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Exploring the Nature of Effective Customer Relationship Management Capability in the Irish Hotel Sector

Project Team: Mr. Richard Drohan, Dr. Patrick Lynch ([email protected]), Dr. Anthony Foley ([email protected])

This project was funded by WIT’s Behest Programme (2004). It had a lead time of 12 months, and was completed in June 2005.

The Project Aim:

The purpose of this project was is to gain an insight into the characteristics of an effective customer relationship management (CRM) programme in the hotel sector and to develop a CRM model of best practice.

Methods:

In order to explore effective CRM within the Irish hotel industry, a detailed case study was carried out in an Irish hotel. To ensure rigour, several sources of evidence were used: semi-structured interviews with front-line employees and managers, documentary analysis, researcher observation. A detailed case protocol was developed to control the study. The data obtained from the interviews was subsequently analysed through the Nvivo software program.

Engagement Activity:

This project had significant engagement with one case hotel site where the researcher got access to areas of hotel processes. The hotel management and staff continuously engaged the research process through face to face and online workshops as well as networking events to explore the CRM practices at the hotel.

Impact:

The study found that the CRM-oriented culture in the hotel exhibits a strong sense of ‘family’, reinforced by respect and dignity, role modelling, motivation and empowerment. This dynamic informs the interaction of the key actors, managers, front-line employees and guests. The CRM-oriented culture also informs and is supported by organisational systems such as technology, recruitment and training. The study has resulted in the development of a ‘best practice’ model for CRM in hotels, which makes a significant contribution to the limited research on CRM
efficacy, and also addresses the need for a prescriptive approach to CRM in hotels. This model highlights that effective CRM capability is really composed of three key capabilities in customer-relating, employeerelating, and customer co-creation. This model also provides a number of important avenues for future research.

RIKON 2013.