Differentiating at the right journey touchpoints is the key to value creation
Pre - stay
On - premise stay
Post - stay
Beyond facilities, clear communication on hotel policies and meeting privacy need, leads to customer conversion
Q1 - Was it easy for me to assess the property and make the booking?
Voice of Customer insights
Presence of facilities – like pool, gym, spa services – is a crucial factor for customers while assessing a property –
- “Hotel A has everything, like a gym, steam bath, conference rooms, and all the facilities you expect from a branded hotel. Boutique resorts don't have all these facilities."
- “The location is important, but the food, swimming pool, and room service are also crucial”
- “If there is a swimming pool, I would be more than happy to book a room there.”
Customers expect hotels to provide recreational facilities catering to all age groups –
- “They will provide smart TV facilities with a subscription to OTT channels. Additionally, every hotel must have a play station, indoor and outdoor game areas, a swimming pool, and a garden with plenty of activities for children.”
Managing customer expectations around services during their stay, defines their overall experience
Q2 - Did the hotel meet my expectations?
Voice of Customer insights
A good check-in experience, professional and empathetic staff can significantly improve customer experience –
- “The whole property infrastructure and its overall quality are important. The second factor is the staff. The property can be massive with great services and facilities, but if the staff are not equally humble and nice towards their guests, it won't make a good combination. These two together will make the experience good.”
- “Hotel B is a professional-level hotel with trained staff who know how to treat customers.”
Customers expect delivery on what was promised –
- “When we booked the room, it was supposed to be a double bed with AC. However, there was no AC in the entire hotel, even though they offered the option and charged for it.”
Most brands performed well on the post-stay experience parameters; Potential to differentiate on check-out process and luggage assistance
Q3 - Was my experience impactful enough for me to revisit or recommend the hotel to others?
Voice of Customer insights
Customers value a smooth and efficient check out process –
- “I think it's important for hotels to maintain their standard of service and improve in areas such as staff behavior and the check-in and check-out process, making it more guest-friendly. They should try to understand different aspects of guests in a much better way. It would be great if hotels could accommodate late check-outs or midnight check-ins, around 2 or 3 AM, and manage everything well”
- “If they also offer pick-up and drop-off services, that would be helpful for me. These things would incline me towards picking a property with these facilities.“
Overall, the segment demonstrates good customer ratings on all the parameters
Striking the right balance between delighting customer and the cost of servicing them is key to maximising value
Performance of the segment on the prioritized experience attributes
Customers are expecting integration of technology to existing facilities around premium hotels
- Facilitation of customer support via AI or mobile app can streamline their stay•
- Customized room settings can be better operationalised in smart rooms with automated lighting and temperature control
Leisure travelers want wellness packages as part of their stays
- Premium hotels are incorporating wellness-focused facilities and services, such as spa treatments, fitness programs, and healthy dining options, to cater to the health-conscious traveler
Customers are less focused on the website experience, since majority of the bookings are coming from OTA (online travel agency) platforms.
Customer retention is high for premium hotels with 55 percent guests re - booking their stay citing great customer support and value for money as the top reasons
Customer segmentation based on satisfaction and loyalty
(percentage share of respondents)
Customer retention is dependent on their satisfaction with the brand and their tendency to explore alternatives. ‘Ambassador’ are highly satisfied customers who will keep contributing to the brand’s success. ‘Switchers’ on the other hand, are always seeking better options. ‘Critics’ as the third segment, actively convey negative feedback about the brand, if not satisfied. Finally, ‘Dependents’ are customers who remain loyal despite low satisfaction due to lack of alternatives in the market.
Maintaining and exceeding committed expectations is a key attribute to customer loyalty
- Failing to provide assurance of facilities and a positive experience, may result in churning of 11% of the customers
- 10% guests are likely to never return to the premium hotels if the sense of luxury is undermined
- 10% guests won't rebook a premium hotel if customer support fails to meet their high expectations because it diminishes the perceived value of the premium price.
The ‘Expectation’ pillar has the highest weightage in defining customer experience; Need for improvement on ‘Resolution’ pillar
Performance across the KPMG Six pillars of Customer Experience
(Weightage of the pillars to the overall experience requirements)
Expectation (23 percent) is the key pillar in defining the overall experience with any premium hotel brand, followed by Integrity (18 percent)
Premium hotels can meet customer expectations by –
- Gather feedback to understand what guests expect.
- Continuously enhancing facilities to exceed guest expectations.
Premium hotels are failing to meet customer needs on ‘Resolution’. Small initiatives can go a long way –
- Offer round-the-clock customer support to address issues promptly.
- Ensure staff are well-trained in conflict resolution and empathetic communication.
- Provide multiple, clear channels for guests to voice their concerns, such as phone, email, and in-person.
- Customize solutions to fit the unique needs of each guest, showing attentiveness and dedication.
- Anticipate common issues and have proactive measures in place to prevent them.
The customer’s willingness to pay more is high across the leading pillars of experience - ‘Expectation’ and ‘Integrity’
The top 5 experience attributes influencing the customer’s willingness to pay a premium
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Prompt and quality support from staff across online/ offline channels
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High-end facilities and services offered across the hotel premises
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Complete delivery on promised brand experience, for the money paid
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Widespread availability of the hotel-chain across locations
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Relevant program structure and personalised benefits, keeping the customer coming back for more
An individual’s willingness to pay a premium is driven by immediate needs. As today’s customer evolves, the focal aspects of premiumisation has shifted from functionality to experience. These aspect may as well translate as personalised convenience, omnichannel communication or even exclusivity in customer support
High-paying guests expect exceptional service
- 35 percent guest feel quality customer support is crucial for premium hotel brands as it goes hand-in-hand with brand reputation
In premium hotels, facilities contribute more to creating a luxurious experience than the level of service provided.
- 32 percent would pay more for better room comfort as well as overall ambience around the hotel premises.
- However, only 21 percent would pay more for better service
Location drives rates for premium hotels
- 28 percent would pay more for a hotel located centrally or near airport, tourist attractions, based on their purpose of stay
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