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International CRM Survey - 2002
Key Findings
The full version of the report in Adobe PDF format can be downloaded by clicking here. The key findings are set out below:
The
travel industry believes that CRM is about targeted selling |
95% of respondents agree or strongly agree that CRM is about targeted selling. The respondents perceive the key benefits of CRM to be increased sales and improved customer service. |
CRM
does not reduce marketing costs |
There was uncertainty about whether introducing CRM would reduce marketing costs. There was a strong belief that CRM would not lead to reduced staffing levels or reduced commissions to agents. As one tour operator remarked, “CRM enables businesses to budget for more efficient, not less, marketing expenditure.” |
The
travel industry does not understand CRM |
Over 90% of respondents believe that there is a poor understanding of CRM within the travel industry. One of the implicit messages from the survey is that many respondents considered CRM to be no more than a new name for database marketing. “CRM is a confusing 'buzz' word that seems to hold little or no generic meaning to the industry as a whole,” stated one respondent. |
There
is a disparity between which sectors are believed to be embracing
CRM and those who are actually doing it. |
Asked for opinions about who is leading the way in CRM, respondents cited online travel and air, with tour operators and travel agents close to the bottom of the league. However, when respondents were asked whether their own organisations were using CRM, tour operators and travel agents ranked within the top three. |
The
three CRM winners |
British Airways, Expedia and Virgin Atlantic were the organisations perceived as having been particularly successful in their application of CRM. |
Smaller
organisations are best at CRM |
Respondents believed that smaller businesses are best at CRM. As one specialist operator selling under 10,000 pax commented, “As a small company, much of our CRM is through personal contact and personal knowledge of our customers.” |
Travel
agents not already practising CRM are least likely to do so |
40% of travel agents not practising CRM are not planning to do so in the future. This is greater than any other sub-sector, perhaps reinforcing the view of many respondents (83%) that there is an unwillingness within the travel industry to change long-term habits. |
Is
the customer forgotten once the purchase is made? |
Only 25% of respondents claim to apply CRM during service provision, such as on-board or in-resort. This concurs with the view from respondents that CRM is just about database marketing. As one hotelier stated: “I feel that although CRM is very important, the biggest test relies on being able to retain customers through satisfaction and experience of stay.” |
CRM
technology is important |
66% of respondents, particularly online travel organisations and ferry operators, believe that technology is imperative to the adoption of CRM, once again stressing the importance of a good customer database. Some respondents held a wider view of CRM. For example, one specialist tour operator said, “CRM seems to be an attitude towards the relationship between supplier and customer rather than an IT solution. Technology can indeed assist, but only with a clear strategic vision of ideal customer communication suited to the particular business.” |
Why
no customer marketing database? |
Those respondents that do not have a customer marketing database cited a number of reasons, the strongest being that it would require too much administration. For example, one tour operator mentioned, “Lack of data from our reservation system deters us,” and one ferry company remarked, “Current customer information is difficult to access without more development.” |
High
investment and high returns |
Travel organisations believe that they are investing heavily in CRM technology but they are gaining an even higher return on investment. 64% of respondents said their investment had been large or very large. A higher percentage, 87%, said their return on investment had been large or very large. |
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| Genesys - The Travel Technology Consultancy
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