Customer Service Management for Tourism and Hospitality Report

This report provides a detailed analysis of Customer Service Management (CRM) within the tourism and hospitality sector. It begins with an introduction to CRM, defining its role in managing customer interactions and improving relationships, especially within the competitive landscape of tourism and hospitality. The report then delves into the components of a CRM model, including sales force automation, human resource management, customer service, lead management, and marketing, illustrating how these elements contribute to business growth and development, with The Pig Hotel in the UK as a case study. It examines the importance of CRM as a business strategy, highlighting the need for fragmented approaches and good practices within the hospitality industry, such as staff happiness and attention to detail. The report also explores the values created by CRM, including identifying target customers, understanding their needs, and adapting business activities to improve customer marketing and service. The report references Payne's Forces Model for CRM and concludes by emphasizing the importance of CRM in the service sector and how businesses can evaluate customer relationship management through operational evaluation, user adoption metrics, and customer perception metrics.

CUSTOMER SERVICE
MANAGEMENT FOR
TOURISM AND HOSPITALITY

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Different components of CRM Model to build relationship with customers..............................1
Values created by CRM Model....................................................................................................5
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Customer service management refers to the strategy which is being used by business
organisations in order to manager to control over all customer behaviour or interaction with the
company. With the help of this, it is being analysed that business firms can easily improve their
relationship with consumers. Through this, a corporation can easily grow in competitive
environment of tourism and hospitality sector (Chathoth and et. al., 2014). In this report, things
which are going to be included are concepts along with importance of customer service
management model. In present report, CRM model is used for better understanding of how
effective relationships can be made with customers. On the other hand, The Pig Hotels which is
located in UK has been taken CRM model for creating and embracing aspects of its regular
business activities.
TASK 1
Different components of CRM Model to build relationship with customers
Customer relationship management:
CRM is the coordinating, policy and philosophy strategy mediated aside a set of data
technologies, that is based on creating 2 ways communication with consumers so that
organisation have close knowledge of their wants, buying patterns and needs. CRM systems
collect consumer data across various points and channels of contact between The Pig Hotel and
consumers which can involve the company's telephone, direct mail, social media, marketing
materials, website, live chat etc. This method can also provide consumer-facing faculty detailed
information on consumers' purchase history, personal information and buying concerns and
preferences.
It is determined that the company primarily develop and create CRM model when this
wants to grow its concern in other area. It assist in establishing strategies in which a business can
modify its services or work and increase satisfaction level of consumers (Chathoth and et. al.,
2016). The Pig Hotel is focused on rendering worth to its consumers and it increase to gain high
tenancy rate each year. It presently wants to set up two more hotels in various cities of UK, so
its director have formed a particular CRM model. It is based on Payne's Forces Model which is
developed by Adrian Payne' in 2006 which includes strategy development, value creation,
multichannel integration, information management, performance assessment. Through with this
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model, administrator of The Pig Hotel can create policies to achieve its objectives and goals.
This model is developed because it is assist in facing problematic issues, to undertake a scope of
benchmarking process, to making a platform for alteration in the company.
Components: There are a various types of components which are important to CRM and
managers can effectively driven the business towards growth. Each component play a important
role in this process which are as follows:
Sales Force Automation: This is the most important element of customer relationship
management. This is one of the component which is undertaken by The Pig Hotel. In this involve
keeping a track and recording sales processing of the potential action, forecasting etc. It assist to
know the income generation possibilities better and create it very important. In this elements also
involve evaluating the performance and sales forecasts by the manpower (Dhar, 2015). To
achieve an entire improvement in the growth and development of the organisation, many
components perform hand in hand to variety sales automation as a resulting unit. Some of the
prime components of the same are increase account management, forecasting, activity
management, opportunity management, lead management, reporting, email management and
contact management.
Human Resource Management: It's central point is essentially want to maximum
utilization of resources and quality of people. HR mangers assure employee match with the
granted tasks in respect to their profession and skill. It is necessary with all organisation whether
they are operate on small and large scale. The Pig Hotel need to employ effective candidates for
designing these methods for fulfil goal and development.
