. 31 .

The Taj group also have eight Business Hotels spread over different corners of the country. one finds congenial atmosphere of true business hotel coupled with local handicrafts and a special emphasis on cuisine. On request in-room fax. It is ideally located. as “a resplendent debut”. All Luxury Hotels now have renovated rooms. There are six restaurants and a bar in the hotel to offer its guests. Mumbai. 300 crore upgradation programme. Taj Palace hotel offers convenience and gentle ambience. Taj Palace has 421 rooms and suites. Laptop computer. background information on major Indian industries. The hotel combines attractive functionality with style in a peaceful symbiosis. Today Taj has 50 Hotels of which 48 are operational. There are six Luxury Hotels which offer a whole of elegant living and upto the minute business amenities. Each Deluxe Business floor room is a modern business centre. 10 minutes from down town situated amidst 6 acres of landscaped greenery. When The Taj Mahal Hotel. Only one hotel group knows India and South Asia so well. So too is their exclusive club floor rooms. and does so with such consummate style. the Maldives.Taj has been operating in the USA. everything that one wishes is available round the clock Taj Palace hotel including the finest cuisine in town. Email facility. In Taj tradition. Oman and Srilanka and the Taj Empire continues to expand further. To name the few are Orient Express. plus on line accessibility to world business information is available. There are 20 Taj Leisure Hotels out of which 16 are in India and 4 are abroad. 38 destinations and is the largest Hotel chain in the country. the event was described by The Times. Within quiet reason. London. 32 . Taj Palace is Luxury Hotel under Taj Group of Hotels. The Tea House of the August Moon. Isfahan. Handi and My Kind of Place ( Discotheque). taking residence with The Taj Group has been a grand occasion. as a part of Rs. the UK. From its earliest days. a state of the art Business Centre and a modern Fitness Centre. 10 minutes from the Airport. opened in 1903.

Chicago and locations in the Middle East and in Africa. This growth has been as diversified as it has been impressive. The uniqueness of the Taj Group lies in the sum of its parts in providing a living heritage of India. Born of desire. In addition to superlative luxury hotels. However a yearning has undoubtedly arisen for a special privilege. both essential and extraordinary.Today. Superior Rooms 3. together with superb comforts and modern facilities. The Taj Group has a few properties in key cities like London. The Taj Group is India’s largest and finest hotel chain offering 48 hotels in 34 locations across the subcontinent. Broadly speaking Taj Palace has five categories of rooms:1. Washington DC. an inner sanctum. All of these combine to make The Taj Experience a must. Deluxe Business Rooms 4. garden retreats and other comfortable accommodation. palace. New York. Suites Rooms o Executive Suites o Deluxe Suites o Luxury Suites o Presidential Suites 33 . beach resorts. Internationally. an Exclusive Club. The Taj Club It is a known fact that a business traveler is a much pampered person indulged with comforts and conveniences unheard of even a decade ago. The Taj Group includes business hotels. Standard Rooms 2. Taj Club Rooms 5. The Taj Group of Hotels presents the Taj club which offers unique world of facilities and privileges.

there are two major types of research design:1. According to Kothari (2003). In the later part of the chapter a brief and detailed overview of the research design and methodology used by me for this dissertation are provided. which will provide pertinent information. According to (C. 2. Research Design After having defined the marketing research problem and developed a suitable approach. They differ only in terms of the degree of formalization and flexibility of the components illustrated in table below: 34 . attention must be given to the formulation of a detailed research design. Exploratory research--concerned with the development of initial hunches or insights.R. Even though exploratory and conclusive research has distinct purposes. 2004) when defining research design. RESEARCH METHODOLOGY In this section I have first explained about research philosophy and approaches. Conclusive research--intends to verify insights and help decision makers to select a specific course of action. they both consist of the same research components. Kothari.Chapter # 4. he presents it simply as ‘the framework for a study used in order to guide the collection and analysis of data’.

