Can loyalty programs Improve Hotel Revenues?

Even for the most complex Hotel organisations like Accor (see their loyalty site at: http://www.a-club.com/en/ ) where they have numerous different brands appealing to a wide variety of users, they can see the importance of offering a highly expensive loyalty offering. It is expensive to administer and is difficult culturally because they do not necessarily want their customers to know that they own brands as diverse as Formule1 (discount) and Sofitel (luxury); and yet, they promote their loyalty card at every reception I have ever been to.

From the consumer's perspective, they should get the ease of check-in recognition as well as rewards to enjoy in their private life or discounting business trips.

The greatest incentive to any loyal user is to be recognised by a smiling frindly face without any delay at the check in. This is not guaranteed even with the best loyalty schemes!

Yes it will improve revenue, make you aware of your loyal customers, and provide them memberships and points like, keep them in loop.  Also it will make them to visit again n again either to earn the loyalty points or to redeem the points.  Hence it is important to have a binding with customers with such useful programs and is proven over many business houses.

Definitely, Loyalty programs are structured marketing efforts that reward, and therefore encourage, loyal buying behavior — behavior which is potentially of benefit to the business...and in a business like hotels it will surely add value to your services and make customers feel that they are being well taken care of.

Oh yes they could easily improve the hotel revenues by the loyalty programmes...as Mr. Ahmed has put up with more value added features...and with more human touch...can attain greater customer satisfaction and can also create certain amount of loyalty towards the Hotel....

Yes, It can. the only catch here is what kind of loyalty program we are talking about? this matters a lot that what consumer is getting out of the loyalty program. also, as i am from an IT Industry, i would say knowledge combined with the loyalty program can benefit hotels more than anyone else.

e.g. you have a constomer who visits lets say over every 3 months. he is a regular business visitor. now everytime he comes he chooses a particular type of room, a particular type of breakfast/lunch/dinner. he needs lighter & Ash tray as he is a chain smoker. he needs alcohol etc ...

if these behaviors and spendings are gathered and analyzed, and than combined with the loyalty program, it will help a lot. i.e. give this customer what he wants even without him asking for it. like give him the kind of room he always takes up, may be put in a complimentory cigar or cigarette packat in his room may be a couple of beer bottles complimentry. that will definitely catch his attention if not at first go than definitely at the 2nd visit (after the data is gathered and acted upon).

Loyalty program is not just about giving points to people so that they feel the earnings, its a combined effort to make sure that the customer we are approching becomes loyal to our brand. i often feel that the loyalty program is misunderstood by just giving loyalty card/points to the customer.

Hi Adesh

One of the drivers to increase is the hotel revenues is loyalty programs, and other few to name them are customer services, flexiable pricing model, infrastructure, ambinece, marketing, staffs, location to major attraction points, additional services...