A STUDY ON CONSUMER PREFERENCE TOWARDS

THE GATEWAY HOTEL

Submitted by

Mr. YADAVA HARI BABU

Registration NO: TO5M19006200038

In partial fulfillment of the requirement for the award of the degree

Of

MASTER OF BUSINESS ADMINISTRATION

IN
HOSPITALITY MANAGEMENT

Under the Guidance of

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

Department of Management Studies,

Chennai’s Amirta International Institute of Hotel Management,

Chennai

December 2019
 BONAFIDE CERTIFICATE

Certified that the Project report titled A STUDY ON CONSUMER

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

Signature of the Guide

Name and Official Address of the Guide

Place:

Date:
 STUDENT’S DECLARATION

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

Signature of the Student

Register no:
Date :
 ACKNOWLEDGEMENT

First and foremost, I would like to state my gratefulness to Mr. VIJAYA

KUMAR (Sales & Marketing Manager) for enabling me to complete this
report in due time.

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

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

I would also like to express my at most appreciation to Mr. VIJAYA KUMAR

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

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

CONTENTS
SI.NO.
Chapter 1
1.1Introduction
1.2Problem statement
1
1.3Need and Scope of the Study
1.4Objectives of the Study
1.5 Methodology of the study
1.6Limitations of the study
2 Chapter 2- Company profile
3 Chapter 3- Review of Literature
4 Chapter 4- Research Methodology
Chapter 5- Data Analysis and
5
Interpretation.
Chapter 6
6.1Findings
6
6.2Suggestions
6.3Conclusion

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

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

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

1.2 PROBLEM STATEMENT:

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

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

Ten C’s of SALES:

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

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

1.3. NEED & SCOPE OF THE STUDY:

NEED OF THE STUDY:
This study mainly focuses on the corporate sales performance who are intellectually and
emotionally bound with the organization. The study will help the company to identify and
ensure that company is well-integrated with productive and involved employees. Customer
satisfaction analysis is needed and very important for the Taj Hotels to signify the factors
that support the positive customer view in continuous visit to Taj. The relationship between
factors will give a concrete idea on the most influential factors among many.
 SCOPE OF THE STUDY:
 To know about the Operations of Taj Hotels.
 To know what kind of activities are done in hotels sector.
 To now about the customer response and behavior towards the Taj Hotels.
 To expand network of contacts with various stakeholders, owners and vendors.
 To apply business concepts and theories to real-world decision-making.

1.4. OBJECTIVES OF THE STUDY:

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

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

1.5 Methodology of the study:

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

Research methodology is a way to systematically solve the research problem. It may be

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

Primary Data
Interviewing a few Sales and marketing departmental heads, officers and management
bodies and staff members of THE TAJ GATEWAY HOTEL PVT LTD collected primary
data. However, the present study in based on secondary data.
Secondary Data
The present is mostly secondary resource of the data. These sources are the annual reports
and original records of THE TAJ GATEWAY HOTEL PVT LTD
1.6 Limitations of the study
The study was limited to only five years Business data.
The study is purely based on secondary data which were taken primarily from published
annual reports of THE TAJ GATEWAY HOTEL PVT LTD.
The study is based on only the past records.
The short span of time of 75 days for carrying out the study is also one of the limitations.
 CHAPTER-2
COMPANY PROFILE
2.1 Overview of Tata Group

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

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

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

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

2.2 History

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

2.3 Taj Hotel

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

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

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

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

The following:

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

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

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

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

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

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

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

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

2.4 Industry swot analysis

Strengths
1. Group comprises 119 hotels in 55 locations across India with an additional 16
international destinations
2. Employee strength over 13000 people
3. The perfect experience of Indian luxury living
4. Employee retention due to good brand image
5. Considered to be the most premium hotel chain in India
6. Top-of-the-mind brand recall
7. Total 14423 Rooms.
Weaknesses
1. Limited market share due to tough competition from international and domestic players
means
2. Terrorist attacks left a question over the security
Opportunities
1. Introduce better membership plans
2. Improve hygiene standards
3. Upgrade to international methods of work
Threats
1. Other Heritage properties
2. Competitors upgrading to international standards of work ethic
3. Expectation of clients in terms of technological develop
Competitors
1. Leela Group of Hotels
2. Oberoi Hotels and Resorts
3. Hyatt
4. ITC Hotels
5. Marriot

