Benefits of having Customer Loyalty Programs for Hospitality Organisations

Although some hoteliers place little or no importance on their customer loyalty programs, studies have shown that these reward programs are outstandingly effective in driving guest bookings and promoting customer satisfaction. We have thus attended to the need for elucidating some of the benefits of customer loyalty programs in the hospitality sector.

A lot of studies have gone on to establish that guests with high points often stick with a particular hotel whenever they travel. Well-known hotel chains have begun thinking about their loyalty programs thanks to outside forces’ pressure and the over competitive industry. On top of that, the industry has been consolidating such as the Marriott International buying of the Starwood Hotels and Resorts

We have covered in this article the key benefits of customer loyalty programs in the hospitality industry. Our other post covers some of the best customer loyalty programs in the hospitality industry.

Let’s begin!


Importance of Customer Loyalty Programs in the Hospitality Industry



  • Helps Retain customers


After the Starwood acquisition, Marriott’s initial move was letting members of both hotels link the accounts to earn and redeem points at the merged companies 30 brands.

It’s a sign that hotels do care about loyalty programs as they help in retaining their customers.

It’s also a great way to stay connected with existing customers.


  • Promotes direct booking


Direct bookings mean added profit. In the current era of price war due to competition, hospitality companies would never want to lose money on commissions to online travel agencies.

So, it’s best ideas to add a first time discount for direct booking through enrolling them to the loyalty program.

This is even more important for repeat customers. One of the key benefits of customer loyalty programs can be the price competitiveness and ease for repeat customers.

According to Mark Hoplamazian, CEO and president of Hyatt Hotels, this is a good moment in time to alter how hotels should look at loyalty programs and how guests should think about them.

Along with the increasing number of lodging competitors – HomeAway and Airbnb – well-known hotel brands are attempting to convince travellers to reserve their rooms with them instead of Internet travel agencies like Expedia or Travelocity. Hilton Worldwide, Hyatt, Marriott and Choice have begun providing discounts to their guests who reserve rooms through the hotel’s channels instead of travel agencies, but they have to become loyalty program members as well.


  • Is great for your company’s brand


A well-managed customer loyalty program is definitely valuable for your hospitality brand.

A nice card or a digital loyalty card, regular emails, direct bookings, more website visibility due to login and much more. It all adds to the visibility of the company which makes your brand more valuable.

Moreover, these programs are customer friendly and thus a great bonus for your brand.


  • Gets you more referrals


Nothing can be a better ploy to get more referrals than flashy customer loyalty programs.

Give it a pretty name that resonates with your hospitality brand and keep additional discounts and offers to go with it for in house spends.

Food coupons and gift coupons to go with it makes it a great mixture for travellers to speak about. It adds to their experience and thus more and more customers refer the loyalty program to their friends, family and acquaintances.


  • Is a Show of Gratitude 


An excellent customer loyalty program is always a surefire sign that you actually care about the guest.

It’s a monetary way of saying “thank you for booking with us.” That in itself can do wonders to your customer relationship management in the hotel industry.


  • Points + Pay helps in getting repeat customers


Points plus pay is primarily an avenue for customers to redeem a small number of points for their next stay. It makes more sense this way.

In the past, customers have always neglected the significance of loyalty programs because one needed to garner high points to redeem a meaningful reward.




There is a scope of an array of perks being offered along with these customers loyalty programmes. It gives your organisation ample opportunity to stay in the memory of existing customers and reach out to various new customers.

These programs also give the organisations an opportunity to promote new offers and stay ahead of their competitors. The benefits of these loyalty programs can be many for your organisation. So, if you don’t already have implemented such loyalty or customer benefit programs then it’s time to set up one immediately. You will be glad you did.