Next level hotel loyalty programs: what we learned at NAVIGATE
Pop quiz time!
What do TikTok, Instagram, and Snapchat have to do with hotel loyalty programs?
Ready to be surprised? The answer is instant gratification.
Globally, people are craving instant gratification. They seek it from their social channels — and hotel loyalty programs.
Your guests want personalized and instant loyalty perks rather than a blanket points-based loyalty program. Here are some numbers.
According to the 2023 McKinsey Report on Travel Loyalty, members of travel loyalty programs are becoming increasingly disloyal. Since 2021, the likelihood that a guest would recommend a hotel loyalty program to a friend or colleague has steeply declined.
However, they will recommend brands. Travelers, especially those between the ages of 18 and 24, are loyal to brands (not loyalty programs). These travelers are looking for room rates that are good value for their money and a brand with an excellent reputation.
At the NAVIGATE Miami and London conferences, we held sessions and great discussions on next-level loyalty and creating compelling guest benefits and perks. We even polled hoteliers in Miami and asked them what guests expected from loyalty programs. Discounts and room upgrades were the top two answers. Member rates, early check-in/late check-out, and F&B credits came last.
So what does this mean for how your hotel should approach loyalty programs? Let’s dive in.
What guests really want from a loyalty program
78% of guests are looking for immediate benefits rather than waiting for their points to build up. Hoteliers can design hotel loyalty programs to meet these expectations – if they know their guests and what will satisfy them. Putting the guest experience at the program’s core allows you to deliver unforgettable guest experiences through immediate personalized benefits.
How to redefine loyalty programs for today’s guests
Looking to move away from your current points-based program? Here’s a good starting point.
Take a closer look at your guests’ spending history, on-site reservations and activities, and retail/shopping activities. Building a guest profile with all these data points will guide you toward personalized recommendations and offers.
For example, let’s say the Avertine Hotel uses Revinate CDP, giving them access to Rich Guest Profiles for every guest, including historic stay data alongside spending history and other interactions across the guest journey. It shows that guest Caroline Bretell has stayed with the hotel four times, visiting the spa and dining on-site each time. Having that information at your fingertips allows you to personalize her loyalty perks and offer a discount at the spa or a credit for on-site dining — rather than perhaps offering her a discount for another amenity that she might not use.
According to McKinsey, 78% of guests and consumers are more likely to make a repeat purchase when offered a personalized experience. If you want your guests to come back, make sure that the offers and messaging you send to them are relevant to their interests. Looking at guests’ stay history or having them complete a preferences survey will allow you to gain insight into their interests and offer them a more personalized experience.
How Ennismore and Daniel Thwaites redesigned their loyalty programs
Ennismore shook up the current loyalty landscape when it launched its “Dis-loyalty” program. Carlo Del Mistro, Chief Digital Officer at Ennismore, presented the behind-the-scenes story to hoteliers at NAVIGATE London. The program encourages guests to “discover the new” and rewards them for first-time stays at hotels within the group and stays at newly opened hotels. Plus, it offers discounts on F&B, return stays, free coffee year-round, and access to various experiences and events. But in keeping with what guests want, they offer instant access to all benefits — no points or tiers involved.
Daniel Thwaites has also taken a modern approach to loyalty, putting the guest experience at the core of their philosophy. The staff at the properties uses Revinate’s Arrivals Report to identify repeat guests and reward them with perks upon check-in. Internally, the hotel calls this their “Together” program, and guests never even know they are members. This approach offers true instant gratification and “surprise and delight” to guests as they check-in and are rewarded perks for their loyalty. The result has been rewarding for the hotel, with an increase in NPS and overall hotel ratings.
We can help
At Revinate, we make it simple to start a loyalty program and reward your guests with personalized benefits.
Revinate Marketing’s loyalty features allow hoteliers to:
Automatically add guests to loyalty tiers based on confirmed stays within a time-boxed period, e.g. since 2019.
Automatically attach badges to guests in their Rich Guest Profile and in the Arrivals Report that includes their loyalty tier status.
Send automated campaigns notifying guests when the next loyalty tier is reached and set-up nurture campaigns to keep them engaged.
And remember, the more guest data you can collect and include in the Rich Guest Profile, the more personalized your loyalty perks can be, and the more likely your guests are to return. Learn more about how you can personalize guest communications with Revinate by requesting a demo.
About Revinate
Revinate is a direct booking platform that leads the hospitality industry in driving direct revenue and increased profitability.
Our products and our people combine to give hoteliers the superpowers they need to crush their goals. With Revinate, hoteliers shift share away from OTAs and drive tangible results across an individual property or a portfolio. Our industry-leading, AI-powered, customer data platform collects, unifies and, synthesizes data giving hoteliers a foundational advantage.
Hoteliers gain critical intelligence – guest lifetime spend, stay preferences, ancillary revenue, and more. With our Rich Guest Profiles database, hoteliers don't need to guess who their most profitable guests are, or how to drive conversions across email, voice, messaging, and digital channels.
Revinate's direct booking platform and omnichannel communication technology powers 900+ million Rich Guest Profiles across 12,500+ hotels to drive over $17 billion in direct revenue.
Sanjana Chappalli
VP of Brand Marketing and Communications
Revinate, Inc.
