Customer Relationship Management in Hospitality

This assignment examines the significance of Customer Relationship Management (CRM) within the travel and tourism industry. It analyzes how CRM models, such as the Gartner model, help businesses cultivate lasting customer connections, leading to increased profitability and productivity. The document emphasizes the advantages of CRM, citing its role in maximizing sales, revenues, and customer loyalty. It also touches upon challenges associated with CRM implementation and provides insights from various sources, including research papers, industry reports, and online resources.

Customer Service
Management for Tourism &
Hospitality

Table of Contents
INTRODUCTION ..........................................................................................................................1
Question 1: ......................................................................................................................................1
Identify and discuss the various components of the Gartner CRM model.................................1
Question 2: ......................................................................................................................................6
Implementation of Gartner CRM model.....................................................................................6
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................11
.......................................................................................................................................................11

INTRODUCTION
Customer relationship management is an essential term that defines as technologies,
strategies and practices that are utilised by company in order to analyse and manage the buyers
data and interaction. CRM is directly linked to tourism because travel sector was found on
monetary system and without audience, there is no financial gain. Better customer service is
needed at each part of travel and tourism either it is flight, travel agency, restaurant and hotel,
etc. This report is based on Firmdale Hotel which is located in different places such as London,
New York. One of the main aims and motives of this hotel is to maintain a long lasting
relationship with customers (Buttle and Maklan, 2015). This assignment has shown various
components of CRM model that an enterprise would apply in order to maintain better connection
with clients. Implementation of CRM model which is essential for company to improve up sell
and cross sell opportunities, it is determined in this study.
QUESTION 1
Identifying and discussing various components of the Gartner CRM model
Gartner Inc. is an advisory and leading information technology company in all over the
world. It was established in the year 1979 in USA, Stamford, Connecticut and has approx. 7600
associates, considering more than sixteen hundred consultants and research analysts. One of the
main aims and objectives of this company is to keep a long lasting and better relationship with
customers in limited time period. Good connection with audience helps the business entity to
accomplish their predetermined goals and objectives in certain period of time.
Overview of why Gartner developed the model and when: Customer relationship
management model is an important and essential approach which is applied by each and every
organisation in order to keep a strong relationship with tourists. It is used by the business entity
to enhance the long term and effectiveness success or progress of their customer relationship
management programs effectively (Firmdale, firmdalehotels. Retrieved december, 2017). In
order to maintain and retain a better relationship with customers, Gartner applies Eight Building
Blocks of CRM which are valuable for the organisation to increase customer loyalty
systematically.
Overview of the eight building blocks: CRM initiatives need a proven structure in order
to see that projects are undertaken on a strategic, integrated and balanced basis. Using such
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model will assist CRM program and project leaders to increase the advantages of organisation’s
CRM initiatives. This model consists of eight steps which are beneficial for an enterprise in order
to improve long term and effectiveness advantages. These are determined as below:
CRM Vision: Main vision of such model is to earn customer's loyalty or trueness, we will
evaluate their act and requirement to develop superior value in marketplace and on client's eyes.
They want to be understand for reliability, consistency, flexibility, innovative services and
responsiveness. All these are essential and valuable for the customer life. Company will create
this in an improving environment of co-operation, trust and mutual respect (Gartner, 2007).
CRM Strategy: It is also an important and main part of company to make an effective
strategy of customer relationship management. It mainly covers five points which are described
as below:
 Prioritize initiatives and develop a formed roadmap
 Identify gaps and initiatives
 Benchmark actual state
 Determine the actual experience level of users Baseline actual process and global setting of business
Valued customer experience: In organisation, people tend to emphasis on certain things
that they can know and effect- processes, customer data, organisation and technology. Therefore,
customer relationship management initiatives are emphasised and give few value to clients. They
fail in order to proceed into account that worth must be developed for both parts in relationship
management.
Organisational collaboration: True customer relationship model mainly consists of
modifying internal process. It is important for the organisation to collaborate all activities and
functions in a systematic manner (Law, Buhalis and Cobanoglu, 2014). In this, role of manager
is to provide quality and healthy products to the clients so that customer loyalty will
automatically be increased.
