10 reasons to have a loyalty program in your hotel

No direct sales strategy implemented by a hotel makes sense without actions to get repeat customers. Loyalty programs are, along with customer service, a user-friendly website and feedback from other users, the most important factors for travelers to consider when making their next reservation.

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

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THE BENEFITS OF A CUSTOMER LOYALTY STRATEGY

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01 INCREASE IN REVENUES

Loyal guests spend, on average, 22.4% more than sporadic guestsand have 28% longer stays. Their loyalty translates into an increase of up to 25% in hotel profits.

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02 THE CUSTOMER REPEATS

A customer who trusts a brand is very likely to repeat. A 5% repeat rate triples a company's annual growth and increases profits by up to 25% per year.

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03 CONSUMES MORE AND MORE TIMES

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 his 5th year he generates between 1.8 and 3.5 times more than in his first year. In addition, their purchase frequency increases. A loyal customer will buy 10 times more during its life cycle than a new customer.

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04 COMPETITING WITH OTAs AND BIG CHAINS

Through a good loyalty plan, it is possible to compete with the different loyalty programs of the main OTAs. There is currently a fierce battle between the major hotel chains and the OTAs to "take over customers". This means that, for the rest of the chains and independent hotels, having a loyalty program is a key strategic factor.

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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. Reaching the expectations of a loyal customer is a cost saving for any company, because to the extent that we know better their wishes, it costs us less 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 help to improve brand reputation and are one of the most influential factors when it comes to making a purchase decision.

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07 PERSONALIZED EXPERIENCE

Most of today's consumers prefer to enjoy a personalized experience. With loyalty programs it is possible to get to know your customers better by capturing and analyzing 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 be more patient with any hiccups that may arise.

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09 IMPROVES COMMUNICATION

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

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10 ATTRACT NEW CUSTOMERS

If a new customer sees that being part of the loyalty program will give them access to better prices, they will most likely sign up. In addition, satisfied loyal customers lead to new customers to retain.

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At Roiback we believe that any hotel, no matter the size, should have a loyalty program to get to know your customer and get them to repeat. That is why we have developed Loyalty Pro, a solution that allows hotels to establish a strategy for their direct channel and strengthen the relationship with the customer in the long term, thanks to a quick implementation that will facilitate the impulse of direct sales of the 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 on +34 971 406 149 or write to us at info@roiback.com.

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