Hotel & Motel Management - December 10, 2007 - (Page 14)

14 Satisfaction Trends IN THE details Keep guests loyal Staff problems reduce loyalty St. Regis tops problem-free list Make sure problem is ﬁxed H&MM December 10, 2007 | HotelMotel.com www.HotelMotel.com/digital_edition Staff problems can ruin guest loyalty uge efforts and expenses go into winning new customers. Once they are on board, we all are familiar with the many beneﬁts of keeping these newly minted customers happy. So it is particularly striking to ﬁnd out that a single staff-related problem can turn a loyal guest into a detractor who speaks out against a hotel or H By Jonathan Barsky H&MM Columnist By Lenny Nash H&MM Columnist brand at every opportunity. According to a recent Market Metrix study of problems reported by hotel guests, on average, 12 percent of hotel guests report having a problem during their stay. Fewer guests (9 percent) report problems at midscale-without-food-andbeverage hotels (only 7 percent at Drury Inns) and more guests (15 percent) report problems at upscale casinos. By far, problems caused by staff have the biggest negative impact on guest loyalty. Guests who experience a problem related to a staff issue are 47 percent less likely to return to that hotel, a 4-percent increase since 2005. In fact, on average, the impact of any guest problem on loyalty is increasing. Customers seem to be raising the bar and are less tolerant of mishaps than they have been in the past. Problems with billing and food and beverage were the next most severe type of guest problems. While problems with a guestroom are the most common, guests are more forgiving about problems with the room and are only 30 percent less likely to return to that hotel. Ironically, a friendly staff member with a can-do attitude might have more impact on customer loyalty than an expensive room remodel. St. Regis Hotels & Resorts leads the pack of brands delivering a problem-free guest experience. Only four out of each 100 guests report having a problem at a St. Regis property, and staff are rarely mentioned as the cause. Conversely, 20 percent of Americas Best Value Inn guests report having a problem during their stay, mostly related to the guestroom. Of course, service recovery is central to problem resolution. Research has demonstrated that the majority of customers whose difﬁculties are resolved will remain loyal, but 90 percent of customers whose problems are not solved will never do business with that company again. Errors in service require immediate response. Acknowledge, apologize, correct and follow up—ensure the customer’s satisfaction and root out the problem. Offer sufﬁcient reimbursement and restitution. Obviously hotels should strive to provide customers with no reason to complain in the ﬁrst place. But when imperfection strikes, a well-crafted recovery process can turn a weakness into good business. hmm@questex.com Jonathan Barsky and Lenny Nash work for Market Metrix LLC (MarketMetrix.com), a ﬁrm that provides customer and employee programs for the hospitality industry. For more information, call (800) 239-7515. CIRCLE NO. 114 http://www.hotelmotel.com/digital_edition http://www.hotelmotel.com http://www.hmrsss.com http://www.marketmetrix.com

Table of Contents Feed for the Digital Edition of Hotel & Motel Management - December 10, 2007

Table of Contents News Wildfires test hotels' emergency plans LIIC roundtable: Capital available for hotel projects Departments Perspective Letters to the Editor At Your Risk Family Business Matters Sales Clinic On Finance Satisfaction Trends HotelWorld Update Events Trends & Stats Special Report H&MM's "year in review" tackles the top seven in 2007 Transactions Consumer Insight Travelers rank free breakfast high on must-have items Hot Products IH/M&RS Editors' Choice Award winners Construction Spending up, costs steady in construction Design Window treatments Ad/Editorial Index Marketplace Classifieds Checking Out

Hotel & Motel Management - December 10, 2007

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