When Cutting Guest Experience Becomes a Hotel’s Most Expensive Mistake
Poor hotel guest experience does more than damage reputation and loyalty—it drives up operating costs. Learn how to measure and reduce cost-to-serve, and why investing in guest experience is a financially sound strategy.
The relationship between customer experience (CX) and hospitality operating costs is one of those uncomfortable truths that many prefer to ignore… until it is too late. Resources are cut in the belief that money is being saved, without realising that this supposed saving merely shifts the cost to another department or, worse still, to the guest. You get what you pay for, and in hospitality, this saying has never been truer.
When guest interaction times are reduced, welcome protocols are scaled back or staff are not properly trained, the impact is felt straight away. But not in this month’s spreadsheet. It emerges later, disguised as an avalanche of complaints, an increase in calls to the call centre, negative comments on digital platforms, declining loyalty or, most dangerously of all, the silent loss of the dissatisfied guest.
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