The following chapter of the research has been prepared by the researcher to provide the readers a clear view about the background, the problem statement, research questions and the sources from which the information has been collected. The chapter also highlights the analysis of the information and organization of the total study.
Customer relationship Management can be referred to as the process by which the technologically innovative companies meet the business challenges and improve their relationship with the customers (Goetsch and Davis 2014). The following research is based on Park Hyatt Sydney which is one of the premier hotels of Australia. The particular hotel has gained huge success after it implemented the CRM technology. The following hotel is situated on Sydney harbor and is rated as one of the best among the premium hotels of not only Sydney but the entire country. The five star experiences that it brings with it attract a large number of tourists and residents of the city who wish to enjoy the hospitality of the hotel. The integration of the CRM technology has been a boon for the hotel as it has helped it to become more efficient in managing the day to day activities and be more dedicated towards the customers. Customers are believed to be the most important part of a business and when it comes to hotels it is undoubtedly the best as without the presence of customers the hotel industry cannot strive (Abdul et al. 2013). The hotels use different techniques and procedures to maintain the competitive advantage and to ensure their sustainability. The successful implementation of the CRM helps the hotels to build a long lasting bond with the customers (Padilla and Garrido 2014).
Hotels generally face challenges when fixing the prices of the accommodation and the services provided to the users. The situation has become increasingly tough after the impact of globalization. The ever-changing demands of the customers are a thing to worry for every hotel. This is believed to be the main hurdle behind the implementation of the CRM in hotels. Since the last few years the Government of Australia has been aggressively promoting tourism in the country and has thus taken some appropriate steps to ensure the use of CRM by the hotels in the country (So et al. 2016). It was some few years back That the mentioned hotel decided to implement the system after witnessing the successful ventures of CRM initiatives undertaken by other hotels. Park Hyatt has not only met the expectations but has been one of the best examples of CRM success in Australia (Trainor et al. 2014).
The scenario of the tourism and hospitality sector of Australia was not the same as it is now. The following sector seriously lacked innovations and had a unimpressive customer relationship track record (Rahimi 2017). The absence of proper planning in the sector was not helping the cause of the industry and investors turned away just because of the absence of a profitable scenario. The hospitality sector of the industry was unable to provide the industry with quality services. The main problem of the industry laid in the basics, like absence of innovative marketing strategies, providing new cuisines, providing excellent accommodations, exploring new opportunities to satisfy customers, absence of a proper training program for the employees and many more as such.
The following research aims to study, analyze and find out the different CRM techniques of Park Hyatt Sydney and the ways by which they meet the different demands of the customers. Some of the objectives of the research are;
The researcher has prepared different set of questions to find out the responses of the participants of the questionnaire. The questions prepared by the researcher are;
The researcher has collected different information about hotel industry before beginning the research. After a careful analysis of all the information some critical problems has been marked out which is a negative implication for the hotel business globally. The most typical problems that hotels face is the failure to meet the expectations of the customers (Abdul et al. 2013). This makes the particular hotels vulnerable to loss of customers to other business entities in the same business. The loss is believed to be a permanent as because once the customers make a negative note about a particular hotel he is unlikely to return again. There are also other problems like the rise in the amount of complaints from the customers. The inability of the hotels to address to the problems and complaints of the customers sends a wrong note in the minds of the people.
The following research on the CRM management of Park Hyatt Hotel in Sydney, Australia has a huge scope as because a detailed report on the following subject has not been done for a long time. The researcher has selected a time period of four to five months to complete the entire study. It will start from the month of July, 2017 and will end in the month of October, 2017.
The investigator has aimed to organize the following report into five different segments with each segment having a different introduction and summary. The first chapter provides the background of the study and provides the readers with the main issues and problems that lies within the research. The literature review has been prepared by the researcher in the second chapter of the research. This part has clearly figured out the Customer Relationship management practices that are employed by the mentioned hotel of Sydney. One of the main chapters of the research is the third chapter which clearly describes the methods used by the researcher to prepare the whole research (Choudhury and Harrigan 2014). The analysis of the research and the detailed discussion of the research has been completed in the fourth part of the study. The concluding chapter of the research has provided the readers with the main findings of the total study along with the policies, implications and the recommendations that have been made by the researcher. The conclusion part has also been provided in chapter five.
