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Published on August 31, 2025
Brad Peters, Founder, Director, CEO of HRBUniversal & The Plate & Pour Collective Equity Partner Program
In the fiercely competitive hospitality sector, cultivating brand loyalty is increasingly dependent on an exceptional customer experience (CX), as highlighted by Qualtrics. While factors like price and convenience remain primary drivers for initial hotel selections, CX emerges as the pivotal differentiator that fosters long-term guest allegiance.
Key Insights from Qualtrics Research:
- Cost and Convenience vs. CX as a Differentiator: A recent Qualtrics Instant Insights survey, encompassing over 15,000 consumers, underscored that while cost and convenience are paramount in hotel selection, CX is the crucial element for cultivating brand loyalty. This suggests that competitive pricing may attract first-time guests, but it’s the overall experience that keeps them coming back.
- Priorities in Hotel Decisions: The survey revealed that a significant majority of respondents—58%—prioritize helpful customer service in their hotel choices. Following closely, 51% value the ability to earn points and rewards, indicating the importance of loyalty programs in enhancing the overall guest proposition.
- The Escalating Importance of Guest Experience: Isabelle Zdatny, head of thought leadership at Qualtrics XM Institute, emphasizes the heightened stakes for every customer interaction. In an era where travel portals simplify hotel comparisons based on location and price, the guest experience has unequivocally become the primary battleground for differentiation.
Strategic Implications for Hoteliers:
In an economic climate marked by uncertainty, consumers are more price-conscious and keenly focused on value. To not only attract but also retain travelers, hoteliers must proactively enhance their customer experience across all touchpoints. This necessitates a systematic approach to gathering and analyzing customer feedback throughout the entire guest journey—from the initial reservation process to housekeeping services and every digital interaction. The objective is to identify and address “moments that matter”—those crucial interactions that exert a disproportionate influence on customer behavior and ultimately impact business outcomes.
Zdatny advocates for a strategic, rather than exhaustive, approach to problem-solving. Instead of attempting to rectify every minor friction point for every customer—a resource-intensive and often inefficient endeavor—hotels should concentrate their efforts on identifying and prioritizing interactions that have the most significant impact on guest satisfaction and loyalty. This targeted approach ensures that resources are allocated effectively, yielding optimal returns.
Leveraging Mobile Technology for Enhanced CX:
A significant opportunity for improvement lies in the mobile application experience. While the majority of customers prefer direct bookings via a brand’s website, a mere 14% utilize a hotel brand’s dedicated mobile app. This disparity suggests that travelers frequently engage in comparative shopping across various hotel brands, rather than exhibiting a predetermined booking preference. This highlights a missed opportunity for hotels to foster deeper engagement and loyalty through their proprietary mobile platforms.
Hoteliers can significantly enhance their mobile applications by integrating essential functionalities that extend beyond basic booking capabilities. Features such as digital key access, seamless room service ordering, and direct communication channels with front desk personnel can transform the app into an indispensable tool for guests. By expanding the app’s utility, hotels can effectively project the quality of in-person service guests can anticipate, thereby creating a more cohesive and satisfying experience.
Targeting Younger Demographics:
Improving the mobile app experience is particularly effective for attracting and retaining younger patrons, specifically those aged 18 to 34, who exhibit a strong preference for mobile-first interactions. While this demographic may present unique challenges in terms of satisfaction, they also demonstrate a higher propensity for brand loyalty once their expectations are met. By investing in intuitive and feature-rich mobile applications, hotels can cultivate a strong connection with this digitally native segment, securing their long-term allegiance.
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