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Hotel Development Insider

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Boutique Hotel Loyalty Programs, Yeah or Nah?

Thankfully some IT genius created app's to keep up with all of our loyalty programs and numbers. I remember the days of having 5 or 6 plastic mini cards attached to your keys, or having a bunch of cards stuffed in every slot of your wallet. And, of course, you never could find the one you really needed!

Almost all companies now have some sort of loyalty program, especially within the hospitality industry. This is the reason we stay at only Marriott or Hilton branded properties, and/or only fly certain airlines. Loyalty programs matter. But, for small independent companies, like Boutique Hotels, these programs can be expensive and cumbersome for the owner. Once you add in the cost and time, it leaves the small business owner to really ask, "Is it worth it?"

In a recent article on HospitalityNet, Korosh Farazad discussed the subject and gave examples of what smaller companies are doing to keep up with their competition. Some key points from the article are:

  • Loyalty Programs rank 4th in deciding factors for guests looking to book a room

  • In 2019, more independent boutique hotels are beginning to align themselves with big chain hotel loyalty programs. IHG Rewards has been one of the most aggressive and successful brands to implement smaller, independent properties.

  • As an owner/operator, the most important thing about a loyalty program isn't repeat business. The most value gained is that you can begin to learn more about your guests through the insights the program provides. For example, you'll learn where they're from, what they like, their average spend, what they do during their stays, where they eat, etc.

Loyalty programs do create an added expense to your budget, however, if utilized correctly, one can easily increase their revenue because of the value the program can provide.

For the full article, click here:

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