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Guests dining in a light, bright restaurant featuring a glass ceiling and hanging plants

August 6, 2024by David Klemt David Klemt No Comments

SevenRooms Drops Extensive 2024 Report

SevenRooms Drops Extensive 2024 Report

by David Klemt

Today, we’re taking a look at the first-annual trends report from marketing and operations platform SevenRooms, which focuses on the guest experience.

To gain an understanding of the current state of affairs in America, SevenRooms analyzed the product data of more than 3,000 US clients. Further, the platform engaged over 250 operators, and 1,000 consumers.

The result is a data-rich report that offers helpful insights for operators.

Two findings are particularly interesting to me, and the team here at KRG Hospitality. One, it appears that Americans are back to seeking out their third spots. As a refresher, a third spot, space, or place is where one spends time when away from home or work. Consumers tend to be loyal to these places, making them part of their everyday or weekend routine.

Two, younger consumers are leading the way in terms of restaurant visits. Per SevenRooms, 38 percent of Millennials visit restaurants five or more times per month. Gen Z is also visiting restaurants frequently, with 24 percent visiting five times or more. However, that number climbs to 45 percent for Gen Z when it comes to three or four monthly visits. Among Millennials, 33 percent visit restaurants three or four times per month.

That tells us that younger consumers are eager to socialize, and restaurants can fulfill that desire. As savvy operators know, a person can eat or drink at home; food and beverages are just excuses to get out, hang out, and meet new people.

This also tells us that operators need to ensure they’re ticking several boxes to resonate with younger guests: value, convenience, and personalization. I’ll add that consumers have shown they want to support brands with values that align with their own.

There are many more insights in SevenRooms’ new report, which you can find below. To view the report in its entirety, click here.

SEVENROOMS RELEASES 2024 RESTAURANT TRENDS AND DINER EXPECTATIONS REPORT FOR THE HOSPITALITY INDUSTRY

Annual report gives an inside look at how restaurants are delivering better guest experiences and personalizing their marketing in the age of AI and automation

NEW YORK (August 6, 2024) – SevenRooms, the leading CRM, marketing and operations platform for growing restaurants, today released its first annual trends report, “2024 Restaurant Trends and Diner Expectations,“ highlighting how restaurants are filling the need for ‘third places’, connection spots outside the home and workplace, what consumers expect from their dining experiences, and how restaurants are leveraging AI and automation to keep diners coming back.

The study, commissioned through independent third-party research firm Censuswide, examines consumer and foodservice operator insights, alongside data from SevenRooms restaurant customers. It emphasizes the importance of restaurants understanding their guests and providing experiences and value to consumers, including marketing and tech trends that operators are paying attention to.

Diners Expect More From Restaurants

While it’s no surprise that diner expectations have evolved in recent years, consumers across generations and cities share key expectations when dining out — they’re looking for convenience, personalization and value from brands they trust. Restaurants must nail all aspects of the guest experience, from hospitality and service to ambiance and atmosphere, to transform diners into brand ambassadors and get them to bring their dollars back more often.

When looking across generations, Millennials are driving a dining resurgence – dining out most frequently with 38% saying they dine out more than 5x a month. They are seeking more from their restaurant visits, and are willing to spend more for elevated experiences, like theatrical elements or high-end items like caviar. For these experiences, Americans are willing to spend up to $63 per person with 45% of Gen Zers open to paying even more. As diners focus on the quality over quantity of their experiences, that means restaurants must do more to keep those diner dollars. Dining upgrades consumers are willing to spend more fall into three categories – experiential, luxurious and personal, including:

Experiential (e.g. tableside martini cart; fish presentation or deboning, etc.)
○ Dallas – a menu item with some theater (86%)
○ Washington DC – a menu item with some theater (71%)
Personal (e.g. birthday dessert; welcome drink)
○ Chicago – a mocktail or personalized item (55%)
Luxurious (e.g. caviar, freshly shaved truffles, seafood tower)
○ Los Angeles – high-end items like caviar (55%)
○ New York – high-end items like caviar (48%)

Outside of these experiential offerings, restaurants must also capitalize on influential factors that bring diners back. For example, 34% of Gen Zers want personalized surprises in service like a free dessert. Meanwhile, 26% of Millennials care about the ease of making a reservation and 24% of Gen Xers consider the rapport they develop with front-of-house staff. Tailoring guest experience and service helps operators turn one-time diners into loyal customers.

