promotion shortly after Marriott unveiled its new rewards program in what appears to be a direct response to Marriott ’ s contention that its average members will earn 20 % more points than they had before the consolidation .

NOT ALL OWNERS ARE SOLD ON THE VALUE OF LOYALTY PROGRAMS Loyalty members can represent half of any hotel ’ s room nights , and members typically book through the brands ’ CRS , which cuts the cost of each reservation . But those points they earn also represent a cost for owners .

In one camp are loyalty fanatics like Sam Patel , a partner in Kisna Hospitality , owner of several Choice properties in the Knoxville , Tennessee , market . “ Loyalty is huge ,” he says . “ It ’ s one of the biggest factors for us , along with location , cost to build and the name .” He says more than half of his hotels ’ customers are loyalty members .

Sage Hospitality , with a portfolio that includes Marriott , Hyatt and Hilton branded properties along with unaffiliated hotels , takes a different view , focusing more on distribution and marketing reach when choosing a flag . Loyalty is still a goal , but “ our perspective of

loyalty has shifted more from points and discounts to experiential opportunities . We see the future guest looking for value-adds and insider access rather than stockpiling points for discounted stays ,” says Ken Widmaier , Sage ’ s chief operating officer .

Marriott ’ s combined program “ opened us up to more redemptions , but at the same time more exposure ,” Widmaier says . “ So smart revenue management will continue to be the best way to leverage the loyalty programs responsibly .”

EXPERIENCES AND PARTNER BENEFITS GAIN POPULARITY VERSUS ROOM NIGHTS Tickets to major events , VIP access , exclusive vacation packages and other rewards appeal to younger travelers and offer a way to stand out . “ We ’ re taking a hard look at our redemption offerings ,” Wyndham ’ s Hamlisch says . “ While our free night structure has proven a tremendous success with our most frequent guests , we want to be sure that we ’ re continuing to engage those members with lower points balances .”

A popular feature of Choice Privileges is Your Extras , a mix of instant gratification and points .

“ IN TODAY ’ S AGE , SCALE DOES REALLY MATTER .”

DAVID FLUECK , SENIOR VICE PRESIDENT OF GLOBAL LOYALTY , MARRIOTT INTERNATIONAL

Members receive rewards when they check in — a US $ 5 Starbucks card , an Uber or Amazon credit , or additional points . Global Hotel Alliance ’ s Discovery members earn credit toward immersive local experiences instead of points .

“ If you look at the programs today and how they stack up , it becomes kind of vanilla ,” IHG ’ s Canty says . “ We think the most important thing is to start thinking about what are the most meaningful benefits , and to whom . We have to start looking at ways our program evolved and how it can be transformative and relevant to the guest of tomorrow .”

THERE IS ROOM TO IMPROVE THE REDEMPTION EXPERIENCE For guests , hotel stay rewards aren ’ t always rewarding . “ Too often , properties place rewards guests in the lowest tiers of accommodations , and don ’ t ‘ reward ’ the loyalty guest the same way as if they were a paying guest ,” says Andy Abramson , CEO of Comunicano , a marketing communications agency . “ The brand reputational integrity capital is at risk if the properties don ’ t deliver on the brand promise for the rewardsredeeming guest the same way they do the high-paying , rewards-earning guest .”

November 2018 hotelsmag . com 11