Proposal, BBS 4th Year, Format

Final Proposal format for BBS 4th year report

CHAPTER- IINTRODUCTION

1.1 Background of the study

Nepal  is  a  country  of  its  natural  beauty,  which  is  treated  as  domestic resources  to  earn  the  foreign  currency  and  it  plays  an  important  role  in-economic development of the country. Many tourism industries are running in Nepal to contribute economic as well as tourism development of the country although  most of the people are living below the poverty line  due  to  various  factors  like  rugged  terrain  land,  rock  position,  poor resources, endowment, institutional weakness and inappropriate economic policies are responsible now peace of development of Nepal.

Tourism  industry  is  commonly  known  as  service  industry.  It  is  totally concerned to provide service to its customers. This service is same as that of teachers, doctors, lawyers and social workers whose service cannot be visible. So it is called invisible industry. This industry does not produce any commodity. It is an imagination and dreams of any function. Actually  it  cannot  be  seen  practically.  It  is  only  the  feelings.  Tourism is very important for a developing country like Nepal. In fact it is the most important industry for earning foreign currency, which is needed to solve difficult problems and for the development country, culture and art.

Tourism industry is rapidly developing in the competitive way around the world. To maintain the largest number of tourism we need large amount of hotel. It is not necessary to say to make hotel we need all the materials for construction e.g. cement, break, iron and everything also food stops and drinks. So for rapid development of everything the role of tourism is describable. Although, Nepal is a place for the lot of attraction for tourist, it was close till 1950 for all foreign and there were not any hotel, transportation and service. Therefore tourism industry is not rapidly developed.  After  1960  tourism  development  started  plan  wise  in  Nepal. Around 1951-1952, the  first  hotel was established  in jawalakhel, Nepal.

But it was close after the bad consequence of months. Hotel coronation is the first commercial hotel of Nepal. And now it is changed into snowline Hotel with the passage of time many hotels have been established gradually because of  the  liberal and  market  friendly economic policy of government.

The Hotel Industry

While going to origination of the hotel industry in the “Hotel” of “Inn” is defined by British law as a “place where a bonafied traveler can receive food and shelter, provided. He is in a position to pay for it and is in a fit condition to be received. Hence, a hotel must provide food beverage and lodging to travelers on payment and has in turn, the right to refuse if the traveler is drunk, disorderly, unkempt or is position to pay for the service.

In  the  other  word,  an  establishment  that  provide  food,  shelter  and  other amenities  for  the  comfort  and  convenience  of  the  guest  with  a  view  to making a profit, is called a hotel. The  word  hotel  is  very  new  word,  which  was  taken  by  the  emerging nation of  Europe, especially Switzerland. It was in Europe that the birth of  an  organized  hotel  industry  took  place  in  the  shape  of  chalet  sand small hotels, which provided services by the aristocracy of the day.

The real growth of modern hotel industry took place in the USA beginning with the opening of city hotel in New York in 1774. This was the first building specially created for hotel purpose. This made the most competition between different cities and resulted in good hotel industry. Some of the finest hotel of the USA was in this era, but the real growth in hotel industry came in the early twentieth century. This period also saw the beginning of chain  profit  and  trained  professional  to manage  the business.

Type of Hotels:

The  hotel  is classified to suit  the standard of  guest. Guest  has a right to choose the hotels of their standard. Hotels classified categories according to the following basic factor: -

 Location

 Numbers of rooms

 Type of plan room rates that are quoted

 Type of clientele

 Length of guest stay.

 Facilities that offers

                                              

Classification of hotel in Nepal according to facility

Types                                   no.

One star hotel                       9

Two star hotel                      17

Three star hotel                     9

Four star hotel                      16

Five star hotel                       10

Name of 10 Five star Hotels are:

1) Hotel de l‟ Annapurna

2) Hotel Sangril-la

3) Hyatt regency Katmandu

4) Radisson Hotel Katmandu

5) Crown Plaza Hotels & Resort  (i.e. Soaltee hotels Ltd.)

6) Hotel Yak & Yeti

7) The malla Hotel

8) Gokerna forest Resort

9) Shanker Hotel

10) Dwarika's Hotel (Source: www.agoda.com/Kathmandu Hotels)

1.2 Customer Relationship Management

The hype surrounding CRM has only been pervasive within business, technology, media, and  academic  communities  since  early  1997  (Fayerman,  2002).  According  to  Wilson(2002),  the  influential  study  by  Reichheld  and  Sasser  (1990),  which  showed  the  large impact on profitability of small increases in customer retention rates, was the start out, making the marketing community more conscious of the need to manage customer relationships in the long term as well as prior to the first sale.

