Make Your Hotel More Profitable – Strategy #10

A Baker’s Dozen of Strategies to Make Your Hotel More Profitable

#10.  If you think new customers are important, remember that repeat and “Regulars” are the ultimate key to success

Your best probable potential for improving operations and profitability in your hospitality business, hotel and/or restaurant are your regular or repeat guests and customers. You have likely spent a good deal of effort building loyalty with this group and they have become an important part of your ongoing business.

These people also have many competitive businesses trying to woo them to spend their money patronizing your competitors’ business, so it is critical that these guests do not feel they are taken for granted.

Creating, building and maintaining a fluid customer loyalty program is the best way to achieve effective repeat business. Airlines, the car rental groups, the major hotel brands and certain food companies have been using loyalty programs for years, but there have been challenges with black out dates, certain “points” not being recognized and other administrative problems.

Local programs may enhance national promotions and keep your guests with you.
Ideas include:

  • • A reward card that gives rewards for frequent visits (stay 5 nights and earn one free, eat 7 meals and  earn one, etc)
  • • A repeat or regular guest only e-newsletter that offers special programs, promotions, incentive prizes, giveaways or other desired items that can be redeemed in exchange for surveys and feedback
  • • Promotions that offer a free meal or a complimentary overnight or an upgrade to a suite to a regular on a birthday, anniversary or other event
  • • Special promotions with other businesses in your area as a means to build synergy and cross marketing

Loyalty and reward programs need to focus on the promotion of your hotel, restaurant or hospitality business. If you are part of a brand, the emphasis will also have to include some focus on the brand of the whole which may seem at times to lessen the impact on your own business, but there should be greater overall exposure to more people.

Costs for loyalty and reward programs can use a sizable portion of your marketing budget, but the reward in brand recognition, customer loyalty, direct feedback and guest information are essential to identify and maintaining a solid base for your business. The cost of gaining a new customer can be up to FIVE times that of maintaining an existing and satisfied guest.

The full set of A Baker’s Dozen of Strategies to Make Your Hotel More Profitable can be found @


Getting the Most out of Your Franchise Investment – Making Hospitality More Profitable Part of the 2011 Keys To Success Workshop Series

KEYS TO SUCCESS is the umbrella title for our 2011 programs, hospitality services and columns. This year’s writings focus on a variety of topics for hotel owners, managers and professionals including “HOW TO” articles, HOSPITALITY CONVERSATIONS®, Lessons from the Field®, Hotel Common Sense® and Principles for Success

Feel free to share an idea for a column at anytime or contact me regarding consulting, customized workshops, speaking engagements … And remember – we all need a regular dose of common sense.

John Hogan is a successful hospitality executive, educator, author and consultant and is a frequent keynote speaker and seminar leader at many hospitality industry events. He is Co-Founder of a consortium ( of successful corporate and academic professionals delivering focused and affordable counsel in solving specific challenges facing hospitality today. is a membership site offering a wide range of information, forms, best practices and ideas designed to help individual hoteliers and hospitality businesses improve their market penetration, deliver service excellence and increase their profitability. Individuals wishing to contribute materials may send them Special pricing is in effect for a limited time that also includes a complimentary copy of LESSONS FROM THE FIELD- A COMMON SENSE APPROACH TO EFFECTIVE HOTEL SALES.

Consulting Expertise and Research Interest

  1. Sales Management and training
  2. Turn-around and revenue management
  3. Professional Development for the Organization and the Individual
  4. Customer Service
  5. Making Cultural Diversity Real
  6. Developing Academic Hospitality programs
  7. Medical Lodging Consulting

If you need assistance in any of these areas or simply an independent review or opinion on a hospitality challenge, contact me directly for a prompt response and very personalized attention.

Your Hospitality Resource for the Hotel Owner, Innkeeper, Manager and Hospitality Industry Associations


Dr. John Hogan, CHE CHA CMHS

United States – Phoenix, Phone: 602-799-5375 Email:


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