“New consumer demands are pushing restaurants to find the right balance between hospitality and automation to create the experiences guests crave and return for,” said Joel Montaniel, CEO & Co-Founder at SevenRooms. “Diners want both access and recognition when spending their hard-earned dollars, and restaurants must embrace new strategies – and technologies like AI and automation – to enhance hospitality at every touch point. Whether leveraging platform data to personalize diner experiences or power marketing and retention programs, technology and data serve as a vehicle to execute hospitality that guests remember and return for. When technology is used effectively, it allows operators to focus on building deeper connections and delighting guests, one experience at a time.”

Loyalty is Never One-Size-Fits-All

In the U.S., there was a 21% year-over-year increase in reservations comparing Q1 2023 to Q1 2024 and restaurants are looking to a promising future. Whether operators are focused on opening new locations or revamping their social media marketing efforts, one factor remains the same – establishing personal relationships with diners is the strongest way to build and maintain loyal customers.

Consumers have a strong intent to dine with their favorite brands. If a guest can’t get a reservation at their preferred restaurant, 39% of guests look for a sister restaurant to dine at, and 27% check other sites for the same restaurant.

Cultivating loyalty is critical. Loyalty is not a one-size-fits-all effort and diners have different interests when it comes to the benefits they seek out from loyalty programs. Restaurants need to understand their diner demographics to curate operations and offerings, getting their guests to not only return more often but spend more in the process.

38% of diners who would spend $89-$126 on an average night are looking for exclusive VIP events, while 33% of consumers who dine out 7-8 times per month want VIP access to specialty seating areas. Breaking down generational differences:

72% of Gen Zers care most about free menu items
30% of Millennials care most about VIP access to specialty dining areas
1 in 5 Gen Xers and Baby Boomers want early access to reservations

Genuine, Tailored Marketing is Critical to Success

When it comes to marketing, authenticity and personalization reign supreme for consumers. Guests want to be known by their favorite restaurants, and restaurants want to know and understand their guests. To reach these consumers, and serve up personalized marketing that makes guests want to return, restaurants have to use all the tools in their arsenal – from social media to email and text marketing automation – to create high-touch communications that are both authentic and personal.

79% of restaurant operators spend the majority of their marketing budget on social media. Their top social media goals are to drive bookings or online orders (39%), increase brand awareness (29%) and communicate with their audiences (29%). But not all content is created equal – 39% of operators say that organic posts drive the most bookings to their restaurants. Restaurants that showcase their personality – highlighting their team, food and drinks and atmosphere – will win with consumers as they look for more genuine content from brands.

Most diners like hearing about restaurant promotions and offers via email and text, and aren’t as interested in social media DMs or phone calls, but specific preferences vary by generation. 41% of Gen Zers prefer text marketing, whereas 38% of Millennials and 37% of Gen X prefer email marketing.

With targeted Email Marketing, the data report notes that operators see 23% higher open rates and 28% higher click-to-open rates, generating 2x more revenue per email. Text marketing is fairly new for restaurants, but has huge potential, with an average open rate of 98% and $1.64 average reservation revenue generated per text message on SevenRooms. For one SevenRooms customer, Fabio Viviani Hospitality, it drove $220,000 in revenue and 3,000 new guests in just 4 months.

“The biggest thing that excites me about text messaging is that it’s very hard to ignore. When our phones beep, we are just driven to look at them,” said Harry Kaminski, CMO at Fabio Viviani Hospitality. “It’s easier to ignore an email than it is a text.”

Artificial Intelligence (AI) Comes into Play

Every industry today is using AI and automation in some way to streamline their operations and help staff work more efficiently – and the same is true for the restaurant industry. 70% of operators surveyed said they use artificial intelligence in some way to run their business, including:

35% – Processing reservations
34% – Inventory management
33% – Data analytics
27% – Scheduling
26% – Dynamic pricing

But there is room to grow with AI, with only 16% saying they use it to create marketing collateral and 15% for staff hiring and training. With personalized marketing a large focus for operators in 2024 and beyond, as well as hiring and retaining staff to deliver on high-touch hospitality, operators have an opportunity to use AI more effectively.