CRM technological initiatives are most commonly implemented in functional areas such as customer support and service, sales and marketing to optimize profitability and revenue. However, there is no universal explanation of what CRM is, since the area is fairly new and still under development. It is therefore important to know that numerous attempts of defining CRM exist and that many organizations adapt the definition to their own business and their unique needs.

The traditional view is, that CRM is a technological system for information handling and analysis (Croteau & Li, 2001).Others view CRM as a sales or marketing function only. However,  according  to  Fayerman  (2002)  the  critical  interface  is  somewhere  between CRM  technology  and  marketing  and  an  understanding  of  the  perspective  from  both  of these areas is a requirement for cross-functional integration. It must be remembered that effective CRM is more than a software solution; it is about how customer information is used to create an ongoing  relationship  with  the  customer.  To achieve that outcome, different relationship approaches, and perhaps even different CRM technologies, might be needed for the different types of customer relationships found in B2B or B2C markets (Ragins & Greco, 2003).

1.3 Introductions of Hotels Under Study:

According  to  the  classification  made  by  government,  there  are  six five star hotel in Nepal. Among them Soaltee and Yak & Yeti Hotel is choose for study.

1.3.1 Soaltee Hotel Limited

Soaltee  hotel  limited  was  established  in  1968  under  the  company  act 1964 as a private limited company. Later on in 1975 it was converted into public  limited  company  and  admitted  international  finance  corporation, Washington D.C. and oberoi hotel, India as shareholders. The hotel was operating  in  collaboration  with  oberoi  hotel  under  the  name  of  soaltee oberoi  till  May  1994.  The  management  of  the  hotel  has  been  changed 1^st from oberoi hotel to holiday Inn crown plaza since 1 June 1994 and then onwards the hotel is in operation under the mane of hotel soaltee holiday Inn  crown  plaza.  The  hotel  was  operating  in  collaboration  with  oberoi hotel.

The  main  objective  of  the  company  is  to  provide  hotel  facilities  like business center, swimming poll, health club, beauty parlor, and conference  hall,  banquet  facilities.  It  provides  same  day  laundry,  dry-cleaning,  free  transport  service.  The  facilities  offered  art  barber  shop, beauty  salon,  currency  exchange,  travel  agency,  car  rental,  news  stand gift,  art  and  craft  shops  etc.  some  of  the  attractions  are  casino  Nepal (Black jack, roulette, pontoon, flushable) a modern swimming pool surrounded by green lawns. It provide Nepalese music and dance are also attractive. All rooms over look the mountains and are fully air conditioned with both, Shower, and telephone & 4-channel music. The soaltee hotel limited, Kathmandu is the premier hotel of the kingdom and is located in the green suburbs of tahachal. It is fifteens minutes away from the airport and ten minutes away from the city center. Spread over 11 acres of space and surrounded by manicured gardens and with views of the mountain ranges. The soaltee hotel limited offers a resorts atmosphere  for both business and leisure travelers.

1.3.2 Yak and Yeti Hotel Limited

Yak & yeti hotel Limited was established in 1965 under the company act 1964.  Hotel  Yak  &  yeti  is  a  premier  five  deluxe  hotel  and  is  located  in the Heart of Katmandu Nepal. The main objective of hotel is to provide hotel service, Business center, swimming pool, Heath club, Beauty parlor, Conference hall, and banquet facilities of five stars standard. Yak  &  Yeti  hotel  Limited  offers  three  special  suites  designed  for  royal living and two very special presidential suites. Every picture window of each room frames a masterpiece view of the emerald valley of Katmandu. All  rooms  have  a  private  both,  shower  telephone  music  system,  small refrigerator  and  central  air  conditioning  as  well  as  heating  system  with individual  in  room  thermostat  control.  Each  room  is  tastefully  designed with generous woodcarving and Nepal art, fashioned in the unique Newari design & Tibetan style.

It  has  three  restaurants  and  bar  as  chimney  restaurant  and  bar,  Durbar Restaurant.  Sunrise  restaurant  and  coffee  shop  Dhaulagiri  bar  etc.  This hotel  offers  a  complete  health  center.  In  the  basement  of  the  hotel  are separate ladies and gents saunas, showers and changing facilities, there is also outdoor pool for an adult and baby room service is also at hand for pool side snacks.

