Loyalty Program
Could your Property Benefit from a Loyalty Program?
A loyalty program in the accommodation industry aims to make the guest feel valued enough to want to return. 84% of consumers are more likely to stick with a brand that offers a loyalty program, and over 50% will actively promote your property. A range of special offers, discounts, and incentives are used to improve guest experience, increase bookings, reduce costs and achieve lasting loyalty.
Nicholas Albertini
Marketing
What is a Loyalty Program in the Accommodation Industry?
A loyalty program is a marketing initiative to achieve repeat stays by offering rewards, discounts, or other incentives. A loyalty program can be tailored to achieve your property’s goals by convincing a guest that they are receiving a valuable deal in a specific part of your operations. For example, offering 10% off for guests to dine in at your property’s restaurant will convince your guests that they will receive special treatment for their loyalty to your property.
A loyalty program should be considered by your property as it benefits both the guest and the property manager/owner.
Benefits of Having a Loyalty Program in the Accommodation Industry?
Improved Guest Experience
Firstly, exclusive offers and discounts make a guest feel valued and taken care of during their stay. As a result, the guest experience is more enjoyable and seamless.
Increased Bookings
Special offers and instant discounts are usually enough to convince an undecided guest to book a stay. Using these special offers to attract guests in the first place will increase bookings in the short term, but, you can maintain a steady inflow of guest bookings by introducing a loyalty program.
Cost-Effective
A loyalty program that offers exclusive discounts will encourage repeat stays. This takes away major investment into sales and marketing of your property. As a result, your property can thrive off repeat customers, with reduced overhead costs.
Increased Revenue
A property’s revenue directly correlates with a guest’s experience. A loyalty discount will make the guest feel valued, and in turn, each repeat stay will build trust with your property. The more trust is built, the more likely a guest will spend money on extras and additional amenities, increasing your property’s overall revenue.
Corporate Advantages
Corporate travelers are a market segment that requires repeat stays in certain locations. Many businesses and travel managers know their travel plans are yearly or quarterly, hence, will choose the accommodation that offers loyalty rewards.
How Can My Property Use a Loyalty Program? (Examples)
Earn Points
A points system is the most commonly used rewards system across all industries. It is based on accruing points across multi sectors of your business. The program should have no expiry date, so the guest can collect more points each stay. Points should be collected in a range of different ways such as:
- 30 points for booking directly
- 10 points for liking each of your socials (Facebook, Instagram, etc.)
- 50 Points for dining in at your restaurant.
Guests can then spend these points on a free upgrade, room service, massage, etc.
Instant Win
Instant rewards are a popular incentive to entice guests to book a stay because there are no complications for the guest to redeem the reward. The reward system is beneficial to the customer experience because it rewards and makes the customer feel valued from the beginning of their stay. Instant rewards could include:
- Free beer or wine at your restaurant.
- Free side with their meal.
- Instant 10% off services when they leave a positive online review.
Partnerships
This loyalty program can be a little more complicated, however, is a great way to build brand awareness and secure repeat stays. This program aims to partner with local vendors such as restaurants, tours, or even retail outlets, and offer your guests a discount at these places. This will result in an increase in business for these vendors and more bookings for your property.
How Can GuestPoint help add Value with a Loyalty Program?
GuestPoint is centric to the managers and owners of the property and strives to make operations as simple as possible. GuestPoint can add value to your property and assist you with implementing a loyalty program.
In the management tab, you can run a promotion for a percentage off the standard rate using a code of your choice over a certain period. This code can be used and distributed however you wish.
Furthermore, you can send post-stay emails through GuestPoint. Included in this email could be a link to a review, or reminders for when they book again, book directly to receive a loyalty reward.
Summary of using a Loyalty Program
In summary, a loyalty program is a simple initiative to improve guest experience, increase bookings, decrease costs, increase revenue and attract corporate travelers. A loyalty program in the accommodation industry can be conducted by earning points, instant prizes and discounts, or through partnerships with other local vendors. GuestPoint uses a promotions feature to encourage this customer loyalty. Furthermore, GuestPoint encourages post-stay emails with incentives to book repeat stays.
- Nicholas Albertini
- Accommodation Industry, accommodation management, Guest Experience, Hotel marketing, loyalty program, Management Tips, Motel marketing
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