Feasibility study of application and implementation of customer
relationship management (CRM) in hotel industry
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The purpose of this thesis is feasibility study of Customer Relationship
Management (CRM) application in hotel industry.
With increased globalization, competition, higher customer turnover,
growing customer acquisition costs and rising customer expectations in
today competitive word CRM is very important for several companies and
received an increasing amount of interest among scholars and practitioner
especially in recent years. While some companies have received immense
benefits from their investments (enhancing customer satisfaction and
profitability).
The researcher tried to find that is CRM in the form of giving special
services with the help of IT, one-to one marketing, effective relationship
on guest retention and knowing guest needs and meet this needs via giving
more and more special services; could be a life savor for hotel industry?
The results of determining effects of implementation of customer
relationship management (CRM) on guest satisfaction, loyalty and retention
showed that this implementation in the form of gathering information for
personalization of services, using one to one marketing plans, improving
guest services and support and using IT for giving more services in hotels
will increase guest satisfaction, loyalty, and retention. Guest
satisfaction will cause guest loyalty and retention .guest retention is
really important and good for both hotels and customers. for hotels; since
guest stay longer, buy more and more frequently it cause increase wallet
share also it is cheaper to keep existing customers happy rather than to
attract new ones. Dyche stated that five-percent increase in customer
retention results in a 25 to 95 percent increase in profits. On the other
side for a guest loyalty to one hotel’s brand reduces the risk of service
variability, allows for the development of a social rapport with the
provider, and the customization of services to his/her specification.
In all, in hotel industry CRM application with more satisfied and loyal
guest bring a lot of benefits such as increase in the rate of retention,
increase revenue and profitility, reduce internal costs, reduce marketing
costs, improving customer services, create positive word of mouth, market
share growth, improve marketing methods ,streamlined business process
,better understanding/addressing customer requirements, higher employee
productivity and protect marketing investment with maximize returns. All
these benefits for a hotel can be a source of long-term and sustainable
competitive advantage.
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