This document provides an overview of loyalty programs in the hospitality industry. It begins with definitions of loyalty and a brief history of loyalty programs, noting they first emerged in the late 19th century. It then discusses the development of hotel loyalty programs, specifically mentioning they began in the early 1980s following airline deregulation. The document outlines different types and tiers of hotel loyalty programs. It also examines the importance of these programs and recommends strategies to increase their effectiveness.
This document provides an overview of the hotel industries. It begins with defining a hotel as an establishment that provides paid lodging and accommodation on a short-term basis. It then discusses the classification of hotels based on location, property type, pricing plans, clientele, and length of stay. It provides definitions for what the hotel industry and hotel marketing strategy entail. It notes that the hospitality sector, which includes hotels, is one of the fastest growing sectors in India. It also discusses the importance of comfort, security, privacy, convenience, and cleanliness for hotel guests.
How hospitality business are supported by other industriesTeacher
The following Are the Major support industries :
Banks.
Phone companies.
Insurance companies.
Suppliers.
Transport.
The Bank Provides The following Services :
Payments .
Receipts.
Pay in money such as its taking.
A hospitality business could not operate without phone or other communication services. Communication systems needed by hotels
Include :
Telephone in guest bedrooms that can be used for calls within the hotel.
Internal telephones for each department within the hotels.
A reservation system to allow customers to phone to make room bookings.
Internet facilities that allow guests to access and use the internet.
Business services that require a telephone line, such as faze
A business will usually have building and content insurance this means that if there is any damage to the property such as broken windows the insurance company will pay to have the damage fixed most insure will also cover more serious damage caused by a fire or flood.
This document discusses how digital technology is transforming the tourism industry. It notes that advances in areas like telecommunications, computers, and mobile technology now allow people and businesses to connect, share information, and conduct transactions in new ways. This digital transformation has created a more autonomous tourist who expects personalized service. The tourism sector must constantly innovate using technologies like the Internet of Things, location-based services, artificial intelligence, augmented and virtual reality, and blockchain to remain competitive and support sustainable development goals. A "smart destination" uses technology and data strategically throughout the tourism experience to benefit both visitors and residents.
The hotel industry originated in the 6th century BC and is one of the oldest industries. Early inns provided only basic shelter and floor space for travelers and animals. Over time, hotels developed different classifications based on market segment, size, level of services, ownership, and star ratings. ITC Limited entered the hotel industry in 1975 and currently owns over 100 hotels across India operating under various brands like ITC Luxury Collection, Welcome Heritage, and Fortune Hotels. The key aspects of hotel operations include rooms, food and beverage, sales and marketing, security, and human resources.
Challenges in global hospitality industryAMALDASKH
This document outlines several challenges facing the global hospitality industry, including: 1) Shortage of skilled employees and high attrition rates, making it difficult to retain quality workforce. 2) Rising customer expectations as travel increases globally. 3) Issues around global uncertainty, branding, technology, cost containment, and increased competition from other hotels and online reservation systems. Addressing these challenges will be important for the continued growth and success of the hospitality industry.
Presentation covered :
1. Introduction
2. SWOT Analysis
3.Strategic Planning Process
4.Structure of the Organization
5.Control Mechanism
6.Leadership Style that I observed
7.Various strategies which incorporate in order to get listed in the list of best places to work.
The future of hospitality an updated view september 2019Future Agenda
Future of Hospitality 2030
Ahead of a global dialogue on the future of hotels and hospitality, here are some key trends that will impact the sector. Six years on from a major programme undertaken in partnership with IHG, this is a review of 20 trends identified back in 2013 plus a further 20 that could have growing impact over the next decade. It is the starting point for a major new project.
With an initial workshop in Houston in October, a number of additional expert discussions are now being planned in key locations around the world – each hosted by leading hospitality brands and collectively building a rich, informed view of future change for the sector.
If you would like to discuss getting involved and hosting an event, do get in touch @futureagenda
The document discusses the induction process at the Taj Hotel in Mumbai. Induction is designed to familiarize new employees with their job, the work environment, and training programs to help them adjust quickly and have a positive mindset. The objectives are to treat employees fairly, ensure exciting work opportunities, provide communication channels, and offer recognition for excellent performance. The founder Jamshedji Tata established the Taj Hotel in 1903 with a goal of growth and employee development.
This document provides an overview of the hotel industries. It begins with defining a hotel as an establishment that provides paid lodging and accommodation on a short-term basis. It then discusses the classification of hotels based on location, property type, pricing plans, clientele, and length of stay. It provides definitions for what the hotel industry and hotel marketing strategy entail. It notes that the hospitality sector, which includes hotels, is one of the fastest growing sectors in India. It also discusses the importance of comfort, security, privacy, convenience, and cleanliness for hotel guests.
How hospitality business are supported by other industriesTeacher
The following Are the Major support industries :
Banks.
Phone companies.
Insurance companies.
Suppliers.
Transport.
The Bank Provides The following Services :
Payments .
Receipts.
Pay in money such as its taking.
A hospitality business could not operate without phone or other communication services. Communication systems needed by hotels
Include :
Telephone in guest bedrooms that can be used for calls within the hotel.
Internal telephones for each department within the hotels.
A reservation system to allow customers to phone to make room bookings.
Internet facilities that allow guests to access and use the internet.
Business services that require a telephone line, such as faze
A business will usually have building and content insurance this means that if there is any damage to the property such as broken windows the insurance company will pay to have the damage fixed most insure will also cover more serious damage caused by a fire or flood.
This document discusses how digital technology is transforming the tourism industry. It notes that advances in areas like telecommunications, computers, and mobile technology now allow people and businesses to connect, share information, and conduct transactions in new ways. This digital transformation has created a more autonomous tourist who expects personalized service. The tourism sector must constantly innovate using technologies like the Internet of Things, location-based services, artificial intelligence, augmented and virtual reality, and blockchain to remain competitive and support sustainable development goals. A "smart destination" uses technology and data strategically throughout the tourism experience to benefit both visitors and residents.
The hotel industry originated in the 6th century BC and is one of the oldest industries. Early inns provided only basic shelter and floor space for travelers and animals. Over time, hotels developed different classifications based on market segment, size, level of services, ownership, and star ratings. ITC Limited entered the hotel industry in 1975 and currently owns over 100 hotels across India operating under various brands like ITC Luxury Collection, Welcome Heritage, and Fortune Hotels. The key aspects of hotel operations include rooms, food and beverage, sales and marketing, security, and human resources.
Challenges in global hospitality industryAMALDASKH
This document outlines several challenges facing the global hospitality industry, including: 1) Shortage of skilled employees and high attrition rates, making it difficult to retain quality workforce. 2) Rising customer expectations as travel increases globally. 3) Issues around global uncertainty, branding, technology, cost containment, and increased competition from other hotels and online reservation systems. Addressing these challenges will be important for the continued growth and success of the hospitality industry.
Presentation covered :
1. Introduction
2. SWOT Analysis
3.Strategic Planning Process
4.Structure of the Organization
5.Control Mechanism
6.Leadership Style that I observed
7.Various strategies which incorporate in order to get listed in the list of best places to work.
The future of hospitality an updated view september 2019Future Agenda
Future of Hospitality 2030
Ahead of a global dialogue on the future of hotels and hospitality, here are some key trends that will impact the sector. Six years on from a major programme undertaken in partnership with IHG, this is a review of 20 trends identified back in 2013 plus a further 20 that could have growing impact over the next decade. It is the starting point for a major new project.
With an initial workshop in Houston in October, a number of additional expert discussions are now being planned in key locations around the world – each hosted by leading hospitality brands and collectively building a rich, informed view of future change for the sector.
If you would like to discuss getting involved and hosting an event, do get in touch @futureagenda
The document discusses the induction process at the Taj Hotel in Mumbai. Induction is designed to familiarize new employees with their job, the work environment, and training programs to help them adjust quickly and have a positive mindset. The objectives are to treat employees fairly, ensure exciting work opportunities, provide communication channels, and offer recognition for excellent performance. The founder Jamshedji Tata established the Taj Hotel in 1903 with a goal of growth and employee development.
Holiday Inn Express Digital Marketing PlanXiaoSijie
Holiday Inn Express is launching a digital marketing plan to increase brand awareness, gain new customers, and grow its market share in the Bahamas market. The plan focuses on social media strategies using Facebook, Twitter, Pinterest, and mobile strategies including a mobile site and app. It also includes internet marketing strategies like search engine marketing, search engine optimization, and an online newsroom. The total budget for internet marketing in 2013 is $500,000, with the largest portions going to website design, search engine marketing, and search engine optimization.
The document discusses technological trends in the hospitality industry related to housekeeping operations. It outlines several technologies including mobile keys that allow guests to unlock doors with their phones, the Optii Keeper system which optimizes housekeeping schedules in real time, robots being used for some hotel staffing functions, and the Ezi Maid bed lifting system which assists housekeepers in making beds. The trends are revolutionizing the hospitality industry and improving processes like predictive cleaning times and labor management, while high speed internet is also important for guests. However, technology cannot completely replace human interaction in hospitality.
Entrepreneurship Assignment:
I always dream of opening a restaurant and make my own
So This project make me realise how i can open one with a lot of research and knowledge.
The document provides information on the requirements and procedures for setting up and obtaining approvals for a travel agency business in India. It outlines the minimum requirements including adequate financing, centrally located premises, qualified staff, and approvals from government bodies. It also describes the infrastructure and financial requirements, approval processes from concerned bodies like IATA and DOT, and sources of income for travel agencies. The key approval procedures involve applying to bodies like IATA, DOT, RBI and following their rules regarding capital, experience, staff qualifications and facilities.
Hotel management involves dealing with people throughout the day, both guests and colleagues. It requires good teamwork, leadership, and attention to guest comfort. There are four core operational areas in a hotel: general operations, front office, sales/marketing, and food/beverage. Career opportunities exist not only within hotels but also in related fields like restaurants, clubs, cruise ships, hospitals and more. Skills like communication, organization, and attention to detail are important for success in the hotel industry.
The hospitality industry consists of fields like lodging, restaurants, transportation, and cruises that are involved in tourism. The Indian hospitality industry focuses largely on foreign tourists, who account for around 70% of business. Key growth drivers for the Indian hospitality industry include a booming economy, expanding niche markets, low cost airlines, and globalization. Major players in India's hotel industry include top hotel chains as well as new market entrants.
Personal grooming and hygiene involves cleaning and maintaining one's body through regular bathing, oral care, hair care, nail care, and using deodorant. It improves physical and mental health by preventing the spread of germs and disease. Maintaining good hygiene also enhances self-confidence and social success. Key aspects of personal hygiene include regularly washing hands, bathing daily, brushing and flossing teeth twice a day, trimming nails, washing and styling hair, and wearing clean clothes.
Industry 4.0 is a new revolution concerning the technical evolution. Furthermore, the new trend is called the fourth industrial revolution. It involves cyber-physical systems, the internet of things, cloud and cognitive computing. Due to the fact that the technology develops itself almost every day, new inventions are produced daily.
The document provides hygiene guidelines with instructions to wash hands, teeth, and body regularly, as well as care for hair, feet, and use the toilet hygienically. Key recommendations include washing hands before meals, brushing teeth twice daily, bathing regularly, combing hair neatly, washing feet before entering home, and avoiding walking barefoot.
This document provides an overview of the tourism and hospitality industry and professionalism within the field. It discusses key areas like transportation, accommodation, food and beverage, and attractions that make up the tourism industry. It then outlines the various career opportunities and necessary qualities for professionals in sectors like airlines, travel agencies, hotels, and more. Traits like communication skills, customer service, problem solving, and a positive attitude are emphasized. Finally, the document explains why the tourism and hospitality industry is an attractive field to work in due to opportunities for growth, diversity, and interacting with people.
This document provides an overview of etiquette basics. It defines etiquette as a system of conventional rules that regulates social behavior and notes that etiquette condenses knowledge of the rules of living in society. The document outlines general principles of polite behavior, guidelines for introductions and partings, dinner manners like elbows off the table and chewing with your mouth closed, proper table behavior, and different styles of cutting food.
The document discusses the hospitality sector in India. It begins with an introduction by 10 presenters and provides an overview of the sector. Some key points covered include the types of tourism in India, the impact of tourism, major campaigns to promote tourism, opportunities in the sector, reasons for investing, a PESTLE analysis, and regulatory policies around foreign direct investment. It also examines career opportunities and salaries for those with an MBA in hospitality management. In closing, it outlines projections for future growth in the sector.
Capstone Business School presentation on Hilton International. The group performed extensive research on the Hotels & Lodging industry, presenting their findings and recommendations in front of a various business professionals.
Comprehensive Presentation for Opening a Restaurant, which includes the mission statement, Vision, SWOT Analysis, Product Information,4 Pcs of Marketing, Advertisement and Financial Management such as costing, Revenue Generation, Proposed menu, Manpower allocation, marketing plan, Return on Investment.
Thanks,
Cultural Awareness in Tourism & HospitalityMonte Christo
This document discusses cultural awareness in hospitality and tourism. It defines culture diversity as valuing differences between people. Cultural awareness involves understanding one's own cultural values and how others may differ. Multicultural education aims to reduce divisions and help citizens participate in society. The document recommends offering cultural awareness training in hospitality/tourism programs. It also provides seven practices workplaces can implement to increase cultural awareness, such as cultural training, celebrating holidays, observing others, and achieving awareness through community activities. Several Filipino hotels promoting cultural identity are highlighted.
Corporate responsibility in hospitality industryAMALDASKH
The document discusses corporate social responsibility (CSR) in the hospitality industry. It defines the hospitality industry and CSR, noting that CSR refers to a business considering the impacts of its decisions on society, the environment, and its own prosperity. It then lists 10 principles for responsible business, such as avoiding waste, engaging stakeholders, and contributing to public policy. The last paragraph states that corporate responsibility brings hotel departments together to define responsible practices and promote progress among employees.
This document discusses tourism marketing in India. It notes that tourism is a large industry in India, contributing over 6% to GDP. India receives over 5 million foreign tourists and 562 million domestic tourists annually. The tourism industry generated $100 billion in 2008, and is expected to grow to $275.5 billion by 2018. As tourism involves experiences that cannot be sampled, marketing relies on trust, relationships, and delivering value. Tourism is an intangible, inseparable service that varies depending on customers and locations. Marketing strategies include developing diverse tour packages, promotion campaigns, managing places and people, streamlining processes, and ensuring good physical customer experiences. The scope of tourism marketing could be expanded by promoting undiscovered locations.
The document summarizes a group presentation for a proposed coffee shop business called "Palpasa Café". The summary includes an executive summary, mission statement, and overview of goals, strategies, location, logo/tagline, branding ambassador, and market analysis. It also provides details on the startup costs totaling 35,00,000 INR including rent, equipment, furniture, supplies, staff salaries, insurance, and loan. The presentation outlines the café's menu, daily/monthly revenue projections, industry segmentation targeting those aged 15-29, and data sources used in their market research.
IRJET- A Study on the different Elements of Customer Loyalty and its Impact o...IRJET Journal
The document discusses customer loyalty and its impact on business. It defines customer loyalty as repeat purchasing and positive word-of-mouth promotion. Customer satisfaction is key to developing loyal customers. The objectives are to study aspects of customer loyalty and understand its origins and implications. A literature review covers definitions of loyalty, factors that influence satisfaction like expectations and fairness, and common loyalty programs in industries. Research questions are raised about how networks and programs can build loyalty profitably. The implications are that the research provides a framework to assess loyalty programs and help managers utilize limited resources effectively to understand customer satisfaction and loyalty levels.
Taco Bell Unveils Game Focused Loyalty ProgramMegan Espinoza
Taco Bell launched a new mobile loyalty program called "Explore" in late 2015 to reward customers for "Living Mas", embodying their tagline of "Living Large". The program allows customers to earn rewards simply by going about their daily lives on social media. This new loyalty program aims to increase Taco Bell's market share in the fast food industry amid growing competition while meeting long-term business goals. Initial reviews of the program have been positive with both monetary and non-monetary success.
Holiday Inn Express Digital Marketing PlanXiaoSijie
Holiday Inn Express is launching a digital marketing plan to increase brand awareness, gain new customers, and grow its market share in the Bahamas market. The plan focuses on social media strategies using Facebook, Twitter, Pinterest, and mobile strategies including a mobile site and app. It also includes internet marketing strategies like search engine marketing, search engine optimization, and an online newsroom. The total budget for internet marketing in 2013 is $500,000, with the largest portions going to website design, search engine marketing, and search engine optimization.
