HOTEL BUSINESS REVIEW

April FOCUS: Guest Service

 
April, 2015

Guest Service: Customer Service is a Key Business Differentiator

In today's hyper-competitive, hyper-connected global marketplace, customer experience has assumed a major role as a key business differentiator. There is a growing understanding that competition based on products or price alone is no longer a viable strategy. Since feature or function advantages can be quickly duplicated and/or enhanced, product innovation is no longer the differentiator it once was. And competition based on price impairs profitability. On the other hand, research indicates that 86 percent of consumers said they would be willing to pay more for a better customer experience. To protect both market share and margins, hotel companies must provide customers with consistent, compelling experiences - before, during, and after their purchases - across all major channels. There are many things organizations can do to deliver a superior customer experience. Management must align everything a company does with the customer service experience in mind. They must assign high value to anticipation of customers' real needs and desires, and they must incentivize and reward personal initiative in the pursuit of customer satisfaction. They must respond quickly to customer requests. They must ensure that customer interactions are highly personalized, and they must deliver the right information to the right place at the right time. And perhaps most importantly, upper management must create a culture where customer service is valued and esteemed, taught and rewarded. Customer experience leaders who can drive this kind of cultural change will radically affect their companies? competitive position and business performance. The April issue of the Hotel Business Review will document what some leading hotels are doing to cultivate and manage guest satisfaction in their operations.

This month's feature articles...

Simon Hudson

A major cause of poorly perceived service is the difference between what a firm promises about a service, and what it actually delivers. To avoid broken promises companies must manage all communications to customers, so that inflated promises do not lead to overly high expectations. With hospitality examples from all over the world, this article discusses four strategies that are effective in managing service promises: creating effective services advertising; coordinating external communication; making realistic promises; and offering service guarantees. READ MORE

Pamela Barnhill

As independent hotel owner, operator, founder of InnDependent Boutique Collection and entrepreneur, Pamela Barnhill aims to stimulate dialogue about independent hotels. While independents - which by nature have more personality and distinctiveness than corporate hotels - represent half of the world's lodging stock, Barnhill believes they are underserved. IBC and its corporate sibling, InnSuites Hospitality Trust, aim to expand the branding of independents through marketing and trademark services. In this column, Barnhill shows us why striking the balance between rapidly changing, ever more affordable lodging technology and the human touch that still counts so much is key to an independent hotel's success. That balance is within reach. READ MORE

Holly Stiel

Consistently high occupancy rates, rave reviews on Yelp and TripAdvisor, and guests who make a pilgrimage to your property year after year. What is their secret? Interestingly, this highly rated destination isn't a hotel or a city that's known to attract tourists en masse. Believe it or not, it's an animal sanctuary in Kanab—a small town in a remote corner of Southwest Utah. READ MORE

Lonnie   Mayne

Guest expectations are changing. Not only do they want a good price, they also want to feel valued. They want to know their opinion matters and can positively affect your business. But this isn't information you can learn from data and numbers—it comes from the stories they share. The key is learning to listen to your guests' individual stories, understand what they are telling you, and then internalize their advice in ways that make a real difference to both your business and your relationship with your guests. READ MORE

Michael McCall

One of the most important issues in the hospitality industry today concerns the value proposition being offered to the customer. This proposition can be real or simply perceived. This fundamental issue begins by asking what the value proposition is that we offer our customers and then the manner or channel in which it is communicated. In this brief article we consider a number of ways that hotels can create a favorable value proposition in a manner that increases customer satisfaction and choice. READ MORE

Naomi Stark

The “Principle of Reflection”Of all the ways that customer service can be sliced and diced, the one fundamental that stands out the most significantly to me is: “Upper management must create a culture where customer service is valued and esteemed, taught and rewarded. Customer experience leaders who can drive this kind of cultural change will radically affect their companies' competitive position and business performance.” There is nothing more important in the effort of driving customer service than driving a strong customer service culture. It's the foundation to everything else. Period. READ MORE

Dennis  Armbruster

In today's hyper-competitive, hyper-connected global marketplace, customer experience has assumed a major role as a key business differentiator. Within the hospitality industry, there's a growing understanding that competition based on price alone is no longer a viable strategy due to the potential volatility as well as the negative impact on profitability. READ MORE

