HOTEL BUSINESS REVIEW

April FOCUS: Cultivating Guest Satisfaction and Retention

 
April, 2014

Cultivating Guest Satisfaction and Retention

At the heart of every positive hotel experience is excellent customer service and yet there are a myriad of factors that contribute to a successful guest transaction. Some are tangible, obvious and easier-to-manage; others are more ineffable and elusive; but professional analysts and experts are going to great lengths to define and measure the elements that comprise a complete customer satisfaction package. Some of the categories include the following: Interpersonal (the customers' experience or human interaction with those who deliver the product or service); Financial (what the customer pays for the total experience); Informational (the availability and delivery of all the information a customer needs to function as a customer); Deliverable (anything the customer takes possession of, even temporarily); Procedural (all the functions that customers perform in their role as a customer); Environmental (the physical setting in which a customer experiences the delivery of the product or service); Aesthetic (any sensory experience that affects the perception of value - smell, flavor, visual appeal, temperature, sound levels, music, etc.). By aggregating these specific areas of operation and then analyzing them in a Customer Service Management System, the goal is to identify, capture and retain customers, and to provide a comprehensive view of the customer experience across the entire enterprise. The April issue of the Hotel Business Review will report on what some leading hotels are doing to cultivate guest satisfaction and retention in their operations.

This month's feature articles...

Tom Conran

A hotel is more than a building. It's a place. It should not be viewed as a commodity but rather a distinct buying proposition with meaningful benefits. By creating and delivering the right kinds of experiences it can accomplish that mission and be transformed from merely a physical space to a dynamic destination and, as a result, become the preferred spot for guests and travelers. The key to doing this is to develop an “experience framework” that details the proposed positioning of the hotel. Once established, the various contributors and property attributes should individually and collectively align and reinforce the experience proposed. READ MORE

Sapna Mehta Mangal

Counterfactual thinking is an overlooked cognitive notion that can adversely or favorably sway a hotel guest's satisfaction and retention level. Research has shown that counterfactual thinking can magnify customer satisfaction or customer dissatisfaction levels. Counterfactual thinking is a conduit to a range of human emotions like feeling of regret, anger, and relief. These emotions in the context of hotels can be linked to a guest's post purchase service evaluation. Examples of counterfactual thinking, alongside with guest satisfaction, and retention levels is also laid out. The write up helps to bridge these conceptual gaps, and other related issues to establish pivotal connections among these otherwise unrelated concepts. READ MORE

Dawn  Wells

Juggling the needs of guests, the personalities of associates and the demands of owners makes the daily life of a general manager anything but routine. As a multi-tasking GM, where do you start? Award-winning GM Dawn Wells, a seasoned professional in Charleston, South Carolina, shares her the insights and experiences working with associates that have resulted in top guest satisfaction scores at her hotel. She notes that showing the staff that you care is an important first step. Giving encouragement and recognition to her team coupled with building and maintaining relationships combined to make a difference with her associates, guests and ultimately the hotel's bottom line. READ MORE

Michael McCall

Customer loyalty programs have become a 6 billion dollar a year industry, and yet for many firms they remain an expensive customer benefit that is unconnected to the firms overall marketing strategy. In this brief report a number of mechanisms are proposed that may help firms to retain customers and increase overall satisfaction. READ MORE

Aaron Housman

Things will go wrong. It's inevitable in life and in business. And the sooner one gets to that conclusion the sooner he can get on with what comes next: preparing for the inevitable. In the hotel business that means following up with guests when the experience is substandard for any number of reasons, from guest service to property maintenance to the type of sheets on the bed. But there is a difference between just preparing for the inevitable and being well-prepared. Following up effectively with upset guests doesn't happen accidentally. It is planned, trained tracked and executed every day. It is a way of life for best-in-class operations. READ MORE

Rick Garlick

A primary objective of hotel operators is to keep their properties full of 'heads in beds' to capacity. While this goal is understandable, there is a risk hotels may market themselves indiscriminately and draw guests that are not a good match to their particular value proposition. While this meets a short term goal of wasting as little inventory as possible, there is a longer term risk that these guests may provide negative feedback about their stays, even though the hotel was being true to its own identity and branding. Indeed, the guest experience cannot be fairly evaluated apart from the expectations and preferences a person brings to the hotel from the time he or she books a room. Using a comparative restaurant example, a top steakhouse could never deliver a satisfying experience to a committed vegetarian, even if it provided the best cut of meat and the most attentive service. You have to like steak to positively evaluate the experience. READ MORE