The document discusses technological trends in the hospitality industry related to housekeeping operations. It outlines several technologies including mobile keys that allow guests to unlock doors with their phones, the Optii Keeper system which optimizes housekeeping schedules in real time, robots being used for some hotel staffing functions, and the Ezi Maid bed lifting system which assists housekeepers in making beds. The trends are revolutionizing the hospitality industry and improving processes like predictive cleaning times and labor management, while high speed internet is also important for guests. However, technology cannot completely replace human interaction in hospitality.
Entrepreneurship Assignment:
I always dream of opening a restaurant and make my own
So This project make me realise how i can open one with a lot of research and knowledge.
The document provides information on the requirements and procedures for setting up and obtaining approvals for a travel agency business in India. It outlines the minimum requirements including adequate financing, centrally located premises, qualified staff, and approvals from government bodies. It also describes the infrastructure and financial requirements, approval processes from concerned bodies like IATA and DOT, and sources of income for travel agencies. The key approval procedures involve applying to bodies like IATA, DOT, RBI and following their rules regarding capital, experience, staff qualifications and facilities.
Hotel management involves dealing with people throughout the day, both guests and colleagues. It requires good teamwork, leadership, and attention to guest comfort. There are four core operational areas in a hotel: general operations, front office, sales/marketing, and food/beverage. Career opportunities exist not only within hotels but also in related fields like restaurants, clubs, cruise ships, hospitals and more. Skills like communication, organization, and attention to detail are important for success in the hotel industry.
The hospitality industry consists of fields like lodging, restaurants, transportation, and cruises that are involved in tourism. The Indian hospitality industry focuses largely on foreign tourists, who account for around 70% of business. Key growth drivers for the Indian hospitality industry include a booming economy, expanding niche markets, low cost airlines, and globalization. Major players in India's hotel industry include top hotel chains as well as new market entrants.
Personal grooming and hygiene involves cleaning and maintaining one's body through regular bathing, oral care, hair care, nail care, and using deodorant. It improves physical and mental health by preventing the spread of germs and disease. Maintaining good hygiene also enhances self-confidence and social success. Key aspects of personal hygiene include regularly washing hands, bathing daily, brushing and flossing teeth twice a day, trimming nails, washing and styling hair, and wearing clean clothes.
Industry 4.0 is a new revolution concerning the technical evolution. Furthermore, the new trend is called the fourth industrial revolution. It involves cyber-physical systems, the internet of things, cloud and cognitive computing. Due to the fact that the technology develops itself almost every day, new inventions are produced daily.
The document provides hygiene guidelines with instructions to wash hands, teeth, and body regularly, as well as care for hair, feet, and use the toilet hygienically. Key recommendations include washing hands before meals, brushing teeth twice daily, bathing regularly, combing hair neatly, washing feet before entering home, and avoiding walking barefoot.
This document provides an overview of the tourism and hospitality industry and professionalism within the field. It discusses key areas like transportation, accommodation, food and beverage, and attractions that make up the tourism industry. It then outlines the various career opportunities and necessary qualities for professionals in sectors like airlines, travel agencies, hotels, and more. Traits like communication skills, customer service, problem solving, and a positive attitude are emphasized. Finally, the document explains why the tourism and hospitality industry is an attractive field to work in due to opportunities for growth, diversity, and interacting with people.
This document provides an overview of etiquette basics. It defines etiquette as a system of conventional rules that regulates social behavior and notes that etiquette condenses knowledge of the rules of living in society. The document outlines general principles of polite behavior, guidelines for introductions and partings, dinner manners like elbows off the table and chewing with your mouth closed, proper table behavior, and different styles of cutting food.
The document discusses the hospitality sector in India. It begins with an introduction by 10 presenters and provides an overview of the sector. Some key points covered include the types of tourism in India, the impact of tourism, major campaigns to promote tourism, opportunities in the sector, reasons for investing, a PESTLE analysis, and regulatory policies around foreign direct investment. It also examines career opportunities and salaries for those with an MBA in hospitality management. In closing, it outlines projections for future growth in the sector.
Capstone Business School presentation on Hilton International. The group performed extensive research on the Hotels & Lodging industry, presenting their findings and recommendations in front of a various business professionals.
Comprehensive Presentation for Opening a Restaurant, which includes the mission statement, Vision, SWOT Analysis, Product Information,4 Pcs of Marketing, Advertisement and Financial Management such as costing, Revenue Generation, Proposed menu, Manpower allocation, marketing plan, Return on Investment.
Thanks,
Cultural Awareness in Tourism & HospitalityMonte Christo
This document discusses cultural awareness in hospitality and tourism. It defines culture diversity as valuing differences between people. Cultural awareness involves understanding one's own cultural values and how others may differ. Multicultural education aims to reduce divisions and help citizens participate in society. The document recommends offering cultural awareness training in hospitality/tourism programs. It also provides seven practices workplaces can implement to increase cultural awareness, such as cultural training, celebrating holidays, observing others, and achieving awareness through community activities. Several Filipino hotels promoting cultural identity are highlighted.
Corporate responsibility in hospitality industryAMALDASKH
The document discusses corporate social responsibility (CSR) in the hospitality industry. It defines the hospitality industry and CSR, noting that CSR refers to a business considering the impacts of its decisions on society, the environment, and its own prosperity. It then lists 10 principles for responsible business, such as avoiding waste, engaging stakeholders, and contributing to public policy. The last paragraph states that corporate responsibility brings hotel departments together to define responsible practices and promote progress among employees.
This document discusses tourism marketing in India. It notes that tourism is a large industry in India, contributing over 6% to GDP. India receives over 5 million foreign tourists and 562 million domestic tourists annually. The tourism industry generated $100 billion in 2008, and is expected to grow to $275.5 billion by 2018. As tourism involves experiences that cannot be sampled, marketing relies on trust, relationships, and delivering value. Tourism is an intangible, inseparable service that varies depending on customers and locations. Marketing strategies include developing diverse tour packages, promotion campaigns, managing places and people, streamlining processes, and ensuring good physical customer experiences. The scope of tourism marketing could be expanded by promoting undiscovered locations.
The document summarizes a group presentation for a proposed coffee shop business called "Palpasa Café". The summary includes an executive summary, mission statement, and overview of goals, strategies, location, logo/tagline, branding ambassador, and market analysis. It also provides details on the startup costs totaling 35,00,000 INR including rent, equipment, furniture, supplies, staff salaries, insurance, and loan. The presentation outlines the café's menu, daily/monthly revenue projections, industry segmentation targeting those aged 15-29, and data sources used in their market research.
IRJET- A Study on the different Elements of Customer Loyalty and its Impact o...IRJET Journal
The document discusses customer loyalty and its impact on business. It defines customer loyalty as repeat purchasing and positive word-of-mouth promotion. Customer satisfaction is key to developing loyal customers. The objectives are to study aspects of customer loyalty and understand its origins and implications. A literature review covers definitions of loyalty, factors that influence satisfaction like expectations and fairness, and common loyalty programs in industries. Research questions are raised about how networks and programs can build loyalty profitably. The implications are that the research provides a framework to assess loyalty programs and help managers utilize limited resources effectively to understand customer satisfaction and loyalty levels.
Taco Bell Unveils Game Focused Loyalty ProgramMegan Espinoza
Taco Bell launched a new mobile loyalty program called "Explore" in late 2015 to reward customers for "Living Mas", embodying their tagline of "Living Large". The program allows customers to earn rewards simply by going about their daily lives on social media. This new loyalty program aims to increase Taco Bell's market share in the fast food industry amid growing competition while meeting long-term business goals. Initial reviews of the program have been positive with both monetary and non-monetary success.
Customer loyalty programs are more effective for online businesses than offline businesses. Online businesses can more easily track customer purchase histories and offer targeted rewards through digital platforms. This builds stronger customer loyalty without requiring customers to physically visit stores. However, offline businesses are struggling because fewer customers are traveling to stores as more purchasing occurs online. To adapt, offline businesses should develop mobile apps and sell products online to engage customers who are shifting to digital.
Pwc analysis: What’s driving customer loyalty for today’s hotel brands?David Vicent
Excelent PWC Analysis about Hotel Loyaty Programmes today and the Differences between X and Y generation, or between Business or Leisure travelers. What are the most important percived Benefficts for each one?
This document summarizes a study that segmented casino loyalty program members into different groups based on their annual gaming budgets, frequency of visits to their primary casino, and average spending per visit. Through a three-stage sequential segmentation process, the study identified six key segments of members: 1) Disloyal low spenders, 2) Loyal low spenders, 3) Transient big spenders, 4) Frequent loyal low spenders, and 5) Loyal big spenders. The study then profiled each segment based on their socioeconomic characteristics, behavioral characteristics, and loyalty scores to understand the different types of members in the casino's loyalty program.
The document discusses brand loyalty and its relationship to market share. It states that larger companies tend to have more brand loyalty due to increased customer familiarity with their products and services. Larger companies also benefit from positive word-of-mouth marketing from loyal customers. The document also notes that companies can increase revenues, and potentially market share and loyal customers, by opening more stores, offering online products, and providing volume discounts. Developing well-designed loyalty programs is important, but their results may not be immediately noticeable and require time for customers to become truly loyal.
LOYALTY PROGRAM DIMENSION AND FUTURE TREND FOR HOSPITALITY AND TRAVEL INDUSTR...IAEME Publication
This literature review analyzes 37 research papers on loyalty program dimensions and trends in the hospitality and travel industry published between 2013-2018. The papers are categorized based on five loyalty program dimensions: membership, benefits, point structure, communication, and partnerships. Most studies focused on the airline industry, as it was the first to implement loyalty programs, as well as the food and beverage industry. Recent papers concentrate on emerging trends influenced by advancing technology. The review provides insight into both challenges and opportunities in loyalty program design for various industries.
A Study on Customer Satisfaction in Automobile Industry wi.docxdaniahendric
A Study on Customer Satisfaction in
Automobile Industry within Saudi Arabia
RESEARCH DISSERTATION
Submitted in fulfillment of the partial requirement for the award of degree of
master of business administration
By
Fuad Abdullah Salem Hasan
Student ID: 150007035
Under the Supervision of
DR. FARRUKH RAFIQ AHMAD
COLLEGE OF ADMINISTRATIVE AND FINANCIAL
SCIENCES
SAUDI ELECTRONIC UNIVERSITY
2018
DECLARATION
I, declare that the work on which this dissertation is based, hereby submitted to the University of
Saudi Electronic University, for the degree of Master of Business Administration, has not
previously been submitted by me for a degree at this or any other university.
Student Name: Fuad Abdullah Salem Hasan
Student number: 150007035
Date of Submission: 12/04/2018
Abstract
This paper is a study on customer satisfaction in Automobile industry within Saudi
Arabia. It provides a general sight of the concept of customer satisfaction and goes more
particularity to discuss the concept of customer satisfaction from an Automobile perspective.
Because this study argues that achieving higher levels of customer satisfaction for an
organization is a multifaceted success, it tries to discuss each area that can impact the
organizational overall customer satisfaction from a management perspective and tried also to
reveal how each area affects the consumer‟s satisfaction from his point of view. The study aims
to benefit both Automobile consumers and the Automobile companies in Saudi Arabia through
providing a better understanding of the customers preferences and consumers behaving toward
the Automobile products and service that are available in the marketplace and their needs that are
not available products in order to supply what the consumers need so their need will be fulfilled
and the Automobile companies in the Kingdom of Saudi Arabia can realize a better competitive
advantage among their competitors and earn more revenues.
3
Table of Contents
Declaration
Dedication
Abstract
Chapter 1: Introduction ................................................................................................................ 4
1.1 Background ………………….………………………………………………...…… 4
1.2 Research Objectives …………………………………………………………...…… 7
Chapter 2: Literature Review........................................................................................................ 9
2.1 Research and Development: Product Design ………………..….……...…...…..… 11
2.2 Supply Chain and Logistics ……………...……..………………………………… 12
2.3 Marketing and Sales ……...……………………….……………….………...….… 13
2.4 Aftersales Service……………………...………………………..…...……………. 14
2.5 Customer Preferences and Customer Loyalty …..………………………........…… 15
2.6 Measuring Customer Satisfaction …………………..……………………..……… 15
Chapter 3: Research Methodology.......................................................................... ...
Increasing the Value of the Retail Store Channel;
• In an increasingly complex omni-channel retail environment, the retail store still plays an important role through offering an in-person brand experience.
• Offering added-value retail services is one strategy that can emphasize the value of visiting a store.
• These added-value services must be strategically tailored to specific customer needs in order to cause a significant impact on customer behaviour.
• There are various factors that contribute to the branding strategy (new brand or co-branded) of added-value services, such as service type, project timeline, and overall objectives.
The effects of purchase orientations on perceived loyalty programmes’ benefit...Christophe Benavent
This document discusses how different types of rewards offered through loyalty programs can impact customers' perceived benefits of the programs and subsequent loyalty, based on customers' individual shopping orientations. It develops a conceptual framework using self-determination theory and purchase orientation theory. The framework posits that intrinsic rewards that match a customer's shopping orientation will positively impact their perceived benefits and loyalty, while extrinsic rewards that do not match their orientation will have little impact. The document reports on research testing this model through surveys of customers in grocery and perfume stores with different shopping orientations.
Running head EVALUATING THE DIGITAL MARKETING STRATEGIES OF AL-MA.docxjeanettehully
Running head: EVALUATING THE DIGITAL MARKETING STRATEGIES OF AL-MAWARED COMPANY 1
EVALUATING THE DIGITAL MARKETING STRATEGIES OF AL-MAWARED COMPANY 4
Evaluating the Digital Marketing Strategies of Al-Mawared Company
Name
Institutional Affiliation
Evaluating the Digital Marketing Strategies of Al-Mawared Company
Every company deploys different marketing strategies to get more information about their success rate, feedback, and competitor activity based on their online presence or number of mentions by individual users. As such, it is integral to conduct a regular evaluation that points out a clear picture of how best the strategy is profiting the company. In the case of Al-Mawared, the evaluation can be done in five steps. First the evaluation would entail a detailed examination of the goals the company set to achieve (Chaffey & Ellis-Chadwick, 2019). Ideally, if the company did not have any set goals, the evaluation would describe what their goals and objectives should be for future analysis. The second evaluation would be on the target audience of the company. Third, the evaluation would determine its digital presence on the different platforms it engages in. Fourth, the evaluation would scrutinize the messaging strategies used in communicating with others within the platform. Finally, the evaluation would involve the company’s digital Return on Investment (ROI)
Evaluating set digital marketing goals would be based off the company’s previous goals in the digital space. The company set out to connect to potential clients and partners through their various digital approaches, a factor that is outlined by the number of social shares received, the number of positive reviews received about the site on platforms such as Google Reviews and Yelp, the total number of conversions that occurred as a result of social traffic, and web visitors on the company’s different platforms (Keegan & Rowley, 2016). The next form of action would be to evaluate whether the set target projections should go higher or lower, given the overall organizational performance of Al-Mawared on social media. Revising the goals and setting new objectives would be ideal in boosting the company’s overall performance in terms of service provision.
Al-Mawared founded their market plan on well-constructed consumer profiles that match the requirements of their target audience, who were a crucial element in their digital campaigns. They did this through evaluating the demographics, web activity, and interests of their consumers giving room for innovative strategies that help build the company’s efficiency. Al-Mawared set a digital footprint through their consistency in maintaining their digital presence in all their platforms (Chaffey & Ellis-Chadwick, 2019). As such, they were able to successfully engage their audiences in good time, creating a good reputation for themselves and potentially increasing their consumer traffic on their different social media platforms. Th ...
Running head EVALUATING THE DIGITAL MARKETING STRATEGIES OF AL-MA.docxtodd271
Running head: EVALUATING THE DIGITAL MARKETING STRATEGIES OF AL-MAWARED COMPANY 1
EVALUATING THE DIGITAL MARKETING STRATEGIES OF AL-MAWARED COMPANY 4
Evaluating the Digital Marketing Strategies of Al-Mawared Company
Name
Institutional Affiliation
Evaluating the Digital Marketing Strategies of Al-Mawared Company
Every company deploys different marketing strategies to get more information about their success rate, feedback, and competitor activity based on their online presence or number of mentions by individual users. As such, it is integral to conduct a regular evaluation that points out a clear picture of how best the strategy is profiting the company. In the case of Al-Mawared, the evaluation can be done in five steps. First the evaluation would entail a detailed examination of the goals the company set to achieve (Chaffey & Ellis-Chadwick, 2019). Ideally, if the company did not have any set goals, the evaluation would describe what their goals and objectives should be for future analysis. The second evaluation would be on the target audience of the company. Third, the evaluation would determine its digital presence on the different platforms it engages in. Fourth, the evaluation would scrutinize the messaging strategies used in communicating with others within the platform. Finally, the evaluation would involve the company’s digital Return on Investment (ROI)
Evaluating set digital marketing goals would be based off the company’s previous goals in the digital space. The company set out to connect to potential clients and partners through their various digital approaches, a factor that is outlined by the number of social shares received, the number of positive reviews received about the site on platforms such as Google Reviews and Yelp, the total number of conversions that occurred as a result of social traffic, and web visitors on the company’s different platforms (Keegan & Rowley, 2016). The next form of action would be to evaluate whether the set target projections should go higher or lower, given the overall organizational performance of Al-Mawared on social media. Revising the goals and setting new objectives would be ideal in boosting the company’s overall performance in terms of service provision.
