7 Ways How Personalization in Hospitality Can Make Your Service the Best

Respected and heard, we can assume. Well, all these pleasures are possible thanks to personalization.

In the third quarter of 2024, approximately 64% of consumers worldwide expressed a preference to buy from companies that adapt their experiences to individual needs, Statista reported. What’s more, McKinsey found that 71% of consumers even expect to get personalized interactions from companies.

The good news is that guests are ready to pay for personalization. IHG Hotels & Resorts, a major hotel brand, reported that guests chose to spend an additional $22 per night, on average, to customize their hotel room to their liking.

But how exactly can hospitality businesses use personalization to enhance guest experiences? Keep reading, and we’ll tell you how.

In this article, we’ll plunge into:

• The role of personalization in hospitality
• Key components of personalization
• Benefits of personalization and how to implement it effectively
• Real-world personalization in hospitality industry examples

Without unnecessary chit-chat, let's get started!

What Is Personalization in the Hospitality Industry

Personalization in hospitality is the practice of adapting services, experiences, and interactions to individual guests based on their preferences, behaviors, and past interactions.

Personalization makes guests feel valued and understood. Instead of offering a generic experience, hotels predict guest needs and adapt experiences.

Numbers also show us the growing demand for personalization. Thus, the global revenue for customer experience personalization and optimization software and services is projected to grow from $7.6 billion in 2021 to $11.6 billion by 2026, with a rise of over 65% over the period, according to Statista.

Two main goals of hospitality personalization are simple: to make guests feel special and to optimize their experience. A McKinsey study found that companies that prioritize personalization generate 40% more revenue than those that don’t.

In addition to the increased revenue, businesses that prioritize personalization see stronger customer retention and better online reviews. The State of Personalization report by Twilio reveals that 56% of consumers are likely to become repeat buyers after a personalized experience, with Millennials and Gen Z showing even higher rates at 59% and 60%, respectively.

But what exactly are the components of personalization in hospitality? Let’s see the next section!

Components of Customer Experience Personalization

A personalized guest experience consists of details that make visitors feel valued. Here’s what truly defines the personalization guest experience in the hospitality industry.

Using customer data

Gathering guest data allows hotels to offer experiences that feel personalized. Booking history, feedback, and on-property behaviors help create customized services. For example, if guests frequently book spa treatments, a hotel can offer them a personalized spa discount. Similarly, they can automatically offer a returning business traveler their preferred room type.

How is this possible technically? Personalization relies on sophisticated data integration between PMS (property management systems), CRM (customer relationship management) systems, and advanced data analytics platforms. Through API-based integrations, this data is pulled together to create dynamic guest profiles, which can then trigger automated personalized offers. For example, a hotel could integrate its CRM with a booking system to automatically recognize repeat customers and offer tailored discounts on services they have previously enjoyed.

A bright real-life example of wise customer data usage is Marriott’s Bonvoy program, which enhances guest stays. According to it, Marriott tracks guests’ preferences across their global properties. Then, they use this guest data to ensure familiar and personalized comfort no matter the location.

Tailored communication

Guests tend to ignore generic messages. However, personalized communication captures attention and strengthens relationships. Customers love and feel special when staff call them by name, acknowledge their past stays, and offer relevant suggestions to create a more engaging experience.

For example, based on historical data, a hotel CRM system can send guests reminders about their favorite restaurant at the hotel or exclusive invitations to events of their interest. But even a simple: “Welcome back, Sarah! Your favorite suite is ready” is a detail that raises the guest's mood.

Behind the scenes, tailored communication is also made possible through integrations between PMS, CRM platforms, and AI or other marketing automation tools. These systems collect and analyze guest data and trigger tailored messages via email, SMS, or even in-room tablets.

AI-driven tools can also segment guests into personas and predict which offers or services will resonate best. For instance, using a CRM like Salesforce and an AI tool like ChatGPT-powered recommendation engines, hotels can automate personalized communication that feels more like thoughtful interaction.

