Monday, June 7, 2010

A tale of two hotels.

As the saying goes “if you build it they will come”, but they may not come back. How often do you pour over the brochures and spend hours on the web researching to find that gem to make your holiday memorable? You’ve decided to spend that little bit extra because you’re worth it, which of course raises that expectation level even higher. How often does the marketing get you in, only to disappoint with staff failing to recognise the importance of your decision in choosing that particular accommodation.

So to arrive at the 5 star Resort and find a trainee checking you in should be the first sign they may not care as much about you, as they should. The upgrade promised is only half what you expected and when you ask for some extra bits it seems they want to penny pinch you into submission. I see this all the time with major hotels trying to do the low cost airline model and give you a cheaper rate for the accommodation and then bludgeon you with exorbitant prices for breakfasts, internet access, baths, parking and in room videos and dining.

On top of that, staff has no empowerment or training to then sooth over any client issues. They repeat the management mantra of how much extra the on costs are, making you feel they are doing you a favour.

Often this occurs in fabulous locations and you reconsider your initial frustrations and focus on why you chose the destination and just get on with the holiday. This of course won’t solve the issues for the hotel or resort but most people end up voting with their wallet and don’t come back and to add salt to the wound, denigrate the accommodation to their friends. The worst of all scenarios.

A recent hotel stay in Queenstown, suffered from the above. They are fortunate to be situated in the jewel of New Zealand floating on Lake Wakatipu engulfed by snow capped majesty because without the surrounds they would be in dire straits. They have an opportunity to capture the upper end market but their attitude towards their guests along with mismanagement of the cost model will always have them scrambling to regain the high ground.

The above at one end of the spectrum, leads into one of the best at the other end. It’s not enough to build a fabulous edifice of marble and technology to encourage business unless you can man it with the equivalent in staffing. People become the soul of hotels.

The Villas in Seminyak Bali have been around for about 10 years and aim for the upper end of the market along with the Queenstown hotel. Their advantage is their staff, most have been employed since opening, which look for ways to make your stay memorable and go to great lengths to build a relationship that will bring you back, just for them. Is the accommodation as flash as the newest villas being built in Seminyak? Not quite, but the genuine rapport of the welcoming staff, wash over you and The Villas and paint them with all the values you are looking for on your ideal holiday.

This success comes from management understanding and appreciating their guests while looking for CLV (customer lifetime value) to continue building on their foundation of staff before cement. If you build it, no matter how impressive, it is not enough in today’s competitive market. Like software without people, hotels and resorts without engaged skilled staff will not survive.

2 comments:

Unknown said...

CLV - wow you are coming along in the world! I am having the same issues with builders at the moment - would you like fries with that & maybe an upgrade it will only cost an extra $100,000 on the original quote price! ARRRGGGHHHHH!

Michael Green said...

thanks for the blog Oli - I always enjoy them!

Key measurement for me in CLV is NPS - would you recommend our product or service?

In today's social media world that will drive EPS!

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