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Customer Service Management for Tourism and Hospitality Assignment (pdf)

   

Added on  2021-01-02

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Customer ServiceManagement for Tourism andHospitality

Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1Different components of CRM Model to build relationship with customers.........................1TASK 2............................................................................................................................................4Values created by CRM Model..............................................................................................4CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9

INTRODUCTIONIn the tourism and hospitality industry, failure and success of business, depends onservices that they are provided to customers (So and et. al., 2016). Present report covers areasrelated to management of customer service operations, analyse its effectiveness in tourism orhospitality industries, managing the resolution of queries and complaints of consumers etc. Inorder to deliver higher level of customer service, this assignment will explore its fundamentals incontext of tourism environment globally. For this assistance, report is divided into two maintasks, under which first part covers the components of CRM and second part defines how itcreates value for hotels and their customers. The Pig Hotels of UK is taken which includes acollection of small lifestyle hotels and restaurants. By using concept of CRM model, employersof this hotel seek to expand its litter with three new openings over next two years.TASK 1Different components of CRM Model to build relationship with customers“Customer Relationship Management” is a tool that is used for communicating choicesand preferences of customers to its sales department. Thus, it should be managed by companiesso that better services and facilities can be provided to its consumers in order to maintaincustomer relationship. Most of the companies are using typical CRM software for tracking needsand wants of customers (Zhou and et. al., 2014). In hospitality sectors like Pig Hotels, there is ahigh level of competition exists in the marketplace where each organisation seeks to augment itslevel of relationship with customers in high manner. In this regard, low level of switching costsand high degree of substitution assist hotel to develop an effective atmosphere of customerrelations. Along with this, to achieve success and gain competitive advantage, firm must findways to give best services to customers and exceed their level of satisfaction. One of the criticalfactors under achievement of business objectives and success, is process to create relationshipswith customers. Therefore, with this assistance, it is necessary for such hotels to develop anCRM model in order to compete intense competition at marketplace.In context with Pig Hotels, it includes a chain of small lifestyle hotels and restaurants.Currently it wants to expand business market in upcoming three years by launching three morehotels on different-different locations. Thus, to achieve this objective, its managers havedeveloped a CRM model to develop and manage interaction with potential and existing1

customers. This model is based upon value chain which creates a bridge between IT andmarketing. It was developed by Michael Porter which suggest that using this model, hotel andtourism industries can build, manage and retain long term relationship with their customers (Vander Wagen and White, 2018). It helps in identifying all processes and actions which are involvedin obtaining desired outputs from inputs. These outcomes are then offered to those customerswho are at the end of line of value chain. In this regard, willingness of customers to acquire aparticular product or service is termed as business value. Therefore, revenue for organisation iscalculated as total value less than cost which has incurred by providing best services tocustomers.There are several components of Customer Relationship Management and these areexplained below for better understanding:Sales Force Automation: This is the component which is taken by most of thecompanies as it enables them in knowing forecasting, recording and processing sales aswell. Other than this, it also helps company in keeping a track of important interactions. Human Resource Management: This department ensures that whether all skills andknowledge are according to the requirements or it is used as per the job profiles. Mainpurpose of HRM is to hire and select employees who are eligible enough for performingthe task in a better manner without having any kind of problems. As a result, it will aidcompany in achieving targets and objectives in a specific time period. Lead Management: This majorly keep records of sales and distribution as well.Company gains most of the profits through sales, marketing and customer executive.Basically, it includes efficient management such as designing, campaigns, listing andother factors. Components of CRM are mainly linked or can be said associated with various elementsand this mainly includes acquisition, customer retention and enhanced consumer value (Ali andAmin, 2014). Different kinds of marketing application tend to attract a large number ofcustomers whereas other analytical tools and data warehousing assist them in sustaining theloyalty of consumers with having better and effective communication system.According toimportance of viewing CRM as a business strategies, there are ample numbers of datawarehousing tool and analytical tools through which company can try to improve customer valueamongst future and existing customers. Henceforth, it can be said that Customer Relationship2

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