Research Components Research Purpose project Exploratory Research Conclusive Research General: To generate Specific: To verify insights insights about a situation in selecting a course of action Data Needs Data Collection Form Sample Data Collection Vague Open-ended . 2004). well laid out Procedures .Formal Quantitative quantitative Exploratory Research: According to Kothari (2003). Typically non. exploratory is appropriate to any a problem about which little is known. the primary purpose of exploratory research is to shed light on the nature of situation and identify any specific objective or data needs to be addressed through additional research. 35 .An effective way of doing exploratory research is to seek out and talk to individual with expertise related to the situation being investigated. Literature searches. Rough Relative Small Flexible.typically Data Analysis Informal. identify relevant courses of action or gain additional insights before an approach can be developed. Exploratory studies are distinguished by flexibility concerning the methods employed. experience surveys and study of selected studies are some commonly used approaches (Kothari. procedures No Clear Usually Structured Relative Large set Rigid. Exploratory research is the most useful when a decision maker wishes to better understand situation. In general.

The kind of research is based on large.Conclusive Research: The insights gained from exploratory research might be verified by conclusive research.Data collected through descriptive research can provide valuable information bout the study units along relevant characteristics and also association among those characteristics. representative samples. organization and market areas (Parasuraman. salespeople. The goal of descriptive research. 1991). the decision maker can choose the best course action in a situation. There are two basic forms of conclusive research:o Descriptive research o Casual research The distinction between the two is based on the primary purpose of a conclusive –research project and the nature of the inferences that can be drown from it. 1999). Descriptive research: Descriptive research is the design involved in the vast majority of marketing studies. 36 . and the data obtained are subject to quantitative analysis. Therefore. as the name implies is essentially to describe something. it is intended to generate data describing the composition and characteristics of relevant groups of unit such as customers. as the objective of conclusive research is to test specific hypothesis and examine specific relationship (Malhotra. Specifically. when conductive a conclusive research. Conclusive research is especially useful when the decision-maker already has in mind on or more alternatives and is specifically looking for information pertinent to evaluating them.

This study is descriptive in nature while it seeks to identify the present scenario of the practices being followed by the leading hotels in India for enhancing customer retention. This research project has a specified framework for collecting the data in an effective manner.” The research process consists of following steps: DEFINING THE RESEARCH PROBLEM AND RESEARCH OBJECTIVES The definition of the problem includes the study of the topic “Customer Relationship Management in the Hotel Industry”. It is that data which somebody else had collected and which had already been passed through the statistical process. 37 .  DEVELOPING THE RESEARCH PLAN Data Source: The type of data taken into consideration for this topic is the Secondary data. articles. and internet and company records. Such framework is called “Research Design. It was collected from hotel tariff cards. Research simply means a search for facts. It is a purposive investigation and an organized inquiry. newspapers.STEPS IN TH RESEARCH PROCESS The present study focuses on “Customer Relationship Management in the Hotel Industry”. magazines. satisfaction and loyalty.answers to questions and solution to problems. designing and marketing of CRM tools and programs ultimately leading to a better brand image in the minds of the customers and increased revenues in the long run. It not only intended to assist any player in this field to capitalize on existing potential but also formulate strategies in planning.

therefore. Customer relationship management is in itself a complex topic. ANALYZE THE INFORMATION The next step is to extract the pertinent findings from the collected data. • 38 . In this project. Limitations of the Study:• • Due to the availability of only secondary data. Since the authentication of the data is not sure. authentication of the data is not sure. the result of the project may not be precise. there may be certain mistakes in the assumption. the collected data is presented as the CRM practices followed by each hotel covered in the study.

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. They aim at managing each “Moment Of Truth” that is experienced by the customer. The input provided by the customer has to be captured in such a way that it becomes information and can be used by various processes within the hotel. These touch points are considered important as there is direct interaction with the customer and they provide valuable input to the hotel. Findings / Research 1. ITC GROUP OF HOTELS ITC MAURYA SHERATON DEFINES CRM AS: “Customer Relationship Management is a process of managing customer relations in an organized way”.Chapter # 5. 39 . 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.

then it is called Field Selling. 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. 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. Field Selling includes Prospecting which means searching and seeking for new customers. CRM process at ITC Maurya Sheraton has been divided in 2 steps:1. These vehicles are:o Field selling o Loyalty Programs o Distribution Points o Web o Call Centers CRM is a vast subject where the concept of one to one marketing is supported by Database Field Selling When a sales group or a marketing executive of the hotel makes a sales call to a corporate. Identification of all Customer Relationship management ‘vehicles’ 2. Marketing.Customer Service is now more fashionably called Customer Relationship Management. Current Accounts are one of the best sources to uncover new business that is within 40 .

