Impact of Customer Relationship Management on Customer Satisfaction: The Case of a Budget Hotel Chain

Abstract

Customer Relationship Management (CRM) can bring many benefits to the hotel business, though there are some associated challenges. Such challenges often bring a significant risk of failure, and these risks become more significant in budget hotels. This study considers the changes that have emerged in the last decade as regards customer expectations when staying in budget hotels. We use qualitative approaches to investigate the overlaps between customer expectations and managers’ perceptions of CRM applications. The findings reveal that regardless of all changes, value for money and core products continue to play a critical role in customers’ overall satisfaction with budget hotels.

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