INTERNSHIP REPORT ON
LOYALTY PROGRAMS
AT
VIVANTA BY TAJ, BANGALORE
BY
TINA.R
USN NO: 1NZ13MBA47
Submitted to
VISVESVARAYA TECHNOLOGICAL UNIVERSITY, BELGAUM
In partial fulfillment of the requirements for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
Under the guidance of
INTERNAL GUIDE EXTERNAL GUIDE
SREOSHI DAS GUPTA ASHISH DATTANI
DEPARTMENT OF MANAGEMENT STUDIES NEW HORIZONCOLLEGE OF ENGINEERING Outer Ring Road, Bellandur Post, Near Marathalli, Bangalore, July 2015 LOYALTY PROGRAMS
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ACKNOWLEDGEMENT
I would like to place on record my deep sense of gratitude to Mr. Mohan Manghnani, Chairman, New Horizon college of Engineering, Bangalore, India for providing excellent Infrastructure and Academic Environment at NHCE without which this work would not have been possible.
I am extremely thankful to the HR Manager SHAMA BODRA and ASHISH DATTANI, Sales Manager, of Vivanta by Taj for the valuable observations, suggestions and encouragement, which helped me to complete the project.
I express my sincere thanks to Dr. MANJUNATHA, Principal of NEW HORIZON COLLEGE OF ENGINEERING for providing me the opportunity to conduct this research project.
I express by deep sense of gratitude to Dr. SHEELAN MISRA, Director of Dept. of management studies and my internal guide Asst Prof. SREOSHI DAS GUPTA Department of management studies for their insight and valuable guidance to do the project.
I also express thanks to my family members and friends for the love and support that they gave me during the time of the project.
Place: Bangalore TINA.R
Date : 10/4/2015 1NZ13MBA47
CONTENTS
CHAPTER PARTICULAR PAGE NO: NO: LIST OF TABLES
LIST OF CHART
I INTRODUCTION OF THE STUDY 1 1.1 INTRODUCTION OF THE STUDY 1 1.2 NEED OF STUDY 2 1.3 OBJECTIVES OF THE STUDY 3 1.4 SCOPE OF THE STUDY 3 1.5 METHODOLOGY 3 1.6 LITERATURE REVIEW 5 1.7 LIMITATION OF THE STUDY 10 II INDUSTRY AND COMPANY PROFILE 12
2.1 INDUSTRY PROFILE: - HOSPITALITY AND TOURISM 12 2.2 CURRENT AND FUTURE TRENDS IN HOSPITALITY AND TOURISM INDUSTRY 16 2.3 COMPANY PROFILE 17 2.4 SWOT 31 2.5 MCKINSEY7‘S MODEL 34 III THEORITICAL BACKGROUND OF THE STUDY 40 3.1 INFORMATION ON THE SUBJECT 40 IV ANALYSIS AND INTERPRETATION 54 FINDINGS, SUGGESTIONS, RECOMMENDATION AND V CONCLUSION 82 VI BIBLOGRAPHY i VII ANNEXURE iii
LIST OF TABLES
TABLE CONTENTS PAGE NO: 4.1 NO: Table showing Gender 54 4.2 Table showing Age profile of the Respondents 55 4.3 Table showing Vivanta by Taj is a contemporary and stylish 58 4.4 Tablehotel chain showing Worth paying a premium for staying at Vivanta 59 by Taj 4.5 Table showing Price 60 4.6 Table showing Overall experience 61 4.7 Table showing Points are based on how much you spend 62 4.8 Table showing Earning opportunity 63 4.9 Table showing Earning points is easy 64 4.10 Table showing Points can be earned only for one room 65 4.11 Table showing Process of redemption 66 4.12 Table showing satisfaction 67 4.13 Table showing Easy to reach higher 68 4.14 Table showing Gold and silver benefits are same 69 4.15 Table showing Suite upgrades 70 4.16 Table showing Personalised offers 71 4.17 Table showing Special deals and offers 72 4.18 Table showing More information 73 4.19 Table showing Customer support 74 4.20 Table showing Employees 75 4.21 Table showing Responsive 76 4.22 Table showing Reviewed 77 4.23 Table showing Visited 78 4.24 Table showing Marriott 79 4.25 Table showing Likes 80
LIST OF CHARTS
TABLE CONTENTS PAGE NO: NO: 4.1 Graph showing Gender 54 4.2 Graph showing Age profile of the Respondents 55 4.3 Graph showing Vivanta by Taj is a contemporary and stylish 58 hotel chain 4.4 Graph showing Worth paying a premium for staying at Vivanta 59 by Taj 4.5 Graph showing Price 60 4.6 Graph showing Overall experience 61 4.7 Graph showing Points are based on how much you spend 62 4.8 Graph showing Earning opportunity 63 4.9 Graph showing Earning points is easy 64 4.10 Graph showing Points can be earned only for one room 65 4.11 Graph showing Process of redemption 66 4.12 Graph showing satisfaction 67 4.13 Graph showing Easy to reach higher 68 4.14 Graph showing Gold and silver benefits are same 69 4.15 Graph showing Suite upgrades 70 4.16 Graph showing Personalised offers 71 4.17 Graph showing Special deals and offers 72 4.18 Graph showing More information 73 4.19 Graph showing Customer support 74 4.20 Graph showing Employees 75 4.21 Graph showing Responsive 76 4.22 Graph showing Reviewed 77 4.23 Graph showing Visited 78 4.24 Graph showing Marriott 79 4.25 Graph showing Likes 80
EXECUTIVE SUMMARY
The project work was done at VIVANTA BY TAJ, WHITEFIELD, BANGALORE in order to fulfill the requirement of MBA degree from Visvesvaraya Technological University. The main objective of the study is to assess the loyalty programs at Vivanta by Taj.
The growth and success of the organization depends on the Loyalty program. So it is essential to make study it through a survey conducted on the customers.
The Indian Hotels Company Limited (IHCL) and its subsidiaries are collectively known as Taj Hotels Resorts and Palaces and is recognized 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
The project report is divided into 5 chapter, chapter 1 includes introduction of study, objectives, need and scope of study, literature review and in chapter 2 includes industry and company profile, product and service profile, vision, mission, quality policy, SWOT analysis. Chapter 3 is all about Theoretical study of the project. Chapter 4 is about data analysis and interpretation. The findings and suggestions are then provided.
LOYALTY PROGRAMS
CHAPTER-1
INTRODUCTION
The project experience at Vivanta by Taj provided insight into the nature, functioning and various aspects of the organization. It was carried out for a period of 10 weeks from 8th December 2014 to 14th February 2014. The internship has helped me understand better about identifying a problem in an organization. My external guide and the organizational staff have provided me with various inputs which helped me. The formal and informal discussions with the executives provided me an idea on loyalty programs related aspects. It was also found that the organization had issues relating to loyalty programs.
The initial 15 days of the visit to the organization helped me to formulate the research problem, objectives, and designing the methodology. The next 10 days was usefully utilized in preparing the questionnaire and it was administered among middle management employees. The evaluation of the loyalty programs and employees perception on it was studied.
The study has provided a clear understanding, knowledge and perspective which were of immense value. Vivanta by Taj was born as a part of Taj Hotels Resorts and Palaces' brand look. The brand has 19 hotels to the new name. The Research on performance management system concentrates on evaluating the existing performance management system and to know the employee perception on performance management system.
NHCE, Department of management studies Page 1
LOYALTY PROGRAMS
The study helps to know, evaluate, and understand the existing gaps in the loyalty program. The company is interested to evaluate the existing loyalty programs to make it effective and efficient.
1.1 TOPIC CHOSEN FOR THE STUDY
The title of the study is ―LOYALTY PROGRAMS‖
1.2 NEED FOR THE STUDY
The Organization study done has clearly identified gaps in the existing Loyalty Program. If due attention is not provided in this problem area, it may lead to losing customers. The study was conducted to evaluate the existing loyalty program and to know the employee perception.
The study helps to evaluate customer and employee perception and provide suggestions. The report provides detailed information on industry and company profile which can be used by further researchers. The research designed adopted was Descriptive research.
Loyalty programs help organizations to increase customer loyalty and it also has its effects on customer retention and satisfaction. The study aims to identify and evaluate the existing loyalty programs of Vivanta by Taj. The customer and employee perception of the loyalty programs would go a long way in managing the customers better. The study is carried out to determine the gaps in the existing loyalty program. The organization will be able to improve their management of customers.
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1.3 OBJECTIVES OF THE STUDY
To evaluate the existing loyalty program keep company's customers and to retain their revenue To suggest a suitable method or strategy to improve the loyalty program
1.4 SCOPE OF THE STUDY
The study is confined to the hotel industry of Vivanta by Taj in Bangalore. The study was conducted to know the existing loyalty programs and customer perception on the loyalty program. The study covers various components of the loyalty program such as Recognition, Preferential treatment, Personalized service, Exciting reward scheme and Building relations with the customers.
1.5 METHODOLOGY ADOPTED
Statement of the Problem
The hotel Industry has grown leaps and bounds after liberalization process in India. The components of hotel Industry: tourism and hospitality has attracted regional, national, multinational players all over India and the world.
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During the organizational study, it was observed that the current loyalty program is not very effective. The Company‘s reward practices were found to be ineffective. The main problem facing the Vivanta by Taj is in the existing loyalty program.
This study is an attempt to evaluate the existing loyalty program and to know the customer and employee‘s perception about the existing loyalty program.
Type of Research
Descriptive research design has been adopted for the project. Descriptive research is concerned with acquiring accurately the characteristics of a particular individual, situation or a group. Population of the study covers customers of VIVANTA BY TAJ.
Sampling size
Vivanta by Taj has employees working in loyalty program sector. There are many customers who are part of the loyalty program. The study aims to know the perception of customers and employees in the company. So a convenience sampling method was used. The questionnaire was administered to 50 customers of Vivanta by Taj.
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Sources of Data:
Primary Data: In this study primary data has been collected by administering a structured questionnaire. Data was fed in Mini tab release 12.2 version Structured questionnaires was administered to 50 customers of Vivanta by Taj.