“AI elevates our storytelling around data,” said Kelly MacPherson, Chief Supply Chain and Technology Officer at Union Square Hospitality Group. “We have a wealth of data at our fingertips, but this can create analysis paralysis. With AI, we can more efficiently synthesize the data, create stories about what’s happening, why it’s happening, and what we can do about it, and then present these stories to our teams in a digestible format with actionable next steps.”

For more information about SevenRooms and to download the full report, please visit here.

About SevenRooms

SevenRooms is a CRM, marketing and operations platform for growing restaurants in the hospitality industry. From Michelin star gems to local favorites, the all-in-one platform helps restaurants increase sales, delight guests, and keep them coming back, automatically. The full suite of products includes reservations, waitlist and table management, review aggregation, referrals, email marketing, and marketing automation. Founded in 2011 and venture-backed by Amazon, Comcast Ventures and PSG, SevenRooms has more than 10,000 dining, hotel F&B, nightlife and entertainment clients globally, including: Marriott International, MGM Resorts International, Mandarin Oriental Hotel Group, Wynn Resorts, Jumeirah Group, Hard Rock Hotels & Resorts, Wolfgang Puck, Michael Mina, Bloomin’ Brands, Union Square Hospitality Group, Australian Venue Co., Maple & Ash, The Wolseley Hospitality Group, Dishoom, Groot Hospitality, MLSE, Live Nation and Topgolf.

Research Methodology

SevenRooms partnered with Censuswide Research – a third-party, professional research and consulting organization. Total sample size was 1,004 U.S. consumers. Fieldwork was undertaken between March 4-11, 2024. The survey was carried out online. The figures have been weighted and are representative of all U.S. adults (aged 16+).

SevenRooms partnered with Censuswide Research – a third-party, professional research and consulting organization. Total sample size was 251 U.S. operators (hospitality decision-makers). Fieldwork was undertaken between March 4-19, 2024. The survey was carried out online. The figures have been weighted and are representative of U.S. hospitality operators.

SevenRooms provided anonymized internal data representative of U.S.-based restaurants using the SevenRooms platform and surveyed a sample of operators at various restaurant sizes and types across the U.S. from March-May 2024.

Image: kayleigh harrington on Unsplash

November 13, 2023by David Klemt David Klemt No Comments

Gen Z Shifting the Restaurant Landscape

Gen Z Shifting the Restaurant Landscape

by Nathen Dubé

I think we can admit every demographic snaps pics of their food now.

The next wave of restaurant guests is ready to be won over. Our industry is on the cusp of a monumental shift, and Generation Z is at the helm.

As they come into their own, both socially and economically, this vibrant generation is poised to redefine dining as we know it. With their digital-first mindset, staggering spending power, and penchant for loyalty, Gen Z is a demographic that no restaurant can afford to overlook.

Comprising nearly a quarter of the American economy, Gen Z is a force to be reckoned with. Born in 1993 or later, they command an awe-inspiring $250 billion in spending power.

But what’s truly remarkable is their approach to dining. Generally speaking, eating out is not an occasional indulgence for this generation; it’s a regular part of life.

In fact, the majority of Gen Zers frequent restaurants at least once a week, a statistic that’s all the more astonishing when you consider that many are not even old enough to drive.

As this generation matures and their financial standing improves, they are set to become the next wave of loyal restaurant patrons. To capture their attention and build lasting relationships, restaurants must focus on three pivotal areas: cutting-edge technology, customizable menus/personalization, and one-of-a-kind experiences.

By proactively adapting to meet the unique needs and desires of Gen Z, restaurants can not only win their business but also secure a prosperous future in an ever-evolving industry.

So, the question isn’t whether to adapt to Gen Z. Rather, the question is, how quickly can you do it?

The next generation of restaurant-goers is not just knocking at the door, they’re already here. And they’re ready to dine.

Technology

Generation Z is a digitally native cohort, seamlessly integrating smart technology into every facet of their lives—from smart cars to smartphones.

