BUSINESS COMMENTARY

Waves of change: Customer relationship Management in Tourism

by Belinda Blessitt-
Vincent, MBA,Lecturer

Monday,  June 13, 2005

University College of the Cayman Islands

This article is part of the ‘Waves of Change’ series written by members of the Department of Business Studies at the University College Cayman Islands. www.ucci.edu.ky

The tourism industry is becoming more competitive worldwide. Regionally, traditional Caribbean destinations are facing competition at their ‘door step.’ Turks and Caicos Islands with their theme ‘Beautiful by Nature’ is becoming a popular destination, the Eastern Caribbean Islands have successfully delivered on their promise of ‘intrigue and mystique,’ and Cuba has returned as a force in tourism with 2,048,572 visitors in 2004. 

For the tourism industry in the Cayman Islands to remain competitive it must find a competitive advantage. Cayman needs a ‘unique value proposition’ on which it can build its future. To find that competitive advantage, organizations in the tourism industry should focus on the visitors by anticipating their needs and providing value and satisfaction. This means that each employee has to be trained to become a service ambassador, and make excellent service a way of life – at the core of their organization’s culture. 

When visitors arrive in the Cayman Islands, they want to deal with people who anticipate their needs and go out of their way to satisfy them. For tourism products to be successful, it is necessary for everyone – not just those in tourism – to put the visitor at the centre of their attention. For countries like Cayman, if this is done well, the rewards go to the economy as a whole.

This can be achieved quite simply. First, create a positive image for the customers by portraying the strengths of our products in the best possible light. The phrase ‘a first impression makes a lasting impression’ cannot be over-emphasized when delivering a service. From the moment a visitor arrives, their first impression of the destination is critical to creating a positive image.

Regardless of the image created by advertising and agents, being served well will become the lasting memory for visitors. 

Reputations can be consciously built. Each contact with the customer is a ‘moment of truth.’ Each moment contains the potential for enhancing – or undermining – a productive relationship. A genuine and enthusiastic welcome, efficient and friendly treatment by customs and immigration officers, a friendly reception by taxi drivers, warm greetings by the accommodation’s staff, and so on, are critical ‘moments of truth.’ 

Many have argued that creating a positive image should be the responsibility of the Ministry of Tourism, Department of Tourism and the Cayman Islands Tourism Association. This is an outdated notion. These institutions certainly are essential, but organizations that do not assume the responsibility for creating a positive image and credible reputation simply risk failure. 

As the emphasis on providing quality service increases, each organization – directly or indirectly linked to tourism – must become stakeholders in the tourism industry and play a part in building the image of the destination. 

We can all think of examples of the factors that influence our loyalty – or disloyalty – to a product or service. Those things to which we are loyal meet our needs and we continue to purchase them because of consistently positive experiences. The same is true of those visiting a vacation destination. Depending on the relationships developed, a visitor will decide whether, or not, to return. To develop a long-term relationship, everyone must be committed to making each visitor’s experience memorable and unique if you wish them to return. In Cayman, this is particularly important in converting cruise ship visitors into stay-over guests.

Reputations are built over time, and are slow to change. The task of all tourism stakeholders, then, is to ensure that every time an employee delivers a service it creates a positive impression of the destination.

Organizations within the industry will have to teach their employees how to create ‘customer delight’ – giving quality service, beyond customers’ expectations. This is what will lead to customer loyalty. Research has shown that smart companies aim to delight customers by promising only what they can deliver – then delivering more than they promise. 

For organizations to achieve this, they need to identify their customer values; their core benefits – what your customer is really buying. Once these are known, they need to design and brand the customers’ experience by equipping their employees to deliver this promise consistently.

This usually results in highly satisfied and loyal customers who are less price sensitive, who will talk to others about their positive experience, and lead to repeat, and spin-off business.

Developing a relationship with customers has three-fold benefits: customers will feel special, valued, and respected as individuals, organizations will increase their share of the tourist market, and Cayman will grow. 

Researchers have found that more than fifty percent of the personal impact we make on others is not dependent on what we say, but on the way in which things are said, face-to-face interactions, and personal appearance. For employees to become service ambassadors, organizations must review the impact their employees have on the customers and train them to enhance customer value. 

Reliability, credibility, responsiveness, and empathy are some of the characteristics employees will need to have as they wish to develop a relationship with their customer. 

This is what the Cayman Islands needs in its tourism industry – more visitors talking about their positive experiences, and capturing customer lifetime value. This is the heart of Customer Relationship Management.

For the Cayman Islands to continue to have a competitive advantage, organizations within the industry need to manage and maximize their customers by providing value and satisfaction. Only then can they claim a profitable relationship with their customers and continue to build Cayman’s tourism potential.

The author welcomes comments, at bblessitt@ucci.edu.ky.

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