You are on page 1of 35

A RESEARCH PROJECT REPORT

ON

“CUSTOMER RELATIONSHIP MANAGEMENT IN BUSINESS HOTELS AND


UPCOMING TERNDS”

For fulfillment of requirement for the award of Degree of

MASTER OF BUSINESS ADMINISTRATION

OF

MAHARSHI DAYANAND UNIVERSITY, ROHTAK

SESSION 2008-2010

Under the guidance of: Submitted by:

Maninder Singh Rohit Goel

Lecturer MBA (Marketing)

ITM, Gurgaon

INSTITUTE OF TECHNOLOGY AND MANAGEMENT

Sector-23A, Gurgaon

1
TABLE OF CONTENT

SNO. PARTICULARS PAGE NO.

1. INTRODUCTION 3

1.1 Objective 4

1.2 Methodology 5

1.3 Limitation 6

2. MAIN TEXT 7

2.1 Hotel Industry overview 7

2.2 About CRM 10

2.3 Advantages of CRM 12

2.4 CRM application by ITC 16

2.5 CRM at Oberoi’s 19

2.6 CRM at Taj 21

3. MEASURING EFFECTIVENESS OF CRM 24

4. BEST PRACTICES OF HOSPITALITY INDUSTRY 25

5. FUTURE TRENDS 27

6. CONCLUSION 29

7. RECOMMENDATION 32

8. REFERENCE 34

INTRODUCTION

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. In the short term, however, it proved to be an

2
unwieldy process 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 track and keep the high volume of
records needed accurately and constantly update them.

In the last several years, however, newer software systems and advanced tracking features have
vastly improved CRM capabilities and the real promise of CRM is becoming a reality. As the
price of newer, more customizable Internet solutions have hit the marketplace; competition has
driven the prices down so that even relatively small businesses are reaping the benefits of some
custom CRM programs.

BEGINNING OF CRM

The concept of customer relationship management started in 1980’s and initially it was termed as
database marketing in which particular customer service group are assigned particular set of
customers. This method was initially successful when there were small group of customers but as
and when the number of customers increased and companies grew in terms of size, they realized
need of much more sophisticated system.

GROWTH OF CRM

Companies actually started their CRM initiatives in 1990’s. Initially companies collected data for
their own use but then they started using it for improved customer service. This was actual
starting of programs which are prevalent right now like frequent flier program, points on credit
cards and other resources that are based on CRM as well as tracking of customer activity and
spending patterns. CRM was now being used as to increase sales as well as through active
improvement of customer service.

PURPOSE OF CUSTOMER RELATIONSHIP MANAGEMENT

The main 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. A successful CRM strategy cannot be implemented by only
3
installing and integrating a software package designed to support CRM processes.CRM requires
a holistic approach. This approach includes:

• Giving training of employees

• Business processes reengineering based on customers' needs.

• Adopting relevant IT technology that enables the organization or company to follow its
CRM strategy.

• To redundant the acquisition of additional hardware or CRM software-licenses.

CRM is a holistic term used to describe plans and procedures employed by an industry or sector
to improving level of customer satisfaction. Information technology plays an important role and
it act as an enabler for CRM activities.

OBJECTIVE:

The primary objective would be:

• To study “Customer Relationship Management in the Hotel Industry”.

• Researching methodology used by the industry to measure and monitor the effectiveness
of their Customer Relationship Practices.

The other objectives would be:

• To study the programs and practices of CRM employed by the leading hotels in India.

4
• To study the measures to build a better relationship between the customer/guest and the
hospitality unit.

• To study upcoming trends in hotel industry.

Finally to conclude the findings and suggest any recommendations regarding the future growth
prospects.

METHODOLOGY:

1. Defining the research problem and research objective

The definition of the problem includes the study of the topic “Customer Relationship
Management in the Hotel Industry”.

2. Collecting of information

The type of data taken into consideration for this topic is the Secondary data. It is that data which
somebody else had collected and which had already been passed through the statistical process. It
was collected from hotel personal interviews, magazines, newspapers, articles, and internet and
company records.

3. Analyzing the information

The next step is to extract the pertinent findings from the collected data. In this project, the
collected data is presented as the CRM practices followed by each hotel covered in the study.
Majorly secondary research would be employed in gaining information on the subject and
analysis would be carried further utilizing the information so collected.

