When strategizing your hotel prices, especially the room pricing, you really need to look into guest retention. Retention pricing strategy revolves around keeping pricing at a point which boosts guest pay without seeming too much for them allowing you to earn a profit through it. You have to watch more closely to your guests’ booking habits and what the competitors are offering. This will give you an understanding of where your price needs to stand. We will be sharing a few tips on how to boost guest loyalty and profitability through pricing; from strategizing your hotel product purchases such as DZEE pool towels, bedsheets, and more; to the services you can offer.
By understanding how to boost guest loyalty and profitability through pricing; you allow guests to better manage their travel budgets and give your finances a push also. Retaining guests is not as easy as most people think it is; you need to be smart how you implement the retention pricing strategy.
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1. Retarget Frequent Guests
Priority guests are always those who choose you even without running discounts and deals.
Guests who always choose you over other hotels are the people you need to keep interested the most. Focusing on new leads is important but retaining old guests should be a priority. You can offer them special discounts or deals depending on how often they visit you and how long they stay with you. Whenever you have a new deal, an occasion is coming close; or you’re aware of their travel habits, send out emails to let them know they have a budgeted comfortable hotel room waiting for them.
2. Length of Stay Retention Pricing Strategy
The longer a guest stays, the more chances you have of converting them into a loyal guest; your hotel prices here play a significant role.
When you have guests who are staying for a long stretch of time; you can base a pricing deal that allows them some stretch in their budget. Base the prices on stay length, shorter stay doesn’t require any discounts. But lengthy stays can definitely boost guest pay discounts. This allows guests to relax a little and even consider you for their next travel plans. The less it costs for them to stay longer; the more they are likely to spend on other services where you can boost your profitability.
3. Boost Guest Pay with Incentives
Guests need to hold on to a pricing discount incentive that can be redeemed all through the year.
When focusing on how to boost guest loyalty and profitability through pricing; you need to come up with a retention pricing strategy that is not seasonal. Instead of focusing on occasions and seasonal discounts give your guests loyalty programs or cards that allows them to earn rewards and avail discounts throughout the year. Allowing guests to earn rewards and then proving them with a monetary discount is one of the most common forms of retention pricing strategy. It is effective in many ways for the hotel.
Which retention pricing strategy according to you boost guest pay that increases guest loyalty and profitability simultaneously? Let us know in the comments below.
