Loyalty programs in hotels play a key role in the hotel industry; they encourage guests to use products and services again and nurture long-term relationships with guests. Loyalty programs are one of the ways to thank and reward guests’ loyalty. You can offer them rewards that enhance their current hotel stay or offer them an even better experience the next time they stay. This approach will confirm their decision to choose your hotel and encourage them to come back again. Loyalty programs in hotels come in different forms and it is best to adapt them to the individual needs and wishes of the guests.
Points programs
Guests earn points for every money spent at the hotel; including solely the stay, meals in the restaurant, spa and wellness services, and additional activities. However, the goal of points programs in hotels is to collect as many points as possible, which can be exchanged for prizes such as free nights, meals in a restaurant, late check-out, free Wi-Fi, and the like. To be as successful as possible, points programs are adapted to the different wishes and needs of guests. Many point programs now reward behaviours that don’t depend only on transactions, such as following social networks, downloading an application, etc.
Tier programs
Through tier programs, guests reach different “levels” of membership. Membership levels can be Silver, Gold, or Platinum. Therefore, levels are assigned to guests depending on nights spent in hotels. With a higher tier level comes greater benefits, such as later check-out, faster and easier check-in, free meals, or room upgrades. Tier programs mainly target guests with higher purchasing power and require more advanced communication strategies.
Affiliate programs
Partnerships between hotels and other companies can bring numerous benefits to both parties, as well as to guests. In addition, hotels often partner with companies such as airlines or credit bureaus to allow guests to earn points or miles through various transactions. Earned points guests can use in multiple services. Thus, both companies in partnership improve the customer experience and brand visibility.
Paid programs
Programs that require payment are becoming an increasingly popular type of loyalty program in hotels. Guests are increasingly choosing to pay for membership to receive various benefits. This type of loyalty program guarantees guests the possibility of using benefits with the start of membership. Also, paid programs collect a significant amount of information about the preferences, habits, and behaviours of consumers to target their offer to users who are most likely to want to use paid programs.
Programs with fixed rewards
This type of loyalty program in hotels offers fixed rewards for certain activities. For example, after 10 paid stays at the hotel, the guest gets one free stay or exclusive discounts for using the hotel’s spa and wellness services. Fixed rewards programs encourage guests to use hotel products and services more often in exchange for rewards.
In conclusion, different types of loyalty programs in hotels offer various benefits and have their specifics. Combining different elements is very common in the hotel industry to create unique and personalized programs, encourage the use of products and services, and improve the customer experience.
