Marketing Success Story - Alua Hotels Loyalty

The objective of this project has been to create a brand for the chain's Loyalty Club, which would show Alua's clients the advantages of subscribing to it. In addition we made possible customizing the PrivyLoyalty software with the agreed-upon programs and integrating them with the HubSpot CRM chosen by the chain to execute the appropriate direct marketing strategies.

Alua Hotels & Resorts

Alua is a young hotel chain which aims to acquire and manage hotel establishments. With the intention of focusing on the Spanish holiday market, it concentrates its activities in the Balearic and Canary Archipelagos and on the Mediterranean Coast.

The chain offers a beach holiday that is modern, unique and fun. Creates cozy atmospheres by reforming hotels and repositioning them in the market. The company also designs, in a flexible way, a customized solution for each hotel and it differs in each one of the markets in which it is present.

Aware of the expectations of its customers, Alua works on the innovation and implementation of tools and resources necessary to acquire information about their preferences and needs and to keep up with the best customer service practices to reinforce their reputation and positioning in the market.

The Challenge

Since there is great competition in the tourism sector, studies have proven that to get new guests it is necessary to make more efforts and use more resources. On average, earning a new customer costs 7 times more than keeping a current one. In other words, the acquisition of customers is more expensive for hotel chains, regardless their size, so having loyal guests is increasingly important.

However, the current hotel customer is a demanding consumer who does not conform to the classic direct customer service techniques. For this reason, to feed the interest of travel consumers and motivate them to repeat their reservations with the chain, it is necessary to implement a loyalty strategy. In facts, by increasing client retention rate by only 5% can raise profits from 25 to 95%.

However, not all strategies are the same. Although the hotel sector has been one of the pioneers in implementing loyalty clubs for its clients, this practice has been limited by the use of basic techniques for a long time. Benefits such as discounts or promotional codes are still important, but many hotel brands still provide the same ones. Nowadays it is necessary to recognize the power of users and make a difference with a personalized approach that helps generate engagement, for which it is necessary to know what their preferences and needs are.

In addition to this general scenario, Alua Hotels had to face the need to integrate two loyalty programs that previously operated in two of the hotel chains that it had acquired, with a database of loyal customers to retain. So, how could Alua gain true loyalty from its clients while showing the values of a new loyalty club?