April 16, 2024

Hotels Can Do Better than Points Based Loyalty Programs

My 522 points with a well recognized vehicle rental business have been unused for 24 months.

NB: This is an article from Revinate

During that time Ive leased several automobiles with other providers and driven countless miles across Europe– why didnt I use the points and what does that mean for hotels? Let me discuss.

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In the Beginning

Points based loyalty programs were created way back in the 80s since there was no data offered about guests and their behaviours so this was the very best opportunity at turning clients into repeat buyers and ultimately brand name advocates.

Over the years, points based loyalty programs have developed so much that for numerous major organizations like Starbucks, Accor and Hertz, they are an extension of the brand name.

What Does Chasing Points Actually Get You?

Each time I would check very first to see if I might utilize my points. 522 points would get me about half a day with an economy class automobile. Of course, I would find a more affordable supplier.

Find out more short articles from Revinate.

In 2019 I decided I would attempt and move up to the Silver tier of my car rental commitment program. To do that I had to rent a cars and truck 6 times in 1 year.

After reaching the Silver tier and 522 points, I leased cars and trucks to take a trip to the South of France from Amsterdam twice for a total of about 75 days. Ive taken excursion to visit the in-laws in The Netherlands several times and Ive leased vehicles in the UK when visiting my household..

The guest relationship cycle should be continuous. Its the task of the provider to ensure they have the ideal data to personalise, appreciate and reward their guests to keep the cycle going and to develop loyalty. The prospective to build guest loyalty is huge, and can be done at every phase of the guest journey. The points based system is dated, costly to run and simply is a lazy effort to develop commitment. It needs to not depend on the guest to find out how to use points to be rewarded. It depends on the hotel to determine how to use data to reward..

At the end of the day, understanding your guests and appreciating them goes much even more than points. Every interaction is a chance to build that bond with your guests.

Throughout the last 24 months, Ive gotten 24 monthly e-mails reminding me I have 522 points in my account. What a waste. The majority of people wouldve unsubscribed by now, losing them to any opportunity of becoming a repeat guest.

The reality that he understood my name, a bit about me and could offer me a tailored experience was much better than any points Ive ever earned..

Personalized Communications.

Guest Loyalty is Not Dead, Just Changed.

Its time to gather better information to drive demand. Know your guests and communicate to them proactively.

Each time I would check first to see if I might use my points. 522 points would get me about half a day with an economy class car. Throughout the last 24 months, Ive received 24 monthly e-mails reminding me I have 522 points in my account. The points based system is obsoleted, expensive to run and just is a lazy attempt to construct commitment. It must not be up to the visitor to figure out how to use points to be rewarded.

If they had the data they would understand that I have frequently taken a trip locally in The Netherlands and that I tend to go on holiday to France. With this details they could proactively connect and state, “Hey Will, going to France this year? If so, click this link and well give you a free upgrade”. Its not that hard …

In reality, the only benefit I ever received from chasing after points was not since of the 522 points, however due to the fact that I went back to the very same friendly, bearded guy at Schiphol Airport each time. After a couple of check outs and some chatting he started voluntarily upgrading me if possible..