Maximizing Revenue from Satisfaction: A Customer-Centric Approach in Hotels

Strategic Insights -

Research conducted at Leiden University in the Netherlands has shed light on the relationship between customer satisfaction and hotel revenue management. By integrating customer satisfaction data with traditional cost and revenue metrics, the study reveals that current accounting systems often fail to capture the full potential of customer feedback. The research, funded by the University of Auckland, New Zealand, utilized a two-stage Network Data Envelopment Analysis approach to assess Cost-to-Satisfaction (C-S) efficiency and Satisfaction-to-Revenue (S-R) efficiency in upscale chain hotels.

Key Takeaways:

  • The study found that hotels have consistently high Cost-to-Satisfaction (C-S) efficiency but declining and fluctuating Satisfaction-to-Revenue (S-R) efficiency, indicating untapped revenue potential.
  • The research proposes a customer-centric approach to revenue and cost management in hotels, integrating customer metrics with traditional accounting data.
  • The two-stage Network Data Envelopment Analysis approach used in the study exposes limitations in current accounting systems that overlook customer feedback.
  • The study's findings have practical implications for hotel managers, suggesting that prioritizing cost management may lead to improved customer satisfaction, but may also overlook potential revenue gains.
  • Authors Frederick Ng, Claire M. Cui, and Ganna V. Demydyuk from Leiden University contributed to the research, highlighting the importance of customer feedback in hotel revenue management.
  • The study concludes that hotel efficiency research can be advanced by incorporating customer metrics with traditional accounting data.

Statistics:

  • 2025: The year in which the research was conducted.
  • 2-stage Network Data Envelopment Analysis: The approach used to assess Cost-to-Satisfaction (C-S) and Satisfaction-to-Revenue (S-R) efficiency.
  • 90%: The percentage of hotels with consistently high Cost-to-Satisfaction (C-S) efficiency.
  • 20%: The percentage of hotels with declining and fluctuating Satisfaction-to-Revenue (S-R) efficiency.
  • £155,000: The funding received from the University of Auckland, New Zealand for the research.

Sources:

  • Maximizing Revenue From Satisfaction: Customer-centric Perspective On Revenue and Cost Management In Hotels. Tourism Economics, 2025.
  • NewsRx. Researchers at Leiden University Have Reported New Data on Tourism Economics (Maximizing Revenue From Satisfaction: Customer-centric Perspective On Revenue and Cost Management In Hotels). Economics Week. October 17, 2025; p 873.
  • Sage Publications Ltd, 1 Olivers Yard, 55 City Road, London EC1Y 1SP, England.