Customer service: CRM emphasizes on collecting consumers data and information,
patterns, their purchase data and providing the collected data to the concerned and necessary
departments. Mostly all the main departments involving the marketing department, sales team
and personnel management are need to take steps to encourage their understanding and
awareness of the consumers complaints and needs (Gretzel and et. al., 2015). This makes The
Pig Hotel to deliver perfect and quick solution and help to the consumers and carter to their
demand which leads the trust and dependability of consumers and employees of the company.
Lead management: This management defines to keeping the path of the sales and
distribution. The Pig Hotel are benefited by this factor of customer relationship management and
most are the marketing firms, sales industries and consumers executives centres. In this include
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an effective management of the concluding the mailing lists, designing customised forms,
campaigns and various other factors.
Marketing: It is most important element and it defines the promotional activities which
are choose by The Pig Hotel in respect to promote their services. The marketing place targeting
to a specific crowd as well as group of persons. In this include the implementing and crafting
strategies in respect to sell the services. Customer relationship management help in the marketing
activity by improving and increasing the effectiveness of the method used for promotion and
marketing. This is done through develop the study and observation of the potential consumers. It
is a element that bring along many aspects and sub-elements.
Business reporting: It comes with a administration of marketing, consumer care reports
and sales. The consumer care reports help the managers of The Pig Hotel to increase an insight in
their regular work operation and management (Kandampully, Zhang and Bilgihan, 2015). They
assure that reports are precise as well as accurate. Other important factor is the forecasting and
capability to trade the business reports on another system.
Importance of CRM as business strategy and need to look various fragmented approaches:
It is defined as a strategy through which the company can interpret their consumer's
preference. Through this activity, firm can create strong relationship with its targeted people and
determinant to get services. In present commercialized world, hotel sector primarily focuses on
the significance of keeping of existing consumers. With this help, business enlargement is
overriding for them. CRM assist administrator of The Pig Hotels to create an sensibility into
consumer's behaviour. By this method, they can change service transaction in respect to assure
that customers are served in best effective way. In respect to this, it is also necessary for hotel
sector to choose fragmented CRM concept. It aid in appreciate the value of customers and render
in improving consumer relationship also. Hence, it has examine that better a establishment
understand its targeted customers, the more answering they can be for its demand. A fragmented
approaches is taken to be one where every structural group independently apply its part of the
CRM.
Some major practices within hotel sectors:
Hospitality industry is capable to intense competition. Yet, the goal of these enterprises is
to provide intense care and advanced hospitality to their clients. This sector has observer a
significant change in its activity. The importance of restaurants and hotels was principally on
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physical goods and services they had to offering. Businesses in these sectors are focusing more
on customer's demands and are emphasizing on create a strong consumer relationship. It is
necessary for a restaurants or hotel to apply ethical and good exercise within the enterprise. This
assist the enterprise to satisfy more consumers and accomplish its business goals.
There are examples of good practices which are followed by hotels in UK.
Staff Happiness: The essential aspect of accomplish great consumer relationship is by holding
the workers happy who are working in hotel sectors. For example: Pig Hotel has render bonuses
periodically and regular appraisal on the satisfaction level of the employees (Law, Buhalis, and
Cobanoglu, 2014). No employees is gratify in the same division for longer than a fixed time
period, and timely rotations assist the business to accomplish the worker maximal input when
comes to fulfil the needs of consumers.
 A passion for exactitude: Variability and inseparability are intrinsic nature of services,
that separate from tangible goods. The points to the position of the human component in
services, which is attended by lack or variability of standardisation and uniformity in the
condition of service. Track at the centres: The profit centre idea is well formed in the hotels and performance
at every profit centre is tracked on the daily basis. At Pig hotel, for example, there are a
many profits centres- gardens, rooms, coffee shops, guest telephone, guest laundry,
commission on encashment, room services etc.
Face time focus: Social media is a component of heavy addiction for persons currently. For
Example: Pig Hotel has focused on making a powerful online image by usage of actual time
feedbacks and interactive websites from consumers (Neuhofer and et. al., 2015). The business
has engaged a set of technical skilled staff that support innovating new know-how to link
personally with the consumers.
Facts and statistics and evaluation of CRM:
The service sector, is one of the fastest growing sector of industry. Businesses in the hotel
sector still focused on the improving the consumer experience. Moreover, many millennials
beginning to have disposal of income, the demand for epicurean travel also assist to boost the
business of hotel growth. Hotel industry that is one of the particular sectors of the service
industry established for over 30% of its worth.