LIMITATIONS OF STUDY:

5
Knowing these limitations helped to take specific corrective measures within the span of time.
Continuous efforts are made to reduce the effect of limitations on the results produced by the
study.

• Retaining information through personal interview may be difficult.

• Due to the availability of only secondary data, authentication of the data is not sure.

• Since the authentication of the data is not sure, the result of the project may not be
precise.

• Customer relationship management is in itself a complex topic; therefore, there may be


certain mistakes in the assumption.

• Observing new trends may be difficult as no primary research is planned.

• Customer relationship management is a process under constant up gradation as there is an


introduction of new structure and processes so it is difficult to standardize the holistic
view.

MAIN TEXT

6
The hotel industry is highly competitive and the right knowledge about customer values and
demands is essential to differentiate from competitors and gain sustainable competitive
advantage. Implementing traditional marketing strategies is often no longer enough to achieve
this goal. Relationship marketing has increasingly become more important, as this concept
suggests more focus on retaining the customer and creating a win- win situation with a long-
term perspective. In traditional marketing there is more focus on acquisition. Most importantly a
good balance between acquisition and retention directed to the right segments is essential for
future success.

2.1 Hotel industry overview

Over the last decade and half the mad rush to India for business opportunities has intensified and
elevated room rates and occupancy levels in India. Even budget hotels are charging USD 250 per
day. The successful growth story of 'Hotel Industry in India' seconds only to China in Asia
Pacific.

'Hotels in India' have supply of 110,000 rooms. According to the tourism ministry, 4.4 million
tourists visited India last year and at current trend, demand will soar to 10 million in 2010 – to
accommodate 350 million domestic travelers. 'Hotels in India' has a shortage of 150,000 rooms
fueling hotel room rates across India. With tremendous pull of opportunity, India is a destination
for hotel chains looking for growth. The World Travel and Tourism Council, India, data says,
India ranks 18th in business travel and will be among the top 5 in this decade. Sources estimate,
demand is going to exceed supply by at least 100% over the next 2 years. Five-star hotels in
metro cities allot same room, more than once a day to different guests, receiving almost 24-hour
rates from both guests against 6-8 hours usage. With demand-supply disparity, 'Hotel India' room
rates are most likely to rise 25% annually and occupancy to rise by 80%, over the next two years.
'Hotel Industry in India' is eroding its competitiveness as a cost effective destination. However,
the rating on the 'Indian Hotels' is bullish. 'India Hotel Industry' is adding about 60,000 quality
rooms, currently in different stages of planning and development and should be ready by 2012.
MNC Hotel Industry giants are flocking India and forging Joint Ventures to earn their share of
pie in the race. Government has approved 300 hotel projects, nearly half of which are in the

7
luxury range. Sources said, the manpower requirements of the hotel industry will increase from 7
million in 2002 to 15 million by 2010.

With the USD 23 billion software services sector pushing the Indian economy skywards, more
and more IT professionals are flocking to Indian metro cities. 'Hotel Industry in India' is set to
grow at 15% a year. This figure will skyrocket in 2010, when Delhi hosts the Commonwealth
Games. Already, more than 50 international budget hotel chains are moving into India to stake
their turf. Therefore, with opportunities galore the future 'Scenario of Indian Hotel Industry'
looks rosy

Hotels in India are amongst the most visible and important aspects of a country’s infrastructure.
Indian Hotel industry is closely linked to the Indian tourism industry. India being the most
sought-after tourist destination of world which is regarded as travelers’ paradise offered snow-
peaked mountains, heritage sights, beautiful landscape, exotic wildlife, palm-fringed beaches,
historic monuments, Ayurvedic treatment and many more. With increasing globalization, Indian
hotel is catering to the tourists around the world with all the facilities required for making the
tourism sector a success. This country of Maharajas is home to the world class hotels ranging
from Palace Hotels, Deluxe/Luxury Hotels, Heritage Hotels and Five Star Hotels to Business
Hotels, Economy Hotels and Cheap Hotels. You have to just name it and India has it! Here brief
information is given for various types of hotels.

The major players in the Indian hotel industry can be broadly classified into private players and
public players. The major private players include Indian Hotels Company limited, East India
Hotels Limited (The Oberoi group), Asian Hotels and ITC Hotels. ITDC and Hotel Corporation
of India are the major public sector players.