2.5 Introduction to the Gateway Hotel Vijayawada

The Gateway Hotel is a scenic spot for your stay in the financial capital of Andhra Pradesh.
Just look out your window for panoramic views of the Krishna River and surrounding hills.
Close to Vijayawada's business district and the city's best sights and attractions, this is an
ideal location for business or holiday travel. Guest may also enjoy the knowledge that they
are staying at the only hotel in the Vijayawada with a swimming pool and state-of-the-art
Health club.
Accommodations
108 rooms including 12 suites in which to unwind
High-speed internet & Wi-Fi available throughout the hotel
Vijayawada's only hotel with a swimming pool
Three meeting rooms and three banquet halls, including the largest pillar less banquet
Room in the city
Rooftop poolside venue for events
We have parking space at the basement level for over 200 cars, the largest in the city
Only 5 Star category Hotel in Vijayawada and 2nd in A.P.
Proximity
25 minutes from the domestic airport
15 minutes from the railway station
10 minutes from the Bus stand
Address: - 39-1-63, GV Estates, M.G Road, Vijayawada-10, Andhra Pradesh
Web Site: www.tajhotels.com, Tel: +91-866-6455899

Company profile

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

2.6 Type of Customers:

The main customers of hotels can be classified as follows:

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

1. Business customers:

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

2. Luxury customers:

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

3. Leisure customers

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

4. Wedding customers

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

The Competitors:

Quality inn DV Manor – 115 rooms

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

2) Fortune Murali Park – 94 rooms

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

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

Internal Environment:

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

External Environment:

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

Technology:

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

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

Flights - Our flight booking engine allows travel agents to compare and book published and
negotiated air fares, as well as fares from low cost carriers and charters in one single system.
Customize your flight system to guide your customers in the booking flow and show them
the flight they‘re looking for, with many cross-selling options and interesting features.
Transfers - This module allows travel agents to offer their customers a transfer service
between airport and hotel. Similar to the hotel module, several suppliers can be compared
and the transfers can be booked at the best net prices

Cars - To complete your travel package, you can offer your customers a rental car in more
than 200 countries worldwide. The user-friendly interface allows to choose the best suited
car and to manage the reservation from beginning to end.
Oracle:
Oracle Hospitality delivers a wide range of software, hardware, and related services along
with a rapidly growing portfolio of cloud solutions to enable our customers in the hospitality
industry to provide superior service and experience to their guests anywhere.

2.7 swot Analysis

Strengths
High brand recognition
Technical innovations to improve customer experiences and Constant upgrade of business
processes
Good employee retention
Around over 78 countries
They have been in the industry for 93 years now making them real experts at what they do.
Good reputation in the market.

Weakness
Limited market share in spite of good brand recall
Operations are affected globally due to different Govt. policies and parameters

Opportunities
High potential in emerging markets
Innovation in customer services
Digitalization and better use of technology
Indian and as well as global hospitality sectors are looking at a boom

Threats
Entry of several international brands along with the strong hold of long standing, well
established Indian brands.
Competition on price point
Stagnated growth
Economic and political turbulence in most countries
2.8 Who’s who:-

Departmental Heads at the company:

Department Name Designation

Finance M Shankar Rao Chief Accountant

HR Susan Lazaro H R Manager

Sales & Vijay Kumar Sales Manager

Marketing

Engineering V M N Malleswara Chief Engineer

Rao

Food Sridhar Punna Chef In charge

Production

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

Security D. Mahesh Security In charge

House Keeping B. Shreedhar Executive

Housekeeper

Front Office Jagath Changappa Front Office Manager

2.9 organisation structure

Game Plan

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

2.10 Vision/ Mission

Statement of the Taj

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

Facilities & Services

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

2.11 Rooms & Suites

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

Standard 70

Superior 10

Gateway Suits 02

Executive Suits 10

Executive Rooms 16

Total 108

Facilities in Rooms

42‖ Plasma TVs with satellite programs

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

Superior Rooms

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

Deluxe Rooms

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

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

Gateway Suit (Presidential Suite)

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

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

Executive Suites

Located on me third to seventh floors, these contemporary rooms have a living room in
Addition to an extra spacious bedroom. They offer panoramic views of the city, hills and
River. They have a walk-in wardrobe, standing shower and bathtub and offer complimentary
Breakfast.
Hotel room rates
Categories Single Double
Standard 8000 9000
Superior 9000 10000
Executive 10000 11000
Executive Suite 15500 15500
Gateway Suite 23500 23500

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

Extra bed rate per Night 1050/-
Additional Occupant in the room 1050/-

Terms:
Taxes extra as Applicable

Tariff and taxes subject to change without prior notice.

