HOTEL BUSINESS REVIEW

April FOCUS: Best Practices in Guest Service & Customer Experience Management

 
April, 2013

Best Practices in Guest Service & Customer Experience Management

Given today's fierce global competition, the identification and use of best practices is a critical component of managerial excellence and a means of producing the best possible performance. For hotels and resorts, customer service is the single most important element for its success. Though their operations may vary in size, themes, resources and customer profiles, the goal is always the same ? to create a customer experience that is compelling, ensures repeat business, and establishes a positive public reputation. In order to achieve these results, hotel managers are implementing standards for customer service, and then monitoring and measuring guest satisfaction via statistical performance metrics. They are also putting into place best practices to standardize the process pertaining to guest complaints and resolutions. These efforts are intended to provide a clear framework for all customer-facing employees to follow when interacting with guests, and to empower them to make decisions that will benefit the customer and the organization. The April issue of the Hotel Business Review will report on what some leading hotels are doing to foster a customer service culture which drives guest satisfaction and retention.

This month's feature articles...

Bram Hechtkopf

Thanks to the proliferation mobile, hotels guests today are embracing ever-more complex and experience-driven ways to enjoy their stay. In other words, benefits like mobile check-in, concierge services, room service and daily deals are just the beginning. Loyalty must expand beyond a hotel's four walls. Thanks to the technology guests rely on elsewhere, they've become what's called "always-addressable consumers" - individuals whose brand engagement occurs anytime, anywhere, on any device. And as data shows hotel brand loyalty up for grabs, lodgings large and small must consider new loyalty and mobile tactics to attract, engage and retain their guests. READ MORE

Robert Kwortnik

Service scripting is widely used throughout the hospitality industry as mechanism for ensuring the quality of a service transaction. However, strict scripts may not be appropriate for all service interactions, while allowing employees to depart from the script at will invites potential service failure. Thus, the challenge for managers is to match the level of scripting to the type of service to both maintain guest satisfaction and complete the service transaction. The key elements in this calculus is the employee's use of the script and the guest's reaction to it. READ MORE

Bonnie Knutson

The 1985 PBS documentary, Search of Excellence, adapted from Thomas J. Peters' and Robert H. Waterman Jr.'s landmark book, looks at eight American companies and what makes them thrive. In general, they succeed because they make both their customers and employees happy. The same thing is true today. In the film, one of the business owners, Stu Leonard, attributes the success of his Connecticut grocery store to his belief that only satisfied customers come back. No surprise there! While that is good to know, it doesn't answer the important question that all businesses, not just hotels, face every day: So just how do we satisfy our customers? READ MORE

Rani Bhattacharyya

As travelers become more and more informed and reliant upon mobile devices and online trip planning tools, the importance of actively managing your property's digital presence is vital in retaining and broadening your customer base. In this article I will show how the use of social media platforms can provide your service team an opportunity to actively manage relationship building within your target markets, simplify in-house transaction and customer management, and strengthen your loyalty marketing strategy. READ MORE

Roberta Nedry

When my feet were hurting after three hours of delivering a workshop in Doha, Qatar in the Middle East to over 100 hospitality and concierge professionals, I asked my host, Randy Santos, the Les Clefs d'Or Chef Concierge of the InterContinental Doha, if he minded if I took my shoes off for a few moments before I went back on stage. About five minutes later, he had some hotel slippers delivered to relieve my aching feet. He sensed, even though I was working on his behalf, that there was SOMETHING he could do to relieve my pain and in turn, enhance my own guest experience taking place in his hotel. READ MORE

Laurence Bernstein

Customer Experience Management is more than a department; it is an approach to how the hotel or resort is managed. CEM encompasses everything. The way in which customers experience the brand or hotel determines the success of the business. The opportunity is for hotel managers to view CEM strategically by focusing on each of the nine separate opportunities to influence the way future guests, current guests and past guests experience the hotel; and by creatively designing a relevant mix of the six different types of experiences. This strategic approach to CEM results in building emotional bonds between customers and the brand, ensuring guest are delighted, demonstrate loyalty and become advocates. READ MORE

