Returning Guests: How Experienced Hosts Generate 70% of Their Profit

Acquiring a new guest costs five times more than retaining an existing one. This fundamental marketing principle is especially true in tourism, where commissions for online travel agencies (OTAs) like Booking.com and Airbnb have reached 15-18% per booking.

Experienced hosts in destinations like Dubrovnik, Hvar, and Rovinj have known this for a long time. Their business model doesn't rely solely on visibility on major platforms but on building a base of loyal, returning guests who book directly year after year.

This approach not only significantly increases net profit but also creates a stable, predictable income stream independent of seasonal fluctuations and changes in OTA platform algorithms.

— 01How to Legally Collect Guest Email Addresses

The most effective way to legally collect guest email addresses, in compliance with GDPR, is during the check-in process. Guests can be offered a digital form for registration in the eVisitor system, which includes an optional field for email entry along with clear consent text for receiving occasional offers.

According to current regulations, registering a guest in the eVisitor system requires personal data such as first and last name, place, country and date of birth, citizenship, type and number of identification document, residence and address, gender, and the date and time of arrival and departure. An email address is not among them. This is precisely why it's crucial that entering an email is presented as an option, not an obligation.

The best practice involves using a digital check-in form where the guest enters their own data. Next to the mandatory fields, add a checkbox with clear text:

☐ I would like to receive special offers and discounts for future stays directly from {Your Property Name}. We will not share your email address with third parties.

This approach is transparent, GDPR-compliant, and gives the guest control. Automated guest platforms, like BookiApp, often have such digital check-in processes integrated, which automatically store consent records.

— 02A System for Return-Guest Discounts and Personalized Offers

An effective system for encouraging repeat bookings is based on a direct discount of 10-15% for the next stay. This discount compensates for the OTA commission (which in Croatia is 15-18%) and gives the guest a tangible financial benefit, thereby strengthening loyalty and encouraging direct booking.

The math is simple. For a €1,000 booking through Booking.com, a host pays a commission of €150-€180. If you offer the same guest a direct booking with a 10% discount (€100), the guest saves money, and your profit increases by €50-€80.

When to offer the discount?

• At checkout: Verbally or with a card containing a personalized code.
• Thank-you email: A week after their stay, send an email thanking them for their visit and including an offer for the following year.

Personalizing the offer is key. Instead of a generic message, refer to their stay: "Dear {Guest Last Name} family, thank you for staying at our apartment in Split. We hope you enjoyed it. As a thank you, we're offering you a 15% discount on a direct booking for summer 2027 with the code RETURN15."

— 03The Personalized Welcome: Details That Build Loyalty

A personalized welcome for a returning guest must reference their previous stay. Instead of a generic letter, mention a specific detail that shows you remember them as individuals, not just a reservation number. This is the difference between a good host and an outstanding one.

This requires maintaining a simple guest database (CRM), even in a basic Excel spreadsheet. Note the small details:

• Preferences: "They like red wine, asked for extra pillows, travel with a small child."
• Reason for travel: "They were celebrating their wedding anniversary, came for the Ultra Europe festival."
• Interests: "They asked for recommendations for hiking on Biokovo, they love hidden beaches."

Examples of a personalized welcome for a second stay:

• For wine lovers: "Welcome back! We've left you a bottle of the same Pošip you enjoyed last year."
• For families: "We know your daughter loves to draw, so we've prepared a new set of crayons and paper for her."
• For foodies: "The restaurant you praised so much last time, {Restaurant Name}, has a new menu. We've booked a table for you for tomorrow at 8:00 PM, we hope that works for you."

These small gestures don't cost much, but their value in the guest's eyes is immeasurable. They confirm that the guest made the right choice by returning to your property.

— 04When and How to Use Christmas and Birthday Messages

A Christmas message should be sent between December 15th and 20th, focusing on warm wishes rather than aggressive sales. A birthday offer, on the other hand, should be sent a week before the birthday and must include a tangible benefit, like an extra discount or a complimentary service.

Christmas Message: The goal is to maintain the relationship. The message should be short, visually appealing (e.g., a photo of your decorated town or apartment), and personalized.

• Example: "Dear {Guest Last Name} family, we wish you a Merry Christmas and all the best in the New Year. We hope to see you again next summer! Warm regards from sunny Trogir, Your {Apartment Name} Team."
• Channel: Email is the best choice.

Birthday Offer: The date of birth is a mandatory piece of information for eVisitor registration. If you wish to use this data for marketing purposes, such as sending a birthday offer, you must obtain separate, explicit consent from the guest in accordance with GDPR. This consent must be voluntary and clearly separate from the mandatory eVisitor registration.

• Example: "Dear {Guest Name}, happy birthday! Treat yourself to a trip—enjoy an additional 5% discount on your next booking with us. This offer is valid for bookings made within the next 30 days."
• Important: Emphasize that this discount is in addition to their existing return-guest discount to make the offer more attractive.

Communication frequency is key. Three to four emails a year are sufficient: a thank-you email after the stay, a Christmas card, a possible early-bird offer in January, and a birthday message. Anything more can be considered spam.

— 05The Backup Plan: What to Do When OTAs Tighten Their Rules

Given that OTA platforms like Booking.com and Airbnb are increasingly restricting direct communication before arrival, it is crucial to secure the guest's contact information during their stay. The most reliable method is through a digital eVisitor registration form that the guest fills out upon arrival.

Platforms mask email addresses and phone numbers in their internal communication to prevent direct arrangements. Attempting to share contact information before the stay is completed can result in penalties or even profile suspension.

Strategies for collecting contact information during the stay:

1. 1 Digital Check-in: As mentioned, this is the most elegant and GDPR-compliant method.
2. 2 Wi-Fi Login Page: Configure your Wi-Fi network to require an email address for access (with an option to skip).
3. 3 Physical Guest Book: Although traditional, it still works. Leave an elegant guest book with a column for email addresses.
4. 4 QR Code in the Apartment: Place a QR code in a visible spot that leads to a simple online form for joining your "VIP club" or newsletter for special offers. According to research by the portal Cimerfraj.hr, direct bookings are the most profitable business segment for private accommodation providers.^[1]

Building your own database protects you from future policy changes on major platforms and gives you autonomy in your business.

Case Study: "Sunce" Apartments, Hvar

A family running three apartments in Hvar implemented a simple system to encourage returning guests:

1. 5 Check-in: Upon arrival, guests check themselves in using a tablet. The eVisitor form includes an optional checkbox for receiving offers, which about 70% of guests tick.
2. 6 Automated Email: 3 days after checkout, the system automatically sends a thank-you email with a 15% discount code for the next season. The code is personalized, e.g., IVANOVIC15.
3. 7 Annual Contact: In mid-December, all guests on the list receive a personalized Christmas card with a photo of Hvar in winter. In January, they receive a reminder about the early-bird discount.

The Result: After two seasons, 30% of their bookings come directly from returning guests or through referrals, saving them over €5,000 in commissions.

Investing in relationships with returning guests is not an expense; it's the most profitable investment you can make. In a market dominated by large players, a personal touch and direct communication become the strongest assets for small-scale hosts. Every satisfied guest who returns is not just a saved commission but also a confirmation of your quality of work and the best possible advertisement.