CUSTOMER RELATIONSHIP MANAGEMENT

Presented By:

Nirmay Abichandani M-09-01

Alok Chowhan M-09-11

Amruta Dadhe M-09-12

Anupam Thakare M-09-52

FLOW OF PRESENTATION

Hotel & Tourism Industry TAJ Hotels Segmentation, Targeting & Positioning Marketing Mix Marketing Strategies CRM Tools Used In Taj Hotel Loyalty Programmes of Taj Hotel Future Outlook/Recommendation

HOTELS & TOURISM INDUSTRY Hotels in India have supply of 110,000 rooms According to the tourism ministry, 4.4 million

tourists visited India in 2009 and demand will soar to 10 million in the year 2010 - to accommodate 350 million domestic travellers

India ranks 18th in business travel and will be among the top 5 in this decade

With demand-supply disparity, the room rates are most likely to rise 25% annually and occupancy to rise by 80%, over the next two years

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 luxury range leading to increase in manpower requirements from 7 million recorded in 2002 to 15 million in 2010

Hotels today are implementing innovative ways to capture demand, lower operating costs, and defer maintenance, renovation and expansion activities

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. 50 international budget hotel chains are moving into

India to stake their turf hence good opportunity in future for Indian hotel industry

TAJ HOTELS The Indian Hotels Company Limited (IHCL) and its subsidiaries

are collectively known as Taj Hotels Resorts and Palaces and are recognized as one of Asia's largest and finest hotel company

Mr. Jamsetji.N.Tata was the founder and opened first hotel The Taj Mahal Palace Hotel, Bombay in 1903

Taj Hotels Resort and Palaces comprises more than 60 hotels in 45 locations across India with an additional 15 international hotels in the Malaysia, United Kingdom, United States of America, Bhutan, Sri Lanka, Africa, the Middle East and Australia

Segmentation, Targeting & Positioning

Segmentation: The segmentation of the Taj Mahal hotel is mainly upon lifestyle and income. It focuses on upper class, luxury, leisure travellers and business professional.

Targeting:  Targeting the most luxurious segment. The brand will have properties on the best locales and attract the most premium customers. Home to the Royalty, heads of states, tycoons, captains of industry, corporate nomads, star celebrities, kings & queens and Hollywood royalty, Maharajahs and rockstars.

Positioning: The Taj marked out three separate entities for the Taj Group: Business, Leisure and Luxury. Though the concept of these sub-brands had come into existence earlier, in the mid nineties, it was in 1999-2000, that the hotels became operationally different. It positioned itself as luxury heritage hotel with excellent location and services.

Grouped into 3 categories-LuxuryLeisureBusiness

Core product is space - supplemented with services like restaurants, health club, banquets, discotheques, bar, business centers

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

Marketing Mix

Product:

Types of AccommodationTower Wing RoomsHeritage Wing RoomsTaj ClubSuitesFacilities and Services

PRICE As a result of various overheads and

superior quality, prices are not affordable by all

Rooms start at Rs 20,000 and suites start at Rs 75,000

The Presidential Suite is around Rs 6-7 lakh

The target audience comes to Taj for its ambience and world-class standards

High prices are justified as they help Taj retain exclusivity

PLACE

Taj Hotels resorts and Palaces comprises more than 60 hotels in 45 locations across India with 15 in International Locations

Taj offers vantage locations like industrial towns and cities, hill stations, wildlife destinations, historical and pilgrim centers

Also encompasses a unique set of iconic properties rooted in history and tradition

PROMOTION Loyalty programs, clubs, memberships,

privilege. Eg- Inner circle, JuniorLeague, club

Surprises such as weekend savers, value vouchers, book early get more

Offers during seasons and off-season Monthly letters to ‘Inner Circle

Customers’ about upcoming events Holiday package promotions at

exhibitions Cross-promotions

PHYSICAL EVIDENCE 5 star-hotel Well designed, spacious lobby Corridor aisles graced with genuine

artifacts and antiques Traditional Indian welcome to guests

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

PEOPLE Skilled personnel Personal Agents Technological persons Travel agents Butler Bell-boys Restaurant staff House-keeping

Caters to two segments a) Foreign tourist in winter b) Domestic tourist in non peak season

Indians urged to take more short holidays through unique price package

More value offered at same prices in Goa, Sri Lanka, etc e.g.: Taj Samudra at Colombo at Rs.24,500 for 4 night holiday

Many first-timers now loyal customers Variety of holiday packages for various target groups e.g.:

Senior citizens, survivors etc. Inner Circle Junior League for children, arranging various

activities

Marketing Strategies

Tricks With Treats

CROSS-PROMOTIONAL ACTIVITIES

Marketing alliance with Raffles international Ltd, Singapore, covering 14 hotels under Taj and 12 under Raffles

Joint promotion through loyalty programs e.g.: Taj inner circle and Raffles elite

Such an alliance has encouraged the staff to think globally and in an enlightened and intelligent way, which will help them to grow and expand in the next century

Alliance with CC companies, Cell phone operators and airlines to pull out all stops of marketing fronts

COMPETITION TO GLOBAL BRANDS

Introduction of new systems like corporate standardization, renovation of previous properties, loyalty programs and spa services

Acquisition of properties outside India E.g. Far East, U.S, Middle East etc.