Laundry. as they harbor many sources of untapped business potential. They also provide Leads and referrals. Therefore higher the amount of the bill. every time he spends on a service provided by the hotel (use of Room. the person who uses the hotel is a consumer (guest) and the person who helps him make this choice is the customer (link). the hotel is the most obvious alternative for the customer to consider. 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. So with the help of field selling. representative of the hotel meets the customer personally. These programs are designed to reward the loyal guests of the hotel. he is able to strike a chord instantly and has a fair chance of representing the hotel. Field selling is Since the The considered the most important vehicle for the CRM function as the initiative is on the part of the hotel to contact the prospective guest. Telephones etc. the higher will be the number of points attained by the guest. Leads are potential customers with whom no contact has yet been made and learning of potential customers from current customers is called Referral. There are certain points attached to the number of rupees spent by the guest. These points are credited to the account of each guest with the help of technology. this link. These are 41 . is the administration personnel who are responsible for making reservations. difference between the customer and consumer is apparent at this stage as. 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.). Loyalty Programs Second vehicle for CRM identified by Maurya Sheraton are the Loyalty Programs. in most cases. Restaurant. the executive is able to make a direct contact with the ‘link’. Every time a guest checks in the hotel at his every touch point or interface with the hotel.these current accounts.

The Loyalty Program is called welcome avail which is for the consumer. Therefore. The higher the number of points. The administration personnel. more loyal is the guest. This is seen as an important way to keep the source of business motivated towards a long term relationship. In case he redeemed (for example) his points for a free stay. Therefore.called 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. The 42 . they essentially “gross self” the other services which would be used & paid by the guest. telephones. 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. instead of loss of revenue by providing free stay. is motivated to provide more business to the hotel. he would spend on the supporting services like laundry. they actually gain the revenue as well as certain customers for life with the help of the loyalty. restaurants etc. the guest history also affects the loyalty points. the more the number of bookings the links gives to the hotel. 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. Distribution Points/ Central Reservation System A customer can simply make a call at the reservation centre to make a booking with the hotel. These accounts having the loyalty points are unique to every guest. It sounds simple but it could get complex in case he does not receive the expected or the desired response. Therefore. Therefore. They have another loyalty programme for the link. and the revenue generated from these could be earned by the hotel. who is called welcome link. 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. whenever after the first time that guest checks into the hotels.

when a customer make calls to query about a reservation. World Wide Web The World Wide Web is part of the internet. 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. This leads to removal of an irritant and that ultimately leads to a satisfied customer willing to return. And since it is on an individual basis.information regarding all guest reservations is managed through computer software. 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. it is considered as one of the vehicles for CRM. This is a touch point of customer relationship because a speedy and accurate response could win you a customer. In hospitality. Therefore the wheel does not get reinvented every time a standard instruction is to be followed. therefore. But ITC Maurya’s focus is on the business side of using the web. multimedia system to import and/or access information world wide. Since the web gives a convenience and allows the access to information at any time. 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. It is used for both personal and business purposes. This 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. interactive. 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. Therefore. 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 a computerized. 43 . 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.

