Loyalty Programs And What They Do For Hotels

8 Nov

If you travel a lot and check into many different hotels, then you would probably have heard about hotel loyalty programs. For frequent travelers, it would be a wise decision to join a hotel’s loyalty program especially if they keep on returning to that particular place where the hotel is located. This is because through loyalty programs, they would be given points that would lead to benefits. Sometimes, these points could even reward a member with free accommodation. Loyalty programs are not only exclusive to a single hotel. If a hotel belongs to a bigger entity, a hotel chain perhaps, then it is more likely that your hotel’s loyalty program would extend to the sister hotels as well.

Most people are aware of what loyalty programs do to a member, but what about hotels? What does a loyalty program do for the hotel?

To answer this question, think of this situation. You own a number of hotels in Tel Aviv but in order for these hotels to generate new businesses and acquire more guests, you would have to heavily invest on marketing and advertising. But the costs for media campaigns, SEO, and a spot on travel agencies recommendations are obviously too much. The wisest thing to do would have to be building good relationships with previous clients so that they return to you when the time comes. That is where loyalty programs come in. Through loyalty programs, a hotel may be able to win the favor of a guest by enticing him or her with the benefits or perks of becoming a member. For a guest who is also a frequent traveler and visitor, this would be hard to pass.

For those who still do not know how loyalty programs work, try thinking of frequent flyer programs because they work almost the same. When a guest becomes a member, then every time he makes a purchase with the hotel, he would be awarded with points. When he earns more points, the perks he can redeem grow bigger. Also, being a member has its own perks.

To become even more effective, a loyalty program would have to be attractive to all guests and not just those who can afford more.