Hyper-Personalization: the Future of Hotel Marketing | By Jennifer Nagy

Modern consumers expect personalized experiences in many aspects of their lives - from online shopping to streaming services - making it very important that hotels find ways to offer the same level of personalization that travelers expect in their next hotel stay. Due in part to the advances of marketing technology and the wealth of customer data available due to online bookings, hyper-personalization has come front and center, as a must-do for hotels to secure more bookings, encourage repeat customers (more revenue!) and boost ongoing profitability.

What Is Hyper-Personalization?

To facilitate hyper-personalization, hotels must leverage data analytics, artificial intelligence and automation to curate a unique and tailored offering and/or experience for each guest. Hyper-personalization in the context of hotel marketing goes beyond addressing guests by their names or remembering their preferences; it involves a comprehensive understanding of individual preferences, behaviors and expectations through the analysis of data collected at various touchpoints before, during and after their stay. This data-driven approach allows hotels to anticipate the needs and desires of guests, offering a level of service that goes beyond the basic.

Implementing effective hyper-personalization tactics requires a strategic blend of technology, data analysis and a genuine understanding of guest preferences. Here are some specific ways that hotels can implement hyper-personalization tactics today:

• Personalized Pricing and Offers: Implement dynamic pricing strategies (using data analytics) that offer guests personalized promotions and discounts based on their previous booking history or as a reward for loyalty. This targeted approach not only increases the likelihood of the guest booking with your property, but also enhances the perception of value for the guest.
• Pre-Arrival Surveys: Before guests even arrive at your hotel, encourage them to complete a pre-arrival survey to find out about their preferences on things, such as room temperature, pillow type, room location, and any special occasions they might be celebrating during their stay. Use this information to prepare personalized welcome amenities and ensure their room is set up to their liking. This can go a long way in making them feel valuable and happy when they arrive, and if they are one of the valuable Gen Z guests, might even result in a great Insta or TikTok reel promoting your hotel and thanking you for going above and beyond for them.
• Personalized In-Room Amenities and Services: Your hotel can adjust in-room offerings to suit guests' specific preferences; for example, if a guest prefers red wine over white, ensure that their room is stocked accordingly.
• Personalize Room Controls Using IoT (Internet of Things) Devices: Integrate IoT devices in guest rooms to allow guests to control room settings, such as lighting, temperature and entertainment preferences through a mobile app or voice commands. These devices can adapt to individual preferences based on historical data, creating a personalized and comfortable environment upon arrival.
• AI-Based Virtual Concierge Services: Your hotel could consider implementing an AI-powered virtual concierge service, which is accessible through the guests' mobile devices or an in-room mobile device. The concierge can provide personalized recommendations for dining, activities, and local attractions based on guests' past preferences and offer real-time assistance. This can also benefit you operationally as well, as it enables you to offer the same high-level of customer service, without hiring a person to act as an on-site concierge (a huge advantage during our current staffing shortage!).
• Geo-Targeted Notifications: Use geo-targeting technology to send personalized notifications to guests' mobile devices when they are in the vicinity of the hotel or nearby points of interest. These notifications can include special offers, discounts, or information about events happening in the area during their stay.
• Post-Stay Surveys and Feedback Loops: After a guest's check-out, send them a post-stay survey to gather feedback on their experience. Use this information to continuously refine and personalize future interactions. A feedback loop helps in understanding evolving preferences and ensures that the hotel remains adaptive to each guest's changing expectations.

Implementing these hyper-personalization tactics requires a thoughtful and strategic approach. Hotels must prioritize guest privacy, seek explicit consent for data usage, and continuously reassess and refine their personalization strategies based on guest feedback and evolving preferences. By embracing these tactics, hotels can create a truly bespoke and memorable experience for each guest, setting a new standard for personalized hospitality in the competitive market.

