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
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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 .
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“ 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 .”
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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 .” |
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November 2018 hotelsmag . com 11 |