The Top Players in Hospitality Sector

8
Public Sector Players:

• ITDC hotels

• Hotel Corporation of India

Private Sector Players:

• ITC Hotels

• Indian Hotels Company Ltd.(The Taj Hotels Resorts & Palaces)

• Oberoi Hotels(East India Hotels)

• Hotel Leela Venture

• Asian Hotels Ltd.

• Radisson hotels & Resorts

In my research project I have taken private hotels into consideration by taking into account CRM
practices followed by private sector hotels ( ITC, Taj and Oberois)

2.2 ABOUT CUSTOMER RELATIONSHIP MANAGEMENT

9
The generally accepted purpose of Customer Relationship Management (CRM) is to enable
organizations to better serve its customers through the introduction of reliable processes and
procedures for interacting with those customers.

In today's competitive business environment, a successful CRM strategy cannot be implemented


by only installing and integrating a software package designed to support CRM processes. A
holistic approach to CRM is vital for an effective and efficient CRM policy. This approach
includes training of employees, a modification of business processes based on customers' needs
and an adoption of relevant IT-systems (including soft- and maybe hardware) and/or usage of IT-
Services that enable the organization or company to follow its CRM strategy. CRM-Services can
even redundant the acquisition of additional hardware or CRM software-licenses.
10
The term CRM is used to describe either the software or the whole business strategy oriented on
customer needs. The second one is the description which is correct. The main misconception of
CRM is that it is only software, instead of whole business strategy.

Major areas of CRM focus on service automated processes, personal information gathering and
processing, and self-service. It attempts to integrate and automate the various customer serving
processes within a company.

There are three parts of application architecture of CRM:

1. Operational - automation to the basic business processes (marketing, sales, service)

2. Analytical - support to analyze customer behavior, implements business intelligence


alike technology

3. Co operational - ensures the contact with customers (phone, email, fax, web...)

Operational part of CRM typically involves three general areas of business. They are (according
to Gartner Group) an Enterprise marketing automation (EMA), Sales force automation (SFA) and
a Customer service and support (CSS). The marketing information part provides information
about the business environment, including competitors, industry trends, and macro environmental
variables. The sales force management part automates some of the company's sales and sales
force management functions. It keeps track of customer preferences, buying habits, and
demographics, and also sales staff performance. The customer service part automates some
service requests, complaints, product returns, and information requests.

Integrated CRM software is often also known as "front office solutions." This is because they
deal directly with the customer. Fidelio is one of the most widely used CRM software

Parameters to measure CRM success:

1. Impact on corporate strategy: It is very important to align corporate strategy with CRM
initiative of a company.

11
2. Integration of technology: Different department of enterprise should be integrated to give
a comprehensive CRM application.

3. Strategic partnership: CRM integration should be through entire supply chain of an


organization.

4. Adaptation of CRM technology: Employees of organization should be thoroughly


conversant technological aspect CRM.

Practical application of CRM

There are three main functions of CRM

• Collecting customer data

• Analyzing data

• Making long term relationship

The operational CRM deals with those which make customer contacts or otherwise called as touch
points.

Analytical CRM does the job of analyzing the accumulated data from the various touch points with
the aid of business intelligence.

Operational CRM

1. Customer service and support: These applications basically automate the support and
service functions, including analysis and also provides workflow engines that facilitate
efficient problem and inquiry escalation, tracking and resolution. They also provide
customizable, dynamic scripting capabilities for the customer service representatives
or executives as well as the potential to record customer responses in a shared
storehouse.
12
2. Sales Force Automation: It is generally used for collection and distribution of all type of
CRM related information which basically include managing activity, sales reporting and
forecasting.
3. Marketing automation: These applications provide the ability to create automated
marketing campaigns and track the results. Internet personalization tools are offered here
to track behavior on a web-site and allow tailoring of the contact experience, or
generation of specific cross-selling opportunities based on this behavior.

