November 13, 2023 17 min read Marketing

Building Guest Loyalty: Turn One-Time Visitors Into Repeat Guests

Discover proven strategies to transform satisfied guests into loyal advocates who return year after year, refer friends, and book directly, reducing your marketing costs while building a sustainable STR business.

Acquiring a new guest is expensive. Between platform fees, competitive pricing pressures, and the marketing effort required to stand out, the cost of filling your calendar with first-time bookers can consume a significant portion of your revenue. In contrast, repeat guests cost almost nothing to acquire, book with confidence, treat your property better, and often refer others who become guests themselves.

Yet most STR operators focus exclusively on acquisition while neglecting retention. They invest heavily in listing optimization and photography but make no effort to build relationships with satisfied guests who could become their most valuable customers. This guide explores comprehensive strategies for building guest loyalty that transforms your STR into a sustainable business with a growing base of returning visitors. For additional strategies on creating memorable stays, see our Guest Experience Optimization Guide.

5-7x
Cost to Acquire New Guest
65%
Revenue from Repeat Guests
4x
Referral Conversion Rate

The Foundation: Exceptional First Stays

Guest loyalty programs and follow-up strategies cannot compensate for mediocre experiences. The foundation of any retention strategy is consistently exceeding expectations during the initial stay. Guests must leave thinking your property was the best vacation rental they have ever experienced.

Creating Memorable Arrivals

First impressions establish the emotional tone for the entire stay. Thoughtful arrival experiences create positive associations that guests remember long after departure:

  • Welcome message timing: Send a personal welcome message as guests approach the property, not just upon booking. Make them feel anticipated and valued.
  • Property presentation: Ensure the property is immaculate, well-lit, and properly climate-controlled upon arrival. Nothing undermines loyalty faster than a dirty or uncomfortable first impression.
  • Welcome amenities: Provide thoughtful welcome gifts appropriate to your property and guest demographics. Local treats, quality coffee, or a bottle of wine create immediate positive feelings.
  • Personalized touches: When possible, customize the welcome based on known guest information. Birthday celebrations, anniversary trips, or special occasions offer personalization opportunities.

Anticipating Guest Needs

Exceptional hosts solve problems before guests realize they have them:

  • Comprehensive supplies: Stock your property with everything guests might need, from phone chargers to basic medicines to extra towels.
  • Clear instructions: Provide thorough, easy-to-find guidance for everything from WiFi passwords to appliance operation to local recommendations.
  • Proactive communication: Check in during longer stays to ensure everything is satisfactory without being intrusive.
  • Quick problem resolution: When issues arise, respond immediately and resolve them completely. How you handle problems often matters more than the problems themselves.

Departure Experience

The final moments of a stay significantly influence lasting memories:

  • Easy checkout process: Make departure simple and stress-free with clear, reasonable checkout instructions.
  • Thank you message: Send a warm thank you message within hours of departure, expressing genuine appreciation for their stay.
  • Feedback invitation: Ask for feedback before the platform's review request arrives, showing you value their opinion beyond just public reviews.

Strategic Follow-Up Systems

Most guest relationships end at checkout. Strategic follow-up keeps your property top-of-mind and nurtures the relationship toward future bookings.

Email Marketing for Guest Retention

Building an email list of past guests creates a direct communication channel independent of booking platforms. This requires obtaining guest email addresses (often provided through platform messaging or check-in forms) and their consent for marketing communications.

  • Post-stay sequence: Develop an automated email sequence that continues engagement after departure. Include a thank you, a review reminder, and an invitation to connect for future stays.
  • Seasonal newsletters: Send quarterly or seasonal emails highlighting property updates, local events, and seasonal availability. Keep content valuable rather than purely promotional.
  • Anniversary reminders: Note the dates of guest stays and send anniversary messages. "It's been a year since you stayed with us" emails have strong response rates.
  • Special occasion offers: Create exclusive offers for past guests during slower booking periods or as advance access to prime dates.
Effective Follow-Up Sequence
  • Day 1 after checkout: Personal thank you message
  • Day 3: Feedback request and review reminder
  • Day 30: Welcome to past guests list, 10% discount on next stay
  • Day 90: Seasonal newsletter with property updates
  • Day 365: Anniversary message with special offer

Social Media Connection

Social media provides ongoing touchpoints that keep your property visible:

  • Instagram following: Encourage guests to follow your property's Instagram account and engage with their stay-related posts.
  • User-generated content: Feature guest photos (with permission) on your social channels, tagging them for engagement.
  • Destination content: Share content about your destination that reminds past guests of their experience and entices return visits.

Building a Loyalty Program

Formal loyalty programs create explicit incentives for repeat bookings while making guests feel valued as returning customers.

Simple Discount Structures

The most straightforward approach offers returning guests a discount on future stays:

  • Repeat guest discount: Offer 10-15% off for any returning guest. This simple approach works well for properties with lower repeat booking potential.
  • Tiered discounts: Increase discounts based on booking history. Second stay gets 10% off, third stay 15%, fourth and beyond 20%.
  • Length-of-stay bonuses: Provide additional discounts for longer bookings by repeat guests. This rewards loyalty while improving your operational efficiency.

