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Making customer satisfaction pay in the hotel industry

August 12, 2010 |

In recent years, reports in the business press have questioned the value of measuring customer satisfaction, suggesting that such research does not explain or predict financial performance. A new Cornell University research paper demonstrates now the contrary.

In this report, Cornell University demonstrates that customer satisfaction research, when designed and executed with the prerequisite psychometric and statistical rigor, does in fact yield actionable insights and show clear linkages to actual financial outcomes.

Cornell focus' here on customer satisfaction measurements in the hotel industry and their connection to financial performance.

All hoteliers know that in order to survive they need to attract and retain guests. However, hoteliers also need to know specifically what it takes to satisfy their guests. This report describes the key operational and performance indicators needed to improve satisfaction and presents evidence that satisfying hotel guests yields a measurable financial return on investment. This survey determined that customer satisfaction directly bears on repeat purchases and on the likelihood of making recommendations.

The study found, for instance, that guests who experienced outstanding service were likely to spend more on ancillary items in subsequent hotel stays.

Getting things right is important. Four key performance indicators particularly affected guests

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