Statista reported that around 65% of marketing professionals globally incorporated subject line personalization in more than half of their email marketing campaigns, which emphasizes how widespread personalized digital communication has become.

Exclusive offers and promotions

Promotions feel more valuable when they are personalized to guest preferences. Using machine learning algorithms, hotels can personalize promotions. A hotel's CRM can trigger exclusive offers for returning guests based on the services they’ve used in the past.

For instance, a luxury resort could offer a couple a discounted private dining experience, or a frequent corporate traveler could receive a package deal on high-speed Wi-Fi and late checkout. As for successful real-life examples, Hilton Honors customizes promotions based on booking habits and offers location-specific deals to make rewards feel more meaningful.

Predicting guest needs

Memorable hospitality experiences are directly related to predicting what guests want before they ask. Analyzing previous stays and behaviors helps hospitality businesses proactively meet expectations. Predictive analytics, powered by AI and integrated into PMS and CRM systems, helps analyze past guest behavior to forecast future needs.

For example, an AI algorithm may analyze patterns in booking history and, in real-time, suggest a personalized room setting, such as a yoga mat for a wellness-focused traveler. This could be automatically triggered by the PMS and can significantly enhance guest satisfaction with no manual intervention required.

Personalized room settings

A hotel room should feel like a home away from home. Smart technology allows guests to adjust lighting, temperature, and entertainment to match their preferences. Hilton’s Connected Room technology enables visitors to control room settings through their phones. They can select preferred temperatures, stream favorite shows, and even adjust lighting scenes before stepping inside. Small touches like pillow preferences or fragrance choices create a more comfortable stay.

The technology behind this? This hotel personalization is powered by Internet of Things (IoT) devices integrated with hotel room management systems. With systems like Hilton’s Connected Room, customer preferences can be saved in their profile and accessed in real-time in a mobile app. For instance, room temperature and lighting can be pre-set through the hotel’s IoT ecosystem, triggered by the guest’s mobile device upon arrival.

Seamless experience across channels

A consistent experience across websites, apps, and in-person guest interactions builds customer trust and satisfaction. Booking a spa treatment online should be reflected in the hotel’s system to ensure smooth confirmation via email or app notification. Guests engaging with a chatbot before arrival should find their requests acknowledged at check-in.

How is this implemented? This integration is possible through cloud-based systems and APIs that connect hotel systems, apps, and websites. A unified communication platform helps with data updates across all channels. For example, when a guest books a service via the app, the system syncs the information with the front desk to ensure guests receive seamless confirmation across channels.

Customized loyalty programs

Reward programs should feel as personalized as the stay itself. Guests appreciate benefits that match their travel habits, like free room upgrades, dining discounts, or early check-in options. Recognizing guest behavior, like awarding bonus points for frequently used services, boosts engagement and long-term loyalty.

A successful real-life example is the Hyatt Hotel chain. The hotels have a loyalty program in which they allow members to choose preferred benefits and make rewards more relevant.

Dynamic pricing based on guest preferences

Not all travelers book the same way, and pricing strategies should reflect that. A business traveler may appreciate fixed corporate rates, while a leisure guest might seek package deals with included amenities.

How does dynamic pricing work? Dynamic pricing relies on machine learning algorithms that continuously analyze guest data, booking patterns, and external factors like demand. Integrated with the hotel's revenue management system, these tools adjust prices in real-time based on guest segments. For example, frequent massage users may receive a discount on rooms that include massage credits, automatically calculated and offered based on their booking history.

Context-sensitive recommendations

Guest needs change based on the purpose of their trip. A family on vacation benefits from recommendations for kid-friendly attractions, while a solo traveler might prefer nightlife suggestions.

Recognizing the reason behind a guest’s visit allows hotels to offer more relevant activities, dining options, and services. Tailored recommendations delivered via concierge, apps, or AI chatbots enhance the experience and add value to a stay.

