3 Reasons Why Hotels Should Use Gift Cards and Vouchers Right Now
Gift cards are a great marketing vehicle to promote your brand and attract new customers, all the while generating quick and easy revenue.
When the demise of overseas tourism impacted the hospitality sector, hotels pivoted through a myriad of strategies in shifting revenue income from repurposing premises, crafting fine dining experiences at home, to sales of gift cards and vouchers. It is no surprise businesses opt for the gifting route as gift cards have been the most requested present for 15 consecutive years, exceeding the demand of iPhones. The gift card market is also expected to reach US$750 billion by 2026. Throughout the pandemic, it has been revealed that gift cards have generated the majority of a merchant’s overall income, as on average, gift cards can contribute 2-5% of the company’s total revenue.
Aside from major key moments celebrated year-end starting with Black Friday till Christmas, there are also year-round opportunities for consumers to purchase gift cards and gift vouchers. Birthdays, for one, represent 48% of purchases but local festivals such as Lunar New Year and Eid al-Fitr are other events that can help drive revenue during slow periods in one market, but peak in another. Having a promotional calendar to celebrate key universal commercial dates such as Valentine's Day and Easter may be a safe bet, but by localising, you can target a multitude of opportunities all year round and increase sales on specific products or experiences.
In these turbulent times, hoteliers have to be agile to explore new ways of revenue in order to boost sales and cash flow beyond room bookings. Gift cards and gift vouchers have proven to not only supplement revenue income but utilising this scheme as a marketing exercise can help build customer loyalty for future visits upon re-opened borders.
Here are three reasons why gift cards can help uplift businesses today:
1. Boost sales and cash flow
Like a bank, maintain the cash flow by having customers purchase pre-paid gift cards and immediately reap in sales. The value of gift card sales can help support occurring expenses during dormant periods. Not only will this get customers through the door for future visits, but it is also expected 72% of gift card recipients will spend about 38% higher than its original amount. Incentivising buyers with additional rewards for themselves (e.g. spend $500 to get a complimentary $50 voucher) can also increase basket size.
It’s been projected an estimated two million people have unused gift cards that were given in the last year. With Techsembly’s gift cards, get paid instantly on each sale of gift cards and own breakages of the full amount even if unredeemed, enabling you to earn 100% of its profits.
2. Zero customer acquisition costs
There are almost little to no customer acquisition costs with gift cards as customers will return to your hotel, restaurant or online shop to consume and spend more than expected.
Combined with promotional deals, referrals can also drive new customer acquisitions without having to pay extra for growth. Past guests can be retargeted with personalised offers to entice return visits. Tailored offerings over generic promotions for loyal guests are key to building long-term relationships.
In addition, as digital gift cards are on the rise and processed electronically, operational overheads are also reduced. However, we also offer global fulfilment points from our America, Europe and Asia fulfilment centres for physical distribution if needed.
Techsembly is also offering marketing services to our partners and network of marketplaces with low commission fees in setting up your first e-store with us. We have a dedicated customer service team responsible for your account and clients; leave the questions to us and let us help you deliver a five-star experience remotely.
3. Market Your Brand
Create extraordinary experiences within your hotel or restaurants with events such as a couples massage or at-home fine dining for two. In line with your promotional calendar, draw out unique experiences that advocate your property and the local culture it situates itself in. Attract consumers with the hotel’s reputation and branding to market experiences towards new audiences.
Gift cards not only present an opportunity for loyal customers to show their support during tough times at their favourite places, but recipients are also highly targeted customers with great potential to become long-standing guests. Satisfied recipients would also be likely to return to patron the premise and purchase for friends or family members after.
1 in 2 guests prefers to purchase their gift cards directly from the brand, with 45% of people associating branded purchases with exclusivity compared to third-party marketplaces and is guaranteed fraud-proof. With that, allow customers to purchase gift cards in continuation of your branded online experience. Techsembly can adhere to your global branding guidelines, keeping the design consistent with a branded gift card store, embedded into your home page and customised with a vanity URL of your own.
Ready to upgrade your gift cards?
Techsembly is a revolutionary e-commerce platform trusted by the world’s leading five-star hotels seeking to create new revenue opportunities through online and gifting solutions. We offer a complete centralised management system to handle your e-commerce and gifting all on one platform. Combine all department orders and fulfil individually. We support the sale of gift cards (digital and physical), F&B (deliveries and pick-up), 3rd-party vendors, hotel merchandise and simple event bookings to unify all orders into a one cart checkout.
Since onboarding with Techsembly’s e-commerce platform and gift card solutions, our hotel clients have increased their revenue by up to 500% and sales by 380% - in just one year. Go live and online in as little as 2 weeks with a design consistent with your branding for a quick and easily approved dedicated storefront from HQ. Don’t miss out on any more key moments and land sales opportunities all year round, book a call with our hospitality expert to get you started.