Today’s luxury establishments are turning to data-driven loyalty programs to improve guest retention and increase ancillary revenue.
In the luxury hotel, resort, and spa industry, you need two kinds of guests: new ones and returning ones. Maintaining guest loyalty is as critical as attracting new customers, and today’s luxury establishments are turning to data-driven loyalty programs to improve guest retention and significantly increase ancillary revenue.
Understanding guest preferences to improve guest retention through data
The first step in designing an effective loyalty program is understanding guest preferences and behaviors. Luxury hotels and resorts collect vast amounts of data from various touchpoints, including room bookings, spa visits, dining experiences, and online interactions. By analyzing this data, properties can identify patterns and preferences and use these to customize offers and services that resonate with guests on a personal level. For example, with Book4Time’s loyalty program and other CRM features, desk staff can look up a guest’s loyalty points and profile, enabling personalized service right from the moment they check in.
Segmenting guests for tailored marketing
With advanced reporting and data analytics, hotels can segment guests into distinct groups based on various criteria like age demographics and whether they are local or visiting, or corporate or leisure, and based on specific behaviors and preferences, like frequency of visits, preferred amenities, and spending habits. This segmentation is key to tailoring marketing efforts and loyalty rewards that effectively target different guest profiles.
For instance, if data shows that a significant segment of returning guests enjoys visiting the spa, the hotel can offer special spa packages as part of the loyalty program. This is facilitated by systems that allow staff to post spa charges directly to a guest’s loyalty account to redeem from a player’s loyalty account at checkout. Similarly, preferences for room upgrades, dining experiences, and activities or special events like excursions and wine tastings can be integrated into loyalty offers, making them more attractive and relevant. The ability to define conversion rates for earning and redeeming points ensures that the loyalty program remains flexible and responsive to guest needs.
Segmentation enhances guest satisfaction while optimizing marketing resources by focusing efforts where they are most likely to yield returns.
Enhancing guest engagement with technology
Spa and ancillary revenue management software, Like Book4Time, provides the data you need to personalize recommendations while the Loyalty Program feature tracks member activity within the system and at checkout, staff can apply charges to a guest’s loyalty account. Staff can then predict future guest behavior based on past activities, enabling hotels to offer proactive, personalized service offerings before a guest even requests them.
Data can help you predict future guest behavior based on past activities, enabling hotels to offer proactive, personalized service offerings before a guest even requests them.
The system also handles returns or voids of spa charges and posts them to the guest’s loyalty account, and supports coupon redemptions.
Monitoring and adapting strategies
The dynamic nature of guest preferences necessitates continuous monitoring and adaptation of loyalty programs. This means staying on top of both internal data and industry trends. Regularly updating loyalty programs based on fresh insights and feedback ensures the program remains relevant and effective.
Data-driven loyalty programs in the luxury hotel, resort, and spa industry are key to creating personalized, engaging, and rewarding guest experiences. Effective use of data to understand, segment, engage, and adapt, companies can ensure higher guest retention and increased ancillary revenues in a fiercely competitive market.
These strategic enhancements help you meet and exceed the expectations of modern luxury travelers, and pave the way for sustainable growth and profitability.