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

The tariff includes basic Wi - fi package

Access to Swimming pool and Health Club
Right of Admission reserved

Reservation

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

Sources of Reservation

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

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

Guest History Card

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

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

Rates followed by Reservation

A Rack Rate

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

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

Commercial Rates

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

Group Rates

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

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

Day use Rate

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

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

2.12 Food and Beverage outlets:

Chinese Specialty Restaurants

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

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

G Bar

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

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

Health Club

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

Health Club Facilities:

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

Banqueting facilities

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

Categories of Banquets and Their Capacity

Grand Central 1 – 2000 Sq. feet

Grand Central 2 – 3000 Sq. feet

Grand Central 3 – 1400 Sq. feet

Forum 1 – 700 Sq. feet

Forum 2 -700 Sq. feet

Forum 3- 700 Sq. feet

Forum 3 also same looks like forum 1&2

Business Centre – 400 Sq. feet

Summit – 1100 Sq. feet

Summit also same looks like Grand central 3 additionally adding with lawn at terrace.

Guest Safety

The hotel is equipped with the latest firefighting equipment to fight any type of fire.
 CHAPTER-3
REVIEW OF LITERATURE
REVIEW OF LITERATURE:
3.1 Conceptual Review:
Anand, M.M. (1976) , in his study, makes an attempt to analyze the nature of this
multidimensionaltouristplanwhoseactivitiesrangefromtheprovisionofcomfortablelodging to
facilitating a visit to a national monument. He has examined the structure and working of the
plan. He says that the hotels and other supplementary accommodation are the core of the
plan. According to him, the first prerequisite for the development of hotel industry is the
forecast of the future demand, which would mean information about the number and type
personswhowouldbemakinguseofthefacilities.Itisintermsofdemandthattherightsupply, at right
place, right time and at right price is to be builtup.

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

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

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

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

Stowe Shoemaker and Robert C. Lewis, (1999), “Customer loyalty: the future of
hospitality
marketing”Theaimofthispaperistopresentaframeworkforunderstandingcustomerloyalty. They
did this by examining the economics of loyalty. Then the paper defined loyalty and
explained the difference between frequency programs and loyalty programs. This also
showed why satisfaction does not equal loyalty. By doing these the authors introduced the
Loyalty Triangle(, which provides a framework for building customer loyalty. Each leg of
theLoyalty Triangle(is then examined in-depth, including examples of how hotel companies
use the Loyalty Triangle( to develop strategy. Next we present ways to measure the success
of loyalty programs.Itgivesout5methods:a)makingcomparisonsbetweenmembersandnon-
members
b) understand the impact of a program is to conduct research among the members who
belong totheloyaltyprogramandaskthemiftheirpurchasebehaviorwouldremainthesameorifthey
would migrate to another company if the frequency program went away c) understand the
impactofaprogramistoexaminetheROIbothonasystembasisandapropertybasisd)called “they
would have come anyway analysis”. This method works by calculating the cost of the
totalprogramandthetotalrevenueearnedduringthetimetheprogramisrunninge)understand the
financial impact of the program is to examine revenue lost because of a service failure that
results in brandswitching.

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

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

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

Antonio, 2004,CRM is often described as a strategy or a set of activities a firm employs to

increase a competitive advantage in hotel industry. Antonio confirms that, “the essence of
strategy is in activities - selecting to perform activities differently or to perform different
activities than rivals” (Antonio, 2004). Therefore, if one agrees with the premise that CRM
is a strategy, one can reasonably deduce that CRM must consist of a series of activities that
provide the hotel industry the chance to get or maintain a competitive advantage over their
competitors.Therefore,CRMthatpresentsacompetitiveadvantagetoafirmhasnotbeenfully
explored in the CRM literature. Consequently, it is necessary to spend some time to develop
the link between CRM and competitiveadvantage.

