IND800 Project: Customer Service and Loyalty at Shangri-La Hotel

This report delves into the customer service operations of the Shangri-La Hotel, evaluating its internal and external structures to understand their impact on customer loyalty. The study examines the hotel's strategies for attracting and retaining customers, including employee training and the provision of space for retailers. It analyzes the stages of correlation promotion in the hotel industry, focusing on how factors such as service quality, customer relationships, and competitive marketing influence consumer behavior. The research includes a literature review on customer service, customer equity, and customer retention, alongside an assessment of the hotel's existing customer service offerings, aiming to provide practical suggestions for enhancement. The research design includes objectives, research questions, methodology, and limitations, culminating in a discussion of findings and recommendations for improving customer satisfaction and loyalty within the Shangri-La Hotel.

EXECUTIVE SUMMARY
In recent times, every firm should give importance to the customer relationship
building in order to enhance their loyalty level. This report is about Shangri-la Hotel
which is the greatest market at the international level. In this research paper, the
internal and external working structure of the Shangri-la Hotel have been evaluated
with analysis of different working structure and operations. The hotel is offering the
better space to the customers and also the new retailers to open the different outlets in
the different zones of the differenthotel. The hotel is investing the huge amount of
money in order to train the employer who are playing an important role inattaining the
attraction of the customers.

CONTENTS
Executive summary..................................................................................................................2
Introduction..............................................................................................................................3
Stages of correlation promotion in hotel industry.............................................................4
Affect of factors on Hotel industry of Sydney....................................................................5
Research Objectives.............................................................................................................6
Research questions...............................................................................................................6
Literature review......................................................................................................................7
Customer Service..................................................................................................................7
Impact of customer equity on customer relationship and loyalty....................................7
customer retention................................................................................................................9
Customer services and customer retention......................................................................10
Research Design.....................................................................................................................11
Choice of Research Instruments.......................................................................................11
Choice of Methodology......................................................................................................11
Sampling..............................................................................................................................11
Analysis of data...................................................................................................................12
Limitations of the research....................................................................................................12
Discussion................................................................................................................................12
Conclusion...............................................................................................................................14
Bibliography.............................................................................................................................16

INTRODUCTION
Service industry is the only industry that fulfills the needs of the customer for long term. The
customer (Breschi, May 14, 2019)relation and loyalty is totally the department of Correlation
Promotion and CRM (Customer Relationship Management).Correlation Promotion is one of
the policies of the Marketing Strategies which established or implemented to increase the
customer holding, or for the concern of customer satisfaction and to develop the interest of
customer for the long time (Maharjan, November 2017). In last short period of times in
Sydney hotel industry boosted up. They increased their competition and customer avail many
different services and facilities from many different hotels (Verhoef, 2013). It is compulsory
for the hotel industry in Sydney to generate exact rules and plan to increase or uphold their
cut throat position in the marketplace. As per hotel business, buyer loyalty and customer
satisfaction are the most vital factor; hotel business can’t bear losing the customer. By taking
this into notice the hotels can also generate a competitive benefit in the market.
The other point which is most important in Hotel Industry in Sydney is Consumer Behaviour
(Mohammed, 2012). The consumer behaviour can also be identifying as psychological or
emotional process which can be used by the consumer to acknowledge their demands and
also how to meet their demands in the market (Verhoef, 2013). There are many other features
which can affect the behaviour of the consumer towards the hotel industry the factors like
different products, services, customer relationship and the targeted customers with the help of
relationship marketing. There are many types of customer relationship which are very helpful
to generate the positive consumer behaviour. Below are the following features of Correlation
Promotion which can be used in hotel industry of Sydney to manage the customer behaviour.
STAGES OF CORRELATIONPROMOTION IN HOTEL INDUSTRY
There are major three stages of correlation promotion in the Hotel Industry.
1. Retain consumers
2. Attract consumers
3. Improve association with clients (Mohammed, 2012).
These are the top important points in the correlation promotion which are very helpful to
understand the behaviour of consumer in any specified area. To understand the behaviour of

