Project Hotel Semi Final

8/8/2019 Project Hotel Semi Final

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Chapter # 1. Introduction to the Project TopicQ1 A Brief Overview of CRM [definition, importance,

strategies and activities involved, ]

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 streamlineprocesses that impact customer loyalty, service delivery and qualitymanagement.Today, businesses are facing an aggressive competition and they have tomake Efforts to survive in a competitive and uncertain market place. Peoplehave realized that managing Customer relationships is a very importantfactor for their success. Customer relationship management (CRM) is astrategy that can help them to build long-lasting relationships with theircustomers 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 aninterruption to our work but the purpose of it. He is not an outsider; he is apart of it. We are not doing him a favour; he is doing us a favour by givingus an opportunity to serve him. (By Mahatma Gandhi)It has grown mainstream and is being implemented in a wide range ofcompanies 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 theintersection of genuine market need and enabling technology. And, in thisgrowth period, the impetus for CRM is shifting from an emphasis onefficiency, i.e., doing more things faster with less cost, to effectiveness, i.e.,doing things better for increased revenue with a high "return onrelationships (ROR)".


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According to Chaudhuri and Shainesh (2001)-A CRM programmer requiresa clear understanding and commitment to the company's customers,vigilant adherence to detailed goals, commitment from both executives andline workers, and a constant awareness of the customer's view point.Customer relationship management is about more than simply managingcustomers and monitoring their behavior or attitude. CRM has the potentialto change a customers relations with a company and increase revenues inthe bargain. Furthermore it helps to know the customers well- enough todecide whom to choose and whom to lose.The objective of CRM (customer relationship management) isto recognize and treat each and every customer as anindividual. It is very essential forany business to know that how todifferentiate customer treatment according to an individual preferences. Fordifferentiate customer treatment, the companies use personalized serviceand customized products which make some customers feel special andothers simply appreciate good behavior. It humanizes their purchase orservice request or complaint. Personalization and customization doesntmean 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 businessrelationship. The task of getting and retaining customers requires evengreater skill and effort. The business needs to ensure that the service worksas the customer actually wants it to, and the customers want to do businessin 'their' way, not to be forced to do it in the enterprise's way. Mostcompanies consider them customer-focused and believe that in being sothey are servicing the customer. But eventually, being customer focusedmeans to have a consistent, dependable and convenient interaction with

customers in every encounter. CRM technologies focus on managing allinteractions that an organization has with its customers, in order to leveragethe data in a variety of business applications.Where a profitable relationship already exists, CRM can especially boostsuperior service at a lower cost. In addition to this it helps to servecustomer's unspoken needs.


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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 customershave not taken care of, but which, it would have satisfied will lead tohigher customer loyalty. CRM, if practiced properly might lead to cross-selling and up selling of products and services. Cross-selling means sellingthe 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 couldhave, due to the non-attainment of his expectations regarding the productor 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.

2.1 Evolution of CRM

Customer Relationship Management (CRM) is one of those magnificentconcepts that swept the business world in the 1990s with the promise offorever changing the way businesses small and large interacted with theircustomer bases. In the short term, however, it proved to be an unwieldyprocess that was better in theory than in practice for a variety of reasons.

First among these was that it was simply so difficult and expensive to trackand keep the high volume of records needed accurately and constantlyupdate them.In the last several years, however, newer software systems and advancedtracking features have vastly improved CRM capabilities and the real


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promise of CRM is becoming a reality. As the price of newer, morecustomizable Internet solutions have hit the marketplace; competition hasdriven the prices down so that even relatively small businesses are reapingthe benefits of some custom CRM programs.2.3 Advances in the 1990s

In the 1990s companies began to improve on Customer RelationshipManagement by making it more of a two-way street. Instead of simplygathering data for their own use, they began giving back to their customers4

CRM in Hotel Industry

not only in terms of the obvious goal of improved customer service,

but in

incentives, gifts and other perks for customer loyalty.This was the beginning of the now familiar frequent flyer programs, bonuspoints on credit cards and a host of other resources that are based on CRMtracking of customer activity and spending patterns. CRM was now being

used as a way to increase sales passively as well as through activeimprovement of customer service.2.4 About Customer Relationship Management - CRM

The generally accepted purpose of Customer Relationship Management(CRM) is to enable organizations to better serve its customers through theintroduction of reliable processes and procedures for interacting with thosecustomers.In today's competitive business environment, a successful CRM strategy

cannot be implemented by only installing and integrating a softwarepackage designed to support CRM processes. A holistic approach to CRMis vital for an effective and efficient CRM policy. This approach includestraining of employees, a modification of business processes based oncustomers' needs and an adoption of relevant IT-systems (including soft-and maybe hardware) and/or usage of IT-Services that enable the


