How to Increase Your Holiday Cottage Repeat Bookings
Holiday letting businesses are often guilty of spending a small fortune to attract new customers, whilst neglecting their past customers. On average, it costs 5-10 times more to acquire a new customer than to retain an existing one.
Encouraging guests to return, rather than acquiring new ones, not only reduces your customer acquisition costs but also your workload. Loyal customers also provide invaluable word-of-mouth recommendations and reviews that help grow your holiday cottage business.
Here are some tips on how to implement a loyalty program that encourages guests to return.
Why customer loyalty matters
Loyalty programs make guests feel part of something exclusive. By signing up, they have access to lucrative benefits that others don’t. A loyalty scheme makes guests feel special and a valued customer. In turn, this encourages them to rebook your property.
It’s a great marketing tool that gives you a competitive advantage and ultimately shows you are eager to reward loyal guests and value their custom.
Past guests also ask fewer questions as they’ve already been to the property, saving time, which equates to more productivity.
How to foster guest loyalty
People are creatures of habit and often return to the same place, but you’ve got to give guests a reason for wanting to return. In a sense, you’ve got to give them such an amazing experience that they wouldn’t consider going elsewhere.
Here is what you should be doing to keep guests loyal.
Exceed expectations
Most people choose to stay in a holiday home over a hotel for the extra amenities and sense of space. It’s essential that you over deliver on what’s promised in your marketing, so you get a “wow” from your guests when they walk through the door. From your amenities to the booking procedure and follow-up, everything must be 5*. The devil is in the details, and it is the small things that complete the experience and resonate with guests.
For example, if a guest asks for a restaurant recommendation that serves authentic local dishes, avoid tourist traps recommended by travel guides. They will appreciate you booking the best table in your favourite restaurant for them.
The easiest way to build customer loyalty is to simply be the best out there.
Say thank you
Guests are more likely to be loyal if they feel valued. Leaving a personalised, handwritten welcome card or a simple “thank you for your stay” email once a guest checks out is always appreciated. Good manners go a long way as it shows guests you value their custom.
Act on feedback
Always ask guests for feedback upon their departure, and if there is anything that could be improved. This not only gives you ideas for continual improvements, but it also shows guests you value their comments and that you are constantly striving to improve. Again, making them feel valued.
You should also read your competitors’ reviews for ideas which you can implement at your rental.
Build a brand
Build a brand that holidaymakers will remember. For this, you’ll need to have a memorable name, a website and social media accounts that provide all the essential information someone visiting your location needs to know.
You can also give guests useful branded gifts, a souvenir (so they will remember their stay with you) such as a keyring torch, mug or cuddly teddy.
Holiday cottage guest loyalty program ideas
There are various loyalty programs that you can use to entice holidaymakers to rebook. You can learn a lot from what hotels do, but unlike hotel chains, you have the freedom to be as creative as you want with your unique rewards.
Some of these ideas may be more suited to holiday cottage agencies or owners with multiple properties. It all depends on which one is most likely to work for your holiday home.
Offer an incentive to rebook
Rewarding guests who rebook is the No. 1 tried and tested method to encourage loyalty. A discount on the price of the next booking, a free night, priority booking for peak weeks or honouring last year’s rates means your guests will feel valued, appreciated and special.
Building loyalty enables you to stand out and stick in the mind of holidaymakers. If they remember you and have a positive experience, they’re likely to rebook with you. Especially if you offer an incentive.
Point system
The most common loyalty program is the point system, where guests receive a small reward for joining the rewards program, and repeat bookings are encouraged by increasing the value of the rewards for each stay. These can be redeemed for discounts, free nights, or other perks.
A points system rewards initial loyalty and encourages guests to stay more frequently, and it gives you the chance to reward your best customers.
For example:
-On joining, £10 off all bookings.
-When booking a 7-night stay, £20 off all bookings.
-When booking a 14-night stay, £30 off all bookings.
With every booking, customers are also entered into a monthly competition to win a £50 holiday voucher.
Partner with local businesses
Strategic partnerships can also be effective in increasing guest loyalty by making them feel like they’re getting a fantastic deal when they re-book.
