Loyalty programs are a must in the tourism industry, to reward regular customers and encourage those who haven't yet done so to return. They offer a range of benefits, from discounts to exclusive services.

To date, loyalty programs in the hotel industry have largely been the preserve of the major hotel chains. However, it makes sense for groups and even independent hotels to offer them to their customers. They are no longer the preserve of the major hotel brands, especially as some solutions are now very simple to set up, and much less expensive than before. 

There are several types of program, each with its own particularities and advantages for hoteliers and travelers.

There are several types of hotel programs:

1. Free loyalty programs with immediate benefits
2. Free loyalty programs with points accumulation
3. Paid loyalty programs

1. Free loyalty programs with immediate benefits

These programs are available free of charge and reward customers based on their booking history. Benefits include discounts, free services or upgrades.

The advantage of this type of program is that the benefits are available right from the first booking. Joining the Loyalty Programme when you make your first reservation means you can take advantage of special rates or benefits that OTA platforms don't offer right from your first stay. This type of scheme encourages customers to book directly while accepting, as a member, to be contacted by the hotel or group. 

Here are a few examples of benefit loyalty programs in the hotel industry:

Genius (Booking.com)

"Be Genius in your own way

The Genius program offers discounts (from 10% to 20%), free breakfasts and upgrades for just two stays over two years. Genius status is acquired for life.

SLH Club (Small Luxury Hotels of the World)

"A world where the well-travelled, travel well".

SLH is a community of independent luxury hotels worldwide. Its SLH ClubLoyalty Programme offers exclusive rates, unique experiences and complimentary room upgrades, designed to reward guests from their very first stay.

2. Free loyalty programs with points accumulation

These programs enable customers to accumulate points with each stay, which can be used for free nights, exclusive services or discounts. Some are integrated into broader ecosystems, including airlines and credit cards.

This type of program is more complicated to set up, and only makes sense for networks with many establishments, or for airlines, for example, which are grouping together in alliances to make themselves more attractive. 

Above all, these points are the equivalent of a currency owed to customers, which must therefore exist, in accounting terms, for the hotel or group.

Here are a few examples of points-based loyalty programs in the hotel industry:

ALL, Accor Live Limitless (Accor)

"Be rewarded every moment." 

The ALL program allows you to accumulate points that can be used to pay for all or part of a stay, with different statuses ("Classic" to "Diamond") offering progressive benefits.

Best Western Rewards (Best Western Hotels & Resorts)

"Because We Want to Reward You

The Best Western Rewards program offers a 10% discount, private sales and boutique rewards. For two nights, a $50 gift card; the "Match...No Catch Status" entitles the guest to Elite status if they have it in another Loyalty Programme .

Contact & Moi (Contact Hotels)

"At Contact Hotels, we really know how to reward you."

Accumulation of points corresponding to overnight stays entitles the customer to a cash refund. The program distinguishes between tourist and business customers. The names of the statuses are also worth noting: Explorer / Traveler / Collector / Globe-trotter.

Marriott Bonvoy (Marriott International)

"Access unforgettable experiences and exclusive benefits."

Marriott Bonvoy offers points per stay, activity or spend with the program's bank card, which can be used at its 30 hotel brands.

Other examples of points-based loyalty programs in the tourism sector:

Flying Blue (Air France - KLM)

"It's time for bonuses!

Flying Blue allows you to earn points (miles) that can be used on flights and at partner hotels.

SNCF frequent flyer program

"Every journey brings you closer to your advantages".

Points accumulated with the Grand Voyageur Program entitle the holder to discounts on travel and at partner hotels.

3. Paid loyalty programs

Some programs offer paid membership, giving access to exclusive benefits or rates. These formulas can be interesting for frequent travelers looking to maximize their savings while creating a strong commitment to the hotel or hotel group.

This is one of the best-known examples of a paid program: for a fixed annual fee, "Prime" members enjoy value-added benefits such as free express delivery, and a video and music platform.

Here are a few examples of paid loyalty programs in the hotel industry:

ALL Plus (Accor)

"Travel better, pay less

The ALL Plus membership card, priced at €199 per year, offers up to 20% guaranteed discount on group hotels, and privileged status from the moment you sign up.