The tech behind this? Contextual recommendations are powered by AI-based recommendation engines integrated with hotel apps and CRM systems. These tools analyze data like the reason for the trip, previous bookings, and customer preferences to offer custom suggestions.

But what exactly are the key benefits of implementing personalization in hospitality? Let’s read in detail in the next section.

Don't Underestimate the Importance of Personalization in Hospitality: Key Benefits

Making guests feel special is what keeps them coming back. When people stay at a hotel, they want more than just a clean room and good service. They want to feel welcomed, remembered, and cared for. A little personalization makes their stay more enjoyable and stress-free. Here’s why it matters.

Personalization makes guests happier

Everyone likes to feel special. Something as simple as remembering guests' coffee orders or setting the room to their preferred temperature can make their stay more enjoyable. Small details show that you care and turn a standard visit into a memorable experience for satisfied guests.

Personalization encourages repeat visits

People tend to return to places where they feel comfortable and appreciated. A guest who knows they’ll always get their favorite room or a welcome note from the staff is much more likely to book again. Personal touches build loyalty.

Personalization gives you a competitive advantage

There’s no shortage of hotels, so standing out is tough. A comfortable bed and good service aren’t enough anymore because guests want something extra. A hotel that takes the time to understand what each guest likes and provides a more personalized experience for hospitality will always be more memorable than one that treats every stay the same way.

Personalization boosts your revenue

People are more likely to spend money when offers match their interests. A guest who regularly books spa treatments might be happy to receive a special package deal. Someone celebrating a birthday might love the option to upgrade to a suite at a discount. Instead of offering the same promotions to everyone, adjusting them to individual guests makes them feel more relevant and more likely to be used.

Personalization leads to better reviews

A great experience gets talked about. When guests feel like a business truly understands them, they’re more likely to leave a positive review or recommend it to others. A family who finds their room stocked with extra pillows and kid-friendly snacks will remember the effort. A returning guest who doesn’t have to repeat their preferences every visit will appreciate the seamless service. These details turn into five-star reviews.

Personalization makes the guest experience smoother

A lot of frustration during a hotel stay comes from little inconveniences, like having to call the front desk for extra towels, waiting in long lines at check-in, or not knowing where to find the best coffee nearby. Knowing what guests need before they ask, offering digital check-ins, or providing custom recommendations makes everything easier for them.

Personalization prepares your business for the future

Guest expectations are changing. More people now expect hotels to recognize their preferences and make things as effortless as possible. Technology makes it easier to personalize everything. Hotels that embrace these changes now will be in a better position to keep up with what guests want in the years ahead.

7 Ways How To Implement Personalization Into Your Business

Personalizing a guest’s experience is about making them feel welcome, understood, and comfortable. Small, thoughtful gestures can turn an ordinary stay into one they remember and want to repeat. Here're key practical personalization techniques for hospitality businesses:

Gather and understand guest data

The more you know about your guests, the better you can meet their needs. Paying attention to their preferences through booking history, past requests, or direct feedback helps create a more enjoyable stay.

How to do it?

• Using CRM and other systems, take note of guest preferences like room location, extra pillows, or dietary restrictions and make sure they’re set up before arrival.
• Use guest surveys or simple check-in questions to learn more about their stay expectations.
• Keep track of returning guests and make small adjustments based on what they liked before.

Example: A guest who always books a high-floor room shouldn’t have to ask for it every time. They should arrive to find their request already taken care of.

Communicate with a personal touch

Guests appreciate when a hotel speaks to them like real people, not just another booking number. Personalizing communication makes their stay feel more thoughtful from start to finish.

How to do it?

• Address guests by name in emails, texts, or in-person greetings.
• Send a quick, relevant message before arrival, like “We see you’re arriving late. Let us know if you’d like a snack waiting in your room.”
• Follow-up after checkout with a message that refers to their stay, not just a generic “Thanks for visiting.”

Example: Instead of an automated email saying, “Thank you for staying,” a hotel could send, “Hope you had a great time, Emily! Let us know when you're ready for another weekend getaway.”

