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How to Increase Your Hotel’s Revenue through Personalization and Segmentation

Hoteliers are leaving revenue on the table, and marketing practices like personalization and segmentation are a sure fire way to tap into it.

A study showed that 76% of all hospitality email marketing revenue comes from more advanced practices like personalization and segmentation than a generic broadcast email. Personalized  communications and services are on the rise, and hoteliers cannot afford to dismiss marketing automation processes and tools.

Hoteliers often underutilize marketing communications, probably due to the lack of proper tools, process, or proper training of using marketing automation tools. Here are a few ways you can begin personalizing your guests’ experience:

Personalized Communications Improve Guest Experience

Guest data collection have made personalization one of the leading factors in hospitality marketing communications. Personalized emails and other content are more likely to engage potential guests by building a relationship with them, and providing them with relevant  services at the right time.

The best way to connect with a guest is to personalize communications by addressing emails directly to the guest. When you have a lot of guests though, this becomes a task that is both time consuming and tedious. Marketing automation helps automate such tasks that result in increased purchases and higher revenue. Studies have shown that personalized guest experiences lead to an increase in buying and positively impact brand sentiment.  

Guest Segmentation Drives Revenue

Segmenting your guests is one of the keys to personalized marketing communication. If you’re working with a raw database of potential guests, you should focus on segmenting them based on parameters like geographical location, where they fall in your sales cycle, their preferences, or their history.

For example, if you have a guest that has stayed with you before in Bali, and they liked outdoor activities, you could send them a personalized email welcoming them back and offering them special packages for treks or nature walks. Your message could look something like this:

Different segments of guests should be sent different messages that are valuable and relevant to them. Targeted marketing emails produce 30% more opens and 50% more click-throughs.

Using the right medium of communication is also important. Email is generally the most common way that hoteliers send content and promotions; however, if a particular segment of guests aren’t opening your emails, this could be an indication that there might be a better way to communicate your message. Some of your guests might respond to emails, while others might respond better to text messages or social media content.

Good Guest Relationships Translate to Brand Loyalty

Vast amounts of guest data is good, but not useful without a solution to make sense of the data for you. CRM tools can help you collect guest data and preferences and present it in useful formats, but without a marketing automation tool, all that insightful data might go to waste.

Imagine a guest that has stayed with you before, and you have their stay history to indicate that they like using the gym, spa treatments, or are likely to book an excursion. Through AI, your marketing automation tool can automatically send a personalized in-stay communication to that guest with upsell cards that offer discounts on relevant services. What’s more, you have incremental revenue coming in with no effort whatsoever!

Good guest relationships lead to brand loyalty, increased revenue, and an increased number of promoters. Personalization the key to building better guest relationships, and marketing automation is the smartest way to do it.

Marketing Automation Drives Revenue

Placing relevant options at the right place through marketing automation is extremely effective at converting potential guests into paying guests. Further, marketing automation helps increase the relevance of the options displayed which makes guests more likely to stay with you again in the future, or buy an additional service like a spa treatment.

Relevant, timely placement of buying options inevitably increases your revenue. Marketing automation can be used to slowly push your leads down your marketing funnel, leading them closer to becoming your guest. Additionally, guests that have already visited you once, can be turned into repeat visitors through various loyalty campaigns or CRM tools and Marketing Automation Tools.

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