The hospitality industry is growing. IBISWorld reports: “While the Hotels and Motels industry is highly susceptible to changes in the global economic environment, the industry has experienced robust growth over the five years to 2016. Thanks to increases in travel spending, corporate profit and consumer spending, industry revenue has grown every year since 2011, as the economy improved and domestic and international travel rates increased. As a result, the Hotels and Motels industry has outperformed the broader economy over the past five years, driven by a combination of high demand from leisure and business travelers and international tourists. Over the five years to 2016, IBISWorld expects industry revenue to grow at an annualized rate of 4.2% to reach $169.2 billion, as consumer confidence and spending spike, raising revenue 2.4% in 2016 alone.”

In new research by Market Force, we found that consumer loyalty—and the opportunity to capture growth—depends on each hotel’s delivery in six areas of excellence:

  1. Overall condition of the hotel
  2. Value for money paid
  3. Helpfulness of staff
  4. Ease of check-in
  5. Bedding comfort
  6. Safety of guests and belongings

In the research, guests rated their satisfaction with their most recent hotel stays. 16% said the hotel delivered poorly on all six of these factors—and satisfaction with the stay was a very low 6%. In contrast, 29% said their hotel delivered well on all six factors—and 92% of these were highly satisfied with their stay. These satisfaction ratings led to very high loyalty—with hotel brands varying widely in their scores. (We will publish the brand level results in a press release in September.)

These results highlight the enormous opportunity to capture growth in the hospitality industry. Satisfied customers are loyal to the brand—and that loyalty allows hotels to command a higher RevPAR rate (revenue per available room) as shown in this case study. To help you measure customer satisfaction and impact on REVPar—or simply to evaluate your current customer experience measurement programs—call us at 1-877-329-9621. We’d be glad to discuss ideas for helping you improve your guest loyalty and financial success for every location. 

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As Chief Strategy Officer, Cheryl aligns Market Force's strategic direction with our clients' strategic objectives. She oversees the North American client base, Analytics and Insights, Winnipeg Operations and Marketing. She has a Ph.D. in social psychology and broad business experience in both private and public companies.​