Keeping guests coming back is the foundation of great hospitality. It is well-known that retaining existing guests costs significantly less than acquiring new ones – according to the Harvard Business Review, it costs businesses 5-25 times more to win over a new customer than to sell to an existing one. Beyond the economics, retaining loyal guests builds long-term brand advocacy. Strategic guest retention is not optional for hotels navigating an increasingly competitive landscape – it is essential.
This blog dives into proven guest retention strategies, upcoming trends, and practical tips to ensure your guests return. Whether you are a hotel manager, revenue manager, or marketing professional, you will find actionable insights to strengthen your guest retention efforts.
What is guest retention in hospitality?
At its core, guest retention refers to encouraging a customer to return to your hotel repeatedly rather than seek accommodation elsewhere. It is not just about providing a satisfactory experience; it is about creating lasting connections and loyalty.
Guest retention strategies cover every phase of the guest’s journey – from their pre-arrival experience to post-stay follow-ups. The goal? Bringing guests back while also encouraging them to become vocal advocates for your business.
The three pillars of guest retention
If keeping guests coming back is your goal, focus on mastering the three Rs of customer retention, a concept originally introduced by marketing expert Paulo Claussen. Here, they are tailored specifically for the hospitality industry.
- Rewards
Offer guests real reasons to return – think discounts, gifts, points, or exclusive access to events and experiences. A solid rewards programme can be a game-changer for encouraging repeat bookings. Perks like free nights, room upgrades, or redeemable points make loyalty rewarding and worthwhile. Just keep it simple – your rewards programme should be easy to understand and straightforward for guests to use. No one likes going through lengthy terms and conditions!
- Relevance
Relevance is all about making the reward experience personal. Hotels need to leverage guest data in smart, meaningful ways. These days, tailored recommendations are not a nice-to-have – they are expected, just like when streaming platforms suggest shows you will probably love. Guests are drawn to hotels that know their habits, predict their preferences, and offer services that feel custom-made for them.
- Recognition
This can be done through better deals, tiered rewards for increasing loyalty, and by welcoming them as part of a special community. How a hotel responds to and recognises guests from the moment they join a program can be critical to building long-term loyalty. From a personalised welcome note to remembering their favourite room type, showing genuine appreciation fosters deeper relationships.
Guest retention benchmarks in hospitality
How does your hotel measure up? Track and monitor your performance on a regular basis is key to finding opportunities to improve. Below are key benchmarks to assess your retention effectiveness:
- Repeat Stay Percentage
A well-performing hotel sees around 25-30% of its business from returning guests. Anything lower suggests gaps in your retention initiatives. - Customer Lifetime Value (CLV)
Track how much revenue a typical guest generates throughout their lifetime relationship with your brand. This metric helps you calculate ROI for retention efforts. - Net Promoter Score (NPS)
Gauge satisfaction by asking guests how likely they are to recommend your hotel. Scores above 70 (on a scale of -100 to 100) indicate strong guest loyalty. - Loyalty Programme Engagement
Monitor metrics like sign-ups, redemptions, and earned points to track the efficacy of your rewards programme.
Guest retention trends to watch in 2025
Staying on top of trends is what sets successful hotels apart. Here’s what will drive guest retention in 2025 and beyond:
1. Hyper-personalisation using AI
The most advanced AI-powered tools enable dynamic personalisation, analysing guest data to tailor experiences, offers, and messaging. AI solutions like HiJiffy integrate with hotel management systems like property management systems (PMS) and customer relationship management (CRM) platforms to provide personalised suggestions from pre-stay to post-stay.
2. Focus on sustainability
Guests are prioritising eco-conscious brands, which we covered in an article on sustainable hotels. Highlight your sustainability efforts, such as reducing plastic usage, sourcing locally, or enabling carbon offset booking options to build brand loyalty.
