Imagine a hotel where guests feel at home, returning every time they plan some time off. This level of loyalty builds a positive reputation for the hotel while bringing tangible financial benefits.
NB: This is an article from Profitroom
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In this article, we’ll discuss why building guest loyalty is crucial to hotel success, what benefits it brings, and how to effectively achieve this goal.
Benefits of building guest loyalty
- Increasing revenues: Loyal guests are more likely to return and spend more on subsequent stays. Research shows that increasing customer retention by 5% can increase profits by 25% to 95%, which indirectly indicates higher revenues generated by loyal customers.
- Cost savings: Acquiring new guests is much more expensive than retaining existing ones. Hotels can save significant sums on marketing and advertising by focusing on retaining existing customers.
- Recommendations: Loyal guests often recommend the hotel to their friends and family, which contributes to an increase in bookings. Additionally, positive online reviews and mentions on social media help build a positive brand image.
- Improving occupancy rates: Thanks to loyal guests, hotels can enjoy higher occupancy rates even in off-season periods. Repeat bookings help maintain revenue stability throughout the year.
Ways to build guest loyalty
Personalization and high quality customer service are key elements that contribute to hotel guest satisfaction. By tailoring services to the individual needs and preferences of guests, hotels create a deep emotional bond with their customers. This bond leads to increased loyalty because satisfied guests are more likely to return and recommend the hotel to others.
- Personalized marketing
Using CRM systems to track guest preferences allows hotels to create personalized marketing campaigns. This makes it possible to provide guests with offers and information tailored to their individual needs and interests.
Forbes emphasizes that loyalty programs can no longer be limited to a one-size-fits-all model. They must tailor each customer’s experience to their individual needs: “flexibility, inclusivity and technological integration – these are the elements of hyper-personalization that help maintain consumer loyalty.”
Examples of personalized marketing activities include e-mails with special offers or dedicated promotions for subsequent stays.
- Exceptional customer service
A key element of building loyalty is training your staff to exceed guest expectations. The right attitude, courtesy and willingness to help can make guests feel special and want to come back. It is important that the staff is always helpful and responds to guests’ needs quickly and professionally.
Forbes notes that “by feeling noticed and appreciated, customers will be more willing to recommend the brand to their friends, becoming its ambassadors who contribute to the organic growth of the customer base.”
- Guest engagement
Regular communication with guests through newsletters and social media helps to maintain contact with them. It is worth sending guests messages containing special offers, but also regularly reminding them about your brand during major holidays and holiday periods. Automation of communication improves these activities and does not conflict with personalization if your CRM efficiently segments recipient groups.
Organizing interesting experiences and events, such as local trips, culinary workshops or themed evenings, makes guests feel more connected to the hotel and its offer.
