How Loyalty Programs Boost Business for Hospitality Industry

March 17, 2020

Reading time about 5 minutes

A loyalty program rewards the customers, encouraging them to make repeated visits and purchases with a brand. While in the case of the hospitality industry, maintaining a loyalty program is relatively tough than others in the league.

Related Article : Strategies to Create the Right Loyalty Program that Retains Customers

For instance, if a customer is willing to purchase medicines, he generally has a trusted chemist shop. In the case of clothing, customers generally go picky with just a few brands. While in case of travel and hotel, not everyone likes to go similar places every year. Hotels are required to have a strong loyalty program in order to have repeat customers or stand out amongst the competition.

Loyalty Programs boost business for the hospitality industry

Hotels not necessarily have a single booking option, there could be a possible involvement of third-party sites. Well, being a hotel owner, how can you predict customer choosing your hotel above the listed options? Here’s where loyalty program software for hotel booking works!

Making bookings through the third-party sites may cause a higher payment amount for the users that they would pay if booked directly through the hotel website, there can be multiple factors turning down the sales and letting your hotel have low probabilities. A survey by the Centre of Hospitality Research Study revealed that once a guest signs up to a hotel’s loyalty program, the number of stays this guest books with that specific hotel typically increases 49%.

A well-curated hotel loyalty program can offer numerous benefits to the guests, even before they have arrived for check-in. A complete loyalty program is a smooth streamlined process that benefits the guests from the time they arrive till the time they check out, while a few programs believe in asking for customer feedbacks and let them stay connected in the long run.

How can loyalty programs boost business for the hospitality industry?

Loyalty programs benefits in a numerous way, here’s how you can work on your loyalty program to make it too engaging to resist, letting the guests book directly through the website rather than choosing third part sites or travel agents.

  • Get an App done quickest possible

Mobile applications are far more accepted and brought in use than any other promotional method used. Not just 85% of loyalty program members agree on redeeming rewards on the smartphone being much more convenient, but having an exclusive app can provide you liberty to send push notifications (offers/location-based), SMS and emails to the loyalty program members.

Digital applications offer a unique customer experience irrespective of the industry. A digital mobile application allows customers to checkout their loyalty status anytime they wish to, which can be a potential option to increase the probability of making another booking (provided the customer satisfaction rating is high) and avail their free nights allotted through the loyalty program.

  • Customer Engagement Options

Well, the true power of a mobile app lies in generating considerable customer engagement. For the hotels wishing to have higher engagement can level up with complete personalization. For instance, hotels can offer their customers with perks to choose from free breakfast, spa vouchers, early check-in, late check-out, complimentary meals and beverages etc. Customers can choose from the varied options as per their convenience, further letting them book your hotel frequently & referring the same for some more loyalty points/perks to being added in their account.

Though a few loyalty programs do not require formal membership or registration they auto-register a customer once they check-in and send notifications on their loyalty points or offers.  With every stay, the hotel collects more data on its loyalty program members which ultimately benefits for better personalization-

  • Tenure they stay
  • How often they book a hotel stay
  • Any particular time they choose
  • If they have meals in the hotel (apart from complimentary breakfast, if offered)
  • If they visit the bar
  • If they choose to have spa sessions or spend on any other indoor activities (paid)

The collected data is then tailored as required and used for personalized offers letting the customers feel they’re valued enough by the hotel (or the group owning the chain).

  • Best Way to Brand Promotion

Firstly, having an app can let your customers stay updated, secondly, you’re always benefitted with the feedback and survey options. If the customers aren’t telling you what’s good, there no point making heaps of efforts, similarly if the customers aren’t telling you where you lack, you would be wasting your precious efforts at the wrong place.

Train your hotel staff to ask customers for feedback and fill up a quick rating option for their recent stay along with a text box to leave notes if they wish to. You can do this with a hotel brochure (which can be later given to the customer for brand promotion). Another option to promote your brand is a small souvenir, which can either display the hotel name or can be something as a token of thank you for the guests, this can help in building reputation and keeping your guests up with the memories of their hotel stay with you!

Mobile apps are always a plus, get the perks of being digitally active. Go for the mobile app development for hotel bookings and elevate your business presence to an all-new level!