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organization or company to follow its CRM strategy. CRM-Services caneven redundant the acquisition of additional hardware or CRM software-licenses.The term CRM is used to describe either the software or the wholebusiness strategy oriented on customer needs. The second one is thedescription which is correct. The main misconception of CRM is that it isonly software, instead of whole business strategy.Major areas of CRM focus on service automated processes, personal

information gathering and processing, and self-service. It attempts to

integrate and automate the various customer serving processes within a

company

2.5 Importance of CustomersThere exists a wide-spread mistaken notion that CRM is some kind of amanifestation of technology only. Another interesting thing is that eventhose who have implemented highly technological installations for theirCRM initiatives, quite often can be seen to have forgotten the basis of thismodern concept, i.e., making profitable relationships with their customers.

This significant part is left to the technology alone (Schneider and Bowen,1999). Such a situation arises mainly because of the inability or reluctanceof the management to accept the importance of customers and servingthem to keep them satisfied and happy, which otherwise may result in lowsales and hence low profits. "One widely accepted marketing rule-of-thumbclaims that the average, unhappy customer tells eight other potentialcustomers about his negative experience." (Lemon, et al, 2002)6

CRM in Hotel IndustrySome decades ago, most of the companies concentrated mainly on higherproductivity through higher levels of efficiency of employees as well asmachines, cost-reduction tactics and on attracting more customers throughthe classic marketing tactics such as TV advertisements, mass mailings, billboards etc. But the sudden growth and expansion of services sector proved


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that these would not convert into profits, as was expected. Moreover, theemergence of faster, cheaper and more efficient systems ofcommunication, transport and information technology has made thebusiness enterprises realize that the competition is just a mouse click away.These changed, new environment of business unveiled the importance ofkeeping the existing customers loyal so that they would not switch over tothe competition, without much thinking. This led to the increased awarenessof companies about the importance of serving the customer needs with ahigher level of quality and in a way which is convenient and beneficial toboth the companies and the customers. (Anton, 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 offeredby that particular business, certainly for something in return, generally aprice. When a customer pays a price, he expects some specific thing with aspecific quality and features. If his expectation exceeds what he has beengiven, it leads to an unsatisfied customer. If the offer exceeds hisexpectations for a stipulated price, it leads to a highly satisfied customerand he is said to be enjoying customer delight.Today, the customer has more choices to choose from. So it is more likely

for any customer to switch from one company to another in search of betterquality or service. But the companies have found out that creating newdemand i.e., finding out new customer is much costlier than keeping theregular demand, i.e. Existing customers for a regular inflow of cash andhence profits. "The reports on new customer acquisition costs vary, from aslow as three times to as high as thirteen times of servicing an existingcustomer." (Berry, 1983)In a customers viewpoint, there is very little reason to switch loyalties often,

if things are going comfortably with the existing vendor and the level ofservice is good. Switching involves changes and disruptions in servicelevels that most regular customers try to avoid. Realizing these facts in itstrue sense, many companies have stuck to making long-term profitablerelationships with their prospective customers. (Hart et al, 2002) And thishas been proved to be, in a way, mutually beneficial to both the parties.


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This has resulted in managing these relationships as a strategic tool and inthe evolution of Customer Relationship Management or most commonlyknown as CRM.

2.7 Industry Definition Abbey (1999) proposes a hotel industry in a primarily a service sectoremphasis in given on the role played by relationship marketing. You arenothing without our customers understanding that your organization existsfor no other reasons than to meet customer needs and expectations. Itsimperative is to develop proactive methods for understanding whatcustomers like and dislike. If you believe other wise, just look behind you atthe long queue off competitors lined up and waiting for the opportunities to

prove you wrong.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, sales and service

processes. CRM applications can enable effective customer relationship

management, provided that an enterprise has the right leadership,

strategy

and culture. (Anton, 2005)

In hospitality, each customer relationship has value and should bemanaged effectively. There is opportunity for repurchase andrecommendation from each past customer. The administration of theinformation about this past guest and the effective integration of theinformation into frontline guest services programs is the challenge of CRMimplementation.

Tactically, where does CRM start? The recommended implementation ofcustomer relationship management typically looks like (Hart et al, 2002):Statistically valid customer satisfaction measurement:From the very top of the organization, there should be a commitment toCRM including customer satisfaction, employee satisfaction and a desire tohave one voice to the customer.


