How Do You Inspire Your Guests to Spend More? Deliver the Right Offer at the Right Time

Author: Ellis Connolly

Data is transforming the hospitality sector. Forward-thinking hoteliers are making the most of historic guest interactions along with real-time and future data sets. They’re unlocking the hidden power of all that rich data with a revenue management system (RMS) that allows them to analyze it in multiple ways to create offers that increase guest spend. Let’s take a closer look at how you can use your data to present tailored offers to guests during those micro moments when they are most likely to convert.

Customer Profiling

Sophisticated data collected at booking and check-in lets you build precise profiles of your customers based on demographics, purpose of stay, needs, and desires. Slicing and dicing this information lets you laser focus your messaging to speak more effectively to different customer segments along their paths to purchase.

A great example comes from Hilton Hotels. The chain learned that a large segment of their customers booked airline tickets first, and hotel rooms about half an hour later. By retargeting customers who recently purchased plane tickets, they increased conversions by ensuring they were there at the exact moment of need.


Timing is everything

Customers have different needs at different points along their booking journey, and data analytics can show you when to make an offer that will get the most positive result. In the planning phase, guests may be looking for specific room and hotel amenities; while on-site, it may be restaurant or local attraction offers that motivate most.

Booking Behavior

Not every customer who’s looking to book responds to discounted room rates. Some respond better to experiential promotions such as local food and wine tastings or a VIP upgrade. Historical data sets reveal past booking behaviors, allowing you to precision-target your packages, and optimize your room rates – choosing a price point based upon how much a guest will spend on your property.

Guest Valuation

While it’s true that every customer is important, some are more valuable than others. You may intuitively believe that guests who purchase lots of extras like room service and spa treatments are your ideal targets. But data may show that it’s the “moderate spender” repeat guest who is truly generating your highest revenues. Understanding who your high-value customers are not only helps you increase guest spend, but also guides you in attracting more high-value customers just like them.


Going mobile

A survey by Smith Micro Software revealed that the vast majority of respondents preferred to purchase and book hotel services (e.g. restaurant, bar, and spa) via their mobile devices. In addition, text messages have a 98 percent open rate versus 22 percent for email marketing. So, whether it’s an offer for mobile check-in, making use of a concierge app, or offering mobile in-room entertainment options, going mobile provides great ways to increase average guest spend.

Loyalty Wins

Gaining new customers is important, but retaining existing customers costs less and increases profit margins. An integrated RMS that shares your data-backed insights with your front-office staff lets you consistently offer guests relevant communications and personalized experiences that increase spending and build loyalty.

Smart hotel operators don’t waste time and effort sending out irrelevant email blasts and promotional amenity offers that miss the mark. Every traveler represents a unique mix of criteria and preferences. By extracting and analyzing key data sets that include context and customer intent, you can predict which offers and channels will generate the best response – increasing guest spend by delivering strategic messaging and promotions at the perfect time and place.

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