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Customer Retention in Hotel Industry

Hotel industry is much more dynamic as we thought it is and we can see day by day changes in hotel industry. Mostly hotels are targeting their customers through quality services and offering them different packages like per buffet charges and other services. In present time, Retention of customer is very crucial for all the service sectors. Customer retention means maintaining different type of relation with customer that hotel can manage in long run. Hotels, these days, are adopting Innovative practices to obtain and retain their customer .The acquisition of new customer is a creative and a very complex task and providing best quality of services are considered as most crucial component for the retention of customer. There is also a relationship between customer satisfaction and customer loyalty which helps customer to remain engaged with hotel.  Some hotels miss the part of developing a strong relationship with their current guest and put full focus on valuing new guest. But it is unreasonable because existing customers are also equally important as they will give the feedback to other customers. So customer retention is a key of gets repeat business.

Steps for maintaining Hotel customer retention

Stage one : – Before Arrival

  • Priority PMS system for hotel booking and reservation:-Property management system is very crucial. It should not be over complicated because it is source of booking. No one is going to keep coming back if the booking process is stressful.
  • Identify VIP guests and prepare for their arrival:-customer retention strategy starts from identifying the best guest. Once the guest isidentified, ensure all staff should be aware of them and trained the staff about how to greet the guest and attend their needs. When we create a sense of belonging and give them the respect they deserve, it will bring bright chances for guests to enjoy every bit of their stay.

Stage two:-During Arrival

  • Offer personalized customer services:-Once guest arrive in hotel, all staff members should facilitate their wants and need with personalized service. If there is any unhappy guest then hotel should give service them in a helpful and empathetic manner. This can reverse the potential damage which will ultimately increase the likelihood of retaining the customers.
  • Ensure you create an experience rather than just a room:-IF a hotel wants to keep their guest satisfied and wants them to enjoy their stay at the hotel, it should offer something that they remember like as plane flight, hike outside etc.
  • Use modern and beneficial technology:-Hotels should leverage technology like as PMS system, advance cards for keys, or automatic electrical appliances. This technology is building up deeper relationship with guests and gives them a better experience.
  • Focus on room quality: –Room makes an important contribution to long term revenue and profitability .So enhancing room quality is clearly one of the most important customer retention strategies for hotel.

Stage three:-After arrival

  • Keep conversation alive by obtaining review from customers:-It is very important to get views from previous guests. Hotels should send their VIP guests a personalized thank you note and guests an automated email requesting a review. It is to create social trust which is essential for creating loyal guests.
  • Consider reputation management: – It is crucial to monitor what people are saying about your hotel online. It will not only provide you honest feedback but also highlight those areas of conflicts in your business that needs to be addressed.


  • Retention of customer is cheaper than acquisition.
  • Loyal customers produce high profit.
  • Retain customer help to improve brand image of hotel.
  • Loyal customers are more forgiving.
  • Retain customers help to advertise hotel brand.
  • Earn more words of mouth referrals.
  • Customer will welcome hotel, s marketing.
  • Earn wiggle room to try new things.


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