Secondary Data: Secondary data collected from various sources like articles, periodicals, magazines, newspapers, journals, publications at the national and international level. This information was helpful in finding out the existing contours of loyalty programs and it helped in identifying and formulating problem statement.
Tools for Data Analysis
Data analysis was done using various statistical methods like percentage analysis, simple average method, tables and charts were used.
1.6 LITERATURE REVIEW
Mark D. Uncles, Grahame R. Dowling, Kathy Hammond, (2003) "Customer loyalty and customer loyalty programs", Journal of Consumer Marketing, Vol. 20 Iss: 4, pp.294 – 316- Customer constancy presents a inconsistency. Many see it as chiefly an attitude‐based fact that can be predisposed significantly by customer relationship management initiatives such as the increasingly trendy loyalty and sympathy programs. However, pragmatic research shows that
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loyalty in competitive repeat‐buy markets is fashioned more by the inactive acceptance of brands than by powerfully‐held attitude about them. From this standpoint, the order‐enhancing potential of loyalty programs is more restricted than might be hoped. Reviews three different perspective on loyalty, and relate these to a structure for accepting customer loyalty that encompasses customer product loyalty, customer brand acceptance and customer brand trading.
Jie Zhang, Els Breugelmans (2012)- The Impact of an Item-Based Loyalty Program on Consumer Purchase Behavior. Journal of Marketing Research: February 2012, Vol. 49, No. 1, pp. 50-65. The authors conduct an empirical investigation of a new retail loyalty program (LP), called an item-based loyalty program (IBLP), in which price discounts are replaced by reward point promotions that need to be accumulated and redeemed later. The main objective is to examine its impact on various aspects of consumer purchase behavior and a retailer's sales revenue. They find that after a retailer switched from a conventional LP to the IBLP, consumers became more responsive to reward point promotions than to price discounts of the same monetary value, were no longer responsive to competitors' reward point promotions, and exhibited stronger cumulative reward point effects.
Yuping Liu (2007) The Long-Term Impact of Loyalty Programs on Consumer Purchase Behavior and Loyalty. Journal of Marketing: October 2007, Vol. 71, No. 4, pp. 19-35 Despite the prevalent use of loyalty programs, there is limited evidence on the long-term effects of such programs, and their effectiveness is not well established. The current research examines the long-term impact of a loyalty program on consumers' usage levels and their exclusive loyalty to the firm. Using longitudinal data from a convenience store franchise, the study shows that consumers who were heavy buyers at the beginning of a loyalty program were most likely to claim their qualified rewards, but the program did not prompt them to change their purchase behavior. In contrast, consumers whose initial patronage levels were low or moderate gradually
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purchased more and became more loyal to the firm. For light buyers, the loyalty program broadened their relationship with the firm into other business areas.
Asian Academy of Management Journal, Vol. 16, No. 1, 21–41, January 2011 Asian Academy of Management and Penerbit Universiti Sains Malaysia, 2011- UNDERSTANDING THE RELATIONSHIPS OF PROGRAM SATISFACTION, PROGRAM LOYALTY AND STORE LOYALTY AMONG CARDHOLDERS OF LOYALTY PROGRAMS Nor Asiah Omar1*, Norzalita Abd. Aziz2, and Muhamad Azrin Nazri Abstract- Loyalty programs have increasingly attracted interest in both academic marketing Research and practice. One major factor that has been increasingly discussed is loyalty.In this study we examine the influence of cardholders' satisfaction on loyalty (program loyalty and store loyalty) in a retail context, namely, in department stores and superstores. Data were collected from 400 cardholders of a retail loyalty program in Klang Valley, Malaysia via the drop-off-and- collect technique. Structural modelling techniques were applied to analyze the data. The results indicated that program satisfaction is not related to store loyalty (share-of-wallet, share-of-visit and store preference).
Journal of Marketing, Vol. 71 (October 2007), 19–35- Yuping Liu ―The Long-Term Impact of Loyalty Programs on Consumer Purchase Behavior and Loyalty‖ Despite the prevalent use of loyalty programs, there is limited evidence on the long-term effects of such programs, and their effectiveness is not well established. The current research examines the long-term impact of a loyalty program on consumers‘ usage levels and their exclusive loyalty to the firm. Using longitudinal data from a convenience store franchise, the study shows that consumers who were heavy buyers at the beginning of a loyalty program were most likely to claim their qualified rewards, but the program did not prompt them to change their purchase behavior. In contrast, consumers whose initial patronage levels were low or moderate gradually purchased more and became more loyal to the firm.
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Journal of Targeting, Measurement and Analysis for Marketing (2009) 17, 307–319; published online 9 November 2009- ―Designing competitive loyalty programs: How types of program affect customer equity‖ Loyalty programs are one of the most popular marketing strategies developed by firms across a broad range of industries. Despite the prevalence of these programs, there is only a limited amount of research that focuses on the stage before program implementation. The main purpose of this study is to formulate a theory of designing ex ante competitive loyalty programs, and subsequently to provide supporting empirical evidence. The author argues that loyalty programs could be classified into two types: monetary-based rewards and special treatment-based rewards. The author proposes a theory that posits that customer perceptions of the utility of loyalty programs differ between the two types of reward, and are contingent upon the relationship between the customer and the firm. Programs that are perceived favorably by customers will in turn create stronger attitudinal loyalty and higher customer profitability. Using settings of airline passengers and bank customers, the results of the research produce findings that monetary rewards are perceived to provide higher utility perceptions of customers in contractual relationships as compared to non-contractual relationships.
Farber and Wycoff's (1992) interviews with top sales performers at more than 50 companies also revealed that overcoming objections and closing were perceived as less significant than other behaviors. Like Rackham (1988), Farber and Wycoff (1992) stressed the importance of matching the solution to the customer's needs.
\ Review of the Theoretical Underpinnings of Loyalty Programs Conor M. Henderson, Joshua T. Beck, and Robert W. Palmatier University of Washington- A review of the extant literature reveals that the theoretical underpinnings of the majority of loyalty program research rest on psychological mechanisms
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from three specific domains—status, habit, and relational. We propose that to understand how loyalty programs actually work, a broader, more holistic research perspective is needed to account for the simultaneous effects across these three theoretical domains as well as both cross- customer and temporal effects. The contribution of this approach is a fresh research agenda advanced in 15 research propositions.
CUSTOMER LOYALTY RESEARCH - CAN CUSTOMER LOYALTY PROGRAMS REALLY BUILD LOYALTY- Loyalty programs are planned marketing labors that reward and therefore persuade loyal purchasing behavior. That is the behavior which is potentially helpful to the organisation.
Hospitality Loyalty Program Effectiveness Evaluation Rubric Nazia Charania University of Nevada, Las Vegas- This paper examines the various loyalty program strategies and design elements utilized within the hospitality industry and evaluates the implications of the various strategies on establishing and fostering loyalty among consumers within a hyper competitive industry. In order to maintain competitive parity, many programs have constantly lowered reward thresholds and increased program offerings, making such programs very costly and with little direct evaluation in their ability to stimulate true loyalty. In a society bombarded by loyalty programs in almost all industries, consumers are becoming very savvy in comparing their personal rewards to the effort and inconveniences incurred by enrolling. The success of many loyalty programs have resulted in the establishment of independent companies, while other programs struggle to stimulate revenue and true loyalty however exist due to the popularity among consumers. Relationship marketing specialists require a comprehensive tool to understand and evaluate the various elements of loyalty programs to ensure their profitability and success due to the substantial financial commitment by companies in operating such highly popular programs.
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Mr. Kotler Philip‘s book ―Marketing Insights From A to Z: 80 Concepts Every Manager Needs to Know‖ is the briefest yet best book. Mr. Kotler (2003) explains that in today‘s world, one of the serious problems the businesses are facing is not ‗a shortage of goods‘ but ‗a shortage of customers‘ (P. XI). Indeed, the number of Small and Medium Enterprises has been increasing but simultaneously the number of SME which fail and go out of business is also increasing.
Mr. Kotler (2003) writes: ―Marketing is not the art of finding clever ways to dispose of what you make. Marketing is the art of creating genuine customer value. It is the art of helping your customers become better off. The marketer‘s watchwords are quality, service, and value‖ (P XII). In his another definition of marketing, Mr. Kotler (2003) said ―Marketing management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, communicating, and delivering superior customer value‖ (P. XIII). This second definition gives a hint in the word ‗keeping‘ as highlighted because it is with this purpose of keeping the customers that one of the marketing concepts ‗Loyalty‘ was emerged.
Cornell University School of Hotel Administration- The Scholarly Commons-Michael McCall- ―The Drivers of Loyalty Program Success: An Organizing Framework and Research Agenda‖- Volume 51, Issue 1 35-52 Despite the proliferation of loyalty programs over the past three decades, evidence regarding their effectiveness in cementing customer loyalty remains mixed and often inconsistent. The current lack of understanding of what factors drive a successful loyalty program represents an important knowledge gap. Accordingly, this review (1) organizes current thinking on loyalty program management and (2) outlines an agenda for future research. This review is organized around three categories of drivers that affect loyaltyprogram effectiveness: program structure, reward structure, and customer factors.
Sharp and Sharp (1997) explain that in the last decade, loyalty programs gained considerable ―practical and academic attention in the context of customer retention and customer relationship
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management‖ (P. 474). They further explain that the simple objective of any loyalty program is to reward loyal customer behavior with special services or rebates and, at the same time, to promote this loyal behavior in order to achieve the economic benefit of long-term business relationships
Loyalty programs are not history old programs. According to Duffy (1998), these programs actually began to appear in early 1970s and mostly in airline industry. The competing airline companies introduced different flyer programs which rewarded customers based on mileage of flights which they were consuming. Duffy (1998) explains that based on these early version of flyer programs, as years passed, new generation of innovative award programs have arisen, which were being applied in many industries as marketers were seeking to replicate the successes in the travel industry.
