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Analyzing How CRM is Key to Success in the Hospitality Industry

By Contributing Writer
Jeremy Sparks
December 06, 2023

Hotel CRM is linked with improving performance and standing out of the crowd of other hotels next door. There is so much data floating around in the hospitality area that technology has become mandatory more than ever before.

All grandiose Hotel chains use CRM effectively, including Hyatt Hotels Corporation, Hilton Worldwide, and Marriott Hotel, the latter of which has been in the international media being scrutinized over the extremity of legal disputes, including allegations of financial misconduct, contract disputes, and other legal disagreements, currently being investigated by the Polish authorities.

In retrospect, the Marriott Hotel in Warsaw was the only hotel open during the first lockdown period. This aspect led to the accumulation of operational and maintenance costs that Lim Center covered. Lim Center filed legal complaints against the Marriott Hotel’s financial irregularities and breach of contract, which then led to a series of criminal investigations for theft of funds, money laundering, and breach of contract.

Nonetheless, amidst the legal turmoil, Marriott Hotel – being amongst the toppers of the hospitality industry – has said that it is focusing on the implementation to boost sales and run its hospitality operations more effectively.

The Use of Data for Personalization

Hotel chains understand that data is key to success. A potential data breach can lead to serious damage to the hotel’s reputation. Take the Marriott Hotel for example, where back in 2018, the grand hotel chain announced that one of its reservation systems had been hacked.

The potential attackers had infiltrated hundreds of millions of customer data, including their passport numbers and credit card details. This major data breach has since served as an important lesson for other hotels and enterprises about how to protect themselves from going through a similar devastating experience and other legal accusations.

As a Hotel owner, if you want to achieve a high level of personalization, the data needs to be accurate. It is important to look at the technology, but you will have to keep things on a low level. You don’t want the technology to take over completely but to assist you and to ensure that the entire process goes quicker, easier, and more direct.

You will want to use the right CRM system that encourages collaboration, automation, and personalization. You will also want to optimize your time by using technology to automate tasks. With the right technology, you can wow your guests and provide exceptional customer service, which is mandatory to stand out in the hospitality industry.

You need to understand that data is a fundamental area and ensure that all the areas work together perfectly, and technology can help you compliment that. While you can use technology to automate all of the communications, you can make use of CRM to automate and make synergies between the various departments of the hospitality industry, including the sales and revenue departments, marketing, and distribution.

Also, don’t forget to inform your operation staff as well. Loads of hotels think that a CRM is a simple administration marketing tool; however, this isn’t the case. If you share information about a guest arriving with housekeeping or reservation – the entire process of personalization has kicked off there already.

Using a CRM, you can let everyone who is working in the relevant departments, including housekeeping and staff, know that a guest is arriving, where they would like to stay, what kinds of pillows they like to use, etc.

Cloud-Based CRM – Potential Benefits for Hotel Owners

The benefits of a cloud-based CRM are plenty – not only can it help hotel chains improve guest experience, but the hotel staff can benefit from it as well. The workforce is also going down right now, which implies that it has become a bit challenging for hotel chains to find the right people, which is also where the importance of the implementation of CRM comes in.

For anyone working in the hotel industry they know that hotel chains collect loads of information about their customers, including information related to when they travel, how they make their reservation, and what they do when they are staying at their hotel.

This massive data is collected and used by hotel chains to understand their customers and personalize their experience. The main question is – how do hotel chains manage this massive data. This is where CRM comes in.

CRM Helps with Improving Customer Experience & Personalization

Regarding personalization, it is no longer an accessory or a nice thing to have – it is a must. More than 70% of consumers actively expect companies and hotels to deliver personalized interactions. When a majority of consumers don’t see this happen, they become frustrated.

Hotel chains can boost their revenue by 17% by integrating advanced personalization in their emails. Getting personalized emails from hotels sends out strong messages to the potential customers who see this beneficial regarding the fact that the hotel understands their wishes and interests; hence, it makes them want to stay loyal to that hotel chain and choose it more frequently for their stays.

More or less, personalization is about emotional engagement. Hotel owners can leverage a CRM or a cloud-based communication platform to maintain their clientele. Even tailored offers can transform consumers into repeat buyers.

So, the key benefits of a CRM connected with the hospitality industry include a boost in guest engagement and improved personalization, which then leads to guest satisfaction. Using CRM, hotel owners can connect with their guests in a meaningful manner while targeting their needs.

With greater engagement and personalization, there is greater guest satisfaction, as the consumers are more likely to share their positive experience with others and tell them how great their stay has been. They will say that the hotel knew exactly what they wanted and had prepared the room according to their preferences.

By sharing their great experience, you can then expect higher bookings because people look at Google for reviews, recommendations, and customer feedback before they make a booking with a hotel. A CRM will also help you strengthen the customer’s loyalty to the brand. Also, CRM functions are automated and can save you time while boosting profitability.

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