In the hospitality industry, KPIs and metrics play a crucial role in evaluating and improving business performance. Metrics like occupancy rates, Online review scores, ADR (Average Daily Rate), and RevPAR (Revenue per Available Room) are essential for assessing financial health, operational efficiency, and customer satisfaction.

However, one of the most important and overlooked metrics for hospitality businesses is CSAT (Customer Satisfaction).

Measuring CSAT (Customer Satisfaction) through surveys, online reviews, and Net Promoter Scores (NPS) is key for businesses to identify areas for improvement and enhance the guest experience.

A McKinsey study(1) shows that a 1% increase in customer satisfaction can drive a 5% to 10% increase in revenue and a 25% reduction in operational costs.

Why is that?

  • Reflects guest experience: High CSAT indicates that guests are satisfied with their experience, which is crucial in the hospitality industry.
  • Improves retention: Satisfied customers are more likely to return, increasing repeat revenue.
  • Attracts new guests: Positive guest experiences lead to recommendations and expand the customer base.
  • Enhances brand- & online reputation: High CSAT scores result in a better online reputation.
  • Drives profitability: Positive guest experiences lead to higher lifetime value and more frequent bookings.

In summary, CSAT is an indispensable KPI for monitoring success in hospitality, but requires a multiprong approach. When managed effectively, metrics empower hospitality businesses to make informed decisions, boost efficiency, and improve customer satisfaction—all of which drive increased revenue.

Learn more about how Customer Alliance can help your hospitality business thrive!

Björn Östberg,
CPO & Managing director

About Customer Alliance

Customer Alliance empowers hospitality businesses to turn guest feedback into strategic insight. Through AI-powered analysis and data-driven tools, hotels can identify what truly impacts satisfaction, track performance over time, and prioritize actions that drive loyalty and growth. From collection to execution, the platform enables smarter, faster decisions that elevate the guest experience and strengthen brand reputation.

Adam Haugh
Marketing Lead
Customer Alliance

View source