Loyalty program membership: A study of factors influencing customers' decision- Retaining customers is more profitable for a company than acquiring new ones as the cost of retaining existing customers is far less than the cost of acquiring others (Reichheld and Sasser, 1990). Retaining customers not only helps in reducing marketing expenses (Duffy, 2003), it also helps in improving business through increased customer purchases - cross-buying and up-buying (Reichheld, 1996). Existing customers have also been found willing to buy things at a premium (Reichheld and Sasser, 1990). Customer retention is therefore, an attractive proposition; however, retaining customers may be easier said than done. In a recent study undertaken by Colloquy (2011, a publication of LoyaltyOne), it was found that only one in five customers (Indian), was loyal to his/her favourite brand.
1.7 LIMITATION OF THE STUDY
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The sample size chosen for the study constitutes only a small portion of the population it is based on data collected from 50 respondents The time was insufficient The study is only in respect to Vivanta by Taj, Whitefield Bangalore The sample group was restricted only to few customers
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CHAPTER 2
INDUSTRY PROFILE & COMPANY PROFILE
2.1 INDUSTRY PROFILE: - Hospitality and tourism
Hospitality and Tourism is often described as 'the pleasure industry' or 'the welcome industry'. It‘s an industry where communication is the key feature. It‘s also an international industry and will involve a range of inter-cultural encounters. The language of this industry is quite clearly English in an international context, but it is also the language of meeting needs, of providing high levels of service, of understanding people, of delighting people, of solving problems.
From a teaching point of view the emphasis is firmly on functional language – giving information, making recommendations, dealing with problems and so on – and on creating realistic situational practice where language functions can be demonstrated and developed alongside basic service-oriented performance.
The hospitality industry is a broad category of fields within the service industry that includes lodging, event planning, theme parks, transportation, cruise line, and additional fields within the tourism industry. The hospitality industry is a several billion dollar industry that mostly depends on the availability of leisure time and disposable income. A hospitality unit such as a restaurant, hotel, or even an amusement park consists of multiple groups such as facility maintenance, direct operations (servers, housekeepers, porters, kitchen workers, bartenders, management, marketing, and human resources etc).
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Hospitality is the relationship between the guest and the host, or the act or practice of being hospitable. This includes the reception and entertainment of guests, visitors, or strangers.
There is no official standard definition of what a hotel consists of. In simple terms, the Oxford English Dictionary online defines a hotel as ‗an establishment providing accommodation, meals and other services for travelers and tourists, by the night‘.
‗A hotel is an business that provides paid accommodation for a short-term. The stipulation of basic lodging, in era past, consisting only of a area with a bunk bed, a closet, a small table and a wash stand has been replaced by accommodation with modern services, including integral bathrooms. Additional features found in inn accommodation are a phone, an alarm clock, a TV, a safe, a mini-bar, and services for making tea and coffee. comfort features include bathrobes and slippers, a menu, and bathtubs. Larger hotels may provide added guest amenities such as a pool, gym, business centre, child care, conferences and social function..
The hotel industry is a mature industry marked by intense competition. Market share increases typically comes at a competitor‘s expense. Industry-wide, most growth occurs in the international, rather than the domestic, arena. The hotel industry may also have related activities including restaurants and cafes, gambling, sports and recreation, theme parks, retail operations, and other entertainment. Additionally, some members of the industry have expanded into long- term care.
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Hotel vary in size, purpose, and price.Hotels and main hospitality companies that function hotels have put broadly conventional industry standards to categorize hotel types. categories include the following;
Upscale luxury
An fashionable full service hotel capacity that offers luxury services, full service accommodations, on-site service restaurants, and the highest level of adapted and skilled service. Luxury hotels are usually classified with a four or Five Star rating depending on the nation and local arrangement principles. Examples may include: Ritz Carlton and Jw Marriott.
Full service
Full service hotels contain upscale full-service services with a large degree of full service accommodation, on-site full service hotels, and a variety of on-site services such as swim pools, a fitness club, children's playrooms, dance rooms, on-site seminar services, and other services. Examples may include: Starwood, Hilton.
Historic inns and boutique hotels
Boutique hotels are smaller independent non-branded hotels that often contain upscale services of changeable size in exclusive or close settings with full service accommodation. Some historic inns and boutique hotels are classified as luxury hotels.
Focused or select service
Small to medium-sized hotel establishment that propose a partial amount of on-site services that only supply and market to a definite demographic of traveler, such as the lone business traveler. Most select service hotels may still offer full service accommodation but may lack leisure
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services such as an on-site eating place or a pool. Examples include Marriott and Hilton Garden Inn.
Economy and limited service
Small to medium-sized hotel establishment that present a very partial quantity of on-site services and often only offer basic accommodation with little to no services, these facilities normally only supply and market to a specific demographic of customer, such as the budget-minded customer looking for a no accompaniments accommodation. partial service hotels often be short of an on- site eating place but in return may offer a limited free food and drink amenity such as on-site continental breakfast service.
Extended stay
Extended stay hotels are tiny to medium-sized hotels that present longer term full service accommodations compared to a older hotel. Extended stay hotels may offer non-traditional pricing methods such as a weekly rate that cater towards travelers in need of short-term accommodations for an extended period of time. Similar to limited and select service hotels, on- site amenities are normally limited and most extended stay hotels lack on an on-site restaurant. Marriott is an example.
Timeshare and destination clubs
Timeshare and Destination clubs are a form of belongings ownership also referred to as a holiday ownership involving the buy and ownership of an individual unit of accommodation for recurrent usage during a specific time period. Timeshare resorts often offer facilities similar that of a Full service hotel with on-site restaurant, pools, play grounds, and other fun-oriented services. Destination clubs on the other hand may proffer more restricted private accommodations such as private houses in a neighborhood setting. Examples of timeshare brands include Hilton Grand Vacations.
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Motel
A motel is a small cheap rooms establishment similar to that of a limited service hotel, but with direct access to individual rooms from the car park. frequent during the 1950s and 1960s, motels were often located bordering to a major road, where they were built on cheap land at the edge of towns. Motels are often considered the "lowest classification" type of a temporary housing accommodation and operate with smallest staffing level.
New motel building is unusual as hotel chains have been increasing economy limited service franchised property at expressway exits which compete for largely the same patrons, largely filling the market by the 1990s. Many of the motels which remain in function have joined national permit chains, changing to hotels, inns or lodges.
2.2 Current and future trends in hospitality and tourism industry
Tourists are becoming more concerned about the food they eat, and they are demanding quality ingredients when they travel, according to the Web site, which offers recommendations related to hotels, vacations, travel packages and travel guides.
Other trends that are, especially greater social network integration, caught my attention, too. The current and future trends in hospitality and tourism industry in 2014 are as follows:
1. Developing Web sites
3. Quality
4. Quality food ingredients
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5. Social networking
6. Mobile phones
7. Visual media
8. More international visitors
2.3 COMPANY PROFILE
The Indian Hotels Company Limited (IHCL) and its subsidiary are jointly known as Taj Hotels Resorts and Palaces and is familiar as one of Asia's major and finest hotel company. Built-in by the originator of the Tata Group, Mr. Jamsetji N. Tata, the company opened its first belongings, The Taj Mahal Palace Hotel, Bombay in 1903. The Taj, a figure of Indian hospitality, concluded its anniversary year in 2003.
Taj Hotels Resorts and Palaces consist of 93 hotels in 55 areas around India with an added 16 international hotels in the Malaysia, Maldives, Australia, USA, UK, Bhutan, Africa, Sri Lanka and the Middle East.
Straddling the length and breadth of the nation, gracing vital industrial towns and cities, hill stations, beaches, historical and pilgrim centers and wildlife destinations, each Taj hotel offers the luxury of service, the apogee of Indian hospitality, vantage locations, modern amenities and business facilities.
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IHCL operate in the luxury, premium, mid-market and value segments of the market through the following:
Taj (luxury hotels, full-service resorts and palaces) is our flagship brand for the world's most judicious travelers seeking bona fide experience given that opulence is a way of life to which they are adapted. Spanning world-rfamous landmarks, modern business hotels, restful beach resorts, true Rajput palaces and pastoral safari lodges, each Taj hotel reinterprets the habit of hospitality in a appetizingly modern way to create unique experiences and lifelong memories.
Taj Exotica is a resort and spa brand originate in the most striking and relaxing locales of the world. The property are defined by the solitude and familiarity they provide. The hotels are obviously differentiate by their product attitude and service design. They are centered around high end facility, intimacy and an surroundings that allows its guest unrivalled console and privacy. They are defined by a deep feeling of dear design and by their varied and diverse cooking experiences, faultless service and genuine Indian Spa sanctuaries.
Taj Safaris are wildlife lodges that allow travelers 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.
Vivanta by Taj Hotels & Resorts span options for the work-hard-play-hard traveler across metropolitan cities, other commercially important centers as well as some of the best-loved vacation spots. Stylish & sophisticated, Vivanta by Taj delivers premium hotel experiences with imagination, energy & efficiency.
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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 travelers 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 travelers who value simplicity and self-service.
IHCL operates Taj Air, a luxury private jet operation with state-of-the-art Falcon 2000 aircrafts designed by Dassault Aviation, France; and Taj Yachts, two 3-bedroom luxury yachts which can be used by guests in Mumbai and Kochi, in Kerala.
IHCL also operates Taj SATS Air Catering Ltd., the largest airline catering service in South Asia, as a joint venture with SATS (formerly known as Singapore Airport Terminal Services).
Additionally, it operates the Indian Institute of Hotel Management, Aurangabad since 1993. The institute offers a Four-year diploma, designed with the help of international faculty and has affiliations with several American and European programs.
2.3.1 History of Taj hotels, resorts and palaces
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The Company was incorporated in 1902 and it opened its first hotel, The Taj Mahal Palace & Tower, Mumbai, in 1903. The Company then undertook major expansion of The Taj Mahal Palace & Tower, Mumbai by constructing an adjacent tower block and increasing the number of rooms from 225 to 565 rooms. With the completion of its initial public offering in the early
1970s, the Company began a long term program of geographic expansion and development of new tourist destinations in India which led to its emergence as a leading hotel chain in India. From the 1970s to the present day, the Taj Group has played an important role in launching several of India's key tourist destinations, working in close association with the Indian Government. The Taj Group has a philosophy of service excellence which entails providing consistently high levels of personalized service and innovative means of improving service quality.
