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Importance of guest feedback in increasing hotel sales IHM-A
Zaidi F. Page 1
INSTITUTE OF HOTEL MANAGEMENT,
AURANGABAD
IMPORTANCE OF GUEST FEEDBACK IN INCREASING HOTEL SALES
Submitted to: Submitted by: Mr. Hemant Gokhale Farhan Zaidi (H-15033)
“Submitted in Fulfillment of the Requirement for BA (Hons.) in Hotel Management”
THE UNIVERSITY OF HUDDERSFIELD,
UNITED KINGDOM
April 2010
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DISCLAIMER
This information is no way to be constructed as recommendation by the Institute of Hotel Management, Aurangabad, of any industry standards or as a recommendation of any kind to be adapted by or binding upon any member of the hospitality industry
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DECLARATION
I hereby declare that this document is the result of my own collective effort and that it
conforms to University, departmental and course regulations regarding cheating and
plagiarism. No material contained within this project has been used in any other submission,
by the author, for an academic award.
Student’s Name: Date:
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ACKNOWLEDGMENTS
I would like to take this opportunity to thank all the following people who have provided me
with their invaluable support throughout this endeavour:
Mr Tarun Thakral, Chief Operating Officer Le Meridien New Delhi
Ms Meena Bhatia, Vice President Le Meridien, New Delhi
Mr Jeetendra Chopra Diector Business Development, Le Meridien New Delhi
Mr Devendra Sissodia Director Food and Beverage Le Meridien New Delhi
Ms Rabab Fatima Khan Sales Manager Le Meridien New Delhi
I would specially like to acknowledge Chef Hemant Gokhale and Mrs. Tanushree Sinha for
giving me the opportunity to undergo this understudy module and also for the compilation of
this project.
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TABLE OF CONTENTS
SR. NO. TOPIC PAGE NO. 1. DISCLAIMER 1 2. DECLARATION 2 3. ACKNOWLEDGEMENTS 3 4. TABLE OF CONTENTS 4 5. SYNOPSIS 5 CHAPTER 1 INTRODUCTION 6 1.1 Introduction to Le Meridien, New Delhi 6 CHAPTER 2 NATURE OF THE ISSUE 9 2.1 THE ISSUE 9 2.2 STATEMENT OF AIM 9 2.3 STATEMENT OF OBJECTIVES 9 2.4 SCOPE OF THE RESEARCH 9 2.5 LIMITATIONS OF THE RESEARCH 10 CHAPTER 3 ANTECEDANTS 11 3.1 INTRODUCTION 11 3.2 MOTIVATION 13 CHAPTER 4 RESEARCH METHODOLOGY 15 4.1 DATA COLLECTION 16 CHAPTER 5 DATA ANALYSIS 17 5.1 DISCUSSION 18 CHAPTER 6 CONCLUSIONS AND RECOMMENDATIONS 19 7 BIBLIOGRAPHY 20
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SYNOPSIS
This study has been undertaken in order to suggest measures to improve hotel sales with the help of guest feedback and guest feedback systems at Le Meridien New Delhi. During the course of this study, the researcher has introduced Le Meriden New Delhi, briefed
the readers about the importance of guest feedback and the vital role it plays. The researcher
has gathered information from various sources, such as the management of the hotel and most
importantly taken down guest’s feedback.
The researcher has then highlighted the importance of guest feedback and how guest
feedback systems can be used to enhance hotel sales.
The researcher has also introduced some entirely new concepts of guest feedback systems.
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CHAPTER 1: INTRODUCTION 1.1 INTRODUCTION TO LE MERIDIEN, NEW DELHI Le Meridien New Delhi is conveniently located in the centre of the city, within a two-kilometer radius of major central government offices, Parliament House, the Presidential Palace, Rashtrapati Bhawan and the bustling commercial and shopping district of Connaught Place. The hotel offers very good leisure facilities, high standards of comfort and excellent food and beverage outlets. Guest Rooms Le Méridien offers a truly unique experience in every one of its stylish guest rooms and suites. Warm earth tones in addition to the luxurious sitting and work areas create an inviting ambiance for one to experience and enjoy.
Full-Length Mirror Hairdryer Satellite Channels Air-Conditioned Room Wake-up Service Bathrobes & Slippers Television Suites Available Refrigerator Sprinklers In Room Turndown Service In-Room Movies Smoke Detectors in Room Mini Bar Data Port Coffee and Tea Maker Fax Machine Cribs 24-Hour In-Room Dining Club Level Room Available Connecting Rooms Available International Direct Dialing High Speed Internet Access (INR 600 per day) Free Newspaper Non-Smoking Room Fruit Basket In-Room Safe Voicemail
Features & Activities Le Meridien New Delhi’s spa, Amatrra, is a unique concept facility that combines the time-tested ancient Indian science of Ayurveda and Astroscience (“Astroveda”) with global 21st-century technology and equipment to create, harmonise, and balance individual energy in a spa experience.
