An exposé of the current state of CRM in the hotel industry

Luck, Diana (2007) An exposé of the current state of CRM in the hotel industry. Doctoral thesis, London Metropolitan University.

Abstract

It has even been argued that CRM is one of the most important strategies that any organisation intending to stay in business must develop. Based on the fact that hotel companies have in evidence already started to embrace CRM, the aim of this thesis is to explore the state of CRM in the hotel industry in contemporary terms.

As this thesis intends to be an example of basic research as well as applied research, the topic of CRM has been examined on both the conceptual level and at the practical level. While the secondary research gives a solid theoretical grounding, the primary research explores the reality of CRM in the hotel industry and ultimately proposes a list of CRM dimensions specifically aligned to this industry. This refined list of dimensions enables the thesis to contribute to the advancement of knowledge on the conceptual level.

In an attempt to gather an objective overview as well as an implicit insight into what the general population think about CRM, a combination of research approaches and methods have been used during the primary research. While the first phase of the fieldwork consists of a self-administered standardised questionnaire, the second phase revolves around repertory interviews. As the latter has arguably not yet been used within the hotel industry in the format used in this research study, its application enables this thesis to contribute to the advancement of knowledge on a methodological level too. The quantitative research instrument helped gauge which of the elements that academics have professed to be part of the CRM concept actually resonate with the guests and employees, and uncover how prevailing dimensions of CRM influence segments of respondents. The principally qualitative research instrument, the repertory interviews, helped examine the micro-reality of the respondents.

By considering the arguments of academia, the perceptual differences of employees (those who enable the delivery of CRM within the hotel industry) and guests (those to whom CRM is primordially targeted), this thesis not only ascertains that CRM is an applicable and valid strategy within the hotel industry in contemporary terms, but it also illustrates the tnadic grounding of CRM as a still emerging concept, which pivots upon the three dimensions of technology, people and processes.

Although this thesis proposes a refined list of CRM dimensions, it is nonetheless argued that this list can only be temporal as not only will the concept of CRM continue to evolve but so too will the hotel industry, customers and most certainly the marketing environment. Notwithstanding, the deepest essence of this investigation is that people are driven by similar dimensions and that each dimension serves a purpose.

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