Hotel loyalty cards/ programmes
Oct 14, 2011 | 4:18 pm
#16
Join Date: Feb 2007
Location: PDX
Programs: AS
Posts: 410
Great comments... I wanted to respond on a few points but ended up ranting my own business perspective and ended up with a long tangent that I _hope_ relates back...
As I see it the issue with evaluating programs comes down to opportunity cost.
As a marketer we tend to look at the incremental growth a campaign brings us, so in the case of a loyalty program we might take 5% of our properties, add a program, and see what happens to those vs the other 95%. The problem of course is that it's not an time-in-place decision like picking one beverage over another at the local supermarket but rather there is a long term benefit and perception to these programs. Thus we may compare against other competitors and try to gauge the lift they are having but still, the evaluation is about growing and ignores the more fundamental issue: losing.
While not everyone who travels, or even everyone who travels regularly, cares for loyalty programs, accumulates points or weights this into their decision process, those that do are not simply selecting up to a business because it has a program, they are selecting away from another because it does not or it is not the one they use. Once someone is "in" they have a vested interest to ignore others.
As an example, I am a big fan of the W hotels but with my travel patterns it's unlikely I will make a mid-tier status with them [Starwood] because of the number of nights required. On the other hand, I am fine -- but not overly set on -- Hilton. However I easily hit their mid-tier status mark. As a result I don't self select Starwood properties and the only business they get is because of a client, companion or just a killer deal yet if you were evaluating their program metrics, you would see that since joining their program I have logged more stays and potentially assume the program is boosting my stays. In truth their program has cost them visits from me and that becomes more true as I gain more status with their competitor -- but looking at growth stats alone, they would never be able to identify this.
When I work with an established business we spend a lot of time talking about "radical transformation"... the shift Apple brought to personal audio or that FedEx took with making delivery dates their first priority and allowing them to break into a set market. Problem is, most of business is trying to figure out how to feature up, increment and step the same things forward... under the guise of calling it new. Loyalty programs are no different. Rather than looking at what the potential end goals are -- a better quality of stay for a business traveler, a personal greeting for someone who almost lives in hotels and needs to feel more at home, free stays for during those rare days off, the metrics are focused on small wins for the business that cloud the vision of what the customer wants; and the customer is the opportunity.
As I see it the issue with evaluating programs comes down to opportunity cost.
As a marketer we tend to look at the incremental growth a campaign brings us, so in the case of a loyalty program we might take 5% of our properties, add a program, and see what happens to those vs the other 95%. The problem of course is that it's not an time-in-place decision like picking one beverage over another at the local supermarket but rather there is a long term benefit and perception to these programs. Thus we may compare against other competitors and try to gauge the lift they are having but still, the evaluation is about growing and ignores the more fundamental issue: losing.
While not everyone who travels, or even everyone who travels regularly, cares for loyalty programs, accumulates points or weights this into their decision process, those that do are not simply selecting up to a business because it has a program, they are selecting away from another because it does not or it is not the one they use. Once someone is "in" they have a vested interest to ignore others.
As an example, I am a big fan of the W hotels but with my travel patterns it's unlikely I will make a mid-tier status with them [Starwood] because of the number of nights required. On the other hand, I am fine -- but not overly set on -- Hilton. However I easily hit their mid-tier status mark. As a result I don't self select Starwood properties and the only business they get is because of a client, companion or just a killer deal yet if you were evaluating their program metrics, you would see that since joining their program I have logged more stays and potentially assume the program is boosting my stays. In truth their program has cost them visits from me and that becomes more true as I gain more status with their competitor -- but looking at growth stats alone, they would never be able to identify this.
When I work with an established business we spend a lot of time talking about "radical transformation"... the shift Apple brought to personal audio or that FedEx took with making delivery dates their first priority and allowing them to break into a set market. Problem is, most of business is trying to figure out how to feature up, increment and step the same things forward... under the guise of calling it new. Loyalty programs are no different. Rather than looking at what the potential end goals are -- a better quality of stay for a business traveler, a personal greeting for someone who almost lives in hotels and needs to feel more at home, free stays for during those rare days off, the metrics are focused on small wins for the business that cloud the vision of what the customer wants; and the customer is the opportunity.
Oct 14, 2011 | 11:30 pm
#17
Suspended
Join Date: Jan 2010
Location: Calgary, Alberta
Programs: Hyatt Diamond, Fairmont Platinum, Aeroplan Diamond, HHonors Gold, SPG Gold
Posts: 18,686
I really dislike restaurants that won't take reservations, and will avoid them if there are equal-in-other-ways alternatives. And a reservations model allows a restaurant to staff up / down accordingly - if they have every table full in bookings on a Saturday, they know they need more staff in. The reverse is also true, when you have a mainly reservations model, you know when a slow night is coming too.
Half the restaurant is reservations and half walkins.. and for the walkins, the wait gets to be sometimes an hour and a half on weekends..
I would say this model, is a balance that has been working quite successful.. AFAIK is unique as well..
Oct 15, 2011 | 3:03 pm
#20
Join Date: Feb 2007
Location: PDX
Programs: AS
Posts: 410
I means "as far as I know."
