loyalty programs
HVS Monday Musings: Rethinking Hotel Loyalty Programs in the Post-COVID World
Mandeep S. Lamba | June 27, 2022
By Mandeep S Lamba and Dipti Mohan Loyalty programs are not new in the airline and hotel industries, dating back to early 1980s when American Airlines introduced AAdvantage, one of the world’s first travel loyalty programs. Hotel chains quickly jumped on board, with Holiday Inn and Marriott being credited with the first hotel loyalty programs in 1983. Since then, loyalty programs have not only been an effective marketing tool for increasing customer loyalty, but also for increasing repeat customers and revenue for hotels. Loyalty program members account for three-fourths of hotel website bookings, according to research by Phocus...
Loyalty Fraud Puts Customer Accounts – and Relationships – at Risk
Robert McKay | June 17, 2021
By Robert McKay As COVID-19 travel restrictions are loosened in much of the world, many people are eager to visit friends and family or take a long-postponed vacation. Some of these individuals will be in for an unpleasant surprise when they check their loyalty program balances for the first time in months: they’ll find their accounts drained of points, miles and bonuses. Travel and hospitality reward programs are a growing target for fraudsters, as loyalty program accounts generally have much weaker security than traditional financial accounts, and consumers tend to check them much less frequently (or never — many accounts are dorm...
3 Undistributed Expense Trends to Watch
HotStats | March 16, 2020
Hotel operating departments can be divided into two main groups: those that generate revenue and those that don’t. Typically, hoteliers focus on the first group when analyzing financial performance— after all, that’s where the money comes from! Thus, departments such as rooms, F&B and spa are put under the microscope, and departmental key performance indicators (KPIs) are thoroughly studied and benchmarked. The second group consists of the undistributed departments, namely Administrative & General (A&G), Information & Telecommunications systems (I&T), Sales & Marketing (S&M) and Property & Maintenan...
Loyalty Programs Have Little Impact on Influencing Next Leisure Travel Booking
SmarterHQ | September 25, 2019
Marriott, Hilton and Southwest Airlines Lead in Having Most Loyalty Among Consumers Across the Travel and Hospitality Industry, According to New SmarterHQ Survey INDIANAPOLIS, IN – September 25, 2019 – What factors do consumers consider when they’re in the midst of booking their next leisure travel plans? SmarterHQ, a leading personalization platform, can confidently tell the travel and hospitality industry that loyalty programs are not one of them. The latest consumer survey results from SmarterHQ showed that loyalty programs have only a small impact on helping travelers decide their next trip. Instead, the report showed that Mil...
The Difference Between Loyalty Programs and Loyalty to a Brand
Alan Young | September 5, 2019
By Alan E. Young Loyalty is earned, and certainly not given, and there is a definite difference between loyalty programs and a guest’s loyalty to a brand. Hotel loyalty programs might seem ubiquitous today, but nearly 60% of guests still don’t belong to one. During the 2019 Skift Tech Forum, industry experts agreed that today’s travelers seek more than just opportunities to earn points – they want experiences. Mind you, that doesn't mean it's beyond reach. Hoteliers must work a little harder to understand precisely what factors drive guest loyalty in the modern age. Which brings us to the ultimate question — what makes guests l...
Hotel Loyalty Programs Are Broken – Here’s How to Fix Them
Joel Montaniel | August 29, 2019
By Joel Montaniel As travel increases, so does competition amongst hospitality operators. With spend on lodging exceeding $200 billion in 2018 alone, hotels have a unique opportunity to build their guest base and capture an even greater share of the market. However, to do that, they need to be memorable. And with over a third of hotel guests believing that hotel loyalty programs are rarely relevant to them, there’s a clear opportunity to improve how hotels interact with guests, both during and after their stay. One way companies across different sectors have built a strong customer base is through programs that reward regulars and i...
What Price Loyalty?
July 1, 2019
Loyalty programmes have long been a feature of the hotel sector, but little evidence has traditionally supported whether they represent an operationally and financially beneficial form of investment. Yet a recent study by Dr Dan Wang of the School of Hotel and Tourism Management (SHTM) at The Hong Kong Polytechnic University and her co-researchers provides strong evidence that hotels are justified in making such investments, and provides suggestions for how hotels can further capitalise on the benefits. The researchers begin by highlighting the longevity of loyalty programmes – they were introduced almost forty years ago with American Ai...
Loyalty Is Poised for Disruption: How to Award Loyalty the Right Way
Sara O’Brien | June 18, 2019
By Sara O'Brien Traditional points-based loyalty programs have been around since 1983, emerging as a unique way for major brands to build stronger relationships with their most valued customers. At the time consumers found them appealing and interesting, allowing hotel brands to generate buzz and additional revenue. But much has changed in the last 40 years. Technology and A.I. (Artificial Intelligence) have evolved to be able to deliver things people want when they want them. Netflix recommends which movie you’d like to watch next and Amazon can tell you what you should buy for your child’s birthday this year. Yet, so many hospital...
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