Case Study

Transforming loyalty into revenue gold

ARCHOTEL

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ARCOTEL Hotels has built a strong reputation by prioritizing the needs and comfort of its guests, which is a solid foundation for any business in the hospitality industry. By offering a welcoming atmosphere and multiple locations centrally located between Germany and Austria, they've managed to distinguish themselves in a competitive market.

The Situation

Partnering with The Guestbook's Cash Back Rewards loyalty program was a savvy move for ARCOTEL Hotels. Loyalty programs can be powerful tools for retaining customers and incentivizing repeat business. The cash back element adds an extra layer of value for guests, enhancing their overall experience and encouraging them to choose ARCOTEL Hotels again in the future. Expanding the reach of the Cash Back Rewards program to include more hotels worldwide further benefits both ARCOTEL Hotels and The Guestbook. This partnership has increased the appeal of ARCOTEL Hotels to potential guests who value rewards and incentives while also strengthening the network and attractiveness of The Guestbook program.

The Results

€ 2.5M

Annual Room Revenue Impact

15,257

Room Nights

17.6%

Repeat Stay Percentage

17.3X

Revenue to Cost Multiple

€ 162

Average Daily Rate

497%

Cross Network Covering Program Fees

Achieving over €2.5M in room revenue from Guestbook-related reservations and booking 15,257 room nights within a year is a significant accomplishment. Moreover, the 17.6% rate of repeat stays demonstrates a strong level of guest loyalty. The fact that the program fees are covered by 497% through the bottom line is a clear indicator of the program's effectiveness in driving revenue for ARCOTEL Hotels. As an additional driver for direct bookings, employees participated in The Guestbook’s Guest Referral Program to convert existing guests to book direct for future stays. With over 1,600 guest’s referred, this initiative has helped strengthen ARCOTEL Hotel’ loyal customer base. This financial performance, especially when compared to commission-based third-party platforms, underscores the substantial return on investment that the partnership with The Guestbook provides.

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