Train hotel teams to stop full refund scammers
Years ago when Promus Hotels Corporation’s Hampton Inn brand was the first major chain to implement the “100% Satisfaction Guarantee,” executives there reported they were able to do so because very few people tried to abuse the system. On the 10th anniversary of this guarantee, Phil Cordell, senior vice president of brand management for Hampton Inn, was quoted as saying, “Although we receive some strange invocations of the Guarantee, we find very little abuse of it. In fact, when we fix a problem on the spot, nearly everyone declines a refund.”
Let’s fast-forward to today’s era, when guest requests for full refunds have gotten out of control. Too many are identifying any minor inconveniences as a reason to demand a full refund, while using the threat of a scathing online review as a weapon.
Surely there are situations that call for the full refund of a guest’s fee, even without them asking, such as when a room is uninhabitable or extremely uncomfortable due to broken heat or AC, no water supply, or a breakdown in safety or hygiene.
However, too many leaders these days are caving to the unreasonable demands of a few highly vocal guests who are gaming the system. Based on conversations with executive level clients, the frequency of these incidents continues to increase.
On top of that, a recent personal incident drove this point home. While attending a social event in my community, I had a conversation with very well-dressed older lady who had just shown me pictures of the second home she owns directly on a Florida beach. She then asked what line of work I was in. After finding out I was involved in hotel training, she immediately launched into a story about how she “always gets her room for free.” She proceeded to tell me how, during a recent stay, all she had to do was to move the mini-fridge out, where she found a line of dust on the shelf behind it. “I called that manager and told him if he didn’t comp my room I was going to blast this picture all over the Internet,” she said with pride.
Lodging leaders, we as an industry have created this situation. Early in my career, I recall well those who would claim that they “knew Mr. Marriott personally” and were going to get me fired if I didn’t give in. As a front-office manager, I worked for a general manager who believed that if a guest complained all the way up the chain of command to him, it was worth giving in to avoid bad “world of mouth” advertising, even when I had tried to hold the line on an unreasonable refund request. But a small minority of today’s guests has taken this too far, and it’s time for us to train our front-line staff to stop these scammers.
First, remind your staff that most guests who complain just want to be heard and for their emotional duress to be validated. Squash any talk such as “All guests these days only complain to get their money back,” and remind them it is a small minority, albeit a loud one.
Train them on the most important component of responding to guest complaints, which is to show personalized empathy, even when the issue seems small. Statements such as, “I can imagine how you feel. I would feel the same way if I had to walk all the way back here to the lobby with the little ones (kids) this late at night.” Genuine empathy provides validation.
Empower your staff to provide small but meaningful gestures of goodwill, such as coupons for free breakfast, drinks, and desert or attraction tickets. Or perhaps a late checkout.
Allow staff to immediately provide reasonable compensation when it is called for, such as comping a room service breakfast that was delivered late or an up-charge for a room with a view when there was construction blocking it that day. Provide guidelines for the staff and first line supervisors as to when and when not to refund.
Train all staff to document all negative guest interactions in the “guest contact record,” starting with calls to reservations. Here’s an example: “Guest called to object to the resort fee and was notified that it could not be waived” or “Guest was notified that king bed was not available for their dates, yet insisted that it be guaranteed.”
When guests complain, service staff should note response times and actions in the guest contact record.
Train supervisors and first level managers not to cave in even when guests make unreasonable threats to write a bad review for minor incidents. Train them to instead document their threat and all the details associated with the incident.
Now, the final step in stopping the scammers falls to the human who writes the responses to online reviews. (Let’s hope it’s still a human and not a chatbot, because readers can tell the difference.) If I cover all tips for responding to reviews, this column will double in size, so I’ll stick with the issue of scammers.
First, thank them for their feedback and indicate that’s how we are able to continuously improve.
Then, gently tell the “back-story” that you will now have if the service team recorded the facts. “However, when our guest service rep offered to move you to another right after you called us, it is understandable that you did not want to change rooms.” Or “There must have been a misunderstanding because our records show that you were notified on (date) that no king beds were available for your dates.”
Finally, when your well-trained front-line staff and first-line managers have already provided a firm “no” to the refund demand, be sure your executive leaders do not cave for no reason, letting your staff know you stand by them.
Doug Kennedy is president of the Kennedy Training Network, Inc. Contact him at doug@kennedytrainingnetwork.com.Since 1996, Doug’s monthly training articles have been published worldwide, making him one of the most widely read hospitality industry authorities.
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