Let guests customize their experience

Some guests want a quiet retreat, while others want to explore the city. Giving them control over their stay makes them feel more comfortable.

How to do it?

• Let guests pick room features like bed type, temperature, or even fragrance at booking.
• Offer different check-in options, like mobile, self-service, or a traditional front-desk greeting.
• Allow room service or housekeeping preferences to be set through an app or front desk request.

Example: A hotel could let guests adjust their room settings before arrival so they walk into a space that already feels right for them.

Make technology work for you and your guests

Good technology should make the experience smoother, not more complicated. Simple digital tools can help personalize service without making it feel robotic.

How to do it?

• Use a system that saves customer preferences so they don’t have to repeat requests each stay.
• Offer digital keys or self-check-in for guests who prefer less interaction.
• Use AI-powered chat features to answer guest questions and offer relevant suggestions.

Example: An app that remembers a guest’s favorite breakfast order could offer a one-tap option to reorder it during their next stay.

Create loyalty programs that feel personal

A loyalty program should make guests feel recognized, not just reward them with generic discounts. Giving them meaningful options makes them more likely to return.

How to do it?

• Let guests choose their rewards, like free breakfast, a spa credit, or early check-in.
• Offer perks based on what they actually use, rather than just collecting points for room discounts.
• Surprise frequent guests with unexpected perks that match their preferences.

Example: Instead of offering a random discount, a hotel could reward a guest who loves wine with a free tasting event during their stay.

Train your team to personalize service

Technology helps, but nothing replaces good hospitality. A well-trained staff that picks up on small details can make a guest’s experience feel truly personal.

How to do it?

• Encourage staff to remember and mention past guest visits: “Welcome back, Mr. Johnson, your usual corner room is ready for you.”
• Give employees the flexibility to adjust service, like offering a free late checkout for a guest with a late flight.
• Teach staff to notice small preferences, like a guest who always orders tea instead of coffee, and proactively offer it.

Example: A front desk employee who remembers that a guest enjoys jogging in the morning might have a map of nearby running trails ready for them.

Offer tailored recommendations

Guests appreciate helpful suggestions, especially when they fit their interests. Instead of generic recommendations, a little thought can make them feel more personal.

How to do it?

• Ask guests at check-in what kind of experience they’re looking for, relaxation, adventure, or dining, and tailor suggestions accordingly.
• Provide recommendations based on the purpose of their stay: a romantic getaway, a business trip, or a family vacation.
• Use guest history to offer activities they might like based on what they’ve done before.
• Digital transformation services for hospitality help improve personalized guest experiences for businesses which aim to stand out in a competitive market.

Example: A solo traveler might get recommendations for cozy cafés with great Wi-Fi, while a family could receive a list of kid-friendly attractions nearby.

In the next section, we’ll look at real-world examples of hotels that have mastered hospitality personalization and how you can apply their strategies in your own business.

Real-Life Examples of Personalization in Hospitality

Some of the most successful hospitality brands have built their reputation on personalized experiences. Let’s see for inspiration!

Airbnb's host personalization

Airbnb thrives on the idea that no two stays should feel the same. Unlike traditional hotels, Airbnb allows hosts to create unique, home-like experiences tailored to each guest. Many hosts love adding thoughtful touches that make travelers feel welcome.

How does Airbnb personalize the experience?

• Hosts often leave handwritten notes or welcome gifts tailored to the guest’s reason for travel. For example, a bottle of wine for a honeymooning couple or a list of family-friendly activities for parents with kids.
• Some properties offer customized local guides filled with recommendations based on the guest’s interests, such as food tours, hiking spots, or cultural experiences.
• Repeat guests might find their favorite snacks in the kitchen or their preferred coffee stocked for their stay.

Four Seasons’ customized itineraries

Luxury hotels understand that hotel personalization means more than just remembering a guest’s name. The Four Seasons has mastered this through its customized itineraries, which cater to each traveler’s unique preferences.

