PRESENTATION OF SERVICE SECTOR MANAGEMENT WITH RELATION TO SPECIAL STUDIES OF STAR HOTELS

VSIT TYBMS - A
NAME MAHESH KEELI RAMESH SELVAM SNEDEN ANTHONY DOMINIC GOUVEIA ZARNA GALA RADHIKA KANOJIA ROHIT SHIRKES RAHUL MUNGEKAR ROLL NO.

NISHA GUPTA

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

OVERVIEW OF SERVICE SECTOR

Service Sector in India today accounts for more than half of India's GDP. According to data for the financial year 20062007, the share of services, industry, and agriculture in India's GDP is 55.1 per cent, 26.4 per cent, and 18.5 per cent respectively

Service Includes

HOSPITALITY SECTOR
Guests keep coming based on familiarity, consistency etc Second oldest profession in the world, one should feel at home Over 46 touch points divided into three broad processes Pre-booking Check in/Check out Stay Each touch point has a unique process Each Process is a rigorous training based people processes Each process is augmented by a connected technology ecosystem
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HOTEL INDUSTRY
WHAT IS HOTEL INDUSTRY? A place Where Travelers Can Pay for Lodging and Meals and Other Services on a short-term basis.

Objectives of Hotel Industry

Customer Satisfaction Health Safety Environment To Promote Tourism

FORMS 30% OF INDUSTRY ITC, TAJ GROUP, OBEROI GROUP, ITDC

Eg :

BUILT OVER 18000 sq.m AREA

STAR RATED HOTELS

DELUXE & 5 : LUXURY AT HIGH PRICE , 27 % GOVT. APPROVED ROOMS

&1 : AROUND TOURIST SPOT, PREFERRED BY DOMESTIC TOURIST

& 3 : FOR MIDDLE LEVEL BUSINESS EXECUTIVES/LEISURE TRAVELLERS

CRITERIA FOR 5 STAR HOTEL RATING

THE ENTIRE HOTEL IS SPACIOUS AND LUXURIOUS EXQUISITE CUISINES THAT CATER TO TASTE BUDS FROM ALL OVER THE WORLD SERVICES ARE MORE, FLAWLESS AND PERSONAL ATTENTION TO THE GUESTS NEEDS SOME UNIQUE SERVICES PROVIDED IN THE 5 STAR HOTELS

BUTLERS

CHAUFFER DRIVEN LUXURY CARS PILLOW MENU CUSTOMISED SERVICES IN THE IN-HOUSE SPA AND SALOON 42 PLASMA TV, INTERNET, FAX, LAPTOPS ON RENT AND MUCH MORE

INTRODUCTION TO THE COMPANY VISITED

TAJ GROUP OF HOTELS

LOCATION OF TAJ HOTELS

Rating : Five Star Address:Apollo Bunder, Colaba, Mumbai (Bombay), Maharashtra, 400 001, India. Accessibility:Centrally located Apollo Bunder and a few kilometres from CST station makes the task of finding the easy for the tourists. Hotel Description:The history of Mumbai and The Taj Mahal Palace are dramatically intertwined. The hotel is Mumbais first harbour landmark (built 21 years before the Gateway of India) and the site of the first licensed bar in the city. A treasure-trove of invaluable memorabilia, there is a story to tell behind every pillar, a landmark deal in every boardroom, and a storied celebration under every awning. Come be a part of the legend.

OWNER OF TAJ HOTELS

Taj group of hotels is owned by the TATA sons Group of india, who also own the Indian hotels company established in 1902. Mr Ratan tata is the present chairman of the group. Sir Ratan Naval Tata, KBE, is an Indian businessman who became chairman of the Tata Group, a Mumbai-based conglomerate. He is a member of a prominent Tata family of Indian industrialists and philanthropists.