the consumer is the most significant for the growth of the hotel industry, because due
consumer behaviour the requirements and the need of the customer can be identified, so the
consumer can decide the purchasing preferences and services preferences. With the help of
the diagram the major factors of the association can be make clear.
(Martin, Payne, & Ballantyne, 2013)
By the help of the above figure, it can be calculated by the Correlation Promotion to focus on
the separate areas of operations to develop the customer relation and to hold the customer for
any specified area of services. Below are the following which can influence the RM in Hotel
Industry.
Effect of factors on Hotel industry of Sydney
These factors that affect hotel industry are the services given to clientele, services given to
customer, numerous channel exchanges with the customers, product differentiation, business
marketing and competitive marketing charm which attract the customers in the hotel industry
of Sydney. The increase in scale of competition is the second largest factor which have
influenced in the relation marketing in the hotel industry of Sydney. There are many hotels
which have their own chain and operation in Sydney and giving quality services to their
customers on different level (hiltonworldwide.com, 2017). Below is the main challenger’s
occurrence in the hotel industry of Sydney
1. Four Points by Sheraton Sydney
2. Hilton Sydney

3. Intercontinental Sydney.
4. Shangrila Hotel Sydney
5. Marriot Hotels
6. Mercury Sydney Harbour
7. Novotel Sydney Darling Harbour
8. Park Hyatt Sydney
These are competitive hotels in the market of Sydney who are trying to beat the services
offered by the Shangri-la Hotel. The increasing level of the competition further forced the
management of the hotel to make use of the new and advanced technology to improve its
services to upper level (Verhoef, 2013).
RESEARCH OBJECTIVES
This research aims to assess the existing customer services offered by Shangri-La hotel and
provide practical suggestions to improve them in order to enhance customer satisfaction and
loyalty.
RESEARCH QUESTIONS
o What are the existing customer services offered by Shangri La hotel?
o Are there any aspects/factors of those services to be improved?
o What are the practical suggestions to improve the customer services of Shangri La hotel
to increase customer satisfaction and loyalty?
LITERATURE REVIEW
CUSTOMER SERVICE
Chekitan (2014) reported that the main customers of the hotel are the youth members of the
society. Different media articles reveal the fact that hotel is had 17,000 different customers
and earning about $7,000 profit from the different customers. Hence, based on the high
quality products the customer retention is high for the coffee outlets present in the different
part of the international world (Chekitan, 2014).

Russell, 2015 evaluated the working or artisan hotel that is working by following the business
structure of the different franchise, but the Artisan Roast followed the style of ownership and
based on the corporate owned locations. The C.E.O of the hotel follows the entrepreneurial
vision and identifying the news ways to invest in the hot stock for achieving the bright future
(YK & Banerjee, 2013). The management structure followed by the different outlets is simple
and same. The simple structure of the hotel is based on the hierarchal structure, and C.E.O
hire the different managers for the different outlets and manager is reliable for the customer
service relation, and workers of the hotel are liable to follow the instructions of the manager.
Different outlets also have the independent licensing and are working independently without
the interference of the C.E.O of the hotel. The Artisan Roast also provide the motivational
rewards to the employees in order to improve their working, both extrinsic and intrinsic
rewards are offered to the employees this is turn also assure the quality of the product and
high quality products, in turn, earn the loyalty of the customers (Russell, 2015).
Stephanie, et al., 2016 and Roberta, et al., 2016 evaluated the management operations of the
coffee are very significant in order to maintain the proper working structure of the coffee
shop. The hierarchal structure followed by the hotel provides the proper maintenance of the
working of the different operations. The coffee shop follows the range of the ethical
standards of the business. The ethical standards of the coffee shop inspired the nature of the
human spirit and enhanced the loyalty level of the customers (Roberta, Shapoval, & Murphy,
2016).
INFLUENCE OF CUSTOMER EQUITY ON CUSTOMER RELATIONSHIP
AND LOYALTY
Kumar, et al., 2015 highlight the fact that different management operations have same
common inputs as raw material, capital, time and equipment. The four V model based on the
variety, volume, variation and visibility has been performed in this research. The volume of
the Artisan Roast is the clear picture of the different organized operations. They have lower
volume of labour; less staff members and different staff members performed the different
tasks. This result in the unit high cost of the Artisan Roast. The variety dimension cost is also
high for the Artisan Roast compare to the large coffee shop like Starbucks. The visibility