CRM Processes: An organisation rarely fails in order to identify that their clients are
having lack of experience and knowledge because their FFP (Functionally fragmented processes)
fails to provide a seamless large activity. Demands and needs of CRM is fresh method to
business activities. So, it is essential and important for the firm to maintain long lasting
connection with customers in limited time duration.
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CRM information: Information and data of client is the key to customer relationship
management. It must be stored, acquired, applied, distributed and analysed throughout the
organisation. It is present in the way of customer experience and cross channel interaction in an
effective way (Zeng and Gerritsen, 2014). It is required by each and every company in order to
plan an effective strategy and policy. In this, Gartner Inc. can:
 Determine client's value segment
 Know customer preferences and needs
 Develop sales campaigns and target marketing for particular segment of audience
 Control response of customers
 Use experiences to upcoming campaigns Steer buyer's purchasing behaviour
CRM Technology: It covers different technology in order to attract a large number of the
customers towards business products and services. It is necessary and a valuable part of the
business operations and functions because without technology, company cannot attain success.
With the help of this, an enterprise easily determines availability, security and performance of
clients.
CRM Metrics: In this, company must set specific and measurable objectives of CRM and
control indicators. It is important and useful for the organisation because it follows and calculate
CRM strategy. There are two challenges in order to create customer relationship management
metric such as:
 Knowing the related points in between different levels Ignoring overly simplistic or complex external and internal aspects
Why whole 8 building blocks are important for successful CRM: Above all blocks are
important for the success and growth of company (Zeng and Gerritsen, 2014). With the use of
customer relationship management model, business entity easily maintains a long lasting and
good connection with their customers. There are some importance of CRM which are described
as below:
 CRM must emphasis on managing and selecting customer loyalty and value about long
lasting relationship.
 It is a core approach to each and every organisation; mainly it is about producing quality
services and products to the right person.
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 It is not a system but also strategy, process and people which is important for the
customers because they in which they easily understand business position in marketplace.
The significance of viewing customer relationship management as a business strategy:
CRM is essential for company to keep long term connection with customers in an easy manner.
CRM assists the manager of Gartner Inc. to implement an effective strategy and practices in a
systematic manner (Zeng and Gerritsen, 2014). Main aim of this part is to give a managerial and
integral valuable view of CRM as a business strategy. Main objectives on this; is to give a better
framework, evaluate CRM origins, integrated and balanced basis and many other motives. This
approach is used to evaluate and generalization of practical and scientific statistical data and
work.
True CRM: It is a CRM model which is important in the travel and tourism sector. With
the use of this company easily attract large number of the visitor for travel particular destination
happily. It is valuable model for the referred firm to enhance their profitability and effectiveness
in a systematic manner. This approach maintain long lasting relationship with visitors by
providing necessary information about the trip.
The require to face beyond fragmented customer relationship model approaches: CRM
is a best approach for the company to face different issues and problems easily. This approach
assist the business entity to keep long term connection with customers by providing quality and
healthy products. In this company should try to use advanced technology which help them to
attract million visitors and increase their turnover in limited time period (Zeng and Gerritsen,
2014). It is highly needed by an organisation to keep long term relationship with audience.
Examples of good practice: There are different examples of good practices in order to
maintain CRM. In this business should try to collect feedbacks and comments for the customers
about business products and services. In order to solve all quires of clients, business should try to
provide quality and healthy products to the clients. There are some examples of good practices
which are determined as below:
 Be clear regarding business goals and pain points
 Understand how users of the business work
 Make sure business can personalize, scale and customize for the future To solve different issues and problems about customers.
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Facts and statistics that underpin the analysis: Each and every organisation apply CRM
model in order to improve their image and goodwill in marketplace and in the mind of
customer's (Customer software revenue forcast, 2018). This approach also assist the Firmdale
Hotel to forecast their annual revenue. This are shown as:
(Source: Steven MacDonald, 2018)
(Source: CRM Platform Implementation Problems, 2018)
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Illustration 1: CRM Forecast revenue of the company
Illustration 2: CRM Platform Implementation Problems

Question 2:
Implementation of Gartner CRM model
CRM model is very essential and valuable aspects for the each and every organisation to
improve their performance and increase profitability in limited time period. This model assist the
Firmdale Hotel to attract large number of the customers by providing quality and effective
products or services.
