taj group service sector management project

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PRESENTATION OF SERVICE SECTOR MANAGEMENT WITH RELATION TO SPECIAL

STUDIES OF STAR HOTELS

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VSIT – TYBMS - A NAME ROLL NO.

MAHESH KEELI

RAMESH SELVAM

SNEDEN ANTHONY

DOMINIC GOUVEIA

ZARNA GALA

RADHIKA KANOJIA

ROHIT SHIRKES

RAHUL MUNGEKAR

NISHA GUPTA

Services

“Economic activities between two parties, implying an exchange of value between seller and buyer in the market place”

OVERVIEW OF SERVICE SECTOR

Service Sector in India today accounts for more than half of India's GDP.

According to data for the financial year 2006-2007, the share of services, industry, and agriculture in India's GDP is 55.1 per cent, 26.4 per cent, and 18.5 per cent respectively

Service Includes

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HOSPITALITY SECTOR

•Guests keep coming based on familiarity, consistency etc•Second oldest profession in the world, one should feel at home•Over 46 touch points divided into three broad processes–Pre-booking–Check in/Check out–Stay•Each touch point has a unique process•Each Process is a rigorous training based people processes•Each process is augmented by a connected technology ecosystem

HOTEL INDUSTRY

• WHAT IS HOTEL INDUSTRY?“A place Where Travelers Can Pay for Lodging and

Meals and Other Services on a short-term basis.”Objectives of Hotel Industry• Customer Satisfaction• Health• Safety Environment• To Promote Tourism

STAR RATED HOTELS

5 DELUXE & 5 : LUXURY AT HIGH

PRICE , 27 % GOVT. APPROVED ROOMS

FORMS 30% OF INDUSTRY

BUILT OVER 18000 sq.m AREA

2 & 1 : AROUND TOURIST

SPOT, PREFERRED BY DOMESTIC

TOURIST

4 & 3 : FOR MIDDLE LEVEL

BUSINESS EXECUTIVES/LEISURE

TRAVELLERS

Eg : ITC,TAJ GROUP,

OBEROI GROUP, ITDC

CRITERIA FOR 5 STAR HOTEL RATING

• THE ENTIRE HOTEL IS SPACIOUS AND LUXURIOUS

• EXQUISITE CUISINES THAT CATER TO TASTE BUDS FROM ALL OVER THE WORLD

• SERVICES ARE MORE, FLAWLESS AND PERSONAL ATTENTION TO THE GUEST’S NEEDS

SOME UNIQUE SERVICES PROVIDED IN THE 5 STAR HOTELS

• BUTLERS

• CHAUFFER DRIVEN LUXURY CARS

• PILLOW MENU

• CUSTOMISED SERVICES IN THE IN-HOUSE SPA AND SALOON

• 42” PLASMA TV, INTERNET, FAX, LAPTOPS ON RENT AND MUCH MORE

INTRODUCTION TO THE COMPANY VISITED

TAJ GROUP OF HOTELS

LOCATION OF TAJ HOTELS

• Rating : Five Star• Address:Apollo Bunder, Colaba, Mumbai (Bombay), Maharashtra, 400

001, India.• Accessibility:Centrally located Apollo Bunder and a few kilometres from

CST station makes the task of finding the easy for the tourists.• Hotel Description:The history of Mumbai and The Taj Mahal Palace are

dramatically intertwined. The hotel is Mumbai’s first harbour landmark (built 21 years before the Gateway of India) and the site of the first licensed bar in the city. A treasure-trove of invaluable memorabilia, there is a story to tell behind every pillar, a landmark deal in every boardroom, and a storied celebration under every awning. Come be a part of the legend.

OWNER OF TAJ HOTELS

• Taj group of hotels is owned by the TATA sons Group of india, who also own the Indian hotels company established in 1902.

• Mr Ratan tata is the present chairman of the group.• Sir Ratan Naval Tata, KBE, is an Indian businessman who became chairman

of the Tata Group, a Mumbai-based conglomerate. He is a member of a prominent Tata family of Indian industrialists and philanthropists.