Al-Mawared founded their market plan on well-constructed consumer profiles that match the requirements of their target audience, who were a crucial element in their digital campaigns. They did this through evaluating the demographics, web activity, and interests of their consumers giving room for innovative strategies that help build the company’s efficiency. Al-Mawared set a digital footprint through their consistency in maintaining their digital presence in all their platforms (Chaffey & Ellis-Chadwick, 2019). As such, they were able to successfully engage their audiences in good time, creating a good reputation for themselves and potentially increasing their consumer traffic on their different social media platforms. Th.
Triston Knous, owner of the Peaceful Rest Motor Lodge, must decide whether to make minor changes to grow the business independently or join a national motel chain, as the current operation is losing money. Remaining independent would take longer to become profitable but would allow Triston to keep all revenue. Joining Days Inn or Holiday Inn as a franchise would provide benefits like brand recognition and reservations but require fees and potential facility upgrades. After analyzing strengths, weaknesses, opportunities, and threats, the best option is remaining independent and investing in national brand marketing over time.
This marketing plan proposes two strategies to promote Accor Hotels' mobile app: 1) Local partnerships between Accor hotels and nearby cafés, and 2) Marketing through online travel agencies. The local partnership strategy involves cafés providing a free beverage to those who download the app, with cup sleeves advertising a contest. The OTA strategy inserts app advertisements on their websites and emails targeting Accor hotels. Both could be used together with a compounding effect, or individually. The plan aims to increase app awareness, downloads, and future bookings within a $20,000 budget.
Motivation, Values, and InfluenceMotivation, Values, and Influ.docxmoirarandell
Motivation, Values, and Influence
Motivation, Values, and Influence
Motivation, Values, and Influence
Vanessa Pizarro, Jessica Del Valle, Josue Gonzalez
University of Phoenix
MKT / 435
September 10, 2015
Prof. Enrique De La Cruz-Otero
Motivation, Values, and Influence
In order to develop an marketing strategy marketers have to research customers behaviors. Customers behavior goes along with what they have learned over the years or even a couple of hours ago. Defining customers behavior: According to "Marketing Teacher .com" (n.d.), “it is the study of consumers and the processes they use to choose, use (consume), and dispose of products and services. A more in depth definition will also include how that process impacts the world. Consumer behavior incorporates ideas from several sciences including psychology, biology, chemistry and economics” (para. 4). Customers make decisions every day, every hour even every minute and those decisions are made base on what they have learned. Every experience good or bad stay in peoples memory for a long time and in many cases for life. It is extremely important that when a client decide to buy your product or service, the results or experience that they get is good or meet their expectations. This is one of the reason why successful companies have great product. Those product or service that are mediocre do not last a long time. Like mentioned before these decisions are made by what people have learn through experiences and what they have stored in their memories. The people memory works like computers, their experiences create memories that will not trigger until some one mentioned it or the person looks for it. This is why when marketers are trying to reach an specific crowd they must take in consideration what the consumer have learned and what can possible be in their memories. This is a bunch of speculations but there are no marketer that have the right marketing formula. This also is one of the reasons why marketers go with customers behavior in order to develop a marketing strategy. Marketing is based on what marketers thinks is correct in a particular product and what the research tells them and it also comes with what the marketers have learned (experience) and their memories. In this paper can be found how The Hotel Worldwide have work. It can also be found the motivation process and techniques used to influence consumers of the product or service, a description of the consumer involvement and how that might help or hinder use of the product or service, it would Identify consumer values and determine if they are congruent with organizational values and the discussion of the implications of the conclusion (University of Phoenix, 2015, para.).
According to Plunkett (2008), the Hilton Hotels exist as one of the most famous as well as popular hospitality, tourism as well as accommodation offering firms all over the world. They are found located almost in all major cities of typical countries ...
The Customer Loyalty Conundrum by Forrester ConsultingPaul Writer
The document discusses a study on customer loyalty programs. It finds that while loyalty marketers are confident in their strategies, there are gaps in how they integrate data and insights. Most programs focus on discounts and retention, but struggle to innovate and prove ROI across channels. Emerging channels like mobile and social are underutilized despite being important to reach customers. Loyalty programs need better integration of data and the ability to deliver personalized offers in real time.
Journal of Advertising Research (JAR) - Driving Consumer-Centric GrowthMario Simon
This document summarizes the key findings of a large-scale global study called Insights2020 conducted by Kantar Vermeer and partners. The study investigated the role of insights and analytics in driving business strategy, customer experiences, and building customer-centric organizations. It found a positive correlation between customer centricity and revenue growth. Customer centricity focuses on understanding customers and identifying the most profitable ones to maximize long-term financial value, rather than just customer satisfaction. To be truly customer centric, an organization must implement it throughout and abandon a product-focused model for one built around customers. The document provides an overview of the Insights2020 methodology and sources of data used in the analysis.
Yahya Abdulqader has over 17 years of experience in tourism and hotel management. He has held roles such as Co-Founder and Executive Director of a hotel marketing firm, Sales Manager for an international group company, and Front Desk Manager. He has a Master's degree in Business Administration with a focus on hospitality and communicates effectively in both English and Arabic.
Hewlett-Packard Company (HP) is one of the world's largest computer and peripheral manufacturers. In 2014, HP had net revenue of $111.5 billion and cash flow from operations of $12.3 billion. HP uses an internal reporting system to collect accounting information from its seven business units and make budgets. It values inventory at lower of cost or market, expenses advertising as incurred, and includes shipping and handling in cost of sales. HP evaluates capital projects based on long-term profitability and funds projects through internally generated cash and access to credit markets. It has a strong capital structure with short-term debt, long-term debt, and a good debt-to-equity ratio.
Blake Mycoskie founded TOMS shoes with the "One for One" model, where for each pair of shoes purchased, TOMS donates a pair of shoes to a child in need. Mycoskie exhibits strong leadership through establishing a vision and values centered around social good. He empowers employees and encourages cooperation, flexibility and participation. Mycoskie also builds trust and motivates through sharing the inspiring story of TOMS with employees, customers, and partners.
The article discusses what makes a good leader according to Daniel Goleman. While IQ and technical skills are important, emotional intelligence is even more important for leadership. There are five main components of emotional intelligence: self-awareness, self-regulation, motivation, empathy, and social skills. These components, like self-awareness, self-regulation, and considering employees' feelings, are crucial leadership skills.
The document discusses the importance of consumerism in marketing. It defines consumerism and explains that consumerism is as important as investment and profits. Consumerism is a natural extension of social responsibility that protects consumers from being exploited or misled by retailers and manufacturers. Retailers and manufacturers have a responsibility to educate customers and provide transparency around products.
The document summarizes key facts about the African continent, including its large population size, vast natural resources, and high economic growth potential. It notes that Africa has over 1 billion people, 30% of the world's remaining mineral resources, and average annual GDP growth of 5.1% over the past decade. However, it also mentions threats like political instability, lack of infrastructure, and corruption that can hamper economic development. The document recommends strategies for investors like identifying market segments, developing products for target markets, and partnering with the poor through bottom of the pyramid approaches.
Core competence is a mixture of collective learning, skills, and coordinating production skills and integrating multiple production streams that allow a company to provide benefits to customers. It involves collaboration across departments and levels and is difficult for competitors to imitate. Core competencies provide potential access to many markets, significantly contribute to customer benefits, and are enhanced through continued use rather than diminishing.
The document is a SWOT analysis that identifies the author's strengths as being a hard worker who can withstand stress and perform multiple tasks simultaneously. Weaknesses include being hesitant, especially about small matters, and prioritizing passion over other concerns. Opportunities exist in pursuing a PhD in the US to expand knowledge and career opportunities. Threats are posed by limited scholarships and insufficient financial resources for obtaining a PhD. The author proposes maximizing strengths by focusing on multitasking under stress, starting with easiest tasks, organizing time effectively, and joining a complementary team.
The document discusses Michael Porter's theory of competitive forces that shape business strategy. It outlines the five basic competitive forces that determine the intensity of industry competition - the threat of new entrants, the power of suppliers and buyers, the threat of substitute products, and the intensity of rivalry among existing competitors. It also discusses how strategists can analyze these forces to formulate strategies that position their company strongly against competitors in the industry.
Gross domestic product, national income, disposable income, and real GDP all gradually increased from 2000 to 2010, with the exception of 2009 which saw a slight decrease due to the Great Recession. The economic growth rate peaked in 2000 at 4.1% before declining to a low of 1% in 2001 and then steadily increasing until reaching 3.8% in 2004, after which it gradually decreased to a low of 0.3% in 2008 during the Great Recession.
The document discusses the role of the internet in the hotel industry. It outlines various internet channels used by hotels, including websites, booking websites, social media, and smartphone apps. It then discusses how the internet can be used as a marketing tool, booking/reservation tool, and how it impacts the hotel's financial performance and customer relationships. Key points are that the internet allows hotels to reach more customers at lower costs, generate higher revenues through additional booking channels, and facilitate easier customer communication and transactions.
The document discusses the importance of food safety in the hospitality industry. It identifies three main types of food hazards: biological, chemical, and physical contaminations. Biological hazards include microorganisms that can cause foodborne illness. Chemical hazards involve naturally occurring and added toxins. Physical hazards are environmental contaminants introduced during processing. The document also outlines regulations and best practices around food preparation, hygiene, cleaning, and inspection to control these hazards and ensure food safety. Consumer concern about food safety has been increasing in recent years.
The document provides information about the city of Geneva, Ohio. It discusses Geneva's history as a small settlement established in 1805 that was named after Geneva, New York in 1816. It notes Geneva on the Lake as a popular summer resort destination for businessmen like Rockefeller and Ford in the early 1900s. The summary also includes demographic statistics about Geneva's population size, age, income levels, and unemployment rate. It outlines Geneva's natural resources including Lake Erie and local industries. Recreational attractions mentioned include state parks, covered bridges, concerts, golf courses, museums, and beaches. The document concludes with details about an upcoming beach ball championship to be held in Geneva over 5 months between 24 local teams.
SAP HANA is an in-memory database, data processing, and application platform that allows companies to perform ad hoc analysis in real time. The document discusses SAP HANA applications, the cloud platform, and its next generation capabilities. It also describes a project to build a mobile app using SAP HANA tools that leverages real-time social media data feeds for sentiment analysis and segmentation.
The document discusses FedEx's shipping process through their Memphis Super Hub. It analyzes the business processes, information systems, and benefits and risks of the hub model. The key business processes shown are logistics, supply chain management, shipment processing, sorting, and tracking. Information systems like scanners and tracking allow packages to be routed. Having a single hub coordinates nationwide delivery but risks delays if issues arise. The process could be optimized by adding regional hubs and improving early package scanning.
This document discusses various topics related to e-commerce and digital marketing. It covers the differences between traditional and digital business models, examples of successful digital marketing companies like Pinterest, and how e-commerce has developed business and trends in the industry. Specific sections discuss the business models of Pinterest and Pandora, the emergence of e-commerce portals and ecosystems, mobile and local e-commerce, and how to build an e-commerce presence including the role of social networking and customer relationships.
Dubuque, Iowa partnered with IBM to become a smarter city through cloud computing and distributed sensors. The document describes Dubuque's smarter water program which reduced water usage by 6.6% and increased leak detection eightfold through a portal providing households real-time water usage data. It also discusses how smarter electricity and travel programs could integrate all usage data to suggest community planning solutions improving quality of life.
This research paper discusses the relationship between organizational culture and employee commitment. It defines culture and business culture. It summarizes a study that found a significant positive relationship between corporate culture and employee commitment. The paper recommends that organizations involve employees in decision making, adapt to change, and enable identification with the organizational mission to increase commitment. It also notes that culture is more important than strategy, as culture determines how effectively a strategy can be executed.
Managers and leaders have important differences according to an article by Abraham Zaleznik. Managers react quickly to problems while leaders do not. Managers are more rational and organized, adopting impersonal goals, whereas leaders depend on imagination and personal desires. Leaders tend toward solitary activity and one-person decision making, while managers focus more on socializing and involving others. Leadership is developed through peer training and influence from senior executives on junior roles.
The document defines implementation as carrying out a plan or decision. It discusses how implementing plans can improve companies by solving problems and bringing changes. Managers are responsible for implementation, but all employees also share responsibility. While strategy is important, companies should focus more on implementing ideas to move forward with increased cooperation and clear priorities.
Research Paper - Evaluation of Loyalty Programs in Hotel Industry - Final
1. Running head: EVALUATION OF LOYALTY PROGRAMS IN HOSPITALITY 1
Evaluation of Loyalty Programs in the Hospitality Industry
Submitted to Dr. Scott Freehafer by Yahya Abdulqader
In fulfillment of course requirement for MBA 690
The University of Findlay
August, 2015
2. EVALUATION OF LOYALTY PROGRAMS IN THE HOSPITALITY INDUSTRY 2
Table of Contents
Abstract ......................................................................................................................................3
Introduction................................................................................................................................4
Overview on Hotel Loyalty Programs .......................................................................................4
Loyalty Definition...........................................................................................................4
Loyalty Programs History...............................................................................................5
Hotel Loyalty Programs Development and Future .........................................................7
Hotel Loyalty Programs Types .......................................................................................9
Hotel Loyalty Programs Tiers.......................................................................................13
The Importance of Hotel Loyalty Programs ............................................................................15
Recommended Strategies for Hotel Loyalty Programs ...........................................................20
The Impact of Hotel Loyalty Programs on Guest’s Booking Decision ...................................27
Online Travel Agencies (OTAs) and its Loyalty Programs.....................................................30
Brief History of Traditional Travel Agencies ...............................................................30
The History of Online Travel Agencies (OTAs) ..........................................................31
The Relationship between Online Travel Agencies (OTAs) and Hotels ......................32
The Loyalty Programs of Online Travel Agencies (OTAs)..........................................34
Do OTAs Loyalty Programs Compete Traditional Programs? .....................................35
Hotels Loyalty Programs vs OTAs Loyalty Programs .................................................36
Top Hotel and OTAs Loyalty Programs for 2015 ...................................................................37
I. Top Hotel Loyalty Programs ........................................................................................40
A. Top Ten.....................................................................................................................40
B. Comparing Bottom, Middle, Top Tier Elite Status ...................................................51
II. Best Five OTAs Loyalty Programs...............................................................................54
Conclusion ...............................................................................................................................59
Data Collection ........................................................................................................................60
References................................................................................................................................61
3. EVALUATION OF LOYALTY PROGRAMS IN THE HOSPITALITY INDUSTRY 3
Abstract
This paper discusses several topics related to loyalty programs in the hospitality
industry. Firstly, the loyalty programs’ history, evolution, and structure. Secondly, a
discussion of the effectiveness of these programs with providing different views in this
subject. The paper emphasizes the importance of these programs and proves how they have a
significant impact in increasing the repeat business which eventually leads to maximizing
hotels’ revenues. Thirdly, the paper recommends a number of strategies that would increase
the effectiveness and efficiency of these programs. Fourthly, a discussion about the impact of
online travel agencies (OTAs) in guests’ booking decision. As well as, the paper illuminates
the relationship between OTAs and hotels and how this relationship will remain robust over
the future. Finally, the paper evaluates the top ten hotel loyalty programs and the best five
loyalty programs of OTAs.
Keywords: loyalty programs; hospitality industry; tiers; guests; points; redeem; rewards
hotels’ revenues; online travel agencies; OTAs.
4. EVALUATION OF LOYALTY PROGRAMS IN THE HOSPITALITY INDUSTRY 4
Introduction
Loyalty programs are one of the most common marketing methods adopted by many
industries at the present time. For example, these programs are existing one way or another in
the airlines companies, large retailers, fashion and perfume houses, and of course hotels are
not an exception. Although these programs vary widely in diversity, credibility, and the
advantages offered to customers, they all share one goal: to create a close and strong
relationship with clients in order to retain a constant loyalty to the organization as long as
possible. In the end, this relationship is mutually beneficial, for the organization as it
effectively contributes in increasing organizations’ sales volume; and for the clients where
they get many advantages and benefits.
