Looking for a way to boost occupancy and improve revenue? Try gift cards. Many resort properties are capitalizing on the holiday season by offering gift cards redeemable for room nights, spa services, special packages, dining options, and more.

Pheasant Run Resort in the western suburbs of Chicago has taken to advertising its gift card program across all mediums—signage, radio tags, print ads, eblasts, and the property’s website all promote gift card sales. The resort is banking on the fact that people are looking for easy and affordable stocking stuffers for family and friends. Gift cards can be purchased in denominations of  $20. To encourage repeat customers, Pheasant Run Resort also is offering a limited-time special where customers receive and extra $50 for every $200 in gift cards they buy.

This type of loyalty program increases sales for both the buyer and the recipient. Plus, it can translate into revenue twice from the same transaction—once when the gift card is purchased and then again when it is redeemed when the guest hopefully spends additional money on services or amenities at the resort. Studies show that in general, consumers spend more than the face value of the gift card they are using. By limiting the time frame in which the gift card can be used, the hotel can control occupancy, as well.

From a profitability standpoint, gift cards improve cash flow, too. The hotel or resort benefits from the sale at the time the gift card is purchased, even though the property does not have to provide the rooms until the card is redeemed. So even if the property is currently sold out, it can still sell gift cards and increase revenue today.

In addition to boosting sales, gift cards can enhance brand identity. When the resort’s logo is emblazoned on the gift card, it is a constant reminder to the user of that property. It’s like a mini billboard in someone’s purse or pocket!

So this holiday season, if your hotel or resort is searching for a memorable way to generate sales, revenue and customer loyalty, why not implement a gift card program of your own? It could be just the gift you were hoping to receive.

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