Edward Reagoso

In the hustle and bustle of being accountable for so many facets of the hotel business, a hotel general manager needs to do one thing to truly secure his or her future in our industry, that being “insuring your team members truly care about your guests stay.” Sounds simple enough, right? This is not rocket science and I mean no disrespect to anyone struggling with operations or sales issues that can often seem surmountable. We all have these problems at one time or another. There are resolutions to every issue we have. The resolution to any problem is really just a matter of applying a specific strategy that will minimize the issue or frankly, make it go away completely. How many times have you walked into a situation with a guest that was surprised and upset that a tiny issue was never dealt with by a front desk agent, housekeeper, waiter, maintenance person, or even a manager that worked for you? I have too, the important thing is that we learn from this and move forward. One must insure everyone on our team grasps the importance of caring and the application of certain techniques can solidify a culture. Getting everyone on your team to care about your guests really is the key. READ MORE

Simon Hudson

According to the Oxford Dictionary an apostle is a “vigorous and pioneering advocate or supporter of a particular policy, idea, or cause”. For hotels, creating apostles should be a priority. They are the most loyal customers and they are so satisfied that they want to convert others to share their experiences. But how do hotels create apostles? This article looks at how some hotels around the world are delivering not only superior products and services, but through customization and personalization are creating guests who would not dream of staying anywhere else. READ MORE

Steven Ferry

Training at five-star resorts around the world offers a window seat into the more-refined sector of creativity and the achievements of those who are constantly striving to enthrall guests—guests with ever-rising expectations driven largely by access to an ever-expanding field promising and delivering equally exceptional experiences—and so move beyond merely satisfied guests into the heady domain of delighted guests who return again and again, friends in tow. The following anecdotal observations of effective initiatives being undertaken at the sumptuous end of hospitality are just that: neither official and sanctioned statements nor measured analyses with scientific conclusions; they do, however, have the advantage of a cross-chain perspective filtered through the prism of a butler's luxury service mindset—with the same basic stresses and initiatives being relevant, equally, to three- and four-star environments. READ MORE

Scott Hale

Who do you work for? It might not be who you think. In fact, who you think you work for might actually work for you. Hierarchies and the good 'ole chain of command aren't gone, they're just better understood. I'm not saying your Human Resources department is useless (mainly because the Legal Department won't let me) rather, I'm simply proposing that the Human Resources department is unnecessary. Just think about all the time we'd save writing job descriptions and interviewing unqualified candidates if every team member at your hotel knew what they had to do. And, they did it happily. If you work in, near or around a hospitality venue, this is your job description: Everyone works for the guest or someone who is and, yes, that means you. READ MORE

Larry  Mogelonsky

Maintaining excellent guest relations is a vital way to boost customer loyalty and brand recognition. But often this practice is watered down to niceties and small talk with guests, and nothing to really spark a genuine connection. To propel these relationships to the point where consumers will actually form an emotional bond with a hotel, the concept of guest mentorship can act as a precision tool. In essence, it involves taking on the role of teacher in order to satisfy guests' inner desires for meaningful life experiences. READ MORE

Leslie Johnson

In the hospitality industry, getting heads in beds is directly related to guest satisfaction - one of the foremost services focused on to generate revenue and high return rates. From the moment a guest inquires about a potential visit, whether online or by phone, staff need to be on point and equipped with the proper information to answer any and all incoming questions. Furthermore, the hotel industry cannot afford to lose engagement with guests while on property or following their visit because of the large competition and desire for brand and experience loyalty. READ MORE

Marco  Albarran

The hospitality industry welcomes and needs to be creative and innovative to continue its survival, more so with its talent. Hospitality and customer service are very important to seeing a brand experience become efficient in the market. We do need to do our best to improve and keep retention rates of employees as high as possible. If not we risk not hitting realistic figures in our financial statement, because if there is inconsistency, in the workplace and day to day operations, then the guest will ultimately have to pay the ultimate price. READ MORE