In the hotel or hospitality sector, customers are the main theme. They play the most important part regarding the growth of the business. The primary purpose of a business relating to the hotel industry is to satisfy its customers. Therefore, if they can give an opportunity, the responsibilities must be fulfilled with utmost priority. The reason behind the concept that allows giving priority to the customers is that the money given by them are used for the development of the business (Khodakarami and Chan 2014). The amount is spend on marketing and advertisement of the business, the staffs are receiving their salary from such revenues. In modern times, the companies or the hotels are providing their staff necessary training regarding the said business. The cost of the training are derived from that money also. Therefore, it is important to develop the customer relationship management or the CRM with the intention to get the loyalty from the customers. According to Kristin Anderson, the customer relationship management is not only a tool but a strategy by which an anticipation regarding the future market policy of the hotel business can be done positively. Certain things are necessary regarding the customer relationship management. There is a necessity to understand the customer intelligence program.
In case of the relationship management, hotel industry is playing an important role. The researcher has taken the case of Park Hyatt Sydney to illustrate the use of CRM in the modern hotel industry. It is the primary duty of the hotel sector to satisfy the customers so that they know about the product of the respective business and its benefits. That will enhance the expectation of the customers and the hotel industry will learn about their positive and negative sides (Evans 2015). In this modern age, competitions are spreading its wings and it is important to deliver the best performance regarding the same. There are queues of competitors in the particular sector which force all the hotels to stage the best performance. Park Hyatt faces stiff competition from other hotels of the area like Four Seasons Hotel, Intercontinental Sydney, Pier One Sydney Harbor and many more such premium hotels (Abdul et al. 2013).
Customer relationship management is a strategy that teaches how to manage the customers with maximum facilities (Choudhury and Harrigan 2014). The philosophy of the management program is based on the marketing, sales and service programs. The outcome of a successful customer management is to develop the leadership strategy within a business. The most important thing in a hotel-based business is to build an effective customer relationship criteria for the promotion of the company. There are certain challenges that have to be faced by the entrepreneurs and the persons related with the business. Most of the challenges are related with the information regarding the guest service program. The mentioned hotel of this project has changed its organizational structure and performance in the last few years and the integration of CRM in the business has helped in the rapid growth of the business.
It is important to define the term Customer relationship management before getting into the main course of the same. In today’s competitive world, there is no necessity regarding the market related to the customers. Therefore, an effective customer management is necessary to attract the customers. It is the utmost duty of the hotels to get the loyalty of the customers, to keep the long lasting relationship with them and increase the level of profit for the betterment of the business. Thus, strategies based on the customer satisfaction are needed to be adopted.
Park Hyatt provides necessary training regarding the customer relationship management and therefore, the programmer has a transparent understanding regarding the demand of the customers and a constant awareness to achieve the ultimate motto of the hotel (So et al. 2016). Sufficient measures have been taken to reap benefits from the customer service and if any discount can be provided to the customer, that will help them to choose the right one.
The objectives of the Customer relationship program of Park Hyatt are to treat the customers on similar basis. There should not be any discrimination regarding the same. The program should not be divided based on the financial capacity of the customers (Stein et al. 2013). It is a fact that the nature of the customers is not same (Navimipour and Soltani 2016). Therefore, it is important to understand the demand of each customer and to fulfill his or her wish with maximum priority. Park Hyatt has taken a measured approach to identify the customers based on their financial conditions, purchasing power parity and demographic considerations (Mok et al. 2013). There are two types of options use by Park Hyatt to deal with the problems. First, is the personalized service and the second one is the customized products. Good behavior also plays an important role in this process. The role of the technologies is also important in this process. The mentioned hotel also provides a well equipped medical assistance to the guests to make them develop a strong bond and loyalty towards the hotel.
Certain other criteria have been maintained by the management of the hotel to build strong relationship with the customers. If there is any query made by the customers, the same should be solved as soon as possible. In this regard, certain skills are important. It is fact that the intention of the business should give the customers such free space so that they can do things in their own way. There should not be any obstacle created by the company as against the interest of the customer enjoyment.