2.3.2 Vivanta by Taj Whitefield (upper upscale hotels)
Offers options for the work-hard-play-hard traveler across Metropolitan cities, other commercially important centers and some of the best-loved vacation spots. Stylish and sophisticated, Vivanta by Taj delivers premium hotel experiences with imagination, energy and efficiency. It's the flavor of contemporary luxury, laced with cool informality and charming Taj hospitality. Created for the cosmopolitan global traveler and bon vivant, Vivanta by Taj - Hotels and Resorts create experiences that will amuse, invigorate and inspire guests.
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The brand Vivanta was born as a part of Taj Hotels Resorts and Palaces' (also known as The Indian Hotels Company Limited) brand architecture exercise. With this the brand rolled over 19 of its hotels to the new brand. This brand architecture exercise was a part of their previous launch of The Gateway hotels which is marketed as an upscale brand. Vivanta by Taj is marketed as an Upper Upscale Brand which is flanked by the Taj in the top-end luxury department.
The term Vivanta comes from the term 'bon vivant', which signifies sophistication and appreciation for the good things in life and also from the attributes of vividness and vivacity.
2.3.3 Awards and Rewards:
Leaf Design awards for the best commercial building World Wide 2012 Singapore President‘s Design award for Hotel Design Travel and Leisure Award 2011- Top 2 Hotels in India, Best in Bangalore for Women Business Traveler Today‘s Traveler Award for Best New Age Service Design in Hospitality 2011 HA+D Award for Design Excellence in Hotel Architecture 2010 Building of the year (SIA) Architectural Design Awards 2010 Architecture Design Award , Singapore Institute of Architects Awards Interiors Award Commercial Projects (SIA) Design S, Push Showcase, Special Mention 2010 IAD Best Architect , Hospitality 2009 IAD best Interior designer 2009
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Trip Advisor top 10 trendiest hotels 2012
2.3.4 Promoters:
Cyrus Pallonji Mistry (Chairman) Raymond Bickson (MD & CEO) Mr. Anil .P. Goel (Executive Director- Finance) Mr. Abhijit mukerji ( Executive Director- Hotel operations) Mr.Mehernosh.S. Kapdia (Executive Director- Company Affairs) Ms. Deepa Mishra Harris (Sr. Vice President, Sales and Marketing) Mr. Veer Vijay Singh (Chief Operating Officer- Upper Upscale Hotels) Mr. Prabhat Verma (Chief Operating Officer- The Gateway Hotels & Resorts) Ms. Jyothi Narang (Chief Operating Officer- Luxury Division Taj Hotels, Resorts & Palaces) Mr. Uday Narain (Vice President- Strategy) Mr. Beejal Dessai (Vice President- Legal and Company Secretary)
2.3.5 Vision:
The Taj group of hotels commits itself to the overall improvement of the ecological environment. We recognize that we are not the owner but caretakers of the planet and owe it to our children and future generation of human kind. It is our responsibility not only to conserve and protect but also to renew and regenerate the environment in which we live and operate.
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Our commitment encompasses all actions related to our products, services, associates, partners, vendors and communities. We will partner and engage with our environment through EARTH : Environmental Awareness and Renewal at Taj Hotels. For us EARTH is not a program, nor a process; it is a way of life.
2.3.6 Mission:
We will become the most admired and responsible Company delivering sustainable value by: To create rewarding customer experiences through unique cuisine, culturally appealing architecture, and customer service. Operating our assets at benchmark levels. Executing projects safely, with predictable benchmark quality, cost and time. Growing the Taj businesses be it across the value chain or across geographies, and also in allied or new businesses. Driving Organizational Transformation that will make us have the conviction and capabilities to deliver on our strategic intent. Achieving our sustainability intent of ‗Leadership with Care‘, by having leading and best practices on Care for the Environment, Care for the Community, Care for the Customers and Shareholders, and Care for the People.
2.3.7 Quality policy:
Our Quality Policy Upholds Hazard Analysis and Critical Control Point (HACCP) Alliance standards and complies with ISO 9001 : 2000 norms.
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2.3.8 Product and service profiles:
Rooms/Restaurants/Banquets Sales of Foods and Beverages Management fees Other operating income Membership fees Rental income
2.3.9 Area of operations
Area of operations in India
AREA OF OPERATIONS TOTAL COMPANIES IN TOTAL COMPANIES INDIA OUTSIDE INDIA
77 15
2.3.10 Infrastructure facilities
Room‘s descriptions
1. Premium Indulgence Room/ Pool
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Includes Happy Hours And 24Hrs INR 500 SPA voucher Wi-Fi at Rhythm Lounge, , 2Hr Meeting room subject to availability Free Pressing,
2. Presidential Nirvana Suite
Presidential Nirvana Suite 1 Bedroom/ Pool View/ HSIA Available King Bed/ 95 Sq Mt/ / El Safe.
3. Deluxe Delight Room/ Garden
Deluxe Delight Queen Bed/ Room/ Garden View/ 32 Sq Mt/ HSIA Available/ El Safe.
4. Loft Suite 1 Bedroom/ Pool View
Includes Happy Hours Meeting room-subject to availability And 24Hrs Wi-Fi at Rhythm Lounge, INR 500 SPA voucher, free Pressing, 2Hr.
5. Superior Charm Room/ City View
Superior Queen Bed/ 32 Sq Mt Charm Room/ City View/ / HSIA Available/ El Safe.
6. Premium Temptation Suite
Includes Happy Hours And 24Hrs INR 500 SPA voucher Wi-Fi at Rhythm Lounge, , Free Pressing, 2Hr Meeting room-subject to availability.
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7. Deluxe Allure Suite 1 Bedroom
Includes Happy Hours And 2Hr Meeting room 24Hrs Wi-Fi at Rhythm Lounge, INR 500 SPA voucher, Free Pressing, -subject to availability.
2.3.11 Amenities
General Air conditioned
Pet friendly
No smoking rooms/facilities
Elevators
Ice machine
Activities Outdoor pool
Fitness center or spa
Fitness Center
Solarium
Sauna
Children's activities
Steam bath
Tennis
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Dining Bar/Lounge
Coffee maker in room
Restaurant
24 hour room service
Coffee shop
Poolside snack bar
Services 24 hour front desk
Business center
Laundry service
Security
Concierge desk
Wake-up service
Airline desk
In-Room Safe
Theater desk
Shops/Commercial services
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FAX
Car rental desk
Overhead projector
Barber/Beauty shop
Doctor on call
Conference facilities
Currency exchange
Audio visual equipment
Cellular telephone rental
Florist
Computer leasing
Internet High pace internet
Parking Valet parking
Free parking
Room DVD player
Radio
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Television with cable
Telephone
Safe
Phone with speaker
Kitchen
Free newspaper
AM/FM alarm clock
Mini bar
Microwave
Turndown service
Bathroom telephone
Shower
Sofa bed
Electronic door locks
Sprinklers in rooms
Iron
Smoke detectors
Trouser press
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2.3.12 Competitor’s information
There are many competitors for hotel industry and same is in the case of Vivanta by Taj. The lists of the competitors are:-
1. Marriott hotel
2. The Zuri hotel
3. Alila
4. The leela palace
5. Novotel
6. The Park Plaza
2.4 The Park Plaza Bengaluru delivers a refined, five-star experience in Bangalore. This hotel features landscaped greenery and natural lighting, adding a polished touch to the upscale surroundings. Conveniently located in the city centre, the Park Plaza provides easy access to the Outer Ring Road, which leads to major business hubs and IT parks. Nearby attractions include Bangalore Fort and the Krishna Temple. The Park Plaza Bengaluru delivers a refined, five-star
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experience in Bangalore. This hotel features landscaped greenery and natural lighting, adding a polished touch to the upscale surroundings. Conveniently located in the city centre, the Park Plaza provides easy access to the Outer Ring Road, which leads to major business hubs and IT parks. Nearby attractions include Bangalore Fort and the Krishna Temple. The Park Plaza Bengaluru delivers a refined, five-star experience in Bangalore. This hotel features landscaped greenery and natural lighting, adding a polished touch to the upscale surroundings. Conveniently located in the city centre, the Park Plaza provides easy access to the Outer Ring Road, which leads to major business hubs and IT parks. Nearby attractions include Bangalore Fort and the Krishna Temple. The Park Plaza Bengaluru delivers a refined, five-star experience in Bangalore. This hotel features landscaped greenery and natural lighting, adding a polished touch to the upscale surroundings. Conveniently located in the city centre, the Park Plaza provides easy access to the Outer Ring Road, which leads to major business hubs and IT parks. Nearby attractions include Bangalore Fort and the Krishna TempleSWOT ANALYSIS
The swot analysis of Vivanta by Taj Whitefield Bangalore includes:-
Strength
Strong brand name Has achieved many Awards Huge property Includes many products High quality staff and other man power resource Good financial stability High quality products and services Beautiful infrastructure Brand loyal customers
Weakness
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New company with new technology
Opportunities
Expansion
Huge market to capture
New company establishing acquiring new clients
Threats
New company offering product at lower price.
Competitors
Changing needs , taste and preferences of customers
Retaining the old customers
2.3.14 Future growth and prospects
The Company continued its focus on consolidating past commitments in terms of project completion, opening of new hotels and growth through management contracts in the Domestic and International markets.
The past year witnessed opening of seven new hotels including two ‗Vivanta by Taj‘ hotels in Madikeri, Coorg and in Gurgaon, NCR. The Company also concluded the soft opening of the Taj
Palace Hotel, Marrakech, Morocco and also increased the Ginger footprint by opening four hotels in Chennai (Vadapalani), Faridabad, Mumbai (Andheri) and Bangalore (Koramangala).
