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Impact of CRM Implementation on Hotel Efficiency: Evidence from the Slovenian Hotel Sector

Author

Listed:
  • Alexander Josiassen

    (Department of Marketing, Copenhagen Business School, Solbjerg Plads 3C, 3rd Floor, DK-2000 Frederiksberg C, Denmark)

  • A. George Assaf

    (Isenberg School of Management, University of Massachusetts Amherst, 121 Presidents Drive, Amherst, MA 01003, USA)

  • Ljubica Knežević

    (Faculty of Economics, University of Ljubljana, Slovenia)

Abstract

Managers know that it is easier to get business from existing customers than to attract entirely new customers. Many firms therefore aim to form deeper and stronger relationships with their customers in order to increase loyalty and repeat purchases. A central concept in this regard is customer relationship management (CRM). However, while previous research shows there are benefits attached to forging closer ties with customers, there are also some costs involved. Yet, very little research has investigated the central question of whether CRM endeavours are an efficient use of a firm's resources. In this paper, the authors address this gap and investigate the effect of CRM implementation on the cost and technical efficiency of hotels. They find support for the hypothesis that while CRM increases technical efficiency, it decreases cost efficiency. The authors discuss the managerial implications of their findings and provide directions for future research.

Suggested Citation

  • Alexander Josiassen & A. George Assaf & Ljubica Knežević, 2012. "Impact of CRM Implementation on Hotel Efficiency: Evidence from the Slovenian Hotel Sector," Tourism Economics, , vol. 18(3), pages 607-616, June.
    • Handle: RePEc:sae:toueco:v:18:y:2012:i:3:p:607-616
    DOI: 10.5367/te.2012.0125
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