What Makes a Successful Hotel Loyalty Program?
The number of guests returning to the same hotel varies from brand to brand, with some hotels having more repeat guests than others. A hotel’s location, amenities, and target guest segment have a strong influence on this, but these aren’t the only factors that determine whether a guest chooses to return or not.
Studies show that around 90% of all hotel guests never return for a second stay. This leads to the constant challenge that keeps most general managers and hotel owners awake at night: “How can I get guests to return so that I can continuously generate revenue for my hotel?”
It’s common knowledge that acquiring a new guest is more costly than retaining an existing guest. Even better, if you can manage to convert returning OTA bookers into direct bookers, you’ll generate 15-20% more revenue from their bookings due to the elimination of commissions.
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