Everything you need to know about loyalty programs

Loyalty programs can be of great benefit to your hotel. However, you must pinpoint relevant rewards to offer to your members and optimize your program to keep them active.


Reasons for a loyalty program

Loyalty programs are well known for creating a win-win situation: Guests get rewarded for their loyalty, and, in exchange, the hotel collects guest data and increases its retention rate. Loyalty programs are proven to have a positive impact on member-guest stay frequency and hotel revenues.

Types of rewards to offer

Loyalty programs make it possible for guests to accumulate points to get free nights. However, there are other rewards you can offer your guests. As a hotelier, it’s up to you to survey guests and ask them what they want. Some guests may prefer immediate small discounts or other rewards rather than having to wait for a more substantial gift on a future stay. Immediate rewards you can offer guests are free access to the mini bar or a credit applicable to your spa or restaurant. You could also offer them a free drink at the bar, free late check-out or free movie rental. The point is that the guest should feel privileged to be a member of your program and view membership as real added value.

However, rewards need not be limited to your establishment. In partnership with local attractions, you can offer discounts or free admission to local activities such as winery tours, festivals, museums, spas or ski resorts. Moreover, you need not offer these rewards in exchange for points; you can choose to offer guests rewards simply because they hold privileged “member” status.

Making sure your program is effective

It’s a good idea to have a loyalty program, but it’s more important to keep your members active. If your members feel confused, disappointed or frustrated with your program, they’ll stop being active. To avoid this pitfall, you must communicate with your members clearly and frequently. Tell them how they can use their points or what reward they can receive during their next stay to encourage them to stay active. Also, the process to redeem reward points must be as easy as possible. To keep things simple, consider creating a member web portal where they can log in and view their member profile, points balance and the rewards available.

To make the most of the points offered to your member-guests, it might be a good idea to offer them points as soon as they purchase something in your establishment, such as dining at your restaurant or using your spa facilities. This way, you encourage your guests to take advantage of your various services and allow them to increase their points without having to stay at your hotel overnight. You could also offer points to guests when they book a stay directly on your website. In this way, you’ll increase direct bookings and let your members accumulate points.

When setting up a loyalty program, it’s essential to feature it on your website, ideally, with a dedicated webpage. Your reception staff should also be trained to promote it to guests.

Setting up a user-friendly loyalty program that offers members relevant rewards can have a significant positive impact on your operations.

Some articles that might interest you

12 May, 2016 | Claudine Vio

9 Ways to Boost Hotel Bookings and Increase Revenue

Tip 1: Solidify your hotel guest personas With the help of your hotel database, find out who your…
Read the article
28 June, 2016 | Nicolas Audiffren

8 great reasons to create a customer satisfaction survey

To make sure the service you offer matches your customers’ needs/expectations Where striving for quality is concerned, the…
Read the article
12 July, 2016 | Laura Yee Kui Choi

The 5 best ways to promote your hotel on a limited budget

1 - Create a captivating web experience One of the pillars of a solid marketing strategy is having…
Read the article
25 August, 2016 | Nicolas Audiffren

10 Digital Marketing Tips to Differentiate Your Hotel

1 - Embrace your specialization Your hotel should appear in the distribution channels most relevant to your market…
Read the article
24 January, 2017 | Sarah Trépanier

5 tips to make your hotel staff more productive

Give incentives to work harder One of the first things you can do to encourage your hotel team…
Read the article
26 January, 2017 | Catherine Daoust

6 tips to improve your customer service skills today

1. Nouez le dialogue avec votre public cible L’objectif du service à la clientèle est d’offrir une expérience positive à…
Read the article
| Catherine Daoust

4 ways to keep your hospitality staff happy

1 - Establish a working culture of learning and development The nature of the hospitality industry is that…
Read the article
3 April, 2017 | Sarah Trépanier

Why is it beneficial for hoteliers to train their staff?

1 - Boost their performance Investing in training isn’t done simply for the employee’s benefit — it can…
Read the article
23 May, 2017 | Karine Thibeault

Hotel management software: what about cybersecurity?

Physical security Should your establishment suffer damage from a fire or water infiltration, it would be unfortunate to…
Read the article
12 July, 2017 | Nicolas Audiffren

8 easy steps to boost direct bookings

Augmentez vos réservations directes en 8 étapes faciles 1. Make the reservation process easy To encourage people who…
Read the article
3 August, 2017 | Claudine Vio

4 booking engine attributes that boost conversions

User-friendly and intuitive The easier and more intuitive the booking experience, the more likely conversions will result. Therefore,…
Read the article
7 March, 2018 | Sarah Trépanier

How to attract business travellers

Technology is essential C’est simple, pour inciter les voyageurs d’affaires à séjourner dans votre établissement, celui-ci doit être…
Read the article
24 April, 2018 | Karine Thibeault

6 Qualities of a Good PMS

Les 6 qualités d'un bons PMS hôtel A good PMS must: Be easy to use Your PMS must…
Read the article
15 May, 2018 | Claudine Vio

Let automation lead the way

Laissez-vous guider par l'automatisation The booking process Automation begins with booking. When booking is done online, the booking…
Read the article
21 June, 2018 | Karine Thibeault

With PMS integration, you have the luxury of choice

Why is integration capability important? An establishment’s hotel management system (PMS) lies at the heart of its operations. While…
Read the article
26 June, 2018 | Karine Thibeault

5 tips to maximize your property management software

1. Training: getting to know your PMS When implementing or changing your hotel management system, proper training is key. As…
Read the article