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The ‗Vivanta by Taj‘ brand will witness further growth with the execution of an Memorandum of Understanding (MOU) for a 282 room hotel in Faridabad, NCR.
In addition to the Vivanta by Taj hotel at Dwarka, New Delhi, slated to open in2013-14, Vivanta by Taj, Guwahati, is progressing well wherein earthwork excavation works have been completed, foundation works and mock-up room execution is in progress. Substructure works are in progress at the Vivanta by Taj, Amritsar, owned by a subsidiary of the Company.
The Company, through one of its associate companies, has largely completed the up gradation works at Vivanta by Taj, Bentota, Sri Lanka including renovation of Guest Rooms, Coffee Shop, Bar, Lobby, and the poolside.
Taj Samudra Hotel, Colombo, Sri Lanka, the flagship property of one of the associate companies will be undergoing large scale renovations this year, wherein larger rooms will be introduced along with a Grand Presidential Suite and a Club Lounge. Key public areas such as the lobby, tea lounge and bar will also be renovated. As a first step to this renovation, two mock up rooms were executed during the year and have been approved by management for roll out in this year.
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2.5 MCKINSEY7’S MODEL
THE HARDS:
The 3s across the top of the model are described as ―Hard Ss‖
STRUCTURE: The basic organization of the company, its department, reporting lines, areas of expertise & responsibility (how they are in interrelated).
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STRATERGIES: The direction and the scope of the company over long term.
SYSTEMS: Formal and informal procedure the governs everyday activity, converting everything from management information system, through to the systems at the point of contact with the customer (retail systems, call centres systems, online system, etc)
THE SOFTS:
The 4S across the bottom of the model are describe as ―Soft Ss‖
STAFF: The Company‘s people resources and how they are developed, trained and motivated.
STYLE: The leadership approach of top management and company‘s overall operating approach.
SKILLS: The capabilities and competence that exist within the company, what are they be at?
SHARED VALUES: They are the values and beliefs the company carries. Ultimately they guide employee towards ‗Valued‘ behavior.
7s with reference to the company
1) STRATEGIES:
Strategy is defined as the plan course of the action in allocating resources
They follow segmentation strategy, they operate in the luxury, premium, mid- market and value segments of the market.
Advertisement of premium brand at affordable prices unique concept like jiva Spas, Taj air etc to delight their customers.
2) SYSTEM:
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Operations performed by managerial staff and frontend employees.
Feedback with its guest.
Maintain database of their clients.
3) Structure:
The structure of the company is from top to bottom.
Reversal role wherein people from one team keep exchanging roles, decision making and controlling is centralized.
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The structure of the company is as follows:
General Manager
Food Front Kitchen HR Finance Sales Materials Security Spa L& Enginee
& office D ring Beve (Fo)
rage
DOS
F&B FO Executive HR Financial Material Security Man Manager
man man Chef ma Controller manager manager ager ager ager nag
er Ass. Sales Ass. Staff Chief manager Ass. Material Security Engg Ass. Fin manager manager Ass. Ass. Staff Ass. HR manager F&B FO manag Executive man man er Deputy chief engg ager ager Staff Staff
Staff Staff Staff Staff Coordinator Team member
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4) STAFF: Best employee of industry who can satisfy and gratify the customer effectively and efficiently to ensure that a through recruitment and selection process is done, assigning the right people to the right job.
Total Number of staff in Vivanta By Taj are as follows:
Managers Supervisors Staff Total
Male Female Total Male Female Total Male Female Total Male Female Total
35 10 45 20 5 25 228 20 248 283 35 318
No. of Trained Staff:
Managers Supervisors Staff Total
No. No. No. No.
45 25 145 215
5) SKILLS:
Service mentality
Immediate response
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Operations excellence
Networking skills
Attention to detail
6) SHARED VALUES:
People diversity
Passion for excellence
Increase the expectations
Innovation
Social responsibility
Joy at work
7) STYLE:
Leadership style
Internal mobility process
Safe environment (encourage the employees)
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CHAPTER 3
THEORETICAL BACKGROUND OF THE STUDY
Loyalty program
A loyalty program is a term that is used to describe a program that rewards customers for making purchases from the same vendor or company. Loyalty programs may offer prizes, reward points, future discounts and other incentives designed to keep customers coming back and doing repeat business with you.
Loyalty programs are set marketing that reward and therefore give confidence to loyal buying behavior. That is the behavior which is potentially helpful to the firm. In marketing a loyalty card, rewards card, points card, advantage card, or club card is a plastic or paper card, look similar to a credit card, debit card, or digital card that identifies the card holder as a member in a loyalty program. Cards have a barcode or magstripe that is to be scanned, some are chip cards or proximity cards. Small keyring cards (also known as keytags) which are used as key fobs are often used for convenience in carrying and ease of access.
By showing the card, the purchaser is at liberty to either a money off on the present purchase, or an allocation of points that can be used for later buying. The store uses cumulative data internally and externally as part of the marketing research. These cards can be used to decide, for example, a customer's favorite brand of beer.
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Loyalty programs is a form of national virtual money, one with unidirectional flow of cash, since reward points can be exchanged into aproduct or service but not the other way round.
The basic principles are simple, too: know your customers, and only reward them for behaving in the way that you want.
Companies typically have several goals when launching loyalty programs, all of which are focused on generating greater profits from the program‘s members. These goals include
• Improving knowledge of the customer
• Leveraging that knowledge to increase the sales of undersold and/or highly profitable products/services
• Increasing customer retention and purchase frequency
Types of Loyalty Program
1) Direct Marketing- Direct marketing can take many forms - catalogues, TV Shopping, Direct response TV, infomercials, direct mail, cold-calling, internet etc. Anytime you try to sell something directly to the end user rather than going through some third-party distribution arrangement you are doing direct marketing. Direct does not necessarily imply a customer database, although there is usually some kind of transaction records.
2) Database Marketing- True database marketing creates a feedback loop where customer behaviour is analyzed and taken into account when designing the next communication. When no customization based on profiles is done, it's really mass marketing. Any marketing
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approach taking advantage of customization is data-based marketing, so all the methods below would be included under the database marketing umbrella.
3) Loyalty Program Marketing- Relationship marketing with a currency, a store of value that tries to keep the customer "locked up" with a company. The rewards are desirable to the specific customer base. Generic loyalty programs almost always fail. If you‘re doing a magazine loyalty program and you offer subscriptions to interesting books instead of over- priced cameras for rewards, you‘ll do better with the customers. The program is kept fresh and exciting, with a constant variety of things to involve the customer with, including refreshing of the rewards catalog, point auctions, etc.
4) Permission Marketing- Relationship Marketing with a gentler hand on the communications issues. It‘s a superb idea, and concerns the protocol of communication between a business and their customers over the Life Cycle. Permission marketing states when communicating with customers, you should be anticipated, be personal, and be relevant. The customer‘s definition of these three ideas would naturally change over time, so you have to listen to the customer and engage in dialogue.
5) CRM (Customer Relationship Management)- RM represents the business philosophy required to accomplish the 1-to-1 marketing vision. Unfortunately, many people have come to equate CRM, which is really a strategy, with the tools and software which allow a firm to execute the strategy. Along those lines, CRM has been divided according to the functionality of software tools: Analytical CRM - the use of data modeling and profiling to accomplish CRM goals Collaborative CRM - the tools used to directly engage and interact with customers
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Operational CRM - the "back end" systems which unify the business and deliver products
6) Relationship Marketing- In relationship marketing, you listen to the data and try to hear what it‘s telling you. Many database marketing types just use the database as a list and mail things to it; relationship marketing implies a deeper knowledge of the customer and some kind of give and take. In relationship marketing, there is acknowledgement of a customer Life Cycle, and marketing is viewed as a process rather than a series of seemingly unconnected events.
Frequent-flyer program (FFP) is a loyalty program offered by many airlines. Typically, airline customers enrolled in the program accumulate frequent-flyer miles (kilometers, points, segments) corresponding to the distance flown on that airline or its partners. There are other ways to accumulate miles: In recent years, more miles were awarded for using co-branded credit and debit cards than for air travel. Acquired miles can be redeemed for air travel, other goods or services, or for increased benefits, such as travel class upgrades, airport lounge access, or priority bookings. Miles is acquired for each stay at the hotel.
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BENEFITS OF LOYALTY PROGRAMS
1. Greater Customer Knowledge- A loyalty program enables a company to gain detailed knowledge about its customer base with the customer‘s consent; customers actually want to provide transaction and detailed profile information to ensure that they receive the full benefits of being a member of the program.
2. Increased Customer Retention- A well-honed loyalty program improves customer retention rates, by increasing a member‘s ―switching costs,‖ which are costs a member would bear in order to switch to a competing provider. These costs can include decreased service and the time and resources required to build a new relationship. The higher a member‘s switching costs, the more likely that member is to remain loyal.
3. Differentiated Service and Brand Equity- A loyalty program provides this detailed information on transactions, demographics, and personal preferences required to successfully identify the unique groups among a company‘s customer base and then design products or services that meet those segmented members‘ needs. For example, retailers can use their loyalty data to ensure that the products desired by high-value customers are always in stock, are easy to find and reach, and are prominently displayed. For example, 83 percent of hotel guests say that personalized service and attention to their needs provides value. It is ―value,‖ rather than price, that defines a good deal for these customers.
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4. Improved Profitability- All of the benefits discussed to this point lead to a loyalty program‘s key goal and most important metric of success: improved profitability. Greater profits are a result of • Profitable customer retention • Higher prices paid for unique products/services • Increased average purchase size • Decreased marketing and systems costs • Decreased unsold expired inventory
LOYALTY PROGRAM COSTS
Despite their many benefits, loyalty programs can be expensive to develop and maintain. The costs associated with loyalty programs generally fall into two categories: program costs and system costs.
Program costs are nontechnical expenses related to administering the program‘s points, rewards, and services. System costs are those invested in the technical infrastructure to support the loyalty program. Although some costs are directly attributable to the program— for example, loyalty program management software—there are other costs a company would likely incur even without a loyalty program, such as marketing software and hosting a Web site. However, even these costs can be increased due to factors such as integrating the marketing software with loyalty software or providing additional loyalty-related functionality on the company Web site.