To engage with this generation of guests effectively, it’s imperative for restaurants to have a mobile-optimized online menu. Given Gen Z’s penchant for quick, easily digestible information, a streamlined, fast-loading menu is key.

Highlighting elements like flavors and health-conscious options can serve as compelling selling points.

The Digital Investment Dilemma

While the allure of digital innovation is undeniable, it comes with its own set of challenges, primarily financial.

However, there is good news.

Investing in robust digital systems is essential for ensuring a smooth guest experience. This investment often yields dividends in the form of operational efficiency and heightened customer loyalty—two factors crucial to long-term success.

Gen Z, in particular, is quick to embrace modern conveniences like alcohol delivery and digital ordering, signaling a clear trajectory for the restaurant industry’s future.

Additionally, many innovative tech solutions integrate with platforms operators use currently. Where this is the case, the new tools can enhance operations, automation, marketing campaigns, back of house, etc., which justifies the initial outlay.

Augmented Reality: A New Frontier in Dining

Augmented reality (AR) in the dining space is an emerging trend with boundless potential. Although the initial costs of integrating AR can be steep, the payoff in terms of guest engagement is substantial.

Imagine a dining scenario during which guests can use AR glasses or goggles to access nutritional information about their meal instantly. The possibilities are as limitless as they are exciting.

Staying ahead of the curve with tech ensures restaurants not only attract Gen Z but also offer an enhanced dining experience that sets them apart in a competitive market and attracts guests of all ages.

The future of dining is here, and it’s digital, customizable, and incredibly interactive. Are you ready to be a part of it?

Social Media

When it comes to capturing the attention of Gen Z, social media is a goldmine.

While Facebook may not be their platform of choice, YouTube, Instagram, and TikTok are where they’re most active.

These platforms are ideal for sharing quick, engaging six- to 15-second videos that resonate with Gen Z’s fast-paced and humorous nature. Bear in mind, video not only killed the radio star, it has surpassed static photography as the engagement format of choice.

And don’t underestimate the influence of even the youngest among them; they often have a significant say in family dining decisions.

Social Media: The Modern-Day Word-of-Mouth

In today’s digital landscape, social media isn’t just a platform—it’s a potent marketing arsenal.

Gen Z is particularly vocal about their dining experiences, often sharing them online for their followers to see. This user-generated content serves as invaluable, organic marketing that can drive both foot traffic and revenue.

In essence, social media has become the new word-of-mouth, and restaurants should actively encourage this form of authentic promotion.

The WiFi Factor

Offering free WiFi isn’t just a courtesy, it’s strategic.

By becoming a wireless hotspot, you’re also positioning yourself as a dining hotspot.

Free WiFi enables Gen Z patrons to stay connected, even while enjoying a meal with family or friends. They can easily share texts, photos, and perhaps even a glowing review, providing your restaurant with the kind of word-of-mouth advertising that money can’t buy.

By embracing these digital and social strategies, restaurants can not only attract the Gen Z audience but also create a dynamic, interactive dining environment that appeals to all.

The future of the restaurant industry is undeniably digital, and those who adapt will not just survive but thrive. Are you prepared for this exciting new chapter in dining?

Authenticity

The culinary landscape is evolving, and Gen Z is at the forefront of this transformation.

Authentic and Global Flavors: The Culinary Passport

In an era marked by globalization, Gen Z’s palate is as diverse as their worldview.

Their affinity for authentic, global flavors is more than a trend, it’s a reflection of a world where borders are increasingly blurred. As international cuisines become more accessible, they’re also becoming a staple on restaurant menus.

For restaurateurs, this provides an opportunity to diversify and enrich their culinary offerings.

Fusion: The Art of Culinary Innovation

Fusion foods are not merely a passing fad. Truly, fusion is a celebration of culinary creativity.

This trend allows chefs to push the boundaries of traditional cooking, often creating unique, high-value dishes that enhance a restaurant’s revenue potential.

In many ways, fusion embodies the inclusive and diverse spirit of Gen Z, making this culinary approach a hit among this demographic.

Experiential Dining: The Rise of the Experience Economy

The move towards experiential dining is part of a larger shift in consumer behavior, where experiences are valued over material goods.

Restaurants offering interactive experiences like cooking classes, wine tastings, or farm-to-table events are tapping into this lucrative trend.

