However, guests that come back, also known as Repeat Guests are the bests.
Why?
Repeat guests can add as much as 20% to the total room revenue.
Advertising, OTA commissions, promotional offers, and even salaries for your sales team lead to a New Guest Acquisition Cost (GAC). These costs can add up to 15-20% of the total room revenue generated by the new guest, according to rentl.
Property managers don't need to spend heavily on marketing to convince a returning guest. They might offer loyalty programs with benefits like points, discounts, or exclusive offers to incentivize repeat stays. These programs have a lower cost compared to acquiring a completely new guest.
Why are they typically cheaper to acquire?
Repeat guests have already experienced the your brands service and amenities firsthand. They trust the brand and are more likely to book directly without needing extensive marketing persuasion. Repeat guests are also more likely to book directly through the your website or loyalty program, which avoids commissions paid to OTAs.
They're also cheaper to acquire because reaching them can be done for a fraction of the cost of what it took to get them to book in the first place. Property managers can leverage email marketing, text marketing, targeted promotions, and loyalty program perks to nurture relationships with repeat guests, encouraging them to return without needing expensive advertising campaigns and battling for visibility with thousands of other offers and accommodation products.
With repeat guests, you've got a lot more Trust and Past Behavior
The communications with repeat guests are going to be much easier and less time intensive
Word of Mouth Referrals will ensure that guests that your guests have recommended will probably fall into the same bucket. They'll behave similarly, treat your property with the same level of respect, and be as high a quality a guest as the original one that stayed with you
Since you already know their preferences, repeat guests are more receptive to upselling room upgrades or other services tailored to their interests and specific needs. For instance, most property managers have a conversion rate of under 30% when offering a paid early checkin. However, when upselling an early checkin to a repeat guest the conversion percentage can be as high as 70%.
Other upsells are equally successful, and having this existing relationship with a guest allows you to build packages or other offers for them which are in line with what they've previously purchased.
When it comes to predictable income, repeat guests are a game-changer for short term rental property managers in a few key ways:
Reduced vacancy risk: Short term rentals have a perishable inventory – unsold rooms today can't be sold tomorrow. Repeat guests help fill rooms consistently, especially during traditionally slower periods. This reduces the risk of vacancies and ensures a baseline level of income throughout the year.
Seasonal fluctuations: Many property managers experience seasonal swings in demand. Repeat guests who travel frequently for business or have a tradition of visiting a particular destination during specific times can help smooth out these fluctuations. Their consistent bookings provide a reliable source of income during off-peak seasons.
Improved forecasting: With a solid base of repeat guests, property managers can more accurately predict future occupancy rates. This allows them to budget effectively, plan staffing needs, and optimize pricing strategies. They can confidently invest in marketing campaigns aimed at attracting new guests during peak seasons, knowing they have a reliable foundation of repeat business.
Long-term value: Repeat guests become more valuable over time. As their loyalty grows, they might book longer stays,spend more on amenities, or even become brand advocates who actively promote the your properties. This predictable income stream from repeat guests provides a strong foundation for your businesses financial health.
Loyal advocates are essentially your brands biggest fans – the ones who not only return themself but actively spread the word and convince others to stay with you as well. Here's how repeat guests can blossom into powerful advocates.
Word-of-mouth marketing: In today's digital age, online reviews and recommendations hold immense weight.Happy repeat guests are more likely to leave glowing reviews on travel websites and social media platforms. This positive word-of-mouth marketing is considered highly trustworthy by potential guests, influencing their decision-making process far more than traditional advertising. Sharing, tagging you in their socials, shoutouts on socials all go a huge way.
Brand ambassadors: Some truly loyal guests can become unofficial brand ambassadors. They might participate in online forums or travel communities, enthusiastically recommending your brand or properties to others seeking recommendations. Their genuine enthusiasm and firsthand experience hold more weight than any marketing message crafted by your brand itself.
Targeted marketing opportunities: With a loyal advocate base, property managers can leverage their enthusiasm for targeted marketing campaigns. Positive testimonials or user-generated content can be incorporated into marketing materials,further amplifying the power of word-of-mouth recommendations.
By fostering a strong relationship with repeat guests and nurturing their loyalty, property managers and short term rental hosts can turn them into powerful advocates who bring in new customers organically, strengthen the brand image, and ultimately contribute significantly to long-term success.
While all guests contribute to the success of a hospitality business, repeat guests stand out as invaluable assets. Their lower acquisition costs, reduced risk factors, and propensity for upselling make them not only financially beneficial but also easier to manage and predict. Moreover, their potential as loyal advocates who amplify your brand through word-of-mouth and social media cannot be overstated. By prioritizing the satisfaction and loyalty of repeat guests, property managers can cultivate a stable income stream, enhance their property's reputation, and lay a strong foundation for sustained growth and success in the competitive hospitality industry.