In 2023, hospitality brands that master personalization with their customers at every stage of their relationship and on every marketing channel will be the ones that grow their audience of loyal guests and customers, increase revenue, and stand apart from the competition. A 2021 McKinsey & Company report found that 78% of consumers are more likely to make repeat purchases from brands that personalize and that nearly 80% are also more likely to refer their family and friends to these companies.

Here are five personalization trends that resorts, hotels, casinos, and other hospitality properties should consider including in their marketing strategies this year.

1. Personalization, and in particular AI personalization, will drive brand loyalty

The ability to create unique experiences for their customers that deliver trustworthy, relevant, and useful information across channels cohesively will only continue to grow in importance to consumers in 2023.

According to a recent Statista survey, 36% of the consumers reported that they would prefer the brand and keep shopping for their products if the retailer provided a personalized shopping experience. Additionally, 72% of consumers reported that personalization is the top priority when dealing with brands and their products.

However, personalization in 2023 will require real-time analysis of customer behavior based on the data they share throughout their relationship with the brand.  That can only be done with the support of AI-driven algorithms for product and information recommendations that can not only respond to, but also anticipate, a customer’s booking and traveling preferences.

2. Personalization Must Blend First and Zero-Party Data and Privacy Concerns

In a cookieless future, hospitality properties must develop new ways to let their guests and customers share important data that includes travel and purchase preferences and intentions, reviews, and other personal details that can strengthen the relationship.

However, they must also balance the new ways of collecting and deploying customer data with the increasing privacy concerns of their customers and the impact of privacy regulations. A 2021 survey showed that 28% of consumers felt they had less control over their data than the year before.

Hospitality properties should see increased privacy restrictions as an opportunity to create deeper relationships through transparency and responsible handling of data. One effective method is using first and zero-party data collection methods to encourage customers to opt-in and provide consent to their personal data being used by the hotel, casino, or hospitality property.  A 2021 study from BCG and Google showed businesses that used zero-party data for marketing achieved up nearly a 3% revenue increase and a realized a 1.5% increase in cost savings.

3. Personalization Adds Advantages for Loyalty Programs

According to an Insider Intelligence study, 55% of global consumers report that the primary reason they join a loyalty program is for personalized rewards. Hospitality properties that can continue to provide personalized deals and rewards for their guests and customers optimize the value that recurring business delivers. According to Adobe, returning customers are nine times more likely to buy from a brand than new customers, and these existing customers spend 31% more on average than new customers.

Personalization makes the practice of one-size-fits-all loyalty programs a thing of the past. Today properties can tailor the experience based on recent reservations and purchases, including accommodations, amenities used, and dining or entertainment offerings enjoyed. However, they should also expect their customers to become more sophisticated in determining what matters most to them. In the competitive hospitality market, properties must remain focused on the customer. McKinsey reports that while that 71% of consumers expect personalization, 76% are frustrated when they don’t get it and won’t hesitate to go somewhere else to find it.

4. Personalization Powers Omnichannel Marketing

Omnichannel marketing reaches hospitality customers at every touchpoint of their investigative and decision-making journey and adding personalization gives properties the ability to achieve dramatic results. Every channel is made more impactful when personalization is included in the messaging:

• According to MarTech, personalized emails deliver six times the transaction rates than non-personalized ones.
• ReadyCloud reports that retargeted personalized digital ads generate ten times better click-thru-rates.
• BusinessWire determined that personalized promotions on website homepages influences 85% of customers to make a purchase.

With hospitality audiences engaging with content across multiple channels, properties must take steps to meet the consumer on the channels their customers trust in order to deliver the experience they demand. According to a Harvard Business Review survey, 73% of respondents consider themselves to be “omnichannel shoppers”. 

5. Personalization Becomes the Face of Facial Recognition

Perhaps the most innovative applications of personalization are already taking place in hospitality properties around the world – facial recognition. Vietnam-based luxury hotel implemented facial recognition programs in 2019, and NEOMA reports throughout the world are also utilizing facial recognition to personalize the stays of their customers.

Facial recognition offers properties the ability to efficiently, safely, and securely grant guests privileges throughout the property with automated verification processes that reduce the strain on busy staff and increase guest satisfaction. Of course, with any technology as new as facial recognition, properties must monitor its application with caution. Respondents to a CHOICE survey said that retail stores should be required to inform customers about the use of facial recognition before they enter the store, and 65% are concerned about stores using the technology to create profiles of customers that could be used to harm them. 

Conclusion

Personalization offers resorts, casinos, hotels, and all hospitality properties exciting ways to form closer connections with guests and customers. Using the data their customers willingly share, properties can create memorable experiences, send relevant messaging, and offer better service for their guests. The result is increased revenue, engaged and loyal customers, and recurring business.