Gen Z, in particular, is drawn to such experiential dining options, as well as to culinary fusions and fresh, natural ingredients.

A New Wave of Flavors and Dining Options

Unique flavors like yuzu, tamarind, and lemongrass are more than just exotic additions. These flavors and ingredients are becoming mainstream, particularly among Gen Z.

Educational food services, from grade schools participating in the National Restaurant Association’s Kids LiveWell program to college campuses offering “campus cuisine,” are also playing a role.

These institutions are introducing Gen Z to a wide array of international flavors and dietary options, including vegan, vegetarian, and gluten-free choices.

By understanding and embracing these trends, restaurants can position themselves as forward-thinking establishments ready to meet the diverse needs and preferences of Gen Z.

The future of dining is here, and it’s as varied, interactive, and global as the generation it serves. Are you ready to be a part of this culinary revolution?

Crafting the Ultimate Customizable Dining Experience

When it comes to dining, Gen Z values customization above all else. They want their meals tailored to their preferences, and they want them now.

While staples like burgers and pizza remain popular, it would be a mistake to pigeonhole their tastes.

According to Technomic’s The Generational Consumer Trend Report, Gen Z has a broader palate, embracing a range of global cuisines like Chinese, Mexican, and pasta at rates higher than any other generation.

A Melting Pot of Influences

This global appetite is more than just a random preference. Rather, it’s a reflection of Gen Z’s diverse background and the adventurous spirit of their Gen X parents.

But the driving force behind it all is the allure of customization.

Imagine a dining table where each person has their own uniquely crafted taco, creating a communal dining experience rich in personalization. This aligns perfectly with insights from Flavor & The Menu’s Generational Flavors report, which highlights the importance of affordability, value, and convenience to Gen Z diners.

The Customization Kings: Why Subway and Chipotle Reign Supreme

It’s no coincidence that eateries like Subway and Chipotle are among Gen Z’s favorites. These establishments have mastered the art of customization while also offering affordability and convenience—three key factors that resonate with this generation.

By recognizing and capitalizing on these trends, restaurants can craft the ultimate dining experience that not only appeals to Gen Z but also sets them apart in a highly competitive market.

The future of dining is customizable, diverse, and incredibly exciting. Are you prepared to meet the demands of this new generation of discerning diners?

Social Responsibility

A Win-Win for Brands and Consumers

For Gen Z, social responsibility isn’t just a buzzword, it’s a way of life. And this focus translates into tangible economic gains for restaurants.

Brands that actively engage in social responsibility have seen a four-percent uptick in sales. This demonstrates that doing good is also good for business.

This generation is more likely to patronize establishments that resonate with their values, making corporate social responsibility not just an ethical imperative but a savvy business strategy.

Health and Wellness: The New Currency

Gen Z’s emphasis on better-for-you options extends to their dining choices.

According to Technomic, features like recycling, sustainable food practices, and health-conscious menu items can significantly boost restaurant traffic.

But it doesn’t stop there.

This generation is willing to pay a premium for quality and health benefits, opening up lucrative revenue streams for restaurants that offer premium, health-focused menus. This is not a fleeting trend but a market shift, propelled by Gen Z’s prioritization of quality over quantity.

Sustainability: The Green Dividend

The push for sustainability is evolving from an ethical stance to an economic imperative. With government incentives encouraging eco-friendly practices and a consumer base willing to pay extra for sustainable options, going green is increasingly profitable.

This creates a virtuous cycle where businesses can contribute to environmental conservation while also boosting their bottom line.

By aligning with these core values—social responsibility, health and wellness, and sustainability—restaurants can attract the discerning Gen Z but also position themselves for long-term success in a rapidly evolving market.

The future of dining is socially responsible, health-conscious, and eco-friendly. Are you ready to embrace it?

The Social Hub

Coffee Shops as Gen Z’s Gathering Grounds

Starbucks and similar coffee shops have become social hubs for Gen Z.

Offering specialty coffee experiences in an adult-like setting, these establishments have become the go-to spots for socializing among those too young for adult beverages.

A Diverse Palette of Beverages

When it comes to drinks, Gen Z’s preferences are as diverse as their food choices.

