Using
Relationship
By Michelle Marquis
Many luxury hoteliers eschew traditional
consumer rewards programs. Some
forgo rewards to instead focus on
travel agent loyalty initiatives. Others
know that the hotel rewards system is
generally broken, and further, that the
structure of most programs with their
points and deals doesn’t align with luxury
branding. But the main reason luxury
hotels don’t adopt rewards is that they
must create loyalty not through points
but through superlative guest service;
this is the key to their guests’ hearts in
the long term. Study after study shows
that guest service is what brings luxury
guests back.
According to Gallup research, it is the
“emotional connection with guests
during their initial stay” that makes
them likely to return“ even if another
brand is offering a better price or more
desirable location.” Instead of loyalty
being bought by lower rates, luxury
hotels have the advantage of increased
rate resilience when loyalty is earned.
But if loyalty programs aren’t the
answer to driving repeat business from
loyal guests, then luxury hotels must
learn how to extend that emotional
connection through their marketing.
This is especially critical at a time when
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travelers are increasingly keen to explore
new accommodations and destinations
and enjoy unique experiences, and
when loyalty is on the decline. (Should
you need evidence, three-quarters of
consumers are no longer brand loyal.
And as Forbes notes, today’s traveler
sentiment is “’New’ is better than
‘known.’” )
Sharp marketing can increase loyalty,
but poorly executed marketing will erode
it. Loyalty comes from creating positive
emotional connections with your
guests through engaging interactions
that build brand affinity over time,
building the relationship. Where hotels
sometimes get into trouble is separating
marketing from the whole of hospitality,
like sending correspondence without
considering how it supports the brand
promise. You can offer a special package,
but you’re better served by reminding
guests that you’ll take care of them in an
exceptional way. And impeccable timing
is crucial because we all know there’s a
lot more to messaging than just words.
Sophisticated, thoughtful marketing
reinforces perceptions of luxury and
high-touch service.
Consider that recognition,
personalization, and timeliness are
among the top essentials for luxury
guests. Each of these can and should be
applied to marketing in order to boost
loyalty and strengthen the relationship.
Recognition is the simplest goal
to achieve. Ensure that every
correspondence uses the guest’s full
formal name. This includes email, direct
mail, and outbound calls. For luxury
hotels, it is imperative that caller ID
is linked with guest history, as well.
When a guest calls, whether in response
to a marketing campaign or not, the