04/11/03
Updated 08/08/04
The impressive web
site for Destination Hotels & Resorts leads off with the
statement - "Destination Hotels & Resorts provides gracious
service and wonderful memories in some of the world's most distinctive
destinations." Indeed, their destinations are some of the world's
best.
When this case study was first written, the Hotel Del Coronado was one
of this company's properties. No more! Perhaps the service saga here
was an accurate omen of that oncoming future event - for
high-performing properties are seldom dropped from the stables of
companies like Destination Hotels & Resorts. Read on for a glimpse
of that omen.
Now a part of the KSL
Resorts - perhaps smaller than "Destination" but more
focused on resort properties - the world renowned Hotel
Del Coronado, located in Coronado, CA - is a delightful island-like
town at the seaward doorstep to San Diego. Recently rated one of the
top 10 hotels in the world by USA Today, it's easy to see why
The Del has enchanted guests for more than a century.
But what happens in paradise when something goes wrong?
Perhaps the real test of a resort's ability to enchant is best
measured when an unfortunate and dream-shattering experience befalls
its guests. Keep in mind, this case study about an event that occurred
in December, 2002 was created at a time (April, 2003) when the Hotel
Del Coronado was under a previous management. Hopefully the new
management has taken note - not to repeat the situation.
No matter how seldom the untoward experience, (we will make the
assumption such experiences are not "everyday events" at
such prestigious properties) how the guests are treated - and what
they perceive - is a clear indication of a hotel's management's
ability to appropriately respond.
While one might not expect "parental" care at lodging
destinations of less standing, the very positioning of the Hotel Del
Coronado - as the recipient of the most prestigious awards
- and the resort of presidents - calls for a much higher standard. The
hotel's web site states, "Ten United States presidents have
stayed at the resort, starting with Benjamin Harrison in 1891. In
fact, Lyndon Johnson and every president since have visited The
Del."
So when returning to the Del Coronado - as was their tradition over 54
years to celebrate their wedding anniversary - what was the resulting
perception of management's concern when a loving couple became theft
victims as a purse filled with identification was snatched from their
room as they stood admiring the view from their room's balcony?
Let's crank up the microscope - pierce the marketing hype - and
take a hard look at the handling of such an untoward matter - and the
actual results. You'll be able to read a letter from the victimized
couple's daughter - and its reply from the general manager of the
hotel. You'll be able to judge for yourself whether this was the level
of response and attention guests in paradise might have expected, and
you'll see the ultimate conclusions reached by the long-standing
patrons of the hotel - and their daughter, as well.
Here we go ... first the letter to the hotel from the concerned
daughter. We have changed the names of the disturbed parties
(except for hotel staff members) to protect their privacy.
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April
1, 2003
Director
of Public Relations
DESTINATION HOTELS & RESORTS
10333 E. Dry Creek Road, Suite 450
Englewood, Colorado 80112
I
am writing this letter on the behalf of my parents, John
and Mary Smith. I am very dismayed by they way that they
were treated during their recent stay at one of your hotels. They have been spending their anniversaries at the Hotel Del
Coronado since their honeymoon in 1948.
Unfortunately, during their stay this December 19-20, 2002, they experienced the theft of my mother’s
purse from their room.
They
were outside reading the paper on their deck while the maid
cleaned the room and there was a delivery by an unidentified
person (it is assumed that they were on staff) of a bottle of
wine and glasses provided by the hotel during this time.
Upon discovering the theft of her purse my parents
called the desk for security and my mother found the maid on
another floor and questioned her.
Security did arrive and took a report.
My parents insisted on calling the Coronado Police to
file a report and they came out a short while later.
There is a police report on file and one of the
officers called them a couple of times to discuss the case.
My
mother’s purse contained all of her identification, social
security card, military ID, driver’s license, the keys to
their home and cars and the key to their hotel room.
There was no effort by the hotel staff to offer any form of
conciliatory response to this event nor were they even offered
a change of room. They
received a different key, changed electronically, however,
neither was comfortable in the same room and it completely
ruined their anniversary.
When they checked out, they paid their bill in full and
still no one showed them any form of concern or regret for
their misfortune.
They
came home to begin the process of protecting their identity,
re-keying their home and cars.
