The hospitality sector is a highly competitive market, which creates challenges for hoteliers in gaining customer loyalty. As travel and hospitality loyalty programs can prove to be a key driver in retaining customers and gaining patronage and loyalty, businesses should launch a robust loyalty program to target consumers in unique ways and offer more personalized experiences.
Boosting customer loyalty and driving a higher wallet share are among the prime focuses of the hotel industry. With the right travel and hospitality loyalty programs, your company can achieve that goal.
This post will take a look at the best travel and hospitality loyalty programs to give you a better insight into offers you can include in your program to foster customer loyalty, customer retention, and increased sales. We will also discuss why you should invest in a loyalty program for your travel and hospitality business.
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Why Travel and Hospitality Loyalty Programs?
The hospitality industry encounters customer demands and expectations that change at a moment’s notice; different types of consumers bring new challenges. Loyalty programs go a long way in filling this gap and boosting customer engagement.
This benefit of the travel and hospitality loyalty program is immeasurable.Offering varied, exciting rewards to customers can encourage them to come back to your establishment. It also helps in attracting new customers, which boosts hotel occupancy rate – even during the lean period. When a loyalty program is well crafted, it works doubly as an efficient marketing strategy on top of giving a sense of exclusivity to your customers.
Although the travel and hospitality industry is one of the fastest-growing sectors and has a vast customer base, gaining loyal customers requires a deep understanding of their expectations and what makes them feel valued.
A report from Kalibri says that a loyalty program is effective and works for the hotel industry. Based on statistics from the MIT Sloan Management Review, 80% of loyalty program members choose a brand over its competitors and recommend it to others.
Benefits of a Travel and Hospitality Loyalty Programs
Hotels that invest in loyalty programs gain the following advantages:
- Dealing with existing customers is less expensive than acquiring new clients. Philip Kotler, an American marketing author, says obtaining new client costs five times more than retaining a customer. Customers with rewards memberships can be kept for a longer duration.
- Trip Advisor reviews found that a loyal customer shares their experiences on social media and even recommends certain establishments to their acquaintances. This gives you the double advantage of attracting new eyes while saving on marketing campaigns. Loyal customers basically become free brand advocates.
- A loyal guest is likely to spend more than a new customer. The additional benefits through the loyalty program influence their behavior and build trust. They choose you and enjoy your services rather than buying from unknown resources.
Prominent Travel and Hospitality Loyalty Programs
Let’s look at some of the top travel and hospitality programs that have yielded remarkable results. You can explore the various features and design an ideal loyalty program that fits your travel business.
With more than 7,000 hotels participating in the program, covering the following countries – United States, Asia, Europe, Australia, Mexico, Central and South America, Canada, and the Caribbean – you can redeem points for free nights’ stay at Choice brand hotels around the world, along with airline miles and cruise vacations.
Best Western Reward Programs
Similar to Choice Privileges,it has 4,000 hotels in its network. The members can redeem points at Best Western hotels in 100 countries, including the United States and Canada. They can also redeem points for car rentals, flower delivery, and airline miles for specific carriers.
IHG Reward Clubs
IHG Reward Clubs has 4,000 hotels globally across more than 100 countries, including popular cities such as New York, Chicago, San Francisco, Shanghai, and London. The members can earn points on hotel stays, air travel, and everyday purchases. The points will expire if you do not redeem them in 12 months, though.
Get in Touch with Professionals to Design a Must-Join Travel Loyalty Program for Your Business
The key to winning loyalty lies in providing value to your customers. It is the result of a series of factors that build trust and improve their overall experience. The right loyalty program plays a significant role in influencing your customers’ behavior.
Now that you know a travel and hospitality loyalty program has the potential to boost your business growth, get in touch with one of our experts to discuss your requirements in launching a cost-effective and impactful loyalty program to benefit your bottom line.