Points-Based Systems

More sophisticated programs use points that accumulate toward rewards:

  • Earning structure: Award points based on booking value, perhaps one point per dollar spent.
  • Redemption options: Allow points to be redeemed for discounts, free nights, or upgrades.
  • Bonus opportunities: Offer bonus points for referrals, direct bookings, or booking during slower periods.
  • Status tiers: Create bronze, silver, and gold tiers that provide escalating benefits based on points earned.

Non-Monetary Perks

Some guests value exclusive treatment over discounts:

  • Priority booking access: Give loyal guests early access to peak season dates before they are released publicly.
  • Extended checkout: Offer complimentary late checkout to returning guests.
  • Room upgrades: For multi-unit operators, offer upgrades to better units for loyal guests.
  • Welcome enhancements: Provide upgraded welcome amenities for repeat visitors.
  • Flexible policies: Offer more generous cancellation terms for guests with proven track records.

Implementation Tip: Start simple. A basic 10% repeat guest discount is better than an elaborate program you never implement. You can add complexity as your base of repeat guests grows.

Personalization Strategies

Personalization transforms transactions into relationships. When guests feel known and remembered, they develop emotional connections that drive loyalty beyond rational discount calculations.

Guest Profile Management

Maintain detailed records of each guest to enable personalization:

  • Preferences noted: Record any preferences mentioned during stays, from pillow firmness to coffee brands to room temperature settings.
  • Special occasions: Note birthdays, anniversaries, and other dates that might coincide with future stays.
  • Travel patterns: Track when and why guests typically travel to anticipate future booking windows.
  • Communication style: Note whether guests prefer minimal contact or appreciate frequent engagement.
  • Issues and resolutions: Document any problems and how they were resolved to avoid repetition and demonstrate improvement.

Implementing Personalization

Use gathered information to customize future experiences:

  • Pre-arrival preparation: Set up the property according to known preferences before returning guests arrive.
  • Communication customization: Reference previous stays and known preferences in messages.
  • Gift selection: Choose welcome amenities based on demonstrated preferences rather than generic offerings.
  • Local recommendations: Provide recommendations based on past activities and interests.

Balancing Personalization and Privacy

Effective personalization requires sensitivity to privacy concerns:

  • Transparent data collection: Let guests know you keep notes to improve their experience.
  • Opt-out options: Allow guests to request that their information not be retained.
  • Subtle application: Apply personalization naturally rather than demonstrating that you have researched them extensively.
  • Secure storage: Protect guest information appropriately, especially any sensitive details.

Direct Booking Strategies

Converting platform bookers to direct bookers represents the ultimate loyalty achievement. Direct guests avoid platform fees, book with greater commitment, and demonstrate true loyalty to your property rather than algorithm-driven discovery.

Building Direct Booking Capability

Before encouraging direct bookings, establish the necessary infrastructure:

  • Booking website: Create a professional website with direct booking capability. Many property management systems include website builders.
  • Payment processing: Set up secure payment processing to handle credit card transactions.
  • Rental agreement: Develop a clear rental agreement covering terms, policies, and liability.
  • Insurance considerations: Ensure your insurance covers direct bookings, as some platform protections may not apply.

Incentivizing Direct Bookings

Give guests compelling reasons to book directly:

  • Price advantage: Since you save platform fees on direct bookings, share some of that savings with guests through lower rates.
  • Exclusive availability: Consider holding some prime dates for direct bookers only.
  • Enhanced flexibility: Offer more favorable cancellation or modification terms for direct bookings.
  • Loyalty program acceleration: Provide bonus points or accelerated tier status for direct bookings.

Transitioning Platform Guests

Moving existing platform guests to direct booking requires careful approach:

  • Platform compliance: Respect platform rules about communicating with guests. Most allow relationship-building after the stay is complete.
  • Value proposition: Clearly communicate why direct booking benefits the guest, not just you.
  • Easy transition: Make the direct booking process as simple as platform booking.
  • Trust building: Help guests feel as secure booking directly as they do through platforms.

Referral Programs

Loyal guests often know others who would love your property. Structured referral programs turn satisfied guests into active promoters.

Referral Incentive Structures

Design rewards that motivate referrals while maintaining profitability:

  • Dual incentives: Reward both the referring guest and the new guest. This creates a win-win that feels generous rather than transactional.
  • Credit vs. cash: Booking credits encourage future stays, while cash or gift cards provide immediate value.
  • Tiered rewards: Increase rewards as guests make multiple referrals, encouraging ongoing promotion.
Sample Referral Program
  • Referring guest receives: $75 credit toward next stay
  • New guest receives: $50 off first booking
  • Bonus: Additional $25 credit after referee's successful stay
  • Super referrer: After 5 referrals, earn VIP status with 25% lifetime discount

Making Referrals Easy

Remove friction from the referral process:

  • Unique referral codes: Provide each guest with a personal referral code that tracks their referrals and applies discounts automatically.
  • Shareable links: Create easy-to-share links that can be texted or posted on social media.
  • Email templates: Provide pre-written referral messages that guests can customize and forward.
  • Social sharing: Enable one-click sharing to social media platforms.

Ready to build lasting guest relationships at your STR? Our network of STR-specialized agents can help you find properties ideal for repeat guest business and connect you with marketing professionals who understand vacation rental loyalty. Get matched with an STR expert today.