7 Ways to Increase Hotel Guest Loyalty to Maximize Revenue
May 20, 2021
Article by Ayna Gonzales
In the hospitality industry, nothing is more important than keeping the guests satisfied. When they are pleased with your services, they are more likely to come back again. While getting new customers is essential, hotel guest loyalty can make all the difference in the success of your hotel in the long run.
Loyal guests are the people who keep coming back to your hotel and will recommend your hotel to family and friends. Although they may not be frequent visitors, you can be assured that they will choose your hotel when they decide to travel again. However, encouraging guests to come back can be quite a challenge.
So in this blog, we will discuss everything you need to know about your ideal guests and how to ensure that they stay loyal.
Best Ways to Increase Hotel Guest Loyalty
1. Make a lasting good first impression
Like in many cases, first impressions matter. Bringing your best foot forward at all times is the way to a guest's trust. Their experience does not start the moment they arrive at your hotel but at the time of booking.
That is why it is important to make the booking process as simple as possible for your guests to have a smooth experience. When your guests arrive, go the extra mile by offering an impeccable service that will impress them. Make sure that you are prepared to receive them, their rooms are made up, and certain amenities are displayed to enhance the room's ambience.
2. Prioritize guest experience
As mentioned above, the guest experience begins even before the check-in process. Prioritize hotel guest experience above everything else—provide assistance even when your guests don't ask for it, maintain your hotel room quality and cleanliness, or even tell them about local restaurants or events, local sites nearby that they can visit, sightseeing tours, and other information that will be of interest to your guests. This way, they will know that you value not just their time at your hotel but their overall travel experience.
Asking guests before, during and after their stay about their experience at your hotel also matters. Even a simple message asking whether they need a transportation service to reach your hotel or if they're having a comfortable experience during their stay can go a long way.
These sweet gestures will establish trust and long-term positive bonds between you and your guests.
3. Add a personal touch
Another way to increase hotel guest loyalty is by adding a personal touch customers can look forward to. The more the personalization you give, the higher the guest satisfaction and loyalty you get. That is why it is essential to pay attention to the details of your guests.
Keep in touch with all your guests and connect with each guest personally. Offer a personalized touch to your guests on their special days such as discounted spa treatments on anniversaries or birthdays to make their day more special at your hotel.
You can also give discounts and special packages on occasions like Christmas, New Year, Valentine's Day, or even on company events to attract leisure and business travelers.
Tracking guest data and preferences helps you find unconventional ways to encourage guests to book your hotel again for their next visit.
4. Offer incentives
Boosting guest loyalty can be like a walk in the park if you truly understand your customers' needs and wants. And part of their wants are the words “Free” and “Complimentary” but ensure that the perks you will offer are beyond the usual welcome drinks or free meals.
Create thoughtful incentives that will excite your loyal guests and make new guests turn into loyal customers. Reward your guests' loyalty by offering them exclusive deals and packages that will make their stay more enjoyable and convenient. Offer flexible check-ins and check-outs or free room upgrades. Give a complimentary trip to nearby local attractions. Reward them with hotel referral discounts.
If you want to boost hotel guest loyalty, knowing your guest persona is a must, and the opportunity to make guests feel more special will come easily.
5. Run hotel loyalty programs
In the hotel industry, repeat business is important. Having loyalty programs is among the best approaches to increase repeat guests at your hotel. A properly planned and established loyalty program keeps your hotel top of mind when your guests return.
Through these programs, your loyal guests can get exclusive discounts, privileges, upgrades and more, depending on which perks they value the most.
6. Ask for immediate feedback
Do not wait for a guest to have an issue or make a complaint during their stay.
Seek immediate feedback before, during and after their stay. While there are guests who do not hesitate to complain at the front desk, there are guests who are not vocal at the time of their stay who may not be pleased with their experience at your hotel, causing them to leave negative feedback online that can damage your hotel's image.
You can steer clear of this situation by actively and carefully asking for your guests' feedback during (and before) their stay. So when they are dissatisfied with a particular service, you still have the chance to make it up to them.
Most importantly, actively seeking feedback from your guests makes them feel appreciated because you value their opinion.
