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Customer Romantic relationship Management In Hospitality Industry Importance Tourism Essay

CRM entails all aspects of interaction a firm has using its customer, whether it's sales or service related. It even uses technology to streamline procedures that impact customer devotion, service delivery and quality management.

Today, companies are facing an aggressive competition and they have to make Work to survive in a competitive and uncertain market place. People have understood that taking care of Customer associations is an essential factor because of their success. Customer marriage management (CRM) is a technique that can help those to build long-lasting connections using their customers and increase their revenue through the right management system and the use of customer-focused strategies. (Berry, 1983)

'Customer is the most crucial person for a small business. He is not an interruption to your work however the reason for it. He's not an outsider; he's a part of it. We aren't doing him a favour, he is doing us a favour giving us an possibility to serve him. ' (By Mahatma Gandhi)

It has grown mainstream and has been implemented in a wide range of companies and organizations such as making, financial services, transport and syndication,

Though the activity looks to be a simple one, but tools and workflows which are involved in the process can be quite complex, specifically for large business. Previously the tools were generally limited to determine basic information's like companies contact record with the clients or clients, monitoring and saving interactions and marketing communications. (Parasuraman, et all 1985)

Background [P1]:

The reason of me to choose this particular research is simple. As I have functioned in hospitality industry and got a chance to know your day to day operations from an in depth point, I needed to determine more ways to explore about how exactly the improved guest service and commitment creates a relationship between a particular organization and the customers.

In this era of globalization where 'Customer is the King', customer targets are going up which is making the problem more and more competitive. As the merchandise is becoming universal in character, the hotel industry can't rely on the traditional marketing ways of wthhold the customers. Customer Romance Management is one of the key tools to struggle this cut neck competition and stick out as a superior brand

Research question(s) [P2]:

RQ1) How effective is the utilization of Customer Relationships Management (CRM) in keeping customers in hospitality?

RQ2) What exactly are the new marketing techniques in hotel industry?

RQ3) How will CRM help to maintain customers in hotel industry?

Hypothesis [P2]:

H0: CRM has no significant impact in retaining customer in Hospitality Industry.

H1: CRM has a significant effect in retaining customer in Hospitality Industry.

H0: CRM do not help preserve customer in hotel industry.

H1: CRM do help to maintain customer in hotel industry.


The study aims to understand the importance of CRM in the success of company in a hospitality industry. Moreover, it seeks to determine the effectiveness of the new marketing approaches in keeping customers in a hospitality industry. The study is to do an intensive research on the importance of CRM in Hospitality Industry, then collect relevant papers to aid the study a study will be conducted and data will be gathered from study and from these data bottom line will be drawn.


To be able arrive to the required answer, the next steps should be done:

Gather relevant former and current data related to the study

Design research questions for survey

Conduct a survey

Gather the relevant data from the survey

Make a desk or graph

Verify data

Draw conclusion

Literature Review [P5]:

Customer Relationship Management (CRM) is one of those magnificent principles that swept the business world in the 1990's with the promise of forever changing the way businesses small and large interacted with their customer bases. For a while, however, it became an unwieldy process that was better theoretically than used for a variety of reasons. First among these was that it was simply so difficult and expensive to track and keep the high volume of records needed accurately and constantly update them. (Payne, 2000)

In today's competitive business environment, an effective CRM strategy can't be carried out by only putting in and integrating a program designed to support CRM techniques. A holistic method of CRM is vital for an efficient and productive CRM policy. This process includes training of employees, a modification of business functions based on customers' needs and an adoption of relevant IT-systems (including very soft- and perhaps hardware) and/or consumption of IT-Services that allow the business or company to follow its CRM strategy. CRM-Services can even redundant the acquisition of additional hardware or CRM software- licenses. (Reichheld et all, 1990)

Let us now look for the answers of the questions we were doing the research for with respect to a live hotel.


"Customer Romance Management is an activity of taking care of customer relations within an organized way". They target at managing each "Moment Of Real truth" that is experienced by the client.

Q11 - How will CRM help preserve customers in hotel industry - There are many contact points where in fact the hotel will come in direct connection with the customer which are known as 'Touch things' in the CRM terms. These touch details are believed important as you can find direct connections with the client plus they provide valuable suggestions to the hotel. The suggestions provided by the customer must be captured in such a way so it becomes information and can be employed by various functions within the hotel. This can be done by using technology and the aim is that whenever there is a customer software with any of those processes they could use that information in servicing the guest in a most effective manner. (Sheth, 1998)

Loyalty Programs

Second vehicle for CRM identified by Maurya Sheraton are the Commitment Programs. These programs are made to reward the loyal friends of the hotel. Whenever a guest checks in the hotel at his every touch point or interface with the hotel, each and every time he spends on something provided by the hotel (use of Room, Restaurant, Laundry, Telephones etc. ), the exchange is saved at each individual point and is added to the ultimate bill offered to the guest by the end of the stay. There are specific points mounted on the number of rupees put in by the guest. Therefore higher the quantity of the bill, the higher would be the number of tips attained by the visitor. These details are acknowledged to the bank account of each guest by making use of technology. They are called Loyalty items. These accounts having the loyalty tips are unique to every guest. Therefore, whenever after the first time that guest assessments in to the hotels, the visitor history also impacts the loyalty points. The higher the number of points, more dedicated is the guest. The details can be redeemed by the visitor for either free stays on at the hotel or free gifts as listed by the hotel or free meals depending upon the amount of points accumulated.