2.3 Advantages of CRM

Having a CRM module can contribute meaningfully to the business in the following ways:

 By providing better customer service


 Increasing revenues from customer
 Identifying and acquiring new customers
 Cross selling/Up Selling in an efficient manner
 Equip sales staff for closing the deals faster
 Simplification of marketing and sales processes

CRM Tools - Key Features

13
 It covers all business processes involved in sales, marketing, and service that touch the
customer.
 Collecting data about the customers and equip the enterprise to know its customers and
relationship marketing.
 The management, salespeople, people providing service to the customer can access
information, match customer needs with product plans and offerings, remind customers of
service requirements, check payment histories, and so on

eCRM Vs Web based CRM

e-CRM application in hotel industry finds a substantial use across business functions to retain,
capture and make use of customer data, i.e. integrating all aspects of business process and
systems. 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. It also
helps in maintaining a healthy relationship with HNI’s.

e-CRM Components in Hotel Industry

The main components are discussed below:

• Sales :
 Contacts management profiles and history
 Accounts management including activities, order entry, proposal generation
 Pipeline analysis (forecasting, sales cycle analysis, temporary alignment and
assignment, roll up and drill down reporting).

• Telemarketing:
 Call list assembly
 Auto dialing
 Scripting

14
 Order taking.
• Time management:
 single user and group calendar/scheduling
 e-mail
• Customer service and support:
 Incident assignment
 Escalation, tracking/reporting, problem management/resolution
 Order management/promising, warranty/contract management
• Marketing:
 Campaign management
 Opportunity management
 Web-based encyclopedia
 Configuration
 Market segmentation
 Lead generations/enhancement/tracking.
• ERP integration :
 Legacy systems
 The web
 Third party external information
• Data synchronization:
 Mobile synchronization with multiple field devices
 Enterprise synchronization with multiple databases/application servers

• E-commerce:
 manages procurement through EDI link and web-server and includes B2B and
B2C applications
• Service support:
 Worker orders
 Dispatching
15
 Real time information transfer to field personnel via mobile technologies

2.4 CRM application ITC

Customer relationship management means managing customer in an organized manner. Its starts
with moment of truth which is the first touch point of interaction.

ITC group has divided CRM into two distinct categories:

1. Identify CRM vehicles

2. Integration of CRM vehicles.

Identification of vehicles:
16
ITC has identified following vehicles which are the crucial point of interaction with customer:

1. Field selling

2. Loyalty programs

3. Distribution point

4. Web

5. Call centers

Field selling

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 includes:

• Prospecting which means searching and seeking for new customers. Current accounts are
also very important as they harbor many sources of untapped business potential.

• Lead generation Leads are potential customers with whom no contact has yet been
made and learning of potential customers from current customers is called Referral.

Field selling is very important aspect as this the point of one on one contact of hotel employee
with potential customer. At this point representative of hotel can understand the needs of
customer and customize the services offered or proposed to him.

Loyalty programs:

These are the programs designed to award loyal customers. ITC adopts a very unique strategy of
loyalty points for its guests. There are various departments in hotel (housekeeping, spa, business
center etc) and whenever a guest uses any service from these departments, certain loyalty points
are credited to his account. Whenever the guest checks in for the next time these loyalty points
can be redeemed in from of complimentary stay or certain additional facilities.

17
This provides dual benefits to hotel. Firstly, they get a repeat business and secondly it provides
extra revenue to supporting departments of hotel from where guest avails various facilities.

Distribution system/ Reservation system

ITC uses very efficient system for managing reservations of guest. Generally guest gives a phone
call to make reservations. ITC uses efficient database management by recording all the
information of guest so whenever a guest gives a call and it is second time for him, employee at
reservations is already aware about the preferences. At this point hotel employee can create
customer delight.

Web:

Internet can be used as a very important base for sharing of information. ITC 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. 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.

Call centre:

Call centre again act as a unique touch point. This act as a point where valuable customer
information is recorded and processed.

An example of use of CRM by ITC: A sales team of ITC had completed a review of an
upcoming weekend. This review revealed that bookings to date were somewhat below forecast
and that a special promotion may be done in order to speed up the business. The sales team then
enveloped special promotion packing to encourage bookings for weekends. They searched their

18
welcome break holiday package database and scratched it to identify and segment the customers
who tend to:

• Book on long weekends

• Book on a short term basis

• Respond to promotional campaigns

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. 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. Therefore, out of the database of members, only a few but almost some customers were
contacted by direct mailing which resulted in sizeable sale during the otherwise lean weekend at
the property.

2.5 CRM initiatives at Oberoi Group of hotels:

19
The Oberoi has enjoyed a superior position due to its core product offering and supporting
services. It is known for excellent brand value which it consistently reinforced by delivering
exceptional services.

