Written by: Manon Xenidis
Nowadays, loyalty programs implemented by hotel managers are losing more and more efficiency. Indeed, they barely have any impact during the decision making process. In the worst cases, they can even be considered as having disincentive effects on consumers. The problem is that in order to maintain or increase your market share when you are a hotel manager, you have to foster your guests’ loyalty.
Here are the reasons why your guests are not loyal to your hotel.
In an environment where competition never stops growing, people are getting more and more demanding and critical. If you also consider the current impact of Airbnb on the hotel industry, we can easily tell that managers are facing a hard time when it comes to attract and above all retain their clients. In fact, the hotel industry has been one of the fastest growing industry sectors: over the last 15 years, this sector has risen by 1.6% a year (STR Global). As for Airbnb, you probably know that it consists in an appealing offer for consumers who are attracted by the convenient aspect as well as the good quality/price ratio.
In other words, consumers are now offered a very wide range of options, the consequence of which is a longer and more complex decision making process. They are always seeking the best option.
If guests used to be mostly interested in the price, they are now getting more concerned with other quality criteria. Hotels chains tend to focus on price discounts whereas loyalty is not only built through discounts but also through the quality of the service. Now, regular clients are expected to be treated much differently from any new clients. They want for example free Wi-Fi access, free dinners, the right to choose better rooms or to personalize them without any additional costs.
Thus, you have to better understand your guests’ values in order to better satisfy them.
Being loyal today not only means that you will come back, it also means that you will recommend and promote the place you have been to. Those recommendations are highly important since they represent now important value for hotels. Why? Well, as we said earlier, people are getting more demanding and they consider every option they have when it comes to book a room for holidays. In order to do so, they spend some time seeking pieces of advice, opinions and recommendations on the Internet and mostly on social networks.