It has been observed that there are certain loopholes present in each of the companies which regarded the hotel as a customer focused company. It is important to retain a convenient relationship with the customers in every possible step. Provide the customers many facilities in a cheaper cost can also be a customer oriented service. A census has observed that the customers generally need five basic things that are common in nature. They can be categorized as follows: service, price, quality, action and appreciation (Mok et al. 2013).
Certain steps are important to adopt to meet these demands of the customers. The base of the customer efficiency is needed to be strong and the relation between the customers should be maintained by using latest technologies. Strategies should be taken to meet the requirement of the customers and the hotel mechanism should facilitate the relationship between the customers and the hotel management (Goetsch and Davis 2014).
It is of no doubt that, the customers play an important role in the hotel business. Customer relationship management is not only limited to the technology. There should be profitable relationship maintained with the customers without affecting the primary purpose of the customer relation. If any interference occurred regarding the same, it may result into a low profit or low sale regarding the business (Choudhury and Harrigan 2014).
Park Hyatt has developed some stages in CRM to efficiently handle customers and make their visit an enjoyable one. At the early stage, the business personnel concentrate on employee efficiency, the hotel based technologies which prove profitable to them (Law et al. 2013). However, with the changes in time, there is a need of realizing a change in the notion. The main reason for the same is that the huge development regarding the technology and transportation sector (McManus 2013). The competitive markets are also responsible for that. The hotels are become cheaper and there is a necessity to change the mindset regarding the customer relationship. Now, it is the primary duty of the business personnel to make a growth in the hotel environment. An awareness regarding the same is important so that the standard of quality can be developed in a systematic way that can be both convenient and beneficial for the companies as well as for the customers (Padilla and Garrido 2014).
It is a fact that the market relating to the hotel management has become competitive and the customers are looking for the ultimate benefits in a cheaper rate. Therefore, it is important to make a change regarding the same. The management of the hotel has formulated its strategies in adherence to the present business world which stresses on the importance of customer satisfaction. Therefore, if it can be possible to meet all the demand of the customers, it will also be possible to make regular cash inflow in the business which can prove itself as a beneficial program for the betterment of the company.
The main purpose of the customer relationship management in Park Hyatt is to make the customers loyal for the services provided by the hotel and to make the revenue rate more convenient. This should enable a suitable relationship between the company and the customers can be retained (Rodriguez et al. 2015). The necessary information regarding the customers is kept by the mentioned hotel with a purpose to get in touch with the customers and in this way the CRM process can be easily facilitated by Park Hyatt. The hotel has an effective implementation regarding the market planning which is necessary to formulate e-business strategies.
The process of CRM is included by the management of Park Hyatt with an approach regarding the identification and development of the strategies towards a successful customer oriented planning (Khodakarami and Chan 2014). Marketing plays an important role regarding the relation management and therefore, a suitable implementation has been of different plans is the topmost priority of the service provider to come over the purpose. Due to the important character of the customer relationship management, it is considered as a key element for every types of customer. The Park Hyatt Hotel in Sydney has taken some processes that must be adopted to achieve the purpose of the customer relationship. The marketing facilities undertaken by the hotel makes them one of the most recommended hotel in such industry (Choudhury and Harrigan 2014).
The following chapter explains the methods used by the researcher to complete the research. The researcher has collected information about the mentioned hotel of Australia along with the different grading and profile of Park Hyatt Hotel.
The study was concentrated totally on Park Hyatt Hotel of Sydney and a sample size of 20 was pre decided by the researcher. The selected hotel was supposed to be one of the best in the industry because of the availability of enough information. The particular Hotel is a joint collaboration of the Park and the Hyatt group which has different branches located across the globe. The hotel strictly adheres to the guidelines of the Australian hotel regulations formulated by the Government of Australia (Choudhury and Harrigan 2014). The researcher selected some people from the management of the hotel and some employees who work for the hotel as the participants of the questionnaires. The main basis for the interview was the use and practices of the Customer relationship management programs that have been implemented in the selected hotel (Rushton et al. 2014).
Figure 1- Research Onion
Source- (Choudhury and Harrigan 2014)
The researcher adapted a case study based approach that helped to provide thorough information to address the objectives of the study. After the performance of the desk analysis of the hotel the researcher administered a survey of both the managers and some selected employees of the organization. The information received after the analysis was then cross checked to make sure the non existence of any flaws and obtain the perfect outcome (Padilla and Garrido 2014).
