Guest Lifetime Value (GLV) is the total revenue a hotel can expect from one guest over the entire relationship. It includes room reservations, ancillary services, and referrals. GLV helps hotels measure how profitable individual guests are, not just how profitable a single stay is.
GLV helps with making decisions about guest relationships, loyalty programmes, and personalised marketing. By understanding which guest segments have the highest lifetime value, hotels can adapt their communication, offer the right upgrades, and invest more in keeping guests.
It can also be used with the PMS and CRM to help staff track how often customers stay, how much they spend, and how they engage with the business across different channels.
• Create personalised offers for guests before they arrive, and upsell them during their stay.
• Encourage people to sign up for loyalty programmes.
• Keep in touch with customers after they've left and send them special offers.
• Ensure service consistency to encourage repeat stays.
The key point to understand is that it is often better for a company to increase the value of guests already on its books than to try to attract new ones. Even a small increase in guest retention can significantly impact total revenue.
