Hotels retool loyalty programs to remain competitive

Alternative accommodations and market consolidation push hotels to rethink their programs

Hospitality

By Allie Sanchez

Consolidation in the hospitality industry and the emergence of alternative accommodations has pushed major hotels to a corner where they seem to have little choice but to adjust to the changing times.

As they try to inspire continued patronage among clients, hotels are going on an industry-wide revamp of their loyalty programs, according to reports.

Hyatt, Wyndham, and Choice Hotels are some of the brands that have announced new programs over the past months in a bid to lure new customers, especially as travelers are showing a preference for alternative accommodations provided by the likes of Airbnb.

Consolidation and the increasing migration to online travel agencies are likewise eating into profits and market share.

“Loyalty programs have gotten too complicated. You have no idea what to earn or redeem or what it costs. It started with airlines but steeped into hotels,” observed Wyndham Rewards head of loyalty Noah Brodsky.

The Choice Privileges program is also stepping into other segments as it moves to capture market share. It is designed to attract millennials, who are in their 20s and 30s, whose increasing purchasing power is allowing them to spend more dollars on travel, explained Choice chief executive Steve Joyce.  

“We made an assessment that we wanted to significantly attract millennials and to build on our boomer base,” Joyce added.

He said that the group’s loyalty program is geared towards enabling members to earn benefits at a faster pace compared to programs of old.

 

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