TSA Solutions: Study finds direct correlation between hotel front desk upgrade sales and positive reviews and customer satisfaction

A recent study found that hotel front desk upgrade sales are directly correlated with positive reviews and customer satisfaction.

The study, conducted by TSA Solutions, Shangri-La Hotels and Brand Karma, analyzed 11,000 online hotel reviews and came to the following findings.

• Customers who chose the paid upgrade service had a review score of 4.6, while customers who received the free upgrade service had a review score of 4.7.

• When asked about “value for money,” customers who received a paid upgrade gave it a 4.2 rating, 25% higher than those who did not receive an upgrade, while customers who received a free upgrade were 33% more satisfied than those who did not receive an upgrade.

The report points out that front desk referrals have a significant impact on this formula, and hotels should train front desk staff so that they can provide appropriate upgrade services to the right customers:

Comparing the impact of front desk recommendations on customers, Brand Karma's total score of 3 points, customers who received upgrades scored 1.3 points, higher than the 1.2 points rated by customers who received free upgrades, and more than twice the score rated by customers who did not receive any upgrades. The lowest satisfaction reviews were provided by customers who declined the upgrade, which shows that hotels need to continuously improve their staff's ability to recommend upgrades.

This finding illustrates a virtuous cycle whereby front-desk upgrades increase revenue, leading to more positive reviews, which in turn lead to more revenue. The revenue impact is significant for all types of hotels.

The research is important for hotel chains that are striving to increase revenues through upgraded services, said Siv Folie, vice president of revenue management at Shangri-La International:

Upgrades are a huge revenue-generating opportunity for us and we have many different room types in most of our hotels.

As we work to shift away from a “free upgrade culture,” the sales skills of our front-office staff and the ability of our revenue management team to better differentiate which customers should receive upgrades are becoming increasingly important. It’s also important to track successes (and failures) so we know we’re doing the right things and can continually learn and adjust.

The following figure reflects the main parts of this study.

Source: Travel Weekly