Locations with historic and traditional significance also help in promoting tourism in India E.g. Palaces, Leisure properties etc.

Juxtaposition of traditional and contemporary styles

CUISINE EXPERIENCE Focus on food and beverage serves as a

differentiator Dining experience builds perception of a hotel in

India The Taj brand’s penchant for creating

outstanding culinary experiences has increased footfall of non-resident guests, creating significant revenue source

First to introduce Sichuan, Thai, Mexican and Italian cuisines in India

PURE – organic restaurant introduced at Taj Lands End

TECHNOLOGY INTRODUCTION

Innovative service called ‘Cyber-butlers’ allow guests to get connected to the Internet in any part of the hotel

Provision to corporate clients with practical utilities and luxury

Wi-Fi technology to promote ‘green work stations’ particularly at a time when India is emerging as an important MICE (Meetings, Incentives, Conferences and Exhibitions) destination

ACQUISITIONS

The overall strategy is to ensure that a third of the brand’s revenues come from global acquisitions

Acquisition of Ritz-Carlton in Boston and Campton Palace in San Francisco, and plans to enter gateway cities like Paris, Frankfurt, Chicago, and London in the near future

Alliance with Okura hotels in Japan

CRM Tools used in TAJ

1. Guest preference sheet:

•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.

2. CRM Software:

•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.

3. Fidelio:

•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.

4. Wow card:

•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. 

5. GRE Courtesy call:

•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.

6. Room Feedback form:

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

 

7. GSTS (Guest Satisfaction Tracking system):

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. There are few loopholes in the system such as• Email ids not updated which automatically stops the guest from giving the feedback.• Guest profile not saved intentionally.

Loyalty Programmes of Taj Hotel Taj Inner Circle Programme: The Taj Inner Circle is the frequent guest programme of Taj Hotels Resorts and Palaces. Besides a bouquet of benefits, as a member one can earn points when they stay or stop by for a meal at one of their restaurants at participating Taj Hotels in India and abroad.

Member can earn points on their eligible spends on room, food and beverage, laundry, telephone and business centre. They can also earn points on their spends at the Taj Khazana boutiques located in select Taj Hotels in India. Redeem their points for room nights, memorable meals, and gift certificates redeemable at Taj Khazana, Taj Salon, Jiva Spa, and gifts from a hand-picked selection. Taj Advantage Plus: Taj Advantage Plus is the perfect programme for their valued corporate bookers in India and comes power-packed with great earning and redemption opportunities, special benefits and exciting offers. Enrolment to the programme is by invitation only. Taj Alliance Preferred Partner Programme: The Taj Alliance Preferred Partner Membership (TAPP Me) Programme has been designed exclusively for their partners in the travel trade in India. Enrolment to the programme is by invitation only.

Programme 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

NEW SYSTEM IMPLEMENTED IN TAJ HOTELS

(Seranata Intraware)

•The new solution has provided Taj hotels, resorts and palaces with a truly integrated central platform that streamlines all reservations, distribution and customer relationship management process. •The central reporting module provides key performance indicators and business analysis capabilities for all hotel area groups. •The new campaign management module supports Taj’s ongoing endeavour to win new customers and to encourage return business based on targeted campaigns to the existing customer base.

Future Outlook

•TAJ Group has already entered the low cost chain of hotels with its venture into Ginger Hotels. Hence, we as a group, decided to come up with a new service of TAJ which would be in accordance with what Taj stands for – high class and exclusivity.

•The new venture for TAJ would be a Cruise ship services. This has the following features:

1. Start cruises to popular domestic and international destinations. Eg: Goa, Sri Lanka, Singapore.

2. For international, only start with the South-east Asian countries and then expand to other international boundaries based on the success levels.

•TAJ is one of the most famous 5 star hotels in the world. It has always been associated with luxury and premium service. It also commands a huge customer base which belongs to the society’s elite class. •Most of these customers have been patronages of TAJ Group for a long time and they will definitely appreciate this new line of services by TAJ.

Thank You!!