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Chapter # 1. Introduction to the Project Topic
1.1 What is Customer Relationship Management (CRM)? CRM entails all aspects of interaction a company has with its customer, whether it is sales or service related. It even uses technology to streamline processes that impact customer loyalty, service delivery and quality 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 and the application of customer-focused strategies. “Customer is the most important person for a business. He is not an interruption to our work but the purpose of it. He is not an outsider; he is a part of it. We are not doing him a favour; he is doing us a favour by giving us an opportunity to serve him.” (By Mahatma Gandhi) It has grown mainstream and is being implemented in a wide range of companies and organizations such as manufacturing, financial services, transportation and distribution, medical services and products, consumer package goods and others. This explosive growth of CRM reflects the intersection of genuine market need and enabling technology. And, in this growth period, the impetus for CRM is shifting from an emphasis on efficiency, i.e., doing more things faster with less cost, to effectiveness, i.e., doing things better for increased revenue with a high "return on relationships (ROR)". According to Chaudhuri and Shainesh (2001)-A CRM programmer requires a clear understanding and commitment to the company's customers, vigilant adherence to detailed goals, commitment from both executives and line workers, and a constant awareness of the customer's view point. Customer relationship management is about more than simply managing customers and monitoring their behavior or attitude. CRM has the potential to change a customer’s relations with a company and increase revenues in the bargain. Furthermore it helps to know the customers wellenough to decide whom to choose and whom to lose. The objective of CRM (customer relationship management) is to recognize and treat each and every customer as an individual. It is very essential for
CRM in Hotel Industry
any business to know that how to differentiate customer treatment according to an individual preferences. For differentiate customer treatment, the companies use personalized service and customized products which make some customers feel special and others simply appreciate good behavior. It humanizes their purchase or service request or complaint. Personalization and customization doesn’t mean maintaining only customer loyalty, but also driving purchases higher. Getting closer to customers and effectively responding to their needs is a great way to boost their loyalty and encourage deeper business relationship. The task of getting and retaining customers requires even greater skill and effort. The business needs to ensure that the service works as the customer actually wants it to, and the customers want to do business in 'their' way, not to be forced to do it in the enterprise's way. Most companies consider them customer-focused and believe that in being so they are servicing the customer. But eventually, being customer focused means to have a consistent, dependable and convenient interaction with customers in every encounter. CRM technologies focus on managing all interactions that an organization has with its customers, in order to leverage the data in a variety of business applications. Where a profitable relationship already exists, CRM can especially boost superior service at a lower cost. In addition to this it helps to serve customer's unspoken needs. 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.
CRM in Hotel Industry
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”. The other objectives would be: • 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.
3 Advances in the 1990’s In the 1990’s companies began to improve on Customer Relationship Management by making it more of a two-way street. newer software systems and advanced tracking features have vastly improved CRM capabilities and the real promise of CRM is becoming a reality. Instead of simply gathering data for their own use. In the case of smaller clients. As the price of newer. they began giving back to their customers . In the case of larger. however. In the short term. it proved to be an unwieldy process that was better in theory than in practice for a variety of reasons. it tended to provide repetitive. As companies began tracking database information. survey-like information that cluttered databases and didn’t provide much insight. 2. what they do. LITERATURE REVIEW 2. key clients it was a valuable tool for keeping the lines of communication open and tailoring service to the clients needs. competition has driven the prices down so that even relatively small businesses are reaping the benefits of some custom CRM programs.2 In the beginning… The 1980’s saw the emergence of database marketing. what they spend.1 Evolution of CRM Customer Relationship Management (CRM) is one of those magnificent concepts that swept the business world in the 1990’s with the promise of forever changing the way businesses small and large interacted with their customer bases. however. they realized that the bare bones were all that was needed in most cases: what they buy regularly. Chapter # 2.CRM in Hotel Industry 4 Finally to conclude the findings and suggest any recommendations regarding the future growth prospects. which was simply a catch phrase to define the practice of setting up customer service groups to speak individually to all of a company’s customers. In the last several years. however. First among these was that it was simply so difficult and expensive to track and keep the high volume of records needed accurately and constantly update them. 2. more customizable Internet solutions have hit the marketplace.
Operational . The main misconception of CRM is that it is only software. sales.CRM in Hotel Industry 5 not only in terms of the obvious goal of improved customer service. a successful CRM strategy cannot be implemented by only installing and integrating a software package designed to support CRM processes. It attempts to integrate and automate the various customer serving processes within a company. The second one is the description which is correct.support to analyse customer behaviour.automation to the basic business processes (marketing. The term CRM is used to describe either the software or the whole business strategy oriented on customer needs. 2. and self-service.4 About Customer Relationship Management . CRM was now being used as a way to increase sales passively as well as through active improvement of customer service. bonus points on credit cards and a host of other resources that are based on CRM tracking of customer activity and spending patterns. a modification of business processes based on customers' needs and an adoption of relevant IT-systems (including softand maybe hardware) and/or usage of IT-Services that enable the organization or company to follow its CRM strategy. implements business intelligence alike technology . but in incentives. This approach includes training of employees. In today's competitive business environment. instead of whole business strategy. A holistic approach to CRM is vital for an effective and efficient CRM policy. Major areas of CRM focus on service automated processes. service) Analytical .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. gifts and other perks for customer loyalty. There are three parts of application architecture of CRM: 1. 2. CRM-Services can even redundant the acquisition of additional hardware or CRM softwarelicenses. This was the beginning of the now familiar frequent flyer programs. personal information gathering and processing.
and also sales staff performance. The marketing information part provides information about the business environment. Many call centers use CRM software to store all of their customer's details. et al. The sales force management part automates some of the company's sales and sales force management functions. Another interesting thing is that even those who have implemented highly technological installations for their CRM initiatives. 2002) . including competitors.CRM in Hotel Industry 6 3. This significant part is left to the technology alone (Schneider and Bowen.ensures the contact with customers (phone.5 Importance of Customers There exists a wide-spread mistaken notion that CRM is some kind of a manifestation of technology only.) Operational part of CRM typically involves three general areas of business. The customer service part automates some service requests. 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. complaints. CRM solutions can also be used to allow customers to perform their own service via a variety of communication channels. Cooperational . product returns. web. a company aims to make cost savings. industry trends. For example. quite often can be seen to have forgotten the basis of this modern concept. Sales force automation (SFA) and a Customer service and support (CSS). fax. 1999). and information requests. which otherwise may result in low sales and hence low profits. They are (according to Gartner Group) an Enterprise marketing automation (EMA). "One widely accepted marketing rule-of-thumb claims that the average. and also keeping all information on a customer in one place. i. and macro environmental variables. unhappy customer tells eight other potential customers about his negative experience. saving money for the company.. Integrated CRM software is often also known as "front office solutions." (Lemon. buying habits. and saving you time.." This is because they deal directly with the customer. It keeps track of customer preferences. and also encourage new customers. When a customer calls. 2. email. you might be able to check your bank balance via your WAP phone without ever having to talk to a person. and demographics. By serving the customer quickly and efficiently.. making profitable relationships with their customers. the system can be used to retrieve and store information relevant to the customer.e.
2002) And this has been proved to be.. Moreover. Realizing these facts in its true sense. i. Existing customers for a regular inflow of cash and hence profits. mass mailings. (Anton. certainly for something in return. 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. mutually beneficial to both the parties. it leads to a highly satisfied customer and he is said to be enjoying customer delight. 2005) According to Berry (1983) Customers to a business are those people or enterprises which are benefited by the use of a service or product offered by that particular business. if things are going comfortably with the existing vendor and the level of service is good. as was expected." (Berry. there is very little reason to switch loyalties often. new environment of business unveiled the importance of keeping the existing customers loyal so that they would not switch over to the competition. transport and information technology has made the business enterprises realize that the competition is just a mouse click away. he expects some specific thing with a specific quality and features. from as low as three times to as high as thirteen times of servicing an existing customer. 1983) In a customer’s viewpoint.CRM in Hotel Industry 7 Some decades ago. "The reports on new customer acquisition costs vary. (Hart et al. cost-reduction tactics and on attracting more customers through the classic marketing tactics such as TV advertisements. This has resulted in managing these relationships as a strategic tool and in the evolution of Customer Relationship Management or most commonly known as CRM. it leads to an unsatisfied customer. cheaper and more efficient systems of communication. without much thinking. finding out new customer is much costlier than keeping the regular demand. most of the companies concentrated mainly on higher productivity through higher levels of efficiency of employees as well as machines. If his expectation exceeds what he has been given. the emergence of faster. But the companies have found out that creating new demand i.e. But the sudden growth and expansion of services sector proved that these would not convert into profits. So it is more likely for any customer to switch from one company to another in search of better quality or service. many companies have stuck to making long-term profitable relationships with their prospective customers. If the offer exceeds his expectations for a stipulated price. generally a price. Switching involves changes and disruptions in service levels that most regular customers try to avoid. When a customer pays a price. in a way. Today.e. bill boards etc. These changed. the customer has more choices to choose from. .
