one hot air balloon rising above 4 others reflecting the importance for hotels to elevate the guest experience with loyalty strategies

If operational efficiency is about keeping the wheels turning and revenue growth is about fuelling the engine, guest experience is the journey your guests actually signed up for.

NB: This is an article from RMS Cloud

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It’s everything from the first click on your website, to the warm welcome at check-in, to the follow-up email that lands in their inbox after they’ve left.

When you get it right, it doesn’t just make guests happy in the moment, it keeps them coming back again and again. That’s loyalty. And it’s top of mind for hospitality leaders: in our customer survey, 34% of respondents said guest experience & loyalty is their top priority for the next 12 months.

So what does “getting it right” mean in 2025? Curated experiences, smart rebooking, advocacy-driven marketing, and loyalty programs that feel personal, these are the levers that turn guest experience into long-term loyalty.

Why it matters

Happy guests spend more. Loyal guests cost less to retain. And repeat guests become your best (and cheapest) marketing channel, because nothing beats the glowing word of mouth. In fact, research done by Frederick Reichheld (the inventor of the net promoter score) shows that improving retention by just 5% can increase profits anywhere from 25% to 95%.

Beyond the numbers, investing in guest experience builds brand resilience. A hotel or holiday park remembered for effortless service and thoughtful touches is less vulnerable to price wars or shifting trends.

Trends & tips: how to make an impact (in the next 6–12 months)

So how do you actually turn “guest experience” into long-term loyalty?

Spoiler: It’s not about collecting points like Pokémon cards anymore. While point-based loyalty schemes still have their place (especially for business travellers who like their rewards neat and simple), the real shift in 2025 is towards relationship-driven loyalty, emotional connection, memorable experiences, and that irresistible urge to come back for more.

Here’s where to start:

1. Curate and bundle experiences

Becoming more than just a bed-for-the-night by curating activities, partnerships, and add-ons that make your property the hub of the trip. Think adventure packages, stay-and-dine bundles, or collaborations with local attractions.

Trends:

The appetite for experiences is transforming travel.

Since 2019, spending on experiences has surged 65%, compared to just 12% for physical products, with younger travellers leading the way. Over half of Gen Z say they’ll splurge on experiences (Skift, McKinsey, 2024), while 30% of UK millennials book vacations abroad to try new and exciting activities (GWI, 2025).

Together, these stats highlight a clear trend: today’s travellers prioritise enriching, experience-driven trips over traditional travel commodities.

Tips:

  • Audit local experience providers and identify high-quality, authentic options.
  • Bundle them into packages tailored for different guest types, from planners who book ahead to spontaneous “I’ll try anything once” travellers.
  • Use your booking engine, pre-arrival emails, and on-site promotions to make these bundles easy to discover and book.

Read the full article at RMS Cloud