Why Your Hotel Needs Repeat Customers More Than Anything Else



Like any business, customer loyalty is an important factor in a hotel’s success. Of course, all customers are valuable, but you cannot discount the importance of repeat customers.

The real profits lie in retaining your customers. They don’t just come back, they bring others with them. Let’s take a detailed look at why your hotel needs repeat customers more than anything else:
  1. Good Word-of-Mouth

It’s common knowledge that most customers rely on reviews to choose a hotel when they travel. Do you know what they trust more than online reviews?
Recommendations from their friends and family.
And your repeat customers will more often than not recommend your hotel to others, helping you get continuous revenue from just one customer. Get several loyal customers, and you’re looking at consistent and reliable revenue generation.
  1. They Spend More Money
A survey by smile.io found that repeat customers are the most profitable. The reason is simple: repeat customers are so happy with your hotel that they are willing to spend more on their second and subsequent visits.

That means you can upsell your services to them easily. Offering room upgrades at higher prices, special services etc. is easier with repeat customers because they’ve been here before and have liked the place enough to come back.

Of course, the challenge here lies in providing the best guest experience possible at your hotel and building a relationship of trust and great communication with your guests. This way they know they’re coming to a place where they feel comfortable, and are more likely to spend.
  1. Customer Acquisition Costs More
A recent study by Hotel Online found that the costs of customer acquisition in the hospitality industry are consistently increasing. It costs 5 times more to acquire a guest than to keep one.
These trends are a result of the rising dependence of the industry on technological advances, high OTA commissions, higher marketing costs due to heavy competition etc.
So, wouldn’t it be more profitable to keep a customer than to get a new one?
That doesn’t mean you shouldn’t look for new guests... It just means you should focus more on turning them into repeat guests.
Woodstock Digital is an advisory firm for businesses in the hospitality industry. We offer end-to-end solutions to ensure your hotel rises above the competition earns higher revenue in your location.


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