SALES AND MARKETING

IN
THE GATEWAY HOTEL
VIJAYAWADA

Submitted by

Mr. YADAVA HARI BABU

Registration NO: TO5M19006200038

In partial fulfillment of the requirement for the award of the

degree
Of

MASTER OF BUSINESS ADMINISTRATION

IN
HOSPITALITY MANAGEMENT

Under the Guidance of

Prof. K. Shanthi, MBA, M. Phil,

Department of Management Studies,

Chennai’s Amirta International Institute of Hotel Management,

Chennai

December 2019
 BONAFIDE CERTIFICATE

Certified that the Project report titled SALES AND MARKETING IN THE GATEWAY
HOTEL, Vijayawada, is the bonafide work of Mr. YADAVA HARI BABU Reg No.:
T05M19006200038 who carried out the work under my supervision. Certified further
that to the best of my knowledge the work reported here in does not form part of
any other project report or dissertation on the basis of which a degree or award was
conferred on an earlier occasion on this or any other University/Institution.

Signature of the Guide

Name and Official Address of the Guide

Place:

Date:
 STUDENT’S DECLARATION

I, Mr. YADAVA HARI BABU hear by declare that Project Work Titled SALES AND
MARKETING is the original work done by me and submitted to the Chennai’s Amrita
International Institute of Hotel Management (Annamalai University) in partial
fulfillment of requirements for the award of Master of Business Administration in
Hospitality Management. This is a record of original work done by me under the
supervision of Prof. K. Shanthi of Chennai’s Amirta International Institute of Hotel
Management, Chennai.

Signature of the Student

Register no :
Date :
 ACKNOWLEDGEMENT

First and foremost, I would like to state my gratefulness to Mr. VIJAYA KUMAR (Sales
& Marketing Manager) for enabling me to complete this report in due time.

I would like to express my sincere gratitude to my internship faculty Prof

.K. Shanthi , Senior Lecturer, Chennai’s amrita international institute of hotel
management, Annamalai University for providing me with detailed feedback and
advice on this report. She gave me suggestions in order to make this study as
informative and useful as possible.

I would also like to express my at most appreciation to Mr. VIJAYA KUMAR for giving
me an in-depth knowledge about the sales and marketing and workflow of the
company is following as a whole. I would also like to thank all the other officials from
various departments for providing the necessary information about the organization.
Their guidance and co-operation helped me to get a better understanding of the tasks
performed at the organization.

I have also thoroughly enjoyed working on the internship report and hope the report
is appreciative.
 PROJECT INDEX

CONTENTS
SI.NO.
Chapter 1
1.1 Introduction

1.2 Problem statement

1
1.3 Need and Scope of the Study
1.4 Objectives of the Study
1.5 Methodology of the study
1.6 Limitations of the study
2 Chapter 2- Industry Profile
3 Chapter 3-Company profile
4 Chapter 4-Review of Literature
5 Chapter 5-Research Methodology
Chapter 6
6.1Findings
6
6.2 Suggestions

6.3Conclusion
7 Bibliography
 CHAPTER-1
INTRODUCTION
1.1 Introduction:
A Taj Hotels is an emerging/developing company, the top line and bottom line of the company is to
develop the business even more than current scenario. This development phase ought to be
supported by the customers of Taj Hotels. The customer’s satisfaction would be the greatest
influencing factor that would help the Taj Hotels development at this stage of growth. It also
determines the engagement level of customers so that it would increase loyalty towards the
company. By finding out the factors which increase/decrease the customer satisfaction the
company can improve themselves on the negative factors and can do extra addition for the positive
factors.
“Marketing is a total system of interesting business activities defined to Plan, piece,
promote and distribution want satisfying products & services to present and potential consumers”

I did my training program at THE GATEWAY HOTEL By TAJ. During the period of two and half months
I was able to experience the various function of marketing departments in the organization.

Incredible opportunity for a talented hospitality professional! Make a direct impact on the future
success of one of the leading and fastest growing hospitality setup!!
Our client is India's best luxury hotel chain. It is a branded luxury hotel aggregator that provides
guests with a consistent and standardized hospitality experience.

1.2 PROBLEM STATEMENT:

Competitors of Taj are prospering in the new global economy recognized that measuring corporate
sales and the customer satisfaction is the key. The basis of consumer satisfaction or dissatisfaction
lies in mankind’s ability to learn from past experiences – accordingly, consumer preferences are
constantly being updated by way of the learning process. Reward in turn, leads to an evaluation
that the purchase was satisfactory and hence it can exert an effect on brand beliefs and attitudes.
Given the vital role of corporate sales, a variety of research has been devoted to investigating the
determinants of satisfaction. In a competitive marketplace where businesses compete for
customers, customer satisfaction is seen as a key differentiator and increasingly has become a key
element of business strategy. Corporate sales and Customer satisfaction is considered to be one of
the most important outcomes of all marketing activities in a market-oriented firm. The obvious
need for satisfying the firm’s customer is to expand the business, to gain a higher market share, and
to require repeat and referral business, all of which lead to improved profitability. Studies
conducted by Cronin and Taylor (1992) in service sectors such as: banking, pest control, dry
cleaning, and fast food; found that customer satisfaction has a significant effect on purchase
intentions.

List of Abbreviation:
1. CeX: Customer Experience
2. &: and
3. %: Percentage
4. CP: Continent Plan
5. EP: European Plan
6. MAP: Modified American Plan
7. AP: American Plan
8. PMI: Property Manager Incentive
9. BAR: Best Available Rates
10. RR: Rack Rate, Repo Rate.

Ten C’s of SALES:

The conventional thinking on sales and marketing in startups goes something like this: ‘Build a
great product and customers will come’. This notion arising out of a factory mindset doesn’t take a
startup too far.
In today’s era of fast-failing and quick-learning product development cycles, customer development
should happen in parallel if not in advance vis-a-vis product development.
Here is a checklist of things that startups need to track. (The list is in no particular order):

1. Customers: Understanding the pain points of customers and the ability to have deep
conversations with them in a language they can understand helps you build stellar products and
services. Segment your customers based on sound logic, target them using appropriate channels
and position products and services that fit their needs well.
2. Community: Actively build communities around your products. Social media presence may not
result in immediate sales but it is important to build a community for learning from your potential
customers.
3. Content: Customers spend a lot of time and money searching and evaluating options before they
can procure and use your product. If you think about it, the features you pack in your product may
not do as much to the overall customer experience as providing content to help them make quick,
informed decisions. Producing useful content through blogs, white papers, collaterals etc. is very
crucial.
4. Competitors: Understanding the competitive landscape keeps you grounded and also helps you
come up with key differentiators. Understanding customer pain point is not enough. If your
competition is already addressing the pain point it becomes extremely important to identify key
differentiation.
5. Creativity: The sales and marketing function needs to be creative in order to test hypotheses fast
in the market and help the product development teams iterate rapidly on product ideas.
Overcoming barriers to adoption requires a lot of creative thinking and quick experimentation.
6. Conferences: It is important for the organization to own the mindshare on core ideas of the
company. Conducting conferences and events around these ideas helps build credibility and the
brand association.
7. Contacts: Generating leads and contacts is the bread and butter of the sales and marketing
function. Creatively unlocking new lead sources as well as finding ways to engage them are keys to
success. The sales and marketing functions need to eat, breathe and live the sales funnel.
8. Conversions: Be relentless and focus on converting your leads. As Alec Baldwin has famously said,
“Always Be Closing.” Schmoozing with the customers and coming back feeling good is not closing;
closing is all about #10 in the list.
9. CRM: Start a process oriented culture right after you get your second customer. Without a solid
process, sales and marketing teams can end up missing meetings, losing leads and not connecting
the dots on customer needs. Information about the customer is wealth.
10. Cash: All said and done, Cash is King!

