Why is a knowledge of customer base important for firms in the travel and tourism sector?
Answer:
The same as any other business ...for future advertising.
because you work a lot with customers and they rely on you.
for market targetting
As Mahatma Gandhi said:
"A customer is the most important visitor on our premises. he is not dependent on us. We are dependent on him. He is not an interruption in our work. He is the purpose of it. He is not an outsider in our business. He is part of it. We are not doing him a favor by serving him. He is doing us a favor by giving us an opportunity to do so."
This is even more true in the travel and tourism sector where service is a huge component of what the customer is paying for, so the better you know the customer, the more likely you are to give him/her the type of service he/she wants, and the more likely he/she will become a return customer.
As competition in the travel and tourism sector intensifies, it becomes even more important to retain your customers. Servicce is critical. For example, some hotels go as far as to train their staff to converse in the foreign language of the majority of their clients to make the clients feel more at home, others do simpler stuff like keep track of the visits so some customer preferences are granted without asking such as smoking/non=smoking rooms, double/twin beds... Some hotels upgrade regular visitors... All this makes the customer more likely to stay there again.
Also, as with any other businesses, if you want to engage in database marketing, in order to target your customers, the more you know about them, the more likely your model is to work and bring you profits. For example, if you run a travel agency and you have had 10000 customers over the last 2 years and you are launching a package which takes customers on a trek through Nepal, you shouldn't send glossy mail to all 10000. May be 1000 might be interested, and 200 likely to go. If you have enough details about the customers, a good analyst could pick the say 500 customers and a large portion of the 200 should be in the list. Instead of 10000 mailers, you save by sending only 500 without sacrificing results.
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