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

In the hotel industry, loyalty programmes have largely been offered by major chains. However, it makes sense for groups and even independent hotels to offer them to their guests. 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 they used to be. 

There are several types of programme, each with its own characteristics and advantages for hoteliers and travellers.

There are several types of programmes for hotels:

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

1. Free loyalty programmes with immediate benefits

These programmes 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 programme 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 allowing the hotel or group to contact them as a member. 

Here are a few examples of loyalty programmes with benefits in the hotel industry:

Genius (Booking.com)

"Get rewarded for being you"

The Genius programme 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 Club Loyalty Programme offers exclusive rates, unique experiences and complimentary room upgrades, designed to reward guests from their very first stay.

2. Free loyalty programmes with points accumulation

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

This type of programme is more complicated to set up, and only makes sense for chains with many establishments, or for airlines, for example, which are forming alliances to attract customers. 

These points are essentially equivalent to a currency owed to clients and must therefore exist, from an accounting perspective, for the hotel or group.

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

ALL, Accor Live Limitless (Accor)

"Be rewarded time and time again." 

The ALL programme 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 progressively greater benefits.

Best Western Rewards (Best Western Hotels & Resorts)

"Because We Care about Rewarding You"

The Best Western Rewards programme offers price reductions, private sales, boutique rewards and a $50 gift card is offered after two nights. The "Status Match...No Catch" entitles the guest to Elite status if they already gained that status in another establishment's Loyalty Programme .

IHG One Rewards (IHG Hotels)

"It pays to be elite"

IHG Rewards Club allows members to earn points for stays at IHG hotels worldwide, which can be exchanged for free nights, upgrades and discounts. Points accumulate over time and can also be used for partner offers such as flights and car rentals. Higher tier members gain access to even more exclusive offers.

Marriott Bonvoy (Marriott International)

"Access unforgettable experiences and exclusive benefits."

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

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

Executive Club (British Airways)

"Celebrate with us"

Members of the Executive Club earn Avios and Tier points. Avios points give access to discounts on flights while Tier points allow passengers to ascend the Loyalty Programme, benefiting from priority boarding, access to first-class lounges and much more... 

ÖBB Vorzugspunkt

"Twice as much reason to celebrate!"

Vorzugspunkt passengers can collect points by purchasing train tickets and using ÖBB services. These points can then be redeemed for various rewards, including discounted tickets, upgrades, and other benefits.

3. Paid loyalty programmes

Some programmes offer a paid membership that provides access to exclusive benefits or rates. These options can be attractive for frequent travellers looking to maximise their savings while fostering strong loyalty to the hotel or hotel group.

One of the best-known examples of a paid programme: 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 programmes in the hotel industry:

ALL Plus (Accor)

"Your loyalty rewarded with All Plus"

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)

"Upgrade your Adventures"

The TabletPlus programme offers an annual subscription fee of $99 for VIP upgrades and benefits at numerous hotels, a range of privileges that will pay for itself in just one stay. 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 personalised assistance at every stage of the trip.

Other examples of paid loyalty programmes in the tourism industry:

easyJet Plus

"Save Big. Travel Better."

The easyJet Plus card offers passengers a range of on-board and airport benefits for an annual fee. Cardholders can enjoy a security fast-track, speedy boarding, extra luggage allowance, a premium seat, and additional pricing advantages.  

ÖBB Vorteilscard

"For all those who like to travel flexibly"

For an annual fee, passengers with a Vorteilscard benefit from a 50% discount on all rail tickets. Alternative pricing options are available for Senior, Youth and Family cards.

What type of programme should 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 programme with immediate benefits is a simple and effective solution.

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

For guests, this type of programme 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 loyal guests.

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

What's important to guests?

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

• Business travellers 💼 who don't pay directly for their stay 💼 will be particularly responsive to practical, personalised benefits, such as simplified check-in, early arrival, upgrades, or the ability to store personal belongings between stays.
• In the luxury hotel business 💎, guests are more interested in recognition and exclusive service than in a simple rate reduction.
• Leisure travellers 🧳, 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 programmes are still not widespread among hotel groups and independent establishments, representing an underutilised opportunity. Without a dedicated loyalty programme, there's no optimised 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 guest 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 programmes need to be tailored to the profile of the target guest. For leisure travellers, immediate rate advantages will encourage them to book directly on the hotel's website. On the other hand, for frequent travellers, personalised 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 guests 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 travellers, as with the All Plus program.

Occasional guests will prefer the immediate benefits of free programs, while regular travellers can optimise their spending with a paid subscription or points-based programme.

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 guest loyalty while improving profitability.