In the travel and hospitality industry, the conversation around customer experience (CX) investment has long been dominated by the pursuit of cost savings. Yet, as the sector emerges from a period of unprecedented disruption, it’s clear that a narrow focus on efficiency alone is no longer enough. Today’s travelers and guests expect more—more personalization, more seamless digital and physical touchpoints, and more moments of genuine delight. For brands seeking to thrive in this new landscape, it’s time to reframe the ROI of customer experience, looking beyond short-term metrics to the long-term value of loyalty, advocacy, and differentiation.
The pandemic fundamentally altered the dynamics of travel and hospitality. Pre-pandemic, business travelers often displayed what could be called “subsidized loyalty”—their frequent stays and flights were driven by corporate policies and expense accounts, making brand allegiance almost a given. Today, with business travel patterns upended and leisure travelers more discerning than ever, loyalty can no longer be assumed. Guests are “dating around,” exploring new brands and experiences, and expecting to be wooed with every interaction.
This shift means that brands must re-earn loyalty at every turn. The old playbook—relying on points balances or habitual booking patterns—no longer guarantees repeat business. Instead, travelers are seeking unique, memorable experiences, whether that’s a seamless digital check-in, a personalized in-room amenity, or a staff member who remembers their name. The stakes are higher, and the margin for error is slimmer.
It’s tempting for organizations to focus on large-scale, easily measurable cost reductions—thinner towels, reduced amenities, or automated check-ins that cut labor costs. But as Publicis Sapient’s sector experts have observed, it’s often the small, thoughtful touches that transform an adequate stay into an extraordinary one. Consider the difference between a flight where the crew greets you by name and offers a warm towel, versus one where every interaction feels transactional. The incremental cost of these gestures is often minimal compared to the potential revenue gained from a delighted, loyal guest who returns—and tells others.
Yet, these moments are frequently overlooked in budget discussions. Why? Because cost savings are easy to quantify, while the value of guest delight is harder to measure in the short term. This leads to a dangerous cycle: brands cut back on the very elements that create emotional connection, only to find themselves competing on price alone, with little to differentiate their offering.
One of the biggest barriers to realizing the full ROI of customer experience is organizational fragmentation. In many travel and hospitality companies, budgets and responsibilities for guest experience are split across marketing, operations, technology, and customer service. Each function optimizes for its own KPIs—conversion rates, cost per booking, labor efficiency—without a holistic view of the end-to-end guest journey.
This siloed approach not only dilutes accountability but also leads to missed opportunities. For example, a marketing team may invest heavily in acquisition, only for the on-property experience to fall short due to underfunded staff training or outdated technology. The result? High churn, low repeat rates, and wasted spend.
To move beyond cost savings, travel and hospitality leaders must build business cases for experience investments that capture both tangible and intangible value. This means:
Service disruptions are inevitable in travel—delayed flights, overbooked rooms, or missed reservations. However, research shows that how a brand responds to these moments can actually strengthen loyalty. Proactive communication, rapid resolution, and a genuine expression of empathy can turn a negative into a positive, building trust and increasing the likelihood of repeat business. Technology can help by enabling real-time monitoring and empowering staff to act quickly, but the human element remains irreplaceable.
For executives seeking to justify experience investments, the imperative is clear: shift the conversation from cost containment to value creation. This requires:
As travel and hospitality brands navigate a rapidly evolving landscape, those who succeed will be the ones who look beyond cost savings to the holistic value of customer experience. By investing in the moments that matter—both digital and human—brands can create lasting differentiation, foster true loyalty, and unlock sustainable growth. The ROI of experience is not just about what you save, but about what you gain: advocacy, repeat business, and a brand that stands out in a crowded market.
At Publicis Sapient, we help travel and hospitality leaders reimagine the business case for experience, combining deep sector expertise with a proven approach to digital transformation. The future belongs to those who delight, not just those who economize.