With the exchange rate being favorable, many travelers have recently taken off for international destinations, but the domestic market is still going strong. Ninety-two percent of US domestic leisure travelers are planning a vacation over the upcoming six months (as of August 2024), and domestic travel around the globe is predicted to increase three percent each year.
But don’t take domestic travelers for granted. In such a competitive industry, it pays for hoteliers to put in the effort to attract these guests. Less impacted by economic downturns, domestic travelers are a relatively stable source of revenue compared to international vacationers. And the shorter the distance guests have to travel, the more likely you’ll see repeat business from them. It isn’t a “once in a lifetime” trip, which is to your benefit. Repeat guests splurge more and cost fewer marketing dollars to attract too.
Here is how to capture your share of the domestic travel market and bring those loyal, profitable guests in the door.
You may not have the Eiffel Tower, but all towns have something worth visiting, whether it’s the local park with fall leaf colors or quaint little bookstore/cafe down the road. Advertise these attractions on your website. Your “Things to Do” page or blog are ideal places to promote them and help boost your SEO (more on that below).
Take it one step further and partner with other businesses in your area to offer guests discounts and packages. This improves the guest experience and expands your marketing opportunities. For instance, you can run a joint social media campaign and/or exchange backlinks. Remember that your audience isn’t necessarily the same as your partner’s audience, and their channels enable you to reach potential guests who may not otherwise hear about you.
Use local, region-specific SEO strategies to attract guests looking to stay in your area. The first step is completing your Google Business Profile. Make sure your property’s business category, physical address, business hours, and all other details are filled in and up to date. Include targeted keywords in your business description (but avoid keyword stuffing!) and link to your property’s website. Your Google Business Profile is an important ranking factor; the more robust it is, the better.
The more positive reviews you have, the better for your local SEO too. Make a point of collecting and responding to reviews. You can ask for reviews by posting the links to your favored review sites around your property and in your guest messaging. Requesting reviews is completely acceptable to guests—and expected!
Cultivating partnerships makes a difference to your SEO as well because any backlinks they provide will be from a local source (and thus signal to Google’s algorithm that you’re worthy of local recognition).
The closer a business is to the user, the higher Google places it in search results, which gives smaller, local properties a leg up to compete with big-budget companies. A little under half of Google queries are for local information, so local SEO is worth investing in. You’re meeting your guests’ needs before they even step onto your property!
If you decide to work with an influencer, choose someone local. It’s better to use an influencer with an audience that closely resonates with your own, even if they have a smaller following. Delve into your guest data first so that you fully understand who your audience is.
Once you’ve selected someone with a matching audience, give them the creative freedom to do what they do best. They make their living by knowing their followers, and their expertise is worth trusting.
Hint: Use location targeting for social media and other ads to ensure your influencer reaches the right demographic.
By definition, staycations are for local travelers. To attract these travelers, your property needs to become the destination. What can you offer that they can’t have sitting at home? Smaller, boutique inns and hotels have an edge because of their uniqueness. They don’t have to adhere to brand standards and can add special touches like vintage furnishings and gas fireplaces.
Lean into this advantage by investing in amenities that make your guests want to return. Wellness add-ons are especially welcome, with wellness tourism growing 36 percent each year between 2020 and 2023. Healthy food options, physical classes like yoga or Tai Chi, and of course, a good night’s sleep all contribute to the guest’s wellbeing. You may even bundle these components together into a retreat.
Holidays are another good excuse to make it a special occasion and bring locals in the door. What about a Valentine’s Day package or Easter brunch? If you gain the locals’ trust with smaller activities and meals, they’ll be more willing to spend big with you when the time comes or recommend you to their out-of-town friends.
Everyone loves a good meal, with 95 percent of US vacationers on the lookout for a “unique food experience.” Building a local reputation for tasty dishes brings customers in the door. Emphasize your area’s cuisine (e.g., if you’re in Maine, go for the fresh seafood), incorporate sustainable, plant-based options, and choose a signature dish to feature on Instagram.
Your menu doesn’t need to be extensive to be tasty. Analyze which dishes are most profitable and go from there. However, be sure to include choices for people with dietary restrictions. If this is trickier with a smaller menu, combine dishes. A meal that’s both vegan and gluten-free serves a wider audience. Since people with dietary restrictions have fewer options, they’re more likely to become repeat customers.
Booking a short-term, spur-of-the-moment trip makes more sense domestically than it does internationally, and these types of trips are even easier for travelers if they can bring their pets. There’s overlap here. Take advantage of it by offering pet-friendly rooms and amenities. Dog treats and complimentary poop bags are always appreciated. Designate a specific relief area where you would like those poop bags to be used. If you have the staff, you could even offer a doggy daycare so that the pooch is well taken care of while their person explores any attractions where they can’t come along.
Domestic travelers may be more price conscious than international ones (it costs less to throw your bags in the car than purchase airline tickets to Europe). However, you don’t have to slash your rates to attract visitors. In fact, this undermines your credibility. Instead, demonstrate that your price is good value for what you’re offering.
Quality amenities and perks such as free parking indicate value. Loyalty programs can work here as well by rewarding loyal guests with reduced rates or added extras. Offer smaller, immediate benefits like a free drink for instant gratification that goes a long way with guests without costing your business too much.
Consider investing in a revenue management system (RMS) to ensure you’re offering the best prices without leaving money on the table. This automated software analyzes factors such as demand, seasonality, market rates, and more to calculate the most effective pricing recommendations.
Domestic travelers are reserving their vacations a week and a half closer to arrival than they were before the pandemic, which amounts to a thirty percent decrease in lead time. Make it easy to book a room last minute by offering direct online bookings on your website. A mobile-friendly website and booking engine is especially important for last-minute bookers. If a guest has already driven way too many miles on their road trip, it’s much easier to whip out their phone than dig in the trunk for their laptop.
Flexible cancellation or rescheduling policies are reassuring to guests in case something, aka Covid, happens. Flexible policies help secure more bookings, and canceled reservations are less impactful when last-minute booking deals bring in replacement guests! It’s easier for guests to reschedule if they live close by (no flights to rebook), so being flexible is key to winning domestic business.
Domestic tourism is going strong, and it’s well worth it for lodging operators to target their marketing and amenities to these travelers. Remember, their proximity makes them likelier to become repeat guests who spend more at your property. By tailoring your offerings and using these tips to exceed expectations for domestic guests, you can bring these travelers in the door, not just once but again and again.