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•The Indian Hotels Company (IHC) is the parent company of Taj Hotels Resorts and Palaces. •Founded by Jamshetji N. Tata on December16, 1903.• Currently the Taj Hotels Resorts and Palaces comprises 76 hotels, 7 palaces at 52 locations in 12 countries and employ over 13000 people.•Additional 18 hotels are also being operated around the globe. •During fiscal year 2010, the total number of hotels owned or managed by the Company was 76.•The Taj hotels are categorized as luxury, leisure and business hotels.

INTRODUCTION TO TAJ HOTELS

MARKETING MIX

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PHYSICAL EVIDENCE

PROMOTION

PRODUCT

PEOPLE

PROCESS

PLACE

PRICE

7P’s of Taj hotels

1.PRODUCT

• Rooms & Suites • Core product is

space • Supplementary

products include travel arrangements, ticketing, airport pick-ups, sightseeing, etc

2. PLACE

• More than 60 hotels in 45 locations across India ,15 in International Locations.

• Vantage locations • Iconic properties

rooted in history and tradition

3. PRICE

• Price on the basis of business , luxury and leisure class.

• Not affordable by all.

• High prices justified as they help Taj retain exclusivity.

4 . PROMOTION

• Loyalty programs,

clubs, memberships.

• Surprises such as

weekend savers,

value vouchers,.

• Monthly letters to

about upcoming

events.

• Holiday package

promotions at

exhibitions.

5. PHYSICAL EVIDENCE

• Well designed,

spacious lobby.

• Use of artifacts and

antiques.

• Traditional Indian

welcome to guests.

• Combines a heritage

ambience with

modern luxury.

6. PROCESS

• Check-in

• Bell-person carrying

luggage to room

• Butler service

• Food

• Laundry

• Child-care and

baby-sitting

• Currency exchange

• Wake-up call

• Gift-shop, boutique,

florist

• Check out

7. PEOPLE

• Skilled personnel

• Personal Agents

• Technological

persons

• Travel agents

• Butler

• Bell-boys

• Restaurant staff

• House-keeping

Product

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CORE

BASIC

EXPECTED

AUGMENTED

POTENTIAL

Products

Room

Restaurant and Bar.

Meeting room and Banquet facility

Amenities

Services

Safe deposit box

Special services

• courier• Child care• Laundry• Pet• Internet• Travel desk• Babysitting• Wake-up call

• Barber shop• Boutiques• Currency exchange• In room telephone service• Express check -in and out• Florist• Front desk 24 – hour• Gift shop• Maid service

Price

22PRICING STRATEGIES

Differential pricing

Demand based

Competition based

PRICE

• Price on the basis of business , luxury and leisure class.• Not affordable by all.• High prices justified as they help Taj retain exclusivity.

Taj hotel has set its price of the room on the basis of Business, Leisure and

Luxury class.

RatesThe Taj Suite Rs. 8750Executive Suite Rs. 6250

Standard sea view double Rs. 3500

Standard sea view single Rs. 3500

The Taj Lady Rs.8000

PLACE

Customers visit a hotel to satisfy their needs for food and accommodation.

Hotel distribution is interdependent with other industries that serve travelers and tourists, like the transportation industry, travel agents ,tour operators, state and national tourism organizations, and shopping and entertainment providers.

The location of a hotel should be convenient and accessible to the customers.

The selection of the location is very crucial in hotel marketing. The place selected should be free from all health hazards. Location of the hotel is the most important business decision

for the hotel. Present in metro cities in India Global presence (Maldives,London,Dubai,Colombo)

PROMOTION STRATEGY

Promotional schemes are carried on regularly the hotel has many loyalty programe,clubes,membership,previlage etc some of them are

1. The Taj Inner Circle.2. The Taj Junior League.3. The Taj Club.

Taj also offer Taj surprises including weekend savers,value vouchers,book early get more,

ADVERTISEMENT Business news paper(E.T, Financial Express, Bombay Times) T.V channels like STAR NEWS,CNN and CNBC. Magazines like THE OUT LOOK TRAVELAR,GO NOW and

TRAVEL.

Promotion

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ADVERTISING

SALES PROMOTION

WORD OF MOUTH PROMOTION

PUBLICITY AND PUBLIC RELATIONS

PERSONAL SELLING

People

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“First impression is the last impression”• Selection of suitable personnel and provision for their training and development are

very significant. • The staff in a hotel plays a major role in transforming the potential customers. To

actual guests: they should be able to live up to the expectations of their customers.• In the hotel industry customers minutely pay attention to the treatment they receive. • The offering of services requires complete personal involvement of the hotel

personnel in general and front-office staff in particular. The front office should be designed well and the concerned staff should render efficient and courteous services to the customers.