Immediate benefits and latent benefits: Both are essential and main advantage which is
directly maintain long lasting relationship with customers. Immediate benefits is more valuable
for the organisation because in which referred hotel provide immediate advantages such as
quality food services, accommodation and many other facility to the visitors (Law, Buhalis and
Cobanoglu, 2014) So in which an organisation easily maintain customer's loyalty and
relationship with them. It can help them to develop long term goals and objectives in limited
time period. On the other hand, latent benefits are also essential and significant for the enterprise
to increase their sales and revenues in limited duration. It is used to determined something in
which it is not see at the point in time, but which may create upcoming in the future. It is mainly
related with future benefits which are provided by Hotel to their target and potentials clients in a
systematic manner.
Enhance cross sell and up sell opportunities:
Cross sell Opportunities: It is identify as a sales tool that is used to acquire a client in
order to pay more by buying a good that's linked to what's state bought already. It is a best
practices that encouraging buyers to buy a end products. It is very essential tool that invites large
number of the buyers to purchase related as well as complementary items. This technique get
high chances to increase their turnover and sales.
Up sell Opportunities: It is also a part of sales in which hotel manager induces the client
to buy more expensive goods. It is essential and valuable for Firmdale Hotel in order to
maximise their revenue and give a valued buyers experience (Gartner, 2007). It is also important
opportunity for the Firmdale Hotel to attract million customers and improve their selling
techniques.
Get new customers: CRM model is very essential and valuable approach which is used
by the each and every organisation in order to attract large number of the customers in limited
time period. This methods get new clients and visitors to spend their more time in hotel. So in
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this business entity should try to provide quality products and services to the travellers at
reasonable price. In the hotel there are large number of the employees who are capable and
knowledgeable to communicate all services to the customers in direct way (Firmdale,
firmdalehotels. Retrieved december, 2017). In order to maintain activities and functions of
business in daily basis, manager should try to provide effective and quick services which move
in keeping long lasting relationship.
Effective use of CRM software: It is a better way in order to handle CRM application in an
effective and essential manner. It gives an conducted, comprehensive scene of an organisation's
prospects, customers, and workers interaction with them. It is very important for the individual
and organisational which are determined as below:
 It realize which client product the maximum advantage.
 This model evaluate purchasing patterns.
 CRM model increase per customer revenue or profits.
This model creates an cohesive and coherent information in a systematic and essential
way. Coherent is define as a set of plan and idea which is carefully and clearly considered in this.
In this business entity know how person response regarding CRM model. On the other hand,
cohesive is define as more than two things and people that stick with each other. In this all
persons are work with achieving predetermined goals and objectives in limited time period.
With the help of Customer relationship model software, hotel easily achieve necessary
information and data. It is important for increase client values and satisfaction level about the
business facilities and products (Buttle and Maklan, 2015).
How unspecified innovative products and services may grow form increased insight: In
order to implement CRM model in the organisation which help the company to introduced their
innovative services and products in marketplace and in the mind of customer's systematically.
Unspecified new services and products may develop from maximised insight in an effective
manner. With the help of this tool business entity maintain long lasting relationship with
customers as well as maximise their annual turnover in limited time period. It is also replacing
and enhancing business activities in order to maximise productivity and efficiency essentially. In
regards to creating wholly improved and innovative products or facilities; often to run into
rapidly modifying needs and demands of the customers.
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Realignment of assets in order to meet customer necessarily better: Realignment is a
process of modifying the form a n organisation and company workers in a systematic manner. In
order to realignment business assets which turn to meet with customers basic needs and
requirement about the business products and services. In this Hotel classified their all products
and services in accordance of customers class and perception level (Buttle and Maklan, 2015).
