2019年培养客户忠诚度指南(英文版).pptx
The 2019 Guide to BuildingGuest Loyalty With or,Without a Loyalty Program,030608131923,Are Travelers Loyal to Hotels Anymore?What Is Brand Loyalty?Hotel Loyalty ProgramsThe Pros and Cons of a Loyalty ProgramHow to Earn Loyalty With or Without a Membership ProgramAnalyzing Guest Feedback to Understand Loyalty,INDEX,ARE TRAVELERS LOYAL TO HOTELSANYMORE?,Theres a lot of talk in the travel industry these daysthat travelers arent loyal to hotel brands anymore;its all about price and perks. But is this really true?Can hotels earn loyalty from guests without payingfor itand if so, how?In this guide we explore the loyalty debate fromseveral angles. Well look at the latest research andtrends, examine how some of the most popularbrands in the world today earn customer loyalty, andshow you ways to earn guest loyalty with or withouta loyalty program. Last, well discuss how hotels cananalyze guest feedback to understand what it takesto earn loyalty.Whether youre considering launching a loyaltyprogram, revamping an existing program, or lookingfor ways to build loyalty without a formal program,this guide will help you set your priorities, develop astrategy and optimize results.,What does loyalty mean today? Many times,hotels offer travelers instant discounts and benefitsfor joining their loyalty programeven before thetraveler has stayed with the hotel or brand. Is thisloyalty, or is it simply a bribe?Are Travelers Loyal to Hotels Anymore?,3,4,HOW DO YOUR COMPANYS LOYALTY EFFORTSCOMPARE?During our recent webinar, 12 Ways to Build GuestLoyalty, we asked attendees about their companysloyalty initiatives. Here are the results:Are Travelers Loyal to Hotels Anymore?,15%4%54%27%Wehavea loyalty programWe dont have a loyalty program but we recognize frequent guestsWeparticipate in athird-party loyalty networkWedo not recognizeguest loyalty on a consistentbasis,5,We also asked attendees how they feel about theircompanys guest loyalty efforts:,51%41%,5%,4%,Were doing well but still have room to improveThrilled. Were seeing incredible resultsAre Travelers Loyal to Hotels Anymore?,Needsa lot ofworkMortified,What Is Brand Loyalty?,6,WHAT IS BRAND LOYALTY?When we think of loyalty, we generally think offaithfulness to someone or something.“Loyalty connotes sentiment and the feeling ofdevotion that one holds for ones country, creed,family, friends, etc.,” according to Dictionary.Brand loyalty is faithfulness to one brand over others.It involves both purchase behavior and emotion. Loyalcustomers choose to purchase one brand over othersbecause they feel passionate about the products andservices or simply appreciate them. One of the truetests of loyalty is whether the consumer is willing topay more for one brand than for comparable brands.,7,Generally speaking, frequent guests are valuable tohotels and brands because they generate roomdemand, helping hotels to increase occupancy, ratesand RevPAR. Hotels know frequent guests better thanone-timers and can cater to their needs andpreferences, which strengthens relationships overtime. Furthermore, some loyal guests are brandadvocates who provide valuable feedback, writepositive reviews and refer other travelers.,HOTEL LOYALTYWhen it comes to hotels, travelers are consideredloyal when they choose to stay at one hotel overother hotelsor with a certain hotel brand overother brands.Not all loyal guests are of equal value, however. Aguest who stays frequently but doesnt spend a lotmay be less valuable than a guest who staysinfrequently but spends a lotand vice versa. And afrequent guest who books directly is typically morevaluable than a frequent guest who books throughan OTA. Part of determining how far to go to earnguest loyalty involves calculating their lifetime valueto the hotel or brand.What Is Brand Loyalty?,Hotel Loyalty Programs,8,HOTEL LOYALTY PROGRAMSA loyalty program is a membership program or cluboffered by a company to encourage and recognizerepeated purchases. In the travel industry, loyaltyprograms can be traced to 1981, when AmericanAirlines launched the AAdvantage frequent flyerprogram. Soon after, other airlines and hotelcompanies followed suit, with Holiday Inn andMarriott both launching loyalty programs in 1983.Today, many hotel companies offer some type ofguest loyalty or recognition program to recognizefrequent guests and big spenders with rewards,benefits and preferential treatment and toencourage them to keep coming back.In addition to offering special perks, many loyaltyprograms allow members to accumulate points orcredits based on the number of stays or room nightsor the amount spent during their stay. Points can beredeemed for free stays, products and services atmember properties or with program partners.,Hotel Loyalty