Hotel & Motel Management - November 5, 2007 - (Page 38)

38 Special Report ANNUAL GM SURVEY H&MM November 5, 2007 | HotelMotel.com www.HotelMotel.com/digital_edition MOST IMPORTANT ISSUES By ranking hotel facilities, indicate the top three that most contribute to guest experience: 1 Pleasant, knowledgeable staff Special bedding, linens, pillows, etc. Free breakfast Kids’ activities Amenities (shampoo, etc.) Unlimited long distance calls Coffee maker in room Irons and ironing boards Kiosk check-in/check out 27.4% 10.9% 19.6% 13% 30% 27% 14% Indicate the degree of importance you place on the following topics in terms of impact on the hotel’s ﬁnancial results: Not important Retaining talented employees Operating cost creep The future of the airline industry Distribution channels, for example, third-party Internet sites Financial strength Anticipating guest expectations Overbuilding/supply The pace of technology change Hotel safey and security Uncertainty, for example, terrorism Revenue growth Brand standards Amenity creep 0.6% 0.2% 5.3% 3.2% 0.2% 0.2% 2.1% 1.1% 0.6% 3.3% 0.2% 6% 1.3% Somewhat important 1.1% 3.6% 15.3% 13% 1.5% 1.1% 10.2% 10.9% 2.8% 19.7% 1.3% 4.1% 8.8% Important 3.6% 20.3% 30.4% 26.9% 12.3% 8.1% 27.7% 35.5% 15.1% 33% 6.2% 18.2% 30.5% Very important 17.1% 42.2% 28.7% 36% 37.9% 27.1% 29.2% 32.1% 29.4% 23.2% 30.4% 31.5% 36.3% Extremely important 77.7% 33.6% 20.4% 20.9% 48.1% 63.3% 30.7% 20.5% 52% 20.8% 61.9% 40.3% 23.2% Responses N = 475 N =467 N =471 N =469 N =472 N =472 N =469 N =468 N =469 N =461 N =470 N =467 N =466 2 3 5.5% Responses N = 471 N =379 N =320 N =229 N =250 N =399 N =224 N =233 N =228 N =222 86.8% 7.6% 32.2% 39.1% 60% 32% 51% 53% 30% 51.2% 21.4% 28.7% 20.4% 54% 18% 20% 54% 27.9% 61.1% Free high speed Internet connectivity 43.6% 33.3% 23.1% Knowing your business means knowing your guests IN THE details Linking revenue impact Identify experience factors Know your business model Analyze performance effects By Barbara Hughes H&MM Columnist W hat drives your business? What really has the biggest impact on your financial results? This is a topic receiving a lot of attention from companies that are searching for proﬁtable growth and a competitive advantage in a cost-conscious business and providing a guest experience that is going to garner referrals, loyalty and a greater “share of wallet.” Hotel & Motel Management’s third annual Voice of the GM survey asked respondents to assess how certain activities impact their hotel’s ﬁnancial results, and we also asked which amenities had the biggest impact on the guest experience. There were 13 cost/proﬁt “drivers” and the top ﬁve in order of importance were: Retaining talented employees Anticipating guest expectations Revenue growth Hotel safety and security Brand standards We also asked the respondents to rank the top three hotel facilities that contribute to the guest experience. The top three were: Pleasant, knowledgeable staff Free high-speed Internet connectivity Special bedding, pillows, linens, etc. If we look at the revenue drivers from each topic, which of these has the greatest impact on guest satisfaction? Which has the greatest impact on intention to recommend the hotel or an inclination to return to the hotel? General managers, by virtue of their daily perspectives, are uniquely positioned to accurately portray an educated guess. And, most likely, they are in possession of copious guest data from a number of sources including guest surveys, a guest complaint feedback loop, Web sites and, these days, blogs and other social media. Aside from mentally assimilating all of that information, how can we bring it together in a way that quantiﬁably improves business decisions? The topic of linkage research and analysis is gaining some momentum across all industries, including hospitality, although it is not yet mainstream. Basically, linkage is aimed at establishing how key business results (proﬁtable growth, share of wallet, market share, etc.) are related to managing customer experiences and relationships in an effective way. Taking it a step further, the analysis must link customer experience management with effective alignment of people and internal processes. The statistics behind the concept do not have to be any more complex than correlation or regression, but the key component is creating the map of the hotel’s business model that starts with ﬁnancial performance and works back to every moment of truth and touchpoint that could drive the customer experience. The statistics prove the strength of the re- lationship between one factor and another, and they can distinguish which factors drive the customer experience and, ultimately, the ﬁnancial performance. This is a critical outcome of any initiative in which senior management’s ﬁrst concern is “show us the money.” enue per guest. That kind of attribute in the past was difﬁcult to quantify accurately; with linkage, it will be a more predictable outcome. Wouldn’t it be great to know that new duvets are worth a 2percent increase in share of wallet and revenue growth of $235 The attribute that most impacts improvement is “making the guest feel recognized,” and that is worth $348 additional revenue per guest. In the past that was difﬁcult to quantify; with linkage, it will be a more predictable outcome. When faced with ﬁve requests for spending on worthy projects, the hotel’s leadership, using linkage analysis, can prioritize them based on their impact on the customer relationship and on ﬁnancial outcomes. Who among us wouldn’t want to know that moving a guest satisfaction score by 6 percent would result in a 10-percent increase in share of wallet? The attribute that most impacts this improvement is “making the guest feel recognized,” and that is worth $348 of additional rev- per guest? It takes linkage to bring the relevant data together. The customer experience: It will make you or break you, and the difference between guessing and knowing is critical either way. hmm@questex.com Barbara Hughes is co-founder and senior v.p. operations & strategy of Intellectual Capital Consulting, an Atlanta-based consulting and research ﬁrm specializing in customized surveys. She can be reached at barbarahughes@ intellectual-capital.net. http://HotelMotel.com http://www.HotelMotel.com/digital_edition

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Hotel & Motel Management - November 5, 2007 Contents M&A Pace Slowing After Early Boom LodgeWorks Jumps Into Upscale Game Accor Reorganizes Leadership, Structure Perspective At Your Risk Travel Trends Sales Clinic On Finance Family Business Matters Cornell Insights Franchise Law Training Trends Satisfaction Trends Management Trends Events Guest Column Trends & Stats GM Survey Historic Property Conversions Offer Appeal for All Extended-Stay Brands Survey Green is the Word at IH/M&R Show Transactions Restaurant POS Handhelds Keep Managers Alerted Rising Costs Confront Midwest Builders Business Travelers: Breakfast Still an Important Perk IH/M&RS Product Preview Vacation Ownership Projects to Grow in U.S., Abroad Awards Training Programs Jump to Front Lines Refrigeration: Before You Break It, Fix It Lighting Enhances Property People Supplier News Best Western Aims High with Atria Vantage Makes Global Plans Sierra Moves Forward with New Name, High Expectations Maintenance Doctor Social Marketing Makes Way into Hotel Industry People Ad/Editorial Index Marketplace Classifieds Checking Out

Hotel & Motel Management - November 5, 2007

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