Feasibility study of application and implimantation of
customer relationship management (CRM) in hotel industry

Abstract: 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.