REPORT FROM THE U.S.—Operators must manage expectations and champion transparency during hotel renovations to avoid complaints and lost revenue from guests, according to sources.
“It’s dollars and cents,” said Richard Sprecher, VP of business development for Aimbridge Hospitality. “If you don’t manage (expectations) everyone will ask for a refund.”
Aimbridge owns and/or manages more than 180 upscale, independent and branded hotels with nearly 25,000 rooms. Over the past year and a half, the company bought eight Embassy Suites properties, with plans to gut lobbies and redo exteriors. Managing guest expectations during construction is an important part of the renovation process, Sprecher said.
The key is to first include information about the renovation on the property’s website, he said. Information about renovations should be distributed as much in advance as possible. Aimbridge also hangs signs in its properties undergoing renovations, which alert guests about ongoing projects. Because a lot of guests are repeat customers, Sprecher said signs are hung months before renovations start.
Robert Avila, director of operations for The Hotel Group, agreed an informative website is imperative. But beyond that, he said the process starts with getting team members excited about the renovations because they are the ones who will be telling the story to guests.
Creating that excitement can be done in a couple of ways, he said. Staff should be shown past successes from other renovation projects. Executives also can discuss design renderings with staff members and answer questions they might have. Then, hoteliers can take sharing those design renderings one step further so that guests can join in on the excitement. For example, at the DoubleTree by Hilton Hotel South Bend in Indiana, a mock guestroom was displayed in the lobby so guests could touch what was to come. Design boards and renderings also were displayed.
Sprecher said hoteliers shouldn’t be afraid to make the communication process fun. At the Embassy Suites Nashville Airport in Tennessee, guests experienced a circus theme when it came to renovation communication. At check-in, guests received a clown nose along with information about renovations. They also were given the chance to win prizes, such as free wine or a drink at the bar. To alert guests of noisy construction projects, staff put a letter in each room. Hard hats with candy also were distributed in the rooms.
Making the experience fun, Sprecher said, is a good way to build guest loyalty.
Building loyalty
CSM Lodging executives know the value of building loyalty, especially when it comes to managing renovations. That’s why the company created a social media site specifically to communicate to guests during renovations.
Executives fashioned Raising-expectations.com to help minimize disruptions. The ultimate goal was to build loyalty, according to Kate Burda, VP of sales and marketing at CSM, which counts 38 hotels totaling more than 5,500 rooms in its portfolio.
“We can manage that expectation prior to (guests) getting there rather than it being a surprise. They feel as though they are part of decision-making process,” she said. “By product, guests satisfaction scores are in jeopardy. We can ask: Did we minimize it?”
On the site, the character Reno Robb takes guests through a five-step journey:
- Razing your interest: Information about the property to be renovated is given.
- Razing our game: Guests are asked for input on the hotel renovations and can vote on certain design aspects of the hotel.
- Razing cane: The renovation process has started, and guest input will be applied.
- Raising the roof: The property is ready to show, with guests ready to …
- Raise your glass: Guests are invited to enjoy the new space and take and share photos.
Burda said the company has “easily” seen a return on investment with the website. Email blasts were sent to top clients—loyalty guests who are rating fans—and guests can book directly from Raising-expectations.com.
“When email blasts went out, we saw those bookings go up,” Burda said.
Executives at InterContinental Hotels Group also realize the importance of communicating to loyal guests. The 88-year-old InterContinental New York Barclay closed in late September to complete a $175-million, 18-month renovation. And communicating to guests during the renovation is top of mind.
“Communication will involve newsletters, a blog and a robust social media presence highlighting details small and large, to include insider peeks at the construction and design process and historical tidbits, which we believe our followers may find interesting, evocative and fun,” Barbara Bahny, director of public relations for the property, wrote via email.
“We want to make sure that (the hotel’s) fans feel that they are part of an exciting process resulting in the hotel’s dramatic renewal,” Bahny said. “Our general manager penned a delightfully heartfelt homage to the renewal of ‘Lady Barclay,’ which was meant specifically for our IHG colleagues around the world. We received such positive feedback that we have edited a version for the public, which we will be included in an upcoming newsletter.”
Minimizing complaints
“Social media is a strong proponent. If you’re not managing the expectations, it can come back to you in bad reviews. It will hurt the future bookings,” THG’s Avila said.
Meeting deadlines also is important because guests are planning around renovation events, he said. But sometimes deadlines can’t always be met. When that happens, there has to be a back-up plan in place to minimize complaints and guest dissatisfaction.
For example, if a renovation is being done on the hotel pool and it’s not completed by the scheduled time, there needs to be an alternative location guests can be sent. Hoteliers should do whatever they can to communicate that the pool hasn’t been completed before the guest arrives, but there is so much information out there that some guests are bound to miss something. Having that back-up plan in place before the guest arrives is essential. Staff needs to know all the details, such as transportation availability, before interacting with the customer. Having this plan in place will help to minimize complaints.
If there is a guest complaint, a staff member needs to respond right away, Sprecher said.
“That’s part of training your staff,” he said. “They need to make people feel important.”
When it gets to the point of a complaint, it’s major, he said. Thus, it’s important to involve the right staff members to appease the guest. There’s a chance a room might need to be comped, but usually offering something smaller can adequately satisfy an upset guest, he added.