Customer Relationship Management in Five Star Hotels: The Case of some Selected Five Star Hotels in Addis Ababa
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Date
2019-06
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Addis Ababa University
Abstract
This research was undertaken to assess the practices of Customer Relationship Management in
Five Star Hotels in the case of some selected Five Star Hotels in Addis Ababa. In order hotels to
survive in an increasing competition, they need to implement Customer Relationship
Management. The research finding indicated that hotels understudy did not yet fully implement
Customer Relationship Management. As a result of this they have faced challenges and could not
resist stiff competition. The awareness of employees on Customer Relationship Management was
found to be minimal. Tourists/customers data were not gathered and compiled properly.
Trainings were not conducted in a planned manner. The historical development of Customer
Relationship Management showed that Customer Relationship Management developed together
with the development of Industries and businesses. Through the process of this development
change was an important factor to be considered. Customer Relationship Management started
in the early 1970s and became popular in 1990s. The specific objective of this study was to know
the practices of Customer Relationship Management in five star rated hotels in Addis Ababa and
to identify challenges facing these hotels. The data was collected from both the employees
including managers and the guests/tourists who minimally stay in the rooms of the hotels and
concerned stake-holders. In order to gather the relevant data, three hundred and forty eight
sample questionnaires and nine unstructured interviews were administered. All these data were
accepted and used as a valid. Gathered data were classified, analyzed, and interpreted. The
descriptive analysis adopted for both Quantitative and Qualitative analysis and thematic
analysis and narrative conducted for qualitative data. After analysis, data were formulated in
table, frequency and charts style. Findings illustrated that most of the hotels were trying to
practice Customer Relationship Management. But many of them faced challenges in effectively
implementing all the known Customer Relationship Management practices. This problem
occurred because of lack of implementing customer relationship management strategies and lack
of knowledge on Customer Relationship Management. The researcher concluded that Customer
Relationship Management practice is an important component because of incremental impact it
has to the market share. The researcher has recommended that the managers of the hotels
understudy should able to conduct sustainable training program for employees and top
management members to develop awareness about Customer Relationship Management. And
managers of the hotels have to strive for the full implementation of Customer Relationship
Management. Because, it has been tested by many researchers that Customer Relationship
management changes the overall performance of the hotels.
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Keywords
CRM, Hotel, Hospitality Industry, ICT, CEM