INTRODUCTION TO TAJ HOTELS

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

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MARKETING MIX
PHYSICAL EVIDENCE

PROMOTION

PRODUCT

PEOPLE

PROCESS
PLACE
PRICE
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7Ps of Taj hotels

1.PRODUCT
Rooms & Suites Core product is space Supplementary products include travel arrangements, ticketing, airport pick-ups, sightseeing, etc

2. PLACE
More than 60 hotels in 45 locations across India ,15 in International Locations. Vantage locations Iconic properties rooted in history and tradition

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

Not affordable by all. High prices justified as they help Taj retain exclusivity.

4 . PROMOTION
Loyalty programs, clubs, memberships. Surprises such as weekend savers, value vouchers,.

5. PHYSICAL EVIDENCE
Well designed, spacious lobby. Use of artifacts and antiques. Traditional Indian

6. PROCESS
Check-in Bell-person carrying luggage to room Butler service Food Laundry Child-care and baby-sitting Currency exchange

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

Monthly letters to
about upcoming events. Holiday package

welcome to guests.
Combines a heritage ambience with modern luxury.

promotions at
exhibitions.

Wake-up call
Gift-shop, boutique, florist Check out

Product
CORE

BASIC
EXPECTED AUGMENTED POTENTIAL

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Products
Room Restaurant and Bar.

Meeting room and Banquet facility

Amenities Services

Safe deposit box

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

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

Price
Demand based
Competition based

Differential pricing

PRICING STRATEGIES

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

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

Rates
The Taj Suite Executive Suite Rs. 8750 Rs. 6250

Standard sea view double Standard sea view single

The Taj Lady

Rs. 3500 Rs. 3500

Rs.8000

PLACE
Customers visit a hotel to satisfy their needs for food and accommodation. Hotel distribution is interdependent with other industries that serve travelers and tourists, like the transportation industry, travel agents ,tour operators, state and national tourism organizations, and shopping and entertainment providers. The location of a hotel should be convenient and accessible to the customers. The selection of the location is very crucial in hotel marketing. The place selected should be free from all health hazards. Location of the hotel is the most important business decision for the hotel. Present in metro cities in India Global presence (Maldives,London,Dubai,Colombo)

PROMOTION STRATEGY
Promotional schemes are carried on regularly the hotel has many loyalty programe,clubes,membership,previlage etc some of them are
1. The Taj Inner Circle. 2. The Taj Junior League. 3. The Taj Club. Taj also offer Taj surprises including weekend savers,value vouchers,book early get more,

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

Promotion
ADVERTISING SALES PROMOTION

WORD OF MOUTH PROMOTION

PUBLICITY AND PUBLIC RELATIONS

PERSONAL SELLING
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People

First impression is the last impression

Selection of suitable personnel and provision for their training and development are very significant. The staff in a hotel plays a major role in transforming the potential customers. To actual guests: they should be able to live up to the expectations of their customers. In the hotel industry customers minutely pay attention to the treatment they receive. The offering of services requires complete personal involvement of the hotel personnel in general and front-office staff in particular. The front office should be designed well and the concerned staff should render efficient and courteous services to the customers. There will be an attitudinal change in the minds of the prospective customers if the hotel personnel follow the established behavioral principles. For instance, even the best food served in a hotel will not satisfy the customers if the staff does not behave well

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People
Skilled person Professional person Personal Agents Technological person Travel agents

Physical Evidence
Lobby- It being the first & the last part of the hotel that the guest sees,thus it should be well designed, also to ensure that the customer returns again the room should be comfortable and should have made his stay hassle free . It addresses the tangible components of the service experience

The services cape includes the ambience, the background music, the comfort of seating and the physical layout of a service facility
The appearance of the staff, including clothes and grooming, may be used as important clues

 It includes the flow and progress of the production process E.g. the service of providing a meal at the fine dining restaurant of the hotel

Process

Process
Major service encounter that extremely delighted or disappointed are: 1. Check in. 2. Bell person carrying luggage to the room. 3. Food. 4. Wake up call 5. Check out.
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STP analysis

THE TAJ GROUP OF HOTELS SEGMENTATION

TAJ LUXURY HOTELS

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

TAJ BUSINESS HOTELS:

TAJ PRESIDENT, TAJ RESIDENCY, TAJ CONNEMARA, TAJ BLUE DIAMOND OFFER MULTI CUISINE RESTAURANTS & BEST BUSINESS FASCILITIES

TAJ LEISURE HOTELS:

TAJ BEACH RESORT, TAJ CULTURAL CENTRE, TAJ GARDEN RETREATS
LOCATED AT BEACH RESORTS, PALACES, PILGRIM CENTRES ETC.

