The Next Level of Hotel Loyalty Programs
What Do TikTok, Instagram, and Snapchat Have to Do with Hotel Loyalty Programs?
Ready to be surprised? The answer is instant gratification.
In today's fast-paced, seemingly digital-first world, people crave instant gratification more than ever before. They seek it from their social channels and, interestingly, from hotel loyalty programs.
Guests today want personalized and instant loyalty perks rather than traditional points-based loyalty programs. Let’s explore this shift in guest expectations and how hotels can adapt to meet these new demands.
The Changing Landscape of Travel Loyalty
According to the 2023 McKinsey Report on Travel Loyalty, members of travel loyalty programs are becoming increasingly disloyal. Since 2021, the likelihood that a guest would recommend a hotel loyalty program to a friend or colleague has steeply declined.
However, they will recommend brands. Travelers, especially those between the ages of 18 and 24, are loyal to brands, not loyalty programs. These travelers prioritize room rates that offer good value for their money and a brand with an excellent reputation.
What Guests Really Want from a Loyalty Program
A significant 78% of guests are looking for immediate benefits rather than waiting for their points to build up. Hoteliers can design hotel loyalty programs to meet these expectations by understanding their guests and focusing on what will satisfy them. Putting the guest experience at the program’s core allows for the delivery of unforgettable guest experiences through immediate personalized benefits.
Unlock the potential of your hospitality brand with a loyalty program designed for the future
How to Redefine Loyalty Programs for Today’s Guests
Looking to move away from your current points-based program? Here’s a good starting point:
Analyze Guest Data: Examine your guests’ spending history, on-site reservations and activities, and retail/shopping habits. Building a guest profile with these data points will guide you toward personalized recommendations and offers.
Personalize Perks: For instance, the Avertine Hotel uses Revinate CDP, providing access to Rich Guest Profiles for every guest, including historic stay data alongside spending history and other interactions. This allows the hotel to offer personalized loyalty perks, such as a discount at the spa or a credit for on-site dining, based on past behavior.
Offer Relevant Rewards: According to McKinsey, 78% of guests and consumers are more likely to make a repeat purchase when offered a personalized experience. Ensure the offers and messaging you send to guests are relevant to their interests. Utilize stay history or preferences surveys to gain insight into their interests and provide a more personalized experience.
Case Studies: Ennismore and Daniel Thwaites
Ennismore: Ennismore disrupted the loyalty landscape with its “Dis-loyalty” program. Presented by Carlo Del Mistro, Chief Digital Officer at Ennismore, the program encourages guests to “discover the new” and rewards them for first-time stays at hotels within the group and stays at newly opened hotels. It offers discounts on F&B, return stays, free coffee year-round, and access to various experiences and events, with instant access to all benefits — no points or tiers involved.
Daniel Thwaites: Daniel Thwaites has also adopted a modern approach to loyalty, putting the guest experience at the core of their philosophy. The staff at the properties uses Revinate’s Arrivals Report to identify repeat guests and reward them with perks upon check-in. This approach offers true instant gratification and “surprise and delight” to guests. The result has been an increase in NPS and overall hotel ratings.
Remember, the more guest data you collect and include in the Rich Guest Profile, the more personalized your loyalty perks can be, and the more likely your guests are to return.
By focusing on instant gratification and personalization, hotels can revolutionize their loyalty programs, ensuring they resonate with today’s travelers and foster true brand loyalty.
