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THE TOURISM INDUSTRY

•The tourism industry is made up of different


organizations.
•It includes hospitality, hotels and restaurants,
•Other institutes that offer shelter, food, or both of
these
•Tourism industry has been experiencing
globalization, competition, higher customer
turnover,
• Growing customer acquisition costs and rising
customer expectations
• 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.
• 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.
Meaning of e-CRM in hotel industry
• E-CRM is a process of attracting and keeping
economically valuable customers while repelling
and eliminating economically invaluable ones.
• It emphasizes on building relationships that lead
to customer retention and long-term customer
loyalty.
• E-CRM has become a must have for any hotel
company.
• Establishing mutually beneficial interactive
relationships with customers is the ultimate goal
of any E-CRM initiative
The mai n c ompone nts of an E-
CRM s tr ate gy in tr av el and
hote l i nd ustr y
• Know Your Customer

• Customer Service

• Personalization

• More Efficient Marketing

• Build Customer Loyalty


Bene fits of E CRM in the To ur ism
ind 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 to
the company.
• E-CRM is a tool that contributes to profit
generation.
• It helps in increasing the level of loyalty of
the customers.
• It gives a company a strong competitive
advantage.
• It re du ces th e cos t o f re cruiti ng
cu sto me rs
 Savings are made on marketing, mailing,
contact, follow-ups fulfillment
 This will add to the number of long-term
customers
 And the need for recruiting new customers
will decrease
 It is expensive to recruit a new customer
than to maintain the one already existing
• Red uced cos ts of s ale
 Costs are likely to decrease owing to the fact
that:
 Existing customers are usually more
responsive than new customers.
 Companies with better knowledge of
channels and distributors the relationship
becomes
 More effective as well as reducing the costs
of marketing campaigns.
• Increa sed cu sto me r rete nti on a nd
loya lty
 Sometimes 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 ility
 E-CRM allows companies to see which
customers are more profitable
 And which ones are likely to be profitable in
future.
Chal le nge s of E-C RM i n the
hote l i nd ustr y
• Gl ob al unc ertai nty
 Terrorist attacks are the most direct
example of global uncertainty;
 Geopolitical relations, governmental travel
restrictions and currency exchange rates.
 These factors can jeopardize the potentiality
of e-CRM
 Customers will be reluctant due to these
factors
• Tec hn ol ogy
 The initial set up of e-CRM can be very
expensive.
 They is need for latest software, training of
staffs and acquiring the latest technology for
websites.
• Safet y and sec uri ty
 Customers are still not open enough to
anything that is being handled over the
internet.
 Customers are still reluctant to give most of
their private information.
 Customers need to feel like they are talking to
a real person at all times.
Co mpeti ti on i n the hote l
indu st ry
• Globalization and the web reach have
significantly increased competition within the
hotel industry
• Customers have become more price sensitive,
• Less brand loyal and more sophisticated
• Many of the companies in this industry offer
similar products
• The global reach has meant that competition is
just a click away.
• There is intensify competition for most hotels
• 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.
E-C RM ar ch ite ctu re or
impl 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 interactions
5.Easy accessibility of organization
information
• 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.
Th e su cce ss of e -C RM in the
ho 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
• E- CRM c ha ract eri st ics t hat can b e s een
on 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.
Conclusion
• E-CRM is very important in the hotel industry
• Companies with the ability to retain and
maintain the most profitable customers have a
competitive advantage
• E-CRM, although hard to implement,
• It brings many benefits if successfully
implemented
• The value of customers must be
communicated from the top level to the
bottom of the organization.