Have you ever thought about how to capitalise on your existing guests? Guest loyalty is an essential strategy in the hotel industry. Here are the four major benefits your loyal guests bring to boost your margins and improve your performance.

1. Retaining a loyal guest costs 10 times less than acquiring a new guest

Did you know that retaining a guest costs 10 times less than acquiring a new one? The costs of acquisition via OTAs (Online Travel Agencies) or other indirect channels are significantly higher than those of building guest loyalty.

What to do?

• Maximise your chances of retaining your direct guests! Guests who return by booking with an OTA represent a loss of earnings. 
• Make sure your rates are not higher on your own site than on OTAs
• Make booking on your site simple; especially for second-time guests.
• Set up a Loyalty Programme offering direct booking benefits, and reach out to guests who have already stayed with you with tailored offers.

2. A loyal guest cancels less

Not only do loyal guests cancel less often, they also do so further in advance than new guests. This makes it possible to better predict occupancy rates and reduce the loss of revenue from last-minute cancellations. 

What to do?

• Anticipate by contacting your guests well in advance of their stay
• Offer them a simple, direct way to reach you to minimise late cancellations.

3. Loyal guests book further in advance and stay for longer

Loyal guests book further in advance than new guests and stay longer, enabling better resource planning and increased sales. 

What to do?

• Propose attractive offers to encourage them to extend their stay, especially during off-peak periods.
• Offer a late check-out via message the day before departure

4. A loyal guest is less likely to be a "no-show".

Loyal guests are more likely to honour their commitments and show up more consistently than new guests. 

What to do?

• Contact them as soon as they have booked to reassure them and confirm their arrival.
• Set up multiple communication channels (e-mail, WhatsApp, SMS, chat) to maximise interaction and avoid absences.

Conclusion: Maximise your chances of retaining direct guests

Guests who use OTAs to re-book represent a loss of revenue for your establishment. So it's essential to encourage them to book directly. 

Key points for increasing your share of loyal guests

• Set up a Loyalty Programme offering exclusive benefits for direct bookings (discounts, upgrades, free additional services).
• Promote these benefits during the stay and via post-stay e-mail campaigns
• Connect your CRM to your website's Booking Engine to make it easier for returning guests to book directly with you.
• Send personalised offers to your guest base
• Put guest loyalty at the core of your strategy: by tracking key metrics (number of loyal guests), creating tailored experiences for loyal guests, etc.

Guest loyalty is a profitable investment that reduces acquisition costs, maximises occupancy and increases length of stay. By implementing the right strategy and encouraging direct relationships with your guests, you'll optimise your margins while strengthening your brand image.