Interesting article in the New York Times over the weekend, exploring how hotels are coming up with ways to brand themselves through guest loyalty programs. A clever solution in these times, as hotels are starting to think outside the box to survive 2010.
Is the loyalty program for branding, to build business, or maintain business? Hopefully, it is creative and rewarding enough to do all of these, because hotels who serve the business traveler in particular will need it.
Choosing the right guests to introduce the loyalty program is another story. Questions to ask often include: What do my highest paying guests want? Who is the hotel trying to attract? Who is likely to return and stay? Who is worth earning loyalty from?
Starwood, Intercontinental, Hyatt and Kimpton seem to find that loyalty programs are the way to go as the industry is still in a slump. Slashing rates is a no-no in 2010, so hotels will continue to throw in more amenities, and strive to personalize service in order to earn loyalty and repeat guests, especially with business travelers. As business travelers are overall not very brand loyal, the economic downturn has presented a unique opportunity to explore this market segment, and shift its dynamic when it comes to booking a hotel. This sounds logical as new, exciting loyalty programs sprout.
If you ask me, these loyalty programs must be outstanding to beat out competitors. With business travel, traditionally at least, rate has usually been the deciding factor for a booking. However, as most business travelers miss some luxuries in this economy, using loyalty points for upgrades and free breakfasts when applicable, is certainly a reason to be part of the program.
At the end of 2010, it will be really interesting to see how these programs have worked, and if indeed they have been able to succeed in maintaining a loyal guest base.