Customer relationship model is valuable and beneficial for an organisation to keep the long
lasting connection with the buyers in a limited time period. In this Firmdale Hotel tries to
improve their products and services quality which assist manager to maximise the base of
customer loyalty and values appropriately. With the use of CRM model company easily meet
with customers needs and requirement as well as fulfil them effectively. This is support an
enterprise to maximise their sales and turnover and reduce additional cost of production.
Examples of good practice: In order to implement CRM model in the Hotel, business entity try
to solve all problems and issues of the clients. In this Hotel conduct survey in which, manager of
the restaurant ask large number of the questions to the customers regarding hotel facility such as
accommodation, transportation, guide and many other services. There are some examples of
better practices which are determined as below:
 Recruit great person
 Create a big first impression
 Be proactive
 Provide a seamless content or experience
 Treat all customers or visitors as individuals
In order to expand business operation and function in different level systematically. Customer
relationship management approach help the hotel to enlarge their all activities and functions in an
effective and efficient manner (Firmdale, firmdalehotels. Retrieved december, 2017). Applying
CRM Model, an enterprise easily maintain long term goals and objectives. This approach
includes eight steps which is used by the Firmdale Hotel to increase their profitability and
productivity ratio in certain time duration. In order to implement such approach, company
mainly follows 8 phases such as CRM Vision, CRM Strategy, Valued customer experience,
Organisational collaboration, Processes, information, Technology and Metrics. All are important
and beneficial for the hotel to solve customers queries and maintain better connection.
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Statistics and facts that underpin the analysis: In order to implement customer
relationship management model which assist the hotel to manage all information and data about
the customer needs and requirement. In this business entity provide quality and effective goods
and services to the target and potential clients effectively. CRM is very important and essential
for the business sales and revenues (Gartner, 2007). It can help the hotel to reduce their
additional cost and maximise profitability ratio (Advantages resulting from customer relationship
management usage, 2018). This approach is apply by all hotel in their business operations and
activities, so it will support the customers to spend their more time and money in this. In this
hotel tries to sort out all queries and issues of the customers in daily basis, so that all problems
are solved and they can maintain their loyalty with customers.
(Source: Advantages resulting from customer relationship management usage, 2018)
This graph shown about importance of CRM model in the Hotel and travel and tourism
sector (Zeng and Gerritsen, 2014). This approach improved the win rates and maximised
revenues in a systematic manner. So it is very essential and beneficial part of an organisation to
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Illustration 3: Advantages resulting from customer relationship management usage

maintain or keep long term connection with clients in limited period (Law, Buhalis and
Cobanoglu, 2014). For applying this method, company easily achieve competitive and many
other benefits.
CONCLUSION
As per the above mention report, it can be concluded that customer relationship is very
important part in travel and tourism sector. In order to maintain long lasting connection with
clients, each and every company apply CRM model. This approach assist the business entity to
increase their profitability and productivity ratio in limited time period. In order to implement
Gartner CRM model, hotel could be develop essential and main value to customers. This method
also support the company to maximise their sales and revenues essentially. This model consists 8
steps which is valuable and beneficial for an organisation to keep better connection and achive
customer loyalty easily.
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REFERENCES
Books and journals
Buttle, F., & Maklan, S. (2015). Customer Relationship Management, concepts and technologies
(3rd ed.). Oxon: Routledge.
Firmdale. (2017, december 20). firmdalehotels. Retrieved december 20, 2017, from
firmdalehotels: https://www.firmdalehotels.com/
Gartner. (2007). CRM Success Handbook. London: Ed Thompson.
Law, R., Buhalis, D. and Cobanoglu, C., 2014. Progress on information and communication
technologies in hospitality and tourism. International Journal of Contemporary
Hospitality Management. 26(5). pp.727-750.
Zeng, B. and Gerritsen, R., 2014. What do we know about social media in tourism? A review.
Tourism Management Perspectives. 10. pp.27-36.
Online
Advantages resulting from customer relationship management usage. 2018. Available
through.<https://www.klaspad.com/features.php>.
Customer software revenue forcast. 2018. Available through.<https://financesonline.com/top-15-
crm-software-enterprises-analysis-leading-systems/>.
CRM Platform Implementation Problems, 2018. Available
through.<https://biobm.com/2010/12/crm-challenges-and-benefits/>.
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