Hospitality Industry Management Update: “Hotel Loyalty Programs: No Longer Just About Building up Points, Status”

“Turning casual visitors into active loyalists may be easier said than done, as travelers expect services traditionally considered perks to now be a standard part of the hotel experience.Loyalty Program For example, the study revealed that for frequent traveling millennials, free WiFi ranked with cleanliness and comfort as a top three hotel attribute—not a perk, but as an expected basic.”

Two-thirds (66 percent) of millennial high-frequency travelers rate “unique rewards” as an important factor when choosing a hotel loyalty program, compared with just 43 percent of their older counterparts, according to a new Deloitte study, Winning the Race for Guest Loyalty.

“Our study indicates that customers will wait and see which program will provide them with the greatest rewards before they start to behave loyally, but they will not wait for too long,” said Guy Langford, vice chairman, Deloitte LLP and U.S. Travel, Hospitality and Leisure practice leader. “The race is on for brands to provide swift gratification, particularly for the savvy millennial travelers, who are quick to share their positive experiences or broadcast their discontent over their social networks, and who are acutely aware of the rewards that come to loyal customers. As such, the brand that locks in the customer’s loyalty first and wins that race is the brand that wins that customer, and potentially their loyalty, for life.”

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