Programs,9,Most loyalty programs are tiered; the more pointsmembers earn, the higher the tier they qualify for, witheach tier offering added perks and privileges.The basic premise is, “The more money you spendwith us, the more we will recognize and reward you.”For some brands, another key benefit of a loyaltyprogram is data collection. In return for perks andbenefits, travelers share data related to purchasebehavior and preferences. In turn, brands use the datato better understand and service their customers, tomarket to them, and to find more customers like them.,Hotel Loyalty Programs,10,HOW DO TRAVELERS FEEL ABOUT LOYALTYPROGRAMS?A 2018 report from Oracle, The Loyalty Divide:Operator and Consumer Perspectives, revealsvaluable insights into travelers attitudes and behaviortoward hotel loyalty. The research was conducted withover 13,000 consumers and 500 retail businesses,hotels and restaurants in Australia, Brazil, China, France,Germany, India, Mexico, the UK and the US.,Some of the findings include: 30 percent of respondents said they rarelyjoin loyalty programs, whereas 46 percentsign up only to select, relevant programsand 24 percent sign up to every program. 86 percent would be willing to completequestionnaires about their preferences aspart of a new program membership so thatoffers can be tailored to them.,Younger age groups in particular have apropensity to join loyalty programs, andthey say that their loyalty is growingcountering the commonly held belief thatmillennials arent loyal to brands.y HotelCollection,IS LOYALTY A MISNOMER?In the past, hotel loyalty programs were moreexclusive than they are today. Travelers were invitedto join only after having stayed a certain number oftimes. Today, many hotel companies invite travelersto enrol on the spot, often even before they havecommitted to making a booking.The companys objective is to create a long-termrelationship with the traveler, incite them to makea booking, and build their loyalty over timeall thewhile collecting valuable data. But this doesnt alwayshappen.Many hotel companies also offer instant benefits forjoining such as discounted rates, free Wi-Fi andinstant discounts.Hotel Loyalty Programs,A major motivation behind such offers is tocompel travelers to book directly rather than throughan online travel agency, saving on commissions. Manyhotels also offer disincentives to booking throughOTAs by withholding loyalty points and benefits.In a sign that these tactics are working, Hiltonreported an increase of 11 million in Hilton Honorsnew memberships in 2017, bringing the totalmembership to 71 million. Close to 95 percent ofmembers book direct, according to Hilton. (Skift,2018.)And yet by removing the barriers to entry, hotels havechanged the meaning of “loyalty” and“frequency”. Many travelers sign up for multiple pro-grams and have little or no loyalty to individual brands.Only frequent guests can be considered truly loyal,and added benefits are extended to elite tier mem-bers.11,Hotel Loyalty Programs,12,Lets be honest: hotel loyalty programmembers have become anything but loyal.Hotel brands are effectively paying travelers tojoin, and commoditizing the concept of loyaltyin the process. True brand loyalty theemotional connection between customer andcompany that directly drives repeat business,even at premium price points remains elusiveand incredibly difficult, for all travel brands.” Douglas Quinby, Analyst, Phocuswright, 2018.,13,2.3.,ARE YOUR GUESTS PRIMARILY LEISURE ORBUSINESS TRAVELERS?Loyalty programs tend to be more popular withbusiness travelers than leisure travelers, whotravel less frequently and find it harder toaccumulate points. In the Oracle survey, 30percent of leisure travelers said that earning orredeeming points does not influence their hotelchoice, whereas 82 percent of businesstravelers said that they are likely to book a hotelwhere they can earn points.HOW FREQUENTLY DO TRAVELERS RETURNTO YOUR DESTINATION?City hotels typically receive more repeat guestsand business travelers than resort properties,although there are exceptions. Look at yourdestination as a whole. Even if your propertydoesnt receive a lot of repeat guests, yourcompetitors might.,Many hotel companies struggle with whether or notto introduce a loyalty program. To help decide, askthe following questions:1. IS YOUR HOTEL INDEPENDENT OR PART OFA GROUP?Generally speaking, most large hotel groupsoperate some type of loyalty program, whereasmany independent hotels and small groupsdo not because they lack the volume offrequent guests and the resources required.For mid sized hotel groups, its a matter ofbalancing the pros and the cons (keep reading).The Pros and Cons of a Loyalty Program,THE PROS AND CONS OF A LOYALTYPROGRAM,The Pros and