As the wheels of travel recovery keep turning, the new hospitality landscape presents fresh challenges in addition to those that linger from the pandemic. With occupancy climbing alongside increasing average daily rates in key global markets, it’s imperative that hoteliers prioritize meeting, and where possible exceeding, guest expectations on-property to drive satisfaction and loyalty.
This is particularly true given the rise of social media. Online reviews and social media influencers have become widely accepted and therefore very persuasive. Hoteliers are going to need to deploy every tool they can to make sure staff are providing better all-round service and guests are kept happy and want to come back for more. But before we analyze this, let’s dive into the numbers.
Occupancy, ADR and the Impact on Guest Expectations
The latest data from Amadeus’ Demand360 business intelligence solution reveals that hotel occupancy numbers are fast approaching pre-pandemic levels. Global hotel occupancy reached 67 percent in first half 2023, just below the 70 percent figure from the same time in 2019. Furthermore, occupancy is now exceeding 2019 levels in major European destinations like Milan, Athens, Dublin and Lisbon for August 2023. Hotels must prepare to take advantage of a new wave of travelers, or risk losing market share and revenue opportunities.
From a hotelier’s perspective, the outlook for ADR continues to be positive. Global hotel rates currently average $181 per room for August 2023, an increase on the $178 figure for August 2019. While the numbers certainly paint a prosperous picture, hoteliers must also remain cautious. The combination of high occupancy and high room rates means that hotels will be full of travelers expecting top-class service for their money.
In addition, ‘revenge travel’ remains prevalent, with people now placing higher value on great experiences as they look to make up for lost time.
With this in mind, the pressure is on for hoteliers to deliver. Even as travel demand remains strong, higher room rates are driving higher expectations. In turn, this makes it crucial for hotels to prioritize guest satisfaction.
In our increasingly digitized world, online reviews and social media influencers now serve as the go-to way for travelers to validate potential destinations. They are more ubiquitous and relied upon than ever, meaning hoteliers must pay close attention to their value offering to enhance and safeguard brand reputation in a market competing to capture an influx of travelers.
Especially since meeting guest expectations is now of paramount importance, opinions shared online now function as the crucial link that reports on the effectiveness of your operational team and communicates this to an online world of potential guests (and potential revenue).
Leveraging Technology to Deliver Value
As bookings soar, technology will play a pivotal role in enabling hotel operations teams to deliver optimal service, especially considering the potential challenges outlined above. Every hotel will approach guest engagement differently, but a powerful tech stack allows hoteliers to be creative in their approach to providing memorable experiences that keep guests coming back.
A connected culture empowers hotel staff to be proactive and responsive in their daily activities. Using service optimization software enables efficient delivery of service, fast communication between staff and task automation. It enables hoteliers to prioritize work to proactively meet guest expectations even before they are explicitly expressed, which not only enhances guest satisfaction but also reduces recovery costs, ultimately improving the bottom line.
By analyzing budgets, expected occupancy levels and planning maintenance in advance, hoteliers can also optimize labor and schedule the appropriate amount of staff. This data-driven approach improves operational efficiency and resource allocation, minimizing the chance for hoteliers to become overwhelmed, especially at the busiest times of the year.
Learning more about individual travelers and loyalty guests can be facilitated by technology-driven profiling tools to record key guest information, including preferences and special needs. With robust guest profiles, hoteliers can anticipate the needs of guests, as well as offer them tailored promotions, discounts and other services based on their interests. This all adds to a premium experience that helps drive loyalty, brand reputation and inspires guests to share their positive experiences online.
The benefits of hotel technology don’t end there. Taking more of a top-level view, adopting the right technology solutions can boost team synergy and productivity through increased visibility; aid staff onboarding and training; facilitate real-time communication for messages, service orders, and report notifications; provide insightful data reports; and streamline housekeeping operations.
Looking Forward
With travel in full swing again, hoteliers must ensure they meet the heightened expectations of guests seeking meaningful experiences. As the prevalence of online reviews allows travelers to be more critical of hotels, hoteliers must similarly utilize technology to hold up their end of the bargain and meet evolving guest needs. By embracing technology, hoteliers can exceed these expectations, boost satisfaction, foster loyalty and protect their brand reputation in the modern era of hospitality.
Peter Waters is executive vice president, Hotel IT Solutions, Hospitality, Amadeus.