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UK hospitality sector urged to capitalise on customer loyalty during UK staycation boom

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A new White Label Loyalty report on ‘creating effective loyalty programs’ offers advice to businesses to ensure holiday makers return again and again.

LONDON - Britons are choosing to holiday in the UK in their droves this summer as they look to avoid chaotic immigration queues and cancelled flights.

According to Sykes Holiday Cottages’ annual Staycation Index, 77 per cent of Britons will holiday in the UK this year spending an average of £822. But hoteliers and hospitality businesses are being urged to capitalise on this demand, and work harder to retain the valuable customers they have acquired over the past two years as an increasing number of holidaymakers are choosing to holiday in the UK.

“Whether it is down to travel restrictions, a desire to avoid airports or basic economics, more and more people are staying in the UK for their holidays”, said Achille Traore, CEO, White Label Loyalty. “After years of disruption and fluctuating incomes, it is vital that the hospitality sector does everything it can to maximise this opportunity. That needs a dedicated focus on loyalty to keep newly acquired customers returning year on year.”

One of the most powerful tools that travel brands can use to keep customers coming back is reward experiences. But many loyalty programs in this industry are outdated and only transaction-based. A loyalty program should be flexible enough to reward guests for any kind of interaction. For example, businesses can reward customers that write reviews, shop with partnered brands, or share their ‘staycation’ experience on social media.

To help hospitality businesses, White Label loyalty has created a new guide, ‘complete guide to loyalty programs in 2022’.

When travellers are encouraged to perform specific actions and rewarded for their choice, a brand-consumer relationship begins. Activity-based loyalty incentives tap into a customer’s desire to feel valued, and gives brands an opportunity to show appreciation. 

UK travel and hospitality businesses can also provide more value for customers by introducing exclusive rewards. Many people are attracted to holidaying abroad because they get to experience new activities in a different culture. The UK tourism industry needs to replicate this by offering unique experiences people cannot get elsewhere. Such an approach could also help boost local economies that may be struggling post-pandemic.

Traore continued, “Staycation providers that offer digital reward experiences that are aligned with customer values are perfectly positioned to captivate guests this year. Use data to uncover these values and deliver personalisation. Then, reward customers for any kind of activity - not just transactions. Go one step further by creating exciting reward experiences that give guests a sense of exclusivity. Remember: brands must be able to deliver these experiences on digitised channels."

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