J.D. Power Ranks Hotel Loyalty Programs
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Among multi-brand hotel brands, a loyalty program that differentiates itself through desirable rewards, simplicity, and value can mean all the difference when guests are making a purchasing decision. In a recent report from respected market research company J.D. Power, these hospitality brands are ranked according to several factors, including account maintenance/management, ease of redemption, and customer service.
 
The top spot in this year’s study was split, with both Hilton HHonors and Marriott Rewards earning 741 points (on a 1,000 point scale). Marriott Rewards earned its highest rating in redeeming points, also placing highly in reward program terms and ease of earning points.
 
HHonors, which garnered its second consecutive win in the ranking, earned top marks in account maintenance/management, and also performed well for its reward program terms and variety of benefits.
 
Rewards mix and ease of redemption are crucial in offering added value to customers, as evidenced by the report’s finding that “The ability for a customer to accumulate points and easily redeem them for one of many locations or an upscale property is highly satisfying—and it is a competitive differentiator among loyalty/rewards programs.”
 
This comes as no surprise, as many guests still see loyalty programs as a way to earn additional rewards from brands with which they already engage.
 
“Members of hotel loyalty/rewards programs see great value in their program of choice, and they are highly satisfied when they can easily earn and redeem points to select preferred locations in various locations,” said Rick Garlick, global travel and hospitality practice lead at J.D. Power. “Programs with hotels offering multiple brands, partnerships and locations have a strong competitive advantage. However, once customers arrive at a location, their actual hotel experience plays an important role in the overall experience with their program. Loyalty/rewards program administrators need to keep this in mind while exploring opportunities to create innovative customer-centric perks.”
 
On a promising note for the industry at large, overall satisfaction with hotel programs has grown to 711 points, up 10 points from 2015’s report. The report was developed using responses from just over 3,000 consumers who have joined a hotel loyalty program.

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