1.3. NEED & SCOPE OF THE STUDY:

NEED OF THE STUDY:
This study mainly focuses on the corporate sales performance who are intellectually and
emotionally bound with the organization. The study will help the company to identify and ensure
that company is well-integrated with productive and involved employees. Customer satisfaction
analysis is needed and very important for the Taj Hotels to signify the factors that support the
positive customer view in continuous visit to Taj. The relationship between factors will give a
concrete idea on the most influential factors among many.

SCOPE OF THE STUDY:

 To know about the Operations of Taj Hotels.
 To know what kind of activities are done in hotels sector.
 To know about the customer response and behavior towards the Taj Hotels.
 To expand network of contacts with various stakeholders, owners and vendors.
 To apply business concepts and theories to real-world decision-making.

1.4. OBJECTIVES OF THE STUDY:

1. To get practical exposure in the corporate world.
2. To have a proper balance between the theory and practical knowledge.
3. To study origin, mission vision, and status of the organization.
4. To study the functional departments exist in the organization
5. To evaluate the effectiveness of the organization.
6. To study the problem areas in the organization
7. To provide some valuable suggestion to improve the efficiency in the organization.
8. To know about the Operations of Taj HOTELS.
Primary objective:
 To develop an understanding about customer satisfaction towards Taj Hotels
 To point out the factors/variables which are positively/negatively affecting the customer
satisfaction
 To give out recommendations based upon the analysis.

Secondary objectives:
 To identify whether the organization appreciate importance of Customer satisfaction.
 To study the extent to which employees are engaged.
 To identify the factors that contributes Customer satisfaction.
 To identify the level of customer satisfaction towards various hotel attributes like, quality
offered, quantity provided, varieties available, interior decoration, parking facility, drive-in
facility, neatness and cleanliness, amenities, price, tastes etc.
  To seek out the customers’ order of preference towards the various hotel attributes.

1.5 Methodology of the study:

RESEARCH PROCESS:
Before embarking on the details of research methodology and techniques, it seems appropriate to
present a brief overview of the research process. Research process consists of series of actions or
steps necessary to effectively carry out research and the desired sequencing of these steps.
1. Formulating the research problem.
2. Extensive literature survey.
3. Development of working hypothesis.
4. Preparing the research design.
5. Determining the research design.
6. Collecting the data by observation through personal interview by questionnaires.
7. Execution of the project.
8. Analysis of data.
9. Hypothesis-testing.
10. Generalization and interpretation.
11. Preparation of the report.

Research methodology is a way to systematically solve the research problem. It may be understood
as a science of studying now research is done systematically. In that various steps, those are
generally adopted by a researcher in studying his problem along with the logic behind them. It is
important for research to know not only the research method but also know methodology.” The
procedures by which researcher go about their work of describing, explaining and predicting
phenomenon is called methodology.” Methods comprise the procedures used for generating,
collecting and evaluating data. All this means that it is necessary for the researcher to design his
methodology for his problem as the same may differ from problem to problem. Data collection is
important step in any project and success of any project will be largely depend upon now much
accurate you will be able to collect and how much time, money and effort will be required to collect
that necessary data, this is also important step. Data collection plays an important role in research
work. Without proper data available for analysis you cannot do the research work accurately.
The study is mainly based on two sources of data. They are
Primary data
Secondary data
Primary Data
Interviewing a few Sales and marketing departmental heads, officers and management
bodies and staff members of THE TAJ GATEWAY HOTEL PVT LTD collected primary data. However,
the present study in based on secondary data.
Secondary Data

The present is mostly secondary resource of the data. These sources are the annual reports
and original records of THE TAJ GATEWAY HOTEL PVT LTD
1.6 Limitations of the study
The study was limited to only five years Business data.
The study is purely based on secondary data which were taken primarily from published annual
reports of THE TAJ GATEWAY HOTEL PVT LTD.
The study is based on only the past records.
The short span of time of 75 days for carrying out the study is also one of the limitations.
 CHAPTER-2
INDUSTRY PROFILE
2.1 Overview of Tata Group

Tata Group is an Indian multinational conglomerate company headquartered in Mumbai, India. It

encompasses seven business sectors: communications and information technology, engineering,
materials, services, energy, consumer products and chemicals. Tata group was founded in 1868 by
Jamsetji Tata as a trading company. It has operations in more than 80 countries across six
continents. Tata Group has over 100 operating companies with each of them operating
independently. Out of them 32 are publicly listed. The major Tata companies are Tata steel, Tata
Motors, Tata Teleservices, Titan Industries, Tata Communications and Taj Hotels. The combined
market capitalizations of all the 32 listed Tata companies was INR 6.8 Trillion ($ 109 billion) as of
March 2014. Tata receives more than 58% of its revenue from outside India.

A Tata group remains a family-owned business, as the descendants of the founder (from the Tata
family) own a majority stack in the company. The current chairman of the Tata group is Cyrus
Pallonji Mistry, who took over from Ratan Tata in 2012. Tata Sons is the promoter of all key Tata
companies and holds the bulk of shareholding in these companies. The chairman of Tata Sons has
traditionally been the chairman of the Tata group. About 66% of the equity of Tata Sons is held by
philanthropic trusts endowed by members of the Tata family.

The Tata Group and its companies & enterprises is perceived to be India‘s best-known global brand
within and outside the country as per an ASSOCHAM survey. The 2009, annual survey by the
Reputation institute ranked Tata Group as the 11th most reputable company in the world. The
survey included 600 global companies. The Tata Group has helped establish and finance numerous
quality researches, educational and cultural institutes in India. The group was awarded the Carnegie
Medal of philanthropy in 2007 in recognition of its long history of philanthropic activities.

2.2 History

Jamshetji Nusserwanjin Tata, founder of the Tata Group, opened the Taj Mahal Palace & Tower, the
first Taj property and the first Taj Hotel, on 16 December 1903. The building overlooks the Arabian
Sea. He decided to open the grand luxury hotel after an incident involving racial discrimination at
the Watson‘s Hotel after an incident involving racial discrimination at the Watson‘s Hotel in
Mumbai, where he was refused entry as the hotel did not permit Indians, who were non-white.
Hotels which accepted only European guests were then very common across British India. Jamsetji
Tata travelled to London, Paris, Berlin and Dusseldorf to arrange for materials and pieces of art,
furniture and interior artefacts for his hotel. The Taj Group has been active in converting former
royal palaces in India into world class luxury Hotels such as the Taj Lake Palace in Udaipur, the
Rambagh Palace in Jaipur and Umaid Bhawan Palace in Jodhpur. In 1974, the Taj Group opened
India‘s first international five star deluxe beach resort, the Fort Aguada Beach Resort in Goa. The Taj
Group also began its business hotel in Mumbai, in 1977, and opening the Taj mahal Hotel, Delhi in
1978. In 1980, the Taj Group took its first step internationally by opening its first outside India, the
Taj Sheba Hotel in Sana‘s, Yemen and in the late 1980s, acquired interests in the Crown Plaza –
James Court, London and 51 Buckingham Gate Luxury Suites and Apartments in London. In 1984,
the Taj Group acquired under a license agreement each of the taj West End, Bangalore, Taj
Connemara, Chennai and Savoy Hotel, Ooty, with which the Taj Group made its foray into
Bangalore. With the opening of the five star deluxe hotel Taj Bengal in Kolkata in 1989; the Taj
Group became the only hotel chain with a presence in the five major metropolitan cities of Mumbai,
Delhi, Kolkata, Bangalore and Chennai. Concurrently with the expansion of its luxury hotel chain in
the major metropolitan cities, the Taj Group also expanded its business hotels division in the major
metropolitan and large secondary cities in India. During the 1990s, the Taj Group continued its
geographic and market coverage in India. It developed specialized operations (such as wildlife
lodges) and consolidated its position in established markets through the upgrading of existing
properties and development of new properties. Taj Kerala Hotels & Resorts Limited was set up in
the early 1990s along with the Kerala Tourism Development Corporation

2.3 Taj Hotel

The Indian Hotels Company Limited (IHCL) and its subsidiaries are collectively known as Taj Hotels
Resorts and Palaces and is recognised as one of Asia's largest and finest hotel company.
Incorporated by the founder of the Tata Group, Mr. Jamsetji N. Tata, the company opened its first
property, The Taj Mahal Palace Hotel, Bombay in 1903. The Taj, a symbol of Indian hospitality,
completed its centenary year in 2003.