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Advantages of CRMUsing CRM, a business can:-

Provide better customer service Increase customer revenues

Discover new customers

Cross sell/Up Sell products more effectively

Help sales staff close deals faster

Simplify marketing and sales processes

Improvement Analysis - Implement Process Improvement

Industry surveys show that guests are less likely to return if they experiencea problem during their stay. Guest Wares Improvement Analysis toolsprovides with the information to eliminate recurring problems and keepguests coming back, so to lower operating costs and increase guestsatisfaction at the same time. (Raghunath & Shields 2001)Comment Card Tracking - Listen to your Customers

Customer survey on restaurant or an extensive questionnaire of guests, theGuestWare Comment Card Tracking system assists to manage customer

feedback. Guest Ware will improve productivity in the follow-up process andprovide valuable management reports to maximize the benefits of yoursurveys.Guest ware Enterprise Solution For Effective Means

Intended for hotel chains, brands and management companies, theEnterprise Guest Ware database maintains a single view of the customeressentials for CRM. Enterprise Guest Ware enhances propertymanagement systems (PMS) and central reservations systems (CRS). Itallows hotel companies to implement enterprise CRM while leapfroggingexisting hotel technology investments.Communications Server - Two-way Messaging

The Guest Ware Communication Server integrates two-way messaging (orother types of text-based messaging) with Guest Wares Rapid Response.


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It allows staff to receive and close requests and maintenance issues from apager or cell phone. The software helps streamline service delivery anduses existing e-mail systems or a modem to communicate with most two-way messaging devices.With the latest offerings in CRM, 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, allowingemployees and guest-facing technology to deliver greater value to

theguest/customers.

Generate a realistic profile on the spending and stay patterns of

guests, allowing the property to create guest-centric marketing for

increased loyalty and spending.

THEPROCESSOF CRM IN PLACESTEPS INTHE

CRM PROCESSThe first step in CRM is for the internal customer that is to createawareness among them towards the concept, advantages anddisadvantages of the function. Then equip them by training in their ownrequisite functions & scope of CRM within that function. At Maurya, they aretrained to learn more about the guest and his background so that when hetalks to the guest, he can strike a conversation that is of some interest to

the guest. That may not be necessarily related to his stay at the hotel butthese informal conversations with the guest can help build an excellentrapport with the guest which will lead the guest to know the employee bythe name. In future interactions, it is possible that the guest may only wishthat most of his work done through that employee. This is also a form ofcustomized and personalized selling within the hotel.


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Maurya does not have a separate training for CRM. Any time when theyhave a special promotional scheme for a particular property, the marketingteam (which has formulated the promotional scheme) puts together thedetails of the scheme, clearly marks out what is the customer expectingfrom the property and also if these are some special arrangements to bemade for it. This team briefs the General Manager of the property about thecustomer expectation. The General Manager then decides the path oftrickling down to that information, who should know & how much to know. InMaurya Sheraton, they use a phrase to explain this percolation which isNice to know and needs to know which essentially means that it is nice toknow for all employees of a particular property about the running of the

promotional scheme at their property but not all need to know about everyaspect of the scheme as it may not be relevant to their scope of work butthey do need to know the tier points of the scheme relating to their scope ofwork.

The second step in CRM process is to integrate the informationwhich is received through touch points. From a marketing point of view, it isimportant to get the desired input back from touch points in such a way thatall 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 theright product to the right customer and that too at the right time. All this isdone by creating a data base.

ACTIVITIES UNDERTAKEN WITH RESPECTTO CRMDATA CAPTURE VEHICLES

Maurya Sheraton has identified 5 such vehicles (from marketing point ofview) which are also the touch points for the hotel in the process ofmanaging its Customer Relationship. These vehicles are:-o Field selling

o Loyalty Programso Distribution Points


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o Web

o Call Centers

FieldSelling

When a sales group or a marketing executive of the hotel makes a sales

call to a corporate, then it is called Field Selling. Field Selling includesProspecting which means searching and seeking for new customers.Current Accounts are one of the best sources to uncover new business thatis within these current accounts, as they harbor many sources of untappedbusiness potential. They also provide Leads and referrals. Leads arepotential customers with whom no contact has yet been made and learningof potential customers from current customers is called Referral. Fieldselling is considered the most important vehicle for the CRM function as theinitiative is on the part of the hotel to contact the prospective guest. Sincethe representative of the hotel meets the customer personally, he is able tostrike a chord instantly and has a fair chance of representing the hotel. Thedifference between the customer and consumer is apparent at this stageas, the person who uses the hotel is a consumer (guest) and the personwho helps him make this choice is the customer (link), this link, in mostcases, is the administration personnel who are responsible for making

reservations. So with the help of field selling, the executive is able to makea direct contact with the link, the administration person and is able to takethe feedback on a continuous basis and helps to customize the offering.The main objective of this is to maintain one to one contact with thecustomer on a regular basis and also to maintain reasonable visibility sothat whenever there is a requirement, the hotel is the most obviousalternative for the customer to consider.39


