Essays on Customer Relationship Management - Summer Palace Case Study

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The paper "Customer Relationship Management - Summer Palace " is a good example of a marketing case study.   The hotel industry has changed significantly since the 1990s. Customers have changed in their behavior and preferences and the current market place has undergone massive growth. The changes are majorly caused by the advancement in technology and globalization. The internet has caused changes in the hotel industry market in various ways. Unlike in the past decades, consumers rely on reviews in deciding whether to choose the service of a certain company or not. Businesses in the hotel industry should, therefore, work hard to earn a good online reputation.

In its relationship marketing, Summer Palace should focus on adopting the necessary technology so as to maintain an online engagement with its customers, so as to remain competitive in the current times. Customer engagement is important in customer retention and communication of new services. Social media platforms such as Facebook and Twitter would be an excellent way of interacting with customers. Customer Relationship Management Introduction In the last few decades, consumer behavior and preferences, as well the entire hotel industry marketplace have changed significantly.

These changes have impacted how businesses in the hotel industry conduct business so as to remain competitive. Though slowly, the majority of businesses are adapting to these changes. Summer Palace is an international hotel group that is planning to move from the traditional transactional marketing business and adopt a relationship marketing strategy. This paper seeks to discuss how the hotel industry has changed in terms of both the consumers and the marketplace, how these changes would have impacted Summer Palace's CRM strategy for relationship management, and provide a CRM Strategy that will provide summer palace with a competitive advantage. Task A.

How the Hotel Industry has changed since the 1990s Customers . With the impact of globalization, more consumers tend to value services that include connectivity other than the traditional services. There is a wide range of structural changes that have affected the trends in the hospitality industry. In the modern times, the population is more diverse compared to the past decades; there are more women in the labor force as compared to the olden times (Bloom, Garicano, Sadun & Van Reenen 2014).

Also, family composition is nowadays different. In the current times, families with children under the age of 18 have reduced significantly within the past three decades. Single-person homes have increased because more people delay marriages due to reasons such as education. Also, the issue of divorce is on the rise. Single people are good potential clients for hotels. On the other hand, single parents have low incomes, rarely eat out, and have low chances of traveling and becoming customers in the hotel industry. Consumer behavior is different in the hotel industry compared to the previous decades (Brotherton 2012).

The current consumers tend to spend more time in social places that contribute to change in the room set up in the hotel industry (Hotelmarketing 2013). Most guests prefer to sit on comfortable couches as they use their computer, phones, or tablets. Also, the current generations of guests tend to spend differently. Most of them tend to prefer spending less money for a room, but more money for dinner and entertainment.


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