Sunday, March 11, 2007

"The Gospel of the Repeat Guest".

When is someone considered a repeat customer? Everyone has their own definition, but the repeat customer can be based on but not limited too : your previous stays- are you considered a repeat on or after your second visit? The time period in which you visited- is it once in the the last year or three times in the last six years? The purpose of your visit- were you a tourist on your first visit and now part of a delegated committee- are you a repeat then? How do the hotels know- do you tell them that you are a repeat client or can they retrieve it through their system? The guest history displayed at the front desk is about 70% accurate. Repeat customers are always good to have but do they save on the marketing dollars? Hotels send different messages to lure customers back, but they still have to keep in contact with them. How much revenue is lost in providing upgrades to repeat customers? When they return to the hotel, do they spend as much as they did the first time? Is the hotel generating enough income to accommodate them again? Is it worth it? Can hotels depend less on luring clients back and depending on the customers spreading the word about the good experiences through word of mouth and gaining more business that way? They will after all tell their friends and families about the experiences they had, so why not treat the new customers with as much attention as the repeat?
This article was might interesting, in that I never thought about how much money the hotel can spend in trying to lure a clients back to the hotel. What do they do, the money that they sometimes lose by the guest who comes back but does not spend as much. The next time I check into a hotel I will have to look at how they measure a repeat customer, how do they keep track of that customer and what lengths do they go to to retain that customer.
Schubach, M. & Phillips, L. (2006, June 16.).   Hospitality Upgrade: Customer | Relationship Management:
Thou Shalt Have No Other Guests Before Them
. Retrieved March 09, 2007.
from , Michael Schubach, CHTP, is the VP of resort technology for ClubResorts, the resort division of ClubCorp.
Lisa Phillips is the director of ClubResorts' guest centric marketing. Web site: http://www.hospitalityupgrade.com/_magazine/magazine_Detail.asp?ID=4
 


 
 

 
 

3 comments:

Anonymous said...

It is always interesting to determine what different hotel companies classify as a repeat guest. I think a repeat guest is anyone that chooses your hotel more than once. The hotel should have all client information, whether they stayed there last week or five years ago. It doesn’t always matter how much money they spend on each stay. What matters is the fact that they keep coming back, so the hotel must be doing something right. Repeat customers, most likely, tell their colleagues, family, and friends about their stay. It is always important to remember that bad word of mouth spreads faster than good word of mouth. It is important for the hotel employees to treat every guest as though they are a repeat guest. Repeat guests hold more probability that they will bring more business to the hotel the next time they come. So in closing, all hotels and their employees should treat every guest as though they are repeat guests. This will increase the good will of the hotel, especially if their stay was a good one.

MartiniNorway said...

I have never looked at the business of keeping the repeat guest this way. A very intersting angle, and there are both for and against. It is important to see that the intangible value word of mouth has plays an important part. If Mr. X is asked by his business-partners:"hey where are you staying while you are in New York" the answer Mr.X is giving has a huge value if he always says Hotel Y at Manhattan. But of course how do you define a repeat guest, and how do you decide if you give guest A or B an upgrade. The importance anyway for us in the hospitality industry is that we give all the guests the same high level of service, as they are all paying for a product. You never know who is who and can spread a good word of mouth, which again can be more valueable then any marketing- strategy.

ali duloc said...

This is interesting, I never really thought about what hotels had to do to guarentee repeat customers. It seems that they might have the potential to actually lose money if the customer has stayed with them before. I guess I could see the fact that if a new customer was staying with them and didn't really know what to expect, they would be more willing to pay a higher price because they would not have a price to compare it to from the last time. At the same time, attracting new customers requires a lot of spending on advertising. I guess it would depend on how the hotel tracks repeat customers to determine if it costs them more to do that than to advertise.