Why Should Hotels Have Customer Loyalty Programs?

Apart from the findings of  the Wunderman study which has made it clear that more than 75%  of customers prefer, and usually stay with, the brand that cares for them, catering to their personalized requirements, I think that a good hotel marketing strategy should not be regarding anything as more important than a rewards program.


So, what is a hotel rewards program essentially about? Is it just a hands-on approach in thanking your loyal clients ─ with a view to convincing them to book in your hotel time and again?


The answers to these questions, however, diverge, depending upon perspective as well as the responder’s angle of vision. However, there is a growing consensus amongst travel industry experts that reward programs for hotels can bring to the hotel more bookings from the same guest as well as more new guests thanks to the satisfied guest’s recommendations and positive testimonials. Whatever the size or shape of the hotel, we’re unquestionably living in a business environment controlled by customers’ word of mouth!


Marketers, however, usually put the issue across in their own way, making it clear that a hotel that puts in place such customer rewards as reward apps, or a loyalty point system, is not only getting a lot of benefits in terms of revenues today, but is also investing in both medium and long term.


According to detractors who usually find fault with the hospitality industry’s rising trend of loyalty marketing, operating customer loyalty programs can cost a hotel something in the range of 1 to 5 percent of room revenue. Yet, the findings of a recent study by the Centre for Hospitality Research entirely contest this argument, revealing that a hotel’s loyalty program usually raises the frequency of guest stays by more than 45% on average, and explaining that loyalty programs typically boost bedroom revenue by over 55%.


Now, whether you’re a marketer or business owner, we all have to answer the question whether the hotel that does not set up a viable customer loyalty program is increasingly becoming part of the past?!

By |2018-11-01T07:49:08+00:00October 31st, 2018|

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