Case Study #2
Client: Luxury Hotel
A Luxury hotel was seeking ways to increase high-end client loyalty through unique guest services without overextending staff or expenditures. The hotel owner brought in The Mithra Group to assess the situation and devise solutions.
Problems That Mithra Identified And Mithra Solutions:
- Name change: Room Service and in-room mini-bar would now fall under the category of Private Dining. This simple name change raised the guests’ perception of the hotel’s product from standard room service to a more personalized and exclusive experience.
- Complimentary drinks: All Private Dining bars would offer complimentary non-alcoholic beverages because luxury guests do not want to be nickeled and dimed. The insight was that guests at this level do not over-indulge in beverages just because they are free; however, there was a noticeable increase in both alcoholic beverage consumption and room service usage as guests used the complimentary beverages to entertain. This dual increase led to higher profits.
- Customized services: All private dining bars were customized to individual guest preferences and noted on the guest’s dossier. This resulted in positive guest survey comments and positive comments to hotel personnel about this service. Guests loved the surprise element of finding their favorite beverages pre-stocked in their room’s bar.
- No Service Charge Policy: All fixed service charges were eliminated from private dining deliveries. Again, eliminating the "nickel and dime" perception.
- Expanded Private Dining 24/7 Menu: A wider variety of anytime and less formal selections were added to the menu. This larger selection encouraged guests to order items in different situations.
- Elimination of a fixed gratuity on private dining orders. With a fixed gratuity, there is no incentive for staff to deliver service above and beyond. Ironically, the no fixed gratuity policy motivated staff to deliver better service. The result was an increase in private dining orders with this new policy. Guests were pleased to include a gratuity based on staff service rather than a gratuity forced on them. Staff reported increased gratuities and higher personal satisfaction.
Mithra Overall Results: The Mithra Group identified Room Service and the Mini-Bar as two basic amenities that increase guest loyalty and add an element of surprise and appreciation. These new policies outlined above received extensive coverage in the trade and consumer travel media, directly resulting in increased and repeat hotel visits with a major positive impact on the hotel’s bottom line.