There’s always strong hotel industry debate about the cost-benefit of starting and running a customer loyalty program. They take time, money and effort, while the benefits are not always obvious. However new North American research from TravelClick will put some minds at rest.
The research, which uses “transactional reservation and stay data” from subscriber properties, shows that loyalty program member bookings are up and that they overwhelmingly book through direct through hotel websites rather than Online Travel Agents.
“Loyalty program members account for nearly 80% of all room nights booked through a hotel’s website (Brand.com),” TravelClick said.
“This accentuates the value of this customer segment, given a loyalty guest’s propensity to book through the hotel’s lowest cost distribution channel.
“Second, 85% of all room nights booked through a third-party online travel agency (OTA) come from guests not affiliated to the hotel’s loyalty program.
“The OTA channel is an important source of demand, driving 13% of transient room nights year to date. Each of these guests represents an opportunity to add new loyalty program members.”