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Amatrra offers a completely unique, prescriptive approach of spa regimens and therapies. The ultimate goal is to provide preventive and curative methods of healing and welfare through diagnosis by our expert panel, including an Astroscience expert gifted in body element analysis, Ayurveda expert, fitness training expert, and yoga expert. Facilities include two Ayurveda Therapy Rooms, three International Therapy Rooms, one Chakra Therapy room with Vichy Shower, one International Therapy Suite for couples, a private Meditation Room, Lifestyle Room for consultation, and split wet areas for men and women with steam room and Jacuzzi. The spa also incorporates a gymnasium and outdoor swimming pool. Hotel Services
Health Club Express Check-In Express Check-Out High Speed Internet Access in Business Center (Charge) Currency Exchange Secretarial Service Laundry Service Safe Deposit Boxes Medical Services Available Spa Services Airport Check-In Elevators Multilingual Staff Disability Accessible Facilities Babysitting Service Airport Transportation (Charge) 24-Hour Concierge Service Beauty Salon 24-Hour Front Desk Barber Shop Car Rental Desk Florist Gift Shop News Stand Business Center Travel Desk Valet Parking Facilities Outdoor Pool Jacuzzi
Dining Le Méridien New Delhi’s restaurants offer an n array of fine Indian, Chinese and continental cuisine. NERO: cocktails and snacks
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THE ONE: International cuisine coffee shop MONSOON: Contemporary Indian cuisine LE BELVERDARE: Chinese cuisine with Cantonese and Szechuan influences. HENRI’S BAR: Cocktails and snacks CAFÉ CHOCOL ART: Desserts, deli
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CHAPTER 2: NATURE OF THE ISSUE
2.1THE ISSUE Guest Feedback
In a democracy elections give a citizen the facility to provide feedback to politicians. In schools students obtain grades on their academic performance. And in most companies, employees are given some type of performance review. How does one measure the success of a hotel? Initially one has to remember why feedback is important. Guest feedback tells you: What you’re doing right What you’re doing wrong How you can improve Opportunities to draw more business and improve your reputation
(Customer Feedback in Hospitality: Listening To Your Guests Using The Web by JOSIAH MACKENZIE on NOVEMBER 8, 2008)
2.2 STATEMENT OF AIM: To enhance hotel sales with the help of guest feedback and guest feedback systems. 2.3 OBJECTIVES: To study the importance of guest feedback and guest feedback methods in enhancing
sales growth of the hotel. . To observe the change in sales growth when positive guest feedback is provided. Determining the impact of negative feedback on hotel sales.
2.4 SCOPE OF THE RESEARCH:
The scope of this research is to first and foremost understand operations and the operational
procedures and situations specific to the hotel – Le Meridien, New Delhi. After gaining an
understanding of the situation in practicality, the researcher will attempt to find opportunities
for improvement within the Sales and Marketing department.
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2.5 LIMITATIONS OF THE RESEARCH:
The research has been carried out during a very short period of time thus the
researcher had limited exposure, and the intensity of the research is narrowed.
All the suggested recommendations, an outcome of this research have not been
implemented in the unit due to various reasons.
This research has not taken into consideration any laws, be it local, national or
international relating to any aspect of the hotel.
This research has been unable to map the actual performance of the hotel after the
implementation of the recommendations.
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CHAPTER 3: ANTECEDANTS
3.1 INTRODUCTION
“Guest feedback is a barometer of consumer satisfaction.”