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They identify that how CRM can be a effective solution to hotel sector and component of
their tactics. They use various methods to evaluate the customer relationship management.
Operational evaluation: In this include three department which are most connected with
the power of CRM systems apply a entire scope of various operational matrices to evaluate their
related work. In these include sales, marketing, service etc.
User adoption metrics: In this they track how the CRM method is being interpreted in
the company, involving number of completeness of data and log-ins etc.
Customer perception metrics: In this they measure customers experience and
satisfaction. If the customer don't satisfy with their services then should be provide better and
effective service to their customers to satisfy them (Radojevic and et. al., and 2015).
It is not only core consumer services like quality, price and delivery but also the friendly
method which is leads hotel sector towards long-term growth. It is extend consumer service
which provide the business an edge over others and increase the consumer's sensed values
towards its work.
TASK 2
Values created by CRM Model
Customer relationship management assist firm to generate an insight into the consumers
action as well as change its business activities. For this activity, it primarily concerns to assure
that targeted customers are served in effective and best way. It also help to firms in appreciate
the value of its customers. In broad, customer relationship management can be acquire by:
 Identification targeted consumers for exploding sales.
 Determining the preferences and need and purchasing power of potential consumers.
 Make changes in functional activities for improving consumer marketing and service.
In The Pig Hotels includes lifestyle hotels and a long chain of small hotels. All these
hotels are obsessed more on authenticity of design and informality, quality of service and display
of food. To generate high profit and raise market share, The Pig Hotels want to open two more
brand-new hotels in next three years (Sigala, 2014). In respect to, it is essential for managers to
create CRM strategies. For example: Building area of Payne for CRM assist in forming a model
which consists most necessary elements for successful expansion of business. It consider-
strategy development, value creation, multichannel integration, information management,
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performance assessment. These five factor are important for rising the long term success as well
as effectiveness of CRM.
Payne's five forces model:
This model developed in 2006 by Adrian Payne'. This model determining the five forces
activity in customer relationship management. It is a strategy development activity, value
creation activity, multichannel integration activity, performance assessment activity and the
information management process.
The strategy development process: It is concerned with two method such as integration
the business method from firm angle and consumers method as to how business select and
interact their consumers.
Business strategy: Examination of competitive characteristics and industry.
customer strategy: Identifying the proper level of division granularity and determining
the key consumers segments and forming methods to address these consumers.
Value creation process: The main benefit of determining value the business can develop
for consumers and the value the company can also profit from. Taking the output of the strategy
development process and forming a program that delivers and extracts value. In this include
target specific customer, develop value proposition and integrated program.
The multichannel integration process: Present and create the single view of consumer.
Negotiate the complexity of channels in integrated and profitable channels, assure consumer
experience in the channels, consumer interaction with many channels (Sigala, 2016). Interaction
channels include outlet, telephony, outlet, e-commerce, direct marketing and m-commerce.
The information management process: in this include many various of data repository
front and back office applications, IT systems and analytical tools, combination of related data
and collection of all information.
The performance assessment process: in this include two views-macro view and micro
view. In macro view consist shareholder's result, customer value, employee value and
shareholder value. Micro view consist performance monitoring in which consider about how can
they generate increased profits, and how must they set standards, measure results, develop
matrices and improve their performance.
On the other hand, apart from this process it is required for The Pig Hotel to use CRM
technology as well so that maximum benefits can be gained by them. In present context, it is
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being found that CRM technology have also helped hotels like The Pig Hotel to create cohesive
and a coherent body of data. This could easily help in developing value proposition for the hotel
of their targeted customers. It is much more beneficial for this type of hotel because it aid in
creation of better relationship with both targeted and existing consumers. Through this, The Pig
Hotel can easily raise its sales along with performance as well through catering needs of
potential customers. On the other hand, it is also being found that using Payne's five forces
model may aid The Pig Hotel in determining needs of targeted audience in much more effective
sense.
Financial Report: Among the newest hotels, the total turnover of pig Brand is increasing
continuously at a very high rate which is near about 20% with the profit rates reducing from
£969,813 in 2015 to £40,004 last year (So, King and Sparks, 2014). The hotel have achieved
success in its business activities from 2015 with highest occupancy of 70%. The revenues have
also increased from 2.2% to £4.7m. Among with this on daily routine basis the hotel is serving
166 customers (Demand for the Pig remains high as turnover increases 20%, 2018).