(www. b) Enhanced strategic partnerships: For a good CRM implementation. no CRM initiative can be made fully successful. 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. SAS India. suppliers and organizations. This same rule is applicable to the technology used in the CRM also.com) Now there are specific analytical tools which will help organizations to measure their return on investment of CRM. 2004) Factors to be considered while calculating RoI:- . According to George Varghese. 2003) To calculate RoI.CRM in Hotel Industry 8 2." (Dyche. Head (Marketing). enterprises need to build organizational intelligence. c) 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. giving emphasis to a customer-centric approach. "Operational CRM can improve efficiency but it is difficult to calculate RoI. there should be a co-ordinate effort among the different partners to the enterprise. Otherwise.ascenantone. customer intelligence and supplier intelligence to get a unified 360 degree view of customers.4 Return on Investment (RoI) of CRM Rigorous financial scrutiny of all Information Technology IT) investments have now become the rule. (Mohan Babu. The failures of some CRM installations in some of the industries have given way to think about the Return on Investment (RoI) of CRM. misuse or under utilization of these technologies may take place resulting in partial or full failure of those activities.3 Four Parameters to Measure CRM Success a) CRM's ability to impact corporate strategy: Without a corporate strategy. d) 2.
partner and channel management etc. Good CRM is all about replicating the same experience with the use of technology. Additional revenue in terms of increased sales due to increased customer loyalty. Savings in the form of time needed to assemble and consolidate sales forecasts. When the goal of cheaper. (Berry. the first and the last ones are making direct contact with customers. et al. sales automation. e-commerce. 4. It is not just a software solution. (Lemon. Several big organizations have failed to know what the customer really wants and several others. a set of skills and competencies that will enable a company to better leverage and profit from each and every customer relationships. Customer Service and Support (CSS): .CRM in Hotel Industry 9 1. 2. Savings in the form of reduced use of time to manage customers and customer transactions. Additional revenue in terms of increased lead generation. analyzing them and making relationships with the prospective customers based on the analyzed information. At the same time we are able to see small shop keepers doing CRM extremely well. The Components of Operational CRM:1. The operational CRM deals with those which make customer contacts or otherwise called as touch points. but also. while analyzing data is not. customer service and support. 2002) 2. after knowing. 1983) CRM is an integration of contact management. 3. the results far outweigh the challenges. could not really translate these requirements into deliverance. marketing automation. faster. Analytical CRM does the job of analyzing the accumulated data from the various touch points with the aid of business intelligence. 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. better service is considered. Among these three main functions.5 CRM and Technology In CRM the important functions are collecting customer data.
(Key Note . Marketing Automation (MA): These applications provide the ability to create automated marketing campaigns and track the results.CRM in Hotel Industry 10 These applications basically automate the support and service functions.How It Functions? According to Hart et al. SEA allow for the design of sales teams based on particularly defined criteria. The major types of analysis of data are the following: . dynamic scripting capabilities for the customer service representatives or executives as well as the potential to record customer responses in a shared storehouse. scheduling automatic or manual follow-up activities and receiving third-party lists for incorporation into the campaigns are all typical functions. lead distribution and tracking of sales contacts with customers and prospects are some of the capabilities offered within these solutions. tracking and resolution. 3. Calendar management. (Chaudhuri & Shainesh 2001) Sales Force Automation (SEA): These are tools which automate the collection and distribution of all types of sales or sales related information’s. 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. sales reporting and forecasting. which is actually a storehouse of corporate data from various sources intended to facilitate business analysis. 2003) Analytical CRM . Inbound and outbound e-mail management capabilities are also becoming popular components of the marketing automation suites. Generating lists of customers to receive mailings or telemarketing calls. activity management. They also provide customizable. Internet personalization tools are offered here to track behavior on a web-site and allow tailoring of the contact experience. Call centers use operational CRM tools. (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. or generation of specific cross-selling opportunities based on this behavior. This data is regularly stored in a data warehouse. 2. including analysis and also provides workflow engines that facilitate efficient problem and inquiry escalation.
The product affinity concept is the base. o Sequence: Sequential analysis identifies combinations of activities that occur in a particular order. often involving no hypothesis. More often. here. The association algorithm is often applied to market-basket analysis to help business understand products which are usually being purchased together.CRM in Hotel Industry 11 1) OLAP: Online Analytical Processing is one of the most popular type of decision-support analysis. what he did during his visit and when he returned. click streams reveal certain patterns of web-user behavior. OLAP analysis requires the analyst to have a query or hypothesis in mind for clearly understanding the result. one can understand how the user arrived at the site. The three types of data mining are(Dyche. Predictive modeling generates output that populates a model or structure to represent the results. 2004): Prediction: The use of historical data to determine future behaviors. 1999) Rules based personalization analysis: These analytical tools are based on the concept of personalization. Here the software makes 4) . This is used to determine whether customers are doing things in a particular order. how long he stayed. It can help a business to distill behavior from events captured from various operational systems around a company to determine patterns. 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. o 3) Click stream analysis: By analyzing the click streams of an internet user. this means generating an online report. allowing the average business person to explore data online with the aim of focusing on detailed data at a lower and lower level of the data hierarchy. The whole process is similar to a hidden camera recording the activities of a shopper in a store. 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. It is commonly used to help data analysts search for information they don’t yet know to look for. o Association: Association analysis detects groups of similar items or events. (Schneider and Bowen. analyzing the results and submitting a detailed query in order to understand the result data.
2002) Web based self-service: The customers themselves. These tools are often more complex. It provides control. Customer Service Representatives (CSRs) could look up similar calls and resolutions while a customer was on the phone. and thus more expensive. Prashant & Pankaj. Responses are input into customer databases and included as part of individual customer profiles. Collaborative filtering uses the behavior of other 'like' visitors as the basis for its recommendations. partners and employees to obtain information’s or conduct transactions directly over the internet. than rules-based personalization. 2002) 2. (Akhtar. allowing companies to handle escalating call volumes. these survey forms are even personalized to specific customers or customer groups. performance.6 Some Applications of Technology in CRM 1. avoiding time-consuming and costly traditional processes involving multiple verbal or written interactions. (Lemon. 3. et al. Call centre technologies entered the market place to effectively alleviate some of the repeat work and increase efficiencies. without having to repeat research. Call centers: These are organizations which deal directly to the customer interactions. These are otherwise known as "Customer Care Centre" or "Contact Centre" indicating more technological sophistication and multichannel support. Nowadays. The software tools being used in the call-centers also provide forecasting of call volumes to ensure adequate call centre staffing. convenience and efficiency. without the help of a live person can resolve their problems or find out answers to their queries using the web. Such tracking of customer satisfaction over time enables a company to fine tune how 2.CRM in Hotel Industry 12 recommendations based on the personalized/customized website of a customer. This model is founded on the principle of enabling customers. 5) Collaborative filtering: This is otherwise known as 'adaptive personalization.' This gets smarter as it observes customer behaviors and applies them to new circumstances. (Chaudhuri & Shainesh 2001) Customer satisfaction measurement: Survey mails are the major way for companies to monitor customer satisfaction. . Rules based personalization most often involves rules that have been hard-coded into software. For this reason it is often difficult to maintain and support.
(Raghunath & Shields 2001) Web site: It is the efficient and effective use of worldwide web for providing information to the customers. Cyber agents are 'lifelike representatives' normally depicted on a company’s web site as a real person. In the US and in the developed countries web is extensively used. based on an individual customer's segment and/or customer profile contents. Usually a cyber agent addresses the web visitor with his/her first name. This attempt to pull together the best of both personalization and advanced technology. 2003) 5. Scripts remove the guess work from determining how to respond to a customer query or complaint. 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.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. In the case of monetary transactions. 6. by a company who had created that site. 2003) Now. 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. 2. through the net. the paper based surveys are giving way to electronic surveys. You are nothing without our customers understanding that your organization exists for no other reasons than to meet customer needs and expectations. in a hassle-free manner. If you believe other wise. 4. The main advantage of a web site is its 24 hours accessibility. Call-scripting: Automatic scripts generated for customer service representatives. (Mohan Babu. . guiding representatives through a dialogue with the customer and thus optimizing discrete customer interactions. Usually gathering information from the site is a simple task and is cost-effective. (Key Note . Its imperative is to develop proactive methods for understanding what customers like and dislike. It is given a personality and is having facial expressions and volume.CRM in Hotel Industry 13 it communicates with its customers according to their preferences. Cyber agents: This is a kind of an improved or modified form of the concept of self-service.
e. 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. sales and service processes.CRM in Hotel Industry 14 CRM is a business strategy to select and manage the most valuable customer relationships. CRM requires a customer-centric business philosophy and culture to support effective marketing. restaurant club programs. 2002): Statistically valid customer satisfaction measurement: From the very top of the organization. Tactically. The data sources may include guest history. 1. external guest profiling systems. This is followed by the implementation of effective marketing programs to attract similar customers to build revenue. CRM applications can enable effective customer relationship management. strategy and culture. These offers can be communicated via mail or e-mail. where does CRM start? The recommended implementation of customer relationship management typically looks like (Hart et al. provided that an enterprise has the right leadership. sales and catering system information and other data. 2. . There is opportunity for repurchase and recommendation from each past customer. the property management system) and integrating the entire database in the property that contains guest information is complex and time-consuming. Integration of customer information: The process of extracting customer data from legacy systems (i. Customer profiling: Demographic and Psychographic information can be appended to a large percentage of the customer database. employee satisfaction and a desire to have one voice to the customer. Highly profitable offers can provide business during slow periods. (Anton. 2005) In hospitality. Direct marketing: The utilization of the integrated customer information for direct marketing offers is the goldmine of any CRM effort. each customer relationship has value and should be managed effectively. there should be a commitment to CRM including customer satisfaction..
