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PROJECT REPORT ON

Comparative Study on Customer Relationship Management


in Hotel Industry (Taj & Hyatt)

UNIVERSITY OF MUMBAI

MASTER OF COMMERCE

(Banking & Finance)

SEMESTER III

2016-17

SUBMITTED BY

Name: Samriddhi Rakhecha

Roll No.: 16

PROJECT GUIDE

Dr. Khyati Vora

1
K.P.B HINDUJA COLLEGE OF COMMERCE

315, NEW CHARNI ROAD, MUMBAI-400 004

M.Com (Banking & Finance)

3rd SEMESTER

Comparative Study on Customer Relationship


Management in Hotel Industry (Taj & Hyatt)

2
SUBMITTED BY

Samriddhi Rakhecha

Roll No.: 16

Smt. P.D. Hinduja Trusts

K.P.B. HINDUJA COLLEGE OF COMMERCE


315, New Charni Road, Mumbai 400 004 Tel.: 022- 40989000 Fax: 2385 93 97. Email:

NAAC Re-Accredited A
O 9001:2008THE BEST COLLEGE OF UNIVERSITY OF MUMBAI FOR THE ACADEMIC YEAR 2010
Prin. Dr. Minu Madlani (M. Com., Ph. D.)

CERTIFICATE

This is to certify that Ms. Samriddhi Rakhecha of M.Com (Banking &


Finance) Semester 3rd [2016-2017] has successfully completed the
Project on Comparative Study on Customer Relationship
Management in Hotel Industry (Taj & Hyatt) under the guidance
of DR. KULDEEP SHARMA.

________________ ________________
Project Guide Co-coordinator

________________ ________________

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Internal Examiner External Examiner
________________ ________________
Principal College Seal

DECLARATION

I Mr. / Ms. Samriddhi Rakhecha, student of M.Com-Banking &


Finance, 3rd semester (2016-2017), hereby declare that I have completed
the project on Comparative Study on Customer Relationship
Management in Hotel Industry (Taj & Hyatt)

The information submitted is true and original copy to the best of


our knowledge.

(Signature)

4
Student

Contents
Chapter Topic Page No.
1.1 Introduction 6
1.2 Introduction to Taj hotels 8
1.3 Introduction to Hyatt hotels 10
2 Review of the Literature 11
3 Research Methodology 14
3A Research Aim & Objectives 15
3B Hypothesis 16
3C Sample size, Design, etc 17
3D Research Design 18
3E Questionnaire 20
3F Procedure 22
4 Tabulated Data 25
5.1 Limitations of the study 27
5.2 Scope for further Study 27
6 Need & Significance 28
7 Conclusion 29
8 Bibliography 30

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Chapter 1.1: Introduction
Customer relationship management (CRM) is an approach to
managing a companys interaction with current and future customers. The
CRM approach tries to analyze data about customers' history with a
company, in order to better improve business relationships with
customers, specifically focusing on retaining customers, in order to drive
sales growth. One important aspect of the CRM approach is the systems
of CRM that compile information from a range of different channels,
including a companys website, telephone, email, live chat, marketing
materials, social media, and more. Through the CRM approach and the
systems used to facilitate CRM, businesses learn more about their target
audiences and how to best cater to their needs. However, the adoption of
the CRM approach may also occasionally lead to favoritism within an
audience of consumers, leading to dissatisfaction among customers and
defeating the purpose of CRM.

Customer relationship management (CRM) is a term that refers to


practices, strategies and technologies that companies use to manage and
analyze customer interactions and data throughout the customer lifecycle,
with the goal of improving business relationships with customers,
assisting in customer retention and driving sales growth. CRM systems
are designed to compile information on customers across different
channels or points of contact between the customer and the company --
which could include the company's website, telephone, live chat, direct
mail, marketing materials and social media. CRM systems can also give
customer-facing staff detailed information on customers' personal
information, purchase history, buying preferences and concerns.

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CRM IN HOTEL INDUSTRY

Generally speaking, the five needs of customers are:-

(a) Service

(b) Price

(c) Quality

(d) Action and

(e) Appreciation.

