Relationship or revenue: Potential management conflicts between customer relationship management and hotel revenue management [Summary]

Abstract

It has been considered a dilemma for a long time to choose between building a good customer relationships and immediate revenue earning. Through the study, however, it was possible to figure out the potential conflict between RevM and CRM and it leads to a few managerial implications. First, hotels could achieve additional revenue after the implementation of new revenue management practices. However, this won’t last that long if the process focuses on the sales figure itself and ignores the value of customer relationships. Secondly, hoteliers should be aware of the potential conflicts in the practice of two departments for optimizing the hotel’s sustainable financial return. Moreover, senior management should know those internal tensions that diverse performance measurements cause between the property and the sales and marketing department. They need to review employees’ responsibilities and performance targets whether individual career goals harm the overall goal of the company due to conflicting interests.