How to develop a loyalty program for your hotel guests

In hardly any other industry does guest loyalty play such a decisive role as in the hospitality industry. Hotels and holiday homes thrive on satisfied guests returning. Loyalty programs that reward loyal guests and bring them one step closer to their next booking have proven to be particularly successful in this respect. Keep reading to find out how you can develop your own loyalty program for your hotel guests. 

• A hotel loyalty program is a marketing tool that hotels use to reward regular guests and increase brand loyalty.
• Before designing your loyalty program you should define clear goals for it, such as increasing direct bookings. Then decide on a points-based or booking-based loyalty program.
• Think about what perks you want to offer your guests - for example, a free dinner, discounts or a room upgrade.
• You then need to promote your loyalty program via newsletters, social media and information material in the accommodation. Round off the campaign with a detailed analysis of important numbers, such as the number of participants and ROI of the program.

A hotel loyalty program is a reward program for loyal guests. It is similar to an airline's mileage program in that it provides benefits for returning travellers. Hotel chains use this marketing strategy to retain guests by offering discounts and other benefits.

Loyalty programs encourage guests to return and thus increase customer loyalty. But there are even more reasons why this marketing strategy is practised by many hotel chains:

• It's easier and cheaper to retain existing guests rather than attract new guests
• More direct bookings, which saves money on commissions
• Loyal guests ensure better online reviews and recommend your hotel to friends and acquaintances
• More bookings from new guests
• Guests feel valued, which increases overall customer satisfaction
• Loyalty programs give you an advantage over competitors who do not offer such promotions
• Loyalty programs allow you to collect valuable customer information for marketing purposes

Designing a loyalty program requires careful planning. You need to consider the brand identity, the target audience and ultimately the goals of your hotel. The following steps will guide you through this process:

1. Define the objectives of your loyalty program

Determine what you want to achieve with your loyalty program. This could be, for example, increasing direct bookings or improving guest satisfaction. Ultimately, such programs are always aimed at customer loyalty.

2. Decide on a program structure

In this step, you need to decide what the reward system for your guests should look like. There are two main options:

• Points-based loyalty program: Your guests receive a certain number of loyalty points for every euro they spend at your accommodation.
• Booking-based loyalty program: Guests receive loyalty points every time they book your hotel.

3. Choose rewards and benefits for your guests

Think about what kind of benefits you want to offer to your guests. The benefits should be valuable enough to motivate your guests to participate in your loyalty programme. Here are a few ideas for rewards/ benefits:

• Free breakfast
• Discount for the next booking
• Room upgrade
• Early check-in / Late check-out
• Freebies
• Discounts for attractions in the area

4. Promote your hotel loyalty program

To let your guests know about your loyalty program, you need to promote it through various channels. Use your hotel website, social media platforms, newsletters and information material in the rooms.

5. Evaluation of the loyalty program

After one campaign comes the next the campaign - carry out an analysis of the loyalty program by evaluating important numbers such as the number and engagement of participants and the ROI of the loyalty program. You can also conduct guest surveys on the loyalty program.