(Kate Leahy)
Guest satisfaction surveys at hotels have evolved from report cards into tools that owners and managers can utilize to adjust their business strategies for increased profitability. But in order to gain the most from these programs, hoteliers must consider what kind of information will be most valuable to them and how to use it. As hoteliers begin to realize the benefits of these tools, new and more in-depth, customized programs are being set up around the globe to assess service, product and overall guest experiences in each hotel setting. Analysing data at the property level is the key to meeting customer expectations and loyalty. According to Mark Heymann, chairman and c.e.o., Carrollton, Texas-based UniFocus, a performance-management company in the hospitality, gaming and service industries, hoteliers must ensure that key measures are aligned with the hotels mission statement. "By doing this, hotel owners can say tactically, 'This is what we want to know that affects the root of our business and how we will measure it,' Heymann said.”It makes it real for them and supports their business philosophy." "What is important to a guest changes, so it is important that hotel owners keep this in mind and adjust their surveys accordingly to ensure that they are really tapping into how a guest rates the experience," Heymann said. For example, asking if the in room coffee was good when the guest didn't sleep well because of the bedding package will not reap solid feedback. "Understanding your own goals and developing a survey that speaks to them should be at the heart of any good program," said Jonathan Barsky, co-founder, San Rafael, Calif.-based Market Metrix. Hotel owners should prioritize their goals in conjunction with their survey provider, asses how they can determine it those goals are being accomplished and look for opportunities to improve their business in their immediate competitive market. Loyalty, product, service, pricing and demographics comprise the heart of a hotels competing elements and should be included in any guest survey. However, things like how quick check-in was for a guest or how nice a guestroom smelled are things that also should be considered, according to Barsky. "Guest loyalty is usually tied to emotions and these things are a better predictor than just products and services," Barsky said. A "good" survey question does one of two things: It indicates the probability that a guest will return or it helps you find out what happened for the duration of the guest experience that led the customer to his or her overall perception, said Mike Paton, senior Vice President, Sales. Signature Worldwide, a customer service training organization. Once a hotel gets information from its guests regarding these elements of their business, it is crucial that they act on both negative and positive responses, experts said. Real-time reporting makes this easier, particularly in correcting negative guest experiences, which ultimately can translate into strong customer loyalty. Correcting a problem in a timely fashion can go a long way—getting the attention guests feel they deserve can build a bond that might even be stronger than if they just had a neutral or positive experience, Heymann said "Guest recovery is a big part of building loyalty, which is at the heart of these surveys," . "You just have to save a few customers per month and the program pays for itself." Managing guest
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dialogue through these systems is a big benefit, according to Elizabeth Carducci, V.P. of business development for Medallia, a feedback solutions company based in Menlo Park, Calif "Hotels can act on the information provided the very next day," she said. "With the systems being real-time, managers can look at the low-hanging fruit and take care of it immediately." (Shannon McMullen, Contributing editor hotelmotel.com) Essential elements for a successful guest feedback program • Timeliness of the information • Accurate sample size • Commitment of the executive team to utilize the information • Communication of results to the staff • Connection to mission statement Source: Market Metrix, Medaltia, Signature Worldwide. UniFocus CASE STUDY: The Taco Test At Curry Village, a Delaware North managed property in California's Yosemite National Park, the general manager of an underperforming taco stand wanted to change the concept into a burger stand. Management decided to build in questions about the stand in their customer satisfaction surveys just to be sure that burgers were the right direction in which to head. The surveys indicated that guests didn't really want a burger stand; instead, they wanted better tacos. "The message was clear," says Stewart Collins, corporate director of Guest Path, the guest-services division of Delaware North. "Improve your tacos and operate better." WHY CUSTOMER FEEDBACK IS CRUCIAL TO THE HOSPITALITY INDUSTRY
When it comes to measuring customer satisfaction, it's widely accepted that relying on guests to complete surveys is common practice in the hotel and restaurant industry – but what about all that unstructured feedback as well - in other words, all those verbal comments that go un-captured everyday? Harness the 'true' voice of the customer and it can really pay off.
Research shows that over 90% of customer feedback is never actually captured which is why many successful enterprise organisations invest in systems and processes to ensure that they capture as much as they can. They know that putting customer feedback at the forefront of their business will help them make informed decisions to constantly improve their performance.
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However, one does not need to have a big business or even a customer service professional to benefit too. One organisation that has seen some impressive benefits from adopting an enterprise approach to managing guest feedback is the award winning Felbridge Spa Hotel in East Sussex.
Matthew Drinkwater, who is the operations manager at the Felbridge, is a huge believer in capturing and using customer feedback.
"Capturing customer feedback is critical for any business and provides us with actionable business intelligence that allows us to constantly improve the guest experience and the quality of our facilities including the spa and restaurant."
Drinkwater implemented an on-line service called managemycomplaints.com that made it easy for all staff to quickly and simply capture guest feedback at every opportunity and in every department.
But unlike the name suggests, it's not about managing complaints, it's about managing all customer feedback – good and bad.
Since using the service Drinkwater has been able to identify areas in the business that they are doing well and areas they need to improve which has led to increased customer satisfaction, more customer recommendations and reducing waste and inefficiency in the catering departments.
