Report: Hotel Programs Chasing Same Market

Report: Hotel Programs Chasing Same Market

Although nearly as prevalent as airline frequent flyer programs, the frequent guest programs of the major hotel chains have never achieved the same hold on customers, according to a Travel & Tourism Analyst subscription report, available from Research and Markets. The report says that although it is possible for most frequent flyers to achieve elite status in more than one airline program, the required customer engagement — and subsequent customer value offered — is greater than an easily-switched and closely-replicated hotel loyalty program.

But while there are some fundamental product differences that provide greater challenges for hotel marketers, the report suggests that much customer indifference can be explained by these programs’ simplistic value propositions and superficial direct-marketing approaches to what could (and should) be highly individual and interactive relationships with best customers. The major chains are all chasing the same select group of essentially business travelers who spend at least 20 nights a year in hotels, the report says, meaning that competitive response and differentiation are most critical to hotel operators.

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