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5. LIMITATIONS OF CURRENT LOYALTY PROGRAMS
1) Incorrect Strategy- many reasons for the failure of current loyalty programs to deliver value. First among them is that most companies do not follow an optimal loyalty program management strategy. The three most common strategic mistakes are Failure to understand and manage the long-term nature of loyalty Failure to differentiate members by value Implementation of customer value tracking schemes that do not match members‘ true value
2) Inadequate Technology- Even when leading-edge companies recognize the strategic problems inherent in their loyalty programs, they are often hampered in their efforts to address these problems by significant technology limitations. In the past, loyalty systems have often prevented companies from offering a precisely targeted, highly valued loyalty program. Firms were typically provided a limited set of choices: Inflexible legacy systems with high maintenance costs Poorly integrated point solutions with limited functionality
3) The Net Result: Costly, Ineffective Loyalty Programs - Loyalty programs are supposed to increase a customer‘s loyalty to the host company by creating a unique value proposition that competitors cannot easily match. However, strategic and technology limitations have left many companies with loyalty programs that do not provide a significant competitive advantage.
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DESIGNING AN OPTIMAL LOYALTY PROGRAM
The popularity of loyalty programs has led numerous companies to offer loyalty programs that simply mimic the program offered by the leader in their industry. Rather than providing a competitive advantage, this strategy simply creates a competitive stalemate while driving up expenses due to the cost of maintaining the loyalty program.
Step 1: Identify key customer interaction points.
Step 2: Map associated business processes.
Step 3: Identify desired business outcomes.
Step 4: Identify key profitability drivers.
Ensuring Customer Loyalty: Designing Next-Generation Loyalty Program Page 17
Step 5: Design an integrated marketing strategy.
Step 6: Define loyalty analytics requirements.
Step 7: Segment members.
Step 8: Design the incentive structure.
Step 9: Define the partnering strategy.
Step 10: Choose the appropriate technologies and vendor.
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7 criteria for selecting Loyalty Programs
1. Efficiency – Low cost 2. Effectiveness – Likelihood to succeed 3. Adaptability – Strategic fit with culture 4. Consistency – Works well with marketing plan 5. Competitive advantage 6. Ease of implementation 7. Projected profitability
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TAJ LOYALTY PROGRAM
The innercircle promise
Recognition Preferential treatment Personalized service Exciting reward scheme Building relations An enhanced customer experience An array of privileges and rewards
Enrollment into the taj inner circle
The process is simple and easy There is no membership fees Fill in the enrollment form at the time of check in or during stay Guests will retain the temporary blue card with his membership number The completed enrolment forms should be collated and sent to the tic membership number The completed enrolment forms should be collated and sent to the tic membership center everyday
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Membership levels
Blue
o entry level enrollment
o No transaction to maintain active status
o 1 point is equal to rupees 100
Silver
o 25 000/- in a continuous period of 60 days to upgrade from blue
o 1 point is equal to rupees 100
o 250 points in 60 days gets you silver.
Gold
o 200 000/- spent in 12 months to upgrade to silver
o 1 point is equal to rupees 80
o 2000 points in the year gets you gold
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Membership eligibility
Individual traveler only Individuals who are aged 18 years and above
Validity: the points accumulated will be valid for 4 years
Software used:
loyalty online- points and packages central program- serenata- guests details
Benefits and privileges- silver
10% off on taj holidays offers when you make your reservations directly with them at the hotels or website
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10% off on the best available rate(BAR) plan for silver and gold level members at all participating hotels where bar plan is available
30% off on rack rate at the taj club room and suites
Double occupancy benefits for spouse at no extra charges at hotels in india on bookings on bar
Enjoy access to health club and complimentary steam bath or sauna when stay in the hotel
10% off on telephone and fax usage
15% off laundry services
20% off on business centre services
20% off on all treatments at jiva spas in india
Benefits and privileges-gold
10% off on taj holidays offers when you make your reservations directly with them at the hotels or website
10% off on the best available rate(BAR)(after discount) plan for silver and gold level members at all participating hotels where bar plan is available
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30% off on rack rate(market rate) at the taj club room and suites
Double occupancy benefits for spouse at no extra charges at hotels in india on bookings on bar
Enjoy access to health club and complimentary steam bath or sauna when stay in the hotel
10% off on telephone and fax usage
15% off laundry services
20% off on business centre services
20% off on all treatments at jiva spas in india
20% off on nights halts when you charter a taj air craft, fly more than 20 hours and enjoy 5% of bar rate
A non-alcoholic welcome drink on arrival at the hotel
Preferred daily newspaper when stayed at the hotels
asst manager takes you to your room and completes check-in there no extra recognition as a result of status
Point‘s redemption
luxury holidays fine tooled leather luggage best in international golf equipment latest electronic appliances including LCD, iMacs and iPods gift certificates
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CHAPTER 4
DATA ANALYSIS AND INTERPRETATION
1. Gender Table No: 1 Sr. No Gender Frequency Percentage 1 Male 62 62% 2 Female 48 48%
Gender
0 0
48% Male Female 62%
Fig. 1
Interpretation: From the analysis we see that 62% are male and 48% are female.
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Analysis: The respondents selected consisted of male and female. The number of males were higher than the number of females.
2. Age profile of the Respondents Table No: 2 Age Frequency Percentage Below 20 20 20% 20-30 35 30% 30-40 10 10% Above 40 40 40% Total 100 100
45% 40% 40%
35% 30% 30%
25% 20% 20%
15% 10% 10%
5%
0% Below 20 20-30 30-40 Above 40 Fig: 2
Interpretation: From the analysis it is clear 40% of the respondents are from the age group above 40, and 30% of the respondents belong to above 30-40 age category.
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Analysis : Respondents of Vivanta by Taj are usually above the age of 40. But few respondents were from other age groups also.
3. Vivanta by Taj is a contemporary and stylish hotel chain
Table No.3 Sr.No Opinion Frequency percentage 1 Strongly Agree 86 86% 2 Somewhat Agree 4 4% 3 Neither Agree nor 4 4% Disagree 4 Somewhat Disagree 4 4% 5 Extremely Disagree 2 2%
100%
80%
60%
40%
20%
0% Strongly Agree Somewhat Agree Neither Agree nor Somewhat Disagree Extremely Disagree Disagree
Fig. 3
Interpretation
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From the chart it is clear that 86% of the respondents feel that Vivanta by Taj is a contemporary and stylish hotel chain.
Analysis: Majority of the respondents feel that Vivanta by Taj is a stylish hotel chain. They have a high impression on this hotel chain. Their expectation is high.
4. It is worth paying a premium for staying at Vivanta by Taj
Table No. 4 Sr.No Opinion Frequency percentage 1 Strongly Agree 78 78% 2 Somewhat Agree 10 10% 3 Neither Agree nor 6 6% Disagree 4 Somewhat Disagree 4 4% 5 Extremely Disagree 2 2%
90% 78% 80% 70% 60% 50% 40% 30% 20% 10% 6% 10% 4% 2% 0% Strongly Agree Somewhat Agree Neither Agree nor Somewhat Disagree Extremely Disagree Disagree
Fig. 4
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Interpretation From the chart it is clear that 78% of the respondent‘s feel that it is worth paying a premium for staying at Vivanta by Taj. Analysis: 78 of the respondents feel that Vivanta by Taj is worth the premium amount. There expectation of the hotel is high in terms of food and services.
5. Compared to our competitors, are our prices higher, lower, or about the same?
Table No.5 Sr.No Opinion Frequency percentage 1 Much higher 40 40% 2 Somewhat higher 6 6% 3 About the same 20 20% 4 Somewhat lower 32 32% 5 Quite a bit low 2 2%
45% 40% 40% 35% 32% 30% 25% 20% 20% 15%
10% 6% 5% 2% 0% Much higher Somewhat higher About the same Somewhat lower Quite a bit low
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Fig. 5
Interpretation From the analysis it is clear that 40% of the respondents feel that the prices are higher compared to the competitors. 32% of the respondents feel that the prices are lower to the competitors. Analysis: The respondents have different opinions about the prices in comparison with its competitors. Few feel that Taj has a higher pice and few feel they have a lower price.
6. Overall experience Table No.6 Sr.No Opinion Frequency Percentage 1 Excellent 80 80% 2 Very Good 12 12% 3 Good 4 4% 4 Fair 2 2% 5 Poor 2 2%
Page 60 NHCE, department of management studies LOYALTY PROGRAMS
90% 80% 80% 70% 60% 50% 40% 30%
20% 12% 10% 4% 2% 2% 0% Excellent Very Good Good Fair Poor
Fig. 6
Interpretation From the analysis it is clear that 80% of the respondents feel excellent on the overall service experience. Analysis: Majority of the respondents feel that they had a great time at Vivanta by Taj. There overall experience was excellent.
7. Points are based on how much you spend, agreed?
Table no. 7
Sr.No Opinion Frequency percentage 1 Strongly Agree 50 50% 2 Somewhat Agree 10 10% 3 Neither Agree nor 20 20%
Page 61 NHCE, department of management studies LOYALTY PROGRAMS
Disagree 4 Somewhat Disagree 8 8% 5 Extremely Disagree 12 12%
60% 50% 50% 40% 30% 20% 20% 12% 10% 8% 10% 0% Strongly Agree Somewhat Agree Neither Agree nor Somewhat Disagree Extremely Disagree Disagree
Fig. 7
Interpretation 50% of the respondents feel that the points are earned based on their spending only. Analysis: Majority of the respondents feel that the points they earn are based on how much they spend at the hotel rather than just the time and usage.
8. How is the earning opportunity of points?
Table no. 8
Sr.No Opinion Frequency Percentage 1 Excellent 4 4% 2 Very Good 2 2%
Page 62 NHCE, department of management studies LOYALTY PROGRAMS
3 Good 20 20% 4 Fair 50 50% 5 Poor 24 24%
60% 50% 50%
40%
30% 24% Overall service experience 20% 20%
10% 4% 2% 0% Excellent Very Good Good Fair Poor
Fig. 8
Interpretation
50% of the respondents feel that earning points in the taj loyalty program is difficult.
