Successful implementation of CRM in luxury hotels: determinants and measurements

Abstract

Purpose

Valid measurement scales for predicting the adoption of hoteliers’ customer‐centric orientation are in short supply. The present research develops and validates a new scale for a specific variable, i.e. Management Attitudes Towards Customer‐Centric Orientation (MATCCO). Furthermore, this research attempts to identify some broad determinants for a successful CRM system implementation and propose a research model depicting possible relationships among MATCCO, broad determinants and profit.

Design/methodology/approach

A structured questionnaire has been developed in order to accomplish the research objectives. Data were collected from 86 Greek luxury hotels. Accepted methodology was used to construct the measure, factor analysis to determine the CRM key success factors (KSFs) and Pearson correlation, ANOVA and discriminant analysis to test the proposed model. Additionally, qualitative research was conducted in two Greek luxury hotels.

Findings

A reliable and valid measure of MATCCO was constructed. Four CRM KSFs were identified. The research model was verified and proposed confirming relationships among MATCCO, CRM KSFs and company profit. Cases analysis showed that effective customer communication strategy, IT infrastructure and suitable organizational strategy are the KSFs of CRM implementation provided that hoteliers are positive toward customer‐centric orientation.

Research limitations/implications

The results of this study are applicable to luxury hotels.

Practical implications

There is a necessity of checking the level of MATCCO before undertaking a CRM implementation project. Further, the results of this study highlight some crucial factors that influence successful CRM implementation in the hotel lodgings.

Originality/value

The main contribution of the paper is the construction of the multi‐item measure of hoteliers’ customer‐centric orientation.

Citation

Sarmaniotis, C., Assimakopoulos, C. and Papaioannou, E. (2013), "Successful implementation of CRM in luxury hotels: determinants and measurements", EuroMed Journal of Business, Vol. 8 No. 2, pp. 134-153. https://doi.org/10.1108/EMJB-06-2013-0031