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

Brandon Dennis

It's frustrating not being able to control what people say about your property. In the past, damage was minimal. One disgruntled guest could impact only a handful of people. Today, one disgruntled guest can ruin your business. All it takes is one viral video showing bedbugs at your property, and your business is forever harmed. It's important to go online and check up on your reputation, to see what people are saying. It may be tricky to know where to begin. Here is my list of the most important places where you need to make sure your reputation is positive. READ MORE

Michelle Wohl

If you are evaluating how a mobile app or mobile website can add value to your hotel, there is more to consider than just how it looks or the features that it contains. For a mobile solution to truly be successful, it must be easily integrated into your existing systems, readily adopted by your guests, supported by your staff and built for future innovation. This guide will outline the considerations you should explore as part of your decision-making process. READ MORE

Bhanu Chopra

Revenue Management as a discipline is becoming more exciting everyday. The world is changing at a pace never seen before, driven by technology. In a recent conversation, Benedict Cummins, Publisher of HotelExecutive, and Bhanu Chopra, CEO and founder of RateGain, discussed how revenue managers can leverage these opportunities and make more revenue, consistently. READ MORE

Bonnie Knutson

When I get on my soapbox advocating delighting guests, the question I always get from managers is how do I build that culture? How do I get my staff to go above and beyond the call of duty. To see what others don't see. To do without being told. Every manager knows to hire for attitude not for aptitude, and then reinforce the appitude. But that is often easier said than done. In this article, you'll see that the answer lies beyond reading a lot of “how to” books and articles about empowering employees, giving them a purpose, not rules, and tapping into their creativity. It lies in finding and hiring the round peg for your hotel's square hole. READ MORE

David Tossell

The lineup of new technology products in the hospitality industry grows every year. Emerging technologies, such as digital guest experience applications and Internet of Things (IOT) hardware/software solutions represent the cutting-edge of what's next, but, are less clear on the ROI they can deliver. Plus, you have your core suite of technology to consider -- PMS's, revenue management, restaurant POS, housekeeping / maintenance software, website, accounting system, video system, WiFi, credit card gateways and more. The complexity of managing technology can be overwhelming. So what are 2015's best practices in how to craft a strategy, implement technology and measure the ROI of your investment? READ MORE

Rahul Razdan

Hotel executives need a technology solution, which complements their respective marketing goals, branding initiatives and access to valuable Web analytics. Through the democratization of design and data, hoteliers can now enjoy the freedom to customize a site worthy of the properties they oversee... with the liberty to examine the data about the diverse interests (and ways to cater to those individual points of interest) concerning business and leisure travelers. Automating this process - and delivering these resources to hotel executives at an affordable rate - is a significant milestone for the hospitality industry in general and hoteliers in particular. READ MORE

Kathy Conroy

According to Kathy Conroy, MAI, CEO and Director/Partner of HVS's operations in Florida, one of the key influences for a United States city to achieve “world city status” has been the willingness of foreign capital to invest in the local real estate. Successful marketing of United States' cities to foreign travelers as tourist destinations eventually leads to increased foreign investment. In this article, Conroy compares the volume of foreign investment in hotel assets in various cities from the prior strong three-year period in operating performance experienced by the US hotel market to the most recent. READ MORE

Susan Tinnish

Companies, including hotel companies, promote their focus on hiring veterans. These initiatives generate positive publicity. Yet hiring veterans is not only a goodwill gesture. It can make solid business sense - especially for the hotel industry. Veterans have the skills, training and character to meet the tough challenges of the hotel world. This article discusses how and why veterans are well-suited for the hotel industry. This article explores how hotel companies are or can support veteran hiring. Finally, I offer tips to expanding hiring of veterans — especially at an individual property. It concludes that veterans offer a wide variety of skills, values, and attributes making them well suited for the contemporary hotel environment. READ MORE

S. Lakshmi Narasimhan

Business owners are obsessed with revenue generation and profit retention and hospitality stake holders are no exception. A sustained stream of profitability is what these investors like best. And so management has its work cut out. The problem is unless management is clued in on the direction their enterprise is taking, often, they are confronted with nasty surprises. One of the most critical pieces of information for management on their business performance is whether they are “losing money” as the often-ambiguous term goes. But knowing this is easier said than done. Enter the principle of break even. READ MORE

Daniel Chao

Online guest satisfaction scores, such as those found on travel sites and online booking sites contain more valuable information than we realize. They're not just a summary or description of guests' opinions of our hotel, or even of their experience in our hotel. They are an encapsulated expression of the market's valuation of our hotel compared to our competitors. As such they provide accurate insights into exactly what we can charge for our services - the market price for our product. By cross referencing our scores against our competitors and comparing them to ADR we can determine the ADR we can and should achieve. READ MORE

Fred B. Roedel, III

There are three options to expanding your portfolio of hotels. You can purchase an existing property and leave it as is, build a new property or purchase an existing one and renovate it. Economics is what will drive your ultimate decision. In order to determine which expansion option best meets your objectives, it is important to properly and reliably evaluate each opportunity by breaking down its time, cost and quality elements in order to ensure success. READ MORE

David Hogan

Research shows that loyal customers spend more, serve as ambassadors for their preferred brands and are less likely to be drawn to a competitor's promotion. Loyalty and rewards programs are ways for both business owners and customers to get what they want while building a connection more intimate than a simple transaction. Successful customer loyalty programs build upon the concept of a dynamic mutually beneficial relationship. And now, as consumers are seeking custom-tailored experiences, technology is empowering business owners to provide robust, personalized loyalty programs that lead to guests coming back. READ MORE

Bernard Ellis

According to Gartner, the customer relationship management (CRM) market is projected to increase to $36.5 billion by 2017. Businesses across all industries are looking to improve customer interactions through technology, but this is particularly critical for hoteliers who are losing ownership of customer relationships to online travel agencies (OTAs) that are outspending them on CRM technology and marketing. CRM applications have the ability to enable real-time connections between hospitality companies and their customers, and benefits are only compounded when solutions are integrated with advanced platforms for revenue management, mobility and business intelligence. READ MORE

Christopher  Bolger

After a catastrophe befalls your hotel, you are forced to cope with not only the significant costs of clean-up and repair, but the loss of business income when your usual operations are interrupted. In these instances, hotels often lose multiple income streams, from rooms to events to food and beverage. READ MORE

Ken Hutcheson

Hotel executives must make tough budget decisions every day. When funds are limited, it's tempting to limit expenditures on a hotel's exterior landscape. But this is a mistake—a beautiful landscape can bring more guests (and, consequently, more revenue) through the door. If you're working with a limited budget, follow these best practices to make sure that you see a positive return on your landscaping investment. READ MORE

Coming up in March 1970...