Taj Hotels Resort and Palaces comprises more than 119 hotels in 45 locations across India with an
additional 15 international hotels in 12 Countries in the Malaysia, United Kingdom, United States of
America, Bhutan, Sri Lanka, Africa, the Middle East and Australia.

Spanning the length and breadth of the country, gracing important industrial towns and cities,
beaches, hill stations, historical and pilgrim centres and wildlife destinations, each Taj hotel offers
the luxury of service, the apogee of Indian hospitality, vantage locations, modern amenities and
business facilities.

IHCL operate in the luxury, premium, mid-market and value segments of the market through

The following:

Taj (luxury full-service hotels, resorts and palaces) is our flagship

brand for the world‘s most discerning travelers seeking
authentic experiences given that luxury is a way of life to which
they are accustomed. Spanning world-renowned landmarks,
modern business hotels, idyllic beach resorts, authentic Rajput
palaces and rustic safari lodges, each Taj hotel reinterprets the
tradition of hospitality in a refreshingly modern way to create
unique experiences and lifelong memories. Taj also
encompasses a unique set of iconic properties rooted in history and tradition that deliver truly
unforgettable experiences. A collection of outstanding properties with strong heritage as hotels or
palaces which offer something more than great physical product and exceptional service. This group
is defined by the emotional and unique equity of its iconic properties that are authentic, non-
replicable with great potential to create memories and stories.
Taj also encompasses a unique set of iconic properties rooted in history and tradition that
deliver truly unforgettable experiences. A collection of outstanding properties with strong heritage
as hotels or palaces which offer something more than great physical product and exceptional
service. This group is defined by the emotional and unique equity of its iconic properties that are
authentic, non- replicable with great potential to create memories and stories.

Taj Exotica is our resort and spa brand found in the most exotic and relaxing locales of the world.
The properties are defined by the privacy and intimacy they provide. The hotels are clearly
differentiated by their product philosophy and service design.

Taj Safaris are wildlife lodges that allow travellers to experience the unparalleled beauty of the
Indian jungle amidst luxurious surroundings. They offer India‘s first and only wildlife luxury lodge
circuit. Taj Safaris provide guests with the ultimate, interpretive, wild life experience based on a
proven sustainable ecotourism model.

Premium Hotels (premium full-service hotels and resorts) provide a new generation of travellers a
contemporary and creative hospitality experience that matches their work-hard play-hard lifestyles.
Stylish interiors, innovative cuisine, hip bars, and a focus on technology set these properties apart.

The Gateway Hotel (upscale/mid-market full service hotels and resorts) is a pan-India network of
hotels and resorts that offers business and leisure travellers a hotel designed, keeping the modern
nomad in mind. At the Gateway Hotel, we believe in keeping things simple. This is why; our hotels
are divided into 7 simple zones- Stay, Hangout, Meet, Work, Workout, Unwind and Explore.

Ginger (economy hotels) is IHCL‘s revolutionary concept in hospitality for the value segment.
Intelligently designed facilities, consistency and affordability are hallmarks of this brand targeted at
travellers who value simplicity and self-service.

Taj Hotels Resorts and Palaces is committed to replicate its domestic success onto international
shores with plans to build an international network of luxury hotels, which will provide an
exemplary product-service combination and in the process create a global brand. The current
international portfolio includes luxury resorts in the Indian Ocean, business and resort destinations
in the Middle East and Africa, serviced apartments in the UK, the first hotel in Australia and three a
top-end luxury hotels in the US.

2.4 Industry swot analysis

Strengths
1. Group comprises 119 hotels in 55 locations across India with an additional 16 international
destinations
2. Employee strength over 13000 people
3. The perfect experience of Indian luxury living
4. Employee retention due to good brand image
5. Considered to be the most premium hotel chain in India
6. Top-of-the-mind brand recall
7. Total 14423 Rooms.
Weaknesses
1. Limited market share due to tough competition from international and domestic players means
2. Terrorist attacks left a question over the security
Opportunities
1. Introduce better membership plans
2. Improve hygiene standards
3. Upgrade to international methods of work
Threats
1. Other Heritage properties
2. Competitors upgrading to international standards of work ethic
3. Expectation of clients in terms of technological develop
Competitors
1. Leela Group of Hotels
2. Oberoi Hotels and Resorts
3. Hyatt
4. ITC Hotels
5. Marriot
 CHAPTER-3
COMPANY PROFILE
3.1 Introduction to the Gateway Hotel Vijayawada
The Gateway Hotel is a scenic spot for your stay in the financial capital of Andhra Pradesh.
Just look out your window for panoramic views of the Krishna River and surrounding hills.
Close to Vijayawada's business district and the city's best sights and attractions, this is an
ideal location for business or holiday travel. Guest may also enjoy the knowledge that they
are staying at the only hotel in the Vijayawada with a swimming pool and state-of-the-art
Health club.
Accommodations
108 rooms including 12 suites in which to unwind
High-speed internet & Wi-Fi available throughout the hotel
Vijayawada's only hotel with a swimming pool
Three meeting rooms and three banquet halls, including the largest pillar less banquet
Room in the city
Rooftop poolside venue for events
We have parking space at the basement level for over 200 cars, the largest in the city
Only 5 Star category Hotel in Vijayawada and 2nd in A.P.
Proximity
25 minutes from the domestic airport
15 minutes from the railway station
10 minutes from the Bus stand
Address: - 39-1-63, GV Estates, M.G Road, Vijayawada-10, Andhra Pradesh
Web Site: www.tajhotels.com, Tel: +91-866-6455899

Company profile

The Gateway Hotel is a scenic spot for your stay in the financial capital of Andhra Pradesh.
Just look out your window for panoramic views of the Krishna River and surrounding hills.
Close to Vijayawada's business district and the city's best sights and attractions, this is an
Ideal location for business or holiday travel. Guest may also enjoy the knowledge that they
Are staying at the only hotel in the Vijayawada with a swimming pool and state-of-the-art
Health club.

3.2 Type of Customers:

The main customers of hotels can be classified as follows:

1. Business customers
2. Luxury customers
3. Leisure customers
4. Wedding customers
1. Business customers:

These customers usually travel on expense account, so they will be looking for a hotel close to the
place where they are doing business, which secure so they don‘t have to worry about kidnappings
and robberies, that‘s clean and comfortable with food available either in hotel or close to it some
leisure activities Such as gym and pool.70% of the occupancy is by these slot of customers as a part
of developing city and nearby working zones.

2. Luxury customers:

These are the customer who expects the pampering and only the best of everything and has the
money to pay for it.

3. Leisure customers

These leisure customers also want all facilities as such as business customers, but there are paying
themselves so they want the best price they can get. Rate of leisure customers is less compared to
rest tourism spots.

4. Wedding customers

There are the customers who use conference rooms and ball rooms. They need enough parking to
deal with their expected crowd, and they want a good food services department to bring coffee and
pastries. These customers need a good planner. Keeping in point of Vijayawada functions are the
most nearby.

The Competitors:

Quality inn DV Manor – 115 rooms

3 F & B Outlets
Gymnasium
3 banquet halls maximum- 600 capacity

2) Fortune Murali Park – 94 rooms

3 f&b outlets
Coffee shop
Gymnasium
3 banquet halls maximum-1000 capacity.
3) Novotel – 280 rooms
The Business Environment:

The combination of internal and external factors that influence a company‘s operating situation.
The business environment can include factors such as: clients and suppliers; its competition and
owners; improvements in technology; laws and governments activities; and market, social and
economic trends.

Internal Environment:

The conditions, entities, events and factors within an organization that influence its activities and
choice, particularly the behaviour of the employees. Factors that are frequently considered part of
the internal environment include the organization‘s mission statement, leadership styles, and its
organizational culture.

