5 Reasons to Target Returning Guests in Hotel Marketing

Marketing activities are usually aimed at new guests who have never been in contact with the hotel before. They need to get to know and appreciate the hotel before making a booking decision. The necessary communication process with the potential guest, also known as marketing along the customer journey, often proves to be lengthy and costly in terms of marketing budget. Existing contacts who have already vacationed at the hotel and are stored in the hotel's database, on the other hand, are much easier to inspire to return.

Here are five reasons why guest retention deserves more attention in hotel marketing.

<div class="article_quote"><div class="article_quote_contain"><div class="article_quote_quote">"It costs 5 times more in marketing to attract a new guest than to retain an existing one."</div><div class="article_quote_name u-text-style-main"> </div></div></div>

Cost Effective Hotel Marketing

Guests who have already vacationed at a hotel take no risks when booking, as they already know and can evaluate the services offered. As a result, they make a conscious decision to book with the hotel and do not have false expectations.

In addition, they appreciate the strengthened relationship with the hotel and the hosts. This has a positive effect on the atmosphere in the hotel as well as on the workload of the hotel staff. On the one hand, the likelihood of a complaint is lower, and on the other hand, there is more goodwill and understanding when difficulties arise.

Guest satisfaction is ultimately the result of the difference between expectations (target performance) and perceptions (actual performance). The better a guest knows the hotel, the better he can adjust his expectations and thus minimize the gap between expectation and experience. Returning and regular guests are satisfied guests. This also benefits the next fact.

Trusted to Recommend

Returning guests are valuable advocates for your hotel. The more often they book a hotel stay, the more likely they are to recommend it to friends and acquaintances. Based on their satisfaction, they make an important contribution to referral marketing and ensure the acquisition of new guests. The more often guests have stayed at a hotel, the more trustworthy they appear to strangers. Reviews from regular guests on sites such as Tripadvisor and others leave a particularly positive and influential impression.  Hotels benefit from returning guests both through a high level of planning security and through a short-term increase in occupancy.

<div class="article_quote"><div class="article_quote_contain"><div class="article_quote_quote">"Hotels benefit from returning guests both through high planning reliability and by boosting occupancy in the short term."</div><div class="article_quote_name u-text-style-main"> </div></div></div>

Early booking

There is a reason why repeat guests are so popular with hoteliers. They often book their stay for the following year on the spot, providing a high degree of planning security. This long lead time helps to secure and optimize occupancy.

At the same time, targeting known guest dates is also ideal for filling vacancies at short notice. Since guests who know the hotel do not have to go through the inspiration and planning phase, they need less time to make a booking decision and are more open to short-term offers. As a result, hotels benefit from returning guests both through the high level of planning certainty and through a short-term increase in occupancy. Their lower price sensitivity compared to new customers, who often base their decision on price, also has a positive impact on hotel revenues.  

<div class="article_quote"><div class="article_quote_contain"><div class="article_quote_quote">"Lower price sensitivity compared to new customers—who often base their decisions primarily on price—has a positive impact on the hotel's revenue."</div><div class="article_quote_name u-text-style-main"> </div></div></div>

Consumption-friendly for additional services

According to a study by PWC (PricewaterhouseCoopers International), guests are willing to pay up to $25 more per night per room if they know the hotel. This lower price sensitivity compared to new customers, who often base their decision on price, has a positive impact on hotel revenues. At the same time, guests who are familiar with the hotel tend to consume more, such as spa treatments or dining. One reason for this is that they are informed about all of the hotel's services and do not need to get an overview before selecting and using services, as new guests do.

Conclusion

Ultimately, hotel marketing is never an either-or proposition when it comes to targeting new guests and existing contacts. The right mix of these two groups guarantees a balanced guest structure. Online hotel marketing—in the best case with the help of marketing automation software like ADDITIVE+ MARKETING AUTOMATION - has to be aligned accordingly. However, the importance of returning guests should not be underestimated, as they provide every hotel with sustainable revenue and occupancy increases.

ADDITIVE offers non-binding initial consultations to support you in the areas of data-driven online marketing for hotels and marketing automation for hotels!