Customer Relationship Management or CRM is used to describe the strategies and the technologies employed in the management and analysis of interactions with past, present, and prospective travelers in their life cycle. Unlike generic business CRM systems that focus on sales leads, a travel CRM system (or simply travel CRM) is designed to aggregate booking data, preferences, and behavioral history to transform anonymous passengers into recognized guests to drive loyalty and maximize the lifetime value of a guest.
The basic issue of travel is data fragmentation. A traveler can, for example, make a reservation for a flight through an OTA while booking a hotel and a spa treatment in person. Without a CRM (Customer Relationship Management), these are viewed as three separate transactions.
Robust travel CRM is a central data repository (CDR). It extracts information from the PMS (Property Management System), GDS (Global Distribution System), and IBE (Booking Engine) to get a “Single View of the Customer.”
While the standard Customer Relationship Management focuses on the sales funnel, travel CRMs focus on the trip lifecycle. They use automation to trigger communications on the basis of the specific dates of the journey:
Effective travel marketing is based on segmentation. A travel CRM is a system used to filter the database in order to make it relevant.
Example: A hotel is looking to fill rooms on a Tuesday. The CRM filters for business travelers that live within a 2-hour drive and sends a targeted offer.
This helps to avoid marketing fatigue. A family resort should not send Honeymoon Packages to a segment of its database tagged Family with Toddlers.
The PMS is transactional and operational (checking in people, printing invoices). The CRM (Customer Relationship Management) is relational and marketing in nature (remembering who the person is and getting them to come back).
It is a common metric that is used in Travel CRM to score customers.
High RFM score = VIP Guest.
Yes. A CRM helps manage consent. It tracks exactly when a user opted in to receive emails and allows for the centralized deletion of guest data (Right to be Forgotten) if requested, which ensures that it is legally compliant.
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