3. Omnichannel communication
Guests value convenience and immediacy. Enhancing your presence and responsiveness across platforms like WhatsApp, Instagram, and Booking.com ensures smooth interactions at every touchpoint. Covering all channels efficiently can be a challenge, so look for an omnichannel solution that streamlines and automates guest messaging.
4. Instant gratification loyalty schemes
The days of waiting for rewards to accumulate are long gone. Offering instant benefits – free coffee at check-in or perks for online check-ins – increases loyalty in an increasingly impatient world. Remember that to make the loyalty schemes attractive you need to keep them immediate, actually rewarding and, most importantly, easy to understand.
5. Voice-activated services
Voice assistants make it easier for guests to navigate their hotel stay, from ordering room service or extra amenities to checking out quickly and trouble-free. These tools save time for both guests and staff by reducing the need for face-to-face interactions, helping hotels run more smoothly.
Boost retention at every stage of the guest journey
To optimise your retention efforts, you must optimise touchpoints across the guest lifecycle. Here is how:
Pre-arrival strategy
First impressions begin long before a guest steps into your lobby.
- Automate pre-stay communication
Send engaging messages on your guests’ preferred channels with personalised offers, upsell opportunities, and answers to FAQs. Tools like HiJiffy facilitate automated, AI-powered pre-stay campaigns. - Offer digital check-in
Allow guests to bypass the queue at reception by offering digital pre-check-ins from their devices. Convenience goes a long way, and this thoughtful gesture starts their stay on a positive note. - Provide local guides and itineraries
Distinguish your brand by offering tailored itineraries featuring nearby attractions, restaurants, and events. Use data from past stays to personalise recommendations.
In-stay strategy
The in-stay phase is your golden opportunity to turn guests into loyal customers.
- Create memorable first impressions
The first interaction upon arrival should set the tone. A warm welcome message coupled with a personalised touch – even as simple as addressing them by name – creates a lasting impact. - Upsell thoughtfully
Use their preferences to suggest room service, spa treatments, or nearby experiences. Automation tools like Guest Communications Hub handle upselling offers tastefully and efficiently. - Respond promptly to issues
Delayed responses to problems can damage loyalty irreparably. Use tools that prioritise inquiries, like automated AI chatbots, to ensure swift resolutions. - Encourage social sharing
Provide Instagrammable touches – a welcome drink, stunning lobby decor, or locally crafted welcome gifts – and encourage guests to share using branded hashtags.
Post-departure strategy
Engagement does not stop when a guest leaves – it is just the beginning of hotel rebooking.
- Thank guests properly
Automated follow-up messages thanking guests for their stay reinforce positive memories and goodwill. - Send personalised offers
Tapping into their preferences, send discounted offers for their birthday, anniversary, or past activities during their previous stay. - Request feedback
Ask for guests’ opinions through satisfaction surveys. HiJiffy’s AI tools automate this process, ensuring you capture vital insights while the experience is fresh in guests’ minds. - Encourage reviews
Happy guests often forget to leave reviews. Prompt them with a friendly message linking to TripAdvisor or Google.
Guest retention tools that work
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Optimising guest retention starts with the right tools. Here are key categories to consider:
- AI-powered guest communication tools
Solutions like HiJiffy integrate pre-arrival, in-stay, and post-stay functionalities to streamline guest interactions. - Hospitality CRMs
These tools use guest data to create personalised marketing campaigns and improve engagement. - Guest feedback and reputation management platforms
Track guest satisfaction across channels to enhance experiences and identify areas for improvement. - Loyalty programme management tools
Scalable platforms designed to create and manage effective reward schemes that drive guest loyalty.
Make guest retention your top priority
2025 is set to bring new challenges – but also countless opportunities – for hotels committed to guest retention. By aligning with key trends, adopting innovative tools, and refining each stage of the guest experience, you will not only win repeat business but also create a loyal community of brand advocates. Now it is your turn to turn strategies into action.
Book a free HiJiffy demo today to learn how you can integrate advanced guest retention tools that keep your visitors coming back for more.
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