Only one in four members of Hotel Frequent Guest programs (FGP) have downloaded a program mobile app according to Hotel SCORES, an annual syndicated tracking study conducted by Phoenix Marketing International.
According to the study, hotel companies are missing a huge marketing opportunity with mobile apps.
Greg Diaz, Vice President, Phoenix Marketing International, said in a press release that hotel companies are foregoing a significant revenue stream and failing to further develop a strong relationship with their customers.
“Over the 10 years we have been conducting Hotel SCORES both in the USA and in 11 countries worldwide, we have seen that as members become more engaged in a Hotel Frequent Guest Program, their share of room nights to hotel brands that are part of a Program increases dramatically,” Diaz said.
According to Diaz, it is not uncommon to see a 35% increase in room night share when one becomes an active member of a Frequent Guest Program, and a 50% increase when one attains elite status in the Program.
As legacy members in Hotel Frequent Guest Programs mature and approach retirement, there is a need to replace them with additional quality members. Diaz believes that hotel companies can achieve this by focusing on the up-and-coming travelers -- those in Generation “X” and Generation “Y”.
“When we look at who are downloading these Hotel Loyalty Program Apps, we see a skew toward Heavy Business Travelers, those traveling 20-plus nights in a year and who tend to patronize economy-tier brands,” Diaz said. “More importantly, both Gen “X” and Gen “Y” individuals are twice to three times as likely as Boomers and Seniors to download a Hotel Loyalty Program Mobile App.”
Diaz referred to this group as the future loyalists that the hotels need to cultivate.
While over half of those downloading a FGP App use them to research a property and book a room, only between a quarter and two-out-of-five ever use the app to check their points balance, redeem an award, or check for special offers and promotions.
Diaz believes that the key to developing loyalty and generating additional revenues is to make the apps an integral part of the hotel booking and loyalty program experience.