The holiday season is when hotels really shine. Make the most of your time with us during this holiday season.

The desire for holiday happiness is greater than ever. That’s why AD Vantage has got you this blog on the best hotel loyalty programs to assist you in not only providing guests with a memorable experience.  Undoubtedly the best guest experiences would be an effectively marketing tool for your hotel, especially when the summer is already here.

All hotels aim to have loyal customers. Hotel loyalty programs are a great approach to guarantee this devotion because committed customers are less likely to migrate to competing brands. The best loyalty programs increase annual revenue from clients by 15 to 25 percent. 9. 37% of consumers, 28% of membership program participants, and 27% of loyalty program participants will spend more money with brands with which they have retail subscriptions.

One of the best ways to boost recurring business at your hotel is to establish a guest loyalty program. The advantages that the best hotel rewards programs might have for your property are outlined in this article.

Do loyalty programs work in hotels?

One of the businesses in India most affected by the COVID-19 pandemic is hospitality. The effect of Covid-19 on the tourism sector is a prime illustration of how much hotels must keep their patrons even when they are unable to travel any longer.

Hotel businesses need to prepare accordingly by coming up with some efficient loyalty programs and fair pricing packages and offers. No doubt, bookings and guest flow for your hotel will undoubtedly increase as a result of this. Start attracting visitors at a cheaper cost than you were previously charging.

In addition to encouraging repeat business, these initiatives also draw in new clients, boost hotel occupancy during off-peak hours, and, with careful planning, serve as an effective marketing campaign. Providing superior hotel loyalty programs than what your competitors will ensure that you draw in more visitors.

Reservations are encouraged via promotions and loyalty programs for potential customers. The biggest difference is in the approach. With the former, you should employ transient incentives to promote reservations. With the latter, you’re hoping to build a solid clientele of devoted consumers who will book more than once.

What type of loyalty program is suitable for the hotel?

Since every customer is unique, each one of them should receive a personalised hotel loyalty program service. A family could seek for a complimentary breakfast, whilst a business guest might seek out a free transport to the airport.

Even though exclusive events are lovely, prizes don’t have to be VIP to be worthwhile. Soft benefits like free Wi-Fi and reduced redemption costs are quite popular with tourists. Reservation discounts, unpublicized offers, hotel upgrades, welcome packages, early check-in, happy hour, spa savings, and similar hotel loyalty program strategies can be beneficial.

According to studies, free nights, hotel upgrades, reward redemption flexibility, speedy check-in, and other straightforward service bonuses are the top rewards that customers demand. In short, to be successful, it is essential to cater to the various needs of and increase guest motivation.

It is possible to bundle complimentary services with a rewards program. access to a location or service, for instance. This could not be a part of the cost but it enhances the other paid service.

The Best Hotel Loyalty Programs

Let’s check out some of the best loyalty programs for hotels.

Points Loyalty Program

Points loyalty programs are simple to obtain and utilise, and the redeemed points are flexible to use. According to this system, the hotel gives points to each of its visitors after each stay. Consumers can exchange their points for gift cards, discounts on future purchases, or freebies. The visitors can also use these points to book a luxurious discount on their subsequent stays.

For instance, Marriott offers the well-liked Marriott Bonvoy Perks customer loyalty rewards program. Points can be redeemed by travellers for complimentary hotel stays, meals, and other experiences. Personalization has played a major role in Marriott’s growing brand loyalty.

Coalition Loyalty Program

The participation of numerous companies in significant market segments that consent to share a common promotional currency, the member information gathered, and the costs necessary to run the program provide the most succinct definition of coalition loyalty.

Similar to the partnerships that Holiday Inn and Marriott Hotels had with Frequent Fliers, coalition programs give customers and clients more options for earning points as well as more options for spending their points and money on.

The members of the Marriott Bonvoy program are able to exchange their accrued points inside the hotel chain for Avios from one of the airline partners. Consumers of the Hilton Honors Loyalty Program can earn points in a variety of ways and use them to purchase products from 14 different brands. Even better, they can give their points to friends and family as gifts.

Paid Loyalty Program

With just one little exception: a participation fee, paid loyalty programs can mimic standard reward programs. A one-time membership fee or a regular subscription can be used to cover this.

