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CRM- A Pathway A Case Study of Hotel Industry
Rajashri Ramesh Chavan Dr. Sarang Shankar Bhola
Acknowledgement
This book presents the subject of CRM in Hospitality from both academic and pragmatic points of view. It attempted to discuss CRM concepts and implementations. This book highlights the customers profile towards the hospitality industry in Satara District as well the CRM efforts by the hospitality sector. Book has also prescribed the model for CRM implementation in the form of prescription. We gratefully acknowledge the significant contribution of all hotel owners and managers who took time from their busy schedule to discuss and interact with the author. We express our sincere gratitude to them. In the course of writing it, we have received much encouragement from our family members. Special thanks to publisher for the patience and dedication in this subject.
MRS. RAJASHRI RAMESH CHAVAN DR. SARANG SHANKAR BHOLA
Sr. No. 1.
2.
3.
4.
5.
Chapter CHAPTER I 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 CHAPTER II 2.1 2.2 CHAPTER III 3.1 3.2 3.3 3.4 3.4.1 3.4.2 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 CHAPTER IV 4.1 4.2 4.3 CHAPTER V 5.1 5.2 5.3
Contents INTRODUCTION TO STUDY Introduction, Management Problem Research Problem Objectives Hypothesis Scope of The Study Importance of Study Research Methodology PROFILE OF HOTEL INDUSTRY Satara Profile Hotel Industry Profile CONCEPTUAL BACKGROUND Introduction Review of Literature Concept of CRM Definition And Meaning School of Thought on CRM Evolution of CRM Objectives of CRM CRM Issues Defectors Importance of CRM Types of CRM CRM Strategy Steps Involved In the CRM Process CRM Implementation Road Map Process View of CRM Steps In A Sound Relationship Efficient Customer Service Relationship Building Service Quality Model Conclusion DATA ANALYSIS AND INTERPRETATION Introduction Data Analysis of Hotel Data Analysis of Customers CONCLUSION AND SUGGESTIONS Introduction Findings Suggestions Annexure References
Page No. 1-10 1 1 2 2 3 3 3 4 11 to 32 11 16 33 to 70 33 35 39 40 42 43 44 45 45 46 47 54 54 60 62 63 63 64 66 70 71 to 116 71 71 90 117 to 130 117 117 124 131 137
Sr.
Table No.
Table Title
1. 2. 3. 4. 5. 6.
1.1 1.2 1.3 2.1 2.2 2.3
Page No. 6 7 8 13 21 22
7.
2.4
Existing Hotels in Satara District Sample Distribution of Hotels Distribution of sample customers as per the SEC Administrative Division of Satara District Hotel Scenario in India Foreign exchange earnings through foreign tourist arrivals India‘s 10 Best Hotels
8.
2.5
Top ”Undiscovered Jewels‘ in India
23
9. 10. 11.
2.6 2.7 2.8
23 23 24
12. 13. 14. 15.
2.9 2.10 2.11 2.12
Top Ten Business Hotels in India Domestic travelers in India The Total Number of Hotels Registered In Satara District Dinning Occupancy Lodging Occupancy Other Occupancy Services offered by hotel
25 26 27 28
16. 17. 18. 19. 20.
2.13 2.14 2.15 2.16 2.17
Promotion mix Trusted tool of promotion Most profitable customers Repeated Customers‘ Percentage Manpower in sample hotels
29 30 30 31 31
21. 22. 23. 24. 25. 26.
2.18 4.2.01 4.2.02 4.2.03 4.2.04 4.2.05
32 71 72 72 73 73
27. 28.
4.2.06 4.2.07
29.
4.2.08
30.
4.2.09
31.
4.2.10
Most served customers Record of Customers‘ Data Customers Record Maintaining Method Difficulty in Recording the Customers‘ Data Availability of CRM Software Perception of Hotel Officials towards Need of Customers‘ Data Make use of Customers‘ Data Official‘s Perception to Get Benefits of Customers‘ Data Perception of Hotel Officials on Importance of Customer‘s Data Perceptual Ways And Means to Keep Customers Loyalty Need To Appoint the Public Relation Officer (PRO)
22
74 74 75 76 77
32.
4.2.11
Official‘s Justification On Requirement Of PRO
78
33.
4.2.12
78
34.
4.2.13
Correspondence Is Made To Customers For Maintaining Relations Motive behind Correspondence with Customers
35.
4.2.14
36.
4.2.15
37. 38.
4.2.16 4.2.17
39. 40.
4.2.18 4.2.19
Media Preferred For Correspondence with customers Methods Used To Build Strong Bonds With Customers Methods to Treat Loyal Customer Management Communicates New Product To Customers Method to Seek Customer‘s Feedback Action taken on feedback of customers
41. 42.
4.2.20 4.2.21
Informal Relation Management of Customers‘ Information in Hotel
85 85
43. 44.
4.2.22 4.2.23
87 88
45.
4.3.01
Reasons for shifting hotel by customers Utilization of computerized database by hotel officials Distribution of Samples as Per the SEC
79 80 81 82 83 83 84
90
46.
4.3.02
Educational Qualification as Per the SEC
91
47. 48.
4.3.03 4.3.04
92 93
49.
4.3.05
50. 51. 52.
4.3.06 4.3.07 4.3.08
53. 54.
4.3.09 4.3.10
Gender as Per the SEC Distribution of sample of customers as per Monthly Household Income Distribution of samples of customer as per Occupation Distribution of sample as per Family Members Sample customer‘s frequency of visit to Hotel Sample customers Monthly Spending for Dinning in Hotel Monthly Spending For Lodging in Hotel Monthly Spending For Permit Room in Hotel
55.
4.3. 1
Price Afforded For Services
100
56. 57. 58. 59. 60. 61.
4.3.1 4.3.1 4.3.1 4.3.1 4.3.1 4.3.1
100 101 102 103 103 104
62.
4.3.18
63.
4.3.19
Preferences of Enjoyment in Hotel Preferences for Food in Hotel Preferences for Ambience in Hotel Preference for Prompt Service in Hotel Source to Know About Hotel Communication received from Hotel officials to customer. Sample customer like to receive communication from Hotel officials Preferred communication Media by sample customers
94 95 96 97 98 99
105 105
64. 65. 66.
4.3.20 4.3.21 4.3. 22
Customers Expects Benefits for Repeated Visit Occasions to Celebrate In Hotel Sample customer celebrates Birthday in hotel.
106 107 108
67. 68.
4.3.23 4.3.24
Sample customer celebrates Anniversary at hotel. Sample celebrates Achievements in hotel.
109 110
69. 70. 71 . 72 .
4.3.25 4.3.26 4.3.27 4.3.28
Sample celebrates Special Occasion in hotel. Sample celebrates other occasions in hotel Registration of Complaint or Suggestion Response to Complaint
111 112 113 113
73 . 74 . 75 .
4.3.29 4.3.30 4.4.01
Customers expectations on complaints Reasons to Stay Availability of CRM Software
114 115 116
List of Figure
Sr. 1. 2. 3. 4. 5.
Figure No. Figure Title 2.1 Organization of a hotel 3.1 3.2 3.3 3.4
The Customer Pyramid CRM Implementation Road Map Process View of CRM Service Quality Model
Page No. 19 57 60 62 67
LIST OF ABBRIVATIONS
Sr. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27.
Abbreviations CRM MRSI SEC FTAs CSA SFA ADB MNC IIB&B FEE DPPH KM KCRM ICT RM E-CRM RFM CSS CIC CTI EMA TES GCRM OLAP LTV SERVQUAL PRO
Full Form Customer Relationship Management Marketing Research Society of India Socio Economic Class Foreign Tourist Arrivals Customer Service Automation Sales Force Automation Atithi Devo Bhavah Multi National Corporation Incredible India Bed and Breakfast Foreign Exchange Earning Domestic Promotion and Publicity including Hospitality Knowledge Management Knowledge Oriented Customer Relationship Management Information of Customer Transaction Revenue Management Electronic Customer Relationship Management Recency Frequency, Monetary Customer Service and Support Customer Interaction Centre Computer Telephony Integration Enterprise Marketing Automation Technology Enabled Selling Geographic Customer Relationship Management On line Analytical Processing Life Time Customer Value Service Quality Public Relation Officer
CHAPTER 1 INTRODUCTION TO THE STUDY
1.1 Introduction In era of globalization every industry has scope to grow but there is stiff competition for this growth, industry tries to adopt and develop its own strategy to face competition. In recent years Relationship Marketing has become increasingly important in Marketing Planning. One cannot rely completely on conventional marketing tools and concepts anymore as they are the things of past. It has been observed, customers are less brand loyal, as there are ample choices available in the market. There is always apprehension of brand shifting and loyalty shifting from one brand to another, hence top priority at which the corporate big buddies should focus is customer retention and minimizing loyalty shift that is possible through relationship marketing. Hotel Industry is one of the fastest growing service industries and contributes more to the employment and profitability. Emerging positive trends in tourism, globalization and surplus disposable income in the hands of people supporting hotel industry to grow. A Hotel is an establishment operated for profit offering safe food, safe accommodation and safe facilities, provided a person who is 1
willing to pay for it. A hotel is considered to be a "Home away from home". The general purpose of Customer Relationship Management (CRM) is to enable organizations to better manage their customers through the introduction of reliable systems, processes and procedures for interacting with those customers. Major areas of CRM focus on service automated processes, personal information gathering, processing and self-service.
1.2 Management Problem It has been observed that Satara Hotel industry following conventional, orthodox way of management. They did not maintain any special record of the customer i.e., their preferences, their likes-dislikes and consumption pattern. Corporate is dreaming of
Hotel, Catering and Hospitality management by Joe D,SA customization in an effort to own the customers and to build loyalty towards corporate brands. Hotel industry is too not exception to the same. Hotel is unique in two viewpoints one is service oriented and people oriented industry, and offers highly personalized services to customers. Since no two customers have same personalities and same needs. And another view is that it deals with two highly perishable commodities i.e. rooms and food. Now a day more options are available to the customers. There are possibilities that customer shift their loyalty. Customer‘s satisfaction is important part in marketing. To understand customers and to offer more and more personalized service is a major challenge before management.
1.3 Research Problem To understand, anticipate, manage and personalize the existing and a potential customer is a task. To know the customer behavior and preferences is important to personalize the services. Customer relation is a long term and continuous process. Relationship vis-a-vis emotional touch is useful in maintaining customer and retains the customer with minimum cost. To maintain the relationship with customer, management should know the background of the customer their preferences, attitudes; behavior, which is possible with customer relation programme. The title of present study is, ”A Study of Customer Relationship Management with reference to Hotel Industry in Satara District‘. Title signifies study of customer relationship management in hotel industry. Study confines to Satara district of Maharashtra.
1.4 Objectives Present study purports following objectives 1
To study the concept of Customer Relationship Management.
2
To evaluate the existing CRM in hotel industry in Satara district.
3
To identify the market segments of Hotel industry.
4
To develop measures to implement CRM in hotel industry
1 .5 Hypothesis Present study is descriptive in nature hence researcher had formulated working hypothesis. CRM is not implemented in hotels and hotels do not maintain data of customers. The data on the basis of likings food habit, room services, living habit and other personal likings of the customer which is the thirst of CRM. In the progress of research the data received was self explanatory to accept the hypothesis hence no reformulation of hypothesis is made.
1.6 Scope of the Study Present research was undertaken in Satara District. The district housed 11 tahasils viz. Satara, Karad, Phaltan, Wai, Mahabaleshwar and Koregaon, Jawali, Patan, Man, Khatav and Khandala. The researcher had covered various categories of hotels like Downtown, Resort, Star graded and other types of hotels. Following towns were selected, Satara, Mahabaleshwar, Karad, Phaltan, Wai, Panchgani, Koregao, Medha and Umbraj since these places found to have sufficient density of population of hotels. The study is revolved around Customer Relationship Management (CRM) in hotel industry in respective towns. Macro perspective of CRM is adopted since sufficient study into CRM with respect to hotel industry has not been made. Collected data has been classified, tabulated and analyzed with the help of statistical tools viz. percentages, weighted average.
1.7 Importance of Study Finding out different ways to maintain and retain customers is inevitable to have better survival in this era of consumerism. Customer relationship is important and touchy factor since industry is inclining towards customization especially service sector. By studying the existing ways of CRM though conventional and orthodox analyzing the situation on the basis of environmental factors of hotel one can make tailor-made marketing strategy. This strategy may help to create a culture of consumer trust. This relation promises the customers with high quality services and fair price. Naturally this is going to help to increase the occupancy which results in increasing profitability of the industry. This study is providing model of CRM based on macro observations, which may suit the hotel industry on the magnitude to bring prosperity and attaint set objectives.
1.8 Research Methodology Present research is descriptive inferential in nature formulate to collect data related CRM in hotel through survey method. Methodology adopted for this study is as follows.
1.8.1 Methodology Research have been undertaken to know the CRM activities in hotels especially hotels which are popular and known for some specialty. The title was finalized as, ”A study of customer relationship management with reference to hotel industry in Satara district‘. The prime focus of this research was to know the CRM implementation and customer data management in selected hotels. After setting up of objectives on the basis of hypothesis researcher has taken a review of literature in thirst to peep in depth the variables got an impact on CRM. The scope of research was limit to Satara District of Maharashtra State of India. Researcher has collected data from government officials about number of hotels registered and classified it as per pre decided stratum. Since the data was required to be collected from hotel officials and customers two distinct schedules were prepared and tested on samples. The schedules were modified and used for final data collection. Collected data have been entered on electronic spread sheet for further classification, tabulation and analysis. Required tabulations were taken for analysis and simple statistical tools were applied for simplification of data. The research was descriptive in nature. The data collected is articulated with the help of five chapters.
1.8.2 Data Required Present study is in thirst of data to suffice set objectives viz. conceptual inputs of CRM, conceptual inputs regarding hotels and their accepted norms and definitions, scenario of Indian hotel industry, scenario at Maharashtra state level, scenario of Hotel industry in Satara district on the magnitude of CRM, the number of hotels in Satara district, and current state of Customer Relationship Management, profile Satara District. Profile of customer‘s who visit hotels; includes, demographic profile of customers, the brief background of purchases and value proposition i.e., perceived benefits and perceived cost and their expectation according to socio economic class.
1.8.3 Data Sources Required data have been collected from secondary and primary sources. Data regarding district profile, Indian hotel industry, Maharashtra‘s position, number of hotels in Satara district, various concepts of hotels and their classification, the conceptual data of CRM i.e. meaning, definition of CRM, issues of CRM, its process and steps, types of CRM, benefits of CRM, its strategies customer retention strategy has been collected through secondary source referring books, magazines, journals, websites, and records of government offices. The data regarding existing Customer Relation Management status of hotel, customers expectation, customer value proposition, occupancy, formal and informal ways to handle the customer, awareness of CRM, views and efforts towards CRM, problems in implementation of CRM programme have been collected with the help of interviews with hotel managers, staff in sample hotels and customers in sample hotels.
1.8.4 Instrument Structured coded open and close ended schedules have been designed to collect data from respondents in different sample hotels in Satara district. Two distinct schedules were prepared one each for hotel management and customers in hotel. These schedules were designed to elicit detailed information about status of Customer Relation Management in hotel, customer‘s expectation, customer value proposition, occupancy, formal and informal ways to handle the customer, awareness of CRM, views and efforts towards CRM, problems in implementation of CRM programme. Schedule for hotel management consist A to J structures. The structures were titled as demographic information, product, price, physical distribution, promotion, people, process, CRM and open end questionnaire. Every structure contains number of open and close ended questions to elicit required information. Schedule for customer consist 28 questions mostly close ended to elicit demographic information of customers and their value proposition.
1.8.5 Sampling For present research sample units are hotels and customers.Population for this research is finite in nature, 10% of total population is taken as samplesize. The sample is taken from operating hotels in the field. Hawkers and small hotels,restaurants are excluded from the list since they are premise of this study. (Refer limitations number 1 and 2).The researcher‘s area for sampling is as follows
Table 1.1 Existing Hotels in Satara District Following table shows number of hotels registered in Satara District as per taluka places. Sr. No. 1 2 3 4 5 6 7 8 9 10 11
Name of Taluka No. of Hotels* Satara 239 Karad 289 Phalatan 286 Wai 221 Mahabaleshwar 249 Koregaon 196 Jaoli 84 Man 267 Khatav 189 Khandala 185 Patan 637 Total 2842 Source (Tahsil office of respective taluka) *Number of hotels registered with Tahasil office and figures of existing hotels are not matching.
Stratification of above hotels as per their category is not available for selectingproportionate sampling which was the thirst of the research.Study was required samples were exist possibility of implementation of CRM. Nonproportionate Convenient stratified sampling technique has used to select the samples.Final sample taken for this study is as follows.
Table 1.2 Sample Distribution of Hotels Following tabulation shows sample distribution of hotels in Satara district. The distribution is done on three variables viz. location of hotel, type of hotel and facility available in hotel as follows. Sr
Location
Downtown D L Both
Resort L
Both
Star graded
Other
Total
D L Both D L Both
1.
Satara
1
2
2
- -
-
-
-
2
2
-
1
10
2.
Karad
-
-
1
- -
-
-
-
2
-
-
2
5
3.
Mahabaleshwar
-
1
4
- -
2
-
-
1
-
-
-
8
4.
Wai
-
2
2
- -
-
-
-
-
-
-
-
4
5.
Panchgani
-
-
1
- -
-
-
-
2
-
-
-
3
6.
Phaltan
-
-
1
- -
-
-
-
-
-
-
2
3
7.
Koregao
2
-
-
- -
-
-
-
-
-
-
-
2
8.
Medha
-
1
-
- -
-
-
-
-
-
-
-
1
9.
Umbraj
-
-
-
- -
-
-
-
-
-
-
1
1
Total
3
6
11
- -
2
-
-
7
2
-
6
37
Source :( Compiled by researcher) Satara district is having various categories of hotels. Researcher has studied thirtyseven hotels in Satara district. The hotels were located in towns such as Satara city, Mahabaleshwar, Panchgani, Karad,, Phaltan, Wai, Koregao, Medha, and Umbraj. Out of these majority of hotels i.e. 54.05% belongs to downtown category, 18.92% to Star category and only 5.41% Resort category which are located at hill station Mahabaleshwar, 21.62% to other category which are neither Resorts, Star graded nor Downtown but has facility of lodging and dining has earn good reputation in respective location. These hotels also found to cater to specific client segments. Location is vital aspect in hotel industry. Majority of hotels in Satara district are located at crowded places. Stratified disproportionate convenient sampling is used for selecting hotels in Satara district. The sample size of hotels in Satara district is 37. Customers selected for interview by using purposive sampling method. The sample size of customer is 151. Researcher has also analyzed class customers visit to hotel. Convenient sampling technique has been use. 151 individual customers has been visit to elicit data on customer demography and CRM.
Table 1.3 Distribution of Sample Customers as Per the SEC Following table shows distribution of sample customers as per SEC. the SEC which have been developed by the market Research society of India (MRSI) Sr. No. 1 2 3 4 5 6 7
SEC
No. of samples
A1 63 A2 42 B1 28 B2 14 C 1 D 3 E1 Total 151 Source: (compiled by researcher)
% 41.72 27.81 18.54 9.27 0.66 1.99 100.00
1.8.6 Concepts Adopted The very title of research shows that present research is about CRM in Hotel industry.These concepts are not new to many people and have its own colloquial importance.Researcher has made an effort to probe into the definitions and concepts of these two asfollows.Plethora of definitions and explanations are found in literature which is explained detailedin later chapter. To this research researcher has designed research keeping in mindfollowing concepts. Customer Relationship management is a business philosophy, set of strategies, systems, program focuses on identifying and building loyalty with most valued customers.1 Customer Relationship Management is a business strategy that aims to understand, anticipate, manage and personalize the needs of an organizations current and potential customer.2 Hotel is a place where people stay for short time and pay for their meals, accommodation, modern amenities and facilities. India has hotels divided in different categories depending on their location, facilities, infrastructure and amenities provided.
1
Nair Suja (2006),”Retail Management”,Himalaya publishing House Pvt.Ltd., Bombay,3rd edition.page no333. 2 : www.customerservicemanager.com
Hotels are categorised in many ways few categorisation is Downtown hotel, Suburban hotel, Resort, Motel, Transit hotel, Flotel, Star hotel and Apartment hotel. Socio-Economic Class (SEC) The market Research society of India (MRSI) developed and appropriate alternative to Monthly household Income, which was called S.E.C, I.e. socio economic classification. The two demographic variables i.e. chief wage earners education and occupation are used to economic classification. The classification was done across five groups-A, B, C, D, and E. and further A, B, E groups had sub groups-A1, A2, B1, B2, E1 and E2.
1.8.7 Data Analysis Data has been analyzed using simple statistical tools. Data has been taken on statisticalsoftware package and calculations have been done. Simple statistical tool viz. percentage,weighted average and ranking have been used to analyze the data.Data of sample hotel is analyzed using percentages. While calculating percentages bothtotal samples and stratified samples are taken into consideration.Data of samples customers is analyzed using percentages. Sample customers are stratifieson the basis of socio-economic class of customers.Hypothesis is tested with crud method since the data to test the hypothesis is selfexplanatory.
1.8.8 Organization of Research Project The research study is organized in five chapters as follows, Chapter No. 1, titled as, 'Introduction to Study', contains introduction, management problem, research problem, hypothesis, objectives, scope of the study, importance of study, methodology used for study and limitations of study. Chapter No. 2, titled as, ‘Profile of Hotel Industry‘, which enumerates, Satara profile Contains introduction, history, location, administrative divisions, demography, economy, tourism, transport & communication, climate and soil, agriculture, irrigation, industry, co-operative sector, education, vocational education and training. Hotel industry profile consist introduction, meaning ,classification of hotel, organizational of a hotel, Indian hotel scenario, foreign tourist arrivals (FTAs), Maharashtra accounts for the larges number of domestic tourists, satara district hotel profile.
Chapter No. 3 titled as, ‘In to the Conept of Customer Relationship Management’, this narrates Introduction, review of literature, concept of CRM, definition and meaning, school of thought on CRM, evolution of CRM, objectives of CRM, CRM issues, defectors, importance of CRM, types of CRM, operational CRM, sales force automation(SFA), customer service automation(CSA), analytical CRM, campaign management, geographic CRM, collaborative CRM, CRM strategy, steps involved in the CRM process, CRM implementation road map, process view of CRM, steps in a sound relationship, efficient customer service, relationship building, service quality model, conclusion titled as ’conceptual background‘. Chapter No. 4 titled as,
‘Data Analysis and Interpretation', this content
Introduction, data analysis of hotel, analysis of data collected from customers and data interpretation and hypothesis testing. Chapter No. 5 titled as, 'Findings and Suggestions', houses findings drawn on data and prescriptions of researcher content introduction, findings of sample hotels, findings of sample customers, customer segmentation and suggestions. Besides this, research report has been appended by schedules and references.
1.8.9 Limitations Present research suffers with following limitations. These limitations may affect the findings of this research. The limitations are as follows. 1
The Hotel records in Tahsil offices in respective of talukas are not matching with
existing number of hotels. The main reason being is it records only number of hotels registered and adds on into existing hotel list. Hotels which are closed down or nonfunctioning are not recorded hence the list is not updated which shows unreliable population of hotels. 2 Any premises small or big, stable or mobile (hawkers), which serve the food, are considered as a hotel for registration at Tahasil office, which is not the premise of this study. 3 Many hotel customers denied disclosing personal information; hence it has got impact on the determination of segmentation of hotel customers. 4 Hotel managers were reluctant to disclose exact figures of their occupancy etc.
CHAPTER 2 PROFILE OF SATARA DISTRICT AND HOTEL INDUSTRY Present chapter narrates profile of Satara district and profile of hotel industry in Satara. The chapter is divided into two parts. Part one narrates profile of Satara District and part two details about hotel scenario in India, Maharashtra State and Satara District.
2.1 Satara Profile
2.1.1 Introduction and History Satara is a small town having very rich history. It has natural beauty, which is one of the important attractions to the tourist. That provides excellent opportunity to the hotel industry to flourish. Therefore, researcher is interested to highlights the brief history of Satara city and district. It also furnishes information about potential occupational opportunities available in Satara city and district Pandavas stayed in Wai is one of the oldest mythological beliefs. Historical inscriptions are as old as 200 B.C, which reveal that probably Karad is the oldest known place in Satara district. In 451 to 455 AD, the Empire of Chandragupta II (Mahendraditya Kumargupta) extended as far as Satara district when he ruled in Deccan. The Mauryan Empire in the Deccan followed by the rules of "Satvahans" for about two centuries between 550 A.D. to 750 AD. Then in 1296, first Muslim invasion of the Deccan took place. It is to counter Mughal rulers attacks Shahaji's son Shivaji, the founder of Maratha Empire had begun to establish himself in the hilly part of Poona. Shahaji was subhedar of Pune and Supa. Shivaji was in possession of his fathers (Subhedari) at Pune and Supa. Western part of Satara district covered by dense forests, high hills which was the main reasons why Shivaji Maharaj built about 25 forts in around Satara. He had fought with Mughals throughout his life. Due to growing exploits of Shivaji, Mughal king Adilshah sent Afzal Khan the giant sardar of Bijapur to end the Shivaji's kingdom. A huge army accompanied Afzal khan had historical defeat at Pratapgad was real beginning of
Maratha rule. In 1663, Shivajiraje conquered Parali & Satara fort. He requested his 'Guru' Shri Samartha Ramdas Swami to stay at Parali fort that later named as ”Sajjangad‘. It is just 12 kilometers from Satara city. Satara city situated on the slope of 'Ajinkyatara' fort, earlier, known as Satara fort. After the death of Shivaji Maharaj, Aurangjeb conquered Satara fort later won by Parshuram Pratinidhi in 1706. Shahumaharaj crowned on this Satara fort in 1708. After third Anglo-Maratha war in 1818, the British Empire annexed most of the Maratha territory to Bombay Presidency, but restored the title Raja Pratap Singh, and assigned to him the principality of Satara, an area much larger than the present district. Because of political intrigues, he deposed in 1839, and his brother Shahaji Raja placed on the throne. This prince, died without male heir in 1848, Satara annexed by the British government, and added to Bombay Presidency. The current king of Satara, Chh. Udayanraje Bhonsale is the 13th descendent of Shivaji Maharaj. Satara known for Prati Sarkar (Parallel Government) during the independence struggle, During Quit India Movement, this parallel government replaced British in rural areas for 4.5 years from August 1943 to May 1946.