In Oberoi CRM is understood as relationship marketing and it forms an integral part of sales
and Marketing department. They use cooperative and collaborative approach of customer
relationship management. Variety of sales tactics are used for customer bonding and loyalty.
Some of the programs implemented by Oberoi’s in field of customer relationship management
are as follows:

1. The oberoi Plus

This a program in which guest can enroll himself by paying certain amount of fees. It is
beneficial for guest who uses services of hotel. Every time guest spends certain amount
in availing the services provided by hotel, certain points are accumulated into his
account. These points can be redeemed by guest in availing certain additional services.
Thus helps in creating loyalty and bonding with customers. Oberoi’s also has a tie up
with certain airlines from where these points can be redeemed.

20
2. Bookers program:

Bookers are the organizations which provide corporate business to hotel. Here Oberoi’s
uses push marketing strategies wherein they reward every booker for bringing a
corporate deal. They are rewarded by giving certain services of hotel or a gift from hotel
side.

3. Food Festival:

Oberoi’s conducts various food festivals which are based upon different themes and
cuisines. It sends invitation to various profitable customers, this helps in building long
term relationship with them.

4. Tie-ups:

The 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.

2.6 CRM initiatives taken by TAJ group of Hotels:

21
Taj hotel is one of the largest chain in India and one of the most reputed hotel chain

Taj inner circle: This program allows guest to earn certain points which they can redeem in
form of complimentary stay in any of the resort properties of TAJ. It has three membership
levels:

Blue (join at the Blue level and start earning on their stay)

Silver (customer need to accumulate 250 points in any continuous 60-day period)

Gold(Gold card members enjoy enhanced privileges and accumulate points at a faster rate)

Taj epicure Plan: This is an additional plan which allows privileged customers of TAJ inner
circle to dine at any of the restaurant dine at various restaurant of TAJ and consume various
beverages at discounted price. Some of the benefits of Taj epicure plan are as follows:

• Free couple entry is given to some of the discotheques of Taj

• Complimentary passes to some of the restaurants of Taj.

• Greeting customers with gifts

22
• Discounts on certain leisure properties of Taj

• Such customers can avail facilities like express check in.

All these facilities under Taj epicure plan are limited to certain properties of Taj and are highly
exclusive.

3. Measuring effectiveness of CRM implementation in hotel industry:

23
Hotel industry has taken many initiatives towards implementation of CRM but it is very
important to evaluate the effectiveness of these initiatives. There are certain key performance
indicators which help in evaluating the changes:

1. Conducting guest survey: Guest surveys are conducted using specialized software called
as “Visiglobe”. This is a add on software which is used in addition with property
management system in hotels. Generally information are sourced through call center and
feed backs given by guest.

2. Incident tracking: Hotels generally keep a track as to how effectively the CRM
application is able to solve problems of customers. Each and every incidence should be
traced.

3. Guest feedback cards: Most of the hotels have feedback cards which can be used for
calculating guest satisfaction index before and after implementation of CRM
implementation.

4. Employee satisfaction: Employee satisfaction also forms an integral part of overall CRM
implementation. Hence hotels have certain programs to get valuable about successful
implementation of CRM implementation and ways to improve it further.

5. Revenue generation: Revenue generated is again an integral part to calculate


effectiveness of CRM. Generally hotels calculate revenue of post and pre implementation
of CRM .

4. Best Practices of Hospitality Industry (Luxury Star Category)

24
1. No more "20 questions" at check-in: New customer relationship management (CRM)
tools allow a hotel to gather guest preference information from various systems at
property level and distribute them throughout the company. This is a tool to understand
the single view of guest, his habits, behaviors and trends without having him asked
repeatedly to duplicate personal information

2. TVs that deliver music, movies—and much more: Today's leading-edge hotels have
in-room systems that do far more than allow guests to watch their favorite first-run
movie. They can also control in-room music, provide gaming options, display your bill—
even control the thermostat and lights. The Hotel 1000 in Seattle, Washington, for
instance, has centered the room around the availability of favorite media and services on a
number of widescreen plasma monitors located throughout its rooms and suites. You can
control content, multi-area volume of the sound system, and interact with your profile
through these devices.