Michelle Wohl

With the high cost of working with OTAs and the growing challenge of acquiring your own new customers, hotels are quickly realizing that they need to focus their efforts on driving customer satisfaction and capturing guests' attention and loyalty at every stage of the travel process, from inspiration to post travel. By focusing on driving guest satisfaction, you improve your chances of having guests book directly with your hotel during the inspiration phase of travel or when they return to your city in the future. With the distraction of mobile devices, social networks and the always-connected nature of life today, engaging guests and forging strong connections isn't always easy. But to be successful, hoteliers need to figure out how they can drive the highest satisfaction possible, whether pre, during or post stay. This article covers some best practices for driving guest satisfaction at every stage of the travel cycle. READ MORE

Holly Stiel

Customer Service Magic: How Other Industries Make it Happen. For years, our industry has been providing the model for outstanding customer service. The proliferation of concierges is just one example. Let's turn the tables and take a page or two from companies in other industries! This article explores what two service superstars are doing to create unique customer experiences. Their commonalities include generating positive emotions in their customers, strategic use of technology and an insistence on authentically warm, friendly personal contact. Basic principles, when applied creatively, make satisfied customers into loving fans. For more of the latter, other's tricks of the trade can be leveraged to our great advantage. READ MORE

Jonathan Barsky

At Market Metrix, we've worked with hundreds of brands. We've noticed that the brands with the highest levels of loyalty and retention have something in common: a clear understanding of who they are and who they are trying to serve. They know what part of the market they own. They have an attitude and provide a unique, memorable experience to their guests. Here are a few examples: READ MORE

Raul  Chacon

Nearly 90,000 hospitality and leisure workers had a nonfatal occupational injury or illness in 2012, according to the Bureau of Labor Statistics. More than 26,500 of those injuries involved workers who fell, slipped, or tripped while on the job and missed days of work as a result. Workplace injuries can be costly in terms of out-of-pocket expenses, lost productivity and potentially higher insurance premiums. A recent survey by EMPLOYERS® found that 35 percent of small businesses cite workplace safety as one of the top risks they worry about. By investing proactively in safety programs and training, hotels can not only reduce workplace accidents, but potentially increase employee retention and improve work productivity. READ MORE

Paul van Meerendonk

We are currently in a digital age. The proliferation of new technologies and the uptake of them by guests is changing the booking landscape so quickly that even technological adept hospitality managers can find it difficult to keep up. The biggest change in recent years has been the rise and heightening reliance on mobile devices such as smartphones and tablets, as well as the social media apps offered on these devices, which are available at any time in any location. The transformation in the use of technology is also turning traditional sales, marketing and revenue management on its head and demanding a more holistic approach to how hotels run their business and interact with consumers. READ MORE

Jonathan Barsky

Hospitality companies are faced with almost endless opportunities to pick up customer feedback. But collecting feedback isn't like it used to be. New technology has changed how we communicate and offers an expanding array of options. As a result, customers have embraced different technologies and ways to connect with each other. So how do you reach all of your customers? No single method of collecting guest feedback works with all guests. By using a combination of feedback methods - email and mobile surveys, contacts during the guest stay, facility usage data and even simple observation - your company can get a complete picture of your entire customer mix. READ MORE

Peter Brooke

As a hotel executive, maybe you attended Cornell or another prestigious hospitality school. You have really honed your skills over the years, paid your dues and worked your way up from housekeeping to the front desk and through the ranks to general manager or some other highly esteemed position. Now that you finally have a more stable schedule and some sense of normalcy, along comes the OTA (online travel agency) to regulate your reservations and force you to pay an unheard of 12% - 25% in order to get reservations you would normally have received through your relationships with various associations and travel agents you cultivated over the years. The OTA fleecing has begun! READ MORE

Tema Frank

You know they're out there: people talking about your hotel on social media. But if you're not listening they could be shooting arrows at your back and you won't know it till you feel the pain. Monitoring the conversation in social media doesn't have to be hard or expensive. It not only gives you a chance to deflect the arrows, it can help you learn what customers are looking for and find better ways to market your strengths. Here's how to get started. READ MORE

Kathleen Pohlid

The decision whether or not to conduct background checks on prospective employees presents liability issues for establishments. Failure to conduct background checks for employees who have frequent contact with the public poses potential liability for negligent hiring. However, use of background checks to screen applicants for employment may also pose a risk for potential charges of discrimination and unlawful employment practices. Additionally, establishments must comply with federal and state laws when conducting background checks. This article will discuss these issues and provide best practices for establishments in determining when to use background checks and policies for conducting them. READ MORE