Loyalty ProgramsSecond vehicle for CRM identified by Maurya Sheraton are the LoyaltyPrograms. These programs are designed to reward the loyal guests of thehotel. Every time a guest checks in the hotel at his every touch point or


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interface with the hotel, every time he spends on a service provided by thehotel (use of Room, Restaurant, Laundry, Telephones etc.), the transactionis recorded at each individual point and is added to the final bill presentedto the guest at the end of the stay. There are certain points attached to thenumber of rupees spent by the guest. Therefore higher the amount of thebill, the higher will be the number of points attained by the guest. Thesepoints are credited to the account of each guest with the help of technology.These are called Loyalty points. These accounts having the loyalty pointsare unique to every guest. Therefore, whenever after the first time thatguest checks into the hotels, the guest history also affects the loyaltypoints. The higher the number of points, more loyal is the guest. The points

can be redeemed by the guest for either free stays at the hotel or free giftsas listed by the hotel or free meals depending upon the number of pointsaccumulated.The objective of having a loyalty programme is not only to make the guestfeel rewarded for his stay but also providing a chance to the guest toreduce them at the hotel, they essentially gross self the other serviceswhich would be used & paid by the guest. In case he redeemed (forexample) his points for a free stay, he would spend on the supporting

services like laundry, telephones, restaurants etc. and the revenuegenerated from these could be earned by the hotel. Therefore, instead ofloss of revenue by providing free stay, they actually gain the revenue aswell as certain customers for life with the help of the loyalty. The LoyaltyProgram is called welcome avail which is for the consumer. They haveanother loyalty programme for the link. The administration personnel, whois called welcome link, is motivated to provide more business to the hotel.Therefore, the more the number of bookings the links gives to the hotel, the

more number of points are credited to his accounts which are againredeemable at the hotel either by way of free stay or gifts. This is seen asan important way to keep the source of business motivated towards a longterm relationship.

Distribution Points/ Central Reservation System


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A customer can simply make a call at the reservation centre to make abooking with the hotel. It sounds simple but it could get complex in case hedoes not receive the expected or the desired response. Therefore, MauryaSheraton sees this distribution point as an opportunity to establish CRM asthe respondents at the reservation centre could turn a prospective customerinto a sale or could let go off the opportunity to do so by not40


being polite enough or not giving out the information as desired by theguest. The information regarding all guest reservations is managed throughcomputer software, therefore, when a customer make calls to query about a

reservation, all his hotel usage history pops up in the system which gives achance to the executive at the reservations to instantly recognize thecustomer and address him by his name. This moment of truth isexperienced by the customer with a feeling of recognition and feels it asgood service at the first touch point itself. The input or instruction receivedfrom the customer at the stage is recorded in the reservation system forfurther reference by the hotel operations. Therefore the wheel does not getreinvented every time a standard instruction is to be followed. This leads toremoval of an irritant and that ultimately leads to a satisfied customer willingto return.WorldWide Web

The World Wide Web is part of the internet. It is a computerized, interactive,multimedia system to import and/or access information world wide. It isused for both personal and business purposes. But ITC Mauryas focus ison the business side of using the web. In hospitality, there are several

avenues that one can take up to set up a web site to share information anddo business with a potential customer. Since the web gives a convenienceand allows the access to information at any time, it is considered as one ofthe vehicles for CRM. Though Maurya recognizes the potential of thissystem and is in the process of evolving a filing automated system wherethe reservations can be made by the customers on time and also the


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confirmation is received back on a real time basis. Presently they have aninformation portal which only allows the customer to request a reservationwhich has to be checked manually by the hotel reservations and then onlythe confirmations are given. This is a touch point of customer relationshipbecause a speedy and accurate response could win you a customer. Andsince it is on an individual basis, it is more personalized and customizedbecause the customer puts in his preferences when requesting a booking.Therefore, once it is entered in to the hotels data base the customer doesnot have to repeat his preference as they are automatically suggested bythe reservation form on the net.41

