Hotel loyalty program
A hotel loyalty program or hotel reward program is a loyalty program typically run by a hotel chain. The hotel loyalty program is a key strategy from the hotel chain in attracting business to its properties.
A hotel loyalty program works to entice business travellers or other frequent hotel guests to favour that particular brand or group of hotels over others when selecting a hotel.
A hotel loyalty program will generally have multiple levels. Newly joined members are offered some privileges, such as free internet [1] to encourage them to join the scheme. This ensures that the guest has an incentive to use their loyalty card, even if they do not anticipate reaching the next rewards level. In addition, joining the scheme and staying nights in a hotel will typically accrue points, which are similar to frequent flyer miles, and can be redeemed for free nights in hotels (the number of points required to stay a night may vary based on the normal cost of the hotel, and on the day of the week or season).
Higher levels in the scheme will typically offer a combination of benefits including free room upgrades, bonus points, rolling 24-hour check-in,[2] and free access to more of the hotel's facilities, such as buffet breakfasts, executive lounges, spas, and other features. Higher levels are typically reached by staying a certain number of nights during the membership year.
The world's largest hotel chains, including Marriott, Starwood, Hyatt, Hilton, and others, all operate reward programs, however some luxury brands such as Four Seasons have eschewed the concept,[3] saying they prefer building loyalty through personalised service.
Links to other loyalty programs
Credit cards
Most major hotel loyalty programs advertised to one or more branded credit cards. By spending on their credit card, the customer earns loyalty points in the hotel program. These points are used for free hotel nights. Some credit cards also offer an automatic upgrade to a higher level of the hotel reward scheme.
Airlines
There are several links between frequent flyer schemes and hotel reward schemes:
- it may be possible to exchange hotel reward points for frequent flyer miles (subject to a partnership between the respective brands) and vice versa
- when joining a hotel loyalty program, it is often possible to elect to earn frequent flyer miles with an airline, rather than hotel reward points with the hotel company.
Mattress run
A 'mattress run' is a stay in a hotel with the purpose of achieving hotel loyalty program status.[4] A mattress run is a similar concept to a mileage run for an airline loyalty scheme, however while a mileage run requires the traveller to actually fly to their destination, a mattress run only requires the guest to check-in physically, after which the guest might sleep at home, or in a different hotel. A guest performing a mattress run would book stays in cheaper hotels and at cheaper times of week or year.
A mattress run will only make sense when a traveller is otherwise staying at the loyalty program's properties, but has not stayed enough nights to reach their desired status level. Mattress running in an area with low hotel costs, such as Arizona, could earn benefits when staying in more expensive cities, such as New York, including breakfasts that might cost $30 or more, and free suite upgrades retailing at hundreds of dollars.
Independent loyalty schemes
Some independent hotel associations, such as Preferred Hotels & Resorts, Leading Hotels of the World, and others, operate loyalty schemes, which function as a single scheme despite the hotels being independently owned.[5]
The hotel booking website Hotels.com operates a simple reward scheme, whereby booking hotels through the site earns credit towards free hotel nights.
References
- ↑ http://hhonors3.hilton.com/en/explore/benefits/index.html
- ↑ http://www.nytimes.com/2012/02/19/travel/how-to-attain-hotel-elite-status.html
- ↑ https://skift.com/2014/11/06/interview-four-seasons-ceo-on-building-a-new-kind-of-loyalty/
- ↑ http://www.nytimes.com/2013/12/10/business/games-travelers-play-to-snag-hotel-upgrades.html
- ↑ http://www.nytimes.com/2016/04/03/travel/frequent-flyer-miles-hotel-points.html