How is it possible to make all this information actionable? And. which integrate the profitability of groups and meetings. like so many that have gone before. once you’ve caught it – what are you going to do with it? This is the analogy posed by Peter Aeby. a business can: Provide better customer service Increase customer revenues . Insuring that employee and guest satisfaction continues to improve. Aeby is referring to the mass of information that major hospitality organizations are now able to collect about customers. with an understanding of labor shortages. Linking the meeting planner satisfaction to each of these sales and catering accounts is the first step in making sure that your best customers are most satisfied. but certainly companies are getting very close to understanding the most profitable customers and most profitable micro-markets. The immediate tactical example of this is can be found in well utilized sales and catering systems. It’s uncertain whether anyone is there in the hospitality industry. 2. how does a hotel manager tactically utilize available tools to improve the frontline experience? How does that same manager build revenues and customer loyalty from this data? Advantages of CRM Using CRM. 3. It is the integration of all the elements that hospitality has focused on forever: 1. high turnover and lack of computer integration. combined with valid financial data about each customer – all appended to the customer database. Beating the competition by offering a better product. Like a dog chasing a truck. CRM is not a buzzword program. Personally recognizing customers.CRM in Hotel Industry 15 3. general manager of the legendary Brown Palace Hotel in Denver and the chairman of Preferred Hotels & Resorts Worldwide. Offering appropriate value and great service to encourage repeat business. competing on the service experience rather than price alone. This involves very detailed satisfaction analysis. and 4. Best customer/extraordinary service: The Mecca of all is to understand if the most profitable customers are the most satisfied.
match customer needs with product plans and offerings. It’s the art of using historical. With CRM software tools. people providing service to the customer can access information. an enterprise might build a database about its customers that describes relationships in sufficient detail. marketing. and service that touch the customer. et al. following are the type of data a CRM project includes (Lemon. personal. and so on (Lemon. 2002): Responses to campaigns Shipping and fulfillment dates Sales and purchase data 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. et al. The management. (Raghunath & Shields 2001) . remind customers of service requirements. and experiential information to personalize a guest’s stay while generating incremental revenue opportunities.CRM in Hotel Industry 16 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. knowing a guest had a less-than-memorable experience in the hotel restaurant gives a chance to win them back the next time they are in town. Customer Relationship Management Solutions – Guest Centric Data Customer relationship management (CRM) is more than the practice of collecting guest-centric data. salespeople. Knowing a traveler is an avid sports fan creates the opportunity to market tickets to a game. check payment histories. 2002).
CRM in Hotel Industry 17 CRM Solutions Built on the Microsoft Platform eCRM or Web based CRM e-CRM application in hotel industry are straddling across business functions to retain. order taking. opportunity management. capture and capitalize on customer data. • • • • • . order management/promising. temporary alignment and assignment. tied over the slump and jump start. Telemarketing/Telesales functionality: call list assembly. account management including activities. market segmentation. proposal generation Sales management functionality: pipeline analysis (forecasting. auto dialing. sales cycle analysis. integrating all aspects of business process and systems by keeping the customers as the core. e-CRM Components in Hotel Industry • Sales functionality: Contact management profiles and history. consolidate and thrive. configuration. roll up and drill down reporting). escalation. order entry. warranty/contract management Marketing functionality: campaign management. i. scripting. e-mail Customer service and support functionality: incident assignment. lead generations/enhancement/tracking. tracking/reporting. web-based encyclopedia. Time management functionality: single user and group calendar/scheduling. 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. Corporations realize that the true values of their customers in down turn are the ones that will be equipped.e. problem management/resolution.
the web.CRM in Hotel Industry 18 • Executive information functionality: extensive and easy-to-use reporting ERP integration functionality: legacy systems. diCarta. Example: Upside Software. third party external information Data synchronization functionality: mobile synchronization with multiple field devices. contracts and agreements. 2005) • • • • Customer Service Call Center Software Help Desk Software Partner Relationship Management Contract Management Software: Contract Management Software enables an enterprise to create. 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. Accruent Software. dispatching. IMany. track and manage partnerships. real time information transfer to field personnel via mobile technologies (Rmana & Somayajulu.8 Customer Relationship Management Software for the Hotel Industry EXAMPLE:- . 2.
Guest ware Enterprise Solution – For Effective Means Intended for hotel chains. Hyatt Hotels.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 software helps streamline service delivery and uses .Implement Process Improvement Industry surveys show that guests are less likely to return if they experience a problem during their stay. Guest Ware will improve productivity in the follow-up process and provide valuable management reports to maximize the benefits of your surveys. the Enterprise Guest Ware database maintains a single view of the customer essentials for CRM. build guest loyalty. (Raghunath & Shields 2001) Comment Card Tracking .com) Guest Ware is installed in over seven hundred hotels and resorts worldwide. so to lower operating costs and increase guest satisfaction at the same time.guestware. Guest Ware’s Improvement Analysis tools provides with the information to eliminate recurring problems and keep guests coming back. and increase revenues.CRM in Hotel Industry 19 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. (www. Communications Server . Star wood and many independent hotels and resorts.The CRM Approach Now more than ever. lower operating costs. including Marriott International. Most industry consultants estimate the cost of finding a new customer is between 5 and 10 times the cost of retaining an existing customer. it is critical for hospitality sales and marketing professionals to maximize their return on investment (ROI) in marketing. It allows hotel companies to implement enterprise CRM while leapfrogging existing hotel technology investments. Experts agree targeted marketing to existing customers is the best way to increase marketing ROI. Improvement Analysis . It allows staff to receive and close requests and maintenance issues from a pager or cell phone. Marketing Solution . Enterprise Guest Ware enhances property management systems (PMS) and central reservations systems (CRS). Leading hotel management companies use Guest Ware to improve guest satisfaction.Listen to your Customers Customer survey on restaurant or an extensive questionnaire of guests. the GuestWare Comment Card Tracking system assists to manage customer feedback. brands and management companies. Kimpton Hotel Group.
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. allowing the property to create guest-centric marketing for increased loyalty and spending. • Generate a realistic profile on the spending and stay patterns of guests. They searched their welcome break holiday package database and scratched it to identify and segment the customers who tend to (Sheth. The sales team then enveloped special promotion packing to encourage bookings for weekends. Reservation systems. 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.Field selling. 2002): • Book on long weekends • Book on a short term basis • Respond to promotional campaigns . Agra had completed a review of an upcoming weekend. With the latest offerings in CRM. ITC Maurya Sheraton . Loyalty programs.000 members in its database. Using the Database: Product and service improvement is just one result of tapping into a database. For example: A sales team of Mughal Sheraton. Web & Call centers are the major sources of database development. allowing employees and guest-facing technology to deliver greater value to the guest/customers.CRM in Hotel Industry 20 existing e-mail systems or a modem to communicate with most two-way messaging devices. The hotel has 35. Developing special promotions and employing direct mail to promote these campaigns is another major use of database marketing. They regard this management of their database as an asset because it enables a superior customer understanding.
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. Companies in hospitality that are adopting the database marketing approach to enhance sales are seeing increased customer satisfaction which further results in increased revenues. out of the database of 35. analyze their buying habits. (Rmana & Somayajulu. Therefore. Relationship marketing depends on the goodwill generated by frequent-buying programs as well as on the information provided from database marketing efforts. The profits enhanced are not only in monetary terms but also in terms of customer loyalty and long term retention. From the point of view of the internal customers also. automatically extracting operating data from legacy databases for use in the marketing database. develop & assess the performance of targeted marketing campaigns. In other words. Relationship marketing is “knowing the customer and using that . 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.CRM in Hotel Industry 21 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. a new profession is emerging in the hospitality industry of getting and keeping a customer. Some hotels outsource these tasks to companies that specialize in this field or at best. 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. 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. these are systematic ways to distill through a database of a multitude of databases to get the information for which one is reaching. 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 non-profitable customers and hence reduces the costs and enhances the profits. do it internally. Database Mining Starkov. 2005) 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.000 members. It enables users to easily integrate company/ property management reservations and point of sale systems.
Likewise. On a personal level we all know what our faults are but we get defensive way they’re re pointed out. a tour wholesaler may favor low prices. to impress customers and to turn complaining customers into loyal ones. We tend to respond in a guarded and defensive way. 1999) The astonishing news is that those people who do complaint and have their problem taken care of.” 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. a retired couple may need dietary menu options. In case of hotels customer/guest is more likely to switch if the provided service is not satisfactory to their expectation.” (Schneider and Bowen. Who wants to hear what they’re doing wrong. (Swift. and so forth). . may not be as important to another. personal information such as spouse’s name and hobbies are added to a member database (see previous section on database marketing). tend to be more loyal to the company than the people who were satisfied in the first place. We’re also aware of weaknesses in our job performance. Complaint Handling Few companies. World-Class companies see complaints as opportunities to improve. This approach can field very valuable insight about changing customer preferences. In addition to knowing the purchase habits of members (room selection. which may avoid squarely confronting the real problem. Consider the varying demand placed on a hotel: An airline stewardess may find the 24 hour room-service extremely valuable. and a young female executive considers a security a priority. certain amenity preferences. But reacting to criticism is difficult. companies tend to let themselves off the hook too easily: “We never could have satisfied that customer. 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. What is important to one customer however. 2001) The company uses this information to tailor special events and products to small segments of the membership. Priority Marketing Priority Marketing focuses on what’s important to the customer.CRM in Hotel Industry 22 information to bond with them. especially if the criticism is well founded. problems in our organization and imperfections in its products and services. Hotels should break down their services and ask customers what is important to them. use or pay attention to complaints.
through dedicated and smart planning. The puzzle must be completed and time must play its part before true success will be seen. 2. (Rmana & Somayajulu. This one-to-one relationship is the catalyst that sparks both lifetime customer loyalty and revenue increase. through innovation and focus on business effectiveness rather than merely efficiency. businesses should see markedly increased profits.9 CRM Success Seeing CRM initiatives take hold and begin to pay off is often a waiting game. It’s not a “flip-the. Gradually. 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. Being effective is paramount. hotels can target promotions to capitalize on known characteristics and individualize the presentation. 2005) It is important that hotels involve their guests and stay in touch with customer perceptions of current services. However. The end goal of better serving customers and enabling a high percentage of customer retention cannot be met with out . and a closely aligned partnership is formed. manage to break the mold of traditional business thinking”. In the true spirit of thinking outside of the box.CRM in Hotel Industry 23 Identifying groups of customers who have similar preferences or even similar tastes (such as sharing common perceptions of quality or states). their customers get to know them. experts at the Gartner Group believe “the most successful organizations will be those who. as businesses get to know their customers.
