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location based marketing

How to Use Location Based Marketing to Boost Hotel Revenue?

Hoteliers from around the world follow a wide variety of location-based marketing techniques. The techniques and campaigns are aimed at attracting more guests into hotel properties and increase hotel revenue. Some of the techniques include push notifications, social media posting, banner adverts, reviews, search engine listings, etc.

With over 1.5 billion people constantly use Foursquare, Facebook Places, Google Places, etc., the scope for location based marketing to boost hotel revenue is high. Popular hotel chains such as JW Marriott, four seasons, etc. have already deployed location based services to boost their revenue. A strategy that these hotels use is rewarding loyal customers so that it encourages them to visit the property often.

A common misconception that hoteliers have is that location based marketing works best for large hotels and hotel chains. Hotels of all sizes can benefit from location based marketing as well. Location based marketing has become the best solution to boost inventory sales.

Importance of Location Based Marketing:

Location based marketing is an innovative marketing strategy that helps hotels in broadcasting their messages. It also provides them the possibility of targeting individuals and give them information on availability of rooms and other special amenities. As the name suggests, the messages can be delivered to guests only when they are in a location. This leads to an increase in consumer interest.

Hoteliers can use mobile banner adverts, geo-fencing data, and flight cancellation data to boost reservations. They can also leverage SMS to start a conversation with potential guests. This strategy has yielded results for many hoteliers who have restaurants and bars on their property. Location based marketing can be used to engage frequent travelers to remind them of a hotel’s spa or exciting offers on food & beverage.

As most hotels now have their own native app, location based marketing can have a huge impact on the topline. Push notifications are also great to pique the interest of first-time visitors in an area.

Automation of location based marketing strategies is the current trend in the hospitality industry. And the ubiquitousness of mobile helps location based marketing greatly. Hoteliers have started to use trusted channels to enhance the relationship between the hotel and the guest. This helps build brand loyalty.

Here are four ways hotels can use location based marketing to boost revenue:

  • Provide personalized services
  • Provide relevant offers
  • Reward loyalty
  • Leverage mobile wallets

Location based marketing should be treated as an integral part of the business strategy for hotels. As more number of hotels are investing heavily on creating native hotel apps, LBM will become essential for hotels. Additionally, it is a great way to drive and increase ROI through regular consumer engagement.

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