Hotel Loyalty Programs: Definition, Types and Offers

If you are planning your stay at a 3-star hotel or a 5-star hotel, but want to avoid the sky-high prices of these hotels, then there is one thing you need to know about – loyalty programs.

Making your reservations through hotel loyalty programs allows you to avail all the finest offers that top-class hotels have to offer. These programs are based on points systems, and once you have accumulated enough points, you can be eligible for free upgrades, luxury accommodations, complimentary breakfast, access to exclusive lounges, and even free nights. But which loyalty programs are best for you?

Graana.com has thoroughly discussed what loyalty programs are, the types of loyalty programs, and some of the best ones you can avail of.

What are Loyalty Programs?

Customers that interact with a brand frequently are rewarded with customer loyalty programmes. It’s a method for retaining customers by enticing them to keep purchasing from your company rather than one of your competitors. Customers receive more rewards the more they spend or interact with the brand.

Types of Loyalty Programs

There are four types of loyalty programs, as listed below.

1. Tiered loyalty programs
2. Subscription-based loyalty program
3. Value-based loyalty programs
4. Points-based loyalty programs

Tiered Loyalty Programs

Tiered loyalty programs, as the name suggests, offer benefits to their customers based on their tiers. Customers in higher tiers are offered more rewards than customers in lower tiers of the loyalty program.

To encourage clients to spend more and advance to higher tiers for better benefits, some programmes utilise the names of precious metals, such as silver, gold, and platinum, or other naming standards.

Subscription-Based Loyalty Programs

Customers must pay a one-time, ongoing, or yearly charge to join a subscription-based loyalty programme. Businesses that want to keep clients for a set period of time may find subscriptions useful.

For a subscription-based loyalty program, customers are asked to pay upfront for the subscription – monthly or yearly. This type of loyalty program is most beneficial for those organisations that want to retain customers for a specific period of time.

Value-Based Loyalty Programs

This kind of loyalty program is different from others because it doesn’t explicitly provide customers with prizes like discounts or other advantages. Instead, value-based initiatives promote the company’s values and, ideally, coincide with those of the target audience.

Through this programme, a business promises to provide a portion of its earnings to one or more charities, letting customers select the group that most closely matches their personal values. Businesses use value-based loyalty programmes with the goal of fostering closer relationships with its clients.

Value-Based Loyalty Programs

Points-based schemes give customers points every time they spend, which makes them attractive in retail settings like restaurants. Customers can redeem their points for merchandise or discounts after they reach a particular quantity.

In points-based loyalty programs, customers are rewarded with points for each purchase they make, thus increasing their popularity in retail environments, like grocery stores.

Benefits of Loyalty Programs to Business Owners

Following are some of the benefits of loyalty programs to business owners.

Reward current customers

Rewarding your customers is always beneficial for your business if you want to give an impression that you care about them. To do that, a loyalty program can be a helpful strategy. By thanking them for their purchases, you may be able to showcase your appreciation to them. Customers who receive rewards save money, which can persuade them to continue being regular patrons at your company.

Reduce slow seasons

There can be slow times for your brand depending on your industry. By giving customers an incentive to spend, a loyalty programme can help you grow your business during these slower times. In order to encourage customers to visit the store or online catalogue as soon as possible, businesses may elect to give away extra rewards during sluggish seasons and incorporate an expiration date.

Reduce costs

It usually takes a lot of time and money to market products to new clients and cold email them for sales. This is particularly true if you’re getting in touch with new leads who might end up making subsequent purchases. When your business focuses on creating a top-notch loyalty programme, you may reduce the costs associated with bringing in new consumers.

Boost profits

One of the key reasons to create a loyalty program is to ensure a steady flow of revenue into your business. Giving regular gifts, coupons, and discounts to devoted customers may persuade them to keep making purchases from your company. Discounts may encourage clients to spend higher amounts of money than they otherwise would even while they are saving money on your products and services. Even just getting clients to visit your website or shop might enhance your chances of generating a transaction.

Find new clients

Finding new clients can be a hassle for a business, especially those serving in the hospitality industry. For hotels, the benefits, discounts and loyalty programs always attract clientele.  When consumers learn about your outstanding loyalty programme, they might wish to benefit from your discounts. Some businesses even have referral programmes to encourage clients to urge their friends and family to patronise the company. Existing customers get exclusive discounts for each new customer they refer.

Improve brand reputation

You may enhance the reputation of your company by developing a customer loyalty programme that provides clients with excellent discounts and prizes. You can specifically target shoppers who make cost-saving purchases and express your gratitude to them. If customers think your brand offers them good value, they may also feel better about it. When they purchase with you, individuals may feel good because you helped them form these favourable associations in their thoughts.

Get ahead of competitors

Customers may believe they may save money by choosing your brand over another thanks to a loyalty program. For instance, a lot of grocery stores provide rewards programmes to persuade customers to do all of their shopping there. By beating your competitors and offering a superior rewards programme, you might draw clients that desire to save money.

Best Hotel Loyalty Programs

Discussed below are the best hotel loyalty programs that you can find in Pakistan.

Pearl Continental Hotels Privilege Club

Their two-tiered membership program provides a wide range of advantages and privileges that are especially created to make the customers’ experience with the hotel more enjoyable and delightful.

There are 2 different types of packages available for the customers in their loyalty program: privilege club and executive club.

Serena Hotels Privilege Club

You get special rights, rewards, and discounts as a Serena Prestige Club member that are intended to make your stay and experience special. Your membership level demonstrates how important you are to the hotel.

By staying at any of our 30 resorts located throughout Africa and Asia, you may accumulate Prestige Points that you can then exchange for a range of benefits.

You only need to sign up to be eligible for the Classic Card Membership. Any Serena Hotel property’s reception can be used for this.

Members of the Classic Card are entitled to the following advantages:

• Earn points by utilising the room and other hotel amenities during your stay.
• Welcome VIP amenities
• Access to member-only discounts
• Pay cash or redeem points (Accommodation/ Buffet meals – room only)

Marriott Bonvoy

Marriott Hotels provide a lot of benefits to their customers in terms of different loyalty programs. These benefits and services vary from package to package, and between membership tiers ranging from silver elite, gold elite, platinum elite, titanium elite, and ambassador elite. Anyone can avail the following benefits from the loyalty program of Marriott Hotels.

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