This situation caused them both an extreme amount of
stress and anxiety. The
only contact they received from the Del Coronado was from the
hotel’s insurance company and a settlement was made that
covered a small portion of the costs they incurred because of
this event.
Most disturbing is during all this time that there has never
been any communication from the hotel management, not even a
letter or a phone call expressing
concern. I find
it appalling that hotel of
this reputation and rating would treat their guests in
this manner.
Sincerely,
Jane
Doe
(555)
123-4567
cc:
AAA Travel Services
, San
Diego Better Business Bureau, The Thompson Group |
To the organization's credit - the hotel general manager responded
to "Jane's" letter promptly, within a week. Here is
his letter:
|
April
9, 2003
Dear Ms. "Doe,"
Let
me begin by thanking you for taking the time to pen your
concerns and feelings regarding the unfortunate incident that
befell your parents during their stay with us.
These types of circumstances are never welcome or
expected by any of us. I
can understand your parent’s feelings regarding this.
In addition, I am truly sorry to hear that this
occurred during their celebration of their wedding
anniversary. It
is truly a gift to be selected as a destination for such an
intimate event, but to be chosen as that destination for over
54 years is an honor.
In regards to the events of their last visit, as I mentioned
before, situations such as theft are never expected or
welcome. We have
done our best to reduce these instances to a minimum.
By employing a well trained security staff and
educating the hotel staff as a whole as to what to watch out
for and what to react to, we attempt to ensure the safety and
security of those who would grace us with their visit.
Even with these measures in place and training
consistently occurring, we cannot stop every instance, hard as
we may try. It is
only unfortunate that your parents, on such a fine occasion,
were the individuals disturbed.
In regards to the manner in which we reacted, we
realize that each individual must deal with instances, such as
these, in their own way.
To some, this is something that is left behind
immediately. Others can be very traumatized.
As such, we prefer to leave it up to the individual who
has experienced this to dictate our level of involvement.
At the minimum, the offer of law enforcement assistance
and insurance carrier contact is offered. After that, we stand ready to assist if needed.
I apologize if this was perceived as lacking concern.
Please also extend this apology to your parents, to
whom the apology is truly owed.
In regards to any investigations that have taken place, I
unfortunately cannot speak to that.
Once contacted, the Coronado Police Department takes
full ownership of the complaint and will share very little
information with us. To
date, we have no further information to offer.
In closing Ms. Doe, again allow me to apologize for
this unfortunate set of events.
I honestly hope that this event does not take away from
the future celebrations that your parents will have many years
into the future. I
hope that they will join us again and rebuild their fantastic
memories of the Del. I
hope that they will be able to put this event behind them
completely.
Should you require any further assistance, or have any further
questions, please contact me at (619) 522–8063.
It would be my pleasure to assist in any way.
Again, thank you for taking the time to express your parents
concerns, and thank you for taking the time to read this
explanation.
Sincerely,
Giuseppe Lama
General Manager
GL/yd |
And last, the e-mailed response from "Jane Doe" to
the General Manager.
|
April
11, 2003
Dear
Mr Lama and Ms. Dunn:
Thank
you for replying and finally expressing the hotel's 'apology',
one which should have come about 5 months earlier. To
clarify one point, my parents were the ones who insisted on
contacting the police and your insurance agent contacted my
parents directly ...... there was no mention of
this by the hotel. Also the insurance agent was also
surprised that no one from the hotel bothered to contact
them at any time. I understand that resolution of the
case is out of your hands. But, what still disturbs me
is that your staff did not offer them a change of room, a
word of regret or concern at the time of the incident ...
during the balance of their stay nor when they checked
out. That represents very poor customer service on
your part and it should be addressed so that future guests
who have any type of misfortune during
their stay will receive better treatment. I sincerely
doubt my parents will ever stay at the Del again and the
same goes for myself and my family.
Sincerely,
"Jane
Doe"
|
There is a story in customer retention circles about the long-ago
time a steadfast patron of a railroad wrote a blistering letter to its
president - lamenting the poor service and staff's indifference on a
recent rail trip. The patron received a prompt reply on the
president's stationery - at length saying something to the effect that
he had fully appreciated the complaint and he had personally taken
action to see the situation would never again repeat itself.