As a member. points are earned that can be redeemed for a wide range of rewards.The art of fine dining with a special edge Welcome group Sheraton Plus brings the pleasures of the palate. From 24-hour coffee shops to the specialty restaurants such as Dum-Pukht. Mughlai and Chinese specialties to Continental fare in a selection of over thirty ITC-Welcome group restaurants. As a Welcome Award member customers can earn 'Stars' on every aspect of their business trip…hotel stays.Rewarding Relationships Welcome Award has earned the distinction of being India's premier and most powerful frequent guest programmed. India's most popular programme for key professionals offers many value-added benefits. customers can savour the finest in cuisine ranging from authentic Indian. Sheraton Plus. air tickets. 44 . Bukhara. Welcome Link..Bring home the rewards Welcome Link. members get to dine and entertain. With Welcome Link.INCENTIVES TO THE CUSTOMERS BY ITC WELCOMGROUP HOTELS Welcome Award . It is designed to help members in making reservations for their company executives. car rentals and privilege shopping with Citibank Diners Gift Vouchers countrywide. free holidays. The Welcome Award programme recognizes customer as a business traveler and through its strategic alliances with travel partners endeavors to build a rewarding relationship customer. business entertainment. For every materialized room night booked by a member at ITC-Welcome group Hotel. Dakshin and West View. the member can look forward to many exciting promotions and prizes coming their way plus an exciting range of rewards. Car rentals and even air travel.. in a truly rewarding manner. complimentary dining.

it is possible that the guest may only wish that most of his work done through that employee. Any time when they have a special promotional scheme for a particular property. In Maurya Sheraton. who should know & how much to know. clearly marks out what is the customer expecting from the property and also if these are some special arrangements to be made for it. This is also a form of customized and personalized selling within the hotel. they are trained to learn more about the guest and his background so that when he talks to the guest. advantages and disadvantages of the function. Maurya does not have a separate training for CRM. The General Manager then decides the path of trickling down to that information. That may not be necessarily related to his stay at the hotel but these informal conversations with the guest can help build an excellent rapport with the guest which will lead the guest to know the employee by the name. This team briefs the General Manager of the property about the customer expectation. At Maurya. he can strike a conversation that is of some interest to the guest.STEPS IN THE CRM PROCESS The first step in CRM is for the internal customer that is to create awareness among them towards the concept. In future interactions. 45 . Then equip them by training in their own requisite functions & scope of CRM within that function. the marketing team (which has formulated the promotional scheme) puts together the details of the scheme. they use a phrase to explain this percolation which is “Nice to know and needs to know” which essentially means that it is nice to know for all employees of a particular property about the running of the promotional scheme at their property but not all need to know about every aspect of the scheme as it may not be relevant to their scope of work but they do need to know the tier points of the scheme relating to their scope of work.

From a marketing point of view.The second step in CRM process is to integrate the information which is received through touch points. it is important to get the desired input back from touch points in such a way that all the bits and pieces picked up by different touch points can be organized and used as valuable information by various other touch point to offer the right product to the right customer and that too at the right time. 46 . All this is done by creating a data base.

The Sales Process – Pre CRM and Post Implementation of CRM Independent Database Call Centre Sales Agent Security Credit Agent Operations ----------------------------------------------------------------------------------- Database Call Centre Sales Agent Security Credit Agent Operations Source : Chaudhuri Avijit. "Implementing a Technology Based CRM Solution". Shainesh (2001). Tata McGraw Hill 47 . CRM – Emerging Concepts.

Till about five years back. The Oberoi is thus working hard to sell its services since the product has become generic in nature. The Oberoi did not have any competition and sales and marketing team did not have to sweat it out to acquire and attract potential clients. It has an excellent brand value which it consistently reinforced by delivering exceptional services. which they cater to. The Oberoi. Today is a changed scenario. been charging a premium for the value that its guests derive from its services. over the years. India has seen the entry of International hotel chains.2. 48 . Oberoi has seen its market share eroding due to price wars and cost cutting amongst the five star hotels. THE OBEROI GROUP OF HOTELS Customer Relationship Management Function has been prevalent in the hotel industry since the inception of the concept of boarding and lodging. Oberoi has. which has ensured a high market share in the high-end segment of the market. thus. The loyal guests of The Oberoi have started switching due to similar international standards of services available at cheaper rates. has acquired an outstanding brand value which would help sell the hotel solely on its name. Oberoi has a very loyal patronage from its guests. there has been a lot of pressure on the sales and marketing team to perform. The Oberoi has enjoyed a superior position regarding its core product offering and supporting services. Because of globalization.

