The latest Luxury Hotel Benchmarking Report from BluSky Marketing illustrates that hotels who consistently deliver an exceptional guest experience could be selling as close to rack rate as possible, generated by non commission sources.
The benchmarking report, based on 4,795 guest responses from a portfolio of 17 UK luxury and boutique properties, illustrates that on average 44% of guests are either repeat guests or are staying at the hotel based on a recommendation or through word of mouth.
Best performing results
The best performing property within the report achieves 71% of such guests. Of the 71% who were repeat guests or heard about the property via word of mouth or recommendation, 76% booked by calling direct, 9% booked through the hotel’s website and 5% emailed, leaving 10% or less of the bookings coming via 3rd party channels (90/10 ratio). Although overall, 16% (84/16 ratio) of all guests book via 3rd party channels.
Worst performing results
However, a hotel within the same benchmarking report received only 17% of guests booking via word of mouth, recommendation or repeat guests. Out of those 17%, only 66% booked via calling direct, email or hotel website, leaving 34% who booked via 3rd party channels (or a 66/34 ratio). Although overall, 40% (60/40 ratio) of all the guests booked via 3rd party channels.
Reducing the difference
The difference between the two properties equates to approximately £135,000 per annum, based on industry standard rates and if they were both 80 room properties, which is spent on the commission from the 3rd party channels.
To reduce this loss, Hoteliers need to drive their repeat guests and recommendations by delivering exceptional guest service, 24/7 356 days of the year, from the moment a guest has initial contact with the hotel until the moment they leave the property.
BluSky Marketing’s Luxury Hotel Benchmarking Report is based on the results from their Online Hotel Guest Experience Survey Programme, which includes The Arch London, Bovey Castle, Lords of The Manor, The Marcliffe Hotel & Spa, Poets House and The Capital London. The benchmarking report is based on results from July to September 2013 and is the 4th to be released by BluSky Marketing.
To download a copy of the Luxury Hotel Benchmarking report, please click here.