The adoption of CRM in the hotel industry has been impeded by a


number of factors. These include the persistently fragmented nature of the
industry, the disparate, proprietary and relatively immature
natureITs y s t e m s , a n d t h e a d d i t i o n a l c o m p l e x i t y a s s o c i a
t e d w i t h m a n a g i n g a perishable product that is sold through a
variety of distribution channels. However, more rapid progress is
being made due in part to the companies and hospitality IT vendors
continued consolidation between hospitality.

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Chapter 1.2: Introduction to Taj hotels

Indian Hotels Company Limited (IHCL)branded as Taj Group, is a


chain of hotels and resorts headquartered at Oxford House
in Mumbai which was incorporated by the founder of the Tata group,
Jamsethji Tata, in the year 1903. This company is a part of the Tata group,
one of India's largest business conglomerates. As of 2015, Taj Group
operates 108 hotels across India and 17 hotels in the UK, USA, Africa,
Maldives, Malaysia, Bhutan, Sri Lanka and the Middle East, and
employed over 13000 people in the year 2010.Taj Group also owns a few
private islands.

Jamsetji Nusserwanji Tata, founder of the Tata Group, opened the Taj
Mahal Palace, a hotel in Mumbai (formerly called Bombay) overlooking
the Arabian Sea, on 16 December 1903. It was the first Taj property and
the first Taj hotel. There are several anecdotal stories about why Tata
opened the Taj hotel. According to a story he decided to open the hotel
after an incident involving racial discrimination at the Watson's Hotel in
Mumbai, where he was refused entry as the hotel permitted only
Europeans.Hotels which accepted only European guests were very
common across British India then but it seems far too petty a reason to
fire a man of the calibre of Jamsetji Tata. According to another story he
opened the hotel when one of his friends expressed his disgust about the
hotels which were present in Bombay then. But a more plausible reason
was advanced by Lovat Fraser, a close friend of the Tata and one of the
early directors of the IHCL group, that the idea had long been in his mind
and that he had made a study on the subject. He did not have any desire to
own a hotel but he wanted to attract people to India and to improve
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Bombay. It is said that Jamsetji Tata had travelled to places like London,
Paris and Berlin.

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Chapter 1.3: Introduction to Hyatt hotels
Hyatt Hotels Corporation is an American international company and
operator of hotels. The Hyatt Corporation came into being upon purchase
of the Hyatt House, at Los Angeles International Airport, on September
27, 1957. In 2015, Fortune magazine listed Hyatt as the 78th-best U.S.
company to work for.

The original owners were entrepreneurs Hyatt Robert von Dehn and Jack
Dyer Crouch; after a few years, Von Dehn sold his share in the hotel to
entrepreneur Jay Pritzker. Jay's younger brother Donald Pritzker also took
on an important role in the company.

Over the following decade, acquisitions were made, and Hyatt became the
fastest-growing hotel chain in the United States. Donald died in 1972; Jay
continued to run the company.

In 1969, Hyatt opened its first hotel outside the United States, the Hyatt
Regency Hong Kong. In 1980 the Grand Hyatt and Park Hyatt brands
were introduced. Hyatt runs resort hotels, starting with the Hyatt
Regency Maui in 1980. As of 30 November 2015 Hyatt had over 627
hotels worldwide.

In 1972 Hyatt formed Elsinore Corporation, a subsidiary to operate


the Four Queens Hotel and Casino and the Hyatt Regency Lake Tahoe
Resort, Spa & Casino. After Hyatt became a private company in 1979,
Elsinore was spun off as a public company.

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Chapter 2: Review of the Literature

Evolution of CRM

Customer Relationship Management (CRM) is one of those


magnificent concepts that swept the business world in the 1990s
with the promise of forever changing the way businesses small
and large interacted with their customer bases. In the short term,
however, it proved to be an unwieldy process that was better in
theory than in practice for a variety of reasons. First among these
was that it was simply so difficult and expensive to track a n d k e e p t h e
h i g h v o l u m e o f r e c or d s n e e d e d a c c u r a t e l y a n d
c o n s t a n t l y update them. Competition has driven the prices down so that
even relatively small businesses are reaping the benefits of some
custom CRM programs.

In the beginning

The 1980s saw the emergence of database marketing, which was simply a
catch phrase to define the practice of setting up customer service groups
to speak individually to all of a companys customers. In the case of
larger, key clients it was a valuable tool for keeping the lines of
communication open and tailoring service to the clients needs. In
the case of smaller clients, however, it tended to provide repetitive,

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survey-like information that cluttered databases and didnt provide
much insight. As companies began tracking database information, they
realized that the bare bones were all that was needed in most cases: what
they buy regularly, what they spend, what they do.

