The following is a guest post from Mo Chaar, chief commercial officer at Givex. Opinions are the author’s own.
The summer travel season is not just a busy time for hotels, but also a litmus test for how effectively the industry can harness technological advancements to meet the increasingly complex demands of today’s globetrotters.
Hoteliers, in particular, are tasked with maintaining a high standard of service while anticipating the needs and desires of a diverse clientele that increasingly values flexibility and personalization.
The strategic use of tech stacks is integral to crafting unique travel experiences that resonate with modern travelers and drive revenue growth for savvy hotel operators this summer.
Tailoring loyalty programs
One of the most effective tools at the disposal of hoteliers is the personalized loyalty program. In today's travel landscape, loyalty programs are not just a perk but a necessity, especially when catering to the expectations of younger travelers like Gen Z. Some 44% of Gen Z travelers utilize travel loyalty programs, up 11 percentage points from 2021, according to research from Morning Consult.
By leveraging omnichannel point-of-sale systems, hoteliers can access valuable data on guest spending habits and preferences. This data not only allows for the creation of customized loyalty schemes, but also enables the offering of targeted promotions, incentives and discounts.
Skyscanner recently shared that more than half of its website and app users are still determining their destination and date of departure, for example. This flexibility suggests that brands in the travel industry should be taking a more dynamic approach to travel arrangements and promotions, allowing individuals to adapt their plans over time.
Hotels should also prioritize top guests and attract others who share similar interests or backgrounds. With customized incentives and appealing rewards, hoteliers can expect enhanced guest engagement and satisfaction, which naturally fosters repeat visits.
Enhancing guest engagement
The ability to personalize extends beyond loyalty programs. With technology and POS-driven, real-time data, hoteliers can also tailor their marketing campaigns to highlight ancillary experiences that align with the interests of their guests.
Hilton’s 2024 Trends Report demonstrated the increasing enthusiasm for immersing oneself in local and regional food culture, for example, with 86% of survey respondents expressing interest. A hotel could arrange city tours focusing on history, architecture or gastronomy, guided by local experts, which could be customized based on the guests' previous interactions with the hotel or indicated interests in their loyalty program profile.
Or, if a guest has expressed interest in spa services before, the hotel might highlight spa packages or related promotions. If guests are families or pet owners, customized benefits such as activities suited for children or amenities accommodating pets can significantly enhance their experience.
Artificial intelligence is another powerful tool for hotel owners in this regard, providing deep insights into guest behavior and preferences. AI can analyze vast amounts of data quickly and accurately, identifying patterns that might be missed by human analysts to offer hyper-personalized offers or upgrades. Whether it’s suggesting a room with a view, a preferred type of pillow or an activity based on previous stays, these personalized touches can enhance the guest experience and encourage repeat visits.
On the operational side, an omnichannel POS system and loyalty program also enables hoteliers to communicate directly with guests. And AI-powered chatbots and virtual assistants can handle guest inquiries and requests 24/7, providing immediate assistance and improving guest satisfaction.
Optimizing revenue
Technology also plays a pivotal role in optimizing revenue. By analyzing the data collected from their tech stacks, hoteliers can identify high-margin products and services that appeal to their clientele and prioritize their strategy accordingly.
For example, recent trends indicate a shift in travel spending among generations. This provides an opportunity to realign marketing strategies to focus on the preferences and spending behaviors of different generations, particularly younger demographics.
Moreover, loyalty programs prove to be a significant revenue booster, with loyalty members spending between 12% to 18% more annually than non-members, according to a report by Gitnux. By encouraging repeat bookings and fostering brand advocacy through rewards, hotels can enhance guest satisfaction while substantially increasing their bottom lines.
AI can play a key role here by analyzing historical booking data, market trends and external factors like local events and holidays to predict future demand more accurately. Through machine learning algorithms, AI can also assess competitor pricing, booking windows and customer behavior to recommend the best pricing strategies, or streamline operations by automating routine tasks such as inventory management, staff scheduling and maintenance requests.
As the travel industry continues to evolve, 2024 presents many opportunities for hoteliers to leverage their technology to meet the changing needs of travelers. In doing so, hoteliers can enhance the travel experience while establishing a strong foundation for sustained business growth in an increasingly competitive market.
