As a hotelier, you’ve likely experienced the fluctuations in occupancy rates that characterize the industry.

One week you’re fully booked, the next you’re scrambling to fill rooms. But what if there was a way to stabilize these ups and downs?

Enter the repeat guest – your hotel’s key to consistent success.

These loyal customers not only provide steady bookings but also offer numerous benefits that can significantly impact your bottom line.

In this post, we’ll explore why repeat guests are crucial for your hotel’s prosperity and share five proven strategies to increase their numbers. Whether you’re managing a small inn or a large resort, these tactics will help you build a loyal customer base that drives sustainable growth.

Understanding the Importance of Repeat Guests

Before diving into strategies, let’s examine why repeat guests are so valuable to hotels.

A repeat guest is someone who’s stayed at your hotel before and chooses to return. They could be quarterly business travelers, couples celebrating annual anniversaries, or families that have made your property their regular vacation spot.

Why are repeat guests the VIPs of the hotel world?

1. They’re your occupancy stabilizers – Industry averages show that a 5% increase in customer retention can lead to a 25-95% increase in profits. So while the tourism industry ebbs and flows with the seasons, loyal customers provide a steady stream of bookings you can count on.
2. They’re budget-friendly – Acquiring a new customer can cost 5 to 25 times more than retaining an existing one. Every repeat guest saves you significant marketing and acquisition costs.
3. They’re big spenders – Repeat guests typically spend 67% more than new guests. They’re familiar with your property and more likely to try additional services, leading to a higher revenue per available room (RevPAR).
4. They’re your best marketers – According to Nielsen, 92% of consumers trust recommendations from friends and family above all other forms of advertising. Happy repeat guests don’t just come back – they bring others with them. Besides, loyal customers are 50% more likely to try new products and they spend 31% more compared to new customers.
5. They’re less price sensitive – Loyal guests understand your value proposition. They’re willing to pay for the experience they know and love, giving you some flexibility in pricing, especially during off-peak seasons.

In the next section, we’ll explore different strategies to boost your repeat bookings.

 

4 Strategies to Increase Repeat Guests at Your Hotel

1. Implement a Guest Recognition and Personalization System

Personalization is key to creating memorable experiences that keep guests coming back.

By recognizing your guests and tailoring their stay to their preferences, you show that you value their business and care about their individual needs.

Here’s how to create a personalization strategy:

1. Build your foundation: Collect guest data, implement a Customer Relationship Management (CRM) system, and train your staff on the importance of personalization.
2. Create personalized touches: Use the collected data to offer tailored amenities, recommendations, or special gestures. For example:

• • For a business traveler: Offer a complimentary pressing service for their business attire, or a morning newspaper with their breakfast.
  • For a couple returning on their anniversary: Offer a late check-out and a couples’ spa package at a discounted rate.
  • For a family with young children: Set up the room with age-appropriate toys or child-sized robes. You can even include a special welcome pack with coloring books and crayons. The toys and kid sized robes will require a minimal expense on your part, but it’s a one-time expense that can be enjoyed by other guests. Plus, this may even open a new segment of loyal family customers who prefer your hotel over others who don’t provide kid-friendly in-room amenities.

Tips for measuring success:

• Track repeat booking rates before and after implementing personalization
• Monitor guest satisfaction scores and reviews
• Analyze changes in average spend per guest during repeat stays

 

2. Create an Attractive Loyalty Program

A well-designed loyalty program can incentivize guests to choose your hotel over competitors and increase the frequency of their visits.

