Loyalty programmes for guest houses, hotels and hostels. Part 1

If you are going to launch the loyalty programme for hotel — this is that article to sort out all pros and contras. Loyalty programmes for guest houses, hotels and hostels dramatically increase customer loyalty even in case of rare visits to your facility. What kinds of loyalty programmes can be involved by hotels? How do leading hoteliers attract clients? Learn it in from our article.

loyalty programme hotel example

Any guest house or hotel loyalty programme should stimulate the client to come back in future again. Even if next vacation will happen in one year, your hotel guests should be already loyal to your business. Guest house or hostel loyalty programme must have minimum of one-time promotions and maximum of long term relations building offers. Giving to your clients various bonuses and discounts, you would for sure attract them. But consider three important elements forming customer loyalty, that cannot be earned only for discounts and promotions:

  • Offer not just night for free in your guest house but extra benefit: free laundry, affordable tasty breakfast, discount on partners' tours, free transfer etc.
  • Tell your regular clients about benefit they get only.
  • Do not forget about emotions. Visitors should experience positive emotions on every stage of taking part in loyalty programme and stay in your hotel. Positive emotions will be transformed into trusted relationship, customers will become regular ones.

Hotel, guest house, hostel loyalty programme development

Most likely you will seek assistance in loyalty programme development from marketing agency. But it would be good to be aware of loyalty programme features for hotel as you will manage them if future. For interested in example on types of loyalty programmes for hotels — we wrote one curious article.

How much does loyalty programme for hotel cost?

The cost usually depends on two aspects: (1) marketing costs and (2) expenses administration and stimulation (stimulate clients to spend more). How form budget? You can choose one of three ways:

  • offer your clients yearly subscriber fee for taking part in loyalty programme. It is beneficial for those who travel often, including business trips, and you have network of hotels with same service level in many countries. Privileges subscription fee is good for large networks
  • involve partners and launch cross marketing promo
  • do not engage external contributions and pay the loyalty programme with revenue from room rent

Hotel business is not retail used daily. Even high income businessmen face the situation of daily hotel change rarely. They go on business trips, but in general people do not spend entire life in hotel rooms, even most luxurious. That is why it is impossible to copy successful restaurant loyalty programme for hotel and expect revenue increase. Hotel loyalty programme aims not only for frequent visits but for positive experience. It is not always that "less visits means worse loyalty programme". For example, many guest houses are located in resort town, which "fall asleep" after season is over. All these aspects must be considered before loyalty programme development and stimulate clients to not just spend more money but experience positive emotions. Administrative costs and marketing costs form about 20% of entire loyalty programme budget: service technical support, client service, data bases processing. Spent stimulation includes expenses on bonuses, discounts, gifts for guests. It is the biggest part of expenses — up to 80% of entire loyalty programme cost. We know how to decrease the cost of spent stimulation and are delighted to share this life hack with you.

What you should do as often as possible to hold and attract clients? Communicate. Contact them: ask their opinion on your hotel, inform about discounts, offer new service. Due to ignorance about their advantages, and habits many hotels choose obsolete expensive and ineffective communication channels: SMS, email, calls. Hotel pays SMS, which are just deleted by their clients, e-mails are lost in folder Spam. We offer for your loyalty programme the service with simple and effective communication channel — push-notification. Push-notifications are always more evident, they do not use gadget's memory, and you do not need agent like cell operator who must be paid.

There are profitable rate plans with push-sending out for clients on VDcards platform. Learn about cost of hotel loyalty programme launch on VDcards online-platform. Or contact our manager to find individual solution.

What should hotel, guest house, hostel loyalty programme be like?

US Alliance Data Systems Corporation held the research and found out that more than half of interviewed people (US citizens) prefer the simplest hotel loyalty programmes. 39% respondents opt for simplicity, not high discounts. 57% respondents refuse to join loyalty programmes with long and sophisticated process of bonuses (discounts, privilege) accumulation. Bonus must be reachable for client in the foreseeable future. The size of the bonus must correlate with time and costs spent by client to get it. Do not give a corporate mug after person stayed five times stayed in your hotel. Mug is deserved already after second visit. System of bonus distribution must be clear, gifts — assured.

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