WorldWide WebThe World Wide Web is part of the internet. It is a computerized, interactive,multimedia system to import and/or access information world wide. It isused for both personal and business purposes. But ITC Mauryas focus ison the business side of using the web. In hospitality, there are severalavenues that one can take up to set up a web site to share information anddo business with a potential customer. Since the web gives a convenience

and allows the access to information at any time, it is considered as one ofthe vehicles for CRM. Though Maurya recognizes the potential of thissystem and is in the process of evolving a filing automated system wherethe reservations can be made by the customers on time and also theconfirmation is received back on a real time basis. Presently they have aninformation portal which only allows the customer to request a reservationwhich has to be checked manually by the hotel reservations and then onlythe confirmations are given. This is a touch point of customer relationship

because a speedy and accurate response could win you a customer. Andsince it is on an individual basis, it is more personalized and customizedbecause the customer puts in his preferences when requesting a booking.Therefore, once it is entered in to the hotels data base the customer doesnot have to repeat his preference as they are automatically suggested bythe reservation form on the net.


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TO BE CHANGED AS AVARI

CRM PROCESSATTHEOBEROI GROUP OFHOTELS 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.46


They use a variety of after sales tactics for customer bonding and loyalty. Co-operative and collaborative

relationships with customers seem to be the most prudent way to keep tracks their changing expectations and

appropriately influencing it. The Oberoi has ensured the above by the various end user and booker programs such

as (Starkov, 2006):Top The Oberoi Plus

This is an end-user program with an enrollment fee of Rs.575 only. It is beneficial for guests who use the services ofthe hotel. Each time a guest spends, he accumulates points which can be redeemed for any services of the hotel. By

enrolling and rewarding customers with the help of this program, the hotel ensures that a greater bonding towards

long-term customer retention. They have also tied up with the airlines for interchangeable redemption of points.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 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 FestivalsThe Oberoi conducts various food festivals at its Restaurants. Regularly

and sends invitations to its more profitable Clients.

Tie-UpsThe Oberoi invites top clients like CEO, Managing Directors and key decision makers of different companies to social

evenings specially arranged to further enhance the Customer relationship management functions.


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DIFFERENT REWARD PROGRAMMES OFFERED BY TAJ

GROUP OF HOTELS TO ITS CUSTOMERS/GUESTS

1.Taj Inner Circle

Taj Inner Circle, the frequent guest programme, allows guests to earn points whenever they stay or dine at The Taj.

Guests can then redeem their points for specially selected rewards like complimentary stays at Taj hotels, resorts,

and palaces.2.TajEpicure Plan

The Taj Epicure Plan is an optional add-on dining plan to the Taj Inner Circle. Members earn Epicure points for

expenditures incurred on food and beverages, at participating Taj restaurants in India.3. About the Taj Inner Circle

The Taj Inner Circle has three membership levels Blue, Silver and Gold. Customers/Guests join at the Blue level

and start earning on their stay or dining or both expenses at all Taj properties. To qualify for the Taj Inner Circle

Silver membership level, customer need to accumulate 250 points in any continuous 60-day period i.e. spend

Rs.25,000 (INR), excluding taxes, in any continuous period of 60-days. Members who spend Rs.2,00,000 (INR),

excluding taxes, in continuous 12-month period, will be automatically upgraded to Gold status. Gold card members

enjoy enhanced privileges and accumulate points at a faster rate i.e. they earn at the rate of 1 point for every Rs.80

spent, 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, discounts and priority wait-listing.4. About the Epicure Plan

The Epicure Plan, an optional add-on to the Taj Inner Circle, is an exclusive dining plan that offers Taj Inner Circle

members special privileges and rewards for expenditures incurred on food and beverages, at participating Taj

restaurants in India.

Members of the plan receive a "Smart" membership card for instant recording, updating and redemption of points. 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.50


Non-Taj Inner Circle members who wish to enroll on to the Epicure Plan will receive a complimentary Taj Inner Circle

Silver membership. Membership is available at an annual fee of Rs. 2500, which is payable by credit card, cheque, or

demand draft (Drawn in favor of Indian Hotels Company Limited). Alternatively, guests can make payments in cash

when applications are made directly at Taj hotels.Enhanced benefits forEpicure Plan members

As a Silver level Epicure Plan member, one enjoys all the privileges

extended against the Taj Inner Circle Silver level membership. In addition,

the member also receives the following benefits.

