Is Multi Channel Strategy beneficial for the hotel industry?

Yes Multi channel strategy is beneficial for the hotel industry. Channels over the years always had the power to transform markets and even economies. Especially with new and improved technology hotels can reach more people through new channels and new groups of people. Channels also provide consumers access to hotels and they can significantly affect the revenues and cost structure of an organisation. (Peelen & Beltman, 2013)

Even though we live in a time where technology is everything and new inventions are around the corner every week, not all the channels have to be online because of this. Experts confirmed once that tv and print advertising is not as useful to use for promotion. Hwever in 2012 experts proved that both traditional and new advertising methods are very popular among consumers. Marketing and advertising experts looked at what the most effective marketing strategy would be and which would provide the most value for a company, out of this research they concluded that Multi channelled strategy and build brand awareness would be the most beneficial to use for promotion and make a name of your company. (Freed, 2013)

According to a study Nothofer and Remy using both traditional and electronic channels is very popular among the hotel industry. Besides this they have their own websites and are using online tour operators and travel agencies. However there could be risks in using a Multi channel strategy. When the Multi channel system is poorly coordinated the use of it would not be beneficial for the company. Customers do not like to read different information through different channels. All channels should be linked to each other and provide the same information. Using marketing specialist who are specialised in multi channel strategy can cover this. (Nothofer & Remy, n.d.)

Multi channel stragey is also directly linked to customer experience. Customer experience is a very important aspect for a hotel because if a hotel improves their customer experience is the same as improving their revenue and profit potential. Resolving a complaint of a customer can prevent many extra costs. This is because the question is dealed with immediately, this way customers feel like they received good service. A good use of different channels can create the same foals. Consumers can ask their questions through a website. If the hotel is being smart with the multi channel strategy it has an application where it allows the contact centre to see which page the questions originates from. Through this they can get insight into the click stream of the web visitors and help them through the process. The customers will feel special and will believe that the organisation did everything they could to provide good service, however the hotel knows it is for both sides in the best interest. (Peelen & Beltman, 2013)

 

Bibliography 

Freed, B. &. (2013, March 7). HNN – Multichannel marketing strategies prove best. Retrieved October 13, 2016, from http://www.hotelnewsnow.com/Articles/18425/Multichannel-marketing-strategies-prove-best
Nothofer, K., & Remy, D. (n.d.). THE ROLE OF MULTI-CHANNEL-MANAGEMENT IN THE HOSPITALITY INDUSTRY. Retrieved October 5, 2016, from http://www.shannoncollege.com/wp-content/uploads/2009/12/THRIC-Paper-Nothofer-N-Remy-D.-Les-Roches.pdf

Peelen, E., & Beltman, R. (2013). Customer Relationship Management. In E. Peelen, & R. Beltman, Customer Relationship Management. Pearson Education Limited.

Is retention analysis useful for the hotel industry.

According to Peelen and Beltman retention analysis is “holding on to customers. If a company becomes aware in time of those customers who demonstrate an increased likelihood of ending the relationship, then it can take action to prevent this”. So having a retention analysis for a hotel, it can prevent loyal customer leaving, which is very beneficial for the hotel. For the hotel industry a current guest turns into a former guest at the moment the guest decides not to come to the hotel anymore. So if a loyal guest of a hotel comes to a certain hotel every year with easter and one year he or she decides not to, the relationship between hotel and guest is over. (Peelen & Beltman, 2013)

Concluding what above is mentioned, retention analysis is a very beneficial analysis for a hotel to have to keep up relationships with the guests. As an example we can look at a research of retention of the hotel industry in Malaysia.

In this research is also mentioned that customer retention is connected to customer satisfaction and customer service. When a hotel delivers good service, this mostly leads to higher satisfaction, which leads to customer retention and customer retention can lead to an increase in profits for the hotel, which is something every company wants to achieve. (Syaqirah & Faizurrahman, 2014)

Nowadays customers do not always want to give out much personal information. However this is very crucial for the retention analysis, therefor it is necessary to start collecting data from the beginning when a guest comes to the hotel. If the point has reached where the relationship is maybe failing, a retention analysis can be done more easily. For a retention analysis in the hotel industry information such as, country, hobbies, lifestyle and job should be taken into account. However even though customer do not also want to give out all the personal information everything helps and when doing a data collection over a longer period of time, enough data can be collected to have a reliable retention analysis. Therefor hotels also do not need to start to late with analysing the retention of the guests.(Peelen & Beltman, 2013)

The hotel industry is very competitive and hotel come up every day with new marketing strategies. Therefor retention analysis should be one of the main focus for managers in the hotel industry. As Syaqirah and Faizurrahman mentioned in their research “It’s easier and cheaper to keep a customer than find a new one”. (Syaqirah & Faizurrahman, 2014)

 

Bibliography

Peelen, E., & Beltman, R. (2013). Customer Relationship Management. In E. Peelen, & R. Beltman, Customer Relationship Management. Pearson Education Limited.

