The focus of the briefing document is to be on the hospitality sector where the chosen industry in hotel management. The discussion will highlight the key changes that can occur in the hotel management industry in the future and how the leader is required to handle these changes. The hotel industry is a highly developing industry which has to change itself with every modern advancement. Hence, identifying the key changes will be easier for a hotel industry and it will be easier to analyse the requirements of the leader in order to face the changes in this sector.
Firstly, globalization is a key trend that can influence the changes in a hotel industry. In the present modern world, possibilities will open for the large hotel brands to expand all over the world in order to achieve success (Rahimi and Gunlu 2016). It is important for the brands to adapt to globalization and develop their brands significantly by expanding into potentially new territories.
Secondly, the modern customer needs. The modern customers have a modern approach towards their travelling plans and accommodation. Hotel industry which primarily supports the accommodation purpose must always address the demands of the customers. It is also essential for the hotels to understand that the needs of the customers will change according to their cultures and demographic backgrounds (ElKordy 2014). Keeping this in mind the hotel industry needs to identify the changes that are required to address the trends of the demanding customer. Information regarding the different customer needs and their potentiality of engagement with the hotels services are the key points that the hotels should keep in mind in order to change. Hotels will need to analyse the data and accordingly personalise their changes to provide a unique experience to the guests.
Thirdly, the rapid technological advances will be an influencing factor in driving the change in the hotel industry. It is very important for the hotel industry to identify the key technological advances. Identifying these developments will help the hotels to analyse their standpoint in the present scenario and what are the key technical issues that required being addressed (Chuang and Lin 2017). The hotels will have to have an open approach to integrate the modern technical facilities into their strategic change management system to provide a smoother and more appropriate experience for the customers.
These factors are the primary trends of the modern society that will drive the change management system of the hotel industry. Identification of these trends will help in the analysing and developing the key changes that will occur in the future and how they be addressed by a successful team leader.
Firstly, the most important area of change in the hotel industry is the changing guest behaviour. The prime factor that requires this change is because it is the hotel’s reaction to the guest behaviour that drives their profitability. This factor is popularly termed as Customer Relationship Management (CRM). The guests who are paying for their services expect the best services and prompt responses to their requirements. Hence, the hotels should repeatedly monitor the changing behaviour and requirements of the customers and accordingly update their own services in order to cater to the needs of the customers. In the modern age the power of the social media is undeniable. If the guests remain unsatisfied, they can easily use the social media to highlight the key issues of the hotel (Rosman and Stuhura 2013). This can degrade the reputation of the hotel and affect its profitability. The hotels therefore should be able to change their methods according to the sophisticated needs of the customers.
Secondly, in the modern world which is laden with technological advances, the hotels need to change their infrastructures accordingly. The last few years have seen the emergence of online hotel booking and has rendered the offline mode almost obsolete. It is essential for the hotels to adopt to these changes and integrate the online booking systems as without these they can suffer low customer footfall due to the non-availability of the online booking system. Moreover, the hotels also need to upgrade to cloud based systems for the operations which will make the work and monitoring system smoother than the earlier complicated offline systems (Rodriguez, Peterson and Ajjan 2015). The advent of mobile technologies is playing a very important part in the travel related services. From searching the hotels, planning the trips and hotel booking, most of the travelling processes are done by the mobile booking systems. Hence the hotel should indulge into incorporating the use of mobile apps which can help to draw more customers in an easier way and maintain an effective CRM. The hotels using these technological solutions will be on a better position in the market than its competitors.
Thirdly, the increasing population and the rising number of hotels in the society require including creativity as a part of the change that needs to occur. People are consistently on the look-out for hotels with innovative systems of customer satisfaction. (Grissemann, Plank and Brunner-Sperdin 2013) It is evident because the process of developing unique ideas has its own value. The hotels should create an infrastructure where the failure of the system can be adopted as learning. CRM is an essential part that keeps the hotels motivated for innovating different ideas to remain at the top of the business. This aspect can help the hotels to continuously evolve accordingly and develop unique ideas for better services and profitability. This development can help the hotels understand the requirements of the customers in a more efficient manner. These changes will reshape the relationship between the customers and the staff.
