The Importance of Repeat Customers in the Travel & Tourism Industry

Emily Punnett
Emily Punnett
September 5, 2023
The Importance of Repeat Customers in the Travel & Tourism Industry – Ontario SEO

It costs more money to acquire a new customer than it does to retain an existing one.

This is true across all industries, including travel and tourism. In fact, studies have shown that (depending on the industry you are in), acquiring a new customer can cost as much as five to seven times more than retaining an old one. But why is that?

In this blog, we’ll go over some of the main benefits of implementing a customer retention strategy as a travel and tourism operator as well as some tips on how to drive customer loyalty.

Benefits of Implementing a Customer Retention Strategy as a Travel and Tourism Operator

  1. Repeat customers spend more: repeat customers are more likely to book longer stays or spend more money on travel-related activities compared to new customers. This is because they have already built familiarity and trust with your brand, which leads to a higher level of comfort and confidence in making larger purchases.
  2. Retaining existing customers is more cost-efficient: building and maintaining relationships with existing customers often requires less effort and resources compared to acquiring new customers. This is because repeat customers are already familiar with your business’s offerings, requiring less education and persuasion, which reduces marketing expenses.
  3. Repeat customers spread the word: satisfied repeat customers are more likely to recommend your business to their friends, family, and colleagues. Their positive word-of-mouth referrals act as valuable endorsements and can even help attract new customers. This organic promotion can be highly influential as potential customers often trust recommendations from people they know.
  4. Existing customers provide valuable feedback: Repeat customers can provide travel and tourism operators with valuable feedback based on their past experiences with you. This feedback can help you identify areas for improvement, refine your offerings, and enhance customer satisfaction. By listening to the suggestions and preferences of repeat customers, you can adapt your services to better meet your customers’ expectations.

Tips on How to Drive Customer Loyalty in the Travel and Tourism Industry

If you’re looking to implement a customer retention strategy, here are some tips to help you get started:

  1. Understand your existing customer base: to drive customer loyalty and repeat business, you’re going to first need to understand who your customer base is. Make use of your customer data to find trends in the types of customers who have brought you repeat business and develop your customer retention strategy around their needs and motivations.
  2. Incentivize repeat bookings: offer incentives such as exclusive discounts, loyalty rewards, or special perks for returning customers. This not only provides an extra incentive for customers to choose your business again, it also makes them feel valued and appreciated.
  3. Run a display remarketing campaign on Google Ads or Meta: if your business gathers emails of past customers, you can upload those lists to Google Ads and Meta run a display remarketing campaign. When creating these campaigns, ensure you are utilizing eye-catching visuals and compelling copy that drives them to take action.
  4. Create a Personalized Email Campaign: develop an email campaign for past customers and send personalized content and offers that are based on their previous bookings and preferences. You can also keep them informed about upcoming promotions, new destinations, or exclusive experiences.
  5. Interact with customers on social media: social media is a great way to build loyalty and drive repeat business. Ensure you respond promptly to comments, inquiries, and reviews as this shows that you value customer feedback and are committed to providing exceptional service.

Final Thoughts

Recognizing the value of repeat customers is crucial for businesses in the travel and tourism industry. By implementing customer retention strategies and prioritizing the needs and satisfaction of repeat customers, your business can thrive and build long-term success in a competitive market.

Looking to improve customer loyalty? Ontario SEO has extensive experience working with businesses in the travel and tourism industry and can help you create a customer retention strategy that drives revenue and growth for your business. Get in touch with our team today to learn more about our digital marketing services.