December 16, 2008 - The preferred answer would be to do both since these are the two key components of the guest satisfaction equation.  Unfortunately, in today�s climate of credit crunch and limited funds doing both at the same time may not be feasible, at least not in the short term.  

Successful operators are often choosing to enhance guest service while delaying or scaling back physical renovations.  Please note that I say �enhancing� guest services; I do not say �expanding�.   I see a major difference between the two.   Perhaps I can best illustrate by giving a specific example.   

A property is already providing room service delivery which is basically the �drop and run� variety; there is also a complementary daily newspaper placed at the guestroom door.

I would suggest enhancing the breakfast order delivery experience with a very simple, yet very noticeable addition.  To wit, when the guest answers the door, the server offers the newspaper to the guest and asks permission to enter the room for the purpose of setting up the food order or pouring beverages.   This is only an �offer�; if the guest declines, the server reverts to the original delivery standard. 

In those cases when the guest accepts, the additional time spent in the room is minimal.  There is no additional labor cost; some guests will actually increase the gratuity.  You have a win-win situation.  Guests who accept the enhanced service will generally be more satisfied and the server is usually properly rewarded; all at no additional cost to the property.

It is important to remember that improved guest service alone will not fully compensate for outdated and/or poorly maintained physical facilities.  Service enhancements can help to maintain a higher level of guest satisfaction when the full scope of desired physical improvements is not immediately doable.  Superior guest service consistently delivered even in trying times also sends a very powerful message to your guests.  They tend to be more loyal and more inclined to stick with you as you weather the hard times; this is particularly true when normal maintenance and upkeep are present.  Needless to say, housekeeping is always of key importance, even more so when new FFE is not immediately feasible.

I would suggest that you view this option only as a short term approach and not as an alternative to regular renovations and upgrades.  You may want to review your current service delivery standards and try to identify any opportunities for service enhancements at little or no capital expenditure.  You may find that service delivery can be improved with short on site training sessions.  In many cases the training needed is actually no more than a reinforcement of the basics.