Distribution Things/ Central Reservation System

A customer can merely make a call at the reservation centre to produce a scheduling with the hotel. It appears to be simple but it might get complex in the event he will not receive the expected or the desired response. Therefore, Maurya Sheraton sees this circulation point as an possibility to build CRM as the respondents at the booking centre could switch a potential customer into a 'sales' or could let go off the possibility to accomplish that by not being polite enough or not giving out the info as desired by the guest. The information regarding all visitor reservations is managed through software applications, therefore, when a customer make phone calls to query about a reservation, all his hotel consumption history arises in the system which gives a chance to the exec at the reservations to instantly recognize the customer and dwelling address him by his name. This minute of truth is experienced by the client with a sense of popularity and feels it nearly as good service at the first touch point itself. The type or education received from the customer at the level is registered in the booking system for further research by the hotel operations. Therefore the wheel will not get reinvented each time a standard education is usually to be followed. This contributes to removal of an irritant and this ultimately contributes to a satisfied customer willing to come back. (Sheth and Parvatiyar, 1995)

Welcome Honor - Rewarding Relationships

Welcome Award has gained the distinction to be India's premier & most powerful frequent visitor programme. The Welcome Honor programme identifies customer as a small business traveller and through its tactical alliances with travel companions endeavors to create a rewarding marriage customer. Like a Welcome Prize member customers can earn 'Personalities' on every aspect of their business triphotel stays on, business entertainment, Car renting and even flights.

Welcome Website link- Bring home the rewards

Welcome Link, India's most popular programme for key pros offers many value-added benefits. It is made to help members to make reservations because of their company executives. For each and every materialized room nights booked by an associate at ITC-Welcome group Hotel, things are earned that can be redeemed for a variety of rewards. With Welcome Hyperlink, the member can look forward to many exciting campaigns and prizes coming their way plus an exciting range of rewards. . . complimentary eating, free vacations, air tickets, car renting and privilege shopping with Credit Card Item Vouchers countrywide.

Sheraton Plus- The fine art of fine eating out with a special edge

Welcome group Sheraton Plus brings the pleasures of the palate, in a worthwhile manner. As an associate, customers can savour the finest in cuisine ranging from genuine Indian, Mughlai and Chinese language specialties to Continental fare in a selection of over thirty ITC-Welcome group restaurants. From a 24-hour coffee outlets called Pavilion to the specialty restaurants such as Dum-Pukht, Bukhara, Dakshin and West View.

Q3 - How CRM can be effectively implemented -

Customer romance management (CRM) is more than the practice of collecting guest-centric data. It's the skill of using historical, personal and experiential information to personalize a guest's stay while making incremental income opportunities. Knowing a traveller is an avid sports fan creates the opportunity to market seat tickets to a game. Industry surveys show that friends are less likely to return if they experience a difficulty throughout their stay. Saving and keeping of relevant database of guest record and information's and research of these provides with the info to eliminate repeating problems and keep guests returning, so to lower operating costs and increase visitor satisfaction at the same time. So the main factor is how well it needs to be dealt with and administrated. There needs to be a dedicated team and a suitable user-friendly software to help the team with the detailed records of the customer choices and choices and all possible information's which might require to be considered always and the most crucial step in this has to be the continuous updating of details with for each minute details with each visit or contact of the visitor with the hotel. Another important part of simple handling and supervision of CRM process is always to keep everyone updated and enlightened about the assortment of information's of each individual options and personal preferences so atlanta divorce attorneys point of contact the guest feels at home. (Sheth et all, 2000)

Rationale [P6]:

One can infer the present situation of the techniques and programs being accompanied by the best players in this sector and the steps being accompanied by them to enhance customer retention, customer satisfaction and subsequently, leading to improved earnings and brand image in the heads of the clients.

Reflections [P6]:

In the true spirit of thinking outside of the box, experts at the Gartner Group believe "the most successful organizations will be those who, through advancement and give attention to business effectiveness rather than basically efficiency, manage to break the mold of traditional business thinking". Being effective is paramount. The finish goal of better offering customers and permitting a high ratio of customer retention can't be met with out creative thinking and effective planning and activities. The duty of perfecting the relationship between business and customer is always ongoing and requires special devotion and development as the commerce markets.

Scope and Constraints [P6]:


To analysis Customer Romantic relationship Management in the Hotel Industry. The other targets would be to review the programs and tactics of CRM employed by the primary hotels in India and also to study the steps to build a better relationship between your customer/guest and the hospitality unit. Finally to summarize the findings and suggest any recommendations regarding the future growth potential customers.

Limitations of the Study

Anticipated to the option of mainly secondary data, authentication of the same is not sure.

Since the authentication of the data is uncertain, the result of the project may not be correct.

Customer relationship management is alone a complex matter, therefore, there may be certain errors in the assumption

Action plan [D2]:















Topic & Title



Research question(s)


Literature Review



Scope and Limitations

Action plan

Ethical consideration

Theoretical Framework / Methodology

Research design

Analysis and discussion

Implementation of Research project

Implementation of Research project


Recommendations and future work

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