Free couple entry to the following Taj discotheques on Wednesdays:

Insomnia- The Taj Mahal Palace & Tower, Mumbai

My Kind of Place- Taj Palace Hotel, Delhi

Free couple entry to the following Taj discotheques on Saturdays:

T2- Taj Krishna, HyderabadFree couple entry to the following Taj discotheques on Sundays:Incognito- Taj Bengal, Kolkata

BENEFITS THAT CUSTOMERS ENJOY AS A SILVER & GOLD MEMBER


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In addition to rewards, customers enjoy a host of privileges that have been created to enhance customers

experience at the Taj. From the moment customer check in at any of participating hotels, they will be treated as a

very special guest, in more than one way:

o Customers will be greeted with flowers & fruits in their room

o Check-in & departure formalities will be easier, faster & flexible

o Receive special discount on rooms at Taj leisure hotels

o Avail of double occupancy at no extra cost

o Entitled to a priority wait-list.

5. Points RedemptionEpicure points can be redeemed to settle stay or dining bills at participating Taj hotels in

India. Points will be instantly deducted from the accumulated points in the membership account. Members can even

entertain or holiday at exotic Taj hotels in exchange of Epicure points.Redemptions for holidays are subject to availability and prior reservation.

Participating Taj hotels or restaurants can close out bookings for these redemptions. Please note that only Inner

Circle points can be accumulated at Rambagh Palace, Jaipur. Epicure points cannot be earned at this hotel. Taj

Epicure Diners Club Card: Experience the art of fine living with this exclusive card, guests can receive exclusive

benefits across 43 Taj properties and over 200 Taj restaurants.

Any future initiatives in improving the

CRM at the company

Chapter # 6. Example of CRM ImplementationThis is according to VisiGlobe solutions (for CRM):-

VisiGlobe offers variety of CRM solutions. These solutions can be ranged from providing CRM software to providingturnkey solutions including project management, software, training and support. Guest satisfaction is the most

important aspect of CRM approach of VisiGlobe. Guest requests are continuously observed, services improved and

provided seamlessly. On the other hand, staff performance and guest satisfaction surveys are tracked. It helps hotels

to improve guest satisfaction at least 20%. This increase provides a minimum of 5% increase in revenue.Happy guest returns and advises

VisiGlobe is used for guest satisfaction survey, guest request and problems follow-up, staff performance tracking,

department performance tracking, guest satisfaction in overall hotel performance. It has a direct connectivity to PMS -

Property Management Software. All available information in PMS are retrieved directly into VisiGlobe.CRM and

processed. A call center is established. All reported problem and request are entered into the system and dispatched

to runner to solve the issue. Closed issues are instantly closed in the system. All issue is solved timely. Each

department manager tracks related issues and if necessary, he can act immediately. This ensures all guest problemsare solved before he leaves. Some part of our CRM solutions:o Guest RecognitionTo know more about guests and to serve better.

o Incident Tracking

Solving problems on time without leaving any un-solved issue.

o Rapid ResponcePriority required requests are tracked and solved.


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o Improvement Analysis

To improve service quality and reduce cost.o Guest Comment Card Tracking

To evaluate and analyze guests feedbacks.

o Relationship Marketing

Marketing through guest history analysed with requests andcomments.

o Facilities MaintenancePlanned room and property maintenance to offer problem free service.

o Communication ServerAll requests are delivered to specific person on time via electronictransmission.

CRM means different things to different companies. Just as customers are unique, companies are unique. James

Dunham, general manager, Travel and Transportation for Siebel Systems, said, Our customers apply CRM tools

differently depending on their businesses drivers. A property that has optimized occupancy uses CRM differently

than one with low occupancy because their needs are different.

Think of CRM as a way of life rather than a technology. Having said that, todays technical possibilities are a crucial

enabler for doing a much better job of embracing our customers than we ever could have in the past. Structured

databases, robust wide area networks and technologically aware hotel guests are all part of the mix that has elevated

the art of customer relationship management. The technology allows us to do it better, but without effective

leadership in the hotel companies and buy-in from line employees it remains only a good idea.Strategic Elements of CRM:-

Our experience and research identifies five crucial elements required for a

successful CRM initiative in any service organization.

For some companies, additional elements may become equally crucial, but

we see these strategic concepts as universal:1. Guest recognition

2. Data capture and maintenance

3. Channel integration and consistency

4. Ranking and discrimination5. Two-way personalized dialogs

Lets examine each of these areas in more detail.

Guest Recognition

Recognition means many things. A smiling face, recalling a preferred room type or a welcome back greeting are all

common recognition experiences in the hotel industry. 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.

