What's Happening?
Cendyn, a global hospitality cloud-based technology company, is promoting a shift in hotel marketing strategies from generalized discount codes to personalized rewards for high-value guests. The company argues
that blanket discount codes often fail to engage high-spending guests, who are more responsive to offers that feel tailored to them. Research indicates that 61% of consumers are willing to spend more with companies offering personalized experiences, yet only 23% report receiving such experiences during hotel stays. Cendyn suggests that hotels should focus on rewarding guests who have already demonstrated a willingness to spend, thereby fostering loyalty and encouraging repeat business. This approach is part of Cendyn's 'Find, Book, Grow' strategy, which aims to identify the right guests, drive direct bookings, and enhance guest loyalty and revenue through personalized interactions.
Why It's Important?
The shift towards personalized rewards for high-value guests is significant for the hospitality industry as it addresses the inefficiencies of traditional discount strategies. By targeting guests who are likely to spend more, hotels can increase profitability and build stronger customer relationships. This approach reduces the cost of acquiring new customers, which is five to ten times higher than retaining existing ones. Moreover, current customers tend to spend 67% more on average than new ones. By leveraging existing guest data, hotels can better understand and meet guest needs, leading to increased spending and enhanced visibility through social media interactions. This strategy not only boosts immediate revenue but also supports sustainable, long-term growth by nurturing loyal guests.
What's Next?
Hotels adopting Cendyn's strategy may implement campaigns that reward guests reaching specific spending thresholds, such as a 'Big Spender 15' campaign offering discounts or perks for guests with a lifetime spend of $5,000. This incentivizes guests to continue booking and spending at the hotel. Additionally, hotels can utilize technology to generate single-use discount codes and automate personalized email campaigns targeting high-value guests. As hotels refine their segmentation and targeting strategies, they can expect increased guest loyalty and revenue growth. The success of these campaigns may prompt further innovation in personalized marketing strategies within the hospitality industry.
Beyond the Headlines
The move towards personalized guest rewards highlights broader trends in consumer expectations for tailored experiences across industries. As personalization becomes a key differentiator, businesses must invest in technology and data analytics to effectively segment and target their audiences. This shift also raises ethical considerations regarding data privacy and the balance between personalization and consumer autonomy. Long-term, the emphasis on personalized experiences may drive cultural changes in consumer-brand interactions, with increased demand for transparency and trust in data usage.
