10 reasons to have a loyalty program in your hotel

No direct sales strategy implemented by a hotel makes sense if actions are not taken to ensure customer loyalty. Loyalty programs, along with customer service, an easy-to-use website, and comments from other users, are the factors that travelers take into account the most when making their next reservation.

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In the midst of technological transformation and in a context in which hoteliers compete with large OTAs to attract customers, loyalty programs have become indispensable for carrying out an adequate direct sales strategy.

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THE BENEFITS OF BETTING ON A LOYALTY STRATEGY

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01 INCREASED REVENUE

Loyal customers spend, on average, 22.4% more than sporadic ones and have stays that are 28% longer. Their loyalty translates into an increase of up to 25% of the hotel's profits.

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02 REPEAT CUSTOMERS

A customer who trusts a brand is very likely to return. With a repeat rate of 5%, a company's annual growth can be tripled and profits increased by up to 25% annually.

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03 CONSUME MORE AND MORE OFTEN

A loyal customer trusts the brand and, therefore, will be more likely to spend. It has been proven that a loyal customer spends more than a sporadic one, and in their 5th year generates between 1.8 and 3.5 times more than in their first year. In addition, their purchase frequency increases. A loyal customer will buy 10 times more during their lifetime than a new customer.

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04 COMPETE WITH OTAs AND LARGE CHAINS

Through a good loyalty plan, you can compete with the various loyalty programs of the main OTAs. Currently, there is a fierce struggle on the part of the large hotel chains and the OTAs to 'take ownership of customers'. This makes having a loyalty program a key and strategic factor for the rest of the chains and independent hotels.

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05 COST SAVINGS

Although creating and implementing a loyalty program is an investment, in the long run it is much more profitable because the cost of retaining a customer is much lower than that of attracting a new one. Meeting the expectations of a loyal customer means cost savings for any company, because the better we know their desires, the less it costs us to serve them well.

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06 MARKETING STRATEGY

A loyal and satisfied customer is the best source of communication for the company. The opinions of other users improve brand reputation and are one of the factors that most influence when making a purchase decision.

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07 PERSONALIZED EXPERIENCE

Most current consumers prefer to enjoy a personalized experience. With loyalty programs, it is possible to get to know your customers better through the collection and analysis of data and information to strengthen the bond between brand and customer. At the same time, it allows you to create personalized marketing campaigns.

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08 THE CONSUMER WILL FEEL MORE VALUED

A loyalty program that satisfies and impresses consumers will also make them feel more valued and connected to the brand. The consumer will also have more patience with any setbacks that may arise.

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09 IMPROVES COMMUNICATION

The loyalty program is a direct channel of communication with the customer. It allows you to send personalized direct messages instead of generalized emails that will not be attended to. In addition, with these programs you can promote reservations, events or offers for each type of customer.

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10 ATTRACT NEW CUSTOMERS

If a new customer sees that by being part of the loyalty program they can have access to better prices, they will most likely register. In addition, satisfied loyal customers lead to new customers by retaining them.

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At Roiback, we believe that any hotel, regardless of its size, should have a loyalty program to get to know its customers and get them to return. That's why we have developed Loyalty Pro, a solution that allows hotels to establish a direct channel strategy and strengthen the relationship with the customer in the long term, thanks to a quick implementation that will facilitate the promotion of direct sales for establishments that have it.

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If you would like more information about Loyalty Pro, please contact your Direct Channel Specialist. Call us at +34 971 406 149 or write to us at info@roiback.com.

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