Webinar with Stay Wanderful, Revinate, and Travel Tripper. Recording available at https://youtu.be/o4zCQrA9vmU.
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In a digital marketplace where guests have millions of accommodation options at their fingertips, the hotel industry has had to rethink the concept of guest loyalty. This is especially true for independent hotels, which don’t have the traditional points-based structure that come with brand affiliation. But even that method is changing, as guests look for more instant gratification and personalization in their travels.
In this webinar, you’ll learn about new ideas and perspectives on guest loyalty, and how it’s evolving to meet the digitally savvy traveler of today. Executives from Stay Wanderful, Revinate, and Travel Tripper will discuss:
The changing face of guest loyalty for hotels
Moving away from points-based loyalty structures to instant rewards
Using guest data to personalize loyalty recognition
The importance of integrating customer loyalty programs into the booking process
3. The changing face of hotel loyalty
Moving away from points-based loyalty structures to rewards
Using guest data to personalize loyalty recognition
The importance of integrating customer loyalty programs into the booking process
Discussion: Is convenience the new loyalty?
Audience Q&A
Agenda
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5. What is a loyalty program?
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A loyalty program is a rewards program
offered by a company to customers who
frequently make purchases. A loyalty
program may give a customer advanced
access to new products, special sales
coupons or free merchandise.
6. Loyalty Program management
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OR
High frequency traveler Low frequency traveler
COLLOQUY’s biennial report on the scope of U.S. customer rewards programs, shows that American
households hold memberships in 29 loyalty programs spread among the retail, financial services,
travel and various other economic sectors, but are active in just 12 of them.
7. Proven to grow revenues and profits
Gather guest information
Understand guest preferences
Personalize offerings, increase engagement
Lower OTA dependency
Stay Competitive!
Cheaper to retain than acquire
Importance of Loyalty Programs
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10. No loyalty programs
Limited offerings
1-2% online conversion
Highest OTA commissions
Heavy OTA dependency
Talent/tech/budget constraints
Independent Hotels have unique challenges
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11. Independent Hotels NEED a loyalty program
Three year study of 25000 US hotels
Source of business & Occupancy Contribution
OTA growth highest
Brand.com also growing
Property direct declining
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12. Independent Hotels - What is your loyalty program?
Does it offer Instant Discounting?
Does it offer points?
Do your points expire?
Are rewards subject to availability?
Does it have blackout periods?
Does it offer free stays, free wifi or free drinks?
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13. Instant Gratification is the BEST BET
No points or membership numbers to manage
No operational headache for front desk, no expensive softwares or monthly points statements
Guest receives THREE FREE rewards one day prior to check-in, transforms guest experience
No rate discounting, only value adds; a step ahead of hotel brand and OTA loyalty programs
Grow direct, increase repeat business, lowers OTA dependency
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14. Results are IN!
Midsize, 4 star hotel in Manhattan
Results after using Stay Wanderful for 6+ months
Inclusion in ongoing marketing strategy/channels
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15. Personalization is key!
Data science enables smart
loyalty programs to spot
customer choice trends, so
relevant set of incentives could
be showcased to those
customers, to help drive direct
bookings
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17. How many travel loyalty programs are you a member of? Include all hotel, airline, OTA, credit
card, and other such customer programs.
A. 0-5
B. 6-10
C. 11-15
D. 16-20
E. 21+
Audience Poll Question #1
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18. Of those loyalty programs, how many do you actively redeem rewards for in a year? This can
include points redemptions, free stays or flights, upgrades, gifts, rebates, etc.
A. 0-5
B. 6-10
C. 11-15
D. 16-20
E. 21+
Audience Poll Question #2
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25. The Fundamental Purpose of Loyalty Programs
Las Vegas as an illustrative example:
• Customer loyalty was a key element in shaping
Las Vegas
• Casino hosts and dealers knew their players
names, what they drank, and what they played
• Customers who played enough with the casino
were given complimentary drinks, meals,
entertainment, and lodging
• This made customers feel special, appreciated,
and important which ultimately resulted in them
returning
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26. Nothing has changed, except everything…
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Customers still want to feel special, appreciated,
and important, BUT:
• The evolution of technology has accelerated the
pace and way customers expect to receive that
positive reinforcement
• Competition has grown fierce, not only from
other independent hotels, but the OTA’s and
major chains
• Integrating Loyalty with the online booking
process is necessary to compete in this ever-
evolving environment
28. Disadvantages of ignoring loyalty in the booking process
Guests have become accustomed to
shopping around
• If a guest can book a room directly
through the hotel or through an OTA for
the same price, but they get reward points
for booking with an OTA, where will they
book?
