Hoteliers can drive revenue growth by offering not only experiences that customers want, but experiences for which they are willing to pay a premium. Recently, PwC conducted research to analyze the value of different hotel options. The research reveals that issue resolution and in-room amenities are features most sought by customers.
Unlike traditional methods of consumer research, PwC’s Experience Radar 2012 measures the features that customers value as they select a hotel, not just features they like. The difference is that valued features are those for which customers are willing to pay more. The study is based on responses to an online survey from a sample of 900 U.S. consumers—600 leisure travelers and 300 business travelers.
Experience Radar 2012 identifies certain, important features that guests have grown to expect from their hotel experiences. These are the must-have features, with low economic returns. Notable features that customers do not want to pay a premium for include style and décor, flexible cancellation policies and reward points.
In contrast, Experience Radar 2012 also identifies features, such as issue resolution and in-room amenities, that guests find important and for which they are willing to pay a premium. Leisure guests reported they were willing to pay a 20-percent premium for best-in-class issue resolution, while business guests reported they were willing to pay an 11-percent premium. Also, this feature affects a hotel’s ability to retain customers.
Eight out of 10 leisure guests are influenced by well-handled issue resolution during a previous stay when rebooking.