Ask
anyone from a generation older than you, and you'll hear that a dollar
doesn't go as far as it used to. We've all heard stories about when milk
cost 25 cents and you could fill up your car for the price of what one
gallon costs today. But as the dollar has weakened, another currency has
gained steam: loyalty.
This isn't the last-ditch effort that
saved the airline industry in the early '80s. Loyalty programs have
spread to most industries fighting for today's customer: grocery stores,
gas stations, retail chains, restaurants and, of course, hotels. Spend a
dollar or two here, get a reward there-suddenly, the dollar has earned a
little power back. The most attractive reward in loyalty might be the
free room a guest can earn with a hotel brand.
But as the old adage goes, nothing in this world is free.
SPECIAL REPORT:
Brands: Programs target return guests
In
today's marketplace, brand loyalty is fickle. The antidote the industry
has turned to is the loyalty program, and at the heart of a loyalty
program rests the simple goal: incentivize customers to stay with a
brand.
Operators: Loyalty benefits trump costs
Brand
loyalty programs drive a wide range of business to individual hotels;
franchisees can count on a loyalty program for as little as 2 percent of
booking business to as much as 65 percent, depending on the market. But
any business is better than no business, and hotel owners and operators
report being overwhelmingly satisfied with the programs they are a part
of.
What frequent travelers really think about your programs
Elite-status road warriors don't hold back when it comes to sharing what they expect from a hotel loyalty program.
Loyalty programs for independent hotels
Every
day an independent hotelier wakes up he may only get half as much
business as he could because business guests won't even consider staying
at a hotel where they can't earn reward points. What's a hotelier to
do?
Use psychology to focus your frequent guest program
Follow this easy checklist to get your loyalty program in shape.