• When a guest has more incentive to book
through a third party, the immediate effect
is to the hotels bottom line. The long-term
impact is a hotels increasing dependence
on third parties to generate reservations.
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30. What can Independent Hotels do to Compete?
Deploy some of the same strategies as the large
chains:
• Provide exclusive value-Adds, discounts, and
packages for booking direct
• Provide elite status and on-property benefits for
guests who book direct
• E.g., Waterpark Resort that gives customers who booked
direct, access to the waterpark one hour before the
general public and those who booked through a third
party.
• To execute this strategy, your booking engine
should be capable of deploying special offers that
are not available on third party channels
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31. Loyalty comes from more than just a loyalty program
A hotel’s booking engine should make it clear that there is value in booking direct
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Rate Match
Automated Best Rate Guarantee
3 Free Rewards
Save 10%
Price Assurance
Exclusive Offer Landing Pages
32. Key Takeaways
The fundamental principles of customer loyalty are still in play and relevant to hotels today
Integrating loyalty programs with the booking process is a vital necessity for independent hotels to
compete with the large chains and third party providers
Ignoring loyalty in the booking process creates a self-fulfilling prophecy that results in either:
1. Loss of business to large chains who have loyalty programs, or;
2. Customers booking your hotel with an OTA that provides them with a loyalty program and
incentive.
Independent hotels can compete with the large chains and third parties by providing value,
exclusive packages, and discounts for guests who book direct
Guest loyalty comes from more than just a loyalty program, the booking engine must convey the
benefit of booking direct!
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34. Please send questions and comments to nancy@traveltripper.com.
Replay and presentation will be made available to all webinar registrants.
Thank You!
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Hinweis der Redaktion
I think there’s a distinction to be made between loyalty and rewarding people for frequent travel to your hotels
That’s to say, I believe only relationships create true loyalty
I might go back to a place that offers me a great reward time and time again, but I might only do that because they are buying my choice
If my mom was paying people to play with me, they’re not really my friends, right?
So - my point here, is that the result of true loyalty is preference without reward and the willingness to refer you to others
Here’s a picture of a lovely family at a resort in Mexico...ok...it happens to be my family in Puerto Vallarta
This particular resort takes service to the next level with a concierge per every 15 rooms, staff that’s serving you food or drink everywhere you go, and teen counselors that organize kid activities throughout the day and night
They were calling us by name from the first time they met us
By the time we left, they were giving us hugs
They fostered a relationship, and we are going to go back to that resort regardless of any reward they put in front of us. Giving us a reward will only hurt their cost of sale.
It was their focus on service and being attentive to guests that is driving that loyalty
So, the bottom line is rewards can help drive conversions - my colleagues have some fantastic products - however, rewards are not a substitution for a loyalty strategy - you need to develop relationships on property….and off property with timely and relevant communications
So, what do I mean by timely and relevant communications
As this picture demonstrates, there’s a small percentage of what you want to say that is actually what your guest is interested in hearing
There’s no greater teachable moment in the hospitality industry today than to convince everyone to stop email blasting their entire database
I don’t want to disparage all hospitality marketers - many people I talk to really get this point, but the majority of hoteliers we talk to are not segmenting their database at all
If you want to foster a relationship, you must be relevant, and that means segmenting your communications
Use your PMS to recognize what type of guest this is and then build out a portfolio of communications with those segment
What are the segments that we’ve seen move the needle the most?
Repeat or not
The most important thing you can say “welcome back”
That’s the theme of this entire webinar, recognizing and rewarding loyalty
So, start by cutting your communications by recognizing a return guest
Channel
Driving direct is the goal, so rewarding those that book direct and incentivizing those that don’t to book direct next time is our top recommendation as well
Family of not
Once again, this drives choice of image and perhaps offer
So, you have your segments, now you build a portfolio of relevant communications that fosters a relationship when the guest is not on property.
We recommend the following campaigns:
Pre-Arrival
Day of Welcome message
Bounce back 30 days
We miss you 300 days