The following paragraphs will provide an overview on loyalty programs in general
and on hotel loyalty programs in particular. This overview will start that by defining loyalty,
what does to be loyal to an entity or organization mean? Followed by a brief summary of the
emergence of loyalty programs. Then, how loyalty programs have developed over the years
with some examples from industries. In addition to an objective discussion and outlook of the
future of loyalty program, especially in the area of the procedural steps that hotels should take
into consideration. The final two sections of this overview will provide a detailed explanation
for loyalty programs’ types and tiers.
Overview on Hotel Loyalty Programs
Loyalty Definition
In general, loyalty program is a rewards program provided by a company to
customers who frequently make purchases. Typically, loyalty programs pursue a variety of
methods to attract new customers and retain loyalty of old ones. That’s include giving the
customers an advanced access to new products, special sales coupons or free merchandise
(“Loyalty Program,” 2015). According to Mark Haley (2006) in a special report titled
5. EVALUATION OF LOYALTY PROGRAMS IN THE HOSPITALITY INDUSTRY 5
Hospitality Loyalty Programs; Strategies for Points-Based, Recognition-Based Programs,
“the intent of hotel loyalty programs is to drive customer loyalty and to make the guest want
to continue to choose to stay at a brand’s hotel again and again” (Haley, 2006).
Accordingly, the ultimate goal of hotel loyalty programs is to confine the customer
options, when he or she wants to book a hotel room, by making the hotel or the chain his or
her first choice or perhaps the only one. On the other hand, hotel loyalty programs usually fall
into two main categories, points-based frequency programs and recognition programs. “Both
varieties of programs have their place, including points-based. Different organizations
establish different programs according to their size, competitive posture and other attributes”
(Haley, 2006). However, more details about these categories will be provided in hotel loyalty
programs types section.
Loyalty Programs History
In general, the loyalty programs have emerged since about 120 years ago. According
to Loyalty and Rewards Guide.com in a report released in 2014, “one of the earliest efforts to
win the hearts, minds and wallets of customers was the S&H Green Stamp program,
originating in 1896” (“The History,” 2014). The idea of that program was based on
redemption and here how was it worked. “Consumers received tiny stamps when they made
purchases from participating merchants, glued them onto pages of booklets (known as
“alternative currency”) and redeemed them for products when the accumulated stamps had
attained a certain value” (“The History,” 2014).
According to the same resource, “another well-known early loyalty program was
General Mills longstanding Betty Crocker Points Program in which customers collected
points which were redeemable for kitchenware from a catalog” (“The History,” 2014). As we
can see the idea in those two examples was similar, which is encouraging repeat business by
rewarding customers for their loyalty to the company. Those primitive models were the basic
6. EVALUATION OF LOYALTY PROGRAMS IN THE HOSPITALITY INDUSTRY 6
building block that paved the way to the contemporary model of loyalty programs. However,
there were two factors have contributed effectively in the development of loyalty programs,
“airlines deregulation (1978) created the marketing environment and computerization created
the necessary systems infrastructure” (“History of Loyalty,” 2014).
Hence, we can state that the real birth of hotel loyalty programs began shortly after
the launch of the airlines loyalty programs that followed the airlines deregulation in the
United States in 1978. Ed Watkins (2013) in his article, The History and Evolution of Hotel
Loyalty, has stated that the first frequent flyer program from a major air carrier has been
provided by American Airlines, which launched AAdvantage in 1981. Whereas the first hotel
loyalty program has been provided by Holiday Inn when it launched its program in February
1983. In addition to this convergent evolution in time, there was a close relationship and
mutual benefits between the two industries in early stages of their loyalty programs.
Watkins (2013) added more details about this relationship. “The first generation of
hotel loyalty schemes were simply conduits to airline programs: Currency earned in hotel
programs could be used toward free flights on participating airlines.” However, this situation
of limited rewards options did not last long as hotels began to redesign their loyalty programs
rewards to include a redemption of free room nights, room upgrades, and other rewards such
as free Internet and access to VIP lounges. It’s worth mentioning that still there is a strong
relationship between the two industries where the major airlines and hotel chains have linked
the enrollment, rewards, and redemption of their loyalty programs in a way or another.
The following is a further clarification about loyalty programs in the hotel industry.
As mentioned earlier, the first scheme of hotel loyalty programs has been designed more than
32 years ago. “Two brands lay claim to firsts involving frequency programs in the hotel
industry. Holiday Inn launched its program in February 1983, followed by Marriott in
November of the same year” (Watkins, 2013). Watkins has mentioned that Holiday Inn
7. EVALUATION OF LOYALTY PROGRAMS IN THE HOSPITALITY INDUSTRY 7
discontinued its program three years after its launch, then restarted it a year later in 1987.
This fact gives Marriott hotel chain the claim as the oldest continuously operating program in
the hotel industry (Watkins, 2013).
Hotel Loyalty Programs Development and Future
During the last three decades all hotel chains have created their own loyalty programs;
others continued to modify or refine their loyalty schemes and rewards. Recently, “four large
hotel companies—IHG, Marriott, Hilton Worldwide and Starwood Hotels & Resorts
Worldwide—made significant changes to their points programs, raising the thresholds for
members to receive free-night benefits” (Watkins, 2013). Here are additional examples of
these modifications. IHG renamed the existed tiers of its loyalty program and added a forth
one; Marriott re-categorized a number of its properties; Hilton added a new category to
include some of its properties; and Starwood Hotels & Resorts Worldwide added additional
benefits to its loyalty program.
On the other hand, hotel loyalty programs are no longer limited to large hotel chains
companies. Some resorts, inns, and independent properties have entered on-line. For
example, “Voila Hotel Rewards and Stash Hotel Rewards, provide loyalty options for
independent and boutique properties” (Watkins, 2013). By the same token, a number of brand
companies have partnered with resort companies in order to add a variety of choices to their
customers. Here are some examples, “IHG with Las Vegas Sands and Hyatt Hotels
Corporation with MGM Resorts International to provide reciprocal benefits for its loyal
customers” (Watkins, 2013).
Moreover, according to Watkins (2013), traditional hotel chains has started to give its
loyalty club members an increased flexibility in how they can use and redeem their gained
points. For instance, “IHG has a concierge service, in which IHG Rewards Club members can
use a merchandise catalog to exchange points for products, services and travel offers.
8. EVALUATION OF LOYALTY PROGRAMS IN THE HOSPITALITY INDUSTRY 8
Marriott recently struck a deal with United Airlines that provides special benefits to members
in both companies’ loyalty programs” (Watkins, 2013). Thus, hotel loyalty programs are
developing steadily from time to time in the light of the frenzied race to win the lion's share
of the hospitality market.
Nevertheless, how the future of hotel loyalty programs seems? Is there a major change
coming in the near future? Should hotels add more value to their loyalty programs? What do
they have to avoid? Watkins (2013) has answered these questions by saying that “the industry
won’t get away entirely from the points-for-stay model, but the evolution of loyalty will
move toward recognition: who is the guest? What do they like? And what are their
preferences?” In Watkins’ opinion, “the industry can, will and should get away from the
gamification aspects that have plagued not just hotel loyalty programs, but the airlines as
well.” “You’ll see hotels focus more on guest spending and the financial value the guests
bring, as opposed to strictly frequency,” Watkins emphasized (Watkins, 2013).
In my opinion, there are some issues and observations limit the expansion and the
impact of hotel loyalty programs, or in other words devalue its appeal in customers’ eyes.
Among these observations, and this is from a personal experience, nearly all hotels refrain
from granting any points to guests who have made their bookings through a third party such
as travel agencies or booking websites. Besides, many guests find that the required number of
qualified nights spent in each tier to achieve the next one is more likely unreachable. For
instance, the required nights to qualify a guest to move up to a higher tier is ranged between
15 to 50 nights and must be spent in one calendar year. Guests believe that this formula is
inaccessible to lower and middle class travellers; only beneficiaries are businessmen.
Also, many guests find that the worthwhile advantages of hotel loyalty programs are
only offered to the top tiers members such as the platinum ones. That means there is no real
advantages for early stages members, and as mentioned, the way to the top tiers is too long;
9. EVALUATION OF LOYALTY PROGRAMS IN THE HOSPITALITY INDUSTRY 9
could take years. By the same token, some of benefits and advantages provided to members
of hotel loyalty programs has become among basic requirements in hotel industry such as the
free Internet or newspapers; in other words, they should not be considered as advantages.
Accordingly, hotels should take these observations into consideration and try to add real
value to their loyalty programs in order to be more attractive to guests.
Hotel Loyalty Programs Types
As mentioned earlier, hotel loyalty programs have been categorized under two major
schemes/categories, points-based frequency programs and recognition programs. Let us take
a closer look at each scheme/category. First, points-based frequency programs allow guests to
earn points when staying at a hotel or using its services. These points can be exchanged or
redeemed for free room nights, upgrade bookings, or other benefits. Also, many hotels allow
guests to exchange their points for other services provided by allied partners such as airlines
and car rentals companies. Second, the concept of recognition programs is based on capturing
guests’ preferences then use them to enhance guests’ future visits.
So, as we can see, each category has its unique philosophy in treating guests and
dealing with their preferences. Now, a number of questions arise: are there any specific
requirements in order to enroll in one of the two programs? What are the characteristics that
distinguish each category? Why a certain hotel or chain adopts a certain way to reward its
guests? What type of hotels or chains that adopt points-based frequency programs and what
type adopt recognition programs? Is there any hotel or chain combines the two approaches?
Does any one of the two categories support elements in the other? And finally are there any
disadvantages for loyalty programs? The following paragraphs provide answers for these
questions.
Basically, all hotel loyalty programs are free to join. The enrolment in such programs
usually follows one of two paths, an initiative from the guest; or via an invitation by the
10. EVALUATION OF LOYALTY PROGRAMS IN THE HOSPITALITY INDUSTRY 10
hotel. There are no specific requirements to join those programs with the exception of filling
in the membership form, which can be completed in the hotel reception, by mail, or via the
hotel official website. However, the enrolment in recognition programs might be based on
“staff observations, where line personnel are incented to record relevant guest behaviors, so
that the request can be anticipated on the next visit” (Haley, 2006). A clear example
represents this class of program is Denihan Hospitality’s MAGIC (Marketing and Guest
Information Center), as it “using sophisticated database tools to match up guest reservations
with existing profiles, and no enrollment or member number is called for” (Haley, 2006).
On the other hand, each category has its attributes and advantages that distinguish
each one from the other. Some attributes of points-based programs including:
They are easy to enroll: just filling one form.
They are voluntary: it’s all about guests’ acceptance to join the program and
willingness to share their personal information.
They are quite understandable: stay, spend, get points, and then exchange them for
free nights and many other rewards.
The majority of hotel loyalty programs grants its guests to keep and redeem their
points lifetime.
The redemption’s options became wider with the alliances between hotels, airlines,
rental car companies, and with many other entities such as banks, credit card
organizations, fashion houses, and luxury shops.
“They are straightforward to administer, with the right investments in technology and
business process integration” (Haley, 2006).
They are really effective: “Market Metrix1 reports that 34 percent of hotel guests say
that a loyalty program was a key factor in hotel choice, from a sample dominated by
points-based programs” (Haley, 2006).
11. EVALUATION OF LOYALTY PROGRAMS IN THE HOSPITALITY INDUSTRY 11
In contrast, recognition programs do not have all these attributes; fundamentally they
are limited to hotel staff observations and there are no points to earn. With that said, why a
particular hotel choose to limit its options to this approach? The answer is, many hotels that
adopt this approach have no choice but to do so, due to its size or location. Haley (2006) adds
more explanation, “In order to accumulate enough points to fund a meaningful stay or partner
award, one needs quite a few stays. But for a single hotel or small chain, it is difficult to
assign enough value to a given stay to accumulate enough points to give anything away”
(Haley, 2006). That leads to provide an answer to the following question, what type of hotels
adopt each category? Obviously, large hotels and major brands adopt point-based programs
and small hotels and independent ones adopt recognition-based programs.
However, a number of hotels combine the two approaches. For instance, “(Kimpton
Hotel & Restaurant Group) offer not just rewards but also on-site guest recognition, such as
free Wi-Fi or member-only events at their hotels” (Watkins, 2013). By the same token, the
points-based programs support elements of guest recognition. “Examples include flagging
elite members as such to associates or populating reservations with key preferences such as
nonsmoking or smoking” (Haley, 2006). That distinguishes the two programs in one way
where points in points-based programs are “the currency valued by the guest,” whereas in
recognition programs “the experience becomes the currency and thus a tangible extension of
the brand” (Haley, 2006).
Finally, let us take a look upon the opposite side of these programs. Some
disadvantages of points-based programs including:
In order to earn points, the guests must make their bookings only through the hotel;
making the booking through a third party will result in zero points to earn.
Unreasonable number of nights that required to be spent in each tier in one calendar
year to qualify guest for the advanced levels.
12. EVALUATION OF LOYALTY PROGRAMS IN THE HOSPITALITY INDUSTRY 12
Hotel loyalty programs members who achieved a higher tier are required to continue
spend the same nights required for the new tier in every following year in order to
maintain their qualification for that tier, failure to spend the required nights in one
calendar year will result in downgrading them to the previous tier again. For example,
if a guest has successfully moved up from the silver tier to the gold one, then he or
she needs to spend the number of nights required for the gold tier in one calendar
year, let us say the number of nights required for gold tier is 35 nights, so if the guest
spent only 34 nights he or she will automatically be downgraded to the silver tier
again.
Some hotel loyalty programs do not allow members to redeem their points during top
events and high-demand seasons.
Some hotel chains limit redemption to its low category properties; or significantly
raise the figure of points required to redeem in its top category properties
Some rewards became among basic hotel industry amenities such the free Internet,
“Internet access is increasingly viewed by guests as utility similar to lights and water”
(Dhir, 2013). Also, among these basic amenities are newspapers, mineral water, and
coffee trays.
Some of worthwhile rewards of hotel loyalty programs are exclusively designed and
offered to members of top tiers.
By the same token, some disadvantages of recognition-based programs are:
Lack of rewards options, guest almost has no option due to the nature of these
programs.
These programs is difficult to be independently applied in large hotels or chains due to
the high number of staff required to observe and record guests’ preferences.
These programs seem to be fitted to elite guests not to low and middle class ones.
13. EVALUATION OF LOYALTY PROGRAMS IN THE HOSPITALITY INDUSTRY 13
Lack of motivation factor that available in points-based programs, which is collecting
points.
Hotel Loyalty Programs Tiers
Basically, all loyalty programs have been structured on the basis of tiers. The idea of
tiers is based on that most of people are naturally fond of accomplishment. Thence, this idea
gives people the motivation to accomplish more and more levels which requires more and
more spending on a company’s products. That leads to win-win scenario; customers improve
their loyalty and companies increase their revenues. In general, most of loyalty program’s
tiers consisting of 3 tiers, some consisting of 4 or even 2 tiers. Usually, the first tier or the
basic one’s called basic, entry level, or bronze; the next tier called silver, the third called
gold, the forth tier or the top one’s called platinum, diamond or elite. However, there are
other titles of those tiers, but those mentioned are the most common titles.
The previous structure did not change or revamp since decades; it worked well as
marketers who built it planned and generated the intended results, at least until ten years ago.
Nevertheless, does this structure still work or is there any need to remodel it? The findings of
a recent study on attitudes toward membership status in loyalty programs titled Fears for
Tiers, published by Jeff Berry and summarized by Fabio David Capasso (2014), have found
that the efficacy of tiers model has faded and its attractiveness in customers’ eyes has
dimmed. “Data seemed to indicate that tiering is no longer motivating customers,” Capasso
said. This means that marketers in general and hoteliers in particular must find new ways and
innovative methods to maintain the effectiveness of loyalty programs.
The mentioned study has proposed a new formula that will enhance the standing of
the hotel loyalty programs and restore its luster. The key ingredients of this formula are
mixture of “simple customer-facing tiers combined with complex internal micro
segmentation, increasingly focused on the high-potential middle tier. This is the future of
14. EVALUATION OF LOYALTY PROGRAMS IN THE HOSPITALITY INDUSTRY 14
tiering” (Capasso, 2014). Moreover, this study showed that one of the most important reasons
for the failure of tiers system is there is a kind of blurred vision with customers toward this
system. Knowledge is the most important factor that would clear that vision. Thence, “savvy
loyalty program operators will put constant and consistent communication programs in place
to keep consumers updated on status and eliminate potential confusion” (Capasso, 2014).