External Environment:

The conditions, entities, events and factors surrounding an organization that influence its activities
and choices and determine its opportunities and risks. Also called operating environment.

Technology:

Gateway was an international content wholesaler and technology provider for the travel industry.
Our products allowed travel partners to easily compare rates and directly, flights, transfers and cars.
Worldwide there were more than 5,000 travel agents, OTA‘s, tour operators and airlines who used
Gateway‘s services daily.

Hotels - As a content wholesaler, Gateway provides room rates for 200,000 unique hotels
worldwide. There‘s a large variety in accommodation types, ranging from budget to luxury. These
can easily be compared and directly booked in our user-friendly booking tool, which is available in
different formats for your office and your business website

Flights - Our flight booking engine allows travel agents to compare and book published and
negotiated air fares, as well as fares from low cost carriers and charters in one single system.
Customize your flight system to guide your customers in the booking flow and show them the flight
they‘re looking for, with many cross-selling options and interesting features.
Transfers - This module allows travel agents to offer their customers a transfer service between
airport and hotel. Similar to the hotel module, several suppliers can be compared and the transfers
can be booked at the best net prices
Cars - To complete your travel package, you can offer your customers a rental car in more than 200
countries worldwide. The user-friendly interface allows to choose the best suited car and to manage
the reservation from beginning to end.
Oracle:
Oracle Hospitality delivers a wide range of software, hardware, and related services along with a
rapidly growing portfolio of cloud solutions to enable our customers in the hospitality industry to
provide superior service and experience to their guests anywhere.
3.3 swot Analysis
Strengths
High brand recognition
Technical innovations to improve customer experiences and Constant upgrade of business
processes
Good employee retention
Around over 78 countries
They have been in the industry for 93 years now making them real experts at what they do.
Good reputation in the market.
Weakness
Limited market share in spite of good brand recall
Operations are affected globally due to different Govt. policies and parameters
Opportunities
High potential in emerging markets
Innovation in customer services
Digitalization and better use of technology
Indian and as well as global hospitality sectors are looking at a boom
Threats
Entry of several international brands along with the strong hold of long standing, well established
Indian brands.
Competition on price point
Stagnated growth
Economic and political turbulence in most countries
3.4 Who’s who:-

Departmental Heads at the company:

Department Name Designation

Finance M Shankar Rao Chief Accountant

HR Susan Lazaro H R Manager

Sales & Marketing Vijay Kumar Sales Manager

Engineering V M N Malleswara Rao Chief Engineer

Food Production Sridhar Punna Chef In charge

F&B Service S V Ramana Murthy F&B Manager

 Security D. Mahesh Security In charge

House Keeping B. Shreedhar Executive Housekeeper

Front Office Jagath Changappa Front Office Manager

3.5 organisation structure

Game Plan

The Indian Hotels company Ltd is the largest Hotel Leisure and Hospitality company is south Asia.
The company's hotel business emphasizes the global operation of hotels and resorts in the Luxury,
Upper, upscale and Economy segments. The company's brand name includes Taj Hotels Resorts and
palaces, Vivanta by Taj Gateway Hotel and Ganger. Dedicated to the highest standards of
hospitality. Service and continuous innovation for over a hundred years the Taj group. Includes
Owned Leased and Managed hotels totalling 119 hotels, in 12 countries on 5 continents with 14423
rooms. Our aim is to be recognized as on of the top global hotels groups providing exceptional
customer satisfaction in each of ourhotels. The growth strategy of our group is to operate 20000
rooms in 25 major destinations around the World and achieve a group turnover ofus$2billion, with
33 shares from international operations by 2016.

3.6 Vision/ Mission

Statement of the Taj

Embrace Talent and harness expertise to leverage stander of excellence in the art of hospitality to
grow our international presence, increase demotic Dominance and creative value for all stake
holders.

Facilities & Services

Hotel Business Services include:
Audio/Visual Equipment
Business Centre-24 hrs
Laptop on hire, with prior intimation
Indoor and Outdoor banqueting facilities are available
Hotel Leisure and Other Services include:
24 hrs Front Desk
Airport Transfer - On Request
Astrologer On Call
Banquet Facility
Bar & Restaurants
Barber Shop
Beauty Salon
Bell - Desk Services
Car Rentals
Currency Exchange
Express Check in Check out
Facilities For the Physically Challenged
Florist
Health Club
Health/Ayurveda Centres
Hotel Safe
Internet Access Available in Rooms
Internet/E-mail/Fax Facilities
Interpreter Services
Laundry Services
Lounge
Luggage Storage
Medical Services-Doctor on Call
Phone-Two Telephone Lines in Rooms
Postal/Parcel Services
Room Service-24 Hrs
Travel Desk - Ticketing, Tours
3.7 Rooms & Suites

Gateway has 108 guest rooms including Stander (70) Superior Rooms (10), execute (10), Deluxe
Rooms (16) and Gateway suit (2). All the rooms are elegantly furnished and offer contemporary
amenities. All the rooms have full length glass windows.
Standard 70
Superior 10
Gateway Suits 02
Executive Suits 10
Executive Rooms 16
Total 108

Facilities in Rooms

42‖ Plasma TVs with satellite programs

Movable work table
Strong Task Lighting
2 line direct dial telephones
In-room tea/coffee makers
Mini bar
Wi-Fi Internet throughout the hotel

Room Types:

Superior Rooms

The hotel has elegantly styled and well appointed Superior Rooms, of 350 sq ft, that offer all the
mentioned amenities. Located on the third to seventh floors, these large rooms offer a choice
between city, hills and river views and include all the conveniences required for a pleasant stay.

Deluxe Rooms

The hotel has Deluxe Rooms, of 350 sq. ft., that offer enhanced in-room amenities and access to the
private lounge. Guests are also offered a choice of buffet breakfast at the private lounge or Café 17.

Luxury Rooms
The hotel has Luxury Rooms, of 550 to 650 sq. ft., that offer enhanced amenities, some of which are
partitioned into separate living and sleeping areas. In-room check in as well as Happy Hours at the
private lounge are offered.

Gateway Suit (Presidential Suite)

The hotel has a luxurious two-room Presidential Suite spreading across 1080 sq ft. The suite offers a
choice of special amenities and services:
Complimentary buffet breakfast at the Lounge from 0730 - 2200 hrs on the fifth floor
A bottle of wine in the room Happy hour at the Lounge from 1830 - 1930 hrs where we serve
cocktails with a selection of hors d'oeuvers
Tea / Coffee through the day in the Lounge
Use of the meeting room in the Business Centre for 1 hour (per stay), subject to availability
Complementary ironing (1 set per stay)
Personal butler on request

Executive Rooms

Located on the eighth floor, these large rooms showcase our best views of the city, hills and
river. They have standing showers, as well as bathtubs and offer complimentary breakfast.

Executive Suites

Located on me third to seventh floors, these contemporary rooms have a living room in
Addition to an extra spacious bedroom. They offer panoramic views of the city, hills and
River. They have a walk-in wardrobe, standing shower and bathtub and offer complimentary
Breakfast.

Hotel room rates

Categories Single Double
Standard 8000 9000
Superior 9000 10000
Executive 10000 11000
Executive Suite 15500 15500
Gateway Suite 23500 23500

Check in 14:00 hours Check out 12:00 Noon

Extra bed rate per Night 1050/-
Additional Occupant in the room 1050/-
Terms:
Taxes extra as Applicable

Tariff and taxes subject to change without prior notice.

Children below 12 years are accommodated at no extra charge
In the same room without extra bed on room only basis.
All the above tariff is on a per Night Basis

The tariff includes basic Wi - fi package

Access to Swimming pool and Health Club
Right of Admission reserved

Reservation

This is a section of the front office, which is the hub of the department, requests for reservation of
the room from various sources and the information‘s processed, properly documented, stored and
retrieve at the appropriate time induce a guest his room upon arrival. Rooms being a highly
perishable commodity (as the sale of rooms is linked with a time element) it is the duty of the
reservation department that rooms are not allowed to perish.

