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A Guide For Accommodation Managers

Providing exceptional service cannot be overstated. This most certainly rings true for those in the hospitality industry. Accommodation managers understand that happy guests are not just a testament to their commitment to hospitality; they are also a valuable asset that can significantly impact the bottom line. So how does good service actually pay us back? Let’s explore the tangible benefits it brings to accommodation managers.

Repeat Business and Loyalty

One of the most obvious and direct ways good service pays off is through repeat business and guest loyalty. Happy guests are more likely to return for future stays and become loyal customers. They also tend to share their positive experiences with friends and family, effectively becoming brand advocates who bring in new customers.

Loyal guests not only contribute to a more steady revenue but also reduce the marketing costs associated with acquiring new customers. A study by Bain & Company found that increasing customer retention rates by just 5% can lead to a 25% to 95% increase in profits.

Positive Reviews and Reputation

Online reviews and social media are currency in 2023, a single negative guest experience can quickly tarnish an accommodation’s reputation. Conversely, good service results in positive reviews and testimonials, which serve as powerful marketing tools.

Positive online reviews can attract new guests and influence their booking decisions as they form trust with prospective customers. A study by Harvard Business School revealed that a one-star increase in a Yelp rating can lead to a 5-9% increase in revenue for restaurants. The same principle applies to accommodation businesses.

Higher Average Daily Rates (ADR)

Exceptional service often justifies higher pricing. Guests are willing to pay more for a superior experience, including personalised attention, comfort, and convenience. When accommodation managers consistently deliver high-quality service, they can command higher Average Daily Rates (ADR). After all, it’s perfectly reasonable to expect a higher rate when receiving a personalised service.

Moreover, guests are more likely to indulge in additional services and amenities when they feel well taken care of. Whether it’s room upgrades,  dining options, or simple but tasty chocolate hearts, these add-ons contribute to increased revenue per guest.

Cost Reduction through Efficiency

Good service isn’t just about providing a warm welcome and addressing guest concerns promptly. It also involves operational efficiency. Accommodation managers who prioritise service excellence often streamline their operations and reduce inefficiencies.

Efficiency improvements can result in cost savings in areas like housekeeping, maintenance, and energy consumption. It’s not just about providing a pleasant stay for guests; it’s also about optimising resources to maximise profits.

Competitive Advantage

Offering exceptional service can give an accommodation business a significant edge; as you may have noticed, good customer service isn’t easy to come by these days. Guests are more likely to choose a short stay with a reputation for great service over a competitor with a lower price but mediocre reviews.

A strong reputation for good service can also withstand economic downturns better than price-based competition. Guests may be willing to tighten their budgets during tough times, but they are less likely to compromise on the quality of their stay. Good reputation means more garauntee of a good stay.

Enhanced Guest Experiences

Ultimately, the ROI of customer happiness is derived from the enhanced guest experiences that good service provides. Accommodation managers who go the extra mile to ensure guest comfort and satisfaction create a positive cycle of goodwill.

Happy guests are more likely to overlook minor inconveniences and are less demanding when issues arise. They are also more forgiving in the face of occasional setbacks, leading to smoother operations and reduced stress for managers and staff.

Conclusion

Accommodation managers must recognise that investing in good customer service is not an expense but a strategic decision with a substantial ROI. The benefits, from increased revenue to enhanced reputation, are not only tangible but also integral to long-term success in the hospitality industry.

By prioritising customer happiness and consistently delivering exceptional service, accommodation managers can secure a competitive advantage, boost revenue, and create a virtuous cycle of guest loyalty and positive reviews. In today’s interconnected world, the ROI of customer happiness is not just a financial metric; it’s the lifeblood of a thriving accommodation business. So play the long game and see how good service pays off to benefit your business.