It is beneficial for guests who use the services of the hotel. They have also tied up with the airlines for interchangeable redemption of points. 49 . 2006): Top – The Oberoi Plus This is an end-user program with an enrollment fee of Rs.CRM PROCESS AT THE OBEROI GROUP OF HOTELS According to the Oberoi the terms-Customer Relationship Management and Relationship Marketing are used interchangeably therefore they do not have a separate CRM department as the outlining functions of the CRM process are integrated in the Sales and Marketing operation. By enrolling and rewarding customers with the help of this program. Co-operative and collaborative relationships with customers seem to be the most prudent way to keep tracks their changing expectations and appropriately influencing it. The Oberoi has ensured the above by the various ‘end user’ and ‘booker’ programs such as (Starkov.575 only. the hotel ensures that a greater bonding towards long-term customer retention. he accumulates points which can be redeemed for any services of the hotel. They use a variety of after sales tactics for customer bonding and loyalty. Each time a guest spends.

Mr. the Lake Palace at Diaper and Rambagh Palace in Jaipur was linked to the Taj and a Chain was born. In 1972. the 220 roomed Taj Mahal Hotels in Bombay was converted to a 325 Roomed hotel. Each time a booker gives as reservation to the hotel he gets credit points for that and which can be redeemed for gifts or any hotel services. Tie-Ups The Oberoi invites top clients like CEO. and a multistory structure was built adjoining the original property. The parent Hotel-The Taj Mahal Hotel. THE TAJ GROUP OF HOTELS Taj group of hotels is the largest chain in India. Managing Directors and key decision makers of different companies to social evenings specially arranged to further enhance the Customer relationship management functions.Mansheti Nuser wanji Tata. Food Festivals The Oberoi conducts various food festivals at its Restaurants.with several Hotels abroad also. In 1974. The doors opened in 1903 and has been a landmark by the Gateway of India ever since. a new company was 50 . In 1971. Bombay is rated among the 10 best hotels in the world The founder of the house of Tatas. 3. in 1894 formed the Indian Hotels company and built the exquisitely beautiful Taj Mahal Hotel in Bombay.Connections – Bookers’ Program Bookers are an important link in materializing an actual sale therefore they need to be kept motivated to push the hotel when the reservations are made by a corporate account. Regularly and sends invitations to its more profitable Clients.

In 1978. the Maldives. Taj is only the only hotel group that knows India and South Asia so well.. and does so with such complete style.. 38 destinations and is the largest Hotel chain in the country. the UK. Fisherman’s Cove was built which is 30 minutes drive from Madras on the Bay of Bengal with a Private Beach. the glittering Taj Mahal was opened in Delhi. the Savoy Hotel in Ooty and the Raj Mahal Palace in Jaipur and the Taj View Hotel in Agra. Oman and Srilanka and the Taj Empire continues to expand further. which created the Taj Coromandel in Madras. The1980’s was to see a rapid expansion of the group and the gigantic Taj Palace in New Delhi was opened. Followed by this was the opening of Taj Residency in Bangalore.floated. In the same year the chain broadened with the acquisition of fort Aquada Beach Resort in Goa. In 1976. the Taj Group opened the Taj Flight Kitchen in Bombay. Taj has been operating in the USA. Catering to both domestic and international flights. The Shiv Nivas Palace at Diaper and TAC (Taj Air Caterers) in New Delhi Airport were also opened. In the same year. Earlier. today Taj has 50 Hotels of which 48 are operational. and this was followed by The Taj Ganges in Varanasi after two years. taking residence with The 51 .