Sources of Reservation

The usual sources from which reservation sources are airlines, wholesale tour operators, travel
agents (local and foreign), free individual travelers, groups, companies leading hotels of the world
trust, instant reservation system, sales department, embassies, and institutions.

Types of Plans

A plan is a package proposal of rooms and meals, and some times even travel. A European plan will
include only a room whereas the rest of the services would be charged for American plan, which
would include meals usually breakfast and the evening meal as well as the room rental included in
the room rate. The packages offered by the hotel are inclusive of a airport transfer, breakfast at the
citrus and the room rate.

Guest History Card

This is done in order to give a guest extra attention and special care. It's usually done for repeat
clientele. For example some guest may like a non smoking room and some may like a hard mattress.
This is where the front office informs the housekeeping department or the relevant department
that special care must be taken in order to ensure a comfortable, carefree stay at the hotel.

All such information is maintained by the front office and is fed into the computer.
Rates followed by Reservation

A Rack Rate

This is the highest room rate charged by the hotel. It is the rate given to the guest who does not fall
into any particular category, such as a walk-in guest who requests a room for the night.

Corporate Rates
These are room rates offered to business people staying in the hotel.
This can be further broken down into Business people who are frequent guests (a specified number
of visits per week or per month) and guest who are employees of a corporation that has contracted
for a rate that reflects all business from that corporation.

Commercial Rates

These are room rates for business people who represent and have infrequent or sporadic patterns
of travel. Collectively this group can be a major segment of hotel guest and thus warrant a special
rate..
Group Rates

These are rates offered to a large group of people visiting the hotel for a common reason. The
marketing and sales department usually negotiates this rate with a travel agency or with a
professional organization.

Family Rates

These are room rates offered to encourage visits by families with children. This rate is offered to
families during seasonal or promotional times.

Day use Rate

A room rate based on the length of stay of a guest, which is applied to guests who use a room only
for 3-4 hours in a day.

Reservation Cycle
Receive guest call
Listen to guest request
Check for room availability
Create profile & ask for company, nationality, inner circle member.
If the guest is 1st timer then apply BAR rates.
Make reservation filling all the required details in the profile
Reconfirm the reservation, give the conformation no. to the guest.
Update in Fidelio, take print out.

3.8 Food and Beverage outlets:

Chinese Specialty Restaurants

A 66 cover Chinese specialty restaurants located at first floor with rich wood finish giving an
authentic Chinese ambience adding it to the experience of the dinner in our restaurant offers a
huge choice of A-la-carte Chinese delicacies including all regions of china for lunch and dinner. The
restaurants operates during Lunch and Dinner with delectable beverages ranging from imported
wines/spirits and cocktails.

The coffee shop

This 24 hour coffee shop offers a multi cuisine menu featuring continental, Chinese and Indian
favourites. The American style coffee shop located at the lobby level offers buffet and a-al-carte
choices with dispenses to cater to the needs of our clients. The live counter with the buffet offers an
extensive selection of tawa dished, pasta, biryani and chats. The only restaurants in the city to have
a huge chocolate fountain during lunch and dinner buffets. The coffee shop can accommodate 80
people at a time and an ideal place for casual dining.

Bar

The bar is located at first floor adjacent to the Chinese specialty restaurant with 32 covers operating
from 1200 hours till midnight offering a great selection of wines, spirits, and liquors. The beverages
range from Indian to imported brands to choose from. The bar has unique live entertainment
concept elevating the experience of bar in private.

Swimming pool

Located at the 10 floor, scheduled to open by December 2007. The pool opened from 07.00 hrs to
21.00 hrs.

Health Club
The hotel offers a choice of leisure and recreational activities and facilities that are ideal for guests
wishing to unwind. The Health Club has a state-of-the-art gym and a rooftop swimming pool.
Sightseeing and shopping trips can also be organized.

Health Club Facilities:

Fitness Centre- well equipped
Steam
Chill Shower
Roof top Swimming Pool
Jacuzzi – inbuilt cold water

Banqueting facilities

Gateway hotel, Vijayawada offers one of the largest banqueting facilities in the city, the hotels
offers 7 indoors and one outdoor venue that can accommodate between 10-1200 people. The
alfresco and pool side offer one of the most premium banqueting venues in the city. Located by the
swimming pool, these venues offer spectacular views of the Vijayawada city.

Categories of Banquets and Their Capacity

Grand Central 1 – 2000 Sq. feet

Grand Central 2 – 3000 Sq. feet
Grand Central 3 – 1400 Sq. feet
Forum 1 – 700 Sq. feet
Forum 2 -700 Sq. feet
Forum 3- 700 Sq. feet
Business Centre – 400 Sq. feet
Summit – 1100 Sq. feet

Guest Safety

The hotel is equipped with the latest firefighting equipment to fight any type of fire.
 CHAPTER-4
REVIEW OF LITERATURE

REVIEW OF LITERATURE:
4.1 Conceptual Review:
Anand, M.M. (1976) , in his study, makes an attempt to analyze the nature of this multidimensional
tourist plan whose activities range from the provision of comfortable lodging to facilitating a visit to
a national monument. He has examined the structure and working of the plan. He says that the
hotels and other supplementary accommodation are the core of the plan. According to him, the
first prerequisite for the development of hotel industry is the forecast of the future demand, which
would mean information about the number and type persons who would be making use of the
facilities. It is in terms of demand that the right supply, at right place, right time and at right price is
to be built up.

Getty, J.M., & Thompson, K.N, (1994),“The relationship between quality, satisfaction, and
recommending behavior in lodging decision.” A structural model is developed and tested that
relates customers' perceptions of how well lodging properties perform on multiple dimensions to
customers' perceptions of lodging quality, their satisfaction with the lodging experience, and their
willingness to provide positive word of mouth (WOM). Results suggest that customers' intentions to
provide positive WOM primarily are a function of their perceptions of the overall quality of the
property, rather than their expressed level of satisfaction with the stay.

Chen, L.J., Gupta, A., & Rom, W, (1994), “A Study of Price and Quality in Service Operations”
Studies the relationship between perceived price and perceived quality for the three types of
services, namely, pure, mixed, and quasi‐manufacturing classified by Chase and Tansik, and the
relative importance of five dimensions of service quality identified by Parasuraman et al. Finds
that the relationship between perceived price and the five dimensions of service quality appears to
be very weak for pure and quasi ‐ manufacturing services, but is statistically significant for mixed
service. Reliability dimension is statistically significant for all three types of service. Tangible
dimension is a critical variable for mixed service while the empathy dimension is important
forquasi manufacturing service. On the other hand, the relationship between perceived price and
overall service‐quality is significant for quasi‐manufacturing service, but is weak for pure and mixed
services.

Roger Hallowell, (1996), “The relationships of customer satisfaction, customer loyalty, and
profitability: an empirical study” It illustrates the relationship of profitability to intermediate,
customer-related outcomes that managers can influence directly. It is majorly a general
management discussion, consistent with the Nordic School’s view where services are highly
interdisciplinary, requiring a “service management” approach. This paper found that the customer
satisfaction is correlated with customer loyalty and customer loyalty in turn has correlation with
profitability of the customer. The researcher were unable to illustrate the causality because of its
reliance on OLS regression of cross-sectional data, does illustrate that customer satisfaction,
customer loyalty, and profitability are related to one another.