Sapna Mehta Mangal

Born between 1984 and early 2000s, Millennial are the largest cohort in the United States today. They are becoming the most sought-out demographic among hotel brand portfolios. As they continue to mature, they will not only impact travel numbers, but also become an influential and highly profitable segment. They exude distinct online and offline behavior. This has altered their outlook towards guest services. The present challenge faced by many hotels is that they are inundated with decade-old guest service delivery principles that are baby boomer and generation X focused. Are hotels ready to reevaluate these traditional offerings and embrace the 21st century notion of guest services? READ MORE

Kimberly Abel-Lanier

In the hospitality industry, it's no surprise that the guest experience is a top priority. Yet customers today are looking for more memorable and dynamic experiences - ones that make them feel their business is appreciated. Whether it's altering a menu item to accommodate individual preferences or extending a room check out time, these above-and-beyond actions are what guests have come to value in their experiences. While organizations place an importance on this need to please customers, many fail to realize that their employees play a pivotal role in creating these guest experiences. The reality is that employee satisfaction and employee loyalty have a direct link to customer satisfaction and customer loyalty. READ MORE

Scott Hale

Lately, business has been good for hoteliers. Really good. Revenue per available room is up, average daily rates are strong and occupancy is higher than it has been in in quite some time. With the numbers looking this good, what could go wrong? Everything. It's no secret that the hotel business is a cyclical one and where there are ups, there will most certainly be downs. Regardless of market conditions or environmental factors, there is one component of the hotel business that every hotelier can and must control the success of: the guest experience. READ MORE

Jim Coyle

Historically, hotel quality assurance or “QA” programs have their roots in the hotel franchise model. Franchisors needed a way to ensure their franchisees were living up to the franchise agreement. Internal auditors or third parties were often deployed to measure hotels on a set of strict standards and unwavering objectivity. After all, the results of a QA inspection can play a big role in determining if a hotel gets terminated or de-flagged from its brand. Partially to keep things consistent and mostly because it wasn't a priority, little to no attention was paid to measuring the guest experience or customer service—all that has changed. READ MORE

Tema Frank

Great guest service means that you need to have solid processes in place to (a) avoid problems in the first place, (b) make it more likely that customers will tell you about problems so they can be resolved before your reputation is hurt, and (c) ensure that front-line staff (the folks on the other side of the process bridge) can solve problems quickly when they do occur. Staff smiles and apologies will only go so far; they can't make up for defective processes that lead to bad experiences. Find out what it takes to build a solid process bridge between your staff and your guests and back again to build your profits. READ MORE

Tom O'Rourke

This article discusses how hotel mobile apps can help create guest loyalty and retention by creating unique experiences and providing great utility that makes the property stand out from the competition. Ultimately, the idea is that a hotel app can be used as a competitive advantage and convince the guest to book at that property the next time they need accommodations. READ MORE

Joe Stanton

It is estimated that only 48% of travelers write and post travel reviews online. But since a hotel's online review scores contribute to everything from occupancy to RevPAR (revenue per available room) to profits, encouraging the remaining 52% of casual visitors to become social advocates for the brand is of critical importance. Luring these guests to action requires changes to both a hotel's operations and its marketing campaigns. While the specific recommendations made in this article may seem time-consuming, the results gained from improved social review scores make the investment well worth it for motivated hotel operators. READ MORE

Shayne Paddock

It's engagement season! How is your hotel or brand driving customer loyalty and striving for that long-lasting relationship? If you want travelers to opt-in and engage with your digital marketing effort, they need to be wooed. Wooing, however, takes time and it takes finesse. More importantly, it takes precision in knowing just the right thing to say and when to say it. In "Engaging with Customers Beyond their Stays," Shayne Paddock, CIO of ZDirect, details the importance of using Hotel Marketing Automation to build customer trust and a desire for two-way communication. READ MORE

Steve Curtin

Business as usual produces the usual results: average quality delivered by uninspired employees. There are far too many companies known for providing ordinary customer service - or worse. And there are far too many employees who are content to simply execute the mandatory job functions for which they are paid, unaware of the myriad opportunities missed to delight customers. But for those companies that refuse to accept an unremarkable reputation by default and, instead, take steps to define and communicate their purpose and foster a corporate culture that inspires employees to deliver their best work, READ MORE

Coming up in March 1970...