CRM can enhance your brand value by delivering compelling experiences each and every time there is an interaction between you and your customer. Properly executed, CRM can help hotel executives improve customer satisfaction and loyalty, and can ultimately improve the bottom line and increase shareholder value.

Targeted use of CRM expands on the theory that a company should focus its resources and investments on its most loyal customers. When identifying loyal customers, it's important to take into account customer profitability- what your customers are actually paying and how much it costs to serve them. Consider the hotel chain that realized many of its frequent guests were using external booking engines. The cost of serving the customer (namely the cost of servicing the hotel room) appeared to be the same and the customer often believed that he/she was paying the same room rate. However, the chain realized that profitability of these customers after commissions or rate breakage (the difference between the apparent rate on a website and the amount received by the hotel) was significantly lower than the frequent customers who booked via the chain website. As a result, the chain encouraged the external booking guests to book on its own website ...