In the dynamic and ever-changing world of hospitality, travel companies constantly face challenges in providing guests with a premium experience. Maintaining a successful operation requires agility and a willingness to evolve, yet many hotels have failed to keep pace with their peers. This assertion is not based on mere speculation.
For our project with MGM, Fueled spent months conducting interviews with hotel guests, casual visitors, top-tier loyalty program members, on-the-ground resort staff, and a range of corporate stakeholders. We also gathered quantitative research and reviewed past MGM reports to develop significant conclusions. This comprehensive research highlighted three key areas where much of the industry is falling behind.
LACK OF PERSONALIZATION
The traditional playbook of linear guest experiences has lost its effectiveness. Guests that choose to spend their time at a particular location want to feel like they are more than just a number.
In a time where we now have an abundance of information and data available, personalization can go deeper than ever. This data can be used to tailor services, create targeted offers, and ensure that every touchpoint resonates with the individual guest.
Despite the availability of this data, a significant number of hospitality companies still struggle to leverage it for meaningful personalization. By not tailoring their services to individual guest preferences, hotels miss out on creating memorable and unique experiences.
CUMBERSOME CHECK-IN/OUT PROCESSES
Traveling is stressful and tiring. When guests arrive, they want nothing more than to settle into their rooms and unwind. A drawn out check-in experience that leaves guests mulling around the lobby with their luggage leaves a very unsatisfactory first impression.
As lines and frustration among guests grow, so will the need for more staff to attend to them. Another key finding of our interviews was an industry-wide staffing shortage. Making the most of the limited staff is a massive priority, yet many in the hospitality industry lack creativity in addressing this issue.
Bottlenecks like this mean service suffers across the board. Less staff are available to attend guests, solve their problems, and improve their stay. The ripple effect of inefficiency goes far beyond just the check-in process.
LAGGING LOYALTY PROGRAMS
Another missed opportunity for enhancing guest experiences is the underutilization of hotel loyalty programs. Guests miss out on opportunities that they didn’t even know were available. Hotel loyalty programs can greatly benefit guests, and the industry alike. Despite this fact, adoption rate and sign-ups for these programs are nowhere near where the industry wants.
A significant barrier to loyalty program adoption is friction in the onboarding process coupled with a lack of immediate value. Guests often perceive loyalty program sign-up as an unnecessary extra step, especially when they don’t see immediate or even short-term incentives for onboarding. Many hotel loyalty programs fail to offer rewards that are interesting or exciting enough to motivate guests to sign up.
THE POWER OF MOBILE SOLUTIONS IN HOSPITALITY
Recent data demonstrates the readiness and preference to embrace mobile apps in the hospitality industry. According to a study by Criton, a staggering 73% of respondents expressed their willingness to download a hotel app, with nearly two-thirds preferring to check in and out through such an app.
Despite this clear demand, only 38% of respondents said that they currently use hotel apps. This highlights a significant gap between customer expectations, and the industry’s offerings. Merely developing an app isn’t enough to convince customers to download – it must provide real value to their stay.
While specific examples like MGM Resorts International’s digital transformation demonstrate a mobile experience that provides real value, the potential for mobile technology extends far beyond any single entity. Here are just a few examples of how mobile solutions can address the main issues guests and the industry face:
