Guide
The Hidden Math of Loyalty - Why Hitting 20% Repeat Guests Changes Everything
Executive Summary
Returning guests are dramatically cheaper to win and spend more over time. A small shift to 20% repeat can reduce reliance on paid channels and commissions.
The Math (Simple Model)
Retaining customers is consistently cheaper; meta-analyses show retention costs far less than acquisition and small retention gains drive outsized profit.(link)
OTA commissions typically run ~15–25% (often more with programs)- avoided on direct repeats.(link)
Illustration:
If 100 bookings/month at €150 ADR with 0% repeat → 100×€150; 60% OTA → ~€2,250 in commissions at 15%. Move to 20% repeat direct and OTA share drops accordingly → thousands saved annually.
Action Plan
Collect Consent & Data
Collect consent (email/WhatsApp) at check-in; log birthday/month + interests.
Create Anchor Segments
Create 4 anchor segments: “Summer repeaters,” “High-ADR repeaters,” “Families,” “Locals weekend.”
Use a Monthly Touch
1 useful, non-spammy message/segment (seasonal invite, small perk, reminder).
Build a Reward Loop
Small predictable perks (early check-in, late checkout, coffee voucher), not blanket discounts.
KPIs to Track
- % repeat guests (30/60/90-day windows)
- Direct share (%) among repeats
- Repeat ADR vs first-time ADR
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