A paid or premium loyalty program charges members a one-time fee or a recurring cost in exchange for exceptional advantages. Customers who have started making payments are possibly more likely to come back and take advantage of the benefits and the program since they have made an investment. Customer retention is the main advantage as customers would like to get back to you and get the most out of their commitment.

Paid programs are an excellent alternative to adding extra fees to the hotel stay and check in process. You can invest in providing your loyalty members with more worthwhile and intriguing advantages, something you wouldn’t be able to do in a free program.

Tiered Loyalty Program

Tiered customer loyalty programs are customer incentive methods that assist companies in motivating their customers to engage with all elements of the program in order to foster brand loyalty. Tiers encourage users to move up the levels in order to get the highest rankings and win the best rewards.

The majority of tier-based rewards systems have three tiers: a free or basic tier, a middle-of-the-road tier, and a high-value sort of premium tier for die-hard followers and high-spending guests.

For instance, the Marriott loyalty program, called Marriott Bonvoy, comes with six loyalty tiers. They are Member (free), Silver Elite, Gold Elite, Platinum Elite, Titanium Elite, and Ambassador Elite.

There are several membership tiers available at Leela hotels, starting with Gold, Platinum, Titanium, and Silver. Its membership perks include things like late check-out, upgraded rooms, experiences, local deals, and much more.

Customers feel values due to the exclusivity that comes from such a hierarchy, which also improves the bond between consumers and businesses.

Benefits of Hotel Loyalty Programs

The best hotel loyalty programs when tailor-made for the guests can create magic in customer retention and sales. The following are the benefits of loyalty programs for hotels that should be your main target while designing a loyalty program for your hotel business.

It Hikes Guest Experience

You can create enduring ties and contented clients with a hotel rewards program, increasing sales for your business. In addition to encouraging people to make reservations due to the benefits and prizes, the best hotel loyalty programs are helpful for luring new reservations from both corporations and tourists.

You Will See Increased bookings

Loyalty programs are helpful for attracting new reservations, both for business and pleasure, in addition to encouraging passengers to book based on incentives and perks. Corporate guests are more likely to be repeat and quality bookers, whereas leisure guests may be more likely to book a last-minute holiday because they have a discount or a voucher.

You can do Cost Control

When contrasting the costs of keeping a client with those of acquiring a new one, hotel loyalty programs are more cost-effective.

It cost five to twenty-five times more to acquire a new customer than to keep an existing one. According to the studies, profits elevate from 25% to 95% when customer retention rates increase by 5%.

Boosted Revenue Will No Longer be a Dream

Loyalty programs assist businesses earn revenue, boost referrals, and accomplish overall growth by driving client retention and encouraging repeat business. You may draw in frequent guests with the use of a reward program, because they prefer staying at hotels that provide benefits for repeat business.

Loyalty Programs = Leads

Loyalty programs may provide a wealth of information on guests to hotels. Hotels can get useful information about the profiles of their clients through the best hotel loyalty programs in India.

Hotels with loyalty programs are aware of the demographics, tastes, and nationalities of its patrons. They can be effectively utilized as a Customer Relationship Management (CRM) tool to enhance guest interactions, better foresee their wants, and improve point of sale techniques. All of this helpful information can be used by hotels to create highly targeted marketing campaigns for different categories of tourists.

You can use these statistics and preferences to build a useful guest profile that will enable you to provide specialized discounts and specialized benefits like upgrades.

A guest’s decision on which hotel to book a stay in is increasingly influenced by loyalty programs. It makes much more sense for hotels to increase repeat business rather than always seeking out new customers.

You can use the database obtained through a hotel loyalty program to compile a useful profile of your visitors, which will enable you to offer them specialised deals and other niche benefits.

The sustainability of your hotel loyalty rewards program will unquestionably be ensured by implementing a special marketing plan for these various profiles, which may include a tiered approach, delivering targeted incentives, and receiving regular feedback from your members.

You must collaborate with a loyalty partner if you want to create hotel loyalty programs in India. Consult with our loyalty experts in AD Vantage who specialise in hotel loyalty and customised rewards programs.