As mentioned earlier the questionnaire that was prepared by the researcher was provided to all the participants. The researcher obtained the permission of the organization and also the permission of the participants before conducting the interview. After the completition of the questionnaire round, the interviewer met with the participants separately and asked a few verbal questions that were necessary to complete the research. Some of the questions asked included;
After the end of the collection of the primary information, the researcher started assembling the secondary sources of information. He obtained the secondary sources of information from mainly the journals, magazines, newspapers and annual brochures and reports of Park Hyatt Sydney. He also obtained valuable information about customer relationship management success of the company from the magazine of Australian hospitality services.
As mentioned in the earlier part of the chapter a sample size of 20 selected people within the mentioned hotel were selected by the researcher to participate in the interview process. Questionnaire and personal face to face interview was conducted by him to successfully conduct the training method. The sampling method was done to save time as because it would have been impossible to note down the reaction of each and every employee of the hotel. The researcher made sure to select the samples in such a way that there were people present from all the departments of the hotel. This included people from the top level management team to the lower level staffs of the organization. The amazing response from all the participants helped the research to become more compact.
Primary information as well as secondary information was collected from the different sources and the researcher used different tables, descriptive statistics, charts and figures from the software to derive the relationship among the different variables of the findings (Padilla and Garrido 2014).
This chapter reflects the review that is mentioned in the literature section, the second section of the research report. There are certain points present that can be useful to draw an outline regarding the management program. The points are to be categorized as under:
It has been seen from the recent study that in Park Hyatt of Sydney out of 12 questionnaires recovered from the 20 administered, 80% are the male and the remains are females. It is an indication towards the male dominancy in the respective sector. The people who were administered came from different areas and some of them were found to have different cultures. There was also a difference in the salary of the employees as the managers income were much more than compared to the income of the normal staffs and employees.
Table No 1– Sex of Participants
Source- (As created by the Author)
It has been observed that most of the managers of other hotel are within the age criteria of 31 to 40 years. It is uncommon that the age of the managers is below 30 years. The majority occurred as in this sector, there is a demand regarding the experience. Managers, who are below 30 years, are of less experienced. Therefore, there is a clarification regarding the age of the managers are specified.
Figure No 2– Age graph of Participants
Source- (As created by the Author)
Proper education is necessary in this sector because it is important to predict the demand of the customer properly for the good relationship between customers (Padilla and Garrido 2014). However, in hotel industry, it has been observed that at least 20% of the managers have secondary education background. There is an exception in case of Park Hyatt, Sydney. Malcolm Thompson who is the General Manager of the Park Hyatt, Sydney has a good educational qualification and except this, he has certain other extra curriculum activities. Apart from this the employees are also well educated and trained which makes them disciplined and dedicated towards performing their duties (Presbury and Richardson 2014).
|
Frequency |
Percent |
Valid Percent |
Cumulative Percent |
|
|
Secondary |
4 |
20 |
20 |
20 |
|
Tertiary |
16 |
80 |
80 |
100 |
|
Total |
20 |
100 |
100 |
Table No 2– Educational Qualifications of Respondents
Source- (As created by the Author)
|
Frequency |
Percent |
Valid Percent |
Cumulative Percent |
|
|
Married |
12 |
60 |
60 |
60 |
|
Single |
8 |
40 |
40 |
100 |
|
Total |
20 |
100 |
100 |
Table No 3 – Marital Status of Respondents
Source- (As created by the Author)
It has been observed that there are a few managers who know about the customer relationship management. However, the rate has been shown a growing tendency towards positivity and now a maximum percent of people know about the subject. During a training process or during the live contact with the customers, they become able to gain sufficient knowledge about it (Goetsch and Davis 2014). As per the opinion of the General Manager of the Park Hyatt, Sydney, Mr. Marc Von Arnim, the customers interaction helps the hotels to understand the loopholes if any, and the feedbacks are also regarded as the important one regarding the matter. Necessary training guidance are also provided by the Park Hyatt authority to its employees with a view to make them eligible so that they can understand the importance of the customer relationship management (Choudhury and Harrigan 2014). Park Hyatt is popular due to its customer service. As per the Marketing Manger of the hotel, the customers are usually very happy with the room service as well as the hospitality of the hotels. Park Hyatt provided such luxurious rooms to its customer that has been well praised by each of the VVIP customers. As per the overall data regarding the hotel business, it has been observed that almost 25% of the managers do not even know the subject matter of customer relationship. According to the General Manager of the Park Hyatt, customer relationship program gives an opportunity to the hotels regarding their positive and negative sides. It is also help to chalk out plans regarding the betterment of the hotel.