The above discussion in which the different factors of change has been discussed for the hotel industry it can be identified that CRM plays a very definitive role in the system of change management. Change management can be looked upon as a strategic approach which the hotels adopt by utilizing their internal resources for the development of better customer relationships (Payne and Frow 2005). The focus of the CRM is to maintain a long-time customer relationship which can develop the profitability of the hotel and also give it a competitive advantage over its competitors. It is very important for the leaders or the managers to understand the various factors of the CRM and use it effectively for facing the changes that can occur accordingly in the organization and use it for the benefits of the organization.
CRM has deep impacts on the profitability of the hotels. The hotel industry being a highly competitive sector has to adopt policies which have to encourage the retention of customers on a higher number (Kumar and Reinartz 2018). The effectiveness of this competition has to be ensured by the leaders who can analyse and implement developed CRM policies in order to develop a sustainable relationship between the organization and the customers. Development of literature for the enriched CRM system is essential for the effective analysis of the behavioural patterns of the customers and adapting accordingly (Reinartz, Krafft and Hoyer 2004). The hotels deal with a lot of customers and in the process acquire lots of data about the customer expectations and needs. The leaders should develop the CRM policies according the considerable amount of knowledge gained from the collected data for the effectiveness.
CRM should be focused on the basis of different issues related to the customers. They are namely the sophisticated customers who prefer particular services, newer markets, brand loyalty and the different costs related to customer satisfaction (Mohammed and Rashid 2012). The leadership should focus on these key areas to enhance the profitability of the organization and sustain in the competitive market.
The enhanced CRM development is based on different dimensions which the leaders should focus on working efficiently in order guarantee improved performance. The dimensions are mainly, proper organization of the CRM, knowledge based CRM, customer focus, and technology based CRM. Researches on CRM in hotels have shown that the hotels need to focus on filling the gaps between the co-ordinations of these dimensions in order to make them work (Mohammed and Rashid 2012).
Customer focus or customer orientation is one of the principal dimensions that the leaders need to focus to face the changes in the CRM. The leaders need to address the customer-satisfaction quotient and needs to confirm the primary requirements for the customer oriented issues. These can increase the customer satisfaction for a longer period of time and also creates the brand loyalty among the customers. This has a great positive impact on the hotels and ensures profitability (Wang 2012). Researches on CRM has highlighted that in organizations such as hotels where customer interaction is much more and primary product offered is service, customer-orientation is the primary focus of change. It helps in the better understanding of the customer (Amoako et al. 2012). Moreover, it has been seen that there is a relation between customer orientation and market planning. These type of strategic relations help in the development of CRM on the basis of market strategies. These customised market strategies influence the enhanced implementations of policies which benefit the customers with innovative ideas. This increases the brand value of the hotel and increases its profitability.
The second dimension that is required to be focused on by the leaders is the organization of the CRM. The process is only effective when there is a proper framework of organization which provides the perfect working environment for the staffs to work efficiently and develop an enhanced CRM. The essentiality of organization can be determined from the studies where it has been seen that in spite of having the most modern technologies and infrastructure the hotels fail to achieve the targeted result due to lack of organization (Narteh et al. 2013). The operation procedures need to be very compact and must be addressing every issue such as customer behaviours, enhanced tools and techniques for customer behaviours, modern technologies to monitor customer requirements, management systems and effective leadership in order to create an enhanced organization for the CRM (Abdul, Basri and Shaharuddin 2013). The leaders have to focus on the fundamental changes of the hotel in order to create a perfect organization for the CRM. The organization’s internal resources which are in the control of the leaders should be used efficiently in order to plan the implementation of policies and the active involvement of the staff to grow a better relationship between the customers and them. This can further influence the other changes such as customer retention, enhanced marketing policies and the financial outlook of the organization. The knowledge about the customers is very important in developing the organization which plays a very pivotal role for the leaders to develop the CRM.
