New Research Examines the Value of the Human Experience in Hospitality

The team at Deloitte Digital has developed a new tool—the Values Compass—to shed light on how hotel brands can harness the power of human experiences to boost revenue and brand loyalty.

The Values Compass measures what truly motivates human feelings—which influence 80 percent of the decisions we make each day—and purchase behavior, mapping fundamental human values such as ambition, curiosity, belonging and certainty. Deloitte used the compass to measure the human values of almost 50 hotel brands across seven different categories, including luxury, upper-upscale, upscale, upper-midscale, midscale, economy and home share.

The findings of “Human Experience (HX) in Hospitality” are compelling and suggest that nailing the basics such as offering guests clean, comfortable rooms and perceived value isn’t enough to differentiate hotels in today’s industry and rather the brands that welcome conversation around guests’ perspective and experience are more likely to succeed.

Deloitte found that “share” ranked as the number one or two value for a whopping 83 percent of brands across all hotel categories. “We analyzed value drivers and found that customers expressed a desire to be social with others; to share opinions and to be heard,” the report states.

Another key takeaway from the project is that luxury consumers value “ambition” and “curiosity” more so than “belonging” and “control,” suggesting that the properties that are able to surprise and subsequently please these guests with experiences will be rewarded.

What’s more, Deloitte Digital’s research highlights the significance of corporations prioritizing franchisee relationships just as they do their workforce as a majority of franchise owners feel unsupported and don’t believe they make a fair profit. “This can undermine a hotel’s ability to deliver on the expectations of hotel guests and the workforce,” the report claims.

Delivering an elevated human experience will likely prove to be the ultimate difference for hotels heading into the next decade as revenue growth has slowed for more than 66 percent of hotel brands in the U.S. over the past five years, according to Deloitte.

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