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Summer marks the start of peak season for the Australian hospitality industry, as consumers take advantage of better weather and time off to get in the festive spirit. But with spending at hotels, restaurants, cafes, and bars impacted by cost-of-living pressures throughout much of 2023, peak season adds significance for operators this year.

For thousands of hotel F&B venues around Australia, the number of reservations they can secure during the busy holiday period is a marker of success. Reservations are the most straightforward way to measure revenue on a given day. But the number of reservations shouldn’t be the only metric businesses are tracking to plan, forecast, and build strategies for the long term. With a focus on retention, not just reservations, venues can drive tremendous short- and long-term success.

Think long-term

Reservations are undoubtedly crucial for any hotel F&B establishment. They fill seats and venues and bring in revenue. However, viewing them as the one and only measure of success tells us very little about the long-term health of a business. Instead of focusing solely on getting guests through their doors, venues should also focus on how to make them return. Loyalty and retention are invaluable, and by continuing to evolve the guest experience to build long-term relationships, venues can encourage repeat visits while increasing sales and profits.

Exceptional experiences

Australia is one of the world’s foodie capitals, home to a wide range of globally-renowned dining experiences. In such a crowded, competitive, and elite market, standing out based on price or menu can be challenging. As the cost of living pressures squeeze household spending, two-thirds of Australians (68%) prioritise quality over quantity when it comes to visiting venues, according to SevenRooms research.

To encourage their patronage, venues must focus on providing an excellent guest experience. SevenRooms’ research found that 34% of Australian diners would revisit a venue if offered a complimentary drink or appetiser. The study also revealed that personalised offers based on a guest’s previous visits and dining credits for reaching a new loyalty tier would also entice them to return. Utilising perks and personalising the guest experience to stand out are two ways to capture the attention and dollars of Australians.

Venues can drive acquisition and retention by providing the value that truly matters to guests, ultimately increasing the likelihood they’ll recommend it to friends, family, or colleagues. More than half (53%) of Australian diners regard personal referrals when selecting a restaurant. When operators treat a reservation as the start of the guest retention process rather than the end of the guest acquisition process, it paves the way for sustained success.

The role of data

To shift their focus from getting reservations to building lasting relationships, venues must focus on personalisation and access to data. Start with a mindset shift—viewing reservations as opportunities, not an end goal. Operators can personalise guest experiences using their approved data to gain insights into guest habits—such as their typical orders, spending patterns, frequency of their visits, birthdays, allergies, and more. Using this data to create personalised experiences demonstrates a venue’s understanding of their guests and allows them to tailor the experience to their needs.

From the first touchpoint, approved guest data is crucial throughout the customer journey. For example, it allows venues to identify the most effective reservation channels and pinpoints those that attract the most repeat diners and generate the highest revenue. With this information, venues can prioritise marketing efforts towards the most valuable channels, optimising sales and profits.

The data can also be used to craft automated marketing campaigns, enabling venues to send personalised offers, event invitations, and special promotions to keep guests engaged and coming back. Email marketing, especially tailored to individual guests, significantly enhances the overall experience and is a vital tool in encouraging repeat visits.

Creating loyalty and referral programs with rewards and incentives like dining credits, exclusive events, and discounts can also improve guest retention, encouraging guests to bring friends or recommend the restaurant through word-of-mouth.

As the summer season kicks off, operators grapple for attention in a competitive market and against economic pressures. They must shift their attention from short-term bookings to establishing enduring relationships to stand out. While the approaching peak season naturally presents opportunities, the key to success for venues lies in their approach to customer relationships and retention. Establishing good habits and processes today can be the springboard for long-term sales and profits.