Tour operators often focus on attracting new customers while neglecting the potential of return guests. This approach can be detrimental to your business’s profitability. Here’s why focusing on repeat guests should be integral to your marketing strategy.
The Value of Return Guests
Cost Efficiency
Acquiring new customers is significantly more expensive than retaining existing ones. According to a study by Harvard Business Review, acquiring a new customer can cost five to twenty-five times more than retaining an existing one. Marketing to return guests is more cost-effective because they already know and trust your brand. For example, a report by Bain & Company states that increasing customer retention rates by just 5% can increase profits by 25% to 95%.
Increased Revenue
Returning customers tend to spend more. They are familiar with your offerings and are more likely to invest in premium services or products. Research by the consulting firm BIA/Kelsey shows that repeat customers spend 67% more than new customers. An example from the hospitality industry is Disney Parks, where returning visitors often purchase annual passes, exclusive merchandise, and premium dining experiences, significantly boosting revenue.
Word-of-Mouth Referrals
Satisfied return guests are valuable promoters. They share their positive experiences with friends and family, generating organic, trustworthy referrals. According to a study highlighted by Fotaflo, 21.2% of guests at Treeosix Adventure Parks discovered the park through word-of-mouth referrals. Nielsen reports that 92% of consumers believe recommendations from friends and family over all forms of advertising, emphasizing the power of word-of-mouth marketing.
Building Lasting Relationships
Personalized Engagement
Utilize platforms like Fotaflo to maintain contact with guests after their visit. Personalized emails and SMS messages can remind them of the great experiences they had, encouraging repeat bookings. Fotaflo's impact at Treeosix Adventure Parks resulted in 41.6% of guests being return visitors due to their effective engagement strategies. Furthermore, a study by Experian found that personalized emails deliver six times higher transaction rates.
Creating Memorable Experiences
Providing guests with personalized digital memories of their adventures can leave a lasting impression. These memories not only delight guests but also encourage them to return and share their experiences with others. Treeosix’s use of Fotaflo’s photo-sharing platform significantly boosted repeat visits and referrals. Another example is Disneyland's PhotoPass service, which allows guests to receive and share their memories, enhancing their overall experience and fostering loyalty.
Implementing a Return Guest Strategy
Targeted Marketing Campaigns
Develop campaigns specifically aimed at past customers. Highlight new attractions, special offers, or loyalty programs designed to entice them back. For instance, Ritz-Carlton uses targeted email campaigns to inform previous guests about new locations and exclusive offers, resulting in higher repeat bookings. Including personal photo memories in such campaigns can generate open rates up to 100% based on Fotaflo client analytics
Feedback and Improvement
Encourage feedback from returning guests to understand what brings them back and what can be improved. Use this feedback to enhance your services and address any issues. A good example is how Hyatt Hotels uses guest feedback to tailor their services, resulting in improved guest satisfaction and loyalty.
Loyalty Programs
Implement loyalty programs that reward guests for repeat visits. Discounts, exclusive experiences, or points systems can motivate guests to choose your tours again. For example, Marriott's Bonvoy program offers points for stays, which can be redeemed for free nights, upgrades, and other perks, effectively encouraging repeat business.
Conclusion
Ignoring the potential of return guests means missing out on a lucrative and loyal customer base. By implementing strategies that focus on retaining and re-engaging past guests, tour operators can significantly enhance their profitability and ensure long-term success. Embrace the power of personalized engagement, create memorable experiences, and develop targeted marketing campaigns to harness the full potential of your existing customer base.
For more insights and detailed strategies, visit the following resources:
Harnessing the Power of Past Customers
Fotaflo's Impact on Treeosix Adventure Parks