As mentioned earlier, tiers system designers should pay more attention to the middle
tier, as study findings recommended, but why? Several factors could be combined to provide
an answer to this question. Some of these factors are:
Research found that the “today’s tiered loyalty programs are overweight on the top
and bottom.” As a result, “marketers can find the best potential for program payoff at
middle tier.”
“Middle-tier members are the most optimistic about achieving a higher status.”
Middle-tier members have a “better understand the benefits available to them in their
tiers, as well as in the tiers above them, compared to people in the lower tiers.”
“Middle tier members are more motivated by soft benefits, such as the ability to share
perks with friends or family, better service and access to events” (Capasso, 2014).
Finally, this study has suggested some strategies that would increase customers’
spending and hotels revenues alike. Here is a summary of these strategies:
1. Clear the clutter: keep it simple, successful loyalty programs focus on a few valuable
benefits at each tier rather than many invaluable benefits.
2. Stop changing lanes: hoteliers should avoid linking tier qualification to only dollars
spent; always there is another way to assess the guest.
3. Continued education: always communication is the best way to deliver your message,
“it should be continued throughout the consumer lifecycle, and not just during the
onboarding process.”
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4. Recognize motivations within tiers: hostelries and loyalty programs designers should
consider tiers as one component in a multi-component strategy that aims to engage the
guest. Accordingly, other motivators should be embedded with an organization’s tier
structure “by way of an internal segmentation strategy.”
5. Segment out the middle: as mentioned earlier, middle tier members are the best
translation to how the engagement to hotel loyalty programs should be. So, it’s really
a wise decision to give the priority to those members (Capasso, 2014).
The Importance of Hotel Loyalty Programs
The fierce competition in the aviation market that began in the late seventies has
pushed the airlines companies to innovate new marketing tools in order to get a bigger slice
of the market cake. One of these marketing tools was frequency loyalty programs. Soon, the
hospitality industry realized that there is a need to adopt the same idea, the loyalty programs.
As mentioned earlier in the definition section, these programs are marketing tools aimed to
reward guests and thus encourage loyal behavior. However, a question arises here, did these
programs perform its role in increasing hotels revenues and developing the relationship
between guests and hotels? If yes, do these programs still perform their role or they fall
behind? The following paragraphs provide answers to these questions.
Undoubtedly, hotel loyalty programs has effectively contributed in increasing hotels’
revenues since its inception and during the past three decades. They also been able to
consolidate the bonds between the guests and the hotels. Hence, it can be said that the
fundamental importance of these programs is to build a solid relationship with guests that
leads to increase the repeat business, which in turn maximizes hotels revenues. The success in
building such a relationship is essentially depend on to what extent these programs are
efficient and flexible and whether or not they still have the ability to attract more guests and
16. EVALUATION OF LOYALTY PROGRAMS IN THE HOSPITALITY INDUSTRY 16
retain the existing members. The more they being realistic and convenient to the guests’
requirements the more they generate the intended results, and vice versa.
However, after about 32 years of the first launch of these programs, the opinions are
divided about the effectiveness of these programs at the present time. Mainly, there are two
teams here: one team says that these programs still perform its desired role and there is no
urgent need to make any adjustments on these programs. Yet, a few members of this team see
that it is essential to rebuild those programs or make some necessary adjustments in order to
be compatible with the latest developments in the hospitality market. The other team says that
hotel loyalty programs do not play any vital role; even this team confirms that hotel loyalty
programs have become obsolete. Each team has a number of reasonable proofs, let us take a
closer look at them.
First, let us take a look upon the opinion of the first team who believes that the hotel
loyalty programs still play a pivotal role in hotel industry. A recent study titled Assessing the
Benefits of Reward Programs: A Recommended Approach and Case Study from the Lodging
Industry, has found that a “well designed hotel loyalty programs encourage frequent guests to
become even more frequent.” That resulted in creating repeat business which leads in turn to
increase hotels revenues. Also, the findings of this study, which conducted by the Center for
Hospitality Research (CHR) at the Cornell School of Hotel Administration and released in
2014, has revealed that there was “a 50-percent increase in revenue compared to those who
did not join the program” (Voorhees, McCall, & Carroll, 2014).
Another study conducted by the same center on 50,000 hotels in North America over
two years, has found that “once a guest signed up to a hotel’s loyalty program the frequency
of stays booked by a guest at that hotel rose on average by 49%.” Also, the study has found
that “loyalty programs accounted for a 57% rise in bedroom revenue.” At the first place, the
researchers of this study have aimed to find an accurate answer to the question, were hotel
17. EVALUATION OF LOYALTY PROGRAMS IN THE HOSPITALITY INDUSTRY 17
loyalty programs worth the time and money hotels spend on them? So, they have concluded
to the following important points:
“Hotels in the study are seeing a substantial revenue increase when their guests enroll
in a properly conceived and executed program.”
“Loyalty programs can and do deliver positive results in terms of revenue, stay
frequency, and guests spending.”
“Loyalty programs also provide hotels with a wealth of information on their guests.”
(John, 2015).
For instance, some of these important information including guests’ backgrounds,
guests’ preferences, and guests’ personal details. Such information are very valuable to the
hotel marketing departments and staff as they can be used in creating successful marketing
campaigns, sort guests, and give priority to certain members. In the same context, Alex
Gaggioli (2015) in his article The Argument for Hotel Loyalty Programs, has illustrated an
additional feature of hotel loyalty programs, which is they “drive direct bookings, helping
hoteliers reduce online travel agencies (OTAs) commission fees. Targeting loyalty members
with special rates and packages deters those same guests from researching other options”
(Gaggioli, 2015).
Second, in the opposite side, there is a team who believes that hotel loyalty programs
really became a part of the past. For instance, Xtoles, a website deals with hotel distribution,
marketing and revenue management, has published an article that represents this team
entitled Throw your Hotel Loyalty Program out the Window. In this article, Remko West
(2014), the author, believes that hotel loyalty programs have become obsolete, and he has
supported his theory with some reasons. Here is a brief of these reasons:
“The return of being a loyal customer is not immediate.”
“The return of loyalty is not rewarding to the customer.”
18. EVALUATION OF LOYALTY PROGRAMS IN THE HOSPITALITY INDUSTRY 18
“Alternatives are too easy to find and access.”
“There are plenty of pitfalls related to the effort of having someone become part of
your loyalty program and getting them to stick around to reap the benefits” (West,
2014).
Here is more explanation to Remko West points. West believes that customers should
be rewarded immediately and there is no reason to let the guest waiting for rewards as he or
she should first achieve a certain level to be rewarded. He also has emphasized that loyalty
programs do not provide a true value to its members. And I have mentioned earlier something
similar to this fact when I said that worthwhile rewards are only provided to top tiers
members and the rewards for early tiers members are invaluable. West has given a real
example for that when he said “a free stay every 50 nights? Just imagine how much I would
desire the 51st night per year,” and I totally agree with him.
On the other hand, as a result of the spread of the Internet, alternatives are endless;
everything become under the guest fingertip. “The big enemy of loyalty is choice,” West
said. Finally, West has illustrated some obstacles created by hoteliers when they lengthen
achievement process, as an example. As well as, dumping the guests in a flood of
promotional emails may leads to an opposite result. However, in my opinion, hotel loyalty
programs still play a significant role in hospitality industry. Regardless of West’s points,
which most of them are true, that is not necessarily means that we have to throw out these
programs from the window, as West said. What marketers have to do is making some
substantial modifications to these programs by providing true benefits and simplifying the
tiers system.
Finally, let us analyze one more article supports this team. Amadeus is a company
produces a cutting-edge products and provides the latest technology solutions in travel sector.
In 2011, the company has posted an article titled Thirty Years In: A Mid-Life Crisis for Guest
19. EVALUATION OF LOYALTY PROGRAMS IN THE HOSPITALITY INDUSTRY 19
Loyalty Programs? The article has raised an important question, which is “is the notion of
guest loyalty having a mid-life crisis?” To answer this, the article has introduced some facts
and figures showing a decline in the popularity of hotel loyalty programs. For instance, “in
2009, Forrester Research said that only 36% of business travelers said they were brand loyal,
compared to 42% in 2007.” “Hilton’s CEO said that guests were moving away from
‘conspicuous consumption’ towards a more ‘authentic’ experience” (“Thirty years,” 2011).
Another important question has been raised by this article, which is “does the
traditional concept of loyalty exist anymore?” The article stated that “the rise of online
comparison shopping, plus fierce competition among hoteliers to offer low rates, has watered
down consumers’ loyalty to a brand” (“Thirty years,” 2011). Also, the article has discussed
some defects in the points system. One of these defects is that points system makes the guests
in a comparison state. This assumption has been argued by Cornell Hospitality in a report
released in 2010 as it stated that “loyalty programs focusing on price-orientated rewards (for
example, ten thousand points pays for a weekend stay) encourages more comparison
shopping” (“Thirty years,” 2011). That means the guests split their choices between different
hotel brands to gain the most profitable benefit possible.
One more defect of points system is regarding to the cost of high-value rewards. The
same article has argued that the points system, sometimes, pushes the hotels to offer high-
value rewards in order to strengthen the bonds with their guests. These high-value rewards in
turn reducing the overall benefit for hotels. By the same token, hotels loyalty programs that
offer only one choice “‘points-for-cash’ encourage ‘games players’,” the article stated. That
means that such a sole choice creates what we can call them opportunities-catchers whose
relationship with the hotel ends-up with a short-term period. In other words, sign up, get the
reward, and you will never see me again. Such a behavior can exhaust the devoted budget of
loyalty programs.
20. EVALUATION OF LOYALTY PROGRAMS IN THE HOSPITALITY INDUSTRY 20
To conclude this section, as we have seen there are two views about the importance of
hotel loyalty programs: one view sees that hotel loyalty programs still lie in the attention of
guests and play a crucial role in their booking decision; the other view sees that these
programs became a part form the past and their popularity has dramatically retreated.
However, we can draw here a third point of view, which is not to keep those programs as they
are and not to fully dispense them. This vision is centered on creating a new generation of
loyalty programs wearing a modern suit that live up to the aspirations of the guests. This only
can be achieved by adopting new strategies, which the next section will provide some of
them.
Recommended Strategies for Hotel Loyalty Programs
As I concluded that hotel loyalty programs still consider an impressive marketing tool
and play a role that cannot be ignored, yet, they must be subject to further developments and
modifications. In this context, there are a number of strategies that can be applied in order to
increase the efficiency of hotel loyalty programs. The provided strategies have been derived
from several sources as following, Hanover Research, the Center for Hospitality Research at
the Cornell School of Hotel Administration, Ipag Business School, Hotel Executive.com,
Amadeus.com, Xtoles.com, and Go Group Booking.com. The following paragraphs will
provide the strategies of each source separately.
1. Hanover Research
Hanover Research has conducted a study in 2011 entitled Consumer Loyalty
Programs to identify successful loyalty program models. Although this study aimed to
analyze consumer loyalty programs in general, many of its findings and recommended
strategies can be applied to the hotel sector. Here is a summary of its findings:
Research suggests that the “optimal program structure has three tiers (top elite,
bottom elite, and no status) with a controlled proportion of consumer population in
21. EVALUATION OF LOYALTY PROGRAMS IN THE HOSPITALITY INDUSTRY 21
high tier” (p. 3). So, that means restructuring the tiers system to be consisted of only
three tiers instead of two or four tiers that in place in many hotels. That would
“maximize feelings of superiority” among all members, as the study stated.
“Rewards should provide a personalized incentive, i.e., something that the specific
customer will want” (p. 3). To do so, the study has suggested some strategies such as
providing rewards from a third party, providing multi-optional choices that allow
guests to choose from, or track guests’ purchasing habits to provide customized
rewards.
“Programs should provide targeted long-term goals and awards, rather than just
immediate gratification. However, instant prizes can be an incentive to join” (p. 3).
“Partnerships with other businesses or organizations can increase point collection
opportunities for customers and improve their loyalty to the program” (p. 3). In my
opinion, this is one of the most important strategies where it gives the guests a wider
space to collect or to redeem their points alike.
Successful rewards system should connect with the lifestyle of the typical guest
(“Consumer Loyalty,” 2011).
2. Center for Hospitality Research
The Center for Hospitality Research at the Cornell School of Hotel Administration
has conducted a study in 2014 entitled Assessing the Benefits of Reward Programs: A
Recommended Approach and Case Study from the Lodging Industry. The study has
concluded to an important strategy to improve loyalty programs, which is making a frequent
comprehensive assessment. That can be successfully done by building a solid communication
channels with the guests. Communication should include knowing guests’ attitudes toward a
program, measuring guests’ attitude change, measuring guests’ behavior change, and
conducting a complete ROI analysis (Voorhees, McCall, & Carroll, 2014).
22. EVALUATION OF LOYALTY PROGRAMS IN THE HOSPITALITY INDUSTRY 22
3. Ipag Business School
Ipag Business School of France has devoted one of its Working Paper Series (2014-
194) to analyze hotel loyalty programs. The paper is titled Loyalty Programs: A Study Case
in the Hospitality Industry and written by Lubica Hikkerova. The study defines the loyalty as
a commitment relationship between the guest and hotel; and this commitment is based in one
word trust, “trust and mutual commitment are determining factors for an enduring
relationship and building customer loyalty” (p. 3). Therefore, the best strategy to maintain
customer confidence is that the hotel should be keen to deal carefully with the factors of
“honesty, reliability, the reduction of uncertainty, credibility and goodwill” (p. 3).
The study added that when a loyalty program has been designed to, at the first place,
satisfy the guests’ interests “(both cognitive and emotional),” the intended results are
guaranteed. That includes creating an enduring and solid relationship with the guest (p. 3).
On the other hand, this study has recommended a similar strategy to what Hanover Research
recommended, which is not to limit rewards to something produced by the hotel; guests
adhere to loyalty programs that offer “additional benefits (monetary or in kind)” (p.4). Also,
another important strategy that would retain guest’s loyalty is to “create a value offer which
would make it difficult for the customer to find a substitute among competitors” (p. 5).
4. Hotel Executive.com
Hotel Executive.com, a hotel business review website, has posted an article entitled
The Importance of Hotel Loyalty Programs written by Jennifer Nagy (2011). In this article
Nagy has revealed a fact that many hotel loyalty programs are ineffective, “on average, only
20 to 40% of hotel loyalty programs members actively accrue points and work towards
redeeming them.” According to Nagy “hotels are losing on the opportunity to earn income
from approximately 60% of their loyalty program members.” Accordingly, in order to
increase the effectiveness of hotel loyalty programs, Nagy has advised the hoteliers to take
23. EVALUATION OF LOYALTY PROGRAMS IN THE HOSPITALITY INDUSTRY 23
two factors into consideration, applying the ladder system format and taking care of mediums
in which customers can interact with the program (Nagy, 2011).
To add more clarification on those two factors, the ladder system is a system that
improves rewards at each stage and ensures that there are rewards available to all members,
“no matter how frequent their stay or their point level.” So, the more members are able to
earn points, the more they will be able to redeem them for a higher-value rewards, “making
the ladder system an effective one at incentivizing loyalty.” Nagy suggested to refer members
of the highest points as the ‘elite members’. So, as these members are being highly satisfied
with the loyalty program, they no doubt will recommend the hotel to their friends, as well as
they will be “willing to pay up to 17% more at a hotel where they receive membership points
and benefits” (Nagy, 2011).
The other factor, which is the medium, is an important determinant of the success of
any hotel loyalty program. According to Nagy, “statistic shows that the most effective loyalty
programs will be available on- and offline.” She added that according to “a 2010 survey by
Loylogic, 58% of travelers prefer the Internet, followed by mobile (20%), in-store (11%),
SMS (4%) and Facebook (3%)” (Nagy, 2011). Therefore, any successful hotel loyalty
program should offer all mediums possible to give a wider ability to members to check their
status and redeem their points. These mediums should include hotel websites, mobile
platforms, and SMS. It’s worth mentioning that mobile platforms became a popular
interactive mediums for many people, so it is a wise marketing decision to develop hotel
applications based on these mediums.