• There will be an attitudinal change in the minds of the prospective customers if the hotel personnel follow the established behavioral principles. For instance, even the best food served in a hotel will not satisfy the customers if the staff does not behave well

People

• Skilled person• Professional person• Personal Agents• Technological person• Travel agents

Physical Evidence

• Lobby- It being the first & the last part of the hotel that the guest sees,thus it should be well designed, also to ensure that the customer returns again the room should be comfortable and should

• have made his stay hassle free .• It addresses the ‘tangible’ components of the service experience

• The “services cape” includes the ambience, the background music, the comfort of seating and the physical layout of a service facility

• The appearance of the staff, including clothes and grooming, may be used as important clues

Process

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It includes the flow and progress of the production process

E.g. the service of providing a meal at the fine dining restaurant of the hotel

Process Major service encounter that extremely delighted or

disappointed are:1. Check – in.2. Bell person carrying luggage to the room.3. Food.4. Wake up call5. Check out.

STP analysis

THE TAJ GROUP OF HOTELS SEGMENTATION

TAJ LUXURY HOTELS –

TAJ PALACE, TAJ MAHAL, TAJ BENGAL, TAJ WEST END

OFFER FINEST STANDARD OF

HOSPITALITY & SERVICE

TAJ BUSINESS HOTELS:

TAJ PRESIDENT, TAJ RESIDENCY,

TAJ CONNEMARA, TAJ BLUE DIAMOND

OFFER MULTI – CUISINE

RESTAURANTS & BEST BUSINESS

FASCILITIES

TAJ LEISURE HOTELS:

TAJ BEACH RESORT, TAJ CULTURAL

CENTRE, TAJ GARDEN RETREATS

LOCATED AT BEACH RESORTS,

PALACES, PILGRIM CENTRES ETC.

THE TAJ GROUP OF HOTELSSEGMENTATION

TAJ LUXURY HOTELSTAJ PALACE,TAJ MAHAL,TAJ BENGAL,TAJ WEST END OFFER FINEST STANDARD OF HOSPITALITY & SERVICE

TAJ LEISURE HOTELS

TAJ BEACHRESORT,TAJ CULTURAL CENTRE,TAJ GARDENRETREATS LOCATED AT BEACH RESORTS,PALACES,

PILGRIM CENTRES ETC.

Positioning

• Through print media• Electronic media• Magazines• Online advertising

Targeting

• Targeting is a group of people who have common need, and behavior.

• Business class• Upper class• Tourists

COMPETITORSThe hotel has many competitors like 1. The Oberai towers2. The Marine Plaza3. The Orchid.4. Le MeridianAcqusition-hotel blue diamond pune.

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SERVICE ENCOUNTER

Service Encounter CascadeCHECK IN

(Front desk Executive)

BELL BOY TAKES TO ROOM(Bell Boy)

RESTAURANT MEAL(Waiter)

REQUEST WAKE UP CALL(Tele phone Operator)

CHECK OUT(Font desk Executive)

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Stations Of Experience• Pre-Arrival

Reservations: During the reservation a preference sheet is mailed to capture the details and to enhance the stay experience.

Airport pick-up: An airport representative is sent along with a chauffeur holding a placard

• Arrival– Welcome at the lobby: Royal welcome by the guards in typical Rajasthani Attire.– Royal Welcome for Groups: Special arrangements for groups are made. A huge caravan

of Elephants, camels , horses along with a professional band is called for the reception of the group.

– ATG( Aarti, Tiki and Garlanding):– Welcome Drinks upon arrival

• Check-in– Escorting– Welcome Letter– Room Orientation

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• Experience during stay– Heritage walk– Special Occasion Celebration– City tour by vintage car– Cultural music and dance– Unique dinner experience– Grand Wedding– Other Facilities

Check Out– Feedback Form at time of Turn Down– Souvenir: A fragrant incense stick wrapped in a satin cloth is gifted to the

customers as a souvenir.