2.1.2 Location Satara city lies on National High way No 04, 125 km. south to Pune and 125 km north toKolhapur. North Latitudes 17.5 to 18.11 East Longitude 73.33 to 74.54.Satara district attached to Pune district to its north, Solapur to east, Sangli to south,Ratnagiri to west and Raigad district lies to its northwest
2.1.3 Administrative Divisions Satara district has four administrative divisions and eleven tahasils.
Table 2.1 Administrative Division of Satara District Following table narrates administrative division of Satara District. Sr. Name Taluka of SubDivision Satara 1. Jaoli Satara Koregaon Wai 2.
3. 4.
Wai
Phaltan
Head Quarter
No.of No.of Pop. Villages Sajja's Rural
Pop. Urban
Population Total
Satara Medha Koregaon Wai
198 218 139 120
72 51 57 38
2,70,814 1,24,660 2,36,686 1,58,203
1,69,605 16,539 31,090
4,40,419 1,24,660 2,53,225 1,89,293
Mahablesh M'shwar 55 war Khandala Khandala 66 Phaltan Phaltan 123
9
28,542
26,016
54,558
25 57
1,07,987 2,62,748
11,887 50,798
1,19,874 3,13,546
Man
42
1,79,069
20,494
1,99,563
60,093 11,619 3,98,141
2,60,483 5,43,794 2,97,491 27,96,906
Dahiwadi 104
Vaduj 141 53 2,60,483 Karad 220 76 4,83,701 Patan 343 66 2,85,872 Total 11 1727 546 23,98,765 Source: (http://satara.nic.in/ dated 12 June 2009 at 8 pm.) Karad
Khatav Karad Patan
Satara district has four sub-divisions namely Satara, Wai, Karad, and Phaltan. and 11 talukas viz. Satara, Jaoli, Koregaon, Wai, Mahabaleshwar, Khandala, Phalatan, Maan, Khatav, Karad, and Patan with 1727 villages. Satara district has total population of 27, 96,906 of which urban is 3, 98,141 and rest 23, 98,765 is rural population.
2.1.4 Demography Satara district covers the total areas of 10484 sq. kms. Out of 27, 96,906 total population,male is 14, 02,301 and female 13, 94,605. Average literacy rate is 78.52% of the totalpopulation, male 88.45% and female literacy rate is 68.71%.Satara city is district headquarter of Satara district. Satara housed mixed income groups ofsocio economic class. This city is treated as pensioner‘s city.
2.1.5 Economy Satara is mainly an agricultural district. The major crops of the district are sugarcane, bajara, jowar, wheat, rice, ghewada, gram, groundnut, potato, onion, and soyabean. Fish cultivation is also another source of income in this district. There is total 14000 hectare land used for fish cultivation. There are 10 major, 13 medium and 80 minor irrigated projects are currently running. Among several industries, sugar industry and dairy are the major source of employment in Satara district.
2.1.6 Transport Total 130 kms National Highway No.4 connects Satara district to state and national commercial capital of India i.e. to Mumbai and major destinations of state and country. Several State Highways measuring 963 KM. and 1886 KM district roads‘ connect neighboring districts and villages within the district well. Total 124 KM train route, in district connects Satara city and district to state capital i.e. Mumbai and other important cities of India. There is airstrip in Karad of Satara district and the nearest airport is in Pune. Satara district has total registered vehicles 1, 59,619.
2.1.7 Tourism Including Mahabaleshwar and Panchgani, there are several beautiful places situated in Satara district. It has holy places viz. Wai, Mhaswad, Chaphal, Pali, Shikhar Shingnapur, Anudh, Gondawale, Pusegao attracts piligrims. Tourist worth visiting places are dams like Koyana, Kanher, Dhom. Forts like Ajinkyatara, Pratapgad, Sajjangad, Vasota etc. The places of natural beauty like Thoseghar waterfall, Kas Lake, Mayani bird sanctuary, Mahabaleshwar and Panchgani hill station etc. Today, Satara come up as a tourist place so there is lot of scope for hotel industry to develop.
2.1.8 Climate and Soil Satara district has good climate. The minimum temperature ranges from 11.6-37.5 Celsius. The average rainfall is 1426 mm.
2.1.9 Agriculture The major crops of Satara district are Bajra, Jowar, Wheat, Rice, Ghewada, Gram, Sugarcane, Groundnut, Potato, and Soya bean. The area under cultivation in Satara district is 181700 hector and non-irrigated 612000 hector. The forest area is 142000 hector
2.1.10 Irrigation The major projects undertaken in Satara District are two and medium nine. There are 10 major, 13 medium and 80 minor projects are in progress under Krishna valley Development Corporation. Because of this, the irrigated land in future will be 243392-hector.
2.1.11 Industry The registered co-operative industrial Estates are five. The registered private (P) small-scale industries are 2842, whereas registered small-scale industries (T) are 2548.
2.1.12 Co-operative sector Total co-operative societies in Satara district are 5059; P.A.C.S. 873 and the members in co-operative societies are 1740000. There are 12 sugar factories in district and 8 spinning mills.
2.1.13 Education There are all types of education institutes primary, secondary and higher education. Total primary schools under Zilla Parishad are 2406, Private 754 and under Nagar Palika 122. Secondary schools under Zilla Parishad only one but state government three and central government two and private 414. Satara district has better higher education facilities; there are 145 junior and senior colleges, D.ED/B.P.ED 13, Law colleges 2, Medical colleges 2, Engineering Colleges 2, polytechnic colleges 2 and Pharmacy 2.
2.1.14 Vocational Education and Training There are 11 industrial training institutes one in each talukas, Satara, Karad, Wai, Mahabaleshwar, Phaltan, Mann, Khatav, Koregao, Patan, Jaoli and Khandala.
2.2 Hotel Industry Profile 2.2.1 Introduction Over the last two years the hospitality industry has witnessed active interest and has transformed the country as a huge development destination As always, a part from conducting specific research for this study, researcher have included Hotel concept and terms used for hotel and its meaning, classification of hotels on the basis of nature, star gradation and location, the Organizational structure, Indian hotel scenario, Satara district‘s hotel scenario. Concept A hotel is an establishment that provides paid lodging, usually on a short-term basis. The provision of basic accommodation, in times past, consisting only of a room with a bed, a cupboard, a small table and a washstand has largely been replaced by rooms with modern facilities, including in suit bathrooms and air conditioning or climate control. Additional common features found in hotel rooms are a telephone, an alarm clock, a television, and Internet connectivity; snack foods and drinks may be supplied in a mini bar, and facilities for making hot drinks. Larger hotels may provide a number of additional guest facilities such as a restaurant, a swimming pool or childcare, and have conference and social function services. Some hotels offer meals as part of a room and board arrangement. In the UK, a hotel is required by law to serve food and drinks to all guests within certain stated hours; to avoid this requirement it is not uncommon to come across private hotels which are not subject to this requirement In Japan, capsule hotels provide a minimized amount of room space and shared facilities. In Australia and Canada, hotel may also refer to a pub or bar. In India, the word may also refer to a restaurant since the best restaurants were always situated next to a good hotel. 2.2.2 Meaning A hotel is an establishment operated for profit offering safe food; safe accommodation and safe facilities provided a person is willing to pay for it. A hotel is considered to be a ‘home away from home’.3 The hotel industry is unique from two points of view: It is a service oriented and a people oriented industry, offering highly personalized services to customers/people. Since no two people have the same personalities and the
3
Hotel, Catering and Hospitality management by Joe D,Sa
same needs. Services have to be personalized. It is also a labor intensive industry as people can best deal with people and satisfy them. The hotel industry deals with two highly perishable commodities namely rooms and food. In the industry the word — perishable“ means anything which causes money or a financial loss. Rooms are considered to be more perishable than food as they cause a grater financial loss. If a hotel room is not sold for a particular day, then the revenue for that day is instantly lost and can never be recovered. Food on the other hand, if not sold at a particular time, can be refrigerated and sold at a later date, thereby making it possible not only to recover costs but also profits.
2.2.3 Classification of Hotel Hotel are classified in many ways A. On the basis of Nature B. On the basis of Standard C. On the basis of Location This classification contains different categories as follows.
A.On the Basis of Nature i. Heritage Hotel: Heritage hotel in India covers palaces, castles, forts, havelis hunting lodges and residences. These are further classified as Heritage, Heritage classic, and Heritage grand. In fact the accommodation offer is being planned to suit status and income of the customer. Heritage hotel in India are best if you are looking for sheer elegance, luxury and royal treatment. They are not just another accommodation option but tourist attraction in themselves. ii. Beach resort hotel: Resort situated near coastline. iii. Wild life hotels : Hotels in the forest to enjoy living in rest house or tent in the midst of the dense wilderness, and waking up to the twittering of birds, or may be the roar of a lion. iv. Govt. approved hotel: These are the hotels, which might not have applied for star categorization or are too small to be found in the list such as hostels and lodges.
B. On the basis of Standard Like most of the countries in the world, India also has hotels divided in different categories depending on their location, facilities, infrastructure and amenities provided. All the star hotels in India are government approved with continuous control on the quality of service offered. i. Five Star Hotel: Most luxurious and conveniently located hotels In India are grouped under Five Star Deluxe Hotel Category. These hotels provide all the modern facilities for accommodation and recreation matching international standards in hospitality. ii. Four Star Hotel: A rung below five star hotels provide all the modern amenities to the travelers with a limited budget. Quality of the services is almost as high as the five-star-and œ above categories .These kind of hotels are therefore for travelers with a limited budget. iii. Three Star Hotel: These are mainly economy class hotels located in the bigger and smaller cities and catering to the needs of budget travelers. Lesser in amenities and facilities, these hotels are value for money and give good accommodation and related services on the reduced price. Services would be a stripped down version of the higher categories of hotels but sufficient to fulfill a guest‘s basic needs. iv. Two Star Hotel: These hotels are mostly available in the small cities in particular areas of larger cities. Catering to the backpacker tourist traffic, these hotels provide all the basic facilities needed for general accommodation and offer lowest prices. v. One Star Hotel: The hotels with the most basic facilities, small number of rooms and location infer-flung areas are grouped under One Star Hotel category. These hotels are best when you are looking for the cheapest available accommodation option (apart from camps and hostels)
C. On the basis of Location i. Downtown hotel: Located in the heart of the city. ii. Sub-urban hotel: located in the suburbs. iii. Resort hotel: Located at an outside city limits. iv. Airport or Transit hotel: Located at near airport.
v.
Motel: Located mainly on the highways
vi. Flotel: Situated on seas, rivers and lakes. vii. Residential or Apartment hotel: It provides maintained rooms with kitchenette facilities.
2.2.4 Organization of a Hotel Figure No. 2.1 Organization of aHotel 6AFEJ!6?6C2=&2?286C
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2.2.5 Indian Hotel Scenario Hotel Industry in India has witnessed tremendous boom in recent years. Hotel Industry is inextricably linked to the tourism industry and the growth in the Indian tourism industry has fuelled the growth of Indian hotel industry. The thriving economy and increased business opportunities in India have acted as a boon for Indian hotel industry. The arrival of low cost airlines and the associated price wars have given domestic tourists a host of options. The 'Incredible India' destination
campaign and the recently launched 'Atithi Devo Bhavah' (ADB) campaign have also helped in the growth of domestic and internationaltourism and consequently the hotel industry. 4
'Hotel Industry in India' has 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 œ to accommodate 350 million domestic travelers. 5
'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 that 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. 6
'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 luxury range. Sources said, the manpower requirements of the hotel industry will increase from 7 million in 2002 to 15 million by 2010. 'Hotel Industry in India' is set to grow at 15% a year. In recent year‘s government has taken several steps to boost travel and tourism which have benefited hotel industry in India. These include the abolishment of the inland air travel tax of 15%; reduction in excise duty on aviation turbine fuel to 8%; and removal of a number of restrictions on outbound chartered flights, including those 4
http://business.mapsofindia.com/india-industry/hotel-industry-in-india.html, accessed on 10 Jan, 2008 at 4.30pm. 5 http://business.mapsofindia.com/india-industry/hotel-industry-in-india.html, accessed on 10 Jan, 2008 at 4.30pm. 6 http://business.mapsofindia.com/india-industry/hotel-industry-in-india.html, accessed on 10 Jan, 2008 at 4.30pm.
relating to frequency and size of aircraft. Addressing shortage of tourist accommodation seized with the concern for addressing acute scarcity of hotel accommodation, the ministry has already introduced the innovative incredible India Bed and Breakfast (IIB&B) scheme all over the country. The incredible India and Bed and Breakfast units are being treated as non-commercial units in the National Capital Territory of Delhi. Govt. of India provides 5 year tax holiday for hotels. There were 1437 hotels with 84327 rooms on the approved list of the ministry of st
tourism up to December 31 2007. 7 The break up of hotels by different star categories is given below. Table 2.2 Hotel Scenario in India Following is depicted scenario of hotels in India as per number of hotels category wise and number of rooms available. Sr. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Star category No. hotels No. of Rooms 5 star Deluxe 100 21100 5 star 85 10311 4 star 116 7986 3 star 482 22028 2 star 204 6184 1 star 54 2871 Heritage 78 2333 3 star Apartment Hotel 2 110 4 star Apartment hotel 1 44 5 star Apartment hotel 1 100 5 star Time share Resort 2 259 Silver B&B Establishment 1 62 Gold B&B Establishment 81 216 Guest B&B establishment 51 180 Guest House 1 40 To be Classified 78 10503 Total 1437 84327 Source: Ministry of Tourism Govt. of India Annual Report 07-08. Table 2.2 reveals, that the number of hotels and number of rooms available in those hotels in India. Three star hotels are more as compared to other category of hotels in India whereas rooms‘ availability is more in 5 star hotels as compared to other
7
http://business.mapsofindia.com/india-industry/hotel-industry-in-india.html, accessed on 10 Jan, 2008 at 4.30pm.
category of hotels
2.2.6 Foreign Tourist Arrivals (FTAs) 8
Foreign tourist arrival during the period January -November 2008 were 4.84 million
as compared to 4.48 million during the corresponding period of 2007.The number in November 2008 has risen to 5.21 lakhs as compared to 4.52 lakhs in October 2008. Foreign Exchange Earnings (FEE) from Tourism in Indian rupee terms Foreign Tourist Arrivals (FTAs) and Foreign Exchange Earnings (FEE) from Tourism in India during October 2008 and comparative figures of 2006 and 2007 are shown below. Table 2.3 Foreign Exchange Earnings through Foreign Tourist Arrivals Following table narrates foreign exchange earnings through foreign tourist arrivals in India. Foreign Exchange Earnings (in Rs. Percentage Change Crore) 2006 2007* 2008# 2007/2006 2008/2007 * 1. January 3970 4698 5438 18.3% 15.8% 2. February 3793 4401 5182 16.0% 17.7% 3. March 3378 4144 5035 22.7% 21.5% 4. April 2850 3218 3773 12.9% 17.2% 5. May 2350 2543 2988 8.2% 17.5% 6. June 2566 2849 3409 11.0% 19.7% 7. July 2990 3436 3870 14.9% 12.6% 8. August 2698 3080 3626 14.2% 17.7% 9. September 2640 2594 3143 -1.7% 21.2% 10. October 3355 3785 4248 12.8% 12.2% 30590 34748 40712 13.6% 17.2% Total @ Provisional Estimates * Revised Estimates # Advance Estimates Source: Ministry of tourism Govt. of India Annual Report 07-08
Sr.
8
Month
th
http://www.tourism.gov.in/survey/HRA%20-%202008.pdf, 10 April2009, 14hrs.
Table 2.4 India‘s 10 Best Hotels India's 10 Best Hotels Hotel Amanbagh The Imperial The Oberoi Amarvilas The Oberoi Rajvilas The Oberoi Mumbai The Oberoi Udaivilas Taj Lake Palace The Taj Mahal Hotel The Taj Mahal Palace & Tower Wildflower Hall
City Rajasthan New Delhi Agra Jaipur Mumbai Udaipur Udaipur New Delhi Mumbai Shimla
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Table 2.5 Top ‘Undiscovered Jewel’s’ in India Sr. 1 2 3
Name of Hotel Mewar Haveli Fifu Guest House Jas Vilas
City Udaipur Jaisalmer Jaipur
Sr. 6 7 8
Name of hotel Hotel de l'Orient Bethsaida Hermitage Hotel Willow Banks Presa di Goa Country 4 Ratan Vilas Jodhpur 9 House 5 Siena Village Kerala. 10 Casa Candolim 11 Mewar Haveli Source: (http://www.travelpod.com/forums/index.php?showtopic=12352)
City Pondicherry Kerala Shimla Goa Goa Udaipur:
Table 2.6 Top Ten Business Hotels in India Sr. Name of Hotel City 1 Taj Hotel Bombay 2 Leela Palace Bangalore 3 Trident Hilton Gurgaon 4 Oberoi Udaivilas Udaipur 5 Leela Kempinski Mumbai 6 Rambagh Palace Hotel Jaipur 7 The Four Season, Mumbai 8 Imperial Hotel New Delhi 9 Taj Coromandal Chennai. 10 Sheraton Maurya New Delhi Source: (http://www.chillibreeze.com/articles/top-business-hotels.asp )
2.2.7 Maharashtra accounts for the largest number of domestic tourists. Contribution of major states in domestic tourist during 2008-2009 is given below. Table 2.7 Domestic Travelers in India Following table shows the domestic tourist arrivals in India during 2008-09 according to state Sr. State Domestic Tourist Arrivals 1 Maharashtra 15.4 million (urban) 2 UP (including Uttaranchal) 13.9 million 3 Tamil Nadu 12 million 4 Karnataka 9.4 million 5 Andhra Pradesh 9 million 6 West Bangal 7.2 million 7 Gujarat 6.4 million Source: Ministry of Tourism Govt of India Study on Evaluation of the scheme — Domestic Promotion and Publicity including Hospitality (DPPH)“ Table 2.7 reveals that Maharashtra stood first in the position as compared with other state to the domestic tourist arrivals in India. There are highest domestic tourist arrivals in Maharashtra. 2.2.8 Satara District Hotel Profile
The Satara district has remain a popular tourist place. The well-known two hill stations inSatara district added the beauty of Satara. There are various types of hotels. Following arethe officially recorded hotels in Tahsil office of respective talukas. Table 2.8 The Total Number of Hotels Registered In Satara District. Following table shows the number of hotels registered in Satara thetaluka. No. of Sr. Name of Taluka Sr. Name of Taluka hotels 1 Satara 239 7 Jaoli 2 Karad 289 8 Man 3 Phalatan 286 9 Khatav 4 Wai 221 10 Khandala 5 Mahabaleshwar 249 11 Patan 6 Koregaon 196 Total
district according to No. of hotels 84 267 189 185 637 2842
Source (Tahsil office of respective taluka) Table 2.8 shows that Satara district has around 2461 hotels. The number is seems large since it includes all restaurants, star graded hotels, resorts, dhabas, hawkers (Tea Gada or vada -pav gada), khanvals, motels, canteens, lodging, boarding and permit room, etc. This is because the term hotel is used very broadly which encompasses
locations preparing and making available food items to sale are treated as hotel. It has been observed less than 50% of registered hotels are in existing. Researcher has collected data of sample hotels in Satara District. The profile of sample hotels has been sketched as follows. The availability of hotels i.e. registered hotels in Satara District is mentioned elsewhere in this report. Table 2.9 Dinning Occupancy Following table shows Dinning occupancy as per type of hotel. Type of Downtown hotel Occupancy Sr. % 1 Off Season F % % i 0 to 25 0 0 0 ii iii iv 2
25 to 50 50 to 75
4 7
75 & 2 above Peak F Season
i
0 to 25
0
ii
25 to 50
0
iii iv 3 i
50 to 75
0
0 0 0
Other Total
%
F %
%
F %
0 0
0
0 0
0
3 100 38 3 (10)
6 50
86
1 8.3
13 12 (40)
1 7.69 50
1 7.69 14
30. 4 7
50
15
0 0
0
0 0
0
0 0
0
%
F %
%
F %
%
F %
%
0
0 0
0
0 0
0
2 100 25
0
0 0
0
0 0
0
3 100 38 3 (10)
0
0 0
0
1 25
14
3 75
38
4 (13.33)
0 0
0
21 (70)
F %
%
53.85 54
%
Star
F %
33.33 31
100
Resort
1 8.33 50
75 & 61.90 28.5 13 100 2 9.52 100 6 86 above 7 Average F % % F % % F % % 0.00 0 to 25 0 0 0 0.00 0 0 0.00 0 25 to 50
2
33.33
15
33.3 29 3 11.1 27.7 2 100 5 71 1 8
1 100 13
33. 33 38.89 22. iii 50 to 75 7 54 4 22 75 & 80.00 20. iv 4 31 0 0.00 0 0 0.00 0 1 above 00 43.33 23.3 26. Total 13 100 2 6.67 100 7 100 8 3 67 Source: (Primary Data) ii
0 0.00 0
2
%
2
13 (43.33) 2 (6.67)
2 (6.67)
1 (3.33)
25 6 (20) 50 18 (60) 5 16.67) 10 30 0 (100)
13
Majority of the hotels have around 50-75% dinning occupancy in off-season and above 75% occupancy in peak season. The average dinning occupancy of majority of
the hotels is 50-75%. Table 2.10 Lodging Occupancy Following table shows Lodging occupancy as per type of hotel. Type of hotel Sr Downtown Resort Star Occupancy % 1 Off Season F % % F % % F % % i 0 to 25 4 67 24 0 0 0 0 0 0 ii
Other
F % % 2 33 33
25 to 50
8
42
47
1 5
50
7 37
100 3 16 50
iii 50 to 75
4
67
24
1 17
50
0 0
0
1 17 17
100 6
0 0
0
0 0
0
0 0
0
%
%
F %
%
F %
%
F %
%
0 50 44
0 12 24
0 0 0 0 0 0
0 0 0
0 0 0 0 1 11
0 0 14
0 0 0 2 50 33 4 44 67
58
65
2 11
100 6 32
86
% 50 50 50
% 6 18 65
F 0 0 2
% 0 0 100
F 0 1 6
% 0 14 86
F 1 2 3
0
0 0
0
0 0
75 & 1 above Peak 2. F Season i 0 to 25 0 ii 25 to 50 2 iii 50 to 75 4 75 & iv 11 above 3. Average F i 0 to 25 1 ii 25 to 50 3 iii 50 to 75 11 75 & iv 2 above Total 17 iv
100 12 53
% 0 0 9
0 0
% 0 17 27
100 2 6.25 100 7 22
Total
6(19) 19(59) 6 (19) 1(3)
0 4(13) 9(28)
0
0
19(59)
% 50 33 14
% 17 33 50
2(6) 6(19) 22(59)
0
2(6)
100 6 19 100 32(100)
Source: (Primary Data) Majority of the hotels have around 25-50% lodging occupancy in off-season and above75% occupancy in peak season. The average lodging occupancy of majority of the hotelsis 50-75%.
Table 2.11 Other Occupancy Following table shows other occupancy such as conference hall as per type of hotel Type of hotel Sr
Downtown
Occupancy % 1. Off Season i 0 to 25 ii 25 to 50 iii 50 to 75 75 & iv above Peak 2. Season i
0 to 25
F 3 1 0
% 25 50 0
Resort
% 75 25 0
F 0 0 0
0 0
0
0 0
F %
%
0 0
ii 25 to 50 3 33 iii 50 to 75 1 33 75 & iv 0 above 3. Average F % i 0 to 25 0 0 ii 25 to 50 2 29 10 iii 50 to 75 2 0 75 & iv 0 0 above Total 4 29
% 0 0 0
Star
F 6 0 0
% 50 0 0
0
0 0
% 25 50 0
Total
% 100 0 0
F 3 1 0
0
F % % F %
%
0
0 0
0
0 0
0
75 25
0 0 0 0
0 0
0
0
0
% 0 50
F % % F % % 0 0 0 3 60 50 0 0 0 3 43 50
F % % 2 40 50 2 29 50
5(36) 7(50)
50
0 0
0
0 0
0
0 0
0
2(14)
0
0
0
0 0
0
0 0
0
0
0
6 43 100 4 29 100 14(100)
100 0 0
% 0 0 0
Other
% 75 25 0
12(86) 2(14) 0
0 0
0
0
F %
%
4 44 67 2 67 33
10 50 0 2 22 50 0 0 0
9(64) 3(21)
0
0
0
0
2
0
2(14)
Source: (Primary Data) Majority of the hotels have bellow 25% occupancy in off-season, 25-50% in peak season.The average occupancy of majority of conference hall is below 25%.
Table 2.12 Services Offered by Hotel Following table shows, Services offered as per type of hotel.
