Be smarter about loyalty
In our industry, we tend to pay great attention on attracting new guests, so much so that it dislodges our focus from nurturing loyalty among past guests.
In the article titled “Do as I say, not as I do” by Phil Harrison, which we carried very recently, he wrote that despite having stayed over 20 times at a 5-star hotel by the lakeside in Colombo, he and his wife had to endure a registration process that lasted over twenty minutes. And, in spite of having made his booking four months ahead for his visit in March 2024, he didn’t get the room of his choice either.
If you’ve stayed with a brand for years and you walk up to the front desk, and the agent coldly treats you as a first-time visitor, the hotel has reset your relationship back to zero.
As Giovanni Angelini, a 50 year veteran of the Hotel-Hospitality-travel industry puts it, “Loyalty is the lifeblood of any successful business, and the hospitality industry is no exception. Successful loyalty programs are one of the most effective tactics in marketing and sales activities. It's imperative to constantly monitor and manage the bookings made through this essential channel, ensuring you differentiate yourself from competitors.”
When one has stayed previously at a hotel and is then asked by the receptionist during check-in, “Have you stayed with us before?’ it can be annoying. It gets one thinking “Don’t they record and monitor my previous stay/s?” There are hotel brands that do that, and there are those that don’t or cannot – unless one books directly with the hotel. Why? Because if you use a third party channel, (as the Harrisons did) some hotels / brands, are unable to accurately match the data provided by a third-party channel, such as an online or offline travel agent, with its records. Hence, recognising guest loyalty gets tossed out of the window.
This occurs particularly with hotels that, instead of investing in newer and nimbler, specialized customer relationship management systems (CRM), continue to use tech stack that is legacy and is not inter-operable, as IT people would explain. Legacy applications include outdated computer systems, programming languages, or software applications.
For hotels, this might comprise room booking systems, CRM software, or point-of-sale (POS) systems that have been in place for many years. These outdated systems can pose challenges for businesses relying on them, leading to fragmented operations and a disjointed customer experience. Despite changes in technology, many hotels have to grandfather existing systems because the cost of bringing them upto standard is huge.
Furthermore, front desk staffs tend to assume that those who book via a third party, are first-time or one-time stayers or both. Hence they don’t or find it convenient to not carry out a name search. Repeat guests, who are loyal to the hotel, but not necessarily to the booking channel and use a Travel agent or OTA, thus lose out!
Then there are hotels that fail to encourage direct bookings through their websites to establish a more direct relationship with guests. Did anyone at the Cinnamon Lakeside Hotel ask Phil Harrison during his stay, to book direct with the hotel for his next visit! Did he receive any email from the hotel after completing his stay to entice him to book direct on his next visit? I bet you he did not!
A repeat customer is exceptionally valuable to any businesses’ bottom line. While new customer acquisition is undeniably vital for profitable growth, it’s equally essential to cultivate and care for relationships with your existing customers. A thriving business masterfully juggles drawing in new customers while delivering superior quality and customer service to its current customer base.
Shafeek Wahab – Editor, Hospitality Sri Lanka, Consultant, Customer Service Trainer and Ex-Hotelier
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