Hospitality eBusiness Strategies

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Is eCRM in Hospitality a Database Management or a Business Strategy to Engage the Customer?

The most common misconception in the industry is that CRM in hospitality and travel is synonymous to database management. Many hotel/travel companies, authors and conference speakers alike treat CRM as some kind of a technology application. The truth is that CRM in travel is much more than technology or database management. CRM and its online application, e-CRM are business strategies aiming to engage the customer in a mutually beneficial relationship.

Within this context, here is the best and most universal description of e-CRM for any hospitality company, travel supplier or online travel agency:

Electronic customer relationship management (e-CRM), in the context of Internet distribution and marketing in the travel vertical, is a business strategy supported by Web technologies. It allows travel companies (travel suppliers and online travel agencies – OTAs) to engage customers in strong, personalized and mutually beneficial interactive relationships, increase conversions and sell more efficiently.

Here are the main components of an e-CRM strategy in travel and hospitality:
•    Know Your Customer
•    Customer Service
•    Personalization
•    More Efficient Marketing
•    Build Customer Loyalty

Establishing mutually beneficial interactive relationships with your customers is the ultimate goal of any e-CRM initiative.

Please read Max Starkov’s recent article “Building Customer Loyalty via CRM Strategies on the Hotel
Website”
in Hotel / Innovations & Technologies – SMARTreport – May/September 2009.

You can also access the article from the HeBS site.

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