[LowKey Podcast with Danica Smith] What guests truly want vs. what hotels think they want

Most hotels are sure they know what their guests want. In reality, however, their assumptions often turn out to be not entirely accurate.

According to Danica Smith, CEO & Founder of MorningStar GX, a true expert in guest experience and our guest on the LowKey by Oaky podcast, there’s a gap between what hotels assume and what guests actually expect and desire. We spoke with Danica Smith to uncover what guests are truly looking for, and the answer isn’t just “free Wi-Fi” or a welcome drink.

Here are the most eye-opening takeaways from our conversation, and why many hotels may be missing the mark.

1. The expectation gap: What hotels think vs. What guests want

One of the central challenges Danica identifies is the gap between what hotels offer and what guests actually expect. It’s not just about services; it’s about meaning.

Take sustainability as an example. Many hotels proudly promote towel reuse programs and throw in a complimentary drink as a reward. But guests are looking for something more transparent and meaningful, such as rooftop beehives, solar energy tours, or visible behind-the-scenes initiatives. According to Booking.com, 58% of guests actively seek innovative sustainability, not just token gestures.

Hotels think they’re ticking boxes. Guests, however, are reading between the lines and finding empty promises.

Tip: Go beyond surface-level services and sustainability practices. Focus on efforts that produce a meaningful impact.

2. Guest experience shouldn’t be just a side project

Taking care of the guest experience shouldn’t be just a side thing. Danica emphasizes a strong link between the guest experience and revenue:

“Guest experience is not a buzzword. It is revenue. And we say this over and over again, but it still feels like we’re not connecting the dots in the right way.”

The idea that guest satisfaction is “soft” or separate from revenue is a myth. Studies, including the Cornell x ReviewPro research Danica referenced, show a direct link:

• 1% increase in guest satisfaction = 0.89% increase in occupancy

• 1% increase in guest satisfaction = 1.4% increase in RevPAR.

In fact, hotels using upselling tools like Oaky not only see more revenue but also report higher guest satisfaction and improved online reputation. Yet, most hotel teams don’t evaluate tech based on guest satisfaction impact, while they should.

3. Your guests crave experiences, not just a room to sleep in

Today’s guests want more than just a bed—they want experiences.

Whether it’s sleep retreats, water-based therapies, or astrology-inspired stays, guests crave experiences that speak to them personally.

The challenge? Delivering that level of personalization with limited staff and high occupancy. Especially when preferences shift not only by demographic, but by context. As Danica brilliantly puts it: “I can be a different guest when traveling for business than when I’m traveling for my anniversary.” One guest, depending on the context of the trip, might have different expectations:

• A guest traveling for business may prioritize efficiency, privacy, and reliability.

• The same guest on a wellness retreat may seek personalization, emotion, and immersion.

• On a celebration or family trip, they may want surprise, joy, and connection.

“What matters most is understanding the emotional and functional goals of this stay, not just this guest."

Tip: Segment your guests to personalize experiences. Create modular pre-built bundles to cater to different moods and intentions, for example, “Sleep Deep” retreat: blackout curtains, pillow menu, sleep tea, late checkout, or “Work & Recharge” stay: ergonomic setup, quiet zone, express breakfast.

4. Guests don’t always know what they want…until they see it

The truth is, guests don’t always know what they want ahead of time. But the moment they see it, the cozy nook bathed in golden light, the perfectly timed solo hike, the breakfast tray that whispers “take it slow”, they feel it. That’s when the magic happens.

So, how can you make that moment happen more often? By curating and presenting experiences in ways that spark interest and inspire. Not with generic labels or feature lists, but with emotionally resonant language and visuals that make people think, “That’s me.”

It might look like this:

• Packages built around feelings, not just demographics.

• A front desk that knows how to ask the right questions to uncover guests’ needs and desires in order to suggest an experience that will fit their mood.

• And most importantly, communicating your offerings at the right moments of the guest journey: post-booking, pre-arrival, and at check-in. Hotel upsell software like Oaky proves effective in covering these crucial moments of the guest journey, elevating the guest experience by allowing guests to book experiences and services they crave in advance.

5. Staff happiness drives guest experience

Here’s something simple but powerful: when your team feels good, your guests feel it too. Danica puts it perfectly: “When you walk into a place where the staff are happy, the guests feel it.”

It’s more than just smiling faces. It’s about creating an environment where employees feel heard, trusted, and proud of what they do. Because when people feel seen and supported, they show up differently, and that kind of energy is contagious. A great guest experience starts behind the scenes.

Tip: Invest in your team’s well-being, listen to their insights, and celebrate their wins. A supported team creates a welcoming vibe that guests can feel the moment they walk through the door. Happy staff don’t just do their jobs, they create magic.

6. Loyalty must be emotional, not just transactional

Today’s travelers want loyalty programs that feel personal, fun, and, most importantly, relevant. Emotional connection trumps accumulated rewards.

Tip: Danica suggests looking to the retail world for inspiration. Can your hotel partner with a yoga studio down the street? Offer guests a Spotify Premium month instead of stale points? Loyalty doesn’t have to stay within your four walls—and perhaps it shouldn’t.

Where to start: The 60-second shift every hotel should make

If there’s one thing you can do today, Danica suggests this:

Make guest satisfaction a point on every meeting agenda.

Whether it’s finance, maintenance, or revenue management, just ask: How is this impacting guest satisfaction? You don’t need hours. You need a mindset shift.