Unfortunately - inadvertently enclosed with the president's letter -
was a hand-written note instructing his secretary, Miss Jackson, as
follows:
Miss Jackson - send this person "the nut letter."
We'll let you be the judge of whether or not a "nut" letter
was involved in this polite correspondence - but the tale of the tape
is clearly defined by the end result. The long-standing patrons - and
their offspring - will never again cross the threshold of the Hotel
Del Coronado.
When extraordinary events mar the extraordinary experience of a stay
at a great hotel, extraordinary measures are called for. The primary
objective of such measures is to show immediate concern and make every
effort to do those things that will retain the guests' respect and
ultimate repeat patronage.
We find it extraordinarily predictable that providing nothing more
than the ordinary, resulted in lost business for what otherwise might
be a great hotel.
Perhaps you have an opinion about this case study. If so, let
us hear from you.
An After-Case-Study Update on 4/16/03: There's
more to this story - as a result of a Destination Hotels & Resorts
executive's review of the correspondence. He obviously felt more than
the above letter was in order - and he took action to retain a
customer relationship. Here's that letter - perhaps offering the
consideration that should have been made to the unfortunate guests
when they checked out of the Hotel Del Coronado:
|
April
14, 2003
Dear
Mr. & Mrs. "Smith":
Giuseppe Lama, our General Manager has responded to your
daughter’s letter regarding your experience at the Hotel del
Coronado last December. However, after carefully reviewing the circumstances
surrounding this unfortunate incident, I would like to
personally express my apologies.
Please be assured that our procedures are currently being
reviewed as it appears we should have been more responsive.
I deeply apologize for the inconvenience you were
subjected to as a result of these regrettable circumstances.
As a valued guest, we would welcome the opportunity to serve
you again. Accordingly, I have enclosed a gift card entitling you to a
two night stay in resort accommodations.
I realize this does not make up for your previous
experience, but I hope it will go a long way toward rebuilding
a relationship with you.
The Hotel del Coronado has built a world-wide
reputation based on our fine facilities and services, and I'd
like to be able to count you as one of our loyal guests.
Most importantly, I hope you'll allow us another opportunity
to serve you.
Sincerely,
Michael
J. Hardisty
Vice President, Managing Director
|
An Additional After-Case-Study Update on
4/21/03: There's even more to this story! There's been a
change of management at the Hotel Del Coronado. In a press release published at the hotel's web
site - it was announced a new General Manager had been appointed.
Could this case study have anything to do with that? We haven't a clue
- but it certainly came at a time when Destination Hotels & Resorts
headquarters' management was seeing - and responding to - a valued
customer's reaction to what they considered poor service.
More and more companies are learning the importance of sensitivity
to customer perceptions - and they are surprisingly finding out that
many dissatisfied parties just don't like the anticipated
confrontation that voicing their feelings might bring. Here is an
example of just such an incident - where the daughter 'went to
bat" for her parents - who left the scene of their unfortunate
stay without compounding their anguish with an encounter with the
seemingly uncaring staff.
The sincere after-service practice of asking a guest if there was the
slightest thing that could have made their stay better - and that
question being asked by a person empowered to do something about the
answer - is a cost-effective and genuine measure to ensure customer
retention and operational improvements.
We suspect more of this is in order at service establishments
throughout the industry as they strive to differentiate themselves
with truly magnificent performances. Let's hope the new General
Manager at the Hotel Del Coronado - a person with a background in
marketing - will apply those skills as he takes the helm of a truly
classic hotel.
Updated Conclusion: Now the grand old Hotel Del Coronado has
a whole new management team, and a new owner. The property has
undergone extensive upgrading and renovations. It is probably not the
same venue that prompted this case study. Nonetheless, the
"branding" of the hotel is essentially the same - in that
the name "Hotel Del Coronado" has been retained. Probably a
good decision for the world recognition that name has built over the
years, new management must be sensitive to past events - overcoming
negatives for past guests in a way that totally eclipses any sour
experiences. Along with the real estate, a purchase of a legacy
property brings with it an even greater potential - that lies hidden
within the guest list compiled over many years. The ability to contact
past guests - with specificity - to invite them to return to a
"new" experience is a daunting marketing project - but one
having tremendous potential for return business from the very people
who already once decided the Hotel Del Coronado was their destination
of choice.
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