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guests , “ giving them a reason to get excited and create fun and friendly competition in the workplace .”
There are , however , observers less positive about the benefits of loyalty programs to owners . Bjorn Hanson , adjunct professor at the Jonathan M . Tisch Center of Hospitality at New York University , said the programs have become more favorable for loyalty program members because of changes like eliminating most blackout dates ; they are , thusly , costlier to owners . Some owners complain , he said , that because they bear the cost
WITH THE CHALLENGES INDEPENDENT HOTELS FACE IN GETTING REACH AND EXPOSURE , I PREFER BRINGS THEM SCALE AND CREDIBILITY
– LORI STRASBERG , SVP OF
MARKETING , PREFERRED
HOTELS & RESORTS
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of loyalty programs , and the brands receive management or royalty fees based on revenue , the loyalty programs have become more advantageous to the brands .
In addition , said Hanson , reservations made through most OTAs do not qualify for brand loyalty points , but his experience is that when guests check in and ask to be registered for points , a large percentage of the time , points are earned . This is a problem , he said , because the loyalty program did not generate the reservation , the OTA commission can be high and then there is the loyalty program cost as well .
Meanwhile , OTAs have in recent times launched their own loyalty programs , adding competition and making the booking experience even more crowded and , sometimes , ambiguous . Consider Expedia , which launched One Key in the U . S . in July 2023 . The program has a single rewards currency called OneKeyCash , which members earn when they travel and can use on future bookings .
A judicious Peter Kern , vice chairman and former CEO of Expedia Group , speaking during the Americas Lodging Investment Summit , said the program was actually beneficial to hotels and their loyalty programs .
“ We reward them to book through us , but we give them money to stay at your hotel ,” he said , offering that if that customer booked through Expedia but became , for example , a loyal member of
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Marriott Bonvoy , thereafter , “ well , there you go .”
BEYOND THE STAY Despite potential issues like those cited by Hanson , brands clearly believe loyalty is key and are investing heavily to make programs about more than just free room nights , through partnerships and exclusive experiences .
Hyatt recently announced , “ Be More Here ,” a brand platform that , according to Amy
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‘ BE MORE HERE ’ BRINGS TO LIFE HOW GUESTS AND MEMBERS CAN HAVE MORE MEANINGFUL EXPERIENCES AND CELEBRATES HYATT ’ S GROWING GLOBAL FOOTPRINT OF BRANDS AND EXPERIENCES
– AMY WEINBERG , SVP OF
GLOBAL BRANDS , LOYALTY AND
INSIGHTS , HYATT HOTELS CORP .
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Weinberg , SVP of global brands , loyalty and insights , “ brings to life how guests and members can have more meaningful experiences and celebrates Hyatt ’ s growing global footprint of brands and experiences , including a list of offerings curated to support travelers ’ individual well-being journeys .”
Like the airlines , members are increasingly able to earn points and rewards through affiliated credit cards . Marketing Marriott ’ s co-branded credit cards , said Povinelli , plays a significant role in driving engagement and loyalty , “ and our cardholders represent some of our most engaged and loyal members .”
Since the launch of its revamped loyalty program , said Klebanov , “ we have increased the number of IHG One Rewards members who are also IHG credit card members to help drive incremental value within our loyalty program .”
In between trips , said Hilton ’ s Chick , a suite of Hilton Honors American Express credit cards and loyalty partners , such as Amazon , Enterprise , Live Nation and Lyft , help to power members ’ future stays , “ and are a great way to attract new members , thus benefiting our commercial engine .”
There ’ s no question that the programs are popular with consumers , with recent research showing Marriott at 192 million members , Hilton at 173 million and Wyndham at 105 million .
If there is power in numbers , there is power in loyalty .
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16 hotelsmag . com Mar / Apr 2024 |