Loyalty programmes for guest houses, hotels and hostels. Part 2

Mere presence of loyalty programme does not benefit hotel in itself. Client looks for positive emotions, not poor room at a discount. Discount itself will not increase client loyalty if one receives poorly cleaned room and rude personnel. In second part of article we shall talk about guest house loyalty programme types and give the examples of legendary loyalty programmes from giants of hotel business. In first part we addressed the issue of guest house loyalty programme cost.

loyalty programme guest house example

Who would take part in hotel loyalty programme?

Potential members are of two types: people on business trip and tourists. Price limits for them can vary. Some people stay in hostel during trips, others need suite only. Hotel loyalty programmes are mostly used by people on business trips and businesspeople, who prefer to stick to the certain comfort level. Still the tourists would like to have privileges as well. These two categories have one thing in common — high income (individual or corporate), allowing them to go abroad often. That is why most of the time hotel loyalty programme users are rather people of high income. Mailing clients with low income about promotions will not benefit, as they would not just have money to travel around country or abroad and visit your guest house again. As you can remember, loyalty programme goal is to stimulate client to make a purchase again — meaning in your case to visit your facility.

What is loyalty programme value?

Offer the discounts, accumulative bonus systems, discount cards (including e-cards), give free days of stay, air miles, special personal offers (on birthday, wedding). Keep in mind, not only bonuses are advantages of loyalty programme, but also basic things: good cuisine, high level service, original interior design, etc. Discount would not affect the level of client loyalty if one gets poorly cleaned room and rude personnel (sadly it often happens in Russian hotels) at this discount. We recommend to use the complex approach. For example, you offer big discount on stay and expect the client to be back just because of discount. That will not do. Sometimes it does, but extremely rare. But if you thank you client one week later after one's check out for one's choice of hotel, and remind your client about special privileges for regular customers after a while, chances to make this client the regular one will rise. Presence of loyalty programme itself is not a value for hotel or guest house. Clients wish to experience positive emotions, not pay to poor room at a discount.

Types of loyalty programmes for guest houses, hotels and hostels

Multilevel loyalty programme

This programme fits perfectly for various clients categories to compass: those who travel from time to time and sometimes forget about loyalty programme; those in business trip who pay for stay often and can get bonuses and high level programme privileges sooner. "Growth" line should be simple and convinient for that potential client turn into regular and loyal one faster (as soon as possible). Most famous and successful global hotel networks use multilevel loyalty programmes.

Accumulative loyalty programme

Its disadvantage is that it can take years to reach the goal (get the bonuses and privileges). First client must buy the service, then receive bonus on next stay payment. Still this programmes is easy to maintain and understand. Customer pays and gets points/coupons/discount card to use at repeat service purchasing. It is important to not overload the accumulative loyalty system with sophisticated bonus issue methods and twisted game mechanics.

Partner loyalty programme

Offer as a bonus not only the discount on your service, but also purchase stimulation from your partners (airlines, cafes, clothes stores, taxi, tour agencies). The same scheme works vice versa — clients of tour agencies receive the discount on stay at your hotel. Partner loyalty programme will be popular among people on business trips who need to rent a car/taxi, to use laundry service, delivery service or just spent evening in good bar in downtown.

Hotel loyalty programme types

Club Carlson Rewards

Hotel network Carlson Rezidor includes famous brands Radisson, Regent, Park Inn. Their clients enjoy unified accumulative loyalty programme Club Carlson Rewards, popular among travellers in USA and Europe. As per end of year 2018 this programme worked in more than 1000 hotels. Client accumulates points (Gold Points) and use them for prospective booking, or category growth in loyalty programme. Also the points can be spent on air tickets, film rental, online shopping in partner stores. Loyalty programme Club Carlson Rewards has four stages: Red, Silver, Gold, Concierge. Clients must meet the following limitations set: be adult, use accumulated points during two years, pay taxes.

Marriott loyalty programme

Marriott Rewards — most famous, even legendary loyalty programme for hotels with accumulative scheme. Marriott loyalty programme functions in Europe, Canada, USA and Asia. Almost 4000 guest houses in more than 30 countries around the world offer unique privileges for travellers. Frankly speaking, this programme has not become legendary at once. Four stages programme with discounts and promotions was launched in 1984: Basic (privileges for low budget travels), Silver Elite, Gold Elite и Platinum Elite (unique VIP-bonuses for luxurious holiday and business trips). Businesspeople have opportunity to change accumulated bonuses on work convenience: fast Internet in room, conference hall rental, dinners with partners in restaurants. To accumulate desirable Marriott Rewards points, one should stay in for holiday or business trip in one of Marriott hotels (or in branch guest house: Residence Inn, Renaissance, Ritz-Carlton etc.), travel by partner airlines and use Chase Visa credit card. To say upfront, only very wealthy traveller can become member of Platinum Elite; higher is privilege level, more money should be spent by guest.

Hilton loyalty programme

Hilton Honors loyalty programme members treat themself with bonuses and privilege in more than 4000 hotels and resorts in Europe and Americas. Hilton loyalty programme has four stages as well: Blue, Silver, Gold and Diamond. But one feature is special. To reduce costs of such large programme, hotel does not issue fixed amount of points for room payment. "Golden coins" sum is calculated individually (sometimes bonus value depends on country and even check-in time, guest category is also taken into consideration). In Hilton guest houses one cannot combine accumulated points with current discounts and promotions; points cannot be exchanged on free spa-procedures, meals and entertainment.

Launch of loyalty programme for hotel, guest house or hostel is essential! And as soon as possible if you still do not have this powerful tool to attract new clients and hold loyal customers. We offer the service for your loyalty programme with discount e-cards, cashback, reporting on issued cards, game technologies, bonuses and promotions. Users can see all information on their accounts in smartphone — we have created free mobile application, now used by thousands people in Russia. If you want to take your business on new stage and increase the average check — offer modern loyalty programme to your customers, that can be used with smartphone in one touch. You can order loyalty system branding as well. Information on costs and rate plans is available in price list. Contact us to get commercial offer and test VDcards loyalty system for free two weeks.

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