A hotel loyalty program or hotel reward program is a loyalty program typically run by a hotel chain. It is a marketing strategy used by hotel chains to attract and retain business at their properties. The program works to entice customers, especially business or other frequent hotel guests, to favour that particular brand or group of hotels over others when selecting a hotel by offering discounts or privileges, such as upgrades.
A hotel loyalty program will generally be free to enter and may have multiple levels. Newly joined members may be offered some privileges, such as free Internet, to encourage them to join the scheme. This ensures that the guest has an incentive to sign up for the scheme, even if they do not anticipate reaching the next rewards level. In addition, joining the scheme and staying nights in a hotel will typically accrue points which can be redeemed for free nights in hotels (the number of points required to stay a night may vary based on the normal cost of the hotel and on the day of the week or season) and other benefits, such as a welcome gift, free parking, discount pricing, greater points earning and buying power, and/or no blackout dates. Hotel loyalty programs also serve as social platforms for members, helping them to build a collective identity and collective self-esteem. Hotel brand managers may effectively develop a loyalty program that cultivates long-term customer-brand ties by understanding a fundamental psychological process.
Higher levels in the scheme will typically offer a combination of benefits including free room upgrades, bonus points, rolling 24-hour check-in, and free access to more of the hotel's facilities, such as buffet breakfasts, executive lounges, spas, and other features. Mid-tiers and higher levels are typically reached by staying a certain number of nights during the membership year, or by obtaining a credit card or charge card associated with that hotel chain or one of its partners.
The largest hotel chains operate reward programs, including Hilton Worldwide, Hyatt, Marriott International, and Wyndham Hotels & Resorts. However, some luxury brands, such as Four Seasons Hotels and Resorts, have eschewed the concept, saying they prefer building loyalty through personalised service.
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