EFFECTS OF MANAGEMENT CONFLICTS BETWEEN CUSTOMER RELATIONSHIP MANAGEMENT AND HOTEL REVENUE MANAGEMENT

Abstract

Managers in the hospitality sector have adopted the principles of “Revenue Management” (RevM) and “Customer Relationship Management” (CRM) while in reality, various organizations consider it as impossible to completely manage both. This paper evaluates the compatibility between these management practices, and describes the potential conflicts of management that arise from the perspectives of both revenue and account managers. Results from an multinational hospitality organization show many sources of future disagreements in management including: timescales of management, objectives of management, expected market properties, success metrics and management foci among Revenue and client association organisation leading to differences in the expectations of managers and their strategies to achieving their specific targets. These distinctions have not been studied comprehensively in earlier research, yet they are vital for the integration of RevM and CRM. Revenue management research in the hospitality sector not only tried to harmonize the two approaches by defining regions of client tension, but also proposed a range of practical communication techniques to minimize these conflicts.