Goodwill: The Foundation of Lasting Hospitality
- Posted By Andrew Morgan
I believe the word goodwill has two primary meanings. One is the goodwill we extend to each other being acts of kindness, empathy, and respect. The other is that which forms part of a business’ value, an intangible asset built through relationships, reputation, belief and trust.
In the accommodation industry, these two meanings are deeply intertwined. The way we treat people directly influences the strength and longevity of our business. Accommodation is a service industry and if one does not aim to please, then it may not be a long-term option for them.
The Power of Attitude
At the heart of goodwill is attitude. It’s easy to be pleasant when everything is running smoothly. But true goodwill shines on the difficult days, when bookings are tight, systems are down, or a guest is having a tough time or in need. It’s in these moments that a smile, a calm demeanour, and a willingness to help can make all the difference. These are the interactions that guests remember, and they form the emotional foundation of a business’ reputation.
It Takes Time
Building goodwill in an accommodation business is not an overnight achievement. While there are short term wins, like a glowing review or a spontaneous referral, the real value is built over months and years. It takes time to develop rapport with guests, to understand their preferences, and to create experiences that make them want to return. The goal isn’t just to fill rooms, it’s to build relationships.
The Challenge of Retention
Getting a new customer through the front door is a victory, but it’s only the beginning. The real challenge lies in keeping them coming back. Every guest is a potential long-term client, but they’re also being courted by competitors. That’s why every interaction matters. From the first phone call to the final farewell, each touchpoint is an opportunity to build trust and loyalty.
Here are a few examples that illustrate how small gestures, and thoughtful service can build lasting goodwill in the accommodation industry:
1. Remembering Guest Preferences
A returning guest arrives and finds their favourite chocolate waiting in the room. The motel staff member remembered their preference and made the effort to personalize the experience. That kind of attention to detail makes a guest feel valued and far more likely to return. To quote the theme song from the old television show Cheers, “sometimes you want to go, where everybody knows your name”.
2. Helping in Unexpected Situations
A guest’s car breaks down in the motel parking lot. Instead of just pointing them to a local mechanic, the operator calls a trusted contact, arranges a tow, and even offers a lift to the workshop. The guest is not only grateful, but they’re also sold. That kind of support turns a stressful situation into a story of kindness and therefore, a customer for life.
3. Celebrating Special Occasions
A couple checks in for their anniversary weekend. The motel staff notices the occasion during booking and leaves a handwritten card and a small bottle of wine in the room. It’s a simple inexpensive gesture, but it creates a lasting emotional connection. That couple will likely return and tell their friends.
4. Going the Extra Mile for Families
A family arrives late with tired children. The front desk staff offers to help carry bags, provides colouring books for the kids, and even recommends a nearby takeaway that delivers quickly. The parents are relieved and grateful. That experience becomes a story they share with other families.
5. Supporting Local Community Events
The motel sponsors a local sports event and offers discounted rates for attendees. Guests appreciate the community involvement, and locals begin to see the motel as more than just a business, it’s part of the town’s fabric. That builds goodwill not just with guests, but with the entire community.
Here are some examples of how these situations translate into tangible outcomes.
1. Increasing the Value of a Business
A regional motel with a reputation for exceptional service is appraised at a higher value than a similar-sized competitor. Why? Because its consistent stream of repeat guests and glowing online reviews demonstrate strong goodwill, an asset that directly boosts its revenue, market value and saleability.
2. Personal Satisfaction
A motel owner receives a handwritten thank-you note from a guest who appreciated the extra effort made during their stay. The guest had been going through a tough time, and the kindness shown meant the world to them. That moment of connection reminds the owner why they got into the business in the first place.
3. Friendly Faces Create a Happy Environment
A couple who’ve been staying at the same motel every year for their anniversary are greeted by name and welcomed like old friends. Their presence lifts the mood of the staff and other guests, creating a warm, community-like atmosphere that’s hard to replicate.
4. More Referrals from Loyal Customers
A business traveller recommends a motel to their entire team after a great experience. The next month, the motel hosts five new guests from the same company—all based on that one referral. No advertising spent, just the ripple effect of goodwill.
5. A Core Clientele That Returns Regularly
Every Monday, a motel knows that seven of its 21 rooms are already booked by regulars, contractors, sales reps, or retirees passing through. That 33% base occupancy provides financial stability and allows the business to focus on enhancing the guest experience rather than constantly chasing new bookings.
Working Smarter, Not Harder: The Goodwill Advantage
In the early days of running a business, it’s common to knock on doors, chase leads, and spending heavily on advertising. But over time, seasoned operators learn that building relationships and goodwill is a more sustainable and rewarding path. It’s not about doing less, it’s about doing what matters most.
Goodwill Is Smarter Than Advertising
Advertising can bring people in, but it’s transactional. Goodwill, on the other hand, is relational. It creates emotional connections that lead to loyalty, referrals, and repeat business, all without the ongoing cost of paid promotion.
A Real Example of Goodwill in Action
Several years ago, a friend stayed at a motel in regional Queensland. He chose it based on a glowing recommendation from his sister, who said she always stays there. She likes its convenient location, clean presentation, and most importantly the friendly owners/managers who run the business. After a long day he was heading out to dinner with colleagues. On his way out, he stopped by reception to ask a quick question and said he was about to call a taxi to get to the restaurant. The owner/manager said, “I’ll give you a lift.” My friend politely declined, not wanting to impose, but he insisted. Despite being busy, he took the time to personally drive him to the restaurant. A small gesture of less than 20 minutes out of his day, left a lasting impression. Not only will he return to that motel, but he’s also been telling everyone he knows, including me, to stay there too.
That’s the power of goodwill. You can’t put a price on it. It’s not just good business, it’s good humanity. In this case it has created a walking advertisement and a customer for life.