Benefits of CRM Systems in Hospitality Industry

This case study focuses on the benefits of CRM systems in the hospitality industry, specifically in the context of Airbnb. It discusses the problems faced by Hotwire.com and the importance of customer relationship management. It also explores the benefits of CRM systems, such as improved customer satisfaction, enhanced internal communication, and optimized marketing. The case study concludes with a discussion on the reasons for investing in information system development projects and the benefits of using Salesforce CRM.

Case Study

Table of Contents
Introduction.................................................................................................................................................3
Summary.................................................................................................................................................3
Problems within case study.....................................................................................................................3
Customer relationship management.........................................................................................................4
Benefits of CRM systems to organisation................................................................................................5
Reasons for investment within information system development project................................................5
Benefits of Salesforce..............................................................................................................................6
What considerations are needed to decide that system has to be hosted or outsourced to vendors such as
Salesforce................................................................................................................................................7
Conclusion...................................................................................................................................................8
References...................................................................................................................................................9

Introduction
Information system is defined as incorporated set of elements for gathering, storage along
with processing of data for rendering adequate information, digital products and knowledge.
Business organization depends on information system for carrying out as well as managing their
overall operations by effectively interacting with customers and suppliers for competing within
the market (Anna and Lazaros, 2020). This report is based on Airbnb which furnishes online
marketplace to offer lodging basically homestays and enhanced tourism experience. They deliver
their services across Europe, Asia and America. This report comprises of objectives, different
problems in case study and customer relationship management. Furthermore, it also includes
benefits that can be attained by organization through usage of CRM systems and Salesforce.
Summary
The case study is based on Hotwire.com Gains Control which advertises four-star hotels at
half rates that is at price of two-star. They have wide range of partner’s more than 7000 hotels
and they are liable for filling up empty rooms as well as they assist customers within finding
rooms at 60% discounts. This implies that Hotwire.com maintains all the essential details of their
hotel partners. It involves location, customer reviews, price, amenities and rooms. The objectives
of firm are:
 To maintain all the details of their partners by which customers can be rendered with
adequate services at reasonable prices.
 To have centralized information system that will enable them to have up to date
information related with rooms and attain enhanced profits.
It has been identified that for being successful firm need to maintain up to date information
which must be precise and accurate.
Problems within case study
The case study illustrates that Hotwire makes use of shared Excel spreadsheets over their
corporate network. There are different applications which drew information by making use of these
spreadsheets they furnish information to Hotwire so that they can render their customers with relevant
details related with deals. As system is being accessed by different users, it becomes prone to number of
errors and is for maintaining them. Along with this, as multiple people have access to spreadsheet, the
competitors i.e. 7000 hotels may modify the details so that they can have adequate number of customers

as well as acquire amplified profits. Though this will be illegal but it cannot be identified that who has
altered their details. It will create a negative impact on overall operations as well as brand image of
Hotwire. Thus, it is crucial to identify all the probable problems that can hamper their overall
performance as well as identify potential solution for this.
Customer relationship management
The principles, guidelines and practices that are being followed by firm while
communicating with their users is defined as customer relationship management. Basically, it
implies aggregation of strategies, technologies and observation that organizations utilize for
managing along with analyzing customer interactions and information throughout customer
lifecycle with an intent to enhance their services (Awad and Saad, 2019). This enables them to
retain their consumers by driving in sales growth. There are three kinds of CRM which can be
utilized by Airbnb, they are illustrated below:
 Operational CRMs: It aids businesses within management of their everyday operations
such as customer service activities, sales and marketing. They are basic kinds of CRM
platforms which involve marketing automation (for targeting customers), Sales force
automation (onboard new customers) and service automation (render high level customer
services).
Illustration 1: Types of CRM
(Source: The Different Types of CRM Software Systems: Comparing Features and Benefits,
2020)

