Booking direct has been a hot topic in recent months and more and more hotels have been adjusting their loyalty programs to entice travelers. There is an argument for using OTAs to essentially do the work for you to get consumers to book the first time around. A strong loyalty program can be what gets the same consumers to come back to your hotel and book direct the second, third and fourth time. These statistics provide some insight on how travelers view loyalty programs and what they are looking for:
• 61% of travelers look for loyalty programs with a broad spectrum of rewards. (Collinson Latitude)
• 40% of travel loyalty program members would tell friends and family about a program following a positive redemption experience. (Collinson Latitude)
• 33% of travel loyalty program members would actively encourage family & friends to join the program following a positive redemption experience. (Collinson Latitude)
• 68% of Millennials will remain loyal to a program that offers them the most rewards. (Internet Marketing)
• 41% of Millennials joined a travel loyalty program because it was easy to use. (Internet Marketing)
• 83% of highly satisfied hotel loyalty program members say they “definitely will” recommend the brand. (JD Power)
• 47% of consumers are more motivated to join a loyalty program if the program provides instant gratification rather than offering travel units that can only be earned over time with repeated stays. (Mintel)
Creating a solid loyalty program that is easy to use can increase your direct bookings and help to retain customers. If customers are happy with what they are receiving from a program, this can also generate word-of-mouth business.
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