As the holiday season approaches, gift cards are often seen as the perfect present for loved ones.
But for local restaurants and hotels, they are much more than just a convenient gift—they are a strategic tool that can significantly boost business.
From increasing cash flow to fostering long-term loyalty, gift cards are a game-changer for the hospitality sector.
In my own hotels, gift cards have been a key part of how we operate. I’ve seen firsthand how they help upsell room upgrades, bring new customers through the door, and even simplify giving back to our community.
For example, I frequently donate gift cards to local charity events—it’s so easy to grab one of our beautifully designed cards and know it’ll bring someone joy while also introducing them to what we offer.
Let us explore why gift cards are a win-win for businesses and customers alike.
1. Instant Revenue Boost
One of the most immediate advantages of selling gift cards is the upfront cash flow they generate. During the busy festive period, this extra income can be reinvested into the business.
For quieter months, it provides a much-needed financial cushion. Gift cards essentially act as an advance payment for future services, allowing businesses to maintain steady cash flow throughout the year.
2. Attracting New Customers
Gift cards often introduce businesses to new customers who might not have visited otherwise. When someone gifts a card to a friend or family member, they are essentially giving a trusted recommendation.
I’ve seen this play out countless times—guests who come in because they’ve been gifted a stay or meal often fall in love with the experience and return on their own. In fact, studies show that 59% of gift card recipients visit a business for the first time after receiving one.
3. Higher Spending Per Visit
One of the most compelling benefits is that gift card recipients often spend more than the card’s value. On average, 61% of customers overspend, with an additional expenditure of around £25-£30. At my hotels, we’ve found this to be particularly true with guests booking stays—they often upgrade their rooms or add experiences like spa packages or dining.
4. Marketing and Brand Visibility
Gift cards are more than just a product—they’re a powerful marketing tool. Each card, whether physical or digital, serves as a mini billboard for your business, keeping your logo and brand at the forefront for both the buyer and the recipient.
In my experience, beautifully designed gift cards not only elevate our brand but also look fantastic when showcased on social media. Digital gift cards take it even further, making it effortless for customers to share our brand online and amplify our reach.
5. Supporting Community and Charity
Gift cards are also a fantastic way to give back. I often donate gift cards to local charity raffles or events, and they’re always well-received.
It is an easy and meaningful way to support the community while introducing new people to our business. This dual benefit makes them a brilliant tool for strengthening community ties.
6. Easy Upselling Opportunities
Gift cards naturally lend themselves to upselling. For example, someone redeeming a gift card for a room stay might be tempted to upgrade or book an additional night. Restaurant guests often add premium drinks or desserts.
At my hotels, gift cards have opened up opportunities to introduce guests to other facilities, like our private dining spaces or our event facilities.
You are also able to create competitions or offer incentives to attract more customers, such as “Buy a £50 gift card, get a £10 bonus card for yourself.” These promotions encourage higher spending and bring in more customers.
For local restaurants and hotels, gift cards are more than just a product—they’re a strategy. They provide immediate revenue, attract new customers, and keep foot traffic steady even during quieter months.
But beyond the financial benefits, gift cards are about creating connections: between businesses and customers, between businesses and their communities, and between loved ones sharing a thoughtful gift.
This holiday season and beyond, make gift cards a cornerstone of your strategy. They’re not just a win for your business—they’re a win for everyone.
If you love hospitality and are eager to improve our industry, then come along to our next conference The Art of Hospitality that talks all things hospitality, hosted in January! Learn more and get your tickets here
https://www.tickettailor.com/events/thehospitalityheroltd/1247485?
