Loyalty programs are critical to hotels’ customer retention and engagement strategies. More than that, though, they’re also integral to revenue generation. For a major hotel chain, loyalty program members are often the engine of occupancy and on-property spending. Take IHG, which states in its 2022 annual report that members of its IHG One Rewards program account for more than half of all room nights globally and typically spend 20% more in hotels than non-members.
IHG isn’t the only hotel chain that derives a significant portion of its revenue from loyalty members. Booking data from our own platform shows that across brands, hotel loyalty program members consistently and increasingly have higher average booking value (ABV) than non-members.
Over the last five years, rewards program members booking through the iSeatz platform have spent 2.8% more in ABV when ancillary products are included. ABV is up by 6.8% in the last two years alone, and according to the latest end-of-year 2023 estimates, ABV was +15%.
Given the impact of loyalty programs on a hotel’s performance, it’s unsurprising that hospitality brands want the best program designed to meet their needs. However, how those loyalty programs—and specifically the technology platforms on which they’re built—are developed can vary significantly depending on the organization, its goals, and how it views the program as an extension of its brand.
Building a loyalty program platform from scratch using internal resources can be a daunting process, let alone one that can deliver the revenue and retention impacts of programs like IHG One Rewards or Wyndham Rewards.
Fortunately, the rise of Loyalty-as-a-Service (LaaS), an extension of the software-as-a-service approach to technology deployment, allows hotels to implement a bespoke travel loyalty program without having to engage in a time and resource-intensive internal build-out process or a lengthy (and expensive) custom third-party development window.
The right LaaS platform can help hotels launch or upgrade a loyalty program with advanced booking capabilities, a robust portfolio of earning and redemption options, the ability to personalize the member experience, numerous cross and up-selling opportunities, and data integration to fuel customer insights. These are all critical advantages for hotels seeking to differentiate themselves in a crowded and competitive landscape.
Loyalty programs are critical to hotels’ customer retention and engagement strategies. More than that, though, they’re also integral to revenue generation. For a major hotel chain, loyalty program members are often the engine of occupancy and on-property spending. Take IHG, which states in its 2022 annual report that members of its IHG One Rewards program account for more than half of all room nights globally and typically spend 20% more in hotels than non-members.
IHG isn’t the only hotel chain that derives a significant portion of its revenue from loyalty members. Booking data from our own platform shows that across brands, hotel loyalty program members consistently and increasingly have higher average booking value (ABV) than non-members.
Over the last five years, rewards program members booking through the iSeatz platform have spent 2.8% more in ABV when ancillary products are included. ABV is up by 6.8% in the last two years alone, and according to the latest end-of-year 2023 estimates, ABV was +15%.
Given the impact of loyalty programs on a hotel’s performance, it’s unsurprising that hospitality brands want the best program designed to meet their needs. However, how those loyalty programs—and specifically the technology platforms on which they’re built—are developed can vary significantly depending on the organization, its goals, and how it views the program as an extension of its brand.
Building a loyalty program platform from scratch using internal resources can be a daunting process, let alone one that can deliver the revenue and retention impacts of programs like IHG One Rewards or Wyndham Rewards.
Fortunately, the rise of Loyalty-as-a-Service (LaaS), an extension of the software-as-a-service approach to technology deployment, allows hotels to implement a bespoke travel loyalty program without having to engage in a time and resource-intensive internal build-out process or a lengthy (and expensive) custom third-party development window.
The right LaaS platform can help hotels launch or upgrade a loyalty program with advanced booking capabilities, a robust portfolio of earning and redemption options, the ability to personalize the member experience, numerous cross and up-selling opportunities, and data integration to fuel customer insights. These are all critical advantages for hotels seeking to differentiate themselves in a crowded and competitive landscape.
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