De-Commoditizing Hospitality: Stop, Reflect and Feel

De-Commoditizing Hospitality: Stop, Reflect and Feel

Hotels at Risk of Losing Sight of Priorities and Chances To Connect With Guests

As published on CoStar.com

There are moments in life that force us to stop, reflect and feel. More specifically, stop what we are doing, reflect on our actions and decisions and take the time to feel and set a path forward.

The pandemic has challenged many of us — and the entire hospitality industry — to rethink how we conduct our business, how we serve our guests and, most importantly, how we act toward our fellow team members. With continued and ongoing uncertainty, we are on a path of commoditization that may serve only to drive individuals out of hospitality. The alternative is to seize these moments and make them transformational.

Decreased travel, rising customer expectations and a continued exodus of talented individuals require all of us in the hospitality industry to stop, reflect and feel. We are being called upon to go beyond the status quo and take a fresh approach to our business. We must be creative in generating new sources of demand, as well as engaging in our communities and in one another. The culture of commodification and our old ways of doing business stand in the way of differentiating our hotels from competitors and serving niche markets. That culture also doesn’t foster active talent management and the meaningful, personalized experiences that create return guests and make our businesses thrive.

Generating new sources of demand to replace a stalled business travel market and the slow return of large group demand is an opportunity to rethink our path forward. Providing our guests with memorable experiences that reignite the joy of travel will be the heart and soul of what makes hotels successful. With today’s new stress, we have lost sight of our priorities. The art of listening is upon us, and it is imperative that we stop to listen. A true “investment strategy” is critical in this regard.

Once we stop, we must take time to reflect. The opportunity of reflecting on our interactions with guests and employees directly impacts each and every one of us. It is important to ask ourselves how that interaction went and how we could have improved it. The opportunity of training comes to the forefront of reflection, as understanding of an employee’s impact on guest interactions cannot be overstated. This specifically entails ensuring that our dedicated hospitality workers reinforce what I have previously called the lost art of service.

In this industry, feeling — not just thinking — is vital. Every guest has a different picture of what the experience is going to be like at a hotel, and we now have the opportunity to create unique experiences that take advantage of the local culture. Room packages can be tailored to the area. Something as simple as offering a short cooking class can provide an intimate group experience that further drives both engagement and profitability. Through this approach, we can further de-commoditize the traditional guest experience while providing today’s travelers with an experience that was exactly what they needed in the moment. The objective is for the service provided to fulfill the guests’ customized needs.

Once the art of service has been restored, it is only a matter of time until customers begin feeling like each experience is unique to them. Every interaction with someone impacts their experience at a hotel. The simple gesture of a smile and saying “you’re welcome” goes a long way. I learned this lesson while working at the Four Seasons Resort Maui at Wailea in the beginning of my career. Engaging guests with simple gestures in anticipation of their needs helped transform their experiences.

For example, this anticipation can be achieved through a welcome email with three questions. But all too often, we miss the opportunity of connecting with our guests post-departure.

Recently I received a post-stay email that was personal, thoughtful and had a tinge of humor, which made me pause and reflect. It allowed me to further reminisce on my experience. Allowing for an additional connection to the hotel. I could feel the individual wanting to further connect ensuring that my needs were met.

No matter what the guest experiences are outside of the hotel, de-commoditization of a hotel experience can make guests feel seen — that their experience was exactly what they needed in the moment. Even a small moment of connection — from our perspective — de-commoditizes a traditional hotel experience.

All of us, including myself, have needed to stop, reflect and feel over the past several years. Hotels — and the hospitality industry generally — have undergone a significant transformation in the 2020s. In part as a response to these changes, hospitality has a vibrant future with many opportunities, such as responsive business models and innovative offerings. And while some factors, such as the pandemic, are out of our control, what we can control is the pace at which we can stop, reflect and feel for the benefit of our customers, our team members and our investments. Not only will it result in higher customer satisfaction, more engaged employees and more satisfied management — it may just have the added benefit of helping a property stand apart from the pack of commoditization.

Rob Tanenbaum is the Principal of Madison Hotel Advisors, a boutique hotel advisory firm focused on transforming hotel assets and asset management teams. Earlier in his career, he joined Host Hotels and Resorts, where he was responsible for a large portfolio of hotels under the flags of Four Seasons, Ritz-Carlton, Marriott, and Hilton. He has also worked for DiamondRock Hospitality, Hilton, Park Hotels & Resorts and PKF Consulting.

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