Analysis: they respondents feel that earning points is difficult. It takes large amount of time. The points cannot be acquired easily and regularly. Opportunity of earning the points is very poor at the Vivanta by Taj.
Page 63 NHCE, department of management studies LOYALTY PROGRAMS
9. Earning points is easy in tic?
Table no. 9
Opinion Frequency Yes 20 No 80
yes no
Fig. 9
Interpretation
80 of the respondents find it difficult to earn points. Earning the points is a difficult task.
Page 64 NHCE, department of management studies LOYALTY PROGRAMS
Analysis: they respondents feel that earning points is difficult. It takes large amount of time. The points cannot be acquired easily and regularly.
10. Points can be earned only for one room even for group bookings, is it alright by you?
Table no. 10 Opinion Frequency Yes 30 No 70
yes no
Fig. 10
Page 65 NHCE, department of management studies LOYALTY PROGRAMS
Interpretation
70 of the respondents are not happy that points can be earned only for one room even when group bookings are made.
Analysis: 70 of the respondents feel that points should be given for all the rooms that were booked. Many of them book up to 15 rooms. This makes the guest dissatisfied.
11. How is the process of redemption?
Table no. 11
Opinions Frequency Percentage Slow 60 60% Medium 32 32% Fast 8 8%
Page 66 NHCE, department of management studies LOYALTY PROGRAMS
Process of redemption 70% 60% 60% 50% 40% 32% 30% 20% 8% 10% 0% slow medium fast
Fig. 11
Interpretation
60% of the guests find the process of redemption very slow.
Analysis: The process of redeeming the points for gift vouchers is done very slowly as experienced by the respondents. This irritates and annoys the guests.
12. Are you satisfied with the options available to redeem your points?
Table no. 12 Opinion Frequency Percentage Extremely satisfied 4 4% Moderately satisfied 10 10%
Page 67 NHCE, department of management studies LOYALTY PROGRAMS
Slightly satisfied 6 6% Neither satisfied nor dissatisfied 10 10% Extremely dissatisfied 50 50% Moderately dissatisfied 18 18% Slightly dissatisfied 2 2%
Process of redemption
60% 50% 50% 40% 30% 18% 20% 10% 10% 6% 10% 4% 2% 0% Extremely Moderately Slightly Neither Extremely Moderately Slightly satisfied satisfied satisfied satisfied nor dissatisfied dissatisfied dissatisfied dissatisfied
Fig. 12
Interpretation
50% of the respondents are not satisfied with the options available to redeem the points. They require added options which the company will consider.
Analysis: Majority of the respondents are not satisfied with the options available to redeem the points. They wants added options. They feel that Marriott offers a lot more options.
13. Is it easy to reach higher levels in the taj membership program?
Table no. 13
Page 68 NHCE, department of management studies LOYALTY PROGRAMS
Opinion Frequency Yes 60 No 40
yes no
Fig. 13
Interpretation
60 of the respondents find it easier to reach higher levels of the loyalty program.
Analysis: The respondents find it easier to reach higher levels in the Taj loyalty program. At higher levels they receive better rewards. This makes the guests very satisfied.
Page 69 NHCE, department of management studies LOYALTY PROGRAMS
14. Gold and silver benefits are same, do you agree?
Table no. 14
Sr.No Opinion Frequency percentage 1 Strongly Agree 10 10% 2 Somewhat Agree 10 10% 3 Neither Agree nor 14 14% Disagree 4 Somewhat Disagree 46 46% 5 Extremely Disagree 20 20%
50% 46% 45% 40% 35% 30% 25% 20% 20% points based on spend 14% 15% 10% 10% 10% 5% 0% Strongly AgreeSomewhatNeither Agree Agree nor DisagreeSomewhat DisagreeExtremely Disagree
Fig. 14
Interpretation
46% of the guests feel that the silver and gold benefits are not the same.
Page 70 NHCE, department of management studies LOYALTY PROGRAMS
Analysis: Most of the respondents feel that the benefits received by them at the silver and gold levels were different.
15. Do you get suite upgrades regularly?
Table no. 15 Opinion Frequency Yes 14 No 86
yes no
Fig. 15
Interpretation 86% of the respondents do not get suite upgrade even though they are members of the program.
Page 71 NHCE, department of management studies LOYALTY PROGRAMS
Analysis: Majority of the guests do not get suite upgrades which makes them very dissatisfied.
16. Do they have personalised offers for you?
Table no. 16 Opinion Frequency Yes 10 No 90
yes no
Fig. 16
Page 72 NHCE, department of management studies LOYALTY PROGRAMS
Interpretation 90 respondents do not get personalized offers. Analysis: Majority of the guests do not get offers suited to their needs and requirements even though they are members of the program. They want offers that are more personalized.
17. Are you satisfied with the special deals and offers?
Table no. 17
Opinion Frequency Percentage Extremely satisfied 10 10% Moderately satisfied 6 6% Slightly satisfied 14 14% Neither satisfied nor dissatisfied 0 0% Extremely dissatisfied 50 50% Moderately dissatisfied 18 18% Slightly dissatisfied 2 2%
Process of redemption
60% 50% 50% 40% 30% 15% 18% 20% 10% 6% 10% 0% 2% 0% Extremely Moderately Slightly Neither Extremely Moderately Slightly satisfied satisfied satisfied satisfied nor dissatisfied dissatisfied dissatisfied dissatisfied
Page 73 NHCE, department of management studies LOYALTY PROGRAMS
Fig. 17
Interpretation 50% of the respondents want special deals and offers suited to their needs and requirements because they are members of the program. Analysis: Majority of the guests want special deals and offers suited to their needs and requirements because they are members of the program.
18. Would you prefer if more information is given to you at the time of registration?
Table no. 18 Opinion Frequency Yes 46 No 54
yes no
Fig. 18
Page 74 NHCE, department of management studies LOYALTY PROGRAMS
Interpretation Few of them prefer getting more information and few do not prefer it. Analysis: Some guests prefer more information of the taj inner circle whereas few are very satisfied with the information acquired.
19. I agree that Customer support is good? Table no. 19
Sr.No Opinion Frequency percentage 1 Strongly Agree 10 10% 2 Somewhat Agree 10 10% 3 Neither Agree nor 0 0% Disagree 4 Somewhat Disagree 20 20% 5 Extremely Disagree 60 60%
70% 60% 60% 50% 40% 30% 20% 20% 10% 10% 10% 0% 0% Strongly Agree Somewhat Neither Agree Somewhat Extremely Agree nor Disagree Disagree Disagree
Fig. 19
Page 75 NHCE, department of management studies LOYALTY PROGRAMS
Interpretation 60% of the respondents feel that Vivanta by Taj provides poor customer care in terms of loyalty program only. Analysis: Majority of the guests find Vivanta by Taj feel that the customer support provided is terrible.
20. How do you feel about the employees at the hotel? Table no. 20
Sr.No Opinion Frequency Percentage 1 Excellent 20 20% 2 Very Good 20 20% 3 Good 40 40% 4 Fair 10 10% 5 Poor 10 10%
45% 40% 40% 35% 30% 25% 20% 20% 20% 15% 10% 10% 10% 5% 0% Excellent Very Good Good Fair Poor
Page 76 NHCE, department of management studies LOYALTY PROGRAMS
Fig. 20
Interpretation
40% of the respondents feel that the staff handling the loyalty program are good.
Analysis: Majority of the guests feel that the staff are efficient at handling the loyalty program. The staff have information on he loyalty program. There are 80 people feeling that the staff are doing a good job.
21. Overall, how responsive have we been to your questions or concerns about our TIC? Table no. 21
Sr.No Opinion Frequency Percentage 1 Extremely responsive 20 20% 2 Quite responsive 20 20% 3 Moderately 40 40% responsive 4 Slightly responsive 10 10% 5 Not resposive 10 10%
Page 77 NHCE, department of management studies LOYALTY PROGRAMS
45% 40% 40% 35% 30% 25% 20% 20% 20% 15% 10% 10% 10% 5% 0% Excellent Very Good Good Fair Poor
Fig. 21
Interpretation
40% of the respondents feel that the staff are good at handling the TIC members.
Analysis: The respondents are happy about the way concerns about the program are handled. Immediate action is taken to sort the concer out and answer any related questions.
22. How frequently is the loyalty program system reviewed?
Table no. 22
Sr.No Opinion Frequency Percentage 1 Half yearly 20 20% 2 Yearly 40 40% 3 never 56 56%
Page 78 NHCE, department of management studies LOYALTY PROGRAMS
60% 56%
50% 40% 40%
30% 20% 20%
10%
0% yes no sometimes Fig. 22 Interpretation
56% of the respondents feel that the loyalty program must is never reviewed.
Analysis: Majority of the guests feel that the loyalty program must be reviewed more often to improve it. Reviewing it on a regular basis will keep the programs up to date.
23. Have You visited Marriott?
Table no. 23 Opinion Frequency Yes 55 No 45
Page 79 NHCE, department of management studies LOYALTY PROGRAMS
yes no
Fig. 23
Interpretation 55% of the respondents have visited Marriott. Analysis: 55 respondents have visited Marriott. They have visited Taj as well as Marriott which helps us understand the difference of each loyalty program.
24. Compared to Marriott how is our program quality?
Table no. 23
Sr.No Opinion Frequency percentage 1 Much better 10 10% 2 Somewhat better 10 10%
Page 80 NHCE, department of management studies LOYALTY PROGRAMS
3 About the same 30 30% somewhat worse 4 Quite a bit worse 46 46% 5 Don‘t know 4 4%
50% Program quality 46% 45% 40% 35% 30% 30% 25% 20% 15% 10% 10% 10% 4% 5% 0% Much better Somewhat better About the same Quite a bit worse Don’t know somewhat worse
Fig. 23
Interpretation 46% of the respondents feel that Vivanta by Taj‘s loyalty program is worse than Marriott. Analysis: Majority of the guests feel that the Marriott‘s loyalty program is better. They say that the rewards received are greater that what Taj has to offer.
