When it comes to creating guest value, I see a lot of overly logical and somewhat predictable advice being given to the industry on how to better increase their guest value. Do hoteliers today really need to be continuously reminded on the importance of providing free Internet access, a comfortable bed, and a clean room with adequate lighting?
I have read article after article that focuses on the importance of providing free Internet access as well as many other tangible amenities and services as the means for driving guest value and enhancing the guest experience. What is the purpose and the meaning for doing so? It’s not so much providing free Internet access as it is conceptualizing a hospitality experience that makes the guest feel good about themselves and your hotel brand.
Providing the hotel industry the ability to elevate the non-tangible qualities of their business is probably the best advice that one could offer for overcoming any deficiencies in improving the overall guest experience and increasing the guest value. It is a matter of closing the gap from the knowing to the doing, if you want to generate sustainable guest value that leads to loyalty benefits. The hospitality industry needs to have a better understanding of their hospitality climate first, before attempting to make any new improvements to their business to truly make strides in elevating their guest experience.
It’s also important to understand that the tangible qualities mentioned previously have a limited threshold for generating guest value. They do not necessarily differentiate your business over the competition for creating a sustainable competitive advantage in the marketplace. This is very important when considering which areas to invest in and which areas to release. You want to ensure that each business discipline is aligned to achieve a more connected guest experience.
Key elements for driving guest value
The formula for driving guest value in 21st century requires a much higher level of customer focus and organizational intuitiveness. I talk about this in my article, Making A Case For Hospitality Intelligence. It’s not a matter of positioning Internet access as part of the brand’s value proposition, it’s more a matter of positioning the total guest experience as the value proposition.
This is the age of the customer. Value is now generated in the total experience the guest receives — not solely on the tangible qualities, but more so by every dynamic within the hospitality enterprise collectively.
Guests don’t necessarily want Internet access. They enjoy the feeling that they receive from having access to the Internet. When you don’t provide Internet access you are not managing their expectations. You’re not anticipating their needs and wants, which in turn is driving down the positive emotions you want your guest to experience from your business. You do not want to leave your business to chance.
Providing a comfortable room experience has an immediate impact on how it makes the guest feel about themselves from their decision in choosing to do business with you. This increases the experiential value that affects the level of loyalty towards the brand and influences the brand value position of the business. You have to touch the customer’s heart first to create the possibility for your business to be liked, remembered and valued. You want to inspire your customers, rather than service them.
It’s more about the hourglass than it is about the wallet
I’m tired of hearing about value being associated with the money paid by the guest. That is an extremely immature business perspective and only deals with the situation on the surface. It’s always more about our time, than it is about our money. The customer can always make more money, but they cannot get that precious commodity of time back. Being more present to this realization about a customer’s time and that they entrusted you with it is far more important than their actual money. Companies that compete in the age of the customer want to build social currency as a means for creating brand relevance, customer loyalty and financial performance.
For this model to be achieved, your hospitality enterprise will to have to balance the logical L- directed business perspective with one that utilizes and incorporates more of the non-tangible R -directed business approach. You want your business to be more intuitive in how it operates, when it comes to taking care and connecting with your customers and the experience being managed. Ultimately it’s about removing any obstacles that may get in the way of the guest having a great experience and feeling good about themselves from your hotel’s service excellence. It is vital to convey the emotions you want your guests to experience from your business brand.
What’s your story?
What is your hotel narrative? The elements within the narrative must create a big picture view that connects both your organization and customers. How do you communicate to your guest what kind of experience you want them to have?
You must remember that the first building block to a buying decision is emotion, not logic or reason. The same holds true for generating customer loyalty. If everything was based on logical thinking, no one in their left mind would buy a cup of coffee from Starbucks and make them one of the most beloved brands in the world. When you compete on the experiential value with your customers, you take control of your business, to include your ADR and REV-Par with the intent towards improving the performance of your direct bookings.
The four links from some of my previous articles, which are embedded throughout this article, will provide you with additional resources and insights for helping you to better understand the importance of elevating your hospitality intelligence, so your organization can generate guest value that supports long-term customer loyalty, versus short-term usage with your customer segments. These resources can help prevent your business from putting the cart before the horse.
About the author
Brett Patten is approaching 35 years in the hospitality industry where he has spent those years accumulating invaluable experience in a variety of leadership positions, and business enterprises. Brett has becoming known as one of the top executive leadership and organizational engagement coach on the subject hospitality intelligence, and customer experience design. Brett is also a feature writer for global hospitality, a national and international publication on the subject customer experience design.
Brett’s unique management and business approach consistently transformed hospitality enterprises with sustainable growth results from his days with the prestigious four and five-star hotel brands, such as the Stouffer’s hotels, Pan Pacific Hotels, and Le Meridien hotels, as well as working with prestigious five-star club resort enterprises like the very prestigious Longboat Key, to the launching of a nationally award-winning hospitality brand in 2007.
Brett then turned this business processes into a company called “Five-Star Customer Experience Design“. Today, after spending the last 15 years researching, studying and developing customer experience design strategies for the hospitality and tourism industries, he has become an industry pioneer and the foremost authority on the subject of Hospitality Intelligence. Brett’s company engages with some of the top hotel brands and hospitality groups both nationally and internationally in the industry.