Dan Denston

No business has been unaffected by the economic downturn of the last few years. Most often, the state of the economy IS the state of the hospitality industry. Though the current recovery of hotel industry, overall, has been stronger than that of most businesses. PriceWaterhouseCoopers (PwC) says as the US economy inched forward, the travel segment experienced a “robust recovery.” In 2011, PwC reports, the hotel industry experienced an 8.2 percent increase in Revenue Per Available Room (RevPAR), just 2 years after it reported a 17 percent dip. READ MORE

Marco Albarran

I recall when I was getting my feet wet in the lodging industry, how we had so many changes in ownership/management, and how each new manager had a different strategy/approach to position the hotel and it's the brand according to the local market and also, the levels of service it provided. This was a very confusing panorama for staff members, as well as for external customers. Does this sound very familiar to your operation? Let's discuss further experiences and solutions on how to position our properties appropriately, ensuring that we are on the right track to viable operating levels. READ MORE

Jonathan Barsky

The purpose of a recent Market Metrix global hotel study was to analyze the reasons why guests select a particular hotel or casino. The results offer insight into the current behavior of guests around the globe and market opportunities for companies who have a deeper understanding of guest preferences and decision making. This study is based on results from the Global Market Metrix Hospitality Index (MMHI), and includes surveys responses from 40,000 American, European, and Asian travelers during 2012. We focused on several questions that ask guests why they selected a particular hotel or casino on their most recent visit (refer to insert for more information about the MMHI). READ MORE

Nancy Wiesenfeld

Prior to the digital age, traditional market research practices involved collecting consumer data mainly either by mail, telephone or in person. The arrival of the internet, however, revolutionized how consumer data was collected, and now, the online channel is a key driving force behind most consumer initiated feedback and behavior. Today, companies have access to more data about their customers than ever before, and therefore have the opportunity to not only improve their product offering, but also to personalize their brand experience both online and in the hotel. READ MORE

Michelle Wohl

Online reviews have yielded an interesting by-product, a wealth of data about customer preferences. Historically hotels have relied on surveys to ascertain levels of customer satisfaction and find areas for improvement, but customer sentiment from public reviews can provide a more detailed view of how to please customers. Learn how sentiment analysis can overcome the bias from traditional surveys, by evaluating customer driven feedback rather than customer responses. See how hotels are shifting focus away from surveys to reviews and improving operations, creating detailed incentives for managers, and getting closer to customers. READ MORE

Holly Stiel

How can an esoteric African philosophy affect best practices in customer service and guest-experience management? Customer-service thought leader, Holly Stiel, defines Ubuntu - a humanistic philosophy based on the interconnectedness of all humanity. With an emphasis on its profound and practical implications for business, she differentiates between transactional and interactional relationships, presenting a strong case for the latter. Ms. Stiel also describes how Ubuntu creates a strong foundation for diversity training. As an underpinning for a hotel's hiring and educational practices, a culture based on Ubuntu enriches the lives of both guests and staff, which cannot help but boost the bottom line. READ MORE

Bryan Pearson

One of the best methods for ensuring a good night's sleep is through a hard day's work. For hotel operators, though, those 40 winks are promised to the guests. The hard work, meantime, never ends. Delivering a guest experience that is compelling in every way, from the website to checkout, is not an accident, and it never goes on autopilot. Hotel managers must continually upgrade their own standards based on consistent customer feedback gathered through every guest touch point. Fortunately, technology enables us to gather and analyze data from the moment a reservation is made to the morning a guest departs. READ MORE

Larry Mogelonsky

Satisfying a traveler encapsulates all manner of operations on your property. However, the core of this will always be person-to-person interactions between visitors and members of your staff. Therefore, a prudent exercise to heighten guest satisfaction is to breakdown your guest services into individual interactions then ensure that each and every one culminates toward a positive experience. READ MORE

Edward Reagoso

Staying calm and keeping guests as comfortable and reassured as possible is no easy feat when facing an impending natural disaster. The anxiety and fear felt by our distressed neighbors and guests were also felt by my staff and I. Only through proper crisis planning can one expect to get through an event like this. The treat was coming out of it as champions! What a reinforcing reminder this event was on how much empathy plays such a big role in our industry. To serve our guests and ensure we were taking care of their most basic of needs without power in the hotel and destruction all around. Gladly, we ended up with many new friends and fans. What's the best way to handle the needs of your guests, partners, and team members? Be ready because when the power driving the technology goes away - That is truly, back to basics. Throw the book away and learn how you too, can have one of the most rewarding experiences of your career as I did by staying calm and executing a plan to deliver more than just the basic needs of your guests and team members. READ MORE