Figure No 3– Years of Experience
Source- (As created by the Author)
Figure No 4– Customer Relationship Management Tool
Source- (As created by the Author)
This chart is indicating a market information system that is used by Park Hyatt regarding the process of the customer relationship management (Presbury and Richardson 2014). There are certain persons who used the CRM as a tool to make their own strategies regarding the betterment of the future of the hotel and to earn profit from the relation. The blue color in the chart is indicating the managers of Park Hyatt, who are implementing the process of CRM. The purple color shows the ratio of database marketing that is adopted by the managers regarding the process (Evans 2015).
There are certain problems that every hotel has to face during the course of hotel business. Park Hyatt also faces some serious problems while conducting the business and applying the CRM process in the organizational structure (Dedeo?lu and Demirer 2015). The problems can be categorized in a systematic way and the main problem regarding the same is about the financing criteria. Hotel business is a costly business, where there is a necessity of strong financing guidance. Another problem is based on the personnel management. There is a laxity regarding qualification regarding the personnel in the industry. Over 8.3% of the personnel are of suffering from de-motivation. In Park Hyatt, sufficient training is provided to the employees so that they don’t get de-motivated and lose their faith. Well educated staff and management officials are important in the hotel industry. Park Hyatt, Sydney is able to provide the same to the customers and this work as a reason behind the key success of the hotel.
Figure No 5– Tabular Response of CRM increases customer royalty
Source- (As created by the Author)
There are several reasons when the customers are coming to Park Hyatt. Over 52.4% of the business personnel are of the view that the customers are coming to the mentioned hotel because of the presence of a strong relationship with the customers. The customers will come to visit the hotel again and again for some different purpose (Khodakarami and Chan 2014). Therefore, the hotel ensures that they meet all their demands to make them satisfy and make their stay memorable every time. The mentioned hotel has been giving special credit on the customer satisfaction sector. They provide the customers with world class rooms, exquisite cuisines and state of the art technological facilities which cater to the demands of the different classes of customers.
Figure No 6– Managers Interaction with customers after first visit
Source- (As created by the Author)
|
FREQUENCY |
PERCENTAGE |
VALID PERCENTAGE |
CUMMULATIVE PERCENTAGE |
|
|
Valid YES NO Total |
15 5 20 |
75 25 100 |
75 25 100 |
75 100 |
Table No 4- CRM increases Customer Loyalty
Source- (As created by the Author)
Conclusions and Recommendations
The main aim of this content is to chalk out key findings relating to the customer relationship program of Park Hyatt Sydney and to come to a conclusion regarding the outcome of the topic. Such recommendations are also made out from the facts of the summary.
There is a study has been conducted that revealed that the managers of the other hotel industries have a laxity regarding the term Customer relationship management. Qualifications are the most important criteria of Park Hyatt (Presbury and Richardson 2014). There are a few instances where it can be seen that the managers are too reluctant about hearing to the different grievances of the customers. As a consequence, many of the hotels are being deprived of the latest technologies that must be installed in the hotels. Rather they are using the manual procedure to deal with the customers. Park Hyatt has utilized such an opportunity and made sure that the managers are always available with all the help to address the needs of the customers. Park Hyatt has utilized such an opportunity and made sure that the managers are always available with all the help to address the needs of the customers.
Information technology also plays an important role in this regard. Park Hyatt, Sydney has an excellent IT infrastructure. Non-existence and existence of the IT sector in the hotel business can create yawning gap between the industries. A recent survey has revealed that over 25% of the businesses personnel not even take any necessary steps to make the points strong. This creates a problem regarding the record keeping and the access of the customers of the particular hotels. There should be some flexibility in the hotel sector. Internet facilities are one of them. Park Hyatt, Sydney have been able to prove them as a competent one in all these sectors and establish their glowing image in the hotel industry.