CRM in Hotel Industry 24
creative thinking and effective planning and actions. 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. And over time, customers change, as does their behavior and needs, and business must be able to respond to that. Being on the cusp of the industry and always having a hand on the pulse of the customer is the key for success. As the CRM initiative begins to take hold, key players will soon see patterns emerge among customers, will discover what a productive strategy is and what is not. This is the essence of a successful CRM project: being able to really know what will work for your customers, what satisfies them, and what keeps them loyal. The ability to get an accurate gut feeling about the marketing campaigns, new products, and the type of policies customers will respond to is invaluable. This kind of customer 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.
CRM in Hotel Industry 25
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. 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, which is a part of Starwood hotels and resorts and is a well-known global hospitality chain. 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”. It is represented by four distinctive brands serving the needs of the travelers, namely: • ITC Hotels – Super deluxe and premium hotels in strategic business location. • WelcomHotels – Five Star first class hospitality for business and leisure travelers. • Fortune Hotels and Resorts – Full service hospitality at mid-level prices for business travelers and leisure travelers.
Welcome Heritage – Palaces, forts, havelis, resorts and homes that bring alive the history and romance of India’s heritage.
“In the year 1984, this group underwent a drastic change when their occurred a paradigm make over in the entire Hospitality Industry. 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. We feel that the hotels in the city fulfill the leisure needs well, but there are very few to think out of the box”.
THE OBEROI GROUP OF HOTELS The Oberoi Group of Hotel has played a leading role in the growth of the hotel industry in India. The Oberoi group has the distinction of having listed as members of the leading hotels of the world. 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.
CRM in Hotel Industry 26
As the founder chairman Rai Bahadur Mohan Singh Oberoi started off with a single hotel in Shimla in 1934, the group has diversified business interests relating to the hospitality industry. The Oberoi Chain currently runs 18 hotels in India and 12 hotels abroad. CONCEPTION The Oberoi, New Delhi was India's first modern, luxury hotel, when it was opened in 1965. A member of the internationally prestigious leading hotels of the world, today the Oberoi has undergone a multimillion dollar redesign and offers every comfort and convenience to the international corporate travelers. Location: Dr. Zakir Hussain Marg, New Delhi- 110003, 25 minutes drive from the International Airport and 7 minutes from Cannaught Place. Class: 5 star Deluxe
Rooms: 290 sellable rooms with a proper writing desk with telephone lines, a fax machine, internal and national direct dialing facility, a mini bar, channel music, in house movies and luxurious bathrooms designed in polished granite. In order to ensure personalized attention to all guests, an exclusive butler service has also been introduced on all floors. The Oberoi has 8 floors with even numbered rooms facing towards the Golf Course (pool side) and odd numbered rooms facing Humayun's Tomb (monument side). Leisure Facilities: facilities. Health club, Swimming pool, Delhi Golf Club
Special services: Bank, Barber Shop , Shoe Shine, Beauty Parlor, Laundry, Drug Store, Flower Shop, Book Shop, Mercury Travels (ticketing & car hire), Executive Center (Typing, Fax, Photostatting, Board room) etc. Shops: Shopping Arcade located at the lobby level.
Restaurants and Bars:o Chinese Restaurant: o Thai Restaurant: o Indian Restaurant: The Taipan Baan Thai The Kandahar
Taj has been operating in the USA. Bombay is rated among the 10 best hotels in the world. The parent Hotel-The Taj Mahal Hotel. The founder of the house of Tatas.Mansheti Nuser wanji Tata. the UK. Oman and Srilanka and the Taj Empire continues to expand further. From its earliest days.with several Hotels abroad also. taking . in 1894 formed the Indian Hotels company and built the exquisitely beautiful Taj Mahal Hotel in Bombay. the Maldives. Mr. Only one hotel group knows India and South Asia so well. and does so with such consummate style. Today Taj has 50 Hotels of which 48 are operational.CRM in Hotel Industry 27 Buffet and Continental Cuisine Restaurant:La Rochelle with 3 private dining rooms: i)Fountainbleau ii)Versailles iii)Chantilly Coffee Shop: The Palms Confectionery & Delicatessen: The pastry Shop Bar & Private dining rooms: The Belvedere Tea Lounge: Club lounge Banquet facilities: i)Aravalli ii)Vindhya iii)Shvalik iv)Nilgiri v)TheCannaught TAJ GROUP OF HOTELS Taj group of hotels is the largest chain in India. 38 destinations and is the largest Hotel chain in the country.
In addition to superlative luxury hotels. Washington DC. background information on major Indian industries. There are six restaurants and a bar in the hotel to offer its guests. 300 crore upgradation programme. E-mail facility. The Taj group also have eight Business Hotels spread over different corners of the country. Handi and My Kind of Place ( Discotheque). The Tea House of the August Moon.This includes Rooms. Isfahan. The Taj Group has a few properties in key cities like London. The hotel combines attractive functionality with style in a peaceful symbiosis. Each Deluxe Business floor room is a modern business centre. the product which a hotel offers falls into two categories:1. To name the few are Orient Express. 10 minutes from down town situated amidst 6 acres of landscaped greenery. palace. On request in-room fax. a state of the art Business Centre and a modern Fitness Centre. The Taj Group includes business hotels. as “a resplendent debut”. beach resorts. The concept has changed over the years from “Home away from home” to “Office away from home”. the event was described by The Times. New York. opened in 1903. It is ideally located. plus on line accessibility to world business information is available. Taj Palace hotel offers convenience and gentle ambience. The Taj Group is India’s largest and finest hotel chain offering 48 hotels in 34 locations across the subcontinent. Service . Taj Palace has 421 rooms and suites. Mumbai. together with superb comforts and modern facilities. Food & Beverage. Laptop computer. Today. Internationally. 10 minutes from the Airport. When The Taj Mahal Hotel. There are 20 Taj Leisure Hotels out of which 16 are in India and 4 are abroad. London. The uniqueness of the Taj Group lies in the sum of its parts in providing a living heritage of India. garden retreats and other comfortable accommodation.CRM in Hotel Industry 28 residence with The Taj Group has been a grand occasion. Accommodation . Taj Palace is Luxury Hotel under Taj Group of Hotels. There are six Luxury Hotels which offer a whole of elegant living and upto the minute business amenities. In Taj tradition. Broadly speaking. as a part of Rs. All of these combine to make The Taj Experience a must. . This growth has been as diversified as it has been impressive. Chicago and locations in the Middle East and in Africa. Within quiet reason. 2. everything that one wishes is available round the clock Taj Palace hotel including the finest cuisine in town. All Luxury Hotels now have renovated rooms.This is an intangible product. Hotel is a place which offers boarding and lodging for a certain charge. So too is their exclusive club floor rooms. one finds congenial atmosphere of true business hotel coupled with local handicrafts and a special emphasis on cuisine.
The Club floor rooms provide personalized services to the guests round the clock. Deluxe Business Floor Rooms are indulgently comfortable whilst being. an office away from home. The banqueting facilities. But today they come from all over the world. Business tycoons and Luxury tourists. individually appointed with separate lounge. complimentary breakfast. Both Standard and Deluxe rooms are now equipped with ‘Flecon System’ through which the guest can regulate the air-conditioning and light intensity in the room. bars etc.CRM in Hotel Industry 29 Food & Beverage . The Taj Palace Hotel is the most distinguished residence in New Delhi for Heads of State and Corporations. in-rooms fax machine and butler on call. Rooms that work smarter The Taj Palace hotel has 421 guest rooms of which 381 are Deluxe rooms and 40 are Suites. The Standard rooms and deluxe rooms offer complimentary airport transfer. Guest rooms of Taj Palace combine modern facilities with relaxing decor. Accommodation Further classification of Accommodation would make the range of Products wider . the invading armies came from the North-West. E-mail and Internet can be accessed in both the Standard and the Deluxe Rooms. virtually. halls and conference rooms also come under the ambit of the Rooms division. banquets. are served from different F&B outlets like restaurants. India’s capital city is a magnificent tourist attraction and important trading and commercial centre. The Rooms could vary from a Standard deluxe room to luxurious Presidential Suites which differ considerably in the facilities offered and of course the Tag or Tariff on them. obtain World Time and operate the night light at the flip of a button. specialty restaurants. Luxury Terrace Suites are spacious. The Club Rooms of Taj Palace offers guests a world of exclusive services and privilege. offers a spectacular choice of accommodation. . coffee shops. New Delhi.which is also a perishable commodity like a room. dining and work areas and a terrace garden. room service. In the days gone by. comfortable large areas. and the conference rooms suited to conduct private meetings of upto ten persons are just a few facilities to talk about. The Executive Suite combines luxury and modern convenience for excellence.