Sr 1 2 3 4 5 6 7 8 9 10 11 13 14 15 16 17 18 19 20 21 22
Type of hotel Services Lodging Communication Permit room Parking Generator Dining facility Conference hall Acqa-guard Garden Rental car Sight scene Waiting room Entertainment Doctor Swimming Internet Indoor game Laundry Gym Driver room Other Total
Downtown F 17 20 5 18 14 14 6 14 9 6 6 16 18 11 3 6 5 14 3 8 4 20
% 53 54 33 53 48 48 32 48 43 50 55 57 53 50 33 55 42 52 38 47 80 54
% 85 100 25 90 70 70 30 70 45 30 30 80 90 55 15 30 25 70 15 40 20 100
Resort F 2 2 1 2 2 2 2 2 2 1 1 2 2 2 2 1 2 2 2 2 0 2
% 6 5 7 6 7 7 11 7 10 8 9 7 6 9 22 9 17 7 25 12 0 5
% 100 100 50 100 100 100 100 100 100 50 50 100 100 100 100 50 100 100 100 100 0 100
Star F 7 7 5 7 7 7 7 7 7 5 4 7 7 7 4 4 5 7 2 6 1 7
% 22 19 33 21 24 24 37 24 33 42 36 25 21 32 44 36 42 26 25 35 20 19
% 100 100 71 100 100 100 100 100 100 71 57 100 100 100 57 57 71 100 29 86 14 100
Other F 6 8 4 8 6 6 4 6 3 0 0 3 7 2 0 0 0 4 1 1 0 8
% 19 22 27 24 21 21 21 21 14 0 0 11 21 9 0 0 0 15 13 6 0 22
% 75 100 50 100 75 75 50 75 38 0 0 38 88 25 0 0 0 50 13 13 0 100
Total
32(86) 37(100) 15(41) 34(92) 29(78) 29(78) 19(51) 29(78) 21(57) 12(32) 11(30) 28(76) 34(92) 22(59) 9(24) 11(30) 12(32) 27(73) 8(22) 17(46) 5(14) 37(100)
Source: (Primary Data) Satara districts majority hotels have lodging, parking, generator, dinning, aqua guard,waiting room, entertainment, and laundry facility. Some hotels provide facilities likepermit room, conference hall, rental car, sight scene, internet, and indoor game. Allhotels provide communication facility, and very few provide swimming and gym facility.
Table 2.13 Promotion Mix Following table shows Promotion mix as per type of hotel. Type of hotel Promotion mix Sr. 1 Advt % % 2 Personal selling % % 3 Sales promotion % % 4 Publicity % % 5 No efforts % % Total
Downtown Resort Star Other Total 7 39 35 3 38 15 0 0 0 4 80 20 6 60 30 20
2 11 100 0 0 0 0 0 0 0 0 0 0 0 0 2
5 28 71 1 13 14 1 100 14 1 20 14 2 20 29 7
4 22 50 4 50 50 0 0 0 0 0 0 2 20 25 8
18 100 49 8 100 22 1 100 3 5 100 14 10 100 27 37
Source: (Primary Data) Though 49% of hotels spend on advertisement, 22% believe in personal selling, 14% in publicity, and 3% in sales promotion. However, 27% take no efforts in promoting their hotels.
Table 2.14 Trusted Tool of Promotion Following table shows trusted tool of promotion as per type of hotel. Sr 1 2 3 4
Type of hotel Downtown Resort Star Other Total
Advt 6 2 5 4 17
%
%
35 12 29 24 100
30 100 71 50 46
Word mouth 11 0 3 6 20
%
%
Total
55 0 15 30 100
55 0 43 75 54
20 2 7 8 37
Source: (Primary Data) Though most believe in word mouth propaganda, rest believes in advertisement. Resorts and star graded apt more for advertisement compared to other category and downtown hotels. Table 2.15 Most Profitable Customers Following table shows most profitable customers as per type of hotel. Type of hotel Downtown Resort Sr = Class = 1 Elite class 2 2 % 22 22 % 10 100 2 Higher middle 6 0 % 46 0 % 30 0 3 Middle class 12 0 % 80 0 % 60 0 4 Lower class 0 0 % 0 0 % 0 0 Total 20 2
Star 4 44 57 2 15 29 1 7 14 0 0 0 7
Other 1 11 13 5 38 63 2 13 25 0 0 0 8
Total 9 100 24 13 100 35 15 100 41 0 0 0 37
Source: (Primary Data) Middle class is the most profitable customer in down town type of hotels; higher middle class is most profitable to other types of hotels. Elite class to resorts and star graded hotels but for no hotels, lower class customers are beneficial.
Table 2.16 Repeated Customers‘ Percentage Following table shows repeated percentages of customers as per type of hotel. Type of hotel Repeated Downtown Resort Star Sr customer% 1 10 to 20 2 0 0 % 40 0 0 % 10 0 0 2 20 to 30 2 1 3 % 33 17 50 % 10 50 43 3 30 to 40 4 0 2 % 57 0 29 % 20 0 29 4 40 to 50 4 0 0 % 100 0 0 % 20 0 0 5 50 and above 8 1 2 % 53 7 13 % 40 50 29 Total 20 2 7 Source: (Primary Data)
Other
Total
3 60 38 0 0 0 1 14 13 0 0 0 4 27 50 8
5 100 14 6 100 16 7 100 19 4 100 11 15 100 41 37
More than 50% of customers are repeated customers to all types of hotels. Table 2.17 Manpower in Sample Hotels Following table shows manpower as per type of hotel. Type of hotel Manpower Sr. Downto wn Resort Star Other Total 1
1 to 20 % % 2 20 to 40 % % 3 40 to 60 % % 4 60 to 80 % % 5 80 and above % % Total Source: (Primary Data)
11 73 55 5 50 25 1 25 5 3 60 15 0 0 0 20
0 0 0 2 20 100 0 0 0 0 0 0 0 0 0 2
0 0 0 0 0 0 2 50 29 2 40 29 3 150 43 7
4 27 50 3 30 38 1 25 13 0 0 0 0 0 0 8
15 100 41 10 100 27 4 100 11 5 100 14 2 100 5 37
Star graded hotels have manpower above 40, resorts above 20, but Downtown has manpower from 5-80 and other types of hotels 5-60. Table 2.18 Most Served Customers Following table shows the most served customers as per type of hotel.
S r 1 2 3 4 5 6
Type of hotel Downt Ran Type of o wn k customer Businessm 71 2 an Executives 71 2 employees political 41 5 leader service 89 1 people students 42 4 Other 28 6
Reso rt
Ran k
Sta r
Ran k
Othe Ran r k
Tot al
Ran k
12
2
41
1
40
1
164
1
8
1
33
2
36
3
148
3
6
4
28
3
23
4
98
4
8
2
24
4
37
2
158
2
5 3
5 6
12 9
5 6
11 15
6 5
70 55
5 6
Source: (Primary Data) Star and other category hotels most served customers is businesspersons, Resort executives employees, and Downtown hotels serves service people.
CHAPTER 3 INTO THE CONCEPT CUSTOMER RELATIONSHIP MANAGEMENT —Relationship marketing concerns attracting, developing, and retaining customer relationship. Its central tenet is the creation of —true customer“-customers who are glad they selected a firm, who perceive that they are receiving value and feel valued, who are likely to buy additional service from the firm, and who are unlikely to defect to a competitor.“ 9 Leonard L.Berry and A. Parasuraman 3.1 Introduction Customer is a person who buys. A customer is not just someone who come to showroom or one whom contact personally for business. He is beyond that, he is a colossus in disguise who has the key to the fate of your business. Many salesmen take the customers in a professional way. They treat those customers cordially who they know will buy enough from them, but those that make only a meager purchase are mostly taken lightly. This is wrong because whosoever is your prospect should be dealt with due courtesy. Small customers may prove to be major purchases of your product in the course of time. Types of Customers Classification of customers into four parts:10 Prospective customers: Prospective customers are those who offer scope for the sale of the product of an organization. Satisfied customers: Satisfaction is the most essential thing to be the customers. It is for this reason that all the time the employees are on their feet. Satisfaction comes only when the product is in keeping with the expectation of the customers.
9
Nargundkar Rajendra (2004), —Service Marketing“, Mc Graw Hill, New Delhi, 1st edition. Page No. 335 10 Monga G. S. & Anand shalini (2003), —Marketing Management“, Deep & Deep Publishing Pvt. Ltd., New Delhi, 1st edition. Page No.546
Dissatisfied customers: Customers that do not find the product in tune with what they want, develop dissatisfaction. This is the worst category of customers for an organization because dissatisfaction may also arise if the customers find that what the company declared about the product is not available in it. More dissatisfied customers, more the losses to the company. A company should know customers who have the key for its bright future. He should be taken seriously. Disappointed customers: It is not always that the people with whom the salespersons are in contact make purchases from them. There are also the disappointed customers who have an excitement to buy something they need, but when they are unable to get exactly what they want, they are disappointed. Relationship is the state of being connected. Establishing sound relationships with customers have to ascertain that the target of maximum customer satisfaction should be achieved in the most efficient way. It works by giving a warm feeling of relationship to the customers who thus become loyal to the particular organization or a product. It seeks to respond effectively to the queries of the customers who develop an association with the firm. Various Indian firms like Tata, Telecom, Modi Xerox, Carrier Aircon, etc derive the best out of the Customer Relationship Management Solution. We can say that Customer Relationship Management has ample scope for establishing the relationship with the customers and maintaining them. Berry and Parsuraman (1991) have identified four levels of bonds.11 1 Financial Bonds-Volume and frequency rewards, Bundle and Cross-selling and stable pricing. 2 Social Bonds-It consist personal and continuous relationships with social bonds among customers. 3 Customization Bonds-It includes customer intimacy, mass customization, and anticipation or innovation. 4
Structural Bonds -Where integrated information systems, joint investments, and
Shared processes and equipment. The management is the science of controlling. 11
G Shainesh and Jagdish N. Sheth., —Customer Relationship Management“, a strategic perspective, published by Rajiv Beri for Macmillan India Ltd.,2006 page No.35
An organization must analyze the information gathered on what the customers exactly want and on the basis of that organize its activities to establish its customer relationship in the real sense. After this, the customer will develop an affinity with the product that he may not want to part with. The organization can witness a relationship doing well with the customer and ensure that it should enjoyed by the generation to come. A good relationship between the buyer and seller is one in which both parties could receive value in doing business with each other over an extended period. Therefore, CRM should mean controlling the relationship with a customer. The success of companies will depend on how well they are able to predict customer behavior, anticipate requirements, and provide for them. If customers do not get what they want, when they want it, they are more likely to switch loyalties. These days serious challenges posed to the companies is not to carry out business but to retain customer for business and virtually tough time to corporate strategy formulators. Customers are today less brand loyal, as there is choice available in the market. So there is always apprehension of brand shifting or loyalty shifting from on brand/product to another. Hence, the top priority at which the corporate big buddies should focus is customer retention and minimizes loyalty shifting that is possible only through relationship marketing. Relationship marketing has become increasingly important in marketing planning in recent years. One cannot rely completely on old marketing tools and concepts anymore as they are the things of past.12 3.2 Review of Literature Knowing the customer is important for running a successful business. Customer Relationship Management (CRM) is relatively modern approach for enterprises to manage and understand their customers in order to provide better quality of products and services. Hotel is a service and people oriented industry, offering highly personalized services to customers. Since no two people have the same personalities and the same needs. Services have to be personalized. Dr. Ali Sanayai (2001), ‘Knowledge Oriented CRM. An application Model, for Hotel Management‘ a article discussed on Knowledge Oriented Customer Relationship Management with a title of An Application Model for Hotels Management, explores 12
JIMS 8M, July-September, 2003 page no.61.
the way in which knowledge management (KM) can help CRM and then presents an application Knowledge Oriented Customer Relationship Management (KCRM) model for hotel management. Article concluded with CRM is an integral approach to focus on customer retention and relationship development. Through Knowledge Management hotel can generate business opportunities and force to find new ways, which helps who the customer are? What they buy, why they buy, when they buy and even prediction can be possible based on historical behavior. This study argues that CRM implementation requires knowledge management process. This knowledge management process includes data collection, Intelligence generation i.e. converts into actionable to identify behavior, and Intelligence dissemination i.e. convey to all concerned employees to implement. John Schwisberge & Amitava Chatterjee (2001 ) in article titled, ”Effective CRM Implementations in Hotel Industry‘ suggested that CRM should be simple, actionable, measurable for performance metrics, stake holder‘s ownership, GIGO, consider value of customer and help employees to help their guest. Marianna Sigala Strathclyde (2003), in article titled —Implementing Customer Relationship Management in the Hotel Sector: Does —IT“ always matter?” draw the attention on how and why hotels are implementing CRM with proposed a model for managing and integrating Information of Customer transaction (ICT) capabilities into CRM strategies. Article concludes that successful CRM implementation requires the management and alignment of three managerial area ICT, relationship (internal and external) and knowledge management. Marketing strategies shift from acquisition to customer retention; product strategies where build around customization. The internal organization reengineered around customer-focused processes; and ICT applied to gain customer insight, build relationships, enable customization, and provide new opportunities for service distribution. CRM is a crucial strategy for sustaining competitive advantage in the current marketplace. However, theory has been unsuccessful to provide an overall framework on how businesses can better adopt and implement CRM. Large hotels are more dependent on ICT for implementing CRM than smaller hotels. Moreover, different organizational and managerial factors play a critical role in CRM implementation in small and large properties. CRM in small hotels frequently adopts the owners/manager‘s personal style and flair, whereas in large properties CRM usually viewed as a way of formalizing process for enhancing customer service processes and reducing costs.
Werner Reinartz, Manfred Krafft, and Wayne D. Hoyer (2003), in their article titled ”The Customer Relationship Management Process: Its Measurement and Impact on Performance‘, conceptualizes a construct of the CRM process, its dimensions and empirically investigate the organizational performance of implementing CRM processes. Article concludes that theoretically sound CRM process outlines three key stages: initiation, maintenance, and termination and the implementation of CRM processes have a moderately positive association with both perceptual and objective company‘s performance. Breffni M Noone, Sheryl E Kimes, and Leo M Renaghan(2003), in paper titled, ”Integrating customer relationship management and revenue management: A hotel perspective‘, talk about who should be targeted with CRM efforts and how those efforts affect the CRM process by examining the relationship between CRM and Revenue Management(RM). The article narrates the lifetime/profitability approach to customer segmentation, the appropriate customer segments to target with CRM efforts should be identify and a supporting RM strategy outlined for each segment. These include traditional RM, lifetime value-based pricing, availability guarantees, and short-term and ad hoc promotions. The impact of these RM strategies on business processes in relation to customer segmentation, demand forecasting, information systems management, and human resource management. Vlads(2006), in article titled, ” Managing Customer Relationship in the Hospitality Industry‘ make aware that while managing CRM in hotel industry, the guest servicing standard should focus on not just consistent responses but also to prevent consecutive negative experiences. In other word, if a guest has experienced a negative event, this fact needs to be noticed where employees could put an extra effort into making sure that the remaining of hotel stay of guest is as positive as possible. Harrah‘s (2006) in case study, ”A Customer Relationship Management‘ draw attention that CRM many times failed and need to find out the reasons behind failure and researcher studied and conclude that CRM fails due to unawareness , lack of proper knowledge and how to use it or implement it. Generally, collection of information and not differentiating as per the customers profile is common reason for failure and researcher suggested that one should target core customer and deal with them differently instead of common approach to all. Roya Rahimi (2007) a thesis titled, ”Feasibility Study of Application and Implementation of CRM in Hotel Industry,‘ with the objective to measure the
feasibility of CRM application and implementation. The thesis concludes that the hotel industry fails to achieve CRM benefits such as customer satisfaction, loyalty, and retention due to number of reasons such as organizational change, company policies, lack of CRM understanding, poor planning, lack of CRM skill, budget problem, software problem, bad advice, and others. Out of this, the failure percentage is higher in organizational change i.e. 29% and is least with bad advice i.e. 1%. Matthias Merk (2007) article titled ”Evaluation of Online Room Selection and its Implications for the E-CRM Strategy of Large International Hotel Chains‘ critically analyses the online room selection functionality and its implications for the Electronic Customer Relationship Management (E-CRM) strategy of large international hotel chains. Article concluded that all departments are somehow affected; the most significant effects are limited to Front Office operations, where additional complaints and conflicts predicted, and group sales activities, which will benefit from the improved visualization of the hotel product. Hotel companies considering the introduction of online room selection should not neglect its prerequisites, required procedures and policies, and its full potentiality. Olaf Herman (2008), in paper titled, —5 Hot Tips for Successful Hotel CRM,“ talks about hints, which are fruitful in CRM implementation. These hints are, use of correct profile of returning guests, de-average Biz objective by VIP levels i.e. deal differently by using different communication, make inventory of relational capacity by appointing Guest Relationship Manager, Guest experiments/ be proactive and Involve operational frontline and backline staff to this CRM programme. Rachel Ryerson, (2007), ”Where CRM in Hospitality Industry should go next?‘ the article draws attention on post CRM activity. According to perception of author budget should be align as per the need where the chances of improvements are better. The most important part for that is proper training to the staff in hotel because guest wants a unique experience from reservations to operations, they are the one who make or break the guest stay, and it is up to them to make sure the guest has an exceptional customer experience. It is concludes that CRM is modern approach that used in many organizations especially in hotel industry. There are number of problems in implementing CRM. Many experts had studied CRM with a view of e-CRM and the failure of implementation of e-CRM in hotel industry. Everyone agrees that only implementing new complex and high paid technology in industry does not work out. There is a need
to have sufficient knowledge as well as make familiar of how to use it as per the time requirement. However, as per researcher‘s perception only e-CRM in hotel industry does not acquire, maintain, and retain the customer but other routine and traditional activities of customer relationship also provides better results. It is a fact that CRM is a systematic method of collection and maintenance of customers‘ data but due to its complexity and cost, many hotels in Satara do not prefer. Satara is a small town place but emerging as a well-known tourist place having two popular hill stations where the number of hotels are more but they are of different size. However, most of the hotels are doing their business well irrespective of e-CRM. Researcher wishes to understand, the existing traditional CRM in hotel industry and further to suggest simple CRM model to suit to the concerned hotel by studying segmentation of different types of hotel.
3.3 Concept of CRM CRM is a management approach that seeks to create, develop, and enhance relationships with carefully targeted customers to maximize customer value, corporate profitability and in turn, shareholder value. CRM is not a tool that is specific to any industry type, so there is no one single definition of Customer Relationship Management. Every customer as an individual with specific needs and tailor their services accordingly. Information Technology appears to help to manage Customer relationships in an organized way. Customer retention is vital to every company's long-term profitability and success. CRM can help to motivate the best customers and to remain loyal. eCRM is not technology, but a technological tool that automates key processes in a business using data warehousing capabilities to streamline activities, understand customer needs and segment them based on common preferences. CRM tools integrated with click stream analysis that monitors, tracks and even analyzes customer behavior. All this information is available to sales, marketing and customer service functions, providing them with an x-ray vision of customer needs and trends and reducing a lot of guesswork. CRM has caught the fancy of academics and industry people alike in the last few years. Several definitions attributed to the concept though there are two or three key aspects that are central to the understanding of the subject such as, Relationships
rather than transactions, Assessment of customer‘s value and value to a customer, Technology enable. The first, relationships, means that we get over the traditional thinking that a customer is a one-time customer. On the other hand, that a sale is the only time you need a care for him. It implies a new way of looking at a customer. Assessing the customer‘s value should be computed over a period of time RFM (Recency Frequency, Monetary) What recently they have made purchases, how frequently they make purchases and the quantity (how much) of the purchases are made by them . The other side of the, assessing the service provider‘s values to the customer, is also a crucial aspect of implementing the CRM. This can be ascertained from the customers directly either by trying to get a numerical or qualitative assessment about the way the customer perceives his service provider. From the customer‘s point of view, value can be Perceived Benefits -Perceived Costs There could be variety of benefits-convenience, functional value, ego satisfaction, and so on. Similarly, a variety of costs could span the range from time cost, energy cost to monetary costs involved in buying from you. Technology is not always a necessary component of CRM, unlike what is popularly believed. For instance, a simple vendor of vegetables can use CRM to keep the customers loyal, by giving them value, and good service. In fact, it is customer loyalty rather than the quantity of money spent that determines the success of an effective CRM policy.
3.4 Definition and Meaning Customer Relationship Management is the process of creating, maintaining, and enhancing strong value-laden relationship with customer, stakeholders. It also defined as bringing quality, customer service and marketing together. 13 Customer Relationship Management (CRM) referred to as a business philosophy, a set of strategies, programmes, and systems that focused on identifying and building loyalty with a retailer‘s most valued customer.
13
Sudhir Zutshi Faculty, BLS Institute of Management Ghaziabad
Dictionary: Customer Relationship Management (CRM) includes the methodologies, strategies, software, and web-based capabilities that help an enterprise organize and manage customer relationships. ‘CRM’ is the business strategy that aims to understand, anticipate, manage, and personalize the needs on an organization‘s current and potential customers“ PWC Consulting. CRM is the philosophy, policy, and coordinating strategy connecting different players within an organization to coordinate their efforts in creating an overall valuable series of experiences, products, and services for the customer.14 Customer Relationship Management —It includes the methodologies, strategies, software, and web-based capabilities that help an enterprise organize and manage customer relationships. It is the collection and distribution of all data to all areas of the business. The general purpose of CRM is to enable organizations to better management of their customers through the introduction of reliable systems, processes, and procedures for interacting with those customers. 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. "By Madigan Pratt, CRM. E CRM refers to —electronic“ customer relationship management, or more simply CRM that is Web-based. The goal of eCRM is to leverage technology, more specifically the power of the Internet to improve customer service and enable a greater degree of customer interactions through personalized communication. CRM is a management approach that seeks to create, develop, and enhance relationships with carefully targeted customers to maximize customer value, corporate profitability and in turn, shareholder value.15 CRM is a discipline in marketing combines database and computer technology with customer service and marketing communications. Customer relationship management (CRM) seeks to create meaningful one-to-one communications with the customer by applying customer data (demographic, industry, buying history, etc.) to every communications vehicle. At the simplest level, this would include personalizing email or other communications with customer names. At a more complex level, CRM 14
15
www.customerservicemanager.com16/5/2008,8.30am. The Economic Times CRM Principles
enables a company to produce a consistent, personalized marketing communication whether the customer sees an ad, visits a Web site, or calls customer service. 3.4.1 School of Thought on CRM16 The initial approaches (early 1990) to CRM (Coote, 1994) broadly classified as 1
The Anglo œAustralian Approach
2
The Nordic Approach, and
3
The North American Approach
The Anglo-Australian Approach integrated the contemporary theories of quality management, service marketing, and customer relationship economies to explain the emergence of relationship marketing. The Nordic approach views relationship marketing as the confluence of interactive network theory, services marketing, and customer relationship economics. The interactive network theory of industrial marketing views, marketing is an interactive process in a context where relationship building is an area of primary concern for marketers. In contrast, the initial focus of the North American scholars was on the relationship between the buyer and seller operating within the context of the organizational environment that facilitated the buyer seller relationship. One of the broader approaches to CRM emerged from research conducted by the academics at the centre for Relationship Marketing and Service Management at the Cranfield University, UK. The broader view of relationship marketing addresses six key market domains, not just the traditional customer market. It also advocated for a transition for marketing from a limited functional role to a cross-functional role and a shift towards marketing activities for customer retention in addition to the conventional customer acquisition. The six markets are as follows. 1
Customer markets-existing and prospective customers a well as intermediaries
2
Referral markets-Existing customers who recommend to other prospects, and
referral sources or ”multiplier‘ such as doctors who refer patients to a hospital or a consultant who recommends a specific IT solution.
16
G Shainesh and Jagdish N. Sheth., —Customer Relationship Management“, a strategic
perspective, published by Rajiv Beri for Macmillan India Ltd.,2006 page no. 23.
3
Influence markets-government, consumer groups, business press, and financial
analysts. 4
Recruitment markets-This is for attracting the right employees to the
organizations. 5 Supplier markets-suppliers of raw material, components, service, etc., and 6
Internal markets-the organization including internal departments and staff.
3.4.2 Evolution of CRM CRM is not a new concept for industrialists. It is a rudimentary concept of the preindustrial era. Today‘s effort has much to draw upon that period when the society was agrarian and there were no special customized ways of buyer-seller interactions. The entire process of interaction was on a direct basis. A personal touch was ubiquitous in such an approach in which the seller could know the pulse of the buyer to come out with the exact offering to excel over their expectations. It was with the advent of the industrial era that this concept started replaced by mass marketing. As the need for mass production realized, a series of intermediaries started coming up on the scene. Intermediaries had their own benefits to draw from such a way of doing business. However, they could work only until the seller had his sovereignty. The day buyers became aware of their rights and gained dominance, the sellers were bound to switch over to something likes a direct interaction. Now they have various techniques available to them that are usually governed by the e-system. Due to a direct interacting with every single customer, the organization is constrained to providing the maximum customer satisfaction on an individual basis. By this theory, they can feel the pulse of their customers and key accounting starts gaining ground. During the 1960s, Direct Marketing had a wider yet more targeted customer reach. Consumer responses monitored and for the first time, advertising messages tailored and refined based on consumer preferences. Sellers actually began to think about their customers. Customers sorted into categories and promotional message targeted to prospects depending on factors like demographics, geographical location, psychographics, profitability, number of product, tenure, life stage, sales territory, lifetime value privacy preferences and son on. While some companies benefited from implementing data sorting and warehousing applications, for many companions‘s who did not have the capabilities to do this, it became increasingly difficult to segment the market and consumers.
Market Segmentation can reveal interesting facts about consumers, their preferences, buying habits and the condition s under which they are likely to buy. Marketing campaign based on the knowledge of consumer preferences and behavior. Companies realized the advantages of capturing data, analyzing it and creating a customer profile before matching the profile to the marketing campaign, less waste and more profit. It is easier to sell one customer several products than to sell several customers one product. The relationship between the buyer and the seller becomes stronger if care taken of the post sales services by an organization. This enables it to establish a long-lasting bond with the customers. This gives a reason to the customers to revisit the organizations, each time making this relationship stronger. Another aspect that has fostered CRM after the liberalization era is the change in the purchased behavior of the customers they have gained exposure and the change in their lifestyle has allowed them to become choosier and quality conscious. There is a race among organizations to satisfy them to the fullest. In order to be highly customized, product and services companies need to establish a two-way dialog with their customers to accurate understand customers‘ needs. The coming concept will be maximum customer delight and not maximum customer satisfaction. For this, they will have to cultivate a more customer-focused approach than what they have now. The result is dramatic and has now become an acknowledged CRM best practice.
