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Importance of customer experience in hotels industry

In the hotel industry, the main focus has always been about creating positive customer experience. Whether it is a birthday party or wedding nights, business meetings or honey moons, every customer in the hotel business has had some of the most memorable experiences and this experience is one of the major deciding factors that help determine whether the customer will come back for other visit or not.

In the past few decades, the expectations of the consumers have evolved, becoming more uninhibited and demanding. A failure in meeting consumer’s expectation may result in a poor customer experience, which in return can certainly damage the brand name and the company’s reputation. This is why brands strive for providing excellent customer experience by providing an amusing and satisfying escapade.

The hospitality industry has evolved over past few years and has become more competitive.

Today, delivering just the basics of a comfortable room or a clean suite is not sufficient to meet the consumer’s satisfaction. Instead, there is a need to learn the basics of how to harness the data and insights to elevate the customer experience in hotel industry.

Research shows that even a slight improvement in customer experience can build retention, enhance productivity, and create espousal that can translate into significant revenue gains. In a review by Harvard, customers with good experience tend to spend more than 100% compared to those with poor experiences. Undoubtedly, happy customers ensure that the hotel profits and incomes remain healthy and this is the reason why customer experience is highly correlated with “loyalty”. Customer Loyalty is one of the most significant factors that are taken into consideration by most of the hotel chains in order to retain its consumers.

Below are some of the trends in the hotel industry that show the importance of Customer Experience.

  1. Gaining customer loyalty
    Keeping exceptions aside, a majority of travelers are loyal to certain brands. Hence, improving customer experience can strategically improve the loyalty in terms of increased spending, retention, and boosterism.

  2. Delivering what was promised
    In the hotel industry, to maintain the business it is important to keep the customers engaged. To ensure repetition of customers, it is important to deliver what was promised and exceeding the expectations wherever possible is always fruitful for the company.

  3. Customization increases bookings
    Providing customized options cross technology platforms is the key to welcoming guests with a personal touch. More customers would rather prefer a hotel with customized stay rather than the one that provides standardized package.

  4. Complaints are opportunities
    In the hospitality industry, it is important to get feedback from the customers in order to learn what shortcomings or problem areas the hotel might have. Fixing the problem and resolving the situation often creates a loyal patron.

  5. Shift in customer attitude
    Many customers before or after using the services, share information with hotels which could be either personal data or the review of services, and expect something in return. Hotels use this data for analysing and providing better services to the consumers.

In the era where customers drive the market, customer – company relation is the greatest source of competitive distinction. And to accomplish these relationships, hotels must deliver satisfying experience to its customers that meet or exceed their expectations. The trends show that the hotel customer needs to be engaged with a well-defined customer experience strategy. In order to earn the loyalty of consumers, hotel needs to evolve with customers' expectations and adapt their offerings accordingly.

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Madhulika Mukherjee
Madhulika Mukherjee

Founder and CTO, Survaider. I help companies be awesome at providing superior Customer Experience. I like Artificial Intelligence, product designing, UI, UX, singing, painting and milk. Say hey: http://www.madhulikamukherjee.com