Benefits of applying loyalty programs in the hotel industry

Benefits of applying loyalty programs in the hotel industry

Image source: LS Retail.
In order to improve customers’ experiences and increase revenue, several businesses have started to adopt various strategies. From upselling to collaboration between brands, businesses are aware of the perks of adopting the strategies. Specifically, running a successful loyalty program is one of the most lucrative methods, since it ties directly with the customers.

There are some benefits of implementing a loyalty program in hotels as follows: improved customer experience, finding new clients and retaining current customers, gaining access to customers data, and increasing revenues.

Loyalty programs improve customer experience

By creating a loyalty program, hotels can directly enhance guests’ experience. Compared to the regular guests, those who are in the loyalty program now can enjoy great deals from hotels, such as some discounts and vouchers.

Improving guests’ experiences. Image source: Hotelogix.

Forbes revealed that 22% of loyalty program members say they are very satisfied with the level of personalization they receive in the programs, and 37% of customers are willing to pay to upgrade to an enhanced tier of a loyalty program. Therefore, hotels should implement strategies to improve personalized experiences for guests.

Loyalty programs help hotels find new clients and retain current customers

In order to form a relationship with customers, hotels start to adopt loyalty programs. Guests can earn and redeem points according to the services they use in the hotels. In exchange, guests will earn further benefits from collecting points, such as receiving discounts and vouchers.

Find new clients and retain current clients with guests. Image source: Search engine journal.
Loyalty programs help initiate a long term relationship with the guests and help hotels find new clients. By spending a few minutes to fill in the information, guests can later on enjoy future deals from hotels and get notifications to emails. Besides, loyalty programs can also keep the current guests in order to keep the guests returning to the hotels. These programs can be an incentive for guests to continue collecting points for hotels, which will increase the hotel revenue.

Loyalty programs can help hotels gain access to customers’ data

Access to guests’ data could be a sensitive issue nowadays. Especially when hotels need to collect their data to carry out the loyalty programs, access to guests’ information has always been a challenge. Therefore, applying loyalty programs can help guests willing to give data for the hotels. However, hotels are also responsible for keeping the guests’ information securely to avoid breach and selling to third-party companies.

Getting access to customers’ data through loyalty programs. Image source: Digital Marketing Institute.

Undoubtedly, applying loyalty programs can definitely increase hotels revenues. Forbes also revealed that 79% of consumers say loyalty programs make them more likely to continue doing business with brands. Aside from retaining the current clients, loyalty programs can improve hotel revenues by creating a brand for hotels.