7. Price fairness
Price fairness has an impact on both customer satisfaction and loyalty. If a guest does not perceive the paid price as fair, chances are this person is most likely not going to stay at your hotel again no matter how well you performed on other factors. For independent hotels especially, the value of the price they paid for must be guaranteed.
To achieve price fairness, you need a Revenue Management Software (RMS) like ZEN Revenue Management Software (ZEN RMS) to ensure that the prices are according to the demand level.
ZEN RMS features artificial intelligence (AI) to monitor your typical guest, their booking patterns, the length of their stay, their preferences, and the segments of your hotel that attract maximum guests while keeping track of your competitor's pricing structure. This RMS recommends rates that are supposed to lead to the highest possible Revenue Per Available Room (RevPAR).
Beyond strategic pricing, it is also important that you provide value worth your rates. When guests perceive their experience as worth the price they pay, they become loyal patrons to your hotel.
Why repeat hotel guests are better than new ones
Generating sales from new customers plays a huge role in the success of your hotel but the real profit comes from keeping them. When you have repeat guests, your hotel revenues can skyrocket.
Repeat guests are hotel guests that stay in the same hotel many times because they like the rooms, services, and they are loyal to it. It is important to maintain loyalty as they tend to spend more in the long term and easier to upsell with other services because they are already familiar and confident with your hotel's services. Repeat guests can also help to boost your ratings online if they book through OTAs.
In fact, in a New York Times article, Senior Vice President for Marketing at Preferred Hotel Group Casey Ueberroth said that the loyal, engaged guest is driving large amounts of revenue. He added that 10 to 15% of companies make up as much as 60% of the revenue.
This only proves that new customers are valuable, but it is important to remember that those long-term loyal hotel guests are the ones who will speak your name to all their friends, family, and colleagues, that in the long run, will give the biggest impact on your hotel's growth.
Why do you need to know the different types of hotel guests?
As with any other businesses, it’s important to know the different type of guest personas to enable you to develop and implement effective strategies, offers, and marketing messages.
For example, your hotel can encompass certain types of guest travelers, such as luxury travelers, business travelers, family travelers, and even gen Z travelers. By identifying what kind of guests you want to attract, you are in a better position to make adjustments that will give them the best experience and convert them into loyal guests.
Once you have segmented your guest personas, a personalized guest experience will be easier to achieve. Thus, increasing guest loyalty and hotel revenue.
Related article: How to Attract the Different Types of Hotel Guests
If you are interested to know more about maximizing your hotel revenue, check out ZEN Revenue Management Software (ZEN RMS). With the help of ZEN RMS, consider the job done as it is an advanced automated pricing tool that can boost your revenue up to 30%. Not only that, you can enjoy zero set-up fee AND a 3o-day free trial.
Leave the most crucial aspect of your hotel to the industry experts so you have more time to focus on what really matters--your guests.
Book your free appointment now.
Frequently asked questions about guest loyalty
What are the factors influencing the guest loyalty for my hotels?
There are several factors influencing guest loyalty: Hotel quality, guest satisfaction, and price fairness.
First is hotel quality, which includes cleanliness, room quality, and service quality.
Second is the hotel's behavior in satisfying guests' needs. When a hotel is willing to invest a lot for a guest, i.e. upgrading them to better rooms, offering free services, guests are more likely to be loyal.
Lastly is price fairness. Price has to be fair with the services provided in the hotel, as well as if it is compared to the competitor's prices.
What can customer loyalty do for a hotel?
Customer satisfaction can turn normal guests into repeat guests. When you can have a large percentage of repeat or loyal customers, it acts as a firm revenue foundation. The result will be immensely profitable for every hotel owner.
You can also ask your repeat guests to leave reviews for your hotels online, with some incentives, and since they like your hotels, they will be likely to leave good reviews. It will then have a domino effect on the new guests who are interested in the good reviews and come to your hotel.
What type of loyalty program is suitable for hotels?
Point system to form discounts for their next visit, small rewards to improve experience (late check-ins or check-outs, free room upgrade, free parking, free welcome drink, etc).
Room upgrade is actually beneficial as it frees up the popular room type and you can upgrade them to less popular ones (i.e. Family Room). Free coupons, or free breakfast will also work. These are for smaller hotels.
For bigger hotels, can use tiered programs, or some loyalty cards that work across all hotels in the same chain, etc.