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ROLEPLAY

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CRM

Benefits• Streamlined sales and marketing processes• Higher sales productivity• Added cross-selling and up-selling• Improved service, loyalty, and retention• Better profiling and targeting• Reduced expenses• Increased market share• Higher overall profitability

CRM in Hospitality

• The secret here is that retention cost is very low when compared to the cost of attracting new customers

• nature and extent of the services and facilities • developing and designing services that suit customer

preferences• Quality of service and Customer Satisfaction are the most

important factors in the service organizations• CRM helps hotels to service their customers and be cost

effective• Major hotel chains have been wooing travellers for years with

CRM tools focused mainly on "loyalty" or rewards programs

CRM Activities in Hotels

• Catering to Valuable Guests

• Better Customer Data Yields Benefits

• New Directions Online

DIFFERENT REWARD PROGRAMMES OFFERED BY TAJ GROUP OF HOTELS TO ITS CUSTOMERS/GUESTS

• Taj Inner Circle• Taj Epicure Plan• Benefits That Customers Enjoy As A Silver & Gold Member

Customers will be greeted with flowers & fruits in their room

Check-in & departure formalities will be easier, 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

• Points Redemption• Taj Club

CRM used in Taj Palace Hotel

• At the time of the reservation a preference sheet is sent across to the guest along with the reservation conformation mail

• This is primarily to capture the various preferences of the customer such as food habits (Diabetic/ Low fat etc.), special needs etc. It also asks if the customer is coming on a special occasion or not and arrangements are made accordingly made on the visit

• e.g. If the guest is coming on a honeymoon or anniversary the room is decorated accordingly, cake is placed in the room etc.

• This is another important tool in improving the service of the hotel and to capture guest complaints. If a complaint is registered by a customer it is updated on the software.

• Gradually as the time lapses the status displayed turn from green to yellow and ultimately red. This status can be seen by any of the managers as the software is connected to the central server. A daily Action Taken Report is generated which is signed by the operational head.

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1. Guest Preference Sheet 2. Handling Complaints

• Fidelio is the property management system used by Indian Hotels Company Limited. Although it is used for various functions but it also plays an important role in the CRM processes of the hotel.

• It is used for saving the profile, preferences and special information (Anniversary, Birthday, allergies etc.) related to the guest on a central server.

• This information is accessible to all the Taj properties; therefore, whenever there is a repeat customer the hotel staff already has all the necessary information enabling them to delight the customer by personalized service.

• This is a special instrument used by personal butlers for recording guest preferences & other important information related to the guest.

• This is a small booklet which is carried by the staff at all times and whenever they get any information which can be useful in the future to please the customer, they simple record it here.

• This information is further uploaded on the PMS making it accessible to all.

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3. Fidelo 4. Wow Card

• Once the guest is in the hotel and stayed for sometime (a day or two) a courtesy call is made by the guest relationship executive during the evening hours.

• This is just to know about the guest’s experience and how can it be improved in case there is some difficulty being faced by him/her.

• In case there is a complaint it is uploaded on the CRM software and further processes are followed as mentioned above.

• Post departure an automated mail from the central server is sent to the guest requesting to fill up a feedback form. There are various heads covering the various stations of experiences which are scored on a Likert Scale.

• This information is quantified to highlight the areas of concern. This score is also used as a measure of performance of a hotel unit. 

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5. GRE Courtesy call6. GSTS (Guest Satisfaction Tracking system):

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SERVICE TRIANGLE

Internal Marketing Vertical Communications

Horizontal Communications

Interactive Marketing Personal Selling Customer Service

Center Service Encounters Servicescapes

External Marketing Communication Advertising Sales Promotion Public Relations Direct Marketing

Company

CustomersEmployees

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External Marketing-Advertisement

T.V channels like STAR NEWS,CNN and CNBC.Magazines like THE OUT LOOK TRAVELAR,GO NOW and TRAVEL.Business news paper(E.T, Financial Express, Bombay Times)

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Internal Marketing

• Taj Management Training Programme (TMTP)

• Hotel Operations Management Trainee (HOMT)

Program

• Taj Management Training Programme (TMTP) -

Operations/ Food Production

• Affiliation with Indian Institute of Hotel Management,

Aurangabad

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Interactive Marketing

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Customer Loyalty Programs ( Retention)

• Taj Inner Circle

• Taj Epicure Plan

• Benefits That Customers Enjoy As A Silver & Gold Member– Customers will be greeted with flowers & fruits in their room– Check-in & departure formalities will be easier, 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

• Points Redemption

• Taj Club

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Program for Employees

• Employee loyalty program called STARS, the 'Special Thanks and Recognition System‘ - was an initiative aimed at motivating employees through acknowledgements and rewards.