When recognizing a customer of the brand more so than of the hotel, the challenges expand geometrically,but so do the opportunities. Many of the multi-brand companies succeed in this area by training receptionstaff to acknowledge the guests participation in the multi-brand frequency program (i.e. I have your

frequency program number on your reservation.), but that is only part of the story. The trick is to get therelevant 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. If you want to impact service delivery, the information must be in

the hands of line employees.

An essential concept in discussing guest recognition is that of preferences. Capturing, retaining and making effective

use of expressed customer preferences is the essence of guest recognition. You are not only acknowledging that the

guest has a prior relationship with the enterprise, but you are able to do something useful for the guest with that

knowledge.


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A corollary conclusion is that in order to manage preferences effectively, you must limit the number of preferences

you are willing to track to some number that can be communicated across the enterprise. The GuestWare Enterprise

Edition (www.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, for example). Yet it also supports the capture of local preferences, unique to the individual property, so

that a preference of room away from snowmaking appears at the ski resort, but not the center city property.Taking this approach to a deeper implementation than most hotels, the Wequassett Inn of Chatham, Mass.

(www.wequassettinn.com) sends lifestyle data capture forms out to past guests during the off-season. The responses

are added to the guest history records in the resorts Lodging Touch property management system

(www.hotelinfosys.com).

Each week the management team reviews the profiles of returning guests prior to arrival and takes action

accordingly. Some Wequassett guests actually get items added to the dining room menu specifically for them based

on management using the captured data effectively.Data Capture and Maintenance

In order to present information about a guests preferences to a guest service agent, you first have to capture it and

scrub it. As time goes on, you also need to maintain it. 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. Property-level personnel must haveboth a means and an incentive to capture relevant data about a guests expressed preferences.

Scrubbing data means standardizing the address and other crucial fields to

ensure mailability. 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). A related requirement is

NCOA matching, periodically passing records through the National Change

of Address database, to identify people that have moved and told the postal

service, but not you. (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. Some are shrink-wrapped and some are large-scale mainframe applications. Group 1 Software (www.g1.com), well established in the

gaming segment of the industry, offers a broad range of data quality and CRM tools to optimize the mailability of

every record in your system.

Finally, guest profiles and preferences change over time. A complete CRM strategy needs a vehicle for updating the

profile accessible to both the guest and to staff.Channel Integration and Consistency

Many of todays consumers prefer to conduct transactions over the Internet. As long as the Web-based front-end

systems are integrated into the other systems (PMS and CRS for example), this is a good thing for the hotel

enterprise. Some travelers would prefer to speak to a live reservations agent, whether at the property or in the central

reservations office.

The key thing for the hotel company is to ensure that the guest receives the same recognition and differentialtreatment no matter what channel they prefer to use to interact with the firm. Just as we strive to offer consistent rate

and availability from all channels, we must strive for consistent guest recognition from all channels.

Likewise, as we work for channel integration in guest recognition, so must we reach for it in service delivery.

Integrating many of the various hotel management functions at the database level is one strategy that has been

attempted by several industry stalwarts, notably M I C R O S -F i d e l i o (www.micros.com)and

Springer-Miller


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Systems

(www.springermiller.com). A new entrant to the market includes Enablez (www.enablez.com), a Toronto-based

provider of an integrated property- level platform extending to spa management and ski lift ticketing as well as the

more typical PMS/ POS functions.

Another approach is to utilize best-of-breed applications with robust interfaces. Manhattan East Suite Hotels

(www.mesuite.com) MAGIC (Marketing And Guest Information Center) effectively links the CRS, PMS, CRM

database and the Web site (see figure 3). This integration delivers a single, integrated view of the customer and his

needs across all 10 hotels and all customer touch points.Ranking andDiscrimination

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, and less in the others. This strategy is perhaps the most difficult element of CRM for

hoteliers to accept, but it is absolutely essential. While the grand tradition of hospitality is to value every guest and

deliver outstanding service to all of them, in practice it simply isnt possible.

Furthermore, there are certainly toxic customers that are simply bad for your business and you want to make sure

they dont come back. Ask any casino about their black-list policiescertainly a legitimate form of CRM in action.

There are any number of ranking methods available to the industry, among them frequency program production,

recency/frequency/ money (RFM) scores or simply number of room nights. Siebels Dunham said, Whatever scoring

metric makes the most sense for your organization, you must include a multi-channel strategy to advise the agent on

the right product bundle at the right price to that high- or low-value guest at the right moment in order to cross-sell or

upsell them. That is one way a complete CRM strategy drives top-line revenue.