THE TAJ GROUP OF HOTELS SEGMENTATION

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

TAJ LEISURE HOTELS

TAJ BEACH

RESORT,
TAJ CULTURAL CENTRE, TAJ GARDEN RETREATS LOCATED AT BEACH RESORTS,PALACES,

PILGRIM CENTRES ETC.

Positioning
Through print media Electronic media Magazines Online advertising

Targeting
Targeting is a group of people who have common need, and behavior. Business class Upper class Tourists

COMPETITORS The hotel has many competitors like 1. The Oberai towers 2. The Marine Plaza 3. The Orchid. 4. Le Meridian Acqusition-hotel blue diamond pune.

SERVICE ENCOUNTER

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Service Encounter Cascade

CHECK IN (Front desk Executive)

BELL BOY TAKES TO ROOM (Bell Boy)

RESTAURANT MEAL (Waiter)

REQUEST WAKE UP CALL (Tele phone Operator)

CHECK OUT (Font desk Executive)

Stations Of Experience
Pre-Arrival
Reservations: During the reservation a preference sheet is mailed to capture the details and to enhance the stay experience. Airport pick-up: An airport representative is sent along with a chauffeur holding a placard

Arrival
Welcome at the lobby: Royal welcome by the guards in typical Rajasthani Attire. Royal Welcome for Groups: Special arrangements for groups are made. A huge caravan of Elephants, camels , horses along with a professional band is called for the reception of the group. ATG( Aarti, Tiki and Garlanding): Welcome Drinks upon arrival

Check-in
Escorting Welcome Letter Room Orientation
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 Experience during stay

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

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

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ROLEPLAY

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CRM

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Benefits
Streamlined

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

CRM in Hospitality
The secret here is that retention cost is very low when compared to the cost of attracting new customers nature and extent of the services and facilities developing and designing services that suit customer preferences Quality of service and Customer Satisfaction are the most important factors in the service organizations CRM helps hotels to service their customers and be cost effective Major hotel chains have been wooing travellers for years with CRM tools focused mainly on "loyalty" or rewards programs

CRM Activities in Hotels

Catering to Valuable Guests Better Customer Data Yields Benefits

New Directions Online

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

Taj Inner Circle Taj Epicure Plan Benefits That Customers Enjoy As A Silver & Gold Member
Customers will be greeted with flowers & fruits in their room Check-in & departure formalities will be easier, faster & flexible Receive special discount on rooms at Taj leisure hotels Avail of double occupancy at no extra cost Entitled to a priority wait-list

Points Redemption Taj Club

CRM used in Taj Palace Hotel

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At the time of the reservation a preference sheet is sent across to the guest along with the reservation conformation mail This is primarily to capture the various preferences of the customer such as food habits (Diabetic/ Low fat etc.), special needs etc. It also asks if the customer is coming on a special occasion or not and arrangements are made accordingly made on the visit e.g. If the guest is coming on a honeymoon or anniversary the room is decorated accordingly, cake is placed in the room etc.

This is another important tool in improving the service of the hotel and to capture guest complaints. If a complaint is registered by a customer it is updated on the software. Gradually as the time lapses the status displayed turn from green to yellow and ultimately red. This status can be seen by any of the managers as the software is connected to the central server. A daily Action Taken Report is generated which is signed by the operational head.

