Customer Relationship Management (CRM) has become a cornerstone of strategic customer engagement and revenue optimization in the tourism sector. This study explores the effectiveness of CRM strategies in Maharashtra’s tourism industry, analyzing their impact on customer satisfaction, retention, and financial performance. A quantitative research approach was employed, collecting data from 600 tourism professionals across four major districts—Mumbai, Pune, Aurangabad, and Nashik. Statistical analyses, including correlation matrices, multiple regression models, and factor analysis, reveal that CRM adoption significantly influences operational efficiency (r = 0.991) and customer retention (r = 0.997). AI-driven automation (r = 0.858) and marketing automation (r = 0.972) enhance engagement, while data security (r = -0.075) and customer engagement (r = -0.229) show weaker direct correlations with revenue growth. Factor analysis highlights four key CRM dimensions: Customer-Centric CRM, Loyalty-Driven CRM, Revenue-Centric CRM, and AI-Integrated CRM, each contributing uniquely to tourism business sustainability. The findings underscore the necessity for a balanced, AI-driven CRM strategy integrating personalization, retention mechanisms, and data-driven decision-making to optimize customer experiences and maximize financial outcomes in Maharashtra’s tourism sector.