Cons of a Loyalty Program,14,4.5.,DO YOUR COMPETITORS HAVE A LOYALTYPROGRAM?When all else is equal, many travelers willchoose a hotel that offers loyalty points overone that does not. Its important to know whatyour competitors are offering.DO YOU HAVE THE RESOURCES?A loyalty program can be time-consuming andcostly. Do you have sufficient staffing andresources to manage the program over the longterm?,6. HOW EFFECTIVELY COULD YOU BUILDLOYALTY WITHOUT A FORMAL PROGRAM?Finally, would the resources required to operatea loyalty program be better spent in anotherway? There are lots of ways to earn, recognizeand reward guest loyalty without a formalmembership program. Well explore the optionslater in this guide.,ADVANTAGES OF A LOYALTY PROGRAMThe next step in determining whether or not tolaunch a loyalty programor to revamp an existingprogramis to weigh the pros and cons. Some of thekey advantages can be summarized as follows: GUEST RECOGNITION. With a loyalty program,you will have systems and procedures in placefor recognizing frequent guests and ensuringthat none are overlooked both within yourhotel and at participating properties. MORE BOOKINGS. The lure of instant perkscan be a powerful way to convert travelshoppers into bookers. Moreover, whentravelers are familiar with a brand, they aremore likely to return. Research from KalibriLabs found out that 40 to 60 percent of hotelroom bookings came from loyalty membersThe Pros and Cons of a Loyalty Program,15,(with the exception of economy brands, forwhich loyalty bookings were 13 to 15 percent).(Kalibri Labs, 2016.)LOWER COSTS. Its far less costly to attractrepeat guests than to convince travelers tobook for the first time. Furthermore, loyaltymembers are more likely to book directly thanthrough an OTA, especially when offered anincentive. The Kalibri Labs study found thatdirect bookers were on average 9 percent moreprofitable than OTA bookers. Even when hotelsoffered discounts for booking directly, netaverage rates were higher than OTA rates.,The Pros and Cons of a Loyalty Program,16,INCREMENTAL REVENUE. Frequent guestsare more likely to spend money on additionalservices too. In a survey from Triptease, 40percent of hoteliers said that regular directbookers are their biggest spenders.(Triptease, 2018.)RICH DATA. With a loyalty program, hotelscan build rich profiles of guests and tracktheir preferences, interests and spendingbehavior. When travelers join a program, theyare asked for consent to receivecommunications and promotional offers.This helps ensure compliance with privacyregulations like Europes GDPR.PERSONALIZATION AND RELEVANCY. Themore data hotels collect on guests, the morethey can tailor the guest experience,communications and special offers to meetindividual needs and interests. Loyaltymembers can be segmented by lifetimespend, and big spenders can be,flagged for VIP treatment.INCENTIVIZED BEHAVIOR. Hotels can useloyalty points to encourage and incentivizeguest behavior such as using the spa, baror restaurant, completing a guest survey,declining housekeeping services, using thehotels mobile app, and checking in and outonline.COMMUNITY. Hotels can create an elitedatabase of top loyalty members and invitethem to participate in focus groups, ask themfor detailed feedback and suggestions aboutservices and amenities, and engage them onsocial media and on property.GROUP AND CORPORATE BUSINESS. Travelmanagers and event planners are often moreinclined to choose a hotel that offersparticipants loyalty rewards, helping togenerate group, corporate and events business.,17,DISADVANTAGES OF A LOYALTY PROGRAMThe disadvantages of hotel loyalty program mayinclude: ADMINISTRATION COSTS. As mentioned, aloyalty program can be time-consuming andresource-intensive, requiring investments intechnology, training and labour to trackpoints and redemptions, answer inquiries andengage members. MARKETING AND OPERATIONAL COSTS.Loyalty discounts and incentives can increasemarketing and distribution costs. Extendingperks such as upgrades, amenities, Wi-Fi,food and beverage credits and earlycheck-in/late check-out can burdenoperations, displace revenue and increaseexpenditures. Hotels may extend discountsand incentives for bookings that would havebeen made anyway.The Pros and Cons of a Loyalty Program,And in extreme cases the costs ofattracting direct bookings may exceed thecosts of OTA commissions.COSTS OF REDEMPTION. Pointsaccumulated over time represent a liabilityon the hotels balance sheet. The costs ofredeeming rewards can be significant,displacing revenue on rooms that wouldotherwise be occupied by paying guests.Further, some members may accumulatepoints at less desirable properties andredeem rewards at more desirableproperties, creating an imbalance.,