A happy customer is a loyal customer
Customer satisfaction decides the level of success for all businesses. It's especially true for businesses like hotels, restaurants and tour operators where customer service is critical for their success. It's estimated that global business travel spend will reach $1.6 trillion by 2020. Given this growth, it’s crucial for hospitality industries to sustain and grow business. And, customer loyalty plays an important role in driving revenue. While loyal customers drive revenue, customer service is what drives loyalty.
What are the key issues faced in the hospitality industry today?
The rate of growth in the hospitality sector is booming. This has resulted in severe competition for businesses to exceed customer expectations. For such an industry to overcome challenges and meet the ever-changing customer demands, there’s more to the problem than meets the eye.
Today, owing to the industry growth, sectors like hotels, food services, travel, and tourism face four main business challenges:
- Attracting customers: The sudden and rapid increase in competition makes it challenging for businesses to attract new customers. Suddenly there are 20 other websites offering the same service as you in your town.
- Retaining customers: Limited knowledge of customers, behavior and preferences to nurture existing customers. What room does Mr. Darcy like? Does Mrs. Holmes always like nonstop flights?
- Engaging customers: Hard to reach out to customers through different engagement channels and respond instantly. Website? Facebook? SMS perhaps? What is the best way to reach your customer?
- Managing vendors: With vendors and facilities spread across geographically, maintaining up-to-date information is cumbersome. 10 properties, across 4 beaches in Florida tied up with 5 separate vendors. Phew!