Fornell, C et al, (1996), “The American Customer Satisfaction Index: Nature, Purpose, and Findings”
The American Customer Satisfaction Index (ACSI) is a new type of market-based performance
measure for firms, industries, economic sectors, and national economies. The authors discuss the
nature and purpose of ACSI and explain the theory underlying the ACSI model, the nation-wide
survey methodology used to collect the data, and the econometric approach employed to estimate
the indices. They also illustrate the use of ACSI in conducting benchmarking studies, both cross-
sectionally and over time. The authors find customer satisfaction to be greater for goods than for
services and, in turn, greater for services than for government agencies, as well as find cause for
concern in the observation that customer satisfaction in the United States is declining, primarily
because of decreasing satisfaction with services. The authors estimate the model for the seven
major economic sectors for which data are collected. Highlights of the findings include that (1)
customization is more important than reliability in determining customer satisfaction, (2) customer
expectations play a greater role in sectors in which variance in production and consumption is
relatively low, and (3) customer satisfaction is more quality-driven than value- or price-driven.
Theauthorsconclude with a discussion of the implications of ACSI for public policymakers, managers,
consumers.
Amy k. smith et al, (1999), “A Model of Customer Satisfaction with Service Encounters Involving
Failure and Recovery” The authors developed a model of customer satisfaction with service
failure/recovery that is encountered based on an exchange framework that includes concepts from
both the consumer satisfaction and social justice literature, using principles of resource exchange,
mental accounting, and prospect theory. The research gives out a mixed-design experiment that
was conducted using a survey method, in which customer evaluated various failure/recovery
scenarios and completed a questionnaire with respect to an organization they recently had
patronized. The authors executed the research in the context of two different service settings,
restaurants and hotels. The results showed that customers prefer to receive recovery resources that
“match” the type of failure they experience in “amounts” that are commensurate with the
magnitude of the failure that occurs. The findings contributed to the understanding of theoretical
principles that explain customer evaluations of service failure/recovery encounters and provided
managers with useful guidelines for establishing the proper “fit” between a service failure and the
recovery effort.

Abraham Pizam and Taylor Ellis, (1999), “Customer satisfaction and its measurement in hospitality
enterprises” Defines the concept of customer satisfaction and analyzes its importance to services in
general and to hospitality/tourism services in particular. It follows up with a discussion on the
dimensions and attributes of satisfaction, lists the main methods of measuring satisfaction and
concludes with a review of global and cross-cultural issues that affect satisfaction.
Haemoon oh, (1999), “Service quality, customer satisfaction, and customer value: A holistic
perspective.” This paper proposes and tests an integrative model of service quality, customer value,
and customer satisfaction. It also provides preliminary results supporting a holistic approach to
hospitality customers’ post purchase decision-making process. It offers several important findings,
(a) the proposed, integrated model may be a useful framework for understanding consumer
decision processes as well as evaluating company performance more completely; (b) in particular,
customer value is an important variable (or construct) to be considered in service quality and
consumer satisfaction studies or vice versa; (c) service quality and customer value in combination
may completely mediate perceptions toward customer satisfaction; (d) perceived price has a
negative impact on customer value.

Stowe Shoemaker and Robert C. Lewis, (1999), “Customer loyalty: the future of hospitality
marketing” The aim of this paper is to present a framework for understanding customer loyalty.
They did this by examining the economics of loyalty. Then the paper defined loyalty and explained
the difference between frequency programs and loyalty programs. This also showed why
satisfaction does not equal loyalty. By doing these the authors introduced the Loyalty Triangle(,
which provides a framework for building customer loyalty. Each leg of the Loyalty Triangle(is then
examined in-depth, including examples of how hotel companies use the Loyalty Triangle( to develop
strategy. Next we present ways to measure the success of loyalty programs. It gives out 5 methods:
a) making comparisons between members and non-members
b) understand the impact of a program is to conduct research among the members who belong to
the loyalty program and ask them if their purchase behavior would remain the same or if they
would migrate to another company if the frequency program went away c) understand the impact
of a program is to examine the ROI both on a system basis and a property basis d) called “they
would have come anyway analysis”. This method works by calculating the cost of the total program
and the total revenue earned during the time the program is running e) understand the financial
impact of the program is to examine revenue lost because of a service failure that results in brand
switching.

Jay Kandampully and Dwi Suhartanto, (2000), “Customer loyalty in the hotel industry: The role of
customer satisfaction and image” This study helps us extend our understanding of the relationship
between customer satisfaction, customer loyalty and image. This is of considerable interest to both
practitioners and academics in the field of hospitality administration.

J. Joseph cronin, jr et al, (2000), “Assessing the Effects of Quality, Value, and Customer Satisfaction
on Consumer Behavioural Intentions in Service Environments” The following study both synthesizes
and builds on the efforts to conceptualize the effects of quality, satisfaction, and value on
consumers’ behavioral intentions. Specifically, it reports an empirical assessment of a model of
service encounters that simultaneously considers the direct effects of these variables on behavioral
intentions. The study builds on recent advances in services marketing theory and assesses the
relationships between the identified constructs across multiple service industries. Several
competing theories are also considered and compared to the research model. A number of notable
findings are reported including the empirical verification that service quality, service value, and
satisfaction may all be directly related to behavioral intentions when all of these variables are
considered collectively. The results further suggest that the indirect effects of the service quality
and value constructs enhanced their impact on behavioral intentions.

Bowen, J.T., & Chen, S, (2001), “The relationship between customer loyalty and customer
satisfaction. International Journal of Contemporary Hospitality Management” Develops and
implements a method for hotels to identify attributes that will increase customer loyalty. Other
hotels can replicate the methodology used in this study. The study makes the uses of the hotel’s
database to draw samples for both focus groups and a mail survey. Based on 564 completed
surveys from hotel guests, the authors found the relationship between customer satisfaction and
customer loyalty was non‐linear. The authors use the data to develop internal benchmarks for the
hotel based on scores that were representative of loyal customers. The study makes use of the
hotel’s database to draw samples for both focus groups and a mail survey.

Antonio, 2004,CRM is often described as a strategy or a set of activities a firm employs to increase a
competitive advantage in hotel industry. Antonio confirms that, “the essence of strategy is in
activities - selecting to perform activities differently or to perform different activities than rivals”
(Antonio, 2004). Therefore, if one agrees with the premise that CRM is a strategy, one can
reasonably deduce that CRM must consist of a series of activities that provide the hotel industry the
chance to get or maintain a competitive advantage over their competitors. Therefore, CRM that
presents a competitive advantage to a firm has not been fully explored in the CRM literature.
Consequently, it is necessary to spend some time to develop the link between CRM and competitive
advantage.

Dr.Premkumar (2006), in his article, emphasizes the use of common strategy to maximize revenue
in hotel industry - a practice referred as revenue or yield management. Revenue management is a
scientific technique that combines operational research, statistics and customer relationship
management and categorizes customer into price bands based on various services.

Evanschitzky, H., & Wunderlich, M, (2006), “An Examination of Moderator Effects in the Four-Stage
Loyalty Model” Oliver’s 1997 four-stage loyalty model proposes that loyalty consists of belief, affect,
intention, and action. Although this loyalty model has recently been subject to empirical
examination, the issue of moderator variables has been largely neglected. This article fills that void
by analyzing the moderating effects of selected personal and situational characteristics, using a
sample of 888 customers of a large do-it-yourself retailer. The results of multi-group causal analysis
suggest that these moderators exert an influence on the development of the different stages of the
loyalty sequence. Specifically, age, income ,education and expertise, price orientation, critical
incident recovery, and loyalty card membership are found to be important moderators of the links
in the four-stage loyalty model. Limitations of the study are outlined, and implications for both
research and managerial practice arediscussed., and marketing in general.

Ruchan Kayaman and Huseyin Arasli, (2007), “Customer based brand equity: evidence from the
hotel industry” The paper aims to explore interrelations of the four brand equity components;
brand awareness, brand loyalty, perceived quality and brand image in hotel industry and improve
the conceptualization of customer-based hotel brand equity. The paper is based on the
recommendations of previous studies, the scale constructed to measure consumer- based brand
equity included brand awareness, brand loyalty, perceived quality and brand image. The present
study used a sample of 345 actual customers from 11 different countries whose accommodation in
North Cyprus hotels was used to test the relations of the proposed model Path analysis. The
findings in this paper support the three-dimensional model of customer-based brand equity in hotel
industry. Brand awareness dimension was not found significant in the tested model for hotels. The
present study contributes to the understanding of customer-based brand equity measurement by
examining the dimensionality of this construct.

