New study says hotel loyalty programs aren’t working
A new study of over 4,000 business and leisure travelers by Deloitte’s Travel, Hospitality, and Leisure practice says hotel loyalty programs today have little or no impact on traveler’s purchase decisions and could even be driving consumers to brand-switch.
The study cited 30 percent of respondents as being "at risk" for switching their preferred brand. Nearly 50 percent, on average, of loyalty members’ annual hotel spend is not with their preferred brand.
Deloitte reports that hotel loyalty programs wanting to capitalize on the findings should:
· Encourage specific behaviors with unexpected rewards
· Make rewards personally meaningful
· Provide in-the-moment accessible rewards
· Be forgiving; don’t penalize behavior that loyalty programs encourage
· Reshape the customer experience
· Reinvest in capabilities and infrastructure
Gretchen Kelly
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