The impact of customer relationship management and internal marketing on business performance: a comparison of lodging industries

Abstract

This study created a relationship model to explore the impact of customer relationship management (CRM) and internal marketing on relationship management and business performance in three sectors of the lodging industry. We conducted a survey in 231 bed and breakfast (B&B) establishments as well as 240 hotels and 114 motels. Our results indicate that CRM and internal marketing both have a direct impact on relationship management and an indirect effect on business performance. CRM was shown to be particularly effective, with a direct effect on financial as well as nonfinancial performances in B&Bs and hotels. In addition, internal marketing strategies were shown to have a direct effect in enhancing both financial and nonfinancial performances in B&Bs, hotels, and motels. Nonetheless, differences were observed among the three types of lodging establishments with regard to the strength of relationship paths.