3.5 Objectives of CRM The objectives of CRM include: 1
Turning prospects into advocates: The attempt of a service company should be to
convert prospects gradually into advocates. 2 Minimizing Defections: The market œsavy service provider should minimize the defection rate. There is the need to identify potential or actual defectors, analyze reasons for defection, and take corrective action. 3
Have a large proportion of loyal advocates: This follows from the first objective,
and should result in a large number of loyal customers who also advocated of the service provider‘s brand. 4
Having profitable relationships of the type the customers would desire, and with
those who desire them: Not everyone may like the companies using information
about them, and may even feel as if their privacy is being invaded. A subtle balance between too little and too less of closeness, should be maintained and it should be appropriately utilized in the manner desired by customers. 5 ”Using cross-selling opportunities without annoying customers: A lot of talk has been occurring in the academic literature about cross-selling. Unfortunately, not too much information is available as to exactly how much of cross-selling occurs in practice
3.6 CRM Issues Issues pertaining to customer retention and acquisition strategies are some of the major areas of concern in the CRM policy of a company. For a new service company, customer acquisition is more important, but for the established, business retention becomes more important. For the letter segment, the following factors could identify as the major areas of concern in decreasing order of their importance: 1 Retention strategies for potential defectors 2 Retention strategies for loyal customers 3
Measurement systems for customer value
4
Implementing retention plans
3.7 Defectors17 Types of Defectors: There are different types of defecting customers. The prominent categories include: 1
Price Defectors: These are customers attracted to competitors due to lower prices
of competitors. 2
Product Defector to superior products: These customers are attracted to
competitors due to a better quality product of competitors. 3 Service Defector due to bad service of the original provider: This can happen when a hotel or a restaurant serves a customer half-heartedly. He may shift to another one. 4
Market Defectors: Relocates, business that fail, etc. Customers may move from
one city to another or one locality to another. 17
Nargundkar Rajendra (2004), —Service Marketing“, McGraw Hill, New Delhi, 1st edition page no.336.
5 Technology Defectors: switch to substitute products with alternative technology. 6
Social Defectors for social reasons, networks, etc
3.8 Importance of CRM
Following points shows importance of CRM: 1 Relationship management is about extending and deepening the business, which every company does with each of its customers. So in order to retain most profitable customers rather than letting him shift to the competitor brand/company the emphasis is on relationship marketing, because these profitable customers have been acquired at high acquisition cost in terms of advertising and inducements needed to get their first purchases rather than prospective clients. 2
As result of increasing competition in the markets, the excellent quality of goods
alone cannot be sufficient for the company to have competitive advantage. The exclusive ongoing relationship is quiet distinctive that will supplement a company‘s competitive advantage. Due to advancement in technology, there has been emergence of lot of powerful user-friendly database systems that keep track information about the client. Since the technology is available with every one the discretion lies with the person who can make best use of the available information by using tools of CRM. 3 Since most of the companies have already shifted from transaction marketing to relationship marketing and are beyond creating short-term transactions only, they are in search of developing long-term relationship with valued customers, distributors, dealers, and suppliers. They want to build strong social and economic ties by promising and consistently delivering high-quality products, good service, and fair prices. This is possible only through CRM. 4 Moreover, today company wants to build up marketing network, the main aim is to build good network of relationships with key stakeholders and profits will follow, the emphasis is not on making sale only but maintains long term profitable relationship with customer by providing superior customer value and service. Since the companies are operating in maturity markets with stiffer competition, which cost a lot to fetch a new customer.
Although the customer base has increased at an exponential rate but due availability of broad choice they prefer the suppliers. Who can sell and deliver a coordinated set of products and services to many locations all over the world and apart from this solve their problems very quickly and work with customer teams to improve the products and services as per their feasibility. Hence, need for CRM.
3.9 Types of CRM There are several different approaches to CRM, and at present, there is no softwarepackage that allows all of these approaches to be applied. When companies considerimplementing a CRM strategy, they usually talk about either campaign Management orSales Force Automation (SFA). There are three parts of application architecture of CRM: Operational -automation to the basic business processes (marketing, sales, service) Analytical
-support
to
analyze
customer
behavior,
implements
business
intelligencerelated technology. Collaborative -ensures the contact with customers (phone, email, fax, web, sms, post, inperson). CRM tools work mainly on two levels-Operational and Analytical.
3.9.1 Operational CRM Operational CRM involves the automation of horizontally integrated business processes involving front office customer touch points. This may be inquiry by a customer regarding a product or service, an order placement, contacts while an order fulfilled or after sales service and support. At the front office levels, called Operational CRM where the customer is directly in contact with the company. These interactions referred to as ”touch points‘ and inbound when the customer accesses the company support center or website, or outbound when a sales representative makes a sales call or e-mail a marketing message. Operational CRM provides support to — front office“ business processes, including sales, marketing, and service. Each interaction with a customer is generally added to a customer‘s contact history, and staff can retrieve information on customers formulate the database when necessary. Operational CRM means supporting the "front office" business processes, which include customer contact (sales, marketing and service). Tasks resulting from these
processes forwarded to employees responsible for them, as well as the information necessary for carrying out the tasks interfaces to back-end applications provided, and activities with customer documented for further reference. Operational CRM provides the following benefits like Delivers personalized and efficient marketing, sales, and service through multi-channel collaboration enables a 360-degree view of customer while one is interacting with them. Sales people and service engineers can access complete history of all customer interaction with company, regardless of the touch point. According to Gartner Group, the operational part of CRM typically involves three general areas of business. Sales force automation (SFA) SFA automates some of the company's critical sales and sales force management functions, for example, lead/account management, contact management, quote management, forecasting, sales administration, keeping track of customer preferences, buying habits, and demographics, as well as performance management. SFA tools designed to improve field sales productivity. Key infrastructure requirements of SFA are mobile synchronization and integrated product configuration. Customer service and support (CSS) CSS automates some service requests, complaints, product returns, and information requests. Traditional internal help desk and traditional inbound call-center support for customer inquiries evolved into the "customer interaction center" (CIC), using multiple channels (Web, phone/fax, face-to-face, kiosk, etc). Key infrastructure requirements of CSS include computer telephony integration (CTI) which provides high volume processing capability, and reliability. Enterprise marketing automation (EMA) EMA provides information about the business environment, including competitors, industry trends, and macro environmental variables. It is the execution side of campaign and lead management. The intent of EMA applications is to improve marketing campaign efficiencies. Functions include demographic analysis, variable segmentation, and predictive modeling occurs on the analytical (Business Intelligence) side. Integrated CRM software is a "front office solutions." This is because they deal directly with the customer. Many call centers use CRM software to store all of their customer's details. When a customer calls, the system one can use to retrieve and store information relevant to the customer. By serving the customer quickly and efficiently, and keeping all information on a customer in one place, a company aims to make cost savings, and encourage new customers.
One of the main benefits of this contact history is that customers can interact with different people or different contact channels in a company over time without having to describe the history of their interaction each time. Operational CRM processes customer data for a variety of purposes such as Managing Campaigns, Enterprise Marketing Automation, and Sales Force Automation
3.9.1.1 Sales Force Automation (SFA) Customer contacts the sales representatives with the intention of learning more about the company products. It is up to the sales representatives to convert this enquiry into an order. This means that the sales force should have all the possible information that would finally result in a purchase. Many IT solutions aim to help a sales person undertake this work. Sales force automation can be defined as number of processes designed to produce a sale of your products using less time and effort than is presently required. Sales Force Automation is a type of Operational CRM that designed to automate sales-force related activities, such a lead tracking. Software products perform such task as: 1
Keeping list of leads
2
Assigning list segments to salespeople
3
Allowing list contact to called or e-mail
4
Tracking responses
5
Generating report
3.9.1.2 Customer Service Automation (CSA) 1
Service Request/ Customer Complaints Management
2
Web-enabled Contact Center Management
3
A customer interacting centre (CIC) is a critical component of operational CRM,
whether implemented for sales, marketing, or customer service functions. 4
Sales Force Automation, also known as —technology Enabled Selling (TES)“,
SFA is the application of information systems technologies to sales activities. This includes accurate business forecasts, generating customized presentations and proposals and personalized communications by the field representatives. It also handles the entire sales pipeline from lead generation to closure and activities like calendar, diary management.
5
Call centre systems provide extensive customer service by enabling customers to
receive any information they need, answering their queries, buying products and receiving payments promptly. Includes customized service and support addressing specific issued raised by customers, tracking cases and escalations, track progress, and identifying opportunities to cross/up-sell. 6
Order Management: It includes service requests, pricing and ordering products.
7
Invoicing or billing: this includes multiple order billing, multicurrency billing, and
pricing functionalities in a minimal feature tool. 8
Marketing automation and management enables companies to measure and track
campaigns develop and refine stratifies, gain insights into buying behavior, revenues and profitability using marketing analytics.
3.9.2 Analytical CRM Analytical CRM also known as back-office or strategic This components of the CRM ecosystem analyses the data created on the operational side of the CRM effort for the purpose of business performance management and improvement. Prediction of customer behavior ,identifying relevant customer segments, identifying potential customers, etc. are some of the activities that could be performed from the knowledge arising out of analytic CRM efforts. Data mining applications perform this analysis and extract relevant and useful knowledge about customers. The data required for the Data mining applications is stored in a warehouse. The data warehouse contains historical data collected from all parts of the company along with demographic and other environmental knowledge. CRM detects patterns from the various customer touch points and provides an analysis of the data to help customer service, sales, and marketing departments to personalize communications with their customers. In analytical CRM, data gathered within operational CRM and/or other sources analyzed to segment customers or to identify potential to enhance client relationship. Customer analysis typically can lead to targeted campaigns to increase share of customer's wallet. Examples of Campaigns directed towards customers are:
Acquisition: Cross-sell, up-sell Retention: Retaining those customers, who leave due to maturity or attrition. Information: Providing timely and regular to customers. Modification: Altering details of the transactional nature of the customers' relationship Analytical CRM analyzes customer data for a variety of purposes: 1
Design and execution of targeted marketing campaigns to optimize marketing
effectiveness 2
Design and execution of specific customer campaigns, including customer
acquisition , cross-selling , up selling, retention 3
Analysis of customer behavior aid to product and service decision making (e.g.
pricing, new product development etc.) 4
Management decisions, e.g. financial forecasting and customer profitability
analysis 5
Prediction of the probability of customer defection ( churn analysis)
CRM technology can track customer interests, needs, and buying habits as they progress through their life cycles, and tailor the marketing effort accordingly. This way customer gets exactly what he wants. The technology can track customer product use as the product progresses through its life cycle, and tailor the service strategy accordingly. This way customer gets what he needs as the product ages. When any of the technology-driven improvements in customer service (mentioned above) contribute to long-term customer satisfaction, they can ensure repeat purchases, improve customer relationships, increase customer loyalty, decrease customer turnover, decrease marketing costs (associated with customer acquisition and customer? training?), increase sales revenue, and thereby increase profit margins. Repeat purchase, however, comes from customer satisfaction -which in turn comes from a deeper understanding of each customer, their individual business challenges and proposing solutions for those challenges rather than a "one size fits all" approach. CRM software enables sales people to achieve this one on one approach to selling and can automate some elements of it via tailorable marketing communications. However, all of these elements facilitated by or for humans to achieve -CRM is therefore a company-wide attitude as much as a software solution. Technical functionality A CRM solution characterized by the following functionality: scalability -the ability used on a large scale, and reliably expanded to whatever scale
is necessary. multiple communication channels -the ability to interface with users via many different devices (phone, WAP, internet, etc) workflow -the ability to trigger a process in the back office system, e. g. Email Response, etc. assignment -the ability to assign requests (Service Requests, Sales Opportunities) to a person or group. Database, the centralized storage (in a data warehouse) of all information relevant to customer interaction, customer privacy e.g. data encryption and the destruction of records to ensure they are not stolen or abused. CRM does not necessarily imply gathering new data, it can used merely to make "better use" of data the corporation already has. However, in most cases they are used to collect new data. Some argue that the most basic privacy concern is the centralized database itself, and that CRM built this way are inherently privacy-invasive. CRM in Small Business such as hotel and restaurants the use of internet sites and specifically e-mail, in particular, are often consider as less expensive communication methods in comparison to traditional ones such as telephone calls. These types of technologies service can be very helpful, but it is useless to a business that cannot reach its customers. Some major companies believe that the majority of their clients trust other means of communication, like telephone, more than they trust e-mail. Clients, however, are usually not the ones to blame because it is often the manner of connecting with consumers on a personal level making them feel as though they cherished as customers. It is up to the companies to focus on reaching every customer and developing a relationship. The CRM system allows a business to maintain all customer records in one centralized location that is accessible to an entire organization through password administration. Front office systems are set up to collect data from the customers for processing into the data warehouse. The data warehouse is a back office system used to fulfill and support customer orders. All customer information is stored in the data warehouse. Back office CRM makes it possible for a company to follow sales, orders, and cancellations. Special regressions of this data can be very beneficial for the marketing division of a firm/company.
3.9.2.1 Campaign Management Campaign management software is marketing oriented CRM software that combines elements of Operational and Analytical CRM and allows campaigns to run on an existing client base. Campaign Management generally used when one needs to create personalized offer and to contact personally each client. Campaign Management software functions 1 Choosing campaign recipients from the client base according to selected criteria 2 Development of a campaign offer (this is often done —out-of œthe-system“ and is not automated) 3 Assigning specific campaign offers to selected recipients 4 Automatically sending offers to the selected clients via selected channels(either directly, via channels such as e-mail, or indirectly, by creating lists for use in channels such as direct mail) 5 Gathering, storing , and analyzing campaign results( including tracking responses and analyzing propensities)
3.9.2.2 Geographic CRM Geographic CRM (GCRM) is a customer relation management information system that collaborating geographic information system and traditional CRM. GCRM combines data collected from route of movement, types of residence, ambience trading areas and other customer and marketing information that be matched with relevant road condition, building formations, and a floating population. Such data are conformed to a map and regionally analyzed with OLAP (On Line Analytical Processing) for visualization. This enables a company to examine potential customers and manage existing customers in the region.
3.9.3 Collaborative CRM Collaborative CRM facilitate interactions between customers and companies and between members of the company around customer information. The function of the Customer Interaction System or Collaborative Customer Relationship Management is to co-ordinate the multi-channel service and support given to the customer by providing the infrastructure for responsive and effective support to customer issues, questions, complaints, etc.
Collaborative CRM aims to get various departments within a business such as sales, technical support, and marketing, to share the useful information that they collect from interaction with customers. Feedback from a technical support center could be used to inform marketing staffers about specific services and features requested by customers. Collaborative CRM‘s ultimate goal is to use information collected from all departments to improve the quality of customer service.
3.10 CRM Strategy Several commercial CRM software packages are available which vary in their approach to CRM. However, CRM is not just a technology but rather a comprehensive customer-centric approach to an organization‘s philosophy in dealing with its customers. This includes policies and processes, front-of-house customer service, employee training, marketing, systems, and information management. Hence, it is important that any CRM implementation considerations stretch beyond technology, towards the broader organizational requirements. The objectives of a CRM strategy must consider a company‘s specific situations and its customers‘ needs and expectations. Information gained through CRM initiatives can support the development of marketing strategy by developing the organization‘s knowledge in areas such as identifying customer segments, improving customer retention, improving product offering (by better understanding customer needs), and by identifying the organization‘s most profitable customers. CRM strategies can vary in size, complexity, and scope. Some companies consider a CRM strategy only to focus on the management of a team of salespeople. However, the CRM strategy can cover customer interaction across the entire organization. Many commercial CRM software packages that are available provide features that serve sales, marketing, event management, project management, and finance.
3.11 Steps Involved in the CRM Process A. Gathering customer data and constructing a customer database. B. Analyzing customer data and identifying target customers. C. Develop CRM programmes for the different customer segments. D. Effective implementation of CRM programmes.
A. Collecting Customer Data and Constructing A Customer Database The first step in the CRM process is building or constructing a customer database. This database would comprise of all the data, the firm has collected about its customers and will be the foundation based on which all the future CRM activities are planned and implemented. Ideally, the customer database must contain the following information: 1 Transactions: A brief history of the purchases made by the customer in terms of date of purchases, the price paid, the goods purchased and whether or not the purchases made had been in response to any specific promotion campaign or marketing activity. 2 A Record of Customer Interactions: This could include information on how many times the customer had wished the website, made telephonic inquiries or direct mail. 3 Customer Preferences: Information related to what was the customer‘s choice. 4 Descriptive Information: More information describes the customer, especially demographic and psychographic data. Such information can used to plan and develop various market segments. 5
Feedback on Customer Responses to Marketing Activities: The analysis of the
transaction and contact data will help the retailer to understand about the customer‘s response to marketing activities. Gathered information about individual customer must be careful about not going to the extent of violating their privacy and objections are raise. User must disclose to the customer the purpose for which the information collected and use it for that specific purpose only.
B. Analyzing Customer Data and identifying Target Customers The next step in the CRM process is to analyze the customer database and use thisinformation to help retailers develop programmes for building loyalty.Retailers make use of certain approaches to obtain such information. These include: 1 Data Mining Technique; this technique identifies patterns of customer behaviour which the analyst is unaware of prior to searching through the data.
2 Market Basket Analysis: This type of analysis focuses on the composition of basket or bundle of products purchased by the customers or household during a single occasion. Such analysis can help to identify where to focus.
Identifying Specific Market Segment The customer data analysis are able to cater to the similar needs of their group ofcustomers, purchases similar merchandise or services and respond in a similar manner tomarketing activities.In the course of time, this information used to identify their loyal Customers. Target and work towards developing customer loyalty programmes.Organization can use following measures to understand how valuables the customers areto the firm 1
Determine the Lifetime Customer Value (LTV): Lifetime customer value said
to be the expected contribution to the organization from the customer, over his or her relationship with the organization. LTV obtained by using the past behaviour to forecast the future purchases behaviours, the gross margin from such purchases and costs associated with servicing the customers. A customer who purchases worth Rs. 1000/-every month is likely to have a lower LTV as compared to a customer who purchases worth Rs. 50/-on every visit thrice in a week. Similarly, a customer who purchases merchandise only during discount sale programmes that have a lower LTV as compared to a customer who pay the full price. 2
Working on the Customer Pyramid: Customers also differ in terms of their
profitability. This realization is because of the 80-20 rule that says that 80% the sales or profits usually come from 20% of the customers. Thus, the organization can categorize their customer into two groups based of their LTV score. The customers with the highest LTV scores would be a part of the 20% of the customers group while other group would include the rest of the customers. However, such group wise distinction of customers may not always work.
Figure No. 3.1 The Customer Pyramid18
1 Platinum Segment These customers are most loyal customers with the top 25% LTV these loyal customers are not much concerned about the price of the merchandise but give more importance to the Customer Service aspect. 2 Gold Segment: The next 25% of the customers in terms of their LTV They are more prices sensitive. If price benefit offered, the customer may switch loyalty to the competitor. 3 Iron Segment: Customers falling in this segment could not give much attention from organization‘s point of view due to their modest LTV.
18
Valerie Zeithaml, Roland Rust and Katherine Lemon‘s, —The Customer Pyramid“ from Nair Suja (2006), —Retail Management“, Himalaya publishing rd
House Pvt ltd., Bombay, 3 edition. Page no.349.
4. Lead Segment: Customers who fall in this category are those who spend a considerable time at the retail outlet demanding a lot of attention, do not buy much. There is another segment scheme called decile analysis where customers segmented into 10 deciles according to their LTV rather than in terms of quartilers. Of course while using decile analysis; the 10% of the customers with the highest LTV would fall in the topmost category.
Recency, Frequency, Monetary (RFM) Analysis: RFM Analysis used for segmenting the customers. The scheme segments customers based on how recently they have made purchases, how frequently they make purchases and the quantity (how much) of the purchases are made by them. The RFM analysis is typically a method of estimating the LTV of a customer based on the recency, frequency, and monetary value of past purchases made by them. Category of customers as per RFM is First time customers, early repeat customers, High value customers. This analysis used to develop strategies for different target customers. Customers who have made infrequent, small purchases in the recent past considered to first time customers. The objective of CRM programmes targeting this type of customers will be to convert them to early repeat customers and eventually to high value customers. Whereas, the objective of CRM directed towards high value customers will aim at ensuring continued loyalty, increase retention and gain bigger share of wallet by selling more merchandise to them.
C. Develop CRM Programmes for the Different Customer Segments After having segmented customers according to their future profit potential, the next step in the CRM process would be to develop programmes for different customer segments. Usually, the retailers will work out programmes to retain their best customers, make efforts to convert good customers into high LTV customers and try to get rid of unprofitable customers. Retain Best Customers: Organizations try to reward their valued customers though frequent programmes, offering special customer service, personalized reward or benefits and develop a sense of community among customers. Special Customer Services: To ensure the continued support or loyalty of its elite customers.
Personalization: A big challenge before organization is to work out strategies that would appeal to a majority customers belonging to a particular segment of customers in the customer pyramid. Nevertheless, today with the availability of customer level data and analysis tools, organization are in a better position to work out economically unique benefit offers and target communication to individual customers. Converting Good Customers into Best Customers: Organizations are interested in converting iron and gold customers (as per the customer pyramid) into platinum customers. Organizations try innovative ways in order to encourage their existing customers to purchase more services and thereby increasingly the share of wallet with them. To tackle dealing with Unprofitable Customers: Very often organization may have to deal with customers who may actually be having negative LTV, and they may actually be losing money on the sales transactions they have with the customers.
D Effective Implementation of CRM Programmes The purpose of having CRM programmes is to increase sales and profit of the organization. The effectiveness of the CRM programmes will depend upon the coordination of different functional activities in the organization. Thus, the MIS department has to collect, analyze and make the relevant information easily accessible for employees to implement the programmes. Finally, successful implementation of the CRM programmes will depend upon operations and human resource management i.e. hiring, training and motivating employees who will be using the information to deliver personalized services.
3.12 CRM Implementation Road Map19 It helps a firm to develop a positive cultural acceptance of CRM .The different stages of a CRM implementation road map as shown below
Figure No. 3.2 CRM Implementation Road Map
The creation of an enterprise CRM strategy requires a firm to take a hard look at itsbusiness and environment.After analysis of its environment, the firm needs to define its purpose for going in for aCRM exercise. The planning phase includes documentation of high œlevel CRM business goals in the form of a business document that becomes the focal point for strategy development. 19
G Shainesh and Jagdish N. Sheth., —Customer Relationship Management“, a strategic perspective, published by Rajiv Beri for Macmillan India Ltd.,2006 page no.158.
The process design is an important phase wherein the firms look at their current processes and try to redesign the processes to make more customer focused. Technologies are evaluated and as per the capabilities and the selection is made. The solution development stage consists of various activities such as customization of features, development of new features and testing by using the prototype and the design of the database. In this implementation stage, the organization deploys the solution and documents it. End users need to trained and the system needs to be sold internally so that it is used The final stage in the CRM implantation road map involves development of metrics for measuring the performance of the CRM solution and comparing it with the desired performance. If the solution falls short of expectations, the firm might go back and redefine its CRM requirements.
3.13 Process View of CRM20
20
G Shainesh and Jagdish N. Sheth., —Customer Relationship Management“, a strategic perspective, published by Rajiv Beri for Macmillan India Ltd.,2006 page no.169.
3.14 Steps in a Sound Relationship A relationship needs to be so established and develop that a set pattern is realized on the basis of which a company can initiate its CRM undertakings. The following exhibit brings into light various junctions in the overall journey of a relationship. 1 The relationship journey begins with establishing contact with the customers or coming face to face with him. 2 Next come togetherness where the two become familiar with each other. They shed-off their hesitation to know the facts and tend to cleat their doubts. 3 Then they become one that means no gap left between the two. They have an informal talk wherein the seller gets an opportunity to see through the customer and inform him about the exact profile of the organization and the customer becomes an open book to the seller. 4 Finally, a bond created, but this is not the destination. Customer Relationship Management is only a means and not an end. 3.15. Efficient Customer Service21 Customer service is not merely making available what the customer wants. It means much more than that. The quality customer service appeals through the most homely techniques of customer attraction. The following description on ABC of Quality Customer Service reveals the wonderful steps to say with pride, —We Care.“ A. Attitudes -A positive attitude is necessary in customer service because more than the product the customer wants an explanation. A full-fledged explanation can make the customer feel inclined to buy a product. Attitude is an abstract and hypothetical reaction of a person with regard to the exterior appearance of a product or event. Many a time owing to circumstances people have to change their attitudes to adjust themselves in a particular situation. A positive attitude of the employees towards the customers enables them to win over the latter because this gives them an assurance about the product. A positive attitude shows reliability that is a major weapon with the organizations.
21
Monga G. S. & Anand shalini (2003), —Marketing Management“, Deep & Deep
Publishing Pvt. Ltd., New Delhi, 1st edition. Page no. 555.
B. Behaviour- Behaviour shows in the ways and means of a person. A proper behaviour by employees is appealing to the customers. Well-behaved employees attract customers through an effective demonstration of their courtesy and mannerism and the firm‘s commitment to the customer. Body language is the major element of a person‘s behaviour that is incomplete without it. Words coming out of the mouth without body movements mean only speaking. However, when body movement is present it becomes an expression. Body language adds to the meaning of what a person has to say. Behaviour is also the mirror to attitude. By seeing the behavior of the employees, the customer can judge what is going around in his mind. C. Change- All sensible organizations understand the language of change. In a dynamic market, change is a normal feature. Simply serving the customers is not all. The customers should be fully satisfied and assured that offer should be exactly what they want. Sometimes the customers are unable to express exactly what they want. The employees should be meticulous enough to read their minds so that the product is tailor-made even without the customers taking the trouble to express what exactly they want. A final touch to the subject helps and is something unforgettable. Roughly made products, even if they cater to the needs of the customers cannot create an impact. Lastly, it is essential to obtain a feedback from the customer to know how the product is satisfying him. 3.16 Relationship Building Organizations are involved in an unending transaction and interaction relationship with the customers. The companies that have a computerized system of dealing with the customers should adopt the following three tips in their dealings with the customers: 1 Firstly, it is essential to have a sound design interface where a flawless interaction with the customers. 2 Secondly, there should be a documentary system of customer feedback to get exact specifications. 3 Thirdly, the information provided by the customers should integrate.