Importance of Customers

There exists a wide-spread mistaken notion that CRM is some


kind of a manifestation of technology only. Another interesting
thing is that even those who have implemented highly
technological installations for their CRM initiatives, quite often can
be seen to have forgotten the basis of this modern concept, i.e., making
profitable relationships with their customers. This significant part is left to
the technology alone (Schneider and Bowen,1999). Such a situation arises
mainly because of the inability or reluctance o f t h e m a n a g e m e n t t o
a c c e p t t h e i mp o r t a n c e o f c u s t o me r s a n d s e r v i n g them to keep
them satisfied and happy, which otherwise may result in low sales and
hence low profits.

ARTICLE :-

Author(s):

Diana Luck (London Metropolitan University, London, UK)

Geoff Lancaster (London School of Commerce, London, UK)

Citation:

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Diana Luck, Geoff Lancaster, (2013) "The significance of CRM to
the strategies of hotel companies", Worldwide Hospitality and
Tourism Themes, Vol. 5 Iss: 1, pp.55 - 66

Downloads:
The full text of this document has been downloaded 5851 times
since 2013

Abstract:

Purpose
The purpose of this paper is to identify how customer relationship
marketing/customer relationship management (CRM) can be a
strategic solution to hotel companies or part of their tactics.

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Chapter 3: Research Methodology
Research methodology helps us to know what type of research we want to
conduct, to know the sample size, to know the methods involved in
research. Research Methodology is one of the most vital part within a
research process.
The main objective of this research is to identify main CRM factors that
influence customer satisfaction and loyalty, and to analyze the relationship
between these factors and two parameters of satisfaction and loyalty. In
this study, researchers have adopted survey method, according to which a
questionnaire was designed as a tool to collect primary data from 10-15
guests of hotel in few areas of the city for analyzing the factors under
CRM.
Also specific attributes were designed to analyze the satisfaction level
and loyalty level of each guest. To form and name the factors, researchers
applied factor analysis to classify the statements or variables under main
factors. And after that, to analyze the relationship between these factors
and satisfaction and loyalty of guests, multiple regression analysis was
employed.

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A] Research Aim & Objectives

The objectives are:

Understand customer needs better.

Maintain long term customer relationships.

Be able to pursue a strategy of Relationship Marketing.

To identify and evaluate key factors influencing customer relationship


in Taj and Hyatt through primary and secondary research results.

To represent data and collected information in such a way that will


reflect overall description and explanation on customer relationship
management in Taj and Hyatt.

To develop valid conclusions and recommendations in accordance in


accordance with key themes obtained from the primary andsecondary data
and information both in terms of academic and business perspectives.

To explore and analyze existing theories and practices on CRM within


hotel industry, in this case Taj and Hyatt through review of literatures.

To focus on customer acquisition, customer development and


customer retention.

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B] Hypothesis
One of the major objectives of this research is to find out how application
of CRM program affects customers satisfaction. So based on this
objective the first hypothesis was formulated as:

H1: Application of CRM program in customers hotel industry of India is


strongly and positively associated with customers satisfaction. CRM
struggles to make create long lasting relationship between the
organizations and customers. Hotels are doing a great effort to make their
customers loyal to them. So, second hypothesis is formulated as:

H2: Application of CRM program in customers hotel industry of India is


strongly and positively associated with customers loyalty. Since, the
study is among different airlines, and each airline is employing different
aspects of CRM in their business decisions, the third hypothesis is
formulated as:

H3: Application of CRM program in customers hotel industry of India is


if customers are of different hotels, then their satisfaction level of over-all
service that the hotel provided will be significantly different.

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C] Sample Size, Design, etc.
The sample size for the research based on the customer opinion was 15
and the size of the sample based on the opinion and experiences of the
hotel staff was 5. This research involved a study, which was descriptive as
well as statistical in nature it basically aims at gathering data about
customer preference for any one of the two hotels.

SAMPLING TECHNIQUE - Simple Random Sampling.

Simple random sampling is a basic type of sampling, since it can be


a component of other more complex sampling methods. The
principle of simple random sampling is that every object has the
same probability of being chosen. This process and technique is
known as simple random sampling, and should not be confused
with systematic random sampling. A simplerandom sample is an
unbiased surveying technique.