3. Uses of RFID Technology: People in the hospitality industry have found a variety of
uses for new radio frequency identification (RFID) technology—from helping guests find
each other at a ski resort to allowing them to pay for a meal. This is popular with hotels
and guests due to comfort of cashless payment systems that can be applied both on and
off- property. Another key capability of this offering is location-based services, where
groups of individuals can be instantly found at the property, simultaneously allowing for
more freedom and security in these safety-conscious times.

4. Back-office systems that are actually on speaking terms: There are issues related to
proper inter communication between applications like property management department,
food & Beverage dept., sales and catering functions. But now a very high level
interfacing is happening between all these functions through integration of each
application. Prerequisite for this is that each function operates as a standalone function
and then further shares information which is more reliable.

5. Self-healing hotel technology: A hotel's information technology (IT) systems are


typically managed in a reactive way, which is to say that when something breaks down an
IT person is called upon to fix it. Most of the hotels employ an added a system to keep an

25
eye on its restaurant-level systems and enterprise servers. System problems and failures
are reported to the IT help desk as they occur; minimizing the time it takes to get mission-
critical systems back online.

6. Do not underestimate the Importance of layout of restaurants: Layout of the in- built
restaurant is not only important to the diners but also for overall operations. Adequate
spaces for the servers, plenty of seating and free aisle passages are some characteristics of
a good layout

7. HR Practices:

 Choosing a Great General Manager: a General Manager of the property has to


bring trust, Loyalty and taste of unique customer service to the organization. Suck
men have to handpicked and observed in great detail before hiring.

 Staff First, Guests Second: Never treat a guest better than you do an employee.

 Grow your people: Talent management is one of the most important everyday
decision that HR Managers have to make in their properties. Engaging with the
employees, redefining job to fit A- Level employees, assessment of training needs are
some of the talent management decisions.

 Walk the Walk: Employees must have faith in the organization and its policies. He
should observe it happening in the work environment, otherwise his efficiencies
would differ. Doing the right thing is what defines true leadership.

 Transparency: Talk openly and freely about the issues and solution strategies of
your business with staff. Talk about everything from electric bills to staffing issues so
that they understand the “why” of your “how” to do the “what”.

26
5. Future trends of Hospitality Industry (Luxury Star Category)

There would be fast development in the areas of design, nanotechnology, robotics, medicine, the
internet, security and law. Some of the changes that would be observed in next decade would are:

1. You Stay, You Sell: Guest’s virtual and physical social networks have long been ignored
as a channel of distribution but it would be monetized with spectacular results in future. Not
only are the distribution and commission margin costs a lot lower, but the quality of the
referrals is a lot more credible and brings in exactly the kind of guests the hotel is looking for.
The guest would not only choose his stay but also decide what he shall do with his
recommendations. Whether he should share his wonderful experience to his social network or
ask them not to trust all the hype.

2. Get to the point, Inform and Entertain the Guests: The unilateral media age is at an
end. In future the guest would neither be dependent or interested in what you have to say
about your services. He would his intelligence and reviews available across the web to make
decisions and spread a word. Hotel marketing campaigns would be created based on
collective user experience and would become as real as they are entertaining. Hotel PR
Managers will become viral marketers and spend time reaching out to niche social networks.

3. One YOU: The introduction of the ‘ONE’ virtual fingerprint. This is a global, non-
replicable key to user identity, credit, travel preferences, health and history, which is an RFID
+ DNA based identification & encryption system. This ‘fingerprint’ would contain layers of
information that users choose to make available to other entities based on need and
transaction. No more awkward and feeble attempts at hotel CRM. The guest would have a
virtual avatar which would travel along with him everywhere.

4. Your Guest needs Help, He needs to Talk: Enter the age of a one-touch, omnipresent,
always-on service line. All guests have to do is access their mobile device or projection
panels in hotel rooms and facilities to converse in live video with their very own concierge,

27
order-taker, host, guest service agent and guide. This is the ultimate mix of technology,
personal touch and convenience.

5. The Hotel Room will take care of your Guest: this is an intelligent room. normal room
to a guest but will have nanotechnology and gizmos aplenty. A room that can adapt to your
desired textures, colors and moods (twist the room as per your convenience as it makes the
guest feel at home or away). A room that cleans itself but can also take care of its human
occupants, from determining what temperature, music and lighting best suits their bio-rhythm
to what supplements their body needs in order to feel their very best.