The third dimension that is the most important factor for CRM development is knowledge management. Interactions with the customers helps the employees of the hotel let them gather important information about the requirements. The leaders can utilize this information for focusing on the different points of development of the organization and can effectively implement the change process on the CRM (Khodakarami and Chan 2014). The utilization of the customer information is effectively beneficial in determining the success of the implemented changes. This helps to build a better relationship with the customer, which can benefit the organization in the long run. A successful monitoring of customer information and development of knowledge helps the leaders to keep the hotel updated of the recent trends of customer requirements. This lets the hotel to stay ahead in the competition. The temporary success of the changes in the CRM needs to further investigate for the development of more enhanced customer satisfaction (Mohammed and Rashid 2012). This type of research is important in determining the importance of knowledge and its role in the success of CRM. As the hotels have the advantage of gathering a lot of knowledge from the customers, it can be further used for the development of several marketing policies. The consecutive CRM policies are similarly associated with the marketing capabilities and helps the leaders develop their performance regarding decision making and customer relations.
The fourth dimension for the development of CRM is technology. The modern society is entirely based on the technological advances and the adaptation of them in the operational process. Similarly, it is essential for the leaders in a hotel to adopt technology according to the requirements and apply them in the different processes of the management of the hotel to develop an effective operational process (Mohammed and Rashid 2012). The non-adoption of the technology will make the hotel be left behind in the competitive market and eventually their business operations. Relating to this discussion, researches also say that the development of CRM in hotel should be in accordance with the technology and it should be actively used for the better part of the building of the customer relationship (Awasthi and Sangle 2012). Thus, technology can be considered to be the most active driver for change. The information technology can help the customer service smoother providing them with more satisfying experience. The customer-centric technologies drive the development of related CRM which helps the helps the hotels to develop a long lasting impression on the customers. The technology can be used as an effective marketing communication tool which can help to convey many information which were earlier considered not achievable. The technology based CRM can help in the storage of large number of customer information, which help the leaders to analyse and develop the required knowledge. The CRM technology hence plays an important part in marketing capacities of the hotel which are dependent on the customer satisfaction quotient of the hotel. These helps to bridge the gap between the marketing aspect and the customer service aspect and makes them more dependent on each other (Mohammed and Rashid 2012). Thus, the study of the technology CRM can help the leaders of the hotel gain a sustainable knowledge about both the marketing abilities and the customer relationship measurement of the hotel.
The change factor in the hotel industry is an evident development and needs to dealt with tactics and understanding. In section 1, the key factors of the change has been identified while in section 2, a more descriptive discussion has been carried out regarding the possible changes and how they are to be dealt with by the leaders in order to help the hotels to achieve a sustainable development and profitability. Customer Relationship Management or CRM is the key to understanding the change issues in a hotel and the implementation accordingly is the key to their success (Padilla-Meléndez and Garrido-Moreno 2014). Though the usefulness and effectiveness cannot be denied as the implementation of the changes in CRM can help the hotels to increase profitability, there still remain limitations to these changes and they need to be addressed according to the requirements in order to achieve an overall success in the change process.
The first key issue that can be highlighted in the change process is the understanding of the customer behaviour. The importance of understanding the customer behaviour has been stressed throughout the discussion and the key aspects of how the process can be done has been focused upon (Haghshenas and Ahmadi 2015). However, the issue that persists is to understand what aspects of the customer behaviour are to be focused upon while discussing the issues of change.
The second issue that has to be focused upon is the innovation regarding the services and management on the basis of the customer orientation. Innovation and change is the key aspect of CRM which always helps the development of the hotel. However, it is important to understand the issues in a better way for the innovative ideas to take place. Moreover, an improper understanding of the customer orientation can lead to ideas which might not address the issues properly and at the same time be considered to be vague (Al-Azzam 2016).