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

Evanschitzky, H., & Wunderlich, M, (2006), “An Examination of Moderator Effects in the
Four-Stage Loyalty Model” Oliver’s 1997 four-stage loyalty model proposes that loyalty
consists of belief, affect, intention, and action. Although this loyalty model has recently been
subject to empirical examination, the issue of moderator variables has been largely
neglected. This article fills that void by analyzing the moderating effects of selected personal
and situational characteristics, using a sample of 888 customers of a large do-it-yourself
retailer. The results of multi-group causal analysis suggest that these moderators exert an
influence on the development of the different stages of the loyalty sequence. Specifically,
age, income ,education and expertise, price orientation, critical incident recovery, and
loyalty card membership are found to be important moderators of the links in the four-stage
loyaltymodel. Limitations of the study are outlined, and implications for both research and
managerial practice arediscussed., and marketing ingeneral.
RuchanKayamanandHuseyinArasli,(2007),“Customerbasedbrandequity:evidencefrom the
hotel industry” The paper aims to explore interrelations of the four brand equity
components; brand awareness, brand loyalty, perceived quality and brand image in hotel
industryandimprovetheconceptualizationofcustomer-basedhotelbrandequity.Thepaperis
basedontherecommendationsofpreviousstudies,thescaleconstructedtomeasureconsumer-
based brand equity included brand awareness, brand loyalty, perceived quality and brand
image. The present study used a sample of 345 actual customers from 11 different countries
whose accommodation in North Cyprus hotels was used to test the relations ofthe proposed
model Path analysis. The findings in this paper support the three-dimensional model of
customer-based brand equity in hotel industry. Brand awareness dimension was not found
significant in the tested model for hotels. The present study contributes to the understanding
of customer-based brand equity measurement by examining the dimensionality of this
construct.

Heesup Han and Kisang Ryu, (2009), “the roles of the physical environment, price
perception, and customer satisfaction in determining customer loyalty in the restaurant
industry” This research paper tests the relationships among three components of the physical
environment(i.e.,décorandartefacts,spatiallayout,andambientconditions),priceperception,
customer satisfaction, and customer loyalty in the restaurant industry. It used the structural
equation modelling and tested the hypothesis. The three factors of the physical environment
stronglyinfluencedhowcustomersperceivedprice,andthispriceperception,inturn,enhanced
customer satisfaction level and directly/indirectly influenced customer loyalty. Décor and
arte facts were the most significant predictors of price perception among the three
components of
thephysicalenvironment.Furthermore,bothpriceperceptionandcustomersatisfactionplayed
significant partial/complete mediating roles in the proposed model. The paper provides
potential ways for restaurateurs to increase customer loyalty by improving their
understanding of the roles of physical environment, price perception, and
customersatisfaction.

GandolfoDominicietal,(2010),“CustomerSatisfactionintheHotelIndustry:ACaseStudy from
Sicily” The usual Research on the topic of guest satisfaction, which translates into the
consideration of whether or not customers will return to a hotel or advise it to other tourists,
is pivotal to the success of the hospitality business. This paper tries to Neglect those hotel
attributes considered most important by guests, may lead to negative evaluation of the hotel,
thus restricting the chance of repeat patronage. We perform a qualitative analysis ofa
largehotelinSicily(IT),theSportingClubHotelinthetownCefalù,usingtheCriticalIncident
Approach (Hayes, 2008). Through the analysis of this case we evaluate the overall customer
satisfactionlevelforthehotelandforeachservicesupplied.Weconcludediscussingtheresult
andproposingimprovementincustomersatisfactionmanagementofthehotel.Thisqualitative
analysis of the Sporting Hotel of Cefalù (IT) showed that the level of customer satisfaction is
good both considering the overall evaluation and the single services (6 out of 8 of the single
aspectsexamined).Humanresourcemanagementinparticularresultstobeespeciallyeffective
inentertainmentandrestaurantservice.Theweaknessofthecustomersatisfactionmanagement
systemofthehotelisthatastructuredCRM(CustomerRelationshipManagement)systemhas not
yet been implemented. Even if a customer database exists, the data collection is not even
planned, and the data gathered can't be easily found and used by management for marketing
decisions. Any benchmarking information about customer satisfaction levels is missing,
sothe management doesn't have a clue about what competitors aredoing.

