In an effort to land repeat customers (and increase direct bookings), loyalty programs are one of the most effective strategies out there. A study by Cornell University found that guests book 50% more rooms each year when they are involved in a loyalty program. That’s a lot of extra revenue!
Traditionally, these programs were the exclusive territory of chain hotels—which had the resources to create complex rewards systems and enough ubiquity around the world for frequent travelers to accrue and use points. But it’s 2017, and we don’t have to settle for outdated concepts. There are some excellent options for independent hoteliers to offer their own rewards programs and reap the benefits of improved guest loyalty.
It’s important to set up a program that considers your clientele and company culture. Think about the type of program that would best suit your business. Are you interested in a more traditional points-earned system? The new trend of instant rewards? Or maybe you want to come up with a creative blend of both!
Points Earned
The classic loyalty program is, of course, a points-based system. Customers earn points in proportion to how much they spend using a simple mathematical formula. When guests have earned enough points, they can be redeemed for free nights, discounts, etc. On their own, independent hotels have trouble effectively using this system because guests struggle to earn enough points to be worthwhile. Group schemes, such as Stash Rewards and Preferred Patron, mitigate this problem by creating a network of independent properties that benefit from a shared rewards system. In addition to providing your property with a loyalty program, group schemes can also expose your business to a wider audience.
