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Better handling of customer feedback in the hospitality industry could boost the UK economy by £3.2bn, according to a new study.
The Barclays Feedback Economy report found that 59% of the 2,006 consumers surveyed said that online feedback already helps them in determining where they visit, while 45% said they were more likely to leave a review today compared with 18 months ago.
Putting process in place to better manage customer feedback will create a more responsive sector, attracting more overseas tourists and encouraging domestic visitors to stay longer and spend more In turn, this will increase spend per head and benefit the sector’s wide supply chain, the study claims.
The report predicts a ‘more successful’ hospitality and leisure industry has the potential to add an extra £2bn to the UK economy with the impact on the sector’s large supply chain contributing a further £1.2bn.
Mike Saul, head of hospitality and leisure at Barclays, said: “The rise of feedback sites has been a disruptive force within the hospitality industry over the past decade.
“Our research reveals that those working in the UK hospitality and leisure industry feel that these faster, easier and simpler feedback mechanisms are a good thing for the industry – resulting in more agile businesses better able to serve the evolving needs of consumers.”
Millennials were found to be significantly more likely to use online reviews when choosing a place to stay, with 29% of 18-24 year olds and 27% 25-44 year olds citing reviews as one of the three most important factors influencing their decision.
A majority (82%) of the hospitality industry said that feedback has been beneficial for their business and two thirds (68%) think it has been beneficial for the sector as a whole.
Businesses also said that feedback is leading to more trade – 57% of respondents were able to “explicitly” credit online customer feedback with increasing trade, reporting an average 12% improvement in customer numbers over the past 18 months.
Two thirds (66%) of the hospitality industry expect the importance of online feedback websites to increase over the next 18 months and, in response, some 73% of businesses plan to make changes over the next five years.
More than a quarter (27%) will be investing in specialist staff training to manage customer feedback, close to a quarter (22%) expect to appoint a dedicated staff member or team and 13% anticipate working with an external consultancy or specialist feedback management agency.
