Stop Counting the Pennies and Start Valuing the People: Why Guest Experience Is the Real Bottom Line

At a recent Cumbria Chamber of Commerce lunch, one topic dominated conversation at my table, why so many hospitality businesses seem to be missing the mark. It wasn’t about pricing, energy costs, or wage pressures. The consensus was far simpler: customers are still spending, but they’re increasingly dissatisfied with what they get in return. In other words, it’s not about a lack of disposable income, it’s about disenchantment with the experience.

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I’ve spoken and written often about Purpose and Core Values, two elements that, when lived and breathed, create the kind of authentic hospitality people remember and return for. Yet, too many operators have lost sight of these fundamentals. The industry has become preoccupied with spreadsheets, not smiles. Guests are processed, not cared for.

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Somehow, genuine hospitality has become the preserve of luxury operators, where the service, knowledge, and care justify the higher price points and support the payroll needed to deliver them. But what if that mindset was flipped? What if, instead of treating exceptional experience as the privilege of the few, we made it the foundation for every hospitality businesses?

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Let’s be clear: focusing on guest experience is not anti-profit. In fact, it’s the most sustainable route to profitability. When businesses cut costs to protect margins, the guest experience is usually the first casualty. Corners are trimmed, training budgets are slashed, and staff morale inevitably dips. The result? A downward spiral of mediocrity where customers feel short-changed and operators wonder why loyalty and spend are declining.

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It’s not rocket science. People are happy to pay a fair price for quality, warmth, and care. What they won’t tolerate is paying premium prices for average or indifferent service. A cup of coffee served with genuine friendliness and a sense of pride leaves a stronger impression than one delivered by someone disengaged and under pressure. Guests notice when staff care, AND they notice even more when they don’t.

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When hospitality leaders refocus on guest care and staff development, the financial results follow. Teams that are well-trained, empowered, and aligned with the company’s values deliver consistency, personality, and heart. They create experiences which guests talk about and return for, and that, in turn, protects margins far more effectively than relentless cost-cutting.

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Hospitality, at its core, is a people business. It should not be led by accountants, but by those who understand human connection. Of course, financial discipline is necessary, but it should serve the experience, not dictate it. The best operators understand that profit is the outcome, not the purpose.

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If we can collectively shift our mindset, away from cost control and towards genuine care, meaningful interaction, and pride in service, the industry won’t just survive; it will thrive. Guests will happily 'put their hand in their pocket' when they feel valued, seen, and appreciated. Because at the end of the day, people don’t buy products or services; they buy how you make them feel.

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- Antony Penny