A restoration in hotel loyalty
Blueprint for reinventing loyalty
When hotel loyalty is viewed from a full-circle standpoint, companies can think about building it in the same way that construction workers build a home. Just as a blueprint defines the type of home to be built, hotel executives can create a blueprint for the kind of loyalty they want to create.
Reinventing hotel loyalty
In this report, we explore how to increase the effectiveness of loyalty programs. Our research points to two over-arching and compelling conclusions:
- The best-case scenario is that hotel loyalty programs as they are constituted today have either little or no impact on travelers’ purchase decisions, and, worst case, these programs drive undesirable brand-switching behavior.
- Hotel brands and owners that choose to instead build differentiated loyalty programs and a customer experience that anticipates and integrates priority customers’ personalized needs have the potential to capture incremental market share, as indicated by these facts.
Participants in our survey were active travelers, having stayed at a hotel in the past 12 months. We identified the following customer segments from this group.
- Proficient traveler
- Moderate traveler
- Mature Leisure traveler
- Newbie traveler