Key Takeaways
- Guests are increasingly looking for unique experiences when they travel
- Personalisation most often drives 10 to 15 percent revenue lift
- From booking to in-stay to loyalty, guest personalisation can impact bottom line
According to research from McKinsey personalisation "most often drives 10 to 15 percent revenue lift, with company-specific lift spanning 5 to 25 percent, driven by sector and ability to execute".
No wonder this is one of the biggest opportunities in the hotel sector because at the same time, travellers today crave experiences as unique as they are. Generic hotel stays don't cut it for today's travellers and that’s where personalisation steps in.
Chris Silcock at Hilton recently told co-star that personalised content was one of the ‘most exciting’ near-term opportunities in travel.
Think about it: if you are travelling for business would you be more likely to book a room with a hotel that highlights its top-notch business centre or informs you of some laptop-friendly cafes nearby? Or one that highlights free things to do nearby if you're on a family trip?
Personalisation allows you to speak directly to your guests, offering them exactly what they're looking for. In a world where everybody craves a unique experience, this translates into happier guests, more bookings, and a healthier bottom line.
Here's how guest personalisation can be your hotel's best revenue driver at every stage of the journey:
Booking: Capture Individual Attention from the Start
Imagine a business traveller seeing a promotion on your website highlighting your top-notch business centre and upgraded Wi-Fi packages. A family, on the other hand, gets an email showcasing your sparkling pool and recommending nearby family-friendly cafes.
By personalising promotions based on past booking behaviours and new data, you ensure your offers resonate with each guest, making them far more likely to convert.
Chris Silcock in his interview mentioned a traveller who enjoys golf. If that traveller's interaction at the pre-booking stage on Hilton's website or app contains golf-related promotions, of course, it is more likely that the guest will resonate with that brand and that hotel.
Information captured during a session on your website, like their interests, can also be used to segment paid marketing channels. If you know that the guest has an interest in golf but did not book on the first visit, then any re-marketing attempts that use golf-related content are more likely to hook them back in and convert.
Pre-stay: Personalised Guest Communications
Guest personalisation continues once a booking has been made but before the guest has arrived. A simple pre-arrival email can work wonders and guest messaging services like Kipsu are increasingly effective channels for personalisation as well.
Effective use of guest data captured either from their activity or from past stays can be put to use to showcase amenities relevant to them. Will the guest be travelling as part of a couple? Showcase your restaurant to them in a romantic light, not in the same way you would to a business traveller. Going a step further, recommend nearby bars that would delight them after their meal.
This personalised touch makes guests feel welcome and informed, potentially leading them to indulge in more hotel services and amenities during their stay.
It all comes down to speaking directly to the guest and making sure that what you have to offer meets their individual needs.
In-Stay: Personalised Guest Experience
We all know upselling can sometimes feel a bit forced. Nobody wants to see a bland menu of up-sells when they check into a hotel, the guest knows exactly what is going on and engagement will suffer. Guest personalisation changes the game again. By understanding guest preferences, you can suggest enhancements they'd genuinely appreciate – a room with a workspace for the remote worker or seats at the chef’s table for a couple. This way, the upsell feels more like a thoughtful suggestion rather than a clear sales pitch, leading to increased non-room revenue without any awkward pressure.
The same is true for ancillary revenue opportunities like tours and activities. A family should be seeing very different promotions to a couple or a business traveller. It’s not just the guest type that affects personalisation, but also factors like weather, seasonality and time of day. Nobody wants to go on a walking tour when it’s raining and coffee is more appropriate than cocktails in the morning.
Guests want to live like a local, so don’t just be a place to stay, be a host. Leverage guest data to suggest personalised itineraries. A family with young children might appreciate recommendations for nearby attractions or kids shows, while a solo traveller might be more interested in hidden historical sites.
This not only enhances the guest experience but also encourages them to explore the local area, potentially spending more in your neighbourhood. The best part? They are seeing the city through your eyes, and your brand.
Post-Stay: Building Relationships By Knowing Each Other
By speaking to everybody as individuals, guest personalisation is all about making them feel valued.
- Remembering their room temperature preferences?
- A complimentary drink based on their past choices
- Showing the guests around the city
These small touches show you care, fostering loyalty that keeps them coming back for future stays.
Beyond their experience, revenue is also driven through the rich data that you collect in the process. What are their interests? What sort of cuisine do they enjoy and at what price point? It is wrong to assume because someone is staying in an expensive five-star hotel, they only eat in expensive restaurants. Everyone is different and building an understanding of each guest that can be used in future marketing and stays, is core to driving long-term revenue lift.
Personalisation isn't a buzzword; it's a powerful tool that allows you to connect with guests on a deeper level. By catering to their individual needs and desires at every stage of their journey, you create a more relevant and enjoyable experience. This translates into increased revenue, repeat business, and a hotel that thrives in today's competitive landscape.
Obvlo is an AI solution for personalised, dynamic destination content. Our solutions are used by global brands to display high quality and relevant content to guests from before they book to each day of their stay. Get in touch to see what we can do for you.