4. Standard Rooms Superior Rooms Deluxe Business Rooms Taj Club Rooms Suites Rooms o Executive Suites o Deluxe Suites o Luxury Suites o Presidential Suites Business Centre It offers several useful facilities 24-hrs a day. However a yearning has undoubtedly arisen for a special privilege. and also feel at home while at work. 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. . Broadly speaking Taj Palace has five categories of rooms:1. Born of desire. Internet. as well as laptops. 2. 3. an Exclusive Club. Taj Palace Business Centre is designed to give the best to the business community who do require sophisticated communication facilities and other gadgets to stay connected to the rest of the world while at the Hotel. an inner sanctum. The hotel calls this concept “An office away from home”. whether it is the rooms or the service. E-mail. city pagers and mobile phones on rental basis.CRM in Hotel Industry 30 This session would list below the product and services offered by Taj Palace Hotel and what makes them unique from the rest of the hotel/s. Color photocopying and legal library. 5. The Taj Group of Hotels presents the Taj club which offers unique world of facilities and privileges. These include Facsimile. both essential and extraordinary. With no exaggeration it could be said that the guest gets the best of best services and facilities which are more than necessary for a modern business man. seven days a week.
gettogethers. The Exquisite delight the menu offers is savoured by anybody with a palate for food. capacity suit all kinds of occasions including receptions. To name the few are Orient Express. The banquet halls of various size. marriage parties. The conference aids includes simultaneous translations in 5 languages. conferences. It also serves hard drinks and acts as a bar . but broadly they could be segregated into F&B Outlets Restaurants Coffee Shops Bars Room Service Banquets Taj Palace has four Restaurants and one Night Club and a Bar. There are numerous Food & Beverage outlets. seminars and symposiums. cocktail parties and scores of other functions. Handi and My Kind of Place which is the discotheque and the hottest and most wanted place in the city. The banquet halls are very much flexible for various types of seating arrangements and setups like Fish-bone. It is a theme restaurant and the entire set-up is that of a train and any guest who aboard Orient Express would get lost in the sheer opulence of the legendary train. Taj Palace has 11 Banquet halls with a capacity of 15 to 1600 persons (Auditorium Style) or 15 to 2500 persons for Cocktails/ Receptions. especially among the youth. recreated down to the minutest detail. It also has two huge Lawns to organize Fork Buffet / Standing Buffet also for outdoor functions. Orient Express: Orient express is the only restaurant in the country to feature in the “50 great Hotel Restaurants of the World”. Class room style.CRM in Hotel Industry 31 Banquet Facility: The hotel provides facility for orchestrating parties and banquets. Theatre style. meetings. Food & Beverage: The Food & Beverage Division accounts for roughly 30% of the total revenue earned by the hotel. The Tea House of the August Moon. Isfahan. Auditorium type etc. conferences. decor and interiors. the Banqueting facilities offered by the hotel could be matched to any other competing hotels and is par excellence.
Rap. Handi: The Handi is one of the most popular Indian restaurants in the Capital city. Pop.hote menus to its guests. Ragga.CRM in Hotel Industry 32 for the hotel. Orient Express offers an excellent selection of premium red and white wines. It offers specialties from Northern as well as Western India. 3 Meeting rooms Work station availability Laptops on hire Secretarial service • Knight Rider on-line service • Currency Exchange • Travel assistance . The restaurant offers both ‘Ala carte’ and ‘Table-d. My Kind of Place: It is the most wanted Discotheque in the city and it is enjoyed by people of all ages. coupled with the mouth-watering Indian speciality dishes makes the dining experience a memorable one even to a gourmet critic. which includes. Food & beverages are also served out here to rekindle the lost energy at the dance floor. Other Services & Facilities: • • • • • • • • • • • 24-hour room service Free safe deposit lockers Express laundry/ dry cleaning Purified water supply Doctor-on-call Full-equipped Business Centre 24-hour fax/ telex facilities. Fast numbers and also Heavymetal on request. The hotel organises various food festivals (Indian) and takes Handi as a platform for its promotional schemes. The DJ plays music on request. The decor and ambience of the restaurant. Soft. The songs could be dedicated to anyone as desired by the guest. champagnes and house wines. Techno.
CRM in Hotel Industry 33 • • • • • • • • • Car hire service 24-hour Coffee Shop 6 Restaurants & Bars Night Club 8 luxurious Banquet Rooms Shopping arcade Fitness Centre Beauty shop Arrangements made for golf and tennis .
2004) when defining research design.R. they both consist of the same research components. According to Kothari (2003).CRM in Hotel Industry 34 Chapter # 4. there are two major types of research design:1. he presents it simply as ‘the framework for a study used in order to guide the collection and analysis of data’. RESEARCH METHODOLOGY In this section I have first explained about research philosophy and approaches. attention must be given to the formulation of a detailed research design. Rough Relative Small Clear Usually Structured Relative Large . which will provide pertinent information. 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. Conclusive research--intends to verify insights and help decision makers to select a specific course of action. They differ only in terms of the degree of formalization and flexibility of the components illustrated in table below: Research project Components Research Purpose Exploratory Research General: To generate insights about a situation Conclusive Research Specific: To verify insights in selecting a course of action Data Needs Data Collection Form Sample Vague Open-ended . According to (C. Even though exploratory and conclusive research has distinct purposes. Kothari. 2. Research Design After having defined the marketing research problem and developed a suitable approach. Exploratory research--concerned with the development of initial hunches or insights.
Literature searches. No set procedures Informal. Exploratory research is the most useful when a decision maker wishes to better understand situation. 2004). Exploratory studies are distinguished by flexibility concerning the methods employed.typically quantitative Data Analysis Exploratory Research: According to Kothari (2003). 1999). well laid out Procedures Formal . The kind of research is based on large. exploratory is appropriate to any a problem about which little is known. Conclusive Research: The insights gained from exploratory research might be verified by conclusive research. representative samples. experience surveys and study of selected studies are some commonly used approaches (Kothari. 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. In general. the decision maker can choose the best course action in a situation.An effective way of doing exploratory research is to seek out and talk to individual with expertise related to the situation being investigated. Typically nonQuantitative Rigid. identify relevant courses of action or gain additional insights before an approach can be developed.CRM in Hotel Industry 35 Data Collection Flexible. There are two basic forms of conclusive research:o Descriptive research o Casual research . and the data obtained are subject to quantitative analysis. Therefore. 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. as the objective of conclusive research is to test specific hypothesis and examine specific relationship (Malhotra.
Research simply means a search for facts.answers to questions and solution to problems. It not only intended to assist any player in this field to capitalize on existing potential but also formulate strategies in planning. STEPS IN THE RESEARCH PROCESS The present study focuses on “Customer Relationship Management in the Hotel Industry”. The goal of descriptive research. Descriptive research: Descriptive research is the design involved in the vast majority of marketing studies.” . organization and market areas (Parasuraman. salespeople. Specifically. 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. Such framework is called “Research Design.CRM in Hotel Industry 36 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. it is intended to generate data describing the composition and characteristics of relevant groups of unit such as customers. satisfaction and loyalty. 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.Data collected through descriptive research can provide valuable information bout the study units along relevant characteristics and also association among those characteristics. 1991). as the name implies is essentially to describe something. It is a purposive investigation and an organized inquiry.
It was collected from hotel tariff cards. the result of the project may not be precise. ANALYZE THE INFORMATION The next step is to extract the pertinent findings from the collected data. therefore. magazines. Customer relationship management is in itself a complex topic. there may be certain mistakes in the assumption. and internet and company records. • . Limitations of the Study:• Due to the availability of only secondary data. articles. authentication of the data is not sure. It is that data which somebody else had collected and which had already been passed through the statistical process.CRM in Hotel Industry 37 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”. • Since the authentication of the data is not sure. DEVELOPING THE RESEARCH PLAN Data Source: The type of data taken into consideration for this topic is the Secondary data. In this project. the collected data is presented as the CRM practices followed by each hotel covered in the study. newspapers.
. ITC GROUP OF HOTELS ITC MAURYA SHERATON DEFINES CRM AS: “Customer Relationship Management is a process of managing customer relations in an organized way”.CRM in Hotel Industry 38 Chapter # 5. Customer Service is now more fashionably called Customer Relationship Management. CRM is a vast subject where the concept of one to one marketing is supported by Database Marketing. 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. 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. 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. They aim at managing each “Moment Of Truth” that is experienced by the customer. 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. These touch points are considered important as there is direct interaction with the customer and they provide valuable input to the hotel. 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. Findings/Research 1.