 Analytical CRMs: The firms who are looking forward to gather as well as carry out
analysis of large amount of data, this (analytical CRM) are an apt option. Through this,
firm can acquire as well as retain and track essential details of their customers.
 Collaborative CRMs: They are being formulated for enhancing customer experience. The
major feature rendered by this is that it is responsible for streamlining interaction
between all parties, customers and different departments within the organization (The
Different Types of CRM Software Systems: Comparing Features and Benefits, 2020).
The operational CRM will be adequate for Airbnb as this is liable for facilitating entire
operations of firm and primarily which involves their customers. This covers essential areas,
marketing, services and sales by streamlining all the tasks that will enable each department to
furnish their customers with enhanced experience to their customers (Carvalho, 2020). The
problem which is being faced in case study of Hotwire is lack of centralized system and lack of
up to date information due to that. This can be resolved by usage of operational CRM.
Benefits of CRM systems to organisation
CRM systems are responsible for compiling data of customers through the usage of
distinct channels as well as point of contact among company and customer via website, direct
mail, live chats and even social media. It also furnishes them with information associated with
preferences of their probable customers and other concerns. Within growing commercial world,
it is important to retain their existent customers as well as expand their business (Fitrizal and
Limakrisna, 2019). The cost which is involved within identification of new customer illustrates
that each individual is important. CRM will aid Airbnb to have an insight within behavior of
their clients as well as alter their activities by making sure that their customers are served in an
impelling manner. It can be attained by identification of trends within the market as well as
looking for patterns of customers,. With respect to hotels, individuals mostly look to have
comfortable place with high security and serene environment. It is necessary to take into
consideration their preferences as well as opinions. The rationale behind making use of customer
relationship management with respect to Airbnb has been specified beneath:
 CRM will enable firm to formulate bond with their existent customers and ensure that all
the details related with upcoming benefits are being furnished to them.

 By formulation of bond among their customers chances of number of purchases will also
increase. For an instance, if Airbnb provides their clients or partners with relevant
customers then there are the high probabilities that they may increase.
 When customers have visited any hotel which was referred by Airbnb and they interacts
with them by offering adequate discounts to them then they will develop a sense of
loyalty for firm (Hassan, 2020).
 Through prolonged CRM, customers will advocate firm to others which will lead them
to acquire enhanced success as well as their performance will also be enhanced.
Reasons for investment within information system development project
The above section illustrates benefits of customer relationship management for an
organization. It is clear that it is important for to make its use. As market is evolving quickly so
is the competition and with enhancement of technology it has became easy to reach wide range
of audiences (Kamruzzaman, 2020). This means that for being sustainable within rapidly
evolving environment it is essential to make use of technologies through which firm can attain
desired set standards within their services as well as captivate wide range of customers towards
them. The reasons that Airbnb must opt for customer relationship management have been
illustrated beneath:
 Improvised customer satisfaction: When competitors of Aibnb like Trivago, Hotewire
and TripAdvisor will be using use of CRM to adequate more number of customers, then
it is crucial for them to captivate more number customers. Through usage of CRM,
Airbnd can easily furnish their dealings that involve marketing, servicing and selling
offerings to their customers in systematic as well as organized manner (Kumar, 2020).
Along with this, a communication channel will be provided through which it will be easy
for communicating with clients and partners.
 Enhanced internal communication: CRM strategy will aid to formulate enhanced
interaction within company either with their clients or internal departments. Sharing the
data about customer among them will enable team to acknowledge as well as aid them
within optimizing their experiences. This further assists employees within answering
questions of their potential customers related with services, discounts or any other
upcoming benefits.

 Optimize marketing: When competitors are making use of latest technologies for
grabbing customers by enhanced marketing method, Airbnb will also be able to have
adequate response through usage of CRM. It will assist them to have more targeted as
well as cost effective marketing program. By acknowledging requirements of individual,
firm will be able to understand the relevant time when they have to promote their
offerings.
From above it is clear that to sustain within the market Airbnb needs to opt for new
technologies as it will assist them to be competitive within the marketplace. Apart from this, the
problems related with interaction with their partners as well as customers will also be resolved
by this (Rossidis and et. al, 2019).
Benefits of Salesforce
With reference to Hotwire.com they were making use of Excel spreadsheets to which
access was with multiple clients and when sheet is shared with them each time it is not feasible
to update the list. This implies that firm did not have up to date information and if this is being
given to their customers and room is not available, it will create a negative impact on overall
operations of organizations. This denotes that firm needs a system through which such kind of
problems can be eliminated so that firm can sustain within the marketplace by retaining their
customers through rendering them with enhanced and precise services for longer duration of time
(Shamsudin and et. al, 2019). Salesforce CRM can be used by Hotwire. Salesforce implies CRM
solution which brings in customers as well as firms together. This is an integrated platform that
aids all departments of organization with a shared and single view of each customer.
The benefits that are being provided by Salesforce CRM are mentioned below:
 Customer information: This is the major aspect as it aids within retrieving information
both in terms of quality as well as quantity. It will render Hotwire with an insight into
tasks, accounts events and many others aspects through which firm can have adequate
information before they approach their target customers. This enhances the probability of
acquiring customers.
 Time management: Through comprehensive information about customers as well as
adequate planning, firm can have outstanding time management (Srivastava, Chandra and

