Skip to main content

Is it time to revisit your company's "100% Satisfaction Guarantee" Policy?

Image
By

“The customer is not always right, but your job is never to show them how they’re wrong. Your job is to be professional, courteous, accommodating … even (and especially) under stress.” 

--- Steve Dorfman, Driven to Excel

 

The consumer is always right, isn’t it?

 

For decades, companies have been doing their best to ensure that their customers are 100% satisfied. Many hotels adopted the “100% Satisfaction Guarantee” policy that comes with a 100% refund if customers are not 100% happy. There is nothing wrong with companies putting the customer first, but is it now the time to revisit such a policy?

 

Is the 100% satisfaction guarantee policy dated? 

 

That should not be a concern if few customers abuse the policy. In today’s marketplace, however, such a satisfaction promise has led to more discontent among hotels and customers (Franch, 2022). Plus, service providers in the hospitality and tourism industry must deal with more demanding customers with a smaller workforce now, a situation that is unlikely to improve in the foreseeable future (Kwok, 2022).     

 

Hotel satisfaction is at an all-time low.

 

Customer complaints are soaring. At the same time, consumer satisfaction score had dropped to 71 in 2022, down from the peak of 77 in 2012, according to the American Customer Satisfaction Index’s Travel Study.  

 

How does such a policy not guarantee customer satisfaction? 

 

When consumers know that their expectations are not met, they will complain and ask for a refund. Over time, the industry has trained travelers to believe that complaining equals compensation. Some customers would always look for something wrong to point out and do so in a very disrespectful manner. Such a refund policy also adds a burden to a business when wages and inflation are already at a record high. 

 

The Hampton by Hilton has updated the policy.

 

Hampton by Hilton was perceived as the first-ever hotel chain that offered a 100% Satisfaction Guarantee policy tied with a full refund, even before Hilton acquired the hotel chain in 1999. Now, while “100% Hampton Guarantee” stays in Hampton, Hilton has removed the refund language.

 

Does your company have a 100% satisfaction guarantee policy tied with a full refund too? Is it time to revisit the policy? 

 

References

 

Franch, Sally (2022, July 6). How a hotel satisfaction promise had led to more disconnect. ABC News. Available via https://abcnews.go.com/Lifestyle/wireStory/hotel-satisfaction-promise-led-discontent-86290938

 

Kwok, Linchi (2022). Labor shortage: A critical reflection and a call for industry-academia collaboration. International Journal of Contemporary Hospitality Management. Available via https://www.emerald.com/insight/content/doi/10.1108/IJCHM-01-2022-0103/full/html


The picture was downloaded from FloridaEscape.com. 


This viewpoint was first published in the Hospitality News Magazine. 

Labels:

Comments

Post a Comment

Popular posts from this blog

Luxury vs. Millennials and Their Technology: The Ritz-Carlton (By Julia Shorr)

By
Embodying the finest luxury experience, The Ritz-Carlton Hotel Company, LLC has been established since 1983. In 1998, Marriott International purchased the brand offering it more opportunity for growth while being independently owned and operated. They are known for their enhanced service level as the motto states, “Ladies and Gentlemen serving Ladies and Gentlemen”. The luxury brand now carries 97 hotels and resorts internationally and is attempting to keep the aspects of luxury while keeping up with the trends of the technologically improving generations. The Varying Demographics of the Target Market The Ritz-Carlton’s typical target market includes: business executives, corporate, leisure travelers, typically middle-aged persons and elders, and families from the upper and upper-middle class section of society .   This infers a large range of types of travelers in which all are similar in that they are not opposed to spending extra for the luxurious ambiance. However, with
4 comments
Read more

Is It OK for Hotel Staff to Wear Piercings and Tattoos?

By
Time has changed. I see more and more college students wearing piercings and tattoos nowadays, but is it OK for hotel staff to wear piercings and tattoos? The answer is “no, no, no.” According a report at USAToday.com, customers across the board do not want to see any hotel workers with pierced eyebrow, pierced tongue, tattooed arm, or nose ring. Some may argue that tattooed and pierced workers may seem more acceptable in edgy boutique hotels as compared to the big franchised hotels, but the survey results did not find any differences among a variety of lodging products. Many respondents believe people who wear visible tattoos and piercings are taking a high risk of their professional lives. If you stay in a hotel, do you mind being served by tattooed and/or pierced staff? What if you are the one who makes the hiring decision? References: USAToday.com: http://tinyurl.com/linchikwok08042010 Picture was downloaded from http://tinyurl.com/linchikwok08042010P
13 comments
Read more

How Covid-19 will change the HR department? (by Vivian Tan)

By
With the current pandemic happening, many businesses are having a hard time. It is hard for them to maintain to pay all their employees, and many things have changed on how companies are running during Covid-19. Because of this virus, employees work from home and might lack the motivation to finish their tasks. Many businesses shut their doors infinitely and file for bankruptcy because it is hard to pay their employees, and there are not many businesses coming in. In the hospitality industry, the HR department must create policies and answer questions from the outbreak. It is also essential that they communicate with workers for any updates and make sure that it does not affect their daily operations.     When it comes to covid-19 concerns, the HR department should communicate with the employees for any updates on the virus, such as informing employees about policies, personal hygiene, posting signs around the workplace about symptoms of the virus, and wear masks. Also, asking employee
6 comments
Read more