How does Four Seasons create personalized itineraries?

• Guests can fill out a pre-arrival questionnaire detailing their interests, such as adventure, relaxation, or culinary experiences.
• The concierge team curates a detailed itinerary with custom recommendations, like private yacht tours or exclusive dining reservations.
• Special experiences are offered based on the guest’s past stays, such as setting up a surprise birthday celebration or arranging a private yoga session for a wellness traveler.

The Ritz-Carlton's personalized welcome experience

The Ritz-Carlton is known for delivering some of the most personalized services in the hospitality industry. Their legendary customer service philosophy revolves around recognizing and acting on guest preferences..

How does The Ritz-Carlton personalize guest welcomes?

• The hotel collects guest preferences before arrival, including favorite drinks, room temperature, and preferred pillows.
• Guests celebrating a special occasion, like an anniversary or birthday, are often surprised with a complimentary cake, champagne, or handwritten note from the staff.
• For repeat guests, the hotel ensures that previous requests (such as hypoallergenic pillows or extra towels) are already set up in the room.

What we can learn from these examples

Guest experience personalization doesn’t require a luxury budget or a five-star brand name. The key takeaway from Airbnb, Four Seasons, and The Ritz-Carlton is that understanding guests and acting on their preferences creates stronger connections and better experiences.

What's important, personalization doesn’t mean overcomplicating things. It just means paying attention and making small changes that make a big difference.

Still, implementing personalization is a resource-intensive process that is not without challenges. Statista’s global survey of senior marketing executives revealed that 56% of respondents named delivering personalization in real-time a significant challenge. 42% of respondents mentioned the inability to scale while finding a balance between personalization efforts and privacy completes the top three with 38%.

Anyway, partnering with a reliable software development provider can make the process of personalization integration easier and smoother.

Elevate Your Hospitality Business With a Personalized Guest Experience

Providing personalized guest service in the hospitality industry is the new standard. Businesses that adapt will see higher satisfaction, stronger loyalty, and increased revenue. Creating a smooth hospitality personalization guest experience requires the right technology, expertise, and strategy. That’s where we come in.

At TechMagic, we specialize in developing custom solutions that help hospitality businesses integrate personalization effortlessly. If you need a mobile app that allows guests to customize their stay, a CRM system that remembers guest preferences, or AI-driven tools that provide personalized recommendations, we have the expertise to bring it to life.

How we can help

• Custom mobile apps. Give guests control over their experience with an app that lets them adjust their stays, book services, and receive personalized recommendations.
• AI-powered personalization. Use data and machine learning to anticipate guest needs and enhance their stay without extra effort.
• CRM and guest data management. Keep track of guest preferences to ensure every visit feels familiar and effortless.
• Seamless integration with your systems. If you're using an existing property management system, we ensure smooth implementation.

Personalization doesn’t have to be complicated. With the right technology and approach, you can provide a guest experience that stands out and keeps customers coming back. Contact us today to discover how we can help you build a more personalized, guest-focused hospitality business.

Summing Up

Personalization is what guests expect in the hospitality industry. Guests want an experience that feels tailored to them. Implementing hospitality customer personalization doesn’t require a massive budget. It's about thoughtful technology, guest data management, and a team that understands the value of making each guest feel special.

If you're ready to enhance your guest experience with innovative, personalized solutions, we’re here to help. Let’s build something that keeps your guests coming back.

FAQs

1. What is personalization in hospitality industry?

   Personalization in hospitality refers to tailoring services, experiences, and interactions to match individual guest preferences. This can include customized room settings, personalized communication, exclusive offers, and AI-driven recommendations. The goals are to make guests feel valued and optimize their across the entire guest journey.

2. What is an example of personalization?

   An example of personalization in hospitality is a hotel remembering a guest’s favorite drink and having it ready upon arrival. Another example is a mobile app that allows guests to adjust their room temperature and lighting before they check-in.