Plenty of Room at the Inn for Hotel CRM Systems
Rewards programs are common among large hotel chains, but they just scratch the surface in terms of CRM's capabilities in nurturing customer loyalty.
They could keep track of information on room preferences, for example. Or keep tabs on special needs such as non-allergenic pillows or other details that "tell the customer that they are valued," said Prism Partnership's Maureen O'Hanlon.
Hotels Lag in CRM
Generally, the hotel industry programs feature such rewards as extended stays at a discount or for free, or offering discounted rooms at a later date based on points accumulated from frequent stays at a facility operated by a particular hotel chain. However, moving beyond the free room concept into broader and more innovative applications of CRM has been problematic in the industry.
"The large chains and casinos are more involved with CRM than the small brands and independents," Jason Price, executive vice president of Hospitality e-Business Strategies, told CRM Buyer, "but the entire industry lags behind the airlines and online travel agents."
Regarding CRM systems, "the online travel agents get it, and devote a lot more attention to this side of the business than the hotel industry at large," said Price. "The cost and need for hotels is greater than ever, and yet hotels are still the slowest and most reluctant to apply simple CRM exercises to their daily business practice."
As a case in point, Price cites the example of a small Midwestern group of hotels that generated more than US$1 million in extra revenue by simply upselling their hotel suites through their reservation confirmation messages. After a customer made a reservation, the hotel sent a confirmation letter with the offer to upgrade from a standard room to a suite for a modest additional fee.
"Any hotel can do this, and yet most do not," Price said.
More recently, larger hotels have been tweaking their rewards programs by offering incentives beyond discounted or free rooms.
"They are getting more sophisticated and using tie-ins to the hotel gift shop, or the hotel restaurants, or other types of merchandise offers," O'Hanlon said.
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Source - E-Commerce Times
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