25. Do you like our program ?
Table no. 24
Sr.No Opinion Frequency percentage
Page 81 NHCE, department of management studies LOYALTY PROGRAMS
1 Like a great deal 10 10% 2 Like a moderate 10 10% amount 3 Like a little 20 6% 4 Neither like nor dislike 6 20% 5 Dislike a little 30 30% 6 Dislike a moderate 20 20% amount 7 Dislike a great deal 4 4%
35% 30% 30% 26% 25% 20% 20% 15% 10% 10% 10% 4% 5% 0% 0% Like a great Like a Like a little Neither like Dislike a little Dislike a Dislike a great deal moderate nor dislike moderate deal amount amount
Fig. 24
Interpretation
30%of the respondents like Marriott‘s loyalty program better and 26% prefer the Vivanta by Taj‘s program. Analysis: There are respondents who any day will prefer the Tic and there are respondents who prefer the Marriott‘s loyalty program. Both have its perks.
Page 82 NHCE, department of management studies LOYALTY PROGRAMS
CHAPTER 5
FINDINGS, SUGGESTIONS AND RECOMMENDATION
VIVANTA BY TAJ over JW MARRIOTT
Taj proves to be beneficial for guests that stay for a long period that is for more than 5 days because points are based on their spend
Points are valid for 4 years- it will expire only after that
The staff here are good and efficient in handling the loyalty program for the customers
The members of the taj inner circle can enjoy access to the health club and complimentary steam bath or sauna when stay in the hotel when they are loyalty program members
A non-alcoholic welcome drink on their arrival at the hotel
Preferred daily newspaper is delivered when stayed at the hotels
Asst manager takes the customers to their room and completes check-in there
Information on the guests is acquired and used effectively There is difference between gold and silver for the members of TIC Easy to reach the higher levels in the Taj membership program
Page 83 NHCE, department of management studies LOYALTY PROGRAMS
JW MARRIOTT over VIVANTA BY TAJ
The points can be earned in any of the taj hotels worldwide but can be redeemed only in India whereas in Marriott points can be earned and redeemed in any of the Marriott‘s worldwide.
Taj does show how each point is earned and redeemed by the customer. Marriott on the other hand provides such information. The customers prefer that.
Points are not earned when booked through a travel agency website, travel agency booking and group bookings in the Taj. Customers find it easier to earn points in the Marriott reward program than the taj inner circle.
If 10 rooms are booked, points are earned for only 1 room in the TIC. Marriott on the other hand considers 3 rooms.
Marriott has a lot of offers for the Marriott reward program members whereas Taj has no such thing. Offers like the mega bonus and refer a friend.
Taj provides poor customer support (they operate from 9 am to 6 pm on weekdays) and Marriott works 24 hours per day so they are always available.
Redeeming the points is a long and tiring process for the members of TIC whereas it‘s easy to redeem the points as a member of the Marriott reward program.
The customers have a wide range of options to opt from to redeem their points in the Marriott. Taj on the other hand has fewer options. Marriott provides weekly deals for the customers but Taj does not. The customers prefer the deals. The deals act as a marketing strategy
Page 84 NHCE, department of management studies LOYALTY PROGRAMS
Regular suite upgrades for the members of the Marriott reward program. No such option is available to the TIC members.
SUGGESTIONS
Taj must create more opportunities for its members to earn points Taj can create a software that would help the members to check how the points were earned and when it can be redeemed. Increase the offers that could help members earn points Improve customer support They can also create many weekly and monthly deals On the whole, improve the marketing strategy Collect their information and make more personalized programs for them.
CONCLUSION
Marketing is about finding the most effective way to reach out to current and potential customers to join the TIC and be satisfied. Loyalty programs are structured marketing efforts that reward and therefore encourage loyal behavior of customers.
Page 85 NHCE, department of management studies LOYALTY PROGRAMS
The existing loyalty program in Vivanta by Taj is efficient but it can be improved. The staff here is good in handling the loyalty program for the customers and information on the guests that is acquired is used effectively. Taj can increase the opportunity to earn points and increase customer satisfaction and improve in the offers that are offered to the members of TIC.
Focusing on the loyalty program and improving it, increases the number of TIC members and thereby increases the overall profit.
Page 86 NHCE, department of management studies LOYALTY PROGRAMS
BIBLIOGRAPHY
REFERENCES
Armstrong, G., & Kotler, P. (2008). Principles of marketing, 12th edition.. Mark D. Uncles, Grahame R. Dowling, Kathy Hammond, (2003) "Customer loyalty and customer loyalty programs", Journal of Consumer Marketing, Vol. 20 Iss: 4, pp.294 – 316 Jie Zhang, Els Breugelmans (2012)- The Impact of an Item-Based Loyalty Program on Consumer Purchase Behavior. Journal of Marketing Research: February 2012, Vol. 49, No. 1, pp. 50-65. Yuping Liu (2007) The Long-Term Impact of Loyalty Programs on Consumer Purchase Behavior and Loyalty. Journal of Marketing: October 2007, Vol. 71, No. 4, pp. 19-35 Journal of Targeting, Measurement and Analysis for Marketing (2009) 17, 307–319; published online 9 November 2009- ―Designing competitive loyalty programs: How types of program affect customer equity‖ Asian Academy of Management Journal, Vol. 16, No. 1, 21–41, January 2011 Asian Academy of Management and Penerbit Universiti Sains Malaysia, 2011- Journal of Marketing, Vol. 71 (October 2007), 19–35- Yuping Liu ―The Long-Term Impact of Loyalty Programs on Consumer Purchase Behavior and Loyalty‖ Cornell University School of Hotel Administration- The Scholarly Commons-Michael McCall-―The Drivers of Loyalty Program Success: An Organizing Framework and Research Agenda‖- Volume 51, Issue 1 35-52
www.tajhotels.com
www.managementparadise.com
www.hospitalitynet.org/news/4068282.html WWW.Yahoo.com
NHCE, Department of management studies Page i
LOYALTY PROGRAMS
Newspapers the times of india
Magazines
www.IHM.com
www.IHCL.com
http://cqx.sagepub.com/content/51/1/35
http://www.jktourism.org/index.php/luxury/hotel-vivanta-by-taj
http://www.sli21.com/?whitepaper=the-economics-behind-customer-loyalty
http://www.answers.com/Q/What_is_taj_hotels_mission_and_vision http://www.answers.com/Q/Example_of_hotel_vision_and_mission http://www.ukessays.com/essays/marketing/the-employee-satisfaction-and-tracking- system-marketing-essay.php http://www.orbitz.com/hotel/India/Bengaluru_%28Bangalore%29/Vivanta_by_Taj_Whit efield.h297612/
Page ii NHCE, department of management studies LOYALTY PROGRAMS
ANNEXURE
QUESTIONNAIRE
1. Gender Male Female
2. Age of the respondents Below 20 20-30 30-40 Above 40
3. Vivanta by Taj is a contemporary and stylish hotel chain o Strongly agree o Somewhat agree o Neither agree nor disagree o Somewhat disagree o Extremely disagree
4. It is worth paying a premium for staying at Vivanta by Taj o Strongly agree o Somewhat agree o Neither agree nor disagree o Somewhat disagree o Extremely disagree
5. Compared to our competitors, are our prices higher, lower, or about the same? Much higher Somewhat higher About the same somewhat lower Quite a bit low Don‘t know
Page iii NHCE, department of management studies LOYALTY PROGRAMS
6. Overall experience o Excellent o Very good o Good o Fair o Poor
7. Points are based on how much you spend, agreed? Strongly agree Somewhat agree Neither agree nor disagree Somewhat disagree Extremely disagree
8. How is the earning opportunity of points? Excellent Very good Good Fair Poor
9. Earning points is easy in tic? Yes No
10. Points can be earned only for one room even for group bookings, is it alright by you? Yes No
11. How is the process of redemption? Slow Medium Fast
12. Are you satisfied with the options available to redeem your points? Extremely satisfied Moderately satisfied Slightly satisfied Neither satisfied nor dissatisfied Extremely dissatisfied
Page iv NHCE, department of management studies LOYALTY PROGRAMS
Moderately dissatisfied Slightly dissatisfied
13. Is it easy to reach the higher levels in the Taj membership program? Yes No
14. Gold and silver level benefits are same, do you agree? Strongly agree Somewhat agree Neither agree nor disagree Somewhat disagree Extremely disagree
15. Do you get suite upgrades regularly? Yes No
16. Do they have personalised offers for you? Yes No
17. Are you satisfied with the special deals and offers? Extremely satisfied Moderately satisfied Slightly satisfied Neither satisfied nor dissatisfied Extremely dissatisfied Moderately dissatisfied Slightly dissatisfied
18. Would you prefer if more information is given to you at the time of registration? Yes No
19. I agree that Customer support is good? Strongly agree Somewhat agree Neither agree nor disagree
Page v NHCE, department of management studies LOYALTY PROGRAMS
Somewhat disagree Extremely disagree
20. Overall, are you satisfied with the employees at our hotel? Extremely satisfied Moderately satisfied Slightly satisfied Neither satisfied nor dissatisfied Extremely dissatisfied Moderately dissatisfied Slightly dissatisfied
21. Overall, how responsive have we been to your questions or concerns about our product? Extremely responsive Quite responsive Moderately responsive Slightly responsive
22. How frequently is the loyalty program system reviewed? Half yearly ( ) Annually ( ) never ( )
23. Have you visted Marriott? Yes No
24. Compared to Marriott, is our program quality better, worse, or about the same? Much better Somewhat better About the same somewhat worse Quite a bit worse Don‘t know
25. Do you like our program? Like a great deal Like a moderate amount Like a little Neither like nor dislike Dislike a little
Page vi NHCE, department of management studies LOYALTY PROGRAMS
Dislike a moderate amount Dislike a great deal
Page vii NHCE, department of management studies