Interview with FS CEO: Loyalty Program coming?
Nov 6, 2014, 7:08 am
#1
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Interview with FS CEO: Loyalty Program coming?
Just saw this interview with J. Allen Smith on Skift.
Lots of fluffy PR talking points in here, but a few interesting nuggets.
On an upcoming loyalty program:
Doesn't sound like it'll be any time soon, but interesting nonetheless.
Full interview here.
Lots of fluffy PR talking points in here, but a few interesting nuggets.
On an upcoming loyalty program:
Smith: You will hear, over the course of the near term, our talking about programs related to recognition that we will be undertaking, but again, as I said, it is focused on the distinction between recognition and rewards. One is recognizing you, understanding your distinct preferences and desires and being able to accommodate those, as opposed to a points-based program. I actually think it’s very compatible with what our guests are actually looking for.
Skift: Does that mean that you’re thinking of rolling something out that is a rethink of loyalty programs, or is that just saying that you are going to focus on that?
Smith: I anticipate our rolling out a program that is focused on recognition. Look, there are clearly brands with very effective loyalty programs. They work for them. I think what we’re focused on is developing a program that is clearly compatible and reflective of what Four Seasons represents and how Four Seasons engages with its customers and what Four Seasons customers value the most. Consistently in our engagement with our guests and talking to them, it’s those elements of recognition that they’re looking for as opposed to points that translate into free nights.
Skift: Does that mean that you’re thinking of rolling something out that is a rethink of loyalty programs, or is that just saying that you are going to focus on that?
Smith: I anticipate our rolling out a program that is focused on recognition. Look, there are clearly brands with very effective loyalty programs. They work for them. I think what we’re focused on is developing a program that is clearly compatible and reflective of what Four Seasons represents and how Four Seasons engages with its customers and what Four Seasons customers value the most. Consistently in our engagement with our guests and talking to them, it’s those elements of recognition that they’re looking for as opposed to points that translate into free nights.
Full interview here.
Nov 6, 2014, 10:42 am
#3
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Four Seasons business is definitely being affected by other hotel brands loyalty programs, particularly SPG. In a city where there is a Four Seasons and a St. Regis next to each other, and the prices are similar. I will choose the St. Regis because of the benefits their loyalty program gives me.
Its going to be interesting to see how Four Seasons balances the benefits it gives to a FS loyalty program with FHR, Virtuoso, and FSPP travel agents. If Four Seasons offers a loyalty program which mimics the benefits offered by booking via FHR, Virtuoso, and FSPP, its possible those booking agencies will lose business and that Four Seasons might lose a pipeline of guest referrals.
Pure speculation and I can't guess a timeline, but I think that this new data collection point/program is part of a process of FS moving towards a public offering.
Its going to be interesting to see how Four Seasons balances the benefits it gives to a FS loyalty program with FHR, Virtuoso, and FSPP travel agents. If Four Seasons offers a loyalty program which mimics the benefits offered by booking via FHR, Virtuoso, and FSPP, its possible those booking agencies will lose business and that Four Seasons might lose a pipeline of guest referrals.
Pure speculation and I can't guess a timeline, but I think that this new data collection point/program is part of a process of FS moving towards a public offering.
Nov 6, 2014, 1:25 pm
#5
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Four Seasons business is definitely being affected by other hotel brands loyalty programs, particularly SPG. In a city where there is a Four Seasons and a St. Regis next to each other, and the prices are similar. I will choose the St. Regis because of the benefits their loyalty program gives me.
Nov 6, 2014, 2:58 pm
#6
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Nov 6, 2014, 4:58 pm
#7
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Nov 6, 2014, 6:32 pm
#8
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Four Seasons business is definitely being affected by other hotel brands loyalty programs, particularly SPG. In a city where there is a Four Seasons and a St. Regis next to each other, and the prices are similar. I will choose the St. Regis because of the benefits their loyalty program gives me.
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FDW
Nov 6, 2014, 9:22 pm
#9
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Nov 7, 2014, 1:56 am
#10
Join Date: Jan 2013
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I am also a member of Starwood Preferred Guest, and I do appreciate "preferred" treatment. However, "preferred" is a relative term - it always means preferred relative to something/someone else.
Of course also luxury hotels can provide special amenities to regulars, but they shouldn't send the official message via a loyalty program that they prefer some guests over others.
Nov 7, 2014, 4:33 am
#11
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Fully agree. One of the hallmarks of a true luxury hotel in my mind is that every guest is treated well.
Of course also luxury hotels can provide special amenities to regulars, but they shouldn't send the official message via a loyalty program that they prefer some guests over others.
Of course also luxury hotels can provide special amenities to regulars, but they shouldn't send the official message via a loyalty program that they prefer some guests over others.
I don't think true loyalty can be measured as a function of nights stayed per year with a particular chain. By not having a standardized program for guest recognition, individual properties and management have discretion over whom to upgrade or to extend other amenities.
Nov 7, 2014, 9:29 am
#12
Join Date: Oct 2009
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I'm under the impression that the average luxury traveler on this forum will chose to stay in their preferred hotel in any given city regardless of branding, that might mean the Pen in Hong Kong, Le Maurice in Paris and the FS Beverly Hills and The Mark in NYC where as I have many friends who won't visit a destination without an SPG property.
Also, with the exception of points I get all the benefits of a loyalty program by booking through a preferred travel agent, free breakfast, upgrade if available etc. The one thing that I get at luxury properties is that I never get at an SPG is that when I check out, the staff often really makes me feel like I'm saying goodbye to someone who cares about me as a person and is truly looking forward to my next visit.
Also, with the exception of points I get all the benefits of a loyalty program by booking through a preferred travel agent, free breakfast, upgrade if available etc. The one thing that I get at luxury properties is that I never get at an SPG is that when I check out, the staff often really makes me feel like I'm saying goodbye to someone who cares about me as a person and is truly looking forward to my next visit.
Nov 7, 2014, 10:45 am
#13
Join Date: Feb 2004
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The institution of a rewards or point based program at the Four Seasons doesn't necessitate that the company reduce its level of service, or make the staff any less warm or sincere. On the contrary, the Four Seasons could be rectifying one of their few weaknesses which is providing recognition for frequent guests across their hotels, and collecting as well as acting upon easily accessible/collectible data such as FDW's shampoo preference.
Many guests of FS probably don't think of this because it isn't a publicized FS program but there is already a hierarchy of guests, like St. Regis/Ritz-Carlton, strongly affected by how much the guests pay/spend/loyalty and which travel agent made the booking.
What I appreciate at Four Seasons, and which would not be affected by a published loyalty program, is that I'm happy even with the entry level accommodations and the entry level of service they give to every guest. I do not feel this way about the entry level offerings of rooms and service at most Ritz-Carlton and St. Regis hotels.
Many guests of FS probably don't think of this because it isn't a publicized FS program but there is already a hierarchy of guests, like St. Regis/Ritz-Carlton, strongly affected by how much the guests pay/spend/loyalty and which travel agent made the booking.
What I appreciate at Four Seasons, and which would not be affected by a published loyalty program, is that I'm happy even with the entry level accommodations and the entry level of service they give to every guest. I do not feel this way about the entry level offerings of rooms and service at most Ritz-Carlton and St. Regis hotels.
Nov 7, 2014, 11:57 am
#14
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