Loyalty Programs in the Hotel Industry

Tourism is one of the fastest growing economies in the world. Tourism is an industry that contains many related elements such as hotels, attractions, transportation, dining, and travel agencies. Each element will create an "experience" to its target; it is the duty for marketers to think what types of experiences they would like to offer. Loyalty programs have become a well-known tool to retain customers. Most loyalty programs offer membership in a club or a program with reward purchases. Rewards are normally based on currency value of purchases made or the frequency of purchases. Loyalty program tactics also include regular communication with customers - such as reminder mailings, private credit cards, and up-sell offers. This works explores how experiences can maintain and develop a loyal relationship between hotels and customers through loyalty programs. To engage with this topic, the Best Western Hotel Loyalty Programs was chosen as a case study for this paper to help define and analyze the positive and negative elements of loyalty programs, as well as to bring forward suggestions for improvement.