What can you do with a property credit? Hotels can enhance the guest experience and encourage added spending thanks to on-property credits. It's an excellent way to offer better services to loyalty program members and promote extra services to diverse guests.
We'll explore property credits and how to use them at your hotel. With the right strategies, hotels can attract guests while enhancing guest satisfaction and loyalty. The trick is to offer various kinds of credits and make the process as easy as possible. Let's dig into our top tips.
What is property credit for hotels?
A property credit for hotels is a monetary amount guests can use toward upgrades, on-property services and amenities in your property. Credits are usually a part of a promotional package, a loyalty program, or an exclusive offer. Their benefits? Added value by enhancing the guest experience and incentivizing more spending.
These kinds of credits feel like "free money," encouraging guests to spend more than they might otherwise. You can also prompt additional spending by offering upgrades to those credits at a reduced value. For example, ask your guests if they're willing to pay an extra $10 for a 1hr massage instead of a 30-minute one included in the credit voucher. Read more about how to boost incremental revenue.
8 ways to use property credits at hotels
With a clearer idea of property credits, let's look at how to use them at your hotel to drive added value.
Promotional packages
Packages are a fantastic promotional idea to boost revenue. You can add extra services that make booking more attractive and inspire guests to stay longer, buy more services and spend more. As part of a promotional package, you can offer on-property credits for use at the hotel restaurant, bar and spa or to buy room upgrades.
Adding these extra credits to a package makes guests feel like they are getting more value while boosting the value of each guest who buys the package. If the package price is calculated right, it should come at little or no extra cost to the hotel but offer a significantly better guest experience.
Special occasions
Try to find out the reason behind bookings – and use this valuable information to enhance your offers. If a guest books for a birthday or an anniversary, you can offer on-property credits as gifts that can be used for a drink at your bar or maybe for a free dessert.
Guests tend to spend more money at your hotel when you offer something for free. If they weren't planning on dining in, the allure of a free celebratory dessert may be the incentive they needed to make a reservation. The secret is simple – to get a lot of added value, give a little first.
Use property credits to promote added services
Sometimes, guests don't buy added services because they don't know what's available. Enter property credits – if you offer a room upgrade, guests may become so enamored with the view that the next time they return, they'll book that more expensive room for the view.
Credits could also attract guests who usually wouldn't pay extra for a massage or a mud bath, but once they have an enjoyable experience, they are more likely to book those services again. And that's how property credits boost the lifetime value of loyal guests.
Loyalty programs
Hotel loyalty programs ensure repeat guests. You can give them credits or points to book on-property amenities or discounts on future stays. Because acquisition costs are much higher than keeping guests, fostering loyalty is crucial, and these points are a fantastic way to do it.
Room upgrades
We’ve already mentioned how room upgrades are a terrific way for guests to use their credits. It lets them enjoy a better stay at no extra cost. The more guests book these high-value rooms, the better your revenue. This is why giving first-time guests a chance to upgrade can be a fantastic strategy.
Dining and spa services
Many hotels are investing in top-notch chefs to create their menus in hopes of giving their restaurants a push. Another way to promote your hotel restaurant is through property credits. Let guests use them for dining experiences and special tasting menus, encouraging them to dine in instead of spending their money elsewhere.
Activities and tours
Tours and activities are another excellent way for guests to use credits. Think about it – you're promoting engagement with locals and encouraging guests to invest in the local economy. Whether you offer the tours or work with local companies, it's a win-win for everyone involved.
Flexibility and variety
Being flexible and offering a variety of ways for guests to cash in on credits is the biggest driver of success. Offering diverse options based on guest profiles and their preferences ensures guest satisfaction. It also diversifies where they spend money on your property, so it doesn’t all go to one place.
Conclusion
We’ve looked at property credits and how hotels use them. When approached strategically, they can be beneficial for both guests and hotels. Guests get added value and “free money” to spend on-site, whereas hotels ensure the usage of specific amenities and services. They can also encourage the regular purchase of added services by offering them as part of promotions, loyalty programs, or special packages. It’s all part of enhancing the guest experience.
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