Loyalty Programs May Be More Important Than a Chocolate on the Pillow When it Comes to Making Hotel Guests Happy

Successful loyalty rewards programs may mean more satisfied customers for hotel companies.
 
J.D. Power’s 2016 North American Hotel Guest Satisfaction Index Study found that rewards program members were significantly more likely than nonmembers to rate their stays as good experiences. The survey also found that younger guests lag behind older people in joining hotel loyalty programs. Two-thirds of Baby Boomer guests are rewards members, but less than 40 percent of Generation Y customers are.
 
J.D. Power defines Baby Boomers as people born between 1946 and 1964. Members of Generation Y – sometimes called Millennials – were born between 1977 and 1994, and are nearly as numerous as the Baby Boomers.
 
“We’re finding that every succeeding generation seems to be less likely to be a member of a hotel rewards program than the one before,” said Rick Garlick, global travel and hospitality practice lead at J.D. Power. “As we’ve seen across numerous industries that J.D. Power tracks, younger guests in particular are especially driven by the value proposition, underscoring the importance for hotel brands to make a stronger case for the benefits of loyalty to these travelers.”

The J.D. Power survey measures overall guest satisfaction across all hotel market segments, from upper upscale to economy/budget. Guests were asked about overall satisfaction; reservation; check-in/check-out; guest room; food and beverage; hotel services; hotel facilities; and cost and fees. Overall satisfaction was 806 points on a 1,000-point scale.
 
   Other key findings of the study:

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  • -Only 3 percent of guests use online or mobile check-in, but check-in/check-out satisfaction is highest among those who use that method.
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  • -The three most important amenities are free Wi-Fi, breakfast, and parking. More than 70 percent of guests had free Wi-Fi, 56 percent received free breakfast, and nearly two-thirds had free parking.
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  • -Among guests who posted on social media, 75 percent reported positive experiences, compared with 13 percent that were negative.
 
“Customers have responded well to the enhanced offerings provided by some hotel brands to create value, but as those perks become standard, customers are quick to ask, ‘What have you done for me lately?’” Garlick said. “When guests no longer see added value in the quality of amenities they receive, the only option to truly differentiate a brand is to develop a strong service culture that makes guests feel special and appreciated.”

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