Conclusion
The research on the CRM practices of Park Hyatt hotel in Sydney has opened new doors for conceptual thinking. The readers will be able to have a clear knowledge about the ways by which CRM is integrated into the hotel’s system and also the process in which it works. The researcher has given an idea about how the model works on the different levels of Hotel management. After the detailed analysis of the study it can be inferred that Customer Relationship management has changed the entire working structure of Park Hyatt Hotel and has helped it to efficiently carry out complex activities and maintain a healthy level of customer satisfaction.
The study conducted by the researcher has shown many positive factors of Customer Relationship management process in the hotel industry. In spite of the large number of positive effects the research was able to point out to many limitations of the latest management process. Some of them were directly linked with the objectives of the study. The researcher provided some recommendations to get rid of the following backlogs.
References
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Choudhury, M.M. and Harrigan, P., 2014. CRM to social CRM: the integration of new technologies into customer relationship management. Journal of Strategic Marketing, 22(2), pp.149-176.
Padilla-Meléndez, A. and Garrido-Moreno, A., 2014. Customer relationship management in hotels: examining critical success factors. Current Issues in Tourism, 17(5), pp.387-396.
Abdul, A.M., Basri, R. and Shaharuddin, T., 2013. Assessing the influence of customer relationship management (CRM) dimensions on organization performance: An empirical study in the hotel industry. Journal of Hospitality and Tourism Technology, 4(3), pp.228-247.
Rahimi, R., 2017. Customer relationship management (people, process and technology) and organisational culture in hotels: which traits matter?. International Journal of Contemporary Hospitality Management, 29(5).
So, K.K.F., King, C., Sparks, B.A. and Wang, Y., 2016. The role of customer engagement in building consumer loyalty to tourism brands. Journal of Travel Research, 55(1), pp.64-78.
Mok, C., Sparks, B. and Kadampully, J., 2013. Service quality management in hospitality, tourism, and leisure. Routledge.
McManus, L., 2013. Customer accounting and marketing performance measures in the hotel industry: Evidence from Australia. International Journal of Hospitality Management, 33, pp.140-152.
Evans, N., 2015. Strategic management for tourism, hospitality and events. Routledge.
Secchi, E., Roth Ph D, A. and Verma Ph D, R., 2016. The role of service improvisation in improving hotel customer satisfaction.
Presbury, R. and Richardson, S., 2014. An appraisal of important hotel attributes: A perspective from managers and customers of Sydney hotels. CAUTHE 2014: Tourism and Hospitality in the Contemporary World: Trends, Changes and Complexity, p.516.
Dedeo?lu, B.B. and Demirer, H., 2015. Differences in service quality perceptions of stakeholders in the hotel industry. International Journal of Contemporary Hospitality Management, 27(1), pp.130-146.
Choudhury, M.M. and Harrigan, P., 2014. CRM to social CRM: the integration of new technologies into customer relationship management. Journal of Strategic Marketing, 22(2), pp.149-176.
Rodriguez, M., Peterson, R.M. and Ajjan, H., 2015. CRM/social media technology: impact on customer orientation process and organizational sales performance. In Ideas in Marketing: Finding the New and Polishing the Old(pp. 636-638). Springer, Cham.
Goetsch, D.L. and Davis, S.B., 2014. Quality management for organizational excellence. Upper Saddle River, NJ: pearson.
Stein, A.D., Smith, M.F. and Lancioni, R.A., 2013. The development and diffusion of customer relationship management (CRM) intelligence in business-to-business environments. Industrial Marketing Management, 42(6), pp.855-861.
Law, A.K., Ennew, C.T. and Mitussis, D., 2013. Adoption of customer relationship management in the service sector and its impact on performance. Journal of Relationship Marketing, 12(4), pp.301-330.
Navimipour, N.J. and Soltani, Z., 2016. The impact of cost, technology acceptance and employees’ satisfaction on the effectiveness of the electronic customer relationship management systems. Computers in Human Behavior, 55, pp.1052-1066.
Trainor, K.J., Andzulis, J.M., Rapp, A. and Agnihotri, R., 2014. Social media technology usage and customer relationship performance: A capabilities-based examination of social CRM. Journal of Business Research, 67(6), pp.1201-1208.
Rushton, A., Croucher, P. and Baker, P., 2014. The handbook of logistics and distribution management: Understanding the supply chain. Kogan Page Publishers.
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