How to create an effective hotel loyalty program

So, what are the benefits of creating a hotel loyalty program?

A selling point for first-time guests

The fact that a hotel offers a loyalty program may influence new guests to visit your premises as the idea of rewards can be persuasive to those who travel often - leading to them becoming repeat guests. Equally, if you own a chain of hotels, you can increase revenue across your whole company by having your loyalty scheme be inclusive of all your branches.

Improved hotel image

Having a hotel loyalty program can improve your overall hotel image by showing that you value the needs and requirements of your guests and that you seek to reward them for the time and money spent at your hotel. 

Increased customer loyalty

People find comfort in familiarity. Through a hotel loyalty program, guests will be more inclined to book at your hotel over and over, establishing a personal relationship with your team and the guest over time.

Data from the Harvard Business Review found that increasing customer retention rates by 5% increased profits from 25% to 95%, so it’s absolutely worth it if you want to reduce customer loss!

Good reviews, good reputation

Happy, returning guests will become brand advocates for your hotel, spreading positive messages either online or via word of mouth. Not only will your guests be satisfied with their experience, but will also influence others to visit your hotel.

A wider pool of customers

Depending on the type of hotel loyalty program you implement, and the features and amenities you include, you can widen your customer base and in turn increase revenue. A great example of this is if you choose to include an EV charging scheme. 

Essentially, as business professionals are statistically the most likely to use EVs due to workplace EV schemes, they will benefit the most from a loyalty program. This will bring this pool of customers to your hotel that otherwise may not have selected you.

What types of hotel loyalty programs are there?

To achieve the benefits outlined above, the type of hotel loyalty program you select should be optional, easy to use and understand, and worth the guests’ effort and time. The three main types of hotel loyalty programs are as follows;

1. Partnership rewards

A traditional kind of hotel loyalty program, a partnership-focused loyalty program will reward the guest with various features once they reach a benchmark you have set - such as the number of visits.

2. Points-based system

Logged on individual guest profiles, a points-based system tracks how many points a guest has accumulated over time from various actions. The points can then be traded in for rewards, such as free stays and electric vehicle charging.

3. Personalised rewards

Personalised rewards can be offered as and when you and your team see fit and is entirely customisable to the guest. This could be offering free items, samples, or hampers to loyal guests.

What features can your hotel loyalty program include?

The features and amenities you choose to include in your hotel loyalty program entirely depend on what you believe your guests would be interested in, and which features you’re willing to include in the scheme.

EV charging scheme

As mentioned above, an EV charging scheme is a great idea to include in your hotel loyalty program. Whether it’s reduced charge rates for guests or even complimentary charging around the clock, visitors are likely to forgo your competitors in preference of such a deal.

Parking

In hand with EV charging, guests will find it convenient should you include car space reservations or parking discounts to remove the headache of trying to find a spot.

Meal benefits

Your hotel loyalty program may include food and beverage benefits, such as membership cards that permit discounts across your company and participating restaurants. Via the 2016 Bond Loyalty Report, it was found that 81% of consumers are more likely to continue doing business with brands that offer loyalty programs.

Meeting room deals

Business professionals staying at your hotel will often be in need of conference spaces for meetings. As a way to thank these customers for their patronage, points can be earned, stacking up to trade in for discounted deals.

Extended services

There are endless possibilities when it comes to the services you include in your hotel loyalty program. Other examples include the first pick of rooms and reservations for on-site amenities, free samples upon arrival, and 24/7 room service. 

Loyalty programs are a great solution to retaining your ideal type of guests and can help boost your revenue and profits across your company. While there are multiple types of hotel loyalty programs and schemes to choose from, you should focus on your customers’ needs and requirements to leave them happy and willing to return - including features that will motivate them to return. For more information on popular hotel trends you should consider implementing at your hotel, see below.