The Benefits of Hyper-Personalization

There are many benefits to hyper-personalization, both from the guest standpoint and operationally, including:

• Improved Guest Satisfaction: The most obvious benefit of hyper-personalization is meeting and exceeding guest expectations of their stay. By effectively targeting every aspect of a guest's experience, from room preference to dining options, hotels can create an environment where they feel not just satisfied, but truly understood. This level of customization fosters a sense of loyalty and encourages repeat visits which, as you all know, are the most profitable customers to have.
• Fosters Guest Trust: When hotels demonstrate a deep understanding of guest preferences and use this information responsibly, it builds trust. Guests are more likely to share personal details when they believe it will result in a better and more personalized experience. Trust is a critical factor in building long-term relationships with guests.
• Makes Your Property More Competitive: Obviously, today's hospitality industry is SUPER competitive, both due to a wealth of supply (including alternative accommodations) and a highly variable level of demand. In this scenario, hyper-personalization becomes a powerful differentiator for your property because, when guests feel that you genuinely care about their individual needs, they are more likely to book with your hotel over the competition.
• Increases Revenue Opportunities: Hyper-personalization isn't just about creating a warm and welcoming atmosphere; it's also a strategic tool for revenue generation. By understanding guests' preferences and behavior, hotels can tailor their upselling and cross-selling strategies to increase their RevPAR. Additional revenue opportunities could include recommending personalized add-ons, spa services or tickets for local experiences, depending on each guest's individual preferences.
• Enables the Personalization of Marketing Campaigns: Armed with a better understanding of individual preferences, hotels can create more targeted marketing campaigns, including personalized email offers, exclusive promotions and tailored content that resonates with specific guest segments. This targeted approach increases the likelihood of engagement with potential guests and the likelihood of booking.
• Boosts Employee Satisfaction and Empowerment: When staff have access to guest preferences and can contribute to delivering personalized experiences, it enhances their sense of purpose and job satisfaction, which is an important factor in employee retention. In addition, empowered employees who can provide exceptional service contribute to a positive and welcoming atmosphere at the hotel for guests.

How Can Your Property Implement Hyper-Personalization in Your Marketing?

The adoption of hyper-personalization comes with responsibilities, as you must navigate the ethical considerations associated with data privacy, striking a delicate balance between personalization and respecting guests' boundaries.

Here's why…

The foundation of hyper-personalization lies in data, and the effective analysis of that data. Hotels collect data from various sources - including direct bookings, social media interactions and previous stays - and AI and machine learning automate the analysis of vast datasets to predict guest behavior, recommend personalized offerings, and continuously refine the guest experience based on real-time data. This information forms the basis for creating personalized guest profiles, which are used to match guests with the hyper-personalized experience that they are hoping to receive.

To start using hyper-personalization in your property, you must implement the following steps:

1. Invest in Technology: To enable hyper-personalization, your property must invest in a robust Customer Relationship Management (CRM) Systems, which will centralize guest data. This system will capture information from various touchpoints, including online bookings, social media interactions and guest surveys. Ensure that the CRM system complies with data privacy regulations and prioritizes the security of guest information.
2. Staff Training: Train your staff to understand and embrace the concept of hyper-personalization. Encourage them to use guest information to provide personalized service, such as addressing guests by name and anticipating their needs. Empower staff to create memorable experiences that align with individual guest preferences.
3. Regularly Assess and Adapt: Hyper-personalization is an ongoing process that requires regular assessment and adaptation to ensure that your property remains responsive to changing guest preferences and market trends. Embrace an internal culture of continuous improvement to ensure that your hotel remains at the forefront of personalized hospitality.

Hyper-personalization is not just about utilizing technology; it's about building meaningful connections with guests. By leveraging data, artificial intelligence, and automation, hotels can create tailor-made experiences that resonate with the individual preferences of each guest. This approach not only enhances guest satisfaction and loyalty but also provides a competitive edge in a dynamic and saturated market.

In conclusion, hyper-personalization in hotel marketing is not merely a passing fad; it is a transformative force that is shaping the future of hospitality. As hotels continue to face unprecedented competition and changing consumer expectations, the ability to deliver personalized and memorable experiences becomes a strategic imperative.

Reprinted from the Hotel Business Review with permission from http://www.hotelexecutive.com/.