D] Research Design
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A research design is one that minimizes bias and maximizes the reliability
of the data. It also yields maximum information, gives minimum
experimental error, and provides different aspects of a single problem. A
research design depends on the purpose and nature of the research
problem. Thus, one single design cannot be used to solve all types of
research problem, i.e., a particular design is suitable for a particular
problem.

The research study designed was descriptive and statistical in nature.


Which would enable the companies (hotels) to take a rational decision.
This is because the sample size taken was large and the techniques
adopted were for mass data. The data obtained from each locality was
tabulated and the results were obtained in the form of percentages. It was
required to visit all the outlets in the specified area of his distributor. We
were required to be given the route map of the specified area. The area
was to thoroughly survey without leaving any of the outlets.

Initially the survey was to start with the vicinity I reside. Few days had to
be devoted to conduct survey and noting down the questionnaire and for
collecting particular information. It was to get respondents familiar with
the questions. The next few days had to be surveyed individually in the
same area trying to find out those people who did not visit hotels
frequently. This was how the whole survey was conducted. The main aim
of this survey was to find out which hotel do people prefer between Taj
and Hyatt and what is the reason behind their selecting any one of the two
hotels.
Random sampling was done after taking the consent of the participants.
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Ethical considerations were taken into account while collecting the data.
No personal details of the participants have been shared with anyone.
Primary data was collected from a self developed questionnaire that was
administered to all the participants.
All of them were residents of Tardeo, Mumbai city, India.
A self developed questionnaire was administered to them online and face
to face.

Time Period 45 days


Sample Area Tardeo
Research Type Descriptive & Statistical
Research Instruments Questionnaire
Survey Population 10-15 people

E] Questionnaire Used
A self developed Questionnaire was used which answers on the
comparative study on customer relationship management in hotel industry
(Taj & Hyatt hotels)

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Q1. Name

Ans.-----------

Q2. Age

Ans. ----------

Q3. Marital Status

Married
Single
Q4. Which hotel do you prefer?

Taj
Hyatt
Q5. How many times a month do you visit these hotels?

Ans. -----------

Q6. What purpose do you visit these hotels for?

Hotel stay/ Rest


Restaurant
Work / Meetings
To use recreational facilities
Q7. Do you think Hyatt is a strong competitor to Taj hotels?

Yes
No

Q8. Are you satisfied with the current services provided in these hotels?

Yes
No

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Q9. How do you feel is the employees /staffs attitude towards CRM?

Excellent
Good
Ok
Poor
Q10. Are the employees/ staff willing to help customers in a responsive
manner?

Yes
No
Q11. Which hotel group do you suggest, shpuld open a new hotel in
India?

Taj
Hyatt
Q12. Staff is more friendly & caring in which hotel?

Taj
Hyatt
Q13. How would you rate the hotels?

Excellent

F] Procedure
Types Of Data Collection

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Primary sources

Primary data is collected, by first hand information from the concerned


company person.

Primary data is collected by three different ways such as:

Observation

The observation was done by the following method:-

Keeping the hotels in view

Keeping the customers in view

Interacting with various group of hotel staff and customers.

Survey

Which includes various categories of hotel staff. A questionnaire was


prepared to get the relevant information from hotel staff.

Personal interviews

This method of date collection involves the interviewers asking question


in a face to face contact situation there in direct personal investigation and
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the interview inn properly structured as it involves the use of set of
predetermined questions which are asked in the form and order pre-
decided. This technique is preferred as it is economical; more informative,
non-responsesare low, spontaneous reactions which are realistic. Lots of
supplementary information comes up.

Secondary Data

Secondary data consists of information that already exists somewhere and


may have collected fora different purpose, it provide a starting point. The
list of retailers was obtained from company officials, designed by
company. Website is also a source of secondary data.
Secondary data from academic and news sources are discussed and
analysed, together with empirical data collected previously by the first
author during the course of her own doctoral research.

Findings
The essence of a customerfocused environment is a preliminary
indication of how the hotel industry can truly benefit from a strategic and
focused approach to CRM. Hotel companies have in evidence had
recourse to elements of CRM for a variety of strategic and tactical
reasons. It is argued that the success of a strategy depends not only on the
ability of a company to identify and understand what its target customers
genuinely need and want, but also on the company's ability to deliver
enhanced value in terms of these specific needs and wants.

