In an era of industry consolidation and fierce competition with online travel agents, hotels are reevaluating their loyalty programs to stand out. Even giants like Hilton and Marriott have overhauled their loyalty platforms to boost engagement. But amidst these changes, the question lingers: Are hotel loyalty programs truly important?

According to our 2017 Website Behavior Study, loyalty programs ranked highly in importance for nearly 50% of respondents. This underscores the value of offering rewards to cultivate loyal guests. However, the real challenge lies in structuring these programs effectively.

Interestingly, our study revealed that a staggering 78% of guests prefer immediate, albeit smaller, discounts or rewards during their current stay, as opposed to waiting for larger benefits in the future.

Top-Ranked Perks:

We delved deeper into guest preferences by asking respondents to rank various loyalty incentives. Notably, free breakfast emerged as the most coveted perk, followed closely by early check-in and discounts at on-site amenities like restaurants and shops. The full list, in order of preference, includes:

1. Free breakfast

2. Early check-in

3. Discounts at on-site restaurant, bar, or shop

4. Free Wi-Fi

5. Discounts on future stays

Implications for Hotels:

What does this mean for your hotel? Implementing a well-structured loyalty program can incentivize repeat visits and foster stronger relationships with your most loyal clientele.

Key Strategies for Success:

1. Instant Value: Guests crave immediate gratification. By offering smaller rewards during their current stay, you can differentiate your loyalty program and satisfy guests' desire for instant value.

2. Cost-Effective Benefits: Providing immediate value doesn't have to strain your budget. Explore ways to thank guests for their loyalty without incurring significant additional costs.

3. Opportunity for Delight: A carefully crafted loyalty program presents an opportunity to not only meet but exceed guest expectations. By surprising and delighting guests, you can boost satisfaction levels and garner higher review ratings.

In conclusion, hotel loyalty programs remain a powerful tool for fostering guest loyalty and driving repeat business. By understanding guest preferences and tailoring your program to deliver instant value, you can create a winning formula for guest satisfaction and long-term success.