6
CLH DIGITAL
Issue 256
How Employee Recognition And Customer Reward Go Hand In Hand By Danni Rush, COO of Virgin Incentives, Virgin Experience Days and Virgin Experience Gifts (www.virginincentives.com) In the UK, upcoming tax changes are putting pressure on the hospitality industry, with over 70% of businesses considering staff reductions. Rising employer National Insurance contributions and reduced rates relief are driving up operational costs, forcing many businesses to make difficult staffing decisions. Adding to this, the exceptionally high turnover rates in 2023 are only exacerbating the issue, with hotels seeing a 105% turnover, while restaurants and food services hit 92.98%.
Once objectives are established, the next step is understanding what truly resonates with employees and customers. Employee surveys and customer behaviour analysis can reveal what types of rewards are most valued—whether it's financial bonuses, discounts, or experiential rewards. Another key factor to consider is personalisation. A one-size-fits-all approach rarely delivers the best results. At Virgin Incentives, we regularly survey our team to understand their preferences, ensuring that rewards are meaningful and appreciated. This tailored approach extends to our clients' customers as well—offering gift cards, experiences, or flexible incentives that align with individual preferences. To ensure long-term success, businesses should conduct regular performance reviews of their recognition programmes. If the strategies aren’t achieving their intended results, adjustments should be made—whether that means refining the types of rewards offered or enhancing communication around the programme.
At the same time, the cost-of-living crisis is making UK consumers more price-conscious, causing a shift in spending habits and a decline in traditional brand loyalty. Research shows that membership in dining-related loyalty programmes fell sharply from 49% to 25% in 2023, signaling a significant drop in customer engagement.
Ultimately, recognition—whether for employees or customers—should be about making people feel valued. A simple shoutout in a team meeting, a personal note from leadership, an annual bonus, or a thoughtful gift can make a lasting impact. Similarly, an exclusive discount, a birthday freebie, or a surprise reward can strengthen customer loyalty. When people feel appreciated, their connection to the brand deepens, creating positive ripple effects for the business.
Clearly, hospitality businesses need to rethink their strategies to strengthen both employee and customer retention. Employee recognition and customer rewards are no longer optional—they are essential to business success. It’s known across industries that a strong sense of loyalty between employees, customers, and the business has a direct impact on the bottom line. When employees feel valued through recognition initiatives, they are more engaged and deliver a better service, which enhances the overall guest experience. On the customer side, a well-designed rewards programme fosters repeat business and brand loyalty. But how can businesses implement these strategies effectively?
Hospitality businesses are increasingly recognising that both employee and customer reward and recognition programmes are essential for long-term success. A well-structured employee rewards programme fosters a motivated workforce, with employees who receive monthly recognition proven to be 45% more engaged. This in turn enhances the guest experience and strengthens brand reputation.
WHERE TO START WITH REWARD AND RECOGNITION The key to successful recognition programmes is setting clear objectives. For employees, the focus is often on reducing turnover, improving performance, and boosting morale, whereas for customers, the goal is to increase repeat visits and drive higher spending.
A UNIFIED APPROACH FOR SUCCESS
These benefits naturally flow into customer-facing initiatives, allowing businesses to provide exceptional service, personalised perks, and competitive pricing—all of which drive both customer satisfaction and repeat business. By aligning employee and customer recognition strategies, hospitality brands create a seamless ecosystem where engagement at all levels reinforces business growth. In an industry built on service and experience, making both employees and customers feel valued ensures brands are a cut above the rest, giving them a competitive advantage in a highly saturated sector.
Bristol Hoteliers Celebrate Magnificent Seventh Awards Evening The latest glittering gala to recognise and honour Bristol’s hospitality heroes has been hailed as the biggest and best yet by organisers.
During his opening speech on the evening, he said: “One thing is certain; we are hospitality, and we are strong, resilient and ready to tackle whatever comes our way.”
The seventh ‘Night of the Stars’ event, organised by Bristol Hoteliers Association (BHA), truly was ‘magnificent’ as more than 450 people came together to celebrate teams and individuals who have gone above and beyond over the past year in support of their sector.
He added: “The positivity in the room during the Night of the Stars event was heart-warming, proving once again that there are many, many, people who remain completely committed to the work that they do.
The event, which took place at Ashton Gate Stadium – home of Bristol City FC and Bristol Bears Rugby Club – also raised an unprecedented £6,015 for the Brain Tumour Support charity through a raffle. BHA Chair Raphael Herzog said: “This was our biggest and best event ever. It was an amazing evening which will be remembered for some time, and it was an honour to be able to recognise and shine a light on the stars of Bristol’s hospitality businesses. “The past few years have been extremely challenging for the hospitality sector with little sign of significant improvement, given new challenges like the increases in employer National Insurance contributions and the minimum wage.”
“Based on the passion and dedication on display at the awards evening alone, there is plenty of cause for optimism for the future. “The BHA is extremely grateful to our sponsors because, without their generous support, which in itself is a morale-boosting vote of confidence in our sector, we would not be able to run this event. “We can’t thank them enough for enabling us to celebrate some of the people who make our businesses so special. “And, of course, I must extend huge congratulations to the winners and runners up on the night, and sincere gratitude for all that you do for our vibrant and exciting sector. “The seventh Night of the Stars was truly something special, and we’re going to have to do something extra special next year to top this one, but we will certainly try!”
The AVLA Licence – A Legal Requirement Television remains an essential service in every hotel, despite the rise of streaming platforms. It allows hoteliers to enhance guest experience and provide entertainment options of globally admired quality. This has a direct influence on the image and appreciation of the establishment. However, with the benefits of offering television come certain responsibilities, particularly respecting copyright laws. Hoteliers must ensure they have the necessary licences. Operating without them constitutes a legal infringement. The AVLA licence enables hotels, aparthotels, B&Bs and other similar establishments to lawfully offer access to TV channels containing audiovisual works (films, series, documentaries, cartoons and other shows) from
AVLA’s repertoire. It is for TVs in bedrooms and communal areas of the premises. The AVLA licence covers an immense catalogue of works and rights not covered by other licensors. By taking the AVLA licence, hotels are directly helping to maintain a vibrant audiovisual sector. The royalties collected serve to finance new content, as well as to sustain tens of thousands of creatives and companies involved in the process. Television in hotels means more than just an amenity; it is a vital component of the guest experience. By securing the necessary licenses, hoteliers can offer their guests a superior stay while upholding legal and ethical standards, ultimately protecting themselves from legal risks and fostering the UK’s world-class creative industries. To learn more about AVLA and to take the licence, visit: www.avla.uk