Marco  Albarran

So what truly matters to the hospitality guest? Their perception/interpretation and quality that we, the hospitality business, have to offer to them. Interestingly, they are more intrigued by the intangible service, or personal service, that they receive from the staff members above everything else. They want employees that care. This is why we need to always have a consistent culture of service be the overall main focus of our success, as this is the most important service component, even more so that the latest trendy tangible products, which you may invest in and offer. READ MORE

Scott  Watson

For those of us who have been a part of the business world long enough to remember life before the Internet, the new, connected world can sometimes be overwhelming. With a bit of practice and commitment, social media tools can become valuable assets in making business connections and developing sales prospects. READ MORE

Brandon Dennis

When hoteliers talk about social media, they often only consider the big three—Facebook, Twitter, and Google Plus. YouTube is rarely considered when hotel marketers forge their social media strategies, despite the numbers conveying its value. I hope with this article to show why YouTube is a powerful social network that's ready to deliver new guests to your hotel. READ MORE

S. Lakshmi Narasimhan

The Catering operation is thus a different kind of food and beverage operation. It takes the normally prevailing low price high volume characteristic of the typical food and beverage operation and turns it on its head. It thus becomes a high volume high price operation with enormous boosts to revenues and profitability owing to the numbers it manages to pull. The high contribution margin it enjoys thus makes it the venerable breadwinner for the food and beverage operation. Owners can laugh all the way to the bank for having the foresight in building a top notch offering of function rooms in the catering operation within their hotel premises. READ MORE

Larry  Mogelonsky

Maintaining excellent guest relations is a vital way to boost customer loyalty and brand recognition. But often this practice is watered down to niceties and small talk with guests, and nothing to really spark a genuine connection. To propel these relationships to the point where consumers will actually form an emotional bond with a hotel, the concept of guest mentorship can act as a precision tool. In essence, it involves taking on the role of teacher in order to satisfy guests' inner desires for meaningful life experiences. READ MORE

Kelly  McGuire

In a highly competitive and increasingly commoditized environment, many hoteliers feel that delivering a more personalized guest experience will be the differentiator, and recent research backs up this claim. With more guest data available than ever before, and the emerging technologies to capture, comprehend and act on that data, this vision is coming close to reality. The hotel company that is able to turn all of the data about guests and operations into improvements in the guest experience will win. Revenue management and pricing has a key role in this initiative, ensuring that personalization is delivered profitably. READ MORE

Michael McCartan

The dynamics of hotel pricing has always been a classic case of cat & mouse game - where the hoteliers have to balance the see-saw every minute on several factors. How do you balance the see-saw of high season vs. low season, an exorbitant rate vs. customer loyalty, price optimization vs. revenue optimization, inventories vs. competitive pricing? Hotel pricing has always been a never ending roulette for an hotelier. It is increasingly clear that hotel industry is moving towards Dynamic Pricing as hoteliers can now assess online rate performance and see how they can change their prices more frequently to increase revenue, all thanks to the competitive benchmarking tools available in the marketplace. The question that requires more discussion though is how should a hotel respond to unusual events in town? READ MORE

Christopher  Bolger

From devastating fires and employee theft to the major liability exposure associated with food contamination and serving alcohol, food and beverage operations present some of a hotel's most significant risks. Hotel executives can limit their exposure by implementing a thorough risk management program with proven safety and training initiatives, as well as by ensuring they have adequate insurance coverage for all their food and beverage risks. The result can be a safe and profitable food and beverage operation that provides value and pleasure for guests. READ MORE

Sherry Heyl

Facebook, Twitter, Pinterest, Google Plus, Vine, Instagram, SnapChat, Linkedin, YouTube, Flickr, Tumblr. Trying to keep up with the news, trends, and changes in social media can seem like walking through a bazaar with merchants calling out to you to get your attention. It can feel overwhelming and intimidating. You know your brand needs to be social, but your resources are limited and you need to find a way to focus on how to get what you need for the least cost and effort. If you start by knowing what you want to achieve followed by what is available to you, it all becomes much more manageable.  READ MORE

Coming up in March 1970...