If you are not involved in the hospitality industry, odds are you are not aware that it has been going through a lot of changes lately. It is a lot more behind the scenes stuff, so the average consumer is not very aware of what is going on. Not only is it ever changing, there are a lot of new requirements for hotels to operate and be successful.
One of the most visible changes is the way customers are treated. In recent years, a lot more emphasis has been placed on appreciating the customer. This is especially true in the luxury hotel industry like Steve Farzam does.
With the rise of the luxury hotel industry, a lot more has been expected by the guests saysSteve Farzam. By this we mean that guests are now expecting to get a lot more bang for their buck. The hotels know this, therefore the industry has become very cut throat.
For example, each hotel has to compete with each other in the steps they take to make the guests happy. Some luxury hotels will go as far as offering the guests complimentary steak dinners and other very expensive outings. This leads to hotels trying to compete and one up each other.
This means it is harder for the little dog to survive. No longer can the little bed and breakfast survive against the big name hotels that go these extra steps to ensure their guests are happy. This means that the bigger name hotels are taking over.
The other thing that is changing within the industry is that more and more guests are coming from online. They are able to stay at these luxury hotels for a fraction of the rate they would usually pay. This is good for them, but is not that good for the hotel business says Steve Farzam.
The hotel employees who work at these luxurious hotels are used to working with people who can pay full price to stay at the hotel. Usually, the people who are willing to pay full price to stay at these hotels, are much more willing to tip and tip big. That is the problem with the new customers, usually they do not have as much money they are willing to tip, which means less money for the workers.
This in return means the staff is performing less than they really can. They are starting to realize that more and more guests are coming from the cheap online websites which means they are paying less and also tipping less.
Therefore a lot of the staff members are not giving their all anymore. They know they are not going to get tipped that much regardless of how hard they work, so they are not giving their all. This means that customers are getting more mad and requesting more refunds due to the hostility from the staff.