Customer service extends beyond mere feedback. Several business analyses have shown that it also has a direct impact on hotel revenue. It is seen in two ways.
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The first is that excellent customer service encourages clients to keep coming back. Hotels, and any other stakeholders in the hospitality industry, rely heavily on perception and goodwill. There is a percentage of clients that are first-time customers, but this is rather small. Where most hotels make money is repeat customers. This can only be achieved when clients feel welcomed and taken care of. This contributes heavily on goodwill. It is human nature to go where it is safe and known. There is comfort in the expected. This is an angle strongly ingrained by hoteliers. That is why, for the most part, hotels always promote their customer service program. A majority of their advertisements encourage a stay at their resort based on the expectation of good customer care.
The feeling of enjoyment and satisfaction leads to the second impact which is referrals. Consider that a large percentage of hotel revenue is based on repeat customers. A smaller part of that is first-time customers, usually walk-ins or curious tourists. However, hoteliers have learned not to rely so much on this market. Instead, they generate a new pool of potential clients based on referrals by their repeat customers. Customer feedback and reviews are posted online on trusted sites. There is also word-of-mouth. Again, human psychology comes into play here. Clients feel more comfortable entering establishments that their friends or family personal suggest.
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These two factors, when combined, significantly and directly impact hotel revenue.