RELATIONSHIP MANAGEMENT

PRACTICES IN HOSPITALITY
INDUSTRY
(A Study of Hotels and Restaurants in Calcutta)

By: MANDEEP KUMAR-10902564-A-03

SUMIT WALIA-1090-A-04
VIKAS KUMAR-1090-A-07
AMULDEEP SINGH-1090-A-08
RISHIKESH-1090-B-25
DATE OF PRESENTATION-20TH JAN,2011
INTRODUCTION
 Strategies implemented by Hospitality Industry
for maintaining effective Customer
Relationship

 People , Ambience and Process.

◦ Intangibles – Services , ambience
◦ Tangibles - Food & lodging
 HOTELS
Customer Interaction for longer
duration
Responsive , Empathy and
assurance are the essential
components
Entry & exit barrier are higher
Business majorly comes from
transient population
RESTAURANTS
--shorter duration
Responsiveness may be single
component
-- lower
Affluence, age composition, local
population and support from
business houses are decisive
factors
OBJECTIVE OF THE STUDY

 To measure and analyze the factors contributing

for the success of relationship with the customers
in the hospitality industry.

Framework used:
Planning ----- Implementation -----Control
The Study responds to the following
Research Questions:
 RO1 - Segmenting and Targeting
 RO2 - Quality Management
 RO3 - Demand Management
 RO4 - Product Innovation
 RO5 - Overall Experience to customers
 RO6 - Customer Handling
Methodology
 Sample Size :
 Hotels - 4
Restaurants - 15

 Sampling technique - Purposive Sampling

( based on the popularity)
Information source - Primary source
FINDINGS
 Relationship Management – Restaurants
 No formal planning was done for segmentation and
targeting the customers
 No concept of ARGE was followed for Demand
management
 No benchmarking and High turnover of employees
reduced quality
 Nearly all of them were loosing on the terms of product
innovation and were appeared to be imitated
 Ambience and Infrastructure was distinctive and unique
in few restaurants
 No formal cell for customer handling and customer
feedback was there. Reactive approach and no follow up
Relationship Management – Hotels

 Segmentation and targeting was done on the basis of

price and services. More focus on local young
generation.
 Staff at different levels was recruited from hotel
management Institutes, Standard operating procedure
and benchmarking , were pointing at satisfactory level
for Quality management
 The challenge was in managing lean demand.
 Product innovation in the form of offering excitement,
entertainment, separate pub and disco
 Little experiment with cuisine. Tradeoff in investing
between tangible and intangibles
 Complaint handling cell seems to be Reactive. Less focus
on relation management.
Conclusion and Recommendations
 Hotels were doing fairly well as compared to the
restaurants with respect to different parameters.
 Both need to adapt certain principles of Customer
Relationship Management.
 Restaurants need to deliver value exchange for its
customers
 Restaurants need to improve operational excellence and
experiential management.
 Emotional connection with the customer
 Need to adopt Proactive Approach
 Follow concept of Analytical CRM.
Thanks