How Does the Relationship Between Crm and Hotel Industry Help Them Gain More Customers and Profits?
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Topic Title: How does the relationship between CRM and Hotel Industry help them gain more customers and profits? In today’s business field, Customer Relationship Management or CRM is gaining popularity and has therefore become one of the trending academic topics to be studied or to be researched on. In the competitive business environment, a study of CRM has become very important and is considered one of the benchmarks for firm performance. However, there are limited study that reveals the relationship between CRM and its importance in the performance of the hotels. Thereby, this study becomes important which reveals how the CRM helps the Hotel industry in gaining profits.  (Mohammed & Rashid, 2017)The various practices, policies and technologies which the business houses uses in order to manage the interactions with the customers and their data with the objective of improving their relationship with customers, retaining their customers and improving the growth in their sales is called Customer Relationship Management(CRM). (“What is customer relationship management (CRM) ? – Definition from WhatIs.com”, 2017)In the field of business, CRM has become a point of controversy and a centre of focus during the recent times. CRM has recently become one of the most controversial issues and a focal-point in the business field. CRM is basically based on the idea that if business houses establish sustainable relationship with customers, they will be able to get some loyal customers who are much better and profitable than the non loyal ones. (Mohammed & Rashid, 2017)The strategies of CRM will be of great help to the businesses as it can increase sales, customize its products and services, can lead to employee satisfaction and last but not the least, ensure retention of old customers and thereby gain loyal customers. The strategies of CRM are recently being used in many sectors like banking, hospitality, healthcare and telecommunication. Further, a detailed research should be made on the importance of CRM in the hotel industry. Example: ITC Maurya Sheraton is an example of hotel industry which uses the various strategies of CRM like Reservation systems, field selling and calls centers in order to maintain loyal customers (“Customer Relationship Management in Hotel Industry | Customer Relationship Management | Customer”, 2017)
Problem Statement: In the recent times, there has been a lot of competition, an increase in globalization and a huge turnover in terms of customers in the hotel industry. These days the hotel sector is experiencing a rise in globalization, competition, and higher level of customer turnover. Moreover, the increase in acquisition costs of the customers and the rising expectations of the consumers are making it difficult for the businessmen in the hotel industry to perform better and is also increasing the competition of the hotel industry in terms of their ability of customer satisfaction. Customer Relationship management is the best option or the best strategy which the hotel industry can apply in order to win over their competitors and in order to gain advantage over their competitors. As a result, the competitors of the hotel industry must pay great attention to the strategies under the CRM for a long term and profitable relationship with their customers. (“Customer Relationship Management in Hotel Industry | Customer Relationship Management | Customer”, 2017)Although, CRM provides a lot of advantages to the organizations in the hotel industry and helps them to gain competitive advantage over other companies but the organizations who implement the CRM strategies more than others gain more profits than its competitors. CRM is beneficial to those companies who make record of all the information about its customers and also creates a database with respect to their customers.Therefore, it can be said that CRM will suit the hotel industry in the best manner only when it is implemented effectively and in a successful manner, provided that, the organizations in the hotel industry receive genuine and a lot of information about its customers. (Mohammed & Rashid, 2017)