1.4 Statement of the Problem

What keeps a good customer coming back is good service and today’s economic climate demands  more  than  ever  that  customer  acquisition,  profitability,  and  retention  remain central to an origination’s business. But that cannot be done if customers are running out the  door  before  organizations  even  discover  who  they  were  or,  more  important,  what they potentially were. To keep them in store, organizations need to offer a better customer experience and they are turning to CRM applications and processes to do just that. Intimate customer relationships offer organizations several advantages.  To begin with, the relationship can create a committed customer. More than simply a repeat purchaser, the committed customer has an emotional attachment to the seller. These emotions can include trust, liking, and believing in the organization’s ability to respond effectively and promptly to a customer problem.

                                                                    

1.5 Objectives of the Study

Main  objective  of  this  research  is  to  study  the  Customer  Relationship  Management  in Nepalese Hotel industry under study. The specific objectives of the study are as follows:

• To identify the objective of CRM that Nepalese Hotels define.
• To examine the management and usage of the customer relationship in Hotels.
• To evaluate the effectiveness of customer relationship management in the Hotel Industry.

1.6 Significance of the study

This  study  is  all  about  the  CRM  in  Hotel Industry,  which  focuses  on  the  three questions as its objectives. A sound CRM system should ensure that customers get the same fast response and the same service, no matter how they contact the organization. The conclusion drawn from this study has the significance importance to all Hotel organization, consultants, managers and CRM initiatives, information management professionals who want to explore the ramifications of CRM on traditional information management practices and senior management who are planning to enter or expand their Hotel operations and the other researcher in the same field.

1.7 Research Questions:

The following research questions have been developed to carry out this study.

1. How do Nepalese organizations define CRM?

2. How do Nepalese organizations manage CRM?

3. How do Nepalese organizations evaluate CRM?

                                     

1.8 Limitation of the study

No research is biased by any limitation. Thus this study is also limited by the following factors.

1.         This  study  only  covers  the  CRM  objectives,  CRM implementation,  and CRM evaluation of the Nepalese  Hotel Industry.

2.         This  study  is  limited  to  only  two  Five Star Hotels  of Nepal,  namely Soaltee Hotel Limited and Yak and yeti Limited.

3.         This  study  is  based  on  the  primary  sources  of  data.  Therefore  reliability and validity might affect by the respondent intension.

4.         The time frame of the review period is only one year. i.e. 2013

1.9 Organization of the Study

The whole study has been organized into five chapters in the following order:

Chapter I: Introduction

This  introducing  chapter  provides  the  reader  with  an  insight  to  the  research  area.  This begin by briefly discussing the general background of CRM associated with customers followed by the working of hotels, historical background of CRM at a glance, introduction of the organization under study, statement of problem, and overall objective of the study. The overall objective is more specifically defined with three outlined research questions. Finally, the significance, the limitations and the organization of the study are presented.

Chapter II: Literature Survey and Theoretical  Framework

The aim of this topic is to select relevant theories and concepts that the researcher will use in the research. Hence, the frame of reference guides the researcher when collecting the  data  and  helps  fulfill  the  objective  of  gaining  a  better  understanding  of  CRM  in hotels. After presenting the conceptualization, the researcher provides a visualization of the emerged frame of reference. For this, the researcher reviews earlier studies within the research objective area along with some of the Master’s Degree thesis available in different  University  Library  from  there,  concluding  the  research  gap.  Researcher  will review CRM, CRM objectives, Management of Customer Relationships and CRM Evaluation.

Chapter III:   Research Methodology

In this Chapter, the selection of methodology is based on the research problem and stated research questions. Motivation and justifications for all adopted methodological choices is given in each section. This chapter is followed by research approach, research strategy, Data collection methods, sample selection, Data analysis, and Research quality criteria.

Chapter IV: Results and Discussion

The  chapter  present  the  empirical  data  collected  from  each  of  the  organizations.  The researcher also during the analysis process begin to explain and discuss possible reasons, patterns, and tendencies that are found in the empirical data. The analysis contains both within case analyses of each organization as well as a cross case analysis, where the data from the different organizations are compared. The analyses are presented in a manner that addresses the three research questions of this study.

Chapter V: Findings and Conclusion

Chapter V contains the summary of the findings of the survey, the overall conclusions that  can  be  drawn  from  the  research.  Conclusions  are  given  in  relation  to  the  three research questions and the chapter is ended with recommendations for managers, theory, and further research within the area of CRM in hotel business.