Ways to Measure Hotel Satisfaction

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What is a supreme value for any hotel? Right! These are customers. Read this article to learn how BSC is used to measure customer satisfation in a hotel. Check additional information about hotel satisfaction.

Hotel industry is characterized by a high level of competition. During holiday seasons, hotels and inns start real marketing wars to win loyalty of customers. Indeed, people have a wide choice of hotels that offer various services, from staying a night or two to in a hotel room to holding press conference or a banquet in a hotel. For this reason most hotel owners and managers keep evaluating hotel performance and make plans as to the future development and strategic goals. In this sense, hotel industry does not differ from others. If the hotel does not have a strategy, it will most certainly be wiped out by stronger rivals. Strategic planning is all important for any business, including hotel industry. It is very difficult to design strategic plans for future without being aware of most critical current problems. The hotel owners and top managers evaluate only financial indicators they get information on past events but not about current hotel performance and degree of customer satisfaction. It should be mentioned that hotel customers (guests) are supreme value for any hotel of any size since customers are sources of income. It means that regular customers our regular sources of income. That's why customer satisfaction is a major concern for the hotel management.

What tool is to be used to measure current hotel performance that will demonstrate how well the hotel is doing in terms of implementing strategic goals? The answer to this question is pretty simple. This is Balanced Scorecard which is known of the best strategic management and performance evaluation tool that communicates operational and strategic management. Indeed, BSC has become revolutionary due to the fact that its creators, Norton and Kaplan, decided to include nonfinancial indicators to the list of measures. As known, nonfinancial indicators show current performance of an organization, including customer satisfaction. This is very important for the hotel to be aware of customer needs, requests, desires, complaints etc. By measuring a ratio between new and returning customers the hotel management can evaluate degree of customer satisfaction and compliance of hotel services to customer expectations. Sure thing, financial indicators play the most important role in Balanced Scorecard. It's not a secret that every commercial organization pursues financial goals. However, implementation of financial goals seems to be impossible without improvements in the three other categories of Balanced Scorecard: customer, internal business processes, learning and growth.

Hotel owners and top managers need to pay a special attention to customer perspective. By analyzing customer expectations, needs complaints and requests, top management all a hotel will possess very valuable information that will be used in decision making on optimization of internal business processes, education and coaching of personnel etc. In other words, in order to achieve positive financial results the hotel has to make a unique offer to customers which they will accept. This, in its turn, is only possible through optimization of business processes and improvement of personnel skills, attitudes and knowledge. Customer satisfaction is directly linked to revenue growth and enlargement of customer base.

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