Effective ways for small and mid-sized hotels to build winning loyalty programs!

Market Scenario

Today, competition in the hotel industry is considerably higher than in the years back. Winning in this surplus market requires hotels to be creative in attracting and retaining guests.

The need for Loyalty Program

Loyalty program acts as a life-saver for hotels. It can be a greater competitive advantage for hotels when it comes to gaining and securing both new and existing guests. Plus, increasing your hotel revenue by making customers buy more.

Guest’s changing mindset

Guests today are signing up multiple loyalty programs offered by different hotels. They constantly switch between hotels which provide instant values and smooth process. This is one of the major concerns prevailed among the hoteliers.

Overcoming these challenges requires hotels to focus more on providing personalized offers and also building a simple and hassle-free process to redeem those offers.

In this blog post, we help you in devising loyalty programs that attract, gratify, and retain your hotel guests.

First, stick to one or two loyalty program approaches. The more approaches you include, the more complex it becomes to measure and manage!

Loyalty program approaches

Point-based approach

The point-based approach has been in practice for decades. This system provides specific points for guests’ based on their purchase. It might be providing 3 points for every money spent on your hotel or for guests booking your hotel directly from your hotel website. Based on the points accumulated, the guest may move from tier 1 to 2 and the next levels.

As the point increases, guests may be eligible to avail offers like free room upgrade, 10% off on the food items, or VIP check-in, etc.

Instant Rewards Approach

Instant Rewards Approach is built to attract today’s modern travelers. Instant values on the return of purchase increase guest satisfaction and create a mindset to consume more.

Providing offers like free WiFi or free dining experience, etc. for referring a friend or posting a review on the online review platforms can attract this market segment. These kinds of immediate offers will make your guests feel happy and give them instant gratification.

Partnership Program

Partnership Program approach involves in partnering with other travel platforms like airlines, restaurants, travel packages, etc. to provide specific offers to your guests. This will mutually benefit both you and your partners. Your partners may also refer your hotel for their customers, which helps in increasing bookings and hotel revenue.

Once you have set your loyalty approach, then think about the types of offers that amuse your guests.

Offers that excite guests of all segments

  1. Late Check-in/Check-out
  2. VIP Check-in
  3. Offer on room prices
  4. Preferred room
  5. Free room up-gradation option
  6. Free room service
  7. Free laundry/pressing services
  8. Extended free stay
  9. Offer on food items
  10. Free-dining experience
  11. Free Valet Parking
  12. Free Transportation Services
  13. Free Pick-up from Airport or another transport hub
  14. Offer on SPA Services
  15. Free tickets for events
  16. Free airline tickets

These are some offers that hotels can use in attracting their guests right from tier 1 to tier 4 or more. Depending on the guest’s engagement with your hotel, you can provide high-level offers.

Moreover, conducting guest survey can also help you in understanding their unique needs and wants and design offers that make them engage with your hotel again and again.