Moreover, Nagy provided two more strategies that hoteliers should apply in their
loyalty programs: allowing guests to redeem their points as possible as earlier and offering
‘points + pay option’. “A study by Mintel showed that 47% of consumers were more
motivated to join a loyalty program if the program provided instant gratification rather than
24. EVALUATION OF LOYALTY PROGRAMS IN THE HOSPITALITY INDUSTRY 24
offering travel units that could only be earned over time with repeated stays.” In other words,
prompt redemption option induces guests to earn more points. “After the first redemption,
customers’ earn rates can increase by 8 times,” Nagy stated. In the same context, ‘points +
pay’ option can significantly increase the attractiveness of loyalty programs as it gives
members more flexibility to redeem their points. That is in turn “will ensure the long-term
success of your property’s loyalty program” (Nagy, 2011).
5. Amadeus.com
Amadeus.com in its article Thirty Years In: A Mid-Life Crisis for Guest Loyalty
Programs? posted in 2011, has emphasized that hoteliers should diversify the rewards of their
loyalty programs as “one size doesn’t fit all.” The essence of this assumption is that each
individual/traveler is appreciating a different type of rewards. For instance, a businessman
would prefer a priority treatments or an upgrade to his room, a family would appreciate a free
access to the hotel’s kids’ club or free tickets to local theme parks. Hence, hoteliers must be
able to identify each guest’s behavior and preference in order to make the rewards fitting to
all members as much as possible.
Also, this article has emphasized the importance of redesigning the tiers system where
it indicated that many guests feeling that tiers system is infeasible. For instance, many guests
see themselves incapable to earn the number of points needed to move up from tier to
another. This feeling makes guests frustrated and as a result decreases their loyalty. So, “tiers
need to be flexible, not static, to ensure that valuable customers are not slipping through the
net” (“Thirty Years,” 2011). The article has given one example of how the tiers system could
be flexible, “Hilton used its sponsorship of the Grand Prix to offer race-mad customers the
chance to book a room at a Hilton hotel near the track.” Thus, there is no reason to limit
rewards to the traditional partners such as airlines or banks.
25. EVALUATION OF LOYALTY PROGRAMS IN THE HOSPITALITY INDUSTRY 25
Finally, the article has suggested a new approach to reward guests called it the
‘hidden or unexpected rewards’. Some examples of these rewards provided by the article
including “remembering guests’ wedding anniversary with a complimentary bottle of
champagne or a surprise upgrade to a master suite when they check in.” In my opinion, this
approach is innovative and there are no obstacles to apply it where guests’ birthdays,
anniversaries, and other personal information can be easily tracked nowadays. An additional
advantage of this approach is preventing guests from comparing the rewards of a given
loyalty program to the competitors’ ones.
6. Xtoles.com
Xtoles.com in its article Throw Your Hotel Loyalty Program out the Window by
Remko West (2014), has emphasized on some strategies that already have been presented in
the previous paragraphs, which is, mainly, the availability of providing an immediate and
remarkable rewards. Some examples of these rewards provided by the article including “a
lower rate in the form of a discount bookable for members only, a guaranteed room upgrade,
complimentary access to specific onsite amenities, or a truly funny gift.” Also, the article
advised hoteliers not to complicate the process to getting access to any advantages. Finally,
the article has emphasized on the priority to communicate with the guests, especially through
social media channels.
7. Go Group Booking
Go Group Booking of Ireland, a website specialized in group business growth, has
posted an article in 2015 entitled Why Hotel Loyalty Programs are Good for Hotels? This
article aimed to emphasize the importance of hotel loyalty programs and how they consider
as important determinants in guest’s booking decision. The article has revealed that there is a
recent trend among hotels to offer valuable deals to new customers, whereas, at the same
time, raising the prices for existing customers. However, the article has advised the hoteliers
26. EVALUATION OF LOYALTY PROGRAMS IN THE HOSPITALITY INDUSTRY 26
to “concentrate on guest retention and less on attracting new guests. It makes far more sense
for hotels to generate more repeat business than constantly trying to drum up new business”
(John, 2015).
Lastly, to conclude this section, here is a summary of the recommendations and
strategies of all sources that aimed to increase the efficiency of hotel loyalty programs:
I. Programs’ structure, outlines, and general strategies:
Structuring the loyalty program on three tiers (basic, middle & top).
Partnering with other businesses or organizations (e.g. airlines, banks, credit cards
companies) in order to give members more options to redeem their points.
Making a frequent comprehensive evaluation to the loyalty programs is a smart
strategy to improve its quality.
Applying the ladder system that guarantees rewards to all members regardless of their
tiers or number of points earned.
Offering all mediums possible to maximize guests’ interaction became an essential
requirement.
II. Programs’ tiers:
Simplifying tiers system, either by expanding the period needed to achieve a higher
tier (e.g. two calendar years instead of one), or by decreasing points or nights needed
to achieve a higher tier.
III. Programs’ points and redemption:
Giving more flexibility to members in respect of earning points from allied partners;
not to limit earning points to hotel products (some programs allow members to
redeem their points form a third party but not to earn).
Allowing guests to redeem their points as possible as earlier and offering ‘points +
pay option’ is a must.
27. EVALUATION OF LOYALTY PROGRAMS IN THE HOSPITALITY INDUSTRY 27
IV. Programs’ rewards:
Providing a personalized incentive; something that would fit to and appreciate by
most of members.
Providing targeted long-term goals and awards, rather than just immediate
gratification.
Connecting rewards system with the lifestyle of the typical guest.
Providing untraditional rewards (e.g. monetary) or remarkable rewards (e.g. a
discount bookable for members only) is an innovative idea.
Surprising hotel loyalty members by providing them unlisted rewards (e.g. wedding
anniversary gift) may create lifetime relationship between the guests and hotel.
V. Guests relationship:
Building a solid relationship with the guest that based on trust and mutual
commitment should be the fundamental goal of any hotel loyalty program.
Focusing on providing valuable deals to existing guests rather than focusing on
gaining loyalty of new ones; retaining an existing guest is better and less expensive of
acquiring new one.
The Impact of Hotel Loyalty Programs on Guest’s Booking Decision
It is well known that the two fundamental factors that determine most of the hotel
booking decisions are price and location. However, some guests take other factors into
consideration such as hotel amenities or brand. Other guests may be influenced by other
guests’ reviews. In 2014, I conducted a small survey on 110 respondents entitled How Much
Do Online Hotel Reviews Influence the Travelers’ Booking Decision? The respondents were
asked to pick one out of four choices to provide an answer to this question, what is the main
factor influences your booking decision? Their answer was: hotel location (32.7%), room rate
(19.1%), costumers’ reviews (15.5%), and service provided (14.5%).
28. EVALUATION OF LOYALTY PROGRAMS IN THE HOSPITALITY INDUSTRY 28
But what about the impact of hotel loyalty programs in guests’ booking decision? The
following paragraphs will provide different views as an answer to this question. Market
Metrix has conducted a study in 2009 in order to figure out the ranking of each factor that
impacts guest’s booking decision. One measure Market Metrix used to appraise the success
of a given loyalty program is called “Loyalty Program Effectiveness”. “This measure
identifies the percentage of guests who say that their loyalty program membership was a
primary reason for choosing that hotel.” The following tables provide statistics about the
loyalty programs effectiveness (2009-2011), and segment winners (2010-2011), (Barsky,
2015).
29. EVALUATION OF LOYALTY PROGRAMS IN THE HOSPITALITY INDUSTRY 29
Back to the findings of this study which have proven that hotel loyalty programs rank
fourth in the top deciding factors when booking a hotel, “(the top three reasons are location,
price, and past experience)” (Barsky, 2015). As we can see in the previous tables, 32.7% of
the respondents said that hotel loyalty programs have influenced their booking decision on
where to stay. Moreover, the study has declared that this number has increased by almost 2%
in the past two years (Nagy, 2011). By the same token, a more recent study conducted by
Deloitte (2014) showed that “two-thirds of high-frequency travelers stay at the same hotel
brand for more than half their travel days, regardless of location” (Jennings, Giorgio, Murali,
& Goggin, 2014).
Another recent study conducted by Epsilon Strategic & Analytic Consulting Group in
2010 on 400 travelers asking them about the most important factor that impacted their recent
hotel bookings. The findings of this study have found that, in addition to the factors of price,
location, guests’ reviews and recommendations from others, hotel loyalty programs were
definitely a motivating factor in their booking decision. In fact, the study’ findings has
showed that more than eight in ten program loyalty members consider the hotel’s loyalty
program and rewards before booking their hotel (Nagy, 2011).
30. EVALUATION OF LOYALTY PROGRAMS IN THE HOSPITALITY INDUSTRY 30
In the same context, Dr. Jonathan Barsky (2015) in his article Hotel Loyalty Programs
Offered by Chains and Independents are Growing in Popularity, has confirmed the same fact.
Dr. Barsky said that “with improved benefits and guest-friendly rules, hotel loyalty programs
are increasingly becoming one of the primary reasons for selecting a particular hotel.” Also,
he declared that the ‘Elite’ membership percentage “rose sharply in 2011 (up 5%).” This is
good news to hotels, as Dr. Barsky said, but why? That is because the members of this tier
more likely to recommend their accommodation experience to their friends, spend more
dollar, and are less sensitive to price increases compared to other members (Barsky, 2015).
Although, the previous studies and articles illustrated a significant impact of hotel
loyalty programs in guests’ booking decision, there is a different view here. Deloitte, a firm
providing audit, consulting, financial advisory, risk management, and other services, has
conducted a survey in 2012 to get in-depth look at travelers’ behaviors with a focus on the
area of loyalty programs. The respondents were about 4,000 travelers with different travel
purposes. The findings of this survey have found that only “8% of travelers said they’re loyal
to the same brand.” (Nayer, 2013). The survey has concluded to two important points:
1. “Hotel loyalty programs have either little or no impact on travelers’ purchase
decisions, and
2. Roughly 30 percent, on average, of hotel loyalty members are “at risk” of switching
their preferred brand” (Nayer, 2013).
Online Travel Agencies (OTAs) and its Loyalty Programs
Brief History of Traditional Travel Agencies
First of all, let us take a general look at the history of travel agencies. The history of
travel agencies has passed by several stages starting from the nineteenth century to the
present. The story began by transportation sector, especially in the area of making
arrangements to transport travellers by using railways. Later, automobile sector started to
31. EVALUATION OF LOYALTY PROGRAMS IN THE HOSPITALITY INDUSTRY 31
adopt the same idea when the first car rental company has been launched. Soon, as air
transportation experienced rapid growth, airlines companies started to create their own travel
offices that dealt with passengers’ bookings and ticketing. A parallel growth has been
witnessed in the sector of the independent travel and tourism agencies. The primary goal of
these agencies was to serve as sales and booking channels for the airlines. Later they
provided hotel bookings and full packages for travellers (Joyce, 2013).
The History of Online Travel Agencies (OTAs)
The emergence of online travel websites is closely linked to the emergence of the
Internet. Following the advent of the Internet in less than 3 years, and specifically in 1992,
“Travicom created what became known as the first travel Website. This website, now under
the name Galileo, has combined with Apollo system to provide booking services that
included airlines, hotels, cruise bookings as well as car rental reservations” (Hockenson,
2012). Soon, several entrepreneurial projects tacked the footsteps of Travicom. At present,
there are hundreds of online travel websites. Also, a great shift in hotel websites sector has
started by the emergence of websites that specialized in combining multiple rates for a given
hotel in one place, such as HotelsCombined, Kayak, and Trivago.
Kevin May (2014), in his article How 25 Years of The Web Inspired the Travel
Revolution, has summarized the history of online travel websites starting from 1994 until the
present time. Based on this article, here is a summary of the most remarkable years in the
history of online travel websites.
1994, “Travelweb.com emerged as the first comprehensive catalogue of hotel
properties around the world.”
1995, “Viator Systems launched a travel technology business to help provide
bookings for destination tours and excursions via the web.”
1996, “Microsoft unveiled its attempt at an online travel agency, known as Expedia.”
32. EVALUATION OF LOYALTY PROGRAMS IN THE HOSPITALITY INDUSTRY 32
1998, Brent Hoberman and Martha Lane Fox created Lastminute.com.
1999, US site FareChase appeared on the scene with a different view on the online
travel shopping experience that paved the way to some of the most famous websites
such as Sidestep, Kayak, TravelSupermarket, Skyscanner.
2000, TripAdvisor has been founded.
2004, two of the most popular booking websites have been created in this year,
Priceline and Booking.com.
2008, the second wave of booking websites has started with AirBedAndBreakfast,
now known as Airbnb.
2011, HotelTonight, a “mobile app that allowed users to find a vacant room in a city
for the same day.” (May, 2014).
The Relationship between Online Travel Agencies (OTAs) and Hotels
As mentioned earlier, the primary goal of online travel websites is to serve as sales
and booking channels for airlines, hotels, and many other travel entities, so, it is basically a
partnership relation. This relationship is based on a mutual benefit where those travel
websites gain a specific commission from hotels, and at the same time, hotels gain a lucrative
increase in their revenues. However, the relationship between online travel agencies and
hotels varies from hotel or chain to another. For instance, it is logical that this relationship
would not be a robust relationship with hotel chains as these chains possess effective
marketing tools that making them not in need for intermediaries services. While these
agencies have a close relationship with independents hotels. “The average OTA share at
chain hotels is less than half that of independent hotels” (Trotter, 2015).
On the other hand, as these websites have eased the booking process and diversified
travelers’ options, they became highly demanded by travelers. That led to dramatically
increase the percentage of bookings made through a third party comparing by the direct
33. EVALUATION OF LOYALTY PROGRAMS IN THE HOSPITALITY INDUSTRY 33
bookings made with hotels. Hotel Scores in a report released in 2013 entitled, Online Travel
Agencies (OTA): Friend or Foe? has claimed that in the past five years, “online travel sales
have grown from $93-Billion to over $160-Billion, with hotel reservations accounting for
almost 40% of this total volume.” The report added, “Online travel agency (OTA) websites
are responsible for one-third of the online hotel bookings.” That indicate the importance of
these websites as distribution and reservation channels (“Hotel Scores,” 2013).
Unfortunately, the steady relationship between hotels and online travel agencies has
eventually turned into a chronic headache for hotels as the commission’s percentage they
have to pay to intermediaries is significantly increased. In order to decrease, or even avoid,
paying commissions to online travel websites, hotels is applying some strategies that would
convey guests to book their accommodation directly with hotels, especially in the area of
loyalty programs. Among these strategies:
Attaching guests to hotel loyalty programs by making rewards more attractive to
members.
Putting more effort to update official hotel websites.
Advertising special promotion that to be exclusively obtained though hotel websites.
Disqualifying guests to earn any points of their loyalty programs if their bookings
have been made through a third party.
However, it seems that applying such strategies did not solve the problem as the
primary desire of most of travelers is to get the best deal possible, regardless of loyalty
programs and points. To add salt to injury, many online travel websites have recently
launched their own loyalty programs. That put hoteliers in an unenviable situation as their
uneasiness seems endless. In fact, loyalty programs of online booking website seem more
flexible than hotel loyalty programs and, in my opinion, will certainly attract more travelers.
Wiz Weiss (2014) in her article, The Booking Battle: OTAs Break Into the Loyalty Market,
34. EVALUATION OF LOYALTY PROGRAMS IN THE HOSPITALITY INDUSTRY 34
has confirmed this fact when she said, “programs like Expedia Rewards and Orbitz Rewards
will continue to encourage travelers to make third-party bookings” (Weiss, 2014).
However, a question arises here, will hotels cut their relations with online booking
websites? The answer, in my opinion, of course not. That is because these websites remain an
important tributary to increase hotels’ profits. These websites “fill beds that could otherwise
be left empty” (Weiss, 2014). In the same context, Dorothy Dowling, senior vice president of
marketing and sales for Best Western International, confirmed that these websites are very
important to hotel business. “Although OTAs do claim a cut of the profit of each sold room,
in the end, the hotels are still making money,” Dowling added (Weiss, 2014). Now, let us
take a closer look at loyalty programs of online booking websites, and the views of experts
and specialists about them. Then, a short comparison between loyalty programs of online
booking websites and traditional loyalty programs will be provided.
The Loyalty Programs of Online Travel Agencies (OTAs)
As mentioned earlier, many online travel agencies (OTAs), have launched their own
loyalty programs. For instance, “Expedia + Rewards, a new credit card from Orbitz, and the
end of Chase Ultimate Rewards’ online shopping portal bonuses at a number of sites like
Travelocity and Priceline” (Kelly, 2014). The tactic of these loyalty programs is similar to
what hotels have employed in their loyalty programs, the ultimate goal of both programs is to
promote repeat bookings and attract more travelers. A as result, bookers “have plenty of
loyalty programs to choose from. And now, travelers are facing a challenge when it comes to
selecting a booking method to which to pledge their allegiance” (Weiss, 2014).
