Assessing CRM Practices in Hotel Industry: A Look at the Progress and Prospects

Abstract

Purpose: Customer Relationship Management (CRM) is a unique key element considered in the hotel diligence which is extremely thriving plus competitive market at present. The study purpose is to identify how CRM can be strategy tactics for solution as business attitudes towards the hotels. It generates nine different items with regards to CRM. Design/methodology/approach: The study progressed in four phases. The empirical data were collected. A sample of 100, four, five and five star luxury hotels was considered for the study. To explore CRM process in hotel industry, an analysis was carried out to identify different CRM levels (performance and importance). The study was tested and analyzed by adopting a scale developed by Reinartz, Krafft and Hoyer. Findings: The result largely supports the CRM process developed in hotels theoretically but does not seem to have the balance between the CRM levels evenly. Crucial discoveries of the learning are firstly, CRM remains characterized via nine different items in the hotel diligence connecting to Measure, Acquisition, Regain, Maintain, Retain, Cross up, Referrals, Termination Measure and Exit. The best predictor of CRM is the items on performance level referred as Measure followed by Regain and Acquisition and on the importance level, Referrals followed by Cross-up and Regain. Practical Implications: The result suggests that the hotels must understand today's customer's wants and needs. The hotels need to be more proactive in developing a balance between CRM levels for effective CRM in hotel diligence. Novelty/assessment: The learning highlights the importance of CRM and its relationship in service industries in the literature. The study focuses in particular on CRM in hotel industry and the linkage between the CRM levels (Performance and Importance).