SPECIAL REPORT
gratification , collecting points is difficult to monitor ,” says Frances Kiradjian , founder and chair of the Boutique Lodging and Lifestyle Association . “ It ’ s hard to achieve a level where you can obtain any benefit from it .”
To some younger travelers , points are viewed as an annoyance . “ Millennials want instant gratification ,” she says . “ They don ’ t want to have to collect points like their parents did .”
Those with complex points-based systems are seeking to deliver instant rewards and relevant perks beyond a hotel stay . Most programs tout “ members-only pricing ” and free WiFi . A few are going beyond that .
Marriott Rewards introduced “ cash plus points ” in March , which helps guests who haven ’ t quite accumulated enough points for a stay . Hilton Worldwide ’ s HHonors app allows guests to select a room before check-in , something no other brand currently offers . InterContinental Hotels Group ’ s IHG Rewards has partnered with Amazon to give members complimentary Kindle books .
In December , La Quinta Inns & Suites announced that La Quinta Returns members who hold Visa credit cards could redeem points for purchases like groceries , coffee and restaurant meals at more than a million retail and online locations in the U . S .
Two luxury brands merged their loyalty programs in late 2016 . Taj Hotels Resorts & Palaces paired up with Shangri-La Hotels & Resorts in Warmer Welcomes , to launch in March . Status matching for Taj ’ s Inner Circle and Shangri-La ’ s Golden Circle members is planned , as are seamless redemptions in 200 hotels across 27 countries .
“ HOSPITALITY IS ALWAYS EVOLVING . LOYALTY IS ALWAYS EVOLVING . WE FELT THE TIME WAS RIGHT FOR US TO CREATE A NEW ENERGY , BRAND , AND SPIRIT OF CARE AROUND WHAT WE WERE DOING .”
— JEFF ZIDELL , SENIOR VICE PRESIDENT , HYATT HOTELS
‘ SURPRISE AND DELIGHT ’ Points-based systems won ’ t go away , but Wyndham ’ s Brodsky says “ subtle devaluation ” will continue . “ We ’ re still seeing programs get more complicated and continue to devalue ,” he says .
He bemoans the attention bestowed on “ whales ,” or top-tier members . “ This came from the airlines . They create fake fees that never existed before and then waive them for their elite members . It ’ s not treating the everyday traveler well .”
Kelly , The Points Guy , says navigating the points-based programs can frustrate consumers . But he ’ s more optimistic about hotel programs , which have more tools to enhance the guest experience , such as upgrades and amenities , than airlines ’. “ Hotel execs still believe in surprise and delight ,” he says . “ Even if you ’ re not a top-tier guest .”
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president of loyalty and partnerships , including those with the Grammy Awards and LiveNation concerts . Delivering the right mix of personalized experiences and access engenders loyalty , he says .
Those experiences will change as members ’ desires change . “ Travelers are more loyal than ever . But what they are loyal to is evolving rapidly ,” he says . “ Folks are loyal to the brands they believe in , especially younger travelers who tend to be cause-oriented rather than value-based travelers .”
Brian Kelly of The Points Guy says that with Airbnb entering the tour space , hotels have room to improve . “ Concierges and overpriced tours and car transfers , it ’ s outdated .” Instead , he says , hotels should focus on how to “ handcraft ” guests ’ experiences before they arrive , especially in the luxury market where excursions can seem transactional instead of meaningful .
“ People want both luxury and affordability ,” he says . “ So hotels have to think about how to customize a guest ’ s stay in advance and get people really excited about what they are going to do .”
32 hotelsmag . com January / February 2017