Guest Loyalty Program in Hotels

Hospitality and Travel

Hospitality business is always at the brunt end of the stick. It experiences the most brand disloyalty or brand indifference by guests. Acquiring new guests and retaining existing ones has always been an overarching challenge. Therefore becoming a customer engaging brand is only sure-fire method to sealing the deal of customer loyalty.

To change this, changing focus is the need of hour. Putting focus back on the guest by talking to them in the language they understand will largely bring you success.

Incentiwised helps you walk the extra mile and get that edge on your customer’s insight. It picks minutest behavior change and pattern in the consumer and formulates a detailed report. With this deep level analysis, you can tailor your offerings to individual or institutional buyers for longer customer retention.

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You get Incentiwised advantage of rewarding loyal guests and spenders with bespoke offers that fit their preferences. This data act as the starting point to launch marketing campaigns that delivers high conversion and more revenue.

Since there are so many pros to customer retention, every company wants to enhance the retention ratio. Several studies point to significant link between customer satisfaction and retention (Bolton, 1998; Cronin & Taylor, 1992). Customer’s repeat purchase always is closely linked to their fulfillment with the first purchase (Sirgy and Tyagi, 1986). Thus, it is vital for hotel management to understand the noble bond between customers’ satisfaction and customer retention (Sim, Mak, Jones, 2008).

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The same study found out that ambiance and personalized services are two significant indicators of customer satisfaction. Hotel focuses more on the service that is delivered by employees who have direct contact with customers. Whereas ambience is more concerned with the atmosphere, architectural design, colour harmony and décor. It is suggested for hotels to provide a high level of service and maintain their hotel to perfection.

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Sonal Arora

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Another incredibly strong correlation is observed between customer satisfaction and hospitality, it is crucial for a hotel to get a firsthand account of the service they offer. This can be done by observing at the customer journey. As stated by experts, a customer journey mapping strategy enables hotels to identify the desires and expectations of each guest and provide appropriate services at each touch point during their stay.

So, when a hotel has identified clients’ touch points and the level of customer satisfaction, it can pinpoint problem areas which improvements can be implemented. Many renowned names like Taj Hotel Resorts and Palaces, they give every customer a souvenir upon departure. Small acts of kindness stir the guest and go the long way for repeat guests.

In a nutshell, it is impertinent for hotels to get a clear idea on who their customers are, what they expect and how to meet those needs. If a hotel can pamper their guests, the chances of repeated check-ins turn higher, which if runs on an on-going basis bolsters customer loyalty.

Overview

  • 61% of hotels believe that guests would openly sign up to every loyalty program, but in reality only 30% rarely join loyalty programs, 46% only sign up to select relevant programs and 24% sign up to every loyalty program.
  • 54% of hotels believe their offers are mostly relevant while only 22% of guests believe those offers are mostly relevant and 39% feel those offers are rarely relevant.
  • 38% of millennials and 32% of pre-millennials (18-24) note they are more loyal to hotel brands than before
  • 29% of millennials plan to sign up to every hotel loyalty program while baby boomers are more discerning with 40% noting they will only sign up to select, relevant programs.
  • Making the right customer impression
  • Adding a personalized approach to their marketing efforts
  • Doling out offers and incentives
  • Inability to use technology it their favor
  • Never exceeding or rarely meeting customer expectations
  • Not seeking immediate feedback
  • Extremely high Customer Acquisition Cost
  • Huge efflux of customers due to brand indifference
  • Simplify the booking process to encourage repeat businesses
  • Lucrative incentive to guests using direct booking funnel
  • Using the power of automation technology to streamline guest communication
  • Revitalizing the brand by jolting it with new energy and approach

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