• The STAR system also led to global recognition when the group bagged the 'Hermes Award' for 'Best Innovation in Human Resources' in the global hospitality industry.

• Taj Group developed the 'Taj People Philosophy' (TPP) which helped the company boost the morale of its employees and improve service standards

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Reservations Booking Portal

What Creates Customer Delight

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.

3 Meeting rooms

Laptops on hire

Currency Exchange

Travel assistance

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

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Customer Feedback System

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Room Feedback form: During the evening service/ Turn- down service a feedback form is placed on the bed to know about the customer experiences.

Service recovery

Consequences for a service organization

• Negative Consequences - Lost Customers - Negative word of mouth - Employee

Dissatisfaction - Lack of loyalty - Complaints - Exit from the

organization

Entry in India

• Attackers travelled by sea from Karachi, Pakistan across the Arabian Sea.

• 10 Urdu-speaking men arrived.• The first events were detailed around 20:00

Indian Standard Time(IST) on 26 November.• 156 people lost their lives, 400 injured, 250

walked free

Hotel Taj After 26/11

• Nearly 40% of annual income lost – Financial Crisis.

• 2007 – 16% Growth• 2008 – 1.8% growth compared to 2007.• Went down due to terrorism.

CRISIS AT

TAJ

THE CHRONOLOGYReasons behind 26/11 terror attacks.Flaws in the services.Disaster Recovery Planning.

Reasons behind the 26/11 terror attacks

Filled with people - foreigners and the local elite. International media coverage.The message to India.The selection of targets—Americans, Britons, and Jews, as well as Indians.

The Siege At Taj HeritageAt least seven gunmen enter the lobby of the Taj Mahal Palace hotel, where about 450 people were staying, and begin firing. 60 hours of siege.Left 195 people dead and hundreds injured. Large fire reported.Took Indian security forces nearly three days to eliminate the last of the attackers.

SERVICE FLAWSIntelligence Failures.Gaps in Coastal Surveillance.Incomplete Execution of Response Protocols.Response Timing Problems.Inadequate Counterterrorism Training and Equipment for the Local Police.

Limitations of Municipal Fire and Emergency Services.Flawed Hostage-Rescue Plan.Poor Strategic Communications and Information Management by the Govt.

Employees of taj during THE SERVICE crisis

Staff- Waiters, Executives, Chefs.Providing food and other necessary things to the guests as needed by them.Established a helpline in Wellington Mews in the midst of the crisis.Security staff.

The telephone operators.Karamveer Singh Kang, Taj's general manager.Hotel management.Ratan tata - Chairman of the Tata group.

Immeditely created the Taj Public Welfare Trust.Assisting people affected by the attack.Not laid off a single employee.Promised to rebuild and restore every inch of the hotel to its original glory.

ReopeningRe-opened the doors of its 268-room Tower Wing on Sunday 21 December 2008.Guest services have been upgraded.Use of the Taj Club, with free breakfast and tea, coffee and cocktails. Free use the hotel's personal butler service.

SECURITYInvestment of large sums of money on security systems and procedures. Created a security team headed by a retired Major General from the army. Retained the services of a top international security service company.Around 75 people have been trained overseas. Equipped them to be the first line of defence in the event of an attack.

Trained security people in plain clothes at the lobby and other key points.Security ring outside the hotel. Mock attacks to assess the preparedness of our people, system and procedures.

Maintaining hotel image

The hotel’s biggest loss was the death of 10 staff members and 21 guests.November - spent in quiet reflection and remembrance. Private multi-faith prayers.

Service Recovery Strategy

Fail-safe your service – “Do it right the first

time”

Welcome & encourage complaints

Act quickly

Treat customers

fairly

Learn from recovery

experiences

Learn from lost customers

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BALANCE OF DEMAND AND CAPACITY

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Thank you