He adds: "It's a great benefit to the business and helps us maintain our customer focused approach to our business."
(eatout magazine.co.uk, 15th March 2010)
3.2 MOTIVATION
The researcher was motivated to carry out this study because of various reasons. Foremost of
them was that the feedback given by guests during sales calls was not taken into
consideration for improvement most of the times.
The Sales department which has ample interaction with the guest, company or agent should
always make sure that guest feedback is taken which will help to increase the hotel sales even
more.
Most of the negative feedback received by the researcher was of the reservations department.
Guests felt that replies to their queries and conformations were not sent quickly enough.
Because of this many reservations were cancelled but as the hotel had such a strong client
base action was not taken to correct these issues.
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CHAPTER 4: RESEARCH METHODOLOGY
As defined by Sekaran (1992), “research is an organized, systematic, data – based,
critical, scientific inquiry or investigation into a specific problem, with finding a
solution to it being the reason for its undertaking.”
The first step in the research is to identify the areas of concern in the organization. Once the
problem, and the factors that are associated with the problem are clearly defined, then steps
can be taken to gather information, and relevant data which is further analyzed so as to
suggest the possible ways through which the issue of concern can be rectified. The
framework followed by the researcher involves the following steps:-
Identifying the areas of concern
Establishing the aims and objectives of the research
Secondary Research
Gathering relevant data through research tools
Data Analysis and Recommendations
There are two purposes for which research can be undertaken. The first being to solve a
currently existing problem within a work place, and the second being to educate oneself on a
particular problem and make ones contribution to the general body of knowledge in that area
without the intention of applying the results found to solving any specific organizational
problems. The first type of research is called Applied Research, while the second is called
Pure Research.
“When research is being done chiefly to improve our understanding of certain problems
that commonly occur in organizational settings and how to solve them, the research is
called basic or fundamental research. This is also known as pure research.” – Sekaran
(1992).
“When research is done with the intention of applying the results of its findings to solve
specific problems currently being experienced in the organization, it is called applied
research.” - Sekaran (1992)
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4.1 DATA COLLECTION
“Observation is the first stage, in which one senses that certain changes are occurring,
or that some new behaviours, attitudes, & feelings are vaguely surfacing in ones
environment.” – Sekaran (1992).
For the purpose of this research the author has gathered his data by observation and by direct
questions asked from the guests using the hotel.
The researcher has taken feedback from guests from varying fields.
“Very good staff, brand new room and facilities, wonderful bar at the top level, good
restaurants, very nice lobby, as well as the gym”. Jatin Anand (Hindustan Times) 22.11.09
“The rooms were huge and so plush and the attention to detail was second to none.” Alou Nasri
for FHR Travels (11.01.10)
“The staff was absolutely unhelpful.” Tripadvisor (14.12.09)
“The front desk staff were slow to serve on the way in, and looking for extras to add to the
bill on the way out”. ( S.A.R Zaidi Circle Head Punjab National Bank) (22.10.09)
“The check-in staff were arrogant and rude and in fact so were the majority of the staff in the
hotel including a lady duty manager who is rude and unhelpful”. Walter Van Persie, Tourist
(05.11.09)
“Reservation staff was slow to reply to mails and therefore I had to book a room in another
hotel” Rahul Verma, Honda (13.01.10)
“Restaurant staff are slow and ineffective - they forget orders, are slow to deliver food/drinks
and seem disinterested in being there”. Lakshay Madaan, Businessman (17.01.10)
The room was excellent and the club facilities with my room were very convenient.
Surbhi Gupta, Tourist (19.12.09)
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CHAPTER 5: DATA ANALYSIS
INTRODUCTION
The objective of this chapter is to analyze the data obtained by taking guest feedback from a
wide range of guests. From first time guests to loyal ones and from FITs to groups.
Data Analysis is a process of inspecting, cleaning, transforming, and modelling data with the
goal of highlighting useful information, suggesting conclusions, and supporting decision
making. Data analysis has multiple facets and approaches, encompassing diverse techniques
under a variety of names, in different business, science, and social science domains.
Inference from guest comments
Fig 1.0
From Fig 1.0 the researcher derives the information that 60% of the guests were satisfied with
the service that they received and 40% of the guests were not satisfied with the service they
received.
60
40
Guest Satisfaction
Satisfied Guests
Dissatisfied Guests
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5.1 DISCUSSION
The researcher found this only because guest feedback was taken.
In a city like New Delhi there is such a high percentage of occupancy throughout all 5 star
rated hotels that negative feedback is not going to create a huge dent for that particular hotel.