Srivastava, 2019). All the relevant information related with clients will make it easy for
organizing different tasks which will save time.
 Team collaboration: Salesforce will assist Hotwire to interact with team members easily.
For this, feature Chatter can be utilized by them for interacting with respect to work
information. Along with this, tasks can be prioritized on the basis of requirements.
What considerations are needed to decide that system has to be hosted or outsourced to vendors
such as Salesforce
The primary aspect involved within opting for services is cost associated with particular
technology from both perspectives that is by hosting in servers of Hotwire and outsourcing it.
This will help to have a little clarity in what has to be done. The next step is resources that are
required for this and software or technology which will be required for doing this. When services
will be outsourced then this aspect will be eliminated (Weerasinghe and Warnakulasooriya,
2019). The amount of supervision required, its maintenance, communication, service level
agreement and trustworthiness. By taking into account cost, extra resources needed, its
maintenance as well as supervision, it has been identified that outsourcing is a better option. But
from trustworthiness point this may not be adequate as third person may have access to
information. Hotwire, must opt for outsourcing but they need to make sure that they have
adequate service level agreement with their customers which will enable them to ensure that their
information is secured and is not used by third person (Anna and Lazaros, 2020). Furthermore,
they can make use of encryption for doing so.
Conclusion
From above, it can be concluded that information system refers to process of as well as tools
for storage, management, usage along with accumulation of data and interacting within the
organization. Customer resource management aids firm within having adequate information
related with their customers as well as a platform will be provided through which interaction can
be carried out. There are enhanced benefits provided by CRM which will aid organization within
attainment of their goals and sustaining within the competitive market for long time frame.
Moreover, outsourcing can be used for eliminating unnecessary cost associated with acquisition
of resources and their maintenance.

References
Books and Journal
Anna, K. and Lazaros, P., 2020. Exploring E-CRM Implementation in Sport Tourism Hotels in
Peloponnese. In Cultural and Tourism Innovation in the Digital Era (pp. 611-627).
Springer, Cham.
Awad, N.A. and Saad, S.G., 2019. The Role of Information Technology and Customer
Relationship Management Practices in Egyptian Hotels—A Descriptive Study in Sharm
El Sheikh Hotels: IT and CRM Practices in Egyptian Hotels. International Journal of
Online Marketing (IJOM), 9(4), pp.47-63.
Carvalho, G.M.P.P.D., 2020. Accor Hotels Sales Internship: Analysis of CRM in B2B
context (Doctoral dissertation).
Fitrizal, F. and Limakrisna, N., 2019. Customer Value Determination and its Implications in
Customer Loyalty Hotels. International Review of Management and Marketing, 9(2),
p.18.
Hassan, M.G., 2020. Exploring usefulness of CRM and IT in Malaysian hotel industry: A
qualitative approach. Journal of Information and Communication Technology, 12, pp.21-
37.
Kamruzzaman, M., 2020. Signaling Service Quality via Website e-CRM Features: More Gains
for Smaller and Lesser Known Hotels [Summary].
Kumar, S.S., 2020. Integrated Dimension on Barriers of CRM Among Staffs of Star Classified
Hotels. Studies in Indian Place Names, 40(71), pp.84-88.
Rossidis, I.. and et. al, 2019. The Use of Customer Relations Management’s Digital
Technologies from Greek Hotels. In Strategic Innovative Marketing and Tourism (pp. 77-
84). Springer, Cham.
Shamsudin, M.F. and et. al, 2019. Preliminary analysis on relationship of CRM functions
implementation towards firm’s business performance. Humanities & Social Sciences
Reviews, 7(1), pp.113-120.
Srivastava, S.K., Chandra, B. and Srivastava, P., 2019. The impact of knowledge management
and data mining on CRM in the service industry. In Nanoelectronics, Circuits and
Communication Systems (pp. 37-52). Springer, Singapore.
Weerasinghe, I. and Warnakulasooriya, B.N.F., 2019. Interactions in Virtual Customer
Environments (VCEs) toward Customer Relationship Management (CRM): A Study of
Tourist Hotels in Sri Lanka. International Review of Management and Marketing, 9(1),
p.44.
Online
The Different Types of CRM Software Systems: Comparing Features and Benefits. 2020.
[Online]. Available through: <https://www.selecthub.com/customer-relationship-
management/5-types-specialized-crm/>.