Accor's best practice: include a calculator below the subscription price to highlight the savings made ⤵︎

B&Me (B&B Hotels)

"A season ticket for smart travel

At €49 per year, B&Me offers a guaranteed 10% discount on all bookings.

TabletPlus (Tablet Hotels)

"Embellish your travels

The TabletPlus program offers an annual subscription fee of $99 for upgrades and VIP benefits at numerous hotels, a range of privileges that will pay for itself in just one stay. Each reservation A free 30-day trial allows you to test the benefits at member hotels. The subscription also offers members-only rates, as well as a team of travel experts who provide personalized assistance at every stage of the trip.

Other examples of paid loyalty programs in the tourism industry:

Air France Discount Pass

"Simplified travel, guaranteed savings".

Air France Discount Passes offer discounts on partner hotel stays, flexibility, time savings and other fare advantages.

Advantage cards and SNCF season tickets

"Save money all year round, no matter how often you travel."

SNCF advantage cards and season tickets are available all year round, and entitle holders to reduced fares on their journeys, as well as reserved services: access to Business lounges, free refunds, express access, priority queuing in stores, free drinks...

What type of program can I offer in my hotel?

The simplicity and attractiveness of a Loyalty Programme without points

If you're a hotelier looking to set up a Loyalty Programme in your establishment(s), opting for a free program with immediate benefits is a simple and effective solution.

Unlike points-based programs, this model does not require complex accounting management, and is suitable for both large groups and independent hotels.

For customers, this type of program enables them to benefit from advantages from the very first booking, with no need to accumulate stays. For the hotel, it encourages direct bookings (thanks to preferential rates or exclusive privileges) and fosters the creation of a community of committed customers.

By becoming members, guests share their contact details and preferences, enabling the hotel to interact with them in an ultra-personalized way, increasing the chances of building loyalty. A well-designed program can be a major asset when it comes to standing out from the competition, especially when it comes to OTAs.

What's important to customers?

For many customers, recognition, a smooth, high-quality experience and simplified processes are often more important than price.

• Business travelers 💼 who don't pay directly for their stay 💼 will be particularly responsive to practical, personalized benefits, such as simplified check-in, early arrival, upgrades, or the ability to store personal belongings between stays.
• In the luxury hotel business 💎 customers are more interested in recognition and exclusive service than in a simple rate reduction.
• Leisure guests 🧳, on the other hand, will be more sensitive to savings and certain privileges during their stay, such as early check-in, a drink or a gift voucher to the hotel restaurant. These little gestures may encourage them to return.

An argument for standing out from the competition

Loyalty programs are still not widespread among hotel groups and independent establishments, representing an under-exploited opportunity. Without a dedicated program, there's no optimized guest journey, and no benefits or recognition for those who return regularly.

Define a genuine loyalty strategy

Setting up a Loyalty Programme enables you to fine-tune your loyalty strategy by defining benefits adapted to different customer profiles. These benefits don't have to be exclusively price-related: a loyal guest isn't always looking for a discount, and may be more receptive to a tailor-made service or special attention than to an immediate discount.

Last but not least, the guest 's experience must be seamless and meet their expectations right from their first stay. It's essential to show recognition by offering a differentiated service and a simplified experience.

Conclusion

Loyalty programs need to be tailored to the profile of the target customer. For leisure guests, immediate rate advantages will encourage them to book directly on the hotel's website. On the other hand, for frequent travelers, personalized privileges such as upgrades, early check-in or the possibility of storing belongings between stays can play a key role in building loyalty.

The subscription approach is an innovative alternative for attracting customers who are very loyal to an establishment (for example, a hotel located close to a company's headquarters), or for meeting the needs of frequent travelers, as with the All Plus program.

Occasional customers will prefer the immediate benefits of free programs, while regular travelers can optimize their spending with a paid subscription or points-based program.

If membership cards are so successful in the airline and retail sectors, why aren't they more widely used in the hotel industry? This model, although under-exploited, could offer establishments a powerful lever for building customer loyalty while improving profitability.