dimension helps to attain the customer satisfaction and highlight the ability of the customer to
see the different operational process of the coffee shop (Kumar, et al., 2015).
Prud’homme, et al. (2016) explained the different strategies that help in the investigation of
the different environmental issues including the competitive challenges of the market. The
flexible structure of working with the hotel molds the strategic plan based on the demand of
the customers and market need. The Shangrila hotels are proactively dealing with the impact
of the environment and incorporate the different policies for the safety of the environment.
The business structure also follows the rules and regulations of the lawsuits that help to
understand the environment issue (Craig & Rogers\, 2008). The improvement in the different
operations improves the trust level of the partners and also the retention rate increased. They
also believe that the environmental responsibility is important for the different business in
order to contribute toward the better future of the hotel. The minimization of the
environmental footprints also helps in the improvement and helps in the continued expansion
of the business in the different countries and also improves the international relation of the
business with the different organizations (Prud’homme, Prud’homme, Raymond, &
Raymond, 2016 ).
Ana, et al., 2016 investigated the other objective of the different working operation is to make
use of the innovative technology and techniques for the improved quality of the products. The
organization understands the need for the balance of the work, family life, and personal
relations. The independent structure of working of the different outlets refrains the partners to
interfere in the working operations of the other outlets either present in the same country or in
the separate countries. The confidential working of the different outlets provides the
innovative solution to deal with the different internal issues of the outlets and allow the
manager of the specific outlet to design the working strategy based on the demand for the
change. Among many other solutions, the business structure also provides the internal and
external rewards to the workers in order to improve their efficiency which in turn improves
the profit value and loyalty of the customers (Ana, et al., 2016).
Nan, et al., 2015 investigated the business structure also implements different techniques for
encouraging their partners in order to enhance their loyalty level. The partners comply and
follow the rules and regulations of the foreign laws regarding the custom and trade. They are
representing the transactions to the government agencies. Based on the rules of the foreign

law the hotel provides the true information of the export and import to the partner and this
behaviour of the coffee shop business to encourage the partners for playing their significant
role in the progress. The partners also follow the mission statement of the organization. The
partners of the coffee shop allow the influences of the positive outcomes of the business. The
coffee shop provides different incentives to partners and encourages the business decisions
taken by the partners for the overall improved working of the coffee shop (Nan, Morosan, &
DeFranco, 2015)
CUSTOMER RETENTION
José, et al., 2016 explained the maintenance of positive working relations with the market and
with the customers. In accordance with the ethical standards and policies of the hotel, the
organization is making use of the different resources in order to maintain fruitful relations
with the market and with the customers. Based on the ethical standards, the organization
provides accurate information to the government to the public regarding the quality of the
different products (Miguel, Feigenblatt, Lemus, & Rivero, 2015).
The hotel is liable to disclose the calories level of each product in order to earn the belief of
the customers and improve the retention rate of the business. The members of the
organization notify the manager if any of the customersdemands the information regarding
the investors and media policies followed by the organization. The customers also contact
with the reliable person and follow the specific procedure for getting the information about
the different aspects of the organizations. The customers follow the specific procedure and
hotel provides reliable information; such behaviour maintains the healthy public relations
(José, et al., 2016).
Roya & Kozak (2017) evaluated the importance of the customer relationship for encouraging
their partners in order to enhance their loyalty level. The partners comply and follow the rules
and regulations of the foreign laws regarding custom and trade. They are representing the
transactions to the government agencies. Based on the rules of the foreign law the hotel
provides the true information of the export and import to the partner and this behaviour of the
coffee shop business to encourage the partners for playing their significant role in the
progress. The partners also follow the mission statement of the organization. The partners of
the coffee shop allow the influences of the positive outcomes of the business. The coffee shop