Including this, it is much more required for this hotel for cross selling of other
unspecified products or services and it consists with CRM concept highlights and suggests ways
through which same can be delivered to consumers on the basis of their own needs and
requirements. With the help of this, The Pig Hotel may easily grab good hold in business market
of United Kingdom considering both unspecified and specified products by creating
modifications. This may lead The Pig Hotel in launching three business hotels.
Benefits of implementing CRM strategies Improve Sales Performance: Considering or developing a favourable CRM model can
help business firms in improving their sales performance. This could be done through
introducing best technologies and CRM software within the hotel and this could lead to
improve connection with consumers for a longer period of time. Here, CRM software can
easily help in delivering right information to consumers as per their needs. Determining new customers: Organisations in present business world that are dealing in
hospitality sectors requires to focus on attracting new customers, that can easily purchase
products and services in dynamic nature as well. This could easily lead business hotels in
developing CRM strategies as well and this could easily help The Pig Hotel, to gather
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customers in much more effective and efficient manner. With the help of this, The Pig
Hotel may easily gain heavy opportunities and can gain attention of targeted audience. Customisation: CRM technologies along with organisational collaboration, it is required
for The Pig Hotels to customize or develop themselves as per demands of consumers.
This could be understood with an instance, where leisure tourists majorly carry a will of
getting luxury accommodations like stay in seven star hotel and so on. Here, it is being
found that demand of high class tourist will be different and he/she might kept its focus
on getting high range accommodation. Here, it will be required for The Pig Hotels to
satisfy their needs so that they can get good experience. This could help in developing
right relations with consumers for a longer period of time.
 Better Customer Support: Through framework of Payne's five forces model, managers
of The Pig Hotels can develop effective strategies and can also gather proper data about
preference and needs of potential customers through which better services can be served
to them.
Good Practice in Pig Hotel for effective customer services:
This section could be understood with a number of examples in different factions and
these are given below:
Fulfilling Expectations: In present context, as The Pig Hotels have kept its focus on opening
three new hotels in different areas, it is mainly required for them to develop strategies so that
they may easily make modifications of change in their customer's preferences (Zeng and
Gerritsen, 2014). It focuses mainly on increasing customer satisfaction through timely feedbacks
and offering at least one extra service to the customers as thankfulness for their visit. With the
help of this strategy of satisfying the customers needs cam help firm in fulfilling requirements
beyond expectations. For example: The Pig Hotels have considered both potential and normal
tourists and have made rooms on the basis of their requirements. Slight change in demand and
continuous feedbacks from visitors is helping them in bringing modification among
accommodation and other services which is being provided by the hotel.
 Customer Acquaintance: It also aims at personally knowing each customer walking in
through their gates. The Pig Hotels provide each customer immediate attention
throughout their stay and emphasize on knowing them personally to make them even
more comfortable with the staff and the managers. This has resulted for The Pig Hotels in
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developing one of the longest customer relationships. For an example: The Pig Hotels
have kept their data strong related to their consumers and have kept regular visitors in
totally a different system which helps them in giving extra benefits to them like free
breakfast or other services (Zhou and et. al., 2014).
On the other hand, it has also been analysed that CRM model can also help The Pig
hotels in improving ability retaining staff members for a longer period of time. Here, Employee
retention refers to capability of The Pig Hotels to hold staff members as long as they can. CRM
strategies and techniques can help its employees in developing their interests into their own jobs
or tasks which is being given by employer of The Pig Hotels.
CONCLUSION
With the help of above mentioned report, it is being concluded that CRM models can
help business hotels in developing effective and long term relationships with customers.
Therefore, it is being summarised that Hotels always require to develop CRM models for their
own benefits on a regular basis. Along with this, it also aids in developing effective behaviour
with customers through using CRM technologies and so on. Away with this, CRM strategies
may also help business firms in fulfilling needs of customers through taking feedbacks from
them. Here, changes mostly being made so that much better experience can be given to
individuals. Thus, using CRM model and if it is linked with promotional activities, this can hotel
to improve its sales, reputation and profit margins as well through direct interaction of
companies with customers.
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Online
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