That's the issue with measuring the growth of a program... because we want to justify what we're doing, you take every sign to point to a positive. You can't just look at the business metrics, human factors have to be understood as well.
"their program has cost them visits from me"
This is a new insight that even they (Starwood) would find useful, thanks!
This is a new insight that even they (Starwood) would find useful, thanks!
Oct 15, 2011 | 9:36 pm
#21
Suspended
Join Date: Jan 2010
Location: Calgary, Alberta
Programs: Hyatt Diamond, Fairmont Platinum, Aeroplan Diamond, HHonors Gold, SPG Gold
Posts: 18,686
Human nature to justify what has been done.. I do respect those who follow up with honest opinions.. even negative reviews.. it means, it was a waste of their time, even if they spent precious resources..
Oct 16, 2011 | 10:05 pm
#23
Join Date: May 2011
Location: South Island, NZ
Programs: IHG Ambassador, Air NZ Silver, Emirates Silver
Posts: 568
as a fairly new member to hotel loyalty programmes (IHG) I would say that for me as a leisure traveller they have some benefits. We are far more inclined to stay at an IHG hotel when we travel so that we can earn points and bonus points. We signed up to be ambassadors so that we could get the BOGO as we thought that was a good investment. We then got a referral for Royal Ambassador which of course brings a whole new set of perks which we enjoy. When I travel away overseas I want my hotel experience to be as good as if not 100% better than my home.
Also, the whole points and free nights makes me look at more exotic locales to holiday in where we will spend points and dollars. Surely that's a win win.
Also, the whole points and free nights makes me look at more exotic locales to holiday in where we will spend points and dollars. Surely that's a win win.
Oct 16, 2011 | 10:08 pm
#24
Suspended
Join Date: Jan 2010
Location: Calgary, Alberta
Programs: Hyatt Diamond, Fairmont Platinum, Aeroplan Diamond, HHonors Gold, SPG Gold
Posts: 18,686
as a fairly new member to hotel loyalty programmes (IHG) I would say that for me as a leisure traveller they have some benefits. We are far more inclined to stay at an IHG hotel when we travel so that we can earn points and bonus points. We signed up to be ambassadors so that we could get the BOGO as we thought that was a good investment. We then got a referral for Royal Ambassador which of course brings a whole new set of perks which we enjoy. When I travel away overseas I want my hotel experience to be as good as if not 100% better than my home.
Also, the whole points and free nights makes me look at more exotic locales to holiday in where we will spend points and dollars. Surely that's a win win.
Also, the whole points and free nights makes me look at more exotic locales to holiday in where we will spend points and dollars. Surely that's a win win.
So 4 nights free, on the same amount of points as 1 night free.. absolutely FT standard.^
Oct 18, 2011 | 9:30 am
#25
Original Poster
Join Date: Oct 2011
Posts: 35
@Ancien Maestro: you mentioned Notables, Calgary. Do they have a conscious policy of accepting reservations only for 50% of the tables, or is that how it works out?
And sorry for sounding dumb, but FT is another abbreviation I am totally at sea about!! In my circles it means Financial Times!
And sorry for sounding dumb, but FT is another abbreviation I am totally at sea about!! In my circles it means Financial Times!
Oct 18, 2011 | 8:29 pm
#28
Suspended
Join Date: Jan 2010
Location: Calgary, Alberta
Programs: Hyatt Diamond, Fairmont Platinum, Aeroplan Diamond, HHonors Gold, SPG Gold
Posts: 18,686
@Ancien Maestro: you mentioned Notables, Calgary. Do they have a conscious policy of accepting reservations only for 50% of the tables, or is that how it works out?
And sorry for sounding dumb, but FT is another abbreviation I am totally at sea about!! In my circles it means Financial Times!
And sorry for sounding dumb, but FT is another abbreviation I am totally at sea about!! In my circles it means Financial Times!
Not to worry.. You are a brilliant author.. so won't take too much time to get up to speed.. I'm still learning some abbreviations myself.. like the other day, I looked up YMMV..
Notables has a conscious policy of booking 50% of the tables.. Notables purposely leaves 50% of the tables open for walk-in traffic, and generally weekends is an hour and a half wait if you don't have a reservation for supper..
Oct 19, 2011 | 1:38 pm
#30
Original Poster
Join Date: Oct 2011
Posts: 35
LOL!
Not to worry.. You are a brilliant author.. so won't take too much time to get up to speed.. I'm still learning some abbreviations myself.. like the other day, I looked up YMMV..
Notables has a conscious policy of booking 50% of the tables.. Notables purposely leaves 50% of the tables open for walk-in traffic, and generally weekends is an hour and a half wait if you don't have a reservation for supper..
Not to worry.. You are a brilliant author.. so won't take too much time to get up to speed.. I'm still learning some abbreviations myself.. like the other day, I looked up YMMV..
Notables has a conscious policy of booking 50% of the tables.. Notables purposely leaves 50% of the tables open for walk-in traffic, and generally weekends is an hour and a half wait if you don't have a reservation for supper..
No, seriously, Notables does have a great solution.