When Complimentary Service is Uncomplimentary to Service

Get the most “bang for your buck” when comping guests.

Consider a hypothetical: A hotelier gives a complimentary stay or experience to support a special program or fundraiser and the recipient shows up to experience their reward.

When that guest begins to make their arrangements, do you…

A.) Treat them the same as other guests.

B.) Consider what value this guest has for the hotel and its employees if that guest appears to be there ‘for free’ and not directly contributing to the bottom line.

C.) Harness the power of gift certificates and communicate their potential to hotel employee teams.

Based on my survey: I am amazed at how differently properties treat this issue. Some treat the certificate bearer as a pariah and a low man on the totem pole and others place huge value with a welcoming spirit.

What kind of marketing and guest service potential is there behind these awards? Should there be guidelines in place to ensure consistent responses and behaviors for these ‘free’ guests? Could they be powerful new ways to instill or anchor loyalty in new or returning guests? Or, will they end up being ‘FREE” gifts that make NO MONEY?

Some hotels and organizations have a philosophy, procedures, and orientation in place for their employees in both delivering the awards and receiving them for redemption. Others do not. Here’s a look at how both schools of thought can shape your hospitality business.

The complimentary first-impression

When seeking donations and potential awards, some hoteliers recognize the value of the presentation before the award is given.

While a certificate or letter is often the norm, outlining the offering, details, policies and logistics, the packaging and presentation of that gift is quite subjective. It can simply be presented in an envelope or it can be presented as if the award itself was the first stage of welcome/introduction for the future recipient. In fact, the organization presenting the award is actually beginning the “experience” for that future guest.

At the il Lugano Hotel, a luxury boutique property in Ft. Lauderdale, Florida, a comp stay gift to benefit a school fundraising effort, arrived in a beautifully wrapped package, included a soft stuffed bear with the hotel’s logo, presented descriptive and inviting collateral materials and provided a thoughtful and warm welcome letter. Even before the gift was awarded, all those at the school had a fantastic impression of the hotel and the property gained several new fans and potential guests.

Word of mouth spread in a very positive way, based on this very simple and thoughtful gesture.

“At the il Lugano Hotel, we value and foster our relationships with our internal as well as our external guests. Our external guests include our local community. When we have the opportunity to donate to the causes that support our community, it is important that we present the donation in a manner that creates a great ‘first impression,’ said Patricia Coffey, Director of Guest Relations and Chef Concierge at il Lugano. “Then, when the recipient of the donation arrives at our hotel, we strive to continue the experience by providing exceptional service and product. This is a great way for us to market our hotel for future business.”

When the comp goes wasted

Other properties may be thoughtful in providing gift certificates and comps but completely miss the impression-making opportunity of presenting and packaging the hotel. Adding a personal welcome letter from the General Manager and promoting potential experiences and reasons to visit/stay at the property can go a long way in influencing other potential guests and referral sources. The complimentary gift can become a significant touch point in the guest experience before any guests set foot on the property.

How the comp is redeemed can also be a revealing indicator of service and attitude – or not.

When calling another major luxury brand property to redeem a two-night stay, the Public Relations Director, listed as the contact, impatiently answered the phone, expressed no enthusiasm for the excited guest who was calling, explained she was just leaving for the day and asked the potential guest to call back another day.

The guest persisted as plans needed to be made so the hotel contact agreed to check dates. Her response was that the hotel was too busy and then chided the guest for not recognizing the seasonal busy period or for providing alternative dates as noted on the certificate. The certificate did have blackout dates. The certificate did not have “too busy” dates! This hotel’s public relations director closed the door and yanked away the welcome mat before the new guest ever had a chance to enter.

Perhaps what is not so obvious is that when that guest eventually does arrive, they will have many opportunities to spend money beyond their comp nights and to form impressions leading to referrals and repeat business. This small touchpoint of just phoning to get information and make the reservation was not the luxury brand of service that the hotel was promoting. It certainly was not good PR.

On the other hand, at a resort property in the Bahamas, the guest representative who took that first comp guest call could not have been more welcoming. From the first inquiring phone call to each following and confirming email communication, sincere enthusiasm and appreciation for the pending guest was phenomenal.

In fact, the enthusiasm and great feelings generated by the resort’s sales and reservations team were so great that that same guest invited another family to join them with fully paid room reservations. The hotel has already benefitted and will now receive two sets of new guests based on their gracious comp and the service that went with it. The hotel’s management made sure that their sales and reservations teams understood the power of genuine hospitality in converting that guest. Their standard of service applied no matter who was calling.

In-person redemption can be “unredeeming” too. In some cases, guests have reported that the hotel staff assigns a lesser room, based on their coupon or comp award.

The employee’s perception is that the guest is not as important and they need not focus that much effort on the guest with a comp since they are not paying. This short-sighted vision may also short-cut potential revenue.

The flip side is the guest may feel more at liberty to spend more on food and beverage, entertainment and more since they have their room charges covered. They may even extend their stay or plan to come back, based on this initial experience and how they are treated.

They certainly will tell others and can become new loyal guests, a precious commodity for today’s hotel performance goals. The average unsatisfied customer will tell 10-20 people about their negative experience. A disturbing consequence of the initially generous comp offer made by the hotel.

Complimentary service should yield even more compliments, not complaints! Inspire enthusiasm for these excited guests at each point of contact before, during and after and reap your own awards for exceptional service delivery, with our compliments.