An analysis of customer relationship management practices of some selected hotels in the Kumasi Metropolis

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Customer Relationship Management (CRM) practices are a business strategy designed to reduce costs and increase profitability by solidifying customer loyalty. It brings together all data about a client in hotels via software to give a holistic view of a customer. With intense competition among hotels in Ghana, this study sought to find out if CRM was practised in the selected hotels. It was to solve the problem of inadequate service delivery quality in hotels which were not helping customers’ expectations to be met. The objectives of the study was to identify hotels that practise CRM, the challenges the hotels face in implementing CRM and also to find out if there is a relationship between CRM practices and customer loyalty. With a sample size of thirty (30) hotels picked at random with their gradings ranging from One-star to Four-star and the people interviewed being management staff, the study used questionnaires for data collection and the Statistical Package for Social Sciences (SPSS) for analysis of the data. The study revealed that the hotel industry is saddled with the problem of lack of qualified personnel, lack of management commitment and experienced personnel to manage the hotels effectively whereas Customer Relationship Management is about the improvement of services. It is recommended that even though the hotels have heard of CRM, there should be some intense awareness program on the benefits of CRM. The hotels need to invest in IT infrastructure which is the main tool for successful CRM practice. The Hoteliers Association must ensure that key personnel in the business are trained in hotel management in order to solve the problem of non-qualified personnel.
A Thesis submitted to the Institute of Distance Learning, Kwame Nkrumah University of Science and Technology in partial fulfillment of the requirements for the degree of Commonwealth Executive Masters in Business Administration,