Membership Privileges in Hotel Industry: a Framework Proposal on the Relationship Among Customer Relationship Management, Members Satisfaction and Hotel Retention
In recent years, the membership system has played an increasingly important role in the hotel industry, especially how the industry adopts customer satisfaction orientation as the business objective.In the hotel industry, consumers are their primary source of business profits. Therefore, hotel owners should reinforce their activities in CRM (Customer Relationship Management).The hotel industry is in a quite competitive situation. With CRM, hotels would be able to get a grasp of the market trends, as well as the demands of staying guests. The system of membership is not only bringing profits to the hotel owners but also saving costs.This allows them to keep a sustainable competitive advantage in the rapid-changing business environment. However, many hotel owners in the industry have started to develop a membership privilege system to reinforce the relationship maintenance between the hotel and its members.Therefore, CRM strategies would affect customer views in the privilege program of the hotel.Currently, CRM strategies are widely adopted by most hotel owners, withto increase the relationship strength between customers and corporations, which wouldalso increase business profits at the same time.Therefore, improving CRM activities and maintaining the strength with customers, are key objectives in the sustainable development of the corporation.In this research, Social Cognitive Theory will serve as the basis.It will discuss the effect of the CRM implemented by hotels to understand whether it affects room guest recognition in the fairness of the membership privilege system and the willingness to come back. Furthermore, it will examine the mediating effect of “perceived membershipjustice” and “perceived membershipvalue” in the membership privilege system of hotels.Finally, it will verify whether or not there is a significant positive influence that exists between membership confidence in membership privilege system and their satisfaction level;also, whether or not there is a strong relationshipbetween members and hotels because of the satisfactory level.
Keywords— Customer Relationship Management (CRM); Perceived Value; Perceived Justice; Membership Satisfactory; Relationship Strength