Current Accounts are one of the best sources to uncover new business that is within these current accounts. this link. Leads are potential customers with whom no contact has yet been made and learning of potential customers from current customers is called Referral. as they harbor many sources of untapped business potential. These vehicles are:o o o o o 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. Identification of all Customer Relationship management ‘vehicles’ 2. then it is called Field Selling. the executive is able to make a direct contact with the ‘link’. So with the help of field selling. Field 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 difference between the customer and consumer is apparent at this stage as. the person who uses the hotel is a consumer (guest) and the person who helps him make this choice is the customer (link). he is able to strike a chord instantly and has a fair chance of representing the hotel. is the administration personnel who are responsible for making reservations. They also provide Leads and referrals. the hotel is the most obvious alternative for the customer to consider. in most cases. 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. .CRM in Hotel Industry 39 CRM process at ITC Maurya Sheraton has been divided in 2 steps:1. Field Selling includes Prospecting which means searching and seeking for new customers. Since the representative of the hotel meets the customer personally. 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. the administration person and is able to take the feedback on a continuous basis and helps to customize the offering.
the guest history also affects the loyalty points.CRM in Hotel Industry 40 Loyalty Programs Second vehicle for CRM identified by Maurya Sheraton are the Loyalty Programs. Every time a guest checks in the hotel at his every touch point or interface with the hotel. the more the number of bookings the links gives to the hotel. In case he redeemed (for example) his points for a free stay. whenever after the first time that guest checks into the hotels. and the revenue generated from these could be earned by the hotel. The administration personnel. 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. Therefore. restaurants etc. they actually gain the revenue as well as certain customers for life with the help of the loyalty. Restaurant.). who is called welcome link. 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. Therefore. These accounts having the loyalty points are unique to every guest. instead of loss of revenue by providing free stay. Therefore higher the amount of the bill. They have another loyalty programme for the link. Laundry. more loyal is the guest. This is seen as an important way to keep the source of business motivated towards a long term relationship. every time he spends on a service provided by the hotel (use of Room. the higher will be the number of points attained by the guest. he would spend on the supporting services like laundry. Therefore. Distribution Points/ Central Reservation System A customer can simply make a call at the reservation centre to make a booking with the hotel. is motivated to provide more business 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 . 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. These points are credited to the account of each guest with the help of technology. Therefore. telephones. The Loyalty Program is called welcome avail which is for the consumer. The higher the number of points. These are called Loyalty points. These programs are designed to reward the loyal guests of the hotel. There are certain points attached to the number of rupees spent by the guest. they essentially “gross self” the other services which would be used & paid by the guest. 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. It sounds simple but it could get complex in case he does not receive the expected or the desired response. Telephones etc.
multimedia system to import and/or access information world wide. it is more personalized and customized because the customer puts in his preferences when requesting a booking. Therefore the wheel does not get reinvented every time a standard instruction is to be followed. The input or instruction received from the customer at the stage is recorded in the reservation system for further reference by the hotel operations. therefore. But ITC Maurya’s focus is on the business side of using the web. In hospitality. . interactive. It is a computerized.CRM in Hotel Industry 41 being polite enough or not giving out the information as desired by the guest. when a customer make calls to query about a reservation. This leads to removal of an irritant and that ultimately leads to a satisfied customer willing to return. 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 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. 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. it is considered as one of the vehicles for CRM. Therefore. This is a touch point of customer relationship because a speedy and accurate response could win you a customer. It is used for both personal and business purposes. 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. And since it is on an individual basis. Since the web gives a convenience and allows the access to information at any time. The information regarding all guest reservations is managed through computer software. 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. 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.
advisory services etc. Call centers can now even be accessed via e-mail as it is the most cost effective and time effective way of accessing . Whether query relates to accumulation or redemption of points. Tata McGraw Hill. This facility has been outsourced by Maurya and is out of the premises of the hotel. CRM – Emerging concepts. This has been done to service the quest in a most personalized and efficient manner.). "Introduction of e-CRM in Indian Hotel Industry. Joseph Shields (2001. Here the customers can call in and find out about any information related to their membership..) Investment specific information sharing Short-term payments/ redemptions Non-routine Post-sale interaction On time/ End time settlement Claims processing in times Clarification of FACs and Payment specific Processing queries Accuracy Comprehensiveness Decision Making Customization Scrutiny Speed Accuracy Delivery Speed Transparency Accuracy Fairness Speed Transparency Expected Benefits From e-CRM Source : Raghunath S. it can be accessed through these centers.CRM in Hotel Industry 42 VALUE CHAIN OF CUSTOMER INTERACTION IN HOTEL INDUSTRY AND POSSIBLE BENEFITS OF e-crm Stages Customer Research Consumer Buying behavior Payment patterns Consumer Profiles Activities Pre-sale Interaction Comparison of Hotel products Customization of products Sale Transaction Order placing Payment Order processing Routine Postsale Interaction Routine information sharing (new products/service s. Call Centers ITC Maurya has a Call center dedicated to servicing the loyalty programme members.
As a member. As a Welcome Award member customers can earn 'Stars' on every aspect of their business trip…hotel stays. Mughlai and Chinese specialties to Continental fare in a selection of over thirty ITC-Welcome group restaurants..Bring home the rewards Welcome Link.Rewarding Relationships Welcome Award has earned the distinction of being India's premier and most powerful frequent guest programme. With Welcome Link. business entertainment. India's most popular programme for key professionals offers many value-added benefits. From 24-hour coffee shops to the specialty restaurants such as . Call centers are seen as CRM touch point because they usually provide solution to a problem that is being faced by a customer.. Therefore the intangibles of listening. points are earned that can be redeemed for a wide range of rewards. car rentals and privilege shopping with Citibank Diners Gift Vouchers countrywide. free holidays.CRM in Hotel Industry 43 information. Welcome Link. OTHER INCENTIVES TO THE CUSTOMERS BY ITC WELCOMGROUP HOTELS Welcome Award . understanding and providing a solution to a problem at the right time adds to the process of retaining the customer – There is a rapport which is built between the customer and the respondent which goes a long way in future correspondence with the center.The art of fine dining with a special edge Welcome group Sheraton Plus brings the pleasures of the palate. Sheraton Plus. Car rentals and even air travel. in a truly rewarding manner. It is designed to help members in making reservations for their company executives. air tickets. customers can savour the finest in cuisine ranging from authentic Indian. For every materialized room night booked by a member at ITC-Welcome group Hotel. 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. the member can look forward to many exciting promotions and prizes coming their way plus an exciting range of rewards. complimentary dining.
In future interactions. he can strike a conversation that is of some interest to the guest. advantages and disadvantages of the function. This team briefs the General Manager of the property about the customer expectation. 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. At Maurya. members get to dine and entertain. All this is done by creating a data base. 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. The second step in CRM process is to integrate the information which is received through touch points. it is possible that the guest may only wish that most of his work done through that employee. they are trained to learn more about the guest and his background so that when he talks to the guest. From a marketing point of view. Maurya does not have a separate training for CRM.CRM in Hotel Industry 44 Dum-Pukht. . 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. The General Manager then decides the path of trickling down to that information. 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. who should know & how much to know. In Maurya Sheraton. 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. the marketing team (which has formulated the promotional scheme) puts together the details of the scheme. Then equip them by training in their own requisite functions & scope of CRM within that function. Dakshin and West View. Any time when they have a special promotional scheme for a particular property. Bukhara.
"Implementing a Technology Based CRM Solution". Tata McGraw Hill .CRM in Hotel Industry 45 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. Shainesh (2001). CRM – Emerging Concepts.
The loyal guests of The Oberoi have started switching due to similar international standards of services available at cheaper rates. 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.CRM in Hotel Industry 46 2. Today is a changed scenario. The Oberoi. been charging a premium for the value that its guests derive from its services. The Oberoi has enjoyed a superior position regarding its core product offering and supporting services. . which they cater to. The Oberoi is thus working hard to sell its services since the product has become generic in nature. over the years. Because of globalization. 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. Oberoi has seen its market share eroding due to price wars and cost cutting amongst the five star hotels. there has been a lot of pressure on the sales and marketing team to perform. It has an excellent brand value which it consistently reinforced by delivering exceptional services. India has seen the entry of International hotel chains. which has ensured a high market share in the high-end segment of the market. has acquired an outstanding brand value which would help sell the hotel solely on its name. 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. Till about five years back. Oberoi has a very loyal patronage from its guests. Oberoi has. thus.
By enrolling and rewarding customers with the help of this program. 2006): Top – The Oberoi Plus This is an end-user program with an enrollment fee of Rs. Regularly and sends invitations to its more profitable Clients. 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 hotel ensures that a greater bonding towards long-term customer retention.CRM in Hotel Industry 47 They use a variety of after sales tactics for customer bonding and loyalty. Tie-Ups The Oberoi invites top clients like CEO. It is beneficial for guests who use the services of the hotel. The Oberoi has ensured the above by the various ‘end user’ and ‘booker’ programs such as (Starkov. Managing Directors and key decision makers of different companies to social evenings specially arranged to further enhance the Customer relationship management functions. 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. Each time a guest spends.575 only. They have also tied up with the airlines for interchangeable redemption of points. 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. Food Festivals The Oberoi conducts various food festivals at its Restaurants. . he accumulates points which can be redeemed for any services of the hotel.
in 1894 formed the Indian Hotels company and built the exquisitely beautiful Taj Mahal Hotel in Bombay. the Lake Palace at Diaper and Rambagh Palace in Jaipur was linked to the Taj and a Chain was born. In 1971.. In the same year the chain broadened with the acquisition of fort Aquada Beach Resort in Goa. In 1974. the Taj Group opened the Taj Flight Kitchen in Bombay.Mansheti Nuser wanji Tata. Followed by this was the opening of Taj Residency in Bangalore. In 1972. and a multistory structure was built adjoining the original property. the 220 roomed Taj Mahal Hotels in Bombay was converted to a 325 Roomed hotel. THE TAJ GROUP OF HOTELS Taj group of hotels is the largest chain in India. the glittering Taj Mahal was opened in Delhi. and this was followed by The Taj Ganges in Varanasi after two years. The doors opened in 1903 and has been a landmark by the Gateway of India ever since. The parent Hotel-The Taj Mahal Hotel. a new company was floated. In 1976.CRM in Hotel Industry 48 3. In the same year. The1980’s was to see a rapid expansion of the group and the gigantic Taj Palace in New Delhi was opened. Bombay is rated among the 10 best hotels in the world The founder of the house of Tatas. Fisherman’s Cove was built which is 30 minutes drive from Madras on the Bay of Bengal with a Private Beach. .. which created the Taj Coromandel in Madras. In 1978. Mr. the Savoy Hotel in Ooty and the Raj Mahal Palace in Jaipur and the Taj View Hotel in Agra.with several Hotels abroad also. The Shiv Nivas Palace at Diaper and TAC (Taj Air Caterers) in New Delhi Airport were also opened. Catering to both domestic and international flights.
