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The guest experience in hospitality is mixed!

Profile Photo By: British Hospitality Association
April 26, 2012

The guest experience in hospitality is mixed!

customer service benchmark

Part 1 of the New Research Report released by Customer Service Benchmarking Ltd reveals the true state of customer experiences in the hospitality industry:

  • The Hospitality Sector Benchmark is 75.42% – 14.58% below the 90% target level.
  • 13% of businesses act as sector assassins – creating ?hospitality detractors?
  • 30% of businesses could transform their business with focus. A shift of less than 10% in current performance levels is all that is required.
  • Personality is the weakest performing area for the Hospitality Sector Welcome, Warmth, Interest and Knowledge are of most concern
  • All areas are well below the 90% target that is required to assure recommendation
  • Warmth is the most cited positive driver of recommendation
  • Training scores best – What was the ROI on the ?4,242m investment? A well trained team does not of itself drive guest recommendation.
  • The industry has a Net Promoter Score of 12.4 – another indication of guest ambivalence, unwillingness to recommend and competitive opportunity

Bob Cotton commented “Whether in preparation to welcome the world as hosts of the Olympic Games 2012 or simply to grow sales and profit in the most competitive economic conditions for a generation this report based on robust ?actual? visit data identifies the challenges and opportunities ahead”

Hospitality Benchmark – 75.42%
While this “average” may appear good it is below the target (90%) required to gain guest recommendation and advocacy. In a competitive market 75.42% is simply average and in the face of operators delivering 90%+ it means the majority are being squeezed by these better purveyors of hospitality and ambivalent guests seeking more bang for their buck resulting in declining volumes and frequency of visits.

David McHattie CEO commented ” Being average is not competitive advantage – it’s standing still in a very competitive environment with everyone fighting for consumers time and money. The report illustrates the scale of the opportunity the industry has for 2012 and beyond. We know that focussing on existing guests and the things that matter makes a demonstrable difference to guests willingness to recommend. The hospitality industry is in the business of experiences and personality is key – the most cost effective marketing is to convert your guests into a sales team who will share recommendations on social media.”

Range of scores – 18% – 100%
This demonstrates the inconsistency prevalent in the industry – one of the principal enemies of recommendation

Rocky Road
In September 2011 the index had risen to 75.91% an improvement from the February 2011 index of 74.37%. However the updated Hospitality Benchmark of 75.42% reflects a difficult period for guests in the lead up to Christmas. It is apparent that operational challenges including rising costs and predicted guest volumes caused a reduction in staffing levels which were ultimately recognised by guests.

Only 13% of hospitality businesses are delivering service that will generate guest recommendation

McHattie added “Amid the doom and gloom there are some shining lights who have been aspiring for and delivering more than average for some time who are a credit to the industry developing advocates for eating drinking and sleeping away from home. Parts 2 & 3 of the report will showcase some of these.”

For more information please contact David McHattie on david@customerservicebenchmark.com

Source: BHA

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