The Tourism Industry[1]

8/14/2019 The Tourism Industry[1]

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THE TOURISM INDUSTRYThe tourism industry is made up of different

organizations.

It includes hospitality, hotels and restaurants,

Other institutes that offer shelter, food, or both of

theseTourism industry has been experiencing

globalization, competition, higher customer

turnover, Growing customer acquisition costs and rising

customer expectations


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Hotel performance and competitiveness is

significantly depending,

On the ability to satisfy customers effectively

and efficiently

The hotel industry offers similar products such

as rooms

In search for the best services customers

usually turn their focuses to the soft factors:

Personal treatment, personalization, one-one

marketing.


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The hotel industry is a perfect industry for

the implementation of e-CRM principles

It allows for a true selection and managing

the most valuable guests

It also allows one-one marketing and giving

value added services

It attempts to increase guests loyalty and

retention.


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Meaning of e-CRM in hotel industry

E-CRM is a process of attracting and keepingeconomically valuable customers while repellingand eliminating economically invaluable ones.

It emphasizes on building relationships that leadto customer retention and long-term customerloyalty.

E-CRM has become a must have for any hotel

company.

Establishing mutually beneficial interactiverelationships with customers is the ultimate goal

of any E-CRM initiative


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e ma n c ompone n s o an -CRM s tr ate gy in tr av el andhote l i nd ustr y Know Your Customer

Customer Service

Personalization

More Efficient Marketing

Build Customer Loyalty


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Bene fits of E CRM in the To ur ismind ustr y The real value of e-CRM lies in the:

Value a company creates for its customers

And in value the customers brings back tothe company.

E-CRM is a tool that contributes to profitgeneration.

It helps in increasing the level of loyalty ofthe customers.

It gives a company a strong competitive

advantage.


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I t re du ces th e cos t o f re cruiti ngcustomersSavings are made on marketing, mailing,

contact, follow-ups fulfillment

This will add to the number of long-termcustomers

And the need for recruiting new customers

will decrease

It is expensive to recruit a new customer

than to maintain the one already existing


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Red uced cos ts of s aleCosts are likely to decrease owing to the fact

that: Existing customers are usually more

responsive than new customers.

Companies with better knowledge ofchannels and distributors the relationship

becomes

More effective as well as reducing the costsof marketing campaigns.


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Increa sed cu sto me r rete nti on a ndloyaltySometimes customers do take initiatives,Which increase the bounding of the

relationship

And as result customer loyalty increases Eva luati on o f cu stom er pro fi tab ilityE-CRM allows companies to see which

customers are more profitable

And which ones are likely to be profitable in

future.


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Chal le nge s of E-C RM i n thehote l i nd ustr y Gl ob al unc ertai nty Terrorist attacks are the most direct

example of global uncertainty;

Geopolitical relations, governmental travelrestrictions and currency exchange rates.

These factors can jeopardize the potentiality

of e-CRM Customers will be reluctant due to these

factors


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Tec hn ol ogyThe initial set up of e-CRM can be very

expensive.

They is need for latest software, training ofstaffs and acquiring the latest technology forwebsites.

Safet y and sec uri tyCustomers are still not open enough to

anything that is being handled over theinternet.

Customers are still reluctant to give most oftheir private information.Customers need to feel like they are talking to

a real person at all times.


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Co mpeti ti on i n the hote lindu st ry

Globalization and the web reach havesignificantly increased competition within thehotel industry

Customers have become more price sensitive,

Less brand loyal and more sophisticated

Many of the companies in this industry offersimilar products

The global reach has meant that competition isjust a click away.

There is intensify competition for most hotels


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To over come such competition,

Hotels should implement an effective

customer relationship management

As their competitive advantage.

Hotels should offer customers new and

innovative customer services

Customers will appreciate good service that

they would not go to a competitor.


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E-C RM ar ch ite ctu re orimpl eme ntat ion Steps in implementing a sound e-CRM

process:

2.Business process analysis

3.Integration and redesigning of customer

data

4.ICT enabling customer interactions5.Easy accessibility of organization

information


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The hotel will need to have good channel

management for enabling efficient share of

guest knowledge across the organization, The guest should get personalized and

consistent services at anytime,

Anyplace and at every platform.


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Th e su cce ss of e -C RM in theho te l in dustr y They has been an increase usage of e-CRM

at every point of customer interactions for

most hotels

Most hotels have been able to provide

customers with:

Data that they need such:

Information about an offer or their current

or their previous transactions


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E- CRM c ha ract eri st ics t hat can b e s eenon most s uccessful w eb si tes inc ludes:2. Customer dialogue engines.

3. Advanced content management delivery.

4. Process guides.

5. Monitors and alerts.

6. E-News letters.

7. Reservation Confirmation emails.

8. Pre-Arrival emails with value adds and up

sells.9. Post-stay Thank you emails and comment

cards.


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Conclusion

E-CRM is very important in the hotel industry

Companies with the ability to retain andmaintain the most profitable customers have acompetitive advantage

E-CRM, although hard to implement,

It brings many benefits if successfullyimplemented

The value of customers must becommunicated from the top level to thebottom of the organization.

Documents

The Tourism Industry[1]