Have you ever had the feeling that no matter how hard you try it’s never good enough? When you are in the business of serving people this feeling is never far away. Recent discussions at the 2007 Canadian Hotel Investment Conference suggested that Hotel Companies will need to be more innovative and work harder at differentiating themselves in order to better compete. The major brands might have a hard time accepting this argument, as it does not give credit where credit is due. However, it may be a case of technological service enhancements out growing the intangible frontline customer service experience.
For decades major hotel corporations have worked to create a better product for patrons and owners. Examples of innovations have been central reservation systems, e-commerce, yield management systems, enhanced web services and greater amenities. Each of these innovations have added value to the guest experience through ease of use, availability, and differentiation of product. Hotel Companies have proven they are committed to making guest stays a rewarding experience by reacting quickly to new product offerings. A recent example is how the industry reacted to the widespread use of Blackberries by creating a Web-based customer-relationship management tool that delivers information directly to the digital communications device. In brief the patent pending software called “Claire” allows guests to access information regarding their reservation, hotel, surrounding area and other applicable interests from a digital communications device.
What we are noticing is that a significant amount of the service enhancements introduced in the past decade have been tangible products driven out of the tech industry. This has allowed any number of competitors to adopt innovative ideas and put them in practice in a short period of time. This means that when companies rely on technological or tangible service enhancements, the unique brand concept is only able to survive for a short period of time until the competition enters the market with a like product. Ease of replication has made an innovative market place appear to be saturated with similar products, when in reality it offers the latest advancements. However, in a here today gone tomorrow market place consumers have been quick to forget that these were the latest innovative ideas.
Technological advances towards bettering the customer’s experiences have to some degree had the reverse effect. The focus on tangible customer service enhancements has shifted the focus away from the more intangible human customer service experience. This is not to say the tech advancements were deficient but more to identify that the link between the tangible and intangible service experiences has not yet been mastered. For example, guests go from the ease of booking a non-smoking room online to being greeted by a desk agent who has given away the last non-smoking room and reminds the guest that the online service was merely a request and not a guarantee. We believe it is this disconnect that has some people suggesting the industry is not creating the guest “experience” that guest’s are demanding.
Efforts of matching the human element to the new technologically advanced industry have not been mastered to date. This is proving to be a crucial point, as what seems to be the current differentiator among brands is the quality of the intangible service provided. Consumers are increasingly focusing on the intangible aspect of our service industry. The hotel industry has identified this intangible aspect as “Brand Experience”. The Brand Experience gives consumers an opportunity to spend time thinking about their stay, ultimately capturing the audience’s mind. The intrinsic value of the brand, the part that draws on emotions, may be the future of capturing guests.
Capturing the minds and emotions of patrons will ultimately come down to how service enhancements are implemented at the store level. It is not fair to place the entire onus on corporate office strategic development teams. Owners and operators need to buy into the service philosophy of the flags they represent. Franchisees may perceive technological service enhancements as quick and easy ways to increase the bottom line. When in reality these tools were put in place to aid the operation as a means to an end but not to act as an end product.
To truly compete and set oneself apart owners need to buy into the entire philosophy of building and developing a competent frontline work force. Owners who cultivate a sense of pride in their product can better transfer this intangible emotion to the team that represents them. Through continued frontline education regarding the services provided, workforces will better be able to match the technological advances to the needs of the individual guests. This will ultimately make the link between the tangible tech advancements and the intangible service experience provided at the frontline level.
All parties involved should recognize that their efforts have not gone unrewarded, as better-trained frontline service personnel have historically created value for both consumers and owners. The value comes in the form of increased bottom lines as relationships built between the staff and guests typically create an environment with less price sensitivity and positive word of mouth advertising. In addition, the consistent effort required by all team members to create this environment makes it difficult for competitors to replicate, as a relationship is not material and cannot be purchased.
In summary, it is important to recognize that the hospitality industry is and will always be a team game. Continued technological enhancements are here to stay but keeping our frontline service in balance should be equally as important. Once the disconnect has been removed the full “brand experience” should be possible.
Matthew W. Cornell, Consultant
PKF Consulting Toronto
