Customer Relationship Management In Budget Hotels Based On Customer Value

With the acceleration of global economic integration process, China’s tourism industry develop rapidly, and hotel industry booming as one of its pillar industries. Budget hotel is a new format in China’s hotel industry with characteristics of wide target market, affordable and easy to run. Lots of investors are attracted. As a result, The market share of the budget hotels is increasing, and the market competition increasingly intensifying. Creating and delivering customer value is the key factor for "customer-centric" hotel industry, which can build and maintain profitable customer relationship and win the competition. We conducted a survey in this paper, and bulit construct equation model approach to several budget hotels in Ningbo. Meanwhile, we took a comprehensive study of the relationship between customer value, customer satisfaction, customer loyalty and CRM. According to the result of empirical research, we proposed effective countermeasures of CRM.(1) Four dimensions of customer value impact directly on customer satisfaction,among them, the most significant impact is the function value (path coefficient is0.53),the impact of the social value is weak relatively. The cost value negative influence customer satisfaction (path coefficient is-0.23).Customer value influences customer loyalty directly, but also affects it indirectly. Among the direct impact, cost value correlated with customer loyalty negatively and most significantly (path coefficient is-0.28), followed by emotional value. Among the indirect impact, functional value influence the customer loyalty the most significantly(path coefficient value is0.24),the impact of social value is relatively weak.Thus, customer value is most basic and primitive driver of customer loyalty, and customer loyalty can be affected by customer satisfaction.Functional value impact on budget hotels CRM marketing performance positively and directly, as to the cost value, the effect is negative. Emotional and social values can not directly influence the marketing performance, the original assumption does not hold, however, the four dimensions of customer value affect the market performance indirectly through customer satisfaction and loyalty, the influence of functional value is most significant (path coefficient value is0.32). There is no correlation between the four dimensions and budget hotels CRM Financial Performance, the null hypothesis was overthrown, and likewise, they have an indirect impact on the financial performance by influencing customer satisfaction and customer loyalty, he impact of functional value is the most significant (path coefficient value is0.35). In addition, customer satisfaction and customer loyalty affect market performance and financial performance directly and positively, and the impact of the latter is more significant.Overall, Functional value influences budget hotels CRM performance the most significantly, and cost value comes second.Focus on functional and cost value, budget hotels will improve performance effectively. Among all the factors of marketing performance, the influence of customer satisfaction comes first (total effect is0.59),therefore, hotels aiming at buliding brand image should care for customer satisfaction. Among all the factors of financial performance, the influence of customer loyalty comes first (total effect is0.71), so hotels aiming at short-term profit should maximize create customer loyalty.In order to profit better, budget hotels should start from customer value, and focus on the core elements of them. Only by creating better product and continuing price advantage, can budget hotels improve performance rapidly. Paying attention to emotional appeal of customers, budget hotels will get maximum management performance.