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Research limitations/implications
Both the strategic options of a company and the achievement of
competitive advantage are directly linked to the elements or features that
targeted customers genuinely favor. It is suggested that hotel companies
must not only identify what their target customers genuinely seek, but that
they should also ensure that they themselves understand the dynamics of
CRM as a strategy. Unless the fundamentals of CRM are truly understood,
it is argued that hotel companies will not be able to optimally integrate
CRM in their strategies and benefit from opportunities.

Originality/value
The research has concluded that hotel companies should decide to focus
on customer acquisition, customer retention or customer account
development: the three strategies associated with CRM.

Chapter 4: Tabulated Data


Most of the respondents belong to 31 to 40 age group.
60% of the participants were married.

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Marital Status
Married Unmarried

40%

60%

Majority of the respondents prefer TAJ Hotel out of the two.


Most of the respondents visit the hotel twice in a month.
40 percent of the respondents visit the hotel to use the restaurant.
20 percent visit for work purpose i.e meetings related to work with
clients etc.
20 percent visit to rest. Eg:- On a vacation/holiday with the family.
20 percent visit the hotel to use the recreation facilities like Gym,
swimming pool, Spa etc.

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Purpose of Visit

Recreational facilities; 20%


Rest; 40%

Work; 20%

Restaurant; 20%

60 percent of the respondents think that Hyatt is a strong


competitor to TAJ.
75 percent of the respondents are satisfied with the current
services.
Most of the respondents feel that the employees/staffs attitude
towards CRM is Good.
80 percent of the respondents agree that the employees/staff are
willing to help customers in a responsive manner.
Most of the respondents would like a new Taj Hotel to be opened
in India.
Majority of the respondents think that Taj hotels staff is more
caring and sweet.
Majority of the respondents rated the hotels as Good.

Chapter 5.1: Limitations of the Study

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Some of the respondents refuse to fill the questionnaire.
During the time of interview some respondents get confused and
they do not come up with real answers.
Small sample size.
Limitation of time.
The survey is conducted in few areas of Mumbai city hence the
result may vary in other parts of the city.

Chapter 5.2: Scope for further Study

Marketing research: The process of gathering, analyzing and


interpreting information about a market, about a product or
service to be offered for sale in that market, and about the past,
present and potential customers for the product or service.
For making government policy.
Operational research: It is a scientific method of providing
executive departments with a quantitative basis for decisions
regarding the operations under their control.
Motivational research: The application of the knowledge and
techniques of the social sciences, especially psychology and
sociology, to understanding consumer attitudes and behavior.

The study undertaken will offer valuable insights on Customer


Relationship Management in the hotel industry.

Further research can be undertaken on a larger sample from different


cities of India. All the Socio-economic stratas can be sampled.

Chapter 6: Need & Significance

CRM must be part of an overall company philosophy.

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CRM is core to all businesses, essentially it is about selling good
products or services to the right people.

CRM solutions must include not just systems, but also people,
process and strategy.

CRM must focus on selecting and managing customer value and


loyalty through a long-term relationship.

CRM is not a single system but a comprehensive application


architecture consisting of several systems.

CRM is useful to meet the changing expectations of the customer.

The purpose of this study is to present the essentials of Customer


Relationship Management as well as basic hotel marketing and
managerial tools and strategies that are inevitable for conducting
successful hotel business. At the same time the purpose of the study
is to evaluate the situation in the hotels TAJ and HYATT.

Chapter 7: Conclusion

Application of CRM program in hotel industry affects customer


satisfaction and directly influences satisfaction level among
customers. CRM causes higher loyalty of customers and makes
barrier in front of customer switch. Customization of service,
communicational efforts by the hotel staff, having trust in the hotel,

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commitment of hotel to promised service offer and better service
quality are main factors influencing customer satisfaction and
loyalty. Hotels should struggle to gain as much knowledge as
possible to understand the real needs of customers and fulfill them
for creating longer relationships.

Chapter 8: Bibliography

Books:
Marketing Management- By Philip Kotler
Research-methodology- By C R Kothari
Research Methodology- By Manan Prakashan

Websites:
www.google.com
www.googlescholar.com
www.wikipedia.org
www.tajhotels.com
www.hyatt.com

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