Situation

Our client, a leading hospitality chain, was seeing repeat sales walk out the door — literally. Only 35 percent of one-time guests came back for additional stays.

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This global hotel chain uses AI to increase the impact and efficiency of all of its campaigns.

The client also suspected that its rule-based marketing tactics were ineffective in encouraging repeat guests, so it wanted to:

  • Target potential repeat customers with customized campaigns.
  • Increase the rate of repeat bookings.
  • Optimize its marketing analytics process with minimal additional resources.


Action

We used a NAVIK MarketingAI pilot to personalize offers to customers who had stayed only once in the last two years. We created a pool of 16 predesigned offers, which MarketingAI personalized based on the guest’s stay behavior, past offer responses, and demographics. This also included identifying microsegments, predicting future stay likelihood and offer propensity.

Then we combined these models using AI to recommend offers for each customer.

The personalization strategy specified four email waves over an eight-week period, the results of which we compared to a control set that had received a randomized offer. This approach ensured the only difference between these groups was personalization.

Once the client’s marketing team began leveraging AI, stay revenue and bookings increased. In just one pilot, the client saw $8 million in incremental revenue from loyalty club members and $5 million in incremental revenue from targeted non-club members.

Results

Now our client uses NAVIK Marketing AI to increase the impact and efficiency of all of its campaigns. Marketing leaders, monetization managers, and marketing operations leaders use it to make critical decisions every day, recommending personalized campaigns based on artificial intelligence.

  • $8 million

    revenue from club members
  • 16

    predesigned offers
  • 43,000+

    new users identified