‘Fix it, Plus one’: Solving Problems for Hotel Guests

By Simon Hudson Endowed Chair in Tourism and Hospitality, University of South Carolina | February 09, 2014

Last year, I wrote an article in Hotel Business Review "The Service Recovery Paradox. Does It Really Exist?", which suggests that customers who are dissatisfied, but experience a high level of excellent service recovery, may ultimately be even more satisfied and more likely to repurchase than those who were satisfied in the first place. Although I concluded in the article that ‘doing it right the first time’ is still the best and safest strategy in the long run, what this paradox does reveal is the critical importance of service recovery. A customer complaint represents an opportunity for the company to improve its image and perceived quality, permitting the company not only to make a positive correction to resolve the complaint, but also go the extra mile to really ‘wow’ a customer and keep them for life.

For this reason, top service companies take service recovery efforts very seriously, and empower employees to go ‘above and beyond’ when rectifying problems. I heard a perfect example of this from the Disney Institute a little while back. Apparently a young girl (we shall call her Molly) had left her favorite teddy bear behind at Disney World. On arriving back home from their Disney vacation, Molly’s parents called Disney to see if they could find the teddy and send it on to them. Disney said yes, they had found teddy, and he would be popped in the post straight away. Two days later, teddy arrived wrapped in pretty Disney wrapping accompanied by a note to Molly.

The note said: “Dear Molly, we are terribly sorry to hear that you left your favorite teddy behind, but we want to assure you that while teddy was here, he had a terrific time.” And under this note were numerous photographs of teddy on every single ride at Disney World. What a brilliant service recovery! Disney has calculated the average lifetime value of a typical household is $50,000 to them (yes, I know – astonishing isn’t it) so being creative with service and going the extra mile like this is well worth the effort. It looks like Molly and her parents will be in for the full $50,000!

Top hotel companies with strong service cultures also give employees discretion in how to solve guest complaints. At Ritz Carlton, for example, employees have $1,000 or more at their disposal per service episode to resolve complaints or service failures for guests. But in smaller organizations with lower budgets, how can employees implement such ‘brilliant’ service recoveries? Paul Hudson is Operations Director at Luxury Family Hotels (LFH), a group of eight UK hotels, seven of them recently acquired from the Von Essen Group. His adage is ‘Fix it, plus one’ – solve the problem then surprise the customer without costing too much money. “We have four core values at LFH,” he says: “Care and Consideration for Others; Continuous Improvement; Deliver Exceptional Service; and Going the Extra Mile. I believe that if you put this last one into practice regularly within the business you will find that customers are more forgiving when service/product breakdown does occur.”

Hudson has a wealth of experience solving problems for travelers. Having worked in the travel industry for more than 30 years, Hudson has held previous roles as Head of Overseas Operations at Neilson Active Holidays, Product Development Manager and Overseas Director at Cosmos Holidays, and Regional Manager Spain and Winter-Ski operations at First Choice Holidays. Hudson realized the importance of service recovery very early on in his career. “When I worked as a travel representative, and my customers had a problem with the hotel or the airline, I got sick of these companies passing the buck and saying ‘it is not my problem’. The problems could easily have been solved but they couldn’t be bothered. As a Tour Operator we had to deal with the customer complaint and compensate the customers on their return and later try to recover the cost from the suppliers. I decided that as soon as I was in a position to manage the supply chain, I would make sure that problems would be solved on the spot wherever possible.”

Hudson acknowledges that many problems in the travel industry are unforeseen and/or uncontrollable. “Naturally there are myriad examples in tourism where the product or service delivery fails to meet guest expectations. I encourage staff wherever possible not to wait until the problem arises, but to anticipate the issue,” he says. “For example, if you are a waiter you have to look around for people who have not been quickly served and if you see someone who has been waiting for too long, you go and apologize, explain the reason, and offer them a free drink before they even get the chance to complain.”

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Coming up in February 2018...

Social Media: Engagement is Key

There are currently 2.3 billion active users of social media networks and savvy hotel operators have incorporated social media into their marketing mix. There are a few Goliath channels on which one must have a presence (Facebook & Twitter) but there are also several newer upstart channels (Instagram, Snapchat &WeChat, for example) that merit consideration. With its 1.86 billion users, Facebook is a dominant platform where operators can drive brand awareness, facilitate bookings, offer incentives and collect sought-after reviews. Twitter's 284 million users generate 500 million tweets per day, and operators can use its platform for lead generation, building loyalty, and guest interaction. Instagram was originally a small photo-sharing site but it has blown up into a massive photo and video channel. The site can be used to post photos of the hotel property, as well as creating Instagram Stories - personal videos that disappear from the channel after 24 hours. In this regard, Instagram and Snapchat are now in direct competition. WeChat is a Chinese company whose aim is to be the App for Everything - instant messaging, social media, shopping and payment services - all in a single platform. In addition to these channels, blogging continues to be a popular method to establish leadership, enhance reputations, and engage with customers in a direct and personal way. The key to effective use of all social media is to find out where your customers are and then, to the fullest extent possible, engage with them on a personal level. This engagement is what creates a personal connection and sustains brand loyalty. The February Hotel Business Review will explore these issues and examine how some hotels are successfully integrating social media into their operations.