AN ANALYSIS OF CONSUMER LOYALTY PROGRAMMES TOWARDS LONG-TERM SUCCESS AND GROWTH IN THE HOTEL INDUSTRY

AN ANALYSIS OF CONSUMER LOYALTY PROGRAMMES TOWARDS LONG-TERM SUCCESS AND GROWTH IN THE HOTEL INDUSTRY

Various hotels have been surviving in the hotel industry because they are able to get their income continuously from different travelers, visitors or customers who are with their hotel business all over the years now.  The frequent travelers or guests spend huge amount of money in their preferred hotel chains.    This is the reason that many hotels in the hotel industry are giving special treatment and loyalty programs to those customers who have been with them since from the start of their business.  By giving consumer loyalty programs is strong evidence that hotel chains are being thankful and grateful to the customers who are relentlessly patronizing their service.  The hotel loyalty programs has been begun in 1980 and it even developed and improved further nowadays by the hotel owners to attract additional number of new guests and travelers.

 In attracting and convincing existing customers as well as possible new hotel guests to book in their hotels for a longer time, hotel executives are giving the best effort to persuade them to stay longer in the hotel.  And, the best thing to do this is to offer them loyalty privileges through point’s accumulation for redemption such as redeeming free hotel rooms under certain conditions and many perks on the top of it. The loyalty club member’s habitat is a way to determine who are among their hotel guests who applied for club membership and frequently stay in their hotel progressively throughout the years.  Frequent travelers are more likely to be given club membership.  Of course, the club members are the people who have higher income than the non member hotel guests.  (www.adhp.org/pdf/AcustomerRelationshipManagementcasestudy.pdf)

 

 

 

Based on the selected hospitality literature, the average profile of a frequent hotel guest who joins the hotel loyalty program is a forty seven years old business man.  He usually books in the hotel for thirty one nights every year. He pays about $ 103 every night. 

Customer Relationship Management (CRM) is very important in hotel marketing strategy and giving loyalty program to the customers.  In the hospitality business, establishing a good business relationship with the customers will lead to a greater its growth of revenue.   However, it would not materialize without building excellent communication and goodwill to them.  In addition, loyalty program in the hotel industry provides more customers in the hotel business as well as it gives the business a more room of expansion and production since there are many existing customers as well as new customers are most likely want to experience the hotel privileges and perks  that the hotel chains that may offer to them.  Just take the case of Harrah’s properties in Las Vegas; they encourage their customers to stay within their Harrah’s various properties by making a business strategy of focusing on the increase of their earnings.  The hotel chains have made its expansion from 16 properties up to more than 40 properties all over the country.  They got various acquisitions, and these were included into the loyalty program for the loyal customers.

(www.adhp.org/pdf/AcustomerRelationshipManagementcasestudy.pdf)

In the hospitality industry, loyalty programs is seriously considered as one of the most effective Customer Relationship Management strategies in order to increase the revenue of the business as well as to provide more satisfactions from the part of the customers.  This is also an instrument to gather information from them about their other needs and expectations from the hotel itself and from the hotel management down to the hotel staff.  This is also a way of evaluating the customer service performance of the entire organization.  Actually, through loyalty programs, the people who work in the industry are given great chances and privileges to become better in their field, because they usually given feedbacks by their loyal customers about their performances and services to them.  As a matter of fact, loyalty programs have evolved as the years go by.  Let’s take for example the airline industry; it has done an excellent job in carrying out their loyalty programs with varied benefits and rewarding travel privileges to the travelers.  The long term customer loyalty programs gives long term return of investments to the organization.  In addition, the organization can learn and understand deeply the continuous educational program and training especially for the beginners in the hotel business.  But, the organization must seriously take into consideration the long term value of the customer before investing in him/her to the loyalty program.  All things must be clear and certain that the customer should have the ability to help the organization to attract more customers, to increase the organization profits and also can rely on his/her continuous patronage to the hotel products and services.

(www.adhp.org/pdf/AcustomerRelationshipManagementcasestudy.pdf)

 

References: 

www.adhp.org/pdf/AcustomerRelationshipManagementcasestudy.pdf

(www.adhp.org/pdf/AcustomerRelationshipManagementcasestudy.pdf)

(www.adhp.org/pdf/AcustomerRelationshipManagementcasestudy.pdf)

 

 

 

 

 

 

 

 

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