Heesup Han and Kisang Ryu, (2009), “the roles of the physical environment, price perception, and
customer satisfaction in determining customer loyalty in the restaurant industry” This research
paper tests the relationships among three components of the physical environment (i.e., décor and
arte facts, spatial layout, and ambient conditions), price perception, customer satisfaction, and
customer loyalty in the restaurant industry. It used the structural equation modelling and tested the
hypothesis. The three factors of the physical environment strongly influenced how customers
perceived price, and this price perception, in turn, enhanced customer satisfaction level and
directly/indirectly influenced customer loyalty. Décor and arte facts were the most significant
predictors of price perception among the three components of the physical environment.
Furthermore, both price perception and customer satisfaction played significant partial/complete
mediating roles in the proposed model. The paper provides potential ways for restaurateurs to
increase customer loyalty by improving their understanding of the roles of physical environment,
price perception, and customer satisfaction.

Hung-Hao Chen, (2009), “Development of a Model to Measure Customer Satisfaction with International
Tourist Hotels in Taiwan” The purpose of this study was to develop a customer satisfaction index
model that is associated with Taiwanese international tourist hotels and to spot any significant
differences in guests’ perceptions of service quality, hotel image, perceived value and customer
satisfaction based on gender, age, nationality, education, and annual income. The study utilized
Structural Equation Modeling to test the hypotheses and relationships among variables in the
proposed customer satisfaction index model. Results showed that the modified customer satisfaction
index model provided a uniform means of assessing the quality of customer satisfaction. This particular
customer satisfaction index could be a useful tool for evaluating customer satisfaction and would
provide a significant complement to conventional measurements of customer satisfaction.

Gandolfo Dominici et al, (2010), “Customer Satisfaction in the Hotel Industry: A Case Study from
Sicily” The usual Research on the topic of guest satisfaction, which translates into the consideration
of whether or not customers will return to a hotel or advise it to other tourists, is pivotal to the
success of the hospitality business. This paper tries to Neglect those hotel attributes considered
most important by guests, may lead to negative evaluation of the hotel, thus restricting the chance
of repeat patronage. We perform a qualitative analysis of a large hotel in Sicily (IT), the Sporting
Club Hotel in the town Cefalù, using the Critical Incident Approach (Hayes, 2008). Through the
analysis of this case we evaluate the overall customer satisfaction level for the hotel and for each
service supplied. We conclude discussing the result and proposing improvement in customer
satisfaction management of the hotel. This qualitative analysis of the Sporting Hotel of Cefalù (IT)
showed that the level of customer satisfaction is good both considering the overall evaluation and
the single services (6 out of 8 of the single aspects examined). Human resource management in
particular results to be especially effective in entertainment and restaurant service. The weakness
of the customer satisfaction management system of the hotel is that a structured CRM (Customer
Relationship Management) system has not yet been implemented. Even if a customer database
exists, the data collection is not even planned, and the data gathered can't be easily found and used
by management for marketing decisions. Any benchmarking information about customer
satisfaction levels is missing, so the management doesn't have a clue about what competitors are
doing.

Kisang Ryu et al, (2010), “The influence of the quality of the physical environment, food, and service
on restaurant image, customer perceived value, customer satisfaction, and behavioral intentions”
The purpose of this study is to propose an integrated model that examines the impact of three
elements of foodservice quality dimensions (physical environment, food, and service) on restaurant
image, customer perceived value, customer satisfaction, and behavioral intentions. Data were
collected from customers at an authentic upscale Chinese restaurant located in a Southeastern
state in the USA via a self-administered questionnaire. Anderson and Gerbing’s two-step approach
was used to assess the measurement and structural models. – Structural equation modeling shows
that the quality of the physical environment, food, and service were significant determinants of
restaurant image. Also, the quality of the physical environment and food were significant predictors
of customer perceived value. The restaurant image was also found to be a significant antecedent of
customer perceived value. In addition, the results reinforced that customer perceived value is
indeed a significant determinant of customer satisfaction, and customer satisfaction is a significant
predictor of behavioral intentions.

Heesup Han et al, (2010), “Switching intention model development: Role of service performances,
customer satisfaction, and switching barriers in the hotel industry” In this paper a field survey was
conducted at upper-midscale hotels. The results of the structural analysis revealed that both core
service and service encounter performances significantly affected customer satisfaction, and
satisfaction completely mediated the effects of service performances on switching intention. In
addition, findings from the tests for metric invariances indicated that components of switching
barriers (switching costs, relational investment, and lack of alternatives’ attractiveness) moderated
the relationships between satisfaction and switching intention. In particular, the role of satisfaction
derived from service performances in decreasing hotel guests’ intention to switch is greater when
they perceive high switching costs, relational investment, and lack of alternatives’ attractiveness.
Based on study findings, theoretical and practical implications are identified and discussed. They
found from the test for the effect of switching barriers that the components of switching barriers
moderated the influence of customer satisfaction rooted in core service and encounter service
performances on switching intention. The findings implied that the role of customer satisfaction
derived from core service or service encounter performances in diminishing switching intention is
greater when customers perceive switching costs, relational investment, and lack of attractive
alternatives.
Wang, Park, & Fesenmaier, 2011,The development of the mobile internet and the increasing
adoption of smartphones have influenced all aspects of people’s life, including the travel process
(Wang, Park, & Fesenmaier, 2011). A large number of customers nowadays engage smart phones
to conduct travel-related transactions (EyeforTravel, 2013). In addition, mobile apps installed on
smart phones offer a better user-interface and service delivery, so many major brands including
hotel firms have launched their own apps for the purpose of enhanced customer experiences
(Nysveen, Pedersen, & Skard, 2015). The mobile channel is suited for travelers because they can
stay connected and informed throughout their trips via smart phones (Wei & Ozok, 2005).

Trevis, 2014, The online booking stage today consists mostly of four major brands, Expedia,
Priceline, Orbitz Worldwide and Travelocity, which account for 95 % of the online bookings in the
US, the biggest global online market, according to a Forbes article (Trevis, 2014). European rivals
like Booking.com and big travel search companies such as Kayak extend the list of global players.
Additionally, direct bookings from hotel chains and major airlines contribute to the overall revenue
generation from online travel companies. The one homogenous characteristic all of the above
mentioned companies share is that their mobile applications do not show off any new nor
revolutionary element but rather are replicates of their existing web presence without necessarily
making use of the unique features of mobile devices. Travel start-ups, however, have successfully
managed to significantly grow in a highly competitive market making use of a mobile first
experience and building their product solely on the very purpose of users accessing it via mobile
devices.

4.2 RESEARCH REVIEW:

The hotel industry involves high degree of interaction between employees & guests andso provides
many opportunities for service failures to occur. Service quality issues have b een ofconcern to
researchers for close to twenty years & no. of projects focused on hospitality industry .For example,
McColl-Kennedy & White (1997), Pizam & Ellis (1999) considered consumer satisfaction in hotels &
mismatch between expectations & perceptions of Service Quality. In terms of measurement O’ Neill
(1996), used SERVQUAL (Parasuraman et al., 1988) in hotels inno0rthern Ireland used it in hotels in
Korea. Alternative measurement tools for the hospitality industry were developed by Wong et al.
(1999) for hotels in Australia (HOLSERV) & by Knutsonet al. (1991) (LODGSERV).

LOYALITY:
Loyalty of a firm’s customer has been recognized as the dominant factor in the business
organization’s success. This study helps us in extending our understanding of the relationship
between customer loyalty, customer satisfaction, and image. This is of considerable
interest to both practitioners and academics in the field of hospitality management. One of
the greatest challenges facing hotel organization today is ever- growing volume and pace of
competition. Competition has a major implications for the customer, providing: Increased choice
Greater value for money; and Augmented levels of service.
 There are two strategies most commonly used by hotel managers in order to gain a competitive
advantage; they are: Low-cost leadership through price discounting , and Developing customer
loyalty by providing unique benefits to customers Loyal customer is a customer who repurchases
from same service provider whenever possible and who continues to recommend or maintain a
positive attitude towards the service-provider.

