Loyalty programs are really, really important (just ask Arne Sorenson). They have always been a key way for hotels to build brand allegiance with customers.
In 1988, “frequent-stay programs” had been around for a while. But back in the days before OTAs and home-sharing websites, the April 1988 issue of Hotels & Restaurants International was asking a question that’s still relevant today: Do such programs actually increase repeat business and build customer loyalty, as they’re touted to do, or have they become essential because seemingly every major hotel company has one? The answer, most hoteliers would say, is yes – on both counts.
In the 1980s, hotels were offering points and perks that still sound familiar: partnerships with airlines, free nights, preferred treatment, cruises and even U.S. savings bonds. The magazine offered a few tips for success:
- Know the selling points of the program
- Understand what happens behind the scenes; i.e., how the program can drive the bottom line
- Set up an extensive training program for staff
- Respond to consumer inquiries and work closely with the guest and the hotel involved when there is a complaint
Perhaps most important, a travel agent told the magazine, a frequent-stay program “develops loyalty because of its advantages. But if the program ever ends, that loyalty will end, too.”
A point Mr. Sorenson no doubt has taken to heart.
Every week in 2016, #Throwback Thursday celebrates the 50th anniversary of HOTELS magazine in all its forms. Have a remembrance? Email Managing Editor Barbara Bohn.