Why aren’t people returning to the hotels they love?

Rendering
Sofia Geraghty
By Sofia Geraghty


It is often said that the key to growing a business is by providing exceptional service. And yet, the Agilysys 2024 APAC Hospitality Impact Study has found a startling paradox that is bad news for hoteliers.

Despite 86 per cent guest satisfaction, only 37 per cent of travellers return to hotels they enjoyed.

The survey of over 1,000 travellers from Australia, Hong Kong, New Zealand, and Singapore revealed critical insights into guest preferences and spending habits, highlighting substantial opportunities for revenue growth in the hospitality sector.

  The study reveals that 68 per cent of APAC travellers would increase their hotel spending for personalised experiences, with 73 per cent willing to pay up to 30 per cent more for room upgrades when offered post-booking. Additionally, 66 per cent of respondents would likely spend more if wait times were reduced across all hotel experiences, and 68 per cent would increase spending when a robust loyalty program is in place.

Interestingly, the research uncovered a significant “rebooking paradox” in the APAC market: despite high satisfaction levels (86 per cent) and perceived value for money (61 per cent), only 37 per cent of travellers choose to return to hotels they’ve previously enjoyed.

  “Our research uncovers a clear message: APAC travellers are willing to spend more for tailored, efficient, and memorable experiences,” said Tony Marshall, VP managing director APAC, at Agilysys. “Hotels that fail to offer personalised guest experiences are leaving substantial revenue on the table.”

  The study identified several key factors driving increased spending among APAC travellers. Staff interactions play a crucial role, with 46 per cent of respondents valuing staff who go the extra mile, 41 per cent appreciating personalised activity recommendations, and 30 per cent being influenced by staff recalling previous conversations. Personalised touches also significantly impact, as 40 per cent of guests value being given their favourite room, 28 per cebnt are likely to spend more when restaurant staff remember their preferences and 57 per cent respond positively to small surprises like pillow chocolates.

  The 2024 APAC Hospitality Impact Study emphasises the need for a shift from traditional Revenue Per Available Room (RevPAR) metrics to a more holistic Revenue Per Available Guest (RevPAG) approach. This transition allows hotels to capture the full spectrum of guest spending and tailor their offerings accordingly. “To maximise profitability, hoteliers must leverage advanced Property Management Systems that provide real-time, data-driven insights into guest preferences,” Marshall added. “By adopting a RevPAG focus, hotels can unlock hidden revenue streams, enhance guest satisfaction, and foster long-term loyalty in the competitive APAC market.”

You can read the full study here:  https://info.agilysys.com/l/76642/2024-09-16/cp495v

Feature image: Four Seasons Hotel Osaka. The 37th floor Sky Salon.

Email the Travel Weekly team at traveldesk@travelweekly.com.au

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