The Functioning of Retention Equity Retention equity works in a number of ways. The best way for the firm to retain the customer and to divert them from purchasing from competitors is to provide extra benefits to them e.g. allowing them to state their own preferences on the site. The company should tailor-made the product. This way they tend to understand their customers better and satisfy them best by catering to every specific need of theirs. The company by doing so it benefited largely because satisfied customers do mean increased revenues and more retention. Another effective way of greater customer retention is rewarding the behavioures that gives a push to retention connection. Either rewarding in monetary terms or by special treat and other ways can do this. A firm may enhance the retention by affecting the customer‘s emotionally. This means tapping their hearts so that emotionally they would not want to part with the firm. There should be something that one should create an emotional connection between the customers and the organization Teach the Customer Provide the maximum education to customers regarding the company and the products. Tell them what to provide them the convenience, it is not only a matter of providing the goods but also related services for which the customers do have an expectation. Do not kill their expectation. Rather fulfill them so that you gain their loyalty, which is a major necessary of your business. Touch their Hearts Adopt an attitude that enables you to tap the most emotional corners of their hearts. Let them be carried away. Let them develop an association for the company so that they cannot ever think of parting with it. Delight them Attracting the customers gradually transformed into delighting the customers. Anyone can attract the customers because the efforts are such that they appear on the superficial level. However, delighting them is something beyond attraction. Here the hearts of the customers should be full of excitement about the product. Their will to buy should find a way through the heart and seen in the eyes.
CRM is not a just routine task that can be driven and more than the quality of the services rendered, personal empathy, and respect for the customer are the most important CRM tools for the hospitality sector. Tools viz. Satisfy societal needs of customers, an action speaks louder than words, admiration of achievements, take cognizance of every small thing, a friend in need is a friend indeed, thoughtful complimentaries. (R.Chavan, July 2009)
3.17 Service Quality Model CRM is important aspect in maintaining and retaining customer but most important is marinating Service Quality to maintain and retaining the customer. Parasuraman, Zeithaml, and berry formulated a service-quality model that highlights the main requirements for delivering high service quality. The service quality of a firm tested at each service encounter. Customers expectations based on many things such as, experiences, word of mouth, and advertising. In general, customers compare the perceived service with the expected service. If the perceived services fall below the expected service, customers are disappointed. If the perceived service meets or exceeds their expectation, they are apt to use the provider again. Successful companies add benefits to their offering that not only satisfy customers but surprise and delight them. Delighting customers is a matter of exceeding expectation.
Figure No. 3.4 22 Service Quality Model
The model identifies five gaps that cause unsuccessful delivery. 1
Gap between consumer expectation and management perception-Management
does not always correctly perceive what customers want. 2 Gap between management perception and service-quality specificationManagement might correctly perceive customers‘ wants but not set a performance standard e.g. In hotel tell the waiter give fast service to the customers without specifying it in a minute.
22
Philip Kotler and Kevin Lane Keller ((2006), —MarketingManagement“,
published by Pearson Education (Singapore) Pvt.Ltd.,Indian Branch,Delhi,12 edition.page no.383.
th
3 Gap between service quality specifications and service delivery-Personnel might be poorly trained, or incapable of or unwilling to meet the standard; or they may be held to conflicting standards, such as taking time to listens to customers and servicing them fast. 4
Gap between service delivery and external communications œ This gap arises due
to difference between consumer expectations and statements made by company representatives or ads. If a hotel brochure shows a beautiful room, but the customer arrives and finds the room to be cheap and tacky looking, external communications have distorted the customer‘s expectations. 5
Gap between perceived service and expected service-This gap occurs when the
consumer misperceives the service quality. The waiter may keep on asking the customer how is the food, to show care, but the customer may interpret this as an indication that something really is wrong.
Based on this service-quality model, these researchers identified the following five determinants of service quality, in order of importance. 1
Reliability-It means ability to perform the promised service accurately.
2
Responsiveness-It is willingness to help customers and to provide prompt service.
3
Assurance-It is the knowledge and courtesy of employees and their ability to
convey trust and confidence. 4
Empathy-It is provision of caring, individualized attention to customers.
5
Tangibles-It is appearance of physical facilities, equipments, personnel, and
communication materials. Based on these five factors, the researchers developed the 22-item SERVQUAL (service quality) scale.
Reliability •
Providing service as promised
•
Dependability in handling customers‘ service problems
•
Performing services from the initial stage
•
Providing services at the promised time
•
Maintaining error-free records
Responsiveness •
Keeping customer informed as to when services will be performed
•
Prompt service to customers
•
Willingness to help customers
•
Readiness to respond to customers‘ requests
Assurance •
Employees who instill confidence in customers
•
Making customers feel safe in their transactions
•
Employees who are consistently courteous
•
Employees who have the knowledge to answer customer questions
Empathy •
Giving customers individual attention
•
Employees who deal with customers in a caring fashion
•
Having the customer‘s best interest at heart
•
Employees who understand the needs of their customer
•
Convenient business hours
Tangibles •
Modern equipment
•
Visually appearing facilities
•
Employees who have a neat, professional appearance
•
Visually appearing materials associated with the service
The Service Quality Model is also useful in hospitality industry rather CRM and Service Quality Model goes hand in hand. The customer mostly visit those hotels which they known by their family or friends and relatives i.e. word mouth communication works to promote the product. Expected service influenced by three things viz. word mouth communication, past experience and personal needs. The perception of the customer based on other external communication along with these
three things. The first gap can minimized through CRM. If the hotel understands well about their customer through this available personal information from CRM then there would be fewer chances to have the gap between the customer expectation and management perception about the consumer expectation. The hotel can easily find out the needs of their customer by analyzing the behavior and background of customer. There is very meager chance gap between the customer pre and post experience. Automatically all the gaps vanished and the hotel will successfully serve their customers as per their expectation and perception. However, the hotel should update the customer‘s data to delight the customer. After all, Change is only stable things in human life.
3.18 Conclusion CRM is most essential tool in marketing. Any Customer Relationship Management effort should be a combination of Supplier Relationship Management and Process Relationship Management efforts. It is necessary that CRM developers and Implementers develop CRM programs and packages for customers only after they have developed close links and coordination with supplier Relationship Managers and Process Relationship Managers. It is only such and integrated approach that will yield superior value for the company and the customers. In conclusion, we can say that the purpose of collecting information and developing knowledge is able to differentiate customers and meet their specific requirements. CRM is Identification, Differentiation, Interaction, and Customization for implementing one-to-one relationship with customer. This would help to initiate customization of the services for customers based on their needs .By tailoring the elements of service marketing mix hotel can customize their offering to all or selected profitable or valuable customers. Customer satisfaction will cause customer loyalty and retention. Customer retention is really important and good for both business and customers. For business ,since customers stay longer, buy more and more frequently it cause increase wallet share also it is cheaper to keep existing customers rather than attracting new ones.
CHAPTER 4 DATA ANALYSIS AND INTERPRETATION 4.1 Introduction Researcher has presented data in tabular form followed by analysis and interpretation. Data has been collected with the help of two distinct schedules. This chapter is divided into two parts one depicts data presentation of sample hotels and part two presents‘ data of sample customers.
PART-I 4.2 DATA ANALYSIS OF SAMPLE HOTELS Introduction For measuring overall CRM of hotel industry in Satara, district 23 questions were set toassess status of CRM in sample hotels.37 sample hotels from different stratum viz. downtown, resort, star and other hotels fromprime towns in Satara District has been taken for study (refer table no. 1.2). Table 4.2.01 Record of Customers‘ Data Following table shows the hotels who keep records of customer‘s visits. Sr. 1 2 3 4
Type of hotel Downtown Resort Star Other Total
Yes 17 2 7 6 32
% 46 5 19 16 86
% 85 100 100 75 86
No 3 0 0 2 5
% 8 0 0 5 14
% 15 0 0 25 14
Total 20 2 7 8 37
Source: (Primary Data) Table 4.2.01 shows that majority of sample hotels keeps record of the customers i.e. 86 percentage. Out of these 46% belongs to Downtown, 19% star graded, 16% other category and 5% Resorts. Only few i.e. 14% do not keep records of the customers. Out of these, 8%belongs to downtown category and 5% to other category.
Table 4.2.02 Customers Record Maintaining Method Following table shows methods of recording the customers‘ data as per type of hotel.Hotels record the customers‘ data in two ways computerized and manually.It has found from table no. 4.2.2 that 86% sample hotels maintain data of customers.
Sr.
Type Hotel
of
1
Downtown 4
Computerized %
2 3 4
Resort 2 Star 4 Other 6 Total 16 Source: (Primary Data)
%
Manually %
%
Total
Total Samples
13 24
14
44 82 17
20
6 13 19 50
1 3 1 19
3 9 3 59
2 7 8 37
100 57 100 50
50 43 17 59
2 7 6 32
Table 4.2.02 reveals that 59% hotels keep customers records manually and 50% keep itcomputerized. One downtown, resort and other category hotel keeps record bothcomputerized and manually. Entire sample resort and other hotels keep records computerized whereas 82% ofdowntown hotels keep it manually. It observed that sample hotels in Satara are moving towards modern methods ofcustomer‘s data maintaining i.e. computerized data. Table 4.2.03 Difficulty in Recording the Customers‘Data Following table shows difficulty in recording the customers‘data as per type of hotel. Sr. Type of Hotel 1 2 3 4
Yes %
Downtown 1 Resort 0 Star 0 Other 0 Total 1 Source: (Primary Data)
3 0 0 0 3
%
No
%
%
Total
6 0 0 0 3
16 2 7 6 31
50 6 22 19 97
94 100 100 100 97
17 2 7 6 32
Total Samples 20 2 7 8 37
Table 4.2.03 reveals that majority of hotels i.e. 97% do not find any difficulty in recording the customers’ data. No Resorts, star graded and other category of hotels find any difficulty. Only one i.e. downtown hotel finds difficulty in recording the customers’ data.
Table 4.2.04 Availability of CRM Software Following table shows availability of CRM software as per type of hotel. Now a day, Customer Relationship Management software used to develop good relation with customer and a means to improve loyalty of the customer. Sr. No 1 2 3 4
Type of hotel Downtown Resort Star Other Total Source: (Primary Data)
Yes 0 0 0 1 1
% 0 0 0 3 3
% 0 0 0 13 3
No 20 2 7 7 36
% 54 5 19 19 97
% 100 100 100 88 97
Total 20 2 7 8 37
Table 4.2.04 shows that only 3% of total sample hotels have introduced CRM software in their hotel. This hotel belongs to other category of hotel. Remaining 97% hotels do not have CRM software. 3% of hotel belongs to other category which has recently established introduced CRM software. Table 4.2.05 Perception of Hotel Officials towards Need of Customers‘ Data Following table shows perception of hotel officials towards need to record the customers‘data as per type of hotel.
Sr. 1 2 3 4
Type of Hotel Downtown Resort Star Other Total
Yes %
%
No
%
%
Total
17 2 7 6 32
85 100 100 75 86
3 0 0 2 5
8 0 0 5 14
15 0 0 25 14
20 2 7 8 37
46 5 19 16 86
Source: (Primary Data)
Table 4.2.05 shows that majority of sample hotels i.e. 86% percept a need to record the customers‘ data. Out of these, 46% belongs to Downtown, 5% Resort, 19% star graded and 16% to other category. Only 14% hotels do not think that there is a need to record the customers‘ data. Out of these 8% belongs to downtown category and 5% other category. It observed that all resorts, star graded and 85% Downtown and 75% other category strongly agrees on a need to record the customers‘ data whereas 25% from other
category and 15% from Downtown do not feel to record the customers‘ information because they operate only Dinning section.
Table 4.2.06 Make Use of Customers‘ Data Following table shows opinion to make use of customer‘s data as per type of hotel. It has found from Table no. 4.2.6 that officials of 86% of total sample hotels percept need of data and collects customers data.
Sr 1 2 3 4
Type of Hotel Downtown Resort Star Other Total
Yes %
%
No %
%
Total
12 2 7 5 26
71 100 100 83 81
5 0 0 1 6
29 0 0 17 19
17 2 7 6 32
38 6 22 16 81
16 0 0 3 19
Total Samples 20 2 7 8 37
Source: (Primary Data) Table 4.2.06 shows, that majority of sample hotels i.e. 81% make use of customers‘ data and rest 19% do not make use of data. Out of these 38% of sample hotels belongs to Downtown, 22% star graded, 16% other category and 6% Resorts. Only 19% of sample hotels do not make use of customers‘ data. Out of these, 16% belongs to Downtown and 3% to other category. All Resorts and star graded, 83% other category and 71% Downtown sample hotels make use of customers‘ data for a different reasons such as reminding of the things that forgotten by customers, reminding of their bookings, sending greetings and for legal aspect i.e. police enquiry. Whereas 29% Downtown and 17% other category of sample hotel do not use the customers data for their business only they are just doing it for legal purpose. Table 4.2.07 Official‘s Perception to Get Benefits of Customers‘ Data Following table shows opinion to enjoy the benefit of customer‘s data as per type of hotel. Sr Type of Hotel Yes % % No % % Total Total Samples 1 Downtown 12 38 71 5 16 29 17 20 2 Resort 2 6 100 0 0 0 2 2 3 Star 7 22 100 0 0 0 7 7 4 Other 5 16 83 1 3 17 6 8 Total 26 81 81 6 19 19 32 37 Source: (Primary Data)
Table 4.2.07 shows, that majority of sample hotels i.e. 81% enjoy the benefits of customer‘s data. Out of these sample hotels, 38% belongs to Downtown, and 22% Star graded, 16% other category and 6% to Resorts. A very few i.e. 19% do not enjoy any benefit of customers‘ data. Out of these, 16% belongs to Downtown and 3% to other category. All star graded and Resorts enjoy the benefits of customer‘s data as well as 83% other and 71% Downtown hotels. Whereas 29% Downtown and 17% other category do not enjoy the benefits of customers‘ data. Researcher observed that some hotels maintain the data just for legal requirements. Table 4.2.08 Perception of Hotel Officials on Importance of Customer‘s Data Following table shows perception of hotels officials on importance of customer‘s data as per type of hotel.
Sr. 1 2 3 4
Type of Hotel Downtown Resort Star Other Total
Yes
%
%
No %
%
Total
14 2 7 5 28
38 5 19 14 76
70 100 100 63 76
6 0 0 3 9
30 0 0 37 24
20 2 7 8 37
16 0 0 8 24
Source: (Primary Data) Table 4.2.08 reveals, that maximum number of hotels i.e. 76% feels importance of customers‘ data. Out of these 38% belongs to Downtown, 19% star graded, 14% other category and 5% to Resort. Twenty-four percents hotels do not find any importance of customers‘ data. Out of these, 8% belongs to other category and 16% to Downtown. All Resorts and Star graded hotels feels customers‘ data is important and 70% from Downtown, 63% from other category also feels customers‘ data is important. However, 37% from other category and 30% from Downtown category have no importance of customers‘ data.
Table 4.2.09 Perceptual Ways and Means to Keep Customers Loyalty Following table shows methods used to get loyalty from as per type of hotel. There are different ways adopted by different hotels to make their customers loyal, such as personal offerings, homely environment, meeting smallest desire of customers and other things.
Sr. 1
2
3
4
Type of hotel = Downtown Loyalty methods = Personal offering 4 % 11 % 20 Homely environment 12 % 32 % 60 Meeting smallest 3 desire % 8 % 15 other 4 % 11 % 20 Total 23 Sample size 20
Resort Star
Other
Total
0 0 0 1 3 14
4 11 50 1 3 13
9 24 24 15 41 41
0
4
3
10
0 0 0 0 0 02 2
11 57 2 5 29 07 7
8 38 0 0 0 08 8
27 27 6 16 16 40 37
1 3 50 1 3 50
Source: (Primary Data) Table 4.2.09 it is seen that majority of sample hotels i.e. 41% provide homely environment. Out of these, 32% belongs to Downtown category, 3% each belongs to Resorts, star, and other category. Twenty-seven percents sample hotels think meeting smallest desire can get the customers‘ loyalty. From this, 11% belongs to star graded, 8% other, and 8% to Downtown. Next, 24% hotels believe in personal offering. Out of these 11%, each belongs to Downtown and Other category and 3% from Resort category. Only 16% of sample hotels do not believe in above three things to get loyalty. Out of these, 11% belongs to Downtown and 5% to star graded hotels. It observed that Resorts believe in both the things i.e. 50% to personal offerings and 50% to homely environment. Downtown hotels nearly prefers all the ways such as 20% for personal offerings, 60% for homely environment, and 15% for meeting smallest desire of the customers along with 20% other things.
Star graded hotels mostly believe in three ways i.e. 57% meeting smallest desire, 29%other ways, and 14% homely environment. Other category hotels apply three ways to get the loyalty of customers, 50% personalofferings, 38% meeting smallest desire and 13% homely environment. It is said that Home away from home. Homely touch, as well as meeting smallest desire ofcustomers, and personalized offerings is not only things limited to get and improve loyaltybut also other things are equally important such as Price, Quality food, Good service,Prompt service, and good environment. Many well-located hotels feel that there is no needto make any special efforts to get the loyalty.
Table 4.2.10 Need to Appoint the Public Relation Officer (PRO) Researcher observed that no single hotel in Satara district has appointed PRO who playsvital role in improving good relation with stakeholders. No hotel is aware about thePRO‘s, in Satara district. Therefore, researcher further enquired into need to appoint PROin hotel. Following table shows opinion of officials towards need of appointment of PROas per type of hotel.
Sr. 1 2 3 4
Type of Hotel Downtown Resort Star Other Total
Yes %
%
No %
%
Total
4 0 3 0 7
20 0 43 0 19
16 2 4 8 30
80 100 57 100 81
20 2 7 8 37
11 0 8 0 19
43 5 11 22 81
Source: (Primary Data) Table 4.2.10 clears that majority official i.e. 81% of sample hotels do not feel to have a PRO in hotel. It includes 43% of Downtown, 22% other category, 11% star graded and 5% Resorts. A very few i.e. 19% sample hotels officials feels that there is a need to appoint PRO in hotel. It involves majority of Downtown hotels i.e. 11% and 8% star graded hotels.
Table 4.2.11 Official‘s Justification on Requirement of PRO Researcher probe in depth to assess reason behind non-appointment of PRO Following table shows reasons of not appointing PRO as per type of hotel.
Sr. 1
2
3
4
Type of hotel = Reasons = Costly % % Not necessary % % Existing staff sufficient % % other % % Total
Downtown Resort Star
Other
Total
0 0 0 16 43 80 4
0 0 0 2 5 100 0
0 0 0 3 8 43 4
0 0 0 8 22 100 0
0 0 0 29 78 78 8
11 20 0 0 0 20
0 0 0 0 0 2
11 57 0 0 0 7
0 0 0 0 0 8
22 22 0 0 0 37
Source: (Primary Data) Table 4.2.11 reveals that majority officials i.e. 78% of sample hotels feels there is no need to appoint the PRO. It involves 43% Downtown hotels, 22% other category, 8% star graded and 5% Resorts. Only 22% officials of sample hotels feels existing staff is sufficient to develop good relation with customer. It involves 11% Downtown and Star graded hotels each. Table 4.2.12 Correspondence Is Made to Customers for Maintaining Relations Correspondence is also a good way to maintain a good relation with customer. Following table shows sample hotel regularly correspond with customers as per type of hotel. Type of Yes Hotel 1 Downtown 7 2 Resort 2 3 Star 5 4 Other 1 Total 15 Source: (Primary Data) Sr.
%
%
No %
%
Total
19 5 14 3 41
35 100 71 12 41
13 0 2 7 22
65 0 29 87 59
20 2 7 8 37
35 0 5 19 59
Table 4.2.12 seen that 59% of sample hotels do not make any correspondencewith their customers. Out of these 35% sample hotel from Downtown, 19% other and 5%star graded category. Forty-one percents of sample hotels make correspondence with theircustomers. Out of this majority is from Downtown i.e. 19%, 14% star, 5% Resort and 3%only other category of sample hotels.Eighty-seven percent other category, 65% Downtown and 29% star graded sample hotelsdo not make any correspondence with customers whereas entire resorts, 71% star ,35%Downtown and 13% other category of sample hotels make correspondence with theircustomers. Table 4.2.13 Motive behind Correspondence with Customers Following table shows the officials motive behind correspond with customer as per type ofhotel. Officials of 41% sample hotels indulge into correspondence with customers. Sr. 1
Type of Needs
Hotel
Handling customer complaint % % 2 Reminder % % 3 Greetings % % 4 Inform about new services % % 5 Any special offer % % Total Total samples Source: (Primary Data)
Downtown
Resort Star
Other Total
0
2
1
0
3
0 0 4 27 20 3 20 15 0
13 100 0 0 0 1 7 50 0
7 14 2 13 29 4 27 57 1
0 0 1 7 5 0 0 0 0
20 20 7 47 47 8 53 53 1
0 0 0 0 0 7 0
0 0 0 0 0 2 2
7 14 1 7 14 5 1
0 0 0 0 0 1 0
7 7 1 7 7 15 3
Table 4.2.13 reveals majority of sample hotels, i.e. 53% making contact with their customers for sending Greetings. Out of these 27% star, 20% Downtown and 7% Resorts of sample hotels. Forty-seven percent of sample hotels contact customer to remind of their bookings and for their forgotten things. Out of these 27% Downtown,
13% star and 7% other category. Twenty percent of sample hotels make correspondence in handling the customers‘ complaints. Out of these 13%, resorts and 7% star category. All sample hotels of resorts handle the customers‘ complaints by making correspondence with them such as sending letters; e-mails for their inconvenience, 50% resorts send the greeting to their customer. However, No resort inform new services or convey special offer to the customer. Table 4.2.14 Media Preferred for Correspondence with customers. Media preferred by hotel officials to correspond with customer are as follows . Sr 1
2
3
4
5
Type of hotel Media Phone % % E-mail % % SMS % % Letter % % Other % % Total Total Samples
Down Resort Star town 7 1 3 47 7 20 35 50 43 1 2 3 7 13 20 5 100 43 0 1 0 0 7 0 0 50 0 0 0 1 0 0 7 0 0 14 1 0 0 7 0 0 5 0 0 9 4 7 7 2 5
Other Total 0 0 0 1 7 13 0 0 0 0 0 0 0 0 0 1 1
11 73 73 7 47 47 1 7 7 1 7 7 1 7 7 21 15
Source: (Primary Data) Table 4.2.14 reveals that majority of sample hotels i.e. 73% preferred phone media to contact customer. Out of these 47% Downtown hotels, 20% star graded and 7% Resorts. Forty-seven percent of sample hotels preferred e-mail for correspondence. Out of these 20% star graded, 13% Resorts, 7% each from Downtown, and Other category. Only 7% of sample hotels use SMS and these are Resorts. Seven percent of sample hotels use letter, these hotels belongs to Star graded, and other media used by only Downtown sample hotel. Downtown sample hotels use phone cent percent, 14% e-mail, and 14% other media.
Table 4.2.15 Methods Used to Build Strong Bonds with Customers Generally, hotel adopts many ways to build a relation with customers and researcher probe into ways viz. feedback from customers, taking personal care of customers, offering loyalty discounts, quick handling of customers‘ complaints and other ways.
Sr. 1
2
3
4
5
Type of Hotel Methods
Downt own Resort Star Other Total
Feedback % % Personal care % % Loyalty discounts % % Quick handling customers complaint % % Other % % Total Total samples
5 14 25 11 30 55 4 11 20 6
2 5 100 1 3 50 0 0 0 1
2 5 29 3 8 43 0 0 0 3
0 0 0 4 11 50 3 8 38 2
9 24 24 19 51 51 7 19 19 12
16 30 2 5 10 28 20
3 50 0 0 0 4 2
8 43 1 3 14 9 7
5 25 0 0 0 9 8
32 32 3 8 8 50 37
Source: (Primary Data) Table 4.2.15 shows, 51% of sample hotels concentrate on personal care of customer. It involves 30% Downtown, 11% other category, 8% star and only 3% Resorts. Thirty-two percent sample hotels feels quick handling of customers‘ complaints is the way to make a good relation. It includes 16% Downtown, 8% star, 5% other category and 3% Resorts. Twenty-four percent of sample hotels believe in taking time-to-time feedback from customer. Out of these, 56% belongs to Downtown, 22% each Resort and star graded hotels. Only 8% of sample hotels adopting other ways to maintain a good relation with customer such as offering reasonable rates, praising the customers, offering hospitality, parcel service, offering variety of dishes and good food etc. Out of these 5% hotels belongs to Downtown and 3% star graded.
Table 4.2.16 Methods to Treat Loyal Customer Researcher observes hotels adopt different ways to treat their loyal customers such as loyalty reward, special treatment, offer discounts, personalized service etc. The responses were as follows.
Type of Hotel Ways Sr. 1 Loyalty reward % % 2 Special treatment % % 3 Offer discounts % % 4 Personal service % % 5 Other % % Total
Downtown Resort Star Other Total 0 0 0 4 11 20 10 27 50 4 11 20 4 11 20 20
0 0 0 1 3 50 2 5 100 0 0 0 0 0 0 2
1 3 14 1 3 14 5 14 71 2 5 29 1 3 14 7
0 0 0 0 0 0 4 11 50 1 3 13 3 8 38 8
1 3 3 6 16 16 21 57 57 7 19 19 8 22 22 37
Source: (Primary Data) Table 4.2.16 shows that 57% of sample hotels offer discount to loyal customers, Out of which 27% belongs to Downtown, 14% star, 11% other category and 5% Resorts. Twenty-two percent of sample hotels offer other services to the loyal customers, out of which 11% belongs to Downtown, 8% other category and 3% star graded. Sixteen percents of sample hotels, offers special treatment to their loyal customers. Out of which 11% Downtown category and 3% each belongs to Resort and star graded hotels. Only three percents of sample hotels offer loyalty rewards and they all are star graded hotels.