While soda remains a popular option, this generation is also more inclined than others to opt for healthier alternatives like lemonade, bottled water, fruit juice, and smoothies.

Highlighting these better-for-you options can be a smart move for restaurants looking to cater to this health-conscious demographic.

Nutritional Transparency: A Win for All

In a world where regulatory scrutiny around food labeling is intensifying, transparency is key.

Restaurants that provide nutritional information voluntarily not only cater to the health-focused mindset of Gen Z but also position themselves as responsible businesses in the eyes of both regulators and the broader community.

In Conclusion: The Future of Dining is Here, and It’s Gen Z

As we’ve explored, Gen Z is redefining the dining landscape in numerous ways—from their penchant for customization and global flavors to their focus on social responsibility, health, and sustainability.

By understanding and adapting to these multifaceted preferences, restaurants can not only attract this influential demographic but also set themselves up for long-term success in an ever-changing industry.

The future of dining is not just about food; it’s about creating an experience that resonates with the values and lifestyles of the next generation of consumers.

Are you ready to be a part of this exciting culinary evolution?

Image: Yoav Aziz on Unsplash

January 20, 2023by David Klemt David Klemt No Comments

This Year’s Big Trend: Personalization

This Year’s Big Trend: Personalization

by David Klemt

Ripples, the beverage-top media brand, is predicting that 2023 will be the Year of Personalization with a focus on in-person interactions.

Last year, the bev-top brand behind the Ripple Maker II Pro, named moderation as one of the top trends. When we look at the ubiquity of low-ABV drinks, we see that Ripples was right. And when we consider the proliferation of non-alcohol brands, Ripples appears downright prescient.

In other words, Ripples continues to be proven right about moderation.

Three revelatory datapoints and one generation are partly responsible for the brand’s accurate 2022 prediction. First, in comparison to 2019, zero-alcohol products were up 166 percent. Second, the non-alcohol category grew four times faster than its low-ABV counterpart. Third, non-alcohol spirits have grown by over 113 percent since 2020.

The generation Ripples believes is responsible for non-alc’s growth? Gen Z. In part, this is due to social media and the generation’s aversion, speaking generally, to being embarrassed by drunken behavior in front of the world.

So, proven right about last year’s prediction, it’s wise to take Ripples’ 2023 prediction seriously.

Year of Personalization

As Ripples explains, personalization has long been the strength of digital platforms. Be it an online retail platform or music streaming service, personalization is king.

And it’s easy to see why. Using online shopping as an example, think of the typical customer journey.

A shopper signs up, they click around or search for specific items, and they make their purchases. Soon, the platform is emailing the user about sales. Then, emailing the user items they think they’ll like, based on the individual’s data.

The more the user shops, the more targeted the platform’s suggestions and interactions become. Before the user knows it, they’re signing up for a loyalty program, earning rewards, and giving the platform more of their money.

Well, personalization is no longer only shining in the digital space. Now, businesses are engaging with their customers in the “phygital” space. That is, the physical space as well as the digital one.

As Ripples states, “Nothing beats real human interaction for building connection and loyalty between brands and consumers.” One way to leverage this new relationship between consumers and brands? Experiential activations.

Ripples knows a thing or two about this type of engagement. The bev-top media company partnered with Guinness Korea for a campaign involving 100 bars. Consumers scanned a QR code, selected a design via the Ripples app, and the design was printed atop a pint of Guinness.

You Need Data

Personalization is a long-standing element of the hospitality industry. It’s one of our keys to success: we cater to guest preferences.

However, we can’t do that effectively without collecting guest data. And interestingly, Ripples’ prediction falls in line quite neatly with another 2023 prediction.

As you may be aware, 2023 is also likely to be the Year of the POS System. That is, a tech stack “revolution” is expected to take place this year. One crucial element of a powerful, worthwhile POS system is customer relationship management, or CRM.

Of course, if a POS doesn’t offer a CRM module, the best systems make it easy to integrate with the best CRM platforms.

Either way, CRM is the key to personalization in the digital, physical, and phygital spaces. It’s difficult to effectively personalize the guest experience pre-, during, and post-visit without guest data.

