Luxury Hoteliers Magazine 2nd Quarter 2017 | Page 62

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 62 ILHA 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