According to the latest customer loyalty report, the tourism and hospitality industry is going through a better phase in comparison to the recession phase that was intense just a year back. However, two factors are exerting pressure on the hospitality industry, and these are:

1. Increased competition,                            and                                        2. Retaining loyal customers

Increased competition

As in any sector, increased number of players is creating increased competition among various segments of tourism and hospitality industry. To gain upper hand in the competition, players are offering attractive schemes and prices to the customers. This has opened various options for the customers and they are indeed trying to make the best of the money they spend. This is causing attrition of the loyal customers and they are willing to shift from old service providers to the new ones who are providing better options at the same or even less prices. The medium and small players may have to cut down on its profits in order to get the chunk of customers.

Retaining loyal customers

Increased competition has had its effect on the retention of old and loyal customers of hotel and tourism industry. It has become difficult for the medium and small operators to retain old customers. It is more difficult for them as their brand promotion and advertising budgets are often restricted and these will not guarantee effective return on investments. Though, retaining loyal customers require less effort than fetching new customers, it is equally easy to lose old customers if no proper strategies are implemented in this regard.

The solution is right here

Internet marketing is the solution that will address both of the problems, increased competition and retaining loyalty. Aggressive internet marketing strategies run with the help of experts can take the client ahead of other competitors.

Emails and newsletters are the best cost effective options to keep in touch with the old customers and keep them informed about various offers and schemes run by the client. These are also effective in reaching prospective clients and attracting them with the offers.

Internet is fast being utilized by the tourists as a medium to seek more information even before stepping out of the house. Prominent presence on the net by internet marketing and reaching out to the customers by newsletters is the solution.