Hotel & Motel Management - December 8, 2008 - (Page 16) 16 Satisfaction Trends (2002-2005). Approximately one of three guests at these hotels said loyalty program membership was very important in hotel selection. Smaller hotel chains are developing successful loyalty programs of their own, and in many cases they outperform the major chains in program effectiveness. Pan Pacific Privileges ranks near H&MM December 8, 2008 | HotelMotel.com www.HotelMotel.com/digital_edition Hotel loyalty programs motivate guests in a recession IN THE details Increase guest loyalty Hotel vs. air value gap spreads Measure effectiveness Recession-proof programs the top in program effectiveness with 71 percent. Reduce recession impact Here are a few guidelines to make programs more recession-proof: Eliminate fees Offer quicker and possibly immediate benefits to guests Make members aware of their benefits and give them By Jonathan Barsky H&MM Columnist special treatment (e.g., special line to check in, welcome gift, upgrade). When customers are distracted by lower prices or free addons at the competitor, emphasize the benefits of staying with your brand. This does not mean more discounts; instead, make sure your loyalty program offers sufficient benefits that mo- tivate guests and impact hotel selection. hmm@questex.com Jonathan Barsky is a principal with Market Metrix LLC (MarketMetrix.com), a firm that provides multi-channel survey, analysis and service improvement tools and benchmarking data. Call (800) 239-7515 for information. A lthough it took a serious recession, hotel companies are making their loyalty programs more attractive. As a result, loyalty travelers will be recipients of some of the best incentives in years. Marriott International, Hilton Hotels Corp. and Starwood Hotels & Resorts Worldwide eliminated blackout dates for hotel reward redemption. Marriott also began allowing loyalty program members to create their own awards and giving top-level participants membership in Clear, a service that helps registered travelers navigate bottlenecks at airport security. Starwood announced a new twist to its program: It is letting members redeem points for airline tickets on any flight, as long as seats are available. A $300 plane ticket, for example, can be redeemed for 25,000 points. Measuring effectiveness One measure we use to evaluate the success of a brand’s loyalty program is “loyalty program effectiveness,” or the percentage of people who said loyalty program membership was very important in choosing that hotel. In 2002, 32 percent of guests said the loyalty program was a key factor in deciding where to stay. That number has grown steadily to 37 percent in 2007 but has declined in the first nine months of 2008. Among the major chains, the most effective programs in the hotel industry are Marriott Rewards, Hilton HHonors and the Starwood Preferred Guest program. Starwood’s Preferred Guest has seen the biggest improvement (+6) in the past three years (20062008) compared to earlier years http://www.HotelMotel.com http://www.HotelMotel.com/digital_edition http://www.MarketMetrix.com
Table of Contents Feed for the Digital Edition of Hotel & Motel Management - December 8, 2008 Hotel & Motel Management - December 8, 2008 Contents Best Western Sets Spending Strategy Courtyard Turns 25, Unveils New Lobby New Division of MGM Goes Beyond Gaming Perspective Legal FAQ Marketing Matters Family Business On Finance AAHOA Update Satisfaction Trends HotelWorld Update Consultant’s Corner Trends & Stats IH/M&RS Editors’ Choice Award Winners Insurance Ad/Editorial Index Marketplace Classifieds Checking Out Hotel & Motel Management - December 8, 2008 Hotel & Motel Management - December 8, 2008 - Hotel & Motel Management - December 8, 2008 (Page 1) Hotel & Motel Management - December 8, 2008 - Hotel & Motel Management - December 8, 2008 (Page 2) Hotel & Motel Management - December 8, 2008 - Contents (Page 3) Hotel & Motel Management - December 8, 2008 - New Division of MGM Goes Beyond Gaming (Page 4) Hotel & Motel Management - December 8, 2008 - New Division of MGM Goes Beyond Gaming (Page 5) Hotel & Motel Management - December 8, 2008 - Perspective (Page 6) Hotel & Motel Management - December 8, 2008 - Perspective (Page 7) Hotel & Motel Management - December 8, 2008 - Marketing Matters (Page 8) Hotel & Motel Management - December 8, 2008 - Marketing Matters (Page 9) Hotel & Motel Management - December 8, 2008 - Family Business (Page 10) Hotel & Motel Management - December 8, 2008 - Family Business (Page 11) Hotel & Motel Management - December 8, 2008 - On Finance (Page 12) Hotel & Motel Management - December 8, 2008 - On Finance (Page 13) Hotel & Motel Management - December 8, 2008 - AAHOA Update (Page 14) Hotel & Motel Management - December 8, 2008 - AAHOA Update (Page 15) Hotel & Motel Management - December 8, 2008 - Satisfaction Trends (Page 16) Hotel & Motel Management - December 8, 2008 - HotelWorld Update (Page 17) Hotel & Motel Management - December 8, 2008 - Consultant’s Corner (Page 18) Hotel & Motel Management - December 8, 2008 - Consultant’s Corner (Page 19) Hotel & Motel Management - December 8, 2008 - Consultant’s Corner (Page 20) Hotel & Motel Management - December 8, 2008 - Consultant’s Corner (Page 21) Hotel & Motel Management - December 8, 2008 - Trends & Stats (Page 22) Hotel & Motel Management - December 8, 2008 - Trends & Stats (Page 23) Hotel & Motel Management - December 8, 2008 - Trends & Stats (Page 24) Hotel & Motel Management - December 8, 2008 - Trends & Stats (Page 25) Hotel & Motel Management - December 8, 2008 - IH/M&RS Editors’ Choice Award Winners (Page 26) Hotel & Motel Management - December 8, 2008 - IH/M&RS Editors’ Choice Award Winners (Page 27) Hotel & Motel Management - December 8, 2008 - Insurance (Page 28) Hotel & Motel Management - December 8, 2008 - Insurance (Page 29) Hotel & Motel Management - December 8, 2008 - Insurance (Page 30) Hotel & Motel Management - December 8, 2008 - Insurance (Page 31) Hotel & Motel Management - December 8, 2008 - Insurance (Page 32) Hotel & Motel Management - December 8, 2008 - Insurance (Page 33) Hotel & Motel Management - December 8, 2008 - Ad/Editorial Index (Page 34) Hotel & Motel Management - December 8, 2008 - Marketplace (Page 35) Hotel & Motel Management - December 8, 2008 - Classifieds (Page 36) Hotel & Motel Management - December 8, 2008 - Classifieds (Page 37) Hotel & Motel Management - December 8, 2008 - Classifieds (Page 38) Hotel & Motel Management - December 8, 2008 - Classifieds (Page 39) Hotel & Motel Management - December 8, 2008 - Classifieds (Page 40) Hotel & Motel Management - December 8, 2008 - Classifieds (Page 41) Hotel & Motel Management - December 8, 2008 - Checking Out (Page 42) Hotel & Motel Management - December 8, 2008 - Checking Out (Page 43) Hotel & Motel Management - December 8, 2008 - Checking Out (Page 44)
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