When travel agents jump on the Customer Relationship bandwagon you know CRM has reached the mainstream.

The cover story in the Jan 14th issue of Travel Weekly is titled, “Closing the Loyalty Gap.”  Some of the more interesting quotes from the article include:

  • In the leisure category, a typical agency probably sees repeat business of around 25%
  • Lalia Rach, dean of NYU Tisch Center for Hospitality and Tourism said , “To date there has been an absence of recognition of the importance of client retention.  The focus has been new clients, new clients, new clients.”
  • Increasingly, agencies appear to be waking up to the benefits of improving client loyalty, starting with the understanding that far more business typically comes from repeat clients than from new ones.

As a small luxury hotel you no doubt have known the importance of building loyal customer relationships for years now.  Your percentage of repeat guests should be significantly higher than the typical travel agent.

Hopefully you are now on to the next level of customer loyalty – creating brand advocates to maximize word-of-mouth advertising.

If you have any questions on the subject, drop me a line.

AUTHOR: harshadmethrath
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  • Hi Madigan:

    Hopefully we are beginning to make CRM a household word in the travel agent arena. In September, a new free web based travel CRM and backoffice system was launched called “OpenTravel CRM”. It is has many features including integrated e-marketing, opportunity tracking and management, profile management and custom itinerary making, blogging, online presence, Facebook integration and more.

    You are absolutely correct in your observations, which we have enjoyed reading. A fully integrated, pro-active engagement of your networking community is vital. Advocates arise from communication and interaction that has a perceived value and/or benefit. In the case existing or past customers, they are significantly under-valued by businesses. These are folks that have already made a decision to buy once before. The cost to maintain a relationship and obtain follow-on sales is magnitudes cheaper than the investment cost in obtaining a new customer. Too many businesses have focused on growth of new customer while churning out and ignoring existing customers. The net result is actually a higher cost of acquisition with a revenue replacement phenomenon.

    In order to grow your business, you must do both effectively – leverage your existing customer base and also grow new customers. Most importantly, the two segments are not distinct and separate activities. Leveraging your existing customer base by making them advocates is a tremendously powerful way to attract new customers.

    We believe that part of any successful approach must include maintaining a social community presence and building your communications commerce. These tools to enable cross leveraging through a community context.

    Check it out. The beta version was launched in mid-September and thousands have signed up.

    http://www.opentravelcrm.com

    Joe Mazzarella
    President & CEO
    OpenTravel CRM

    From Madigan – OpenTravelCRM is a product of Travel Sciences founded by old friend Michael Stone.

    January 28, 2008
  • Hi Madigan:

    Hopefully we are beginning to make CRM a household word in the travel agent arena. In September, a new free web based travel CRM and backoffice system was launched called “OpenTravel CRM”. It is has many features including integrated e-marketing, opportunity tracking and management, profile management and custom itinerary making, blogging, online presence, Facebook integration and more.

    You are absolutely correct in your observations, which we have enjoyed reading. A fully integrated, pro-active engagement of your networking community is vital. Advocates arise from communication and interaction that has a perceived value and/or benefit. In the case existing or past customers, they are significantly under-valued by businesses. These are folks that have already made a decision to buy once before. The cost to maintain a relationship and obtain follow-on sales is magnitudes cheaper than the investment cost in obtaining a new customer. Too many businesses have focused on growth of new customer while churning out and ignoring existing customers. The net result is actually a higher cost of acquisition with a revenue replacement phenomenon.

    In order to grow your business, you must do both effectively – leverage your existing customer base and also grow new customers. Most importantly, the two segments are not distinct and separate activities. Leveraging your existing customer base by making them advocates is a tremendously powerful way to attract new customers.

    We believe that part of any successful approach must include maintaining a social community presence and building your communications commerce. These tools to enable cross leveraging through a community context.

    Check it out. The beta version was launched in mid-September and thousands have signed up.

    http://www.opentravelcrm.com

    Joe Mazzarella
    President & CEO
    OpenTravel CRM

    From Madigan – OpenTravelCRM is a product of Travel Sciences founded by old friend Michael Stone.

    January 28, 2008
  • Hi Madigan:

    Hopefully we are beginning to make CRM a household word in the travel agent arena. In September, a new free web based travel CRM and backoffice system was launched called “OpenTravel CRM”. It is has many features including integrated e-marketing, opportunity tracking and management, profile management and custom itinerary making, blogging, online presence, Facebook integration and more.

    You are absolutely correct in your observations, which we have enjoyed reading. A fully integrated, pro-active engagement of your networking community is vital. Advocates arise from communication and interaction that has a perceived value and/or benefit. In the case existing or past customers, they are significantly under-valued by businesses. These are folks that have already made a decision to buy once before. The cost to maintain a relationship and obtain follow-on sales is magnitudes cheaper than the investment cost in obtaining a new customer. Too many businesses have focused on growth of new customer while churning out and ignoring existing customers. The net result is actually a higher cost of acquisition with a revenue replacement phenomenon.

    In order to grow your business, you must do both effectively – leverage your existing customer base and also grow new customers. Most importantly, the two segments are not distinct and separate activities. Leveraging your existing customer base by making them advocates is a tremendously powerful way to attract new customers.

    We believe that part of any successful approach must include maintaining a social community presence and building your communications commerce. These tools to enable cross leveraging through a community context.

    Check it out. The beta version was launched in mid-September and thousands have signed up.

    http://www.opentravelcrm.com

    Joe Mazzarella
    President & CEO
    OpenTravel CRM

    From Madigan – OpenTravelCRM is a product of Travel Sciences founded by old friend Michael Stone.

    January 28, 2008
  • Hi Madigan:

    Hopefully we are beginning to make CRM a household word in the travel agent arena. In September, a new free web based travel CRM and backoffice system was launched called “OpenTravel CRM”. It is has many features including integrated e-marketing, opportunity tracking and management, profile management and custom itinerary making, blogging, online presence, Facebook integration and more.

    You are absolutely correct in your observations, which we have enjoyed reading. A fully integrated, pro-active engagement of your networking community is vital. Advocates arise from communication and interaction that has a perceived value and/or benefit. In the case existing or past customers, they are significantly under-valued by businesses. These are folks that have already made a decision to buy once before. The cost to maintain a relationship and obtain follow-on sales is magnitudes cheaper than the investment cost in obtaining a new customer. Too many businesses have focused on growth of new customer while churning out and ignoring existing customers. The net result is actually a higher cost of acquisition with a revenue replacement phenomenon.

    In order to grow your business, you must do both effectively – leverage your existing customer base and also grow new customers. Most importantly, the two segments are not distinct and separate activities. Leveraging your existing customer base by making them advocates is a tremendously powerful way to attract new customers.

    We believe that part of any successful approach must include maintaining a social community presence and building your communications commerce. These tools to enable cross leveraging through a community context.

    Check it out. The beta version was launched in mid-September and thousands have signed up.

    http://www.opentravelcrm.com

    Joe Mazzarella
    President & CEO
    OpenTravel CRM

    From Madigan – OpenTravelCRM is a product of Travel Sciences founded by old friend Michael Stone.

    January 28, 2008

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