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WSJ has a great article (paywall) about the shift in hotel loyalty programs for consumer. The programs are increasing the points needed for perks such free night stays, late check-out, and other amenities. There is also an emphasis on gaining points through hotel co-branded credit cards or purchases through partners. This makes business sense as co-branded credit cards can drive an average of $279 per account and partners pay or provide rev share for access to hotel customers. A number of chains have also moved to a dynamic rewards system similar to airlines. That means high demand destinations have higher point requirements to access perks. Chains are expanding their perks to soften the blow. Competition is fierce between the chains with special promotions for increased points accumulation speed if customers switch. Hotel loyalty is up 11% year of year with a co-branded credit cards as a significant driver. Ultimately, Balancing the exclusivity and access of loyalty against revenue is a constantly evolving process and will continue to be so for years to come. https://lnkd.in/ghk5V6fm

As the customer base grows, preserving the value and appeal of loyalty programs can be challenging for hotel operators, why? While hotels have increased their loyalty program memberships and expanded redemption options by partnering with airlines, car-rental and credit card companies, for many frequent travellers the actual benefits and value of these rewards have decreased. What is the reason for this diluted value of the rewards? Many hotels have adopted dynamic pricing, similar to airlines, where the points needed for a reward stay vary based on the property's popularity and travel dates. The result is that customers with elite status need more points to stay in a luxury or popular property. The temptation to explore alternative programs is strong. To avoid alienating their guests, hotel operators need to preserve the appeal and value of loyalty programs. Various strategies are employed to engage customers: Hyatt Hotels Corporation has chosen to maintain a transparent reward system with fixed charts, which can foster trust and confidence among its members and Marriott International diversifies its redemption options by allowing points to be redeemed for unique experiences rather than just hotel stays. Would this be enough to keep guests engaged? If not, hotel operators need to do more, leveraging and balancing the benefit they get from loyalty programs, namely the fact that booking made through those channels are not subject to commissions to OTAs, saving 15/20% on revenue.

Have you ever tried booking the same hotel at different times? Have you ever checked flight tickets for the same flight on different days? If yes, you might have noticed the pricing for the same service was different at different times. This is dynamic pricing used by businesses, especially in the hospitality and travel industries. Dynamic pricing is a strategy used by businesses where they adjust the price of products or services based on various factors in the real-time. This strategy allows the business to respond to the supply and changes in the market so that they can maximize their revenue. To read more on dynamic pricing - https://lnkd.in/dbRaJ5sB

If you want to be at the TOP of the list when hotels are assigning room upgrades, do this ⤵️  Book your hotel through Travel Advisors like us! ✨ At Anthology Travel, we’re preferred partners for just about any luxury hotel brand you can name. This means that our clients are at the TOP of the VIP list when our hotel partners are assigning who gets room upgrades (even over and above AmEx FHR bookings). The best part: this has no additional cost to you! Now… Does this *guarantee* a room upgrade? No, but it definitely increases your chances than if you had booked direct (or if you booked through third party providers like Expedia). Plus, you get additional perks like late checkout, dining credit and more. How can you say no to that!? Whether you want a new booking or have us take over an existing booking, let's connect! We’d love to get you that VIP experience. ✨

The Hotel Hierarchy Ever heard of it? I didn't either until I came into the travel industry. You won’t know it on the surface, but where you book and who you book your hotel with matters. Tier 1: Book with a travel agent who has industry connections. Tier 2: Book directly with the hotel on their website Tier 3: Book using Amex or another credit card Tier 4: Book online (Expedia, etc) Why does any of this matter? If you like getting surprise room upgrades, spa credits, and other special perks, you’re going to want to book with a travel agent, and if you want overall great service, you’re definitely going to want to be in tier 2. Tier 3 and 4 is where things get dicey — no refunds, no perks, getting bumped if the hotel is overbooked. The more you know, right? 1000 Mile Travel Group #hotels #alcoholfreetravel

📰 Exciting insights on the importance of transient travelers for hotel revenue! 🏨 Discover how Dayuse is transforming hotel operations by tapping into the dynamic needs of transient guests. Learn about the strategies and benefits driving revenue growth in the hospitality industry. ✨Check out the full article to understand why catering to transient travelers is a game-changer for hotels. #DayuseDaydream #DayuseForTravelers #Travel https://lnkd.in/gtiTnR-R

Why Are Many Hotels Standing in Their Own Way to Increase Direct Bookings? I often start my hotel search on OTAs. But before booking, I try calling the hotel directly—hoping for a better deal and to help them save on commissions. Surprisingly, nearly half the time, I’m told to book through the OTA without being offered anything better. No better rate. No incentive. Just a flat-out referral back to OTAs. This leaves me asking... why? - Are employees not trained on how valuable direct bookings are? - Could employees be too busy with other responsibilities to prioritize direct bookings? - Is management not aware of the lost revenue? Whatever the reason, hotels are losing money. Direct bookings allow hotels to keep more revenue, avoid third-party fees, and offer guests a more personalized experience. If you’re in hospitality, check your processes. You might be losing out on easy revenue. Have you experienced this? If you’ve tried booking directly, share your experience below!

Isn't it better to boost your direct loyalty strategy instead of letting the OTAs do the job for you? 🤔 Allow OTAs to manage payments and you'll give them a whole world of options that mostly benefit .... THEM! A few examples are travel credits, capacity to undercut you anytime and the ability to package extras on top of your room. Think twice before accepting the next "irresistible offer" by the OTAs. #hotels #loyaltyprograms #hoteldistribution #mirai

We just released a new study on 2024’s Best Hotel Rewards Programs. Here are a few key stats to keep in mind: ● World of Hyatt is the best hotel loyalty program overall, earning an average WalletHub Rating of 72 out of 100. ● The five best hotel rewards programs save their members an average of 10%. In some cases, members can save as much as 15% at select hotels. ● Six of the top nine hotel rewards programs allow members to redeem points for award nights at all brands/properties (Marriott Bonvoy, Choice Privileges and IHG One Rewards are the exceptions). ● Best Western is the only major hotel chain whose rewards points do not expire due to account inactivity. https://lnkd.in/dyp9AJc #travel #WalletHub #money

A modification in consumer manners might make some hoteliers consider that there are unclear lines within customer breakdown and that categories no longer aid a distinct purpose. A group of hospitality specialists, nevertheless, opine that it is not the case. The traditional breakdown is business and relaxation, which is additionally fragmented into transitory, corporate negotiated, group, wholesale among other. At a discussion organized by Hotel News Now in association with Pinkowski & Company, U.S. hotel sector administrators shared their viewpoints. Hoteliers should still be capable recognizing the original stimulus of what brought the visitor to a property even though it feels indistinct sometimes, said Kristie Dickinson, the Managing Director and the Executive Vice President of hotel asset management and the proprietor of CHMWarnick, the advisory services company. For the duration of the pandemic years, several hotels acquired any business to achieve occupancy, but Dickinson said that her squad can now more efficiently profit ‘with an eye toward optimization’ and channel supervision. Michelle Geiger, the Area General Manager at the Hyatt Centric Memphis and Hyatt Caption Memphis, envisions a blend of relaxation, business and group visitors concerning the two hotel brands. The post Hoteliers want division despite blurry lines in business and leisure travel appeared first on Travel And Tour World. Source link