Rick Garlick

Many people are familiar with the service-profit chain concept which stipulates that engaged employees lead to loyal guests. However, the most motivated employee can become frustrated and ineffective when he or she is placed in a system that inhibits service delivery. A national study showed that most hospitality employees are tepid, at best, when offering their opinions about the service climate under which they do their jobs. Problems especially lie in the fact that employees are typically not rewarded for good service, are not empowered to resolve problems without consulting a manager, training is focused more on operations than on guest service, and managers are often out of touch with guest needs. Perhaps most critical is the fact that many hospitality organizations adhere to policies that are not guest-friendly, thereby frustrating customers. The paper offers best practices for creating a positive service climate that will allow employees to do their best to satisfy their customers. READ MORE

Brian Mitchell

The role of sommelier is regularly misinterpreted, and far too often undervalued. This results in needless losses to establishments. More than just a wine expert, the sommelier is wine list tactician, professional salesperson, educator, and sales manager. The best of them move seamlessly between these roles - generating revenue, increasing profits, and building diner loyalty. They should be highly valued for what they bring to the business. When the sommelier's contribution is overlooked or taken for granted by management, you can be sure the bar is being set too low - with huge hidden costs to the establishment. READ MORE

Chrissy Denihan

More and more hotels are moving toward a customer-centric model. Increasingly it is less about what we, as hoteliers, think we should provide and more about serving up experiences, service and programs based on our customers' lifestyles, preferences and needs. While Denihan Hospitality Group, the parent company of Affinia hotels, has built its foundation on a unique, guest-centric approach for 50 years, my role as Chief Comfort Officer for the Affinia brand was created to take it to the next level. This article covers customer-centric practices outside your hotel in the social and digital media space. READ MORE

Emily Williams-Knight

Today, travel supports about 14.4 million American jobs and $1.9 trillion in economic output, according to the U.S. Travel Association6. So, the demand to keep travelers coming to U.S. cities remains vital to the country's economic growth and health, and there has never been a better time to tap into the international sector to keep travel rates high and increase the marketability of hospitality companies. International travel has always been important but the way that companies position themselves toward this sector is evolving. Hospitality companies and educators need to embrace these trends and make appropriate changes to best accommodate these travelers and provide best-in-class customer service. READ MORE

Leslie Johnson

In today's fast-paced and competitive environment, hoteliers are looking for ways to respond to customer feedback efficiently and effectively. As arguably the most important element for success, customer service must be measured and monitored regularly to address guest complaints, discuss issues with associates and keep guests coming back to your property. The Timber Ridge Lodge & Waterpark in Lake Geneva, Wis., has incorporated the Net Promoter Score (NPS) measuring system to track and act on guest feedback. This loyalty metric allows management to correct major recurring issues efficiently, build positive relationships with our guests and continue to foster a customer service culture. READ MORE

Holly Zoba

Customer service, in the digital world, seems to matter even more now than ever before. Instead of evaluating your level of service delivery from the moment they arrive at your front desk, your guests are now evaluating your digital customer service skills weeks and even months earlier. The customer goes a step further - in addition to sharing their experiences with one or two friends, or filling out a customer survey (meant for your eyes only), they are sharing their evaluation with the world via TripAdvisor. This article explores how you can evaluate the upside of improving your service levels and offers suggestions to begin the process logically, and with a clear return-on-investment in mind. READ MORE

Judy Hou

Social media platforms provide low cost marketing avenues that assist in optimizing a brand's online visibility, and are now a major component of any digital marketing campaign to promote a hotel property within the visitor's domain. Hotel brands are utilizing the online social sphere to shape brand image, bring added value to the product and put cordial customer service at the forefront of the guest experience for both prospective and loyal clientele. Looking forward, this article discusses innovative strategic marketing techniques worth executing with the aim of remaining competitive and capitalizing on an international audience of prospective bookers arriving via social media. READ MORE

Arthur Spaulding, Jr.