The third issue that has to be focused upon is choice of proper technologies. It has been already discussed that technology plays a very important part in the change management process. However, the key issue that the leaders can face is the choosing of the proper technologies for addressing the changes required in the CRM (Srinivasan 2018). It has to be understood that the improper choice of technology might be futile and the purpose of the using technology might not be fulfilled and it may just be a burden on the hotel organization.
However, the above issues can be addressed by proper planning and management. The few recommendations that can be adopted for the proper addressing of the issues are as the following. Firstly, the leadership has to sort out what customer information they have to consider while they enrich their knowledge in order to avoid unimportant information. This process can negate the possibilities of avoiding the development of vague change process based on unimportant choices. Similarly, this process can help in the right way for the innovation. The innovation of new ideas and change management system are primarily based on the developed knowledge from the customer orientation. Hence, right information can help in the development of the right innovative ideas for the leaders to tackle the change.
Last, the technology should be chosen according to the proper requirements of the hotel. The technology used for the collection of the data, addressing customer requirements, help the customers in the booking process and other essential needs related to the hotel industry should be up to date and should always be user friendly to give the customers a more enriched satisfaction. It can also help in the proper development of the change management policies.
The above discussion highlights the different aspects that are the driving factors for the hotel industry by highlighting the key factors that are responsible. The second section of the discussion focuses on different theories and policies which help the leaders to decide on hoe to tackle the change factors and what management policies they should adopt to address the changes. These concludes with the few key issues that has been identified from the discussion which has further led to the development of a few recommendations which can be helpful for the leaders to consider while developing change management policies in a better way.
Reference:
Abdul, A.M., Basri, R. and Shaharuddin, T., 2013. Assessing the influence of customer relationship management (CRM) dimensions on organization performance: An empirical study in the hotel industry. Journal of Hospitality and Tourism Technology, 4(3), pp.228-247.
Al-Azzam, A.F.M., 2016. The Impact of Customer Relationship Management on Hotels Performance in Jordan. International Journal of Business and Social Science, 7(4), pp.200-210.
Amoako, G.K., Arthur, E., Christiana, B. and Katah, R.K., 2012. The impact of effective customer relationship management (CRM) on repurchase: A case study of (GOLDEN TULIP) hotel (ACCRA-GHANA). African Journal of Marketing Management, 4(1), pp.17-29.
Awasthi, P. and Sangle, P.S., 2012. Adoption of CRM technology in multichannel environment: a review (2006-2010). Business Process Management Journal, 18(3), pp.445-471.
Chuang, S.H. and Lin, H.N., 2017. Performance implications of information-value offering in e-service systems: Examining the resource-based perspective and innovation strategy. The Journal of Strategic Information Systems, 26(1), pp.22-38.
ElKordy, M., 2014. The impact of CRM capability dimensions on organizational performance. European Journal of Business and Social Sciences, 2(10), pp.128-146.
Grissemann, U., Plank, A. and Brunner-Sperdin, A., 2013. Enhancing business performance of hotels: The role of innovation and customer orientation. International Journal of Hospitality Management, 33, pp.347-356.
Haghshenas, M. and Ahmadi, S.M., 2015. The effects of customer relationship management dimensions on organizational performance (Case study: shipping organization of Iran). WALIA journal, 31(4), pp.134-141.
Khodakarami, F. and Chan, Y.E., 2014. Exploring the role of customer relationship management (CRM) systems in customer knowledge creation. Information & Management, 51(1), pp.27-42.
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Mohammed, A.A. and Rashid, B., 2012. Customer Relationship Management (CRM) in Hotel Industry: A framework proposal on the relationship among CRM dimensions, Marketing Capabilities, and Hotel performance. International Review of Management and Marketing, 2(4), pp.220-230.
Narteh, B., Agbemabiese, G.C., Kodua, P. and Braimah, M., 2013. Relationship marketing and customer loyalty: Evidence from the Ghanaian luxury hotel industry. Journal of Hospitality Marketing & Management, 22(4), pp.407-436.
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