Most hoteliers create alluring customer loyalty programs or hotel reward programs to increase footfall, enhance customer satisfaction, and deter clients from defecting to their rival hotels.
In this post, we have listed the various excellent Hotel Reward programs.
Over the years, we have seen top hotel brands across the globe trying to outdo each other when it comes to all things regarding customer service and satisfaction. And for good reason.
Let’s face it; everyone in the hospitality sector understands that often guests book hotel rooms and facilities based on two primary factors: location and hotel rate; but some travellers are going the extra mile to save a little cash.
That is why customer loyalty programs or reward programs are must-have in every hotel.
How Does Hotel reward programs or Customer Loyalty Programs Work?
Also popularly called frequent guest program (or just shortened FGP), customer loyalty programs are designed to influence consumers’ purchasing decisions.
If you are a frequent traveller or a hotelier, you are familiar with how FGP works as it’s part of customer relationship management in the hotel industry.
In principle, guests earn points whenever they stay in a hotel or branch of a global brand of hotels.
These points, in turn, are redeemable for anything from hotel room upgrades to a free stay and everything in between.
Which are the best Hotel Reward Programs in the Hospitality industry?
Almost all of the large hotel chains have their own reward programs.
A lot of booking sites promote their own reward programs luring travellers looking for Cheapest hotel rate.
To gain every single customer hotel is changing the game of how customer loyalty programs work.
Reputable Hotel Chains Change How Their Customer Loyalty Programs Work
Well-known hotel chains have begun thinking about their loyalty programs thanks to outside forces’ pressure and the consolidating industry.
On March 1, Hyatt Hotels Corporation is set to unveil its new loyalty program, which would create three new elite tiers and compensate guests for staying at the hotel and spending money on drinks, food and the spa.
Wyndham Rewards said it was adding 17,000 homes and condos to its hotel’s roster that guests can earn and redeem their points.
At present, there are 8,000 Wyndham hotels around the world that accept the redemptions.
Choice Hotels has already revamped its Privileges program, which lets travellers who stay during the weekday to earn instant gifts like fuel savings at Shell locations, extra airline miles or points or credit at Uber and Amazon.com.
The idea is to bring in new customers, as more people are being lured into a stay at alternative lodgings like vacation rentals.
On top of that, the industry has been consolidating such as the Marriott International buying of the Starwood Hotels and Resorts.
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.
According to Mark Hoplamazian, CEO and president of Hyatt Hotels, said 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.
There are an array of perks being offered. After years of one way, thoughts have shifted due to aggravation guests felt from the earning and redeeming of points process.
Best Hotel reward programs in the world
Hyatt’s Reward Program
For instance, the Hyatt Gold Passport program is set for rebranding in the World of Hyatt with three tiers – Globalist, Explorist and Discoverist. Guests advance in tiers based on either base points of a year or qualifying nights.
Hoplamazian said, at the moment, there are only two tiers, which are determined by stays and nights. It takes people more nights in the hotel to get to the first elite tier.
He said there are compelling benefits at each program level. There are various customs to partake in at the Hyatt and attain benefits that were in the previous program.
Base points may be earned and used on spa treatments and dining.
Guests may earn them a free night after they’ve stayed at five different Hyatt brands, which includes 12 brands and more than 660 properties.
Elite members can attain suite upgrades when they reserve their rooms.
Wyndham Rewards Program
Wyndham Rewards is going another way with bringing in new customers. The hotel management understands that not everybody wants to stay in a hotel. For quite some time, the hotel was a vacation rental arm.
Wyndham has changed its rewards programs so that guests can redeem their hotel stay at 15,000 points – extremely low for the hotel industry. Vacation rentals are permitted at 15,000 points for each bedroom a night.
Noah Brodsky, head of loyalty at Wyndham Rewards, said loyalty programs have become extremely complex.
People have no idea what they have to earn, redeem or the costs. While it began with airlines, it spilled over into the hotels.
Join Wyndham Rewards program to avail customer loyalty benefits.
Choice Hotels Program
One of the most innovative hotel chains over the years has been Choice Hotels.
It is another vacation rental arm that lets its guests earn points while at the hotel.
It won’t be long, the company said, it would let people redeem their points too.
According to CEO of Choice Hotels Steve Joyce, the changes Choice Hotels made to its program were done to attain the attention of more Millennials – the age group that spends more money when they travel.
Joyce said an assessment was done to ensure more Millennials would want to stay at their hotel, focusing on things that would benefit them.
Joyce said these changes have included more loyalty club members, which brings in about two million new members every year.
To date, the company has seen 4.5 million new members for its Privileges program.
Besides the Amazon and Uber benefits, Choice Hotel’s loyal guests can download gift cards through the mobile apps and use their points to get free nights at discounted levels at hotels who participate in the program.
Arguably the hotel reward program with maximum members. Over 100 countries and close to 5000 hotels are covered.
The fine print section is small and the pros of the plan outweigh the cons by a large margin.
Benefits of Hilton HHonors hotel reward program:
- Hotels options from budget hotels to super luxury properties
- Benefits can be available anytime and anywhere
- HHonors is clubbed with air miles and points can be earned or redeemed for both air travel and hotel stay.
Check more benefits of Hilton reward program at Hilton HHonors link.
A Hotel Loyalty Program Offers that Uses Cash Back
Now here’s an interesting NEWS about hotel loyalty programs.
There is a hotel loyalty program that will provide you with heavy cash back. It’s called The Guestbook.
How does it work?
People who use the hotel loyalty program will find that there are at least 500 hotels in 50 countries.
And, the website plans to expand that to 650 worldwide hotels.
It includes boutique hotels and four and five-star independent hotels that are not included in the mainstream chains.
There are all kinds of lavish options in big cities to choose from.
However, people who are money concise can still benefit from it.
There are many options for their rewards. They can opt for a 10 per cent back reward if they use the website’s “Trip Cash” feature.
It’s applied to a stay at a hotel that’s listed in the portfolio. Bear in mind the results are a bit inconsistent when you type in your destination.
Better results can be seen with you use the “Browse Hotels” link and focus on the city you’re headed to.
What Do You Get From various Travel Website
You can receive a five per cent cash back through PayPal. You also have the option to receive a gift card for places like Amazon, Best Buy, bitcoin, American Express, Starbucks, Target and so much more.
A lot of other hotel reward programs through the Best Travel sites make the options all the more interesting.
Importance of Customer Loyalty Programs in Enhancing Customer Satisfaction
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.
The study further elucidated that guests with high points often stick with a particular hotel whenever they travel.
- 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
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.
How to Make Customer Loyalty Programs in the Hotel Industry More Efficient?
If you own a hotel or are a hotelier, it is important to appreciate the importance of customer loyalty program.
Apart from the points+pay approach, you also need to put other measures to make your customer loyalty program work better.
For one, you need to establish a ladder system of redemption.
What does this mean? It implies that the guests earn higher quality points as they move up the ladder of points.