The Shift in Hotel Customer Journey: From Rooms to Rich Experiences
AUTHOR: Julian Houchin
DATE: August 2024
The Evolving Role of Hotels
In recent years, there has been a significant shift in the way hotels approach their customer journey. Gone are the days when a hotel was simply a place to lay one’s head for the night. Today, hotels are evolving to become facilitators of rich, experiential content that enhances the overall guest experience and excites the senses. This transformation is driven by a growing demand from hotel guests who are seeking more than just a bed for the night. They want to immerse themselves in local culture, indulge in unique experiences, and create lasting memories.
The Importance of Rich Experiences
Hotels are responding to this shift by expanding their role beyond providing a comfortable place to stay. They are now offering an extensive range of in-house experiences and local activities that allow guests to “live like a local.” From curated culinary experiences with the hotel’s executive chef to guided cultural tours and access to local attractions, these enriching offerings enable guests to engage with the destination and feel like they are part of something special. By providing these unique, locally inspired experiences, hotels can activate an elevated guest experience, leading to positive reviews, referrals, and increased loyalty.
Generating Non-Rooms Revenue
In addition to generating non-rooms ancillary revenue, hotels are also focusing on optimizing income through other areas of the hotel by enhancing in-house experiences. For example, hotels are transforming their lobbies and public areas into flexible event and meeting spaces that can be rented by the hour, creating a new revenue stream. They are also offering premium packages that bundle accommodations with exclusive experiences and leveraging their food & beverage outlets as destination dining experiences.
Technology Driven Solutions
To achieve this, hotels and brands are turning to companies like Travel Curious, which provides technology that enables seamless integration into the customer booking flow. Travel Curious’s Activate platform enables hotels to elevate guest experiences and increase TRevPAR (Total Revenue Per Available Room) by creating and managing on-property bookable experiences, integrating local tours and experiences into their customer journey, digitizing guest directories, maximizing customer value, and enhancing customer loyalty.
The Importance of Asset Management
Asset managers focused on adding value and “sweating the asset” understand that generating revenue in non-traditional areas of the hotel is crucial for optimizing income and enhancing asset value. As a result, there is a growing focus on Revenue Per Available Metre (RevPAM), which measures revenue generated per square meter of space. By repurposing underutilized areas, and aligning their offerings with evolving guest preferences, hotels can optimize their physical spaces and amenities to enhance overall profitability and asset value.
The Future of Hospitality
In conclusion, the shift in hotel customer journeys is driven by a growing demand from guests who want more than just a bed for the night. Hotels are responding to this demand by offering rich experiential content that enhances the overall guest experience and excites the senses. By generating non-room ancillary revenue, optimizing income through other areas, and leveraging innovative technology-driven solutions, hotels can increase profitability, enhance asset value, and establish themselves as leaders in the hospitality industry.
