CRM for Hospitality

CRM for Hospitality Industry

by Sachin Kaushik,on Nov 09,2019

The hotel industry is one of the fastest-growing sectors in the world with small hotels expected to grow the fastest. However, the industry is not without its challenges. Rise of hotel aggregators that threaten to take away their consumers, changing guest expectations owing to the rising millennial population, and irregular cash flows because of unsold inventory during off-season are emerging as key areas of risk.

CRM is essential in the hotel industry as it helps a company exceed its customers’ expectations by enhancing the aesthetic value of its services and providing the opportunity to build effective interpersonal relations.

Customer service is arguably THE most important factor for the hospitality industry. The better a hotel is at understanding its guests, the more likely the guests will return or offer a good review. It’s a no brainer that hospitality companies are using their CRMs mainly for improving customer experience. The customer experience starts from the very first touch point, but with 88% of hotel guests preferring an online booking experience, the human element is no longer part of that first touch. That’s why it’s so important for subsequent communications to be personalized.

The Need of CRM in Hotel Industry if not more is as important as CRM’s need in any customer-driven industry. Customer satisfaction plays an extremely important role in any business. It is the customer’s feedback about a product or service that determines its success and translates into profit for the company. This is especially true for service-based industries like hotels, tourism or transport industries. All successful businesses in the world today thrive on customer relations rather than the quality of their products alone. It is crucial to identify, create and maintain a dedicated customer base in today’s competitive market. Customer Relationship Management (CRM) not only builds a comprehensive database containing all information pertaining to the customers, but it also facilitates the company’s long term growth by forging strong ties with the customers.

CRM for hospitality business software is not only beneficial, it is essential for staying competitive in the modern connected world. Customers have access to information and promotions from competitors constantly. To make your services stand out, you have to be able to use the information of guests to discover the best practices for retaining their business.

Aligns with organizational objectives

The hospitality industry is a broad category that includes transportation, tourism, lodging and any other business that features customer satisfaction and enjoyment as part of the service they are providing. It encompasses a large range of different businesses with unique customer data needs.

Easily restructure based on data

Change in a company can be difficult. Restructuring customer benefits and interaction is quite an investment for an organization to undergo. Data from CRM software means an organization isn't changing blindly; it can be a slow process that adapts to the feedback provided by customers' experiences and hospitality successes.

Customer information scrutiny

In the hotel industry, massive volumes of customer information are churned out on an everyday basis. Even though the collection, storage and management of such information in a central repository is very important, real value is actually generated when such information is correctly analyzed to obtain an in-depth understanding about the factors that drive customers’ purchase and accommodation decisions. Structured data analysis translates to fruitful, profitable relationships.

Raising efficiencies, keeping customers updated

CRM systems are known for their immediate benefits of bringing about automation and eliminating non-core tasks. Automation further helps in faster, better, and wiser sales, marketing, promotion and advertising decisions and actions. CRM systems enable the creation of mail blasters, text message campaigns etc., through which, customers can be updated about happenings, events, special offers and packages. Reviews and feedback can also be invited.

CRM for Hospitality Industry

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