Guest Satisfaction and Its Psychological Determinants in Luxury Hotel

About the author

Dr. Rudolph Sinclair 

Abstract

Guest satisfaction in luxury hotels is influenced by various psychological factors that shape customers’ perceptions of service quality and overall experience. This paper explores key determinants such as ambiance, perceived value, and personalized service, which contribute to guest satisfaction and retention. By examining these psychological factors, this study provides insights into how luxury hotels can enhance their services to foster guest loyalty. The findings underscore the importance of addressing the emotional and cognitive needs of guests in creating memorable experiences that encourage repeat visits and long-term loyalty.

Introduction

Luxury hotels aim to provide exceptional service and unparalleled experiences that differentiate them from other segments of the hospitality industry. While tangible factors such as high-end amenities and facilities play a significant role, the psychological aspects of the guest experience are equally crucial in determining satisfaction (Mattila & O’Neill, 2018). This study investigates how psychological determinants like ambiance, perceived value, and personalized service contribute to guest satisfaction and loyalty in luxury hotel settings.

Psychological Determinants of Guest Satisfaction

 1. Ambiance and Emotional Experience

Ambiance refers to the atmosphere of the hotel, including its design, lighting, color schemes, and overall aesthetic appeal. In luxury hotels, the ambiance is carefully crafted to evoke specific emotions, such as relaxation, comfort, and exclusivity (Han & Hyun, 2017). Studies have shown that a pleasant ambiance can positively influence guests’ emotional states, leading to higher satisfaction levels (Lin, 2016). For example, the use of warm lighting and luxurious décor can create an inviting and relaxing environment that enhances the guest’s overall experience.

A luxury hotel wants to show themself better than others hotels of its class by offering something which other hotels might not have thought of like: Improved entrances to the hotel. Improved and discrete security. Key pad entrances to certain private area’s like: pool, tennis courts, spa and beach side to the hotel, so that the guests feel secure; and to keep out those persons, who have not paid for this luxury.

2. Perceived Value and Cognitive Satisfaction

Perceived value is a critical factor in luxury hotel guest satisfaction, as it reflects the guest’s assessment of whether the experience is worth the cost (Chitty, Ward, & Chua, 2017). Unlike budget-conscious travellers, guests in luxury hotels often seek experiences that go beyond mere functionality, expecting a high level of personalized attention and unique offerings. When guests perceive the value of their stay as exceeding their expectations, their satisfaction and likelihood of returning increase (Hwang & Han, 2018). In contrast, if the service or amenities do not align with the guest’s perception of value, it can lead to dissatisfaction, even if the services provided are objectively high-quality.

For example: We can align this to an airline First Class experience: What is a First Class experience? One which excludes the majority of people adding much more quality to individual personal service. Where persons do not have to wait in long lines for check-in and faster customer services.

Valued clients, not to say everyone is not valued. Has an additional cost factor, more staff, better ambience, quality food choices equals more expensive to run; which is likely to have a positive effect for customers wishing to pay more for a tailored service.

If the client in a hotel setting now, can have a much more tailored service, this should result in better client retention and a better overall enhanced experience.

A hotel setting like the airlines value repeat clients, in order to attract them to come back again and again.

The way many luxury hotels do this is by offering for example: a host to escort them personally to their room and in some instances by-passing the check-in desk completely; instead checked in at their room or suite.

Flowers and fresh fruit in the room or suite, along with a personal welcome note signed by the General Manager is a must for a luxury brand hotel. (Sadly not always seen.)

Who would not want to feel valued?

Here we can see perceived value at its best.

3. Personalized Service and Guest Retention

Personalized service, defined as tailoring the hotel experience to meet individual guest preferences and needs, is a hallmark of luxury hospitality (Kandampully et al., 2018). Personalized greetings, remembering guest preferences, and providing bespoke services make guests feel valued and appreciated, fostering an emotional connection with the hotel brand. Research has shown that personalized service significantly enhances guest loyalty and retention by creating memorable experiences that distinguish luxury hotels from their competitors (Sparks & Bradley, 2017).

The Role of Psychological Satisfaction in Guest Loyalty

Guest satisfaction in luxury hotels is not merely about meeting functional needs; it also involves fulfilling psychological needs, such as the desire for exclusivity, prestige, and emotional fulfillment (Tsaur et al., 2020). When guests feel emotionally connected to a hotel, they are more likely to return and recommend the hotel to others. This emotional loyalty is critical for luxury hotels, as repeat customers often represent a significant portion of their revenue (Bowen & Chen, 2018).

