The Future of Loyalty Programs for Hotels: Mobile Beacon Technology
Due to the increase of pre-trip research being done by guests and the rise of online booking, hoteliers realize that the nature of their loyalty programs must change. Hospitality businesses are now trying to reach their guests through personalization in order to earn their loyalty. Skift conducted interviews with CEOs of the world’s top hotel groups and Allen Smith of Four Seasons Hotels and Resorts stated that “our feedback from our guests is they’re far less concerned about accumulating points to be redeemed for rewards as they are being in a position where they’re recognized and we understand their preferences and can serve them in that highly personalized way they’ve come to expect.”
How can you personalize a guests experience in a cost-effective way? Our experts often provide tips on how increasing your hotel’s revenue can be achieved by adopting our mobile concierge. This is one way, however in this post our experts are going to discuss another new technology rapidly gaining popularity with the capability of personalizing guest experiences while increasing ROI: beacons.
First of all, here is a brief explanation of what a beacon actually is, provided by marketingland.com. “Beacons employ low-power Bluetooth transmissions to emit a location ID to a listening mobile app, which then communicates the location via cellular data or WiFi to the marketer’s server, and receives back location-specific marketing.”
What does this mean for hoteliers? If you employ beacon technology in your hospitality business, you will be able to pinpoint the specific locations your guests are visiting. This data will allow you to track their movements in order to see where they are frequenting most often. For instance, are they stopping at the bar daily? How often do they visit the fitness facility? Are they talking to the front desk receptionist regularly? etc.
How does this data translate into building guest loyalty and increasing revenue? By employing beacon technology and a mobile concierge application you will be able to target your guests with specific personalized offers through the use of push notifications. So far, the use of beacons in retail locations has been extremely successful. Redemption rates are high for discount coupons triggered by beacons in the retail sector, and our experts predict that trend will continue when they are employed in hotels.
According to Skift, guests are increasingly willing to provide more personal information in exchange for for unique marketing offers at hotels. By utilizing the personal information you’re able to collect and employing beacon technology to give guests special offers, hoteliers are not only able to provide guests with personalized offers, they are also able to increase ROI.