The cost of providing guests with better customer experience in hotels is far outweighed by the returns possible from such action.
Improving guest experience is vital for the success of a hotel, but there are still questions surrounding the potential returns on investing in hospitality customer experience, especially as guests’ preferences have evolved after the past decade to include hotel technology and innovation.
Hotels that have a better guest experience than competitors realize higher revenue and customer retention, according to studies.
Guests who have positive previous experiences spend 140 percent more than those who have negative ones.
Also, customers who give high ratings for previous experiences have a 74 percent chance of still being a subscribed customer a year later, which is nearly 30 percent more than a customer with a poor previous experience.
And despite fears about the costs associated with guest experience technology, improvements are shown to reduce overall hotel costs. Telecommunications company Sprint reported a reduction in customer care costs of 33% due to initiatives that improved customer experience.
A 5-year study of various companies showed that those providing exceptional customer experience performed 128% better than those not focusing on improving customer experience and enjoyed smaller loss on returns.
What next? Contact our team to develop a guest experience strategy that will help you increase guest satisfaction, generate revenue and improve operations.
For more information on how hotel technology can give you a competitive edge when it comes to improving the guest experience, schedule a free consultation with industry experts.