Role of HRM in Customer Retention at Holiday Inn Hotel

Research Project

Contents
INTRODUCTION...............................................................................................................................3
LITERATURE REVIEW...................................................................................................................4
RESEARCH METHODOLOGY.......................................................................................................7
DATA ANALYSIS & FINDINGS......................................................................................................9
RECOMMENDATION.....................................................................................................................20
CONCLUSION..................................................................................................................................21
REFERENCES..................................................................................................................................22

Title: To examine the role of human resource management in customer's retention” -
Holiday Inn Hotel, London.
INTRODUCTION
Human resource management is considered as a crucial activity that is based on
recruiting, managing, training people with the aim of attaining all the set goals and objectives
in stipulated time frame. As human resource plays a significant role in business organization
as they contribute in attaining higher success. This is the reason that proper management of
human resource is essential as it contributes in improving performance level of company and
its workers as well. In this HR manager also focus on managing employees’ activities at
working area by proving them better guidance so that they can easily perform their task and
activities as well (Cascio, 2014). In addition of this, HR manager also responsible for
preparing HR practices to invite skilled and talented workers who are able to effectively
perform their task and at the same time also handle customers activities. This can be
beneficial in improving customers satisfaction and also retain them for longer period of time.
With the assistance of this, company can capture larger marker share from its competitors.
Current research is based on Holiday Inn, is one of the famous hospitality industry subsidiary
of Inter-Continental Hotel group that operate their business in over the world with the aim of
generating larger profitability level. It was established in 1952 to serve their hospitality
services to large number of customers in order to attain their satisfaction level. The main
focus of this company is to retain their customers so that they can establish their positive
brand image. For attaining the same, management of human resource is crucial that support in
handling customers and provide them better satisfaction.
Research aim:
“To examine the role of human resource management in customer's retention” – A
Case on Holiday Inn Hotel, London.
Research objectives:
 To study the concept and importance of customer retention for an organisation.
 To identify the practices used by Holiday Inn Hotel for improving the customer
retention.
 To examine the role of Holiday Inn Human Resource Management in acquiring
customer's retention.

 To study the relationship between Human Resource Management and customer's
retention in Holiday Inn.
Research Questions:
 What do you understand from the concept and importance of customer retention for
an organisation?
 What are the practices used by Holiday Inn Hotel for improving the customer
retention?
 What is the role of Holiday Inn Human Resource Management in acquiring
customer's retention?
 What is the relationship between Human Resource Management and customer's
retention in Holiday Inn?
Rationale of research
Every research project provides vast and detailed information that assist investigator
in improving the possibilities of attaining positive and reliable outcomes. In context of this,
the primary reason behind selecting as well as undertaking this research is to effectively
evaluate the role of human resource management in improving customers retention (Papa and
et. al., 2018). As it helps in determining the actual analysis that support company in inviting
large number of customers. Along with this, current study is also support researcher in
improving their skills and knowledge about specified topic and area. This will directly
contribute in attaining positive and authentic results at the end of the investigation that
support in making overall research more successful and reliable in nature.
LITERATURE REVIEW
Concept and importance of customer retention for an organisation
The identity of one of the best customers is that they purchase company’s products
over and over again. According to the viewpoint of Al-Refaie, (2015), Customer retention is
said to be a process when consumers for a specific period of time purchase products and
goods an organisation. It helps a company in developing an appropriate relationship with its
customers. The best way to retain customers is to provide with the stuffs they expected. Most
of the companies prefer to keep their customer retain for a longer period of time because
attracting new customers can charge them high at cost i.e. five times more than the existing
consumers. Moreover, customer retention increases profits by around 25% to 95%.

Therefore, to understand this better some points on importance of customer retention is
mentioned below:
Save Money: Companies’ prior motive is always to minimise expenses and maximize
profits. Thus, customer retention is the significant way for doing the same because keeping
old customers is better than to go for new customers as old customers are familiar with the
products and services. Apart from this, with the help of word-of-mouth company can
advertise their services in a cost-effective manner. A valued customer, always trusts on the
facilities provided by their preferred company and always gives loyal feedbacks. therefore,
with the help of this organisation can check in what they are going well and what are their
flaws and need to work on.
Maximum Profits: In order to attain maximum profits than it is important that
company fulfil all the need and wants of customers. Moreover, corporation can provide
offers, discount coupons etc., it will not only attract more and more customers but increase
their market share as well. As old customers knows the value of the brand therefore, they
become less price-conscious and willing pay whatever price a commodity is asking.
Practices used by Holiday Inn for improving customer retention
With the establishment of company, they focus on building a long-term relationship
with its customers. As this is a hospitality industry so, expectations of guests are relatively
higher than others and there can be many reasons behind this Zhang and et. al., (2015), opines
in the study that, with the change in course of time, technology is playing a crucial role in
making its customers aware about the services and facilities they are providing. Therefore,
delivering on the basis of customer’s expectation can increasingly profitable. In relation to
this, Holiday Inn can use some of the practices and these are mentioned below for better
understanding.
Identify priority guests: Unlike new customers company should also prioritize past
guests. Although criteria used for new guests won’t be applied in identifying old customers.
So, for this company can lookout for pass bookings that has previous records. Moreover,
organisation can use models such as monetary value, recency and frequency to categorise and
identify who are their prior customers. Therefore, once guests are prioritized than managers
can look for strategies through which guests can be attracted.

Provides Offers: Everyone loves to get rewarded and giving offers is the best
practice for improving customer retention. This will help in attracting customers and for
companies it will build good customer engagement. In relation to this, corporation can
provide discount offers for their hotel stays or in food and beverages. Furthermore, loyalty
programme for their regular customers can motivate them to come back to hotel more often.
Guest’s Feedback for future stay: This practice is not the only way to enhance
services and offerings but also act as a motivational tool for providing future experiences.
Having guest’s feedbacks is kind of give company with an overview about the facilities they
provided. Whether it was good or bad and if not appropriate than what measures can be taken
to improve and make their stay special.
Role of Holiday Inn’s Human Resource Management in acquiring customer’s retention
According to the viewpoint of Sparrow and Makram, (2015), in a business, whether it
is a corporate company or a hotel industry Human Resource Management plays a crucial role
because they look out for most of the activities like, taking customer’s feedbacks, make them
aware about new offers, considering the preference of customers etc., Therefore, in relation
with customer retention Human resource management can contemplate some of the points.
Demonstrate personalised customer services: Hotel industry is known for its
services and facilities provided and for them guests are like their God. Thus, whenever guests
arrive whatever company is serving should be according to the specific needs and wants. This
should like good old-fashioned customer services for instance: if anything goes wrong that
human resource management should handle the situation in helpful and empathetical manner.
However, this can reverse the potential damage and might increase the interest of customers
to return to the hotel for another visit. Apart from this, Human Resource Management, should
focus on the quality of room that are provided to its customers for both business and leisure
travellers. Reason behind is that an individual is spending money to have a pleasant stay and
if this only is not fulfilled than it can have a bad impression.
Keep the conversation going: For guest who are in priority list, Human Resource
Management can send personalised thank-you note. Along with this, they can request guests
to write positive feedbacks and reviews in their websites so as to demonstrate social trusts.
Even after some weeks or months, company should be kept in touch and conversation must
go on, through emails, telephonic conversation, social media sites and websites corporation
can provide information and offers they can avail for when they will visit for the next time.