By: Jon H. Black, ehotelier
Value for price is consistently a top driver for guest loyalty. Of course the tricky thing about improving perceptions of value is figuring out which levers to pull. You can always reduce price. But price cuts hurt revenue and are easily matched. Brands are much better served by using product and service offerings to improve value profitably.
Last year we broke down value for price drivers by region and uncovered some interesting geographical trends. This year when tapping into our Market Metrix Hospitality Index (MMHI) we compared year-over-year value drivers by region. We found that guest perception of value is down in the Americas and Europe, and up in Asia Pacific. To improve these perceptions, we need to increase value. And to do that we need to understand what drives value. The chart below lists top drivers of value by global region, and shows how they have changed compared to a year ago.
What guests value most about their stay
Data from our MMHI product and service questions reveal how guest preferences have changed over the past year. Below are the 2013 top key drivers of value for price for all three regions, showing which specific elements of a guest’s stay contributed most to their perception of value. The value contribution, derived from a regression analysis, shows how incremental increases in certain variables can directly influence value for price.
Now that we know what guests value, let’s take a moment to interpret these findings and understand why these attributes are important. Download our complimentary report to access these details and learn how guest preferences change across segments.
About the author
Jon H. Black is a product manager and statistical analyst with Market Metrix.