The hospitality industry, like any other industry in this cutthroat competitive era is massively overcrowded, implying that many hotels, big and small, have swarmed the industry in the recent past offering ample choices to the guests, or perhaps spoiling them. A traveller could now easily switch to any property where he wishes to stay in any desired location, basis his/her requirements.
For the hotels, in such a scenario, having the same traveller become their loyal customer or even visit their property again becomes an extremely prestigious account. Repeat guests, as they are referred to, are therefore very important for any hotel and there is enough matter to support the same.
Research suggests that repeat customers spend an average of 67% more than new customers. Moreover, it also costs five to ten times less for a hotel to retain existing customers than to attract new ones. Hotels across the globe are therefore making enormous efforts to hold on to their existing clientele and develop a list of loyal guests, which they can cater in a special way.
Designing a great guest loyalty program has become more important than ever. It is one of the most successful ways to boost your hotel’s repeat business and turn your guests into your brand advocates.
While designing a guest loyalty program that works best for your hotel, there are some broad, guiding principles, which if adhered to would ensure maximum results besides a significant improvement in the hotel’s repeat business.
a) Know Your Guests Well
Who is your guest? What are his preferences, and what kind of rewards would appeal to each of them individually? These are some of the important questions, the answers to which would allow you to gather maximum information about every guest visiting your property. Therefore, design a guest loyalty program that could even be customized to get the most benefit out of it. By being able to tailor your loyalty offerings, you would be able to give your guests exactly what they want, and therefore deliver value for money and guest satisfaction. This, in turn, strengthens your relationship with the guests and increases the chances of higher retention.
