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Hospitality Industry Guest Satisfaction: Hotels Must Develop And Facilitate A "Mobile Device Strategy" That Pays "Careful Attention To Guests' Needs"

“…Given the rapid move to mobile devices by travelers, (hotels must) develop a “mobile strategy” that facilitates the use of mobile devices to make sure a hotel is noticed during a mobile search–and gets the business. Hotels must find a way to become part of guests’ mobile ecosystem, in part by paying more careful attention to guest needs…”

Two new publications from the Cornell Center for Hospitality Research (CHR) at the School of Hotel Administration outline technology issues and the effects of social media on the hospitality industry. A study by Cornell’s Chris Anderson confirms what hospitality operators have long suspected–social media reviews drive hotel reservations.

One particular value of analytics is that they can highlight and resolve problems with guest satisfaction that may not show up in conventional guest surveys. Hotel operators are aware that their property needs to appear near the top of web search results, and analytics can present techniques for making this happen, such as connecting the hotel with local attractions or events.

  • First, he documented the increasing influence of TripAdvisor, as the number of reviews consulted by consumers prior to booking a hotel room has steadily increased over time.
  • Second, an analysis of transactional data from Travelocity illustrated that a 1-point increase on Travelocity’s 5-point scale allows the hotel to increase its price by 11.2 percent and still maintain the same occupancy or market share.
  • Third, by matching ReviewPRO’s Global Review IndexTM with STR’s hotel sales and revenue data, Anderson’s analysis finds that a 1-percent increase in a hotel’s online reputation score leads up to a 0.89-percent increase in a hotel’s average daily rate (ADR), as well as an occupancy increase of up to 0.54 percent and up to a 1.42-percent increase in revenue per available room (RevPAR).

Perhaps most critically, customer reviews have now become a major discriminating point for customers’ determination of a hotel’s quality. Whereas price used to be used for that purpose, customers now put a greater weight on user-generated content on social media sites. Surprisingly, the fashion industry may be a model for how to use social media to promote hotel sales. People like to hear comments on how they look in a new outfit, so the issue is how to translate that kind of interaction to a restaurant meal or hotel stay.

For more:  http://www.equities.com/news/headline-story?dt=2012-11-29&val=770928&cat=service

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