Lead Hospitality

How to Strengthen Your Hotel Loyalty Program to Drive Direct Bookings

THE IDEA

A hotel loyalty program can help capture guest data, encourage repeat stays and add value to your brand. Personalising the guest experience and diversifying rewards are key to strengthening loyalty and driving more direct bookings.

Recognised as a powerful marketing tool for hotels, a loyalty programme can enable a hotel to capture data, encourage repeat business and add value to its brand. It is well known in the hospitality industry that retaining a guest is more profitable than acquiring a new one. This is partly because a guest who has stayed at our hotel before is highly likely to return in the future if they feel valued and appreciated. It is clear how different hotel loyalty programmes seek to differentiate themselves from one another: each offers a range of benefits and carefully tailors its rewards.   I recognise that one of the aspects of this sector I am most passionate about is precisely the development and implementation of loyalty programmes. With this in mind, I would like to share a few ideas for strengthening a hotel loyalty programme in order to maximise direct bookings and drive personalised repeat stays.

Personalise the experience

Personal touches and experiences will make your hotel loyalty programme stand out from the competition. Guests undoubtedly remember attentive, personalised service. Therefore, identifying the habits of your loyal guests can enable you to optimise their on-property experience every time they stay—something your competitors cannot do. Examples may include a handwritten note from the General Manager, a gift of their favourite wine or chocolate, reserving their usual table in the restaurant, or recognising a recent birthday or anniversary. These small extras will not only demonstrate attention to detail, but also show guests the level of service and consideration they can expect each time they choose to stay. They also help guests feel valued by the hotel, strengthening their loyalty and encouraging them to book direct again in the future. When guests book through OTAs, there are fewer opportunities to build a relationship or deliver a personalised experience through a loyalty programme than when they make direct bookings. Building this relationship through the loyalty programme is crucial: you can send regular personalised communications offering discounts, special offers and incentives that not only thank them for their loyalty, but also help secure another booking, giving you greater control over occupancy.

Diversify loyalty programme rewards

By diversifying your loyalty programme rewards, you can help elevate your brand and move beyond discounts, which are already an industry standard. Consider offering rewards such as access to high-speed Wi-Fi through a separate connection from other guests, complimentary parking and spa discounts. Not only will loyal guests be rewarded, but you will also appeal to new guests. To promote the exclusivity of the loyalty programme and enhance the services that improve the guest experience, hotels can offer a combination of rate discounts, special offers and add-ons tailored to guests with a range of needs. If you offer add-ons to your members, you can directly challenge rate parity with OTAs. By doing so, your hotel can differentiate itself from OTAs and encourage direct bookings by offering a better deal, all based on loyalty. Ensuring a dedicated experience and diversifying the rewards programme will make guests feel valued and more willing to book again in the future. A personalised experience and a diverse range of add-ons are the main elements repeat guests seek when booking. As a hotel, you must ensure that you manage both aspects efficiently in order to foster loyalty and, ultimately, direct bookings.
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