they ’ re providing guests and employees .
However , I ’ m not yet ready to declare mission accomplished . The complex and competitive hotel ecosystem continues to present challenges . What we do have is a blueprint to consider for success in delighting customers . Here are three important elements of that blueprint :
➊ STEP UP YOUR LOYALTY OFFERINGS PwC ’ s 2022 Customer Loyalty Survey shows that hotel guests are far more likely than consumers overall ( 46 % versus 37 %) to give up on a brand or company after a single bad experience . It ’ s clear that hotels need to nurture loyalty from every angle of the guest experience . Start with the booking process and move through the guest ’ s entire stay from check-in to check-out .
That ’ s why I ’ m encouraged to see leading brands stepping up their loyalty offerings . More than 75 % of hospitality executives told PwC that personalizing the customer experience to boost loyalty is a high priority , versus 61 % across all industries . Today , successful hospitality brands connect with loyalty members via notifications outlining customized , discounted options based on their preferences .
The benefits are tangible : After a tech upgrade to its loyalty program , a major hotel brand recorded 50 % fewer missed or adjusted guest stays within loyalty-member billing , compared to the same period the previous year .
➋ BUILD OUT YOUR TECH ECOSYSTEM Delivering highly personalized offers to guests requires a foundational tech ecosystem . Start by migrating legacy software systems to a cloud-based platform . Companies leveraging cloud technology can automate a range of workflows to drive efficiency and reduce routine data collection and entry .
In turn , workers can focus on providing improved customer service based on realtime data analysis and insights generation . Tech transformation can do even more by helping to streamline the hiring process , controlling costs and managing margin .
PwC ’ s 2023 Cloud Business Survey illustrates that cloud-powered businesses across industries can expect continued revenue growth of 15 % in the current business environment . Not only do respondents report fewer obstacles to realizing value from their investment , but they are also doing so at approximately double the rate of their non-cloud-powered peers .
Meanwhile , as generative AI democratizes revenue management across all segments of hotels , technology vendors are diversifying generative AI-enabled pricing tools beyond hotel rooms . For instance , one hotel brand we spoke with is investing in tools to make decisions on hotel room allocation , conference rooms and restaurant pricing . In fact , leaders at consumer-facing companies tell PwC their highest strategic priority over the next three to five years is embedding AI and generative AI , responsibly , into their business models .
➌ UNDERSCORE A SHARED FUTURE FOR TECH INVESTMENT Looking out across the industry , I see a nuanced landscape with brands , owners and operators advancing at various speeds and through different stages of the technology journey . Migrating from legacy systems is rarely simple , compounded by stakeholders with varying needs :
• Brands tend to prioritize upgrades that drive customer loyalty . For example , they can use the rich trove of consumer data from branded apps to help cement brand loyalty as the route to top-line growth . They also want scalable solutions to onboard employees , improve operational efficiency and reduce turnover .
• Owners and operators , meanwhile , typically focus on investments that boost revenue . They are interested in systems that provide an aggregated view of data to illustrate enterprise-wide performance in real-time .
Many agree that nurturing guest loyalty is essential to growth . But how do we get there ? Essentially , by delivering inventory at the right price and at the right time . Without a robust tech ecosystem , that is close to impossible . What does success look like ? A collaborative approach demonstrating long-term value for stakeholders , as well as governance standards for integration .
MAKE THOUGHTFUL CHOICES So where do we stand today ? While tech can be an enabler , hospitality will always require a human touch . As you embark on tech transformation , you should make a range of thoughtful choices about integrating your technology into your overall vision . Ultimately , those choices will keep your guests coming back for the human-powered , tech-enabled guest experience they crave .
Charlotte Kang , national practice leader for Hotels & Hospitality at JLL Valuation & Advisory
Nov / Dec 2023 hotelsmag . com 61