Hospitality development today often involves a mix of different uses, including traditional hotel uses, residential, commercial and other ancillary and specialty real estate products. Art Spaulding takes a look at the issues facing the developer planning a mixed use project, including how to approach the evaluation of the project¹s zoning in relation to the individual components to be included within the development. Further, Mr. Spaulding examines the benefits of structuring such a project as a condominium in light of the flexibility presented by that structure in relation to the separate sale, leasing and financing of the various components of such a project. READ MORE

Hermann Elger

The world has never moved more quickly than it does at this very moment, and we can certainly expect the pressure to grow. This increasing need for speed may be the only constant in an ever-changing world with distractions and various new obstacles in our way. The companies that succeed in today's economy will be those that can adjust their cultures from the contentment of the status quo to a sense of urgency. But how do we kick-start a sense of urgency? How do we communicate the need for change? How do we continue to fan the flames of urgency and avoid resting on the laurels of success? We will explore the ways in which to react to this stark reality, and how to propel ourselves from a state of inertia into one of perpetual motion. READ MORE

Jason Guest

Networks are getting increasingly more crowded, with the skyrocketing adoption rate of smartphones and other wireless devices. Wi Fi offloading has become one of the best ways to address this issue: users are finding that switching to Wi-Fi delivers a better user experience with faster data speeds. Additionally, many applications are available only over a Wi-Fi network, and devices are increasingly being designed with Wi-Fi in mind. What can hotels do to address this? How can they leverage new options such as Wi-Fi offloading to their advantage, for new revenue streams and to increase guest loyalty? READ MORE

S. Lakshmi Narasimhan

With Stakeholders demanding sustained bottom line performance even while there is growth in the number of hotel properties it becomes a tightrope walk for group CEOs to deliver. The additions to the portfolio may not add to the bottom line enough, dragging down group profit numbers. In other words, when newer hotel properties become operational in a group, whether the newcomers are "above" or "below" the group average profits is crucial. Further, the timing of the newer hotel property openings is critical. Thus not only the composition of the portfolio but also the timing of the additions needs to be strategically planned. Group Hotel CEOs have their work cut out for them. READ MORE

Angel Zimmerman

In many ways, the hotel industry in Asia is setting the pace for reaching a global customer base. A particular trend in this region that many hoteliers are experimenting with has to do with a world-sweeping technology-localized mobile applications. Asia has the highest potential for mobile growth in the world; at the same time, an increasing number of international travelers are expecting personalized service with the swipe of their fingers on their mobile devices. How are today's hotels in Asia addressing this need? And what is involved in localizing a mobile application for multinational and multilingual audiences? As more businesses become savvy in this arena, we are seeing more exciting developments in marketing and technology as global hotels expand into additional markets. READ MORE

Don Willingham

In today's world, it is important now, more than ever, for each individual hotel to carve out a name for itself to help distinguish the brand from its competitors. At Hilton Garden Inn, the brand is dedicated to achieving success by cultivating key relationships with key internal and external players. By providing a brand promise to provide assurance for both employees and consumers, employing proper training for team members, staying on top of industry trends and adapting to suit consumer wants and needs, Hilton Garden Inn shares some best practices when it comes to growing a brand inside and out. READ MORE

Bryan Green

For many operators in the hospitality industry, it makes sense that a constant focus on the property's fitness amenity would be unlikely given the balance of priorities. However, as we all know, guest expectations as they relate to an offering in fitness continue to grow each and every year. Because it is clear that the fitness center is a frequent part of the guest experience for many, its critical to gain a solid understanding of the fundamentals every property must attend to regardless of the size or stature of the space. READ MORE

Kathleen Pohlid

As reservists return from active duty and deployments overseas, many of them will be seeking reinstatement in their former jobs or new employment. The Uniformed Services Employment and Reemployment Rights Act (USERRA) provides reservists and other uniformed service members with important employment rights including reinstatement and protection against discrimination. USERRA applies whether the individual's service is voluntary or involuntary. Employers, including hotel establishments, are required to comply with USERRA and provide notice to employees of their rights and obligations, as well as, notice of their employer's obligations under USERRA. This article will provide a synopsis of employee rights under USERRA. READ MORE

Mark Simpson

After years of hype and hyperbole, there is no doubt: mass-market personalization is on the way. Organizations that have already leveraged predictive technologies and testing solutions have achieved, on average, a ouble-digit increase in conversions. With more organizations looking to get in on the act, especially in the US, speed is crucial. The good news is that with the SaaS model, organizations can be up and running immediately. Add in multi-channel data, from call center and store or branch, and your business can have consistent, cross channel personalization within a quarter. READ MORE

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