5 easy ways to turn guest loyalty into guaranteed revenue

Let’s strip it right back and ask: what is a loyal guest? It is primarily someone who appreciates the quality of service, location and amenities but not necessarily loyal to the direct hotel brand if there is no added value. As such, guests may still go through OTAs to find the best deal, meaning that the specific hotel still must pay commission fees which results in lower profits.  

Last year, loyalty members collectively filled around 52.8% of hotel rooms in the UK, showcasing the importance strong guest relationships have to your overall hotel bookings. Independent hotels are also now looking at leveraging their CRM systems and AI tools to create tailored guest experiences, as 91% of consumers prefer brands that provide relevant offers. Though the statistics show how important guest loyalty can be to hotel revenue, some hoteliers are missing out by focusing on attracting new guests instead of nurturing long-lasting relationships.  

That’s where Access Hospitality comes in, as our hotel guest management software solutions are designed to keep guests coming back with intelligent CRM segmentation, personalised offers and dynamic retargeting. In this article, we will explore 5 easy ways to help turn your guest loyalty into extra profit as well as look into the areas where loyalty can improve your hotel strategy and future planning.  

You might be convinced that new guests equal more business and in turn, more profits. But that is not necessarily the case. Let’s take a look at some of the main ways loyal guests make that imperative difference.  

• Lower acquisition costs

Usually, new guests will come through an OTA or paid campaign, though in both cases it will generate additional costs such as commission fees or ad spend. Loyal guests (members of your loyalty programme), however will be more inclined to book directly with you to use their offers or perks, which will cut down the OTA costs.  

• Higher spend per stay

Since returning guests have already experienced your service, they will trust your brand and pricing more. Loyalty members spend around 22.4% more and stay 28% longer than new guests, especially if they are booking with personalised offers. When guests know what they are paying for from previous stays, you can escape the burden of pure price comparisons.  

• Get more predictable revenue

Returning guests can help you maintain the seasonal dips and reduce your reliance on last-minute bookings. You will have a better insight into your forecasting and keep the momentum of your hotel business during quieter times.  

To keep your loyal guests coming back for more, it is important to know the best tactics that will drive repeat bookings and improve your overall revenue targets. Here are 5 easy ways smart hotel technology will help your hotel business turn guest loyalty into guaranteed profits:  

1. Personalised upselling through CRM integration 

Your CRM is your closest companion when it comes to understanding your guest data and using this to drive your revenue. In fact, hotels using their CRM for targeted guest campaigns see up to a 35% increase in marketing engagement, and around a 30% increase in repeat visits among their guests. Unifying your loyalty data across your PMS and CRM will enable you to personalise upsell offers based on guest preferences and behaviours that will increase their average spend. Offer your guests:  

• Spa packages for wellness guests  
• Room upgrades for frequent business travellers  
• Late check-out for returning weekend visitors or business guests 

2. Create exclusive member rewards and perks  

Make your loyal guests feel VIP with offers and discounts that are only exclusive to members who book directly with you. Control what your OTA competitors can’t with perks that are only redeemable to guests who return and directly book on your website, so your commission rates stay low. This can range from:  

• Free breakfasts  
• Priority room selections  
• Loyalty members early-bird sales  
• Turning reward points into eco-friendly incentives or charitable donations 

3. Tiered loyalty programmes  

Everyone likes a gamified loyalty scheme, so a tiered programme will help you keep guests engaged and intrigued to see how their points can turn into prizes. In our customer loyalty report in partnership with KAM, around 56% of guests prefer programmes that offer regular rewards rather than long waits. As such, having different loyalty levels, for example Bronze, Silver and Gold, will encourage guests to spend more and unlock further benefits for their future stay. Here’s how your tiered system can work: 

• Bronze: After 3 stays – free breakfast 
• Silver: After 6 stays – guaranteed late check-out 
• Gold: After 10 or more stays – exclusive event invites and free night vouchers 

4. Get automated with your rebooking email campaigns  

Keeping in contact with your guests is what will boost your revenue in the long run, especially with personalised and tailored offers that are based on their behaviours and preferences extracted from guest data stored in your CRM. Create rebooking emails for your guests using marketing automation tools and AI integrations to drive repeat business without manual efforts. Your emails could promote:  

• Seasonal return offers and discounts  
• Anniversary or birthday reminders  
• Post-stay flash sales, limited time offers and referrals  

5. Referral loyalty programmes 

You want your guests to spread the word to friends and family about your exceptional services and facilities, so why not reward them? Offer discounts or exclusive perks that loyal guests can receive when they refer a friend who books directly with you. Not only do your guests get an incentive, but you also get the benefit of new business. Referral offers can look a little something like:  

• £25 off their next stay 
• Bonus loyalty points 
• Invite 2 friends and get 20% off their next booking 

Now you know what you need to do to get started on your guest loyalty journey, it's time to think about what tools will help you stay on track and keep your revenue ticking over. Measuring your guest loyalty ROI is essential to keep your hotel strategy strong and consistent over time. Seeing quantifiable results that are cost effective, valuable and sustainable to your hotel business is key.  

Here are a few ways you can successfully measure your guest loyalty with invisible hotel technology solutions:

• Direct booking revenue

Using tools like our hotel CRM and booking engine software will help you track and calculate the direct impact of bookings made on your website by loyal and new guests.  

• Referral conversion rate

Get real-time data insights into your referral programmes through your CRM integration to automate the reporting and tracking of conversion rates of referred guests into guaranteed stays.  

• Higher guest engagement

See what channels perform best and  where your loyal guests are engaging the most with our guest engagement software that unifies your booking, communication and marketing tools all into one place.  

• Calculate guest lifetime value (LTV)

Loyal guests will generate higher profits over time due to their direct reservations and readiness to spend more while on-site. Keep track of their spending amount through your CRM and PMS integrations to see areas that could be improved.  

• Track repeat guest rates

Using your hotel CRM, you can see where your guest loyalty efforts are working, what offers attract the most visitors and how well they are driving returning bookings.  

Guest loyalty is more than keeping visitors coming back and re-booking for the same experience. It is about making the most out of their return business and how this can benefit your hotel in the long run. A strong guest loyalty programme can provide a multitude of solutions to your operational challenges, from reducing OTA reliance, increasing direct bookings and creating long-lasting guest relationships.  

In this article, we have discovered why loyal guests are just as important as attracting new ones, as well as unpacking 5 easy ways you can leverage guest loyalty to increase your revenue. With tiered programme systems, automating personalised email campaigns and creating referral schemes, you are in the best position in turning guest loyalty into guaranteed revenue.