If you’re running a vacation rental business, then you may know that loyalty programs are a strong tool for keeping your guests coming back. Loyalty programs offer benefits to returning short-term rental guests and can be a game-changer when implemented correctly.
Industry titans like Marriot and Hilton have used loyalty programs for years. Thanks to advancing technology, small players in the short-term rental industry are now able to implement this strategy themselves. And they should – brand loyalty increases the likelihood of repeat and direct bookings. This blog post will discuss how an Airbnb rewards program can help you dominate the vacation rental market!
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What Are Loyalty Programs and How Do They Work?
Loyalty programs are designed to encourage customers to continue doing business with a particular merchant. Customers often receive loyalty points or rewards for completing specific actions, such as making a purchase, signing up for an email list, or referring a friend.
These loyalty points can then be redeemed for discounts, freebies, or other special perks. As a short-term rental host, you can use loyalty programs to encourage guests to book with you again in the future. Rewards for repeat guests could be a discount on the nightly rate, a free night’s stay, or complimentary perks you would usually provide as an upsell.
Why You Should Consider Implementing an Airbnb Rewards Program
There are a number of reasons why you should consider implementing an Airbnb rewards program for your vacation rental business. The first reason is that loyalty programs increase brand loyalty. Loyalty programs are designed to encourage customers to continue doing business with a particular company, and this is especially true in the vacation rental industry.
With so many options available, it’s important to make sure your guests have a reason to book with you again in the future. Remember, you’re not just selling a place to sleep; you’re selling an experience.Industry trends have made it clear that guests who participate in loyalty programs are more likely to book with you again, and loyalty programs can also encourage guests to refer their friends and family to your rental.
Additionally, an Airbnb rewards program is that it can help you differentiate your brand from the competition. In a competitive market, it’s vital to ensure your rental stands out from the rest. An Airbnb rewards program can help you do this by offering perks and discounts that other rentals don’t.
How to Create a Loyalty Program that Differentiates Your Brand
Now that we’ve discussed the benefits of loyalty programs let’s talk about how you can create a loyalty program that differentiates your brand. There are a few different loyalty programs, but the points-based system is the most common. With this type of loyalty program, customers earn points for every dollar they spend with your business. These points can then be redeemed for discounts on future bookings or for other perks like early check-in or late check-out.
Another type of loyalty program is the tier-based system, which offers different levels of rewards based on how often a customer books with your business. For example, a guest who books two nights in a row might receive a discount on their second night, while a guest who books five nights in a row might receive a free night’s stay.
Thirdly, providing a referral program can also help to increase loyalty among your customer base. A referral program is a loyalty program that rewards customers who refer new guests to your rental.
No matter what type of loyalty program you choose, it’s essential to make sure that the rewards are valuable to your guests. Otherwise, they won’t be motivated to participate in the program.
Tips for a Successful Loyalty Program in the Vacation Rental Industry
You should keep a few things in mind when creating a loyalty program for your vacation rental business. First, make sure the loyalty program is simple and easy to understand. The last thing you want is for guests to be confused about how the program works.
Second, make sure the loyalty program is well- advertised. Guests won’t be able to take advantage of the program if they don’t know it exists! Promote the loyalty program on your website, in automated communications with guests, and on your listing’s Facebook and Instagram accounts.
How to Set Up a Loyalty Program
The most basic way to start a loyalty program is to offer a discount to returning guests when they book directly with you. For example, you could provide them with a repeat customer code in their welcome basket or your house manual to use when making a reservation on your direct booking website. If you don’t have a direct booking website, tell them to contact you directly when making their next reservation. This way you can manually adjust the price within a booking platform like Airbnb or VRBO. This is a bit more “hands-on” approach, and you could pass this task off to a property manager.
Another option for setting up a loyalty program is integrating your direct booking site with a third-party loyalty app. Integrating with an app is a good way to automate this process.
Loyalty apps like Smile.io will integrate with direct booking sites made on WIXX, WooCommerce integrates with WordPress, and LoopyLotalty with Squarespace. It’s a good idea to speak with representatives of these apps to see how they can customize and make their program work strategically for your business. There are many apps out there, and which one works for you will depend on where your direct-booking site is hosted.
Final Thoughts
Loyalty programs are a great way to encourage guests to book with you again in the future. They can also help you differentiate your brand from the competition. Keep these tips in mind to ensure a successful loyalty program!
Host Tools provides an automated, unified calendar for short-term rental hosts, allowing you to seamlessly list on all major channels. Start your free trial today!
