Are Loyalty Programs Really Necessary?

Are Loyalty Programs Really Necessary?

It is very common to see that airlines and big chains have tried to implement loyalty program as a tactic to obtain as much data as possible from their guests. On the other hand, you might find some hotels that won’t offer traditional reward cards o loyalty program and they are doing great! So, what’s the best way to go?

Maybe, you haven’t notice that these small hotels may not offer a typical loyalty or reward program but they have some exclusive benefits strategy, helping them with establishing communication with their clients.

But, what’s the psychology behind these programs? The prize! Let’s understand that people are continually looking for recognition and these types of programs give them this feeling. It is important to offer rewards that can set you apart from competition and that can match the profile of your returning guests.

However, if a company chooses not to have a formal loyalty strategy, it could be more difficult to collect your customer’s data. To have a well-structured program will be low cost and, easier in terms of gathering data.

Another advantage of these programs is the gathering of feedbacks. They can be a great tool to incentive your guests to have a better understanding of their experience – an excellent opportunity for luxury hotel brands to obtain all the required information for their marketing strategy.

On the other hand, is this a great strategy for small hotel chains? It could be that your brand can’t offer great benefits to your guests, but you can always create partnerships with bigger companies that are used by your clients on the daily basis, for example Starbucks or Uber.

Is a rewards program really necessary for your hotel?
Well, to create loyalty with your customers is; to have a loyalty program, not really. It all depends of the size of your chain and the type of guests you receive. It is well-known that companies who use this strategy have a better understanding of the customers that are attracted to their brand, hence they can create a more targeted marketing plan.

Another point to be considered is whether you are or aren’t in a competitive segment. It can be a great tool to drive the attention of customers and have control over their purchase behavior.

At the end of the day, it is all summarize in your marketing staff. These tactics weren’t considered in the past; therefore, it is important to have the right people in your company that can create and implement these newer types of strategies.



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