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Evolution of loyalty: Experience is everything

Guests checking into the Crowne Plaza Los Angeles International Airport one day in late November were greeted with a surprise perk — tickets to a private performance from triple-platinum pop star Andy Grammer. All they had to do to attend was be a member of — or join — InterContinental Hotels Group’s loyalty program, IHG Rewards.

The event included an intimate set from Grammer, cocktails from celebrity mixologist/biochemist Alex Ott, T-shirts printed on demand, food stations, ice cream and a raffle. It was part of a “Priceless Experiences” series that IHG puts on in partnership with MasterCard.

 “You’re special to us whether you’re a brand new member to the program or an elite member,” Liz Crisafi, IHG’s head of loyalty and partnerships for the Americas, said at the time. 

Pop star Andy Grammer entertains guests at a private concert at the Crowne Plaza Los Angeles International Airport in November.
Pop star Andy Grammer entertains guests at a private concert at the Crowne Plaza Los Angeles International Airport in November.

Marriott Rewards held a private concert in September with pop headliners Demi Lovato and DNCE at L.A. Live in Los Angeles (the venue is anchored by JW Marriott and Ritz-Carlton hotels.) Tickets were redeemable to rewards members for zero point redemptions by logging into Marriott’s Experiences Marketplace.

“This is an audience that values experiences more than things,” says Thom Kozik, vice president of global loyalty at Marriott International. Kozik and David Flueck, SPG senior vice president, are putting a premium on experiences as they merge the two programs. “SPG has been doing this for a while, and Marriott is on that trajectory. We are building our two cultures around this common point.”

One lucky member redeemed more than a million Star points in November to throw out the first pitch in 2016 World Series Game 7 -— which also doubles as word-of-mouth marketing. “Not only is it something that connects with the members, they tweet about it and they share it,” Flueck says.

Hilton Worldwide is focused on experiences and “activating partnerships” in 2017 and beyond, says Mark Weinstein, senior vice president of loyalty and partnerships, including those with the Grammy Awards and LiveNation concerts. Delivering the right mix of personalized experiences and access engenders loyalty, he says.

Those experiences will change as members’ desires change. “Travelers are more loyal than ever. But what they are loyal to is evolving rapidly,” he says. “Folks are loyal to the brands they believe in, especially younger travelers who tend to be cause-oriented rather than value-based travelers.”

Brian Kelly of The Points Guy says that with Airbnb entering the tour space, hotels have room to improve. “Concierges and overpriced tours and car transfers, it’s outdated.” Instead, he says, hotels should focus on how to “handcraft” guests’ experiences before they arrive, especially in the luxury market where excursions can seem transactional instead of meaningful.

“People want both luxury and affordability,” he says. “So hotels have to think about how to customize a guest’s stay in advance and get people really excited about what they are going to do.”

 

Contributed by Juliana Shallcross


 Read HOTELS’ story about the evolution of loyalty programs in our January/February issue.

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