Blanket-sending discount codes only target low-spending guests. High-spending guests respond to offers that resonate, incentivize, and make them feel noticed. Hotels that take promotional offers one step further to hone in on strategic discounts for high-value guests see their Find, Book, and Grow strategies flourish with revenue.
NB: This is an article from Cendyn
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Discount codes don’t automatically bring bookings and soaring profits. That’s because a generalized, one-size-fits-all discount code doesn’t leave a lasting impression with the most valuable audiences. If an offer doesn’t make someone feel like it was specifically intended for them, there’s no sense of connection, and little reason to take notice.
Hotels know personalization is key in this day and age. Research shows that 61% of consumers are willing to spend more with companies that offer a personalized experience. Despite this, only 23% of consumers report having a personalized experience after recent hotel stays.
But ditching the discount blasts in favor of a more targeted approach is about more than this. It’s also about strategy. As a hotel, gaining discounted bookings from the lowest-spending guests – who buy the cheapest rooms and no ancillaries – doesn’t make great business sense. Yet being more targeted and rewarding guests who are likely to spend more is a savvier approach. And it leads to sustainable, long-term growth.
Realize the value of your database
The customers in your database have more potential value than new customers. Returning guests will spend more at your hotel than new guests. And you don’t need to pay for clicks, social media advertising, and use other paid marketing assets to get them through the door.
These are well-established facts, backed up by research.
Acquiring new customers costs five to 10 times more than selling to a current customer. Not to mention the fact that current customers spend 67% more on average than those new to your business. Hotels have more data on guests who have already stayed – meaning they understand their needs so much better. Catering directly to these needs often means guests will spend more, and they’ll create more visibility too, as they’re more likely to interact with the hotel on social media.
You’ve already done the hard work to get each guest’s first booking. Now it’s time to keep them coming back. Loyal guests are incredibly valuable, and you need to sweat this asset. Nurture, connect, and entice until you secure repeat visits.
Realizing that your database is your centerpiece – and probably a partially untapped resource – is an important first step. Segmentation comes next. You could cut and slice your audience in many ways, but what will bring your hotel the best returns?
Targeting high-value guests.
These are guests who have already stayed at your hotel before. You know they’re willing to spend money with you. And with the right incentives, you can encourage them to spend even more.