Table 4.2.17 Management Communicates New Product to Customers Following table shows communication of new product to hotel. Type of Sr. Yes % % No % Hotel 1 Downtown 4 11 20 16 43 2 Resort 1 3 50 1 3 3 Star 2 5 29 5 14 4 Other 0 0 0 8 22 Total 7 19 19 30 81
customers as per type of % 80 50 71 100 81
Total 20 2 7 8 37
Source: (Primary Data) Table 4.2.17 shows that most of the sample hotels do not communicate new product to customer i.e. 81%, out of which 43% belongs Downtown, 22% other category, 14% star and 3% Resorts. Only 19% of sample hotels communicate new products and these hotels belongs to 11% Downtown, 5% star, and 3% Resort category. Those hotels communicate they are belongs to 50% from Resort, 29% star, and 20% Downtown category whereas those who do not communicate they are belongs to cent percent other category, 80% Downtown, 71% star and 50% Resorts category of sample hotels. Table 4.2.18 Method to Seek Customer‘s Feedback There are different ways to record customers‘ complaints such as feedback form, orally complaint by customers, through staff, CRM software etc. Type of Hotel Way Downtown Resort Star Other Total Sr. 1 Feedback form 6 2 4 0 12 % 16 5 11 0 32 % 30 100 57 0 32 2 Orally by customer 12 0 3 8 23 % 32 0 8 22 62 % 60 0 43 100 62 3 Through staff 2 1 1 0 4 % 5 3 3 0 11 % 10 50 14 0 11 4 CRM software 0 0 0 0 0 % 0 0 0 0 0 % 0 0 0 0 0 5 Other 0 0 0 0 0 % 0 0 0 0 0 % 0 0 0 0 0 Total 20 2 7 8 37 Source: (Primary Data)
Table 4.2.18 reveals that majority of sample hotels received the feedback of customers orally by customers and the percentage for that is 62, out of these total samples 32% Downtown, 22% other category and 8% belongs to star graded. Thirtytwo percent of sample hotels take customer feedback through Feedback form, out of which 16% of sample hotels from Downtown category, 11% star and 5% Resorts. Eleven percent official of sample hotel take the customer feedback through their staff, of which 50% of sample hotels belongs to Downtown category and 25% each Resort and star category. Table 4.2. 19 Action Taken on Feedback of Customers Researcher was interested to probe into how hotels tackle the customers‘ complaints received in the form of feedback. Following table shows different methods used by various hotels to tackle the customers‘ complaint. Type of Hotel Way Downtown Resort Star Other Total Sr. 1 Prompt response 20 2 7 8 37 % 54 5 19 22 100 % 100 100 100 100 100 2 Give assurance 2 0 1 0 3 % 5 0 3 0 8 % 10 0 14 0 8 3 Offer compensation 2 0 0 0 2 % 5 0 0 0 5 % 10 0 0 0 5 4 Other 0 0 0 0 0 % 0 0 0 0 0 % 0 0 0 0 0 Total 20 2 7 8 37 Source: (Primary Data) Table 4.2.19 highlights that all types of sample hotels strongly agree prompt response is most important tool to tackle the customers‘ complaints. Out of which 54% sample hotels to Downtown, 22% other category, 19% star graded and 5% resorts. In addition to this, 8% sample hotels think giving assurance also works. Five percent hotels offer compensation to the customers for their complaint or inconvenience and they belong to Downtown category of hotels.
Table 4.2.20 Informal Relation Informal relation also works out to maintain a good relation with customers. Generally, people visit those places where they are familiar with and at times, they avoid unknown places. Researcher probe into how many hotels keep informal relation with their customers. No doubt, it is not possible with all customers but at least with few customers. Following table shows need to have an informal relation with customers as per type of hotel. Sr. 1 2 3 4
Type of hotel Downtown Resort Star Other Total
Yes 17 2 7 8 34
% 46 5 19 22 92
% 85 100 100 100 92
No 3 0 0 0 3
% 8 0 0 0 8
% 15 0 0 0 8
Total 20 2 7 8 37
Source: (Primary Data) Table 4.2.20 clears that majority of officials of sample hotels feels there areneed to have informal relation with customers where they can easily do their business.Ninetytwo percents of sample hotels in favor of informal relations among these 46%belongs to Downtown, 22% other category, 19% star and 5% Resorts. Only 8% officials ofsample hotels do not feel to have informal relations with customers and they areDowntown category.
Table 4.2.21 Management of Customers‘ Information in Hotel Customers‘ information plays vital role in understanding the customer and offeringpersonalized service to them as well as it is useful to maintaining a good relation. CRMsoftware includes customers‘ information like name, address, sex, age, marital status,mobile number, e-mail address, occupation, type of room, purpose of visit, birth date,marriage date, name of spouse, newspaper, required room equipments, diet, other habits,health, allergies, hobbies, type of music, pillow type, smoking habits and other, etc.
Type of Hotel Sr. information 1
2
3
4
5
6
7
8
9
10
11
15
16
Customers‘ Downtown Resort Star Other Total
Name % % Address % % Sex % % Age % % Marital status % % Mobile % % e-mail % % Occupation % % Type of Room % % Purpose of visit % % Birth date % % Required room equipment % % Diet % % Total
Source: (Primary Data)
17 46 85 17 46 85 3 8 15 11 30 55 6 46 30 15 41 75 5 14 25 11 30 55 13 35 65 16 43 80 1 3 5 4
2 5 100 2 5 100 1 3 50 2 5 100 1 8 50 2 5 100 2 5 100 2 5 100 2 5 100 2 5 100 1 3 50 2
7 19 100 7 19 100 2 5 29 7 19 100 4 31 57 7 19 100 5 14 71 7 19 100 7 19 100 7 19 100 1 3 14 3
6 16 75 6 16 75 2 5 25 5 14 63 2 15 25 5 14 63 1 3 13 6 16 75 6 16 75 6 16 75 0 0 0 0
32 86 86 32 86 86 8 22 22 25 68 68 13 100 35 29 78 78 13 35 35 26 70 70 28 76 76 31 84 84 3 8 8 9
11 20 1 3 5 20
5 100 0 0 0 2
8 43 0 0 0 7
0 0 0 0 0 8
24 24 1 3 3 37
Table 4.2.21 shows that only 86% of sample hotels record the customers data and all are providing lodging facilities and they generally records common things such as customers‘ name, address, mobile, purpose of visit, occupation and type of room etc. Those who record this information they belongs to 46% of sample hotels from Downtown, 19% star, 16% other, and 5% from Resorts. Only 14% of sample hotels do not record the customers‘ information because they only provide Dinning facility. Very few hotels records other information such as room equipment 24%, diet 3%, birthdates 8%, 35% e-mail and these hotels belongs to downtown, star and Resort category. Table 4.2.22 Reasons for Shifting Hotel by Customers Following table shows reasons for shifting the customers as per type of hotel. Sr 1
2
3
4
5
6
7
Type of Hotel Reasons Food ,taste, quality , availability % % Price % % Dissatisfied with service % % Sake of variety % % Just change % % No vacancy % % Don‘ know % % Total Source: (Primary Data)
Downtown Resort Star
Other Total
7
0
1
2
10
19 35 4 11 20
0 0 0 0 0
3 14 2 5 29
5 25 1 3 13
27 27 7 19 19
3
1
2
3
9
8 15 1 3 5 3 8 15 1 3 5 1 3 5 20
3 50 0 0 0 0 0 0 1 3 50 0 0 0 2
5 29 0 0 0 0 0 0 2 5 29 0 0 0 7
8 38 0 0 0 1 3 13 1 3 13 0 0 0 8
24 24 1 3 3 4 11 11 5 14 14 1 3 3 37
Table 4.2.22 reveals that 27% officials of sample hotels percept that a customer shifts due to food, taste and its quality. Among these, 19% sample hotels belongs to
Downtown, 5% to other and 3% to star graded hotels. Twenty-four percents officials of sample hotels think that customer shifts when they are dissatisfied with existing hotel‘s service. Among these 8% of sample hotels each from Downtown and other category of hotels, 5% star and 3% Resorts. Fourteen percent officials of sample hotel think shift is due to no vacancy in their hotel. Among these, 5% star, 3% each Downtown, Resort and Other category of hotels. Five percents officials of sample hotel think that just for change customer shift from one to another and these sample hotels belongs to 75% Downtown and 25% other category. Only 3% officials of sample hotels feel for the sake of variety customer shifts and they belong to Downtown hotel category. Nineteen percent officials of sample hotels feel customer shift is due to price, of this, 57% Downtown, 29 % star, and 14% other category of hotels.
Table 4.2.23 Utilization of Computerized Database by Hotel Officials Following table shows computerized set up hotels send e-mail and use it to communicate new product to the customer Sr. Type of Officials Officials does not Sample hotels Total Hotel communication to communicate to engaged in Sample sample customers sample customers computer based communication eCommunicate eCommunicate mail newproduct mail newproduct 1
2
3
4
Downtown % % Resort % % Star % % Other % % Total %
1 6.25 5 2 12.50 100 3 18.75 42.86 1 6.25 12.50 7 43.75
0 0 0 1 6.25 50 1 6.25 14.29 0 0 0.00 2 28.57
3 18.75 15 0 0 0 1 6.25 14.29 5 31.25 62.50 9 56.25
1 6.25 5 1 6.25 50 2 12.5 28.57 1 6.25 12.50 5 71.43
4 25 20 2 12.5 100 4 25 57.14 6 37.5 75.00 16 50
20 62.5 100 2 6.25 100 7 21.875 100.00 8 25 100.00 37 100
Table 4.2.23 reveals that 86% of total sample hotels record the customers‘ dataamong this 50% of sample hotels use computer to record customers‘ data. Out of this,43.75% of sample hotels send e-mail to the customer among this 18.75% star, 12.50% resort and 6.25% each to Downtown and other category. Only one each of resort and star graded hotel sample i.e. 6.25% communicate new product to the customer.
PART-II 4.3 DATA ANALYSIS OF SAMPLE CUSTOMERS Introduction For measuring overall customer opinion, customer segmentation for hotel industry inSatara district researcher has framed around 31 questions that consists different parametersto collect desired data.The samples were interviewed on site of sample hotels. Table 4.3. 01 Distribution of Samples as Per the SEC Following table shows distribution of samples of customers as per SEC Sr. No.
SEC
1 2 3 4 5 6 7
A1 A2 B1 B2 C D E1 Total
No. Samples 63 42 28 14 1 3 151
of
% 41.72 27.81 18.54 9.27 0.66 1.99 100.00
Source: (Primary Data) Table 4.3.01 depicts distribution of samples as per their socio economic class. Majority ofsamples i.e. 41.72% belongs to A1 socio economic class (SEC), 27.81% belongs to A2socio economic class (SEC), 18.54% belongs to B1 SEC, 9.27% belongs to B2 SEC,1.99% belongs to E1 SEC, and .66% belongs to C SEC.As majority of respondents belong to A1 SEC who visit to the hotel and very few belongsto C SEC. around 88% of sample customers belongs to A1 to B1 SEC.
Table 4.3. 02 Educational Qualification as Per the SEC Following table shows educational qualification as per SEC
Sr.
SEC Education
1
Illiterate 0 0 0 0 0 0 0 %(total) 0 0 0 0 0 0 0 %(SEC) 0 0 0 0 0 0 0 School up to 4 0 0 0 0 0 0 0 % 0 0 0 0 0 0 0 % 0 0 0 0 0 0 0 School upto5-9 0 0 0 0 0 0 0 % 0 0 0 0 0 0 0 % 0 0 0 0 0 0 0 SSC/HSC 0 0 1 4 1 2 8 % 0 0 0.66 2.65 0.66 1.32 5.30 % 0 0 4 29 100 67 5 Some college but not 0 1 2 1 0 0 4 grad % 0.00 0.66 1.32 0.66 0.00 0.00 2.65 % 0 2.38 7.14 7.14 0.00 0.00 2.65 Graduate/PG General 25 32 25 9 0 0 91 % 16.56 21.19 16.56 5.96 0.00 0.00 60.26 39.7 76.2 89.3 64.3 0.0 0.0 60.3 Graduate /PG 38 9 0 0 0 1 48 professionals % 25.17 5.96 0.00 0.00 0.00 0.66 31.79 % 60.32 21.43 0.00 0.00 0.00 33.33 31.79 Total 63 42 28 14 1 3 151
2
3
4
5
6
7
A1
A2
B1
B2
C
D
Total
Source: (Primary Data) Table 4.3.02 shows that majority of respondents are graduate and pg general. The percentage is 60.26%. Out of which 21.19% belongs to A2 SEC, 16.56% each to A1 and B1 SEC and 5.96% belong to B2 SEC. Thirty-one point seven nine percent respondents are graduate and pg professional. Out of which majority of belongs to A1 and A2 SEC i.e. 25.17% and 5.96% respectively. Only 0.66% belongs to D SEC. 5.30% respondents are SSC/HSC. Out of which majority belongs to B2 SEC i.e. 2.65%, 1.32% belongs to D SEC and 0.66% each belongs to B1 and C SEC. Only 2.65% customers are college but note graduate. Out of which 1.32% belongs to B1 SEC and 0.66% each to A2 and B2 SEC.
Almost all the graduate/ pg general and PG professional respondents belong to A1 to B2 SEC. Table 4.3. 03 Gender as Per the SEC Following table shows gender as per SEC Sr. 1 2 3 4 5
SEC A1 A2 B1 B2 C
Male 31 22 18 10 0
6
D 3 Total 84
% 20.5 14.6 11.9 6.6 0.0
% 49.2 52.4 64.3 71.4 0.0
2.0 100.0 55.6 55.6
Female 32.0 20.0 10.0 4.0 1.0 0.0 67.0
% 21.2 13.2 6.6 2.6 0.7
% 50.8 47.6 35.7 28.6 100. 0 0.0 0.0 44.4 44.4
Total 63 42 28 14 1 3 151
Source: (Primary Data) Table 4.3.03 reveals that 55.6% respondents are males. From that, 20.5% belong to A1 SEC, 14.6% A2, 11.9% B1, 6.6%B2 and only 2% to D SEC. Rest i.e. 44.4% are female customers. Of which 21.2% A1 SEC, 13.2% A2, 6.6% B1, 2.6% B2 and only 0.7% belongs to C SEC. Majority of the male and female respondents who visit to the hotel belongs to A1 to B2 SEC. Male and female respondents who visit the hotel equally found in A1 and A2 SEC whereas B1 and B2 SEC male respondents are more as compared to female.
Table 4.3. 04 Distribution of Sample of Customers as Per Monthly Household Income Following table shows monthly household income as per SEC.
SEC Monthly Sr. household A1 No. income 1
2
3
4
5
6
7
8
9
Up to 5000 % % 5001-10000 % % 10001-15000 % % 15001-20000 % % 20001-25000 % % 25001-30000 % % 30001-35000 % % 35001-40000 % % 40000& above % % Total
A2
B1
B2
C
D
Total
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0.00 0 0 0 0 0 0 0 2 1 2 0 0 5 0 1.32 0.66 1.32 0 0 3.31 0.00 4.76 3.57 14.29 0.00 0.00 3.31 0 2 4 4 0 0 10 0 1.32 2.65 2.65 0.00 0.00 6.62 0.00 4.76 14.29 28.57 0.00 0.00 6.62 5 6 5 2 0 1 19 3.31 3.97 3.31 1.32 0.00 0.66 12.58 7.94 14.29 17.86 14.29 0.00 33.33 12.58 3 5 11 0 0 0 19 1.99 3.31 7.28 0.00 0.00 0.00 12.58 4.76 11.90 39.29 0.00 0.00 0.00 12.58 5 10 3 3 0 0 21 3.31 6.62 1.99 1.99 0.00 0.00 13.91 7.94 23.81 10.71 21.43 0.00 0.00 13.91 6 1 1 1 0 0 9 4.0 0.7 0.7 0.7 0.0 0.0 6.0 9.52 2.38 3.57 7.14 0.00 0.00 5.96 5 4 0 0 0 1 10 3.3 2.6 0.0 0.0 0.0 0.7 6.6 7.94 9.52 0.00 0.00 0.00 33.33 6.62 39 12 3 2 1 1 58 25.83 7.95 1.99 1.32 0.66 0.66 38.41 62 29 11 14 100 33 38 63 42 28 14 1 3 151
Source: (Primary Data) Table 4.3.04 reveals that majority of respondents who visit the hotel i.e. 64.49% monthly household income is 25000 and above, and they belongs A1 to B2 SEC. No respondents had their household income below Rs. 5000 per month.
Table 4.3.05 Distribution of Samples of Customer as Per Occupation Following table shows occupation as per SEC. Sr. No. 1
2
3
4
5
SEC Occupation Unskilled workers % % Skilled workers % % Petty traders % % Shop owners % % Business /Industrialist % % None % % 1TO 9 % % 10+ % %
6
7
8
9
10
Self employed profession % % Clerical/ Salesman % % Supervisory level % % Officer executives Junior % % Middle semi % % Total
A1
A2
B1
B2
0 0.00 0.00 0 0.00 0.00 0 0.00 0.00 0 0.00 0.00
0 0.00 0.00 0 0.00 0.00 0 0.00 0.00 7 4.64 16.67
0 0.00 0.00 0 0.00 0.00 0 0.00 0.00 1 0.66 3.57
0 0.00 0.00 3 1.99 21.43 5 3.31 35.71 1 0.66 7.14
25 16.56 39.68 0 0.00 0.00 23 15.23 36.51 2 1.32 3.17
1 0.66 2.38 0 0.00 0.00 1 0.66 2.38 0 0.00 0.00
1 0.66 3.57 0 0.00 0.00 1 0.66 3.57 0 0.00 0.00
33 21.85 52.38 0 0.00 0.00 0 0.00 0.00
13 8.61 30.95 0 0.00 0.00 1 0.66 2.38
1 0.66 1.59 4 2.65 6.35 63
14 9.27 33.33 6 3.97 14.29 42
C
D
Total
0 0.00 0.00 0 0.00 0.00 0 0.00 0.00 0 0.00 0.00
2 1.32 66.67 1 0.66 33.33 0 0.00 0.00 0 0.00 0.00
2 1.32 1.32 4 2.65 2.65 5 3.31 3.31 9 5.96 5.96
0 0.00 0.00 0 0.00 0.00
0 0.00 0.00 0 0.00 0.00
0 0.00 0.00 0 0.00 0.00
0.00 0.00 0 0.00 0.00
0.00 0.00 0 0.00 0.00
0.00 0.00 0 0.00 0.00
27 17.88 17.88 0 0.00 0.00 25 16.56 16.56 2 1.32 1.32
0 0.00 0.00 18 11.92 64.29 4 2.65 14.29
1 0.66 7.14 1 0.66 7.14 1 0.66 7.14
0 0.00 0.00 0 0.00 0.00 0 0.00 0.00
0 0.00 0.00 0 0.00 0.00 0 0.00 0.00
47 31.13 31.13 19 12.58 12.58 6 3.97 3.97
0 0.00 0.00 4 2.65 14.29 28
1 0.66 7.14 1 0.66 7.14 14
0 0.00 0.00 1 0.66 100.00 1
0 0.00 0.00 0 0.00 0.00 3
16 10.60 10.60 16 10.60 10.60 151
Source: (Primary Data) Table 4.3.05 shows majority of the respondents who visit hotels are self-employed professionals. This is 31.13%, out of which, 21.85% belong to A1 SEC, 8.61% A 2,
and only 0.66% belongs to B2 SEC. Next 17.88% of respondents who visit hotels are Business class, of which most i.e. 16.56% belong to A1 SEC. Fallowed by respondents‘ clerical/salesmen who are 12.58%. Except one who is in B2 SEC, all other belong to B1 SEC. Officer executive junior are 10.6% of which most are in A2 SEC. Middle semi are also 10.6% who are in A2 SEC maximum, and are equally distributed in A1 and B1 SEC. Shop owners are 5.96%, followed by petty traders, skilled and unskilled workers. Table 4.3.06 Distribution of Sample as Per Family Members Following table shows members in family as per SEC. SEC Total Sr. family A1 A2 B1 B2 members 1
2 1 % 0.66 % 1.59 2 3 12 % 7.95 % 19.05 3 4 25 % 16.56 % 39.68 4 5 11 % 7.28 % 17.46 5 6 9 % 5.96 % 14.29 6 7 3 % 1.99 % 4.76 7 8 1 % 0.66 % 1.59 8 9 0 % 0.00 % 0.00 9 10 1 % 0.66 % 1.59 10 11 0 % 0.00 % 0.00 Total 63 Source: (Primary Data)
1 0.66 2.38 8 5.30 19.05 12 7.95 28.57 12 7.95 28.57 3 1.99 7.14 3 1.99 7.14 1 0.66 2.38 0 0.00 0.00 2 1.32 4.76 0 0.00 0.00 42
0 0.00 0.00 7 4.64 25.00 11 7.28 39.29 4 2.65 14.29 4 2.65 14.29 2 1.32 7.14 0 0.00 0.00 0 0.00 0.00 0 0.00 0.00 0 0.00 0.00 28
0 0.00 0.00 1 0.66 7.14 6 3.97 42.86 5 3.31 35.71 0 0.00 0.00 0 0.00 0.00 0 0.00 0.00 1 0.66 7.14 1 0.66 7.14 0 0.00 0.00 14
C
D
Total
0 0.00 0.00 0 0.00 0.00 0 0.00 0.00 0 0.00 0.00 0 0.00 0.00 0 0.00 0.00 0 0.00 0.00 0 0.00 0.00 0 0.00 0.00 1 0.66 100.00 1
0 0.00 0.00 1 0.66 33.33 0 0.00 0.00 2 1.32 66.67 0 0.00 0.00 0 0.00 0.00 0 0.00 0.00 0 0.00 0.00 0 0.00 0.00 0 0.00 0.00 3
2 1.32 1.32 29 19.21 19.21 54 35.76 35.76 34 22.52 22.52 16 10.60 10.60 8 5.30 5.30 2 1.32 1.32 1 0.66 0.66 4 2.65 2.65 1 0.66 0.66 151
Table 4.3.06 shows that majority of respondents who visited hotels have limited family with two to five members. The percentage is 78.81%, out of which majority belongs to A1 to B2 SEC. 21.19% of the respondents who visited to the hotel have more family members i.e. 6-11 and they mostly belong to A1 to B1 SEC. In nutshell, nowadays-maximum people live in nuclear families and they are the familieswho visit hotel frequently. Table 4.3.07 Sample Customer‘s Frequency of Visit to Hotel Following table shows monthly visit in hotel as per SEC.
SEC Frequency to visit the hotel A1 Sr. 1 Once % % 2 Twice % % 3 Thrice % % 4 More than thrice % % Total
22 14.57 34.92 17 11.26 26.98 6 3.97 9.52 18 11.92 28.57 63
A2
B1
B2
C
D
Total
15 9.93 35.71 15 9.93 35.71 5 3.31 11.90 7 4.64 16.67 42
10 6.62 35.71 7 4.64 25.00 5 3.31 17.86 6 3.97 21.43 28
6 3.97 42.86 2 1.32 14.29 3 1.99 21.43 3 1.99 21.43 14
0 0.00 0.00 1 0.66 100 0 0.00 0.00 0 0.00 0.00 1
2 1.32 66.67 0 0.00 0.00 0 0.00 0.00 1 0.66 33.33 3
55 36.42 36.42 42 27.81 27.81 19 12.58 12.58 35 23.18 23.18 151
Source: (Primary Data) Table 4.3.07 seen that majority of respondents visit hotel only once in a month. Even in every SEC, it observed that majority respondents who visit the hotel, family‘s visit only once in the month, except lone members of C SEC visits twice in a month. Twice a month is a frequency of 27.81% of the families and is the second choice across A1 to B1 SEC. Though 23.18 % respondents‘ families visit more than thrice in a month to hotel, A1 SEC has 11.92 % of it.
Table 4.3.08 Sample Customers Monthly Spending for Dinning in Hotel Following table shows monthly spending for Dinning in hotel as per SEC.
SEC Monthly spending A1 Sr. 1 Below 500 % % 2 500-1000 % % 3 1000-1500 % % 4 1500-2000 % % 5 2000 & above % % Total
26 17.22 41.27 20 13.25 31.75 7 4.64 11.11 3 1.99 4.76 7 4.64 11.11 63
A2
B1
B2
C
D
Total
16 10.60 38.10 17 11.26 40.48 5 3.31 11.90 2 1.32 4.76 2 1.32 4.76 42
15 9.93 53.57 10 6.62 35.71 2 1.32 7.14 0 0.00 0.00 1 0.66 3.57 28
9 5.96 64.29 3 1.99 21.43 0 0.00 0.00 0 0.00 0.00 2 1.32 14.29 14
0 0.00 0.00 0 0.00 0.00 0 0.00 0.00 0 0.00 0.00 1 0.66 100 1
2 1.32 66.67 1 0.66 33.33 0 0.00 0.00 0 0.00 0.00 0 0.00 0.00 3
68 45.03 45.03 51 33.77 33.77 14 9.27 9.27 5 3.31 3.31 13 8.61 8.61 151
Source: (Primary Data) Table 4.3.08 reveals that majority i.e. 45.03% respondents who visit the hotel, monthly spending for dinning in hotel is below Rs. 500/-. Among these 17.22% belong to A1 SEC, 10.60% A2 SEC, 9.93% B1 SEC, 5.96% B2 SEC and 1.32% belongs to D SEC. Next 33.77% of respondents who visit the hotel, monthly spending, for dinning in the hotel are 500-1000. They belongs to 13.25% A1 SEC, 11.26% A2 SEC, 6.62%B1 SEC, 1.99%B2 SEC and 0.66% belongs to D SEC. Followed by 9.27% of respondents who visit the hotel ‘ monthly spending for Dinning in hotels is 1000-1500, among these 4.64% belongs to A1 SEC, 3.31% A2 SEC and 1.32 B1 SEC. Further 8.61% of respondents‘ monthly spending for Dinning in hotel is 2000& above, among these 4.64% A1 SEC, 1.32% each to A2 and B2 SEC and 0.66% each to B1 and C SEC. Very few i.e. 3.31% of respondents who visit the hotel monthly spending for Dinning in hotel is 1500-2000. Among these Majorities of customers, belong to A1 SEC i.e. 1.99% and 1.32% to A2 SEC.