To name the few are Orient Express. The Taj Group includes business hotels. the event was described as “a resplendent debut” by The Times. In addition to its admirable luxury hotels. beach resorts. Each Deluxe Business floor room is a modern business centre. 10 minutes from the Airport. This growth has been as diversified as it has been impressive. today Taj has 50 Hotels of which 48 are operational. The Taj group uniqueness lies in the sum of its parts in providing a living heritage of India. as a part of Rs. All Luxury Hotels now have renovated rooms.300 crore upgradation programme. a state of the art Business Centre and a modern Fitness Centre. . one finds congenial atmosphere of true business hotel coupled with local handicrafts and a special emphasis on cuisine. London. garden retreats and other comfortable accommodation. palace. everything that one wishes is available round the clock Taj Palace hotel including the finest cuisine in town. plus on line accessibility to world business information is available. together with superlative comforts and its modern facilities. and does so with such complete style. The Taj Group also has properties in key cities like London. Taj Palace has 421 rooms and suites. On request in-room fax. taking residence with The Taj Group has been a grand occasion. It is ideally located. Earlier. When The Taj Mahal Hotel. Taj Palace is Luxury Hotel under Taj Group of Hotels. Taj is only the only hotel group that knows India and South Asia so well. Mumbai. Oman and Srilanka and the Taj Empire continues to expand further. So too is their exclusive club floor rooms. There are six Luxury Hotels which offer a whole of elegant living and upto the minute business amenities. 38 destinations and is the largest Hotel chain in the country. Talking about Internationally. Handi and My Kind of Place(Discotheque). 10 minutes from down town situated amidst 6 acres of landscaped greenery. inaugurated in the 1903. Washington DC Chicago and also at locations in the Middle East and in African states. the Maldives. Taj Palace hotel offers convenience and gentle ambience. 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. The Tea House of the August Moon. There are 20 Taj Leisure Hotels out of which 16 are in India and 4 are abroad.CRM in Hotel Industry 49 Taj has been operating in the USA. All of these things combine to make The Taj Experience a must. New York. The hotel combines attractive functionality with style in a peaceful symbiosis. In Taj tradition. There are six restaurants and a bar in the hotel to offer its guests. Laptop computer. The Taj group also has eight Business Hotels spread over different corners of the country. E-mail facility. Isfahan. background information on major Indian industries. the UK. Within quiet reason.
excluding taxes. Gold and Silver card members of the Taj Inner Circle also enjoy a host of privileges like easier check-in check-out formalities.2.000 (INR). allows guests to earn points whenever they stay or dine at The Taj. excluding taxes. spend Rs. Customers/Guests join at the Blue level and start earning on their stay or dining or both expenses at all Taj properties. About the Taj Inner Circle The Taj Inner Circle has three membership levels – Blue. updating and redemption of points.80 spent. Silver and Gold. in any continuous period of 60-days.e. and palaces.CRM in Hotel Industry 50 DIFFERENT REWARD PROGRAMMES OFFERED BY TAJ GROUP OF HOTELS TO ITS CUSTOMERS/GUESTS 1. Taj Epicure Plan The Taj Epicure Plan is an optional add-on dining plan to the Taj Inner Circle. Members of the plan receive a "Smart" membership card for instant recording. Guests can then redeem their points for specially selected rewards like complimentary stays at Taj hotels. an optional add-on to the Taj Inner Circle. Taj Inner Circle Taj Inner Circle. at participating Taj restaurants in India. To qualify for the Taj Inner Circle Silver membership level.00. will be automatically upgraded to Gold status. 3. Members earn Epicure points for expenditures incurred on food and beverages. discounts and priority wait-listing. resorts.000 (INR). About the Epicure Plan The Epicure Plan. Gold card members enjoy enhanced privileges and accumulate points at a faster rate i. in continuous 12-month period. . excluding taxes. is an exclusive dining plan that offers Taj Inner Circle members special privileges and rewards for expenditures incurred on food and beverages. 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. 2.25. at participating Taj restaurants in India.e. 4. they earn at the rate of 1 point for every Rs. customer need to accumulate 250 points in any continuous 60-day period i. the frequent guest programme. Members who spend Rs.
Alternatively. 2500. one enjoys all the privileges extended against the Taj Inner Circle Silver level membership. 5. in more than one way: o o o o o Customers will be greeted with flowers & fruits in their room Check-in & departure formalities will be easier. Hyderabad Free couple entry to the following Taj discotheques on Sundays: •Incognito. Points Redemption . which is payable by credit card. In addition. Free couple entry to the following Taj discotheques on Wednesdays: •Insomnia.CRM in Hotel Industry 51 Non-Taj Inner Circle members who wish to enroll on to the Epicure Plan will receive a complimentary Taj Inner Circle Silver membership.Taj Krishna. guests can make payments in cash when applications are made directly at Taj hotels. or demand draft (Drawn in favor of “Indian Hotels Company Limited”). cheque. the member also receives the following benefits.The Taj Mahal Palace & Tower.Taj Bengal. From the moment customer check in at any of participating hotels. Membership is available at an annual fee of Rs. they will be treated as a very special guest. Delhi Free couple entry to the following Taj discotheques on Saturdays: •T2.Taj Palace Hotel. Enhanced benefits for Epicure Plan members As a Silver level Epicure Plan member. customers enjoy a host of privileges that have been created to enhance customer’s experience at the Taj. Mumbai •My Kind of Place. faster & flexible Receive special discount on rooms at Taj leisure hotels Avail of double occupancy at no extra cost Entitled to a priority wait-list. Kolkata BENEFITS THAT CUSTOMERS ENJOY AS A SILVER & GOLD MEMBER In addition to rewards.
CRM in Hotel Industry 52 Epicure points can be redeemed to settle stay or dining bills at participating Taj hotels in India. Members can even entertain or holiday at exotic Taj hotels in exchange of Epicure points. Participating Taj hotels or restaurants can close out bookings for these redemptions. Taj Epicure Diners Club Card: Experience the art of fine living with this exclusive card. Jaipur. Epicure points cannot be earned at this hotel. guests can receive exclusive benefits across 43 Taj properties and over 200 Taj restaurants. Redemptions for holidays are subject to availability and prior reservation. . Points will be instantly deducted from the accumulated points in the membership account. Please note that only Inner Circle points can be accumulated at Rambagh Palace.
o Rapid Responce Priority required requests are tracked and solved. software. This increase provides a minimum of 5% increase in revenue. staff performance tracking. Example of CRM Implementation This is according to VisiGlobe solutions (for CRM):VisiGlobe offers variety of CRM solutions. guest satisfaction in overall hotel performance.CRM and processed. It helps hotels to improve guest satisfaction at least 20%. o Relationship Marketing . This ensures all guest problems are solved before he leaves. Closed issues are instantly closed in the system. Some part of our CRM solutions: o Guest Recognition To know more about guests and to serve better. All available information in PMS are retrieved directly into VisiGlobe. guest request and problems follow-up. o Guest Comment Card Tracking To evaluate and analyze guests feedbacks. Each department manager tracks related issues and if necessary. Guest satisfaction is the most important aspect of CRM approach of VisiGlobe. he can act immediately. department performance tracking.CRM in Hotel Industry 53 Chapter # 6. It has a direct connectivity to PMS . Happy guest returns and advises VisiGlobe is used for guest satisfaction survey.Property Management Software. staff performance and guest satisfaction surveys are tracked. These solutions can be ranged from providing CRM software to providing turnkey solutions including project management. All issue is solved timely. On the other hand. o Incident Tracking Solving problems on time without leaving any un-solved issue. o Improvement Analysis To improve service quality and reduce cost. All reported problem and request are entered into the system and dispatched to runner to solve the issue. services improved and provided seamlessly. training and support. A call center is established. Guest requests are continuously observed.
robust wide area networks and technologically aware hotel guests are all part of the mix that has elevated the art of customer relationship management. For some companies. Having said that.” Think of CRM as a way of life rather than a technology. . Travel and Transportation for Siebel Systems. o Communication Server All requests are delivered to specific person on time via electronic transmission.CRM in Hotel Industry 54 Marketing through guest history analysed with requests and comments. 3. 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. The technology allows us to do it better. Structured databases. 4. James Dunham. additional elements may become equally crucial. but we see these strategic concepts as universal: 1. said. “Our customers apply CRM tools differently depending on their businesses’ drivers. Strategic Elements of CRM:Our experience and research identifies five crucial elements required for a successful CRM initiative in any service organization. 5. A property that has optimized occupancy uses CRM differently than one with low occupancy because their needs are different. o Facilities Maintenance Planned room and property maintenance to offer problem free service. CRM means different things to different companies. general manager. 2. but without effective leadership in the hotel companies and buy-in from line employees it remains only a good idea. Guest recognition Data capture and maintenance Channel integration and consistency Ranking and discrimination Two-way personalized dialogs Let’s examine each of these areas in more detail. Just as customers are unique. companies are unique.
the challenges expand geometrically. the information must be in the hands of line employees. A smiling face.). . but so do the opportunities. If you want to impact service delivery. Capturing. recalling a preferred room type or a welcome back greeting are all common recognition experiences in the hotel industry. When recognizing a customer of the brand more so than of the hotel. retaining and making effective use of expressed customer preferences is the essence of guest recognition. Note Global Preferences denoted by red “G”. but you are able to do something useful for the guest with that knowledge. but that is only part of the story. An essential concept in discussing guest recognition is that of preferences. You are not only acknowledging that the guest has a prior relationship with the enterprise.e. The trick is to get the relevant information in front of the line employees rather than keeping it locked up in an offline analytical database or centralized system not available to hotel personnel. These are all typical recognition interactions between a repeat visitor to a given hotel and a front of house employee endowed with a hospitality work ethic. Figure 1 – GuestWare Enterprise Edition’s Preference entry screen. Many of the multi-brand companies succeed in this area by training reception staff to acknowledge the guest’s participation in the multi-brand frequency program (i.CRM in Hotel Industry 55 Guest Recognition Recognition means many things. I have your frequency program number on your reservation.
