Over the period of last 3 years, Global Hotel Industry was severely hit by Global Recession with as much as 15% negative growth in most of the regions. But with encouraging signs of global economic recovery, the industry already has started the recovery. With the whopping growth of 23.2 % forecasted in Asia-Pacific region for Q1 2010 and remaining regions also showing positive growth, the global hotel industry is set to grow. Recovering economies are triggering travel is affecting the hospitality industry positively.
Global Hotel Industry Performance: Revenue Per Available Room (% Change)
Hospitality loyalty programs are designed to motivate guests to choose to stay at a brand’s hotel again and again. Most of the multiple segment operators like Marriott, Starwood, Hilton, Sheraton, etc also have a broad geographical distribution. They have the advantage of scales and have built up large loyalty programs over years. Hospitality loyalty programs have come a long way and may be seen as points-based frequency programs and recognition programs that enable hotels to capture guest preferences to enhance experiences. Despite such programs becoming commodities, having one is simply the price of entry.
Today’s loyalty programs are complex and require extreme agility to maintain profitability. To maintain guest interest, both accrual and redemption opportunities have to be presented at a large scale. Some of these strategies include:
Being part of large coalitions
Point-swapping agreements with other frequency programs
Increased tangible rewards
For better utilization of resources ensuring decent ROI, the organization needs to analyze tones of data that flow into its various systems.
Technology plays the enabling role here in enhancing property management systems or interfacing with external partner systems. Enabling technologies are complicated and expensive. Every organization would want to do different activities to attract “its type” of guests. It is important for a hotel to build the loyalty model that is the “best-fit” for their type of operations. Thus, it is important to choose a technology partner that has past experience and specialization within the Industry.
ITC Infotech understands the art of hospitality-our parent organization manages and operates some of the finest names in luxury hotels. We have also worked with some renowned brands and helped them in creating/upgrading loyalty programs.
If you would like us to undertake a study of your company and recommend a suitable loyalty solution, please feel free to write to us at contactus@itcinfotech.com.
Maximize customer retention,
especially high value customers,
to increase revenues
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