Personalization in the Hospitality Industry: The Key to Elevating Guest Experience

As tourists resume their overdue travel plans from the pandemic, travel demand continues to grow faster. Along with this, the hospitality industry expects more guests and revenue than normal over the last few years. In fact, 2023 hotel room revenue is projected to reach $197.48 billion in the U.S. alone. 

Besides an increased number of guests, hoteliers face added pressure to follow trends in order to stay relevant and ahead of the curve. One of these trends is adopting personalization in elevating the guest experience. Whether you are a long-term hotelier or a novice in the hospitality industry, personalization can bring multiple benefits for your property. Keep reading as we discuss personalization in the hospitality industry, its importance, and how you can implement it into your business. 

What Is Personalization in the Hospitality Industry?

Personalization in the hospitality industry refers to the process of creating unique experiences and services that caters to the certain needs and preferences of guests. In recent years, personalization has been an effective approach in fostering strong customer relationships and driving the success of the overall business. A report even revealed that 71% of customers now expect personalized interactions. The same report also noted that companies that grow faster generate 40% more of their revenue from personalization compared to their slower-growing counterparts. 

Personalization Vs. Customization

More often than not, personalization is confused with customization. However, there is a distinct difference between them. Personalization is performed by hoteliers or hotel managers, while customization gives guests full control in designing their experience. Ultimately, personalization is a system-wide approach, while customization is more focused on the individual choices of guests. 

To give you a more comprehensive explanation, we provide some examples of personalization and customization below.

Examples of Personalization

1. Special occasion surprises such as welcome drinks or gifts.
2. Personalized recommendations based on the guest’s stay history and preferences.
3. Tailored in-room features for different guest types, such as business travellers and leisure guests. 

Examples of Customization

1. Amenity add-ons, as requested by guests.
2. Room customization that allows guests to choose room layouts or views.
3. Activity customization for guests to select activities that they are interested in.

Benefits of Personalization in the Hospitality Industry

The rise in popularity of personalization has brought about significant benefits for every property in the hospitality industry. Below, we get into further detail about the top advantages of personalization in this sector.

1. Increases Booking Rate 

48% of travellers say that a friendly, approachable, and personalized experience is more essential to them ever since the pandemic. This finding clearly conveys that hotel guests today are more aware that they have options and are not obligated to settle for anything that does not meet their preferences or conditions. Hence, more and more guests prefer to book accommodations and activities with properties that understand their needs. 

2. Improves Guest Experience

Personalization recognizes that every customer is unique, with their own distinct tastes and preferences, rather than simply treating them as part of a larger group or demographic. By adhering to this approach, hoteliers can design offers or recommendations that cater to the specific needs and preferences of each customer and improve their stay in the property.

3. Drives Customer Repeat Visits

According to a report based on Qubit's findings, 80% of consumers are willing to change their choice if they find services that more effectively cater to their needs. Likewise, the findings suggest that 25% of consumers would be more loyal to a travel brand that demonstrates an understanding of their needs through effective marketing strategies. With personalization, hoteliers and other property owners can demonstrate care and understanding of the needs of their guests. This leads to a more tailored and satisfying experience which can encourage repeat visits.

4. Raises Financial Gains

Along with increased retention rates brought by personalization, hotels can also expect increased profits or financial gains. According to a revenue hub report, on average, devoted customers tend to spend 22.4% more than occasional customers and extend their stays by 28%. As a result, their loyalty directly contributes to a potential profit increase of up to 25% for the hotel.

How to Create a Personalized Guest Experience

Different properties can have different personalization styles and strategies depending on their target demographics. Nevertheless, here are some methods you can use when starting to implement personalization on your property. 

1. Create Guest Profiles

Personalization begins with having accurate data about each guest. By having this data, you can have a comprehensive understanding of each guest’s preferences and needs and create personalized experiences. 

2. Design Offers that Suit Various Guest Groups

It is a given that guests from different groups or backgrounds have different expectations when staying in hotels or other properties. Hence, it is essential to design different offers and extras that suit your guests’ varying needs and wants. But how can you identify your guests' preferences and necessities on their first stay? 

To create personalized experiences for guests that are suitable for them, you can use segmentation or grouping. You can group your guests based on certain characteristics, such as the type of traveler. After identifying your guests and their group, you can start creating suggestions that can help them have a personalized experience. For instance, couples traveling for leisure often seek private and romantic options. Thus, you can suggest a romantic dinner for two in the hotel’s restaurant or recommend extra amenities such as a room service massage. On the other hand, solo travellers typically prefer social spaces and opportunities for interaction, so you can suggest some nearby bars or social events for them to join. 

3. Address Your Guest by Their First or Last Name 

Addressing guests by their first or last name during check-in or other interactions is one of the easiest and fastest ways to personalize their experience in your property. This adds a personal touch to the interaction, making them feel recognized as your valued guest.

4. Send Personalized Emails or Handwritten Notes

Emails and notes that welcome guests on their stay or thank them during checkout can enhance guest experience and leave a lasting positive impression. It helps create personalized communication that helps establish a connection with guests, potentially leading to long-term relationships. 

Personalize Your Business and Staff Management With StaffConnect

Personalization is a concept that doesn’t just improve guest experiences but also helps in the success of your business. By having a personalized website, app, and processes, you and your staff can have a more convenient and engaging work experience. 

If you want to incorporate personalization in your businesses, StaffConnect is a business management platform to consider. Our platform has various customization options, including custom mobile apps and custom branding features. Furthermore, you can easily design surveys using our drag-and-drop builder, store guest and staff data on our centralized database, send custom emails, and a lot more! Don’t be afraid to take the first step toward personalized business processes. Book a free demo today, and experience our solution in action.