Customer Relationship Management (CRM) in the Hotel Industry

Customer Relationship Management (CRM) in the Hotel Industry. Customer Relationship Management (CRM) in the Hotel Industry. Assignment  – Questions

Customer Relationship Management (CRM) in the Hotel Industry


The Task

Summer Palace Hotels is a five-star international hotel group that operates in more than 50 countries around the world. Their CEO and management have engaged you as the consultant. In order for their business to remain competitive and profitable, the Summer Palace group is thinking of moving from a traditional tranansactial marketing business to a relationship marketing focused business. to gain insights into how their current CRM practices are keeping pace with the industry.


  • Your task is to prepare a report to the CEO by undertaking the three (3) task below.


Please note:

  • Students must answer each task SEPARATELY.
  • Students should separate and have an appropriate heading for each element (consumers and marketplace) when undertaking Tasks 1 & 2.
  • Marks will be deducted if these instructions are not followed.


Task A)

Customer relationship management (CRM) remains as relevant today as it was during its inception., this is particularly true with the hotel industry, where the way hotels manage customer relationships often define their competitive edge (Piccoli et al. 2003). However, due to continual and ‘seismic’ changes to major impacting forces, hotels and the hotel industry need to respond to these changes continually in order to stay relevant to their customers.

  • Describe how the hotel industry (in general) has changed or evolved since the 1990s until now in terms of;
    • consumers
    • marketplace

(Suggested 200 words in each part; Maximum 400 words).


Task B)

Based on your answers in part A), how do you think these changes would have impacted (specifically) on Summer Palace’s CRM strategy and practices?

(Suggested 400 words for each part, Maximum 800 words).



Task C The summer palace hotels has asked you as a senior consultant in the CRM industry to:     Develop and implement CRM strategies that will benefit Summer Palace hotels and will eventuate as a definite competitive advantage.

You initial task is to develop a report that outlines the following:

Highlight how relationship management differs from transactional marketing. These differences will highlight a fundamental shift and approach to marketing and operational activities.

Issues that could be considered are:

Data collection

Customer journey

Loyalty programs/reward programs

Retention strategies

Direct and tailored campaign strategies.


In Chapter 3 of the text Kumar discusses the “components of CRM strategy”. These are: Customer management orientation, Aligning the organisations process and operations, Information capture and alignment of technology and final implementation. These are very broad terms but the text discusses the implications of these ideals.

Firstly your team will need to look at what you are trying to achieve regarding objectives.


You are to Decide what strategies are best for a CRM implementation program for Summer Palace Hotels.


You will need to form a conclusion


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Customer Relationship Management (CRM) in the Hotel Industry

Customer Relationship Management (CRM) in the Hotel Industry

Customer Relationship Management (CRM) in the Hotel Industry

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