A Restoration in Hotel Loyalty
Developing a blueprint for reinventing loyalty programmes
Many executives know how important loyalty is to their businesses, but few say they have cracked the code on building long-term loyalty. We understand that it can be hard to secure organisational commitment to invest in brand loyalty. During challenging times, operators and owners are focused on cost management, and when demand is strong, investing in down-the-road loyalty initiatives is hard to justify.
In October 2012, Deloitte engaged in extensive consumer loyalty research, surveying 4,000 travellers and conducting two in-depth focus groups with frequent business and leisure travellers. This research has given us deep insights into hotel guests' travel behaviours, attitudes, and engagement preferences.
In this report, we explore how to increase the effectiveness of loyalty programmes. Our research points to two over-arching and compelling conclusions:
- The best-case scenario is that hotel loyalty programmes as they are constituted today have either little or no impact on travellers' purchase decisions, and, in the worst case, these programmes drive undesirable brand-switching behaviour.
- Hotel brands and owners that choose to instead build differentiated loyalty programmes and a customer experience that anticipates and integrates priority customers' personalised needs have the potential to capture incremental market share.
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