Brand loyalty programmes need to be flexible
dubai — Hotel brands with needlessly complicated loyalty programmes can not only count on earning the ire of their customers, but will also have to deal with their once loyal customers switching brands, experts at the 2016 Arabian Hotel Investment Conference said.
Speaking at a panel discussion, Joe Sita, chief executive officer at IFA Hotel Investments, noted that it is very frustrating when brand loyalty programmes are not flexible, especially in today’s digital age. He also noted that customers tend to get very frustrated the longer it takes for their points to appear on their programme. “Loyalty programmes have become too complicated, and most of the big loyalty programmes have become devalued. The challenges for hoteliers today is to step back and make them less complicated, and more easier for the customers to get their points back as soon as possible. There is soo much research in this industry that shows that loyalty, when done right, is the most powerful tool that hoteliers and hotel owners can have,” said Geoff Ballotti, president and CEO at Wyndham Hotel Group. He also revealed that roughly over 80 per cent of customers choose a brand today because of its loyalty programme. Customers that have trouble understanding a brand’s rewards system, or have trouble with the delays in redeeming their point, will certainly not want to stick with the brand, he stressed.
“There is a misconception that young customers today aren’t brand conscious or brand loyal. That is incorrect, as brands today are very important to the younger generation, and brands that do it right with their loyalty programmes have a great opportunity in their hands,” he added.
Speaking on the topic of the recent consolidations in the UAE hospitality industry, Ballotti said: “I think that there is absolutely more room for consolidation. Consolidation brings in great new talent for companies, and it provides hotel owners with lower distribution costs, better technology, and great operating synergy to drive market share and operating margins.”
Gaurav Bhushan, global chief development officer of Accor Hotels, however cautioned: “Consolidation for consolidation’s sake will only lead to trouble, so I think that people should be mindful of that.”
Asked about the recent shift towards digitisation in the hospitality sector, Bhushan said that digitisation is fundamental to businesses today and will continue to be important in the coming years. Hotel brands that have not already done so, need to start heavily investing in digitisation as it is all set to become a mainstay in the future, he advised.