Here we find like the airlines “loyalty” to a brand being very important for both parties. Important for the guest because they will expect more service, when they have been so loyal to a particular brand. Important to the brand because they will have an expectation of these loyal client repeat business.

Therefore, understanding and addressing the psychological factors that influence guest satisfaction is essential for long-term success in the luxury hospitality market.

Conclusion

The psychological determinants of guest satisfaction in luxury hotels, including ambiance, perceived value, and personalized service, play a vital role in shaping customer experiences and fostering loyalty. Luxury hotels that prioritize these factors and continuously enhance their personal service offerings can improve guest retention and create lasting emotional connections with their clientele.

If a client sees staff who have been there for years who always recognize them, this gives them a sense of belonging and fosters a home from home experience. Wellness tourism is a very big market now, which has inclusive spa treatments; and enhanced health programs, which has become very lucrative in recent times.

Sustainable hotels although it costs a lot to set up certainly has its advantages. One seven star hotel I know in the Caribbean shined when the whole island was in a drought: because they had a desalination water plant, they were able to keep their gardens looking lush and green and had a stock pile of water for each and every guest in abundance.

Luxury Hotels therefore have to remember, the higher echelon clients are looking for something very different they have not experienced before. If this can be delivered then this type of hotels will always thrive.

Treating “every guest” regardless of race, gender or sexual orientation in a genuine pleasing manner is a must. If this is not done the hotel will fail as a luxury entity.

Psychological training to all staff therefore, is a must as an ongoing program.

Luxury at a five or six star hotel starts from: the hotel driver, security personal, check-in and other staff, along the entire process of their stay. If this is not done then luxury hotels are no different to other segments of the hospitality industry.

While high-end amenities and enhanced ambiance is important. If the perceived interpersonal interactions are not genuinely given to each and every guest, the client will be left with a realization that all this extra cost was to no avail.

References

1. Bowen, J. T., & Chen, S. L. (2018).

 The relationship between customer loyalty and customer satisfaction. International Journal of Contemporary Hospitality Management, 30(1), 213-225. https://doi.org/10.1108/IJCHM-07-2017-0426

2. Chitty, B., Ward, S., & Chua, C. (2017).

An application of the ECSI model as a predictor of satisfaction and loyalty for backpacker hostels. Marketing Intelligence & Planning, 25(6), 563-580. https://doi.org/10.1108/02634500710819941

3. Han, H., & Hyun, S. S. (2017).

 Impact of hotel-restaurant image and quality of physical environment, service, and food on satisfaction and intention. International Journal of Hospitality Management, 63, 82-92. https://doi.org/10.1016/j.ijhm.2017.03.006

4. Hwang, J., & Han, H. (2018).

 A study on the role of perceived value in forming customer loyalty. International Journal of Contemporary Hospitality Management, 30(5), 207-223. https://doi.org/10.1108/IJCHM-01-2018-0187

5. Kandampully, J., Zhang, T. C., & Jaakkola, E. (2018).

 Customer experience management in hospitality. *International Journal of Contemporary Hospitality Management, 30(1), 21-56. https://doi.org/10.1108/IJCHM-10-2016-0577

6. Lin, I. Y. (2016).

 Effects of visual servicescape aesthetics on consumers’ emotions and loyalty in luxury hotels. Journal of Travel & Tourism Marketing, 33(1), 36-47. https://doi.org/10.1080/10548408.2015.1008662

7. Mattila, A. S., & O’Neill, J. W. (2018).

 Emotional labor in hospitality: An analysis of key antecedents and outcomes. Journal of Hospitality & Tourism Research, 42(1), 23-42. https://doi.org/10.1177/1096348019864653

8. Sparks, B. A., & Bradley, G. L. (2017).

 A dual-process model of service encounters. Journal of Service Research, 20(4), 429-442. https://doi.org/10.1177/1094670517710672

9. Tsaur, S. H., Wang, C. H., & Luoh, H. F. (2020).

 Customer loyalty in the luxury hotel industry: Psychological factors. Tourism Management, 77, 104021. https://doi.org/10.1016/j.tourman.2019.104021

Keywords: guest satisfaction, psychological determinants, luxury hotels, ambiance, perceived value, personalized service, customer loyalty, guest retention, hospitality industry