KisangRyuetal,(2010),“Theinfluenceofthequalityofthephysicalenvironment,food,and
service on restaurant image, customer perceived value, customer satisfaction, and behavioral
intentions”Thepurposeofthisstudyistoproposeanintegratedmodelthatexaminestheimpact of
three elements of foodservice quality dimensions (physical environment, food, andservice)
on restaurant image, customer perceived value, customer satisfaction, and behavioral
intentions. Data were collected from customers at an authentic upscale Chinese restaurant
locatedinaSoutheasternstateintheUSAviaaself-administeredquestionnaire.Andersonand
Gerbing’s two-step approach was used to assess the measurement and structural models. –
Structural equation modeling shows that the quality of the physical environment, food, and
service were significant determinants of restaurant image. Also, the quality of the physical
environment and food were significant predictors of customer perceived value. The
restaurant image was also found to be a significant antecedent of customer perceived value.
In addition, the results reinforced that customer perceived value is indeed a significant
determinant of customer satisfaction, and customer satisfaction is a significant predictor of
behavioral intentions.

Heesup Han et al, (2010), “Switching intention model development: Role of service
performances,customersatisfaction,andswitchingbarriersinthehotelindustry”Inthispaper a
field survey was conducted at upper-midscale hotels. The results of the structural analysis
revealed that both core service and service encounter performances significantly affected
customer satisfaction, and satisfaction completely mediated the effects of service
performances on switching intention. In addition, findings from the tests for metric
invariances indicated that components of switching barriers (switching costs, relational
investment, and lack of alternatives’ attractiveness) moderated the relationships between
satisfactionandswitchingintention.Inparticular,theroleofsatisfactionderivedfromservice
performances in decreasing hotel guests’ intention to switch is greater when they perceive
high switching costs, relational investment, and lack of alternatives’ attractiveness. Based on
studyfindings,theoreticalandpracticalimplicationsareidentifiedanddiscussed.Theyfound from
the test for the effect of switching barriers that the components of switching barriers
moderatedtheinfluenceofcustomersatisfactionrootedincoreserviceandencounterservice
performances on switching intention. The findings implied that the role of customer
satisfaction derived from core service or service encounter performances in diminishing
switchingintentionisgreaterwhencustomersperceiveswitchingcosts,relationalinvestment, and
lack of attractive alternatives.

Wang,Park,&Fesenmaier,2011,Thedevelopmentofthemobileinternetandtheincreasing
adoption of smart phones have influenced all aspects of people’s life, including the travel
process(Wang,Park,&Fesenmaier,2011).Alargenumberofcustomersnowadaysengage smart
phones to conduct travel-related transactions (EyeforTravel, 2013). In addition, mobile apps
installed on smart phones offer a better user-interface and service delivery, some any major
brands including hotel firms have launched their own apps for the purpose of enhanced
customer experiences (Nysveen, Pedersen, & Skard, 2015). The mobile channel is suited for
travelersbecausetheycanstayconnectedandinformedthroughouttheirtripsviasmart phones (Wei
& Ozok,2005).

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

3.2 RESEARCH REVIEW:

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

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

RESEARCH GAP:

 Lack of marketing research orientation

 Inadequate upward communication
 Too many levels of management
 Not knowing various customer expectations.
 Employee role ambiguity
 Employee role conflict
 Poor Employee job fit
 Poor Technology job fit
 Inappropriate evaluation and reward systems
 Lack of empowered service employees
 Lack of team work
 CHAPTER-4
RESEARCH METHODOLOGY
 Research Methodology:
Theprocessusedtocollectinformationanddataformakingdecisionsforthestudy.Itdeals with the
following:

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

4.1 RESEARCH DESIGN:

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

4.2 SAMPLING DESIGN:

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

4.2.1 POPULATION:

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

4.2.2 TARGET RESPONDENTS:

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

4.2.3 SAMPLING METHOD:

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

Probability Sampling
Non- Probability Sampling

The sampling method adopted for the study is convenience sampling under non- probability
sampling.
 4.2.4 SAMPLE SIZE:

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

4.3 DATA DESIGN:

There are two types of data:

 Primary
 Secondary

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

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

FOR THIS STUDY:

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

4.3.1 TYPES OF DATA:

The type of data used here is quantitative data type.

4.3.2 DATA SOURCE:

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

4.4 TOOLS USED FOR ANALYSIS:

Statistics has been defined as a science which provides tools for analysis and
interpretation.Thesemethodsareappliedonthedatacollectedforthepurposeofdecision making in
various fields of scientific inquiry.