A crucial consideration in capturing data is to make sure that you have vehicles for data input from all plausible touch points with the guest.wequassettinn. As time goes on. but not the center city property. you must limit the number of preferences you are willing to track to some number that can be communicated across the enterprise.hotelinfosys.com). Each week the management team reviews the profiles of returning guests prior to arrival and takes action accordingly. Property-level personnel must have both a means and an incentive to capture relevant data about a guest’s expressed preferences.com) sends lifestyle data capture forms out to past guests during the off-season. Yet it also supports the capture of local preferences. The GuestWare Enterprise Edition (www. Some Wequassett guests actually get items added to the dining room menu specifically for them based on management using the captured data effectively. the Wequassett Inn of Chatham. Data Capture and Maintenance In order to present information about a guest’s preferences to a guest service agent.CRM in Hotel Industry 56 A corollary conclusion is that in order to manage preferences effectively.guestware.com) offers an interesting enhancement to this strategy: The platform stores and communicates global or universal preferences for the guest across all hotels in the company (smoking or newspaper preferences. (www. for example). unique to the individual property. you first have to capture it and scrub it. . Taking this approach to a deeper implementation than most hotels. so that a preference of room away from snowmaking appears at the ski resort. you also need to maintain it. The responses are added to the guest history records in the resort’s Lodging Touch property management system (www. Mass.
offers a broad range of data quality and CRM tools to optimize the mailability of every record in your system. well established in the gaming segment of the industry. The key thing for the hotel company is to ensure that the guest receives the same recognition and differential treatment no matter what channel they prefer to use to interact with the firm.micros. Standardized data is crucial to support effective house holding (the process of matching similar records into a single customer master record or into creating a new master). to identify people that have moved and told the postal service. Just as we strive to offer consistent rate and availability from all channels. . Finally. notably M I C R O S -F i d e l i o (www. a Toronto-based provider of an integrated propertylevel platform extending to spa management and ski lift ticketing as well as the more typical PMS/ POS functions. Group 1 Software (www. Some travelers would prefer to speak to a live reservations agent. As long as the Web-based front-end systems are integrated into the other systems (PMS and CRS for example). but not you. A related requirement is NCOA matching.com). whether at the property or in the central reservations office.springermiller. Some are shrink-wrapped and some are large-scale mainframe applications. we must strive for consistent guest recognition from all channels. A new entrant to the market includes Enablez (www. as we work for channel integration in guest recognition.com). this is a good thing for the hotel enterprise. (And you always wondered how that pesky CD club keeps finding you…) A number of software vendors offer licensed or hosted solutions to data hygiene challenges.com) and Springer-Miller Systems (www. guest profiles and preferences change over time.com). Likewise. Channel Integration and Consistency Many of today’s consumers prefer to conduct transactions over the Internet. A complete CRM strategy needs a vehicle for updating the profile accessible to both the guest and to staff.g1. Integrating many of the various hotel management functions at the database level is one strategy that has been attempted by several industry stalwarts.CRM in Hotel Industry 57 Scrubbing data means standardizing the address and other crucial fields to ensure mailability. periodically passing records through the National Change of Address database. so must we reach for it in service delivery.enablez.
recency/frequency/ money (RFM) scores or simply number of room nights.or low-value guest at the right moment in order to cross-sell or upsell them.” Figure 3 – Screen shot from http://www.com) MAGIC (Marketing And Guest Information Center) effectively links the CRS. and less in the others.com/member/Profile. This integration delivers a single. Siebel’s Dunham said.cfm.mesuite. There are any number of ranking methods available to the industry. the Web front-end of Manhattan East’s MAGIC product. This strategy is perhaps the most difficult element of CRM for hoteliers to accept.mesuite. you must include a multi-channel strategy to advise the agent on the right product bundle at the right price to that high. there are certainly toxic customers that are simply bad for your business and you want to make sure they don’t come back. Ask any casino about their black-list policies…certainly a legitimate form of CRM in action.CRM in Hotel Industry 58 Another approach is to utilize best-of-breed applications with robust interfaces. Furthermore. “Whatever scoring metric makes the most sense for your organization. While the grand tradition of hospitality is to value every guest and deliver outstanding service to all of them. integrated view of the customer and his needs across all 10 hotels and all customer touch points. CRM database and the Web site (see figure 3). Manhattan East Suite Hotels’ (www. in practice it simply isn’t possible. Ranking and Discrimination Some customers are worth more to your business than others and you need to invest more of your scarce resources in the most valuable customers. PMS. That is one way a complete CRM strategy drives top-line revenue. but it is absolutely essential. showing deep integration . among them frequency program production.
and offer them enhanced services as well. . and also the ability for the guest to maintain his own profile.CRM in Hotel Industry 59 of CRS. These dialogs serve both to reinforce the connection between the firm and the customer and to provide opportunities for more information and sales with the customer. Rather than relying on mass-market advertising or segmented newsletters to members of a frequency program. Part of your CRM strategy needs to be a means of ranking your guests to identify the most valuable and then servicing them differentially. PMS. you also want to identify low-value customers who are potentially better customers. Most of these communications include a tangible and specific call to action. CRM and Web site. By extension. encouraging the customer to do something with the communication. with content specifically about the customer’s interests and preferences. this element pursues personalized communications with customers as individuals. Two-way Personalized Dialogs This area is perhaps the most exciting and potentially rich CRM strategy active today. thus establishing a two-way dialog.
From this study. CONCLUSION AND RECOMMENDATIONS CONCLUSION Implementing an effective CRM solution is not complex. 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. Other benefits extended to the loyal clients of ITC include Welcome Award. CRM and relationship management has been considered to be a single function. this leads to measurable & substantial returns to the hotel. Welcomlink. This helps in providing quicker and more customized solution to queries and complaints. Traditionally.CRM in Hotel Industry 60 Chapter # 7. ITC HOTELS At ITC. Sheretonplus which are aimed at rewarding the regular clientele of their patronage and building a better relationship with them. the marketing department at The Oberoi is now focusing on building co-operative and collaborative relationships with the customers . building a superior brand image and turning them into loyal patrons. reservation systems and call centers to maintain a data bank of their customers and to access the information as and when needed. Adequate planning. Ultimately. 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. the management has identified ‘data capture vehicles’ or ‘touch points’ (as they call it) . stakeholder involvement and mistake avoidance will ensure that your initiative gets off the ground easily. Oberoi and Taj are following organized and well established CRM practices. 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. we can conclude that all the three leading hotels – ITC. but to maintain its market share and fight the competitive situation.like loyalty programs. effective communication. at The Oberoi.
The CRM programs at the Oberoi include The Oberoi Plus for the customers and also for the Bookers to motivate them. The challenge is to balance between the long-term goals and short-turn gains. Relationships. able to charge a premium for the value given to the customers. Strategic bundling of services is a useful methodology in this context. and are. CRS and CIS to keep track of customers’ profiles which includes information such as their spending patterns and their special needs also. and it takes a great amount of maturity and courage to handle the 'lows'. Relationships provide 'security'. and work in an atmosphere of mutuality and trust. Some key learning’s are: Long turn. rise above the 'transaction' approach. 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. They even have an SMS service to keep track of lost/missed calls by the customers while they are away.CRM in Hotel Industry 61 with the result that they have a loyal patronage from their guests. The Oberoi also organizes Food Festivals regularly and sends invitations to its regular clientele and the top CEOs. They have employed applications like PMS. The Taj gives high priority to guest satisfaction. They employ data mining technique to get and act on data and also give credit to the employees who get compliments from the guests. goes through ups and downs. the service provider and the customer. MDs and business people to further enhance the CRM functions’ effectiveness. 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. thus. like real life. .
4. the employees.CRM in Hotel Industry 62 Top management must be committed to the relationship. lower operating costs. wallet services. 3. 1. meal preferences. Having Guest History programs. RECOMMENDATIONS In this era of globalization where ‘Customer is the King’. as their example is followed throughout the organization. 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. 5. club surveys. Employing effective CRM software to improve guest satisfaction.e. Customer Relationship Management is one of the key tools to fight this cut throat competition and stand out as a superior brand. Surveys: Conducting monthly guest/customer surveys. amenities preferred. . Keeping regular track of the sales data for further leads and followup 6. build guest loyalty. customer expectations are going up which is making the situation more and more competitive. Taking feedback not only from external customers but also the internal customers i. 7. especially where quick responses are required. special requests. Maintaining suggestion boxes at every touch point/point of interaction with the customers. As the product is becoming generic in nature. I would like to recommend some suggestions which could be implemented profitably by the industry. say by employing Mystery Customers.keeping a databank of customer profiles along with such details as room preferences. the hotel industry can no longer rely on the traditional marketing strategies to retain the customers. Cross functional teams are required to meet the goals. and increase revenues. On the basis of the study.. room comment cards. Proper check on the hotel staff’s and processes’ efficiency by the management. sending birthday cards to the loyal guests and even their spouses and giving them a hassle-free check-in procedure-like sending them pickup and drop facilities. 2.
Employing an efficient system of complaints handling as complaints are the opportunities to improve. Giving recognition awards to attract old customers. to impress the customers and to turn complaining customers into loyal ones.CRM in Hotel Industry 63 8. 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. . 9. 10.
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