The Taj group also has eight Business Hotels spread over different corners of the country. There are six restaurants and a bar in the hotel to offer its guests. The Taj Group includes business hotels. When The Taj Mahal Hotel. inaugurated in the 1903. It is ideally located. London. All Luxury Hotels now have renovated rooms. 52 . On request in-room fax. Mumbai.Taj Group has been a grand occasion. a state of the art Business Centre and a modern Fitness Centre. Talking about Internationally. plus on line accessibility to world business information is available. Taj Palace hotel offers convenience and gentle ambience. To name the few are Orient Express. Taj Palace is Luxury Hotel under Taj Group of Hotels. Email facility. 10 minutes from down town situated amidst 6 acres of landscaped greenery. beach resorts. The Taj Group also has properties in key cities like London. This growth has been as diversified as it has been impressive.300 crore upgradation programme. Laptop computer. Within quiet reason. There are six Luxury Hotels which offer a whole of elegant living and upto the minute business amenities. In addition to its admirable luxury hotels. Taj Palace has 421 rooms and suites. Isfahan. garden retreats and other comfortable accommodation. one finds congenial atmosphere of true business hotel coupled with local handicrafts and a special emphasis on cuisine. In Taj tradition. The Tea House of the August Moon. the event was described as “a resplendent debut” by The Times. everything that one wishes is available round the clock Taj Palace hotel including the finest cuisine in town. The hotel combines attractive functionality with style in a peaceful symbiosis. 10 minutes from the Airport. as a part of Rs. background information on major Indian industries. So too is their exclusive club floor rooms. Handi and My Kind of Place(Discotheque). Each Deluxe Business floor room is a modern business centre. palace. The Taj Group is India’s one of the finest and largest hotel chain which is offering 48 hotels within 34 locations across the subcontinent. There are 20 Taj Leisure Hotels out of which 16 are in India and 4 are abroad.

and palaces. About the Taj Inner Circle The Taj Inner Circle has three membership levels – Blue. Guests can then redeem their points for specially selected rewards like complimentary stays at Taj hotels. resorts. DIFFERENT REWARD PROGRAMMES OFFERED BY TAJ GROUP OF HOTELS TO ITS CUSTOMERS/GUESTS 1. Gold card members enjoy enhanced privileges and accumulate points at a faster rate i. 3. Taj Inner Circle Taj Inner Circle. Members who spend Rs. allows guests to earn points whenever they stay or dine at The Taj.000 (INR). together with superlative comforts and its modern facilities.2. spend Rs. To qualify for the Taj Inner Circle Silver membership level. at participating Taj restaurants in India. Washington DC Chicago and also at locations in the Middle East and in African states.25. 2.00. will be automatically upgraded to Gold status. Customers/Guests join at the Blue level and start earning on their stay or dining or both expenses at all Taj properties. Taj Epicure Plan The Taj Epicure Plan is an optional add-on dining plan to the Taj Inner Circle. in continuous 12-month period. they earn at the rate of 1 point for every 53 . All of these things combine to make The Taj Experience a must. Silver and Gold. excluding taxes. The Taj group uniqueness lies in the sum of its parts in providing a living heritage of India.New York. in any continuous period of 60-days.e. customer need to accumulate 250 points in any continuous 60-day period i. the frequent guest programme.e.000 (INR). Members earn Epicure points for expenditures incurred on food and beverages. excluding taxes.

which is payable by credit card. they will be treated as a very special guest. or demand draft (Drawn in favor of “Indian Hotels Company Limited”). Taj Inner Circle Blue members who opt for the Epicure Plan will be automatically upgraded to the Silver level whereas members on the Silver or Gold tier will continue to enjoy their existing membership levels.80 spent. cheque. Non-Taj Inner Circle members who wish to enroll on to the Epicure Plan will receive a complimentary Taj Inner Circle Silver membership. 4. Alternatively. customers enjoy a host of privileges that have been created to enhance customer’s experience at the Taj. updating and redemption of points. discounts and priority wait-listing. 2500. About the Epicure Plan The Epicure Plan. guests can make payments in cash when applications are made directly at Taj hotels. From the moment customer check in at any of participating hotels. an optional add-on to the Taj Inner Circle. in more than one way: o Customers will be greeted with flowers & fruits in their room 54 . at participating Taj restaurants in India. Members of the plan receive a "Smart" membership card for instant recording. BENEFITS THAT CUSTOMERS ENJOY AS A SILVER & GOLD MEMBER In addition to rewards. Gold and Silver card members of the Taj Inner Circle also enjoy a host of privileges like easier check-in check-out formalities. is an exclusive dining plan that offers Taj Inner Circle members special privileges and rewards for expenditures incurred on food and beverages. excluding taxes.Rs. Membership is available at an annual fee of Rs.