Table 4.3.09 Monthly Spending for Lodging in Hotel Following table shows monthly spending for Lodging in hotel as per SEC. SEC Sr Monthly spending A1 1
2
3
4
5
Below 500 % % 500-1000 % % 1000-1500 % % 1500-2000 % % 2000 & above % % Total
32 21.19 50.79 9 5.96 14.29 9 5.96 14.29 3 1.99 4.76 10 6.62 15.87 63
A2
B1
B2
C
D
Total
25 16.56 59.52 7 4.64 16.67 6 3.97 14.29 1 0.66 2.38 3 1.99 7.14 42
26 17.22 92.86 1 0.66 3.57 0 0.00 0.00 0 0.00 0.00 1 0.66 3.57 28
9 5.96 64.29 2 1.32 14.29 1 0.66 7.14 0 0.00 0.00 2 1.32 14.29 14
0 0.00 0.00 0 0.00 0.00 0 0.00 0.00 0 0.00 0.00 1 0.66 100 1
2 1.32 66.67 1 0.66 33.33 0 0.00 0.00 0 0.00 0.00 0 0.00 0.00 3
94 62.25 62.25 20 13.25 13.25 16 10.60 10.60 4 2.65 2.65 17 11.26 11.26 151
Source: (Primary Data) Table 4.3.09 shows that 62.25% i.e. majority of respondents‘, monthly spending for lodging is below 500. Of this 21.19% belong to A1 SEC, 16.56% A2 SEC, 17.22% B1, 5.96% B2 SEC and 1.32% D SEC. Next, 13.25% of respondents spending 5001000, out of these 5.96% A1 SEC, 4.64% A2,1.32% B2 and 0.66% each to B1 and D SEC. Followed by 11.26% respondents‘ spending is 2000 & above, of this 6.62 %belong to A1 SEC, 1.99% A2,1.32% B2 and 0.66 each to B1 and C SEC. 10.60% of respondents‘ spending is 1000-1500. Among these 5.96% belong to A1 SEC, 3.97% A2 and 0.66% belongs to B2 SEC. Only 2.65% respondents who visit the hotel, monthly spending for lodging is in between 1500-2000. Out of these, 1.99% belongs to A1 and 0.66% belongs to A2 SEC.
Table 4.3.10 Monthly Spending for Permit Room in Hotel Following table shows monthly spending for permit room in hotel as per SEC.
Sr. 1
2
3
4
5
SEC Monthly spending A1
A2
B1
B2
C
D
Total
Below 500 % % 500-1000 % % 1000-1500 % % 1500-2000 % % 2000 & above % % Total Total sample
3 1.99 21.43 3 1.99 21.43 4 2.65 28.57 1 0.66 7.14 3 1.99 21.43 14 42
4 2.65 50.00 1 0.66 12.50 2 1.32 25.00 0 0.00 0.00 1 0.66 12.50 8 28
5 3.31 71.43 0 0.00 0.00 0 0.00 0.00 0 0.00 0.00 2 1.32 28.57 7 14
0 0.00 0.00 0 0.00 0.00 0 0.00 0.00 0 0.00 0.00 1 0.66 100 1 1
1 0.66 100 0 0.00 0.00 0 0.00 0.00 0 0.00 0.00 0 0.00 0.00 1 3
18 11.92 34.62 6 3.97 11.54 12 7.95 23.08 2 1.32 3.85 14 9.27 26.92 52 151
5 3.31 23.81 2 1.32 9.52 6 3.97 28.57 1 0.66 4.76 7 4.64 33.33 21 63
Source: (Primary Data) Table 4.3.10 depicts, majority of respondents who visit the hotels, monthly spending in hotel for other than dinning and lodging is below 500. The respondents who spends below 500 is 34.62%. Out of this 3.31% each to A1 and B2 SEC, 2.65% B1, 1.99% A2 and 0.66% D SEC. Next, 26.92% of respondent spend 2000 & above, of this 4.64% belong to A1 SEC, 1.99%A2, 1.32% B2, and 0.66% each to B1 and C SEC. Further, 23.08% of respondents‘ spending is 1000-1500 and they belong to 3.97% A1 SEC, 2.65% A2 and 1.32% B1 SEC. Followed by, 11.54% of respondent‘s spending is 500-1000 among these 1.32% belong to A2 SEC, 1.99% A1 and 0.66% B1 SEC.
Table 4.3.11 Price Afforded for Services Following table shows price afforded for services in hotel as per SEC. Sr.
SEC
1
A1 Rank A2 Rank B1 Rank B2 Rank C Rank D Rank Total Rank
2 3 4 5 6
High (wtd. avg.) 69 3 59 3 32 3 18 3 1 3 3 3 182 3
Medium avg.) 177 1 113 1 77 1 37 1 2 2 8 1 414 1
(wtd.
Low (wtd. avg.) 132 2 80 2 59 2 29 2 3 1 7 2 310 2
Source: (Primary Data) Table 4.3.11 clears that respondent‘s preferences are as follows, medium prices are preferred maximum followed by low prices and fewer apt for higher prices for hotel services. All SEC have similar preferences except C SEC whose preferences are low, medium, and high prices. Table 4.3.12 Preferences of Enjoyment in Hotel Following table shows preferences of enjoyment in hotel as per SEC. Food ( Ambience Prompt Price Sr. weighted (weighted Service (weighted SEC No. Average) average) (weighted average) average) 1 2 3 4 5 6
A1 Rank A2 Rank B1 Rank B2 Rank C Rank D Rank Total Rank
302 1 194 1 137 1 62 1 4 2 15 1 714 1
199 3 139 2 79 4 44 2 5 1 9 3 475 3
217 2 134 3 85 2 42 3 3 3 10 2 491 2
Source: (Primary Data)
144 4 106 4 80 3 33 4 2 4 8 4 373 4
Others (weighted average) 71 5 38 5 31 5 21 5 1 5 3 1 165 5
Table 4.3.12 clear that respondents who visit the hotel, preferences are as follows, food followed by prompt service, ambience, price, and then other things. Across all SEC gives first preference to food, A1, B1 D SEC gives second preference to prompt service but A2; B2 C SEC gives third preference for this. Except B1 SEC, all SEC have given the fourth preference to price. B1 SEC gave third preference to price. Ambience has the second preference from A2 and B2 SEC and third from A1 and D SEC. Majority of the SEC given the last preference for other things in the hotel except C SEC. Table 4.3.13 Preferences for Food in Hotel Following table shows preferences for food in hotel as per SEC.
Sr.
SEC
1
A1 Rank A2 Rank B1 Rank B2 Rank C Rank D Rank Total Rank
2 3 4 5 6
Taste (weighted average) 264 1 189 1 123 1 64 1 5 1 15 1 660 1
Variety (weighte d average) 186 3 119 3 85 3 32 3 4 2 11 2 437 3
Forms Presentation (weighte (weighted d Average) average) 95 142 5 4 65 97 5 4 48 52 5 4 22 30 5 4 3 2 3 4 8 4 3 5 241 327 5 4
Fresh (weighted average) 218 2 149 2 101 2 54 2 1 5 7 4 530 2
Source: (Primary Data) Table 4.3.13 clear that respondents‘ preferences for the food are as follows, taste is the most important factor across all SEC. It is followed by, fresh, variety, presentation, and forms. However, individual SEC has different opinion, Variety in food get 2rank from D and C SEC third rank from A1 to B2 SEC. Next, presentation of food gets fourth rank from A1 to C SEC and fifth from D SEC. Further, forms of food gets fifth rank from A1 to B2 SEC and third from C and D SEC. Researcher has made available option other, which means other than the four options mentioned. In other option, fresh
(fresh food), is the choice of majority of the respondents. The Fresh in food gets the second rank almost across all SEC. Table 4.3.14 Preferences for Ambience in Hotel Following table shows preferences for ambience in hotel as per SEC.
Light weighted average Sr. 1
SEC A1 273 Rank 1 2 A2 156 Rank 2 3 B1 125 Rank 1 4 B2 56 Rank 2 5 C 5 Rank 1 6 D 13 Rank 2 Total 628 Rank 1 Source: (Primary Data)
Ventilation weighted average
beautification Sound weighted weighted average average
264 2 173 1 113 2 58 1 4 2 14 1 626 2
192 3 127 3 84 3 50 3 3 3 9 3 465 3
123 4 100 4 62 4 28 4 2 4 5 4 320 4
Colour combinati on weighted average 92 5 67 5 38 5 18 5 1 5 4 5 220 5
Table 4.3.14 seen that respondents‘ preferences for ambience in hotel is as follows light is the first preference, second to ventilation, third to beautification, 4to sound and fifth to colour combination. Light got the first rank from A1, B1, and C SEC and second rank from A2, B2, and D SEC. Ventilation got first rank from A2, B2, and D SEC and second rank from A1, B1, and C SEC. Across all SEC preferred third rank for beautification, 4for sound and 5for colour combination. Respondents in all SEC give first priority to light and ventilation and less priority tobeautification, sound and colour combination to the ambience.
Table 4.3.15 Preference for Prompt Service in Hotel Following table shows preferences for prompt service in hotel as per SEC. Sr. 1
SEC
Time (Wtg. Avg.)
A1 Rank 2 A2 Rank 3 B1 Rank 4 B2 Rank 5 C Rank 6 D Rank Total Rank Source: (Primary Data)
110 1 76 1 48 1 27 1 2 1 5 1 268 1
Process Avg.)
(Wtg. 79 2 52 2 36 2 15 2 1 2 4 2 187 2
Table 4.3.15 highlights that in prompt service all respondent in all SEC feels time is the more important parameter than process Table 4.3.16 Source to Know About Hotel Following table shows source to know about hotel as per SEC. SEC Source to A1 A2 B1 B2 C Sr. know about hotel 1 ADVT 4 8 3 2 0 % 2.61 5.23 1.96 1.31 0.00 % 6.35 19.05 10.71 14.29 0.00 Friends and 2 48 38 24 11 0 relatives % 31.37 24.84 15.69 7.19 0.00 % 76.19 90.48 85.71 78.57 0.00 3 Travel agency 0 0 0 1 0 % 0.00 0.00 0.00 0.65 0.00 % 0.00 0.00 0.00 7.14 0.00 4 Tour operator 0 0 0 1 0 % 0.00 0.00 0.00 0.65 0.00 % 0.00 0.00 0.00 7.14 0.00 5 Other 6 1 1 1 1 % 3.92 0.65 0.65 0.65 0.65 % 9.52 2.38 3.57 7.14 100 Total 58 47 28 16 1 Total Samples 63 42 28 14 1 Source: (Primary Data)
D
Total
0 17 0.00 11.11 0.00 11.26 3
124
1.96 100 0 0.00 0.00 0 0.00 0.00 0 0.00 0.00 3 3
81.05 82.12 1 0.65 0.66 1 0.65 0.66 10 6.54 6.62 153 151
Table 4.3.16 reveals that majority of the respondents i.e. 81.05%; know about the hotel through friends and relatives. Of this, 31.37% belongs to A1 SEC, 24.84% A2 SEC, 15.69% B1, 7.19% B2 and 1.96% D SEC. Only 11.11% of respondent know through advertisement, of this 5.23% belong to A2, 2.61% to A1, 1.96% to B1 and 1.31% to B2 SEC. Further, 6.54% of the respondents know through other source; of this, 3.92% belong to A1, 0.65% each to A2 to C SEC. Only 0.65% of the respondents know through travel agency and tour operator and they belong to B2 SEC. Most of the respondents who visit the hotel know about hotel mainly through Friends and relatives. That is the trusted source for the customer. It means word mouth propaganda is best promotion tool for the hotel industry. People believe more in friends and relatives experience rather than ad and other sources like tour operator or travel agency. Table 4.3.17 Communication Received from Hotel Officials to Customer. Following
table Sr. 1 2 3 4 5 6
SEC A1 A2 B1 B2 C D Total
shows Yes 2 3 1 1 0 0 7
communication
by
% 1.32 1.99 0.66 0.66 0.00 0.00 4.64
% 40.40 25.83 17.88 8.61 0.66 1.99 95.36
% 3.17 7.14 3.57 7.14 0.00 0.00 4.64
No 61 39 27 13 1 3 144
hotel % 96.83 92.86 96.43 92.86 100 100 95.36
as
per
SEC.
Total 63 42 28 14 1 3 151
Source: (Primary Data) Table 4.3.17 shows that most of the respondents are not communicated by hotel. The percentage is 95.36%, of this 40.40% A1 SEC, 25.83% A2 SEC, 17.88%B1, 8.61% B2, 1.99% D and 0.66% C SEC. Few respondents 4.64% are communicated by hotels, of this 1.32% A1, 1.99% A2 and 0.66% each to B1 and B2 SEC.
Table 4.3.18 Sample Customer Like to Receive Communication from Hotel Officials Following table shows according to the opinion about would like to communication by hotel as per SEC. Sr. SEC Yes % % No % % Total 1 A1 47 31.1 74.60 16 10.6 25.40 63 2 A2 33 21.9 78.57 9 6.0 21.43 42 3 B1 17 11.3 60.71 11 7.3 39.29 28 4 B2 12 7.9 85.71 2 1.3 14.29 14 5 C 1 0.7 100 0 0.0 0.00 1 6 D 2 1.3 66.67 1 0.7 33.33 3 Total 112 74.2 74.17 39 25.8 25.83 151 Source: (Primary Data) Table 4.3.18 seen that majority of respondents would like to be communicated by hotels. The percentage is 74.17%, of this 31.1%A1 SEC, 21.9% A2, 11.3% B1, 7.9%B2, 1.3% D, and 0.7% belongs to C SEC. The respondents who do not want to communicate by hotels are 25.83%, of which majority belongs to A1 SEC i.e. 25.40%. Table 4.3.19 Preferred Communication Media by Sample Customers Following table shows preferred communication media SEC. SEC Media preferred for A1 A2 B1 B2 Sr. communication 1 SMS 13 12 2 3 % 10.57 9.76 1.63 2.44 % 20.63 28.57 7.14 21.43 2 E-mail 6 3 1 1 % 4.88 2.44 0.81 0.81 % 9.52 7.14 3.57 7.14 3 Letter 0 0 1 0 % 0.00 0.00 0.81 0.00 % 0.00 0.00 3.57 0.00 4 Telephone 33 22 14 8 % 26.83 17.89 11.38 6.50 % 52.38 52.38 50.00 57.14 5 Fax 0 0 0 0 % 0.00 0.00 0.00 0.00 % 0.00 0.00 0.00 0.00 Total 52 37 18 12 Total Sample 63 42 28 14 Source: (Primary Data)
by sample customers as per
C
D
Total
1 0.81 100.00 0 0.00 0.00 0 0.00 0.00 0 0.00 0.00 0 0.00 0.00 1 1
1 0.81 33.33 0 0.00 0.00 2 1.63 66.67 0 0.00 0.00 0 0.00 0.00 3 3
32 26.02 21.19 11 8.94 7.28 3 2.44 1.99 77 62.60 50.99 0 0.00 0.00 123 151
Table 4.3.19 reveals, that majority of the respondents preferred telephone as a media of a communication with hotel. The percentage is 62.60%, of this 26.83% A1 SEC, 17.89% A2, 11.38% B1 and 6.50% B2 SEC. Next SMS as a media 26.02% preferred, 8.94% e-mail and 2.44% letter. No one wanted to prefer fax as a media for communication.
Table 4.3.20 Customers Expects Benefits for Repeated Visit Following table shows expectation of benefits for repeated visit from hotel as per SEC. Sr. 1 2 3 4 5 6
SEC A1 A2 B1 B2 C D Total
Yes 59 38 27 11 1 3 139
% 39.1 25.2 17.9 7.28 0.66 1.99 92.1
% 93.65 90.48 96.43 78.57 100 100 92.05
No 4 4 1 3 0 0 12
% 2.65 2.65 0.66 1.99 0 0 7.95
% 6.35 9.52 3.57 21.4 0 0 7.95
Total 63 42 28 14 1 3 151
Source: (Primary Data) Table 4.3.20 clearly tells us that almost all the respondents expect benefits for their repeated visit. The percentage is 92.05%, of this 39.01% belong to A1 SEC, 25.02% A2, 17.9% B1, 7.28% B2, 1.99%D and 0.66% belong to C SEC. Very few do not expect benefits from hotels, the percentage is 7.95%, of this majority belong to A1 and A2 SEC.
Table 4.3.21 Occasions to Celebrate in Hotel Following table shows occasions to celebrate in hotel as per SEC. SEC Celebration occasions Sr.
1
2
Birthday % % Anniversary % %
3
4
5
Achievements % % Sp. Occasions % % Other % % Total Samples
A1
A2
B1
B2
C
D
Total
49 32.45 77.8 42 27.81
37 24.5 88.1 36 23.84
23 15.23 82.1 22 14.57
11 7.28 78.6 8 5.30
2 1.32 66.7 1 0.66
122 80.79 80.8 110 72.85
66.7 25 16.56 39.7 24 15.89 38.1 12 7.947 19.0 63
85.7 14 9.272 33.3 15 9.934 35.7 11 7.285 26.2 42
78.6 10 6.62 35.7 8 5.30 28.6 11.00 7.28 39.3 28
57.1 5 3.31 35.7 6 3.97 42.9 1.00 0.66 7.1 14
0 0.00 0.0 1 0.66 100. 0 0 0.00 0.0 0 0.00 0.0 0.00 0.00 0.0 1
33.3 1 0.66 33.3 2 1.32 66.7 0.00 0.00 0.0 3
72.8 55 36.42 36.4 55 36.42 36.4 35.00 23.18 23.2 151
Source: (Primary Data) Table 4.3.21 shows that respondents visit the hotel to celebrate various occasions such as birthday, marriage anniversary, achievements in their life, special occasion in their family and other things. Most of the respondent i.e. 80.79% would like to celebrate their birthday in hotels. The percentage is 32.45% of this the major class is A1 SEC. Next, 72.85% of respondent like to celebrate their anniversary in the hotel, the A1 SEC apt maximum. Further, 36.42% of respondents want to celebrate their achievements in hotel, the A1 SEC leads in their celebrations. Followed by 36.42% of respondents celebrates special occasions in hotel, the major class is A1 SEC. The rest i.e. 23.18% for other celebration, and the leading class is A1 SEC.
Table 4.3.22 Sample Customer Celebrates Birthday in Hotel. Following
table
shows
SEC Types Sr. hotel 1
2
3
4
5
Resort % % Motel % % Star % % Restaurant % % Other % % Total Total samples
of
Birthday
celebration
in
hotel
as
per
A1
A2
B1
B2
C
D
Total
5 4.10 7.9 1 0.82 1.6 9 7.38 14.3 30 24.59 47.6 4 3.28 6.3 49
7 5.74 16.7 1 0.82 2.4 11 9.02 26.2 18 14.75 42.9 0 0.00 0.0 37
3 2.46 10.7 2 1.64 7.1 1 0.82 3.6 16 13.11 57.1 1 0.82 3.6 23
5 4.10 35.7 2 1.64 14.3 0 0.00 0.0 3 2.46 21.4 1 0.82 7.1 11
0 0.0 0.0 0 0.0 0.0 0 0.0 0.0 0 0.0 0.0 0 0.0 0.0 0
0 0.00 0.0 0 0.00 0.0 1 0.82 33.3 1 0.82 33.3 0 0.00 0.0 2
20 16.39 13.2 6 4.92 4.0 22 18.03 14.6 68 55.74 45.0 6 4.92 4.0 122
63
42
28
14
1
3
151
SEC.
Source: (Primary Data) Table 4.3.22 clear that majority respondents of SEC i.e. 55.74% preferred restaurants to celebrate their birthdays. The alternatives of respondents A1 to B2 SEC are Resorts; star graded, and, Motels.
Table 4.3.23 Sample Customer Celebrates Anniversary at Hotel. Following table shows customer celebrates anniversary in hotel as per SEC.
SEC Sr.
Types Hotel
1
Resort % % Motel % % Star %
2
3
of A1
% 4
5
Restaurant % % Other % % Total Total samples
5 4.55 7.94 2 1.82 3.17 26 23.64
A2
B1
B2
11 10.00 26.19 1 0.91 2.38 15 13.64
3 2.73 10.71 0 0.00 0.00 8 7.27
2 1.82 14.29 0 0.00 0.00 0 0.00
C
0 0.00 0.00 0 0.00 0.00 1 0.91 100. 41.27 35.71 28.57 0.00 00 7 9 10 3 0 6.36 8.18 9.09 2.73 0.00 11.11 21.43 35.71 21.43 0.00 2 0 1 3 0 1.82 0.00 0.91 2.73 0.00 3.17 0.00 3.57 21.43 0.00 42 36 22 8 1 63 42 28 14 1
D
Total
0 0.00 0.00 0 0.00 0.00 1 0.91
21 19.09 13.91 3 2.73 1.99 51 46.36
33.33
33.77
0 0.00 0.00 0 0.00 0.00 1 3
29 26.36 19.21 6 5.45 3.97 110 151
Source: (Primary Data) Table 4.3.23 reveals that most i.e. 46.36% respondents prefer star graded hotels for their anniversary celebrations. Of this, 23.64% A1, 13.64% A2, 7.27% B1. 0.91% each to C and D SEC. while none of B2. A sole respondent of C and D prefer star graded hotels, while many of B1. None other than A1, A2 prefers Motel. Restaurants are the main preferences of B1 but they are alternatives of A1 and B2. A2 SEC alternatives are Resorts but they are one who prefers maximum.
Table 4.3.24 Sample Celebrates Achievements in Hotel. Following table shows sample celebrates achievements in hotel as per SEC.
Sr.
1
2
3
4
5
SEC Types Hotel Resort % % Motel % % Star % % Restaurant % % Other % % Total Total Samples
of A1
A2
B1
B2
C
D
Total
6 10.91 9.52 1 1.82 1.59 9 16.36 14.29 6 10.91 9.52 3 5.45 4.76 25
7 12.73 16.67 0 0.00 0.00 3 5.45 7.14 1 1.82 2.38 3 5.45 7.14 14
2 3.64 7.14 0 0.00 0.00 3 5.45 10.71 4 7.27 14.29 1 1.82 3.57 10
1 1.82 7.14 2 3.64 14.29 1 1.82 7.14 0 0.00 0.00 1 1.82 7.14 5
0 0.00 0.00 0 0.00 0.00 0 0.00 0.00 0 0.00 0.00 0 0.00 0.00 0
0 0.00 0.00 0 0.00 0.00 1 1.82 33.33 0 0.00 0.00 0 0.00 0.00 1
16 29.09 10.60 3 5.45 1.99 17 30.91 11.26 11 20.00 7.28 8 14.55 5.30 55
63
42
28
14
1
3
151
Source: (Primary Data) Table 4.3.24 seen that most of the respondents equally prefer star graded hotels and resorts for celebration of their achievements. Most i.e. 30.91% of respondents prefer star graded hotel. Out of this, 16.36% A1, 5.45% each to A2 and B1 and 1.82% each to B2 and D SEC. Though A1, A2 SEC equally prefer other type of hotel sole respondent of B1, B2 has similar apt.
Table 4.3.25 Sample Celebrates Special Occasion in Hotel. Following table shows sample celebrates Special occasion in hotel as per SEC.
SEC Sr. 1
2
3
4
5
Types of Hotel Resort % % Motel % % Star % % Restaurant % % Other % % Total Total Samples
A1
A2
B1
B2
C
D
Total
4 7.27 6.35 1 1.82 1.59 9 16.36 14.29 8 14.55 12.70 2 3.57 3.17 24 63
2 3.64 4.76 0 0.00 0.00 5 9.09 11.90 8 14.55 19.05 0 0.00 0.00 15 42
4 7.27 14.29 1 1.82 3.57 1 1.82 3.57 2 3.64 7.14 0 0.00 0.00 8 28
0 0.00 0.00 1 1.82 7.14 1 1.82 7.14 3 5.45 21.43 1 1.82 7.14 6 14
0 0.0 0.0 0 0.0 0.0 0 0.0 0.0 0 0.0 0.0 0 0.0 0.0 0 1
1 1.82 33.33 0 0.00 0.00 0 0.00 0.00 1 1.82 33.33 0 0.00 0.00 2 3
11 20.00 7.28 4 7.27 2.65 16 29.09 10.60 22 40.00 14.57 3 5.45 1.99 55 151
Source: (Primary Data) Table 4.3.25 shows that majority of respondent i.e. 40% prefer restaurant for their special occasions celebration, out of this 14.55% each to A1 and A2, 5.45% B2, 3.64% B1 and 1.82% D SEC. Generally, very few respondents i.e. 5.45% prefer other than the specified hotels between these A1 SEC and B2 SEC 3.57% and 1.82% respectively.
Table 4.3.26 Sample Celebrates Other Occasions in Hotel. Following table shows sample celebrates other occasion‘s celebration in hotel as per SEC.
SEC Sr.
