Lodgify
Industry

What is a Returning Guest?

Updated 2026-05-28

A returning guest, also known as a repeat guest, is a customer who has previously stayed at a specific vacation rental property and chooses to book it again for a subsequent trip. These guests are valuable assets for property managers as they represent a reliable source of revenue and have already demonstrated satisfaction with the accommodation.

Building a base of returning guests is a sign of a strong brand and a positive guest experience.

Join the Lodgify newsletter

Once a month, get free templates, expert tips for hosts, industry news, webinar invitations, and more.

How it works

Hosts cultivate returning guests by first delivering an exceptional stay. After departure, they maintain a connection through strategic post-stay communication), often including an exclusive offer for a future direct booking.

Smart hosts use a system to track guest history, enabling personalization for any subsequent stays. For example, a simple welcome-back note or a small gift acknowledging their loyalty can reinforce the guest's decision to return and strengthen the relationship.

Why it matters

Returning guests are fundamental to the long-term financial health of a vacation rental business. They significantly lower customer acquisition costs, as retaining an existing guest is more cost-effective than marketing to find a new one.

Their repeat business creates a more predictable occupancy rate and revenue stream, especially during shoulder or off-peak seasons. Furthermore, satisfied repeat guests often become brand advocates, generating powerful word-of-mouth referrals and positive online reviews.

Examples

  • A family that enjoyed a summer stay at a beach house rental receives an email in the fall with a 10% 'early bird' discount for the next summer, prompting them to book the same property again.
  • A business traveler who frequently visits a city consistently books the same downtown apartment rental. The host, recognizing the repeat booking, ensures a bottle of the guest's favorite local coffee is waiting upon arrival.
  • A couple returns to a romantic cabin for their anniversary after an email newsletter from the host reminded them of their first stay. They use a special discount code for past guests to book directly on the property's website.
  • Following a ski trip, a group of friends receives a post-stay email thanking them for their visit and inviting them to join a loyalty program for exclusive access to future dates and discounts, encouraging them to make it an annual tradition.

Frequently asked questions

Why are returning guests important for a vacation rental business?+
Returning guests enhance profitability by reducing marketing spend, as retaining a guest is cheaper than acquiring a new one. They provide a more stable booking calendar, increase the guest's lifetime value, and are more likely to leave positive reviews and refer friends and family.
What is the best way to encourage guests to return?+
The most effective method is to provide an outstanding guest experience from start to finish. This should be followed by post-stay communication, such as an email campaign offering a small discount or special perk for their next direct booking. Personalization is key.
How can I track and manage communication with returning guests?+
Use a Property Management System (PMS) to maintain a database of all past guests. Platforms like Lodgify often include a unified inbox and CRM features, allowing you to easily identify previous visitors, tag them, and send targeted email campaigns with special offers to encourage them to book again.
Should I offer a special price to returning guests?+
Yes, offering a modest discount (e.g., 5-15%) is a common and effective strategy. It serves as a thank-you and an incentive. This is most beneficial when the guest books directly, as you save on OTA commission fees and can pass a portion of those savings on to your loyal guest.
Keep reading

Related terms

Marketing

Loyalty Program

A loyalty program in the vacation rental industry is a marketing strategy designed to incentivize repeat bookings and foster long-term relationships with…

Read
Marketing

Direct Booking

A reservation made directly with a property manager or host, bypassing third-party online travel agencies (OTAs) and their commissions.

Read
Marketing

Post-Stay Email

A post-stay email is an automated or manual message sent to guests after they have checked out of a vacation rental to solicit reviews and feedback.

Read
Marketing

Email Marketing

Email marketing is a direct marketing channel used to send promotional messages and newsletters to past, present, and potential guests.

Read
Stay in the loop

Join the Lodgify newsletter.

Once a month, get free templates, expert tips for hosts, industry news, webinar invitations, and more — straight to your inbox.

One email a month. Unsubscribe anytime.