Rezidor SAS: CRM in the hospitality industry

Résumé du document

It's a key issue for Rezidor SAS to know who its customers are and what are their needs and expectations in order to align the best strategy in order to target them and to make them more loyal. Moreover, it will allow determining who customers are the most profitable. The CRM vision of the company is to “maximise value for owners by securing customer engagement through benefit, reward and recognition in order to fully exploit opportunities to up-sell, cross-sell, retain and increase share of wallet extracted from Rezidor SAS CRM Business Plan.” Rezidor SAS has a multi-brand portfolio: its hotels are divided into four market-specific brands: from high-class comfort to high-class luxury hotels. It allows the company to attract more customers and also to respond better to the needs and expectations of the customers (each hotel target a specific kind of customers). Then, Rezidor emphasizes on the customers relationship with a devoted department and tools for customers retention: partnerships (Airline, car rental, credit card companies…), Gold Points. To be efficient in its loyalty programme, the company has developed an IT platform, database management, reporting, card fulfilment and member centre servicing.

Extraits

[...] Finally, the company is one of the fastest-growing in the hotel industry: it operates in 47 countries with 245 hotels million guests per year and a benefit of billion of sales per annum. The membership grows between 3,000 and 5,000 members per month. Weaknesses: Rezidor has to deal with non-active members who add any value to the company. Moreover, the redemption rate is low: only 38% of all the points were deemed by members. The reluctance from members to redeem their points represents a heavy financial liability for the programme. Opportunities: With the globalisation, companies have factories or franchises abroad: there are more and more business travels. [...]

[...] Rezidor SAS: CRM in the Hospitality Industry I. CRM Value Chain Analysis: 1. Customer portfolio analysis 2. Customer intimacy 3. Network development 4. Value proposition development 5. Manage customer lifecycle 6. Leadership II. Recommandations : 1. [...]

[...] Moreover, Rezidor operates in Europe, the Middle East and Africa. The group can increase the number of hotel in the countries in which they are already implemented. And also, it can invest in new market and penetrate for example in US, Canada, Russia or China. The company could make market analysis in order to determine in which countries the business people travel the most and also with travel agencies to see which countries people travel the most for holiday or when they get married. [...]

[...] The enrolments are mainly made at the hotel level and online through the hotels websites. Other sources of enrolments are partner web promotions, search engine reference links (Google for example) and partner's database (credit card or airline programme members for instance). Members receive their permanent card immediately at the hotel reception desk at the time of enrolment and are added directly into TLS (the loyalty IT platform that powers the programme) Data mining An external agency looks after the maintenance of the loyalty IT engine, data management, reporting, card fulfilment, member centre servicing and communications with members (email and direct mail activities). [...]

[...] It will allow filling rooms that would otherwise have been empty. The company can also make more promotion during this period: price discount, breakfast for free, free ride to the hotel Redeem the points In order to drive members to redeem their points, it's important first that the customers are aware of the number of points they have obtained and how they can benefit of them. So the company can make a newsletter with all the advantage and the partnerships of the card. [...]