faster & flexible o Receive special discount on rooms at Taj leisure hotels o Avail of double occupancy at no extra cost o Entitled to a priority wait-list. Points Redemption Epicure points can be redeemed to settle stay or dining bills at participating Taj hotels in India. 5. Please note that only Inner Circle points can be accumulated at Rambagh Palace. Epicure points cannot be earned at this hotel.o Check-in & departure formalities will be easier. Jaipur. 55 . Points will be instantly deducted from the accumulated points in the membership account. Taj Epicure Diners Club Card: Experience the art of fine living with this exclusive card. guests can receive exclusive benefits across 43 Taj properties and over 200 Taj restaurants. Participating Taj hotels or restaurants can close out bookings for these redemptions. Redemptions for holidays are subject to availability and prior reservation. Members can even entertain or holiday at exotic Taj hotels in exchange of Epicure points.

staff performance tracking. All available information in PMS are retrieved directly into VisiGlobe. These solutions can be ranged from providing CRM software to providing turnkey solutions including project management. Happy guest returns and advises VisiGlobe is used for guest satisfaction survey. department performance tracking. It helps hotels to improve guest satisfaction at least 20%. This increase provides a minimum of 5% increase in revenue.Chapter # 6. Each department manager tracks related issues and if 56 . All issue is solved timely. staff performance and guest satisfaction surveys are tracked. training and support.CRM and processed. On the other hand. Guest requests are continuously observed. A call center is established. services improved and provided seamlessly. Example of CRM Implementation This is according to VisiGlobe solutions (for CRM):VisiGlobe offers variety of CRM solutions. Closed issues are instantly closed in the system. It has a direct connectivity to PMS Property Management Software. guest satisfaction in overall hotel performance. All reported problem and request are entered into the system and dispatched to runner to solve the issue. Guest satisfaction is the most important aspect of CRM approach of VisiGlobe. guest request and problems follow-up. software.

Rapid Response Priority required requests are tracked and solved. he can act immediately. o Relationship Marketing Marketing through guest history analysed with requests and comments. general manager. o Incident Tracking Solving problems on time without leaving any un-solved issue. o CRM means different things to different companies.necessary. This ensures all guest problems are solved before he leaves. o Communication Server All requests are delivered to specific person on time via electronic transmission. o Guest Comment Card Tracking To evaluate and analyze guests feedbacks. o Facilities Maintenance Planned room and property maintenance to offer problem free service. o Improvement Analysis To improve service quality and reduce cost. Just as customers are unique. James Dunham. Some part of our CRM solutions: o Guest Recognition To know more about guests and to serve better. Travel and 57 . companies are unique.

For some companies. Guest recognition 2. Channel integration and consistency 4. Having said that. The technology allows us to do it better.Transportation for Siebel Systems. but we see these strategic concepts as universal: 1. additional elements may become equally crucial. said. “Our customers apply CRM tools differently depending on their businesses’ drivers.” Think of CRM as a way of life rather than a technology. Data capture and maintenance 3. robust wide area networks and technologically aware hotel guests are all part of the mix that has elevated the art of customer relationship management. today’s technical possibilities are a crucial enabler for doing a much better job of embracing our customers than we ever could have in the past. A property that has optimized occupancy uses CRM differently than one with low occupancy because their needs are different. but without effective leadership in the hotel companies and buy-in from line employees it remains only a good idea. Ranking and discrimination 5. Strategic Elements of CRM:Our experience and research identifies five crucial elements required for a successful CRM initiative in any service organization. Structured databases. Two-way personalized dialogs 58 .