1. Define program objectives and choose a reward structure: Determine what you want to achieve and decide between a points-based system, tier-based program, or a hybrid model. Use your property management system to track guest stays and spending.
2. Design attractive rewards: Offer a mix of rewards like free nights, room upgrades, exclusive experiences, or partnerships with local attractions. Ensure your CRM system can handle point tracking and redemptions.
3. Launch and promote: Train staff on the program details and use your email marketing tool to announce the program to past guests. Promote it on your website and at check-in.
4. Monitor and improve: Continuously gather feedback and use your CRM analytics to track program performance. Here are some criteria to track the effectiveness of your loyalty programs:

• • Enrollment rates and active member percentages
  • Frequency of repeat bookings from loyalty members
  • Average spending of loyalty members versus non-members

 

3. Offer Exclusive Deals and Promotions

Exclusive deals and promotions can incentivize guests to book directly with your hotel and encourage repeat visits. By offering value that guests can’t find elsewhere, you create a compelling reason for them to return.

First, review your guest data to identify patterns in booking behavior, popular stay dates, and guest preferences. This will help you create targeted promotions. Next, create a variety of deals tailored to different guest segments.

Examples:

• Book Direct discounts: Offer a 10-15% discount for reservations made directly through your website. Include perks like free breakfast or late check-out to sweeten the deal.
• Extended Stay promotions: Offer escalating discounts for long stays, such as 10% off for 3-night stays, 15% off for 5-night stays, and 20% off for 7-night stays or longer.
• Off-Season Specials: Boost occupancy during slower periods by creating themed packages. For instance, a Cozy Winter Retreat with in-room hot chocolate service and discounted spa treatments.
• Family Fun packages: Offer deals that include family-friendly amenities like kids-eat-free options, complimentary tickets to local attractions, or in-room game consoles.
• Romantic Getaway promotions: Target couples with packages that include champagne on arrival, couples’ spa treatments, and romantic dinner reservations.
• Last-Minute Weekender offers: Fill unsold rooms by offering spontaneous travelers discounted rates for bookings made within 48 hours of arrival.

Remember to tailor these offers based on your hotel’s unique selling points and guests’ preferences.

Tips for measuring success of hotel deals and promotions:

• Track the number of bookings made using each promotional code
• Compare the average length of stay for promotional vs. regular bookings
• Monitor the revenue generated from each promotion
• Analyze the repeat booking rate of guests who used promotions

Pro Tip: Create a sense of urgency with limited time offers but be careful not to discount too heavily or too often, as this can devalue your brand.

 

4. Enhance Guest Experience Through Local Partnerships

Partnering with local businesses can enhance your guests’ overall experience, making their stay more memorable and increasing the likelihood of return visits.

Research local attractions, restaurants, tour operators, and unique experiences in your area that align with your guests’ interests.

 

Then contact potential partners and discuss mutually beneficial arrangements, including:

• Exclusive discounts for your guests at local attractions
• Package deals combining your accommodation with local experiences
• Cross-promotion opportunities

Examples of offers that combine hotel stay with local experiences:

• A “Foodie’s Delight” package including a stay at your hotel and a guided food tour of the city
• An “Adventure Seeker” deal with accommodation and tickets to nearby adventure parks
• A “Cultural Immersion” experience featuring local art classes or cooking workshops

Lastly, encourage your team to make personalized recommendations based on guest preferences. Highlight these unique offerings on your website, in pre-arrival emails, and through in-room materials as well.

How would you know which local partnerships are successful and worth keeping? Here’s how:

• Track the number of guests participating in local partnership experiences
• Monitor hotel reviews that mention local experiences or partnerships
• Analyze the average spend and length of stay for guests booking partnership packages

By implementing these strategies, you’re not only enhancing the guest experience but also making your hotel an integral part of the destination experience, not just a place to sleep.

Getting Repeat Clients is an Ongoing Process

Increasing repeat bookings is a powerful strategy to stabilize occupancy rates, reduce marketing costs, and boost your hotel’s profitability.

Start by implementing one or two strategies that align best with your current capabilities and guest demographics. Monitor results closely and refine your approach based on feedback and performance data.

Remember that boosting repeat bookings is an ongoing process. It requires commitment, creativity, and a constant focus on enhancing the guest experience. By prioritizing guest retention, you’re investing in the long-term success of your property.