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As a hospitality business or hotel owner, you’ll know that getting guests to book your property once is the easy part; the real win lies in getting them to return. In fact, guest retention is the lifeblood of the hospitality industry.
It’s what separates the successful ones from the rest, with top-performing hotels getting a huge number of repeat guests. This derives from building long-term loyalty and translates into higher word-of-mouth positivity and revenues alike. Do you want to retain more guests? Read on for more helpful insights below.
Why Guest Retention Matters
Hotel guest retention is immensely important, considering the following aspects:
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Repeat guests spend more and are more forgiving of minor issues- These people are loyal to your hospitality brand. Hence, they are more likely to overlook minor hassles, while spending more on experiences, F&B, and other add-ons.
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Loyal customers drive word-of-mouth referrals-Loyal customers are unofficial brand ambassadors for your business. They drive a high number of word-of-mouth referrals, helping you get more business in turn through positive reviews.
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Direct bookings and reduced OTA dependence- Many loyal guests prefer booking directly with hotels. This helps you earn more from each booking, while lowering your dependence on OTAs for a steady stream of bookings.
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Improved profitability through steady occupancy rates- Acquiring new customers is costlier than retaining existing ones. At the same time, a steady base of repeat customers equates to stable occupancy rates. This will help you forecast revenues and manage resources better.
Understanding the Guest Journey
You can only improve the guest experience when you have a clear picture of the journey that he/she embarks on with your hospitality brand. This involves the following:
| Pre-Stay (First Impressions, Booking Experience) | During Stay (Service Quality, Comfort, Personalization) | Post-Stay (Follow Up & Engagement) |
|---|---|---|
| • Online image, social media, website, and OTA presence • High-quality photographs and guest reviews • Easy and secure online booking procedure • Proactive communication before arrival |
• Warm, efficient, and fast check-in process • Using booking data to tailor guest experiences • Guest recognition and personalized amenities • Prompt service response and special occasion upgrades |
• Personalized thank-you or feedback messages • Asking for reviews and guest insights • Loyalty-building with periodic updates • Tailored offers and future stay promotions |
| • Clear brand identity and transparent pricing | • Premium amenities and real-time feedback channels • Encouraging loyalty program enrollment • Seamless check-out and travel assistance |
• Periodic communication, updates, and exclusive offers • Continued engagement through social or email touchpoints |
The most important thing to remember is that every step is an opportunity to turn satisfaction into loyalty. Here’s how.
Strategies to Turn Guests Into Returning Customers
Now that you’ve understood the importance of guest retention, it’s time to look at a few strategies to convert your guests into returning customers.
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Personalize every interaction- Leverage the guest data you collect to tailor their experiences. This includes meal choices, room preferences, surprises for celebrations/special occasions, etc. You can use the right property management system like aPerfectStay to automate personalization.
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Deliver consistent excellence in service- Use your PMS to assign tasks, track housekeeping duties, manage personnel, and implement standardized SOPs for each department. Empower your staff to walk the extra mile, since small gestures make huge first impressions. Make sure each task is speedily attended to, with pre-emptive maintenance and repair.
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Stay connected after checkout- Make sure you send a thank you-email and then follow-up with personalized offers/promotions. Also, ask your guests for feedback and if there’s anything they want you to act on, do it swiftly. Make sure you inform them when it’s done; this builds a lot of trust and makes your guests feel valued.
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Come up with hotel loyalty programs- Reward repeat customers with upgrades, discounts, exclusive perks, etc. Always highlight these benefits smartly during checkout and in your post-stay communication.
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Encourage more direct bookings- Offer exclusive perks and incentives for direct bookings. Make your app or website booking process simple and hassle-free as well.
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Leverage technology for guest retention- Using a cutting-edge PMS like aPerfectStay and CRM systems will help you manage guest data smartly. You can also enjoy benefits like automated re-engagement and follow-ups.
Turning Negative Experiences Into Opportunities
You shouldn’t throw in the towel when there’s a negative experience being talked about. Utilize this scenario to convert it into an opportunity. You can do this by tackling complaints in a professional and prompt manner. Make sure you act on something fast, and inform guests when you’re done. Make them feel that their insights are valued, while also offering compensation or personalized gestures to offended or angry guests. This wins back their trust and shows them that you’re willing to go the extra mile to retain them.
Conclusion
As you can see, consistent care is something that builds guest loyalty for your hospitality business. It’s not just comfort; it’s about caring about the guests’ needs, their preferences, comfort, and feedback. You have to blend human warmth and concern with technology and personalization to reap the benefits of repeat guests for your business.
Of course, the right PMS matters immensely, since it helps you deal with everything from bookings and front desk management to housekeeping and more. You can consider aPerfectStay in this regard, for its one-stop solution that makes your life easy and your guests happier. Start turning one-time guests into lifelong fans- every stay, every time.