this leads to measurable & substantial returns to the hotel. building a superior brand image and turning them into loyal patrons. ITC HOTELS At ITC. CONCLUSION AND RECOMMENDATIONS CONCLUSION Implementing an effective CRM solution is not complex. This helps in providing quicker and more customized solution to queries and complaints. effective communication. Other benefits extended to the loyal clients of ITC include Welcome Award. if any and also helps in building a rapport between the hotel executives and the customer which goes a long way in satisfying and retaining the customers. the management has identified ‘data capture vehicles’ or ‘touch points’ (as they call it) . From this study.Chapter 7. Adequate planning. Ultimately. They have realized that a happy and satisfied customer is a retained customer and that’s the key in creating superior brand equity and better returns. stakeholder involvement and mistake avoidance will ensure that your initiative gets off the ground easily.like loyalty programs. Welcomlink. Oberoi and Taj are following organized and well established CRM practices. we can conclude that all the three leading hotels – ITC. Sheretonplus which are aimed at rewarding the regular clientele of their patronage and building a better relationship with them. 59 . reservation systems and call centers to maintain a data bank of their customers and to access the information as and when needed.

They employ data mining technique to get and 60 . at The Oberoi. MDs and business people to further enhance the CRM functions’ effectiveness. and are. but to maintain its market share and fight the competitive situation. Traditionally. They even have an SMS service to keep track of lost/missed calls by the customers while they are away. They have employed applications like PMS. thus. The Taj gives high priority to guest satisfaction. CRS and CIS to keep track of customers’ profiles which includes information such as their spending patterns and their special needs also.THE OBEROI The brand value that The Oberoi has created for itself is a result of its consistent delivery of exceptional services to its customers. CRM and relationship management has been considered to be a single function. able to charge a premium for the value given to the customers. The Oberoi also organizes Food Festivals regularly and sends invitations to its regular clientele and the top CEOs. THE TAJ The Taj Group is also investing heavily on CRM systems to maintain customer databank with their profiles to give a quicker and personalized service to their loyal clientele. The CRM programs at the Oberoi include The Oberoi Plus for the customers and also for the Bookers to motivate them. the marketing department at The Oberoi is now focusing on building co-operative and collaborative relationships with the customers with the result that they have a loyal patronage from their guests.

rise above the 'transaction' approach. Strategic bundling of services is a useful methodology in this context. especially where quick responses are required.  Cross functional teams are required to meet the goals.  Top management must be committed to the relationship.  Relationships provide 'security'. Other reward programs include Taj Inner Circle and the Epicure plan to give the customers a host of privileges as silver and gold card holders. profitable relationships can be built when both. and it takes a great amount of maturity and courage to handle the 'lows'. the service provider and the customer. as their example is followed throughout the organization.act on data and also give credit to the employees who get compliments from the guests. Relationships. and work in an atmosphere of mutuality and trust. like real life. Some key learning’s are:  Long turn. goes through ups and downs. The challenge is to balance between the long-term goals and short-turn gains.  61 .

e.RECOMMENDATIONS In this era of globalization where ‘Customer is the King’. 4. Maintaining suggestion boxes at every touch point/point of interaction with the customers. 1. club surveys.. Surveys: Conducting monthly guest/customer surveys. Taking feedback not only from external customers but also the internal customers i. the employees. I would like to recommend some suggestions which could be implemented profitably by the industry. 62 . As the product is becoming generic in nature. 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. the hotel industry can no longer rely on the traditional marketing strategies to retain the customers. Customer Relationship Management is one of the key tools to fight this cut throat competition and stand out as a superior brand. customer expectations are going up which is making the situation more and more competitive. say by employing Mystery Customers. 2. room comment cards. On the basis of the study. Proper check on the hotel staff’s and processes’ efficiency by the management. 3.

special requests. meal preferences. Giving recognition awards to attract old customers. to impress the customers and to turn complaining customers into loyal ones.5. Keeping regular track of the sales data for further leads and follow-up 6. Employing an efficient system of complaints handling as complaints are the opportunities to improve. lower operating costs. 9. amenities preferred. 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. Having Guest History programs. 63 . 8.keeping a databank of customer profiles along with such details as room 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. 10. 7. and increase revenues. wallet services. build guest loyalty. Employing effective CRM software to improve guest satisfaction.


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