But in today’s cutthroat competition hotels can edge ahead only by paying attention to detail
and correcting problems.
These problems come to light when guest feedback is taken and if they are improved upon
they can add to the overall growth of the hotel.
“Guest feedback not only leads to simple operational fixes, it also tells you more about who your customers really are.” Kate Leahy, Associate Editor, R & I Business
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CHAPTER 6: CONCLUSION AND RECOMMENDATIONS
Over the past several years Market Metrix has tracked the rising popularity of user generated reviews. These results track the considerable and growing number of hotel guests (business, leisure and group) that are checking consumer reviews before booking and then sharing their experiences online. This increase in user generated content means that conventional, controlled messages through TV, magazine, and direct mail now have to compete with the trusted words of fellow consumers. Research indicates that individuals are more disposed to believe other guests than more formal forms of promotion methods.
(August 27, 2009 Hospitality Industry magazine)
But are hotels acknowledging this game-changing shift in communication? Are they attempting to regain control by participating in the dialogue, responding to negative reviews and taking action to drive improvement in the guest experience? Are they finding new insight and opportunity from their own and competitor reviews?
A recent survey conducted by Market Metrix and TripAdvisor focused on these questions. How are hotels perceiving and responding to the growing importance of user reviews? Are they embracing or ignoring this significant new trend?
The sample included hotels registered on TripAdvisor as well as a mix of hotels from all industry segments. The consensus among these hotel managers is that review sites, such as TripAdvisor, are important to hotels. An impressive 90% of hotel managers think reviews are very important and nearly as many (81%) visit review sites at least weekly. Although some managers expressed concern about the authenticity of reviews, many described their dependence on these sites (e.g., “As a limited service hotel we get a lot of travelers who rely on those surveys.”)
Among all review sites, hotel managers believe that TripAdvisor has the biggest influence on their guests. After Trip Advisor, Expedia, Hotels.com and Travelocity (in that order) were also mentioned by hoteliers as important to their guests and how they make booking decisions.
Most hotel managers (70%) are familiar with TripAdvisor’s POPULARITY INDEX, which ranks the top hotels in a city. This helpful metric is used by many consumers to quickly narrow their hotel search. 90% of hotel managers believe that the POPULARITY INDEX is important to their hotel and follow their ranking regularly. Nearly half of hotels (46%) have seen their POPULARITY INDEX increase, slightly less (42%) report no change and 12% have seen their rank decline. Most hotels believe a change in their rank was likely due to a change in their service, rather than due to changes in their product, price, or other variables.
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Hoteliers clearly recognize the impact that user reviews have on their business. But in startling contrast, only 15% of hotels have policies or guidelines for how to manage user-generated reviews. A whopping 85% of hotels have NO guidelines for monitoring, responding or acting on guest reviews.
Hotels do not recognize the impact of guest feedback. If guest feedback is taken regularly and negative feedback is acted upon then hotels can go a long way in increasing their revenue and creating a good name for themselves in the market.
6.1 RECOMMENDATIONS
The researcher’s first and foremost recommendation to the hotel was to take feedback from as many guests as possible
Secondly to act upon the negative feedback received from the guests.
The researcher also suggested some new methods to take guest feedback. The hotel did not have a separate guest comments zone on the website but had one only on the main Starwood network. The researcher suggested the hotel to have a guest comments zone Le Meridien New Delhi’s individual site and it had a positive response in the following months after implementation.
The very reason hotels exist is to provide service to people. Fulfilling a need, whether it is a
room for the night, or a meal, or an activity, a hotel is there to serve people. It is important to
understand the nature of the hotel customer. The guest at any hotel can be from any walk of
life. By understanding who these guests are, and what their characteristics are, a hotel can
better serve them. This can be done by taking feedback from the guest through various
means. This will in turn add to the sales growth of the hotel
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BIBLIOGRAPHY
WEBSITES:
http://en.wikipedia.org/wiki/Hospitality industry
http://education.in.msn.com/careers/article.aspx?cp-documentid=1165546
http://hotelmotel.com
http://eatoutmagazine.co.uk
http://wego.com
ARTICLES
Bowen J. and Chen S., (2001), “The relationship between customer loyalty and
customer satisfaction”, International Journal of Contemporary Hospitality
Management, Vol. 13 No. 5, pp.213-217
Leahy K., (2009), “5 ways to manage customer feedback”, Restaurants and
Institutions
Mccullen S., (2006), “Targeted feedback, analysis keeps hoteliers on track”,
Hotelmotel.com
Leahy K., “Turning the tables”, Restaurants and Institutions
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