Negotiate offers with local businesses which your guests are likely to visit/use during their stay. It could be that the local pub, spa, theme park or theatre gives guests staying at your property a discount or something extra that isn’t available to others.
Refer a friend
Referrals are one of the most powerful and valuable ways of getting bookings. Consumers trust referrals from people they know and are more likely to use a product or service when referred by a friend.
Encourage past guests to recommend that their friends and family book to stay at your holiday cottage, and reward them and the new guest for recommendations that turn into bookings. Typically, this would be a discount off their next stay (for both parties) or a voucher. The more referrals they send, the bigger the reward.
If previous guests haven’t referred anyone in a while, don’t forget to occasionally send them an email to remind them of your referral programme.
Welcome gifts
Guests will be used to a typical welcome basket on arrival that supplies the basics. Everyone loves a freebie, and your customised welcome basket is an opportunity to delight guests when they arrive. Leave fresh flowers, bath products, local produce, slippers, toys or dog treats – depending on the type of guest. It’s a little something that shows your appreciation.
Giving a free gift will help create loyalty and activate the law of reciprocity.
Here are some tips on how to create the perfect welcome basket.
Provide extras
One of the biggest frustrations when going on holiday is being charged for extras (baggage, booking seats, etc.), and on the flip side, everyone loves getting something extra. There are multiple ways in which you can delight guests by providing extras for free to enhance the guests stay. This could be a mid-week clean, early check-in/late check-out or a waiver of the pet fee.
Try to find out about the purpose of the guests visit when they book. Are they celebrating an anniversary or birthday? Using this information, you can surprise them with a congratulations card or gift.
Take it a step further and offer a concierge service for guests.
Charitable programs
For some, supporting a charity is enough of an incentive to book. For every pound spent, a percentage could be donated to a local charity of your choice. For example, if you are a dog-friendly rental, then you could choose an animal charity, fix the fells if you are in the Lake District or RNLI if you are in a coastal resort.
By doing this, your guests know that you’re a caring person and are likely to be a credible host.
Ask guests what they want
Ask your guests what would encourage them to return and what rewards would make them happy. You could ask them to fill out a survey while they’re staying at your property, or after they’ve checked out.
This way, you can ensure your rewards are useful and entice repeat visits.
The average person signs up to 14 loyalty programs but only engages with half of them. If you’re asking customers to make the effort and join your customer loyalty program, make it worth their while.
How to manage a guest loyalty program
Promote it
Exposure is key to running a successful loyalty program. In addition to emailing recent guests with details of your loyalty scheme, engage with potential holidaymakers on social media and tell them about the benefits of signing up to your loyalty program.
Alongside this, you’ll want sign-up forms on your website and leaflets in your holiday home that promote the benefits of your loyalty program.
You can keep in contact with members through a newsletter that contains news about local events, a special offer, a late deal or a simple reminder that it’s been a year since they last stayed. Personalise your emails by remembering their (or their dogs) name or mention something specific about their trip. Simply dropping these little details into a conversation makes guests feel remembered and valued.
Automate it
Use a PMS (property management system) to collect and store guest/loyalty scheme member data. You can then send automated emails to your loyalty scheme members on special occasions, like their birthday or seasonal holidays.
If you don’t use a PMS you could store email addresses on a spreadsheet, or use an email marketing platform such as MailChimp.
Measure the effectiveness of your loyalty program
Once you’ve got the loyalty scheme set up and running, you’ll need to analyse the effectiveness of your loyalty program.
You should be measuring:
- The number of people who sign up to your program on a weekly basis, and whether these are past guests, refer a friend or have signed up via your website/emails/social media.
- Are people using your loyalty scheme? You can track this with unique tracking codes that guests can use when booking.
- Which rewards are the most popular? Adjust your strategy accordingly to maximise impact.
To summarise
Loyalty programs lead to higher occupancy rates and increased revenue. They also enhance the overall guest experience, which leads to positive reviews and recommendations. But loyalty rewards on their own aren’t enough to attract repeat guests. No amount of discount will encourage guests to return if they didn’t have a good experience.
What type of customer loyalty program does your rental use?