Four out of five Americans said they’re interested in hotel loyalty programs, but 66% indicated it takes at least three stays to create a loyalty bond according to a new report from Club Carlson – the global hotel rewards program from Carlson Rezidor Hotel.
To compile the report, Carlson Rezidor Hotel Group’s researchers surveyed more than 1,000 customers between April 24 and May 1, 2013.
The report also revealed that:
41% of respondents said they'd cancel a loyalty program after a single disappointing experience
60% said they have more than 1 hotel loyalty program and “shop around” to find the best deal for any stay
Most (78%) Americans are members of at least one brand loyalty program, according to the report. Many loyalty program members are willing to buy additional points to reach those large rewards.
“Americans ages 18-64 are much more likely to join compared to those older than 65," according to the report. “Grocery stores have the most members, with 50% acknowledging their participation in a grocer's rewards program. This is followed by credit cards offering points, retail stores, and hotels."
For people who frequent hotels, one thing is for sure: Guests want Wi-Fi access. Many consumers think hotel loyalty programs should include free Wi-Fi – nullifying the costly daily Wi-Fi connection costs.
What’s more, the report found that the ease and frequency by which a person can earn free nights is the most compelling motivator when it comes to joining a loyalty program. Free Internet, regular promotions, and the quantity of hotels at which to earn and redeem points were also major factors cited by respondents.
Hotels best be sure to provide consistently good customer experiences, evidenced by this point in the report: Disappointing experiences would cause 91% of people to discontinue their affiliation with a particular brand, and one in four individuals would join a competitor’s loyalty program after a single bad experience.
Conversely, two-thirds of those surveyed said it would take three or more good experiences to consider themselves loyal to a specific brand. Here are some other key insights from the report:
Almost 60% of respondents are members of more than one loyalty program
Men are 33% more likely to become members of hotel loyalty programs than women
Three out of five people would rather consolidate points to redeem one longer vacation as opposed to several quick trips
94% of hotel loyalty program members would be willing to spend money to buy more points if they do not currently have enough for a free stay, especially for a room at a quality hotel or if it entails a specific date, location, or property
According to the report, it takes about 43 days to cash in on complimentary stays and 88% of members earned an average of four free nights in the past year