4.4.1 DESCRIPTIVE ANALYSIS (PERCENTAGE METHOD):

Percentagemethodisanimportantstatisticaltoolwhichhasbeenusedinthepresentstudy to
compare two series of data to enable the research to draw meaningful conclusion
 4.4.2 INFERENTIAL ANALYSIS (STATISTICAL TOOLS):

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

 Factor analysis
 Regression analysis
 CHAPTER-5
DATA ANALYSIS AND
INTERPRETATION
Table 5.1 Gross Profit

Years Gross Net sales(in Gross profit

profit(in crores) ratio
crores)

2015-2016 223.12 1875.86 11.89%

2016-2017 216.20 1929.51 11.20%

2017-2018 230.58 2024.38 11.39%

2018-2019 321.89 2273.70 14.16%

2019-2020 225.34 2391.25 9.42%

3000

2500

2000

1500 Gross profit(in crores)

1000 Net sales(in crores)

Gross profit ratio
500

Source – Annual Report

Interpretation:
From the above it is understood that the gross profit ratio of the company is quite fluctuating
during the final year 2012-2015 gross profit ratio is has been decreasing compared with
financial year 2015-2016 it indicates that sales has increased. In 2015 -16 the gross profit
ratio decreased compared with previous year as sales charges (room rents) have increased in
the year 2016.
Table 5.2 Net Profit

Years Net profit(in Net sales Net profit

crores) ratio
(in crores)

2015-2016 156.3 1875.86 8.33%

2016-2017 146.61 1929.51 7.60%

2017-2018 146.68 2024.38 7.24%

2018-2019 211.25 2273.50 9.29%

2019-2020 108.43 2391.25 4.53%

3000

2500

2000

1500 Net profit(in crores)

1000 Net sales

Net profit ratio
500

Source – Annual Report

Interpretation:
This ratio measures the company’s overall profitability. The year 2015 and year 2017 profit
is less comparing with other years because operating costs are increasing. In the year 2016
the company has more profitability because the profit has increased due to the increase in
income from services. The net profit has decreased during the year 2017 as there in decrease
in the rate of room occupancy.
Table 5.3 Expenses

Years Amount Net Expenses

expenses(in sales(in ratio
crores) crores)

2015-2016 1701.67 1875.86 90.7%

2016-2017 1761.13 1929.51 91.27%

2017-2018 1873.02 2024.38 92.52%

2018-2019 2060.43 2273.50 90.62%

2019-2020 2219.77 2391.25 92.82%

3000

2500

2000
Amount expenses(in
1500 crores)
Net sales(in crores)
1000
Expenses ratio
500

Source – Annual Report

Interpretation:
From the above it is understood that the expenses ratio of the company is quite fluctuating
during the final years 2012-2015. And again in the year 2015 2016 it has decreased and in
the year 2016-2017 there is an increase in the expenses ratio as there is decrease in the rate
of room occupancy which leads to increase in operating expenses.
Table 5.4 Return on Share Holders Fund

Year Profit Profit Return on

after after share
tax(in tax(in holders
crores) crores) fund ratio

2015-2016 156.3 80.75 1.93%

2016-2017 146.61 80.75 1.81%

2017-2018 146.68 80.75 1.81%

2018-2019 211.25 98.93 2.13%

2019-2020 108.43 98.93 1.10%

250

200

150 Profit after tax(in crores)

100 Profit after tax(in crores)

50 Return on share holders

fund ratio
0

Source – Annual Report

Interpretation:
From the above it is understood that return on share holders fund ratio of the company is
quite satisfactory during the final year period. Because of net profit will be increased at the
same time share holders fund capital increased in year of 2016 comparing with the year
2017 .
Table 5.5 Current

Year Cu current liabilities(in Current

current crores) ratio
assets(in
crores)

2015- 338.01 805.77 0.42

2016

2016- 316.02 1153.43 0.27

2017

2017- 1055.75 881.29 1.20

2018

2018- 1130.01 1281.93 0.88

2019

2019- 506.23 1392.59 0.36

2020

1600
1400
1200
1000 Current assets(in crores)
800
600 Current liabilities(in
crores)
400
Current ratio
200
0

Source – Annual Report

Interpretation
Current Ratio of 2:1 is considered as satisfactory for a firm. The company’s current ratio for
the year 2012-13 is 1.28 and it has decreased to 0.27% and later on it has increased to 1.20%
in the year 2014-15. Therefore it has shown a downtrend to 0.88 in 2015-16 and 0.36% in
2016-17. Current Investment has decreased during the year.
Table 5.6 Quick Ratio

Years Quick Quick Quick

assets liabilities Ratio

(in crores) (in crores)