On the other hand, online travel agencies have innovated new methods to reward
guests when they join their loyalty programs. For instance, Orbitz announced a partnership
with Visa in which members are able to receive “an 8 percent return per dollar spent on hotel
bookings and a 6 percent return on airfare bookings” when they using any Visa card to
35. EVALUATION OF LOYALTY PROGRAMS IN THE HOSPITALITY INDUSTRY 35
purchase through Orbitz.com (Weiss, 2014). In my opinion, this is a very reliable way to
reward members, especially when we know that the members still eligible to collect “a 3
percent return per dollar paid for each hotel booking made on Orbitz.com” even they decided
not join the Orbitz Visa card. One more example, “Hotels.com Welcome Rewards hooks
members with the promise of a free hotel stay for every 10 hotel nights booked” (Weiss,
2014).
Do OTAs Loyalty Programs Compete Traditional Programs?
Now, let us consider some views of hoteliers and observers about these programs. Jeff
Low, chief executive of Stash Hotel Rewards, has a strong doubt about the effectiveness of
these programs. His doubt stems from that OTA programs are unable to provide “sought-
after benefits like complimentary amenities, which draw frequent travelers to traditional hotel
programs” (Weiss, 2014). As well as, he believes that “traditional programs are making
moves to stay competitive in the loyalty space,” (Weiss, 2014). By the same token, Scott
Mackenzie, creator of travel site Hack My Trip, said that “the status benefits of OTAs are
generally quite poor due to travel sites maintaining relationships with so many disparate
properties” (Weiss, 2014).
Also, Brian Kelly, founder of ThePointsGuy.com, said that “OTA loyalty programs
aren't challenging the traditional rewards system because they're not targeting business
travelers” (Weiss, 2014). Kelly added that one of the biggest disadvantages of the OTA
loyalty programs that the guest will not get “the same perks” as those obtained from hotel
loyalty programs. In the same context, Clem Bason, CEO of DealBase.com, looked at the
subject from another view as he sees that the precious offers provided by OTA loyalty
programs is “an unusual way to gain loyalty from customers who aren't already using their
channels.” In his opinion, these generous deals will eventually lead to make OTAs less
profitable (Weiss, 2014).
36. EVALUATION OF LOYALTY PROGRAMS IN THE HOSPITALITY INDUSTRY 36
In contrast, Tim Winship, editor and publisher of FrequentFlier.com, stated that there
is a big advantage of OTAs loyalty programs, which is simplicity. He added that the
simplicity of OTAs loyalty programs “may be the primary selling point: Traditional hotel
program policies are constantly changing, making it difficult for members to keep track of
how they can use their rewards” (Weiss, 2014). Also, David Doctorow, Expedia CMO and
Senior Vice President of Global Marketing, added one more advantage of OTAs loyalty
programs, which is the availability to redeem points faster than traditional hotel program.
“OTA program members can earn rewards by booking stays at eligible hotels, regardless of
the brand they choose — allowing for increased earning potential,” Doctorow added (Weiss,
2014).
Hotels Loyalty Programs vs OTAs Loyalty Programs
As mentioned earlier, both loyalty programs, traditional and online, are employing the
same technique and sharing the same goal, which is attracting more travelers and hotel
bookers by providing them a variety of rewards, which in turn leads into increasing profits for
hotels and online travel agencies alike. However, there are some differences between both
programs, especially in the area of rewards, redemption, and the percentage of members
enrolled in each program. The following table will provide a comparison between the loyalty
programs of hotels and loyalty programs of online travel agencies. Only the most important
differences is considered.
37. EVALUATION OF LOYALTY PROGRAMS IN THE HOSPITALITY INDUSTRY 37
Top Hotel and OTAs Loyalty Programs for 2015
Frist of all, there is no agreement among travelers nor experts and analysts, on what
hotel, chain or online travel agency provides the best loyalty program. That is because each
traveler has his or her unique requirements, and a given hotel that fits to a given traveler
could not fit to the other one. For instance, each one has a specific budget, prefers a different
style of accommodation, or considers hotel amenities the first factor in his or her booking
decision. Accordingly, arriving to full agreement among experts and analysts who evaluate
Hotel Loyalty Programs Online Travel Agencies Loyalty Programs
Generally targeting business travelers who
book in a frequent basis.
Generally targeting travellers who book one,
two or three trips a year.
Based and aimed to build a long relationship
with the guest.
Usually, based on a short relationship with
the guest.
More valuable rewards. Less valuable rewards.
Usually, there is a long procedure to redeem
points.
Redeem points faster.
Points are only redeemable in the same
hotel, or within the chain properties.
Points are redeemable in any booking at any
qualified hotel, regardless the hotel brand.
Usually, do not allow guests to earn points
from a third party.
Usually, allow guests to earn points from a
third party.
Complicated tiered system. Simple tiered system.
Members can directly amend or cancel their
reservations.
Usually, members are referred to hotels to
amend or cancel their reservations.
Have more members enrolled than OTAs.
Have less members enrolled than hotels.
“Among hotel loyalty program members,
(29 percent) claim membership in an OTA
loyalty program” (“Study: OTA Loyalty,”
2013).
Look more reliable in travelers’ eyes. Look less reliable in travelers’ eyes.
38. EVALUATION OF LOYALTY PROGRAMS IN THE HOSPITALITY INDUSTRY 38
these programs cannot be achieved as their evaluation is based on different views of travelers
and customers.
In the same context, each loyalty program distinguishes itself from another, either by
providing exclusive rewards and treatments, or even by targeting a particular group of guests.
For this, there is no single loyalty program would meet all guests’ requirements or fulfill their
needs. However, after reviewing multiple articles that evaluated loyalty programs, we can
rely on a report posted by U.S. News and released in 2015. In addition to the newspaper’s
credibility, it conducted this report based on a wide collection of independent opinions of
experts and users. “We believe that our unbiased approach makes our rankings more useful
than simply providing our editors' personal opinions,” the newspaper stated.
More importantly, “U.S. News identified 18 of the most prominent hotel loyalty
programs and evaluated them using a signature methodology that weighs factors such as
added benefits, the average number of paid nights required to earn a free stay and the ease of
earning and using rewards” (“Best Hotel,” 2015). Additionally, John Ollila (2015) in his
article, U.S. News & World Report Best Travel Rewards Programs 2015 – 2016, has given
comprehensive details on the methodology used by U.S. News in conducting this report.
Finally, it is worth mentioning that World Report and Fortune Magazine have adopted the
same report that conducted by U.S. News (Elliot, 2015). Here is the ranking of the top ten
hotel loyalty programs for 2015:
1. Marriott Rewards.
2. Wyndham Rewards.
3. Best Western Rewards.
4. Club Carlson.
5. IHG Rewards Club.
6. Leaders Club.
39. EVALUATION OF LOYALTY PROGRAMS IN THE HOSPITALITY INDUSTRY 39
7. La Quinta Returns.
8. Starwood Preferred Guest.
9. Hilton HHonors.
10. Hyatt Gold Passport.
On the other hand, in respect of loyalty programs of online travel agencies (OTAs),
there is no available ranking for these programs, which we can rely on. After reviewing many
articles in this regard, we can conclude that the best five OTAs loyalty programs are:
1. Expedia.
2. Hotels.com.
3. Orbitz.
4. Priceline.
5. Travelocity.
The following tables will provide more details about each hotel loyalty program of the
top ten. Following that, three tables comparing bottom, middle, and top tier elite status of six
out of the top ten hotel loyalty programs. Finally, five tables will provide more details about
each OTA loyalty program of the best five. To be noticed, all information of hotel loyalty
programs are derived from the hotel official websites. The comparison tables are derived
from an article titled The Best Hotel Loyalty Programs written by Scott Mackenzie, posted in
2015 by Travel Codex.com (Mackenzie, 2015a). Whereas, all information of OTAs loyalty
programs are mainly derived from OTAs official websites in addition to the following three
articles:
1. Online Travel Agency Loyalty Programs – the Basics, written by Brain Kelly and
posted in 2013 by The Points Guy.com (Kelly, 2013).
2. Comparing Online Travel Agency Rewards Programs, written by Scott
and posted in 2013 by Travel Codex.com (Mackenzie, 2013).
40. EVALUATION OF LOYALTY PROGRAMS IN THE HOSPITALITY INDUSTRY 40
3. Which Online Travel Agency Has the Best Rewards Program? written by Scott
and posted in 2015 by Travel Codex.com (Mackenzie, 2015b).
I. Top Hotel Loyalty Programs
A. Top Ten
41. EVALUATION OF LOYALTY PROGRAMS IN THE HOSPITALITY INDUSTRY 41
1. Marriott Rewards
Provider: Marriott International Inc.
Official Website www.MarriottRewards.com
Launch Year 1983
Program Based Points
Brands Number 16
Brands Name The Ritz Carlton, Edition, JW Marriott, Autograph Collection
Hotels, Renaissance Hotels, Marriott Hotels, Marriott Vacation
Club, Gaylord Hotels, AC Hotels, Courtyard, Residence Inn,
Spring Hill Suites, Fairfield Inn & Suites, Towne Place Suites,
Moxy Hotels, & Protea Hotels.
Number of Participating
Hotels
More than 3,800 Marriott hotels in 71 countries worldwide.
Membership More than 49 million members worldwide.
Tiers Number 3
Tiers Name Silver Elite, Gold Elite, & Platinum Elite.
Qualified Nights for
Each Tier
• 10 nights or more for Silver Elite;
• 50 nights or more for Gold Elite;
• 75 nights or more for Platinum Elite.
Most Notable Rewards
for Each Tier’s
Members
(Membership Benefits)
Silver Elite:
• Free Wi-Fi.
• Mobile check-in.
• 5th redemption night free.
Gold Elite:
• Priority Late Checkout.
• Weekend discount.
• 20% bonus on points for stays.
Platinum Elite:
• 48-Hour Guaranteed Availability.
• Platinum Arrival Gift.
• 50% bonus on points for stays.
Partnership to Earn or
Redeem Points
• Available with 30 airlines with Airline Miles Program.
• Available with many other partners, such as Hertz, Cruises
Only, Shop My Way, Diners Club, & Energy Plus.
Credit Card Availability Marriott Rewards Premier Credit Card; Marriott Rewards
Business Card; Canadian Marriott Rewards Premier Visa Card;
World Master Card by Marriott Rewards (UK).
Points Options • Available to buy, gift, & transfer.
• Available to donate to International Federation of Red Cross
and Red Crescent Societies (IFRC) & Hotels for Heroes.
Using Cash + Points Available
Immediate Redemption Available
Mediums Available Hotel website, mobile platforms, multiple social media means
including Twitter, Facebook, & Instagram.
42. EVALUATION OF LOYALTY PROGRAMS IN THE HOSPITALITY INDUSTRY 42
2. Wyndham Rewards
Provider: Wyndham Worldwide Corporation
Official Website www.WyndhamRewards.com
Launch Year 2008 after four years as the TripRewards.
Program Based Points
Brands Number 15
Brands Name Dolce Hotels and Resorts, Wyndham Grand Hotels and Resorts,
Wyndham Hotels and Resorts, Wyndham Garden, TRYP by
Wyndham, Wingate by Wyndham, Hawthorn Suites by
Wyndham, Microtel Inn & Suites by Wyndham, Ramada, Days
Inn, Super 8, Baymont Inn & Suites, Howard Johnson,
Travelodge, & Knights Inn.
Number of Participating
Hotels
Approximately 7,700 properties and over 668,500 rooms in 71
countries.
Membership More than 40 million members worldwide.
Tiers Number 2
Tiers Name Basic Membership, & Gold Status Membership.
Qualified Nights for
Each Tier
A minimum of 20 qualifying nights in one calendar year to
achieve Gold Status.
Most Notable Rewards
for Each Tier’s
Members
(Membership Benefits)
Basic Membership:
• Ability to earn and use points.
• Member discounts.
• Guaranteed best room rate.
Gold Status Membership:
• Ability to earn and use points.
• Member discounts.
• Guaranteed best room rate.
• Collecting bonus points known as Gold Status points.
Partnership to Earn or
Redeem Points
• Available with many North American airlines partners, as well
as international airline partners.
• Available with many other partners, such as Amtrak Guest
Rewards points, car rentals, gift cards, and other merchandise.
Credit Card Availability Wyndham Rewards Visa credit card.
Points Options Available to purchase.
Using Cash + Points Available with Go Fast.
Immediate Redemption Available with Go Free.
Mediums Available Hotel website, mobile platforms, multiple social media means
including Twitter, Facebook, & Instagram.
43. EVALUATION OF LOYALTY PROGRAMS IN THE HOSPITALITY INDUSTRY 43
3. Best Western Rewards
Provider: Best Western International
Official Website www.BestWestern.com/rewards
Launch Year 1988
Program Based Points
Brands Number 6
Brands Name Best Western, Best Western Plus, Best Western Premier, Best
Western Plus Executive Residency, Vīb, & Bw Premier
Collection.
Number of Participating
Hotels
More than 4,000 hotels in over 100 countries and territories
worldwide.
Membership More than 25 million members
Tiers Number 4
Tiers Name Best Western Rewards, Gold Elite, Platinum Elite, & Diamond
Elite.
Qualified Nights for
Each Tier
• After 10 qualifying nights or 10,000 points for Gold;
• After 15 qualifying nights or 15,000 points for Platinum;
• After 30 qualifying nights or 30,000 points for Diamond.
Most Notable Rewards
for Each Tier’s
Members
(Membership Benefits)
Best Western Rewards:
• Points never expire.
• Hotel stay rewards with no blackout dates.
• Exclusive guest service phone number.
• Point purchasing for award redemption ($10 per 1000 points).
• Best Western Rewards branded key packet upon arrival.
Gold Elite:
• Exclusive elite only offers.
Platinum Elite:
• Best available room.
• Welcome snack and beverage OR 250 bonus points.
Diamond Elite:
• Best available room.
• Welcome snack and beverage OR 250 bonus points.
Partnership to Earn or
Redeem Points
• Available with AAA Program; AARP Program; CAA
Program; Ride Rewards; Service Rewards.
• Available with many airlines partners.
Credit Card Availability • Best Western Rewards MasterCard;
• Members can also converting American Express Membership
Rewards points or Diner's Club Rewards to Best Western
Rewards points.
Points Options Available to purchase.
Using Cash + Points Available
Immediate Redemption Available
Mediums Available Hotel website, mobile platforms, multiple social media means
including Twitter, Facebook, & Instagram.
44. EVALUATION OF LOYALTY PROGRAMS IN THE HOSPITALITY INDUSTRY 44
4. Club Carlson Rewards
Provider: Carlson Rezidor Hotel Group
Official Website www.ClubCarlson.com
Launch Year 1992 under the name Look To Book, redesigned and renamed
under Club Carlson in 2011.
Program Based Points
Brands Number 7
Brands Name Quorvus Collection, Radisson Blu, Radisson, Park Plaza, Park
Inn by Radisson, and Country Inns & Suites By Carlson.
Number of Participating
Hotels
More than 1,370 hotels in operation and under development
with 180,000 rooms and a footprint spanning 110 countries and
territories.
Membership 5.5 million members (announced, 2010), (Garrido, 2010).
Tiers Number 4
Tiers Name Red, Silver, Gold, & Concierge.
Qualified Nights for
Each Tier
• 15 nights or 10 stays for Silver Tier;
• 35 nights or 20 stays for Gold Tier;
• 75 nights or 30 stays for Concierge Tier.
Most Notable Rewards
for Each Tier’s
Members
(Membership Benefits)
Red Tier:
• 5% discounts on food & beverages.
Silver Tier:
• 10% discounts on food & beverages.
• 15% point bonus
• Early check-in and late checkout.
• Elite member services line.
Gold Tier:
• 15% discounts on food & beverages.
• 35% point bonus.
• In-Room welcome gift.
Concierge Tier:
• 20% discounts on food & beverages.
• 75% point bonus.
• Free continental breakfast.
Partnership to Earn or
Redeem Points
• Available with more than 20 airline partners and purchases
through Club Carlson retail partners.
• Available with Carlson Rezidor partners with several car
rental agencies, including Alamo, Avis, Budget, & Enterprise.
Credit Card Availability Club Carlson Business Rewards Visa Card & Club Carlson
Rewards Visa Signature Card (both with US Bank).
Points Options Available to purchase.
Using Cash + Points Available
Immediate Redemption Available
Mediums Available Hotel website, mobile platforms, multiple social media means
including Twitter, Facebook, & Instagram.