Part of your CRM strategy needs to be a means of ranking your guests to identify the most valuable and then

servicing them differentially. By extension, you also want to identify low-value customers who are potentially better

customers, and offer them enhanced services as well.Two-way PersonalizedDialogs

This area is perhaps the most exciting and potentially rich CRM strategy active today. Rather than relying on mass-

market advertising or segmented newsletters to members of a frequency program, this element pursues personalized

communications with customers as individuals, with content specifically about the customers interests and

preferences.Most of these communications include a tangible and specific call to action, encouraging the customer to do

something with the communication, thus establishing a two-way dialog. 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.

Chapter # 7. CONCLUSION AND

RECOMMENDATIONS

CONCLUSIONImplementing an effective CRM solution is not complex. Adequate planning, effective communication, stakeholder

involvement and mistake avoidance will ensure that your initiative gets off the ground easily.From this study, we can conclude that all the three leading hotels ITC,

Oberoi and Taj are following organizedand well established CRM

practices. They have realized that a happy and satisfied customer is aretained customer and thats the key in creating superior brand equity and


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better returns.

ITC HOTELS

At ITC, the management has identified data capture vehicles or touch points (as they call it) - like loyalty programs,

reservation systems and call centers to maintain a data bank of their customers and to access the information as and

when needed. This helps in providing quicker and more customized solution to queries and complaints, if any and

also helps in building a rapport between the hotel executives and the customer which goes a long way in satisfyingand retaining the customers, building a superior brand image and turning them into loyal patrons. Ultimately, this

leads to measurable & substantial returns to the hotel.

Other benefits extended to the loyal clients of ITC include Welcome Award, Welcomlink, Sheretonplus which are

aimed at rewarding the regular clientele of their patronage and building a better relationship with them.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. Traditionally, at The Oberoi, CRM and relationship management has been considered to be a single

function, but to maintain its market share and fight the competitive situation, the marketing department at The Oberoi

is now focusing on building co-operative and collaborative relationships with the customers60

CRM in Hotel Industrywith the result that they have a loyal patronage from their guests, and are,

thus, able to charge a premium for the value given to the customers.

The CRM programs at the Oberoi include The Oberoi Plus for thecustomers and also for the Bookers to motivate them.

The Oberoi also organizes Food Festivals regularly and sends invitations to its regular clientele and the top CEOs,

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. The Taj gives high priority to guest satisfaction.They even have an SMS service to keep track of lost/missed calls by the

customers while they are away.

They have employed applications like PMS, CRS and CIS to keep track of customers profiles which includesinformation such as their spending patterns and their special needs also. They employ data mining technique to get

and act on data and also give credit to the employees who get compliments from the guests.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.The challenge is to balance between the long-term goals and short-turngains.

Some key learnings are:

Long turn, profitable relationships can be built when both, the serviceprovider and the customer, rise above the 'transaction' approach, andwork in an atmosphere of mutuality and trust.

Relationships, like real life, goes through ups and downs, and it takes a

great amount of maturity and courage to handle the 'lows'.

Relationships provide 'security'. Strategic bundling of services is a usefulmethodology in this context.

Top management must be committed to the relationship, as theirexample is followed throughout the organization.


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Cross functional teams are required to meet the goals, especially wherequick responses are required.

RECOMMENDATIONS

In this era of globalization where Customer is the King, customer expectations are going up which is making thesituation more and more competitive. As the product is becoming generic in nature, the hotel industry can no longer

rely on the traditional marketing strategies to retain the customers.Customer Relationship Management is one of the key tools to fight this cut

throat competition and stand out as a superior brand.On the basis of the study, I would like to recommend some suggestionswhich could be implemented profitably by the industry.

1. Surveys: Conducting monthly guest/customer surveys, club surveys,

room comment cards, 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.

2. Maintaining suggestion boxes at every touch point/point ofinteraction with the customers.

3.Taking feedback not only from external customers but also theinternal customers i.e., the employees.4. Proper check on the hotel staffs and processes efficiency by themanagement, say by employing Mystery Customers.

5. Keeping regular track of the sales data for further leads and follow-

up6. Employing effective CRM software to improve guest satisfaction,lower operating costs, build guest loyalty, and increase revenues.

7. Having Guest History programs- keeping a databank of customer

profiles along with such details as room preferences, amenities

preferred, special requests, meal preferences, wallet services,sending birthday cards to the loyal guests and even their spouses and

giving them a hassle-free check-in procedure-like sending them pick-

up and drop facilities.62

8. Employing an efficient system of complaints handling as complaints

are the opportunities to improve, to impress the customers and to

turn complaining customers into loyal ones.

9.Giving recognition awards to attract old customers.

10. 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.

Project Hotel Semi Final

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