CRM organization, knowledge management and technology based CRM) have a positive and
significant impact on different perspectives of hotel performance. However, CRM technology failed to
show a significant relationship with learning and growth perspective of hotel performance.
Research limitations/implications – An emphasis has been placed on the direct relationship
between CRM dimensions and organization performance perspectives as well as, the study
concentrated only on 3 to 5 star hotels.
Practical implications – Meaningful implications are made that building an extensive and effective
CRM dimensions in hotel firms is crucial to face a high competition and improve performance in
Malaysia hotel sector.
Originality/value – The paper addresses CRM dimensions issues specifically for hotels in Malaysia.
Keywords CRM,CRMorganization, Customer orientation, Hotel performance,Knowledgemanagement,
Technology based CRM
Paper type Research paper
Introduction
The high level of competition has been one of the most difficult challenges in the hotel
industry. It is reflected in increasingly narrow margins and growing pressure to
provide more and better service, which has led to increasing costs, reduced customer

loyalty and consequently a decrease in occupancy rate (Sigala, 2005; Verdugo et al.,
2009; Wang and Wang, 2009; Yi-Wen and Edward, 2010).
In Malaysia, the hotel industry operates in a business environment that is
characterized by aggressive competition, making it vulnerable to international
competition (Awang et al., 2008; Business Monitor International, 2011). Moreover, the
occupancy rates of hotels in Malaysia have fluctuated between 2005 and 2012
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1757-9880.htm
Received 8 January 2013
Revised 14 April 2013
Accepted 19 June 2013
Journal of Hospitality and Tourism
Technology
Vol. 4 No. 3, 2013
pp. 228-247
q Emerald Group Publishing Limited
1757-9880
DOI 10.1108/JHTT-01-2013-0002
JHTT
4,3
228
(Malaysia Tourism, 2012). This also indicates that hotel performance in Malaysia needs
improvement. In other words, hotel managers need to employ a suitable strategy and
practice to improve their performance (Awang et al., 2008).
Therefore, to improve both customer satisfaction and enhance profitability, hotels
must nowadays focus on implementing a CRM strategy that aims to seek, gather and
store the right information, share it through the entire organization and then use it all
organizational levels to create a personalized; and unique customer experience (Olsen
and Connolly, 2000; Sigala, 2005; Sigala and Connolly, 2004; Wu and Li, 2011).
Obviously, CRM is considered to be among the best strategies and practices for hotels
to improve their performance and ultimately to ensure their long-term business
survival (Kasim and Minai, 2009; Sigala, 2005; Wu and Li, 2011). There is a strong need
to ensure differentiators and customer satisfaction over a long period.
However, despite the wide use of CRM in the tourism industry, there has been only
limited research and publications within the hospitality industry (Hermans et al., 2009;
Vogt, 2011; Wu and Lu, 2012). Yoo et al. (2011) analyzed marketing research from 2000
to 2009 – published in four hospitality journals (Cornell Hospitality Quarterly,
International Journal of Hospitality Management, Journal of Hospitality & Tourism
Research, and International Journal of Contemporary Hospitality Management). They
stated that, as consumers’ needs change and develop continuously, understanding
consumers’ behaviour has become a key success factor in a highly competitive
environment like the hospitality industry, and therefore; CRM will constantly receive
attention in future – research into hospitality marketing.