Is retention analysis useful for the hotel industry.

According to Peelen and Beltman retention analysis is “holding on to customers. If a company becomes aware in time of those customers who demonstrate an increased likelihood of ending the relationship, then it can take action to prevent this”. So having a retention analysis for a hotel, it can prevent loyal customer leaving, which is very beneficial for the hotel. For the hotel industry a current guest turns into a former guest at the moment the guest decides not to come to the hotel anymore. So if a loyal guest of a hotel comes to a certain hotel every year with easter and one year he or she decides not to, the relationship between hotel and guest is over. (Peelen & Beltman, 2013)

Concluding what above is mentioned, retention analysis is a very beneficial analysis for a hotel to have to keep up relationships with the guests. As an example we can look at a research of retention of the hotel industry in Malaysia.

In this research is also mentioned that customer retention is connected to customer satisfaction and customer service. When a hotel delivers good service, this mostly leads to higher satisfaction, which leads to customer retention and customer retention can lead to an increase in profits for the hotel, which is something every company wants to achieve. (Syaqirah & Faizurrahman, 2014)

Nowadays customers do not always want to give out much personal information. However this is very crucial for the retention analysis, therefor it is necessary to start collecting data from the beginning when a guest comes to the hotel. If the point has reached where the relationship is maybe failing, a retention analysis can be done more easily. For a retention analysis in the hotel industry information such as, country, hobbies, lifestyle and job should be taken into account. However even though customer do not also want to give out all the personal information everything helps and when doing a data collection over a longer period of time, enough data can be collected to have a reliable retention analysis. Therefor hotels also do not need to start to late with analysing the retention of the guests.(Peelen & Beltman, 2013)

The hotel industry is very competitive and hotel come up every day with new marketing strategies. Therefor retention analysis should be one of the main focus for managers in the hotel industry. As Syaqirah and Faizurrahman mentioned in their research “It’s easier and cheaper to keep a customer than find a new one”. (Syaqirah & Faizurrahman, 2014)



Peelen, E., & Beltman, R. (2013). Customer Relationship Management. In E. Peelen, & R. Beltman, Customer Relationship Management. Pearson Education Limited.

Syaqirah, Z. N., & Faizurrahman, Z. P. (2014). Managing Customer Retention of Hotel Industry in Malaysia. Procedia-Social and Behavioral Sciences, 130, 379-389.


One thought on “Is retention analysis useful for the hotel industry.”

  1. Hotels tend to use retention data effectively for after-sales contacts. In my opinion most hotels should invest more in pro-active engagement management and community building. An engaged customer is more likely to be a loyal customer.


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