Types of Hotel
A1
A2
B1
B2
C
D
Total
1
Resort % % Motel % % Star % % Restaurant % % Other % % Total
0 0 0 0 0 0 4 2.65 33.33 8 5.30 66.67 0 0.00 0 12
3 1.99 27.27 0 0.00 0.00 0 0.00 0.00 7 4.64 63.64 1 0.66 9.09 11
0 0.00 0 0 0.00 0 0 0.00 0 10 6.62 90.91 1 0.66 9.09 11
0 0.0 0 0 0.0 0 0 0.0 0 0 0.0 0 1 0.66 100 1
0 0.0 0 0 0.0 0 0 0.0 0 0 0.0 0 0 0.0 0 0
0 0.0 0 0 0.0 0 0 0.0 0 0 0.0 0 0 0.0 0 0
3 1.99 8.57 0 0.00 0.00 4 2.65 11.43 25 16.56 71.43 3 1.99 8.57 35
2
3
4
5
Source: (Primary Data) Table 4.3.26 revels that other than birthday, anniversary, achievements, and special occasion. Respondents celebrate their other occasions such a get-together, family functions, etc For these celebrations generally majority respondents of all SEC except B2, C and D SEC preferred restaurant i.e. small budget hotel.
Table 4.3.27 Registration of Complaint or Suggestion Following table shows registration of complaint or suggestions to the hotel management as per SEC. Sr. 1 2 3 4 5 6
SEC A1 A2 B1 B2 C D Total
Yes 36 19 16 8 0 2 81
% 23.84 12.58 10.6 5.30 0 1.32 53.64
% 57.14 45.24 57.14 57.14 0.00 66.67 53.64
No 27 23 12 6 1 1 70
% 17.9 15.2 7.95 3.97 0.66 0.66 46.4
% 42.86 54.76 42.86 42.86 100.00 33.33 46.36
Total 63 42 28 14 1 3 151
Source: (Primary Data) Table 4.3.27 shows that 53.64% of respondents who visit the hotel register their complaints to the hotel management. Out of these 23.84% belongs to A1 SEC, 12.58%A2 SEC, 10.6% B1, 5.30% B2 SEC and very few i.e. 1.32% belongs to D. However, 46.4% respondents do not like to register their complaint among these entire respondents in C SEC do not like to register the complaint to the hotel management.
Table 4.3.28 Response to Complaint Following table shows opinion about response to the complaint from hotel management as per SEC.
Total
Response Sr. 1 2 3 4 5 6
SEC A1 A2 B1 B2 C D Total
Yes
%
%
No
%
%
31 19 15 8 0 1 74
38.27 23.46 18.52 9.88 0 1.23 91.36
49.21 45.24 53.57 57.14 0.00 33.33 49.01
5 0 1 0 0 1 7
6.17 0 1.23 0 0 1.23 8.64
7.94 0.00 3.57 0.00 0.00 33.33 4.64
36 19 16 8 0 2 81
Total Samples 63 42 28 14 1 3 151
Source: (Primary Data) Table 4.3.28 clear that majority of respondents who register their complaint they get prompt response from the hotel. The percentage is very high i.e. 91.36%, out of these
38.27% A1, 23.46% A2 SEC, 18.52% B1, 9.88% B2, and 1.23% belongs to D SEC. Only 8.64% respondents do not get response for their complaint, of this 6.17% A1, 1.23% each to B1 and D SEC. Table 4.3.29 Customer‘s Expectations on Complaints Following table shows expectation to their complaint from hotel management as per SEC. SEC Sr.
1
2
3
4
5
Types of Hotel Prompt Action % % Give Excuses % % Send E-mail % % Send Letter % % SMS % % Total
A1
A2
B1
B2
C
D
Total
59
41
28
13
1
2
144
39.07 93.65 1 0.66 1.59 1 0.66 1.59 2 1.32 3.17 2 1.32 3.17 63
27.15 97.62 0 0.00 0.00 0 0.00 0.00 1 0.66 2.38 1 0.66 2.38 42
18.54 100 0 0.00 0.00 0 0.00 0.00 0 0.00 0.00 0 0.00 0.00 28
8.61 92.86 0 0.00 0.00 1 0.66 7.14 0 0.00 0.00 0 0.00 0.00 14
0.66 1.59 0 0.00 0.00 0 0.00 0.00 0 0.00 0.00 0 0.00 0.00 1
1.32 66.67 0 0.00 0.00 1 0.66 33.33 0 0.00 0.00 0 0.00 0.00 3
95.36 95.36 1 0.66 0.66 3 1.99 1.99 3 1.99 1.99 3 1.99 1.99 151
Source: (Primary Data) Table 4.3.29 gives clear idea that most of the respondents expect prompt action to their complaints. The percentage is 95.36, out of these, majority of class belongs to A1 39.07%, A2 27.15%, B1 18.54%, B2 8.61%, 1.32% D and 0.66% C SEC. Very few i.e. 1.99% apt for e-mail, letter and SMS.
Table 4.3.30 Reasons to Stay Following table shows reasons to stay in hotel as per SEC.
Reasons Outstation (weighted Sr. SEC average) 1 2 3 4 5 6
A1 Rank A2 Rank B1 Rank B2 Rank C Rank D Rank Total Rank
201 1 105 2 103 1 29 4 2 4 440 1
Business (weighted average)
Family function (weighted average) 129 4 113 1 76 2 31 3 5 1 4 2 358 3
132 3 69 4 38 4 37 1 3 3 279 4
Outing (weighted average) 179 2 104 3 53 3 36 2 4 2 3 3 379 2
Other (weighted Average) 58 5 34 5 9 5 20 5 1 5 10 1 132 5
Source: (Primary Data)
Table 4.3.30 reveals that generally customers stays in hotel when they are away from their home The main reasons such as outstation, for business, for family functions, outing and other i.e. other than four reasons. The main reason is outstation, second outing, third family function, fourth business, and fifth other reason. However, these ranks do not give clear picture because many people stay in hotel when they go for outing or some may stay only when they have family function .Sometimes some customers stay outside for their business purpose. Therefore, the SEC can give clear picture. Respondents of A1 SEC gives first rank to outstation, second to outing, third th
th
to Business, 4 to family function and 5 for other purpose. Respondents A2 SEC‘s first reason of staying in hotel is for family function, second for outstation, third for outing, fourth for business, and fifth for other reasons.
It observed that respondents C and D SEC have rare occasions to stay in the hotel therefore; they gave first rank to other option. B2 SEC gave first rank to business to stay in hotel whereas B1 SEC outstation and A2 SEC family function. 4.4 Hypothesis Testing Hypothesis is tested using crud method since the data is self-explanatory in nature. H0 -CRM is not implemented in hotels and they do not maintain data of customers. The data on the basis of likings food habit, room services, living habit and other personal likings of the customer which is the thirst of CRM. Table 4.4.01 Availability of CRM Software Sr. No 1 2 3 4
Type of Hotel Downtown Resort Star Other Total Source: (Primary Data)
Yes 0 0 0 1 1
% 0 0 0 3 3
% 0 0 0 13 3
No 20 2 7 7 36
% 54 5 19 19 97
% 100 100 100 88 97
Total 20 2 7 8 37
Ninety-seven percent of total sample hotels do not have CRM software. Very few hotels found to maintain data of customers. The data maintain is quite conventional and very little information of customers is maintained preferably to suffice legal obligations viz. Name, Address, Sex, Age, Marital status, Mobile, e-mail, Occupation, Type of Room, Purpose of visit, Birth date, Required room equipment and Diet. If has found that lodging section prefers to register this information of customers and not from the view point of CRM.
CHAPTER 5 FINDINGS AND SUGGESTION 5.1 Introduction
With the help of analysis of data and its interpretation researcher has drawn findings and suggestions based on it to help improve customer relationship management.
5.2 Findings Since the sample unit of this research is hotels and customers visiting hotels. Findings presented into three different heads viz. findings of sample hotels, findings of sample customers and segmentation of customers.
5.2.1 Findings of Sample Hotels 1 Eighty Six percent of sample hotels keep record of their customers. Fourteen percent of
sample hotels do not keep records of customers who are prominently
engage in only dining. 2 Fifty-nine percent of hotels maintain customer‘s record manually. Ninety-seven percent of hotels do not find any difficulty in maintains customer‘s record. 3 Officials in 86% of total sample hotels percept a need to record the customer‘s data. Entire sample resort and star hotels percept such need. Officials in 15% downtown and 25% star hotel obviate such records. 4 Eighty-six percent of total sample hotels percept need of data and collects customers data, out of that 81% sample hotels that make use of customer‘s data encompasses entire sample resorts and star hotels. 29% of sample downtown hotels do not make use of customer data 5 Eighty-six percents of total sample hotels percept to receive benefits of customer‘s data, out of that 81% of total sample hotels who make use of customer‘s data encompasses entire sample resorts and star hotels. Twenty-nine percent of sample downtown hotels do not make use of customer data.
6 Majority of officials in hotels i.e. 76% percept importance of maintaining records of customers whereas 24% do not find it important. Entire officials of sample resort and star hotels find importance of record keeping 16% downtown and 8% other hotel officials do not find importance of keeping customers record. 7 Officials in entire sample hotels seem applying technique to get loyalty of customers. The ways are prominently, homely environment by 41%, meeting smallest desire 27% and 24% personal offering. 8
Officials in 81% of total sample hotels percept no need of PRO. Officials in 43% of star hotels percept need of PRO.
9
Officials of 78% total sample hotels finds appointment of PRO is unnecessary whereas 22% officials opine that existing staff suffice the purpose of PRO. No officials quote appointment of PRO is costly.
10 Officialsof 59% of total sample hotels do not make any correspondence with customers. Officials in entire resorts and 71% of star hotels engage in correspondence with customers since this percentage is very low i.e. 19% in case of downtown hotels. 11 Officialsof 41% sample hotels indulge into correspondence with customers out of which 47% of sample hotels who regularly corresponds do the correspondence due reminders of lost aspects, 53% officials send greetings and 20% officials handles complaint of customers. From view point of this research sending greetings and handling customer complaint is profitable deal. 12 Officialsof 41% sample hotels indulge into correspondence with customers out of which officials of 47% of sample hotels use electronic mail and 73% officials use telephonic communication. Meager percentage is recorded officials use letter and SMS 13 At 51% of total sample hotels personal care has given due importance, 32% and 24% sample hotels incline to quick handling of customer‘s complaints and feedback respectively. Many hotels found to use more than one mentioned ways. 14 Management of 57% of total sample hotels offers discounts to customers as a way to treat loyal customers. 15 Managementof 81% of total sample hotels does not communicate new product offerings to customers. Management at resorts and star hotels are seems communicating with customers about new products.
16 At 62% of total sample, hotels received feedback of customers orally which includes 60% of total downtown sample hotels. Management at entire resorts and 57% star hotels feedback received through formal feedback form system. 11% of total sample hotels take feedback through staff that includes 50% of total resorts. 17 Officials of entire sample hotels feel prompt response is essential and they are using it in handling the customers‘ complaints. Assurance for better services and offering compensation are meagerly used. 18 Very meager i.e. 15% of sample downtown hotels‘ officials that amount to 8% of total sample hotels do not keep any informal relations with customers. Keeping in touch with all customers is not possible but making it way to build relation is important from viewpoint of implementation of CRM. Researcher observes that maximum hotels agree informal relation is essential and works out in maintaining good relation with their customers as well as improving loyalty of the customers. 19 Majority i.e. 86 % of sample hotels record the customers‘ information as their routine job and a legal requirement for lodging facility. The 14% of sample hotels do not record any customer‘s information as they provide only Dinning facility to the customer. It is mandatory on the part of management running lodging to collect basis information from customers hence; these 86% of sample hotels collects it so. The information of name, address, sex, age, marital status, mobile, e-mail, occupation, type of room, purpose of visit, birth date, required room equipment, diet is collected by almost management of all hotels. Information on health, allergies, hobbies, type of music like, pillow type, smoking habits, habits, marriage date, name of spouse and newspaper required is not collected. 20 It has found that mandatory information is collected and little additional information which may suffice purpose of CRM is not collected form customers 21 The majority of officials of sample hotels i.e. 27% think good quality food and taste and 24% officials of sample hotels think service is the most important reasons for customer‘s shift and paltry reasons such as price, variety, for a change and no vacancy. 22 In this study, 32 sample hotels found to maintain data of customers out of which 16 hotels maintain computerized database of customers. It has found only 43.75% of hotels are using computerized based communication with sample customers out of which only 28.57% sample hotels communicating new product offerings to the customers.
5.2.2 Findings of Sample Customers 1
As majority of respondents belong to A1 SEC who visit to the hotel and very few belongs to C SEC. around 88% of sample customers belongs to A1 to B1 SEC.
2
Ninety-two point two percent of respondents who visit the hotel are graduate/ PG general and PG professional belong to A1 to B2 SEC and very few i.e. 7.95% respondents are not graduate who belong to B2 to D SEC.
3
Male and female respondents who visit the hotel equally found in A1 and A2 SEC whereas B1 and B2 SEC male respondents are more as compared to female.
4
Sixty-four point four nine percent respondents who visit the hotel monthly household income is Rs. 25000 and above whereas no respondents had their household income below Rs. 5000. Around 90% of sample customers have household income more than 15000 a month. Thirty-eight percent of total sample customers have household income above Rs. 40000/-. The customer who found visited at sample hotel site have good purchasing power vis-à-vis are well educationally qualified.
5
Majority of sample customers have good educational background the respondents who visit hotels belongs to A1 to B1 SEC. 17.88% sample customers are industrialist, 31.13% are self-employed, 12.58% are clerical and around 21% are officers.
6
Seventy-eight point eight one percent of respondents who visit the hotel have nuclear family whereas 21.19% have joint family. Those respondents found in all SEC. around 58% sample customer have family size of 4 to 5 members and 21% samples have family size below four members.
7
Thirty-six point four two percent of respondents visit the hotel once in a month that belong to Al SEC, whereas 63.58% of respondents visit the hotel more than once in a month that belongs to A1 to B2 SEC
8
Across 45.03% respondents in all SEC spend for dinning lesser than Rs. 500/-in a month whereas 54.87% respondents spend more than Rs. 500 and among this majority belong to A1 and A2 SEC.
9
Majority of the respondents‘ monthly spending for lodging is below 500 across all SEC similar findings observed. However, highest spending classes of respondents for lodging in hotels are belonging to A1 and A2 SEC.
10 Eighty-eight point eight percent respondents across in all SEC spending in a month for other purpose is more than Rs. 500 whereas 11.92% respondents spend less than Rs. 500 Maximum respondents‘ spending for other purposes like permit room is by A1 and A2 SEC. 11 Respondentswho visit the hotel are not price conscious while spending in hotel because majority of respondents have given the first preference to medium price for services offered by hotel instead of lower price. 12 Respondents who visit the hotel are not seems price conscious while spending in hotel. However, they expect quality of food as well as prompt service and to some extent ambience in hotel. 13 Respondent visit a hotel, for change of food from routine food items and taste factor. Naturally, their choice for taste of the food ranks first across all other services in the hotel. 14 Respondents in all SEC give first priority to light and ventilation and less priority to beautification, sound and colour combination to the ambience. 15 Respondents in all SEC feels time is the more important factor than process in prompt service. 16 Eighty-one point five percent of the respondent‘s in all SEC reliable sources to know about the hotel is friends and relatives whereas very few respondents i.e. 18.95% rely on other sources like ad, tour operator and travel agency and other. 17 Respondents 95.36% are not communicated by hotel under any reason, whereas very few i.e. 4.64% who are communicated by hotels were associated with some association or social group like Doctors and industrialist that belong to A1 to B2 SEC. 18 Seventy-fourpoint one seven percent of total sample respondents like to receive communication from hotel officials. Respondents 53% in A1 and A2 SEC would like to communicate by hotels and these are profitable customer to the hotels. 19 Sixty-twopoint six zero percent of the respondents in all SEC prefer to receive communication via telephone No one respondent wanted to prefer fax as a media for communication. Very few i.e. 21.19% and 7.28% of total sample prefer to be communicated through SMS and E-mail respectively 20 Majority of respondents in all SEC i.e.92.05% expect benefits from hotel for their repeated visit, especially sample belong to C and D SEC is more conscious about
the benefits from the hotels. 21 All respondents of each SEC generally celebrate the happy occasions of their life. A1 SEC mainly likes to celebrate all the occasions in the hotel. Moreover, 80.79% and 72.85% of total sample customers prefer to celebrate birthday and anniversary in hotel. 22 Fifty-fivepoint seven four percent respondents in all SEC preferred restaurants to celebrate their birthdays. The alternatives of respondents A1 to B2 SEC are Resorts; star graded, and, Motels. 23 Forty-six point three six percent and 26.36% respondents in all SEC preferred star graded hotels and restaurants respectively for their anniversary celebration. None other than A1, A2 prefers Motel for celebrations. 24 Thirty point nine one percent and 29.09% of respondents in all SEC prefer star graded hotel and resorts respectively for their achievement celebration and meager i.e. 5.45% of respondents in A1 and B2 prefer motels. 25 Forty percent of respondents and 29.09% samples in all SEC prefer restaurant and star hotel for their special occasion‘s celebration. Very few respondents i.e. 5.45% prefer other than the specified hotels. 26 Seventy-one point four three percent respondents of A1, A2, and B1 SEC preferred restaurant i.e. small budget hotel only 1.99%A2 SEC preferred resort for their other celebration. 27 Fifty-threepoint six four percent of respondents in all SEC like to register their complaint to the hotel management. Forty-six point three six percent respondents, in all SEC do not like to register their complaint. The tendency to complaint declines as an education and occupation level decreases. 28 Ninety-one point three six percent of total sample respondents receive feedback of their complaints. 29 Sample customers who complaints out of that 95.36% expect prompt action against their complaint and very few expect to receive SMS, letter, and any excuses. 30 Respondents in all SEC who visit the hotel for staying the main reason is outstation, second outing, third family function, fourth business, and fifth other reason. However, A1 to B2 SEC have various occasions to stay in hotel for various reasons.
5.2.3 Customer Segmentation 1 A1 to B1 socio economic class had higher frequency to visit the hotels 2 Self-employed professional and businessperson are the customers who visit hotel frequently. 3 Most of the customers who visit hotel frequently their household income is Rs. 25000 and above per month. 4 Smaller the family more the occasion‘s family visits to the hotel.
Researcher found that those who visit hotel frequently and spend higher amount have smaller family, better education, they are either self-employed professional or businessperson, and their preferences are for star graded hotels. Higher income group has better frequency to visit the hotel and their spending is higher. Most of the customers like to celebrate happy occasions in the hotel.
5.3 Suggestions
1 Hotel customers are of two kinds, one is corporate customer, and other is guest on personal visit. While treating corporate customer hotel should keep regular contact with business organization in order to maintain people-to people relation. 2 The first step is to know the customer well. Therefore, hotel should set up information system and capture information from various contact points on a routine basis. Such information will help the employees to serve their customers better by customizing their services. 3 Employees are very important resource in hotel industry because they are the ones who serve the customers directly and have the maximum interactions with the customer. Employee morale, welfare, and training directly affect the quality of services rendered. Therefore, hotel should provide good training facility focusing to elicit information from customers to enrich the database. 4 Hotels should keep in touch with their regular customers through frequent newsletters, publications, and other communication media like, phone, e-mail, etc. The hotel should be in conversation with customers on a regular basis, almost making them a part of feedback and service design team. 5 Hotel should implement successful CRM strategy with a holistic approach and this should include training of employees, modification of services that based on customers‘ taste and preferences. 6 Feedback in hospitality industry is vital which may help to narrowing perceptual quality gaps. Feedback should be in writing and properly acknowledged. 7 Customer Information Form Efforts made to prescribe suggestion, which are general and specific in nature. Researcher has developed an information format containing customer data required for CRM based on findings of present research. Using appropriate software the same format should made available on computer, which would help to create different reports usable for promotion strategy. As mentioned elsewhere in this report CRM is not just software but it enable organization to manage better their customers through the introduction of reliable systems, processes and procedures for interacting with those customers.
Following, ”Customer Information Form‘, is an effort to assist hotel industry at large especially beginners in CRM. Customer Information Form A Personal data i Last name ii Residential Address iii iv
v vi
City Phone e-mail Age
B Customer‘s requirements i Type of room Newspaper
C About family i Spouse Name
ii
Middle name
State Mobile
Pin code Fax Male/ Female
Marriage dd mm yy Anniversary Educational Illiterate SSC/HSC qualification of customer
Worker
Children‘ Sr. s details
Name
Code No.
First name
Gender-
vii Occupation
ii
Form No.
Date of Birth Some college but not graduate
dd
Grad uate/ PG gener al Clerk/sale Offic s manager er/Ex e.
Shop owner
Purpose of visit Type of music
Marital status Married/ Unmarried mm
yy
Graduate/PG Any general Other
Business/Ind Any ustrialist other
Equipment required in room Pillow type
Spouse dd date of birth Male/ Date dd Female of birth
mm
yy
mm
yy
1 2 3 D About health i Allergy Health E Customer‘s habits and preferences i Hobbies Smoking habits Y/N ii Leisure time to Telephone
Diet Other Habits SMS
Email
attend
iii
Most preferred
Deluxe
room in the hotel
Non-AC
Deluxe AC
Super
Super Deluxe
Deluxe
iv
Most preferred
Veg
Non-veg
South
meals in the hotel
Chinese
Indian Any Punjabi
F
Suit
AC
Non-AC
other
Contine
Gujar
ntal
athi
pl
specify
Profitability i
Last date of visit
Frequency
Total purchase in
in a year
a year Rs. (000)
ii
iii
Visit
to
hotel
mostly with
family
friend
Alone
Occasions
Birthday
Anniversary Achievem
celebrate in hotel
Colleagues
Other
Get-together
ents
Meetin
Conf
gs
erenc es
G
Feedback i
ii
Experience for
Fully
Partly
the last visit
satisfied
satisfied
Expectation from
Food
Satisfied
Less satisfied
Unsatis fied
Ambience
the Hotel about
Servic
Price
e
following iii
iv H
Benefit expected from
Quality
the hotel for
Quantity
and tasty
repeat visit
discount
food
service
Cash discoun t (%)
Complaints if any
Potential customer i
Mention three names of your
Last
best friend
name
First name
Middle
Telephone
name
No.
e-mail
1. 2. 3.
Apart from general information, some specific information is sort in above format. The collected information should feed into developed software called CRM. The software would facilitate desired reports to management of hotels, which may enhance the promotion.
A.
The name, address, contact number, occupation, education, age and gender of
the customer help to know the personal details of the customer. This information hotel can use to identify and correspond with the customer. Education and occupation provides the picture of customer‘s socio economic class. The anniversary and birth date help to the hotel to send the good wish them on the occasions. This transaction will help to build a strong bond between the customer and hotel. ( Refer serial number i to vii in above form) B.
Customer‘s requirement regarding type of room, newspaper, type of music,
pillow type, equipment required in the room provides the information to the hotel to offer personalize things to the customer. In addition to that, purpose of visit shows the customers‘ occasion to stay in the hotel as well as legal requirement. ( Refer serial number i to ii in above form) C.
Everyone loves their family, if hotel sends greetings to their family members;
the customer is likely to be delighted. Size of family determines the customer‘s consumption and occasions to visit the hotel. ( Refer serial number i to ii in above form) D.
Individual diet habits can help hotel to serve their customer in a better manner.
Generally, the hotel never considers this part and offer food as per their perception. In addition, if the hotel is well aware about the allergy of the customer then they can take care of the customer‘s health. This will help to make proper arrangement of doctors and avoid any bad incidence in the hotel. E. As per hobbies of customers hotel can search the opportunity to serve them and charge for it. Other habits where hotel can offer other services to make the customer comfortable. It is observed that customer is ready to spend more time, money, and efforts to fulfill his hobbies. Details of smoking habit will help hotel to keep them away from non-smokers and provide ashtray in the room. The leisure time of the customer, help to communicate without any disturbance. Most preferred room and most preferred meal will provide the customer‘s likings. ( Refer serial number i to iv in above form) F.Last visit to the hotel will help to know how recently one has visited the hotel. Frequency of visit help to know how frequently customer has visits the hotel. Total purchase will help hotel to distinguish among the more profitable customers to others. The hotel can take the chance to remind the customer about the occasions they would like to celebrate in the hotel. ( Refer serial number i to iii in above form)
G.
Expectation of the customer about food, ambience, service, and price
determines the customer‘s rate of shifting from one to another hotel. Customer‘s benefit expectation for their repeat visits one can notice customers‘ preferences. Experience of the customer and complaint provides the feedback to the hotel where hotel can identify their lacunas. ( Refer serial number i to iv in above form) H.
The best friends‘ name and their phone numbers one can use to get new
customer i.e. customer get customer scheme. Depending on the customers‘ liking, behavior, life style, psychology and personal requirements hotel can serve customer better and bind the strong bond with this CRM software.
8. Customer Information Form for Dinning Section.
A distinct format developed for the customers attaining dinning section of hotel. The customer who visit the hotel for dinning section in a group, for variety of purposes, like parties, conferences, get-together, meetings, etc. this segment is potential for hotel hence it felt essential to keep their records distinctly. Customer‘s data for Dinning Section
Form No.
Code No.
First name
Middle name
A Personal data i
Last name
ii
Address
ii City i iv Mobile e-mail B Other information i Last date of visit ii Frequency in year ii Menu Veg. i preferred in the hotel C Feedback i Experience Fully from last satisfied visit ii Expectatio n from the Hotel ii Visit to Family i hotel with members iv Complaint s if any v Mention Last three name names of your best friend 1. 2. 3.
State
Pin code Fax
Phone
Occasions celebrate in hotel Total purchase Rs(000) Continental Punjabi Gujarat hi
South Indian
Partly satisfie d
Satisfied
Less satisfied
Fully satisfied
friend s
Relatives
colleague Social s group
Middle name
Telephon e No.
Nonveg
First name
Unsatis fied
e-mail
Other
Any othe r
The above form designed for Dinning section. This is for customer who visits the hotel in a group. Above form draws the following reports such as A. Personal data provides the customers‘ identity with their contact number and address. B. From the other information, the report such as how recently he/she has visited, for which occasions, amount spend, how often they celebrate, and menu preferred in the hotel. This information draws the attention on which customer visit in a group, gives better business and their frequency of visit. C. Feedback is the best opportunity to retain and seek the new business along with the references made available from existing customer.
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