6. Chef learns from the Guest: Hotel Restaurant menus will take choice to a whole new
interactive level, with a variety of fresh ingredients, cooking methods, suggestions and health
recommendations based on the guest’s health, tastes and moods. The guest would not have to
dependent on fixed available choices. He can create his own.

7. You Stay, Your Choice: Hotel revenue and inventory management systems would have
evolved to a level where every amenity and service can be chosen, packaged, sold and
delivered. The Guest would choose from all elements of his stay.

28
CONCLUSION

The implementation of CRM solution is very simple and efficient.

It requires:

 Adequate planning
 Effective communication
 Stakeholder involvement and mistake avoidance

As apparent form this study ITC, Taj and Oberoi have successfully organized and implemented
CRM initiatives. Thus proving the fact that key to creating a superior brand is making customers
happy and satisfied.

ITC HOTELS

The main areas which are identified by ITC to collect data are loyalty programs and their
efficient system for guest reservation. ITC has successfully implemented CRM in all the three
dimensions:

• People

29
• Process
• System
Benefits:

 Faster and customized solutions to customer needs


 Building a trusting relationship between the customer and hotel executives
 Customer Satisfaction and retention
 Better brand image and loyalty

THE OBEROI

Oberoi speaks of serving its customers exceptionally well. to stay ahead in competition they are
now focusing on building customer relationships to an intense level so that they can instigate
loyalty in customers which will gradually help them increase their profitability

CRM programs

 The Oberoi Plus


 Food Festivals
 Send invites to its regular clients

THE TAJ

They too are working intensely on building a warehouse of customer information

30
Contact management, using software like PMS to understand the spending pattern of the
customers. They employ data mining technique to get and act on data and also give credit to the
employees who get compliments from the guests.

Some of the prime loyalty programs are Taj Inner Circle and the Epicure plan to give the
customers a host of privileges as silver and gold card holders.

Some key learning’s are:

 Long term profitability and long lasting relationships are the outcome of, taking an extra step
to build mutuality and trust.
 Strategic consolidation of services help the organization build stable and long lasting
relationships
 Commitment from the management from top till bottom every entity must participate.
 Cooperation from cross functional teams.

31
RECOMMENDATIONS

Globalization is the new key focus area and matching customer service to the world standards is
the main focus of organizations. The time demands for change in the marketing strategies of
hotel industries Vis a Vis the marketing of products.

CRM is the new competitive advantage focus for any organization to establish itself as a superior
brand

Following are my recommendations based on my study on the given topic:

1. Suggestion boxes at various touch point/point of interaction with the customers.


There are several touch points in hotels such as front office, check in counters, bell desk
etc. Placing a suggestion box at such places can help in improving processes which are
prevalent moreover it will initiation to a new idea.

2. Obtaining feedback from external & the internal customers i.e., the employees.
Feedback mechanism should be two way i.e. from both employees and guest. Hotels
should give freedom to its employees to come up with innovative ideas. Good ideas
should be rewarded.

3. Hiring the right staff to match the customer expectations.

32
Hiring right person is again very important as they hotel industry requires a specific
attitude to serve the guest. It is very important to follow efficient HR practices

4. Audit sales data for further leads and follow-up


Tracking all the information after audit is done and data obtained can be used to do
segmentation of customers based upon which potential leads can be obtained. CRM
software allows tracking and managing such information.

5. Putting the right CRM software in place to match the organizational needs
Selecting right CRM software includes:
• Understanding current processes of hotel
• Managing change
• Integration of old and new software so as to preserve information.
• Implementing changes

6. Customer profiling, warehousing of customer information.


Customer information should be stored and retrieved with high level of efficiency. CRM
software should maintain secrecy as customer profiles are like assets to an organization.

7. Opt for personalization of service than for customization.


It’s really tough to maintain a personalized account for each and every customer. CRM
software’s can be used to track likes and dislikes of customers and services could be
offered to them based upon their preferences.

33
REFERENCES

http://www.guestware.com

http://www.indianmba.com/Faculty_Column/FC519/fc519.html

http://www.scribd.com

http://www.tajhotels.com

http://www.itchotels.com

http://www.oberoihotels.com

http://www.crmguru.com

http://www.magazine.indiabizclub.com/tourism-hotels/types-of-hotels

www.business.mapsofindia.com/india-industry/hotel-industry-in-india.html

34
35

You might also like