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What is an Innovative Loyalty Program? Does It Benefit Your Business?

by zoya aryaJanuary 16, 2023
Innovative Loyalty Program

All hotels aim to have loyal customers. The loyalty program hotel is a great approach to guarantee this devotion because committed customers are less likely to migrate to competing brands. The primary goal of such programs is to attract new customers to your hotel and keep them coming back.

The sustainability of your rewards program is unquestionably ensured by implementing a specific marketing plan for each of these many profiles, including a stratified approach, providing individualized incentives, and soliciting regular feedback from your clients.

What is a Loyalty Program for Hotels?

Like flying agencies' rewards programs, a hotel's loyalty program offers advantages for frequent clients. In essence, it's a marketing technique hotel chains use to draw in and keep customers by providing discounts and other perks.

What to consider while selecting a loyalty rewards program:

  • The number of properties the company owns: Generally speaking, more is better.
  • Locations of those hotels throughout the globe: Are they in locations you intend to travel to?
  • Requirements for achieving status: Will you need to be around a bit or a lot to get the benefits?
  • What advantages do you receive? Do we mean complimentary Wi-Fi or suites?
  • How simple it is to accrue and use points: How rapidly can you collect free nights?

Loyalty Program: Do It Affect Hotel Revenue?

According to studies from Johnson and Wales University:

“It costs five to twenty-five times as much to get a new client as it does to keep an existing one.”

According to Mr Fred Reichheld, the man of the net promoter score (NPS):

“Profits rise by 25% to 95% when client retention rates are increased by 5%.”

Numerous business travellers connect to certain hotels, giving the establishments significant commercial advantages. Since each hotel has a unique, tailored loyalty rewards program, they frequently stay at these venues.

With significant corporations involved, the hotels frequently have all their available rooms booked for a certain period. The stay term can occasionally be increased to a month! It presents a hassle-free possibility for cash collection for hoteliers.

What Advantages Do Guests Get From the Hotel Rewards Program?

The perks accorded to members of loyalty program hotel typically apply to those guests who have signed up for them. Along with standard rewards, it may offer service-based benefits like free in-room internet, no blackout periods, and immediate redemption for meals and drinks.

Hotel chains frequently have properties spread out across several regions. As a result, as part of their loyalty rewards program, they provide their privileged members with the choice of a complimentary stay at any of their hotels worldwide.

Why is It So Important to Have Hotels Loyalty Program?

Hotel loyalty programs play a crucial function when maintaining core company operations is insufficient to compete in the market. Instead, offering an "augmented service" becomes essential to differentiating a business from its rivals and influencing the impression of experience quality. Hotels benefit from loyalty programs in the following ways:

  1. Enhancing the Experience

Thanks to loyalty program, businesses may go above and beyond what customers anticipate by incorporating customer appreciation into their strategy. In addition to improving the value of the service, they may strengthen the emotional bond and sense of trust that customers have with the brand, which is a crucial aspect of the purchase process. Loyal clients are less inclined to file complaints or request freebies in the event of service failure.

  1. Brand Representatives

Loyalty program members can act as brand ambassadors by spreading the word to their friends, relatives, and other personal contacts. Customers may serve as a free marketing resource and aid in boosting reservations thanks to social media and the power of word-of-mouth marketing.

  1. Increased Income

The loyalty program hotel may improve customer retention and generate more profit from returning guests. According to studies, regular clients are more valuable than new ones since they are less price elastic, make more bookings, spend more on average per stay, and book more frequently. They are more likely to employ several hotel channels to support a multi-stream business management plan.

  1. Cost Management with Loyalty Program Apps

When contrasting the costs of keeping a client with acquiring a new one, hotel loyalty programs are more cost-effective. It might be seven times more expensive to acquire new clients than to keep existing ones.

  1. Boost Direct Reservation

Booking directly with the hotels loyalty program instead of using an OTA increases your chances of returning customers by three times. Loyalty programs can lower the hotel's acquisition cost per visitor and reduce OTA commission costs.

  1. More Robust Customer Database

Hotels may get helpful information about the profiles of their clients through loyalty program. They may be effectively utilized as a Customer Relationship Management (CRM) tool to enhance visitor interactions, better foresee their demands, and improve point-of-sale techniques.

Why HiMenus Loyalty Program UAE is the Best Choice for Your Business?

An innovative reward program created exclusively for the hotel industry is the HiMenus loyalty rewards program. They offer branded loyalty programs that are simple to use to gather valuable data, improve customer experiences, boost visitor counts, and generate repeat direct business. Through loyalty program apps with special member offers, promote return visits. A points-based scheme to acknowledge, engage and reward your visitors. Let’s invest in the future of loyalty program.

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