Syaqirah, Z. N., & Faizurrahman, Z. P. (2014). Managing Customer Retention of Hotel Industry in Malaysia. Procedia-Social and Behavioral Sciences, 130, 379-389.

The future of customer service

Nowadays customer want more and more because of all the new technology coming. They expect more from hotels than 10 years ago. A simple “please and “thank you” or service with a smile is not enough anymore. It needs to be faster and better, otherwise people think their time is wasted. (New Times, n.d.)

Therefor hotels need to keep up with the newest technology that will improve their customer service in the hotel industry. Not al new technology will be an improvement for the hotel industry because not all technology can be connected with the hotel industry. However such as social media and new communication channels coming up is very important for the hotel industry to communicate with their customers. This can and is already a very big part in the customer service. Customers can leave reviews on the website, Tripadvisor, Facebook etc. Nowadays it is also possible to talk with a help service directly online. (Leggett, 2013)

Especially the self-service channels, like help service chats and email are increasing rapidly in there usage rate. Consumers want to have a easy access to information and nowadays what is easier than using the internet? Virtual agents are also a very big upcoming and could be very important for the hotel industry, because they can provide consumers in a easy and fast way their information that they need about the hotel and this can improve the customer engagement of the hotel industry. Also new things hotels are starting to use and should be using more in the future are SMS. Consumers use their phone for everything nowadays, it is their most important device, and so it is an easy connection between hotel and customer. So a really important way of choosing which channels to use in the future is looking at the consumer usage. (Leggett, 2013)

However this way of customer service through online communication channels can also be a disadvantage for hotels. Customers can ask and put all opinions online about the hotel. Not all of these questions or opinions have to be positive, the negative feedback can be a bad promotion for the hotel, however it does create a quick option for the hotel to respond on the feedback and improve it in the hotel. (Leggett, 2013)

Due to the fact that consumers nowadays expect more and more from the hotel industry, it is very important that hotels are going to focus on personalizing their customer service and look at what are the usage scenarios for their consumers, so the online communication channel can be improved and focus on new options. This can improve the customer engagement of a hotel in certain aspect very well. (Leggett, 2013)

 

Bibliography

(n.d.). Why customer service in hospitality industry is everything. Retrieved September 25, 2016, from http://www.newtimes.co.rw/section/article/2014-12-12/183956/

Leggett, K. ( February 1, 2013) Navigate the future of customer service. Retrieved on 22 September, 2016, from http://www.vocalcom.com/images/Resources/files/Navigate_The_Future_Of_Cu.pdf.

The role of Social media in creating customer engagement.

Through social media are social networks easier to reach nowadays and is it for salespeople within the hotel industry much easier to reach a certain social network. It is the job of salesmen within a hotel chain to create a relationship between the hotel and the customer. The most important role of salesmen is to connect a potential guest to their hotel they are working for; nowadays this is mostly done through social media. Therefor is social media a very important aspect for reaching out to a social network and creating a customer engagement between a social network and a hotel chain. (Beltman & Peelen, 2013) In this generation Social media is one of the biggest upcoming frontier to create customer engagement and interaction. This can be done by using Facebook, Youtube, Twitter, Forums and the hotel their own website and using their own forums. For hotels it is necessary nowadays to have a Social media customer engagement strategy to keep up with the competitors. (Social Media Customer Engagement, n.d.)

Nowadays it is very easy to reach, as a salesmen within the hotel industry, millions of people through social media. This can be done already by creating a Facebook page for a certain hotel. The Facebook page will receive likes and this will be passed through to other friends, collegeas etcetera of the people who liked the Facebook page. Social media is also a very important factor to create loyalty among the customers and so create a better relationship by offering special deals through Facebook for example. (Social media & the Hospitality industry, n.d.)

For the hotel industry it is very important to keep up with the popularity of social media because of the fact that it can reach a lot of social networks/customers. It is one of the biggest factors to create customer engagement because of the generation that is coming up and who is all involved in the newest technology and Social media trends. Hotels can use the Social media on two different levels. Hotels can use their external social media, such as Facebook, Twitter etc, or they can use their own customer community through their own website. Especially using their own customer community services is very useful because it is also possible for them to analyse their market through their own community, which can help create more customer engagement. (Social Media Customer Engagement, n.d.)

 

Bibliography

Beltman, R., & Peelen, E. (2013) Customer Relationship Management(2nd ed.). Edinburgh, United Kingdom: Pearson Education Limited.

Frust & Sullivan (n.d.) Social Meida Customer Engagement. Retrieved on 18 September 2016, from
http://ww2.frost.com/files/8714/2366/6305/Social_Media_Customer_Engagement.pdf

Social Media & the Hospitality Industry (n.d.). Retrieved September 18, 2016, from http://smallbusiness.chron.com/social-media-hospitality-industry-37599.html