Forum for People Performance Management and Measurement - Hotel Study Forum for People Performance Management and Measur | Page 9

somewhat troublesome. It shows a disconnect between how
employees view the hotel brands and customer perceptions and
experiences. This outcome clearly calls for a more coherent and
focused internal marketing practice.
Linking Customer Drivers to Customer Behavioral Spending
A major aspect of the internal marketing model is connecting
customer drivers of the brand to actual hotel visitation and
spending patterns. The study analyzed four metrics of customer
behavior over the previous three years – total amount spent at the
hotel chain, spending per visit to the hotel, the number of nights
visited and the number of overall visits. Statistical models were
used to link the drivers of brand value to these four behaviors.
Guest behavior is measured through the major hotel’s loyalty
program database information from 2003 to 2005. There were 300
customers studied who, on average, spent a total of $869, made
1.2 visits totaling 3.3 nights and spent $724 per visit.
Results for the relationship between the four value drives and the
four behaviors are shown below:
•
•
•
•
Total Spending: Of the four psychological drivers, only one,
Tries to Satisfy, is a significant determinant of total spending
dollars. A 10% increase in a customer’s score on Tries to
Satisfy, yields a 22.7% higher level of customer spending over
the three years.
Spending per Visit: Of the four psychological drivers, only
Tries to Satisfy is a significant determinant of dollars spent per
visit. A 10% increase in Tries to Satisfy yields a 20.3%
increase in the amount customers spend per visit.
Number of Visits: Number of visits was not affected by any of
the four drivers.
Number of Nights: Number of nights was not affected by any
of the four drivers.
Modeling Approach
The model measures the link between the psychological drivers
(predictive variables) and the four metrics of guest behavior
(dependent variables).The model was designed to explain
different levels of visitation and spending behavior as a function of
the four Brand Keys psychological drivers: Strives for Precision,
Fast and Efficient Check-in, Options and Amenities and Tries to
Satisfy Customers.