45. EVALUATION OF LOYALTY PROGRAMS IN THE HOSPITALITY INDUSTRY 45
5. IHG Rewards Club
Provider: InterContinental Hotels Group (IHG)
Official Website www.ihg.com/rewardsclub
Launch Year 1981
Program Based Points
Brands Number 10
Brands Name InterContinental, HUALUXE Hotels and Resorts, Kimpton,
Hotels and Restaurants, Crowne Plaza, Hotel Indigo, EVEN
Hotels, Holiday Inn, Holiday Inn Club Vacations, Holiday Inn
Resort, Holiday Inn Express, Staybridge Suites, and
Candlewood Suites.
Number of Participating
Hotels
Over 4,900 hotels and nearly 724,018 rooms in nearly 100
countries around the world.
Membership More than 88 million members.
Tiers Number 4
Tiers Name • Club, Gold Elite, Platinum Elite and Spire Elite.
• Members can also become an InterContinental Ambassador
for an extra fee or a Royal Ambassador by exclusive invitation.
Qualified Nights for
Each Tier
• 15 nights or 20,000 elite qualifying points for Gold Elite;
• 50 nights or 60,000 elite qualifying points for Platinum Elite;
• 75 nights or 75,000 elite qualifying points for Spire Elite.
Most Notable Rewards
for Each Tier’s
Members
(Membership Benefits)
Gold Elite:
• Priority Check-in on guaranteed reservations.
• 10% bonus on base points.
• Exclusive Gold Customer Service Phone Number.
Platinum Elite:
• Complimentary room upgrades (Subject to availability)
• Guaranteed room availability (72 hours in advance)
• 50% bonus on base points.
Spire Elite:
• Exclusive Choice Benefit (receiving 25,000 points, or
upgrading a friend or family member to Platinum Elite).
• 100% bonus on base points.
Partnership to Earn or
Redeem Points
• Available with IHG's partners with more than 400 air carriers,
including American Airlines, Delta Air Lines and Alaska.
• Points can also be redeemed for gift cards, golf lessons, wine
tours and other offers.
Credit Card Availability IHG Rewards Club MasterCard.
Points Options • Available to buy, gift, & transfer.
• Available to donate to charity.
Using Cash + Points Available
Immediate Redemption Available
Mediums Available Hotel website, mobile platforms, multiple social media means
including Twitter, Facebook, & Instagram.
46. EVALUATION OF LOYALTY PROGRAMS IN THE HOSPITALITY INDUSTRY 46
6. Leaders Club
Provider: The Leading Hotels of the World Ltd. (LHW)
Official Website www.lhw.com/leaders-club
Launch Year The company has founded in 1928.
Program Based For annual fee
Brands Number N/A
Brands Name LHW deals with a number of luxury properties across the globe,
with numerous locations in the United States, the Caribbean,
Europe, Central and South America, Africa and the Middle East
and Asia.
Number of Participating
Hotels
430 hotels in 80 countries.
Membership Unknown
Tiers Number 2
Tiers Name Leaders Club & Unlimited.
Qualified Nights for
Each Tier
Only though an annual membership fee: $150 to join Leaders
Club & $1200 to join Unlimited.
Most Notable Rewards
for Each Tier’s
Members
(Membership Benefits)
Leaders Club:
• Special rate privileges available.
• Early check-in, late check-out considerations.
• Unique welcome gift for you at each Leading Hotel.
• Invitations to Leaders Club Events held near guest hometown
• Invitations to Leaders Club Events held at properties.
Unlimited:
• Complimentary gift memberships for your family – up to three
complimentary Leaders Club memberships to share with your
family.
• A Priority Pass card which provides access to over 600 VIP
airport lounges in over 100 countries.
• Access to one-of-a-kind specially-created experiences
• Guaranteed 4:00 PM late check-out.
Partnership to Earn or
Redeem Points
• Available with LHW partners such as airlines including Delta,
Lufthansa, Singapore Airlines, JAL and Jet Airways – giving
additional point and reward opportunities for members.
• Member can also take advantage of discounts and services
with travel partners, including Sixt car rental, Luggage Free (a
door-to-door baggage service) and Italo trains in Italy
Credit Card Availability Not available.
Points Options N/A
Using Cash + Points N/A
Immediate Redemption Available
Mediums Available Hotel website, mobile platforms, multiple social media means
including Twitter, Facebook, & Instagram.
47. EVALUATION OF LOYALTY PROGRAMS IN THE HOSPITALITY INDUSTRY 47
7. La Quinta Returns
Provider: La Quinta Holdings.
Official Website www.lq.com/retunrs
Launch Year Unavailable
Program Based Points
Brands Number 1+
Brands Name • The La Quinta Inns & Suites.
• Partnership with 26 luxury hotels and resorts, including the
Stowe Mountain Lodge in Stowe, Vermont, and the Resort at
Squaw Creek in Lake Tahoe, California.
Number of Participating
Hotels
More than 870 hotels in the U.S., Canada and Mexico with
approximately 84,000 rooms.
Membership Unknown.
Tiers Number 3
Tiers Name Silver, Gold, & Elite.
Qualified Nights for
Each Tier
• 10 paid nights for Gold;
• 25 paid nights for Elite.
Most Notable Rewards
for Each Tier’s
Members
(Membership Benefits)
Silver:
• Express check-in, late check-out.
Gold:
• 20% bonus points per dollar spent.
• Two free room upgrade certificates per year.
• Free faxes (up to 15 pages per fax).
Elite:
• 30% bonus points per dollar spent.
• Guaranteed availability when reserve 48 hours prior to arrival.
• No blackout dates for free night certificates.
• Automatic free room upgrade based upon availability.
• Welcome gift in-room.
Partnership to Earn or
Redeem Points
• Available with Airline miles including Southwest Airlines,
American Airlines and Alaska Airlines.
• Members can also apply points to magazine subscriptions or
gift certificates for retailers and travel partners, including
Amazon and Celebrity Cruises and many other local merchants.
Credit Card Availability La Quinta Returns credit card from Visa.
Points Options Available to purchase and transfer.
Using Cash + Points Available
Immediate Redemption Available
Mediums Available Hotel website, mobile platforms, multiple social media means
including Twitter, Facebook, & Instagram.
48. EVALUATION OF LOYALTY PROGRAMS IN THE HOSPITALITY INDUSTRY 48
8. Starwood Preferred Guest
Provider: Starwood Hotels
Official Website www.StarwoodHotels.com/preferredguest
Launch Year 1999
Program Based Points
Brands Number 10
Brands Name Sheraton, Four Points by Sheraton, W Hotels, aloft hotels, The
Luxury Collection, Le Méridien, Tribute Portfolio, Element
Hotels, Westin Hotels & Resorts and St. Regis Hotels &
Resorts.
Number of Participating
Hotels
More than 1,200 hotels in 100 countries.
Membership Over 11 million members (announced, 2010), (Garrido, 2010).
Tiers Number 3
Tiers Name Preferred, Gold, & Platinum.
Qualified Nights for
Each Tier
• 25 nights or 10 eligible stays for Gold;
• 50 nights or 25 eligible stays for Platinum.
Most Notable Rewards
for Each Tier’s
Members
(Membership Benefits)
Preferred:
• Credit earned toward elite status on paid and Award stays.
• Free Night Awards and Award Flights without blackout dates.
Gold:
• 4 p.m. late checkout.
• Welcome gift at check-in.
• Enhanced room at check-in, when available.
Platinum:
• Room upgrade at check-in, including Select Standard Suites.
• Complimentary in-room high-speed Internet access.
• Complimentary Sheraton Club and Executive-level privileges.
Partnership to Earn or
Redeem Points
• Available with Delta SkyMiles program.
• Available with many other partners that allowing members to
buy tickets to concerts and sporting events, and merchandise
from Amazon, Starbucks and iTunes, among other retailers.
Credit Card Availability Starwood Preferred Guest credit card from American Express.
Points Options • Available to buy, gift, & transfer.
• Available to donate to charity.
Using Cash + Points Available
Immediate Redemption Available
Mediums Available Hotel website, mobile platforms, multiple social media means
including Twitter, Facebook, & Instagram.
49. EVALUATION OF LOYALTY PROGRAMS IN THE HOSPITALITY INDUSTRY 49
9. Hilton HHonors
Provider: Hilton Worldwide
Official Website www.hhonors3.hilton.com
Launch Year 1987
Program Based Points
Brands Number 12
Brands Name Hilton Hotels & Resorts, Waldorf Astoria Hotels & Resorts,
Conrad Hotels & Resorts, Canopy, Curio, Doubletree, Embassy
Suites, Hilton Garden Inn, Hampton Inn, Homewood Suites,
Home2 Suites, & Hilton Grand Vacations.
Number of Participating
Hotels
Over 4,300 locations in 94 countries.
Membership 26 million members, (estimated, 2010), (Garrido, 2010).
Tiers Number 4
Tiers Name Blue Status, Silver Status, Gold Status, & Diamond Status.
Qualified Nights for
Each Tier
• 4 stays or 10 nights for Silver Status;
• 20 stays, 40 nights or 75,000 points for Gold Status;
• 30 stays, 60 nights or 120,000 points for Diamond Status.
Most Notable Rewards
for Each Tier’s
Members
(Membership Benefits)
Blue Status:
• Digital Check-In: choose room and customize stay from
mobile device up to 24 hours in advance.
• Late check-out.
• 2nd guest stays free.
Silver Status:
• 15% Elite Status bonus.
• 5th night free.
Gold Status:
• 25% Elite Status bonus.
Diamond Status:
• 50% Elite Status bonus.
• 48-hour room guarantee.
Partnership to Earn or
Redeem Points
• Available with number of airlines and rails companies in
multiple programs: My Way Earning Style, Points & Points and
Points & Miles.
• Available with vehicles from Hilton's car rental partners,
which include Alamo and National.
• Available to purchases with Hilton's retail partners, including
Nike, Vera Bradley and Samsung.
Credit Card Availability Hilton HHonors American Express and Citi Visa credit cards.
Points Options Available to buy & transfer.
Using Cash + Points Available
Immediate Redemption Available
Mediums Available Hotel website, mobile platforms, multiple social media means
including Twitter, Facebook, & Instagram.
50. EVALUATION OF LOYALTY PROGRAMS IN THE HOSPITALITY INDUSTRY 50
10. Hyatt Gold Passport
Provider: Hyatt Hotels Corporation
Official Website www.Hyatt.com
Launch Year 1981
Program Based Points
Brands Number 11
Brands Name Andaz, Grand Hyatt, Hyatt Centric, Hyatt Hotels, Hyatt House,
Hyatt Place, Hyatt Regency, Hyatt Residence Club, Hyatt
Zilara, Hyatt Ziva, & Park Hyatt.
Number of Participating
Hotels
587 properties.
Membership 10.2 million members (announced 2010), (Garrido, 2010).
Tiers Number 3
Tiers Name Gold, Platinum & Diamond.
Qualified Nights for
Each Tier
• 5 eligible stays or 15 eligible nights for Platinum Status;
• 25 eligible stays or 50 eligible nights for Diamond Status.
Most Notable Rewards
for Each Tier’s
Members
(Membership Benefits)
Gold:
• Free nights with no blackout dates.
• Late Checkout.
Platinum:
• Point bonuses.
• Guaranteed bed type.
• Best room available.
• Complimentary Internet access.
Diamond:
• Four suite upgrades annually.
• 48/72-hour guaranteed availability.
Partnership to Earn or
Redeem Points
• Available with Avis car rental agencies.
• Available with 12 participating M life resorts in Las Vegas.
• Available also with some airlines companies.
Credit Card Availability Hyatt Chase Visa credit card.
Points Options Available to buy, gift, & transfer.
Using Cash + Points Available
Immediate Redemption Available
Mediums Available Hotel website, mobile platforms, multiple social media means
including Twitter, Facebook, & Instagram.
51. EVALUATION OF LOYALTY PROGRAMS IN THE HOSPITALITY INDUSTRY 51
B. Comparing Bottom, Middle, Top Tier Elite Status
1. Comparing Bottom Tier Elite Status
52. EVALUATION OF LOYALTY PROGRAMS IN THE HOSPITALITY INDUSTRY 52
2. Comparing Middle Tier Elite Status
53. EVALUATION OF LOYALTY PROGRAMS IN THE HOSPITALITY INDUSTRY 53
3. Comparing Top Tier Elite Status
54. EVALUATION OF LOYALTY PROGRAMS IN THE HOSPITALITY INDUSTRY 54
II. Best Five OTAs Loyalty Programs
1. Expedia
Launch Year 2011
Earning and Redeeming • Hotels: 2 points per $1 on hotels and hotel packages.
• Cruises: With Expedia+ Rewards, members earn 2 points per
$1 on most major cruise line bookings.
• Flight + Car packages: 1 point per $1.
• Flights: 1 point per $5 – pretty dismal.
Tiers Number 3
Tiers Names Blue, Silver, & Gold.
Qualified Nights for
Each Tier
• Silver: 7 hotel room nights or $5,000 in eligible Expedia.com
spend in a calendar year.
• Gold: 15 hotel room nights or $10,000 in eligible Expedia.com
spend in a calendar year.
Most Notable Rewards
for Each Tier’s
Members
(Membership Benefits)
Silver:
• 10 % bonus on all base points earned and 250 bonus points for
eligible hotel or package stays at hotels in the +VIP Access
category.
• Special amenities at +VIP Access hotels,
• Priority call routing.
• Expedia customer care.
• Periodic special offers.
• Dedicated concierge services in Hawaii, Orlando and Las
Vegas.
Gold:
• 30 % bonus on all base points earned and 250 bonus points for
eligible hotel or package stays at hotels in the +VIP Access
category.
• Upgrades based on availability at 1,400 participating +VIP
Access properties.
Partnership to Earn or
Redeem Points
Available with many hotels, airlines, car rentals, vacation
packages and activities.
Credit Card Availability Business Rewards program exclusively for Chase Ink customers
Immediate Redemption Available
Mediums Available Website, mobile platforms, multiple social media means
including Twitter, Facebook, & Instagram.
55. EVALUATION OF LOYALTY PROGRAMS IN THE HOSPITALITY INDUSTRY 55
2. Hotels.com
Launch Year 2008
Earning and Redeeming For every 10 nights guests book through Hotels.com, they earn
one free night equivalent to the average nightly rate they paid
for the 10 qualifying nights.
Tiers Number 3
Tiers Names Basic, Silver, & Gold.
Qualified Nights for
Each Tier
• Silver: 10-29 nights within a membership year.
• Gold: 30+ nights within a membership year.
Most Notable Rewards
for Each Tier’s
Members
(Membership Benefits)
Silver:
• Priority customer service.
• A hassle-free guarantee.
• Early access to deals and promotions.
Gold:
• Special Gold status.
• Customer service line.
• 10% back on spending in the form of hotel night credits.
Partnership to Earn or
Redeem Points
Available with many hotels, airlines, car rentals, vacation
packages and activities.
Credit Card Availability Not available
Immediate Redemption Available
Mediums Available Website, mobile platforms, multiple social media means
including Twitter, Facebook, & Instagram.
56. EVALUATION OF LOYALTY PROGRAMS IN THE HOSPITALITY INDUSTRY 56
3. Orbitz
Launch Year 2013
Earning and Redeeming Customers earn “Orbucks” based on the kind of travel they
purchase.
Flights: members earn up to 2% of the cost of flights, excluding
taxes and fees, up to $5,000 ($50 in Orbucks) annually per
member.
Hotels: Members earn up to 5% (3% for Orbitz.com bookings,
5% for app bookings) of the amount paid to Orbitz for their
eligible hotel booking, excluding taxes and fees.
Eligible Packages: Members earn 1% of the cost of package
bookings collected by Orbitz for an entire package booking,
excluding any change or cancellation fees as well as any
additional charges collected by the hotel.
Tiers Number 2
Tiers Names Star Members and Super Star Members.
Qualified Nights for
Each Tier
• Star Members: qualify by booking 4 hotel room nights.
• Super Star Members: qualify by booking 12 hotel room nights.
Most Notable Rewards
for Each Tier’s
Members
(Membership Benefits)
Star Members:
• Special VIP line to handle travel needs.
• Concierge service.
• Help booking events and entertainment while traveling
Super Star Members:
• Restaurant reservations.
• Scheduling meeting spaces, and activities such as golf tee
times and other benefits.
Partnership to Earn or
Redeem Points
Available with many hotels, airlines, car rentals, vacation
packages and activities.
Credit Card Availability Orbitz Visa
Immediate Redemption Available
Mediums Available Website, mobile platforms, multiple social media means
including Twitter, Facebook, & Instagram.