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Fidelio is the property management system used by Indian Hotels Company Limited. Although it is used for various functions but it also plays an important role in the CRM processes of the hotel. It is used for saving the profile, preferences and special information (Anniversary, Birthday, allergies etc.) related to the guest on a central server.

This is a special instrument used by personal butlers for recording guest preferences & other important information related to the guest. This is a small booklet which is carried by the staff at all times and whenever they get any information which can be useful in the future to please the customer, they simple record it here.

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

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

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Once the guest is in the hotel and stayed for sometime (a day or two) a courtesy call is made by the guest relationship executive during the evening hours. This is just to know about the guests experience and how can it be improved in case there is some difficulty being faced by him/her. In case there is a complaint it is uploaded on the CRM software and further processes are followed as mentioned above.

Post departure an automated mail from the central server is sent to the guest requesting to fill up a feedback form. There are various heads covering the various stations of experiences which are scored on a Likert Scale. This information is quantified to highlight the areas of concern. This score is also used as a measure of performance of a hotel unit.

SERVICE TRIANGLE
Company

Internal Marketing
Vertical Communications Horizontal Communications

External Marketing Communication

Advertising Sales Promotion Public Relations Marketing Direct

Employees

Interactive Marketing Personal

Selling Customer Service Center Service Encounters Servicescapes

Customers

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

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Internal Marketing
Taj Management Training Programme (TMTP)

Hotel Operations Management Trainee (HOMT)

Program

Taj Management Training Programme (TMTP) Operations/ Food Production Affiliation with Indian Institute of Hotel Management, Aurangabad
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Interactive Marketing

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Customer Loyalty Programs ( Retention)

Taj Inner Circle Taj Epicure Plan Benefits That Customers Enjoy As A Silver & Gold Member
Customers will be greeted with flowers & fruits in their room Check-in & departure formalities will be easier, faster & flexible Receive special discount on rooms at Taj leisure hotels Avail of double occupancy at no extra cost Entitled to a priority wait-list

Points Redemption Taj Club

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Program for Employees

Employee loyalty program called STARS, the 'Special Thanks and Recognition System - was an initiative aimed at motivating employees through acknowledgements and rewards. The STAR system also led to global recognition when the group bagged the 'Hermes Award' for 'Best Innovation in Human Resources' in the global hospitality industry.

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

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Reservations Booking Portal

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What Creates Customer Delight

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24-hour room service

Travel assistance

Free safe deposit lockers

Express laundry/ dry Purified water supply Doctor-on-call Full-equipped Business Centre 24-hour fax/ telex facilities. 3 Meeting rooms cleaning

Car hire service

24-hour Coffee Shop 6 Restaurants & Bars Night Club 8 luxurious Banquet Rooms Shopping arcade Fitness Centre Beauty shop Arrangements made for golf and tennis

Laptops on hire
Currency Exchange

Customer Feedback System

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

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Service recovery

Consequences for a service organization

Negative Consequences - Lost Customers - Negative word of mouth - Employee Dissatisfaction - Lack of loyalty - Complaints - Exit from the

Entry in India
Attackers travelled by sea from Karachi, Pakistan across the Arabian Sea. 10 Urdu-speaking men arrived. The first events were detailed around 20:00 Indian Standard Time(IST) on 26 November. 156 people lost their lives, 400 injured, 250 walked free

Hotel Taj After 26/11

Nearly 40% of annual income lost Financial Crisis. 2007 16% Growth 2008 1.8% growth compared to 2007. Went down due to terrorism.

CRISIS AT

TAJ

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

Reasons behind the 26/11 terror attacks

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

The Siege At Taj Heritage

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

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

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

Employees of taj during THE SERVICE crisis

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

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

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

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

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

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

Maintaining hotel image

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

Welcome & encourage complaints

Fail-safe your service Do it right the first time

Act quickly

Service Recovery Strategy

Treat customers fairly

Learn from lost customers Learn from recovery experiences

BALANCE OF DEMAND AND CAPACITY

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Thank you
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