Regardless of whether Ripples’ prediction is accurate—and it’s likely they are—savvy operators need to make sure they’re responsibly collecting and utilizing guest data. If this is the Year of Personalization and the Year of the POS System, the reality is that 2023 is really the Year of CRM.

Image: Hannah Wei on Unsplash

May 4, 2022by David Klemt David Klemt No Comments

SevenRooms Reveals Hotel Guest Study

SevenRooms Reveals Hotel Guest Study Results

by David Klemt

Americans eager to get back to normal and make up for lost time are traveling in droves, and hotels will have to adapt in order to earn their business.

To give hotel and resort operators an edge, SevenRooms today reveals the results of their latest study.

“Booking Behaviors: Exploring Hotel Guest Loyalty,” contains datapoints all hotel operators should know.

The report, a collaboration with YouGov, focuses on two types of travelers.

Competitive Incentives

Before I address the who, let’s take a look at data that highlights the what.

According to the SevenRooms and YouGov report, nearly half of consumers say that loyalty programs are important. Per SevenRooms, loyalty programs influence hotel choice for 44 percent of guests.

Regarding American hotel guests specifically, 34 percent of guests will consider rebooking if their loyalty status receives recognition upon check-in.

However, loyalty status recognition isn’t enough for guests to book a hotel again. To understand what will influence that decision we need to take a look at SevenRooms’ traveler types.

Leisure

SevenRooms and YouGov look at two travelers for their report. There’s the Personal Patron and the Business Traveler.

Let’s focus on the former first. Per SevenRooms, to say the Personal Patron is eager to return to travel is an understatement.

The Personal Patron is a leisure traveler who has been climbing their walls for more than two years. They’re planning to travel “with a vengeance” this summer.

Diving deeper, the Personal Patron is most probably a female over the age of 35.

While recognizing this traveler for their loyalty program membership is smart, it’s not enough to influence a rebook. Rather, the Personal Patron places greater value on:

receiving more loyalty program points in exchange for dining and drinking at property-operated restaurants and bars;
enhanced credit card rewards; and
earning dining credits upon reaching a new loyalty program tier.

However, there’s a problem inherent to the Personal Patron and loyalty programs. Just 45 percent—so nearly half—of this traveler type are loyalty program members.

The reason for that low program buy-in? Almost 60 percent don’t think they travel enough to benefit from hotel loyalty programs.

Per SevenRooms, there’s a rather simple solution: local benefits. Tempt Personal Patrons with staycations and access to amenities at hotels in their home markets. Another idea is to offer points exclusively for dining that this traveler can use where they live.

Business

Obviously, the business traveler is now different. In fact, SevenRooms considers two versions of the Business Traveler.

On the one hand, there’s the extended-stay version traveling all over the country. And on the second hand, there’s the long-distance Business Traveler who’s seeking a midweek “home base” hotel.

Either way, the Business Traveler is most likely a male aged 18 to 34.

Per SevenRooms—and as most hotel operators likely know—this traveler probably doesn’t have time (or interest) in exploring off property. Therefore, the Business Traveler can be influenced to rebook through incentives that make their stays better.

These include:

receiving more loyalty program points in exchange for dining and drinking at property-operated restaurants and bars (like the Personal Patron);
receiving recognition for being a loyalty program member; and
getting a complimentary drink on check-in; or
being given a choice of an F&B amenity on arrival.

Unsurprisingly, the Business Traveler is more likely than the Personal Patron to join a hotel loyalty program. Per SevenRooms, 55 percent of Business Travelers say that the ability to participate in such a program influences their hotel choice.

Focusing on perks that “reward” the Business Traveler for their hard work can convert a Business Traveler to become a loyal guest for a particular hotel or hotel group.

SevenRooms suggests priority reservations for the lunch daypart at restaurants on property. Also, providing their favorite drink (wine, cocktail, beer, etc.) with their room service orders can be influential.

Takeaway

Travel is gaining steam, restaurants and bars are seeing an influx of reservations, and hotel operators need to prepare for summer travelers.

As a reservation, guest experience, and guest retention platform, SevenRooms can ensure operators can easily collect guest data. Guest data, for example, like F&B and room preferences.

More importantly, the platform makes it simple to use that data responsibly, effectively, and simply.

To learn more about SevenRooms, click here.

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