Best Practices Customer satisfaction Guest Satisfaction

Loyalty Pays: Benefits for Hotels Offering Loyalty Programs

Debiprasad Sarangi
Debiprasad Sarangi

Benefits for Hotels Offering Loyalty ProgramsEveryone likes to be recognized for their actions every now and then, whether it’s in the workplace, at home or from companies you frequently patronize. Businesses have taken note by offering a variety of rewards programs all across the board. The program may be something as simple as allowing you to accrue points to receive upgrades or freebies, but it is a popular tactic for customer retention nonetheless.

Loyalty programs don’t bring significant gains to all types of industries, but the hospitality industry definitely benefits from the tactic. Guests who engage in loyalty programs at a particular property will increase the number of room-nights by 50 percent, according to a study done by Cornell’s School of Hotel Administration. This significant increase in customer retention and revenue gain shows that loyalty programs really do benefit the hotel. When there is an incentive to work toward, guests will continue to visit your hotel in order to receive the promised benefit. It is natural to choose the path with the most benefits.

Loyalty programs can go above and beyond offering free nights or a room upgrade, of course. There are many types of loyalty programs that can be offered and utilized to improve the customer’s experience. Some programs allow guests to trade points for gift certificates to stores, concerts or events, giving an option outside of the expected in-house perk. Properties can use data collected through loyalty programs to tailor the experience to the guest’s tastes. It adds a personalized touch to make guests feel valued.

No matter what type of rewards program your property chooses to implement, be sure that both the hotel and the guests are getting something from the exchange. While it is beneficial to offer rewards to all loyal customers, there should be a tiered approach that allocates the best perks or reinvestments to the most profitable and most loyal customers.

For more ideas to win your guests’ hearts, click here.