July 14, 2017

Hotel loyalty programs must move beyond discounts


Many loyalty programs, especially those run by independent hotels, are based on simple discounts. These discounts are unlikely to be sustainable in the long run, and there’s a strong argument to be made that their usefulness is limited even in the short run.

While discounts may suit in the short term, creating quick bookings and raising your profile briefly, there are two issues with this approach:

- The financial pressure of discounting rates as a long term strategy

- Focusing on price alone as the main benefit, instead of creating a memroable value proposition

- Price alone will work short term, but in the long term it becomes stale quickly.

If your customer has nothing other than a good discount to focus on when they stay at your hotel, it won’t persuade them to come back. Instead, they will move onto a competitors who is offering them more benefits and a better experience for their money.

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