Travel and Hospitality News / Premier Hotels and Resorts

A Look at the Hospitality Industry: Which Hotels Rise and Fall

Via: ReleaseWire

Updated 10:26 AM CDT, Tue, May 07,2019

Kyiv, Ukraine -- (SBWIRE) -- 05/07/2019 -- Like every other industry in the country, the hospitality industry has experienced this economic downtown in full gage. Hoteliers have been competing for business by figuring out how to create a valuable guest experience. The most apparent way to create value is by the pricing of your product/service. To stay profitable, hotels must charge guests different rates depending on demand.

Thus, effective yield management is extremely important within the industry. In doing as such, guests are likely to experience fluctuations in their value perception. Since value is the relationship between price and satisfaction; it is the difference between cost and benefit that makes all the difference. The lower the price, the lower the standards for satisfaction; but as the price rises, the service benefits ought to increase accordingly.

The hoteliers of the best hotels in Kyiv, Ukraine explain that due to the complexity of the guest experience, guests are likely to search for evidence of value and satisfaction from three distinct sources: 1] people, 2] process, and 3] physical environment, also known as the 'servicescape.' These surroundings are the elements each business needs to assess for loop holes.

As the hotel industry continues to recover from the economic crisis and rising rates, it seems hotels are following the footsteps of the airline industry by charging more and providing less. According to a J.D. Power and Associates study of ~55,000 American and Canadian hotel guests between May 2017 and May 2018, guest satisfaction across luxury, upper upscale, upscale, mid-scale full service, mid-scale limited service, economy/budget and extended stay hotels has been rising.

Within each segment: reservations, check-in/check-out, guest room, food and beverage, hotel services, hotel facilities and costs and fees are considered. Overall, guest satisfaction has risen since 2017. Satisfaction with check-in/out, food and beverage, hotel services and hotel facilities are at new highs since 2017, and satisfaction with guest rooms has also risen significantly.

As success relates to customer satisfaction, it seems the staff might be the key to hotel success. Satisfaction is significantly higher among guests with a high opinion of hotel staff. It's also good for business since these guests are more likely to use various hotel services, like eating at a hotel restaurant.

Moreover, how a person books their hotel stay is also correlated to their satisfaction. The study found that guests who book their hotel stay with online travel agencies [Orbitz, Expedia, etc.] tend to be less satisfied with their stay than those who book directly with the hotel website or over the phone.

Online customers tend to be more price-sensitive, have lower levels of satisfaction with their stay, are less loyal to hotel brands and tend to report more problems.

USA Today reported on the hotel brands that ranked highest in guest satisfaction in their respective segments.

Luxury: The Ritz-Carlton (for the fourth consecutive year)
Upper Upscale: Kimpton Hotels and Restaurants
Upscale: Hilton Garden Inn (for the third consecutive year)
Upper Midscale: Drury Hotels (for the 13th consecutive year)
Midscale: Wingate by Wyndham (for the fourth consecutive year)
Economy: Microtel Inn & Suites by Wyndham
Upper Extended Stay: Staybridge Suites (for the second consecutive year)
Extended Stay: Home2 Suites by Hilton

It is important for hoteliers to assess this list and see where their competition stands in comparison. As stated in an article by SIS International Research, in order to succeed, an organization needs to compete in the same channels as its competitors. Once you grasp their tactics, you can utilize some similar strategies with your added expertise to give your business a competitive edge.

This idea is dubbed as knowledge management – a vital tool in allocating expertise in the adoption of insights and experiences. Knowledge is a strategic asset and knowledge management encourages the sharing of this asset to enable organizational learning.

Competitor analysis is vital in this economy more than ever, because it tells you what customers like about another brand over yours and why, and it gives your business the chance to redeem itself and rise above the rest.

About Premier Hotels & Resorts
Premier Hotels and Resorts, a hotel chain in Ukraine, offers professional and high quality services to make sure your stay at our hotel is as comfortable and enjoyable as possible.

For more information on this press release visit:
http://www.sbwire.com/press-releases/a-look-at-the-hospitality-industry-which-hotels-rise-and-fall-1192153.htm

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