2015-2016 299.64 805.77 0.37

2016-2017 275.84 1153.43 0.24

2017-2018 1012.59 881.29 1.15

2018-2019 1084.93 1281.93 0.85

2019-2020 458.67 1392.59 0.33

1600

1400

1200

1000
Quick assets
800
Quick liabilities
600 Quick Ratio
400

200

0
2015- 2016- 2017- 2018- 2019-
2016 2017 2018 2019 2020

Source – Annual Report

Interpretation:
Standard quick ratio is 1:1. From the above it is understood that the Company’s quick ratio
for the year 2012-13 is 0.37 and it has decreased to 0.24 and later on it has increased in the
year 2014-15.it has decreased to 0.85% and0.33% in 2015-2016 &2016-2017. Investments,
cash and short terms loans have decreased during the year. Current liabilities are more than
current assets.
Table 5.7 Absolute Liquid

Years Quick
Absolute liabilities Absolute
liquid assets liquid Ratio
(in crores)
(in crores)

2015-2016 48.96 805.77 0.06

2016-2017 43.17 1153.43 0.03

2017-2018 355.83 881.29 0.40

2018-2019 22.30 1281.93 0.02

2019-2020 21.7 1392.59 0.01

1600
1400
1200
1000
800 Absolute liquid assets
600 Quick liabilities
400 Absolute liquid Ratio
200
0

Source – Annual Report

Interpretation
The ideal absolute liquid ratio is 0.1:1.It shows liquidity position of the company. But the
above table shows it is not satisfactory. Because the company cash and bank balances and
marketable securities has decreased in the year 2016 compared to 2017. As the performance
of the company is less than 1 in 2017, the company has no enough funds.
Table 5.8 Fixed Assets Turnover

Years Sales (in Net fixed Fixed

crores) assets(in assets Ratio
crores)

2015-2016 1875.86 2065.69 0.91

2016-2017 1929.51 2129.29 0.91

2017-2018 2024.38 2153.66 0.94

2018-2019 2273.70 2211.55 1.03

2019-2020 2391.25 5587.36 0.43

100%
90%
80%
70%
60%
50% Fixed assets Ratio
40% Net fixed assets(in crores)
30%
Sales (in crores)
20%
10%
0%

Source – Annual Report

Interpretation
Generally, a high fixed assets turnover ratio indicates better utilization of fixed assets and a
low ratio means inefficient or under-utilization of fixed assets. The company’s fixed assets
turnover ratio for the year 2012-13 is 0.91 and in the year (2014-2015), it has increased.
There after the fixed assets turnover ratio is good. Finally, that effected a huge increase in
the ratio compared with the previous year’s ratio.
Table 5.9 Proprietary Index

Years Share Total Proprietary

holder assets (in Ratio
funds (in crores)
crores)

2015- 80.75 7226.22 0.01

2016

2016- 80.75 6766.37 0.01

2017

2017- 80.75 7198.38 0.01

2018

2018- 98.93 7562.12 0.01

2019

2019- 98.93 6093.59 0.02

2020

8000
7000
6000
5000
4000 Share holder funds (in
3000 crores)
2000 Total assets (in crores)
1000
0 Proprietary Ratio

Source – Annual Report

Interpretation
From the above it is understood that the Proprietary ratio of the company is quite
satisfactory during the final year period. This ratio has been constant for the period from
2012-2013 to 2015-2016 and has increased to 0.02.The performance of this ratio is
satisfactory in this current year.
 CHAPTER-6
FINDINGS AND SUGGESTIONS
 FINDINGS AND SUGGESTIONS

6.1 FINDINGS
From the regression analysis we can find that the 7 variables are dissatisfying customers.
They are: TABLE 7.1: FINDINGS TABLE

Factors Variables

Price Affordability and within budget

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

Fluctuating prices with demand

Offers and benefits compared to the competitors

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

ties
Food and beverages

CRM Swapping of rooms in unfortunate situational problems with the provided

room

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

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

 PRICINGISSUES:

a) AFFORDABILITY

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

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

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

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

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

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

c) OFFERS:

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

 AMENITIESISSUES:

a) WORKING CONDITION OF 6PROMISES:

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

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

b) FOODS ANDBEVERAGES:

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

 CRM ISSUES:

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

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

In today’s business, Customers are considered as the backbone of the company.

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

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

Referred following tests and websites

Reports and manuals

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