provides different incentives to partners and encourages the business decisions taken by the
partners for the overall improved working of the hotel (Roya & Kozak, 2017).
CUSTOMER SERVICES AND CUSTOMER RETENTION
Yee-Man, et al.(2013) explained the effect of the justices and satisfaction of the customer on
the retention rate. The hotel is managing the quality of the products by maintaining the strict
check and balance of the different operations. The regular check-ups for the cleanliness,
mystery shopper and temperature control for the different products maintain the quality of the
products offer to the customers. The inspection of all the outlets is also the responsible for the
assurance of the quality. The coffee shop has an inspection team whose responsibility is to
maintain the check and balance of the quality of the products. The inspection team visits the
different outlets on a regular basis. The local authorizes also visit the coffee shops in order to
maintain the quality (Yee-Man, Zhang, & Yau, 2017).
Maja, et al.(2016) evaluated the services offered by the hotel to its customers. The hotel is
offering the different services including the beverages, skinny line of drinks, baked goods,
and salad along with the comfortable rooms for stay. Recently the hotel has introduced the
new packet of the coffee line. The instant coffee packets are called “ready brew.” The flavour
introduced includes the Roast and Columbia across the store of the Canada and United
Kingdom. The interesting factor of the instant roast is based on the blind test among the
customers for the taste challenge between the instant and fresh form of the brewed coffee.
Most of the customers were not able to differentiate the taste of the new products.
In 2010, the hotel started selling the wine and beer in the different licensed stores of Sydney.
Sodas, dubbed fizzy were also offered to the customers in 2014. In 2015, the hotel started
offering the different products of the coconut milk that were the alternatives to the dairy
products. In short, the hotel offers different products to the customers based on the demand of
the market. In 2017, the hotel is offering the drinks made from the beans baked in the
Whiskey especially headquarter offering this to the customers (Maja, Mikulić, & Gil-Saura,
2016).
Abraham, et al., 2016 evaluated that the retailer shops are following the Global Human
Rights Standards and provide the equal opportunities to the people belonging to the different

age groups and follow the job-related criteria and do not believe on the forced labour. They
are also using the legally required limitations for the minimum hiring age in order to ensure
the better work performance of the new hiring. The hotel treats the company with respect and
keeps in mind the dignity of the customers. Based on the diversity the hotel embraces the
diversity and respect the diversity with the customer and the supplier and with many another
retailerwith whom they interact. The hotels are representing the structure and transaction of
the business to the different agencies of the government. The information of the hotel is non-
public and is only use by the public on the demand of the government. The Information of the
hotel includes the new technologies, recipes for the different coffee blends, the internal
working structure of the business and future information of the new products (Abraham, et
al., 2016).
RESEARCH DESIGN
CHOICE OF METHODOLOGY
The research method of this report is qualitative (conducting interviews). It also carries out an
analysis of pre-existing data and research on the customer policies and results obtained by
Shangri La hotels through secondary sources and interview.
SAMPLING
The particular set of 1-3 employees was selected for the research, based on criteria of the
services of Shangri La, based on sampling. This small population were asked about the
quality of services of the hotel with the aid of questioner and some were asked with face to
face questions.
STUDY AND REVIEW USING INTERVIEWING TECHNIQUE
The data collected from the secondary sources and interview has been evaluated by
qualitative analysis to check whether the customer are satisfied by services provided by the
hotel. Various secondary sources including journal articles, books and newspaper releases
were also analysed by comparative study and result appeared to be the same as expected
result.

Based on online researches, it has been evaluated that different outlets have the different
capacity for the customers based on the demand of the customers of the specific location. The
high-quality products of the hotel also bring the people together. The hotel welcomed the
diversity of the business and establishes the good relations with the partners which in turn
help to increase the capacity of the hotel.
According to one of the famous web researchers, for the management to develop the service
industry in the international level, correlation promotion is very important. In accordance
with the business strategy correlation promotion becomes the vital part which obtains
different results and outcomes. To develop or generate different strategies and polices the
correlation promotion helps the managers and the persons who are responsible to for
generation of polices to obtain or increase the rank of presentation and many other ways to
satisfy the customer. The correlation promotion can help the directors and other policy
creators to build up strategies and labour policies that can augment the level of presentation
and extra pathways of raising the customer satisfaction and to hold or earn the Customer
loyalty in the hotel industry in Sydney. As per market research the correlation promotion
plays important role to bring the results by focusing on the fulfilment of customer need and
supplies (DUPRE, 2016).
Plan, Source, Make and Deliver is the basic structure of hotel management at the Shangri-la
Hotel. It is dealing with a number of hotels around the globe. In the complex and in the
international setup of the working, the management of Shangri-la Hotel is focused on
providing the quality working with the standard product and the standard quality if their taste.
In the retail working of the organization, there is a team of managers who are managing a
large number of shares in the market. Moreover, the organization is working n different
distribution channel and outlets. Following is the supply chain process of the organization
that they have developed to give quality and standard working at the international level.