Consistency not loyalty is most important for business travellers: survey

The key success factor in today’s challenging economy for hotels is to understand how loyalty schemes can strengthen the emotional commitment to a brand, according to market research company BDRC.

Published: 03 Apr 2009

The key success factor in today’s challenging economy for hotels is to understand how loyalty schemes can strengthen the emotional commitment to a brand, according to market research company BDRC.

According to BDRC’s research, awareness and membership of budget brands loyalty schemes are increasing, and with the current economic downturn, it believes that budget brands are set to grow their market share alongside their more experienced international competitors.

At present, the majority of hotel loyalty schemes establish little more than a transactional relationship with customers, one that works only as long as the customer values the benefits.

As per the findings of its British Hotel Guest Survey, the most important factors for business travellers when choosing a hotel are consistent quality and standards, appropriately located hotels, excellent staff service and good value. A worthwhile loyalty programme, relative to these attributes, is bottom of the list.

More than half (55%) of business travellers that belong to loyalty schemes redeem the points they’ve collected: 45% use them for free stays, 21% for in-hotel service and upgrades, 16% convert them to airline miles, 11% say they convert them to other retail points, 8% use them for other travel, 5.5% donate them to charity. Just under a fifth dont redeem their points indicating that members are either not engaged with the programme or that redemptions are far to difficult to transact.

The reason for increased uptake of loyalty programme membership is three-fold. Firstly, they are more readily available. Secondly, travellers increasingly want to be rewarded for their custom and finally hotel chains are increasingly offering elite tier membership with their superior rewards as an entry level to encourage travellers to join.

Tim Sander, director, BDRC said even though loyalty programmes are rated lower than other service and product related attributes by business travellers, this does not mean they are unimportant. They are a key driver in recommending one hotel brand over another. This is even more crucial in an economic downturn as business travellers become eager to earn rewards in exchange for their custom.

Related links: loyalty, business travellers

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