The Hidden Cost of a Hotel Stay Hoteliers Don't Know About
What is the cost of a night at your hotel? For many travelers, it is not the dollars listed on your website or Expedia. Luxury travelers ask themselves, “If I stay here, what will be my ROI of my time spent?”. In other words, if they spend their most precious resource, their time, at your hotel, what experience will their time investment yield?
I've had countless guests, after paying $800 for a weekend glamping stay, stop me to thank me for having this company (there is no greater honor in business than this). Are my beds more comfortable than Hilton? Is my staff friendlier than the Four Seasons? I say yes to both, but that's not what makes such an impression on my guests.
What are my guests buying? Experiences.
And these experiences become memories.
A guest will likely forget their stay at a flagged hotel the night before, but they will always remember waking up to a spectacular ocean view.
I will never set up a glamping hotel in an average location. Some may say glamping is so hot, one could set up almost anywhere. But since stunning natural settings foster more memorable experiences, I will only use great locations to contribute value.
But this is just one of many experiences I layer that make a glamping stay valuable.
By contrast, if a guests books a luxury stay and is underwhelmed, a refund will not reimburse their precious vacation time wasted.
This also goes for many business travelers who have any free time during their stay.
Does this mean a great experiential hotel can be lackluster in traditional areas? To the contrary, safety and cleanliness are still the foundations upon which experiential hospitality is built. Staff that care and are empowered to make a guest happy are more important than ever.
How does a high guest ROI impact a hotel? If a product, travel or otherwise, makes a customer happy, they will gladly pay a premium and tell everyone they know. I say this with first hand knowledge as word of mouth is my largest revenue channel.
Takeaway: The real cost of a hotel stay is not measured in dollars, but the precious free time a guest spends at your hotel.