RESEARCH GAP:
 Lack of marketing research orientation
 Inadequate upward communication
 Too many levels of management
 Not knowing various customer expectations.
 Employee role ambiguity
 Employee role conflict
 Poor Employee job fit
 Poor Technology job fit
 Inappropriate evaluation and reward systems
 Lack of empowered service employees
 Lack of teamwork
 CHAPTER-5
RESEARCH METHODOLOGY
Research Methodology:
The process used to collect information and data for making decisions for the study. It deals with
the following:

 Research Approach
 Type of data
 Research type
 Data collection
 Data analysis

5.1 RESEARCH DESIGN:

The study is descriptive in nature. Descriptive research, also known as statistical research, describes
data and characteristics about the population or phenomenon being studied. The research
approach involves selection of a representative sample by including all categories considering
demographic factors and hinge the respondent with a well conceived structural and undisguised
questionnaire for data.

5.2 SAMPLING DESIGN:

Sample design is the theoretical basis and the practice means by generalizing from characteristics of
relatively few of the comprising population. It is the method by which the sample is chosen.

5.2.1 POPULATION:

The population here is taken from hotel customers of Taj Hotels.

5.2.2 TARGET RESPONDENTS:

The target respondents of this study are the Customers Taj Hotel in and Vijayawada.

5.2.3 SAMPLING METHOD:

Collecting data about each and every unit of the population is called census method. The approach,
where only a few units of population under study are considered for analysis is called sampling
method. There are two main categories under which various sampling method can be put. Two
categories are:

Probability Sampling
Non- Probability Sampling

The sampling method adopted for the study is convenience sampling under non- probability
sampling.

5.2.4 SAMPLE SIZE:

Samples are taken from Taj Hotels existing customers. The selected sample size is 100 customers.
Samples were chosen using Convenience Sampling technique (Non Probability Sampling Technique).

5.3 DATA DESIGN:

There are two types of data:

 Primary
 Secondary

PRIMARY DATA are those which are collected afresh and for the first time and thus happen to be
original in character.

SECONDARY DATA, on the other hand, are those which have already been collected by someone
else and which have already being passed through the statistical process. The methods of collecting
primary and secondary data differ since; primary data are to be originally collected, while in the
case of secondary data, the nature of data collection work is merely that of compilation.

FOR THIS STUDY:

In this study, primary data has been collected directly from the respondents using a questionnaire
while the secondary data was collected from books, articles and the internet.

5.3.1 TYPES OF DATA:

The type of data used here is quantitative data type.

5.3.2 DATA SOURCE:

Data collection is most essential aspect of any research because the whole result of research
depends on the data and information hence, the methodology adopted by me to collect the data
final interpretation were through.

5.4 TOOLS USED FOR ANALYSIS:

Statistics has been defined as a science which provides tools for analysis and interpretation. These
methods are applied on the data collected for the purpose of decision making in various fields of
scientific inquiry.

5.4.1 DESCRIPTIVE ANALYSIS (PERCENTAGE METHOD):

Percentage method is an important statistical tool which has been used in the present study to
compare two series of data to enable the research to draw meaningful conclusion
5.4.2 INFERENTIAL ANALYSIS (STATISTICAL TOOLS):

Inferential statistics use a random sample of data taken from a population to describe and make
inferences about the population. Inferential statistics are valuable when examination of each
member of an entire population is not convenient or possible. Tools used in this study are:

 Factor analysis
 Regression analysis
 CHAPTER-6
FINDINGS AND SUGGESTIONS
FINDINGS AND SUGGESTIONS

6.1 FINDINGS

From the regression analysis we can find that the 7 variables are dissatisfying customers. They
are: TABLE 6.1: FINDINGS TABLE

Factors Variables

Price Affordability and within budget

Transparency in prices (i.e) No changes in described Vs actual prices

Fluctuating prices with demand

Offers and benefits compared to the competitors

Amenities Good working conditions of provisions (TV, Geyser, AC, Wi-Fi)

Food and beverages

CRM Swapping of rooms in unfortunate situational problems with the provided

room

Thus we have found out those under-price 3 factors, under-amenities 2 factors, under-CRM 1
factor are not satisfied up to the customer satisfaction. We have to consider these factors and
should drive up solution for these factors.
 6.2 SUGGESTION:

By analyzing the feedbacks of TAJ customers given by the organization I came up with
recommendations for each factors.

 PRICING ISSUES:

a) AFFORDABILITY

 TAJ thinks that Rs.5500 is the affordable price for rooms. But there may some other
concerns.

 5500 for tier 1 cities: Rs.5300 for the tier 1 cities is affordable and it comes under budget
with all the amenities.

 5500 for tier 2 cities: Rs.5400 for the tier 2 cities is not an affordable price and it doesn’t
come under budget as there are many more hotels that can provide all the same facilities within
the same budget. Thus Rs.5500 doesn’t come under the budget of customers.

Solution: TAJ can price the rooms according to the local market where they play. By analyzing the
local market’s hotel’s price we can price our rooms for the tier 2 cities. Thus we can satisfy our
customer in terms of affordability factor.

b) FLUCTUATING PRICE:
 Customers are finding difficulties by means of the fluctuating prices with respect to demand
factor.

Solution: To satisfy customer in terms of the fluctuating price factor TAJ can introduce the price
locking system (i.e.) price locking system helps the customer to lock the prices when they see it
and can unlock when they go in for booking. By locking the price the customer can be satisfied
without confusion of prices.

c) OFFERS:

 TAJ’s competitors are giving offers more comparing to TAJ. Thus customers are unsatisfied
with respect to offers.
Solution: As we are already providing 30% offers for the customers we can also provide offers for
the repeated customers. This can be done by giving loyalty points for the customers who are
repeatedly visiting TAJ more than 3 times. With the help of loyalty points we can provide offers so
that TAJ can satisfy their customers in the offer side.

 AMENITIES ISSUES:

a) WORKING CONDITION OF 6 PROMISES:

 The promises of TAJ such as good working condition of TV, AC, Geyser, wifi connection
etc. is an essential part in creating customer satisfaction at TAJ. But the sample hasn’t responded
as such. The customers are unsatisfied with the amenities provided.

Solution: For these amenities problem we can have Annual Maintenance contract, so that there
can’t be any problems that leads to unsatisfied customers. AC’s switches can be switched on
before the customers enter the hotel in every TAJ. The customers get delighted by doing the extra
effort.

b) FOODS AND BEVERAGES:

Solution: Instead of having regular menu for complimentary breakfast TAJ can have menus to
choose among.

 CRM ISSUES:

a) SWAPPING OF ROOMS:
 People find it dissatisfied when they are not given another proper room instead of the
improper rooms.

Solution: TAJ Hotels can have back up of rooms so that the customers can switch rooms
conveniently without any problem. In case of no back up of rooms TAJ can switch the customers to
the other nearby TAJ with transportation allowances.
 6.3 CONCLUSION

In today’s business, Customers are considered as the backbone of the company. Customer
Satisfaction plays pivotal role in any company’s improvement and it is the ultimate goal of
any organization. During this project I came to know different views of the customers
about the services provided to them in the Hotels. The study concentrates to find the
satisfaction level of customers towards the service provided by TAJ Hotels. From the above
discussions it is concluded that the customer satisfaction is most important part of any
industry. So it is the main responsibility of service industries to improve customer
satisfaction and quality of service which is beneficial to enhance the number of new
customers.

When the hospitality industries provide the best in class service than there is no need to
expand money on promotions and advertisement because a satisfied customer directly
promote the services of the hotel and this is directly the word to mouth communication or
promotion and it will be the most effective for particular hospitality industry.
 BIBLIOGRAPHY

Referred following tests and websites

Reports and manuals

Annual reports of the Taj gateway hotel Pvt Ltd., Vijayawada
Department Higher Officials
Websites
www.tajhotels.com
www.google.com
www.wikipedia.com