Is Hotel Loyalty Overrated?

The conventional wisdom that hotels should increase business by trying to get more bookings from their loyal customers is being challenged. According to new research, hotels might be better off following in the footsteps of other companies who have made big profits by bringing in new, casual customers who only use their products occasionally.

”Your customers are customers of other brands who occasionally buy you.”

It is suggested that hotels might see better results with marketing strategies that focus on making new customers aware of their brand rather than through focusing on loyalty or reward programs.

Key Takeaways:

  • 42% of purchases are from returning customers to the brand. Capturing returning guest market share is a key to hotel success.
  • Creating a unique story will drive today customer to book a hotel.
  • Social media engagement is a poor indication of loyalty. Research shows that Facebook followers rarely click on offers.

“Many travelers do not seem to care much about the hotel brands, as long as they can get the perception of good value by booking through OTAs.”

The quote above comes from the article linked below, and while this may be the case for a lot of people, it certainly isn’t the case for myself and many others who love hotels and also love being shown appreciation from hotels that I show loyalty to. While it is all well and good to court new customers, and as a lover of hotels I wish all hoteliers only the best of success, I certainly hope this research doesn’t encourage hotel marketing departments to start courting new guests at the expense of people who choose to spend their money and time staying at their properties for reasons other than it is the cheapest option they can find.

Original Source: https://www.hotelnewsresource.com/article93811.html

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Hotel Otaku. Hotel reviewer. Aspiring photographer. Xenodocheionologist. Zac fuses his lifelong passions for 1. Beautiful Hotels & Resorts, 2. Thailand and 3. Website Design to bring NewThaiHotels to life, sharing the latest information on new and exciting luxury hotel openings in stunning tropical Thailand.

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